| Basis | Product | Service |
| Tangibility | A product is tangible, it is physical and can be A product is tangible, it is physical and can be | A service is intangible, can only be felt and not touched |
| Value | Product value is derived by the customer | Value of service is offered by the service provider |
| Customer | Customer care of the product is limited | Customer care forms critical component of marketing a service |
| Uses | A product can be stored for future use | A service is perishable and cannot be stored for later use or sale |
| Ownership | A product can be owned | A service cannot be owned by the consumer once payment has been made |
| Quality | The quality of a product depends its nature | Quality of a service depends on the service provider who shapes it |
| Return | A product can be returned to the seller | A service cannot be returned to the seller |
| Billing | The billing process of a service is a once off transaction | Billing process can be continuous in the form of subscriptions for services rendered |
| Compare | It is easy to compare quality of products | It is difficult to compare the quality of services offered |
| Quantity | Products can be quantified numerically | Services cannot be quantified in terms of numbers. |
