This document discusses the key characteristics of services: 1. Intangibility - Services cannot be seen, felt or tested which creates uncertainty. Marketers use physical evidence to communicate quality. 2. Inseparability - Production, delivery and consumption occur simultaneously through customer interaction. Technology can reduce direct interaction. 3. Variability - It is difficult to standardize services as no two experiences will be the same due to different customers and circumstances. The document examines these and other characteristics including perishability, customer participation, time importance, and different distribution channels for services compared to goods. Services are difficult for customers to evaluate and involve customers in co-production.