Distinguish between services and products.

Solution

Basis		Services	Products
1.	Tangibility	Intangible - cannot often be physically possessed	Tangible - can be physically possessed.
2.	Inseparability	Inseparable from service provider	Can be separated from the producer
3.	Inventory	Owned capacity cannot be stored	Can be stand for use in future
4.	Perishability	Usually perishable.	Often non-perishable.
5.	Inconsistency	It is difficult to standardise patent quality of a service.	Quality of product can be easily standardised and patented.
6.	Production	Performed, not produced.	Produced
7.	Demand Adjustment	Supply cannot be adjusted easily to demand.	Supply can be adjusted to suit demand.
8.	Ownership	Ownership is not transferred to the buyer	Ownership is transferred to the buyer.