These are slides for educators that are based on following publication: Moeller, S. (2010), Characteristics of Services – A Customer Integration Perspective Uncovers their Value, Journal of Services Marketing, 24 (5), 359-368. Four characteristics have been regularly applied to services: intangibility, heterogeneity, inseparability, perishability (IHIP). More and more exceptions occur which have resulted in substantial criticism. This paper aims to show that each characteristic is valid and useful when related to an individual aspect of services instead of being assigned to services as a single entity. Based on customer integration, a framework (FTU framework) and a resource typology are developed. These approaches are the theoretical foundation of the analysis. The FTU framework and a resource typology reveal different aspects of services and allow the assignment of the IHIP characteristics to them. Intangibility is assigned to the service offering, heterogeneity and inseparability to customer resources, and perishability to the facilities of the provider. Assigning the IHIP characteristics more clearly to certain aspects of services reveals their origin and makes them more tractable. For example knowing that heterogeneity of services is due to customers resources makes it more predictable and manageable. Although the IHIP characteristics are both widely cited and criticized, existing research has only tried to find and establish new characteristic(s). The approach of this paper is original because it takes a more trenchant look at them in order to develop a framework identifying aspects of services for which they apply. more on www.sabinebenoit.com

1. v
CHARACTERISTICS OF
SERVICES
Moeller, Sabine (2010) "Characteristics of services – a new approach uncovers
their value", Journal of Services Marketing, Vol. 24, Issue 5, pp. 359-368
https://doi.org/10.1108/08876041011060468
A NEW APPROACH UNCOVERS THEIR VALUE

2. ABOUT THE STUDY
From the 1980s onward, the
acceptance of the so-called
IHIP characteristics
(intangibility, heterogeneity,
inseparability, and
perishability) was widely
observable.
PURPOSE
the focus of service
marketing has changed
the development of
information and
communication technology
has advanced dramatically.
Later, however, several
criticisms on IHIP
characteristics were voiced.
This paper aims to show that each characteristic is valid and useful when related to an
individual aspect of services instead of being assigned to services as a single entity.
1
2
Read the article: Moeller, Sabine (2010) "Characteristics of services – a new approach uncovers their value",
Journal of Services Marketing, Vol. 24, Issue 5, pp.359-368. https://doi.org/10.1108/08876041011060468

3. IHIP CHARACTERISTICS
GOODS SERVICESCRITICISM
TANGIBLE
HOMOGENOUS
SEPARABLE
NON-PERISHABLE
INTANGIBLE
HETEROGENOUS
INSEPARABLE
PERISHABLE
There are usually more tangible objects in a
service performance;
Countless possibilities of standardization in
services result in a reduction of heterogeneity;
Far too many separable services to
justify inseparability;
Restricted possibilities of storage of service;
Read the article: Moeller, Sabine (2010) "Characteristics of services – a new approach uncovers their value",
Journal of Services Marketing, Vol. 24, Issue 5, pp.359-368. https://doi.org/10.1108/08876041011060468

4. WHAT DIFFERENTIATES A GOOD FROM A SERVICE?
This research has analyzed the literature on IHIP to find a solution.
One characteristic that foremost differentiates services from goods is
INTEGRATION OF CUSTOMER RESOURCES
NO CUSTOMER RESOURCES
GOODS SERVICES
WITH CUSTOMER RESOURCES
John can create a landscape
picture
without anybody’s involvement.
But if John wants to paint Ken’s
living room, he needs access to
it. Without this access to Ken’s
resources, John cannot deliver
the service.
EXAMPLES OF CUSTOMER RESOURCES
A car that is
needed for
repair
A body that is
needed for
surgery
Client data that
is needed to file
a tax return
Read the article: Moeller, Sabine (2010) "Characteristics of services – a new approach uncovers their value",
Journal of Services Marketing, Vol. 24, Issue 5, pp.359-368. https://doi.org/10.1108/08876041011060468

5. CONSEQUENCES TO IHIP CHARACTERISTICS
INTANGIBILITY OF
PERFORMANCE PROMISE
DELIVERY IS INSEPARABLE
FROM CUSTOMER
RESOURCES
HETEROGENOUS
CUSTOMER RESOURCES
PERISHABLE
PROVIDER CAPACITY
Services are usually sold as a
performance promise; e.g. a tangible
concert ticket only serves as proof and
is not the service yet.
Customer resources like a broken car
are inseparable from the service
process. It is not the customer but the
customer resources that cannot be
separated.
Customer resources such as living room
walls are always heterogenous; e.g. some
families will have their living room cleared
and ready for John to do his paintwork,
while some might not.
Production capacity of service providers
is perishable when the customers are not
integrated at the right time; e.g. John
arrived at Ken’s house to paint his wall
but Ken isn’t around.
Read the article: Moeller, Sabine (2010) "Characteristics of services – a new approach uncovers their value",
Journal of Services Marketing, Vol. 24, Issue 5, pp.359-368. https://doi.org/10.1108/08876041011060468