What are services? Explain their distinct characteristics.

A type of economic activity that is intangible, is not stored and does not result in ownership. A service is consumed at the point of sale. Services are one of the two key components of economics, the other being goods. Examples of services include the transfer of goods, such as the postal service delivering mail, and the use of expertise or experience, such as a person visiting a doctor. Some of the important characteristics of services are as follows:
1. Perishability: Service is highly perishable and time element has great significance in service marketing.
2. Fluctuating Demand: Service demand has a high degree of fluctuations. The changes in demand can be seasonal or by weeks, days or even hours. Most of the services have peak demand in peak hours, normal demand and low demand on off-period time.
3. Intangibility: Unlike a product, service cannot be touched or sensed, tested or felt before they are availed. A service is an abstract phenomenon.
4. Inseparability: Personal service cannot be separated from the individual and some personalized services are created and consumed simultaneously. For example, a haircut is not possible without the presence of an individual. A doctor can only treat when his patient is present.
5. Heterogeneity: The features of service by a provider cannot be uniform or standardized. A Doctor can charge a much higher fee to a rich client and take much low from a poor patient.
6. Pricing of Services: Pricing decision about services are influenced by perishability, fluctuation in demand and inseparability. Quality of a service cannot be carefully standardized. Pricing of services is dependent on demand and competition where variable pricing may be used.
7. Service quality is not statistically measurable:  It is defined in form of reliability, responsiveness, empathy, and assurance all of which are in control of employee's directly interacting with customers. For service, customers satisfaction and delight are very important. Employees directly interacting with customers are to be very special and important. People include internal marketing, external.