Services have four unique characteristics that distinguish them from goods. Name and briefly define each of these four characteristics. Use the example of an airline to help describe each of the four characteristics.

Question

What will be an ideal response?

Answer 1

INTANGIBILITY. Services are intangible; that is, they cannot be touched, seen, tasted, heard, or felt in the same manner in which goods can be sensed. An airline provides travel services. Although there are some aspects that are tangible (such as the plane, the staff, and the food), the service benefit of fast travel is intangible.

INSEPARABILITY. Services are often sold and then produced and consumed at about the same time. For airline service, first the ticket is sold. At some later time, the service is produced and consumed simultaneously as the airplane flies to the destination point.

HETEROGENEITY. Consistency and quality control are often difficult to achieve in a service because services are dependent on their labor force, and services are produced and consumed at the same time. In airline travel, a passenger cannot get exactly the same service experience from flight to flight. The length of the flight, flight comfort, flight attendants' service, food, neighboring passengers, and many other factors will vary.

PERISHABILITY. Services cannot be stored, warehoused, or inventoried. An empty airline seat produces no revenue and cannot be saved for the next flight. However, by overbooking flights, passengers can be saved up and used to fill later flights.