1. Name the 5 forces that transform our economies to become service oriented? Name for each an example (page 33) Government policies, Social changes, Business trends, Advances in Information Technology, Globalization
2. Give the definition of services (page 37)
Services are economic activities offered by one party to another. Often time-based, performances bring about desired results to recipients, objects, or other assets for which purchasers have responsibility. In exchange for money, time, and effort, service customers expect value from access to goods, labor, professional skills, facilities, networks, and systems; but they do not normally take ownership of any of the physical elements involved.
3. Name the five categories within the non-ownership framework Rented goods service: These services enable customers to obtain the temporary right to use a physical good that they prefer not to own (boats, fancy dress costumes) Defined space and place rentals: Customers obtain the use of a defined portion of a larger space in a building, vehicle or other area. Labor and expertise rentals: Customers hire other people to perform work that they either choose not to do themselves, or are unable to do themselves (domestic help, car repair) Access to shared physical environments: Indoor or outdoor locations, such as museums, trade shows, toll road Access to and usage of systems and networks: Rent the right to participate in a specified network such as telecommunications
4. Name the key characteristics of services
Form of rental rather than ownership
Performances that bring a desired result or experience for a customer Interactivity: A service requires interaction
Heterogeneous: One same service provided could differ from another, due to different desires. A service is produced by people, and could differ from another Quality is not standardized: Again due to different values and desires of customers No inventory: A service cannot be held as inventory
5. Name and explain the 4 categories of services with a process perspective (page 41) People processing: The service involves the actual customer directly, it’s a service directed at people’s bodies, such as passenger transportation, lodging, health care, hair dressers. The output is what happened to the customer. Reflecting helps to see what the customer had to endure in terms of time, physical effort, even fear and pain.
Possession processing: With this is meant that a customer’s possession is being processed in terms of a service (cleaning a house, dry cleaning, storage and transport of goods). Customers are less physically involved with this type of service. The customer’s involvement is usually, dropping the possession, communicate desires, claim possession and pay the bill.
Mental stimulus processing: With this is meant that a customer’s mind received services, such as education, professional advice, entertainment, advertisement, psychotherapy, and certain religious activities. With this service, strong ethical standards and careful overview are required. The core of this service is information based.
Information processing: Services directed at intangible assets, such as accounting, banking and legal services
Mental stimulus processing and information processing can be combined under the umbrella term: information-based services.
6. Name the managerial implications with the marketing challenges, due to a service differ from a product (8, page 43) | Difference| Implications| Marketing-related topics|
Price and other user outlays| Most services cannot beinventoried| Customers may be turned away or have to wait| Smooth demand through promotions, dynamic pricing and reservationsWork with operations to adjust capacity| Product| Intangible elements usually dominate value creation| Customers cannot taste or smell the service, and might not hear or see them. Therefore harder to evaluate service and...