Differences between goods and services

It contains an activity for esl students, so they can learn the difference between this two terms.

1. Difference between Goods and Services
Goods and services are an essential part of an economy, and these two terms are used in
most of the important economic discussions.
There are many products that a consumer purchases in order to fulfill their certain
requirements. These products can be either in the form of goods or services.
Goods are tangible, as in these have a physical presence and they can be touched, while
services are intangible in nature.
The purpose of both goods and services is to provide utility and satisfaction to the
consumer.
Goods Meaning
The meaning of goods can be expressed in terms of economics, as any item that
provides utility and fulfills the needs of the consumer.
Goods can be classified as durable and non-durable based on their durability. Durable
goods last for a long time while non- durable goods perish sooner than durable goods.
Goods involve transfer of ownership from the seller once it is purchased by the
consumer (buyer). There is a certain time period that is required for the production of
goods.
Goods due to their tangible nature have a proper structure, size and shape. They can be
produced as per the market demand.
Services Meaning
Services are the intangible and non physical part of the economy that cannot be touched.
They are perishable in nature as they need to be provided at a moment when requested
by the consumer.
Service lacks a physical identity and cannot be owned, it can only be utilised. For e.g,
when having dinner at a restaurant you can avail the concierge services but you do not
own the restaurant.

2. In other words, there is no transfer of ownership in services and unlike goods, services
cannot be stored and utilized later. Also, services cannot be distinguished from the
service provider.

ACTIVITY
Based on the previous information, complete the following chart.
Basis of Comparison Good Services
Nature
Transfer of Ownership
Separable
Storage
Perishable
Production and
Consumption