SUMMARY - SERVICE
INDUSTRY
Exam preparations for Y1Q2
By: jeffrey engels
,TABLE OF CONTENT
Lectures & Training Sessions……………………………………………………………………………………………………p.2-p.21
Week 1…………………………………………………………………………………………………………………………p.2+p.3
Week 2………………………………………………………………………………………………………………………………..p.4
Week 3…………………………………………………………………………………………………………………………p.5-p.8
Week 4………………………………………………………………………………………………………………………..p.9-p.12
Week 5……………………………………………………………………………………………………………………..p.13+p.16
Week 6……………………………………………………………………………………………………………………..p.17+p.19
Week 7……………………………………………………………………………………………………………………..p.20+p.21
Book Summaries…………………………………………………………………………………………………………………...p.22-p.40
Chapter 1 - The nature of services……………………………………………………………………………..p.22-p.25
Chapter 2 - The nature of service management…………………………………………………………………p.26
Chapter 3 - The service concept………………………………………………………………………………..p.27+p.28
Chapter 4 - Service process design (p.55-p.59)…………………………………………………………………..p.29
Chapter 5 - Designing human resources practices that matter for service organizations (p.75-
p.89)………………………………………………………………………………………………………………………….p.30-p.32
Chapter 7 - The role of facilities management in designing the service experience (p.147-
p.153)……………………………………………………………………………………………………………………….p.33+p.34
Chapter 11 - People practices that enable delivery (p.246-p.260)………………………………p.35-p.37
Chapter 12 - Customer attitudes and behaviors towards service firms (p.293-p.302)………p.38
Chapter 13 - Delivering services p.310-p.319)……………………………………………………………p.39-p.40
Practice test (based on the lectures)……………………………………………………………………………………………..p.41
Answers to the test……………………………………………………………………………………………………………………….p.42
1
,Lectures & Training sessions
Lecture week 1
The service sector dominates with the best jobs, best talent and best incomes.
Driving forces behind these:
- Increasing consumer incomes and sociological & demographic changes led to increase in
demand for services
- Increasing professionalism in companies and technological developments (telecom, software,
apps)
Industry division in sectors
• Primary sector: farming, forestry and fishing
• Secondary sector: industrial sector: gas, mining, manufacturing, electricity, water and
construction
• Tertiary sector: service sector
Categorization of services.
Services van be divided into 4 separate categories. These include: distributive services, producer
services, social services and personal services.
• Distributive: transportation, communication and trade
• Producer: investment banking, insurance engineering, accounting, bookkeeping and legal
services
• Social: health care, education, non-profit organizations and government agencies
• Personal services: tourism, recreational, domestic services
Definitions of services:
- A service is an activity, benefit or satisfaction offered for sale that is essentially intangible
and does not result in the ownership of anything.
- Services are economic activities performed by one party to another. Often time-based, these
performances bring about desired results to recipients, objects or other assets. In exchange
for money, time and effort, service customers expect value from access to labor, skills,
expertise, goods, facilities, networks and systems.
- All those economic activities that are intangible an imply an interaction to be realised
between service provider and consumer
2
, Like tangible products, services also have a core service, an actual service, and an augmented service.
The core service describes what the service actually is (e.g. transportation), the actual product
describes the service itself like the brand name and quality level, and the augmented service
describes extra’s that some with the service that isn’t necessarily looked for but makes the
experience of the service more pleasant.
4 Characteristics of a service
As discussed during Marketing, services contain 4 key characteristics. These are:
- Intangibility
- Heterogeneity
- Simultaneity
- Perishability
Intangibility: Services cannot be seen, tasted, felt, heard of smelled before purchase. Try before you
buy is usually not possible in services.
Degree of intangibility: A service may or may not be attached with a physical product.
Heterogeneity (or variability): Related to the potential of variability in the performance of services.
Possible sources of variability are the service provider, the customer, and the surroundings.
Simultaneity (or inseparability): Service cannot be separated from the provider.
Perishability: Cannot be stored for later sale or use. Time is an important dimension for services.
3
INDUSTRY
Exam preparations for Y1Q2
By: jeffrey engels
,TABLE OF CONTENT
Lectures & Training Sessions……………………………………………………………………………………………………p.2-p.21
Week 1…………………………………………………………………………………………………………………………p.2+p.3
Week 2………………………………………………………………………………………………………………………………..p.4
Week 3…………………………………………………………………………………………………………………………p.5-p.8
Week 4………………………………………………………………………………………………………………………..p.9-p.12
Week 5……………………………………………………………………………………………………………………..p.13+p.16
Week 6……………………………………………………………………………………………………………………..p.17+p.19
Week 7……………………………………………………………………………………………………………………..p.20+p.21
Book Summaries…………………………………………………………………………………………………………………...p.22-p.40
Chapter 1 - The nature of services……………………………………………………………………………..p.22-p.25
Chapter 2 - The nature of service management…………………………………………………………………p.26
Chapter 3 - The service concept………………………………………………………………………………..p.27+p.28
Chapter 4 - Service process design (p.55-p.59)…………………………………………………………………..p.29
Chapter 5 - Designing human resources practices that matter for service organizations (p.75-
p.89)………………………………………………………………………………………………………………………….p.30-p.32
Chapter 7 - The role of facilities management in designing the service experience (p.147-
p.153)……………………………………………………………………………………………………………………….p.33+p.34
Chapter 11 - People practices that enable delivery (p.246-p.260)………………………………p.35-p.37
Chapter 12 - Customer attitudes and behaviors towards service firms (p.293-p.302)………p.38
Chapter 13 - Delivering services p.310-p.319)……………………………………………………………p.39-p.40
Practice test (based on the lectures)……………………………………………………………………………………………..p.41
Answers to the test……………………………………………………………………………………………………………………….p.42
1
,Lectures & Training sessions
Lecture week 1
The service sector dominates with the best jobs, best talent and best incomes.
Driving forces behind these:
- Increasing consumer incomes and sociological & demographic changes led to increase in
demand for services
- Increasing professionalism in companies and technological developments (telecom, software,
apps)
Industry division in sectors
• Primary sector: farming, forestry and fishing
• Secondary sector: industrial sector: gas, mining, manufacturing, electricity, water and
construction
• Tertiary sector: service sector
Categorization of services.
Services van be divided into 4 separate categories. These include: distributive services, producer
services, social services and personal services.
• Distributive: transportation, communication and trade
• Producer: investment banking, insurance engineering, accounting, bookkeeping and legal
services
• Social: health care, education, non-profit organizations and government agencies
• Personal services: tourism, recreational, domestic services
Definitions of services:
- A service is an activity, benefit or satisfaction offered for sale that is essentially intangible
and does not result in the ownership of anything.
- Services are economic activities performed by one party to another. Often time-based, these
performances bring about desired results to recipients, objects or other assets. In exchange
for money, time and effort, service customers expect value from access to labor, skills,
expertise, goods, facilities, networks and systems.
- All those economic activities that are intangible an imply an interaction to be realised
between service provider and consumer
2
, Like tangible products, services also have a core service, an actual service, and an augmented service.
The core service describes what the service actually is (e.g. transportation), the actual product
describes the service itself like the brand name and quality level, and the augmented service
describes extra’s that some with the service that isn’t necessarily looked for but makes the
experience of the service more pleasant.
4 Characteristics of a service
As discussed during Marketing, services contain 4 key characteristics. These are:
- Intangibility
- Heterogeneity
- Simultaneity
- Perishability
Intangibility: Services cannot be seen, tasted, felt, heard of smelled before purchase. Try before you
buy is usually not possible in services.
Degree of intangibility: A service may or may not be attached with a physical product.
Heterogeneity (or variability): Related to the potential of variability in the performance of services.
Possible sources of variability are the service provider, the customer, and the surroundings.
Simultaneity (or inseparability): Service cannot be separated from the provider.
Perishability: Cannot be stored for later sale or use. Time is an important dimension for services.
3
