and conclude that as a result service quality tends not to be measured. The inseparability characteristic describes the simultaneous production and consumption of the service product. Services are not manufactured and tested for quality prior to customer consumption. Consumers are involved in consumption as well as production, and play an active role in determining the quality ultimately received. Services are heterogeneous and therefore, performance can vary within employees as skills and moods change. Often different individuals provide a different service (Zeithaml 1984). So, controlling the variability of customer contact employees becomes extremely important. Perishability means that service cannot be saved or stored (Bessom and Jackson 1975, Thomas 1978), hence service businesses frequently find it difficult to synchronise supply and demand. Therefore, in order to solve this problem, the supplier must use strategies which enable him to cope with fluctuating demand and make simultaneous adjustments in demand and capacity