Summary: Service Industry

Read the summary and the most important questions on Service industry

• 1 introduction (PPT)

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• What are the three industry divisions in sectors?

  1. Primary sector: farming, forestry and fishing
     
  2. secundary sector: industrial sector: gas, mining, manufacturing, electricity, water and construction
  3. tertiary sector: service sector

• What are the 4 categories of services?

  1. Distributive: transportation, communication and trade.
     
  2. Producer: investment banking, insurance engineering, accounting, bookkeeping and legal services.
  3. Social: health care, education, non-profit organizations and government agencies

• What are the characteristics of services?

  1. Intangibility: Services cannot be seen, tasted, felt, heard or smelled before purchase.
  2. Heterogeneity: Quality of services depends on who provides them and when, where and how.
  3. Simultaneity: Services cannot be separated from their providers.
  4. Perishability: services cannot be stored for later sale or use.

• What are the 3 categories of qualities to evaluate? (intangibility)

  1. Search quality: attributes that a consumer can control prior to purchase (smell, perfume or fit clothes)
     
  2. Experience quality: Attributes like taste and wearability that can only be discerned after purchasing/ during consumption. (hairdresser: you cannot evaluate the quality before the haircut is done.
  3. Credence (belief) quality: Attributes that are impossible to evaluate, even after purchase/consumption. (when your car is fixed, you don"t have the ability yourself to see if it is done in a right way)

• What is a other word for simultaneity?

  Inseparability

• What are the 3 sources of variability/heterogeneity?

  1. The service providor: employees can make mistakes or be moody therefore give a different service
     
  2. The customer: State of mind/personal situation of customer influences his behavior and perception of services. Every customer will experience the service differently
  3. The surroundings: External factors may influence customer's perception of service. THese factors are difficult to control for the service providor.

• 2 Service marketing mix: 3 additional P's (PPT)

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• What is a challenge in designing services?

  Potential Heterogenity (variability) in the process

• What are the 5 customer variability in the process?

  1. Arrival variability
     
  2. request variability
  3. Capability variability
  4. Effort variability
  5. Subjective preference variability

• What is meant with the P of People?

  • Services are typically delivered by people, standardization is limited. The selection, training and motivation of those employees are important.
    
  • Service are undergone by people, so they influence the outcome as well.

• 3 Service product 1: service design (PPT)

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• What are the 3 different types of interaction?

  1. Maintenance - interactive services : Contact is limited, just information- sharing. The main concern of interaction is comfort, no need to have an employee serving the same customer repeatedly.
     
  2. Task- interactive services: Relative long relationship, the flow of information, and interaction is extensive. The client is perceived as in a dependent position, because the service employee controls more information relative to the client.
  3. Personal - interactive services: The professional service provided tends to dominate during the interaction. Interaction is personal. The information provided by the client is often a confidential nature. Normally no employee changing after the relationship had established.