Chapter 1 Flashcards
What percentage of the US economy is made up by the service industry?
The US GDP is 63% made up of a service industry that requires information
What has happened to the Ag industry, manufacturing, and service industry since 1920 on world.
Ag has declined ever since
Manufacturing has stayed consistent
Service has only increased since then
What are the five stages of economic activity?
Quinary - Health, Education, Research, Arts, Recreation
Quaternary - Transportation, Communications, Retailing, Finance, Government
Tertiary - Restaurants, Hotels, Laundry, Maintenance
Secondary - Manufacturing, Processing
Primary - Agriculture, Mining, Fishing, Forestry
What is the supporting facility?
The physical resources that must
be in place before a service can be sold.
Examples are golf course, ski lift, hospital,
airplane.
What is facilitating the goods mean in terms of the service industry?
The material consumed by the
buyer or items provided by the consumer.
Examples are food items, legal documents, golf
clubs, medical history.
How does information play a role in the service industries?
Operations data or information that is
provided by the customer to enable efficient and
customized service.
What is an explicit service?
Benefits readily observable by the
senses. The essential or intrinsic features.
Examples are quality of meal, attitude of the
waiter, on-time departure.
Implicit Services:
Psychological benefits or extrinsic
features which the consumer may sense only
vaguely.
Examples are privacy of loan office, security of a
well lighted parking lot.
When it comes to the service industry, what is intangibility?
creative advertising, no patient
protection, importance of reputation
When it comes to the service industry, what is Perishability?
cannot inventory, opportunity loss of
idle capacity, need to match supply with demand
When it comes to the service industry, what is Heterogeneity?
customer participation in delivery
process results in variability
When it comes to the service industry, what is Simultaneity?
opportunities for personal selling,
interaction creates customer perceptions of quality
When it comes to the service industry, what is Customer Participation in the Service Process?
opportunities for personal selling,
interaction creates customer perceptions of quality
