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Difference Between Product and Service

The primary distinction between product and service is that a product is an item manufactured by a company for sale and exchange for money. And the business provides service to the customer on demand.

 

A product is a tangible item that an organisation creates to market and sells to a customer in exchange for money. The product has a physical presence, can be touched, smelled, and tasted. The products can be used once or repeatedly.

Services are intangible; they are the services provided by one person to another on demand. People are usually drawn in by the services provided by the organisation.


What is a Product?


A product is a substance with object space that we can touch, taste, feel, and smell. It is something that the customer requires or desires.

Customers can assess the product's quality and return it to the seller for replacement or refund if it is damaged.Users create the value of the product when they buy it. Another feature of the product is that it is transferable.

When a product is purchased from the buyer, ownership passes from the provider or seller to the customer or buyer as the product is used for personal purposes.Products are not always physical or tangible objects; they can be anything that can be sold. For instance, software services, online bus tickets, or board band service, among others. To be relevant to the customer, the product must be immediately usable and of high quality. Customers must be informed about a product.The uses of products, how to use them, and other aspects of their benefits must be determined. Branding and marketing are essential for the product. A product must have a name; customers remember products only by their names; this becomes a brand and benefits the business. The product should be adaptable to changes in time and trends.

 

By adding more value, the marketer should understand the product at every level. The core product meets the core needs of the customer. Customers can purchase consumer products such as shopping items, essential and convenience items, and so on.Business-to-business products are purchased by an organisation in order to manufacture another product or to provide a service. It includes both capital goods and high-priced items.

 

What is a Service?


Service is intangible, provided by the seller to the buyer. The company provides services to its customers, particularly after the sale. Offering a service can aid in the development of a client or customer relationship.

People are mostly drawn in by the services provided by the organisation. Quality of service is the best market strategy and approach for attracting customers in a business.The consumer always prioritises the quality of service over the product. Because services cannot be taken or returned, the organisation that provides them must be specific and well-qualified.Along with the product, service is a critical component in economics. It cannot be saved, nor does it result in ownership.

It can be difficult to distinguish the quality of service that comes with the products.Medicines with a diagnosis, banking, consulting, education, insurance, and transportation are examples of intangible products that rely on services.Every service provided by the organisation will be charged for. The organisation may charge a different price for the same service at times. There is no transfer of ownership when services are sold to customers. Services cannot be stored or transported to others; they must be used immediately and are valued only at the time of provision.

 

Main Difference Between Product & Services

 

The main difference between Product and service are

1)Products are physical items sold by the company for its customer’s use, whereas services are add-on values offered by the company to keep the product in workable condition.

2)Products meet the needs of the customer, whereas services help to increase product sales.

3)Products vary in type, but services must be tailored to the existing product.

4) The looks and usage of a product can easily judge its quality, whereas service quality cannot be judged unless the product works without issue for an extended period of time.

5)Products can be exchanged, whereas services are one-time approaches to existing products.

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