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Service Sector Management

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Submitted By kaikajal
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Services Management
Introduction
FALL 2006

Why study Services?
• Service-based economies • Service as a business imperative in manufacturing and IT • Deregulated industries and professional service needs • Services marketing/management is different • Service equals profits – follow the money • It’s where the jobs are!!!

Introduction to Services
• Explain what services are and identify important trends in services. • Explain the need for special services management concepts and practices and why the need has developed and is accelerating. • Explore the profound impact of technology on service. • Outline the basic differences between goods and services and the resulting challenges and opportunities for service businesses. • Introduce the services variables and the philosophy of customer focus, as powerful frameworks and themes for managing services.

Service Definitions
• Services are deeds, processes, and performances.
Valarie Zeithaml & Mary Jo Bitner

• A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-producer.
James Fitzsimmons

4

Definition of Service Firms
Service enterprises are organizations that facilitate the production and distribution of goods, support other firms in meeting their goals, and add value to our personal lives.

Role of Services in our Economy

5

Percent Service Employment for Selected Nations
Country
United States Canada Israel Japan France Italy Brazil China

1980
67.1 67.2 63.3 54.5 56.9 48.7 46.2 13.1

1987
71.0 70.8 66.0 58.8 63.6 57.7 50.0 17.8

1993
74.3 74.8 68.0 59.9 66.4 60.2 51.9 21.2

2000
74.2 74.1 73.9 72.7 70.8 62.8 56.5 40.6

Percent of U.S. Labor Force by Industry
Percent of U.S. Labor Force 80 70 60 50 40 30 20 10 0 1929 1948 1969 1977 1984 1999 Year
Source: Survey of Current Business, April 1998, Table B.8, July

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