IIMM/DH/02/2006/8154, Services Management
Q1. (a) What is the importance of ‘Services’ in the society? Define services and explain characteristics of services.
They touch the life of every person in the country. Each economy – developing, mature, and developed – has itswelfare based upon effective delivery and performance of services. They can be emergency, communication,food, health and education – to name a few. Prosperity of the nation comprises of economical advances, its socialstructure, and its environment concerns; all depends upon management of services to its citizens.A
is the non-material equivalent of agood.Service provision has been defined as an economic activitythat does not result inownershipand is claimed to be a process that creates benefits by facilitating either a changeincustomers, a change in their physicalpossessions, or a change in their intangibleassets.
By composing and orchestrating the appropriate level of resources, skill, ingenuity, andexperiencefor effecting
specific benefits for service consumers, service providers participate in aneconomywithout the restrictions of carryingstock (inventory) or the need to concern themselves with bulky raw materials. On the other hand, their investmentin expertise does require consistent service marketing and upgrading in the face of competitionwhich
has equally few physical restrictions.Providers of services make up theTertiary sector of the economy. The tertiary sector of economy(also known as
the service sector or the service industry) is one of the three economic sectors, the others being thesecondary sector (approximatelymanufacturing) and the primary sector (extraction such asmining, agricultureandfishing).
The general definition of the tertiary sector is producing a service instead of just an end product, in the case of thesecondary sector. Sometimes an additional sector, the "quaternary sector ", is defined for the sharing of information (which normally belongs to the tertiary sector)The tertiary sector is defined by exclusion of the two other sectors. Services are defined in conventional economicliterature as "intangible goods".The tertiary sector of economy involves the provision of services to businesses as well as final consumers.Services may involve thetransport,distributionand sale of goods from producer to a consumer as may happen in
wholesalingandretailing,or may involve the provision of a service, such as in pest controlor entertainment.
Goods may be transformed in the process of providing a service, as happens in therestaurantindustry or inequipment repair. However, the focus is on people interacting with people and serving the customer rather thantransforming physical goods.The generic clear-cut, complete and concise definition of the service term reads as follows:A service is a set of singular and perishable benefits
delivered from the accountable service provider, mostly in close coactions with his service suppliers,
generated by functions of technical systems and/or by distinct activities of individuals, respectively,
commissioned according to the needs of his service consumers by the service customer from theaccountable service provider,
rendered individually to an authorized service consumer at his/her dedicated request,
And, finally, consumed and utilized by the requesting service consumer for executing and/or supportinghis/her day-to-day business tasks or private activities.Services can be paraphrased in terms of their generic