17
Basics
17.1 PRODUCTS VS SERVICES
The basic difference between a product and a service is the ratio of the tangibles and the intangibles. Tangibles are measurable aspects (e.g. shape, size, etc.). Intangibles are not measurable (e.g. courtesy, empathy displayed by the service provider, etc.). Thus, soap is a product with almost a zero service component. That is, there is no after sales service for soap. A durable like a car or scooter, however has a service component. For instance, we take our vehicles for mandatory service every three months. Besides, there can also be breakdowns on the road like tyre deflation, accidents, etc. Therefore in the case of automobiles, the service component is higher than in soaps. Though we would like to have ...
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