Final answer:
When no tangible product is included with a service, it is referred to as an 'intangible product.' Services like haircuts or banking are valued for their non-physical benefits and are differentiated by aspects like quality reputation or supplementary offers.
Step-by-step explanation:
When a tangible product is NOT included in the service, it is called an intangible product. This concept reflects the idea that some economic products, such as haircuts, insurance, or banking services, are non-tangible yet still hold value for which people are willing to pay. Unlike tangible goods like food products or appliances, services do not have a physical presence but can fulfill a customer's needs or wants.
Intangible products can often be differentiated from one another based on aspects like a satisfaction guarantee, reputation for high quality, or additional offerings such as free delivery. These factors, along with advertising, can influence consumer preferences for certain brands, even if the actual products, such as varieties of ketchup or mayonnaise, are quite similar. This differentiation occurs in the minds of buyers and is a key aspect of marketing intangible products.