1.1 Explain how services contribute to a country’s economy
It is the engine of economic growth in developed and most developing
countries
Services are becoming the mainstream focus of marketing
Service sector already accounts for almost two-thirds of the value of the
global GDP
Most new job creations comes mainly from services
Importance of services in the Asia-Pacific region:
Output of services accounts for 60-80% of the GDP of highly developed
countries such as Australia, New Zealand, Japan and Singapore
Accounts for 85% of total employment in Australia
Investment in services infrastructure is important in developing
countries such as Vietnam and Papua New Guinea
Key to the economies of developing nations (Thailand, Malaysia, China
and Indonesia) which accounts for up to 50% of the GDP
China is Australia's largest services export market and the USA is
Australia's largest services import source
1.2 Define ‘services’
Services:
Any act, performance or experience that one party can offer to another
Essentially intangible and does not result in in ownership of anything
Processes (economic activity) that provide time, place, form, problem
solving or experiential value to the receiver
Something that may be bought or sold
1. Labour, skills, and expertise rentals
Car repair
Medical check-up
Management consulting
2. Rented good services
Boats
Fancy dress costumes
Construction and excavation equipment
, 3. Defined space and facility rentals
A seat in an aircraft
A suite in an office building
A storage container in a warehouse
4. Access to shared facilities
Theme parks
Golf clubs
Toll roads
5. Access and use of networks and systems
Telecommunications
Utilities and banking
Social online networks and games (e.g. League of Legends)
4 Processing categories of services
1.3 Explain how services create value for consumers
Value creation:
Customers expect to obtain value from their service purchase in
exchange for their money, time and effort
Value comes from a variety of value-creating elements rather than
transfer of ownership
Firms must create and deliver services that are perceived by customers
to provide value
Developing and delivering customer value:
It is the engine of economic growth in developed and most developing
countries
Services are becoming the mainstream focus of marketing
Service sector already accounts for almost two-thirds of the value of the
global GDP
Most new job creations comes mainly from services
Importance of services in the Asia-Pacific region:
Output of services accounts for 60-80% of the GDP of highly developed
countries such as Australia, New Zealand, Japan and Singapore
Accounts for 85% of total employment in Australia
Investment in services infrastructure is important in developing
countries such as Vietnam and Papua New Guinea
Key to the economies of developing nations (Thailand, Malaysia, China
and Indonesia) which accounts for up to 50% of the GDP
China is Australia's largest services export market and the USA is
Australia's largest services import source
1.2 Define ‘services’
Services:
Any act, performance or experience that one party can offer to another
Essentially intangible and does not result in in ownership of anything
Processes (economic activity) that provide time, place, form, problem
solving or experiential value to the receiver
Something that may be bought or sold
1. Labour, skills, and expertise rentals
Car repair
Medical check-up
Management consulting
2. Rented good services
Boats
Fancy dress costumes
Construction and excavation equipment
, 3. Defined space and facility rentals
A seat in an aircraft
A suite in an office building
A storage container in a warehouse
4. Access to shared facilities
Theme parks
Golf clubs
Toll roads
5. Access and use of networks and systems
Telecommunications
Utilities and banking
Social online networks and games (e.g. League of Legends)
4 Processing categories of services
1.3 Explain how services create value for consumers
Value creation:
Customers expect to obtain value from their service purchase in
exchange for their money, time and effort
Value comes from a variety of value-creating elements rather than
transfer of ownership
Firms must create and deliver services that are perceived by customers
to provide value
Developing and delivering customer value:
