Business services are specialized support services that provide value to internal and external customers. They are a continuum between a commodity and a service. This article examines the concept of business services, including its characteristics, definition, and types. It will also help you define the differences between a business service and a commodity.
They provide value to internal or external customers
Business services are the services provided by an organization to internal or external customers. The internal customers are the employees who require assistance and support. The external customers are those who purchase products and services from the organization. They are known as vendors or sellers. Internal customers include unit, division, and individual employees of the company. These employees may also request support from various other units within the company.
The value of business services can be measured in many ways. These services include the ability to provide information and reports to external customers. For example, a business that provides healthcare services may want to provide patient care or health information. An external customer may require additional services that internal customers may not require.
They are intangible
Business services are intangible in nature, and therefore cannot be seen, touched, or smelled. This makes them difficult to market and sell, as customers cannot see, touch, or smell them. However, this does not mean that people cannot still receive the benefits of intangible business services. Quality services are still crucial to any business’s success.
When marketing business services, you should emphasize the results the customer will get after working with you. For example, if your business provides career counseling, you should emphasize the positive effects of finding the ideal job. This could mean a stable paycheck or an opportunity to enjoy meaningful work. By focusing on the results, these intangible items become more real to customers.
They are a continuum between service and commodity
A business service can be categorized in two ways: as a commodity or as a service. A commodity is a product that can be touched, felt, or seen, while a service can be intangible. The distinction between a commodity and a service is important because it helps the marketer recognize opportunities that may be missing otherwise.
Commodities are similar to products in many ways, but there are several significant differences. One important difference is that commodities are fungible. That means they can be purchased and sold anywhere in the world. In contrast, services are not fungible and can be sold for various prices. In addition, the quality of a service may vary from firm to firm. For example, two PS firms that deliver the same project scope may charge different amounts for the work they produce.