Goods are tangible things while services are intangible. In light of this, a service refers to an act of doing something for another person. Different companies offer either goods or services to satisfy customer’s needs. The success of every business lies in the combination of the best value for goods and customer oriented services. Human beings depend on both of them for survival.
Definition of Goods
Goods are the tangible expendable products, articles, and commodities offered by companies in exchange for cash. Goods have physical characteristics, for instance, shape, appearance, size, weight, and other visible characters. Goods satisfy human wants thereby providing utility.
Goods are different in that some re disposable after using for once. Other goods are usable for more than once. Goods have a time gap between production, distribution, and consumption. The ownership of goods is transferable meaning once a person buys, the ownership moves from the seller to the buyer.
Characteristics of Goods
Goods are tangible. They have physical properties which allow for marketability in a physical sense. Companies also produce goods either in identical or non-identical units. When identical, the specific goods offered by a production company will have many unchangeable characteristics.
These characteristics stay the same, and they do not change even when the product reaches the marketplace. Example of goods includes books, bags, pen, and bottles. On the other hand, companies or businesses offer their services at a go and they do not last for future use since you cannot consume them. For goods, ownership changes from the producer to the consumer once they you buy them.
Definition of Services
Services refer to the intangible economic products offered to a consumer by a producer, on demand. Services are perishable, they do not have a physical identity and the ownership of Services is not transferable. The point of sale for a service is the base for consumption. Services are only consumable or usable by a buyer, but they are not sellable for ownership.
An example of a service is when you buy a ticket to watch a movie at the cinema hall, it does not mean the cinema hall becomes yours, it means you paid for the available service. The evaluation of services is tough since there are so many service providers offering the same task at a different amount.
The difference in amount is because different firms use different methods or parameters to value their services. Examples include banking services, communication, postal services, and many more.
Similarities between Goods and Services
Similarities in “Position Choice” of Goods and Services
The manufacturers of goods and services are the determinants of the position and location of the company or service provider. The consumer cannot determine the location in any way.
Similarities in “Design Layouts and Production Facilities” of Goods and Services
For both goods and services, manufacturers are the decision makers on production. They determine the outlook for the output and come up with production facilities to make products and services.
Similarities in “Process Existence” of Goods and Services
In every production, there must involve a process of producing either goods or services. There is a process where the input comes into the process and output brought out of the processing. For a production of goods and services to go through, you must involve inputs.
Similarities in “Use of Technology” of Goods and Services
Both goods and services need the use of some technology in production, one way or the other. Without technology, production cannot happen.
Similarities in “Concern for Quality” of Goods and Services
Quality is the aptitude of the goods and services to fit for its purpose. Whether goods or services, quality is vital. Failure to consider quality in production can lead to huge losses.
Similarities in “Productivity” of Goods and Services
Businesses make both goods and services with the aim of helping the customers’ productivity by meeting their daily needs and wants.
Similarities in “Customer Satisfaction” of Goods and Services
Both goods and services aim at fulfilling customers need and in return generate customer satisfaction.
Similarities in “Capacity Choice” of Goods and Services
The producers of both goods and services choose the production capacity. Consumers cannot influence the capacity choice of the producer.
Summary points on Similarities between Goods and Services
In conclusion, goods and services are two different things but have so many similarities. Goods are tangible and expandable objects. On the other hand, services are an intangible economic product offered by a person to another.
In the production of both goods and services, the producer decides on the location and the production facilities. They both require technology. The main aim of both goods and services is to create productivity amongst the users. In addition, both goods and services aim at fulfilling human needs. Human beings cannot live without either goods or services and therefore they are both crucial. In both goods and services, customers cannot influence the capacity choice.