The primary difference between goods and services is that goods are tangible products that can be seen, touched, and stored, whereas services are intangible activities or benefits that cannot be physically possessed. Goods have a physical form that allows them to be produced, stored in inventory, and transferred to buyers as tangible items. Services lack physical form and are delivered as actions or performances, making them impossible to store or physically possess. For example, a smartphone is a good, while mobile repair or internet connectivity is a service.
| Basis of Difference | Goods | Services |
|---|---|---|
| Primary Difference | Goods are tangible items that can be physically owned. | Services are intangible activities or performances. |
| Nature | Physical and visible in nature. | Non-physical and invisible in nature. |
| Ownership | Ownership is transferred to the buyer. | No ownership is transferred. |
| Storability | Can be stored for future use. | Cannot be stored for later use. |
| Production and Consumption | Produced first and consumed later. | Produced and consumed simultaneously. |
| Standardization | Mostly standardized and uniform. | Often variable and customized. |
| Customer Involvement | Limited involvement during production. | High involvement during delivery. |
| Examples | Books, cars, furniture, packaged food. | Education, banking, healthcare, transportation. |