1 SERVICE CONCEPTION
Services are all around us, people use service every day. The growth in the service economy is widely recognized and in-creasingly contributes to the economic development of many regions. Services are diverse and often been difficult to de-fine. Most frequently, a service has been described as an act, a process and a performance. Services are also defined as economic activities that create “added value” and provide benefits to customers.
In the past, selling products are separate from selling service. When consumers bought food, clothes or car, they simply bought the tangible things they wanted and did not have any added value. Since the competition is stronger and fiercer, it’s hard to separate product from its service. If companies only sell their goods to customers without any attached services, they will lose their customer easily and failure is inevitable. For example, when buying computer, they might be attracted by the store where looks professional and they can get full in-formation as well as guidance from helpful staff about prod-ucts, a hotline service for installing the programs and so on. Company must pay attention to it and invest more on distri-bution channel to provide more good service to customers.
Service business offers intangible value to buyers rather than tangible goods. It includes a wide range of industries such as hospitality, tourism, art, healthcare, education and so on. “Some service such as charities, arts operate in non-profit or-ganization, other service such as hotel, financial service oper-ate in competitive, profit –making environment. Many ser-vice industries such as tourism include large international companies and small independently and locally operated companies. Larger international service companies are airlines, telecommunication, banking, hotel chain. Smaller operations are independent restaurant,