Elgar original reference
Edited by Roland T. Rust and Ming-Hui Huang
Chapter 8: CRM metrics and strategies to enhance performance in service industries
The importance of the service sector is undeniable. In fact, services now dominate, making up about 70 percent of the aggregate production and employment in the Organisation for Economic Co-operation and Development (OECD) nations and contributing close to 75 percent of the gross domestic product (GDP) in the United States (Bartash 2012). In the past few decades, many leading firms have added services to their existing product offerings in an attempt to provide total customer solutions, and, thus, to improve their competitiveness and profitability (Lusch et al. 2007; Sawhney et al. 2006; Wise and Baumgartner 1999). A service-centered view of marketing implies that marketing is a continuous series of social and economic processes that are largely focused on operant resources with which the firm is constantly striving to make a better value proposition than its competitors (Vargo and Lusch 2004a). Generally, the prototypical characteristics that have been identified as distinguishing services from goods include: intangibility, heterogeneity, inseparability, and perishability (IHIP). More recently, however, scholars have begun to question the validity and relevance of these four characteristics in distinguishing services from goods. For example, Vargo and Lusch (2004b) contend that the IHIP characteristics are remnants of the goods-based marketing model and lead to inappropriate normative strategies for service marketers. Lovelock and Gummesson (2004) also demonstrate that the IHIP paradigm fails to effectively and universally distinguish services from goods.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.