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Service Management - Essay Example

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Summary
Grönroos (2000) observes that the service industry generated an additional value in the GDP of most developed countries by more than 10% in 3 decades from 1960. He further notes…
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Service Management
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The organizations that deal in banking, hospitality and consultancy amongst others are all included in the services sector (1). The importance of services in the industrialized economies has constantly been ignored. There are many services in that are not taken in to account, mainly in the agricultural and the industrial sector, which are not viewed as contributors of services to the economies. However, they contribute to the service sector in an unseen manner (2). Consumers are usually concerned with the amount of satisfaction derived from the services offered.

It is important for service providers to understand that value is of utmost importance if they have to excel in the business of service marketing. The service perspective is important in the accomplishment of satisfaction amongst the consumers. This is an aspect of marketing whereby marketers ensure that a number of services are provided for the customers to make a choice. This is important for the business in order to ensure that it has a competitive advantage over other service providers, thereby increasing the sales volume.

Service perspective involves the engagement of people who are capable of offering the most efficient services to customers in order for them to get motivated to come back for more. This is a significant tool for ensuring that customers build trust in the service provider. Apart from increasing the competitive advantage of the service provider, it helps in encouraging the customers to buy more and also encourage new customers to the business. The reputation of the business is improved, and customers do not complain in regard to the services offered to them.

Adopting the service perspective is significant in reducing the cost of production, since acquiring new customers is usually difficult and costly. It therefore plays a significant role in maintaining

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