Confused about Service vs Factory

Question

As I understand it, when inside a factory I return an object that gets injected into a controller. When inside a service I am dealing with the object using this

Answer 1

Adding to the first answer, I think .service() is for people who have written their code in more object oriented style(C#/Java) (using this keyword and instantiating object via prototype/Constructor function).

Factory is for developers who write code which is more natural to javascript/functional style of coding.

Take a look at the source code of .service and .factory method inside angular.js - internally they all call provider method:

  function provider(name, provider_) {
    if (isFunction(provider_)) {
      provider_ = providerInjector.instantiate(provider_);
    }
    if (!provider_.$get) {
      throw Error('Provider ' + name + ' must define $get factory method.');
    }
    return providerCache[name + providerSuffix] = provider_;
  }

  function factory(name, factoryFn) { \
    return provider(name, { $get: factoryFn }); 
  }

  function service(name, constructor) {
    return factory(name, ['$injector', function($injector) {
      return $injector.instantiate(constructor);
    }]);
  }