What distinguishes a product from a service?

What distinguishes a product from a service?

• A. A product is always more expensive than a service
• B. A product is a tangible item; a service is an intangible offering
• C. A product involves customer interaction; a service does not
• D. A product is less valuable than a service

Answer: (B)

The distinction between a product and a service primarily lies in their tangibility. A product is a tangible item that can be touched, seen, and owned, such as a car, a laptop, or a piece of furniture. On the other hand, a service is intangible; it cannot be physically possessed and is often experienced rather than owned. Services include things like consulting, cleaning, or hairdressing, which are actions or performances delivered to the consumer. This fundamental difference in tangibility helps to shape how each is marketed and sold, as products often involve considerations of physical attributes and aesthetics, while services focus on the delivery method, customer experience, and the relationship between the service provider and the consumer. Understanding this distinction is crucial for businesses in terms of strategy, customer engagement, and value proposition.

The distinction between a product and a service primarily lies in their tangibility. A product is a tangible item that can be touched, seen, and owned, such as a car, a laptop, or a piece of furniture. On the other hand, a service is intangible; it cannot be physically possessed and is often experienced rather than owned. Services include things like consulting, cleaning, or hairdressing, which are actions or performances delivered to the consumer.

This fundamental difference in tangibility helps to shape how each is marketed and sold, as products often involve considerations of physical attributes and aesthetics, while services focus on the delivery method, customer experience, and the relationship between the service provider and the consumer. Understanding this distinction is crucial for businesses in terms of strategy, customer engagement, and value proposition.