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Research of Influence of Market Factors on the General Development of Service Sector

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Author(s): M. Miroshnyck | I. Okkert

Journal: Economics of Development
ISSN 1683-1942

Volume: 56;
Issue: 4;
Start page: 49;
Date: 2010;
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Keywords: service | the service sector | market | factors of influence.

ABSTRACT
Due to technological expansion in any field of national economy there is a market, main element of which are services. Economists and marketers refer to the key technologies that influence significantly a sphere of services the following issues: energy technologies, as well as technology of design, of constructional materials and of processes and genetic engineering. The most wide-spread (from a general list of 45 classes of the International classification of goods and services) are services that are referred to the 35th class of ICGS – services that are provided to the firms and natural persons as for industrial and commercial management of their affairs, services of advertising agencies, aid in promotion of goods and services, services in organizing of exhibitions and fairs, clerical works, auction sales of information services as well as information gathering to computer databases and services of import and export agencies. There is a chain of identical factors that serve as a catalyst of transformations of country’s economic sector. They include state politics, social changes, and tendencies of business development, information technologies progress, internationalization and globalization of service companies.Policy of the state in the field of services is defined as a dominant factor both on the national level and on the regional and international levels as well. In our country government control is used in such branches as air transportation, TV and radio communications, separate sectors of food, light and engineering industries, hotel business etc. Social changes in the society are the result of changing a life style and increasing incomes of population. The main trends of factor’s action are studied: "The Tendencies of Business Development" are contained in creating service centers, opening own shops, restaurants, consulting offices, livening means of increasing income at the expense of reducing costs connected with providing services (substitution of personnel work with technological innovations, self-service, introduction of reengineering); increasing the quality of services and distributing franchising as a method of developing and financing service networks, which support the only conception of service; "Development of Information Technologies" – is in the integration of computer and telecommunication technologies; "Internationalization and Globalization of Service Companies" – is a priority of development of tourist sector services and sector of freight transportation and passenger traffic.
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