Chapter

1
1
Service Management (5e) Operations, Strategy,
Information Technology By Fitzsimmons and
Fitzsimmons

• Chapter 1
• Role of Service in an Economy

2
Learning Objectives

• Describe the central role of services in an
  economy.
• Discuss the evolution of an economy from an
  agrarian society to a service society.
• Describe the features of preindustrial,
  industrial, and postindustrial societies.
• Describe the features of the new service economy

3
Service Definitions

• Services are deeds, processes, and
  performances.
• Valarie Zeithaml Mary Jo Bitner
• A service is a time-perishable, intangible
  experience performed for a customer acting in the
  role of a co-producer.
• James Fitzsimmons

4
Definition of Service Firms

• Service enterprises are organizations that
  facilitate the production and distribution of
  goods, support other firms in meeting their
  goals, and add value to our personal lives.
• James Fitzsimmons

5
Role of Services in an Economy
6
Percent Service Employment for Selected Nations
7
Trends in U.S. Employment by Sector

8
Stages of Economic Development

• 
  

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The New Experience Economy
10
The Four Realms of an Experience
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Experience Design Principles

• Theme the Experience (Forum shops)
• Harmonize Impressions with Positive Cues(OHare
  airport parking garage)
• Eliminate Negative Cues(Cinemark talking trash
  containers)
• Mix in Memorabilia (Hard Rock T-shirts)
• Engage all Five Senses (Mist in Rainforest)

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Source of Service Sector Growth

• InnovationPush theory (e.g. Post-it)Pull theory
  (e.g. Cash Management)Services derived from
  products (Video Rental)Information driven
  servicesDifficulty of testing service prototypes
• Social Trends Aging of the populationTwo-income
  familiesGrowth in number of single peopleHome
  as sanctuary