Managing products is very simplistic however managing services is complex as the product that is being managed is intangible in nature. In such a situation the customer has to be convinced about the functionality and the importance of the service product and how it can add value for the customer.
Services management as a result is mostly based on customer response, perceptions and the quality of the service being provided. In most cases multiple services are bundled together to form a package which is usually value added to appeal to the customer. In such a product offering the quality is of extreme importance as it provides the basis of the customer perception of the service based product.
“Statistics such as those provided by the Technical Assistance Research Programme reports and service industry journals indicate that customers will remain loyal to a particular company, organization or brand name product only for as long as they are provided with fast and efficient service. While customers do not expect perfection, they do expect problems to be corrected promptly.”(Deszca & Ament, 1992)