c




 c c
 c 

?
?

? ??
 ??
???
?



? ????

? ?

1
 c

 
 c c
 c 

?
?

x? ¦ ? ?  ? ? 
? 
? ? ? ?
? ? ?  
? ?


x? ?
 

??!
m

Industries that provide services rather than goods are service industries and companies.
Economists divide the products of all economic activity into two broad categories, goods and
services. Industries that produce goods (tangible objects) include agriculture, mining,
manufacturing, and construction. Service industries include everything elsem banking,
communications, wholesale and retail trade, all professional services such as engineering and
medicine, all consumer services, and all government services. Worldwide, the service sector
accounted for more than three-fifths of global gross domestic product by the early 21st century.
E.g. Nepal telecom is the service providing industry which provides telecommunication service
to the people. Likewise, World link is the internet service provider.

x? 
?
? 

One of the biggest challenges in selling professional services is that what you are offering is
intangible. Your product can't be seen, touched, or tasted. Until your prospective clients
experience what you do, they have no way of knowing if it will turn out, whether they will like it,
and how well it will work in their situation. To make a buying decision, the client must first trust
that your work will produce the result that they need. The most common way to package
professional services is by the hour or day. The client pays for your time, and they keep paying
until the project is declared complete.

You can overcome these barriers to making a sale by "productizing" your services. This awkward
term simply means that you make your service look more like a product, so that it becomes
easier for your clients to buy. You give it a defined scope, fit it into a limited time period, assign
it a definite price tag, and attach a distinctive name.

E.g. let͛s say you are an image consultant, and you've been selling your time for $75 per hour.
Instead, you offer a "One-Day Makeover" at a price of $495, and include a wardrobe
assessment, color consultation, and shopping trip. You're giving your clients a defined result
with a clear timeframe and set price, making it easy for them to buy. Plus, you are able to let
clients experience a range of the services you offer and suggest additional ways they can work
with you.

2
c

 
 c c
 c 

x? !
?

Customer service is a series of activities designed to enhance the level of customer satisfaction ʹ
that is, the feeling that a product or service has met the customer expectation. Its importance
varies by product, industry and customer; defective or broken merchandise can be exchanged,
often only with a receipt and within a specified time frame. Retail stores will often have a desk
or counter devoted to dealing with returns, exchanges and complaints, or will perform related
functions at the point of sale. Customer service may be provided by a person (e.g., sales and
service representative), or by automated means called self-service.

E.g. of self service are Internet sites. However, In the Internet era, a challenge has been to
maintain and/or enhance the personal experience while making use of the efficiencies of online
commerce. Online customers are literally invisible to you (and you to them), so it's easy to
shortchange them emotionally but this lack of visual and tactile presence makes it even more
crucial to create a sense of personal, human-to-human connection in the online arena.
Customer service is normally an integral part of a company͛s customer value proposition.

x?  ?

All the physical goods and services are valued for the services they provide. Whenever, we purchase
a goods or service we value the product depending on whether it was able to fulfill the basic
requirement or not. If it fulfills the basic requirement we are satisfy with the product/service else
we are dissatisfied.

E.g. the basic service of a luxury car is to provide convenience and comfort. If it breaks at every 5km
and is not that comfortable then the requirement is not met. It means that the luxury car does not
possess derive service.

3
 c

 
 c c
 c 

x?

? ? 

? ? ? "? ?? 
 ? "??

#?

? ?  ? ? ? "??
???
?
#

Economy is defined as an activities related to production and distribution of goods and services in a
particular geographic location. Economy means correct and effective use of resources. Economy is based
on the power of division of labor in which the prices of goods and services are determined by supply and
demand. Services are the intangible products that are not goods (tangible products) such
as accounting, banking, cleaning, consultancy, education, insurance medical treatment, transportation.
Sometimes services are difficult to identify because they are closely associated with a good; such as
the combination of a diagnosis with the administration of a medicine.

No doubt that an economy can be based entirely on services. A country economy can be based on
accounting, banking or in any other service oriented organization. Service in few decades will be the
front edge of any industry. The service sector places less burden on natural resources and creates more
employment than manufacturing and is good for social stability. But the fact is a country can have
service as one of the major sectors of economy but to rely entirely on service is vulnerable. Such
economy will find hard to sustain and can only exist for short period of time. An economy that is entirely
focused on services is a weak economy that can be easily thrown off the track. Services contribute 80%
to the employment & GDP of the US Economy (2006), but even the current shift from production to
services is having a major impact on the standard of living for many former middle income families. The
production jobs are moving overseas while "service jobs" remain. That is why the unemployment seems
low but the economy is stagnant. Let us take another example of China. Today, china stands second as
the world͛s largest economy surpassing Japan. Expert says that China will surpass USA by 2030. So, why
is china growing so fast? The main reason is because today, China is world͛s largest production house.
Large number of USA and Japanese manufacturing company are situated there. This has helped China to
grow so fast. If it had only concentrated on the service sector, result would have been different. Thus, a
country should also focus on the other sector of economy such as agriculture, construction,
manufacturing etc. Hence, I believe we cannot revive and sustain economy just by cleaning others
window.

As discussed above, country can sustain only with service economy but to have a growth it needs to
focus on other service sector as well. It is good for economy to have a large service sector. The increase
in service sector benefits in two ways, increase employment and reduces costs. As service economies
develop, they generate proportionately more jobs in services than in manufacturing, farming, or other
extractive industries. In the U.S., for example, fewer than 20 percent of all jobs are in non-services.
Other developed economies are approaching this. This raises several questions. For example, just what
is the optimal amount of service sector activity in an economy that meets consumer needs while
contributing optimally to overall economic health? Has the U.S. gone too far? What obligations does this
create for increasing service sector productivity? Do manufacturing-based economies have some kind of
inherent advantage over service-based economies? If so, just what is it?

4
 c

 
 c c
 c 

Increasing productivity in the service sector has been accompanied by increasing employment, a
phenomenon somewhat at odds with experience in the glory days of manufacturing. Thanks in part to
new technology, service sector workers work smarter. But they are working just as many hours as
before. Perhaps lower-paying jobs force people to work more hours to sustain a certain lifestyle. But it
may also be that more customers want and are able to afford the services these workers deliver.
Whatever it is, people throughout the world today continue to work long hours at a time.

However to prevail service sector in economy, it should be innovative and go with the trend.
Traditionally the service sector was known to be more bureaucratic and less innovative. Innovation in
service products and processes would lead to higher efficiency and performance. Management of the
service sector has to develop a strategy to communicate the role of innovation within the company and
decide how to use technology, processes, and people, and drive performance through the use of
performance indicators.