Read the given passage and answer the questions that follow.
There are five basic features of services. These features distinguish them from goods. The first is that services are intangible. 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 or before 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. 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. Another important characteristic of services is the simultaneous activity of production and consumption being performed. This makes the production and consumption of services 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. For example, the services of a teacher, doctor or lawyer. 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. 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 by a traveller only when the railways provide it.

Q:

What is the key feature of any service?

• 1
  It is non-perishable
• 2
  Interaction with the consumer
• 3
  Ability to be stored for future use
• 4
  Automation of service