PRODUCTS, THEIR TYPES AND DIFFERENCIATION
Mr. Tahir Aziz Khan
Muhammad Adeel Khan
29th September 2010
COMSATS Institute of Information Technology
Defense Road, Off Raiwind Road, Lahore.
Anything offered to market for the Customers in order to satisfy their Needs & Wants, is called Product. In fact, the products offered to market are called Market Offerings. They are also called Product Offerings. These products can be offered to market in a set or a bundle as well.
Types of Products
A company or an organization can offer two types of products to the customers:-
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy consumer’s / customer’s need or want is called Good.
Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything, is called Service.
Difference between Goods & Services
There are various differences between goods and services but they can be classified on the basis of the following heads:
1) On the basis of Characteristics
2) On the basis of Offering
On the basis of Characteristics
The goods and services, on the basis of characteristics they have, can be differentiated for many points. Some of them are given here in the table as under.
Difference between Goods and Services on the basis of Characteristics
|POINTS OF DIFFERENCE |GOODS |SERVICES | |PHYSICAL EXISTENCE |Goods have physical existence and they can be |Services have not any physical existence and they | | |touched, smelled or seen. |can’t be touched, smelled or seen. | | |Examples: Soap, Shirt, Cell phone |Examples: Teaching, Managing, Singing | |STORING |Goods may be perishable or non-perishable |Services are only perishable products. They can’t be| | |depending on the circumstances. But perishable |stored for a longer period of time. Because they | | |goods still can be stored for a longer period of |vary with environment. | | |time. |Examples: Singing, Teaching and Managing can’t be | | |Examples: Vegetables, Tools and Leather can be |stored. | | |stored. | | |QUALITY |Once produced, the quality of the Goods remains |The quality of the Service varies with the change in| | |uniform. Their quality can’t be changed after they|environment. Once discovered, its quality improves | | |have been produced. |with the passage of time and with the change in the | |...
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