The Service-Goods Continuum

The service-goods continuum

The dichotomy between physical goods and intangible services should not be given too much credence. These are not discrete categories.

Most business theorists see a continuum with pure service on one terminal point and pure commodity good on the other terminal point.

Most products fall between these two extremes. For example, a restaurant provides a physical good (the food), but also provides services in the form of ambience, the setting and clearing of the table, etc. And although some utilities actually deliver physical goods — like water utilities which actually deliver water — utilities are usually treated as services.
Products today have a higher service component than in previous decades. In the management literature this is referred to as the servitization of products.

Virtually every product today has a service component to it.

Many products are being transformed into services.



SOURCE  - Wikipedia