Consumers are increasingly demanding more services with the goods they buy. For example, in the personal computer business successful companies offer reliable equipment coupled with extensive, free technical telephone support services. Both together are the product the customer buys. Differences Between Goods and Services. Since both are products, this distinction is not usually necessary.
Goods have a physical existence.
Services are deeds performed for a customer. Simultaneous production and consumption. Services are produced and consumed at the same time. Products are produced first then sold for later consumption. Services cannot be stored for later use.