CHAPTER 4
BUSINESS SERVICES
Nature of Services – There is five basic features of service called five “I”s, they are as follows:
1. Intangibility – Services are intangible. We cannot touch or taste or feel them. E.g. one
cannot taste a doctor’s treatment, only can experience it.
2. Inconsistency – Services are provided depending upon the demands and expectations of
different customers as and when it is needed. Service providers should adjust their offer to
closely meet the requirements of the consumers. E.g. Service given by the mobile service
providers.
3. Inseparability – Services are produced and consumed at a time. But in case of goods it is
not so.
4. Inventory – (No Inventory) since there are not tangible components in services, they
cannot be stored for future use.
5. Involvement – It implies the participation of the customer in the service delivery process.
Differences between Services and Goods
Services
Goods
1. An activity or process A physical object
2. Intangible Tangible
3. Inconsistency –
different customers Consistency – All customers get
different demands standardized products.
4. Inseparability –
production and Separable – production and
consumption at a time. consumption are separated in
different times.
5. No inventory Inventory – can be kept in stock
Types of Services
, 1. Business Services – Business includes trade and aids to trade. Banking, Insurance,
Transportation, Warehousing etc. are aids to trade or service sectors of business. They provide
services to business enterprises for the conduct of their activities.
2. Social Services – Services rendered voluntarily to achieve certain social goals are called
social services. They are meant for improving the standard of living of weaker section of
society or providing education, healthcare etc.
3. Personal Services – these types of services differ depending upon the tastes and
preferences of customers. E.g. tourism, recreation, resorts etc.
Business Services
I. BANKING
According to the Banking Regulations Act 1949, banking means “accepting for the
purpose of lending or investment of deposits of money from the public, repayable on
demand or otherwise and may be withdrawn by cheque, draft or otherwise”.
Types of BankS
1. Commercial Banks
2. Co-operative Banks
3. Specialized Banks
4. Central Bank
1. Commercial Banks – These are the institutions dealing in money and credit.
They are governed by Indian Banking Regulation Act 1949.
Types of Commercial Banks:- Commercial banks are classified on the basis of
their ownership.
a. Public Sector Banks: They are the banks which are owned and managed by the
government with a view to channelize bank credit in line with national priorities.
Government of India nationalized fourteen commercial banks in 1969 and another six
commercial banks in 1980.
b. Private Sector Banks: They are owned and managed by private parties. Even though
they are governed by the RBI, they are free to evolve their own policy decisions regarding
the banking operations. About to be 34 private sector banks are their in India like IDBI,
BUSINESS SERVICES
Nature of Services – There is five basic features of service called five “I”s, they are as follows:
1. Intangibility – Services are intangible. We cannot touch or taste or feel them. E.g. one
cannot taste a doctor’s treatment, only can experience it.
2. Inconsistency – Services are provided depending upon the demands and expectations of
different customers as and when it is needed. Service providers should adjust their offer to
closely meet the requirements of the consumers. E.g. Service given by the mobile service
providers.
3. Inseparability – Services are produced and consumed at a time. But in case of goods it is
not so.
4. Inventory – (No Inventory) since there are not tangible components in services, they
cannot be stored for future use.
5. Involvement – It implies the participation of the customer in the service delivery process.
Differences between Services and Goods
Services
Goods
1. An activity or process A physical object
2. Intangible Tangible
3. Inconsistency –
different customers Consistency – All customers get
different demands standardized products.
4. Inseparability –
production and Separable – production and
consumption at a time. consumption are separated in
different times.
5. No inventory Inventory – can be kept in stock
Types of Services
, 1. Business Services – Business includes trade and aids to trade. Banking, Insurance,
Transportation, Warehousing etc. are aids to trade or service sectors of business. They provide
services to business enterprises for the conduct of their activities.
2. Social Services – Services rendered voluntarily to achieve certain social goals are called
social services. They are meant for improving the standard of living of weaker section of
society or providing education, healthcare etc.
3. Personal Services – these types of services differ depending upon the tastes and
preferences of customers. E.g. tourism, recreation, resorts etc.
Business Services
I. BANKING
According to the Banking Regulations Act 1949, banking means “accepting for the
purpose of lending or investment of deposits of money from the public, repayable on
demand or otherwise and may be withdrawn by cheque, draft or otherwise”.
Types of BankS
1. Commercial Banks
2. Co-operative Banks
3. Specialized Banks
4. Central Bank
1. Commercial Banks – These are the institutions dealing in money and credit.
They are governed by Indian Banking Regulation Act 1949.
Types of Commercial Banks:- Commercial banks are classified on the basis of
their ownership.
a. Public Sector Banks: They are the banks which are owned and managed by the
government with a view to channelize bank credit in line with national priorities.
Government of India nationalized fourteen commercial banks in 1969 and another six
commercial banks in 1980.
b. Private Sector Banks: They are owned and managed by private parties. Even though
they are governed by the RBI, they are free to evolve their own policy decisions regarding
the banking operations. About to be 34 private sector banks are their in India like IDBI,
