nsumer. Lovelock states that his view of customer service differs from the usual definition of customer service as a strictly reactive function responding to customer problems or complaints. Instead, Lovelock suggests that customer service "embraces all personnel whose jobs bring them into contact with customers routinely, as well as on an exception basis" (Lovelock 491). Electronic commerce is an area of customer service that does not involve personnel directly, and indeed aspects of it are offered on the precise basis that the consumer will be able to make use of services without seeing personnel--the ATM outside the bank is often sold on this basis, showing that people can make deposits and payments or take cash without having to enter the bank and speak to anyone. More and more banks are using electronic service which alter the relationship between the customer and the organization and which reduce the number of people who provide customer service to the individual customer on a regular basis.
Banks are faced with increasing competition from other financial institutions, such as credit unions, and technology is seen as crucial in the survival of the credit union into the next century. One of the disadvantages to the credit union over the bank is that the credit union has fewer ATMs and similar facilities for the use of its members without their having to pay higher fees for transactions. Personal computer banking at home is an alternative some credit unions are trying today to allow members greater access. Two other methods of banking are found in the automated teller machines and the noncash service terminal with a video screen to provide a visual connection with the union. All three channels will be used to form the "virtual" credit union branch of the future, making use of interactive television. There are numerous predictions of the decline in the number of credit unions in the next century. Some predict that within...