Question

Answer the following question in short:
State the nature of business services.

Answer 1

The following points highlight the nature of business services:
i. Intangible - Business services are intangible in nature—that is, they cannot be seen or touched but can only be experienced. This implies that the quality of services cannot be checked before their use. Thus, it becomes imperative for service providers to offer services to the satisfaction of the individuals concerned.
ii. Non-transferability - Because business services are non-transferable. In other words, the ownership of business services cannot be transferred from person to person.
iii. Heterogeneity - No standards can be set for services; they are to be provided each time according to the demand and expectations of the service users. As each service user has a different taste and preference, the type and quality of services provided differ according to the preference of the user.
iv. Involvement - The involvement of the service user and the service provider is necessary to ensure that the service user experiences the services to his/her satisfaction. For instance, in a school, the teacher and the students are actively involved in the exchange of knowledge.
v. Inventory - Services cannot be stored for future sales. They need to be provided as and when the service users ask for them. This is because if services are not consumed immediately, then they lose their value.