Question

What are the different features of services?

Answer 1

Along with goods, services are produced and consumed. They are generally, possess the following:

1. Intangible:
   a. Intangible things are not physical objects but exist in connection to other things, for example, brand image, goodwill, etc.
   b. The intangible things are converted and stored into tangible items such as recording a music piece into a pen – drive.
2. Heterogeneous:
   a. Services vary across regions or cultural backgrounds.
   b. A single type of service yields multiple experiences, e.g., music, consulting physicians, etc.
3. Inseparable from their makers:
   Services are inextricably connected to their makes. For example, labour and laborers are inseparable.
4. Perishable:
   a. Services cannot be stored as inventories like assets.
   b. For example, it is useless to possess a ticket for a cricket-match once the match is over.
   c. It cannot be stored and it has no value-in-exchange.