chapter1 609
TRANSCRIPT
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Services Dominate Economy in Most Nations Most New Jobs are Generated by Services
Fastest Growth Expected in Knowledge-Based
Industries Many New Jobs are Well-Paid Positions RequiringGood Educational Qualifications
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Source : The World Factbook, Central Intelligence Agency
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Its current participation in export
(service) accounts for 2.45% in the world
trade activities.
Contribution of service sector in
countrysGDP is 54.6%.
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Businesses, government agencies, nonprofitorganizations.
Organized and unorganized sector.
Companies of any size--from huge global
corporations to local small businesses
Limited companies to individual runorganizations/set up.
High technology content to very low technologyinter- phase organizations.
Jobs range from high-paid professionals andtechnicians to minimum daily wage earners.
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Sub sectors GDP contribution
1. Trade and hotels, tourism services 14.3 %
2.Transpot, storage and communication. 16.0%
3. Banking, insurance and other financial services 9.3%
4. Public administration & defense 7%
5. IT , ITES and other services 8%
TOTAL 54.60%
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o
Tourism and Travelso Hospitality( Hotels, Motels , Resorts).
o Catering And Restaurant Industry.
o Consultancy Services.
o Insurance .
o Health care and Hospital management.o Housing and Construction Industry.
o Burial permission and dispose off agencies.
o Communication.
o Entertainment.
o Banking Services.
o Transportation and Logistics.
o Theme parks.
o Leisure activities industry.
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o Legal Agencies.
o Maintenance Services.
o Information Technology Services.
o Research and Development.
o Investment Advisers.
o Accounting and Tax Services.
o Electricity, Gas and Sanitary Services.
o Real Estates.
o Personnel Services.o Social Organizations.
o Other Service Providers.
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Financial services banks, insurance .
Telecommunications
Health services
Tourism
Travel & transport
Information technology
Retailing
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Government
Policies
Business
Trends
Social
Changes
Advances in
IT
Globalization
Innovation in service products & delivery systems, stimulated by better technology
Customers have more choices and exercise more power
Success hinges on:
Understanding customers and competitors
Viable business models
Creation of value for customers and firm
New markets and product categories
Increase in demand for services
More intense competition
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Government
Policies
Business
Trends
Social
Changes
Advances in
IT
Globalization
Changes in regulations
Privatization
New rules to protect customers,
employees, and the environment
New agreement on trade in services
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Government
Policies
Business
Trends
Social
Changes
Advances in
IT
Globalization
Rising consumer expectations
More affluence
Personal Outsourcing
Increased desire for buying experiences vs.things
Rising consumer ownership of high tech
equipment
Easier access to more information
Immigration
Growing but aging population
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Government
Policies
Business
Trends
Social
Changes
Advances in
IT
Globalization
Push to increase shareholder value
Emphasis on productivity and cost savings
Manufacturers add value through service and
sell services
More strategic alliances
Focus on quality and customer satisfaction
Growth of franchising
Marketing emphasis by nonprofits
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Government
Policies
Business
Trends
Social
Changes
Advances in
IT
Globalization
Growth of Internet
Greater bandwidth
Compact mobile equipment
Wireless networking
Faster, more powerful software
Digitization of text, graphics, audio, video
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Government
Policies
Business
Trends
Social
Changes
Advances in
IT
Globalization
More companies operating on transnational
basis
Increased international travel
International mergers and alliances
Offshoringof customer services
Foreign competitors invade domestic markets
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Services involve a form of rental, offering
benefits without transfer of ownership
Services are an act or performance offered byone party to another. (Performances are
intangible, but may involve use of physicalproducts.)
Services are an economic activity that does notresult in ownership.
A process that creates benefits by facilitating adesired change in customers themselves, physicalpossessions or intangible assets.
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Five broad categories within non-ownershipframework:
1. Rented goods services
2. Defined space and place rentals
3. Labor and expertise rentals
4. Access to shared physical environments
5. Systems and networks: access and usage
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Based on differences in nature of service act(tangible/intangible) and who or what is directrecipient of service (people/possessions), there
are four categories of services:
People processing Possession processing Mental stimulus processing
Information processing
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`
People Processing
Customers must:
physically enter the service
factory
co-operate actively with
the service operation
Managers should think
about process and output
from customers perspective
to identify benefits created
and non-financial costs:
- Time, mental, physical
effort
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Possession Processing
Customers are less
physically involved
compared to people
processing services
Involvement is limited
Production and
consumption are separable
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Mental StimulusProcessing
Ethical standards required
when customers who depend
on such services canpotentially be manipulated by
suppliers
Physical presence of
recipients not required
Core content of services is
information-based
Can be inventoried
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Information Processing
Information is the most
intangible form of service
output,
But may be transformed
into enduring forms of
service output
Line between information
processing and mentalstimulus processing may be
blurred.
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