Service Characteristics Of Sport

Sport can be considered a service, as opposed to a good. But have you ever wondered what helps to explain this distinction? The following four concepts provide us with examples of the service characteristics that relate to the sport product. 

PERISHABILITY

Essentially, perishable services are 'time-dependent'. This is so, as once the service is rendered to the consumer, that service cannot be stored, returned or resold. As a result, perishability also represents lost revenue. For example, if tickets to a particular AFL game are not sold, that service cannot be offered once that specific game ends. As the empty seats cannot be utilised once the match is finished, the unsold seats contribute to lost revenue as money cannot be recouped. 

HETEROGENEITY

Services, unlike products, can be unique and dependant on different variables. Such variables include the person who is performing the service, the location of the service and even the time of the service. As a result, no two services can be replicated in the exact same way which leads to inconsistency and unpredictability. For example, no two ice hockey matches will be played identically and the employees working at the game may also deliver services to consumers differently.

INTANGIBILITY

Products have the ability to be smelled, felt, tasted or seen, whereas services cannot. This is so, as products are objects and services do not have a physical presence. Instead, services have the ability to be performed and the takeaway for the consumer is not tangible. For example, once a game of tennis has been played at the French Open, the spectators do not leave with a benefit that they can hold, taste, see or smell.

INSEPARABILITY OF PRODUCT & CONSUMPTION

Lastly, inseparability means that the production and the consumption of a service occurs simultaneously. In doing so, it is difficult to produce and store away a particular service before it has been consumed. For example, a baseball fan with season tickets must attend the match in order to receive the service of baseball being performed.