What is Services? Explain in detail different business services.
Solution:
Services are intangible in nature; they are neither manufactured, transported nor stocked. Services cannot be stored for future use hence they are produced and consumed simultaneously. They are intangible in nature, heterogeneous, inseparable, inconsistent, perishable in nature, and require consumer participation.
Types of Business Services:
There are various types of services depending upon their nature and purpose. Some of the important services are as follows.
1. Banking:
A bank is a financial institution which deals with deposits and advances and other related
services. Bank provides various services related to money or financial requirements of consumers.
2. Insurance:
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Insurance is a contract between the insurer and the insured, whereby the insurer agrees to compensate the insured against loss. The insured has to pay a certain fixed sum of money on a *timely basis to the insurer.
3. Transportation:
Transportation is the movement of people, animals, and goods from one location to another location or it can be defined as a means of carrying goods and people from one place to another place. Generally, transportation is carried through various modes such as railways, roads, waterways, and the airway.
4. Warehousing:
Warehousing refers to the storage of goods and consists of all those activities which are connected with the storage and preservation of goods. It is a means of storing goods. Warehousing can be defined as a group of activities connected with the storing and preserving of stored goods from the time of production until the time of consumption.
5. Communication:
The process of passing any information from one person to another with the help of some medium is termed as communication. Communication is a very simple process where the message is being transferred from a sender to the receiver. The receiver after receiving the message understands it in the desired form and then acts accordingly.
