What is a difference between Product and Service?

Recently I was asked this question and tried to really find some right definition on the web but I reached no where. Please help me in getting an answer to this.

The best answer I know today is Product is a software that you sell and no customization while Service is built to be sold with customizations as per the requirements. Just like a MS Office Software is a product and SAP is a service.

I will really appreciate your comments!

HERE IS THE OUTCOME OF THE DISCUSSION:

http://www.linkedin.com/answers/technology/software-development/TCH_SFT/710030-7689406

discuss-rohit-prabhakar
discuss-rohit-prabhakar

11 thoughts to “What is a difference between Product and Service?”

  1. That’s a really clever answer, Daniel ! I wish I’d thought of that ! One thing though – you’re talking IT-speak, and we’re all talking Business-speak, which might mean that our answers don’t answer your question, even though they’re correct, so maybe you want an answer from an IT person.

    By:

    Paul St John Bennett

    Director at Business Learning Ltd

  2. I agree with Dave. I don’t think your answer is correct.

    A product is tangible, although in the digital world, a product could be a software — which is still tangible in the sense that it is a series of lines of code.

    Customized software is both a product and a service. The original software is a Product purchased by the client from the vendor. The vendor then ALSO provides a service, by installing the program and modifying it to fit the particular needs of that business.

    Many businesses provide both products and services. And products can cross from one category to the next. For example, someone writes a song. That’s a product. A singer performs the song at a concert. That’s a service. The song is recorded and sold on a CD. That’s a product. The CD is played on the radio. That’s a service.

    By:

    Daniel Jatovsky

    Division Leader at Primerica Financial Services

  3. I agree with Dave. I don’t think your answer is correct.

    A product is tangible, although in the digital world, a product could be a software — which is still tangible in the sense that it is a series of lines of code.

    Customized software is both a product and a service. The original software is a Product purchased by the client from the vendor. The vendor then ALSO provides a service, by installing the program and modifying it to fit the particular needs of that business.

    Many businesses provide both products and services. And products can cross from one category to the next. For example, someone writes a song. That’s a product. A singer performs the song at a concert. That’s a service. The song is recorded and sold on a CD. That’s a product. The CD is played on the radio. That’s a service.

    By:

    Daniel Jatovsky

    Division Leader at Primerica Financial Services

  4. That’s a really clever answer, Daniel ! I wish I’d thought of that ! One thing though – you’re talking IT-speak, and we’re all talking Business-speak, which might mean that our answers don’t answer your question, even though they’re correct, so maybe you want an answer from an IT person.

    By:

    Paul St John Bennett

    Director at Business Learning Ltd

  5. I agree with Dave. I don’t think your answer is correct.

    A product is tangible, although in the digital world, a product could be a software — which is still tangible in the sense that it is a series of lines of code.

    Customized software is both a product and a service. The original software is a Product purchased by the client from the vendor. The vendor then ALSO provides a service, by installing the program and modifying it to fit the particular needs of that business.

    Many businesses provide both products and services. And products can cross from one category to the next. For example, someone writes a song. That’s a product. A singer performs the song at a concert. That’s a service. The song is recorded and sold on a CD. That’s a product. The CD is played on the radio. That’s a service.

    By:

    Daniel Jatovsky

    Division Leader at Primerica Financial Services

  6. That’s a really clever answer, Daniel ! I wish I’d thought of that ! One thing though – you’re talking IT-speak, and we’re all talking Business-speak, which might mean that our answers don’t answer your question, even though they’re correct, so maybe you want an answer from an IT person.

    By:

    Paul St John Bennett

    Director at Business Learning Ltd

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