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The growth in services has also been accompanied by the rising share of services in world transactions. Not only has the services sector grown in terms of its share in global output and employment, its share in total trade has also grown rapidly in this period. The growing importance of services sector and the corresponding rise in its role in integrating the world economy has led to a stream of literature that examines different aspects of trade in services.

The service production process is much more complex and ambiguous. Some products sit on either end of the continuum as either a pure good or a pure service, but most products lie somewhere in between the two. A pencil would be considered more of a pure good; where as, baby sitting would be considered more of a pure service. Restaurants offer a combination of both a goods and services. Servitization Much of the growth in the service sector has been driven by attaching a€? value addeda€? ervice components to goods in order to gain a competitive advantage. This was servitization at work. My mind started dreaming up other services or goods that could be bundled with the camcorder to increase sales at an even higher price. They could offer movie making classes and editing services. They could also include coupons for complementary goods, like: microphones, lights, and recording tapes. Servitization can be used to do more than provide a competitive advantage.

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It can drive the sales of a secondary product. Apple Computer is no longer just a hardware company. They are a service company as well. When you buy an Apple computer, you have access to a help desk and computer classes. Plus, you are given numerous opportunities to upgrade your services and receive more value. This not only allows Apple to sell more computers, it provides the company an opportunity to sell additional service product upgrades. Even service companies use added services to drive revenue.

Funeral homes, for example, package caskets, embalming, viewing, custom printing, legal services, phone cards, florist services, hotel rooms, portraits, limousines, and more. It is questionable whether these bloated funeral packages actually increase the value from the consumers stand point, but it does enable funeral directors to justify their prices. There are many positive examples where service companies gain a competitive advantage over their competition by bundling value added services that consumers appreciate.

Child care at gyms and fitness studios, for instance, make it easier and more affordable for parents to workout. Service companies can add goods products to their offering in order to gain additional revenue streams. Salons not only sublet chairs to hair stylists, they retail specialty products. Realize that successfully retailing goods requires great inventory management and marketing skills, but extending your product offering with complementary goods and services can help you better meet the needs of your existing clients and boost your income.

The pressure to provide better customer services has never been greater. Consequently, the primary purpose of this study was to compare the quality of service on domestic flights of various Indian airlines. The service components considered for the study were expectations and perceptions. The research questions and the derived hypotheses were examined comparing expectations and perceptions and the gap between them. An analysis of demographics like age, gender and level of income for the airlines surveyed was also carried out.

Strong economies saw international passenger demand grow by 5. 9%. Driving these developments are further market liberalization and the availability of more fuel efficient and longer-range aircraft that are better able to serve thinner routes. Focus on service quality is the need of the hour if the airlines aspire to improve market share and further enhance financial performance in domestic and international markets.

A necessary corollary is that domestic airlines need to have valid and reliable measures to better understand the variables likely to have a bearing on the service quality offered by their organization, e. g. expectations and perceptions of airline passenger’s vis-a-vis service quality. Much of the research in services marketing centers on understanding services and service quality from customer’s point of view. The use of service quality as a competitive edge has been extensively addressed in marketing literature.

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