A service is any act performed by one party for another party which is intangible in nature and does not result in the ownership of anything.
Example of service could be providing computer education or preparing income statement of a firm.
A service is characterized by intangibility, inseparability, variability and perishability.
1. Intangibility: Services cannot be seen or felt.
2. Inseparability: Services are produced and consumed simultaneously. To avail a service there is one point of purchase and consumption. Though now some services like education have multiple channels.
3. Variability: Services are variable in nature. Salon A providing hair spa would be different than Salon B (franchise of Salon A) providing hair spa.
4. Perishability: Services cannot be stored like products.