What are the features of a service?
1. Tangibility: services are intangible, they do not have physical properties like goods.
-This makes it difficult to compare and evaluate, because the service can be different each time.
2. Lack of Inventory: services can't be inventoried/stored. They're either used or they aren't, there's no saving for later.
-If there's no demand, unused capacity is wasted.
3. No Ownership: The customer does not actually have any ownership of an item after the service.
4. Creates Value: the service creates value for the customer.
5. VARIABILITY: the service is not the same each time it's received.
e.g. different person serving you may result in
different service outcome (one person may not be as useful as another)
6. Consumers Involved in CO-PRODUCTION: different consumers will lead to different service outcomes, as the service person can cater the service for the consumer's individual needs.
7. TIME FACTOR: Time has greater importance with some services.
e.g. Food service; you expect the food to come
out quickly; delivery services; transportation etc.