Indrianti KAPITA 01-1314 14. Industri Jasa

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SERVICES

Kapita Selekta Industri_01-1314

14. Industri Jasa

Ir. Nur Indrianti, M.T., D.Eng.

Teknik Industri UPNVY

Slide 11-2

The Service Sector

Service sector: Largest and most rapidly expanding part of economies of advanced industrial nations

In the United States, services plus fire, insurance, real estate sector employs about 42% of labor force; accounts for $4.2 trillion of GDP in 2005

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Growth of goods and services exports, 1980-2000

0

50

100

150

200

250

300

350

400

1980 82 84 86 88 90 92 94 96 98

2000

Perc

en

tag

e (

1980=

100)

0

1500

3000

4500

6000

7500

9000

10500

12000

Bil

lio

n $

Goods Services

Services growth

Goods growth

GDP growth

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Share of commercial services and goods in

world trade, 1980-2000

Goods

84%

16%Services 1980

2000 Services 19%

81%

Goods 6

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Service Industry - Facts

Service industries generate over 2/3rd of GNP and

employment in developed countries - ISSN Journal Volume 22,

2004)

9 out of 10 jobs are created by Services economy – “Delivering Service Quality” by Valerie, Parsuraman and Leonard”;

Of the top 100 revenue earners worldwide, 55% are

service firms – www.service-growth.com

Top service firm in revenue worldwide – Wal-Mart is

a service firm;

Service firms produced 45% more revenue per

employee than manufacturing firms;

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The Role of Global Services in the

World Economy

The rise of the service sector is a global phenomenon.

Economies of developing countries generally first establish agricultural and manufacturing sectors before entering into the services sector.

As more countries enter the sector, the global services business will become more competitive.

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Global Transformations in the

Services Sector

The rise in services trade is due to changes in the environment and in technology.

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Global Transformations in the

Services Sector

Reduction of government regulation.

Technological advancement.

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Differences Between Sales and Goods

“a good is an object, a device, a thing;”

“a service is a deed, a performance, an effort.”

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Links Between Services and Goods

Services may complement goods; at other times, goods may complement services.

Characteristics of Service

Involves the guest’s experience and the staff’s performance

Guest and server are both part of transaction

Quality control is difficult

Standard must be zero defects

Production and consumption are simultaneous (There is no inventory)

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Service Industries

Retailing;

Distribution;

Financial services – banking, insurance;

Hotels and tourism;

Leisure, recreation, entertainment;

Professional and business services like accountancy, marketing, law, consulting;

Healthcare;

Software etc.

Examples of Service Industries

Health Care hospital, medical practice, dentistry, eye care

Professional Services accounting, legal, architectural

Financial Services banking, investment advising, insurance

Hospitality restaurant, hotel/motel, bed & breakfast, ski resort, rafting

Travel airlines, travel agencies, theme park

Others: hair styling, pest control, plumbing, lawn maintenance, counseling services, health club

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Characteristics of Services Intangibility - Lack of tangible assets which can be seen, touched, or smelled prior to purchase.

Perishability - Inability of a service to be inventoried or stored.

Inseparability - Simultaneous production and consumption of a service.

Variability - Unwanted or random levels of service quality customers receive when they patronize a service firm.

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Differences Between

Goods and Services

Intangibility

Perishability

Simultaneous Production

and Consumption

Heterogeneity

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Figure 1-1

Tangibility Spectrum

Tangible

Dominant

Intangible

Dominant

Salt Soft Drinks

Detergents

Automobiles

Cosmetics

Advertising Agencies

Airlines Investment

Management Consulting

Teaching

Fast-food Outlets

Fast-food Outlets

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Implications of Intangibility

Services cannot be inventoried

Services cannot be patented

Services cannot be readily displayed or communicated

Pricing is difficult

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Implications of Heterogeneity

Service delivery and customer satisfaction depend on employee actions

Service quality depends on many uncontrollable factors

There is no sure knowledge that the service delivered matches what was planned and promoted

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Implications of Simultaneous

Production and Consumption

Customers participate in and affect the transaction

Customers affect each other

Employees affect the service outcome

Decentralization may be essential

Mass production is difficult

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Implications of Perishability

It is difficult to synchronize supply and demand with services

Services cannot be returned or resold

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Services are Different Goods Services Resulting ImplicationsTangible Intangible Services cannot be inventoried.

Services cannot be patented.Services cannot be readily displayed or communicated.Pricing is difficult.

Standardized Heterogeneous Service delivery and customer satisfaction depend onemployee actions.Service quality depends on many uncontrollable factors.There is no sure knowledge that the service deliveredmatches what was planned and promoted.

Productionseparate fromconsumption

Simultaneousproduction andconsumption

Customers participate in and affect the transaction.Customers affect each other.Employees affect the service outcome.Decentralization may be essential.Mass production is difficult.

Nonperishable Perishable It is difficult to synchronize supply and demand withservices.Services cannot be returned or resold.

Source: Adapted from Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry, “Problems and Strategies in Services Marketing,”

Journal of Marketing 49 (Spring 1985): 33-46.

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Pure

Service

Categories of Service Mix

Tangible

Good

w/

Services

Major

Service

w/ Goods

Hybrid

Pure

Tangible

Good

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Three Types of Marketing

in Service Industries

Internal marketing

Company

Customers

External marketing

Employees Interactive marketing

Cleaning/ maintenance

services

Financial/ banking services

Restaurant industry

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Service Differentiation

Offer

Delivery

Image

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Three Types of

Service Transactions

Electronic-mechanical

Indirect personal

Face-to-face

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Service Quality

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Service Quality Gap

The gap between expected and perceived

service is a measure of service quality

Expectation > Service perceived = Exceptional Quality,

Expectations < Service perceived = Unacceptable quality.

Expectations = Service perceived = Satisfactory Quality.

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Word of

Mouth

Perceived

Service

Quality

Personal

Needs

Perceived

Service.

Past

Experience

External

Cummications

Expected

Service

Customers' Assessment of

Service Quality

Dimensions of

Service Quality

Tangibles

Reliability

Responsiveness

Competence

Courtesy

Credibility

Security

Access

Communication

Understanding the

Customer

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Reliability" Ability to perform the promised service dependably & accurately"

Competence"Possession of the required

skills and knowledge to perform the service"

Responsiveness"Willingness to help customers and provide prompt service"

Definition of Dimensions

Security"Freedom from danger, risk, or

doubt"

Access"Approachability and ease of

contact"

Communication"Keeping Customers informed

in language they can understand and listening to

them"

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Dimension Measurements

Reliability – On time delivery performance, Errors in

invoices

Responsiveness – Cycle time (speed)

Access – Availability (24x7), Downtime of web

Credibility – Financial Ratings, Image

Mix of Performance Indicators and Perception Measures

References:

Services, www.siue.edu/~akutan/mba532/ch15.ppt‎

E-Commerce: business. technology. Society, Kenneth C. Laudon Carol Guercio Traver, www.sci.brooklyn.cuny.edu/...ppt/Laudon_Traver_3E_Chapter11_Final

Challenges of Measurements in Service Industry, www.slideshare.net/venkypalu/service-managementppt12‎

The Role of Service in the Hospitality Industry, ww2.mccombs.utexas.edu/faculty/.../PowerPointLectures/Economy1.p..

Services Marketing, www1.ximb.ac.in/users/fac/mnt/mnt.nsf/.../Services%20Marketing.ppt‎

Designing and Managing Services, www.ctp.bilkent.edu.tr/~meltem/Chap14.ppt

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