Importance of the Service Industry to the Economy

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Importance of the Service Industry to the Economy At the time when the economy was developing apace and the significant change on economic structure was progressing, the importance of service industry in economic system has been increasing steadily so to become one of principal drivers for most countries economy development, e.g. In the United States, 78% of the GDP is attributed by service industry[1]. Due to such kind of tendency, the interrelated studies of service bearing high research value were developed, which crown multiple subject areas. Service Marketing, one of those areas, was not really dealt with until the 1970´s either in Europe or the USA. Since that time it has grown considerably and has received much attention from various authors. Service marketing is the recognition that contacts between service providers and their customers is the basis of a process of building relationships, and the term service management is used in order to recognize the management of this relationship process. This project will focus on how to manage the service encounter to create customer´s satisfactory experience, which is a prevalent topic of this research area. Service differentiates product by its four characteristics that are frequently expatiated in marketing literatures, i.e. intangibility, inseparability, heterogeneity, perish-ability. Zeithaml and Bitner (2002) also generalized service as deeds, process, and performance. Customer involvement or provider and customer interact is the most important phenomenon in all services, which means in a service environment, customers interact with the service firm C its employees, delivery systems, physical facilities, and even other users. The difference only depends on what the level of such firm and customer contact is. Services are divided into High-contact Services and Low-contact Services (Figure 1)[2]. The former is group of services involves personal visits by customer to facility, such as hairdressing, lodging and medical services. The latter is customer involves little physical elements caused by new technologies development and adoption, especially on the use of information technology that changes the original interpersonal interaction. Despite the level of contact, because of service´s unique characteristics in the process of consuming service, the core product... ... middle of paper ... ... Prentice Hall Adrian Palmer, Principles of Service Marketing, 2nd Edition, McGraw Hill Teresa A. Swartz and Dawn Iacobucci, Handbook of Service Marketing and Management Grove, S. Fisk R.P., 2001: Service theatre: An analytical framework for services marketing, in Lovelock and Writz (2004) pp 78-87 Grove, S. Fisk R.P., 1997: The impact of other customers on service experiences: a critical incident examination of Getting Along. Journal of Retailing, 73(1): 63-85. James A. Fitzsimmons, 1999, Curriculum and Research in Service Operations Management. http://www.uwstout.edu/programs/bssm/pom.pdf Service Quality http://faculty.fuqua.duke.edu/~fdv1/operatns472/SessionGraphics/9%20-%20Quality.pdf [1] Source: George T. Willingmyre, P.E. President, GTW Associates 2002 [2] Source: C. H. Lovelock, 2004, Services Marketing C People, Technology, Strategy, pp. 34 [3] Source: C. H. Lovelock, 2004, Services Marketing C People, Technology, Strategy, pp. 35 [4] Source: C. H. Lovelock, 2004, Services Marketing C People, Technology, Strategy, pp. 412 [5] Source: C. H. Lovelock, 2004, Services Marketing C People, Technology, Strategy, pp. 48

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