What are services ? Explain their distinct characteristics.

Characteristics of services :

1. Intangibility : The most distinguishing feature of a service is that it is intangible. It has no shape, size or other physical dimensions. Intangible nature of services has many implication.

(i) A service cannot be routed.
(ii) Precise standardization is not possible.
(iii) A service cannot be patented.
(iv) There is no transfer of ownership.
(v) There are no inventories.

2. Irreparability : In most cases a service cannot be separated from the person who sells it. For example, an electrician has to be physically present to provide the services. Therefore, production and consumption of services are inseparable. This is in sharp contrast to products which can be produced and stored for sale in future.

3. Perishability : Services cannot be produced before sale and stored for future demand. An empty seat in an aircraft, a spare birth in a train, an unsold seat in a cinema hall represent a service capacity which is lower foreover. Thus service not fully utilised represent a total loss.

4. Heterogeneity: Since the human element is dominant in rendering services, it is almost impossible to standardize the quality of services. Two waiters in a restaurant or two clerks in a bank rarely provide the same quality of service. Even the same provider may not provide indentical service.
The doctor who gave you complete satisfaction on your first visit may behave different on you next visit. This is despite the fact that rules and procedures have been laid down to ensure maximum efficiency.

5. Ownership : When you buy a product e.g. a shirt or a book you become its owner. But when you buy a service e.g. a seat in an aircraft you do not become its owner. In case of services the payment is not for purchase but only for the use of the facility. A service is purchased for the benefit it provided.