Service Sector Management Long Answer Type Questions

Question 1.
Discuss briefly the economic and social benefits of Tourism.
Answer:
Tourism is one of the major service industries in the world today. It plays an important role in the economy of most countries of the world and India is no exception. Because of the extreme importance of tourism industry it has been given the status of export industry by planning commission and ministry of tourism. Some of the economic benefits of tourism are:
(i) Helps in the economic development of a country:
Tourism generates flow of money. Tourism is the pivot of the vehicle for economic development. Tourism acts as a valuable attribute to most developing nations in their search for means by which maximum rates of economic growth is attained.

(ii) Increase in National Income:
Tourism stimulates the production sectors and brings an automatic increase in national consumption. Tourism demand for services and consumer goods . encourages investment. Investment in turn increases the national income of the country.

(iii) Redistribution of National Income:
Concentration of wealth in Fewer hands is one of the major problems in the development of an economy. Tourism has created new opportunities and areas where money can be spent. Thus, tourism helps in distribution of money is a wide area and helps in the redistribution of national income.

(iv) International trade:
International tourism promotes international trade. It also helps in earning foreign exchange from visiting travelers.

(v) Creates employment opportunities:
Tourism is a both labour and capital intensive industry. Because of its labour intensive nature it provides employment to people several times more than normal manufacturing industries. At present, 17 million peoples are employed in this industry and related services.

(vi) Growth of Retail Trade:
Tourism helps in the growth of retail trade. It encourages a high standard of living for the whole community. It helps in the growth of retail trade activities like jewellery, hand bags, cosmetic and perfumes, clothes, shoes, electronic items etc.

(vii) Development of transport system:
Tourism industry completely depends on the transport facilities available in the country. Good transport system is necessary for the development of tourism industry.

Some of the important social benefits of tourism are:
(a) Increases standard of living:
Tourisms industry helps in increasing the standard of living. Tourism industry helps in redistribution of money and increases employment opportunities, which in turn increases the standard of living of the peoples living in a particular country.

(b) Promotes international understanding:
Growth the tourism industry helps in promoting and maintaing a good international understanding with the other countries. It helps in wiping out the ravages wrecked by one military holocast and softening rivalries between the warring nations.

(c) Transfer of culture:
Tourism promotes transferring of culture from one part of the country to another and from one nation to another. It helps the people in acquiring good ideas and concept from other cultures.

(d) Helps in Regional Growth:
Tourism generates economic growth in region of a country. Which are economically backward. It reduces regional imbalance within a country. It brings employment and supplementary income to the people of the less developed regions of a country.

(e) Acts as a passport to peace:
Tourism helps in promoting and maintaining peace, good understanding and harmony in the world. It contributes to an open world and free movement of culture and commerce for the benefits of all mankind.

Question 2.
Critically analyse the dependency of tourism and hospitality services in our economy.
Answer:
Tourism is one of the major services industries in the world today. It plays an important role in the economy of most countries of the world and India is no exception. Because of the extreme importance of tourism industry it has been given the status of ‘export industry’ by planning commission and ministry of tourism. However the significance and impact of tourism can be understood from the following points:

  • It has created opportunities for large number of people directly or indirectly. At present, 17 million people are employed in this industry and related services.
  • It is a promising foreign exchange earner of any country.
  • It generates earnings for hoteliers, travel agents, taxi-drivers, craftsman, transporter, tourist guides, textile owners etc.,
  • It helps in converting an impoverish place or state into a thriving tourist center.
  • This industry embraces the growth of other industries and sectors in the economy.
  • It helps in the spreading of our rich culture and heritage to other countries.
  • Large number of rural artisans and craftsman are benefited out of tourism industry.

Tourism is one of the major service industries in the world today. In India, it plays an important role in the economic develop of the country. At present, about 17 millions of people are employed in this industry. The major factors influencing the growth of tourism are –
(i) Greater affluence and more leisure time: Because of the growth of technology now a days people have more leisure time, as those works are done by machines.

(ii) Better, speedier, safer and cheap air transport facilities: Again, because of the development of science and technology the air transport has become better, speedier, safer and cheaper. This also encourage tourism industry.

(iii) Enormous growth in international business:
Increase in international business has not only resulted in movement of goods and services from one country to another but as well as people also.

(iv) More aggressive tourism publicity:
Continuous and aggressive publicity of tourism has also influenced the growth of tourism industry.

(v) Development of packaged tours:
Since package tours provides lot of facilities to the tourist regarding accommodation, fooding air tickets etc., it has encouraged tourism industry.

(vi) Visit and tours have becomed as status symbol:
To some people tourism serves as status symbol. They view that if they visit a number of tourist places, their status in the society will increase.

Question 3.
Describe the economic significance of tourism.
Answer:
Tourism is one of the major services industries in the world today. It plays an important role in the economy of most countries of the world and India is no exception. Because of the extreme importance of tourism industry it has been given the status of ‘export industry’ by planning commission and ministry of tourism.

However the significance and impact of tourism can be understood from the following points:

  • It has created opportunities for large numbers of people directly or indirectly. At present, 17 million people are employed in this industry and related services.
  • It is a promising foreign exchange earner of any country.
  • It generates earnings for hoteliers, travel agents, taxi-drivers, craftsman, transporter, tourist guides, textile owners etc.
  • It helps in converting an impoverish place or state into a thriving tourist center.
  • This industry embraces the growth of other industries and sectors in the economy.
  • It helps in the spreading of our rich culture and heritage to other countries.
  • Large number of rural artisans and craftsman are benefited out of tourism industry.

(a) Employment generations:
Tourism has created direct and indirect employment to a large number of people. In India 17 million people are employed in tourism and its related industries.

(b) Generating earnings;
It creates earnings for hoteliers, travel agents, tax-drivers, craftsman, transponters, airlines, tourist guides, shoemakers, textile owners etc., some Rs. 1,000 crore wroth of handicrafts to are sold every year to tourist in India.

(c) Benefits to artisans and craftsman:
Large number of rural artisans, craftsmen, have benefited from tourism industry from purchasing of their materials from foreign tourist.

(d) Converting backward areas into forward areas :
Tourism can convert impoverish place or state into tourist centres. For ex. Mysore, Kerala, Hampi, Goa and the like.

(e) Foreign exchange earner:
Tourism industry earns a foreign exchange which is a great income to the nation also example. Thailand in Asia earns great income only from tourism industry. In lndia tourism industry earns a record foreign exchange of Rs. 15,000 crore per annum which is about 2% of GPP.

(f) Variants of tourism:
This industry has no many variants such as eco-tourism, health tourism, coastal tourism, farm tourism adventure tourism and so as. Kerala which is known as gods own country earning a main foreign exchange in India.

(g) Benefits to tour operations:
Tourism industry is a labour intensive industry. For example: SOTG, ITDC and State Tourism development, corporation have provided business and employment to millions of people.

(h) Growth of other sectors:
It supports the growth of other industries. Example: In India Hospitality, health care, Insurance, Banking, Garments, Textiles, Handicraft, Horticulture, IT, ITES, BPO, BT, education 6 other sectors – growth is influenced by tourism industry.

Question 4.
What are the factors that influence the growth and development of tourism in India.
Answer:
Tourism is one of the major service industries in the world today. In India, it plays an important role in the economic develop of the country. At present, about 17 millions of people are employed in this industry. The major factors influencing the growth of tourism are:
(i) Greater affluence and more leisure time:
Because of the growth of technology now a days people have more leisure time, as those works are done by machines.

(ii) Better, speedier, safer and cheap air transport facilities:
Again, because of the development of science and technology the air transport has become better, speedier, safer and cheaper. This also encourage tourism industry.

(iii) Enormous growth in international business:
Increase in international business has not only resulted in movement of goods and services from one country to another but as well as people also.

(iv) More aggressive tourism publicity:
Continuous and aggressive publicity of tourism has also influenced the growth of tourism industry.

(v) Development of packaged tours:
Since package tours provides lot of facilities to the tourist regarding accommodation, fooding air tickets etc., it has encouraged tourism industry.

(vi) Visit and tours have become a status symbol:
To some people tourism serves as status symbol. They view that if they visit a number of tourist places, their status in the society will increase.

(vii) Social change:
Life style education and income of people so increased. Increase in working of women in the family led to increase in family income which had changed life style. These people are thought of going four during their holidays which increased the development of tourism.

(viii) Change in attitude of people:
Now a days people changed their attitude in spending. They are ready to spend the money, wants to get entertainment and they want to enjoy their life.

(ix) Tremendous changes in information technology has also contributed for the growth of these services. Many electronic systems have infurd in the information field contributing services to customer and delighting them.

(x) Internet Multimedia and various computer application brought changes in economic condition which have given scope tor toe development of specialized services.

Question 5.
Write a explanatory note on marketing mix in case of airline service.
Answer:
Marketing mix of airline service Ban be summarized as follows:
(a) Product mix:
It is related to civilian aviation but not defence aviation. In civil aviation there are mainly three types of products they are passenger traffic, cargo carrying traffic and mail services. In passenger traffic products are regular passenger, pilgrim services and special flights. It should be noted that airline services are very competitive as such operators have to plan their operations very attractive. To make operational product attractive three elements like transport, tour, and hotel must be identified carefully to suit the needs of passenger.

(b) Price mix:
Fixing price is very challenging as the cost of operation of air service is very high. At the same time occupancy ratio is also varying due to inflation in the economy, while fixing of price it is necessary to consider demand level, supply of air craft, infrastructural facility, running expenses, seasonal flactuation, depreciation of air crafts, strategies of competitions etc.

(c) Promotion mix:
The usual promotion mix adopted to increase air traffic are advertising, personal selling, publicity, sales promotion, network marketing, and telemarketing etc. For advertising purpose the popular media must be selected. After selecting media, the layout of advertising, message, cost of advertising, creativity in advertisement, latest development in printing technology must be considered.

Personal selling involves persuading air travelers by promoting agencies. It requires the services at travel agents, tour operators, transport operator, travel guides, travel guides, front line staff and receptionists, if these links fails to operate positively, it becomes difficult to sell airlines.

Publicity is powerful submix of promotion mix. This involves persuasive communication. Airline organization should develop good relationship with news agencies, publisher of periodicals and magazines and other print media people. For the purpose of sales promotion sates targets have to fixed and aggressive promotion activity have to be taken up to reach toe target for this purpose right incentives must be promoted.

Network marketing involves promotion by words of mouth. All the people who work for airlines continuously speak about airlines for its quality and service. Modern days tele marketing also plays significant role in service promotion. Air transport organizations have enough scope for promoting their services though this mode.

Question 6.
Write a note on classification of hospitals?
Answer:
Classification of hospitals depends on various factors following are the basis for classification of hospitals.
(A) On the basis of objective:

  • Teaching – cum-research hospitals : This is a university hospital for developing medicine and promoting research to improve the quality of medical aid.
  • General hospital: General hospital deals with many kinds of disease and injury and typically has an emergency department to deal with immediate threats to health and the capacity to dispatch emergency medial services.
  • Specialty hospital: These hospitals deal with special medical needs. Some specialty hospitals are affiliated with universities for medical research and the training of medical personnel.
  • Clinic: It is smaller than general hospital provide only outpatient service.

(B) On the basis of ownership:

  • Government hospital; Government hospitals are owned, managed and controlled by government.
  • Semi government hospitals : These hospitals are partially shared by government. It is run and managed by private organization. But controlled by government.
  • Voluntary agencies hospitals : Voluntary agencies also run hospital to give services to patients at cheaper rate.
  • Private hospital: These hospital management and control are fully in the hands of private people.

(C) On the basis of path of treatment:

  • Allopathy hospital: These hospitals are promoted under english medicine – system.
  • Ayurvedic hospital: Ayurved hospital is based on Indian system where herbals are used for preparing medicine.
  • Homeopathy
  • Unani
  • Sidda
  • Nature care.

(D) On the basis of size:

  • Five hundred beds hospitals : These hospitals are teaching hospitals generally have five hundred beds which can be adjusted in tune with the number of students.
  • Two hundred beds hospitals ; District hospitals generally have two hundred beds which can be raised to three hundred in the face of changing requirements.
  • Fifty beds hospital: Taluk hospitals are fifty beds hospitals and can be raised to are hundred depending upon the requirements.
  • Six bed hospitals : Primary health care centres are six beds hospitals and can be raised to ten beds.

(E) On the basis of location:

  • City hospitals: These hospitals are established in big cities and run on corporate lines adopt a structure which shows the complete authority flow. These hospitals provide systematic and effective operational system.
  • District hospitals: These hospitals are established at district level and fulfill the needs of district people.
  • Taluck hospitals: These hospitals are at taluck level, to create awareness on family planning child care environmental protection.
  • Primary health care centres are established at village or hobli level to give fist and treatment to village people.

Question 7.
What are the essentials required for successful marketing of health care?
Answer:
Following are the essentials for successful marketing of medicare.
(a) Users found satisfied: The first and important work of marketing manager is to satisfy the user by making available to them the quality service. The medical aid play a pivotal role along with this supportive services also play an incremental role without which the duration of treatment is increased considerably.

(b) Time honoured service mix: The marketing principles focus on setting the fee structure in such a way that it helps hospitals in having quality inputs, discriminating pricing policy is suitable to serve the poorer section of the society. This price policy also enables hospitals informulating a sound service mix for making available for the users the time honoured services.

(c) Services can be made cost effective: Generally health care services are very expensive. In India we need to minimize cost in services. A well thought strategies reduces the cost.

(d) Public awareness: In an Indian environment the prospects living in the rural areas are not aware sensitive issues influencing their health conditions which increases the cases of ailments. The hospitals with the support of professionals can innovate advertisements which would inculcate mass awareness and also minimize pressure on hospitals.

(e) Thrust areas can be identified: In India marketing principles need to activate child immunization, vaceination for serious diseases. Pre – and post maternity care to women a crash programme for malaria, cholera, typhoid leprosy and soon.

(f) Vulnerable segment can be identified : In case of Health case services some of the segments are very backward and some villages are not having infrastructural facilities. To make available the best possible medicaf aid to them it is eneuhal that marketer have detailed information regarding vulnerable segments jn order that an action plan is prepared to counter this problem.

(g) Behavioural dimensions can be given due weight age : The medical personnel in general and the front line personnel in particulars need an indepth knowledge of behavioural management, this helps in minimizing the duration of treatment

(h) Motivating personnel: Service promotion is an important dimension of marketing in which market plan to motivate personnel of different level of command. Example Pulse police programme.

Question 7.
Explain marketing mix for hospital?
Answer:
(a) Product mix: Services provided by hospitals have been classified in three heads:

  • line services
  • supportive
  • auxiliary services.

The line services include emergency services out door and indoor services, intensive care unit, operation theatre. These are also called as core services playing decisive role in the medicare services. The supporting services determine the quality of services made available by medical and para-medical personnel.

They get a strong base for treatment since the diagnostic aspect determines a direction. Auxiliary services consists of registration and indoor case records store management, transportation management, mortuary management engineering and maintenance services. Hospital services must be in quality to give satisfaction to the users. Otherwise promotional aspects carries no meaning.

(b) Promotional mix : Promotional aspects includes motivating the prospects and transforming them into actual users hospital services focus on two Components,

  • Innovating the promotional measures and including mass awareness
  • Hospitals are supposed to play such a positive role which in the long run makes the environment disease free and the prospects are sensitive to adjust even in a rough weather.

Promotion aspects includes personal and non-personal measures main duty of health care services is making available right services to the right users at the right time, advertisement and publicity helps to promote medical services.

(c) Price mix: In health came services pricing is very challenging task hospitals need to invest a lot on the sophisticated equipment and technologies to improve the quality of medical aid. But poor section of the society unable to pay the fees charged by big hospitals. Therefore discriminatory fee structure is suitable because it provides even weaker section of the society an opportunity to avail quality of medical services.

(d) Place mix: There is direct link between producer and consumer, hospital staff like doctors, nurses and technicians are produces and patients are consumer. Consumer can come up with desirable parameters for a parameters for a tangible product in terms of productivity and efficiency. But it is difficult to rate the intangible product like treatment and diagnosis of diseases. Some time producer of health care himself act as a marketer. The main duty of health care services is to create awareness among children, parents and public in the society.

Question 8.
Explain marketing mix of education service.
Answer:
(a) Product mix: It is the important dimension of the service mix. It includes building furniture, sanitation water electricity, library, equipment laboratory and the treating and non-teaching personnel. In the face of technological advances the universities colleges and institutes need to equip the information centre for data processing. These items increase the cost of input though for innovation in education.

(b) Promotion mix: In India private colleges and institutions are making adequate financial provisions for promoting their services. The personal promotion is related to the teaching methods and a qualitative improvement would mean positive word of mouth publicity for the institution. Sometimes institutions advertise their services and also try to differentiate their services from their competition. Quality of education services in possible to find out with the help of their contribution to the development of higher education.

(c) Price mix: Price mix includes fee structure design a fee structure is an important task of institution fee structure takes all segments into consideration. Some extra ordinary meritorious students get free cost of education. Therefore rational fee structure would make the educational institutions competent enough to initiate qualitative and quantitative transformation in the higher education.

(d) Place mix: Better economic life is the ultimate goal of educational service marketing, the government managed educational institutions are providing better educational services to people in the society. But structural change in the distribution process is needed to fill the gap between service providers and users.