Character format (-c) uses the char datatype for all columns. It inserts tabs between fields in each row and a newline terminator at the end of each row.
For example, this command copies out the data from the publishers table in character format to the file pub_out:
bcp pubs2..publishers out pub_out -c
0736 New Age Books Boston MA 0877 Binnet & Hardley Washington DC 1389 Algodata Infosystems Berkeley CA