Page 33 - DMGT522_SERVICES MANAGEMENT

Services Management

Notes The other definition which was proposed, in 1963, by Regan suggested that “services represent
either intangibles yielding satisfaction directly (transportation, housing), or intangibles yielding
satisfaction jointly when purchased either with commodities or other services (credit, delivery)”.
For the first time services were considered as pure intangibles capable of providing satisfaction
to the customer which could be marketed like tangible products.
Robert Judd defined service as “a market transaction by an enterprise or entrepreneur where the
object of the market transaction is other than the transfer of ownership of a tangible commodity”.
Lehtinen, in 1983, defined services as “an activity or a series of activities which take place in
interactions with a contact person or a physical machine and which provides consumer
satisfaction.”

Kotler and Bloom, in 1984, defined services as “any activity or benefit that one party can offer to
another that is essentially intangible and does not result in the ownership of anything. Its
production may or may not be tied to a physical product.”

Gummesson highlighting the intangible nature of services defined “services as something which
can be bought and sold but which you cannot drop on your foot.” This definition also pointed
out one basic characteristic that the services can be exchanged even though they are not tangible.
According to Gronross, “a service is an activity or series of activities of more or less intangible
nature that normally, not necessarily, take place in interactions between the customer and
service employees and/or physical resources or goods and/or system of the service provider,
which are provided as solution to customer problems.”

This definition takes into account the following important features of services:

Services are by and large “activities” or they are series of activities rather than things.
As a result services are intangible.
They take place in the interaction between the customer and the service provider, which
means that services are produced and consumed simultaneously.

Customer has a role to play in the production process as the services are provided in
response to the problems of customers as solution.

2.2 Overview of the Indian Economy

India is projected to see a faster growth of 7.5 per cent this fiscal, on the back of higher savings
and investment rates, even as most of the Asia-Pacific economies are likely to expand at a slower
pace, as per a United Nations (UN) report. “We expect it to expand by about 7.5 per cent in 2012-
13,” said Nagesh Kumar, Chief Economist, United Nations Economic and Social Commission
for Asia and the Pacific (ESCAP). “Today India is among the most attractive destinations globally,
for investments and business and FDI had increased over the last few years,” according to Ms.
Pratibha Patil, President of India. The Indian economy has continuously recorded high growth
rates and become an attractive destination for investments, highlighted Ms. Patil.
Meanwhile, India continued its ascent as a top destination for private clean energy investment,
according to a research report released by The Pew Charitable Trusts. “Clean energy investment,
excluding research and development, has grown by 600 per cent since 2004,” according to Phyllis
Cuttino, Director, Pew’s Clean Energy Program. India’s clean energy sector continued to flourish
in 2011, with private investment increasing 54 per cent to US$ 10.2 billion, placing the country at
sixth position among the G-20 nations. This was the second highest growth rate among the G-20
nations. The World Economic Forum (WEF) plans to establish permanent physical presence in
India by setting up an office in the next twelve months. “Today, India is amongst the most

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