The Service Sector: Supersectors and Ethical Considerations

Other Services

Education and Health Services Financial Activities

Wholesale and Retail trade Transportation And Utilities

Service Economy

Government Information Leisure and Hospitality

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Professional and Business services

Education subsector

Second largest employment industry 13.3 million jobs in

Schools Colleges Universities and

Health Care and Social Assistance subsector

Health services is the largest employment industry in private 14 million jobs in

Hospitals Nursing care

training centers.

facilities Physicians offices Home health care services

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Banking and Insurance

e.g. Commercial banking Savings institutions, Credit Unions, and Insurance Carriers

Securities, Commodities, and other investments manage the issuance, purchase, and sale of financial instruments.

1. Not-for-profit sector Advocacy Grantmaking Civic Organizations 2. Federal Government 3. State and local government

Publicly-owned establishments of federal, state, and local agencies that administer, oversee, and manage public programs Includes public schools and public hospitals
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Consist of establishments that produce and distribute information and cultural products, provide the means to distribute or transmit these products, and/or process data.

Publishing industries Motion picture and sound recording industries Broadcasting industries Telecommunication industries Internet service providers and web search portals Data procession industries and information services industries.

Represents 2.6% of all employment

Arts, entertainment, and recreation subsector

More than 40% of the workforce has no formal education beyond high school

Hotels and other accommodation and food services subsector

22% of employees are between the ages of 16 to 19 2 out of 5 employees work part time Jobs are plentiful
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Includes a multitude of activities Advertising and PR services Legal advice and representation Accounting and bookkeeping Engineering and research services Office administration and clerical services Security and surveillance services Cleaning and waste disposal services

e.g. Transportation of passengers and cargo, warehousing and storage, sightseeing transportation

Transportation and Warehousing

e.g. electricity, natural gas, steam, water, and sewage removal

Utilities

Wholesale Trade subsector

Retail Trade subsector

Establishments that wholesale merchandise and provide services related to the sell of merchandise 2/3 work in the office and administrative support roles

Establishments that retail merchandise and provide services related to the sell of merchandise 84% consist of sales and administrative support positions

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Catch-all A myriad of establishments that are in engaged in a variety of activities including

Equipment and machinery repair Promoting or administering religious activities Grantmaking Advocacy Drycleaning and laundry service Personal care, death care, pet care Photofinishing, temporary parking services, and dating services
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Materialismo Snobbery

Belief that without manufacturing there will be less for people to service and so more people available to do less work

Dichotomization of Wealth

The rich get richer and the poor get poor

Wages associated with service employment

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1.

2. 3. 4. 5.

Consumer vulnerability in services marketing Issues that create ethical conflict Factors influencing ethical decision making The effects of ethical misconduct Strategies for controlling ethical behavior

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A branch of philosophy dealing with what is good and bad and with moral duty and obligation. The principles of moral conduct that guide behavior in the business world.

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Intangibility complicates the consumers ability to objectively evaluate the quality of service provided Heterogeneity reflects the difficulty in standardization and quality control Inseparability reflects the human element involved in the service delivery process

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Factors Contributing to Consumer Vulnerability

Few search attributes

Technical and specialized services

Time lapse between performance and evaluation Sold without guarantees and warranties
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Factors Contributing to Consumer Vulnerability

Performed by boundary-spanning personnel Accepted variability in performance Outcome-based reward systems Consumer participation in production
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Issues that Create Ethical Conflict

Conflict of Interest Organizational Relationships Honesty Fairness Communication

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The Effects of Ethical Misconduct

Personal Effects

Organizational Effects Job-related tension Customer Frustration dissatisfaction Anxiety Unfavorable word-ofIneffective mouth publicity performance Negative image for Turnover intentions firm and industry Lower job satisfaction

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Controlling Ethical Decision Making

Employee socialization Standards of conduct Corrective control Leadership training Service/product knowledge Monitoring employee performance Stress long-term customer relationships

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