Introduction to Service Management Short Answer Type Questions

Question 1.
Briefly explain the various forces that shape the service market.
Answer:
Growth in services sector can be seen in nearly all developing and developed countries across the globe. Infact, all the advanced economies are moving towards predominantly producing services. The factors which influence the growth of service sector in India are as follows –
(i) Demographic Factors:
The various demographic factors which influences the growth of service sectors in India are growth rate of population, scope for childcare centers, educational institutions, life expectancy etc.

(ii) Economic Factors:
Economic factors such as growth of corporate sector, stock market, economic liberalization, resource mobilization through capital market, change in the consumer purchasing power and spending pattern are responsible for the growth of the .service sector in the economy.

(iii) Political and legal factors:
Deregulation of the economy has opened many service industries in India. Similarly other factors such as infrastructural development, increased trade relationships between nations, etc. also influences the growth of service sector in India. Legal factor for example, Service Act also influence the growth of service sector in an economy.

(iv) Social Factors:
The various social factors which influence the growth of service sector in an economy are increase in single person household, smaller families, change in male-female working ratio, availability of time for travel and entertainment etc.

(v) Technological Factors:
Technological factors like developments in computer science, Information Technology influence the growth of service sector. Growth of service sector is directly related to the growth of technology in an economy.

(vi) Due to globalization of the business activity has made tremendous growth in world market due to when demand for services such as communication, transport and information services are increased.

(vii) Change in information technology has also contributed for the growth of service sectors. Many electronic instruments developed Which contributed services to customers and delighted them. Internet, multimedia and computer applications made business operation very easy. This had given scope for research and increased operation in service marketing.

(ix) Economic changes have given wide scope for the development of specialized services like advertising, education, personal care, health care services.

(x) Due to increase in working, child care services are increased because working women can’t take care of their children property. So they depend on organization like play home which are paid services.

(xi) Due to change in life style, income and behavior of the people, has given scope for development of tourism industry. During holidays people are ready to spend their time in other places which led to increase in tounsm industry which in turn increased other related services.

The above discussed were some of the most important factors which influences the growth of service sector in an economy. At present , India is becoming increasingly dependent on the service sector for their economic development and well being and this trend is like to continue in the coming futures.

Question 2.
Give a brief note on customer involvement in service processes.
Answer:
People Processing:
It is services which are directed at people’s bodies i.e., the customer physical presence is necessary to receive the desired benefits of such services, if the customers wants the benefit that a people processing service has to offer, they must be prepared to spend time and co-operate actively with the service operation.

Examples : Doctors treatment, hair dressing, passenger transportation etc., The output from these services can be examined by knowing whether the customer has reached his destination (in case of transportation of passengers) or now he is looking clean and having stylish hair cut (in case of hair dressing) etc.

(i) Possession Processing:
It involves services which are directed at Physical possession i.e., the object requiring processing must be present but the customer need not be. In this type of service, customers are less physically involved. The output in this case can be examined by knowing the how far the customer is satisfied with the solution he has received.

Example:
It includes lawn moving, cleaning services, repairs and maintenance, refueling, freight transportation etc.

(ii) Mental stimulus processing:
It involves services which are directed at people’s mind i.e., the customer must be mentally present where the service is rendered to receive the desired benefits of the service. If a customer wants to receive these services he must be ready to spend time.

Example:
It includes services such as advertising, arts and entertainment, education programmes, music concerns, voice telephone etc.

(iii) Information processing:
It involves services which are directed at intangible assets, i.e., the involvement of the customer to get the benefit of the service is either minimum or almost negligible. In this service process, only little direct involvement with the customer may be needed initially when the service is to be started, and even that can be undertaken remotely by mail, phone, internet etc:,

Example:
It includes, accounting services, banking, insurance, legal services, software consulting etc.

Question 3.
Discuss in detail “Targeting Customer”.
Answer:
Targeting customers means the process of identifying market segments, targeting one or more of these segments and developing services and marketing programs to suit each selected segments. In short, it the process of identifying the group of peoples at whom the organization wants to aim its organizational marketing efforts to achieve the goals of marketing.

The steps involved in targeting services are as follows:
(i) Identifying the basis for segmenting the market:
The first and the foremost step in targeting services is to identify the basis for segmenting the market. The common bases used for segmenting the market are geographical segmentation, demographic segmentation, psychographic segmentation, behavioural segmentation, use related segmentation etc.

(ii) Developing profiles of resulting segments:
This is the next step involved in targeting services. The relevant data which helps to differentiate one segment with the other should be collected and studied properly. It is very important for the service marketer to clearly understand how and whether the segment differ in their profile.

(iii) Developing measures for segment attractiveness:
The third step in the targeting services is to evaluate the segments in terms of their attractiveness. This evaluation can be done on the basis of segment size, segment growth, segment structure, company objectives and resources. The segment selected by the service marketer must be accessible to adds and other marketing programmes.

(iv) Selecting the target segments:
The fourth step in targeting services is to select the target segments that need to be served. The segment selected must be profitable and has the scope of further growth. The selection of target segment is generally done viewing the current and potential customers, relative power of buyers and supplier, number of substitute services available in market etc.

(v) Ensuring that the target segments are compatible:
This is the last and final step in targeting of customers. The service provides should ensure that the segments are compatible with each other as the services are often performed in the presence of customers. The above said steps which are involved in targeting of customers must be cautiously taken other wise any mistake or error may result in negative influence or result.

Question 4.
Discuss briefly the classification of services.
Answer:
The various classification of services are as follows –
(A) On the bases of Tangibility:

Completely Intangible.
Partially Intangible.

(B) On the basis of Inseparability:

Completely Inseparable
Partially separable

Marketable services
Unmarketable services

(D) On the basis of people orientation:

Complete people orientation services
Partially people orientation services
Complete Machine/self orientation services

(E) On the basis of importance of the service to the purchaser:

Important to the purchaser
Not important to the purchaser

(F) On the basis of Status of the service within the Total Product Offer:

High Status Services
Low status services

(G) On the basis of the pattern of service Delivery:

One – off transactions services,
Non one off transactions services

(H) On the basis of end user of the service proved:

Consumer Services
Business services
Producer services

(I) On the basis of Expertise:

Professional Services
Non professional services

(J) On the basis of Profit orientation:

Non Profit services
Profit Services

For explanation to all the different services mentioned –
(a) Business Services:
It refers to those services which are bought by a business from another business for its own use.
Example: Advertising agencies and printing.

(b) Producers Services:
It refers to those services which are bought by a business not for their consumption but in order that it can produce something else of economic benefits.
Example: Plant and machinery repair service and installation service.

(c) Consumers services:
It refers to those services which are provided for individuals,, who set up the services for their own enjoyment or benefit.
Example: Health care and Travel.

(d) Marketable Services:
It refers to those services which are provided for the public benefit or people and they are charged for it. It refers to the services which can be exchanged for money.
Example: Banking and Insurance.

(e) Unmarketable Services:
It refers to those services which are provided for the public or people and no attempt has been made to change users of the service.
Example: Use of local footpaths and childcare in private households.

(f) Professional Services:
Services which are provided by the professionals such as engineering, consultancy services etc are called professional services.

(g) IIT, IISc, IIM and XLRI:

IIT = Indian institute of Technology
IISc = Indian Institute Of Science
HM = Indian Institute of Management
XLRI = Xavier Labour Reliance Institute

(h) Big retailers in India:
They are –

The Food World
Life Style
Fab Mall
Forum

IT:
IT can be defined as a convergence of various information based, broadcast and mass media communication technologies.

Non-professional services:
They are –

Babysitting
Catering

Question 5.
State the reason for growth of service sector.
Answer:
Following are the reason for growth of service sector
(a) Economic reason:
Fast economic growth in the world market due to globalization of business is one of the reason for service development, globalization of business activity has created greater demand for services such as communication transport and information sectors. Information’s technology has also will booted transport and information sectors. Information’s for the growth of service sector. Many number of electronic have also appeared in the information field. Therefore economic scope for the development of specialized services and this marketing in every economy.

(b) Political reason:
In development of a country made them to give scope for the creation of huge intra structure and in turn creating a great demand for legal and transport services. Even the banking and financial services are also assuming the new dimension in the process and are creating more employment opportunities.

(c) Demographic changes:
Demographic changes are also providing scope for expansion of some service sectors raise in the standard of living of the people in society has given scope „ for raising tourism. Hotel industry etc. Raise in life expectancy has expanded the retired population. The growing number of retired people has given scope for raising health care services, nursing, tourism, hospitality old age home. Etc.

(d) Social changes:
Now a days female population is increasing in the employment sector. Majority of the mailer have Working women. This has created

Increased income to the family.
Heavy workload for there working women.

They have work both tn the house and in the office. Many service areas have emerged to help these working women. Fast food service is one area which is growing very fast to help these women work face. Social changes also give scope for international tourism. Even the hospitality service (Hotels) are also in the growing stage.

Change in the level of income, and quality of thinking facilitated for growth of service sector specialized services like advertising recruitment transport computer services, catering training the employees have general recognition and every business house is looking for such services to professionalise their business operations.

Question 6.
Explain types of services.
Answer:
(a) Marketable and unmarketable services:
It means some services are charged and they are called as marketable services eg Railway postal service etc. and some services are not changed by government it gives free service to poor people had it is called as unmarketable service.

(b) Produces services and consumer services:
Consumer services are for enjoyment and producer services add value to the product like door to door delivery of goods.

(c) The magnitude of service in the product:
Intangible aspects are more and tangible product is negligent in some kind of service eg. Teaching, consulting etc., But is independent service. Service is added to product to make product more attractive eg. Interior decoration of house, Hotels, business house etc. Financial family is also a kind of service given by businessman by giving credit family to customer in purchase of costly product like care, scooter etc.

(d) Degree of consumer participation:
Certain services require direct participation of consumers to receive services eg. Beauty parlor, doctor service etc. in these case consumer involvement is more. In some other services consumers involvement is very less eg. Colour wash to house.

(e) Mode of supply:
Some services are required to customer continuously eg. Communication service. Some other services are required and obtained by customers casually. Example – Services of music, singer etc.

(f) Machine oriented and person oriented service:
Some services are people oriented eg. Doctor service, teacher service and some other services are machine oriented like telephone, Xerox, Computer service etc.

Question 7.
What are the difference between goods and service.
Answer:

Goods are tangible in nature and services are intangible in nature.
Goods is an object a device a thing but service is a deed a performance an effort.
Goods are directly received by the consumer or by others but services enjoyed by the person individually.
Goods are tangible asset on which buyer can exercise the ownership but services are intangible in nature on which seller cannot enjoy ownership for a long period time.
Quality of goods is not vary from one product to another.
Quality of goods is not vary from one product to another. But quality of service may very depending on who provides it as well as when and. how it is provided.
Quality of goods can be determined prior to purchasing a product, such as colour style shape taste etc. But it is difficult to evaluate in advance the quality of service.

Question 8.
Explain the steps involved in service delivery process or system.
Answer:
Serve delivery system includes several activities these activities are explained below:
(a) Service strategy:
It is the in step in designing a successful delivery process specific service delivery strategy is developed by identifying and understanding the specific needs of the customers. In this stage target market can be identified to determine consumer expectation from a particular type of service. It is necessary to service provider to understand the exact-needs of target customers.

(b) Service concept:
It is me stop of actual design of the service delivery process this service concept connects the. link Between the service concept describes about customer requirements. It also focus on identifying the needs of customers.

Service concept encompasses on four elements they are

The service operation
The service experience
The service outcome
The value of service

(c) Service blue printing:
Service blue print is an operational planning to that provides guidance. on how a service will be provided specifying the physical evidence staif action and support system needed to deliver the service across the different channels service blueprints are process flow charts that are used for designing Service operations.

(d) Supporting process:

Technology used to delivery the intended service
Defining self servicing facilities of any (like ATM)
Work force configuration
Expected output quality of the service
Policies and procedures of the company
Hours of operations
Organizational structure

Question 9.
Give the meaning of service blue print? What are the importance of blueprinting?
Answer:
Service flow chart is a effective tool of depicting the different steps required in the completion of service process. Service blue prints help in identifying toe points in the service process.

It is one of the important powerful tool for creating competitive advantage in service.
It is a detail description of people process and system involved in delivering a service.
It provides a way to break the service into logical components anti to depict the steps in processes.
The objective of service blueprint is to enhance service quality and customers satisfaction.

Question 10.
What are the key concepts of blue printing?
Answer:
There are five components in a service blue print there are –
(a) Customer action:
Line of external interaction. It includes all the activities and steps taken by a customer during the service delivery process. Customers actions are the central includes steps, choices, activities and interactions that customer performs in the process of purchasing consuming and evaluating the service.

(b) Line of visibility:
It includes visible actions taken by employees. These actions are the face to face contacts with the customers during the service delivery during this period customer judge the quality of service rendered by the organisations and make decisions regarding future purchases.

(c) Line of internal interaction:
It is the back stage action taken by the employees that are not visible to the customers. Service blue print includes backstage invisible actions of employees – that import on customers backstage employee services are separated from on stage service delivery by the time of visibility in a hotel visible actions are food supplies and invisible actions are preparing a quality meal.

(d) Support Service:
It is the fourth component of service blue print. Support service processes are all the activities contributed by employees with in the company who do not contact customers.

(e) Physical evidence:
Physical evidence of service delivery at each point of customers contact is recorded at the top of the blue print.

Question 11.
Explain the steps in developing service blueprint.
Answer:
Following are the steps involved in building a service blue print.
(a) Identify the process to be blue printed:
In this stage the company should clearly mention the service process that should be blue printed. Company should have a clear idea of the objective behind bule printing after the identification of the service process the others a requirements are possible to arrange neatly.

(b) Identifying the customers segment is a vital aspect of service blue printing. The contact of the service delivery system and provision of facilities are largely dependent on the selected customers segment.

(c) Map the process from the customer’s point of view:
Service blue print aims at providing maximum customer convenience and satisfaction. This step is taken as main point in designing process

(d) Map the contact employee actions outstage and back stage:
Service designs process describe in detail the duties and responsibilities for all the individuals involved in the service delivery system. There must not be, any ambiguity in the statement of roles and responsibilities.

(e) Link customer and contact persons activities to need support functions: Each activity performed is expected to produce some value to the customer if any activity performed is not adding any value to the customers it will be treated as unnecessary and can be eliminated from the service design. In the place of unnecessary activities improved activities can be introduced.

(f) Add evidence of service at each customer action step: It is necessary to illustrate to the customers what he sees and receives at each stage of customers encounters and experience. This can be done through photos and videos. This helps customers in knowing the expected service and the service received by him.