Similarities Between Goods and Services

In broad terms Goods and services are can be defined as any product that can satisfy human needs and wants. Even thought there are differences between goods and services many similarities can be identified. Similarities between goods and services are explained below:

  • Existence of a process-

Every production involves a process in producing goods and services. In a process the inputs are inserted to the process and outputs are obtained upon processing. Production of goods and services require inputs to go through process the to obtain goods and services as outputs.

  • Use of technology-

Irrespective of whether they are goods or services, production utilizes some kind of technology in producing goods and services. Without a technology (at least a primitive technology) there can not be production of goods and services.

  • Concern for quality-

Quality is the ability of the goods/service to be in fitness for its purpose.   Irrespective of goods or services it is required to produce quality output and failure in quality can lead to closure of firms.

  • Productivity-

Goods and services aim at generating productivity among users.

  • Customer satisfaction-

Goods and services are aimed at fulfilling some kind of a customer need while generating customer satisfaction.

  • Capacity choice-

Producers of goods and services have to make the choice as to how much to produce irrespective of whether they are making goods or services.

  • Location choice-

Producers of goods and services have to make choice on location of the production facility irrespective of whether they areproducing goods or services.

  • Design layouts and production facilities-

Irrespective of output is a good or a service manufacturers have to make decisions on how does they production facilities and output looks like and set up production facilities to produce goods and services.

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