In: Operations Management
how does the implications of the fact the services are purchased then produced and consumed simultaneously and how services are consumed?
One of the characteristic of 'service' is that it is inseparable. The service can be produced and consumed at the same time. You cannot separate the service and its consumption. Customer can not get chance to return the service once it is being consumed by him. Service promotes heterogeneity. If goods are damaged they can be returned, but in the case of service once it is being consumed then there is no scope of returning it once damage is done or the problem has has been faced. The service cannot be stored. It is perishable. That's why, the services are purchased then produced and consumed simultaneously.
Once service is provided to the customer, it cannot be transferred to the person or returned to the seller. It cannot be stored for sale in future. It cannot be refunded, returned, resold once customer consumes them. So, Service are being consumed through experience.
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