Role and Importance of Service Marketing in Modern Economy

Abstract

The interest in studying the economics of long-term consumer relations has grown over the past few years. Long-term relations are relations where both participating sides learn how to best develop mutual interaction, reducing the costs of this relationship for consumers just like for supplier and service provider. Mutually satisfactory relations make it possible for consumers to avoid significant transaction costs that change of supplier or service provider involves and for suppliers to avoid incurring of unnecessary quality expenses. This paper deals with the marketing novelties in modern economy bringing more details about the problem of the service business. The key resource i.e. the most valuable company asset in the modern service economy is the consumer. Consumer’s satisfaction represents, for any type of organization, the crucial strategic weapon. The main problems that significantly affect a change of marketing philosophy in the field of services include, amongst other, the role of the consumer in the process of service providing, as an accessory to its production. This paper speaks about the role of marketing in the modern economy, where, given the growingly important role of emotions, a special emphasis is placed on consumer’s satisfaction as one of the key challenges of the modern market.