Professional Documents
Culture Documents
Service Management
James Fitzsimmons
Seay Professor of Business Emeritus
University of Texas at Austin
McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
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Learning Objectives
Identify traits that all services have in common.
Discuss the central role of services in an economy.
Identify and differentiate the five stages of economic
activity.
Describe the features of preindustrial, industrial, and
postindustrial societies.
Describe the features of the new service economy.
Contrast the push vs. pull theories of innovation.
Identify the sources of service sector growth.
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Service Definitions
Services are deeds, processes, and performances.
Valarie Zeithaml & Mary Jo Bitner
Economy
PERSONAL SERVICES
MANUFACTURING · Healthcare
Services inside company: · Restaurants
· Finance DISTRIBUTION · Hotels
· Accounting SERVICES
· Legal · Wholesaling
· R&D and design · Retailing
· Repairing CONSUMER
(Self-service)
BUSINESS SERVICES
· Consulting GOVERNMENT SERVICES
· Auditing · Military
· Advertising · Education
· Waste disposal · Judicial
· Police and fire protection
Percent Employment in 1-6
Services
Top Ten Postindustrial Nations
Country 1965 1975 1985 1995 2005
United States 59.5 66.4 70.0 74.1 78.6
United Kingdom 51.3 58.3 64.1 71.4 77.0
0
10
20
30
40
50
60
70
80
90
1850
1860
1870
1880
1890
Sector
1900
1910
1920
Year
1930
1940
1950
1960
1970
1980
1990
2000
Service
Agriculture
Manufacturing
Trends in U.S. Employment by
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Distribution of GDP in the US 1-8
Economy
Product Services
A B
Information
10% 53% 63%
C D
16% 84%
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Stages of Economic
Development
Pre- Use of Standard
dominant Human Unit of of Living
Society Game Activity Labor Social Life Measure Structure Technology
Economic Evolution
Economy Agrarian Industrial Service Experience
Method of Supply Stored in bulk Inventoried Delivered on Revealed over Sustained over time
demand time
Seller Trader Producer Provider Stager Collaborator
Customer Participation
Passive Active
Experience Design
Principles
Theme the Experience (Forum shops)
Harmonize Impressions with Positive Cues
(O’Hare airport parking garage)
Eliminate Negative Cues
(Cinemark talking trash containers)
Mix in Memorabilia (Hard Rock T-shirts)
Engage all Five Senses (Mist in Rainforest)
Source of Service Sector 1-13
Growth
Century
Discussion Topics
Illustrate how the type of work he or
she does influences a person’s
lifestyle. For example, contrast a
farmer, a factory worker, and a
school teacher.
Is it possible for an economy to be
based entirely on services?
What is the value of self-service in
an economy?
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