For a layperson, services are essentially intangibles. Their purchase does not result in the ownership of anything physical. But the actual definition is that Services are that separately identifiable, essentially intangible activity that provides satisfaction of wants, and are not necessarily linked to the sale of a product or another service. There are five basic features of services.

Intangibility: One cannot taste a doctor’s treatment, or touch entertainment. One can only experience it. Therefore, Services are intangible, i.e., they cannot be touched. An important implication of this is that quality of the offer can often not be determined before consumption and, therefore, purchase. Continue reading →