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In economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
, economic output is divided into physical goods and intangible services. Consumption
Consumption (economics)

Consumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally consumption is defined by opposition to Production theory basics....
 of goods and services is assumed to produce utility
Utility

In economics, utility is a measure of the relative satisfaction from, or desirability of, consumption of various goods and services. Given this measure, one may speak meaningfully of increasing or decreasing utility, and thereby explain economic behavior in terms of attempts to increase one's utility....
. It is often used when referring to a Goods and Services Tax
Goods and Services Tax

A goods and services tax or value added tax is a tax on exchanges.By country:*Goods and Services Tax *Goods and Services Tax *Goods and Services Tax ...
.

We satisfy our needs and wants by buying goods and services.






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A cosmetic clinic delivers goods and services. the physical goods are the end product only are they ...








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Service Goods Continuum
In economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
, economic output is divided into physical goods and intangible services. Consumption
Consumption (economics)

Consumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally consumption is defined by opposition to Production theory basics....
 of goods and services is assumed to produce utility
Utility

In economics, utility is a measure of the relative satisfaction from, or desirability of, consumption of various goods and services. Given this measure, one may speak meaningfully of increasing or decreasing utility, and thereby explain economic behavior in terms of attempts to increase one's utility....
. It is often used when referring to a Goods and Services Tax
Goods and Services Tax

A goods and services tax or value added tax is a tax on exchanges.By country:*Goods and Services Tax *Goods and Services Tax *Goods and Services Tax ...
.

We satisfy our needs and wants by buying goods and services. Goods are items you can see and touch, such as a book, a pen, a folder etc. Services are provided for you by other people, such as; doctor, dentist, haircut and eating out at restaurants.

The service-goods continuum

The dichotomy between physical goods and intangible services should not be given too much credence. These are not discrete categories. Most business theorists see a continuum with pure service on one terminal point and pure commodity good
Commodity

A commodity is anything for which there is demand, but which is supplied without qualitative product differentiation across a market. It is a product that is the same no matter who produces it, such as petroleum, notebook paper, or milk....
 on the other terminal point. Most products
Product (business)

The noun product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce from the Latin produce, lead or bring forth....
 fall between these two extremes. For example, a restaurant
Restaurant

A restaurant prepares and serves food and drink to customers. Meals are generally served and eaten on premises, but many restaurants also offer take-out and Delivery ....
 provides a physical good (prepared food
Food

Food is any substance, usually composed of carbohydrates, fats, proteins and water, that can be Eating or Drinking by an animal or human for nutrition or pleasure....
), but also provides services in the form of ambiance, the setting and clearing of the table, etc. And although some utilities actually deliver physical goods — like water utilities which actually deliver water — utilities are usually treated as services.

In business, people sometimes talk about the marketing of products and services. This is clearly tautology - services are products. Marketers must draw on the same set of principles and skills to market all products, whether they are apples, oranges or haircuts. Like economists, marketers too view goods and services as two ends of a continuum.

See also

  • Service (economics)
  • List of countries by GDP sector composition
    List of countries by GDP sector composition

    File:2005gdpIndustrial.pngFile:2005gdpServices.pngThis is a list of countries by GDP sector composition based on nominal GDP estimates and sector composition ratios provided by the at market or government official exchange rates with figures in millions of United States dollars....