Characteritics of
Services
Name: SUJAL BOSE
Regd no: 230409120005
INTRODUCTION
Characteristics of services are fluctuating demand,
intangibility, inseparability, heterogeneity, or
variability, pricing of services, service quality is
not statistically measurable, perishability, user
participation, lack of ownership, etc.
• Services are understood as the intangible
activities that a business or individual offers to
other individuals or businesses as customers and
ensure customer satisfaction. A service firm may
offer personal services, perishability services as
well as personal care services, and
complementary services to the target audiences
by incorporating some special characteristics of
services.
Definition Of Services
Services are the special types of products that are comprised of
activities, advantages, or customer satisfaction offered and available
to be purchased. These services are intangible, plus they don’t result
in the ownership of anything.
Services are often differentiated from products. Generally, products
are tangible, meaning they can be felt or touched while services are
intangible. Users always crave better service while the service
provider ensures consistent quality in its service to optimize customer
satisfaction. Let us now delve into different characteristics associated
with the service industries-
CHARACTERISTICS OF SERVICES
1. PERISHABILITY
2. FLUCTUATING DEMANDS
3. SERVICE INTANGIBILITY
4. SERVICE VARIABILITY(HETROGENEITY)
5. LACK OF OWNERSHIP
6. USER PARTICIPATION
Perishability
• Perishability is a characteristic of products and services that do not allow for the
product or service to be stored for sale at a future date.
• To understandperishability, think of foods which are perishable. Foods that have a
short shelf life are said to be "perishable" since they will decay within a short
amount of time.
• Any products or services which cannot be stored are said to be "perishable.“
• Perishability is important for businesses because it determines sale prices,
inventory levels, and marketing strategies for a given product.
• Businesses use custom tactics, such as dynamic pricing, to mitigate adverse
impacts to their business from perishability of their services.
FLUCTUATING DEMANDS
Fluctuating demand refers to the phenomenon where demand for a product or service fluctuates greatly
over time, as opposed to steady demand. This type of demand is often seen in seasonal businesses and
can have a major impact on businesses that are unprepared or unable to adjust their production and
inventory levels according to the changing demand. Fluctuating demand can be managed through
careful planning and forecasting, as well as maintaining flexibility in production and inventory levels.
Some examples of fluctuating demand include:
•Seasonal businesses, such as winter apparel and summer beach equipment, often experience
fluctuating demand due to changing weather patterns and seasonal trends.
•Tourism-related businesses, such as entertainment and hospitality, can see dramatic fluctuations in
demand due to changes in tourism or travel patterns.
SERIVICE INTANGIBILITY
Service intangibility means that the delivered services are non-physical. Therefore, the
level of appreciation of its value, attributes, and outcomes are significantly low since they
can only be experienced when they are bought. The nature of human beings is such that
they are quick to incorporate things they can see and feel into their lives with ease. For
example, when a person sees a building, they can quickly notice its value and buy it,
which may not be the case for an online coach or a surgeon because people cannot see
the intangible outcome.
The following are service intangibility characteristics:
•They are untouchable. Consumers are incapable of touching, tasting, and seeing what a
business is marketing or selling to them because they are abstract.
•The businesses have no inventories. The nature of intangible services flows from the
person or firm giving it. For example, an online coach has advice and counsel to offer to
clients who are incapable of being stored somewhere, waiting for clients. They can only be
used and not stored.
SERVICE
VARIABILITY(HETROGENEITY)
Service variability, also known as heterogeneity, refers to the inherent
inconsistency in service quality and delivery, meaning that services can vary
significantly from one provider to another or even from one encounter to the
next. This characteristic, along with intangibility, inseparability, and perishability,
distinguishes services from goods.
Examples:
•Restaurant Service: The quality of food and service can vary significantly between
different restaurants, or even between different visits to the same restaurant.
•Customer Service: The level of knowledge, helpfulness, and efficiency of a
customer service representative can vary.
•Haircuts: The style and quality of a haircut can vary depending on the stylist.
LACK OF OWNERSHIP
One of the defining characteristics of services is the lack of ownership. Unlike
physical goods, which customers can buy, possess, and store, services are
experienced but not owned. When a customer purchases a service, they are
essentially paying for access, expertise, or convenience rather than acquiring a
tangible product.
For example:
• A Netflix subscription grants access to movies and shows, but users do not own
the content.
• A taxi ride provides transportation, but passengers do not own the vehicle.
• A gym membership allows access to fitness facilities, but the customer does not
own the gym equipment.
USER PARTICIPATION
User participation plays a critical role in service delivery, as customers are often directly
involved in the production and consumption process. Unlike physical goods, where value is
created before the purchase, services are co-create through customer interaction.
For Example:-
•Technology: User feedback on software, website design, and app development.
•Healthcare: Patient involvement in treatment planning and research.
•Research: User involvement in the design and implementation of research studies.
•Community Engagement: Citizen participation in local government decision-making.
•Social Media: User-generated content, comments, and discussions.
CONCLUSION
The unique characteristics of services—intangibility, inseparability, perishability, variability, and lack of
ownership—make them fundamentally different from physical goods. These traits present both
challenges and opportunities for businesses, requiring them to focus on customer experience, quality
management, and efficient service delivery.
To succeed in the service industry, businesses must:
•
Overcome intangibility by building strong brand reputation and using tangible cues (e.g.,
ambiance, customer reviews).
•
Manage inseparability by ensuring high-quality interactions between service providers and
customers.
•
Address perishability with demand forecasting, dynamic pricing, and capacity management.
Reduce variability by standardizing processes and investing in employee training.
•
Compensate for lack of ownership by offering value through personalization, convenience, and
subscription-based models.
By understanding and strategically managing these characteristics, companies can enhance service
quality, improve customer satisfaction, and maintain a competitive edge in an increasingly service-
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