Final answer:
Services are intangible and often produced in the presence of the customer, while goods can be stored as inventories and have physical aspects that can be advertised.
Step-by-step explanation:
The student's question is about the nature of services in contrast to physical goods. Services are different from tangible products in that they are not physical items that can be stored or produced before they are sold. Instead, services often have to be produced in the presence of the customer and are intangible, meaning they cannot be seen, touched, or stored in inventory.
Goods can be durable or nondurable, can be stored as inventories, and their physical aspects are often highlighted in advertisements. The location of a firm providing a service or selling goods can create a competitive advantage, for example, a gas station at a busy intersection or a components supplier near a factory.