Product vs. Service
A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form. Every product is made at a cost and each is sold at a price. The price that can be charged depends on the market, the quality, the marketing and the segment that is targeted. Each product has a useful life after which it needs replacement, and a life cycle after which it has to be re-invented. A service on the other hand is the production of an essentially intangible benefit, either in its own right or as a significant element of a tangible product, which through some form of exchange, satisfies an identified need. Sometimes services are difficult to identify because they are closely associated with a good.
Shoes is a tangible item produced and offered by different manufacturers to customers. It is obviously a product but, shoes business can also engage themselves in offering services for customers in exchange for money or payment . This service I am talking about is different from the customer service offered by the company regarding the concerns of the consumers about their purchased product. Some companies also offers services which could lead to a higher sales or profit. One example of this set up, who offers both product and service is the Nike Inc., it is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and sales of footwear, apparel, equipment, accessories and services.
The company launched a service in 2012 where in the customers can customize clothing purchased from Nike. The customer becomes the designer as they change and add a personal look and feel to a selected item. The service can be accessed both online from their homepage and in physical branches (called NIKEiD Studios) which are situated in parts of France, England, Main Land Europe, China and the USA. In total, NIKEiD has 102 studios where customer can access the customization design service.
Example of Nike Products
Nike Services (NikeID)
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