• Home
  • Marketing
  • Outline and critically evaluate the characteristics of services and their implications for firms.

Outline and critically evaluate the characteristics of services and their implications for firms. Essay Example

  • Category:
  • Document type:
  • Level:
    High School
  • Page:
  • Words:

Outline and critically evaluate the characteristics of service and their implications for firms

Service is a performance or act one party offers to the other in exchange for payment or consideration. Technically, it consists of economic activities that offer value and benefits to the consumers at particular places and times so as to bring about a desirable change. The main characteristics of services include intangibility, heterogeneity, perishability, inseparability, Simultaneity, demand and ownership.

Intangibility: Services are intangible since they are not physical in nature. Hence, they cannot be touched or felt like the physical objects. A firm that buys a service has to concentrate on deriving the benefits and satisfaction rather than on the opportunity to touch, smell or taste it.

Perishability: Services are perishable since they have a likelihood of becoming out-of-date. For instance, if they are not used in time as required, they become economic waste. For instance, if a firm’s workforce wastes a lot of time while at work, the workforce becomes economic waste.

Inseparability: Services are inseparable from the service providers since the service provides create and supply them at the same time. Hence, a firm and its services are categorized as one thing, since service firm creates and provides its services simultaneously.

Heterogeneity: Since services are heterogenous, setting standards for a service is difficult. This means that firms cannot standardise quality of their services. Therefore, the price paid for a service may be high or low.

Ownership: Services can only be accessed but not owned. Hence, firms that buy services cannot be said to own the service, in the same way transfer of ownership happens when they buy goods. Rather, the firm accesses the service.

Simultaneity: Services tend to have limited geographical scope, as they cannot be moved through channels of distribution to make them accessible to the end-users. Hence, the firms buying the services go to the service provider, or the provider brings the service to them.

Demand: Naturally, services fluctuate in demand. During the peak seasons, there may be an abnormally high demand for services and low during the off-peak seasons.