A service is the intangible equivalent of a good In macroeconomics and accounting, a good is contrasted with a service. In this sense, a good is defined as a physical product, capable of being delivered to a purchaser and involves the transfer of ownership from seller to customer, say an apple, as opposed to an (intangible) service, say a haircut. A more general term that preserves the. Service provision is often an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusive ownership Ownership is the state or fact of exclusive rights and control over property, which may be an object, land/real estate or intellectual property. Ownership involves multiple rights, collectively referred to as title, which may be separated and held by different parties. The concept of ownership has existed for thousands of years and in all cultures of the thing purchased. The benefits of such a service, if priced, are held to be self-evident in the buyers willingness to pay for it. Public services are those society pays for as a whole through taxes and other means.

By composing and orchestrating the appropriate level of resources A resource is any physical or virtual entity of limited availability that needs to be consumed to obtain a benefit from it. In most cases, commercial or even ethic factors require resource allocation through resource management, skill A skill is the learned capacity to carry out pre-determined results often with the minimum outlay of time, energy, or both. Skills can often be divided into domain-general and domain-specific skills. For example, in the domain of work, some general skills would include time management, teamwork and leadership, self motivation and others, whereas, ingenuity Ingenuity refers to the process of applying ideas to solve problems or meet challenges. The process of figuring out how to cross a mountain stream using a fallen log, build an airplane from a sheet of paper, or start a new company in a foreign culture all involve the exercising of ingenuity. Human ingenuity has led to technological developments,and experience Experience as a general concept comprises knowledge of or skill in or observation of some thing or some event gained through involvement in or exposure to that thing or event. The history of the word experience aligns it closely with the concept of experiment for effecting specific benefits for service consumers, service providers participate in an economy Economics is the social science that is concerned with the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek οἰκονομία from οἶκος (oikos, "house") + νόμος (nomos, "custom" or "law"), hence "rules of the house(hold)". Current without the restrictions of carrying stock The stock or capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors. Stock is distinct from the property and the assets of a business which may fluctuate in (inventory) or the need to concern themselves with bulky raw materials. On the other hand, their investment Investment is the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in form of interest, income, or appreciation of the value of the instrument. It is related to saving or deferring consumption. Investment is involved in many areas of the economy, such as business management and in expertise does require consistent service marketing and upgrading in the face of competition Competition is a contest between individuals, groups, nations, animals, etc. for territory, a niche, or a location of resources. It arises whenever two or more parties strive for a goal which cannot be shared. Competition occurs naturally between living organisms which co-exist in the same environment. For example, animals compete over water which has equally few physical restrictions. Many so-called services, however, require large physical structures and equipment, and consume large amounts of resources, such as transportation services and the military.

Providers of services make up the tertiary sector of the economy The tertiary sector of the economy is one of the three economic sectors, the others being the secondary sector (approximately manufacturing) and the primary sector (extraction such as mining, agriculture and fishing). The general definition of the tertiary sector is producing a service instead of just an end product, in the case of the secondary.

Contents

Service characteristics

Services can be paraphrased in terms of their generic key characteristics.

1. Intangiblity

Services are intangible Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured, which are created through time and/or effort and that are identifiable as a separate asset. There are two primary forms of intangibles - legal intangibles (such as trade secrets , copyrights, patents, trademarks, and goodwill) and and insubstantial: they cannot be touched, gripped, handled, looked at, smelled, tasted or heard. Thus, there is neither potential nor need for transport, storage A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses load and or stocking of services. Furthermore, a service cannot be (re)sold or owned by somebody, neither can it be turned over from the service provider to the service consumer nor returned from the service consumer to the service provider. Solely, the service delivery can be commissioned to a service provider who must generate and render the service at the distinct request of an authorized service consumer.

2. Perishability

Services are perishable in two regards

3. Inseparability

The service provider is indispensable for service delivery as he must promptly generate and render the service to the requesting service consumer. In many cases the service delivery is executed automatically but the service provider must preparatorily assign resources and systems and actively keep up appropriate service delivery readiness and capabilities. Additionally, the service consumer is inseparable from service delivery because he is involved in it from requesting it up to consuming the rendered benefits. Examples: The service consumer must sit in the hair dresser's shop & chair or in the plane & seat; correspondingly, the hair dresser or the pilot must be in the same shop or plane, respectively, for delivering the service.

4. Simultaneity

Services are rendered and consumed during the same period of time. As soon as the service consumer has requested the service (delivery), the particular service must be generated from scratch without any delay and friction and the service consumer instantaneously consumes the rendered benefits for executing his upcoming activity or task.

5. Variability

Each service is unique. It is one-time generated, rendered and consumed and can never be exactly repeated as the point in time, location, circumstances, conditions, current configurations and/or assigned resources are different for the next delivery, even if the same service consumer requests the same service. Many services are regarded as heterogeneous or lacking homogeneity and are typically modified for each service consumer or each new situation (consumerised). Example: The taxi service which transports the service consumer from his home to the opera is different from the taxi service which transports the same service consumer from the opera to his home - another point in time, the other direction, maybe another route, probably another taxi driver and cab.

Each of these characteristics is retractable per se and their inevitable coincidence complicates the consistent service conception and make service delivery a challenge in each and every case. Proper service marketing requires creative visualization Creative visualization refers to the practice of seeking to affect the outer world via changing one's thoughts. Creative Visualization is the basic technique underlying positive thinking and is frequently used by athletes to enhance their performance. The concept originally arose in the US with the nineteenth century New Thought movement. One of to effectively evoke a concrete image in the service consumer's mind. From the service consumer's point of view, these characteristics make it difficult, or even impossible, to evaluate or compare services prior to experiencing the service delivery.

Mass generation and delivery of services is very difficult. This can be seen as a problem of inconsistent service quality. Both inputs and outputs to the processes involved providing services are highly variable, as are the relationships between these processes, making it difficult to maintain consistent service quality. For many services there is labor intensity as services usually involve considerable human activity, rather than a precisely determined process; exceptions include utilities A public utility is an organization that maintains the infrastructure for a public service (often also providing a service using that infrastructure). Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies. Common arguments in favor of regulation include. Human resource management is important. The human factor is often the key success factor in service economies. It is difficult to achieve economies of scale Economies of scale, in microeconomics, are the cost advantages that a business obtains due to expansion. They are factors that cause a producer’s average cost per unit to fall as scale is increased. Economies of scale is a long run concept and refers to reductions in unit cost as the size of a facility, or scale, increases. Diseconomies of scale or gain dominant market share Market share, in strategic management and marketing is, according to Carlton O'Neal, the percentage or proportion of the total available market or market segment that is being serviced by a company. It can be expressed as a company's sales revenue divided by the total sales revenue available in that market. It can also be expressed as a company's. There are demand fluctuations and it can be difficult to forecast demand In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity, and the amount of it that consumers are willing and able to purchase at that given price. It is a graphic representation of a demand schedule. The demand curve for all consumers together follows from the demand curve of every individual. Demand can vary by season A season is a division of the year, marked by changes in weather, ecology, and hours of daylight, time Time is "a nonspatial continuum in which events occur in apparently irreversible succession from the past through the present to the future." It is used to sequence events, to quantify the durations of events and the intervals between them, and to quantify and measure the motions of objects and other changes. Time is quantified in of day, business cycle The term business cycle refers to economy-wide fluctuations in production or economic activity over several months or years. These fluctuations occur around a long-term growth trend, and typically involve shifts over time between periods of relatively rapid economic growth (expansion or boom), and periods of relative stagnation or decline (, etc. There is consumer involvement as most service provision requires a high degree of interaction between service consumer and service provider A service provider is an entity that provides services to other entities. Usually this refers to a business that provides subscription or web service to other businesses or individuals. Examples of these services include Internet access, Mobile phone operator, and web application hosting. The term is more often applied to communication services. There is a customer-based relationship based on creating long-term business relationships. Accountants, attorneys, and financial advisers maintain long-term relationships with their clientes for decades. These repeat consumers refer friends and family, helping to create a client-based relationship.

Service definition

The generic clear-cut, complete and concise definition of the service term reads as follows:

A service is a set of singular and perishable benefits

=D

Service specification

Any service can be clearly, completely, consistently and concisely specified by means of the following 12 standard attributes which conform to the MECE principle (Mutually Exclusive, Collectively Exhaustive)

  1. Service Consumer Benefits
  2. Service-specific Functional Parameters
  3. Service Delivery Point
  4. Service Consumer Count
  5. Service Delivering Readiness Times
  6. Service Support Times
  7. Service Support Languages
  8. Service Fulfillment Target
  9. Service Impairment Duration per Incident
  10. Service Delivering Duration
  11. Service Delivery Unit
  12. Service Delivering Price

The meaning and content of these attributes are:

1. Service Consumer Benefits describe the (set of) benefits which are triggerable, consumable and effectively utilizable for any authorized service consumer and which are rendered to him as soon as he trigger one service. The description of these benefits must be phrased in the terms and wording of the intended service consumers.

2. Service-specific Functional Parameters specify the functional parameters which are essential and unique to the respective service and which describe the most important dimension(s) of the servicescape, the service output or the service outcome, e.g. maximum e-mailbox capacity per registered and authorized e-mail service consumer.

3. Service Delivery Point describes the physical location and/or logical interface where the benefits of the service are triggered by and rendered to the authorized service consumer. At this point and/or interface, the preparedness for service delivery readiness can be assessed as well as the effective delivery of the service itself can be monitored and controlled.

4. Service Consumer Count specifies the number of intended, clearly identified, explicitly named, definitely registered and authorized service consumers which shall be and/or are allowed and enabled to trigger and consume the commissioned service for executing and/or supporting their business tasks or private activities.

5. Service Delivering Readiness Times specify the distinct agreed times of every day of the week when

The time data are specified in 24 h format per local working day and local time, referring to the location of the intended and/or triggering service consumers.

6. Service Support Times specify the determined and agreed times of every day of the week when the triggering and consumption of commissioned services is supported by the service desk team for all identified, registered and authorized service consumers within the service customer's organizational unit or area. The service desk is/shall be the so called the Single Point of Contact (SPoC) for any service consumer inquiry regarding the commissioned, triggered and/or rendered services, particularly in the event of service denial, i.e. an incident. During the defined service support times, the service desk can be reached by phone, e-mail, web-based entries and/or fax, respectively. The time data are specified in 24 h format per local working day and local time, referring to the location of the intended service consumers.

7. Service Support Languages specifies the national languages which are spoken by the service desk team(s) to the service consumers calling them.

8. Service Fulfillment Target specifies the service provider's promise of effectively and seamlessly delivering the specified benefits to any authorized service consumer triggering a service within the specified service times. It is expressed as the promised minimum ratio of the counts of successful individual service deliveries related to the counts of triggered service deliveries. The effective service fulfillment ratio can be measured and calculated per single service consumer or per service consumer group and may be referred to different time periods (workday, calenderweek, workmonth, etc.)

9. Service Impairment Duration per Incident specifies the allowable maximum elapsing time [hh:mm] between

10. Service Delivering Duration specifies the promised and agreed maximum period of time for effectively rendering all specified service consumer benefits to the requesting service consumer at his currently chosen service delivery point.

11. Service Delivery Unit specifies the basic portion for rendering the defined service consumer benefits. The service delivery unit is the reference and mapping object for the Service Delivering Price, for all service costs as well as for charging and billing the consumed service volume to the service customer who has commissioned the service delivery.

12. Service Delivering Price specifies the amount of money the service customer has to pay for the distinct service volumes his authorized service consumers have consumed. Normally, the service delivering price comprises two portions

Service delivery

The delivery of a service typically involves six factors:

The service encounter is defined as all activities involved in the service delivery process. Some service managers use the term "moment of truth" to indicate that defining point in a specific service encounter where interactions are most intense.

Many business theorists Contents: Top · 0–9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z view service provision as a performance or act (sometimes humorously referred to as dramalurgy, perhaps in reference to dramaturgy Dramaturgy is the art of dramatic composition and the representation of the main elements of drama on the stage. Some dramatists combine writing and dramaturgy when creating a drama. Others work with a specialist, called a dramaturg, to adapt a work for the stage). The location of the service delivery is referred to as the stage In theatre, the stage is a designated space for the performance of theatrical productions. The stage serves as a space for actors or performers and a focal point for the members of the audience. As an architectural feature, the stage may consist of a platform (often raised) or series of platforms. In some cases, these may be temporary or and the objects that facilitate the service process are called props A theatrical property, commonly referred to as a prop, is any object held or used on stage by an actor for use in furthering the plot or story line of a theatrical production. Smaller props are referred to as "hand props". Larger props may also be set decoration, such as a chair or table. The difference between a set decoration and a. A script is a sequence of behaviors Behavior, or behaviour , refers to the actions of an organism or system, usually in relation to its environment, which includes the other organisms or systems around as well as the physical environment. It is the response of the organism or system to various stimuli or inputs, whether internal or external, conscious or subconscious, overt or followed by all those involved, including the client(s). Some service dramas Drama is the specific mode of fiction represented in performance, though it has also come to refer to a specific genre of fiction involving a serious mood and conflict. The term comes from a Greek word meaning "action" (Classical Greek: δρᾶμα, drama), which is derived from "to do" (Classical Greek: δράω, drao). The are tightly scripted, others are more ad lib Ad libitum is Latin for "at [one's] pleasure"; it is often shortened to "ad lib" or "ad-lib" (as a verb or noun). The roughly synonymous phrase a bene placito ("at [one's] good pleasure") is less common but, in its Italian form a piacere, entered the musical lingua franca (see below). Role congruence occurs when each actor An actor or actress is a person who acts in a dramatic production and who works in film, television, theatre, or radio in that capacity. The ancient Greek word for an "actor," ὑποκριτής (hypokrites), means literally "one who interprets"; in this sense, an actor is one who interprets a dramatic character follows a script that harmonizes with the roles A role or a social role is a set of connected behaviors, rights and obligations as conceptualized by actors in a social situation. It is an expected or free or continuously changing behavior and may have a given individual social status or social position. It is vital to both functionalist and interactionist understandings of society. Social role played by the other actors.

In some service industries, especially health care, dispute resolution, and social services, a popular concept is the idea of the caseload, which refers to the total number of patients, clients, litigants, or claimants that a given employee is presently responsible for. On a daily basis, in all those fields, employees must balance the needs of any individual case against the needs of all other current cases as well as their own personal needs.

Under English law English law is the legal system of England and Wales, and is the basis of common law legal systems used in most Commonwealth countriesand the United States . It was exported to Commonwealth countries while the British Empire was established and maintained, and it forms the basis of the jurisprudence of most of those countries. English law prior to, if a service provider is induced to deliver services to a dishonest Dishonesty is a word which, in common usage, may be defined as the act or to act without honesty. It is used to describe a lack of probity, cheating, lying or being deliberately deceptive or a lack in integrity, knavishness, perfidiosity, corruption or treacherousness. It is used about charlatanism and quacks client by a deception, this is an offence under the Theft Act 1978 The Theft Act 1978—an Act of the Parliament of the United Kingdom— supplemented the earlier deception offences in British law contained in sections 15 and 16 of the Theft Act 1968 by reforming some aspects of those offences and adding new provisions. Sections 1 and 2 were repealed on 15 January 2007 with the implementation of the Fraud Act 2006.

Service-Goods continuum Service output in 2005

The service-goods continuum

The dichotomy between physical goods and intangible services should not be given too much credence. These are not discrete categories. Most business theorists see a continuum with pure service on one terminal point and pure commodity good A commodity is a good for which there is demand, but which is supplied without qualitative differentiation across a market. It is fungible, i.e. equivalent no matter who produces it. Examples are petroleum, notebook paper, milk or copper. The price of copper is universal, and fluctuates daily based on global supply and demand. Stereo systems, on on the other terminal point.[citation needed] Most products The noun product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce, from the Latin prōdūce '(to) lead or bring forth'. Since 1575, the word "product" has referred to anything produced. Since 1695, the word has referred to "thing or things fall between these two extremes. For example, a restaurant A restaurant prepares and serves food, drink and dessert to customers. Meals are generally served and eaten on premises, but many restaurants also offer take-out and food delivery services. Restaurants vary greatly in appearance and offerings, including a wide variety of cuisines and service models provides a physical good (the food Food is any substance or material eaten to provide nutritional support for the body or for pleasure. It usually consists of plant or animal origin, that contains essential nutrients, such as carbohydrates, fats, proteins, vitamins, or minerals, and is ingested and assimilated by an organism to produce energy, stimulate growth, and maintain life), but also provides services in the form of ambience, the setting and clearing of the table, etc. And although some utilities actually deliver physical goods — like water utilities which actually deliver water — utilities are usually treated as services.

In a narrower sense, service refers to quality Quality in business, engineering and manufacturing has a pragmatic interpretation as the non-inferiority or superiority of something. Quality is a perceptual, conditional and somewhat subjective attribute and may be understood differently by different people. Consumers may focus on the specification quality of a product/service, or how it compares of customer service According to Jamier L. Scott. , “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation.": the measured appropriateness of assistance and support provided to a customer. This particular usage occurs frequently in retailing Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer".

List of economic services

In 2005, USA was the largest producer of services followed by Japan and Germany, reports the International Monetary Fund The International Monetary Fund is the international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rate and the balance of payments. Services accounted for 78.5% of the U.S. economy The economy of the United States is the world's largest nominal economy. Its nominal GDP was estimated at $14.2 trillion in 2009, which is about three times that of the world's second largest national economy, Japan. Its GDP by PPP is almost twice that of the second largest, China. The U.S. economy maintains a very high level of output per person in 2007[1], compared to 20% in 1947.

The following is an incomplete list of service industries, grouped into rough sectors. Parenthetical notations indicate how specific occupations A profession is a vocation founded upon specialised educational training, the purpose of which is to supply disinterested counsel and service to others, for a direct and definite compensation, wholly apart from expectation of other business gain and organizations An organization is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon can be regarded as service industries to the extent they provide an intangible service, as opposed to a tangible good.

See also

Finding related topics

References

  1. ^ CIA World Factbook: https://www.cia.gov/library/publications/the-world-factbook/fields/2012.html
Regarding Service Characteristics

Categories: Economics terminology | Goods | Services management and marketing | Marketing | Supply chain management terms

 

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Fully agree with Ms Coenen and people working in the financial . service. have been noting this for quite some time since people who present themselves at a bank, Insurance or any other related office immediately show that they do not have ...

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which major is better Physician Assistant or health service administration?
Q. Physician Assistant has a lot of interesting courses and health service administration is shorter and has economics involved ( im not very good with numbers( howver the only economic course i took i hada very bad professor )
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A. There is no such things as a better major; go with what you desire remember that this is something you are going to be doing for a while so may as well enjoy it!
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