What is a characteristic of services that makes them different from physical goods?

Services are distinct from physical goods primarily because they are produced and consumed simultaneously. This characteristic highlights the real-time nature of service delivery; the service is generated at the moment of consumption, meaning that the interaction between the service provider and the consumer often occurs concurrently. For example, when a guest checks into a hotel, the service of the check-in process happens at that moment, unlike a physical product which can be manufactured and stored before it is sold.

This immediacy creates unique considerations for businesses offering services, as they need to ensure quality and customer satisfaction during the actual experience, rather than relying on stockpiled inventory. Features such as variability and perishability are also linked to this aspect of services, reinforcing the importance of the service delivery process.

In contrast, the other options relate to characteristics of physical goods or misinterpret the functionalities of services. For example, services cannot be stored for later use, they do not typically have fixed pricing structures due to variations in demand and service delivery situations, and they cannot be physically touched before purchase as physical goods can.