Marketing Case

I agree with the statement that the success of firms that sell services rather than products is highly dependent on the personnel that provides those services. My discussion below will focus on identifying the reasons why personnel plays a critical role in ensuring that success.

The difference between goods and services is intangibility. A product such as a manufactured good is tangible and can be stored. In contrast, a service cannot be seen or touched and it is consumed as it is produced. This difference makes it difficult to evaluate services compared to products. As a result, personnel that provides services within a selling firm is essential in ensuring that customers are satisfied.

Good service is essential for firms to gain a competitive advantage and it will translate into acquiring new customers, doing more business with current customers and loss of fewer customers. Customers are the ones who ultimately decide about the criteria that make good quality service. To them, good quality service means reliability, that is, the ability of the firm personnel to perform the service promised in an accurate and dependable manner.

Another quality standard includes how responsive the personnel is to help the customers in general or when there are any problems as well as how promptly the service is provided. Assurance can be identified as another standard. Customers want to deal with personnel that is knowledgeable, courteous and has the ability to convey trust and confidence. Customers need to know that they are being treated fairly and that they are receiving individualized attention and if they perceive otherwise this could potentially mean loss of the customer for the firm. As a result, firm personnel must take all the steps necessary in demonstrating the customer is being treated fairly and that they can trust the firm.

Firm personnel does not always provide flawless service; however, the way firm personnel responds to customers' problems is fundamental for their retention. First personnel and the firm as a whole should make it easy and encourage customers to provide feedback on service problems or about the service received in general on a regular basis. Personnel should take prompt actions to solve any service problems, thus expressing a sense of urgency and concern in taking care of the customers' needs. This may also help in strengthening the firm's relationship with the customers.

Good service reliability, assurance, responsiveness as mentioned above allow a firm to compete because it gives the firm the reputation for caring about its customers and providing good service.