Question

1. Intangibility- services cannot be experienced by the senses before purchase

2. Inseparability- services cannot be separated from providers
3. Variability- quality of services depends on who provides them and when, where, and how
4. Perishability- services cannot be stored for later sale or use

Answer 1

The characteristics of services include intangibility, inseparability, variability, and perishability, which differentiate them from tangible goods. Advertising and intangible aspects such as guarantees can influence consumer preferences and create perceived product differentiation.

Step-by-step explanation:

The question pertains to the characteristics of services which set them apart from goods. Services are intangible, meaning they cannot be seen, tasted, felt, heard, or smelled before they are purchased. They are associated with intangible aspects such as guarantees, reputation, and added services like free delivery. Services are inseparable from the providers as they are typically produced and consumed simultaneously. The variability of services indicates that their quality can depend on various factors including the provider and the conditions under which they are provided. Lastly, services are perishable, which means they cannot be stored for future sale or use like goods can. This is unlike physical products that have tangible aspects such as an unbreakable bottle or a nonstick surface.

Advertising plays a significant role in shaping consumer perception and can create product differentiation in the minds of the consumers, even for items that are physically indistinguishable, like different brands of ketchup or mayonnaise. Understanding these characteristics is essential for businesses that offer services, as they must manage these unique aspects to meet consumer expectations and create value.