Difference between products and services
Product is the sum of the physical and psychological satisfaction that provides to the buyers. It is the idea or object developed by the organizations to offer to the customers. A product refers to anything presented to a market with the intention of gaining attention, being purchased, utilized, or consumed, ultimately fulfilling a specific need or desire of people i.e. customer.
And, service is a complex phenomenon that can be very hard to measure or evaluate. It includes everything from personal help to services sold as products.
The major differences between product and service are listed below in table:
| Basis | Product | Service |
|---|---|---|
| Nature | Products are homogenous in nature. (because they are mass-produced under controlled processes, ensuring consistency.) | Service are heterogeneous in nature. (because they vary based on who delivers them, how they’re delivered, and customer-specific needs.) |
| Tangibility | Product is tangible. (Meaning: product can be seen, touched, and stored.) | Service is intangible. (Meaning: Service is process, experience, or action that cannot be physically seen, touched or stored.) |
| Ownership | Once product is purchased, ownership is transferred from the seller to the buyer. | Once service is taken, no ownership is transferred; the customer only benefits from the service. |
| Durability | Products can be stored for future use. | Services cannot be stored or inventoried. |
| Consumption | Products are produced at first step, then sold, and consumed later. | Service are sold, then produced and consumed. |
| Level of Quality | Quality can often be standardized and checked before delivery. | Quality may vary depending on who delivers the service and how. It depends on various factor like mood, attitude, perception, etc. |
| Sale | Product can be resold. | Service can’t be resold. |
| Demonstration | Product can be demonstrated or inspected. | Service cannot usually be effectively demonstrated or inspected. |
| Perishability | Most of the products are not perishable as they can be stored by the sellers or by buyers | Service are highly perishable as they cannot be stored or are easily destroyable |
| Movability | Product can be transported or transferred. | Service cannot be transported or transferred. |
| Involvement | Customers are not necessary to be involved in manufacturing process of the products. | Customers must be entirely involved in the process from the very beginning to the last. |
Understanding the needs and wants of customers
Every people has their own needs and wants in their lives. Needs are those basic or fundamental requirements which are very essential for surviving, well-being or proper functioning. For example: Food, shelter, water, clothing, safety, communication, etc.
Wants are those desires for specific items, experiences, or services that go beyond the requirement of basic needs. It can vary individual to individual as it is affected by personal preferences, culture, perception and societal influences. Wants are not important for survival, but they enhance quality of life by increasing comfort, satisfaction, or enjoyment.
For example:
Transportation (Need) – A Lamborghini car (Wants)
Clothing (Need) – Gucci Brand Fashion (Wants)
Simple home as Shelter (Need) – Luxury Villa (Wants)
| Basis | Needs | Wants |
|---|---|---|
| Priority | Higher priority | Lower priority |
| Nature | Limited and universal (shared by all humans). | Unlimited and influenced by individual preferences. |
| Impact | Not meeting needs directly affects survival or health of people. | Not meeting wants generally causes inconvenience or dissatisfaction in people. |
In the hospitality or hotel industry, understanding the needs and wants of customer is very crucial for providing exceptional service, satisfaction and creating memorable experiences.
Abraham Maslow, a renowned social scientist, introduced the concept of human needs, which he illustrated through his famous Maslow’s Hierarchy of Needs.
- Physiological Needs
- Safety Needs
- Belonginess and Love Needs
- Self-Esteem Needs
- Self-Actualization Needs
Why do people dine out?
or
Aspects of People Dining Out
Whether its in context with world or Nepal only, dining out has become a common part of modern lifestyles, with more people choosing to eat outside their homes than ever before. Whether it’s to satisfy hunger, save time, celebrate special occasions, or simply enjoy a break from cooking, dining out has become a convenient and enjoyable option for many.
Here below are some of the main reasons why people are increasingly dining out:
- Hunger:
Hunger is a fundamental human need essential for survival. Our bodies require food to provide the energy and nutrients necessary for daily activities and overall health. When hunger strikes, people often turn to dining establishments to fulfill this need, especially when cooking is not a convenient option. Various F&B outlets like restaurants provide to this basic necessity by offering meals.
As highlighted in Maslow’s Hierarchy of Needs, food is a core physiological requirement that must be met to sustain life and well-being.
For example: You might be the student of college and when you feel hungry, you go to college cafeteria for food. - Convenience and Time:
Dining out is often a matter of convenience, especially for people with busy lives. Restaurants offer quick service and easy access, allowing customers to save time on meal preparation and cleaning also. This is particularly important for those who have limited time due to work, school, or other life activities.
For example, many people choose fast food or local FB outlets because they can get a meal quickly without the effort of cooking at home. - Social Aspects:
- Celebrations:
- Socializing:
- Networking:
How do people choose a restaurant?
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Suggestive Selling Skills
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Important Question
- “A good server can save a bad meal, but a great entrée can’t bail out a bad server.” Justify the statement emphasizing the importance of service in compare to product