Service Industries – How They Are Compared To Other Industrial Sectors

A service is essentially a transaction where no physical products are transferred from the purchaser to the vendor. The seller advertises the service and the buyer makes a counter offer. The seller then either accepts the counter offer or offers more money than the counter offer. The buyer’s willingness to accept the deal holds to be proved by the willingness of the client to make the purchase.

Most commonly, public services are those which society as a whole typically pays for. The seller, however, can specify which goods or services the person must purchase, and that the service is basically intangible, i.e., not transferable, in the same way as the tangible personal property. Public services include health care, education, roads and ports. Intangible assets include, but are not limited to, patents, proprietary information, office furniture, art and design, brand names and services like accounting, law and banking. A physical product like a car is an excellent service to the buyer; the mere fact that the car exists, or is being used, is an excellent service to the seller.

On the other hand, if the service provider is able to prove that the sale of the intangible asset is more valuable than the sale of the tangible asset, the sale price will be a less desirable result for the customer. In this case, the customer service provider is effectively being penalized for the increased value of the intangible good or service. Conversely, if the customer service provider were to show that the sale of the intangible good or service results in less than the cost of production, the customer service provider would arguably not be receiving a return on investment for the increased value of the intangible good or service.

To provide a company with an optimum value proposition, it is necessary to create value by serving the customer needs in ways that maximize customer satisfaction and customer retention. The ideal solution is to service the customers effectively, identifying and satisfying their unique service needs. If a service provider were to simply rely on its employee experience, then this would not be sufficient for the optimal provision of customer service. An ideal customer service provider must have both an employee understanding of its customer needs and also an understanding of the value of the unique solutions it provides. If a business was able to provide employees who understood these principles, then it would be able to effectively and proactively provide excellent employee service.

In planning a marketing program, it is important to have a clearly defined set of expectations as to what the company is hoping to achieve in terms of value creation through the increased sales of the products, the more efficient use of existing resources, and the betterment of the overall business performance. It is necessary to identify where the company wants to go as far as measurable quality, and the incremental value provided by the intangible assets and the value of the value added work force. The goals and objectives need to be reviewed at every stage to ensure that the activities are aligned with this plan. Once this has been done, a clearly defined plan to achieve these goals and objectives can be developed, implemented, and managed.

Finally, we believe that the discussion of service industries should also include a discussion of the value of the physical goods supplied by the service provider. Physical goods, such as the tangible items that are seen to constitute the service that customers receive, such as the provision of information, the provision of equipment and tools, and the provision of the goods of other kinds, are often the core of the relationship between the service provider and the customer. Physical good value is often difficult to measure, but the efforts made to improve the quality, reliability, and performance of these physical goods have an effect on the overall value proposition of the enterprise.