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12 Key Difference between Product and Service

    Are you a product or service marketer? Or both? Even though you might not have considered it, there are some key differences.

    The federal government had deregulated telecommunications in the 80’s by breaking AT&T into several regional companies (e.g. BellSouth, Bell Atlantic – most of whom were reacquired in AT&T) found themselves confronted with their first competition in company history. Many companies rushed to hire “expert marketing talent” from P&G or Lever and other consumer packaged goods firms.

    See Also: How to Write a Professional Marketing Research Report?

    The results were not good. The lack of performance data and lack of marketing culture were major problems for newly hired marketing gurus. Many of them left within 12-18 month.

    It wasn’t about data or culture. Marketing a product like shampoo or dog food is very different to marketing a service such as legal advice or phone communications. To successfully promote and sell services, you must first understand and then understand the differences. It is possible to identify the right approach by understanding the various challenges of product and service market marketing.

    Product vs. Service

    People have different needs and want and require different products and services. (for example, services offered by AcademicHelp have become increasingly important in the modern world). It is evident that marketers play a key role in marketing products and services for different targeted customers. While people sometimes confuse the terms and use them interchangeably as if they were one thing, closer examination between them reveals that they actually are two different things. The main difference is that a service and a product are tangible. We will provide more information below about the differences between service and product.

    What are the Key Features of a Product?

    It is tangible and physical. This is the most important feature of a product. This means that a product is easily held and can be felt, smelt, and even smelled. A product sale is considered an exclusive transaction. In the unlikely event of a product being damaged or not working properly, the seller can return it to him for a refund or replacement. The customer can return the product to the seller if he isn’t satisfied with it.

    The product’s value is often created by and derived from its user. This means that the customer knows exactly what they want from a product, and therefore makes the decision to purchase it. This customer is the one who can benefit from buying a product and not the service provider.

    Other important aspects of a product are ownership. Because ownership transfers at the time of a transaction, a product can be purchased by the buyer. A tangible product makes ownership transferable, unlike a service that can only be felt. A product can be purchased and then easily removed from its provider. The customer can take it home to use for their own personal use. A service cannot be given to another person.

    A product’s customer care perspective is less than that of a service. Customers are attracted to a particular service by customer care. In a product, branding and other product features can differentiate it from others that offer similar services.

    12 Key Differences between Products & Services

    Products are tangible

    Products can be touched, seen, felt, smell, and even touched. Services are intangible. Part of the challenge in marketing services is to create tangible elements that connect consumers with the service brand.

    Need vs. Relationship

    The difference between need and. Relationship. Products usually fulfill a customer’s desire or need. Marketing services often involves building trust and relationships. The car is yours to keep after you’ve purchased it. It is possible that you won’t have anything left after you leave your doctor.

    One vs. Many

    One vs. Many. There are many options for physical products. Clothes can come in many sizes, styles and colors. Dog food comes in different ingredient combinations. Many services don’t offer multiple forms of dog food. A doctor’s appointment is the same regardless of whether you’re seeking treatment for tennis elbow or diabetes. Although you might choose to use different service providers, the core elements will remain the exact same.


    Perishability services can’t be stored for sale or later use because they can only serve their intended purpose. It is evident that products are perishable. Products such as fresh farm produce and other foods can be preserved for later sale or use.


    Quality Comparison. The Quality of Service. It’s much more difficult for customers to assess the quality of service than the product purchased. You will get less dandruff if you buy anti-dandruff products. However, did your lawyer prepare a good divorce document for you? You may not be able to tell until the final stages of the process (or when you are in court).

    Quantity products are quantifiable numerically and come in many shapes, sizes and forms. Services, however, cannot be numerically quantified. Although you can choose from different service providers, the idea is the same.

    It is much easier to return a product than a service.

    It’s much easier to return products than services, since a service is used as it is given. You can do it, but it is typically much more difficult for the customer.


    Service providers cannot be separated because they are available at the same time as services. However, once the purchase is complete, a product may be taken away from the owner.


    These are tangible features that can be held and can be compared in quality. It can be difficult to compare different service providers’ quality.


    Refundability- If the customer isn’t happy with the product they purchased, it is easier for them to return it. In return, the seller will replace the product. Because it is not tangible, a service can’t always be returned to its provider.

    Value perspective

    Value perspective: The value of a service comes from the provider, while the value of a product comes from the customer using it. While the value of a service cannot exist apart from its provider, the value of a product can either be created or taken by the end user.

    Shelf line

    Shelf line- A service’s shelf line is shorter than that of a product. If the product does not sell in a specified time, it can still be sold at a later time. This is different for a service with a short shelf life and should be sold earlier.

    Every day that a service is offered and not consumed is lost forever

    Each day that a given service is not used is lost forever. I can’t ever sell my hotel room tonight. It is gone forever. Products, on the other side, have a much longer life span. I can sell cookies for longer periods of time if I keep a box of cookies on the shelves.

    The service element of technology is becoming more prominent in more products. It can be found in customer service and online sails as well as instruction manuals and communities. Some elements of services are now included in products. Services and products are different, so marketing approaches for each need to be considered. Marketing professionals could benefit from understanding the fundamental nature of what they are selling.

    What are Products and Services?

    A product is a tangible object that is placed on the marketplace for purchase, attention, consumption or disposal. A service, however, is an intangible item created from the work of one or several individuals. It may seem like the main difference between the concepts is their tangibility. However, this is not always the case. Most services are intangible while products are tangible.

    Products and Services

    Remember that products and services are closely related. Many products come with some level of service. When a customer buys a car for example, they are also responsible for servicing it.

    However, the concepts are not identical. It is crucial to know their working definitions.

    Tangible vs. Intangible

    It’s easy to judge the quality and durability of a tangible item. It is easy to assess the durability of a tangible product by looking at it. One example is when a person is purchasing a home. Buyers inspect every inch of the house, from the basement to the foundation, all rooms, and much more.

    However, a service cannot be felt or tried out before one pays for it. An individual may need a professional inspector in order to spot hidden problems before they decide to buy a home. What level of expertise does the inspector have in plumbing, roofing and other structural matters.

    In short, the client does not have sufficient information about the inspector’s abilities until the task is in progress. While the customer can look online for reviews and request the inspector’s credentials as well as pictures of his work in the past, there’s no definitive way to evaluate the quality of a service once it’s been rendered.

    Production vs interaction

    Potential car buyers usually inspect the car’s exterior lines, feel the leather seats and take the car for a test-drive before making a decision on whether or not to buy it. Because it is a product, the buyer will know the production line that the vehicle comes from. There are many other vehicles like it. You may find other identical cars to the one you are buying.

    But what about the service a car buyer receives at the dealership? A car salesperson may interact differently with one buyer than he does with another. A car buyer may be lucky enough to find a salesperson that is knowledgeable, friendly, and willingly negotiates. If he isn’t, the car salesperson could be one who lacks knowledge or acts in a nonchalant manner.

    Perishable vs Imperishable

    It is best to show perishable products to a restaurant owner. This person could endanger his restaurant business if he doesn’t understand the concept spoilage and waste reduction. Most fresh foods spoil within a few hours. Technology is another example. Technology is another example. Even intangible products such as software can become obsolete. Jewelry and automobile parts are examples of irreplaceable products.

    Is it possible to distinguish between imperishable from perishable services? You can describe services as perishable, but not imperishable. Perishable services are those that are short-lived. It is best to consume such a service as soon as possible after its production. This service, unlike other products, cannot be stored for later.

    Perishable services include air travel, auto repair and theater entertainment. A ticket that is purchased for an airline ticket will expire if the owner gets sick and cannot travel. Some services are perishable, making it difficult to balance supply with demand.

    The Growing Demand for Products and Services

    It is clear that product manufacturers need to replace or adapt products as they age. This is evident from history. Think about how websites and ebooks have replaced paper books and how compact discs has replaced cassettes or DVDs. Other times, services can be substituted for certain products. Netflix and other entertainment companies like Netflix offer streaming services that many people prefer to satellite or cable television programs.


    Although service and product are sometimes used interchangeably, you can see that they differ in many ways. One of the main differences between the two terms is that a product can be physically inspected and is tangible. However, a service cannot be held separately from its provider because it is intangible. The provider determines the quality and the quality is determined the customer. If the buyer needs it, a product can be stored and sold again. The service is consumable at the moment it is presented and cannot be stored for future purposes. The service provider cannot return it for any reason, as it is not tangible.

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