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Immediately after hearing the terms “goods and services”, we get an image of one tangible item and the other intangible. Even though these two terms are commonly used in various aspects, we will talk about their association with the economy. Consumers purchase goods and services on a daily basis to meet their requirements, but what does this mean?
If you want to learn the difference between goods and services in economic terms, continue reading!
In simple words, goods are those items that have utility and fulfil a customer's requirement. These are physical objects that you can see, touch and feel. Moreover, goods are transferable. For instance, if a manufacturer produces a good, a retailer purchases that object and sells it to a consumer.
Services, on the other hand, are intangible activities. However, it has the same purpose of satisfying the needs of consumers. Moreover, they are non-physical; hence the only way to sense them is by experiencing them. Furthermore, its ownership is also not transferable.
The table below outlines the distinction between goods and services in a better way.
|
Particulars |
Goods |
Services |
|
Nature |
These have a shape, size, structure and weight. Hence it is definable |
Services are indefinable |
|
Transfer of ownership |
Goods can be transferred from seller to buyer |
Ownership of service is not transferable |
|
Perishable |
Not all manufactured goods are perishable |
Services are perishable |
|
Inventor |
Anyone can stock up on goods in a warehouse or inventory |
Impossible to stock up on services |
|
Consistency |
Since goods are manufactured, there is consistency in their production |
Services are inconsistent because these are specific to an individual consumer |
|
Involvement |
Customers may not have access to directly involved with goods productions |
Customers participate alongside the provider |
|
Return |
One can return goods after purchasing if it does not meet their requirements. |
It is not possible to return service after it is offered. |
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