Classification of Services According to the Fields of Reproduction Process

In fact, there are many ways to classify services, this article only mentions some specific classifications as follows:

a. According to the fields of the reproduction process

The reproduction process includes three stages in the traditional order: production, circulation (trade) and consumption. The order according to the Marketing perspective is the opposite because all production activities of the market economy must start from the needs of consumers. Therefore, all services are divided into three stages: consumer services, trade services and production services (Diagram 1.1). Each of these areas includes specific services.

Figure 1.1: Classification of services according to areas of the reproduction process

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social output

(Source: International Marketing Textbook, Foreign Trade University [25]) Basically, this classification is simple but promptly summarizes the types of services, showing a relatively clear system. However, there is no

No classification is complete and exhaustive, it is only relative.

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b. According to the implementation method

McGraw Hill divides all services into two large groups: services performed by machines and services performed by humans (direct human labor). Each of these groups is divided into subgroups. For example, services performed by machines include: automation, machines combined with humans (MM combined with CN), control systems. From there, these subgroups are divided into specific services (diagram 1.2).

Figure 1.2: Classification of services by implementation method

(Source: International Marketing Textbook, Foreign Trade University [25])

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The advantage of this classification is to highlight the technological content or technological characteristics of each service, thereby providing a basis for evaluating service quality and pricing services.

c. Some other classification methods

In addition, there are many other classifications such as:

- According to business purposes, can be divided into:

• Services for profit purposes

• Services for non-profit purposes (humanitarian purposes)

- According to business activities, it can be classified as:

• Basic services

• Additional services, support…

In general, there are many different ways of classification based on each selected criterion. Depending on the research objectives or actual business objectives in each specific case, the appropriate classification method can be selected.

1.1.4.2. The role of services [25] & [29]

a. The role of services in the world economy

Nowadays, the service sector is developing strongly and plays a leading role in the economy. Services meet demand very quickly because production and consumption take place simultaneously, the overall economic and social efficiency is higher, and the business environment is more dynamic than that of ordinary goods. Since the late 1990s, the service sector has accounted for a high proportion of the GDP of many industrialized and developed countries. For example, in 2000, the proportion (%) of the service economic sector in the GDP of some countries was:

UK: 78% France: 72%

Japan: 69% USA: 77%

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During economic development, the service sector often expands rapidly and attracts a large number of jobs. In the US, the proportion of labor and employment in the service sector in 1994 also accounted for about 75% of total new jobs. This figure in other developed countries such as the UK, France, Italy, Japan, etc. is also approximately the same as the US, especially in sales jobs. In the world market, according to UNCTAD, service trade accounts for about 1/4 of the total value of world trade today. In the 1990s and early 21st century, the growth rate of international service trade was often quite fast and reached an average of 12-15%/year.

In general, in the current vibrant globalization trend, services play an increasingly large role in the economy of developed countries, especially in new industries such as telecommunications and electronics. The role of services in developing countries, although still low, is increasing rapidly following the general trend of the world.

b. The role of service in Marketing

Services play a very important role in Marketing. It can be said that modern telecommunications technology and the global Internet are the ideal conditions to strengthen the increasingly important role of services in international Marketing. With these technologies, the time and space differences of services are no longer an obstacle. The service environment becomes more dynamic, the quality and efficiency of services in Marketing will continuously improve.

1.2. OVERVIEW OF BANKING SERVICES

1.2.4. Concept and specific characteristics of banking services

According to David Cox in his work " Modern Banking ", banking services are understood in the following sense: While some banks specialize in meeting the needs of special customer groups such as companies or small savers, clearing banks provide a range of services aimed at

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meet the financial needs of all types of customers from the smallest individuals to the largest companies . [2]

From the above concept, it can be understood that banking services are the satisfaction of all reasonable financial needs of all customers - it has the effect of supporting the effective business operations of the bank.

In terms of characteristics , banking products and services are presented in the form of services, so they also have the characteristics of a service product, and at the same time, they also have differences. These characteristics have significantly affected the management of services, especially the organization of marketing activities of banks. [25] & [22]

a. Role of Customer (CR)

Talking about this feature is essentially talking about the customer's cognitive role in three issues:

- The role of customer perception of service quality : Service development is due to the increasing demand of consumers. Services themselves are intangible and difficult to evaluate, especially banking services. Some banking products and services require high expertise and absolute trust such as deposits, money transfers, and loans. These requirements make it more difficult to evaluate the quality of banking products and services, even when customers are using them. Therefore, customer perception of service quality and trust in the service is the condition that determines the fate of the service.

- The role of customer perception in the service delivery process : High service quality but if customer perception of the service is not good, it will reduce service quality, the service will not have high value in the eyes of that customer.

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