2.2.2 Importance of Service

2.2.2. Importance of Service

“Service”, though it had been around since the first business transaction began, is not identified as important till the beginning of 1980’s . In the past, products were considered more important than services.(Davidoff, 1994). Davidoff added that in later stage, many companies focus more attention on their services to consumers and to improve the quality which is directly involved in delivering of the service. This is due to the product centric market became a consumer centric market. (Gummesson,1991).

Russel Achoff  has argued, that this shift toward a service-centered economy doesn’t bring out the fact  that fewer goods will be produced and consumed. What it does mean is that smaller number of people will be needed to produce manufactured goods, but a considerable number of peoples’ service will be used to serve the manufactured goods   to a targeted customer. That implies the impotence and the development in services.

Today Service is where the jobs are; where the energy is; where the opportunities are (Albrecht and Zembe, 1985). Since past three decades, the increase of the employees in service sector is significant all over the world. Eg:  40% in Japan and 60% in USA also 70% of the GNP is coming from the service sector in the USA and several of the EC countries (Bergman and Klefsjö, 1994). Therefore the service sector plays a major role in any economy.