Service Marketing Chapter 2

• It includes the “soft parts” of the economy consisting of nine industry supersectors.

• The educational services sector includes schools, colleges, universities and training centers.

• The health care and social assistance sector is comprised of health services such as hospitals, nursing care facilities, physician’s offices and home health care services.

• The financial activities supersector consists of the banking and insurance subsector, as well as securities, commodities, and other investments

• The government supersector consists of three subsectors: advocacy, grantmaking, and civic orgnaizations; the federal government; and state and local government.

• The information supersector consists of establishments that produce and distribute information and cultural products, provide the means to distribute or transmit these products and/or process data

• The leisure and hospitality sectors are comprised of three subsectors: the arts, entertainment, and recreation subsector; food services and drinking places; and hotels and other accommodations.

• The professional and business services supersector is compromised of advertising and public relations services; computer systems design and related services; employment services, management, scientific, and technical consulting services; and scientific research and development services

• As its name implies, the transportation and warehousing and utilities supersector consists of three subsectors: (1) air transportation; (2) truck transportation and warehousing; and (3) utilities

• The wholesale and retail trade supersectors consists of the wholesale trade subsector and the retail trade subsector which include: automobile dealers; clothing, accessory, and general merchandise stores; and grocery store

• The leisure and hospitality sectors are comprised of three subsectors: the arts, entertainment, and recreation subsector; food services and drinking places; and hotels and other accomodations.

• Belief that without manufacturing there will be less for people to service and so more people available to do less work.

• The rich get richer and poor get porer

• Branch of philosophy dealing with what is good and bad and with moral duty and obligation.

• Comprises moral principles and standards that guide behavior in the business world. • The distinction between ordinary decision and an ethical one is that values and judgement plays critical role in ethical decision, Ordinary decision are generally decided utilizing a set of preordained acceptable rules.

- Opportunities for ethical misconduct within the service sector can be attributed predominantly to the intangibility, heterogeneity, and inseparability dimensions inherent in the provision of services

- Opportunities for ethical misconduct within the service sector can be attributed predominantly to the intangibility, heterogeneity, and inseparability dimensions inherent in the provision of services

- complicates the consumer's ability to evaluate objectively the quality of service provided.

- reflects the difficulty in standardization and quality control.

- reflects the human element involved in the service delivery process.

search attributes can be determined prior to purchase and include such attributes as touch, smell, visual cues, and taste. However, due to the intangibility of services, consumers of services often must base their purchase decisions on information provided by the service provider.

As a consumer, how do you know whether your doctor, lawyer, broker, priest, or minister is competent at his or her job? Customers often resort to evaluating information that surrounds the service as opposed to the core service itself when forming evaluations since there is little to no information.

service providers may not be held accountable for their actions in the short run. This could lead to a scenario where unethical service providers may maximize their short-term gains at the expense of consumers' long-term benefits.

when the consumer experiences difficulties with an unscrupulous provider, there are few or no means of seeking quick retribution

many service providers deliver their services outside their firm, these particular service providers often are not under direct supervision and may act in a manner inconsistent with organizational objectives

Many services are customized, requiring different skills of the service provider, and often consumers are exposed to different providers within the same firm. The bottom line is that variability in performance is unavoidable.

The reward system of an organization often dictates the behavior of its employees, this may encourage, albeit unintentionally, the unethical conduct of its employees.

consumers often feel that they didn't explain themselves clearly enough and will accept much of the blame to avoid a confrontation with the service provider, this situation further removes service providers from taking responsibility for their own actions.

Service providers are often in close proximity to customers during the provision of services.

Service providers from working organizational relationships with a variety of role partners, including customers, suppliers, peers, subordinates, supervisors, and others.

Honesty is a partner of truthfulness, integrity, and trustworthiness.

Fairness is an outcome of just treatment, equity, and impartiality.

Ethical issues also arise through the communication that the service organization releases to the public.

Service organizations should stress the importance of ethical conduct by employees for several reasons. First, in terms of social responsibility, service organizations should be required to act in a manner that is in the best interest of society. Secondly, employees forced to deal with ethical issues on a continuing basis frequently suffer from job related tension, frustration, anxiety, ineffective performance, turnover intentions, and lower job satisfaction

The adverse effects of unethical decision making may lead service firms to try to control the ethical behavior of their employees in a number of ways. Suggestions for controlling and managing ethical behavior include:

It refers to the process through which an individual adapts and comes to appreciate the values, norms, and required behavior patterns of an organization.

As part of the socialization process, formal standards of conduct can be presented to service employees through a code of ethics.

For the service firm's code of ethics to be effective, the conditions set forth in it must be enforced. Enforcement of the code of ethics may be accomplished through corrective control, the use of rewards, and punishment.

Service firms need to constantly train all employees concerning the details of what the service product can and cannot provide.

Another possible method of controlling ethical decisionmaking is the measurement of employee ethical performance.

Service providers must build trusting relationships between themselves and their customers to promote a long-term, mutually beneficial relationship.