The literature review provided that service based company is largely driven by the quality and the high standard if service it provides to its customers. The service itself is tangible but with and without a direct relation to a physical product, can greatly influence the customer satisfaction level of the consumer. Service industries like the airline industry have certain characteristics which pertain to the facts that “the “service” product, cannot be stored, is difficult to demonstrate, cannot be resold, and closely links the production and consumption processes.
Thus, much of the thinking that has been developed to aid the effective running of manufacturing industry is largely redundant when it comes to examining service management. The social linkage between producer and consumer lies at the heart of the process. The “quality” of the service lies in the perceptions of the consumer about how the interaction is managed. These interactions or “moments of truth” as they have been called are at the heart of the success of a service business. The critical factor in service industries is that customers do deal with a particular organization, a bank, insurance company, or garage; because they have gained an impression from the people in that company that they can help. It is this belief that determines the choice of whom they do business with. Once the customer has formed an impression of the helpfulness of an organization, the price or the precise specification of the product becomes of second order importance.” (Bruce, 1987)
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