Nature/Characteristics Of Services

The service marketers are required to pay special attention to analyse the existence of numerous features of services which are consistently studied in the form of its nature.

Precisely the natures of services are stated here:

1. Intangibility

• Services cannot be seen, felt, tested, touched and clearly visible and apparently tangible and material existence

• Services are to a large extent abstract and intangible by its nature

• A service is made and delivered on spot and hence it cannot be measured as early as tangible products

• They are more focused on benefits, values and customized applicability and use brand name etc.,

• It is difficult to judge and evaluate the performance quality and values in advance.

Suitable Examples

Counseling services, Accounting services, Financial services, Banking and Insurance services, Data processing, Legal services, Voice telephone, Retail banking, Advertising / PR, Health club, Hospital services, Tours and Travel services, Hotel and Restaurant services, Broadcasting / Cable, Office cleaning, Plumbing services,

2. Inseparability

• Services cannot be separated from the person or concern who provide them

• A Service provider possesses a particular knowledge, skills, efficiency, competencies, training and equipment etc.

• Services are typically produced and consumed at the same time with customers participation in the process

• Service providers may use needful equipment’s, tangible products, physical infrastructure and different materials to be required in service performance

• It is a key quality of services which renders it impossible to diverse the supply or production of the service from its consumption. Simultaneously the Production and consumption involves with each other which characterize most services

• The identification and existence of service providers are based on their service performance

• Customers must be present during the production of many services. Customers must have the intimate contact with the production process and service providers.

Suitable Examples

Singer, Teacher, Doctor, Plumber, Electrician, Beauticians, Technicians, Health cares, Driving Services, Airplane trips

3. Perishability

• Services are liable to perish and that will not long last

• Service capacity cannot be stored and carried forward for sale to a future time period

• Services are time dependent which makes them very perishable

• There is no provision of stockpiled as inventories of services

• Services have zero inventory. Once sold they stand sold and cannot be returned

• If the services are not fully utilized, that represents a loss. On the other hand most of the services may face a fluctuating demand. This issue is primarily concern of the service providers. Customers only become aware of the issue when there is insufficient supply and they have to wait for the services

• Each unique features of services leads to specific problem for service marketers and it is required to formulate specific strategies for dealing with them

• There is a need to coordinate the demand and supply of services.

 Suitable Examples

• A car mechanic who has no car to repair today, in future his services will not be stored whenever car will be available for repairs.

• There is a peak demand of certain train routes which are always more heavily booked than others. On the other hand at the time of low demand of booking, the service capacity may suffer the losses. As such services cannot be stored.

• If the hotel rooms are not occupied, airline seats are not purchased and telephone line capacity are not used, it cannot be reclaimed.

• Repairs and Maintenance, Office cleaning services, Laundry and cleaning.

4. Heterogeneity

• There are certain difficulties to make standardization and uniformity of the quality of services so that the services are non-standards and highly variable

• It describes the uniqueness of service offering. They are generated, rendered and consumed at one time

• Services have the nature of diverse character and diverse elements

• Service performance from the same service provider or individual may also differ. The services denote certain results in variation from one service to another or variation in the same service from day to day or from customer to customer. It focuses on those services which is unique and cannot be exactly repeated even by the same service provider. It is not possible to make service experience identical and uniform. Service performances is delivered by different people and their performance vary from day to day

• It can be introduced as a benefit and point of differentiation.

Suitable Examples

• A doctor who pays attention to a patient today may lose his services by next day.

• All the restaurants offer different services.

5. Ownership

• The services are treated as special kind of product

• The services are purchased by customers because they provide certain intangible bene­fits and satisfaction

• If a customer buy a product he become its owner, but in case of services, he may pay for its use but he will never own it

• In respect of the payment of services, the customers may pay in the form of charges, rent and commission etc. and get the benefits and satisfaction

• The customers do not gain the ownership or title on the services.

Suitable Examples

• Rented goods services – Customer may have the temporary right to use a physical goods that they prefer not to own. (i.e. boats and costumes etc.)

• Hired Labor to perform the work i.e. cleaning the house

• Expertise services (i.e. Car repairs and Electricians)

• Rented space and place (i.e. area of premises may be rented for social and other occasions, to reserve the table in restaurants, to book the seat in an aircraft)

• Usage of system and network (Customers may use the specified system in cyber cafe and telecommunication with different charges)