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What are the characteristics of services?
Intangibility, inseparability, variability, perishability.
How do services differ from goods?
Services are intangible and do not result in ownership, whereas goods are tangible products that can be owned.
Which of the following are types of business services? (Select all that apply)
What is e-banking?
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What types of insurance policies can be identified?
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What are the different types of warehouses?
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Services result in the ownership of physical items.
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How do petrol pump owners communicate with customers and suppliers?
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How do petrol pump owners finance their purchases?
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All business activities are tangible.
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Study Notes
Introduction to Business Services
- Services are intangible activities that provide satisfaction of wants.
- Services are not linked to the sale of a product or another service.
- Services do not result in the ownership of anything physical.
- Goods are physical products delivered to purchasers, distinct from services.
Examples of Services in Daily Life:
- Utilizing a petrol pump involves various services, including transportation, warehousing, communication, banking, and insurance.
- Purchasing and eating ice cream at a restaurant involves purchasing the ice cream (good) and experiencing the service (restaurant service).
- Watching a movie in a cinema hall is experiencing a service.
- Leasing a school bus from a transporter is purchasing the service of transport.
Characteristics of Services:
- Intangible: Services cannot be touched or seen, unlike physical goods.
- Perishable: Services cannot be stored or saved for later use.
- Heterogeneous: Services can vary in quality depending on the provider and customer.
- Inseparable: Services are usually produced and consumed simultaneously.
- Importance of Interaction: Services require interaction between the service provider and consumer.
Types of Business Services:
- Transport Services: Moving people or goods from one place to another.
- Warehousing Services: Storing goods safely and efficiently.
- Communication Services: Facilitating communication between individuals, businesses, and organizations.
- Banking Services: Providing financial services, such as loans, deposits, and payments.
- Insurance Services: Providing financial protection against risks and uncertainties.
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Description
Explore the fundamental concepts of business services, distinguishing them from goods and understanding their characteristics. This quiz covers examples of services in daily life and delves into the intangible, perishable, and heterogeneous nature of services. Enhance your understanding of how services play a critical role in our economy.
