Question

In: Operations Management

Marketing i. Services differ from goods in terms of Intangibility, Inseparability, Inconsistency and Inventory. Explain and...

Marketing

i. Services differ from goods in terms of Intangibility, Inseparability, Inconsistency and Inventory.

Explain and provide an example of Intangibility

Explain and provide an example of Inseparability

Explain and provide an example of Inconsistency

Explain and provide an example of Inventory

Solutions

Expert Solution

Intangibility

Intangibility is one of the main and important characteristics of service which distinguish service from goods. Intangibility simply refers to the inability to see or touch something. Service have the feature that it is invisible and intangible. Service is something which is transacted between buyer and seller which have no physical appearance and its benefit only can be demonstrated or felt by the buyer.

Example:- Transportation- In transportation service, the benefit of the buyer of service is invisible and intangible. The passenger give a price but not exchanging something which have a physical appearance. He/she can felt the benefit only by arriving at his/her destination through a transportation facility,i.e, taxi service, public transportation,etc.

Inseparability

Inseparability refers to the incapability of seperating the service from the service provider. It is an important characteristic of service which distinguish service from goods. In case of goods it transferred from one to another (wholesaler, retailer) after its manufacturing process. But, in case of service it cannot be transferred as goods from one another whereas the service can be provided only by the service provider.

Example:- If a hospital wants to hire a doctor, the physical appearance of doctor in the hospital is compulsory to treat a patient. That means in order to provide a service, the physical appearance of the service provider is compulsory. The doctor cannot provide his service from his home for a patient at the hospital. The ability of doctor to treat a patient is inseperable from the him.

Inconsistency

Inconsistency means the variability in each service provided to each customer. Not every customer needs a uniform type of service, it varies according to their needs and wants. Hence a firm provide the service as per their needs and wants to satisfy them. Inconsistency is a key characteristic of services.

Example:- A travel agency firm provide the service of providing facilities to travel by its customers from one place to another through booking of tickets in bus, train, or airlines. In case of domestic customers they reserve tickets for bus or train. Whereas, for international customers they reserve tickets for airlines. This is how the service vary from one customer to another.

Inventory

The characteristic of inventory related to the perishability of service. It is an important feature that service cannot be stored for future use. A physical product can be stored but a service cannot be stored for future. As the service is intangible and inseperable it cannot be stored anywhere and it is not perishable. Service will not experience any spoilage by use and will not wipe out from the service provider.

Example:- An empty seat in an 8 am train from place X to place Y cannot be carried over to provide more seatings in the next train. That is why the service cannot be carried and stored for future use.


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