Service Perishability

Published by MBA Skool Team, Last Updated: January 22, 2018

What is 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.

 

 

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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