Tangibility & Intangibility Scale - Service Delivery System
Products are things, services are ideas and concepts. From the figure you can see that there is no such thing as a 'pure' service. Is it sale of tyres, a product or a tyre fitting service? Is it shopping for pizza (a product) or eating a pizza in a restaurant which is a service. In the case of legal service, what is being purchased is advice or in insurance service, a promise. There is a spectrum where the product (tangible) or service (intangible - meaning subjective) component varies in contribution.
Products are sold as part of a product/service bundle just as services are sold as a service/product bundle. Voss et al (1985) refers to a service package which consists of both physical items as well as subjective and intangible elements such as services. In most cases Voss argues that there is more than one service provided and cites hotels services as an example. Voss goes on to suggest that in evaluation a service encounter, the consumer assesses three elements: