CBSE Class 11 - Business Studies - Chapter 4 - Business Services - Features Of Service (#cbseNotes)

Business Services - FEATURES OF SERVICES

CBSE Class 11 - Business Studies - Chapter 4 - Business Services - Features Of Service (#cbseNotes)

Business services are essential and indispensable to the smooth flow of trade and industry.

Examples of business services are:

  - Banking
  - Insurance
  - Transport
  - Warehousing
  - Communication

Types Of Services 

1. Social Services: Provided voluntarily to achieve certain goals e.g. health care and education services provided by NGOs.

2. Personal Services: Services which are experienced differently by different customers.
e.g. tourism, restaurants etc.

3. Business Services: Services used by business enterprises for the conduct of their activities.
e.g. Banking, Insurance, communication, warehousing and transportation.




Features or Nature Of Services are:

CBSE Class 11 - Business Studies - Chapter 4 - Business Services - Features Of Service (#cbseNotes)

1. Intangibility

They do not have physical existence and cannot be touched.

2. Inconsistency

As services are intangible they have to be provided exclusively each time. The service provider should modify his offer to meet the requirements of the customer.

3. Inseparability

Services cannot be separated from their providers or sellers.

4. Involvement

The involvement of customer is necessary for delivery of service. It provides the opportunity to the customer to get the services modified according to his requirement.

5. Inventory

Services are consumed as soon as they are delivered. It means it cannot be stored for future use. Services are perishable and have to be performed as and when required.

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