Learn: Goods vs Services

Welcome!You've already learned about what a business is and why businesses exist. Now, let's build on that by exploring goods and services. These are key things a business provides to meet customer needs.

What are Goods?Goods are physical items that businesses produce and sell. Examples include food, clothes, and electronics. Goods are tangible, meaning you can touch and see them.

What are Services?Services are actions or activities provided by businesses to customers. Examples include haircuts, legal advice, and teaching. Services are intangible, meaning you cannot touch them.

Key DifferencesGoods are physical items that customers can keep, while services are activities or benefits that customers experience. For example, buying a car (good) is different from paying for a taxi ride (service).

Examples of Goods vs ServicesBusinesses can provide both goods and services. For example, a hotel provides rooms (goods) and cleaning services (services). This mix can help businesses attract different types of customers.

Why Businesses Provide Goods and ServicesBusinesses aim to meet customer needs and wants by offering a mix of goods and services. For example, a restaurant provides food (goods) and table service (services).

Review Time!Fantastic work! You've learned about goods and services, their differences, and examples. Let's do a quick review to test your understanding.