What are Products and Services?
A product is tangible (visible). It has physical existence. By acquiring a product a person may acquire an asset, e.g., a television set. A product may be capable of being reused for a certain time. Examples are soap, toothbrush, etc. On the other hand, a person while availing a certain service. Example — Transport, medical, legal, etc., incur expenditure. Service is intangible in nature.
Definition of Service
The American Marketing Association defines services as
activities, benefits or satisfactions which are offered for sale or are provided in connection with the sale of goods.
From the definition it is clear that provision of service may be in connection with the sale of products, e.g., after-sale or repair service or it may not be in connection with the sale of goods, e.g., banking, insurance, legal, catering and other services. The provision of medical service may involve sale of certain goods by a doctor to his client, e.g., false teeth, contact lens, artificial limbs, etc.