HTH 102 Chapter Notes - Chapter 1: Intangibility, High Tech, Information Processing

• School: Ryerson University
• Department: Hospitality and Tourism Management
• Course: HTH 102
• Professor: Christopher Gibbs

Document Summary

Powerful forces that are transforming service markets: government policies. Changes in regulations: new rules to protect customers, employees, and the environment, new agreements on trade in services, social changes. Increased desire of buying experiences vs. things: rising consumer expectations, more affluence, more people short of time, rising consumer ownership of computers, cell phones, and high-tech equipment, growing but aging population. Emphasis on productivity and cost savings: manufacturers add value through services and sell services, more strategic alliances and outsourcing. Focus on quality and customer satisfaction: growth of franchising, marketing emphasis by non-profits, advances in information technology, globalization. Services are economic activities offered by one party to another. Often time based, these activities bring about desired results to recipients, objects, or other assets. In exchange for money, time, and effort, service customers expect value from access to labor, skills, expertise, goods, facilities, networks, and systems. However, they do not normally take ownership of the physical elements involves.