Environment taking major influences in the development of the service business sector. The environmental factors are: consumers, competitors, technology, innovation, globalization, economics, government and social culture. Among these environmental factors, the development of technology (information and communication) by many regarded as the environmental factors that most affect the service sector. This technology helps the service sector to manage its business efficiently in accordance with the spirit of cost cutting.
Besides the growing services sector also triggered some of the driving factors are: the increasing consumer demands on quality, cost reduction, service delivery, internal customers, increased production and development of Nonprofit organizations.
Unique characteristics possessed by the services has a major essence of the need for direct employee involvement in the delivery process, so that employees become the spearhead of the successful services. But with the dependence on technological developments can be eliminated employees and direct customer contact can be reduced very costly. For example: business banking at the moment using an ATM (Automatic Teller Machine), internet banking, etc. to help consumers make self-service a variety of purposes related to their finances.
Consumer’s decision to choose or buy services is highly dependent on how service providers can identify factors that influence in each phase of the consumer decision process. Consumer decision process is not as simple as imagined, but through various stages starting from the introduction of needs, information search, alternative evaluation, purchase decision and post-purchase decisions.
Consumer behavior can be influenced by cultural factors. Adjustments to the culture is becoming very important due to the emergence of market opportunities in the era of globalization. For these service providers must pay attention and begin to make adjustments to cultural differences across the border market.
Treat as an individual, not as a number, it is the heart of customers everywhere. In other words, treat customers with good and proper manner so as to meet the needs well. If it can be done then the service provider will be captivated the hearts of customers, then the profits and gains only a matter of time. Thus, service providers must begin to pay attention to the importance of segmentation in an effort to captivate consumers by meeting the needs well. To strengthen market segmentation, targeting needs to be done to be able to target more specific consumer groups.
The advantages of a product depends on the uniqueness and quality of service demonstrated by these services, the Service must be market-oriented specification and attention to customer needs and wants. To measure how much consumers can feel the quality of the services and it is suggested five dimensions of reliability, assurance, empathy, tangible and responsiveness.
Next articles, lets have a look at marketing strategy for service business.
Tags: automatic teller machine, business banking, business sector, consumer behavior, consumer decision, consumer demands, cultural differences, employee involvement, environmental factors, internal customers, internet banking, market opportunities, purchase decision, purchase decisions, quality cost, service business, service sector, social culture, technological developments, technology innovation