<P> According to Fitzsimmons, Fitzsimmons and Bordoloi (2014) differences between manufactured goods and services are as follows: </P> <Ul> <Li> Simultaneous production and consumption . High contact services (e.g. haircuts) must be produced in the presence of the customer, since they are consumed as produced . As a result services cannot be produced in one location and transported to another, like goods . Service operations are therefore highly dispersed geographically close to the customers . Furthermore, simultaneous production and consumption allows the possibility of self - service involving the customer at the point of consumption (e.g. gas stations). Only low - contact services produced in the "backroom" (e.g., check clearing) can be provided away from the customer . </Li> <Li> Perishable . Since services are perishable, they cannot be stored for later use . In manufacturing companies, inventory can be used to buffer supply and demand . Since buffering is not possible in services, highly variable demand must be met by operations or demand modified to meet supply . </Li> <Li> Ownership . In manufacturing, ownership is transferred to the customer . Ownership is not transferred for service . As a result, services cannot be owned or resold . </Li> <Li> Tangibility . A service is intangible making it difficult for a customer to evaluate the service in advance . In the case of a good, customers can see it and evaluate it . Assurance of quality service is often done by licensing, government regulation, and branding to assure customers they will receive a quality service . </Li> </Ul> <Li> Simultaneous production and consumption . High contact services (e.g. haircuts) must be produced in the presence of the customer, since they are consumed as produced . As a result services cannot be produced in one location and transported to another, like goods . Service operations are therefore highly dispersed geographically close to the customers . Furthermore, simultaneous production and consumption allows the possibility of self - service involving the customer at the point of consumption (e.g. gas stations). Only low - contact services produced in the "backroom" (e.g., check clearing) can be provided away from the customer . </Li> <Li> Perishable . Since services are perishable, they cannot be stored for later use . In manufacturing companies, inventory can be used to buffer supply and demand . Since buffering is not possible in services, highly variable demand must be met by operations or demand modified to meet supply . </Li>

Refers to managing the daily production of goods and services