Services industries are important in building economic growth.Write your essay by addressing the following:- Describe what various writers -at least THREE (3) - identify as the need for organisations...

Services Industries are Important in Building Economic Growth
Service has a crucial role to play in the economy today and it will not be exaggeration to
say that the economy has shifted from a product driven economy to service driven.
Earlier, the products used to be the most essential element of a business with or without
a little bit of service. This has seen a drastic change over the years and service has
een an integral part of the business and if we remove service from a product it
ecomes less worthy. Also, some pure services have crept in and the relevance of
services has seen a drastic change. Today, a product is a complete package once it
gets combined with a service. The companies cannot choose to avoid it as everyone is
practicing the same and avoiding would mean to give chance to others to take away
your pie from the market.
Services have become a strategic tool of marketing to maintain good relationships with
the customers and making them to do repeated purchase. The cu
ent cut throat
competition in the market place has enabled customers to be more demanding and the
argaining power of the customers has gone leaps and bounce. There are companies
which club service with their products to gain competitive advantage. The idea is to
ack up product with service to get preference from the customers. Today, customers
have a high demand for value-added products and a product combined with service is
nothing but the same. (Avkiran, N.K., 2008).
The differentiation has been another motivator behind the service. Putting “extra” with
the product to create a differentiated product is the key factor behind service offerings.
The companies want to play with the perception of the customers and make them feel
that they are getting extra realizing that they always tend to go for a product which
offers something extra. However, the customers do not get anything concrete but just
the service but it is the perception of their mind which makes them think so and they are
inspired to buy that product. The need of service development arises once an
organization feels that a tangible product needs back up to create differentiation.
Service with a product is nothing but value addition to the product which increases the
value of the product. If we detach the service from the product, the product will have
less importance. (Carman, J.M., 2006).
Fundamentally, a product has different characteristics from a product and these
differences have great implications on the service economy. The products are very
much prone to be copied while this is not the case with the services. The...