The Halo Effect is a cognitive bias where one attribute of someone/something affects how you think about other, unrelate...Read more
Products are Tangible. Products manage to satisfy a need for the customer. It is much more straightforward to return a product than a service.
Services are intangible. Services are more frequently about developing relationships and trust. When purchasing a service, service ownership is not transferred to the end customer.
Spotify is a service in the way it provides infrastructure to enable a customer to listen to music. It constantly improves this infrastructure, building customer-focused features such as better streaming quality and better song recommendations.
The music that Spotify actually has on its platform are products because the songs are “fixed”.
Websites may not be viewed as tangible objects but they consist of code and files, that are physically located on hosting servers. But website production is done according to the client’s requirements as an intangible service. It is impossible to create a website without close communication with the client.
When making a website, the main goal is to fulfil a particular customer need. So if there is a product, a ready-to-use website that can immediately fulfil that need, development becomes obsolete.
But most clients require an agency to build a unique website, tailored to their business and communication objectives. So website design and development agencies derives there value from the relationship between themselves and the customer.
As a rule, products are standardized and services are customized. With web development, every project is different and customized to each customer’s requirements and preferences. That is why it is also called custom web development and is completely centred on the particular demands of the customer.