Final answer:
The correct answer is False because a good or product has tangible attributes that can be perceived through the senses, while what defines a service is its intangibility. Services do contribute to product differentiation through intangible aspects such as guarantees, reputation, and advertising influence.
Step-by-step explanation:
The statement provided by the student contains an inaccuracy. An entity or a thing with intangible attributes cannot be perceived through the five senses and thus would not be considered a good or product; it would more accurately be classified as a service. Goods are tangible items that can indeed be perceived through the senses. By contrast, a service is an economic product that is intangible, such as haircuts, insurance, dental visits, or banking services. Although services are intangible, they differentiate products through aspects like satisfaction guarantees, quality reputation, included services like free delivery, or additional offers like loans.
While intangible aspects cannot be sensed directly, they can influence consumer behavior and create product differentiation in the minds of buyers. This occurs partly through advertising, which can shape preferences for brands, even in cases where there is little to no tangible difference between products. Therefore, the correct answer to the student's question is Option 2: False.