In Education

The educational services industry includes a variety of institutions that offer academic education, career and technical instruction, and other education and training to millions of students each year.
Educational services is the second largest US industry, accounting for about 13.5 million jobs in 2008.
US Bureau of Labor Statistics (2011)

The service sector produces intangible goods, some well knowngovernment, health, education
and some quite newmodern communications, information, and business services.....
World Bank (2009) Growth of the Service Sector

Education is a service industry comprising 10 percent of the US GDP, second only to health care at 17 percent.
Prosperity in the 20th Century relied on creativeness, ingenuity, risk taking, and brainpower, leading to huge breakthroughs and new businesses;
i.e. Investing in the minds of young people
Korea invests 22% of GDP in education.

Richard C. Larson (2009) Massachusetts Institute of Technology

Should university students be seen as learners or customers?

While you might argue they are both
the dividing line between the two has become dangerously blurred.

Mike Baker; BBC News; 21 June 2008

The notion of students as customers is still relatively new:

Pressure on academics to ensure universities are marketable to current and potential customers. Bums-on-seats attitude to funding, Variable or top-up fees Reliance on overseas student fees

Debate is
Is education a service provider or a community of scholars?

Identity increasingly molded by:

relationship with Universities political pressures

Perceptions changing, both of students and staff

Government encouraged market based models:

Squeeze on per/student funding Imperatives to expand Market in fees and bursaries Students/parents aware of cash relationship
"Helicopter parents" grew up as active consumers University league tables

National student surveys Shopping around encourage More student complaints

26% from international students 36% from postgraduates.
66% related to results.

Students more demanding

Value for money Growth in older and articulate students More concerned about degree level Great pressure to get at least a 2:1. No longer marketable to employers with just a degree

Champion
Collaborator

Researcher

Tutor

Teacher

Expert

Carer

Customer

Demonstrator

How can schools develop best relationships with their students?

By thinking of them as customers to be managed for a very long time.

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Expectations

Reality

Education Core Services

Gap 1

Gap 2

Gap 3

Gap 4

Student Expectations The difference between what a student expects and what the institution thinks the student expects Service Design and Standards The difference between the institutions understanding of students expectations and the development of service designs and standards Service Delivery The difference between the service designs and standards and the actual delivery of the service Institutional Promises The difference between the delivery of the service and the promises made by the University brand, advertising, sales force etc

Quality of teaching and support Availability of staff (total contact time) Quality of resources Availability of resources (total waiting time) All other Supplementary Services Hedonic aspects

Service Quality Construct

Larson R., (2009) Education: Our Most Important Service Sector; Service Science 1(4), i-iii, 2009 SSG US Bureau of Labor Statistics, U.S. Department of Labor, Career Guide to Industries, 2010-11 Edition, Educational Services http://www.bls.gov/oco/cg/cgs034.htm (visited March 18, 2012 ).