Inventory Of Services Differs From That Of Products In What Way?

Features of Services: eight Major Features of Service Marketing

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Eastverything you need to know about features of services. Services are unique and four major characteristics separate them from goods, namely intangibility, variability, inseparability, and perishability.

The services literature highlights differences in the nature of services versus products which are believed to create special challenges for service marketers and for consumers buying services.

To help empathize these differences a number of characteristics that draw the unique nature of services take been proposed.

The peculiar characteristics of services create challenges and opportunities to the service marketers. Services have some important characteristics that have implications for marketing.

Learn about the features of services. They are:- 1. Intangibility two. Perishability 3. Inseparability 4. Heterogeneity 5. Ownership 6. Simultaneity seven. Quality Measurement 8. Nature of Demand.

Features of Services: viii Silent Features / Characteristics of Service Marketing

Features of Services – Top 8 Features: Intangibility, Heterogeneity, Simultaneity, Quality Measurement, Nature of Need and a Few More than

Services have some salient features which necessitate a new vision, a distinct arroyo and a globe-class professional excellence to market effectively and profitably. The professionals not well aware of the properties observe it difficult to brand creative decisions. Information technology is against this groundwork that we go through the salient features with the viewpoint of their instrumentality in making the marketing decisions.

Feature # ane. Intangibility:

Intangibility is an important consideration that complicates the functional responsibleness of a marketing manager, especially while influencing and motivating the prospects/customers. The appurtenances of tangible nature can be displayed, the prospects or buyers can have a view and they can even test and make a trial earlier making the buying decisions. The selling processes are thus establish easier. Nosotros are aware of the fact that services are of intangible nature and it is intangibility that complicates the task of conclusion-makers.

While motivating, they notice information technology difficult to perform and display and the positive or negative opinions regarding the services come up only afterwards the completion of the using process. The client can't touch the services, they albeit can't smell them. In a true sense, information technology is non a concrete object. It has mental connotations. According to Carman and Uhl, a buyer of products (goods) have an opportunity to see, touch, hear, smell or taste them earlier they buy.

Of class, we don't find the aforementioned thing with the services product. It is the professional excellence of decision-makers that counts hither, that influences the entire process and that helps them substantially. While selling or promoting services, we need to concentrate on benefits and satisfaction which a buyer can derive after buying. Nosotros tin hardly emphasise the service itself.

As for example, the banking organisations promote the sale of credit cards by visualising the conveniences and comforts the holders of the credit cards are likely to get from the same. Services carry with them a combination of intangible perceptions. As for case, an airline sells the seat from 1 destination to another.

Here, it is a matter of consumers' perception of the services and their expectations not smelling or tasting the services. They expect rubber, fast, decent services. A service by nature is an abstruse phenomenon. Thus, information technology is right to mention that due to intangibility, the selling and marketing of services get much more than complicated.

Feature # 2. Perishability:

Another point complicating the task of a professional is the nature of perishability that we find in the services. The appurtenances if not sold today can be stored, preserved for further selling. Thus, the risk element is here in a different form. Just in the context of services, if we fail to sell the services, it is lost only not for today only even for the time to come. If a labour stops to work, if a seat in the aircraft remains unsold, if a sleeping accommodation in a hotel remains unbooked, a chair in a cinema hall remains vacant; we find the business non-real and the opportunities are lost and lost forever. The services can't be stored or preserved.

Unutilised or underutilised services are found to be a waste product. A building unoccupied, a person unemployed, credit unutilised, vacant beds in a hospital are economic waste. Of form, this is due mainly to its perishability. This makes it essential that decision-makers or the executives by using their professionalism minimise the possibilities of economic waste. The opportunities come and you need to capitalise on the aforementioned past using your excellence.

Feature # 3. Inseparability:

This is too a feature that complicates the chore of professionals while marketing the services. The inseparability focuses on the fact that the services are not of separable nature. Generally, the services are created and supplied simultaneously. Similar the dancers, musicians, dentists and other professionals create and offer services at the same time. In other words, the services and their providers are the same. Donald Cowell says, "Goods are produced, sold and then consumed whereas the services are sold and then produced and consumed."

It is inseparability that makes the task of marketing services a bit difficult. The appurtenances are produced at one bespeak and then distributed by others at other points. In the services, we detect the selling processes making ways for the generation of services. The professionals while marketing the services thus behave the responsibility of removing or minimising the gap between the services-promised and services-offered.

Appurtenances are produced, sold and then consumed just the services are sold, produced and and so used. The inseparability thus makes it essential that the service-providers are acting and behaving professionally so that the marketing processes are not to pave the avenues for a degeneration in the quality.

Characteristic # 4. Heterogeneity:

Some other characteristic is heterogeneity which makes it difficult to establish standard. The quality of services can't be standardised. The prices charged may exist also high or too low. In the instance of entertainment and sports, we discover the same thing. The same type of services tin't be sold to all the customers fifty-fifty if they pay the same price.

The consumers charge per unit the services in a different way. Of class, it is due to the deviation in the perception of individuals at the levels of providers and users. The heterogeneity factor makes it difficult to market efficiently. The professionals by using their excellence bear the responsibility of minimising the problem.

Feature # five. Ownership:

Information technology is besides ownership that makes it meaning to market the services in a bit different way. The goods sold are transferred from ane place to some other, the ownership is also transferred and this provides to the buyers an opportunity to resell. In the case of services, we don't notice the same matter. The users have just an admission to the service. As for instance, a consumer can use personal intendance services or Medicare services or can use a hotel room or swimming pool, however the ownership rests with the providers.

An expert opines, "A service is any action or do good that one party can offering to another that it is substantially intangible and does not result in the ownership of anything." Here, it is clear that ownership is not afflicted in the process of selling the services. The issue of buying has also been clarified by another expert.

He says, "Services are those separately identifiable, substantially intangible activities which provide want satisfaction and that are not necessarily tied to use sales of a production or another services. To produce a service may or may non crave the use of tangible goods. However, when such employ is required, there is no transfer of permanent buying to these tangible goods."

The aforementioned theme of not transferring the ownership has also been supported by Batesan. Here, the focus is on the point that transfer of ownership simplifies the task of a marketer since he/she can utilize information technology as a motivational tool. In instance of services, the professionals experience difficulties because we don't notice whatsoever scope for the transfer of ownership. The professionals thus need to be more careful while selling or marketing the services.

Characteristic # 6. Simultaneity:

Services can't be delivered to customers or users. Services don't motility through the channel of distribution. For availing the services, it is essential that the users are brought to the providers or the providers become to the users. It is correct to say that the services take limited geographical areas.

Carman and Uhl say, "Producers of services by and large have pocket-size-sized operations than do producers of goods, largely because the producers must travel to get the services or vice versa. When the producers travel to the buyer, fourth dimension is taken away from the product of services and the cost of those services is increased. It also costs time and money from buyers to travel to producers of services and these economies of fourth dimension and travel provide incentive to locate more services centres closer to prospective customers which results in smaller service center." This can exist antiseptic by a suitable example. Hotel rooms can't be brought to the users; plane can't exist brought to the customers, etc.

Feature # 7. Quality Measurement:

The quality of service requires another tool for measurement. We tin't mensurate it in terms of service level. It is very hard to rate or quantify the total purchase. Equally for example, we tin quantify the nutrient served in a hotel just the way a waiter or a carrier serves it or overall environment or behaviour of other staff can't be ignored while rating the total process. Hence, we can determine the level of satisfaction at which the users are found satisfied. A business firm sells atmosphere, conveniences, consistent quality, status, anxiety, moral, etc.

Characteristic # 8. Nature of Demand:

While going through the features of services, we can't underestimate the factor related to the nature of need. Generally, the services are found of fluctuating nature. Particularly during the pinnacle season, we find an abnormal increase in the demand. Every bit for example, the mobility of rider is found increased, peculiarly during the marriage season or during an important festival.

The tourists adopt to get the tourist spots or resorts specially during summertime when we find the weather condition suitable. The cricket stadiums are used in winter. The golf courses remain unused during the winter. The public transport facilities are used considerably during the offset and end of function hours. There are a number of examples to show the meridian hour when we notice an abnormal increase in the demand position.

The aforesaid features of services brand information technology clear that the professionals working in the services sector need excellence to make available to the customers the promised services without a gap. If the executives working in the different service generating organisations carry the potentials to understand the specialities in the services to exist sold, they can practise the best possible to understand the expectations of customers.

This simplifies the process of satisfying the customers. It is non meant that the professionals working in the goods manufacturing organisations don't need excellence. The focus is on the indicate that since the services as a product are establish of sensitive nature and the expectations of customers are institute high, it is essential that the professionals understand the services vis-a-vis the customers. This makes an assault on the multi-dimensional problems likely to ingather upward in the process of selling services.

Features of Services – 4 Main Characteristics: Intangibility, Inseparability, Variability and Perishability

Services are unique and four characteristics separate them from goods, namely intangibility, variability, inseparability, and perishability.

1. Intangibility:

Services are intangible, that is, they cannot be seen. Services being acts, deeds, and functioning tin can exist experienced but non possessed. That is, a service dissimilar a skillful cannot be sampled, seen, touched, and felt earlier their consumption. For case, it is incommunicable to sample surgery, travel, and theatre performance.

Similarly, an insurance cover bought for life or a car or the service provided past a union counsellor or consultant cannot be seen, touched, or smelled. On the other mitt, the tangibility of a television prepare or a mobile phone allows customers to see, touch, hear, and even aroma them.

The results of a service experience are discernible to just those customers who experience it. A sample form by a teacher, sample consultation of a doctor, sample experience of a hotel, or a sample flight is distinct from what it purports to be sample of. The sampled outcome is different from the service outcome that suggests it being a sample of. Each service experience is singled-out and unique.

Service intangibility is the cardinal reason that their marketing assumes different dimensions from physical products. Bateson considers it as a very critical distinguishing characteristic. Intangibility tin can have 2 aspects—palpable intangibility that implies lack of touch ability and mental intangibility that means hard to grasp something mentally.

This makes service buying difficult for customers. Service buyers therefore bank upon cues to grade judgement virtually marketed services. The extrinsic elements that environment a service are often used by consumers as indicators of quality of service. For instance, a hotel's quality is judged by tangible elements such as building, backyard, lobby, decor, paintings, staff dress, and lighting.

two. Inseparability:

Goods being concrete entities are separable from their production systems. For instance, a mobile phone may be manufactured in China and packed, stored, and shipped to the markets where information technology is sold to finish customers. Goods are separable from their producers in terms of fourth dimension and identify.

Whereas, services exercise non allow this flexibility; they are not inseparable from their producers. For instance, a surgeon's surgery, flight of an airline, makeup of an artist, and a hotel's stay cannot be separated from their producers. This inseparability between the service production and service producer unfolds unique challenges for service marketers.

The lack of separation does non allow services to go to markets without taking service product organization along with it. This makes interaction betwixt consumer and service production system essential for its creation and marketing. For example- health services require patients to go to wellness clinics and a traveller must check in an aircraft in order to be able to use their services. On the other side, customers practice not get to Nokia's mill or Toyota'south plant to purchase their products.

The lack of inseparability in services blurs the boundaries betwixt product systems and markets. In marketing of goods, production takes place in factories and goods travel to markets for sales. However in services, this sequence is thwarted because of inseparability.

There are 2 options—either the customers move to service systems or the service system moves to customers. When patients, students, and travellers move to hospitals, schools, and aircrafts respectively, the marketplace moves to production system. On the other hand, when hotels open up branches and doctors pay visit to patient's firm, the production organization moves to markets.

Inseparability makes centralized production difficult in services. This is a radical departure from goods marketing. Appurtenances production is generally centralized at some locations in order to reap the advantage of large scale. Services are performed in real time.

Inseparability makes customer-provider interaction mandatory in case of services, which further makes operations and marketing intersect with each other. Services therefore are co-created experiences. This often breeds conflicts betwixt the 2 functions.

Absence of their disharmonize resolution ofttimes sits at the eye of poor customer satisfaction. The interactions between provider and client may differ in terms of intimacy and involvement. The interactions between doctor and patient is intimate and involving and whereas in retail it is not so.

3. Variability:

Physical goods are produced with a high degree of standardization. They are manufacturing plant produced or assembled in large numbers with enormous consistency. Information technology is rare to find two cakes of soap like Pears or ii pieces of car similar Alto different from i another. However, this kind of similarity is near impossible in services. For example, two visits to a dr. or two lectures of a professor are never exactly same. Two separate stays at a particular hotel are unlikely to be an exact replica of one some other. Variability is inherent in services considering of their peculiar characteristics including intangibility and inseparability.

In that location are several reasons that make standardization of services difficult. First, intangibility prevents setting up of precisely defined standards for service production, their conformance, and control. The advances in quality like zero defect has been possible due to their tangible graphic symbol.

Physical goods have tangible dimensions that permit setting upward of quality standards, deviations measurement, and their minimization. Second, service variability is acquired by human involvement and customer- provider interactions. Services are produced and consumed in existent fourth dimension.

Different goods, services cannot be produced so quality checked. The lack of separation between production and consumption prevents post-production quality command. 'A major deviation between production marketing and service marketing is that nosotros cannot control the quality of our products also as a P&M control engineer on a production line tin can control the quality of his production.

When you lot purchase a box of Tide, yous can be sure that information technology will work to go your clothes clean. When you buy a Holiday Inn room, you are sure to some lesser percentage that it will work to give a good dark's sleep without whatever hassle, or people banging on walls and all the bad things that can happen to you in a hotel'.

Each service episode tends to be unique in its own right. The interaction between customer and provider cannot be programmed and controlled cent per cent. In spite of a highly regimented service delivery process, each customer brings unique psycho-social aspect to a service see.

For case, service encounters are affected by moods and personality combinations between provider and customer. For example, service provider's mood and emotional land despite high training is difficult to control like a machine. Similarly, one customer is unlikely to have similar mental state in two service episodes. Service inconsistency manifests in dissimilar forms.

For example, quality variation can be experienced across different service outlets, for example two branches of Cafe Coffee Twenty-four hour period (CCD) may provide different service experience. Variations in service can likewise be found across fourth dimension too. For instance, the service quality between lunch and dinner services of a restaurant may differ.

four. Perishability:

Services cannot exist stored similar appurtenances because of simultaneity of product and consumption. Dissimilar goods, which savour separation between production and consumption, services are produced and consumed at the same time. For instance, most of the consumer durable companies accrue inventories prior to the arrival of festive seasons.

These inventories let them to encounter overfull need later on when festivals get in. Even so, this luxury is non possible for a service marketer. For case, hotels and airlines cannot create stocks of their rooms or seats to supply them during the time of backlog demand. Inventory is not possible in services.

The lack of inventories greatly reduces flexibility of service firms in coping with fluctuating demand conditions. The inability to marshal service supply as per demand situations causes service to suffer from revenue loss when demand exceeds chapters and incur excess cost when need is less than available capacity.

Consider the case of a typical airline company. During the prime travel fourth dimension during morning time and evening between cities such equally Mumbai and New Delhi, the demand for travel generally exceeds chapters. Similarly, restaurants have to turn away their customers during tiffin and dinner time and cinema theatres fail to accommodate demand during prime shows.

The unaccommodated customers are lost revenue opportunities. On the hand, during the not-top fourth dimension aircrafts, restaurants, and movie theatre theatres face demand conditions far lower than bachelor capacity. Unused chapters is undesirable because assets remain idle.

Unoccupied theatre, airline, and eating house seats cannot be stored and carried over to cater supply during the time of backlog need. In service industries, output is wasted if it is not consumed simultaneously. The 'unused chapters in a service business is rather like having as running tap in a sink with no plug, the flow is wasted unless customers, or their possessions that require servicing, are present to receive it'.

Goods marketers are better equipped to marshal their supply according to demand atmospheric condition due to their ability to maintain inventories every bit a buffer. Services on the other hand stand to lose due to the absence of inventories.

Features of Services – 4 Important Features (With Problems and Marketing Strategy)

The services literature highlights differences in the nature of services versus products which are believed to create special challenges for services marketers and for consumers ownership services. To help sympathize these differences a number of characteristics that describe the unique nature of services have been proposed.

These characteristics were get-go discussed in the early services marketing literature and are generally summarised as intangibility, inseparability, heterogeneity and perishability.

Although, there has been a contend on the effectiveness of the four characteristics in distinguishing betwixt products and services and used both as the basis for examining services buyer behaviour and developing services marketing strategies.

It is, therefore, important to establish the extent to which these characteristics reverberate the perspective of the consumer. A The states-based written report by Hartman and Lindgren (1993) found that consumers did not utilise the four characteristics in distinguishing betwixt products and services.

Bitner, Fisk and Brown (1993) suggest that the major output from the services marketing literature up to 1980 was the delineation of four services characteristics- intangibility, inseparability, heterogeneity and perishability. These characteristics underpinned the case for services marketing and fabricated services a field of marketing that was singled-out from the marketing of products.

4 I's of Services Backed by an O:

Services have 4 distinct characteristics that need to be internalised by service professionals to create opportunities in the market place, to enhance both elevation and bottom line growth for the firm. Leading researchers have zeroed on Intangibility, Inseparability, Inconsistency, and Inventory while others mention Ownership as well. All these characteristics are providing opportunity besides as challenges to the service marketer.

The distinct characteristics of services need individual focus while taking decisions regarding their organisational set-up.

They are mentioned below:

Feature # 1. Intangibility:

It is ane of the most important characteristics of service products. It has no physical dimension and attributes. Service is a deed, a functioning, and an endeavour. The customers purchase performance equally they cannot encounter, touch, hear, gustatory modality or odour a service earlier they decide to buy the product.

This makes the perception of service quite subjective. For e.g. a buyer of wellness gild package, for weight loss cannot encounter what the outcome volition be till the plan is over. Therefore, the customers for many services have to buy them on trust as they cannot exist inspected earlier employ. In case of goods, a consumer can bear on, sense of taste and sample the production. The intangible nature of services makes consumers concerned most their providers.

For eastward.yard. in instance of Global Trust Bank, a few years dorsum, the investments fabricated were not as per Regulatory norms, and when it was released in the printing, it left many customers uneasy about the fiscal instability of GTB and at that place was a withdrawal of deposits as investors' trust were shaken. Some customers lost full organized religion and stopped cyberbanking.

In fact some service providers similar life insurance agents equally per IRDA accept to undergo 100 hours training to get a license to practice so that they are trained in their profession.

Service products are mostly intangible only are marketed with tangible evidence. This is referred to as tangibilising the intangibles. While services frequently are accompanied with physical evidence that enables the consumer to make the product less abstract and more than tangible, there volition always be an intangible element to the service product.

The level of tangibility in the service offering is based on three criteria:

i. Tangible appurtenances which are included in the service offer and consumed by the user.

two. The concrete environment in which the service product/consumption procedure takes place, and

iii. Tangible evidence of service performance.

Where appurtenances form an important component of a service offer, many of the practices in goods marketing can exist applied to this function of the service offering. A firm's promotional efforts must state the benefits to be derived from a service rather than stressing on the service itself. It is used to communicate the nature and quality of service.

Take for instance an feel on a flight, the total service experience is an aggregate of many components such every bit feel at the airport, the nature of services on board, the inflying entertainment. Here, there are some tangible elements but most are intangible elements.

Intangibility of services leads customers to have difficulty in evaluating competing services, perceiving and assessing high levels of risk placing more than emphasis on personal information sources and often using price as the basis for assessing quality. Hence direction responds by reducing service complexity, stressing more on tangible clues, focusing on service quality and facilitating give-and-take of oral fissure recommendation.

While some services are rich in such tangible cues like retail outlets, restaurants, other services provide relatively petty tangible evidence like life insurance.

In example of restaurants, information technology represents a mix of tangibles and intangibles and in respect of the nutrient element, few of the particular characteristics of services marketing are encountered. Therefore, product of the nutrient can be separated from its consumption and the perishability of food is less pregnant than the perishability of an empty table which results in loss of business. The presence of a tangible component gives customers a visible basis to judge quality.

The tangible elements of the service offered comprise non simply those appurtenances which are exchanged but also the concrete environment in which a service meet takes identify. Within this environment, the pattern of buildings, their cleanliness and the appearance of staff present important tangible show which may be the but basis on which a buyer is able to differentiate one service provider from another.

Tangibility is further provided by testify of service production methods. Some services provide many opportunities for customers to see the process of product, indeed the whole purpose of the service may be to meet the production process like dramas or skits.

Often this tangible evidence tin can be envisioned before a decision to purchase a service is made, either past direct observation of a service being performed on somebody else like watching the sculptor work on a statue or indirectly, through a clarification of the service production process by brochures which illustrate and particular the service process like education. On the other paw, some services provide very few tangible clues most the nature of the service production process.

The lack of physical evidence, which intangibility implies, increases the level of uncertainty which a consumer faces when choosing between competing services. The service marketer's plan consists of reducing consumer uncertainty by adding physical evidence and the evolution of strong service brands; in contrast goods marketers broaden their products by adding intangible elements such as later on sales service and improved distribution.

Feature # 2. Inconsistency (Heterogeneity or Variability):

This feature of service as well referred to every bit heterogeneity, is a function of man involvement in the delivery and consumption process. The inseparability of the product and consumption aspects of the service transaction refers to the fact that service is a functioning, in existent time, in which the customer cooperates with the service provider.

Inseparability is a characteristic of a service indicating that it cannot exist separated from the service provider of the production. Therefore a great deal of effort has to go into standardisation of delivery. Since buyers' and service providers' interpersonal commutation is involved, in that location is opportunity for customisation, which can be the Unique Selling Proposition.

Inconsistency occurs largely because unlike service providers perform a given service on different occasions. The service performed by an private provider may differ over a period of time because interaction between client and provider may vary. Every time a service is performed, the procedure and the customer feel are unlike.

Services that are provided by individuals rather than equipment will vary, depending upon which private performs the service, and these volition fifty-fifty vary with the same service provider from one job to the next. The service will also vary according to the degree to which clients involved in the production of the service agree.

The caste to which the service firm designs the service delivery system to control variability will influence the quality of the service experienced past the customer.

Customer uncertainty can exist reduced by a combination of automation, standardisation and rationalisation. Even so, inseparability may be desired by those customers who want customised service, rather than standard approaches that are non appropriate for individual state of affairs as in case of interiors for bungalows in sectional schemes for high net worth individuals.

Just it is not possible to standardise service industry output. In case of trips by the Shatabdi Express between Delhi and Agra, the consumer does not become the aforementioned quality of service solar day after day due to different service personnel, snacks, music etc.

The performance of a kinesthesia in a lecture, is non of same standard in each performance, as information technology will depend on a host of factors similar grooming, mood, participation of the students, ambient etc. In instance of an income tax consultant, he may provide a different service experience to a loftier net worth individual and a salaried class clerk considering of varying needs and depends on his moods and pressures at the time of the day when the interaction is taking identify.

In order to provide consistent services, the firms should standardise staff functioning through conscientious' planning, control and automation. Firms which are automated accept less people and hence they take lower inconsistency in services. A garage which has installed auto car wash facilities with mounting of the vehicle on the ramp can provide consistent services. Banks have installed Automated Teller Machines to provide consistent services due to automation. Fountain, Cola and Pepsi vending machines are some other examples.

While these firms achieve high homogeneity in service delivery, they increase the risk of being inflexible and the staff reacts poorly to the unforeseen problem. Inconsistency is an opportunity and firms can strengthen their brands past customisation with greater empowerment to the staff.

For services, variability impacts upon customers not but in terms of outcomes but besides in terms of processes of product. It is the latter point that causes variability to pose a much greater trouble for services, compared to goods. Because the customer is ordinarily involved in the production process for a service at the same time as they swallow it, it can be difficult to deport out monitoring and control to ensure consequent standards.

The opportunity for pre-commitment inspection and rejection which is open to the appurtenances manufacturer is not normally possible with services. The service must normally be produced in the presence of the customer without the possibility of intervening quality command.

Particular issues can occur where personnel are involved in providing services on a one-to-one basis, such as hairdressing, where no easy method of monitoring and control is possible.

Feature # 3. Inseparability:

Many services are created, delivered and consumed simultaneously through interaction between customers and service producers, whereas appurtenances more often than not, are produced starting time and consumed subsequently. Equally the customers are involved in the production process, the service quality becomes difficult to measure and control.

For eastward.thousand. a dr. creates, delivers all his services simultaneously but the consumer presence is required during the performance of the service. This means that in many cases, people are involved meantime in the production and marketing efforts of the service organisations.

In most of the cases, the customer receives and consumes the services at the service provider's premises. Since inseparability characteristic generally means the direct interaction between the service provider and client, it is direct selling.

Inseparability leads customers to being co-producers of the service either lone or with other co-consumers and frequently they have to travel to the point of production service. The direction has to respond to this by separating production and consumption. Information technology has to monitor consumer producer interaction and focus on continuous improvement in the service delivery arrangement.

Product and consumption are separable for goods. On the other hand, the consumption of a service is said to be inseparable from its means of product. Producer and consumer must interact with each other in order to realise the benefits of the service; both must normally meet at a time and a identify which is mutually convenient in such a way that the producer can direct laissez passer on service benefits.

For services, marketing becomes a means of facilitating complex producer-consumer interaction, rather than being just an exchange medium.

Moreover, the service cannot be stocked by the distribution partners, as in case of goods. This poses a major limitation for the service provider. For e.g. a car mechanic can simply repair, say, four vehicles per 24-hour interval. Thus individual service seller'due south services cannot be sold in many markets or multi locations. This characteristic limits the scale and reach of functioning of a service house.

There are other services which tin can be sold past a representative of the chief service provider east.g. insurance agent, travel amanuensis, merely at the final point of service delivery the service provider's presence is a must. Such services are generally sold by the institutions producing them.

The caste of involvement between transacting parties is dependent upon the extent to which the service is 'equipment based' or 'people based'.

Characteristic # 4. Inventory (Perishability):

The perishability of services describes the existent fourth dimension nature of the product. Unlike goods, the consumer cannot shop the service and the absence of the ability to build and maintain stocks of the product means that sudden demands cannot exist accommodated as it tin be washed in case of goods.

The buyer may decide to delay the consumption but may non eat more in advance than the requirements. For the buyer of services, the time at which they cull to use the service may be critical to its performance and therefore to the consumer's experience, for e.yard., in a Pune Municipal Transport bus the feel in the rush hr is very different than in lean hours.

Consumption of services is directly linked to the experience. In example of services, inventory costs are related to chapters utilisation. In idle service production surround, the inventory cost relates to reimbursing staff along with whatsoever needed equipment. Due east.g. If a lawyer is available but there is no customer during that period, the fixed price of the idle lawyer's opportunity is the inventory carrying cost.

Some services have characteristics, where demand for them fluctuates, considerably by season and by day of the week and even hour of the day. An airline which offers seats on a 6.00 am flight from Mumbai to Delhi cannot sell whatsoever empty seats once the aircraft has left at 6.00 am. The service offer disappears and spare seats cannot be stored to come across a surge in need which may occur at eight.00 am.

Few services accept a constant pattern of demand over a period of fourth dimension. Many testify considerable variation like daily variation in cyber cafes towards the evening/nighttime , weekends for travel by railways betwixt Pune-Mumbai, seasonal for hotels, cyclical for mortgages or an unpredictable pattern of need like emergency repair services like electricity later on trees falling on electricity lines.

For a travel agent, the demand fluctuates co-ordinate to fourth dimension and flow and is linked to holidays in school and colleges, in summer and winter coupled to festivals like Diwali, Durga Puja, and Christmas etc., wherein the demand peaks.

The combination of perishability and fluctuating need nowadays challenges for marketers engaged in planning, pricing, promotion and distribution of services. The cellular companies try to spread out demand for their services by pricing off peak hours to make them more attractive to callers.

They offer "happy hour" rates to increase traffic in lean periods of the twenty-four hour period. The services providers focus on strategies for effective capacity management to reduce the inventory costs. Hence, even if volumes can be enhanced with a lilliputian margin over variable cost, the firm should push for it.

An date with a dentist at a given time, on a given 24-hour interval, cannot be stored and if patient cancels the appointment last minute, the acquirement is lost. The firms must monitor their capacity and review information technology periodically to ensure customers go meliorate service equally well equally resource of the firm are optimally utilised.

Many services are bought even before they are experienced as in instance of alimony. Here the service firms take to tackle two issues- first, they have to develop prototype and reputation to attract customers; secondly, they must retain customers, every bit competitors try to attract them away, fifty-fifty though they accept yet to experience the service.

Perishability occurs considering of the inability to store services, inelasticity of short-term supply. This results in demand patterns being irregular with just in time production of services and if managed effectively congestion occurs at peak periods and loss of capacity at off-peak periods. Pricing and promotion are used extensively to encourage customers to employ services at a time when it is convenient to the service operator in order to have better chapters utilisation.

To manage these characteristics efficiently the service provider has to use the optimum strategies. "The Problems and Strategies in Services Marketing" adapted from Parasuraman, Berry and Zeithmal, "Problems and Strategies in Services Marketing", and "Journal of Marketing" are described for fix reference.

Problem:

i. Intangibility:

i. Cannot be easily displayed

ii. Cannot be patented

2. Inconsistency:

i. Standardisation difficult to achieve

ii. Hard to ready up quality command

iii. Tin can but predict quality or decide it afterward the service is performed

3. Inseparability:

i. Harder to mass produce

ii. Less efficient than production appurtenances

iv. Inventory:

Customers must exist present

Marketing Strategy:

i. Intangibility:

i. Provide tangible clues

ii. Stimulate discussion of mouth

iii. Use personnel sources

iv. Use post purchase advice

2. Inconsistency:

i. Stress on standardisation and operation

two. Focus on employee training

three. Programs, performance evaluation

iv. Licensing and other forms of credential requirement

3. Inseparability:

i. Demand strong training programmes, incentives

ii. Focus on personal attention

4. Inventory:

i. Focus on convenience, saving time, faster service

ii. Extended hours

iii. Focus on competence and expertise

iv. Predict fluctuating demand

v. Manage chapters to balance supply and demand

In addition to the 4 I's of services, buying has been identified as a distinguishing feature of services by some researchers including Kotler.

Ownership is some other distinguishing feature of service. The inability to own a service is related to the characteristics of intangibility and perishability. In instance of service, when it is performed, no ownership is transferred from buyer to seller. The heir-apparent is only buying the right to a service process such as the use of a machine park or a solicitor'due south time.

A distinction should be drawn between the inability to own the service act, and the rights which a buyer may acquire to have a service carried out at some time in the future. In case of service, the buyer has temporary access to or employ of it.

What is owned is the benefit of service, not the service itself, e.g. for a holiday tour packet to picturesque Manali in Himachal, the buyer has admission to hotel, mountains, snow, waterfalls, rivers etc. just doesn't own any of them.

The inability to ain a service has implications for the design of distribution channels, so a wholesaler or retailer cannot take title, every bit is the example with goods. Instead, directly distribution methods are more common and where intermediaries are used, who generally human activity as a co- producer with the service provider.

Features of Services: Pinnacle 6 Features: Perishability, Irresolute Demand, Intangibility, Inseparability, Heterogeneity and Pricing of Services

The peculiar characteristics of services create challenges and opportunities to the service marketers.

These are given below:

1. Perishability:

Every bit a marketable commodity, a service has a high degree of perishability. Time element assumes unique importance. If a service is non used today, it is lost forever. It cannot be Stored. It cann6t exist carried forward. Unutilised services are economic losses. A building unoccupied, a person unemployed, credit not utilised, a ship, a wagon or a warehouse loaded to only half its capacity, empty rooms in a five star hotel are illustrations representing perishable nature of services and business which is lost forever.

two. Changing Need:

The marketplace for services has broad fluctuations. These fluctuations in demand may be seasonal or even by weeks, days or hours. During not-peak hours we need less transport. The use of public transport fluctuates greatly during the day. During night we need less telephone services. Tourism also has seasonal demand. Cricket fields are unused in the rainy season. Golf game courses are not used in the wintertime.

iii. Intangibility:

A physical product, e thou., a television fix, a refrigerator, terelene saree, idli-dossa, face cream, are visible and concrete products. You can see them, feel them, taste them, smell them and even eat or enjoy their possession. It is not possible to see, feel, taste, and olfactory property services before they are bought. A service by nature is an abstract phenomenon. It is not a physical object.

It has mental connotations. While selling or promoting the auction of a service we accept to concentrate entirely on the benefits and satisfaction a heir-apparent tin derive subsequently buying that service. Nosotros cannot emphasize the service itself.

Banks promote the auction of credit cards by emphasizing the conveniences and advantages derived from possessing a credit card. Fundamental menu of the Primal Bank of India is a new convenience card—Convenience taking on a new name. It is the starting time of its kind to be launched by a nationalised bank in India. Whether you are out on business, shopping or just dining out, y'all don't have to pay cash or requite a bank check. Past holding a central card yous tin can discover a new way of life.

In this way a banking company marketer can promote the sale of any bank service by stressing the benefits, conveniences and other advantages derived from that particular service. The telephone company stresses how the use of telephone can reduce costs of selling and storage by using long-distance calls. Of form, auction of a service, e.1000., insurance, involves a real challenge. The burden of selling an intangible product like service falls mainly on the promotion mix.

4. Inseparability:

Personal service cannot be separated from the individual. Some services are created and supplied simultaneously. Dentist, musician, dancer, and such other professionals create and offer service at the same time. Hence, due to inseparability, direct sale of many services is the only aqueduct of distribution. The market for offer personal services is spring to exist express.

A person tin sell his service simply to a limited number of customers in a day. Even so, when an institution is acting as a creator of a service, we may have its representatives or agents to sell that service. For example, a travel agent, an insurance broker, a finance broker, may represent and sell the services supplied by a tourist organisation, insurance company and financial institutions.

v. Heterogeneity:

The quality of services offered by the competing firms cannot be standardised. Even the quality of the output of services sold by i seller cannot be uniform or standardised. For instance, a technician cannot offer equal quality of service when he is repairing a number of television sets.

Similarly, it is difficult to judge accurately the quality of services. Payment of price and the quality of actual performance may not have perfect correlation Cost paid for a service may be too high or likewise low in relation to actual performance. This is peculiarly significant in the case of sports and amusement services.

vi. Pricing of Services:

Perishability, fluctuations in demand and inseparability in services involve significant implications in pricing. Consumers may postpone purchases or perform some services themselves. Competition plays a secondary role in many services. Quality of services cannot be fully standardised.

There are many difficulties in pricing of services. In regulated services we accept price plus pricing. Commonly prices of other services are adamant on the basis of demand and competition. Variable pricing policy is as well used in services Discounts are also offered in many services, e.g. insurance, hotel, etc.

Features of Services

Services have some important characteristics that have implications for marketing.

Feature # one. Intangibility :

Services are intangible. "They cannot be tasted, felt, heard, or smelled before they are bought". Intangibility created problems for marketing as it makes very difficult to make consumers convinced about the qualities of a product to encourage its buy. Therefore, a lot depends on the reputation of the service provider.

Every bit services are intangible, they cannot be patented, legally, and new service concepts tin can therefore easily be copied by competitors. … Decisions almost what to include in ad and other promotional materials are challenging, as is pricing. The actual costs of a 'unit of measurement of service' are hard to determine and the price quality human relationship is complex.

Feature # 2. Inseparability :

Services are inseparable from the providers, whether persons or machines. For instance, a musician's functioning or a lawyer's counsel cannot be separated from them. As the quality of the services is highly personal or inherent, another person may not exist able to render exactly the same quality. For case, one musician cannot be a substitute for another.

The inseparability imposes limits on the supply of service of a sure quality and image. Several strategies are in use for getting around this limitation. For example, the number of patients attended to by an eye specialist tin be increased by having assistants to do the standard routine examinations and the specialist doing only the vital, critical, role of it. Recorded cassettes (i.eastward., making the service in the product form) can increase the reach of the performance of a musician, although for many it may non exist as highly-seasoned as enjoying information technology live.

Feature # three. Variability :

The quality of service is highly variable. Dissimilar people or organisations may not be able to make the quality of their service exactly the aforementioned always. Even when the same person provides a service, the quality may vary at unlike times. The quality of the food served past a eating place often varies. Consistency in quality is very important. Quality of the people providing the service, standardising service performance process and monitoring customer satisfaction can help improve service quality.

As Zeithaml and Binter point out, "because services are heterogeneous across fourth dimension, organisations, and people, ensuring consistent service quality is challenging. Quality actually depends on many factors that cannot be fully controlled by service providers, such equally the ability of the consumer to articulate his/her needs, the ability and willingness of personnel to satisfy those needs, the presence (or absence) of other customers, and the level of demand, for the service."

Feature # 4. Perishability :

Services are perishable in the sense they cannot be stored, resold, or returned. This creates problem to adjust supply with demand. This is sought to be adjusted to by methods such as – differential pricing like off season discounts by airlines, hotels, lower telephone charges during lean hours, advance reservation system etc.

Simultaneous Production and Consumption :

A corollary of the perishability characteristic of service is simultaneous production and consumption. Unlike goods, which are frequently produced first, and then sold and consumed, most services are sold first and so produced and consumed simultaneously.

Equally a event, service providers play "a role as part of the production itself and every bit an essential ingredient in the service feel for the consumer". The simultaneous product and consumption brand demand supply management very challenging.

"The quality of service and customer satisfaction will be highly dependent on what happens in 'real fourth dimension', including actions of employees and the interaction between employees and customers. Similarly, information technology is not usually possible to proceeds significant economies of calibration through centralisation. Commonly operations need to be relatively decentralised and then that services can exist delivered directly to the consumer in convenient locations."

Features of Services – Top vi Features: Intangible, Inseparability, Perishable, Heterogeneous, Client's Participation and Ownership

1. Intangible:

'You cannot bear upon; yous just can feel information technology'. Ex – In instance of child care heart, a women takes care of children from morn to evening, what is seen their? nothing. But everything is performed, done, felt. No physical, material exists but an intangible character is merely provided. The kids are maintained from still evening. A pure service has no tangibility. In way designing, the designer designs some design and transfer them to model. The model demonstration services only intangibles exists goose egg is given but everything is obtained.

There may exist partial tangibility in services. Ex Railways the Jana-shatabdi railroad train (Transportation) the main service is intangible merely the dinner, tiffin provided would be tangible. The very nature of intangibility is that, their production and consumption instantly takes-place. No buying is transferred i.eastward., If you go for a movie by paying Rs. 100/- it does not mean that you became owner of the theatre.

ii. Inseparability:

Both the production and consumption should go hand in paw. They cannot exist separated. In case of Beauty Parlour, the services provided forth with the hair- dressing should be enjoyed simultaneously. You cannot post-pone it. The sale production consumption is the routine activities of services. You lot buy a ticket for movie, and and then enter theatre, movie starts, and then consumptions take identify. As and when picture show moves you have to consume it, considering, both are inseparable.

three. Perishable:

The bones characteristic of the services is that, if y'all do not apply, they will perish or dice themselves When picture is going on, in a particular seen, if you close the eyes, then it is missed forever considering, in the same time you do non got it 2nd time. No store value. At the superlative period the services not used will not be obtained in the lean-period.

four. Heterogeneous:

There cannot be a standard services. Ex – Whenever you lot go for Beauty Parlour, yous won't get the same service as previously experienced. Homogeneity cannot be incorporated. Because, rendering service involves human being chemical element and homo element cannot be standardised. He is affected by psychology, behaviour, instincts, etc. Hence, marketing of services is difficult, still customer are habituated to accepts its heterogeneity.

5. Customer's Participation:

The unique nature of services is that, customer should participate at 100%, otherwise services cannot exist given. Ex – If movie is moving, customers should open the optics. If he fails to participate in the deed of picture show moments, information technology cannot be enjoyed. Facial cannot exist performed unless face is shown to beautician.

six. Ownership:

The buying to services does not exist. A person who goes to theatre cannot with the chair, as he has non paid for it.

The amount paid by the customer is for the observing the running film but not for anything else. Hence, neither the service ownership is transferred nor obtained both by the seller and buyer.