Chapter 1 role of service in an economy
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1. Service Management (5e) Operations, Strategy, Information Technology By Fitzsimmons and Fitzsimmons. Chapter – 1 Role of Service in an Economy. Learning Objectives. Describe the central role of services in an economy.

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Chapter – 1 Role of Service in an Economy

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Chapter 1 role of service in an economy

1

Service Management (5e)

Operations, Strategy, Information Technology

By

Fitzsimmons and Fitzsimmons

Chapter – 1

Role of Service in an Economy


Learning objectives

Learning Objectives

  • Describe the central role of services in an economy.

  • Discuss the evolution of an economy from an agrarian society to a service society.

  • Describe the features of preindustrial, industrial, and postindustrial societies.

  • Describe the features of the new service economy


Service definitions

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


Definition of service firms

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.

James Fitzsimmons


Role of services in an economy

Role of Services in an Economy


Percent service employment for selected nations

Percent Service Employment for Selected Nations


Trends in u s employment by sector

Trends in U.S. Employment by Sector


Stages of economic development

Stages of Economic Development


The new experience economy

The New Experience Economy


The four realms of an experience

The Four Realms of an Experience


Experience design principles

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 growth

Source of Service Sector Growth

  • InnovationPush theory (e.g. Post-it)Pull theory (e.g. Cash Management)Services derived from products (Video Rental)Information driven servicesDifficulty of testing service prototypes

  • Social TrendsAging of the populationTwo-income familiesGrowth in number of single peopleHome as sanctuary


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