goods and services are used to satisfy human wants. how do they differ from each other
Answers
The difference between the goods and services are
A) GOODS-The tangible products that mean they can be touched and seen are called goods.
• Goods provide the utility and address the needs of the consumers. Because of its tangible, it is both durable as well as non-durable depending upon the product and is produced as per the demands of the market.
These can be returned if they are any flaws to the product.
Goods because of the tangible nature also have a sense of ownership. People can own the product. For example, a kid owning a bar of chocolate. And chocolate is good. • There can be a change in the ownership of the product. For example, the same child
handing over the chocolate to his friend. • These goods can be separated from the seller. Like the shopkeeper selling the
chocolate to the kid.
• There is an existence of time lag between the production and the consumption of the good.
B) SERVICES- the products which are intangible, meaning their presence can't be seen or felt are called services.
• The services being intangible are perishable. It doesn't have a long-lasting stay, but it
does have a long-lasting effect.
Services being lacking in the area of physical identity loses its change in ownership. E.g. teacher imparting knowledge to the students. A teacher does the service of imparting education to the children. The students take in the knowledge but they can't import back the same knowledge to their teachers. This shows that teachers never lost their ownership of the service imparted.
The uniqueness of service is that these can't be returned to the service provider. The other wouldn't be capable to give it back.
These are simultaneously happening. Help from the police officer at the sight of the accident is a simultaneous reaction and not pre-planned.
Items that are visible and concrete and can satisfy human desires are considered goods, whereas intangible things that satisfy human needs are considered services.
These goods and services differ in terms of their manufacturing processes, service providers, distribution, and ability to meet human needs.
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