Understanding Service And Product

 Hospitality industry is important form of tourism industry. The service industry places the customer as central focus and people includes both internal and external people. Internal people are those who generate service while external people are customers, suppliers , government officials e.t.c

Product and service



  • Product is anything that can be offered to a market for use , consumption , attention. It satisfy want/ need and includes physical objects  while service is the result of the application of skill and expertise. Service are intangible , expensive, perishable and hard to standardize.


  • Services are expensive because they are delivered mostly by people . The greater is the skill of the server , the greater is the cost of the service.


  • Service are provided by people and is difficult to standardize it. It is provided by people and may varied based on their mood from day to day


  • Services are intangible and rely in experience they produce to measure. Experience varies according to people


  • Services cannot be stored . It should be consumed immediately.  A product can be stored for months before it is used.


  • Services are perishable as revenue loss for that day is lost and cannot be sell again in that day


  • Services are largely based on reputation and word of mouth . 


  • In service, the time period between demand by customer and supply of request is very short . Sometime immediate while product in other hand is produced months before being sold


  • In service, server is face to face with customers when customer demands product while  product are prepared standardly without compromising small details what Customer wants or not. 


  • Products are tangible i.e they can be touch , seen , feel while service cannot


  • Product can be quantified and comes in different shape , size 


  • Product can be separated from owner once purchase completed


  • It is easier to return product to the seller if customer is not satisfied. Customer will get replacement of return product


  • It is very easily to compare quality of products


  • A service has shorter shelf life.



Post a comment

0 Comments