Tangibility: The Defining Difference
The most fundamental difference between products and services lies in their tangibility. Products are physical, tangible items you can touch, see, and feel. Think of a smartphone, a car, or a book. They exist independently of the producer and can be stored, transported, and resold. Services, on the other hand, are intangible. They are actions, performances, or processes. A haircut, a consultation, or a software subscription are all services; they don’t have a physical form and cease to exist once performed.
Production and Consumption: A Simultaneous Act?
Products are typically produced before they are consumed. A