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Definition

Service perishability

Definition (1):

Service perishability means that services cannot be stored for later sale or use. Some doctors charge patients for missed appointments because the service value existed only at that point and disappeared when the patient did not show up. The perishability of services is not a problem when demand is steady. However, when demand fluctuates, service firms often have difficult problems.

Definition (2):

Service perishability indicates services cannot be stored as inventory and they are intangible. For this reason, demand forecasting gets big trouble for the marketing managers, and a little mismatch in the demand can result in a loss of potential customers and sales. For instance, doctors provide advice and services to the patients, if the clinic remains closed for one week the service can be provided to the clients the next week whereas in the case of a restaurant if it remains closed for one week it cannot serve the same food the next week due to the issue of perishability. In such a case, the restaurant should have financial support to make up a week’s business loss. Service perishability is an important problem which marketing managers face in the service industry.

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