Business services are called those activities that help companies but do not provide a tangible product. For example, information technology is one of those business services that supports various other business services such as shipping, procurement and finance. Most companies today are inclined to such specialized commercial services.
Is becoming extremely competitive and giving stiff competition to other countries in the provision of services. A large number of foreign countries prefer India as a hosting partner for business services, sometimes they even prefer to open a branch.
Features of Business Services
Business services divided into five characteristics are mentioned below.
- These are intangible assets, they can not be touched.
- They don't have their physical presence.
- A person can only experience it.
- It is important to provide quality service to the customer, so that the customer can feel the favorable experience.
- Example: Teaching by teachers, treatment of the doctor to patients, etc.
- There is no consistency in services as in physical products.
- Whenever the service is to be performed exclusively.
- The requirements and expectations of different customers are different.
- Each time the service provider has to change the service accordingly.
- Production and consumption are simultaneous in the case of services.
- If we produce the goods today, they can be sold later.
- The services cannot be stored for the future.
- It has no physical components.
- The demand and the service offer are very close to each other.
- The service must be provided to the customer as and when requested.
- Example: McDonald's burger can be stored but the taste cannot be experienced.The plane ticket can be stored, the trip can be experienced.
- The services are provided according to customers' requirements.
- He has the involvement of customers in the process of providing services.
- What are the types of services?
- Here are the types of Services:
(1) Business services
- Services used by commercial enterprises in the conduct of the company's activities.
- For example: Banking, insurance, warehousing, communication services, etc.
2) Social services
- These are provided voluntarily to achieve social goals.
- Example: Providing educational and health facilities for employees and their family members.
(3) Personal Services
- These are not consistent in nature.
- Different consumers have different services.
- They depend on the priority of the client.
- Example: Tourism, restaurant etc.
Differences between Goods and Services
No physical existence
Production and consumption can be separated. For example, Buying vegetables for storage.
Production and consumption cannot be separated.
For example, Eating out.
Different customers get a satisfied standardized request.
Different customers having different demands.
Can be kept in stock
Cannot be kept in stock
Q.1 What is an Intangible Product?
These are intangible assets, they can not be touched.
They don't have their physical presence.
A person can only experience it. Example: Teaching by teachers, doctor with patients, etc.
Q.2 Give 3 Examples of services?
Banking, insurance, transport.
Q.3 Name the Services Undertaken by the Organization to Encourage Social Protection?
Q.4 Name the Services That Are Undertaken by the Organization to Achieve the Organization's Goals?
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