What is product and service in business
Although goods or services are two different things and have their own definition. Let us know two definitions. With this definition you can understand the two main components of business.
- A product is an object. which a consumer can wear, eat, and use in daily activities. For example: clothes of boys and girls, various items of hotel food, and people use mobile phones, cars, motorcycles, etc. every day.
- Service is an intangible thing. Which can only provide convenience and experience to a customer. For example: a teacher can teach a student, see doctor and customer service point of various companies.
I hope you understand what products and services are. Detailed information about goods and service features, history, types, and importance is mentioned below to know in depth about this. Read on to understand how goods and services play an important role in our daily lives and economy.
Features
Let's explore two main components of business: product and service features, quality, and form. Which will give you more idea about the products and services.
Product Features:
Products are the foundation of a business. The means by which a business conducts its business and earns profit by providing goods to customers. Let's take a look at the three features of the product. For example: practical, collectible, and easy to produce and use.
- Practical: The product can be used by a customer. For this he is physically present and can touch the goods.
- Collectable: Products can be stored and used as needed. Also a customer can use it in daily work.
- Ease of production and use: Products can be remanufactured and marketed. Also no knowledge is required to use the product.
Features of the Service
Service is an intangible thing. It is only a customer who takes services to gain knowledge, solve problems, and for his own benefit, and an organization provides services. Let's take a look at the three features of the service. For example: intangible, uncollectible, and production and consumption are the same.
- Intangible: Services are not physically present and intangibility. Services only enable access to benefits and experiences.
- Non-collectible: Services are never collectable. Rather it is through acquiring knowledge and enjoying benefits.
- Production and consumption are the same: Production and consumption of services are the same. All customers have to do the same to use it.
history
History of products and services has quite a long history. The history of goods and services from ancient times to modern times has never ended. It is an ongoing process, which will continue. Let's take a look at the history of two main components of business: goods and services.
Product History:
Bartering was practiced in ancient times and was very popular at that time. Where people or customers exchanged essential goods. It was during this ancient period that animal husbandry, handicrafts, and production of goods began
At that time the transfer of goods was very simple. Artisans made goods and sold them in the market. In this way a commodity was traded and thus the businesses started to expand. As industries began to expand, commercial cities began to develop and trade expanded.
About the 18th and 19th centuries, when the Industrial Revolution started all around and the industry started to take place in a country's economy. The method emerged during the Industrial Revolution. Large factories were set up and mass production began. At the same time, the amount of product production started to increase.
When all countries began to produce goods through factories. Globalization led to the creation of global markets and increased trade between countries. One country increases trade with another country.
The quality and variety of products have increased with the help of modern technology and experts expect it to increase further in the future.
Service history:
In ancient times service delivery was limited locally. such as medical, educational, and religious services. That kind of service is very poor.
After that, some professional trade organizations began to form. Educational institutions and religious institutions continued to develop and at that time they provided various services.
Then during the Industrial Revolution in the 18th and 19th centuries, improvements in railroads, telegraphs, and other means of communication made service delivery easier. This results in the development of professional services. Such as banking, insurance, and legal services.
In today's modern era, services have become smarter. Nowadays, the development of information technology and internet has led to a huge increase in online services and digital services. As a result, the service sector is playing a major role in the modern economy, such as healthcare, education, and IT services.
Types of goods and services
As we said earlier, goods and services are two different things. These two main component types are given below:
Product types
There are three general types of products. Namely: consumer goods, luxury goods, and industrial goods.
- Consumer goods: We use many necessary goods in our daily life. For example: food, clothes, electronics products, mobile phones etc.
- Luxury Goods: We who are rich love luxury. So used for luxurious living. Such as cars, jewelry, two or three houses, etc.
- Artifacts: Various artifacts are required to run a shila. Used for manufacturing process. Like machinery, cotton for clothing etc.
Types of Services
Services are basically of three types. For example: professional services, personal services, and commercial services.
- Professional services: Professionals provide services, such as lawyers, doctors, nurses, etc.
- Personal Services: To meet personal needs. Like salon, spa, bike for commuting etc.
- Business Services: Helps in business operations. Like banking, transportation.
Importance of goods and services in economic terms
Although there are different types and characteristics of goods and services in all business sectors, history shows that goods and services are of immense importance. It is surprising but true that today's world stands on these products and services.
It brings business development and continues to meet customer needs equally. Finally, it can be said that in the modern era, on the one hand, information and technology have developed, just as goods and services have also developed equally. History shows that with the industrial revolution, goods and services also developed at the same pace.
Hence, products and services are an integral part of human life. They not only meet daily needs but also play an important role in economic development. Producing and marketing goods and services helps turn the wheels of the economy and creates jobs.
Conclusion
Products and services are an integral part of our lives. From history to modern times, the needs and patterns of goods and services have changed. They have different types and properties which play important role in our daily life and economy. If used properly, goods and services can contribute significantly to the development of society.
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