Republic of the Philippines-

Bulacan State University Bustos Campus

Poblacion, Bustos, Bulacan

The Service sectors : Supersectors and ethical consideration

(Group 1)

In partial fulfillment of the requirements Project & Activites

(MM Elec 401 )

Submitted by :
De Dios, Joseph Ivan Mari M.
Dino ,Daniel
Gomez, Bianca Jane B.
Gonzales , Jules
Rubio, Renalyn R.
Santos, Czarina Marie B.,
Simbulan ,Jerome

Submitted to :
Mrs. . Susan Eugenio

Course & Section:

BAMM -4A

Date :
September 7 ,2023
 The Service Sector , Supersectors and Ethical Consideration
A. Introduction
What is a “Service”?
‘A service is any activity or benefit that one party can offer to another, which is essentially
intangible and does not result in the ownership of anything. Its production may or may not be
tied to a physical product.’ – Kotler, Armstrong, Saunders and Wong
Services are nonphysical and intangible in nature and can also satisfy a need just like goods do.
Financial services – Banking, Telecom, Courier, Hotel, Airline, Train, Doctors, Lawyers, and
Healthcare are all examples of services.
Marketing, on the whole, can be divided into goods marketing and services marketing.
Although according to Philip Kotler, besides goods and services, a marketer also markets eight
other entities like Events, Experiences, Persons, Places, Properties, Organizations, Information
and Ideas; yet it is generally clubbed together and is widely known as goods and services. In
marketing, services marketing essentially deals with the products, which are intangible in nature.
Services are created through a direct interaction between the service provider and the customers.
Goods are physical, tangible articles, while Services are nonphysical and intangible in
nature and can also satisfy a need like goods. Financial services – Banking, Telecom, DTH,
Courier, Hotel, Airline, Multiplex, Train, Doctors, Lawyers, Healthcare and Management
Consultancy are all examples of services. With the advancement in the economy, a country
moves from a goods producing country to a service-oriented country. For example, USA, which
is one of the most developed countries in the world, is having a 21% – 79% mix of goods and
services.
A service business is one in which the perceived value of the offering to the buyer is
determined largely by the services provided to him than the products offered. This includes the
business of all intangible services delivered to the customer. Some of the tangible services where
both the goods and services are provided to the customer, like restaurants and supermarkets, also
come under the purview of the services marketing. The spectrum of services range between the
degree of intangibility and tangibility of the offerings delivered to the user. Some offerings are
clearly services like enjoyment of movie, art exhibition or an athletic event.
- The services sector is composed of a diverse range of industries from retail and business
services to education and health. Some services are used as inputs in production, while
others have direct impacts on human capital development.
- There is a common perception that the Philippines is a services economy because of the
significant contribution of the sector. In 2018, services accounted for 60 percent of Gross
Domestic Product (GDP) and almost 57 percent of employment. At the regional level
however, the share of services in Gross Regional Domestic Product (GRDP) varied from
84.5 percent in the National Capital Region (NCR) to 36 percent in Autonomous Region
in Muslim Mindanao (ARMM). In terms of spatial distribution, more than 50 percent of
total services value added came from the NCR.
- Service are embodied in goods production, either as inputs (such as design, marketing, or
distribution costs included in the value of a good) or as trade enablers (such as logistics
services or e- commerce platforms).
- The services sector accounts for a large share of the economy not just in advanced
countries but across different income groups. They are crucial to agriculture,
manufacturing and all other economic and social activities such that an inefficient service
sector is like a prohibitive tax on a national economy (UNCTAD 2004). Services are
embodied in goods production, either as inputs (such as design, marketing, or distribution
costs included in the value of a good) or as trade enablers (such as logistics services or e-
commerce platforms). Thus, the productivity of services will be increasingly important
for the feasibility of manufacturing-led development (Hallward-Driemeier and Nayyar
2018; Bamber et al. 2017).
- Services also account for the largest share of employment particularly in high income
countries, both for female and male workers. In the Philippines, 3 out of every 4 female
workers are absorbed in the services sector.
- In the latest International Standard Industrial Classification (ISIC) Revision 4 on which
the Philippine Standard Industrial Classification (PSIC) 2009 is based, the following are
considered part of the services sector:
  Section G. Wholesale and retail trade; repair of motor vehicles and motorcycles
 Section H. Transportation and storage
 Section I. Accommodation and food service activities
 Section J. Information and communication
 Section K. Financial and insurance activities
 Section L. Real estate activities
 Section M. Professional, scientific and technical activities
 Section N. Administrative and support service activities
 Section O. Public administration and defense; compulsory social security Section P.
Education
 Section Q. Human health and social work activities
 Section R. Arts, entertainment and recreation
 Section S. Other service activities
The Philippines is often referred to as a country from which export of services rather than
manufactured goods is the principal engine for economic growth, as the share of the service
sector in gross domestic product has exceeded that of the industry sector since the mid-1980s.
Three major opportunities for leveraging service sector growth stands out. One is expanding the
scale and scope of the export and domestic markets for information technology-business process
outsourcing and other modern services in urban areas. Second is expanding tourism to foster
economic development across social groups and regions including poor and remote rural areas.
Third is enhancing the domestic prospects for Filipino technical, managerial, and entrepreneurial
talent so they will work in the Philippines rather than overseas. To take advantage of those
opportunities, there is a need for concerted efforts to improve infrastructure; logistics; broadband
connections; the power supply; and education, healthcare, financial, legal, and public
administration services and more generally the overall business environment for foreign
investors and local entrepreneurs.
In recent years, it has become popular to argue that service industries such as information
technology-business process outsourcing (IT-BPO) and tourism can serve as principal drivers to
achieving sustainable and inclusive economic growth for the Philippines and for other
developing countries (Ghani 2010, Pasadilla 2006). Some economic analysts, however, are
skeptical of this notion and assert that the industry and agriculture sectors are equally or more
important (Usui 2012), while others claim that developing IT-BPO and other modern service
industries has so far been limited in many parts of the world. How will IT-BPO and tourism
evolve in the Philippines in the 2010s and beyond? In addition, what are the prospects for
migration and its impact on exporting services? This study examines the dynamics of the
development of the service sector in the Philippines in a historical and comparative review based
on a synthesis of secondary information and interviews.
The performance of the Philippine economy has improved in recent years. The gross
domestic product (GDP) grew by 7% in 2012 and is currently projected to grow at 6% or more in
2013 and 2014 (ADB 2013). Among its strengths are its rich natural and human resources, yet
the historical records show that the country’s performance has lagged behind many of its East
and Southeast Asian neighbors as reflected in its inadequate infrastructure, its low domestic
investment rates, the comparatively modest growth in foreign investment and trade, the slow
pace of upgrading technology and alleviating poverty, and weaknesses in governance. In recent
years, however, there has been marked improvement in governance, macroeconomic balance,
and overall competitiveness rankings (WEF 2013b). The economy has profited from growth and
has benefited from increases in overseas workers’ remittances and from exports of services, but
overall advancements in manufacturing have continued to be minimal compared with the
People’s Republic of China (PRC); the Republic of Korea; and Taipei,China, for example. Also,
most of the decline in agriculture as a share of GDP and of employment has been absorbed by
the expansion of the service sector in major urban areas rather than by manufacturing.
Furthermore, the country is characterized by major disparities in economic development.
Some are very wealthy, and there is a growing urban middle class, but many parts of the country
are still economically disadvantaged. Much of the economy is dominated by a few oligopolies
while the development of small and medium-sized enterprises (SMEs) has been constrained by a
lack of financing and by red tape (World Bank and IFC 2013).
 For several decades, the Philippines has lagged behind East Asian and most Southeast Asian
economies in overall GDP performance as well as in life expectancy, poverty alleviation,
improvements in education, infrastructure investment, the diffusion of ICT, and other
development indicators. In the 2000s, GDP growth accelerated reaching an average of 4.9% from
2000 to 2010, which is close to the Association of Southeast Asian Nations (ASEAN) average.
This growth was partly fueled by remittances from Filipinos working overseas and by export
earnings from the semiconductor and electronics industry, and more recently by IT services and
BPO exports and by tourism. The semiconductor and electronics industry has largely focused on
assembling imported components, and export earnings vary substantially due to sharp
fluctuations in external demand. Moreover, manufacturing as well as agriculture and mining
have been characterized by low wages and value added per employee compared with IT-BPO
and other modern services.
The large service sector indicates that the growth in the agriculture and manufacturing
industry sectors has been slow. In fact, the overall growth performance of the service sector in
the Philippines has been moderate due to limited growth in the domestic market and in external
demand, low investment in infrastructure, education and other public goods, and the inadequate
overall business climate. Yet the performances of the different parts of the service sector vary
significantly.
The Philippines stands out because of the large number of Filipinos working overseas.
Remittances from overseas workers corresponded to 9%–10% of GDP from 2003 to 2012
making the Philippines one of the most remittance-dependent economies and largest recipients in
the world. Added together, IT-BPO services export revenue, tourism, and remittances accounted
for over 22% of GDP, or over 30% of the country’s foreign exchange earnings in 2011 (BSP
2013b, 2013c). This has major direct and indirect implications for the labor market. As of 2011,
export-oriented services combining tourism and BPO directly employed more than 4 million
workers and indirectly employed about 10 million assuming an employment multiplier of 2.5%.
Adding overseas workers, the number of Filipinos directly employed in exporting services can be
estimated at more than 10 million from 2010 onwards.
B. What is the Service Economy
What is the Service Economy
The service economy primarily focuses on providing services rather than creating physical
goods. It is the opposite of a manufacturing economy, which concentrates on producing tangible
goods, often relying on natural resources. For example, a country or company known for
manufacturing cars is a prime example of a manufacturing economy. In contrast, a service
economy sample offers services like taxi rides, tourism, or hotel accommodations. It also
encompasses a wide range of activities, from building roads and providing medical care to
catering and offering various professional services. That service economy is considered a crucial
global player, contributing over $20 trillion to the world's GDP and employing more than two
billion people worldwide. It offers diverse opportunities across various sectors and includes the
"soft parts" of the economy, comprising nine industry supersectors: education and health
services, financial activities, government, information, leisure and hospitality, professional and
business services, transportation and utilities, wholesale and retail trade, and other services that
will be discussed below.
Education and Health Services
The education and health services supersector consists of two subsectors: (1) the educational
services subsector; and (2) the health care and social assistance subsector. Firstly the educational
sectors include schools, colleges, universities, and training centers. In the U.S., education is
required until age 16 in all 50 states, and about one in four Americans is currently attending
some form of educational institution. This sector is the second-largest employment in the U.S.,
with 13.3 million jobs. In the Philippines, there are also a total of 1,949 higher education
institutions, serving 1.83 million students in private schools and 1.57 million in public ones. This
provides millions of jobs for Filipinos, mainly in teaching roles, which typically require at least a
bachelor's degree. For higher-ranking positions and administration, master's and doctoral degrees
are often needed. Job prospects in this field part of service marketing (Service Economy )
appear promising, especially in the U.S., as many educators are expected to retire soon as
forecasted creating more vacant jobs.
 The health care and social assistance sector covers a range of health services, including
hospitals, nursing care facilities, physician's offices, and home health care. It also includes social
assistance programs like family services, vocational rehabilitation, and emergency relief. In the
Philippines, you can find establishments in the health services sector, such as St. Luke's Hospital,
Maxicare, and HHC (Home Health Care). On the other hand, on the U.S. Health Services is
considered the largest industry in the private sector, providing 14 million jobs, with seven of the
top 20 fastest-growing occupations being in health care. Over time, the education and health
services supersector is expected to add 3 million jobs, making it one of the fastest-growing
industries. Within the healthcare industry, around 580,000 establishments exist, with physician's
offices making up about 77 percent. Surprisingly, hospitals comprise only 1 percent of these
establishments but employ 35 percent of all healthcare workers. While many healthcare positions
require less than a four-year degree, highly educated professionals like surgeons and
anesthesiologists are also part of this field. In the social assistance sector, jobs like home health
aides, personal and home care aides, and social and human service assistants are among the
fastest-growing occupations in the United States, with ample job opportunities due to turnover
and growth. However, it's important to note that average earnings in this subsector tend to be
low, largely due to part-time work and lower-paying positions.
Financial Activities
The financial activities supersector includes three sectors banking , insurance, securities,
commodities, and other investments. First, the Banking subsector involves safeguarding
money and valuables and providing loans, credit, and payment services. In the Philippines,
examples include BDO, BPI, and Metro Bank. In the U.S., banking employment is expected to
grow by 4 percent from 2006 to 2016. These sector trends include an increase significant the
number of office and administrative support workers, promising opportunities for bank tellers
and support staff due to job availability and turnover, and management roles filled by
experienced, technologically savvy professionals. On the other hand Insurance subsector
consists of companies that offer protection to clients against various financial losses, such as
those from fire, auto accidents, theft, medical expenses, storm damage, disability, and death.
Employment in the insurance industry is expected to grow by 7 percent from 2006 to 2016 in the
U.S. In the Philippines, major players in the insurance sector are Sunlife, Manulife, and Philam
Life. Key trends in the insurance sector include administrative roles typically requiring a high
school education, while sales, managerial, and professional positions demand college-educated
individuals. Moreover, the fastest-growing segment in the insurance industry is medical and
health coverage. The last is the securities, commodities, and other investments subsector
oversees the issuance, purchase, and sale of financial instruments like stocks and bonds.
Employment in this subsector is projected to surge by 46 percent from 2006 to 2016 in the U.S.
This substantial growth is driven by the rising demand for investments and securities to support
the global marketplace, along with an increased need for financial advice.
Government
The government supersector consists of three subsectors: advocacy, grantmaking, and civic
organizations; the federal government; and state and local government. The advocacy,
grantmaking, and civic organizations subsector is comprised of a multitude of enterprises
typically referred to as the not-for-profit sector. These organizations have impacted practically
everyone’s life in the United States and range from museums to Little League baseball to
homeless shelters to symphonies to help the community. In addition, other not-for-profit
agencies are focused on the intention to help the community with such global concerns (see
Global Services in Action). As well in the Philippines there are some non-profits like World
Vision and 4PS that provide service jobs.
The next sector federal government stands as the largest employer in public sector the
United States, employing approximately 1.8 million civilian workers. Its primary role centers on
delivering public services and overseeing a wide spectrum of areas that are crucial to the nation's
functioning. These areas encompass defenses, Treasury, Justice law enforcement agencies just
like the FBI and many others. In the Philippines, equivalent individuals working for the national
(Federal ) government are employed in various government agencies and departments, including
the Bureau of Internal Revenue (BIR) and the Department of Health (DOH), among others.
These government agencies have specific roles and responsibilities, such as taxation and safety
Philippines army (PA), that are crucial at the national level. The third is called State and Local
government sectors but in the Philippines, is equal to the local government sector, often referred
to as Local Government Units (LGUs), and is responsible for delivering critical services directly
to the local communities’ municipalities and Baranagay. These services encompass utilities,
education, healthcare, transportation, public safety, and many others. Workers in this sector and
the federal government normally have the biggest advantages as the government has employer-
provided benefits.
Information
The information supersector encompasses a range of industries involved in producing,
distributing, transmitting information, and processing data. Key players include:
• Publishing Industries: This covers traditional and Internet publishing, with notable
examples like Phil star and Rappler in Internet news.
• Motion Picture and Sound Recording Industries: These sectors create and distribute
movies, TV shows, and music.
• Broadcasting Industries: Encompassing television and radio broadcasting companies.
• Telecommunication Industries: These companies provide phone and internet services.
• Internet Service Providers (ISPs): ISPs like PLDT and Converge offer internet access
to consumers and businesses.
• Web Search Portals: Prominent web search portals like Google.com and Match.com
help users find information and services online.
• Data Processing Industries: This category involves companies that process and analyze
data, often serving other businesses.
• Information Services Industries: This segment offers various information-related
services, including data storage, retrieval, and analysis.
The information supersector plays a vital role in the modern economy due to its contributions
to information dissemination and technology-driven services. Notably, the software publishing
industry within this supersector stands out as the fastest-growing segment, with a projected
growth rate of 32 percent for the 2006–2016 period.
Leisure and hospitality
The leisure and hospitality sector is divided into three subsectors: (1)arts, entertainment, and
recreation (2) food services and drinking places; and(3) hotels and other accommodations. The
first one is the Arts, Entertainment, and Recreation subsector includes establishments that,(1)
Produce, promote, or participate in live performances, events, or exhibits intended for public
viewing. (2) Preserve and exhibit objects and sites of historical, cultural, or educational interest
(3) Operate facilities that provide amusement, hobby, and leisure time interests. In essence, any
activity that occupies an individual's leisure time except for viewing motion pictures and video
rentals, falls under this subsector. Even for workers not having any formal education beyond
high school, employment in this subsector is expected to increase by 31 percent in the future.
The second sector is the Food Services and Drinking Places subsector encompasses a
wide range of dining establishments, from fast-food franchises to fine dining, as well as
cafeterias, caterers, bars, and food service contractors. It often provides young people with their
first jobs, with more than one in five employees aged 16 to 19. Additionally, two out of five
employees work part-time, making it twice as common as in other industries. Employment is
projected to increase by 11 percent, as many workers leave these jobs, creating job opportunities.
Cooks, waitresses, and waiters make up a significant portion of the workforce in this subsector.
And final sector is the hotels and accommodations subsector is a significant part of leisure and
hospitality, serving various purposes like family visits, business trips, and vacations. Resort and
casino hotels are popular vacation choices. Like food services, hotels often hire first-time,
seasonal, or part-time workers. The leisure and hospitality sector is set to grow by 14%, offering
a variety of job opportunities, especially for young and part-time workers. Despite lower
educational requirements and earnings, this growth is fueled by factors like rising consumer
income and more leisure time.
Professional and Business Services
The professional and business services super sector is comprised of advertising and public
relations services; computer systems design and related services; employment services,
management, scientific, and technical consulting services; and scientific research and Food
services and drinking places provide many young people with their first job. More than one in
development services. Due to the glamour associated with the industry, advertising and public
relations services typically obtain more job seekers than there are jobs to offer. Employment
services provide temporary workers to business which gives many workers an entry into the
workforce. In addition, employment services assist employers in locating suitable employees and
provide human resource services to clients.
Transportation and Warehousing and Utilities
As its name implies, the transportation and warehousing and utilities supersector consists of
three subsectors: (1) air transportation; (2) truck transportation and warehousing; and (3) utilities.
Perhaps no other sector of the economy has experienced more turbulence in recent times than air
transportation. Despite its bumpy road, air travel remains one of the most popular forms of
transportation. Major trends for this subsector include better job prospects for those working for
regional or low-cost providers; most jobs involve employment pertaining to ground operations;
and at least a bachelor’s degree is preferred for most pilot and flight attendant jobs. Pilots with
seniority are among the highest paid workers in the country. Projected employment for 2006–
2016 is 7 percent.
The truck transportation and warehousing subsector consists of a variety of activities that
provide a link between manufacturers and consumers, such as generalized and specialized freight
trucking, warehousing and storage. While truck drivers and driver/sales workers occupy 45
percent of all jobs in this subsector, job opportunities are best for truck drivers and diesel
mechanics. Projected employment growth is 15 percent; however, employment fluctuates
dramatically with the economy. The utility subsector comprises establishments that provide the
following services: electricity, natural gas, steam, water, and sewage removal. Given the
diversity of these services, expertise in one field may not easily transfer to another utility.
Employment projections forecast that nearly half of current utility workers will retire within the
next 10 years, resulting in many more job opportunities than the 6 percent growth forecasted.
Utility workers are typically well-paid compared to other industries, and potential employees
with college or technical degrees will have the best opportunities.
Wholesale and Retail Trade
The wholesale and retail trade supersector consists of the wholesale trade subsector and the
retail trade subsector which include: automobile dealers; clothing, accessory, and general
merchandise stores; and grocery stores. Wholesale trade includes establishments that wholesale
merchandise (generally without transformation) and provide services related to the sale of
merchandise to other businesses. Most wholesalers are small, employing fewer than 20 workers,
7 out of 10 of whom work in office and administrative support, sales, or transportation and
material moving occupations. A high school education is sufficient for most jobs within the
wholesaling subsector. In comparison, the retail trade subsector includes establishments that
retail Mer- candies (generally without transformation) and provide services related to the sale of
merchandise to final consumers. Employment opportunities will also be available in the clothing,
accessory, and general merchandise stores subsector. Eighty-four percent of job opportunities in
this sub-sector revolve around sales and administrative support jobs. Most jobs do not require a
formal education, consequently, the workforce is often comprised of employees who are working
their first job.
Other Services
The “other services” supersector is a “catch-all” for all the services that do not neatly fit into
the preceding eight supercenter categories. Consequently, the other services supersector
includes a myriad of establishments that are in engaged in a variety of activities including
equipment and machinery repair, promoting or administering religious activities, drycleaning and
laundry service, personal care, death care, pet care, photofinishing, temporary parking services,
and dating services. Seemingly too often, companies diminish their own chances to develop truly
innovative ideas by only examining the practices of competitors within their own industries.
Many service industries share common service delivery challenges and therefore would benefit
from sharing their knowledge with each other. Unfortunately, many service firms look only to
firms within their own industry for guidance. For example, banks look to other banks, insurance
companies look to other insurance companies, and so on. This myopic approach slows the
progress of truly unique service innovations within each of the respective industries. One needs
only to consider the advances that hospitals could make if they borrowed concepts from
restaurants and hotels instead of relying on other hospitals for innovative service ideas.
Similarly, many service jobs, such as a bank teller and an airline gate agent, who on the surface
seem quite different, actually perform similar tasks and experience many of the same customer-
related challenges throughout a typical day. Consequently, lessons that have been learned in the
front-lines of banking operations may be of value to those who work the front-lines of the airline
industry.
Highlights of the June 2023 Labor Force Survey
1.The country’s employment rate in June 2023 was estimated at 95.5 percent. This was higher
than the reported 94.0 percent employment rate in the same month last year, but slightly lower
than the 95.7 percent estimate in May 2023. In terms of magnitude, the number of employed
persons was posted at 48.84 million in June 2023, while 46.59 million in June 2022. In May
2023, the number of employed persons was 48.26 million. (Table A)
2.The number of unemployed persons in June 2023 decreased to 2.33 million from 2.99 million
in June 2022, posting a year-on-year decline of 663 thousand unemployed persons. However, the
number of unemployed persons in June 2023 was higher by 159 thousand compared with the
number of unemployed persons in May 2023. (Table A and Table 3)
In terms of rates, a lower unemployment rate of 4.5 percent was registered in June 2023
compared with the 6.0 percent estimate in June last year. The unemployment rate in May 2023
was posted at 4.3 percent. (Table A)
C. Service Sectors Concern
The role of service marketing primarily focuses on providing services. Unlike product
marketing, services marketing concentrates on promoting intangible transactions that deliver
value to customers. The primary objective of service marketing is to create and deliver services
that satisfy consumer needs and expectations, thereby achieving organizational goals.
However, there are challenges associated with service marketing. It is challenging to sell
something that consumers cannot physically own or see. Additionally, there tends to be a lot of
variability in services. To address these challenges, it is crucial to pay attention to customer
feedback, online reviews, and conversations on social media, and take prompt action.
Services marketing faces several core challenges, each of which impacts how services are
marketed and delivered effectively:
 Intangibility: Services are intangible, meaning they cannot be perceived through the five
senses before customers buy and experience them. Unlike physical products, customers
can't touch, see, smell, taste, or hear services beforehand. This challenge requires service
marketers to use various strategies to convey the value and benefits of the service to
potential customers, often relying on branding, testimonials, and strong marketing
messages.
 Inseparability: Inseparability refers to the unique characteristic of services where the
production or delivery of the service is inherently linked to its consumption. Unlike
tangible products, services are typically created and consumed simultaneously. This
poses challenges in maintaining consistent service quality and ensuring a positive
customer experience. Service providers must focus on training and maintaining skilled
staff to deliver high-quality services consistently.
 Perishability: Perishability relates to the fact that service capacity cannot be stored for
future sale. Services are time-bound, and any unused capacity during a specific time
frame cannot be carried over to the next. This presents a challenge in capacity
management and pricing strategies. Service providers need to carefully manage capacity,
demand fluctuations, and pricing to optimize profitability.
 Variability: Variability refers to the potential differences in the quality of the same
service when provided by different vendors or even by the same vendor at different
times. Due to the human element in service delivery and potential variations in customer
interactions, maintaining consistent service quality can be challenging. Service providers
must implement quality control measures, staff training, and standardization of processes
to minimize variability and ensure a consistent customer experience.

D. Ethical Consideration for Service Marketing

Ethics are referring to the concept of right and wrong conduct it guides us to tell the truth
keep our promises or help someone in need. It provides us with a way to make moral choices
when we are uncertain about what to do. There are also ethics in business, Business ethics it
concerns employees, customers, society and environment, it also upgrades or add to law by
outlining acceptable behavior beyond government control.

Ethical aspect in service marketing

Ethical marketing it was mostly about the customer like being transparent to the customer,
protect the personal data and value them to the out most level so by maintain ethics they can gain
more sales build loyalty to the customer attract retain.
Factors Contributing to Consumer Vulnerability
Consumer vulnerability are both flexible and dynamic in and out of vulnerable times. A
customer may be more vulnerable due to their circumstances, such as going through a
susceptible at a particular time. Marketing to the vulnerable in a way that exploits their
vulnerability is considered immoral, and as a result, marketing and advertising campaigns that do
so by employing strategies like deceit, coercion, and manipulation are seen as unethical.
Customers set their own criteria and requirements for businesses and service providers. They
have predetermined ideas about who they would and wouldn't trust based on their perceptions of
typical cheaters. Customers' perceptions become a reality for them, even though it may seem
unfair. Their experiences might have influenced their perceptions. Customers frequently develop
a bad opinion of other service providers and businesses if they have experienced fraud,
misrepresentation, or unethical behavior. On the other hand, customers are more likely to trust
other people if their relationship with a business is based on moral behavior and treatment.
Why we need ethics in Marketing?
When discussing sales and marketing ethics, fraud or, more precisely, avoiding it, is
frequently the first thing that comes to mind, but there are other aspects of ethical behaviour in
business. To handle every lead, prospect, and client with respect, fairness, honesty, and integrity,
one must follow certain practices, which are referred to as sales ethics. This implies that you put
your customers first as a salesperson or marketer. As opposed to imposing your agenda on
others, you respect their decisions and ideas. Start by encouraging open communication about
your sales goals and procedures in order to develop and sustain your sales ethics. All additional
efforts you make to improve your sales ethics will have the strongest possible starting point from
this.
Ethical Marketing Principles
In order to successfully supply services to clients, service marketing principles are essential.
The long-term success of their services can be ensured by service marketers by adhering to these
guidelines and gaining a competitive advantage. Regardless of the type of business you operate,
you will need a marketing plan, which is almost certainly going to be based on marketing
principles. Marketing is the only way that potential customers will learn about your business,
whether you run a brick-and-mortar store, an internet store, or offer services. You might not
believe that you are currently engaging in any marketing, but even having a functioning website
or social media presence that describes or promotes your company counts as marketing. The idea
behind marketing principles is that any company may and ought to use them in their marketing
plan. Due to their broad nature, the Ps can all be used globally and tailored to suit the
requirements of every type of business. This makes adjusting to your own distinctive brand
simpler.
The effect of Ethical Misconduct
In addition to destroying trust, unethical behaviour has a significant negative impact on staff
morale. Called Effect of Ethical misconduct Employees may feel discouraged and demoralized if
they see their co-workers acting unethically. They can experience low motivation and doubt the
organization's impartiality. Reduced productivity, higher absenteeism, and a lack of excitement
for their work are just a few examples of how low morale can show itself in the workplace. This
downward spiral eventually results in a drop in total employee engagement and organization
performance.
References :
 Hoffman, K., & Bateson, E. G. (n.d.). Services Marketing: Concepts, Strategies, &
Cases, 4th Edition (4th edition). (Original work published 2010)
 CLAIRE DENNIS S. MAPA, PhD . (n.d.). | Philippine Statistics Authority: Republic of
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 Quiz ( Questioner )

1. What are the set of practices and policies that companies use to guide them?"
A. Ethical Marketing
B. Business Ethics
C. Managing Ethics
D. Law
Answer : B
2. Which of following establishment protect clients against a variety of financial losses ?
A. Insurance
B. Bank
C. Restaurant
D. School
Answer :A
3. Which of the following is not part of service economy?
A. Retail
B. Manufacturing
C. Healthcare
D. Information Technology
Answer: B
4. What term typically refers to essential public services that are necessary for the
functioning of a community or society?
A. Warehousing
B. Utilities
C. Transportation
D. Facilities
Answer : B
5. Which category is comprised of advertising and public relations services; computer systems
design and related services; employment services; management; scientific and technical
consulting services; and scientific research and development services?
A. Professional and Business Services
B. Other Services
C. Wholesale and Retail Trade Services
D. Warehousing
Answer :A
6. According to __, ___,______and________, a service is any activity or benefit that one
party can offer to another, which is essentially intangible and does not result in the
ownership of anything. Its production may or may not be tied to a physical product.

A. Keller, Armstrong, Sanders, and Wong

B. Kotler, Sander, Amsterdam, and Wang
C. Kotler, Armstrong, Saunders, and Wong
D. Kelly, Archibald, Saunter, and Wrong
Answer :C
7. What are the four (4) core challenges for service marketing?
A. Tangibility, Combine, Consumable, Availability
B. Intangibility, Inseparability, Perishable, Variability
C. Desirability, Business Viability, Technical Feasibility
 D. Intangibility, Heterogeneity, Simultaneity, Quality Measurements
Answer : B

8. Which term describes the belief that if manufacturing were to cease, there would be less for
people to service, resulting in more people available to do less work?
A. Dichotomization of Wealth
B. Not Able to Set a Goal
C. Materialismo Snobbery
D. Intangibility
Answer : C
9. What term is associated with wages related to service employment?
A. Dichotomization of Wealth
B. Not Able to Set a Goal
C. Materialismo Snobbery
D. Intangibility
Answer : A
10. In order to successfully supply services to clients, ________________ principles are
essential.
A. Supply Marketing
B. Supply Market
C. Service Marketing
D. Service Market
Answer :A