1. Intangibility : Services are intangible, they cannot be touched. They are experiential in nature e.g. one cannot taste the lawyer's advice or touch it.
2. Inconsistency : Different customers have different demands and expectations, e.g. telecom services.
3. Inseparability : Services cannot be separated in production and consumption. There is simulation of production and consumption because of which production and consumption services seem to be inseparable e.g. while we can manufacture a scooter today and carry it to be sold after a month, but this is not possible with services that have to be consumed as and when they are produced.
4. Involvement : Customer has direct participation in the service delivered process. A customer has the opportunity to get the services modified according to the specific requirement.
5. Perishability : Services cannot be produced before sale and stored for future demand e.g. an empty seat in an aircraft, a spare birth in train represent a service capacity which is lost forever.
Tips: -
(V.Imp)It has many advantages. Firstly it enables the wider distribution of risk. Secondly, the insurer can contract to indemnify more risks. Thirdly, it stablises income over a period of year.
Overdraft facility is the special features on this account. Account holder may arrange with the bank to withdraw more than the deposit. After the account is opened, the bank issues the following three books :
(i) Pass Book, (ii) Cheque Book, (iii) Pay-in-slip book
By storing their goods in the bonded warehouses importer gain some control over their goods even before they have paid duties on them. They can remove these goods in part, that is in small quantities, as and when they are sold, after making payments of the duty and warehousing charges on only part of the goods which they want to remove.