Differences Between Services and Products

Services are often
intangible -acts, deeds and
cannot be physically
processed. Value lies in
experience and no transfer of title

•Usually perishable, unused
portions cannot be stored

•Quality cannot be
separated from the service
provider

•Vary in quality over time
and are difficult to
standardize over time

•Products are often tangible
objects or things. Value lies
in ownership and use and
transfer of title takes place

•Can be stored, and unused
portions can be used later

•Quality can be differentiated
from the channel member’s
quality

•Products can be
standardized and mass
production and quality
control are possible