The Four I’s of Services

– Services cannot be held, touched or seen before purchase decision.
– Performance more than object, difficult for consumers to evaluate
How to overcome Intangibility
Marketers try to make them tangible or show the benefits of service
Developing, pricing, promoting and delivering services is challenging because the quality of a service is often inconsistent.
Services depend on the people providing them.
The consumer cannot separate the deliverer of the service from the service itself
Inventory carrying costs are more subjective and are related to idle production capacity – the service provider is available but there is not demand