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Theodore Levitt (1972) argued that the reason that the service sector suffered from inefficiency and wide variations in quality were that it was based on the craft model. Each service encounter was performed as if it was an isolated event. He felt that this erratic approach could be systematized through the use of planning, optimal processes, consistency, and capital intensive investments. This model was the foundation of the success of McDonalds and many other mass service providers in the 1970s, 80s, and 90s.

Unfortunately, the application of assembly line techniques to service provision had several undesirable consequences. Employees found working under these conditions disempowering, resulting in low morale, high staff turnover, and reduced service quality. One of the most difficult aspects of this model for employees to deal with was the "smile incentives". Employees were instructed to put a smile on their face during the service encounter. This manufacturing and commercialization of apparent happiness has been criticised by many commentators, particularly Mundie (1987). Also many customers prefer the "personal touch".

By the early 1990s most service providers turned their attention back to the human element and personalized their services. Employees were empowered to customize the service encounter to the individual characteristics of customers.

1 See also

• services marketing
• servitization of products business model
• list of marketing topics
• list of management topics

2 References

• Levitt, T. (1972) "Production line approach to service", Harvard Business Review, Sept-Oct, 1972, pp. 41-52.
• Mundie, P. (1987) "Internal marketing: cause for concern", Quarterly Review of Marketing, spring-summer, 1987, pp. 21-24.