2. Characteristics of Services
INTANGIBILITY HETROGENITY PERISHIBILITY INSEPRATEABLITY
Services cannot
be seen, felt,
tasted, or
touched in the
same manner
that you can
sense tangible
goods.
Neither two
services will be
precisely alike
nor two
customers will
be alike;
Services can not
be standardized
due to human
encounters
Services cannot
be saved,
stored, resold, or
returned.
Services are
simultaneously
produced and
consumed
3. COMPARING GOODS & SERVICES
INTANGIBILITY HETROGENITY PERISHIBILITY INSEPRATEABLITY
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GOODS SERVICES RESULTING IMPLICATIONS /CHALLENGES
Tangible Intangible
Services cannot be inventoried.
Services cannot be easily patented.
Services cannot be readily displayed or communicated.
Pricing is difficult
Standardised Heterogenous
Service delivery and customer satisfaction depend on employee and
customer actions.
Service quality depends on many uncontrollable factors. There is no
sure knowledge that the service delivered matches what was planned
and promoted
Non perishable Perishable
It is difficult to synchronize supply and demand with services.
Services cannot be returned or resold. Services for any given time-
period cannot be sold or delivered at a later date.
Production
separate from
consumption
Simultaneous
production and
consumption
Customers participate in and affect the transaction.
Customers affect each other.
Employees affect the service outcome.
Decentralization may be essential.
Mass production is difficult