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Lec 1 - Understanding Services

Service management lecture slide

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10 views

Lec 1 - Understanding Services

Service management lecture slide

Uploaded by

Vi Vi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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LECTURE 1

UNDERSTANDING SERVICES

1
Content

▪ Service definitions
▪ Nature of services
▪ Types of services
▪ The role of services in an economy
Readings
----------

▪ Fitzsimmons, James A;
Fitzsimmons, Mona J
(2019), chapter 1, 2

▪ Johnston R. and Clark


G (2018), chapter 1, 2

3
DEFINITIONS AND NATURE OF SERVICE

4
Service definitions
▪ A service is an activity or series of activities of a more or less intangible nature
that normally, but not necessarily, take place in interactions between the
customer and the service employees and/or physical resources or goods and/or
systems of the service provider, which are provided as solutions to customer
problems (Grönroos, 1990)
▪ Any activity or benefit that one party can offer to another that is essentially
intangible and does not result in the ownership of anything (Kotler, 1997)
▪ A service is a time-perishable, intangible experience performed for a customer
acting in the role of co-producer. (James Fitzsimmons)
▪ The services sector includes all economic activities whose output is not a
physical product or construction, is generally consumed at the time it is
produced, and provides added value in forms (such as convenience,
amusement, timeliness, comfort, or health) that are essentially intangible
concerns of its first purchaser. (Quinn, Baruch, and Paquette, 1987)
Distinctive Characteristics of Service
Services vs Goods
Discussion

For each characteristic of service:


▪ What are the difficulties of the
customers?
▪ What are the difficulties of the
suppliers?
▪ What are the implications?

Work in groups then discuss your


thoughts with the whole class
Implication: Intangibility
Make tangible the intangible by sight, sound,
taste, smell…
Implication: Inseparability

▪ Production/Supply and
Consumption happen at the
same time
▪ The customer has to be present
where the service is provided
(Services are place dependent)
▪ Direct interaction between
service provider and customer
(Services are human-
relationship dependent)
Implication: Variability

Service performance
depends on service
variability:
▪ Service provider mood
and skills
▪ Customer behavior
▪ External factors
Service package

The service package is defined as a bundle of goods and services with


information that is provided in some environment.
Criteria for evaluating the service package (1)
Classification of services (3)
Exercises

1. Case: Village Volvo (p.33-34)


2. Case: Xpresso Lube (p.34-35)

Work in groups then discuss your


thoughts with the whole class
CLASSIFICATION OF SERVICES

17
Classification of services (1)
Classification of services (2)
Classification of services (3)
Classification of services (4)
Classification of services (5)

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