Which of the following characteristics apply to service organisations?
i. They produce intangible outputs.
ii. Services cannot be stored.
iii. They purchase goods for sale.
iv. Services are consumed as they are produced.
A) i, ii and iv
B) ii, iii and iv
C) i, ii and iii
D) All of the given answers

Question

Quizplus · Accepted Answer

i. Service organisations produce intangible outputs, such as education or healthcare, that cannot be physically touched or held.
ii. Services cannot be stored because they are consumed as they are produced. For example, a haircut cannot be stored and sold at a later date.
iii. Service organisations may purchase goods for sale, but this is not a defining characteristic of a service organisation. Some service organisations, such as banks, do not purchase goods to sell.
iv. Services are consumed as they are produced, which makes it difficult for service organisations to balance supply and demand.

Which of the Following Characteristics Apply to Service Organisations