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(1) Importance And Difficulties Of Quality In Service Marketing (2) Benefits Of Relationship Marketing

1564 words - 6 pages

Assessment Item 2 - Individual essayService sector has been the major growth industry and service economy has been a major growth driver in many economies in late 20th Century. In 2009 services represented 76% of Australia's GDP and service industries employ 85% of Australian workers. Given the rapid growth of service industry, offering superior service quality is the most important issue to all service companies. Quality service has positive impacts on customer satisfactions, probability, customer loyalty competitive advantage. However, comparing to physical goods, quality of service is more difficult to manage due to the four unique characteristics - intangibility, heterogeneity, inseparability and perishability. This essay will explain why the quality is important to services marketing and explain why quality is more difficult to manage in service industries than it is in the case of physical goods with some examples.(Kotler et al, 2005) The meaning of quality is different between physical goods and service. It is variously defined as fitness for use, freedom from variation, conformance with requirements, and conformance to specifications in manufacturing perspective. In service perspective, there is a variety of definition of quality. According to Lewis and Boom, service quality is "a measure of how well the service level delivered matches customer expectations" (Baron and Harris, 2003). The meaning of service quality can be also divided into provider perspective and customer perspective. From provider perspective, "it is the degree to which the service's features conform to the organization's specifications and requirements". From customer perspective, it is define as "the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs" from customer perspective. (Kotler et al, 2005)Quality is one of the main issues in management in this last decade of the Century (Bitner and Zeithaml, 2003). One of the most important consumer trends nowadays is the search for quality as customers are now demanding higher quality in products than ever before (Baron and Harris, 2003). Also, organisations have become to realize that purely relying on a product itself is hard to upper edge in profitability due to similar or common products of the competitors in such a competitive market (Baron and Harris, 2003). According to GE's chairman, John F. Welch, Jr, "quality is our best assurance of customer allegiance, our strongest defense against foreign competition and the only path to sustained growth and earnings" (Kotler et al, 2005). Several research have shown that improvement in service quality It brings (1) higher customer satisfactions, (2) increased long-term probability, (3) increased customer loyalty or patronage, (4) increased competitive advantage (Baron and Harris, 2003).According to, Kotler et al (2005), customer satisfaction is linked closely to service quality delivered. Higher levels of...

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