Characteristics of services

Kotler and Bloom define services as any activity or benefit that one party can offer to
another, which is basically intangible and does not result in the ownership of
anything. They added that its production may or may not be tied to a tangible product.

Distinctive characteristics of Services

Marketing:
Services have four characteristics that greatly affect the design of marketing programs:
Intangibility
Perishability
Variability
Inseparability

Intangibility

One of the fundamental differences between product and service cited by authors
(e.g.Srinivasan, 2007; Kotler & Keller, 2008; Lovelock, Wirtz & Chatterjee, 2006 and many
others) is Intangibility. Services are intangible. They do not have physical appearance like
products. They cannot be felt; touched until they are bought for example a person getting
cosmetic surgery cannot be seen until he or she purchase or use the service.

Strategies
Place:
If we take retail sector as an example the interiors and exteriors of store should have clean
line. The layout of chairs, and desks, visual merchandising of the store and the traffic flow
should be planned carefully. The billing line should not get overly long.
People:
There should be sufficient numbers of billing counters and employees in retail store to
manage the crowed. They should always be ready to help customers.
Equipments:
Computers, chairs, desks, background music, paintings, trolleys and other important
products should be and look like µState of the Art¶.

Symbols and communication materials:

Printed materials and symbols such as text, photos and name should suggest fast services.
(Bruhn & Georgi, 2006)

A company should demonstrate their service quality through physical evidence. (Srinivasan,
2007)So, it is very important for any company to show physical evidence of their service to
customers for example FedEx. It is one of the largest logistic and courier services provide
company. It is in both businesses ³Business to Business where it helps companies in import-
export of raw material and Business to Customers.´ It has many evidence of service quality
or physical evidence for example FedEx puts every courier in wood box for protection, they
package it in proper manner, it has scheme like if a courier will not reach at a time then it
will pay back all money to its consumers. In the same way FedEx has their huge transport
services such as Cargo planes, Trucks, Van. FedEx have good technologies such as internet
service, ERP, GPS software which help them to find out the position of courier. It provides
free insurance of the courier to their customers so if the courier lost then they will pay
compensation. They have their huge logo, dress, branch in all cities whether it is
metropolitan or tire one or two cities which is totally vice-versa to Indian. Department of
Post where they do not have good infrastructure, technology and trained workforce. If there
is good physical evidence then it will make great impact on customers

Perishability

Service cannot be inventoried therefore Perishability can be a problem when demand

fluctuates.The process, service relevant resources and the system are assigned for delivery
of a service during a set period of time. If the schedule customer does not request and
consume the service during the set time then the service cannot be stored and performed
next time for him .A plane cannot charge for an empty seat after departure. (Hoffman &
Bateson, 2006)The main challenge for service providing companies is if the schedule
customer does not request and consume the service during the set time then the service
cannot be stored and performed next time for him.

Strategies

Several strategies can produce a better match between supply and demand in a service
business:

Part time employees can help a business to serve peak demand for an example some
colleges add part time faculties when enrolment goes up which help a firm to meet the
demand successfully. A company should use better technology to improve their
work efficiency.

A company should differentiate its price according to demand which help them to create the
demand for an example in theatre when movie released at that time the ticket price should
be high because of more demand but after some days firm should decrease the price of
ticket to increase the demand.

Reservation system can be a way which can help company to manage the demand.

Investment in training and right hiring:

Every company should provide training to its employees to improve their productivity and
which help to lead more customer satisfaction and achieve the economics of scale.

Monitor customer satisfaction:

Every company should take customer feedback, employee’s suggestion. They should take
consumers survey and collect samples which help them to improve the service.

Inseparability:
The other difference between product and service is Inseparability. Whereas physical goods
are firstly manufactured, put in to stock, distributed through wholesalers and retailers and
consumed later but services are produced and consumed simultaneously. A barber cannot
cut hair without the presence of customer. (Hoffman & Bateson, 2006)

Strategies

To make services more effective a company should focus on these factors such as:

Training:
Every company should provide training to its employees to improve their productivity so
they can help to achieve the economics of scale.

Customer involvement:
There should be customer involvement in process of service delivery such as self services.

Convenience:
Location of the store, the opening and closing time of store must be convenient for
customers.

Variability:

Each time service is different and varies for the next delivery even if the same service
provider serves the same service and same service consumer requests the same service.
Because of the service quality depends on who provides them, where, when and to whom
services are highly variable. Those companies who have people base service process it is
difficult for them to deliver same kind of service every time constantly .It is difficult to
achieve the control on quality. Standardisation is difficult. Two restaurants within the same
chain may have variable service owing to the capabilities of their respective managers and
staff.

Strategies
Commonly, service buyers are aware of the variability of the service so they often talk to
others before the selection of service provider. So, to reassure, maintain and gain new
consumers companies should try to offer service quality and guarantees to reduce the
consumer’s perception of risk such as:

Task standardization:

A company should improve their work method and it should standardize the specific rules
and task and then they should work according to it. Every company should provide service
blueprint to employees so they can follow it and which can simultaneously map out the
process of service.

Investment in training and right hiring:

Every company should provide training to its employees to improve their productivity and
which help to lead more customer satisfaction and achieve the economics of scale.

Monitor customer satisfaction:

Every company should take customer feedback, employee’s suggestion. They should take
consumers survey and collect samples which help them to improve the service.