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Service Typologies: A State of The Art Survey. Cook, D. P., Goh, C-H, and Chung, C. H. (1999), “Service Typologies: A State of The Art Survey”, Production and Operations Management, 8(3), pp. 318-338. Outline. Introduction Definition of Services Historical Perspective of Service Typologies
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Service Typologies:A State of The Art Survey Cook, D. P., Goh, C-H, and Chung, C. H. (1999), “Service Typologies: A State of The Art Survey”, Production and Operations Management, 8(3), pp. 318-338.
Outline • Introduction • Definition of Services • Historical Perspective of Service Typologies • Integrated Schematic Representation and Areas for Further Research • Conclusions
Introduction (1) • Services comprise an ever-expanding source of employment in the world’s economies and are of significant interest to both academicians and practitioners. • Services have become an integral part of modern society. • Service sector which employed approximately 64% of the U.S. workforce in 1965, • 1997 employs in excess of 75% of the U.S. workforce. • By the year 2000, it is predicted that nearly 80%of the U.S. workforce will work in the service sector of the economy (Murdick et al., 1990).
Introduction (2) “Service Typologies” • Hambrick (1984, p. 27) states “to classify things is to know one or two key attributes about an object and then infer (sometimes reliably, sometimes not so reliably) other attributes of the object.” • The utility of service classification schemes ultimately lies in their ability to facilitate the development of meaningful strategies and guidelines for service marketing and operations.
Introduction (contributions) • This paper provides a comprehensive review regarding of service typologies. • This study identifies the need to integrate both the product and process aspects of the service to improve the service delivery system. • The paper concentrates on classification schemes based on operations and marketing viewpoints. It also identifies opportunities for future cross-functional research that integrates organizational ownership, marketing, and operational issues so that more effective organizational strategies and guidelines can be formulated.
Definition of Services (1) • Definitions of service have ranged form the narrow to the broad, with most narrow definitions of services relying upon listing industries contained in the service sectors.
Definition of Services (2) • Activities, benefits, or satisfactions which are offered for sale, or are provided in connection with the sale of goods. Examples are amusements, hotel service, electric service, transportation, the services of barber shops and beauty shops, repair and maintenance service, the work of credit rating bureaus. This list is merely illustrative and no attempt has been made to make it complete. The term also applies to the various activities such as credit extension, advice and help of sales people, delivery, by which the seller serves the convenience of his customers (Definitions Committee of the American Marketing Association 1960, p. 21). • Judd (1964) argues that the above definition is imprecise because of its dependence upon listed examples.
Definition of Services (3) • The U.S. Government Standard Industrial Classification (1972, p. 295) definition also relies heavily upon listed examples and includes those organizations that are: • …primarily engaged in providing a wide variety of services for individuals, business and government establishments, and other organizations. Hotels and other lodging places, establishments providing personal, business, repair and amusement services; health, legal, engineering, and other professional services, educational institutions, membership organizations, and other miscellaneous services are included.
Definition of Services (4) • Quinn, Baruch, and Paquette (1987, p. 50) define services to: • “include all economic activities whose output is not a physical product or construction, is generally consumed at the time it is produces, and provides added value in forms (such as convenience, amusement, timeliness, comfort, or health) that are essentially intangible concerns of its first purchaser.” • (This definition of services provides a good way to delineate the service sector of our economy, but does so without the limitations of strictly listing components of the service sector).
Definition of Services (5) • Murdick, Render, and Russell (1990, p. 4) propose the following definition: • Services can be defined as economic activities that produce time, place, form, or psychological utilities. A maid service saves the customer’stime from doing household chores himself or herself. Department stores and grocery stores provide many commodities for sale in one convenientplace. A database services puts together information in a form more useful for the manager. A “night out” at a restaurant provides psychologicalrefreshment in the middle of a busy workweek.
Definition of Services (6) • Services are deeds, processes, and performances (Zeithaml and Bitner, 1996). • (Services cannot be entirely divorced from manufactured goods, since almost all services are accompanies by facilitating goods.) • The distinction between goods and services is not clear-cut, and an easy dichotomy between manufacturing and service firms does not exist (Berry and Parasuraman, 1991).
3.2A Move Toward Theory Verification • The importance of employees, customization, the customer’s ability to switch firms, employee/customer contact, services directed at people or things, continuous benefits and differentiation. • Three cluster (high-contact, customized, personal services; moderate contact, semi-customized, non-personal services; and moderate contact, standardized services. • Three-category typology (professional service, service shop, and mass service)
3.4Recent Conceptual Models • The service process structure is divided into three categories, expert service, service shop, and service factory, based on customer influence. • The service package structure is defined in terms of unique, selective, restricted, and generic service package. • The three categories of services are people-processing service, possession-processing service, and information-based services.
4.Integrated Schematic Representation and Areas for Further Research
4.1 Marketing-Oriented Service Dimension • Tangibility • Differentiation • Object of transformation • Type of customer • commitment
4.2 Operations-Oriented Service dimensions • Customer Contact • Capital Intensity • Customer Involvement • Employee/Provider Discretion • Production Process
4.3. Interactions and Integration of Marketing and Operations • The customization of products is a dimension that is intimately related to both product and process-oriented criteria. Customization is essentially the extent to which a product offering will work to satisfy the customer’s needs/wants.
4.4. Social/Economic Environment • It should also systematically scan the overall economic and social environment. Environmental changes can pose both challenges and opportunities for the organization.
