service industries with a brief statement of the (arbitrary) list of • industries we include, and then a somewhat fuller analysis of classifications and characteristics. Services on the other hand stand to lose due to the absence of inventories. The inseparability of the production and consumption aspects of the service transaction refers to the fact that service is a performance, in real time, in which the customer cooperates with the service provider. For instance, a technician cannot offer equal quality of service when he is repairing a number of television sets. Variations in service can also be found across time too. Thus individual service seller’s services cannot be sold in many markets or multi locations. However, this kind of similarity is near impossible in services. Share Your PPT File. While selling or promoting services, we need to concentrate on benefits and satisfaction which a buyer can derive after buying. No ownership is transferred i.e., If you go for a movie by paying Rs. This makes service buying difficult for customers. 3) Time utility is critical. For availing the services, it is essential that the users are brought to the providers or the providers go to the users. Services cannot be touched, held, tasted or smelt. This makes an assault on the multi-dimensional problems likely to crop up in the process of selling services. As Zeithaml and Binter point out, “because services are heterogeneous across time, organisations, and people, ensuring consistent service quality is challenging. A sample class by a teacher, sample consultation of a doctor, sample experience of a hotel, or a sample flight is distinct from what it purports to be sample of. The intangible characteristic makes it possible for service firms to expand globally since the service has no physical form and therefore can be differentiated and used to an advantage. Variable pricing policy is also used in services Discounts are also offered in many services, e.g. Intangibility: Services cannot generally be seen, tasted, felt, heard or smelt before being bought. Characteristics of a service . The model demonstration services only intangibles exists nothing is given but everything is obtained. Contact Us | There cannot be a standard services. An expert opines, “A service is any activity or benefit that one party can offer to another that it is essentially intangible and does not result in the ownership of anything.” Here, it is clear that ownership is not affected in the process of selling the services. On the other hand, the tangibility of a television set or a mobile phone allows customers to see, touch, hear, and even smell them. The inseparability focuses on the fact that the services are not of separable nature. During night we need less telephone services. Similarly, it is not usually possible to gain significant economies of scale through centralisation. The golf courses remain unused during the winter. Intangibility: Services are intangible and do not have a physical existence. This is also a feature that complicates the task of professionals while marketing the services. A US-based study by Hartman and Lindgren (1993) found that consumers did not use the four characteristics in distinguishing between products and services. The inseparability imposes limits on the supply of service of a certain quality and image. As for example, a consumer can use personal care services or Medicare services or can use a hotel room or swimming pool, however the ownership rests with the providers. Today, we are going to examine the 5 major unique characteristics of services or classification of services in service marketing which are; Perishability, Intangibility, Variability, Inseparably and; Non-ownership; Perishability He says, “Services are those separately identifiable, essentially intangible activities which provide want satisfaction and that are not necessarily tied to use sales of a product or another services. We cannot emphasize the service itself. The quality of the food served by a restaurant often varies. The service performed by an individual provider may differ over a period of time because interaction between customer and provider may vary. For instance, it is impossible to sample surgery, travel, and theatre performance. Services are unique and four characteristics separate them from goods, namely intangibility, variability, inseparability, and perishability. 1. The degree to which the service firm designs the service delivery system to control variability will influence the quality of the service experienced by the customer.