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Marketing in theNew Economy
InternetMarketing
CRM
CRM
IntlMarketing
ServiceMarketing
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SERVICES
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Service Perspectives:
Not a Product
Intangible humanact- that isproduced at the
time ofconsumption &cant bestandardized orinventoried
No Difference-Products are just
appliances thatprovide services-
Shift perspectivefrom Mfgr toconsumer andfocus on benefits
No One-Automation,Virtualization
&
Outsourcing
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Defining -a Service
An act or performance offered by oneparty for another
An economic activity that does not
result in ownership
A processthat creates benefitsby
facilitating a desired change in:customers themselvesget a haircut
physical possessions-get a wig
intangible assets-get therapy
http://images.google.com/imgres?imgurl=http://ects.in/ects/homefiles/services.jpg&imgrefurl=http://ects.in/ects/services.html&usg=__XKVbZfhSiEQbJpNmacEaMmlDkf4=&h=300&w=300&sz=10&hl=en&start=12&sig2=OUqOMUSbjKrWWu11HtCRNg&tbnid=bL-c_DcedSyzcM:&tbnh=116&tbnw=116&prev=/images%3Fq%3Dservices%26hl%3Den%26rlz%3D1T4GGLG_enUS315US315&ei=gBXySprBO5OKswON6uwV -
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Service as process.
People Processing PossessionProcessing
Mental StimulusProcessing
InformationProcessing(directed at intangible assets)
e.g., airlines, hospitals,
haircutting, restaurants
hotels, fitness centers
e.g., transport, repair,
cleaning, landscaping,
retailing, recycling
e.g. media, consulting,
education, psychotherapy
e.g., accounting, banking,
insurance, legal, research
TANGIBLE
ACTS
INTANGIBLE
ACTS
DIRECTED AT
PEOPLE
DIRECTED AT
POSSESSIONSWhat is the
Nature of theService Act?
Who / What is Direct Recipient of the Service?
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Importance of Service Sector
In most countries,services add moreeconomic value than
agriculture, raw materialsand manufacturingcombined
In developed economies,
employment isdominated by servicejobs and most new jobgrowth comes fromservices
http://earthtrends.wri.org/searchable_db/index.php?action=se
lect_countries&theme=5&variable_ID=216
http://earthtrends.wri.org/searchable_db/index.php?action=select_countries&theme=5&variable_ID=216http://earthtrends.wri.org/searchable_db/index.php?action=select_countries&theme=5&variable_ID=216http://earthtrends.wri.org/searchable_db/index.php?action=select_countries&theme=5&variable_ID=216http://earthtrends.wri.org/searchable_db/index.php?action=select_countries&theme=5&variable_ID=216 -
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Changing Structure of Employment
as Economic Development Evolves
Time, per Capita Income
Industry
Services
Agriculture
Source: IMF, 1997
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The Economist, 1996
0
10
20
30
40
50
60
70
80
1820 1840 1860 1880 1900 1920 1940 1960 1980 2000
Year
Per
cent Services
Industry
Agriculture
Waves of Change..
% US WORK-FORCE
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http://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-s
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At present in U.S.
~80% workers are inservice sector
Services account for~80%of U.S. GDP Service occupations is
responsible for~90% jobgrowth0
10
20
30
40
50
60
70
80
90
workers
GDP
Growth
Composition of US GDP
In 2007, 1.2 percent of total US GDP was contributed by agricultural sector.
Industrial sector made up 19.8 percent of US GDP in 2007. Services sector
made up 79 percent of US GDP in that same period
http://www.economywatch.com/gdp/world-gdp/usa.html
http://www.economywatch.com/gdp/world-gdp/usa.htmlhttp://www.economywatch.com/gdp/world-gdp/usa.htmlhttp://www.economywatch.com/gdp/world-gdp/usa.htmlhttp://www.economywatch.com/gdp/world-gdp/usa.html -
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Fast growing services -next decade-predicted by macro-environmental trends..
Changes in workplace-automation, globalization:Computer & data processingBusiness services
Transportation
Increased need/desire torecreate & communicate:Hospitality & TravelInteractive EntertainmentMobile Communication
More People: working more,living longer, living alone:Social servicesHealth services
Residential careChild day-careFinance, Insurance, Real estate
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Services dominate the United States Economy:
GDP by Industry, 2001
Source: Bureau of Economic Analysis, November 2002
Finance, Insurance,Real Estate
20%
Wholesale andRetail Trade
16%
Transport, Utilities,Communications
8%Health
6%BusinessServices
5%
Other Services 11%
Government(mostly services)
13%
Manufacturing 14%
Agriculture, Forestry,Mining, Construction 8%
SERVICES
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http://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-s
US likely to devote "30 %+GDP on health by mid century."
http://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-s -
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Critical Questions
1. What is the debate all aboutregarding how services should bedefined / envisioned?
o How does the definition of a service affect yourmarketing strategy?
2. What are the key Ps to meeting
service management challenges?3. What are some of the factors &
considerations affecting the near
future of services marketing?
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In the olden days- (a few years ago)A Service was defined
categorically according to itstangibility..
Puretangiblegood; noservice
Tangiblegoods with
some
services
Hybrid:equal partgoods and
service
Majorservice
withminorgood
Pureservice;no tangible
good
Milk Computer
& Warranty
Meal at
Restaurant
Legal
Advice
Hair
Styling
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Product - Service Spectrum
TangibleDominant
Intangible
Dominant
SaltSoft Drinks
Detergents
Automobiles
Cosmetics
AdvertisingAgencies
AirlinesInvestment
Management
ConsultingTeaching
Fast-foodOutlets
Fast-foodOutlets
Pure
Service
TangibleGood
w/Services
MajorService
w/ GoodsHybrid
Pure
Tangible
Good
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Customer Evaluation as a Function of Tangibility
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Inseparability
Services cannotbe separated
from theirproviders
Intangibility
Services cannot
be experiencedbeforepurchase
VariabilityQuality of
services dependson who provides
them & when,
where, & how
Perish-ability
Services cannotbe stored for
later sale or use
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Intangibility
Services mrktg:
Describe the
invisibleArticulate the
imaginary
& Define the
indistinct
http://images.google.com/imgres?imgurl=http://www.jjtc.com/Gallery/invisible2.jpg&imgrefurl=http://www.jjtc.com/neil/research.html&h=425&w=338&sz=20&tbnid=uJzbgOrrbYwJ:&tbnh=121&tbnw=97&start=59&prev=/images%3Fq%3Dinvisible%2Bman%26start%3D40%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DN -
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Inseparability
Performance &consumption ofservice - happens atsame time(eating @restaurant, staying @ hotel;getting haircut, etc)
Customers participatein & affect the
transaction Customers affect each
other
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Variability-Heterogeneity
Difficult to standardize Delivery, Quality &Customer Satisfactiondepend on employee
actions Employees vary -attitudes,
skills, mood, etc.
No assuranceservice deliveredmatches what wasplanned/ promoted
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Perishability
Can not beinventoried
Difficult tosynchronizesupply & demandwith services
Services cannotbe returned orresold
http://www.swiftprinting.com/seats.jpg -
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MarketingStrategies
that addressshortcoming
Perish-abilityMatch supply
& demand
Intangibility
Tangibilizethe intangible
VariabilitySystematize
serviceproduction& delivery
Inseparability
Increaseprofessionalism
ofemployees
Intangibility
use tangibles to create/convey
identity -signs, uniforms, imagery
Good hands of Allstate/ TravelersUmbrella/ Prudential Rock
standardization difficult
Constantly monitor-regularly evaluate staff
Systemize/franchiseproduction & marketing
Variability Perish-abilityconsumption cannot be storedmatch supply and demand use of part-time staff differential pricing stimulation of off-peak
demand comfortable waiting area reservation system
Inseparabilitysimultaneous production
& consumption importance of service
provider selection, training and
rewarding of staff avoid customer conflict
R i k ti
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Re: service marketingfor decades this has been the thinking-
But is itthe
The Fo r Ser ice Marketing M ths
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The Four Service Marketing Myths:Remnants of a Goods-Based,
Manufacturing Model
The 4 characteristics:
1.Do not distinguish services from goods
2. Only have meaning from amanufacturing perspective, and
3. Suggest inappropriate marketingstrategies
K P i t P d t i diff ti ti
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Key Point- Product-service differentiationis result of industrial age-2nd wave
thinking
Re-Variabilty:
Customizaton not standardization is the goal
Re-Inseparability:
Customer-ization not isolation = goalRe-Perishability:
Services can be/are inventoried (ie-knowledge in databases &experts head) AND Inventory management not maximization is
the objective; Everything is perishableif not in substancecertainly in style
Re: Intangibility:
its not the product that people are buying. Its the
functions served & benefits rendered-as it is w/
services
A hift i ti
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A shift in perspective
Instead of focusing on
product servicedifferences
Focus on consumercommonalities
in consuming &evaluating that whichis purchased
C iti l Q ti
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Critical Questions
1. What is the debate all aboutregarding how services should bedefined / envisioned?
o How does the definition of a service affect yourmarketing strategy?
2. What are the key Ps to meetingservice management challenges?
3. What are some of the factors &considerations affecting the nearfuture of services marketing?
Ch ll
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Challenges for Service MgtSameas Product Mgt
1. Creating & offering the consumer value
2. Communicating a desired & distinct image
3. Create, sustain & enhance customerrelationships
4. Defining- maintaining- improving quality Mind the gaps.
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Service Quality Gaps
Word of Mouth
Communications Personal Needs Past Experience
Expected Service
Perceived Service
Service Delivery
Service Quality Specs
Mgmt. Perceptions of Consumer Expectations
External
Communications
to Consumers
MisunderstandingCommunication
Performance
Overpromising
Expectations
Marketer
Consumer
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Closing the gaps by fine tuning
4 Service Ps
TargetTargetMarketMarket
Product Place
PromotionPrice
TargetTargetMarketMarket
Product Place
PromotionPrice
TargetTargetMarketMarket
Product Place
PromotionPrice
~Process
~People
~Physical
Evidence~Protocol
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People are your Product
In many instances-people performing the
service arethe product They arethe service
and/ororganization in
customers eyes. They are the brand.
R it Hi T i
http://images.google.com/imgres?imgurl=www.municipality.clarington.on.ca/images/clerk.jpg&imgrefurl=http://www.municipality.clarington.on.ca/html/clerks.html&h=162&w=198&prev=/images%3Fq%3Dclerk%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=www.greasespotcafe.com/images/page-images/waitress-gum.jpg&imgrefurl=http://www.greasespotcafe.com/main/contact.htm&h=394&w=300&prev=/images%3Fq%3Dwaitress%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=www.carpet.org/images/cleaner.gif&imgrefurl=http://www.carpet.org/maintenance.htm&h=825&w=983&prev=/images%3Fq%3Dcarpet%2Bcleaner%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DG -
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Recruit, Hire, Train,Monitor, Motivate, Reward
Why customer
satisfaction startswith HR
Delivering excellent
service: Lessonsfrom the best firms
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Marketing-to personnel is as important as to consumers
InternalMarketing
Employees
enabling thepromise
Performance/ ExperienceManagement
delivering promises
ExternalMarketing
Customers
settingpromises
ServicesMgt
Triangle
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Process Trade-off betweenStandardization & Personalization
Although standardization mayprovide for manufacturingefficiency, this efficiency
comes at expense of marketingeffectiveness. ..the consumer orientation
screams heterogeneity
Same as w/ Products
Vargo & Lusch: The Four Service Marketing Myths
Limiting the variability in yourservice by standardizing the processof delivery & level of consumerinvolvement will lower expenses but
comes w/ a cost:
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The importance ofPhysicalEvidence in the Service Encounter
At Moment of Truth when service delivered &evaluated by consumer everything in evidencecontributes to the consumer's evaluation of the
service Be it a website, restaurant, office, hotel room or theme
parkit needs to be designed & packaged as well as anyproduct
What the customersees -- hears, smells,feels-is what s/hell believes they will get Colors, textures, sounds, smells, dcor, dress,
demeanoreverything in evidence needs attention andmanagement
http://images.google.com/imgres?imgurl=http://www.pixelsaredead.com/main/evidence-bag-overlay.gif&imgrefurl=http://www.pixelsaredead.com/main/&h=200&w=200&sz=3&tbnid=r_Y34sBTpLcJ:&tbnh=99&tbnw=99&hl=en&start=3&prev=/images%3Fq%3Devidence%26svnum%3D10%26hl%3Den%26lr%3Dlang_en%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.pixelsaredead.com/main/evidence-bag-overlay.gif&imgrefurl=http://www.pixelsaredead.com/main/&h=200&w=200&sz=3&tbnid=r_Y34sBTpLcJ:&tbnh=99&tbnw=99&hl=en&start=3&prev=/images%3Fq%3Devidence%26svnum%3D10%26hl%3Den%26lr%3Dlang_en%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.pixelsaredead.com/main/evidence-bag-overlay.gif&imgrefurl=http://www.pixelsaredead.com/main/&h=200&w=200&sz=3&tbnid=r_Y34sBTpLcJ:&tbnh=99&tbnw=99&hl=en&start=3&prev=/images%3Fq%3Devidence%26svnum%3D10%26hl%3Den%26lr%3Dlang_en%26sa%3DG -
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Its the little things that count
How you design your service encounter iscritical in a highly competitive marketwhere consumers hard pressed to discern
a significant difference in serviceperformance
Herein the design of your serviceencounter will prove the most criticalvariable in your marketing mix
Again a lesson proven equally valid forproducts---
Id ifi bl l
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Identifiable apparel:An image-making marketing tool
By ~ 8-to-1ratio, US
consumerspreferemployees
wear
identifiableapparel
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A good uniformmakes all the
difference
Id tifi bl l
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Identifiable apparel:An image-making marketing tool
1. Improves your image:Customersequate a professional-lookingworker w/ a well-run company
2. Increases employeecommitment:Adding employee'sname can boost morale & loyalty
3. Provides a popular employment"perk":.
4. Shows off your firm'sexperience and expertise:"certification" -job titles, slogans &performance emblems on shirts/sleeves
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Instill ProperProtocol so as toavoid the air of indifference
Most common
aspect ofservicecomplaintsis lack of
respectforthecustomer.
http://www.jimbrittphoto.com/showbiz2/Rodney%20Dangerfield.jpghttp://www.puedo.com/forsale/rodney.jpg -
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______% move away
_______% lost due to competitive reasonsand/or unhappy w/ the service
______% suspend patronage because of anattitude of indifference from owner,
manager or an employee
Why services lose customers
~3
~30
~67
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What Customers Desire:
2500 shoppers saidcourtesy,
knowledge &friendliness aremost important
components ofcustomer service.
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The Multiplier Effect
When a customer has a minor service problem:In transactions >$100 - s/he will tell 9 to 10 people.In transactions over $100, s/he will tell 16 people.
TARP
statistics.
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Time is Money (Lost Customers)
*Source: Forum Corporation
Time Taken to Resolve a Customers Problem
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
M inutes Hours Days Weeks M onths
20%25%
45%
55%
80%90
70
50
30
10
Percent of
Customers
That Will
Not Buy
Again
Minutes Hours Days Weeks Months
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Where and Who Complains
Most complaints made to service provider(employee) at time & place of service
Less than 5% of complaints aboutservices ever reach corporateheadquarters.
High-income households, younger people,and service-knowledgeable customers aremore likely to complain.
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Actively Encourage
http://www.at.vcu.edu/ovp/Graphics/suggestion.jpg -
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Actively EncourageComplaints
Average company does not hearfrom 95% of its unhappy customers.
Many complaints go unregisteredbecause customers do not thinkit will help and/or do not knowbest way to register complaint
Encouraging complaints is a goodway to break the silence.
http://images.google.com/imgres?imgurl=http://www.subwayla.com/ohcal/Comments.jpg&imgrefurl=http://www.subwayla.com/ohcal/&h=1074&w=800&sz=174&tbnid=U_Bzpu4MCo8J:&tbnh=150&tbnw=111&hl=en&start=4&prev=/images%3Fq%3Dcustomer%2Bcomplaint%26svnum%3D10%26hl%3Den%26lr%3Dlang_en%26rls%3DGGLD,GGLD:2004-27,GGLD:en%26sa%3DNhttp://www.at.vcu.edu/ovp/Graphics/suggestion.jpghttp://www.hillsideautomall.com/Smiley%20Face.jpg -
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Attitude is Crucial
Customers valueacknowledged w/ every
transactionCustomers lose
confidence when:
Complaints not readilyorpersonally addressed
http://www.hillsideautomall.com/Smiley%20Face.jpg -
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E-pologies?
Email responseshould include
options/names &telephonenumbers for
further
assistance..
Tarp Research -
S i G t
http://www.tarp.com/index.htmlhttp://www.tarp.com/index.htmlhttp://www.massbenefits.com/images/email.jpghttp://www.wolfram.com/solutions/publishing/images/email.jpg -
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Service Guarantees
Relatively new w/respect to services.
Service guaranteesprovide bothconsumer &
business benefits:
Service Guarantee: Customer
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Service Guarantee: CustomerBenefits
Customers perceivebetter value.
Lower perceived risk. Higher perceived
reliability
Reinforces customerloyalty
Service Guarantee:
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Forces firm to focus on
customer.
States a clear performance goal. Provides measures for tracking
poor service.
Forces examination of servicedelivery system.
Source of pride.
Service Guarantee:Organizational Benefits
Critical Questions
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Critical Questions
1. What is the debate all about
regarding how services should bedefined / envisioned?
o How does the definition of a service affect your
marketing strategy?
2. What are the key Ps to meetingservice management challenges?
3. What are some of the factors &considerations affecting the nearfuture of services marketing?
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Exact nature of Future Changes
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Exact nature of Future Changes-depends on nature of the Service
Network Information Services: banking,credit card, insurance, telecom
Retail
Hospitality: travel, restaurants, lodging,
leisure, hotels Labor & Expertise:
Business Support: administration-processes, consulting, customerservice
Personal & Professional: medical,legal, financial, technical assistance
UCTEnhanced
Self-
Service
Increasingly
OutsourcedIncreasinglyVirtualized
Ubiquitious ComPunication
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Ubiquitious ComPunicationTechnologies
3G videophones w/broadband 2 megper second alwaysonline for self-service
Mobile Kiosks
AI Enhanced PDAdevices w/ speechrecognition & avatars
RFID everywhere & ineverything
RFID h & i
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RFID- everywhere & ineverything
SmartCode making0.25mm chips
targetcost 5-10 cents ..w/
15-20 feetrange
Manufacturingcapacity10+ billion a year
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UCT in Everything you wear-
washable garments w/miniaturized in-earspeakers /solar cells toprovide energy.
technology woven intofabric,
components allowing
many functions to bealmost `built in' to ourbodies, creating a`second skin'.
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UCT Enhanced Jewelry
embed functionaltechnology into jewelry& body accessories --rings, necklaces,earrings, glasses andwatches. - -
for body adornment and
for more intimate anddiscreetcommunication,information gatheringand entertainment.
Invisible intelligent wireless
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Invisible, intelligent wirelesstickets
Can be read in yourpocket at 25 metres
Ultra-wide bandfrequency
One-ticket fits all
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RFID Shopping Apps
Future grocery
shopping-
integratedinfosystem
Exact nature of Future Changes-
http://www.youtube.com/watch?v=sSlEa1udYGwhttp://www.youtube.com/watch?v=sSlEa1udYGwhttp://www.youtube.com/watch?v=sSlEa1udYGwhttp://www.youtube.com/watch?v=sSlEa1udYGw -
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Exact nature of Future Changes-depends on nature of the Service
Network Information Services: banking,credit card, insurance, telecom
Retail
Hospitality: travel, restaurants, lodging,
leisure, hotels Labor & Expertise:
Business Support: administration-processes, consulting, customerservice
Personal & Professional: medical,legal, financial, technical assistance
UCTEnhanced
Self-
Service
Increasingly
OutsourcedIncreasinglyVirtualized
Predicting a diverse future: Directions
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Predicting a diverse future: Directionsand issues in the marketing of servicesEuropean Journal of Marketing ; Bradford; 2002; Angus Laing
Driven bytechnologicaldevelopments,
deregulation, andglobalization- the service sector in
post-industrialeconomies is facingunprecedented
change
Increasing importance of
http://asimov.uaa.alaska.edu:2051/pqdweb?RQT=305&SQ=AUTHOR(Angus%20Laing)&SMR=1&SAid=0&SAName=sa_menu&JSEnabled=1&TS=1057690643http://asimov.uaa.alaska.edu:2051/pqdweb?RQT=305&SQ=AUTHOR(Angus%20Laing)&SMR=1&SAid=0&SAName=sa_menu&JSEnabled=1&TS=1057690643 -
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Increasing importance oftechnological mediation
Virtual ExperiencesRedefining concept of-
Service Encounter
The Moment of Truth when aservice is delivered &
evaluated by consumer
Commodification d di d
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Commodification standardized"off-the-shelf" service packages
Pre-Packaged, fill in
the blank, instant-
service forms &queries
Some Computer
generatedExpert-system managed
Responses
Professional Services
http://www.free-financial-advice.net/forums/index.php?s=8efe9dd11baf1db7a508b338f968d35f&http://freeadvice.com/ -
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To date-- characterized by high levels of
limited/regulated interpersonal interaction
NOW- 24/7 access to
specialist technical
information, formerly thepreserve of professionals,
fundamentally changed the
informational asymmetries
which have conventionallycharacterized the delivery of
professional services
http://www.psychadvisor.co
m/counsel/index.cfmFree Advice on Any
Topic
Online From America's
EldersPersonal Reply to
Each Requestwww.ElderWisdomCircle.
org
Technologically driven productivity
http://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://www.psychadvisor.com/counsel/index.cfmhttp://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://www.google.com/url?q=http://www.ElderWisdomCircle.org/&sa=l&ai=AspQGVHIUB9YqmQLmsItxBO9CZWZ-BUftemgviPMCHMAkOBA0GOQADMAmWAAAAAAABAA&num=3http://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://www.google.com/url?q=http://www.ElderWisdomCircle.org/&sa=l&ai=AspQGVHIUB9YqmQLmsItxBO9CZWZ-BUftemgviPMCHMAkOBA0GOQADMAmWAAAAAAABAA&num=3http://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://www.google.com/url?q=http://www.ElderWisdomCircle.org/&sa=l&ai=AspQGVHIUB9YqmQLmsItxBO9CZWZ-BUftemgviPMCHMAkOBA0GOQADMAmWAAAAAAABAA&num=3http://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://www.elderwisdomcircle.org/http://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://www.elderwisdomcircle.org/http://images.google.com/imgres?imgurl=http://www.qsl.net/n4tn/Curmudge3.jpg&imgrefurl=http://www.qsl.net/n4tn/&h=322&w=216&sz=24&tbnid=p9TqTTacCJQJ:&tbnh=113&tbnw=76&start=10&prev=/images%3Fq%3Dold%2Bperson%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://www.elderwisdomcircle.org/http://www.elderwisdomcircle.org/http://www.google.com/url?q=http://www.ElderWisdomCircle.org/&sa=l&ai=AspQGVHIUB9YqmQLmsItxBO9CZWZ-BUftemgviPMCHMAkOBA0GOQADMAmWAAAAAAABAA&num=3http://www.google.com/url?q=http://www.ElderWisdomCircle.org/&sa=l&ai=AspQGVHIUB9YqmQLmsItxBO9CZWZ-BUftemgviPMCHMAkOBA0GOQADMAmWAAAAAAABAA&num=3http://www.google.com/url?q=http://www.ElderWisdomCircle.org/&sa=l&ai=AspQGVHIUB9YqmQLmsItxBO9CZWZ-BUftemgviPMCHMAkOBA0GOQADMAmWAAAAAAABAA&num=3http://www.google.com/url?q=http://www.ElderWisdomCircle.org/&sa=l&ai=AspQGVHIUB9YqmQLmsItxBO9CZWZ-BUftemgviPMCHMAkOBA0GOQADMAmWAAAAAAABAA&num=3http://www.google.com/url?q=http://www.ElderWisdomCircle.org/&sa=l&ai=AspQGVHIUB9YqmQLmsItxBO9CZWZ-BUftemgviPMCHMAkOBA0GOQADMAmWAAAAAAABAA&num=3http://www.psychadvisor.com/counsel/index.cfmhttp://www.psychadvisor.com/counsel/index.cfm 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Technologically driven productivity
growth is-most important factor in
shaping employment in U.S. & everycountry in the world.
Productivity growth substitutes
technology &/or more efficienttechniques for physical & mental labor
Inventors & investors always figure outways to replace people with machines
Automation- 1,2,3
Restaurants without waiters
http://www.youtube.com/watch?v=-_SxW_7v9ishttp://www.youtube.com/watch?v=1O6vYiWABTAhttp://www.youtube.com/watch?v=B3NGN4t4hm4http://www.youtube.com/watch?v=B3NGN4t4hm4http://www.youtube.com/watch?v=1O6vYiWABTAhttp://www.youtube.com/watch?v=-_SxW_7v9ishttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlsc -
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Restaurants without waiters
Ultimately most all your service
http://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlsc -
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Ultimately most all your serviceneeds will be handled by & thruyour AI enhanced PDA
Withtheruthlessnessof
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With the ruthlessness ofSkynet in "The Terminator,"
computerization in the tertiarysector is now committing massDilberticide, replacingreceptionists with automatedphone systems and travelagents with services likePriceline. Why Dilbert is
doomedThe jobs of tomorrow are
not what you'd expect
Recession creating a lost generation
mechanization of agriculture& i i f d l b f
http://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://faculty.cbpp.uaa.alaska.edu/afef/recession_creating_a_lost_genera.htmhttp://faculty.cbpp.uaa.alaska.edu/afef/recession_creating_a_lost_genera.htmhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.html -
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"secondaryproduction
"primaryproduction
& mining -- freed up labor forfactories
automation in manufacturingfreed up workers for-officework
Computers & AI in the office-
-free up workers for..?
"tertiaryproduction"
As it has always done in
the past, labor will shift
from more mechanized
to less mechanized
sectors. But what will
those jobs be?
The most numerous & stable jobs of tomorrow
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cannot be automated require a high degree of creativity
& rely on the human touch in face-to-face
interactions
these are called "proximity services"& include fastest-growing occupations,
healthcare & education.
Since the recession began, healthcare has added
559,000 jobs. Even more remarkable, the averagemonthly gain of 22,000 jobs during 2009 has been
only slightly lower than the average increase of 30,000
jobs a month in 2008.
The most numerous & stable jobs of tomorrow
will be those that cannot be offshored
Why
Dilbert is
doomedThe jobs of
tomorrow
are notwhat you'd
expect
http://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.html -
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Outsourcing of IT Services
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g $10.8 billion The value of IT
outsourcing contracts
signed in the first quarter of2005. Source: TPI Index
400,000 Number of servicejobs sent overseas since
2000. Source: The GoldmanSachs Group Inc.
3% Percentage of last year'stotal layoffs due to
offshoring. Source: U.S.Department of Labor
104,000 Number of IT jobslost due to offshore
outsourcing between 2000and 2003, equaling 2.8% ofU.S. IT jobs. Source:Information TechnologyAssociation of America
3.5 million Number of U.S.white-collar jobs movingoffshore by 2015, averaging200,000 a year. Source:Forrester Research Inc.
Where the Jobs Go!
http://images.google.com/imgres?imgurl=http://www.computerworld.com/computerworld/records/images/teaser/37KCednote_tan.gif&imgrefurl=http://www.computerworld.com/managementtopics/outsourcing&h=140&w=150&sz=14&tbnid=m8EN5RuAkF0J:&tbnh=84&tbnw=90&hl=en&start=5&prev=/images%3Fq%3Doutsourcing%26svnum%3D10%26hl%3Den%26lr%3Dlang_en%26rls%3DGGLD,GGLD:2004-27,GGLD:en%26sa%3DN -
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Where the Jobs Go!
0% 5% 10% 15% 20% 25% 30% 35% 40%
Singapore
Russia
Phillipines
MalaysiaCanada
Ireland
Mexico
China
India
Source: Computer world and Interunity Group, Inc., April & May 2003
Base: Survey of 252 corporate IT managers in the U.S.; multiple responses allowed
India graduates 300,000 ITengineers and 90,000 MBAs
per year
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The Other Side of Outsourcing
http://youtube.com/watch?v=8quDb3FIUuohttp://youtube.com/watch?v=8quDb3FIUuohttp://youtube.com/watch?v=8quDb3FIUuo -
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