Summary: Service Industry

Read the summary and the most important questions on Service Industry

• First lecture

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• What can we say about services and economies?

  What you see the service industry in general as part of the GDP in develop countries is bigger than is less develop countries like for example china.

• Of what sector is the service industry?

  Tertiary sector -> in developed economies tertiary sector is the biggest sector

• What is intangibility? (four characteristics of services)

  Services cannot be seen, tasted, felt, heard, or smelled before purchase
  
  
  

  • try before you buy is usually not possible in services
    
  • degree of intangibility, some services may be more intangible than others
    

• Of the categories of services what is personal services?

  Tourism, recreational, domestic services (are individual).

• What is heterogeneity (variability)? (four characteristics of services)

  Heterogeneity describes the uniqueness of service offerings, the quality of services depends on who provides them and when, where, and how (also known as variability).

• What is simultaneity (inseparability)? (four characteristics of services)

  Simultaneity refers to the service which makes it compulsory to produce and consume the service at the same time. Services cannot be separated from their providers. 
  
  
  Simultaneity is also known as inseparability.

• What is service management?

  All those economic activities that are intangible and imply an interaction to be realised between service provider and consumer

• What is perishability? (four characteristics of services)

  Perishability describes that a service cannot be stored for later sale or use. Time is an important dimension for services.

• Of the characteristic of service what is intagibility?

  Services cannot be seen, tasted, felt, heard of smelled before purchase

• What is the difference between when consuming a product or a service?

  Consuming a physical product means making use of the product itself while consuming a service means undergoing the process, and the final result -> the inseparability factor.
  
  

  • A service can be added to a physical product (= augmented) An augmented product is a product that has been designed by its seller to include several additional benefits and features beyond just the physical product))