The phrase "exchange of goods and services" are frequently used in economics and marketing.

But did you realize that goods and services differ from one another? In this post, we'll examine the differences.

A good is any tangible product that may be traded for an item of comparable value.

Goods can also be defined as tangible items which satisfy consumers' needs.

On the other hand, service is any intangible product provided for an item of equal value.

Services are therefore intangible goods that can meet customer needs.

Difference Between Goods and services

1. Generally speaking, goods are tangible, whereas services are intangible

2. Ownership is transferred when goods are exchanged.

However, when services are transferred, there is no transfer of ownership.

3. Unlike services, which cannot be stored after production, goods can be kept in a warehouse.

This is because the production and consumption of service are done simultaneously.

4. Not all goods are perishable, whereas all services are perishable.

Some goods are perishable. Others are durable and long-lasting.

5. Goods can be returned if they are found to have defects or they do not meet the consumer's expectations.

On the other hand, services can not be returned. The most a consumer can do is to stop patronizing the service provider.

6. Services cannot be separated from the service provider while goods can be separated from the seller.

Remember that the present service provider is necessary for the provision of service.

7. Products are typically the same no matter the quantity produce. 

For instance, regardless of the quantity a corporation produces, its economics textbook will remain the same.

On the other hand, no two services are the same because of the human element in the provision of service.

8. The majority of goods can be examined before being purchased, but all services cannot be examined before being paid for.

9. One can keep stock of goods whereas one cannot keep stock of services.

Remember that there may be a time lag between production and consumption of goods whereas there is no time lag between the production and consumption of services.

10. It is simple to measure the quality of goods, but it is difficult to measure the quality of services.


Tabular Comparisons of Goods and Services

Features    Goods  Services
Result in the transfer of ownership title

PerishabilityGoods can or cannot be perishableAll Services are perishable
The time lag between production and distributionYesNo
Can it be stored?YesNo
Quality MeasurementYesDifficult

The major difference between goods and services is that goods are tangible whereas services are intangible

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