Servicemanagement University Of Calicut-Books Pdf

SERVICEMANAGEMENT University of Calicut
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School of Distance Education,UNIVERSITY OF CALICUT. SCHOOL OF DISTANCE EDUCATION,STUDY MATERIAL,Marketing Specialisation. SERVICE MANAGEMENT,Prepared by,Mrs Ahsanath MK,Assistant Professor. Department of Commerce,Sullamussalam Science College. Scrutinised by,Dr K Venugopalan,Associate Professor.
Department of Commerce,Govt College Madappally,Layout Settings. Computer Section SDE,Service Management Page 2,School of Distance Education. Introduction, The economic activities have been divided into mainly three classes They are. Primary Secondary and Tertiary Primary activities includes agriculture fishing and. forestry Secondary activities includes industry manufacturing and construction Tertiary. activities includes services Up to the industrial revolution agriculture was dominated in. economic sector After the industrial revolution industry started to dominate the economy. and presently service sector dominate the whole economy of world The economic growth is. not equal in all countries In many Asian and African countries agriculture is still the. dominant factor of their economies At the same time there are some countries with industry. as the dominant factor of their economies, According to the economic point of view a service is an intangible commodity That is. services are an example of intangible economic goods A service is any activity or benefit. that one party can offer to another that is essentially intangible and does not result in the. ownership of anything Its production may or may not be tied to physical product. Education service,Insurance service,Banking service.
Film Theater,Medical service,Telecommunication service. Legal service,The Service Economy, Presently the world economy is increasingly characterized as a service economy This. is primarily due to the increasing importance and share of the service sector in the economies. of most developed and developing countries In fact the growth of the service sector has long. been considered as an indicator of a country s economic progress Economic history tells us. that all developing nations have invariably experienced a shift from agriculture to industry. and then to the service sector as the mainstay of the economy This shift has also brought. about a change in the definition of goods and services themselves. The service sector is going through revolutionary change which dramatically affects. the way in which we live and work New services are continually being launched to satisfy. our existing needs and to meet needs that we did not even know we had Nearly fifty years. ago when the first electronic file sharing system was created few people likely anticipated. the future demand for online banking website hosting or email providers Today many of us. feel we can t do without them Similar transformations are occurring in business to business. Service Management Page 3,School of Distance Education. The Role of the Service Economy in Development, As of 2008 services constituted over 50 of GDP in low income countries As their. economies continue to develop the importance of the service sector continues to grow For. instance services accounted for 47 of economic growth in sub Saharan Africa over the. period 2000 2005 while industry only contributed 37 and agriculture only 16 in that. same period This means that recent economic growth in Africa relied as much on services as. on natural resources or textiles despite many of those countries benefiting from trade. preferences in primary and secondary goods, As a result of these changes people are leaving the agricultural sector to find work in.
the service economy This job creation is particularly useful as often it provides employment. for unskilled workers in the tourism and retail sectors which benefits the poor and represents. an overall net increase in employment The service economy in developing countries is most. often made up of the following industries financial services tourism distribution health and. The following table says the importance of service sector in the GDP of that counties. Sectoral Distribution of GDP in 2002 Estimates,Country Service Industry Agriculture. USA 80 18 2,Denmark 71 26 3,France 71 26 3,Germany 68 31 1. Switzerland 64 34 2,Russia 59 6 34 6 5 8,South Korea 54 41 6 4 4. India 50 25 25,Nigeria 35 20 45, Service sector dominates the economies of other developed nations as well As. countries develop the role of agriculture in the economy declines and that of services rises. Highly developed countries all have more than 50 of GDP and employment derived from. services A particular characteristic of the development of service employment over time is. that it is less sensitive to business cycle fluctuations than other types of employment The. service sector comprises 80 of US employment up from 55 in 1950 Most of the absolute. growth in number of jobs in US in recent years is in service sector According to University. of Michigan study a 113 cut in global barriers to trade in services would increase US annual. income by 150 billion 2 100 per American family of four Total elimination of barriers. in services would raise US annual income gain by over 450 billion 6 380 per family of. four Apart from US leaders of major global service industry associations representing the. EU Australia Hong Kong and Japan called for urgent progress in the multilateral. liberalization of trade in services,Service Management Page 4.
School of Distance Education,Service Sector in India. The service sector is also assuming increasing importance in Indian economy In line. with the global trend the services sector in India is growing rapidly In 2002 India s service. exports are recorded 20 70 billion as against 4 60 bn in 1990 a growth of 350. World Service Exports and India s Share,Year Total World India s service India s Share in. Service Exports exports bn world service,bn exports. 1990 807 01 4 6 0 57,1991 844 83 4 9 0 58,1992 960 79 4 9 0 51. 1993 943 4 5 0 53,1994 1052 63 6 57,1995 1192 99 6 8 0 57.
1996 1250 7 0 56,1997 1313 43 8 8 0 67,1998 1321 43 11 1 0 84. 1999 1333 33 13 2 0 99,2000 1435 17 6 1 2,2001 1460 20 4 1 4. 2002 1540 20 7 1 3, The share of services in the country s GDP was 56 1 in 2002 03 RE up from the 5. 1 5 recorded in 1998 99 and 36 in 1980 81 In contrast the industrial sector s share in. GDP has declined from 25 38 per cent to 21 8 per cent in 1990 91 and 2002 03 respectively. The agricultural sector s share has fallen from 30 93 per cent to 22 1 per cent in the respective. years The growth in the services sector has averaged 8 5 per cent during the period 1994. 2000 Dr Manmohan Singh the then Union Finance Minister in his budget speech for the. year 1994 95 introduced the new concept of Service Tax The number of services being taxed. has increased from 3 in 1994 95 to 5 1 in 2002 03 The corresponding increase in revenues. from services tax has been from Rs 410 crores to 4 125 crores The details of service tax in. India have been given in Appendix at the end of this unit The rise in the service sector s. share in GDP marks a structural shift in the Indian economy and takes it closer to the. fundamentals of a developed economy If the service sector bypasses the industrial sector. economic growth can be distorted Service sector growth must be supported by proportionate. growth of the industrial sector otherwise the service sector grown will not be sustainable. It is true that in India the service sector s contribution in GDP has sharply risen and. that of industry has fallen But it is equally true that the industrial sector too has grown and. grown quite impressively through the 1990s except in 1998 99 Three times between 1993. 94 and 1998 99 industry surpassed the growth rate of GDP Thus the service sector has. grown at a higher rate than industry which too has grown more or less in tandem The rise of. the service sector therefore does not distort the economy. Service Management Page 5,School of Distance Education. Characteristics of services, Services have mainly five unique characteristics compared to goods In the marketing.
point of view these characteristics are very important because these characteristics create. several unique marketing problems,Characteristics,1 Intangibility. 2 Inseparability,3 Heterogeneity,4 Perishability and. 5 Ownership,1 Intangibility, Intangibility is the primary characteristics that distinguish services from goods ie the. quality of not being able to touch taste see smell or hear Services such as education. insurance medical etc cannot be physically possessed like tangible goods. Intangible services are more difficult for consumers to evaluate than tangible goods. When you buy bath soap you can see it feel it touch it smell it and use it to check its. effectiveness in cleaning your body But if you pay fee for a course in an education. institution you are paying for the benefit of deriving knowledge and education which is. delivered to you by teacher community In contrast to the bath soap where you can. immediately check its benefits there is no way in the case of teachers Because teaching is an. intangible service,So a service cannot be touched,Precise standardization is not possible. there is no ownership,a service cannot be patented.
There is no inventories of service,2 Inseparability. Another characteristic of services is the inseparability or indivisible nature of. production and consumption In most cases a service cannot be separated from a person or a. firm providing it A service is provided by a person who possesses a particular skill singer. by using a equipment to handle a tangible product dry cleaning or by allowing to access t or. use of physical infrastructure hotel A plumber has to be physically present to provide the. service Goods can be produced in the factory stocked and sold when order is placed But. since service is inseparable both production and consumption occurs simultaneously. Service Management Page 6,School of Distance Education. 3 Heterogeneity, Most of the services are rendered by people and people are not always consistent in. their performance This inconsistency or variation in performance is referred to as the. heterogeneity of services Performance may vary from one individual to another individual or. from one organisation to another organisation or even performance of a person in day time. may not be same in night time In short the human element is very much involve in providing. and rendering services and this makes standardization a very difficult task. 4 Perishability, Services cannot be stored and are perishable Due to any reason a few seats remain. empty on a train or a theatre cancels a particular live show of a drama that particular service. opportunity is lost forever Restaurants are now charging for reservations which are not. utilized Charges may be made for missed appointments with consultants doctors and some. education institutions levy the fee as students discontinue the course because of lapsing the. 5 Ownership, When you buy a product you will become the owner of that product be it a car bus.
bike pen computer or shirt But in the case of service you may pay for its use not its. Classification of services, Services are classified into two groups ie services in consumer markets and services in. industrial market,1 Services in consumer markets,The following services come under this category. A Food services, Food services are offered by hotels restaurants and catering services Food is supplied in. restaurants as well as delivered to customers residence Catering agents supply food for. occasions like wedding engagements birthday conference etc. b Boarding and lodging services, These services are provided by hotels and lodges to the people who travel to distant places. Growing tourism has contributed to remarkable growth in boarding and lodging services. c Personal care services, These are the services provided to meet the personal care needs of customers like health.
appearance physical fitness etc personal care service include service offered by beauty. parlors barbershops gymnasiums dry cleaners hospitals etc. Service Management Page 7,School of Distance Education. d Entertainment service, These services include cinema drama dance music amusement park cable TV etc There is. an increasing tendency among the people to send more money on entertainment services. e Transport services, These include the services provided by railways road transporting facilities air transport. such as flights and helicopters and water transporting services such as ships and boats. e Automobile services, These are services provided to the owners of automobile vehicles for their repair and. maintenance They are provided by units called service stations. f Communication services, These are services provided to help people to exchange4 information These services include.
telephone telegraph e mail telex fax etc mobile phone and internet has revelutionalised the. field of information communication,g Education service. Education service provide coaching to students in various desceplines and to prepare them. for various examinations These services are provided by schools colleges and universities. School of Distance Education Service Management Page 6 Characteristics of services Services have mainly five unique characteristics compared to goods

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