Services Management

Institute of Hotel Management, Aurangabad

University of Huddersfield, UK

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Services Management

Year – 4

2010-2011

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Submitted To: - Submitted By:-

Mr. Rushad Kavina Farhan Zaidi (H-1533)

1.0 INTRODUCTION

The service sector or service industry is that sector or industry that is excluded from the primary sector and the secondary sector. This sector deals in 'intangible goods'

Services industry or sector involves distribution, transport and sale of goods from producer to consumer. The service sector also includes the supply of a service like entertainment and cleaning services. Principal characteristic of a service industry is people to people interaction. Goods, however, may also be transformed when providing a service.

Services play a significant role in the economy of every nation in the world. The national economy of every country depends on its service infrastructure – including transportation, communication, education, health care and various government services. It is imperative to recognize that services are essential elements of a society. According to Fitzsimmons J. (2006), “A service is a time perishable, intangible experience performed for a customer acting in the role of co-producer.”

Services are the crucial force for today’s change towards a global economy. Services contribute significantly to the economy of most developed nations, representing significantly more than half of their countries’ gross domestic product (GDP). For Example, in the Untied States, 75% of the GDP is attributed to services. In fact, many lesser developed nations are turning to services as a way to expand and stimulate their economic growth and development. In India also, the services sector contributes a major chunk towards the GDP; the contribution of...