Service Perishability

Posted in Marketing and Strategy Terms, Total Reads: 15606
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Definition: Service Perishability

Services are intangible and cannot be stored as inventory, hence it can never get perished, because the service cannot be stored, demand forecasting becomes a major problem for the marketing managers, and a slight mismatch in the demand may lead to loss of potential sales and customers.

For example: Doctors provide service to the patients, if the clinic is closed for a week the service can be rendered to the customers the next week whereas in case of a restaurant if it is closed for a week the same food cannot be served the next week because of the perishability issue.

 

 

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