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This Essay Covers The Following Aspects Of Services Marketing: Importance Of Marketing Of Services Why Is Service Is Difficult To Manage Compared To Physical Goods?

1492 words - 6 pages

IntroductionService sectors will continue to play a big role in economic upturns and downturns, and employment will continue to rise, adding 20.5 million jobs by 2010 (Wyckoff, 2003; Kotler & Keller, 2006). However, the problem with service-quality is its subjective concept, and how organisations' find it difficult to measure their services according to its component of services. Nevertheless, services can be managed, and minimising issues are possible.Service-quality has been defined as a customers' long-term cognitive over-all evaluation of a firm's performance (Hoffman & Bateson, 2006; Lovelock & Wirtz, 2006). This evaluation is a comparison between their perceptions of the service's characteristics and expectations (Bruhn & Georgi, 2006; McColl-Kennedy, 2003). The issue associated with this concept is that service-quality is a more subjective concept compared to product-quality. Thus, firms' need to determine the factors of service-quality that influences the customers' perception of the firm's quality. The challenge of service-quality is to meet or exceed customers' expectation.History of Service-Quality & Its ImportanceDuring the 1980's the notion of service-quality began to emerge. Where Dahlgaard (1999) highlights that quality evolution began from inspection of goods to strategic quality management. The Japanese were the first to have developed this quality notion, afterwards industrialised countries such as UK and Australia embraced this quality concept, as customer's demand for this quality increased (Dhalgaard, 1999; Volpe, 1993). The traditional notion of quality of inspecting goods is now redesigned to an ongoing process of continuous improvement, whereby performance, behaviour and knowledge play crucial roles in eliminating wasteful systems and processes of an organization. (Bhuiyan & Baghel, 2005; Volpe, 2003; Drucker 1991). For e.g., retail banks provide several benefits to customers such as credit cards, saving accounts, security, etc. to win/keep customers, banks must exceed or meet customers expectations. Therefore, service-quality has been the most research area of services marketing to date (Fisk et al., 1993).Pasupathy (2007) highlights that service delivery and its impact is more important today in the new global market. Moreover, Sachdev & Verma (2004) highlight service-quality is linked to profitability, positive word-of-mouth, customers' satisfaction, customer retention, and behavioural intention. However, service-quality is complex because it's thoroughly based on customers' perception and expectations of the service provider. Gronross (1984) differentiates between "technical-quality" (what is delivered) and "functional-quality" (how it is delivered), whereby customers' evaluation along two dimensions. For e.g. a restaurant's waiter plays a "how" it's delivered role and the food plays "what" is being delivered. The functional-quality is critical to perception of service quality (Berry,...

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