Goods & Services

Helpful for Commerce Students

1. FUNDAMENTALS OF BUSINESS ECONOMICS { CC 103 } B.COM SEM -I

2. UNIT-I BASIC CONCEPTS AND DEFINITIONS

3. MEANING OF GOODS In Economics, all those things that have value and satisfy human wants are known as goods. Goods refer to the tangible consumable products, articles, commodities that are offered by the companies to the customers in exchange for money. They are the items that have physical characteristics, i.e. shape, appearance, size, weight, etc.

4. TYPES OF GOODS (1) Free & Economic Goods (2) Consumer’s Goods & Producer Goods Perishable Durable (3) Private & Public Goods (4)Transferable & Non transferable Goods

5. MEANING OF SERVICES Services are the intangible economic product that is provided by a person on the other person’s demand. It is an activity carried out for someone else.

6. DIFFERENCE BETWEEN GOODS & SERVICES (1) By nature Goods are tangible items i.e. they can be seen or touched whereas services are intangible items. (2) Transfer of ownership When the buyer purchases the goods by paying the consideration, the ownership of goods moves from the seller to the buyer. Conversely, the ownership of services is non-transferable. (3) Evaluation The evaluation of services is difficult because every service provider has a different approach of carrying out services, so it is hard to judge whose services are better than the other as compared to goods. (4) Return & Exchange Goods can be returned to or exchanged with the seller, but it is not possible to return or exchange services, once they are provided.

7. DIFFERENCE BETWEEN GOODS & SERVICES (5) Storage Goods can be stored for future use, but services are time bound, i.e. if not availed in the given time, then it cannot be stored. (6) Packaging Goods can be packed because of its physical shape while services have no physical shape making it difficult to pack. (7) Intermediaries Things need moderation. E.g. There are many intermediaries between the manufacturer and the customer while in the service the customer has to have direct contact with the service provider. (8) Standardization It is possible to determine the standardization of goods while it is difficult to determine the standardization of services.

8. THANK YOU Prepared by Dr.Jagdish Maheshwari Assistant Professor, Tolani Institute of Commerce,Adipur