2. An Introduction in Service Sector World wide GNP: over 58% Services account for: USA over 70% of GDP Japan over 58% of GDP European Community over 60% of GDP Hong Kong over 85% of GDP on average

3. Sectoral Employment (Q.1 2001)

4. Hong Kong’s Economic Achievement The world’s freest economy The world’s most service-oriented economy The world’s 2nd highest per capita holding of foreign currency The 2nd largest source of outward foreign direct investment in Asia The world’s 7th largest foreign exchange centre and has a daily turnover of US $80 billion (Sources: www.tdc.org.hk; The Servicing Economy)

5. From Old Economy to New Economy Old economy: wholesaling, retailing, trading –employment: over 30% of labor force –rate of increase in salary compared with 1992: 10% New economy: finance, insurance, computer –employment: below 15% of labor force –rate of increase in salary compared with 1992: 15.6% 1st quarter in 2000: –financial industry: grow by 136.8% –trading: grow by 11.5%

6. Some Quotations about Services Marketing “Everyone has become better at developing products. The one place you can differentiate yourself is in the service you provide.” (Henkoff cites an US CEO, 1994) “In most industries, providing quality service is no longer simply an option. The quick pace of developing technologies and increasing competition make it difficult to gain strategic competitive advantages through physical products alone.” (Zeithaml and Bitner, 2000)

7. Service Characteristics Heterogeneity –difficult to achieve standardization of output in services Intangibility –performances and experiences, depends on consumers’ judgments –“anything that you cannot drop on your foot”

8. Inseparability –simultaneous production and consumption of service Perishability –services cannot be saved

9. P’s Issues in Services Product Price Place Promotion People Process Physical Evidence They all influence customers’ initial purchase decision, the level of satisfaction and repurchase decision.

10. How to Deliver Quality Services Consistently? The Gaps Model of Services Quality will be adopted and discussed