Goods and services

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Items are real items, such as pens, salt, apples, oganesson, and hats. Services are activities provided by others, including doctors, garden maintenance workers, dentists, barbers, waiters, or online servers. Taken together, it is the production, distribution, and consumption of goods and services that support all economic and trade activities. According to economic theory, consumption of goods and services is assumed to provide utility (satisfaction) to consumers or end users, even though businesses also consume goods and services in the process of producing other goods and services.

Video Goods and services

Histori

The "organizational" economists classify production into productive labor and unproductive labor. Adam Smith extends this thinking by stating that any economic activity directly related to material products is productive, and activities involving non-productive (service) production are unproductive. This emphasis on material production was adapted by David Ricardo, Thomas Robert Malthus and John Stuart Mill, and influenced the Marxian economy in the future. Other economists, especially Italy, of the 18th century maintained that all the goods and services desired were productive.

Maps Goods and services

Kontinum stuff

The distribution of consumables into services is a simplification: this is not a discrete category. Most business theorists see a continuum with pure service at one endpoint and pure commodity goods on the other. Most products fall between these two extremes. For example, restaurants provide physical food (fast food), but also provide services in the form of ambience, arrangement and cleaning of tables, etc. Although some utilities, such as power and communications service providers, exclusively provide services, other utilities transmit physical goods, such as water utilities. For the purposes of public sector contracts, power supplies are defined among goods and non-services in the European Union, whereas under US federal procurement rules are treated as services.

Goods are usually structural and can be transferred in an instant while services are shipped over a period of time. Items can be returned while the service never delivered. Goods are not always real and may be virtual eg a book may be paper or electronic.

Marketing theory makes use of the goods-service continuum as an important concept that enables marketers to see the composition of the relative goods/services of the total product.

In a narrow sense, the service refers to the quality of customer service: the suitability of the support and the measured support provided to the customer. This particular use often occurs in retail.

Circular Flow of Goods and Services - YouTube

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