What are business services? In the end, they are a continuum between a commodity and a service. These services require a common home and a limited set of transactions. In essence, they deliver value to consumers. This article explores some of the basic features of a service and how it is defined. Let’s take a closer look at business services. Despite their diverse nature, they all have one thing in common: they deliver value.
Business services are a continuum between service and commodity
Businesses can be classified as either services or products. On one end of the continuum, you can find pure services, which are intangible but deliver tangible benefits. On the other, you’ll find core goods, which are physical objects that deliver a service when used. This distinction is important because the two can be complementary or antagonistic, depending on the nature of the market. Fortunately, most businesses provide both.
Despite this distinction, many products fall somewhere in between. For instance, restaurants sell physical goods but also provide services in the form of ambiance, cooking, setting, and clearing the table. Even utilities, which typically deliver physical goods, are treated as services. This model allows companies to differentiate between these two types of products without compromising their quality. Businesses offering both types of products may be successful, depending on the type of offerings they offer and how they are set up.
They are a means of delivering value to consumers
The concept of service is central to digital transformation. Services are defined as an arrangement of resources that facilitates the attainment of desired outcomes without the ownership of specific costs and risks. Consumers can derive value from any service by interacting with the business. A service can be classified according to its capabilities, availability, and pricing. To understand the different types of services, you must understand the underlying economics of service provision.