Fitzsimmons Ch 2 of Book
Chapter
2
The Nature of Services
Learning Objectives
After completing this chapter, you should be able to:
1.
Explain what is meant by a service-product bundle.
2.
Identify and critique the five distinctive characteristics of a service operation and explain the implications for managers.
3.
Explain how services can be described as customers renting resources.
4.
Describe a service using the five dimensions of the service package.
5.
Use the service process matrix to classify a service.
6.
Explain how a strategic classification of services can be helpful to managers.
7.
Explain the role of a service manager from an open-systems view of service operations.
In this chapter, we explore the distinctive features of services. The service environment is sufficiently unique to allow us to question the direct application of traditional manufacturing-based techniques to services without some modification, although many approaches are analogous. Ignoring the differences between manufacturing and service requirements will lead to failure, but more importantly, recognition of the special features of services will provide insights for enlightened and innovative management. Advances in service management cannot occur without an appreciation of the service delivery process that creates the experience for the customer.
The distinction between a product and a service is difficult to make, because the purchase of a product is accompanied by some facilitating service (e.g., installation) and the purchase of a service often includes facilitating goods (e.g., food at a restaurant). Each purchase includes a bundle of goods and services as shown in Table 2.1.
Our examples each have a principal focus or core activity that is either a product
(i.e., business suits) or service (i.e., room for the night). However, peripheral goods and services augment the bundle offered to the customer. Finally, a variant often is used to
2
The Nature of Services
Learning Objectives
After completing this chapter, you should be able to:
1.
Explain what is meant by a service-product bundle.
2.
Identify and critique the five distinctive characteristics of a service operation and explain the implications for managers.
3.
Explain how services can be described as customers renting resources.
4.
Describe a service using the five dimensions of the service package.
5.
Use the service process matrix to classify a service.
6.
Explain how a strategic classification of services can be helpful to managers.
7.
Explain the role of a service manager from an open-systems view of service operations.
In this chapter, we explore the distinctive features of services. The service environment is sufficiently unique to allow us to question the direct application of traditional manufacturing-based techniques to services without some modification, although many approaches are analogous. Ignoring the differences between manufacturing and service requirements will lead to failure, but more importantly, recognition of the special features of services will provide insights for enlightened and innovative management. Advances in service management cannot occur without an appreciation of the service delivery process that creates the experience for the customer.
The distinction between a product and a service is difficult to make, because the purchase of a product is accompanied by some facilitating service (e.g., installation) and the purchase of a service often includes facilitating goods (e.g., food at a restaurant). Each purchase includes a bundle of goods and services as shown in Table 2.1.
Our examples each have a principal focus or core activity that is either a product
(i.e., business suits) or service (i.e., room for the night). However, peripheral goods and services augment the bundle offered to the customer. Finally, a variant often is used to
Bibliography: no. 4 (May 2004), pp. 324–35. no. 1 (August 2004), pp. 20–41. no. 2 (Summer 2006), pp. 329–42. 1. Based on “Customer Benefit Package” found in David A. Collier, The Service/Quality Solution, (Burr Ridge, Ill: Irwin, 1994), pp Institute for Defense Analysis, 1970). 4. E. H. Blum, Urban Fire Protection: Studies of the New York City Fire Department, R-681 (New York: New York City Rand Institute, 1971). 5. G. M. Hostage, “Quality Control in a Service Business,” Harvard Business Review 53, no. 4 (July–August 1975), pp 6. From Christopher Lovelock and Evert Gummesson, “Whither Services Marketing? In Search of a New Paradigm and Fresh Perspectives,” Journal of Service Research 7, no.1 (August 2004), 7. Adapted from Christopher H. Lovelock, “Classifying Services to Gain Strategic Marketing Insights,” Journal of Marketing 47 (Summer 1983), p