There are five basic
features of services. These features also distinguish them from goods and are
known as the fiveIs of services. These are discussed as below:
(i)
Intangibility: Services are intangible, i.e., they
cannot be touched. They are experiential in nature. One cannot taste a doctor’s
treatment, or touch entertainment. One can only experience it. An important
implication of this is that quality of the offer can often not be determined
before consumption and, therefore, purchase. It is, therefore, important for
the service providers that they consciously work on creating a desired service
so that the customer undergoes a favourable experience. For example, treatment
by a doctor should be a favourable experience.
(ii)
Inconsistency: The second important characteristic
of services is inconsistency. Since there is no standard tangible product,
services have to be performed exclusively each time. Different customers have
different demands and expectations. Service providers need to have an
opportunity to alter their offer to closely meet the requirements of the
customers. This is happening, for example, in the case of mobile services.
(iii)
Inseparability: Another important characteristic of
services is the simultaneous activity of production and consumption being
performed. This makes the production and consumption of services seem to be
inseparable. While we can manufacture a car today and sell it after, say, a
month; this is often not possible with services that have to be consumed as and
when they are produced. Service providers may design a substitute for the
person by using appropriate technology but the interaction with the customer
remains a key feature of services. Automated Teller Machines (ATMs) may replace
the banking clerk for the front office activities like cash withdrawal and
cheque deposit. But, at the same time, the presence of the customer, is
required and his/her interaction with the process has to be managed.
(iv)
Inventory (Less): Services have little or no tangible
components and, therefore, cannot be stored for a future use. That is, services
are perishable and providers can, at best, store some associated goods but not
the service itself. This means that the demand and supply needs to be managed
as the service has to be performed as and when the customer asks for it. They
cannot be performed earlier to be consumed at a later date. For example, a
railway ticket can be stored but the railway journey will be experienced only when
the railways provides it.
(v)
Involvement: One of the most important
characteristics of services is the participation of the customer in the service
delivery process. A customer has the opportunity to get the services modified
according to specific requirements.
