In what way do services differ from tangible goods?

Services differ from tangible goods primarily in their intangibility, which means that services cannot be seen, touched, or physically owned like a product can. This characteristic fundamentally shapes the way services are marketed and consumed. When a consumer engages in a service—such as a haircut, a concert, or a consultation—they are experiencing an activity or a set of benefits rather than acquiring a physical item.

The concept of intangibility also influences several aspects of service marketing, from the way services are promoted to how they are delivered and evaluated by consumers. Unlike tangible goods, which customers can evaluate based on their physical attributes before purchasing, services often require consumers to rely on other indicators of quality, such as reviews, recommendations, or brand reputation.

This fundamental difference clarifies why ownership cannot be assigned to services in the same way it is for physical products, making it a key distinguishing factor within the marketing landscape.