5 characteristic of service

Four of the most commonly identified characteristic of service were :

1. Simultaneity
2. Heterogeneity
3. Intangibility
4. Perishability

Closer consideration will reveal that Perishability stems from intangibility ,

simultaneity and Heterogeneity stem from high customer contact. Perishability
mean that the output or product cannot be stored for later consumption and sale. This
is because the product is intangible.
Production and consumption are simultaneous when customer needs to be
present throughout the production process. Example there is high customer contact.
Heterogeneity means each product is differs from previously produced
products. This is occurs when the production process differs with each customer
because customers will react or behave in different way and each interaction between
customers and service provider will be to extent unique as consequence of high
customer contact.
If factor analysis were to be performed, only 2 major factors would be emerge as
characteristic of service.

Simultaneity
Every time, a service is reproduced it will be different, making standardization
difficult and quality hard to define and ensure the fact that the customer is present
throughout the production process.

Safety – it is one important issue is customer safety. The safety of employees is

always a factor but customers are not trained as not be familiar with safety regulation.
Meanwhile layout and design of facilities is very important.

Signposting- it is quite apart from safety as facilities need to be well signposted.

When customers arriving for the 1st time at any facility, they will needs to know
where to go.

Layout- the actual layout will needs thought, not jus from the safety reason of view
but also from an ease of access perspective.

Décor-it will affect the service. It is influence the atmosphere of a facility. There may
be a trade-off between functionality and atmosphere.

Manner of delivery- this is because customers is present during production process,

customers can observe how the product is produced.

No pre-test- because of production and consumption take place simultaneously, it is

impossible to pre-test the service.
Unpredictability-people do not always behave as expected. The fact that no two
customers will ever want the same service as the fact that a customer is present during
conversion process which lead to inevitable surprise that may lead to disruptions of
the service.
The effect of unpredictability can have a major impact on scheduling or capacity
management. Customers take longer than expected and create bottleneck and queues
which negative affect the experience of other customers.
It has implication for scheduling, information gathering from the customer,
design of procedures, training of the customer, Layout and signpost and training of
employees who needs to be able to deal with unexpected.

Customer as unpaid employee- one aspect of the customer’s presence within the
system may be seen as very positive. Customers can be considered as unpaid
employees, fulfilling tasks that would have to be done by paid employees. The
implication for the operation managers using the customers as an unpaid employee
are mainly related to the reduced needs for paid employee. However there is needs for
training. Customers will needs to know what is their role.

High levels of personal judgement- employees operating machines will be trained in

technical skills. They will have to make decision regarding on routines and
procedures.
It is difficult in service setting when there is a high level of contact with customers
to produce procedures and guidelines to fit in every situation. The front line employee
is dealing with a customers will be making judgement about how to provide the
service.
Training in interpersonal skills to enable service employees to use their judgement
successfully is difficult.

Numerous outlets – another service is the needs for outlets must be near to the
customers. If the customer needs to be present during the transformation process then
location of the service needs to be convenient.

Impact from the technology- nowadays, the user may not needs to be present or on
sight anymore. This is because

For example, MRT used to have driver to control the train system but due to the
technology, train system is replaced and control by computer system where situated at
central control station.
 Heterogeneity
One characteristic of service is Heterogeneity nature of the product. It means the
service is differing with each customer because interaction and behaviour will be unique.
As a result, lack of standardization, staff training difficult and inconsistent quality
control.
The various factors affect the extent of diversity of design of a product.

It could be argued that customers are always difficult. For e.g. set of people, background,
education, interests, age, etc. will differ. As each customer will have slightly different
requirement , it will be possible to meet the requirement of large no. of customers.

The problem associated with heterogeneity will largely revolve around the inability to
standardize either product or procedures needed to deliver the service. The aspect of
delivering a quality product which will be covered the requirement of identifying
customers requirements and writing a specification to judge the quality and consistency
of delivery.
When the product specification changes every time, there is no way of ensuring that
mode of delivery is the best possible. There is no time to study, test. Adapt or refine the
product. Training is difficult as each encounter with the customer will be different and
will not follow a prescribed pattern.
Impact from technology
With the technology, data collection becomes easier than before.

For example, in the point of sales, free credit card gives away from department to collect
customers data.

Like in Carlton hotel, they will collect every customers data when staying in their hotel
as to stored as to improve the excellent service when customers come n staying in the
hotel again. As the staff can be more trained to cater the needs of specific customers.
With technology, there is also some standardization. For example, ATM machine is
very effective as it representatives of the banks but it can withdrawn certain of amount of
money like 10 note and 50 notes only.
Intangibility
As service is the ideas and concept only and product is the things. It allows service
innovation are not patentable which to ensure the benefits of service concept and the
firms must expand extreme rapidly and preempt any competitors.
The output from the transformation process is often intangible. There is usually a mix
of intangible and tangible for any product. Where the balance swings towards
intangibility, the industry may be thought of as belonging to the service sectors.
Intangible may cause problem which are linked to the problem of measurement.

One of the very 1st steps which need to be taken to ensure reproducibility of any
product is to write a product specification, giving dimensions and attributes. A vague
description will not be enough to allow others to reproduce the product.
For example, customer buying a product like car, they will take a look the
specification such as length, width, boot dimension, type of breaking system, colour,
weight, speed and what type of fuel consumption for different type of driving conditions.
The customers will know what it is they are buying , they can feel it and see it as well as
test it before buying.

If the customers are buying something is intangible, how can it describe? Subjective
is inevitable.
When a service involve providing an experience of any kind, whether exiting, relaxing,
entertaining, etc defining the dimensions of that service is fraught with difficulties.
Another consequence of intangible, which is linked to the measurement problem is
the fact that is not easy to specify how long it will take to provide a service thus making
scheduling difficult. This service is link with Heterogeneity and unpredictability.

The impact of technology-

There is specification. For example. The height of the ATM machines which is
design in way that the specification.

As well in the internet service provider such as Singnet and pacific internet which is
only dial up service by using telephone line but telephone line ,its speeds can not be
measured(intangible). With the advance of technology, there is a broadband service
via telephone line only which can give specific measurable speed (tangible)
Perishability

It is one of the characteristics of service most frequently presented. It is a direct

consequence of the intangibility of the product. Whenever there are elements of the
product that are not tangible which cannot be stored in the warehouse for later use.
Services are even more perishable than fruit which does have storage life.
For example, a flight from Singapore to any destinations with an empty seat or hotels
with empty rooms or, those seats or rooms cannot be stored and used again. Therefore
managers are disposal for the management of capacity is the ability to hold stock to meet
fluctuations in demand. When the demand over demands, the product will be stored to
meet future demand, if demand over the rate of production, customers may still be
supplied from stock or orders may be taken for goods to be supplies in the future.
Sometimes faced with variable demand and a perishable capacity to provide the service,
mangers have 3 basic choose ;-
1 )smooth demand by reservation or appointment ,price incentive and demarketing peak
times
2 ) adjust service by capacity by using part-time employee during peak hours, scheduling
the work shifts to vary workforce which needs to according to demand , increase
customers self service

3. Allow customers to wait.- by waiting , the customer permit greater utilization of

service capacity .

Impact from technology

For example, since service can not be stored, as technology have improve a lot to help a
certain extent like keep the capacity or inventory

Internet banking is common nowadays which customers could use internet to access
the internet banking system anytime anywhere without going to bank and take the Q.
Same as airline industry, we can online booking our ticket without go through travel
agents as it issues a e-tickets for customers to book online.