IntangibilityAs services such as air transport oreducation cannot be touched or testedPerishability.§ Services cannot be stored for future use§ To maintain service capacity constantlyat levels necessary to satisfy peakdemand is very expensive.Inseparability.The service is provided at the point of sale. Thismeans that economies of scale and experiencecurve benefits are difficult to achieve, and supplyingthe service to scattered markets can be expensive,particularly in the initial setting-up phase.Heterogeneity.§ Services are rarely the same because theyinvolve interactions between people.§ There is high customer involvement in theproduction of services