How are goods different that services? 

Products generally come in two categories - goods and services. 

Tangibility

Goods are typically tangible - meaning we can hold them. Services are intangible, meaning that we cannot touch those things. 

Place of Production

Another difference is the time and place of production. Goods can be produced anywhere at any time, and we can consume them later. Services are consumed when we receive the service.

Storage

Another key difference between goods and services is the ability to store inventory or create inventory. We can do that with physical goods, whereas with services we're limited to our capacity to create right then.

Standardization

The last key difference between goods and services is that goods can be standardized. That is, we can make the same item over and over again. While we can try to do that with services, services are more variable because it depends on the given situation at the given time and the given service provider. So, there's always going to be some variability or some difference in the the specific details of the service that we provide.

Related Topics

• What is a Product?
• What Types of Product are There?
• Durable Goods
• How are Goods Different from Services?
• What Components do Products Include?
• What is Product Quality?
• Perceived Value of a Product
• Why is Product Packaging Important?
• White Label Product
• What is Product Warranty?
• Innovation Adoption Curve
• Product Life Cycle