What is the service economy?
Services economy concerns the financial concept that says the service is increasingly important in the product offer. While most manufacturing companies continue to sell tangible products, the intangible service that integrates into the product is becoming a market differentiator. The concept that products and services are interconnected and that the service is an increasingly important part of the product is called product service. The merger of products and services is said to be on continuum of services.
Information Revolution is a key driving force of service or service system. Computer hardware and software manufacturers, as well as software application developers, now consider the service an integral part of the product menu. These companies usually promote their "solutions" that consist of products and services that cannot be separated.
Marketing services consist of marketing relations value. This type of marketing may be based on a reputation or relationship rather than the product characteristics. CanBeing difficult to compare the offers of two or more suppliers, and the services offer can usually not be returned. These are features that distinguish services marketing from product marketing.
shift towards the economy of services brought other changes in the macroeconomic environment. Current accounting methods used by organizations of the public and private sector have been developed before serving products and are therefore more suitable for products based on products. Accounting reform measures have been proposed, which more precisely reflect the current reality of the service economy.
One of these reforms is accounting full of costs, which concerns a method that takes into account not only the economic costs of the proposal, but also the social environment and other intangible costs. Full cost accounting is sometimes referred to as total cost accounting. Monetary reform that would change the way in which money is used in the economy may be budA long -term product of the service economy.
The service economy also affects workers because companies are moving from regular, long -term employment to inactivity or work that is occasional or uncertain. Workers can be hired on the basis of a contract or freelance contract and can work from home or telecommunications. They work and are paid, only if necessary. The advantage for the company is that the cost of work is more related to production. However, workers have reduced employment and negotiation of authority.