Operations Service Managment:

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This question pertains to graduate level - Operations Management course.

Discuss the 5 distinctive service characteristics as they relate to high end auto dealerships, such as Volvo.
1. Intangibility :
Intangibility of services is an important quality of services. The reason is that services are actions, benefits or fulfillment that is offered for sale an in case of high end auto dealerships are provided in connections with the sale of cards. In case of car dealership people feel that intangibles matter little. What is important is the dealership's ability to offer high quality cars at competitive prices. High end auto dealerships provide intangible services like maintenance agreements. From another perspective intangibility refers to that aspect of the service that cannot be touched or viewed and so the service offered cannot be described in advance. However, from point of view of high end-auto dealership there are several services that can be described. For instance, the financing that is offered can be described clearly and its terms communicated in a manner that is transparent. Maintenance agreements may be in written form but the services provided by the high end auto dealerships to the customers is intangible.
2. Perishability:
Perishability of services means that the services cannot be stored for future sale or future use. High end auto dealerships provide services that are perishable. In other words the services should be carried out at the relevant time and the services are useful only if they are carried out at the appropriate time. Literature says that services are perishable. Consider the example of a high end car dealer. Such dealers usually sell service contracts. These contracts cover the vehicle from the mechanical failure after the manufacturer's warranty expires. Now if a customer that is covered by a service ...