Which of the following indicates “Perishability” aspect of service characteristics?

Correct option is D

Perishability is one of the four key characteristics of services (along with intangibility, inseparability, and variability). Perishability means that services cannot be stored for later use or sale. If a service is not used when available, the opportunity is lost. For example, an unoccupied seat on a flight or an unbooked hotel room on a given night represents lost revenue that cannot be recovered.

Because of this, it becomes difficult to match supply with fluctuating demand. This is why businesses in the service sector face challenges during off-peak and peak times, as they cannot stock services like goods to meet demand later. Hence, synchronizing demand and supply becomes complex — which is the essence of perishability.

Information Booster:

• Perishability refers to the fact that services cannot be inventoried.

• Service capacity is time-bound — if not used, it perishes.

• Leads to revenue loss if demand is low at a given time.

• Examples: Empty hotel rooms, unsold airline tickets, idle hairdressers.

• To manage perishability, businesses use demand forecasting, pricing strategies, and reservations.

• Yield management and dynamic pricing are tools used to optimize service delivery in response to demand.

Additional Knowledge:

(a) Customers participate in and affect the transaction
This describes the inseparability aspect, meaning services are produced and consumed simultaneously, and customer interaction is essential.

(b) Service delivery and customer satisfaction depend on employee actions
This relates to variability (heterogeneity) — services are not standardized and can vary based on who provides them and how.

(c) Customers affect each other
This is also part of inseparability, where the presence and behavior of one customer can influence the service experience of others (e.g., other guests in a restaurant or flight).