Service Organisations

Service organizations produce services which are: Intangible - cannot be seen and touched. It is something someone else does for you. Unlike a manufacturing organization, no product is actually produced. Cannot be stored - services are consumed in the process of delivering the service The customer needs to be present to receive a service - usually tailor made to suit their needs (ie. think about having a haircut) Are usually labour intensive - usually an employee needs to deliver a service Much more difficult to assess the quality of a service