Ownership is never transferred in the case of services.
In products, the product is produced first and than it is sold. However in services, the product is bought first and than produced and consumed. In this case the ownership is not transferred.
Perishability in services marketing
September 21, 2010 by 2 Comments
One of the crucial factors / problems faced by marketers is the perishability factor in services marketing. In other words services have Zero Inventory! Once sold, they stand sold and cannot be returned. Hence several times in the services industry the saying “First impression is the last impression” actually stands true.
Intangibility in services
September 18, 2010 by 1 Comment
When you buy a cake of soap, you can see, feel, touch and use it to check its effectiveness in cleaning.
But when you pay fees for a term in college, you are paying for the benefit of deriving knowledge and education, which is delivered to you by teachers.
In case of soap you can immediately check its benefits, there is no way you can do so in case of the teachers who are providing you the benefits. Teaching is an intangible service. Services cannot be felt, tasted, touched or seen in the same way as goods.
