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.

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