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| A _______ is an activity that is intangible, exchanged directly from producer to consumer, and consumed at the time of production. |
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| ____________________ is the amount if income left after paying basic living expenses and taxes. |
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| ___________ means that the service cannot be touched, seen tasted, heard, or felt. |
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| ____________ means that the service is produced and consumed at the same time. |
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| __________ means that services unused in one time period cannot be stored for use in the future. |
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| ______________ means there are differences between services. |
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| ________________ refers to the amount of human effort required to deliver a service. |
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| ________________ is defined as the degree to which the service meets customers’ needs and expectations. |
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| ____________ is an advertisement in which a satisfied user publicly expresses approval of a product or service. |
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| ____________ is the practice of combining several related services for one price. |
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| The increased prosperity of our economy is one reason for the growth in the U.S. service sector. |
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| Four reasons for the growth of service industries |
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Definition
- Prosperity
- Automation
- Complexity
- Foreign Competition
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| Companies use fewer people to produce their goods because of the increasing use of technology. |
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| Many high-technology products require complex installation, repair, and training. |
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| The expansion of international trade. Businesses can produce goods and services more efficiently than other countries. |
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| Four unique qualities of services |
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Definition
- Intangible
- Inseparable
- Perishable
- Heterogeneous
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| Intangible service quality |
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Definition
| Intangible means that the service cannot be touched, seen tasted, heard, or felt. Examples of intangible services include haircuts, vision examinations, and vacation planning. |
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| Inseparable service quality |
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| Inseparable means that the service is produced and consumed at the same time. Services such as a college class, a facial, or a car repair are produced and consumed simultaneously. |
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| Perishable service quality |
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| Perishable means that services unused in one time period cannot be stored for use in the future. An example of this is a lawn care service cannot be bought more than once at a time. |
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| Heterogeneous service quality |
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Definition
| Heterogeneous means there are differences between services. Since people differ in their skill level or even their enthusiasm for a job, the service is often not consistent. |
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| Service Quality Classifications |
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Definition
- Type of Market
- Goals of the Organization
- Labor intenseness
- Level of skill
- Customer contact
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- Business consumers
- Individual consumers
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| Goals of the Organization |
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| Profit-making and nonprofit organizations are examples of goals of organizations. |
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| The amount of customer contact a service provider has in another way to classify services. Barbers, doctors, schools, hotels, and restaurants have high customer contact. |
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| The most common way to categorize based on skill levels is to divide the providers into professional and nonprofessional groups. Professionals include providers whose services tend to be more complex and more highly regulated than nonprofessional services. |
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