Which of the following statements about services is correct?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Services are intangible activities or benefits which are offered for sale.
Option (1) Services are consumer products on which buyers devote considerable time to compare at several stores. — Incorrect. Comparing at several stores before buying is the meaning of shopping products, such as clothes and shoes.
Option (2) Services are consumer products which are normally consumed in one or few uses. — Incorrect. Products used up in one or a few uses are non-durable products, such as toothpaste and soap.
Option (3) Services are intangible activities or benefits which are offered for sale. — Correct. Services are intangible activities or benefits offered for sale. They cannot be touched, for example dry cleaning, hair cutting and a doctor’s advice.
Option (4) Services are short lasting business inputs that facilitate managing the finished product. — Incorrect. Short lasting inputs that help in managing the finished product are supplies and business services, a class of industrial products.
NCERT (2026-27 Edition): “2. Shopping Products: Shopping products are those consumer goods where buyers devote considerable time, to compare the quality, price, style, suitability, etc., at several stores, before making final purchase. Some of the examples of shopping products are clothes, shoes, jewellery, furniture, radio, television, etc.” “1. Non-durable Products: The consumer products which are normally consumed in one or few uses are called non-durable products. For example, products like toothpaste, detergents, bathing soap and stationary products etc. …” “3. Services: By services we mean those intangible activities, benefits which are offered for sale, e.g., dry cleaning, watch repairs, hair cutting, postal services, services offered by a doctor, an architect and a lawyer.” “(iii) Supplies and Business Services: These are short lasting goods and services that facilitate developing or managing the finished product. …” |