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Notes: Emerging Trends in the Services Sector under Globalization (Financial, Social and Hospitality Services (S L Rao) Globalization:

Free entry; competition on quality, price, image: More choice for consumer-he can take another airline, hotel, travel to another country; Likelihood of large domestic and foreign demand growth. We have to be prepares with quantity and with quality; we need information to be easily available. 1. Services: Pity that a country with so many poor has services at 50% of GDP. It should be agriculture and industry that should have grown faster so that more people can consume more and have a better life. 2. Delivering consistent quality of Services over time and space: Unlike products service quality is a matter of perception; Perceptions vary depending on mood, state of mind, weather, etc; Service delivery has to be perceived even through this curtain; essential to define what service experience we want the consumer to receive and carry away in his memory; Services are delivered by individuals and they have to deliver the same experience to different consumers; There must be full understanding among all deliverers as what experience they wish to deliver; all must receive training to do so; training has to be repetitive; Using technology to make this easier. 3. FINANCIAL: Consumer looks for safety, income, capital gain, ease of withdrawal;

cost of different services, quality of service delivery; Different consumers, depending on age, economic condition, responsibilities attach differing importance to each;

Example of nationalized vs foreign banks: Foreign Banks offered ambience, cleanliness, space, light, pleasantness of service, very high cost of service; Nationalized Banks were the opposite; crowded, dingy, noisy, unpleasant tellers at counters, but low cost service;

now nationalized banks have improved their ambience, tellers are pleasant, costs are higher than before but still cheaper than foreign banks, and there is the sense (after scandals with private banks and foreign banks overseas) that because government owns them, they are safe.

4. SOCIAL: HEALTH services actually constitute three markets: for the very well off, the middle income, and the poor; The Rich are able to pay and get cleanliness, hygiene, good nursing, quality food, etc, but with the dearth of competent medical practitioners the quality of medical and surgical attention is very variable; technology is more used to track and monitor patients condition: Appollo, Wockhardt, etc;they are likely to be the beneficiaries of globalization as patients from rich countries comme for cheaper, better and timely care;

the Middle income goes to the nursing homes like Mayya, Ramakrishna, etc because even though the ambience is not as good, it is affordable and the quality of care is good;

it is the Poor who suffer: high dependence on quacks; inordinate waiting and delays; absence of doctors; bribes to be paid.

EDUCATION services suffer from the same socio-economic divide; for the Rich, the mushrooming of very expensive schools with beautiful campuses, classrooms, latest facilities, highly paid and good teachers, insulate children of the rich from the common man; in the same category are the private engineering, medical and management schools, though many cheat the student as in the case of management schools; the demand has grown with globalization and the demand in foreign countries for trained engineers, computer programmers, doctors, nurses, etc, as well as the demand within for management graduates and other such skills because of economic growth after the opening up fo the economy. For the Middle there are the old private schools and for the elite government servants the Kendriya Vidyalayas; The Poor have to make do with the poor quality of under funded government institutions, underpaid teachers and poor teaching

5. HOSPITALITY TOURISM: Tourism infrastructure:

power situation is bad all over India and especially outside major cities; communication has improved but internet facilities are variable; easy access to transportation wayside halts with clean toilet and food facilities quality souvenir shops; lack of foreign exchange conversion facilities in many tourism spots; similarly medical facilities; Entertainment: more than cinema; need for calendar of habbas (festivals); sabhas concerts programmes, theatre calendars, by locations and dates so that the tourist can decide what he wants to attend and when; need for central ticket booking facility & make it easy for tourists to book tickets.

Acommodation: need for central information of number of rooms in different tourist locations, the number by type and cost, facilities available, (air conditioned or not, food types, etc), certified home stay list in different places and the cost;

system that certifies eating places at different locations as having been inspected and therefore safe;

Religious tourism: list of such places, a calendar of their regular events, facilities for stay, etc, costs, etc.;

need for using the Crafts map of Karnataka to help make a list of locations of different crafts.


IAC vs Sahara and Jet: quality of experience from x-ray of bags, check-in counter, on time departure, on board service, quality and presentation of food, response of attendants to calls, baggage delivery; on all counts Jet provides consistency of quality service. AIRPORTS are crowded, airport staff are unhelpful, cleanliness not uniform, toilets are kept poorly and without adequate facilities for self cleaning. TRAINING: Mantra for service quality is to drill delivery staff to provide consistent quality of service; service quality is as good as the individual who interacts with customer: bell b oy, counter staff, air hostess, etc.: Use technology to help memory and remember frequent users preferences.