What are services? Explain their distinct characteristics.
What are services? Explain their distinct characteristics.
The services sector constitutes the basic infrastructure which is necessary for the smooth flow of business activities. In the recent past, the role of the service sector in the Indian economy is growing faster than agriculture and industries sectors.
Characteristics :
1. Intangibility: Services are intangible, i.e, they cannot be touched. They are experienced in nature. One cannot taste a doctor's treatment or touch entertainment. One can only experience it.
2. Inconsistency: The second important characteristic of services is inconsistency. Since there is a standard tangible product, services have to be performed exclusively each time. Different customers have different demands and expectations.
3. Inseparability: Another important characteristic of services of the simultaneous production and consumption. This makes the production and consumption of services seem to be inseparable.
4. Inventory: Services have little or no tangible components and therefore, cannot be stored for a future use. That is, services are perishable and providers can at best store some associated goods but not the services itself.
5. Investment: One of the most important characteristics of services is the participation of the customers in the service delivery process.
The services sector constitutes the basic infrastructure which is necessary for the smooth flow of business activities. In the recent past, the role of the service sector in the Indian economy is growing faster than agriculture and industries sectors.
Characteristics :
1. Intangibility: Services are intangible, i.e, they cannot be touched. They are experienced in nature. One cannot taste a doctor's treatment or touch entertainment. One can only experience it.
2. Inconsistency: The second important characteristic of services is inconsistency. Since there is a standard tangible product, services have to be performed exclusively each time. Different customers have different demands and expectations.
3. Inseparability: Another important characteristic of services of the simultaneous production and consumption. This makes the production and consumption of services seem to be inseparable.
4. Inventory: Services have little or no tangible components and therefore, cannot be stored for a future use. That is, services are perishable and providers can at best store some associated goods but not the services itself.
5. Investment: One of the most important characteristics of services is the participation of the customers in the service delivery process.
