This document outlines 5 key characteristics of services: 1. Intangibility - Services cannot be touched, seen, tasted, or smelled in the same way as physical products. They are also difficult to explain, display, and set prices for. 2. Inseparability of production and consumption - Services are performed and consumed simultaneously. Mass production of services is challenging due to the involvement of people. 3. Heterogeneity - It is difficult to standardize services as their delivery can vary depending on people and conditions. 4. Perishability - Services cannot be stored or saved for later like physical inventory. Demand fluctuates based on factors like season and weather. 5. Ownership - With

1. Services…
..
a bundle of performance and
symbolic attributes designed
to produce consumer want
satisfaction.

2. Tangible / Intangible
Attributes
• Tangible • Intangible
– touch – can’t see
– see – can’t touch
– taste – can’t smell
– smell – can’t taste

3. 4 Characteristics of
Services
1. Intangibility -
2. Production (or performing the service)
and Consumption (using the service) -
happens at the same time
3. Heterogeneity - services are not always
delivered the same way
4. Perishability - cannot be put in inventory
or stored for later use
ie. You can’t buy 2 haircuts

4. Characteristics of
Services
1. Intangibility - “u can’t touch this”
• Services cannot be stored
• Services cannot be protected through patents
- therefore a really great travel package and service
can be copied
a really great physical object can be patented, and
NOT allowed to be copied

5. Contd………….Characteristics of
Services
Contd….. Intangibility –
“u can’t touch this”
• Hard to explain and display Services
if you can’t see them
• Prices are difficult to set - depends
on customers expectations

6. Contd….. Intangibility
…….. Intangibility - “u can’t touch this”
Marketing Strategies
• stress tangible cues, e.g.. Smiling face
• use personal information, sources, references
• use word-of-mouth
• contact customers after they buy to stimulate
continued enthusiasm and hope they “talk it up”

7. Characteristics of Services
2. Inseparability of Production (or
performing the service) and Consumption
(using the service) - happens at the same
time
• Many people involved in delivering
a service
• mass production of services is
hard to do

8. Contd…. Inseparability of Production (or
performing the service) and Consumption
(using the service) - happens at the same
time
Marketing Strategies
• Emphasize how much you train your people - so
their ability to give you good service will be high
• Have many locations so customers can get to you
• ie. Insurance sales come to your home

9. Characteristics of Services
3. Heterogeneity - services are not
always delivered the same way
It is very difficult to standardize services
e.g.. A machine can make ice cream cones a
standard size 100% of the time
A person filling an ice cream cone with a
scoop cannot do it the same amount each
time, unless you use a machine to dispense
the ice cream

10. Contd…. Heterogeneity –
services are not always delivered the same
way
It is very difficult to standardize services
e.g.. A Taxi driver cannot drive you to the
office in exactly the same time each day
because the traffic patterns change
e.g.. A travel agent can sell you a vacation
package - but cannot guarantee you will like
the trip exactly the same way another tourist
did.

11. haracteristics of Services
4. Perish ability - cannot be put in
inventory or stored for later use
i.e.. You can’t buy 2 haircuts
Demand fluctuates and changes,
sometimes depending on the season, or
weather
e.g.. Taxi in the rain, vacation in summer

12. Characteristics of Services
5. Ownership: - Ownership is the only
distinctive feature which separates
product from service:
HOW? Product industry involves
owner ship of goods where as in
service industry customer may have
to access for the use of service or
product.