Please differentiate between products and services.

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pohnpei397 eNotes educator| Certified Educator

In economics terms, the term "product" can encompass both goods and services.  In that case, a service is one sort of product.

In economics, we say that there are two kinds of products that can be produced and sold by firms.  These are goods and services.  Goods are tangible things, things that a customer can pick up and take away.  So a car is a good.  So is a bowl of rice and curry.

By contrast, a service is something that is less tangible.  It is something you provide the customer, but the customer cannot pick it up and take it away.  Consulting businesses provide services.  So do sports teams -- you pay to watch their matches but you do not take anything home with you.