List the six factors that distinguish services from goods.
There are many different ways to list the differences between goods and services. If you are required to list exactly six differences, you should consult your book or your class notes to see which six differences you are expected to know. Here are some differences between goods and services, but I do not know which six you are supposed to mention in your answer.
- Goods are tangible products that can be seen and touched. Services are not tangible.
- Goods are produced at one time and then consumed at a later time. Services are consumed even as they are produced.
- Goods can (in most cases) be stored for later use. Services cannot be stored.
- You can move a good from one place to another. A service cannot be transferred in this way.
- A good can be transferred from one owner to another. A service cannot be.
- It is possible to mass produce goods so that they are all identical. Services cannot be mass produced and will vary more in quality.
- It is relatively easy to assess the quality of a good. It is much harder to objectively assess how good a service is.
- Consumers are often more involved in the process of selecting and obtaining the service. Consumers are less involved in this process in the case of goods.
These are all differences between goods and services. Please check your textbook or class notes to see which six you are supposed to identify.