Published by:
Harvard Business Publishing
Length: 9 pages
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Abstract
As the service industry segment of the economy burgeons, the drop in productivity in the sector becomes more serious. The problems encountered in trying to solve this dilemma have been rooted in management''s ignorance of consumer attitudes and behavior. Seven suggested steps to avoid insensitivity to consumers are: develop customer trust, understand customers'' habits, pretest new procedures and equipment, understand the determinants of consumer behavior, teach consumers how to use service innovations, promote the benefits and simulate trial, and monitor and evaluate performance. It behooves the service industry to adopt a marketing perspective that involves consumers in product development and seeks to educate them to newer and more productive processes.
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Abstract
As the service industry segment of the economy burgeons, the drop in productivity in the sector becomes more serious. The problems encountered in trying to solve this dilemma have been rooted in management''s ignorance of consumer attitudes and behavior. Seven suggested steps to avoid insensitivity to consumers are: develop customer trust, understand customers'' habits, pretest new procedures and equipment, understand the determinants of consumer behavior, teach consumers how to use service innovations, promote the benefits and simulate trial, and monitor and evaluate performance. It behooves the service industry to adopt a marketing perspective that involves consumers in product development and seeks to educate them to newer and more productive processes.