BASE ON THE GIVEN ARTICLE BELOW. IDENTIFY THE FOLLOWING:

1. BACKGROUND OF THE STUDY
2. PROVIDE ATLEAST 2 STATEMENT OF THE PROBLEM
3. PROVIDE 3 ALTERNATIVE COURSE OF ACTION (SOLUTION TO THE PROBLEM AND EXPLAIN)
4. RECOMMENDATION (WHAT IS THE BEST SOLUTION FOR THE PROBLEM AND EXPLAIN)
5. PROVIDE NECESSARY REVIEW OF THE RELATED LITERATURE ( IN PARAGRAPH FORM)

Caselet Case: Myths about Service Industries

There are certain myths about services sector. It is because of these myths that people are unable to relate the role and contribution of the services sector in the economy. The first myth is that a service economy produces services at the expense of other sectors. The fact is that many service industries are major purchasers of manufactured goods. Take the example of airlines, fast food outlets, educational institutions, etc. which buy so much of manufactured products. The second myth is that service production is primarily labor intensive. In fact, a number of service sectors like healthcare, hospitality, etc. are capital intensive. Productivity are therefore equally important in service organisations as returns

on capital employed will be one of the major determinants of success. The third myth about services is that people satisfy their product needs before the need for services. This is also not true. Research findings of a study revealed that people value services as much as products; however, they may buy services in a less cyclical way, as compared to goods. The fourth myth about the services sector is that service businesses are 'cottage industries' and service jobs are low paying. If you check the list of Fortune 500 companies you will be surprised to see the number of service companies figuring in this list. The other myth about the service sector is that services are only offered by the government sector. The fact is that on the one hand public services, like telephones, health care, power generation and distribution, etc. are being privatised and on the other hand large enterprises are entering into services sector. Take the example of Escorts into health care, Tata's in power distribution, etc. In fact the service organisations are quite varied and different from each other. First category includes the public agency sector for example post offices, police and fire departments, water and electricity authorities, etc. The second group is made up of the private non-profit sector running charities, foundations, old age homes or various societies involved in issues related to women, literacy, family welfare, etc. Next comes the business sector comprising banks, hotels, airlines, travel agencies, tour operators, courier services, insurance, consultancy - legal management or medical. Lastly, it is the sector which provides services to

those involved in manufacturing. This includes those firms providing security personnel, accountants and auditors, computer operators and software consultants which help manufacturing firms in their operations. In addition, there are a number of other types of services which are emerging in the western

society. These range from, on a charge, the availability of a baby sitter to a group of hippies making the party colorful. In India also such services are emerging whether they are a troupe of young boys and girls doing a music-cum-dance show on a birthday or wedding, house maintenance services, real estate brokers, security, etc.

Reference:

https://www.studocu.com/in/document/manipal-academy-of-higher-education/marketing-in-an-analog-world/introduction-to-service-marketing/24933649

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