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Questions and Answers
Which of the following activities is classified as a primary sector according to Browning & Singelmann (1978)?
Which of the following activities is classified as a primary sector according to Browning & Singelmann (1978)?
What is a characteristic of Tradable services according to Sabolo (1975)?
What is a characteristic of Tradable services according to Sabolo (1975)?
Which of the following is a Service-Dominant Logic Foundational Premise?
Which of the following is a Service-Dominant Logic Foundational Premise?
According to the Service-Dominant Logic, what is the role of goods in service provision?
According to the Service-Dominant Logic, what is the role of goods in service provision?
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What is a key feature of Operations Service Management as an open system?
What is a key feature of Operations Service Management as an open system?
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What is the result of the customer's presence in the service process?
What is the result of the customer's presence in the service process?
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What is the primary focus of a service firm according to Service-Dominant Logic?
What is the primary focus of a service firm according to Service-Dominant Logic?
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What is the term used to describe the simultaneous production and consumption of services?
What is the term used to describe the simultaneous production and consumption of services?
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What is the percentage of GDP accounted for by the service sector?
What is the percentage of GDP accounted for by the service sector?
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Which of the following is a characteristic of services that makes it difficult to control quality?
Which of the following is a characteristic of services that makes it difficult to control quality?
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What is the purpose of governments intervening in service industries?
What is the purpose of governments intervening in service industries?
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What is the Riddle Model (1986) used to classify?
What is the Riddle Model (1986) used to classify?
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What is a solution to the problem of perishability in services?
What is a solution to the problem of perishability in services?
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Why does the service sector rely heavily on the reputation of the service provider?
Why does the service sector rely heavily on the reputation of the service provider?
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What is the benefit of considering the customer as another productive factor in the service sector?
What is the benefit of considering the customer as another productive factor in the service sector?
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Why are service innovations difficult to patent?
Why are service innovations difficult to patent?
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Study Notes
Service Sector and Utilities
- Fastest growing companies, sector with the highest GDP (65%)
- Macroeconomic: Tertiary Sector
- Microeconomic: Intangible activities between clients and service employees
Riddle Model (1986)
- Divided into 5 groups:
- Business Services: Banks, Consultancies
- Trade Services: Retailing, Maintenance, Repairs
- Infrastructure Services: Communication, Transportation
- Personal Services: Restaurants, Hotels
- Public Administration: Education, Health, Security
Basic Characteristics of Services
Intangibility
- Ideas and concepts, no patent for service innovations
- Customers can't test service performance before consumption, rely on reputation
- Governments intervene to ensure acceptable service performance
Perishability
- Can't store services, manage demand fluctuations
- Solutions: influencing demand or adjusting service capacity
Heterogeneity
- Hard to standardize services due to customer variability
- Solutions: training and motivating employees
Simultaneity
- Created and consumed simultaneously, permanent customer contact
- No distribution channels, customer is a productive factor
Types of Services & Classification of Service Businesses
- Extractive activities: primary sector
- Transformative industry: secondary sector
- Infrastructure activities: transportation, communications, trade, utilities
- Manufacturing services: banking, finance, accounting, legal, insurance, R&D, design
- Personal services: restaurants, hotels, hairdresser, domestic service, entertainment
- Government Services: Health, Education, judicial, military, security
Tradable and Non-Tradable Services
- Tradable services: sold/bought across regions or countries
- Non-Tradable Services: Government and Public Administration, locally provided and consumed
Distinctive Features of Utilities
Service-Dominant Logic Foundational Premises
- Service as the basis of exchange
- Goods as distribution mechanisms for service provision
- All economies are service economies
- Customer as co-creator of value
Operations Service Management
- Customer as central point of decisions and actions
- Production and marketing in an open system with customer as participant
- Process is the product (simultaneity)
- Customer presence makes it an open system and co-producer
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Description
This quiz covers the service sector, including its growth and contribution to GDP, as well as its classification into different types, including business services, trade services, and infrastructure services.
