Page 76 - APM Integrated Workbook STUDENT S18-J19
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Chapter 4
The needs of services
Five key characteristics of service organisations
1 Intangibility – output not a physical product.
Heterogeneity – high level of human intervention/demand for
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customised service.
3 Simultaneity – service produced and consumed at the same time.
4 Perishability – can’t hold inventory.
5 No transfer of ownership – customers use service for a limited period.
These differences will result in different objectives and CSFs.
Hence performance measures may focus on areas such as:
speed of service
flexibility
consistent quality
attitude and helpfulness of staff
ambience of premises.
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