CHARACTERISTICS OF SERVICES

The services have unique characteristics which make them different from that of goods. The
most common characteristics of services are:
Intangibility.
Inseparability.
Perish ability.
Variability
Intangibility
Services are activities performed by the provider, unlike physical products they cannot be seen,
tasted, felt, heard or smelt before they are consumed. Since, services are not tangibles, they do
not have features that appeal to the customers senses, their evaluation, unlike goods, is not
possible before actual purchase and consumption. The marketer of service cannot rely on
product-based clues that the buyer generally employs in alternative evaluation prior to purchase.
So, as a result of this, the services are not known to the customer before they take them. The
service provider has to follow certain things to improve the confidence of the client:
The provider can try to increase the tangibility of services. For example, by displaying a plastic
or a clay model showing patients an expected state after a plastic surgery.
The provider can emphasize on the benefits of the service rather than just describing the features.
Not all the service product has similar intangibility. Some services are highly intangible, while
the others are low i.e. the goods (or the tangible component) in the service product may vary
from low to high.
For example: Teaching, Consulting, Legal advices are services which have almost nil tangible
components; While restaurants, fast food centers, hotels and hospitals offer services in which
their services are combined with product (tangible objective) , such as food in restaurants, or
medicines in hospitals etc.
Inseparability
Services are typically produced and consumed simultaneously. Incase of physical goods, they are
manufactured into products, distributed through multiple resellers, and consumed later. But,
incase of services, it cannot be separated from the service provider. Thus, the service provider
would become a part of a service.
For example: Taxi operator drives taxi, and the passenger uses it. The presence of taxi driver is
essential to provide the service. The services cannot be produced now for consumption at a later
stage / time. This produces a new dimension to service marketing. The physical presence of

customer is essential in services. For example: to use the services of an airline, hotel, doctor, etc
a customer must be physically present.
Inseparability of production and consumption increases the importance of the quality in services.
Therefore, service marketers not only need to develop task-related, technical competence of
service personnel , but also , require a great input of skilled personnel to improve their marketing
and inter personal skills.
Perish ability
Services are deeds, performance or act whose consumption take place simultaneously; they tend
to perish me the absence of consumption. Hence, services cannot be stored. The services go
waste if they are not consumed simultaneously i.e. value of service exists at the point when it is
required.
The perishable character of services adds to the service marketers problems. The inability of
service sector to regulate supply with the changes in demand; poses many quality management
problems. Hence, service quality level deteriorates during peak hours in restaurants, banks,
transportation etc. This is a challenge for a service marketer. Therefore, a marketer should
effectively utilize the capacity without deteriorating the quality to meet the demand.
Variability
Services are highly variable, as they depend on the service provider, and where and when they
are provided. Service marketers face a problem in standardizing their service, as it varies with
experienced hand, customer, time and firm. Service buyers are aware of this variability. So, the
service firms should make an effort to deliver high and consistent quality in their service; and
this is attained by selecting good and qualified personnel for rendering the service.

Why is time so important in services?

TIME FLIES WHEN PEOPLE ARE THOUGHTFULLY ENGAGED AND HAVING FUN,BUT
WHEN PEOPLE ARE IDLE AND BORED, THEY TEND TO NOTICE TIME PASSING MORE
Waiting time is an important issue in service operations management.

Because of its impact on customer satisfaction and operations capabilities.

Rethink operational issues, such as layout design, process choice, and service
delivery from customers of waiting.
1

Introduction.
In todays competitive business environment, service quality and customer
satisfaction are becoming increasingly important.
also found that waiting affects the mood of customers and their
propensity(kecendurangan) to spend on repurchase in future.
only very satisfied customers are likely to become loyal customers.

Waiting and services delays are more common in service industries for the
following reasons;
I
Services are often produced, delivered, and consumed during an

encounter between the customer and the service provider.

II

III

IV

Example
1: doctor/lawyer ready to serve the client.
2: u fever an u will be provided by paracetamol medicine,
but if u scratch the doctor will give you different type of
consultation and medicine.
Customer interaction with service provider involves great uncertainty
which leads to service time that highly variable.
3: number of traveler combine their vacation with health
treatment.
Services are intangible and cannot be inventoried.
4: There is no services will be arrange in racks, room or
warehouse.
Customer demand for services is highly variable and unknown.
5: to build the house there is changes in the layout
design.
Other perception/causes : intrusion occurring during waiting, customer
interpretations of why they wait so long, and waiting environment that are
not easily incorporated into modeling.
6: the time spent in the queue has a stronger impact on
customer satisfaction than the actual service time.

2 ways of reducing waiting time.

I
Is to add more facilities and more employees
- This approach is usually costly and involves significant capital
investment.
- The demand pattern in most service industries is uncertain and has a
peak/off-peak pattern, adding service capacity based on the peak
times.
II
Manage customer perception of waiting.

III

The customer are distracted willingly or unwillingly from the BURDEN

of waiting and end up treating the spent in the line studying the map
as part of the entertainment.
EXAMPLE;
- 90 minutes of waiting for a 3 min service probably sounds outrageous
to most people.
- Yet at Disney World, customers often have to wait 90 minutes for a 3
minutes Indiana Jones ride, customer a given a map to Treasure land
ana to figure out the map before they go into the ride.
There are numerous examples of reducing perceptions of waiting time by
filling in the waiting time with the activities.
- While waiting to be seated in restaurant, customer could be asked
whether they would like to take a look at the menu.
- In the dentist office, copies of magazines are provided to fill patient
waiting time.
- In General Hospital they will fix the sign board; After 45 minutes

waiting if u are not be serve please let the Registration/Doctor

know.
4

Conclusion
Always remember that for the service provider, customer always no. 1.
Waiting process it will bring the attention of service provider to the fact that
consideration of experience of waiting and has significant implications for design
of service production delivery system.
Design of service operation system (layout, service delivery) can affect customer
perception of waiting time and turn, effectively manipulating customer
perception of operation capability of the firm.

Thank you to all my friend, by spending your time for

my presentation.

Is the risk of unethical business practices greater or lesser in services business

than in manufacturing firms? Explain your answer.

YES, there is GREATER risk of UNETHICAL business practices in SERVICES businesses

than in MANUFACTURING firm.
TEXT CAPTURE DICTIONARY
-Unethical = not morally correct
Cause, lack of code ethic.
Example =youre have a choose one hotel chain which is satisfies all the
requirement. while checking-in, the reservation clerk cannot find your reservation
and suggest you their sister hotel next door and sets everything up to you at the
same type of room and the same rate.
Reason for unethical business practices is greater done in service
businesses
1

Most service products cannot be inventoried.

Example : As a patient you have been appointed today by 2 pm, but the
physician still not turn on even though the watch is shown 4 oclock.

Intangible element usually dominate value creation.

Services are often difficult to visualize and understand

Customer may be involved in co-production