Understand the importance of service businesses to consumers, other business firms, and the nation's economy.
The application of the basic principles of operations management to the production of services has coincided with the growth and importance of service businesses in the United States. Today of American workers are employed in the service industry. In fact, the American economy is now characterized as a service economy.
For a service firm, planning often begins with determining who the customer is and what needs the customer has. After customer needs are identified the next step is to develop a plan that will enable the firm to deliver the services that their customers want or need.
Although it is often more difficult to measure customer satisfaction, today's successful service firms work hard at providing the services customers want. For example, compared with manufacturers, service firms often listen more carefully to customers and respond more quickly to the market's changing needs.
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