Service Sector: Characteristics, Types, and Operations
1.1 Service Sector
- Clark-Fisher Model: 5 stages (extractive, production, first services, trade services, social services)
- Riddle Model
1.2 Competitiveness
Levels: Countries, sectors, companies.
1.3 Productivity
Efficiency: Technical, economic.
1.4 Evolution in the Service Sector
- Technology (electronic services)
- Population changes
- Competence, rivalry
Key Characteristics of Services
2.1 Intangibility
2.2 Inseparability
2.3 Heterogeneity
2.4 Expiration (Perishable Nature)
Types of Services: Business Classifications
3.1 Browning and Singelmann Classification (Traditional)
- Extractive Activities (Primary Sector)
- Agriculture and fishing
- Mining
- Processing Industries (Secondary Sector)
- Construction/Building sector
- Food processing
- Clothing industry/Textile industry
- Metal industry/Metallurgical industry
- Mechanical industry
- Chemical industry
- Other manufacturing industries
- Utilities (electricity, etc.)
- Distribution Services
- Transportation and storage
- Communications
- Wholesale trade
- Retail trade (excluding retail food and beverage)
- Production Services
- Banking services
- Insurance
- Real estate services
- Engineering and architecture services
- Accounting services
- Legal services
- Other operation services
- Social Services
- Health services
- Hospitals
- Education
- Social and religious assistance
- NGO (Non-Governmental Organizations)
- Postal service
- Public administration
- Various professional services
- Personal Services
- Domestic service
- Hotels and similar services
- Restaurants and similar services
- Repair services
- Laundry and dry cleaning
- Beauty parlors and barber shops
- Entertainment and leisure services
- Various personal services
3.2 Gershuny and Miles Classification (Modern)
- Marketable Services
- Financial services
- Professional services
- Maintenance services
- Transportation and storage
- Communications
- Wholesale and retail trade
- Personal services
- Non-Marketable Services
Distinctive Features of Services
4.1 Generalizations
- Everyone is an expert in services.
- Services have their own distinctive characteristics.
- Work quality vs. service quality.
- Most services have a mixture of tangible and intangible characteristics.
- Effective service company management is based on marketing, human resources, and operations.
4.2 Types of Service Activities According to Operation Management
- Business services (service companies)
- Internal services
4.3 Service Triangle
4.4 Process as a Product
In services, the process is often the product.
- Service aspects where customer implication is important:
- Service essence (needs)
- Service delivered (process and design)
- Service received
- Customer’s experience
- Results
4.5 Service as an Open System
- Characteristics of a system: Artificial, finalist, open, feedback, hierarchical.
- System cycle: Objectives, Systems, Planning, Control.
4.6 Operations and Competitiveness in Service Firms
Four stages:
- Customer seek
- Service quality
- Introduction of new technology
- First-line managers