Quality Management in Service Industries
Quality Management in Service Industries
Part 1. Introduction
In present time, there is a worldwide trend that service industry occupies a dominant position in the economy in the majority of developed countries and areas. Without a doubt, major changes in government policy and business transactions have a significant influence on the flourish of services industry. However, nowadays the increased value of services also brings big pressure on marketers to implement different strategies because there are big variances in the features of service and physical product. To start with, this essay will focus on the reasons why is quality such an important issue in the marketing of services. Furthermore, the reasons why is quality more difficult to manage in service industries than it is in the case of physical goods will also be discussed in this essay.
Part 2. Basic Definition
I. Quality
In manufacturing, a measure of excellence or a state of being free from defects, deficiencies, and significant variations, brought about by the strict and consistent adherence to measurable and verifiable standards to achieve uniformity of output that satisfies specific customer or user requirements. ISO 8402-1986 standard defines quality as "the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs."
II. Services
As one kind of products in the market, “services are deeds, processes, and performance provided or coproduced by one entity or person for another entity or person. Services as products represent a wide range of intangible product offering that customers value and pay for in the marketplace.”(Bruhn & Georgi, 2006) For example, haircuts, consulting, training and travel are representative services. In present society, there is a staggering increasing rate in services industry, which is defined as “all economic activities whose output is not a physical product or construction, is
Part 1. Introduction
In present time, there is a worldwide trend that service industry occupies a dominant position in the economy in the majority of developed countries and areas. Without a doubt, major changes in government policy and business transactions have a significant influence on the flourish of services industry. However, nowadays the increased value of services also brings big pressure on marketers to implement different strategies because there are big variances in the features of service and physical product. To start with, this essay will focus on the reasons why is quality such an important issue in the marketing of services. Furthermore, the reasons why is quality more difficult to manage in service industries than it is in the case of physical goods will also be discussed in this essay.
Part 2. Basic Definition
I. Quality
In manufacturing, a measure of excellence or a state of being free from defects, deficiencies, and significant variations, brought about by the strict and consistent adherence to measurable and verifiable standards to achieve uniformity of output that satisfies specific customer or user requirements. ISO 8402-1986 standard defines quality as "the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs."
II. Services
As one kind of products in the market, “services are deeds, processes, and performance provided or coproduced by one entity or person for another entity or person. Services as products represent a wide range of intangible product offering that customers value and pay for in the marketplace.”(Bruhn & Georgi, 2006) For example, haircuts, consulting, training and travel are representative services. In present society, there is a staggering increasing rate in services industry, which is defined as “all economic activities whose output is not a physical product or construction, is
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