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{{Use dmy dates|date=November 2015}}
{{Use dmy dates|date=November 2015}}
{{Multiple image|caption_align=center|header_align=center
{{Multiple image|caption_align=center|header_align=center
| width =
| total_width = 300px
| image1 = HK SKD TKO 將軍澳 Tseung Kwan O 坑口 Hang Hau 連理街商場 The Lane mall shop 美亞公司 Meyer Stationery color pens May 2023 Px3 02.jpg
| image1 = MUJI PENS (3103937573).jpg
| alt1 = Pens for sale
| alt1 = Pens for sale
| image2 = Barbier in Kaxgar.jpg
| image2 = Barbershop haircutting session (51210140096).jpg
| alt2 = Barbier in Kaxgar
| alt2 = Barber cutting hair
| footer = Pens are physical goods, while barbering is an intangible service.
| footer = Pens are physical goods, while barbering is an intangible service.
}}
}}
{{Capitalism}}
{{Capitalism sidebar}}
{{Economics sidebar}}
{{Economics sidebar}}
'''Goods''' are items that are usually (but not always) [[tangible]], such as pens, physical books, salt, apples, and hats. '''Services''' are activities provided by other people, who include [[Architect|architects]], [[suppliers]], [[contractors]], technologists, [[Teacher|teachers]], [[Doctor (title)|doctors]], lawn care workers, [[dentists]], [[barbers]], [[waiters]], online [[Server_(computing)|servers]], a [[digital book]], a digital [[video game]] or a digital [[movie]]. Taken together, it is the [[Production (economics)|production]], [[distribution (economics)|distribution]], and [[Consumption (economics)|consumption]] of [[goods]] and [[Service (economics)|services]] which underpins all [[economic activity]] and [[trade]]. According to [[Economics|economic theory]], consumption of goods and services is assumed to provide [[utility]] (satisfaction) to the [[consumer]] or end-user, although [[business]]es also consume goods and services in the course of producing other goods and services (see: [[Distribution (marketing)#Channels and intermediaries|Distribution: Channels and intermediaries]]).
'''Goods''' are items that are usually (but not always) [[tangible]], such as pens or apples. '''Services''' are activities provided by other people, such as [[teacher]]s or [[barber]]s. Taken together, it is the [[Production (economics)|production]], [[distribution (economics)|distribution]], and [[Consumption (economics)|consumption]] of [[goods]] and [[Service (economics)|services]] which underpins all [[economic activity]] and [[trade]]. According to [[Economics|economic theory]], consumption of goods and services is assumed to provide [[utility]] (satisfaction) to the [[consumer]] or end-user, although [[business]]es also [[Distribution (marketing)#Channels and intermediaries|consume goods and services]] in the course of producing their own.


== History ==
== History ==
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[[Physiocracy|Physiocratic economists]] categorized production into productive labour and unproductive labour. [[Adam Smith]] expanded this thought by arguing that any economic activities directly related to material products (goods) were productive, and those activities which involved non-material production (services) were unproductive. This emphasis on material production was adapted by [[David Ricardo]], [[Thomas Robert Malthus]] and [[John Stuart Mill]], and influenced later [[Marxian economics]]. Other, mainly Italian, 18th-century economists maintained that all desired goods and services were productive.<ref name="Shubik2014">{{cite book|first=Martin|last=Shubik|title=Proceedings of the Conference Accounting and Economics: In Honour of the 500th Anniversary of the Publication of Luca Pacioli's Summa de Arithmetica, Geometria, Proportions et Propotionalita, Siena, 18-19 November 1992|url=https://books.google.com/books?id=69ngAwAAQBAJ&pg=PA234|date=23 June 2014|publisher=Taylor & Francis|isbn=978-1-135-60837-8|pages=236–237}}</ref>
[[Physiocracy|Physiocratic economists]] categorized production into productive labour and unproductive labour. [[Adam Smith]] expanded this thought by arguing that any economic activities directly related to material products (goods) were productive, and those activities which involved non-material production (services) were unproductive. This emphasis on material production was adapted by [[David Ricardo]], [[Thomas Robert Malthus]] and [[John Stuart Mill]], and influenced later [[Marxian economics]]. Other, mainly Italian, 18th-century economists maintained that all desired goods and services were productive.<ref name="Shubik2014">{{cite book|first=Martin|last=Shubik|title=Proceedings of the Conference Accounting and Economics: In Honour of the 500th Anniversary of the Publication of Luca Pacioli's Summa de Arithmetica, Geometria, Proportions et Propotionalita, Siena, 18-19 November 1992|url=https://books.google.com/books?id=69ngAwAAQBAJ&pg=PA234|date=23 June 2014|publisher=Taylor & Francis|isbn=978-1-135-60837-8|pages=236–237}}</ref>

== Service-goods continuum ==
[[File:Service-goods continuum.png|right|thumb|300px|Service-goods continuum]]

The division of [[consumables]] into services is a simplification: these are not discrete categories. Most [[business theorist]]s see a continuum with pure service at one endpoint and pure tangible [[commodity]] goods at the other. Most [[product (business)|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. Although some utilities, such as [[electricity]] and [[communications service provider]]s, exclusively provide services, other utilities deliver physical goods, such as [[water industry|water utilities]]. For [[Government procurement|public sector contracting]] purposes, the [[electricity]] supply is defined among goods rather than services in the [[Government procurement in the European Union|European Union]],<ref>UK Legislation. [http://www.legislation.gov.uk/uksi/2006/5/pdfs/uksi_20060005_en.pdf "The Public Contracts Regulations 2006"] {{Webarchive|url=https://web.archive.org/web/20141211234007/http://www.legislation.gov.uk/uksi/2006/5/pdfs/uksi_20060005_en.pdf |date=11 December 2014 }}. Regulation 2(1) ''s.v.'' "goods". Retrieved 25 June 2015</ref> whereas under United States [[Government procurement in the United States|federal procurement regulations]], it is treated as a service.<ref>[https://www.acquisition.gov/sites/default/files/current/far/html/Subpart%2041_2.html Federal Acquisition Regulation, Subpart 41.2 — Acquiring Utility Services] {{Webarchive|url=https://web.archive.org/web/20180129112342/https://www.acquisition.gov/sites/default/files/current/far/html/Subpart%2041_2.html |date=29 January 2018 }}, accessed 12 May 2018</ref>

Goods are normally structural and can be transferred in an instant while services are delivered over a period of time. Goods can be returned while a service, once delivered cannot.<ref>{{cite news |url=https://inevitablesteps.com/marketing/difference-between-goods-and-services/ |title=Difference Between Goods and Services: Visual Guide |date=March 3, 2016 |publisher=Inevitable Steps |access-date=March 3, 2016 |archive-date=10 February 2019 |archive-url=https://web.archive.org/web/20190210134328/http://inevitablesteps.com/marketing/difference-between-goods-and-services |url-status=dead }}</ref> Goods are not always tangible and may be virtual e.g. a book may be paper or electronic.

[[Marketing]] theory makes use of the service-goods continuum as an important concept<ref>Indiaclass, [http://www.indiaclass.com/goods-service-continuum/ "Goods Service Continuum"]. Accessed 25 June 2015. {{webarchive |url=https://web.archive.org/web/20150425135605/http://www.indiaclass.com/goods-service-continuum/ |date=25 April 2015 }}</ref> which "enables marketers to see the relative goods/services composition of total products".<ref>Bachelors of Management Students Portal (BMS.co.in). [http://www.bms.co.in/explain-the-goods-service-continuum/ "Explain the Goods-Service Continuum"] {{Webarchive|url=https://web.archive.org/web/20150401013958/http://www.bms.co.in/explain-the-goods-service-continuum/ |date=1 April 2015 }}, accessed 25 June 2015</ref>

In a narrower sense, service refers to [[Quality (business)|quality]] of [[customer service]]: the measured appropriateness of assistance and support provided to a customer. This particular usage occurs frequently in [[retailing]].<ref>{{cite web |url=http://www.theseus.fi/bitstream/handle/10024/6350/Mattsson_Katriina.pdf |title=Customer satisfaction in the retail market |last=Mattsson |first=Katriina |date=2009 |website=Theseus |pages=15–16 |access-date=18 November 2015 |archive-date=4 August 2016 |archive-url=https://web.archive.org/web/20160804105853/http://www.theseus.fi/bitstream/handle/10024/6350/Mattsson_Katriina.pdf |url-status=live }}</ref>


== In international law ==
== In international law ==
{{Further|International (Nice) Classification of Goods and Services}}
{{Further|International (Nice) Classification of Goods and Services}}


Distinctions are made between goods and services in the context of [[International trade law|international trade liberalization]]. For example, the [[World Trade Organization]]'s [[General Agreement on Tariffs and Trade]] (GATT) covers international trade in goods<ref>[[World Trade Organization|WTO]], [https://www.wto.org/english/tratop_e/gatt_e/gatt_e.htm GATT and the Goods Council] accessed 17 November 2015</ref> and the [[General Agreement on Trade in Services]] (GATS) covers the [[Tertiary sector of the economy|services sector]].<ref>WTO, [https://www.wto.org/english/tratop_e/serv_e/serv_e.htm Services trade], accessed 17 November 2015</ref>
Distinctions are made between goods and services in the context of [[International trade law|international trade liberalization]]. For example, the [[World Trade Organization]]'s [[General Agreement on Tariffs and Trade]] (GATT) covers international trade in goods<ref>[[World Trade Organization|WTO]], [https://www.wto.org/english/tratop_e/gatt_e/gatt_e.htm GATT and the Goods Council] {{Webarchive|url=https://web.archive.org/web/20151118010233/https://www.wto.org/english/tratop_e/gatt_e/gatt_e.htm |date=18 November 2015 }} accessed 17 November 2015</ref> and the [[General Agreement on Trade in Services]] (GATS) covers the [[Tertiary sector of the economy|services sector]].<ref>WTO, [https://www.wto.org/english/tratop_e/serv_e/serv_e.htm Services trade] {{Webarchive|url=https://web.archive.org/web/20160110061401/https://www.wto.org/english/tratop_e/serv_e/serv_e.htm |date=10 January 2016 }}, accessed 17 November 2015</ref>


== See also ==
== See also ==
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*[[Tertiary sector of the economy]]
*[[Tertiary sector of the economy]]
*[[Three-sector model]]
*[[Three-sector model]]
*[[Universal basic services]]
{{colend}}
{{colend}}
{{clear}}
{{clear}}
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== Further reading ==
== Further reading ==
{{refbegin}}
{{refbegin}}
*{{cite book | last1=Hendrickson | first1=C.T. | last2=Lave | first2=L.B. | last3=Matthews | first3=H.S. | title=Environmental Life Cycle Assessment of Goods and Services: An Input-Output Approach | publisher=Taylor & Francis | year=2010 | isbn=978-1-136-52549-0 | url=https://books.google.com/books?id=FZ2VUOX1gbAC}} 274 pages.
*{{cite book | last1=Hendrickson | first1=C.T. | last2=Lave | first2=L.B. | author2-link=Lester Lave | last3=Matthews | first3=H.S. | title=Environmental Life Cycle Assessment of Goods and Services: An Input-Output Approach | publisher=Taylor & Francis | year=2010 | isbn=978-1-136-52549-0 | url=https://books.google.com/books?id=FZ2VUOX1gbAC }} 274 pages.
*{{cite book | last1=Murley | first1=L. | last2=Wilson | first2=A. | title=The Distribution of Goods and Services | publisher=Rosen Central | series=Dollars and sense: a guide to financial literacy | year=2011 | isbn=978-1-4488-4710-5 | url=https://books.google.com/books?id=7FGgXZUm8BoC}} 64 pages.
*{{cite book | last1=Murley | first1=L. | last2=Wilson | first2=A. | title=The Distribution of Goods and Services | publisher=Rosen Central | series=Dollars and sense: a guide to financial literacy | year=2011 | isbn=978-1-4488-4710-5 | url=https://books.google.com/books?id=7FGgXZUm8BoC }} 64 pages.
*Smith, Adam. ''[http://www.gutenberg.org/ebooks/3300 The Wealth of Nations]'' at [[Project Gutenberg]]
*Smith, Adam. ''[http://www.gutenberg.org/ebooks/3300 The Wealth of Nations] {{Webarchive|url=https://web.archive.org/web/20151027042942/http://www.gutenberg.org/ebooks/3300 |date=27 October 2015 }}'' at [[Project Gutenberg]]
{{refend}}
{{refend}}


Latest revision as of 05:41, 31 July 2024

Pens for sale
Barber cutting hair
Pens are physical goods, while barbering is an intangible service.
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Goods are items that are usually (but not always) tangible, such as pens or apples. Services are activities provided by other people, such as teachers or barbers. Taken together, it is the production, distribution, and consumption of goods and services which underpins all economic activity and trade. According to economic theory, consumption of goods and services is assumed to provide utility (satisfaction) to the consumer or end-user, although businesses also consume goods and services in the course of producing their own.

History

[edit]
Further information: Productive and unproductive labour

Physiocratic economists categorized production into productive labour and unproductive labour. Adam Smith expanded this thought by arguing that any economic activities directly related to material products (goods) were productive, and those activities which involved non-material production (services) were unproductive. This emphasis on material production was adapted by David Ricardo, Thomas Robert Malthus and John Stuart Mill, and influenced later Marxian economics. Other, mainly Italian, 18th-century economists maintained that all desired goods and services were productive.[1]

Service-goods continuum

[edit]
Service-goods continuum

The division of consumables into services is a simplification: these are not discrete categories. Most business theorists see a continuum with pure service at one endpoint and pure tangible commodity goods at the other. 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. Although some utilities, such as electricity and communications service providers, exclusively provide services, other utilities deliver physical goods, such as water utilities. For public sector contracting purposes, the electricity supply is defined among goods rather than services in the European Union,[2] whereas under United States federal procurement regulations, it is treated as a service.[3]

Goods are normally structural and can be transferred in an instant while services are delivered over a period of time. Goods can be returned while a service, once delivered cannot.[4] Goods are not always tangible and may be virtual e.g. a book may be paper or electronic.

Marketing theory makes use of the service-goods continuum as an important concept[5] which "enables marketers to see the relative goods/services composition of total products".[6]

In a narrower sense, service refers to quality of customer service: the measured appropriateness of assistance and support provided to a customer. This particular usage occurs frequently in retailing.[7]

In international law

[edit]
Further information: International (Nice) Classification of Goods and Services

Distinctions are made between goods and services in the context of international trade liberalization. For example, the World Trade Organization's General Agreement on Tariffs and Trade (GATT) covers international trade in goods[8] and the General Agreement on Trade in Services (GATS) covers the services sector.[9]

See also

[edit]

References

[edit]
  1. ^ Shubik, Martin (23 June 2014). Proceedings of the Conference Accounting and Economics: In Honour of the 500th Anniversary of the Publication of Luca Pacioli's Summa de Arithmetica, Geometria, Proportions et Propotionalita, Siena, 18-19 November 1992. Taylor & Francis. pp. 236–237. ISBN 978-1-135-60837-8.
  2. ^ UK Legislation. "The Public Contracts Regulations 2006" Archived 11 December 2014 at the Wayback Machine. Regulation 2(1) s.v. "goods". Retrieved 25 June 2015
  3. ^ Federal Acquisition Regulation, Subpart 41.2 — Acquiring Utility Services Archived 29 January 2018 at the Wayback Machine, accessed 12 May 2018
  4. ^ "Difference Between Goods and Services: Visual Guide". Inevitable Steps. 3 March 2016. Archived from the original on 10 February 2019. Retrieved 3 March 2016.
  5. ^ Indiaclass, "Goods Service Continuum". Accessed 25 June 2015. Archived 25 April 2015 at the Wayback Machine
  6. ^ Bachelors of Management Students Portal (BMS.co.in). "Explain the Goods-Service Continuum" Archived 1 April 2015 at the Wayback Machine, accessed 25 June 2015
  7. ^ Mattsson, Katriina (2009). "Customer satisfaction in the retail market" (PDF). Theseus. pp. 15–16. Archived (PDF) from the original on 4 August 2016. Retrieved 18 November 2015.
  8. ^ WTO, GATT and the Goods Council Archived 18 November 2015 at the Wayback Machine accessed 17 November 2015
  9. ^ WTO, Services trade Archived 10 January 2016 at the Wayback Machine, accessed 17 November 2015

Further reading

[edit]
[edit]
Library resources
By Goods and services
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