Along with goods, services are produced and consumed. They are generally, possess the following:
1. Intangible:
- Intangible things are not physical objects but exist in connection to other things for example, brand image, good will etc.
- The intangible things are converted and stored into tangible items such as recording a music piece into a pen – drive.
2. Heterogeneous:
- Services vary across regions or cultural backgrounds.
- A single type service yields multiple experiences, e.g., music, consulting physicians etc.
3. Inseparable from their makers:
- Services are inextricably connected to their makes. For example, labour and labourers are inseparable.
4. Perishable:
- Services cannot be stored as inventories like assets.
- For example, it is useless to possess a ticket for a cricket-match once the match is over.
- It cannot be stored and it has no value-in-exchange.