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„ Service Management is monitoring and optimizing a
service to ensure that it meets the critical outcomes the
customer values and stakeholders want to provide.

„ Services or the "tertiary sector" of the economy covers a

wide amount of activities like trading, banking & finance,
infotainment, real estate, transportation, security,
management & technical consultancy among several
others. The various sectors that combine together to
constitute service industry in India are-
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„ Trade
„ Hotels and Restaurants
„ Railways
„ Other Transport & Storage
„ Communication (Post, Telecom)
„ Banking
„ Insurance
„ Real Estate
„ Business Services
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There are number of ways of classifying service activities
and following are most commonly used:

›
›
End user services can be classified into following
categories:

„ Customer

„ Business to Business

„ Industrial
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The degree of tangibility can be used for classification:
HIGHLY TANGIBLE:
Car rental, mobile phones, vending machine.
SERVICES LINKED TO TANGIBLE GOODS:
Domestic appliance repairs, car services, plumbing jobs.
HIGHLY INTANGIBLE:
Physiotherapy, legal services, insurance, consultancy,
coaching.
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Services can be broken into labor-intensive and
equipment-based services.

„ LABOR/PEOPLE-BASED SERVICES (high manpower

services):
Education, dental care, physiotherapy, restaurant.

„ EQUIPMENT-BASED SERVICES (low manpower

services):
Laundry, vending machines, ECG testing, Cinema.
 
 
 
   
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„ Companies rated higher on service quality perform better
in terms of market share growth

„ Big gap exists between the expectations of the

customers and the level of the service they get Real
barriers while matching expected and perceived service
levels of customers


     
„ Defining and improving quality

„ Communicating and testing new services

„ Communicating and maintaining a consistent image

„ Motivating and sustaining employee commitment

„ Setting prices

„ Standardization
 Pricing Strategy





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„ The price should:

„ Be easy for customers to understand

„ Represent value to the customer

„ Encourage customer retention and facilitate the

customer¶s relationship with the providing firm

„ Reinforce customer trust

„ Reduce customer uncertainty

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A picture map that visually portrays the service system ±
 process of delivery
 role of customers & employees,
 visible elements of the service

Breaks down a service into logical components & easily

definable tasks & steps.
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