Essay on Importance of the Service Industry to the Economy

Essay on 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

... 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.

Service Quality

[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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