Goods and services; of utilities or
In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the “good” is a “bad”). It is often used when referring to a Goods and Services Tax.
The output of goods and services is used in calculating measures of national income and output, such as gross domestic product.
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 on the other terminal point. Most products fall between these two extremes. For example, a restaurant provides a physical good (prepared food), but also provides services in the form of ambience, 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 be apples, oranges or haircuts. Like economists, marketers too view goods and services as two ends of a continuum.
See also
- Service
- List of countries by GDP sector composition