Lecture 4 Services
The importance in understanding Services lies in the fact that it accounts for 78% of
GDP and 85% of employment for UK in the year 2012. The growth has been very
dynamic as it accounted for just 46% of GDP and 44% of employment (UK) in the
year 1948. Common examples of services include wholesale and retail trade,
education and health facilities etc.
What is a Product (Some vital definitions) –
Corey (1975: 121) stated: “…the product is what the product does: it is the
total package of benefits the customer receives when he buys”.
Kotler (1980: 352) defined a product as “. . . simply the packaging of a
problem-solving service”.
Grönroos (1998: 352) defined a product as a “…more or less preproduced
package of resources and features that is ready to be exchanged.”
For Vargo and Lusch (2004: 9) products are “. . . best viewed as
distribution mechanisms for services”
NOTE: It is important for us to understand what a product is because two major
value-creators for which consumers pay money are products and services. It is said
that whatever cannot be classified as a product is called a service.
PREVIEW SECTION
What is a Service (Some Vital Definitions) –
A service is a deed, a performance, an effort “ (Rathmell, 1966)
The importance in understanding Services lies in the fact that it accounts for 78% of
GDP and 85% of employment for UK in the year 2012. The growth has been very
dynamic as it accounted for just 46% of GDP and 44% of employment (UK) in the
year 1948. Common examples of services include wholesale and retail trade,
education and health facilities etc.
What is a Product (Some vital definitions) –
Corey (1975: 121) stated: “…the product is what the product does: it is the
total package of benefits the customer receives when he buys”.
Kotler (1980: 352) defined a product as “. . . simply the packaging of a
problem-solving service”.
Grönroos (1998: 352) defined a product as a “…more or less preproduced
package of resources and features that is ready to be exchanged.”
For Vargo and Lusch (2004: 9) products are “. . . best viewed as
distribution mechanisms for services”
NOTE: It is important for us to understand what a product is because two major
value-creators for which consumers pay money are products and services. It is said
that whatever cannot be classified as a product is called a service.
PREVIEW SECTION
What is a Service (Some Vital Definitions) –
A service is a deed, a performance, an effort “ (Rathmell, 1966)
