Services and its Characteristics Video Lecture | Business Studies (BST) Class 11 - Commerce

services and its characteristics
services a business organization
produces and offers goods and services
in order to earn profit as well as to
fulfill the needs and desires of
consumers goods are tangible products
that can be seen touched and are capable
of being delivered to a buyer services
on the other hand are those intangible
activities that provide satisfaction of
wards and imply an interaction to be
realized between the service provider
and the consumer for example treatment
by a doctor features of services
services have unique features which make
them different from goods the features
which are known as the five eyes of
services are intangibility inconsistency
inseparability inventory less and
involvement let us understand the five
eyes of services
intangibility services are intangible
that is they cannot be seen tasted
failed heard or smelled before they are
consumed like goods they are experienced
in nature one cannot taste a doctor's
treatment and can only experience it in
consistency the second important
characteristic of services is
inconsistency the provision of services
includes a large measure of human
element in this case a service provider
may alter its offer according to the
needs of customers for example adopter
treats his patients according to their
problems
inseparability another important
characteristic of services is that the
service provision is inseparable from
the service consumption for example taxi
operator drives taxi and the passenger
uses it the presence of the taxi driver
is essential to provide the service the
services cannot be produced now for
consumption at a later stage or time
inventory less services are perishable
and cannot be stored for future use that
is service providers can store some
associated goods but not the service
itself for example a railway ticket can
be stored but the railway journey will
be experienced only when the railway it
provides it involvement the other
important feature of services is the
participation of the customer in the
service delivery process a customer may
get modified services according to
specific requirements services and goods
can be distinguished on the following
basis
types of services services can be
classified into three broad categories
business services social services and
personal services let us understand the
different types of services in detail
business services services which are
used by business organizations in order
to conduct their activities may be
termed as business services examples of
business services are banking insurance
transportation warehousing and
communication services let's take a
brief look at a few of these banking
banking is the business activity of
accepting and safeguarding money owned
by other individuals and entities and
then lending out this money in order to
earn profits the different kinds of
banks are commercial banks cooperative
banks specialized banks and central bank
insurance insurance is a contract
between two parties whereby one party
agrees to undertake the risk of another
in exchange for a consideration known as
premium and promises to pay a fixed sum
of money to the other party on the
happening of an uncertain event or after
the expiry of a certain period insurance
may broadly be classified as life
insurance and general insurance
transportation transportation includes
freight services along with supporting
and auxiliary services by all modes of
transportation like rail road air and
sea for the movement of goods and
international carriage of passengers
we're housing where housing is keeping
and storing of goods in a scientific and
systematic manner so as to maintain
their original quality value and
usefulness
it is warehousing that makes the right
commodity available in the right
quantity at the right place in the right
time in the right physical form at the
right cost there are different types of
warehouses like private warehouses
public warehouses bonded warehouses
government warehouses and cooperator
warehouses communication communication
is a two-way process of reaching a
mutual understanding in which
participants not only exchange encode
decode information but also create and
share meaning business organizations
need to communicate with suppliers
customers competitors and so on in order
to attain goals the main communication
services which help business can be
classified into postal and telecom
social services social services are
those services that are generally
provided voluntarily in pursuit of
certain social goals like to improve the
standard of living for weaker sections
of society to provide educational
services to their children or to provide
health care and hygienic conditions in
slum areas just to name a few personal
services those services which I
experienced differently by different
customers may be termed as personal
services these services depend upon the
service provider customers preferences
and demands for example tourism
recreational services restaurants just
to name a few in a nutshell services are
those separately identifiable and
essentially intangible activities that
provide satisfaction of warmth and are
not necessarily linked to the sale of a
product or another service the five
basic features of services that
distinguish them from goods are
intangibility inconsistency
inseparability inventory less and
involvement services can be broadly
classified into three groups business
services social services and personal
services
you