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Service

Service is a transaction in which non-physical goods are transferred from the seller to the buyer. When we talk about service, people often refer to processes and not physical products.

Service is an intangible part of the economy. It only exists while the provider is delivering it, and the customer is consuming it. There is no transfer the ownership when a company provides a service to clients. Also, it cannot transport or store service either. For example, watching a play at the theater is a service. You cannot carry or save this kind of service later.

Following Are The Five Essential Characteristics Of A Service.

Inviolable: People cannot touch or handle them. Service can neither be taken nor manufactured.
No Inventory: It is not possible to store the service for further use. Once the provider provides the service, it irreversibly disappears.
Indivisible: There is no lag between the production and consumption of the service. The provider provides the service at the time of use.
Inconsistency: Every delivery of a particular service is not the same as the past or future. Each one is unique, even if the same customer requests the same service.
Customer Participation: Some types of services require the participation of both the customer and the service provider. For example, a haircut requires the presence of the customer and the barber.

Goods Vs Services

Every budget in the world is made up of a combination of goods and services.

Goods

Goods are physical, tangible things that we produce. We can touch or handle them. People buy or sell and eventually use them. We can store and transport the goods.

If you look around your home, you’ll see dozens of examples of appliances including your cooker, microwave, washing machine, and dishwasher. Your TV, computer, smartphone, furniture, and water tap are also accessories. Anything you can touch that we manufacture, mine or farm is a commodity.

Miners extracted minerals from a mine, and we used them to make goods. Additionally, farmers have grown or produced many of the items in your fridge.

Services

These are activities that other people, companies or government departments do for you.

When you book a hotel room, flight or vacation, a booking agent is providing a service. You cannot touch or handle this booking, ie booking is intangible, it is intangible. You cannot store or transport this booking.

Every public service provided by the government is for its citizens. Examples include police forces, armed forces, ambulances, paramedics and fire brigades. Furthermore, health care (in most developed economies) is a service, as are public broadcasting, urban planning and waste management.

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