Correct option is A
Services have four key characteristics as defined in service marketing literature:
Intangibility – Services cannot be seen, touched, or physically possessed before purchase.
Inseparability – Services are produced and consumed simultaneously, unlike physical goods.
Variability (Heterogeneity) – The quality of services varies depending on who provides them and under what conditions.
Perishability – Services cannot be stored for future use; they must be consumed at the moment they are produced.
The given statements are:
(A) Services are non-perishable – Incorrect
Services are actually perishable, not non-perishable. Unlike products, services cannot be stored for future use.
Example: An empty airline seat on a flight cannot be saved for later.
(B) Services have inseparability of production and consumption – Correct
Services are produced and consumed at the same time.
Example: A doctor's consultation is delivered and consumed simultaneously.
(C) Services have the quality of perfect standardization – Incorrect
Services are not perfectly standardized; they vary based on provider, time, and conditions.
Example: The same haircut by the same barber may differ slightly each time.
(D) Services have the characteristic of Variability – Correct
The quality and consistency of services can change due to human involvement.
Example: A waiter’s attitude at a restaurant may vary each visit.
(E) Services are highly tangible so can be touched – Incorrect
Services are intangible; they cannot be touched or physically handled.
Example: Legal advice or a medical diagnosis is a service that cannot be physically touched.
Information Booster:
Characteristics of Services (IHIP Model):
Intangibility– Services cannot be physically seen, touched, or stored.
Heterogeneity (Variability)– Each service delivery experience may differ.
Inseparability– Services are produced and consumed together.
Perishability– Services cannot be stored for later use.
Examples of Services:
Healthcare – A doctor’s consultation.
Education – A lecture or an online course.
Hospitality – Hotel stay, restaurant dining.
Additional Knowledge:
(A) Services are non-perishable – Incorrect
Services are perishable, meaning they cannot be stored for future use.
Example: A missed airline seat on a flight is lost revenue.
(C) Services have the quality of perfect standardization – Incorrect
Services vary from provider to provider and situation to situation.
Example: Customer service in a restaurant may be better on some days than others.
(E) Services are highly tangible so can be touched – Incorrect
Services are intangible and cannot be physically touched.
Example: A banking service does not have a physical form.