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Services Marketing, 2nd Edition

Book Description

Services marketing has evolved as a specialized branch of study. Present-day managers need this knowledge to effectively drive the growth of their organizations. The second edition of Services Marketing, with an enhanced conceptual foundation, meets this requirement of students, managers and marketing professionals. The enhanced pedagogy and coverage in this edition in conjunction with the lucid and pithy style of the author make this book perfect for students of business administration, commerce and management.

Table of Contents

  1. Cover
  2. Title Page
  3. Brief Contents
  4. Contents
  5. About the Author
  6. Dedication
  7. Preface
  8. The Development of this Book
  9. 1. Introduction to Services Marketing
    1. Introduction
    2. Services Defined
    3. India and China—The World’s Two Fastest Growing Telecom Service Markets
    4. Differentiating Goods from Services
    5. Why Services Marketing?
    6. Characteristics of Services
    7. Intangibility
    8. Inseparability
    9. Variability
    10. Perishability
    11. Customer Participation
    12. Lack of Ownership
    13. The Growth of the Services Sector
    14. The Department for Professional Employees, AFL-CIO: Fact Sheet 2002-05 on Services Sector
    15. Reasons for Growth in the Services Sector
    16. Intermediate Demand from Firms
    17. Final Demand from Customers
    18. Career Opportunities in the Services Sector
    19. Insurance
    20. Call Centres
    21. Non-government Organizations
    22. Knowledge Process Outsourcing (KPO)
    23. Human Resources
    24. IT-enabled Services
    25. Hospitality
    26. Entertainment
    27. Aviation
    28. Summary
    29. Key Terms
    30. Brief Questions
    31. Essay Questions
    32. Assignments
    33. References
  10. 2. Marketing Management: Core Concepts
    1. Introduction
    2. The Marketing Offer
    3. Core Concepts
    4. Needs, Wants and Expectations
    5. Markets
    6. Exchange
    7. Customer Value
    8. Demand Management
    9. Segmentation, Targeting and Positioning
    10. The Powerful Consumer
    11. Creating Value
    12. Communicating Value
    13. Delivering Value
    14. Goods Marketing Versus Services Marketing
    15. Marketing Philosophies
    16. The Production Concept
    17. The Product Concept
    18. The Selling Concept
    19. The Marketing Concept
    20. The Holistic Marketing Concept
    21. Marketing Challenges
    22. Customers
    23. Business Trends
    24. Technology
    25. Marketing Planning
    26. Database Marketing
    27. Marketing Tasks
    28. Summary
    29. Key Terms
    30. Brief Questions
    31. Essay Questions
    32. Assignments
    33. References
  11. 3. The Marketing Environment
    1. Introduction
    2. The Micro-environment
    3. Organized Retailing: The New Growth Frontier
    4. Other Divisions of the Company
    5. Suppliers
    6. Intermediaries
    7. Competitors
    8. Customer Markets
    9. Other Publics
    10. The Macro-environment
    11. The Demographic Environment
    12. The Economic Environment
    13. The Natural Environment
    14. The Technological Environment
    15. Industrial Policy 1991: The Focus on Market Economy
    16. The Political and Legal Environment
    17. The Social and Cultural Environment
    18. The Company’s Response to the Marketing Environment
    19. Summary
    20. Key Terms
    21. Brief Questions
    22. Essay Questions
    23. Assignments
    24. References
  12. 4. The Services Sector in the Indian Economy
    1. Introduction
    2. Contribution to the Gross Domestic Product
    3. Shares of Sub-sectors
    4. Contribution to Employment
    5. Reasons for the Growth of Services in India
    6. Operational Characteristics of Services Sector Enterprises in India
    7. Economic Affluence
    8. The Changing Role of Women
    9. Cultural Changes
    10. The IT Revolution
    11. The Conservation of Natural Resources
    12. The Development of Markets
    13. The Unbundling of Corporations
    14. The Increased Consciousness of Healthcare
    15. Economic Liberalization
    16. Migration
    17. Export Potential
    18. Key Service Businesses in India
    19. Insurance
    20. Service Tax
    21. Transport
    22. Telecommunications
    23. IT and ITeS
    24. Electricity
    25. Postal Services
    26. Tourism
    27. Banking
    28. Healthcare
    29. Education
    30. Entertainment and Media Services
    31. Retailing
    32. Summary
    33. Key Terms
    34. Brief Questions
    35. Essay Questions
    36. Assignments
    37. References
  13. 5. Consumer Behaviour in Services
    1. Introduction
    2. Buyers, Consumers and Customers
    3. Factors Influencing Consumer Behaviour
    4. Cultural and Social Factors
    5. Consumers in India
    6. Middle-class Consumers: The Potential Market for a Host of Services
    7. Personal and Physical Factors
    8. Psychological Factors
    9. How Do Consumers Develop Expectations?
    10. The Zone of Tolerance
    11. Determinants of the Maximum Service Level
    12. Determinants of the Minimum Service Level
    13. Determinants of the Maximum and Minimum Service Levels
    14. Service Perception
    15. Consumer Purchase Decision Process
    16. Problem Identification and Definition
    17. Information Search
    18. Evaluation of Service Alternatives
    19. Service Purchase and Consumption
    20. Post-purchase Evaluation
    21. Summary
    22. Key Terms
    23. Brief Questions
    24. Essay Questions
    25. Assignments
    26. References
  14. 6. Marketing Information System and Research
    1. Introduction
    2. Marketing Information System: A Definition
    3. Sources of Marketing Information
    4. Internal Information Sources
    5. External Information Sources
    6. MIS Begins and Ends with the Information User
    7. Identifying and Assessing Information Needs
    8. Collecting Information
    9. Marketing Research
    10. Information Technology and Marketing Information System
    11. Marketing Research Application and Importance
    12. Marketing Research Organizations
    13. The Marketing Research Process
    14. Defining the Problem
    15. Selecting the Sources of Information and Data-collection Methods
    16. Online Marketing Research
    17. Designing the Questionnaire
    18. Selecting the Sample
    19. Collecting the Data
    20. Analysing and Interpreting the Data
    21. Preparing and Presenting the Research Report
    22. Information Analysis and Distribution
    23. Summary
    24. Key Terms
    25. Brief Questions
    26. Essay Questions
    27. Assignments
    28. References
  15. 7. Services Strategy
    1. Introduction
    2. The Process of Strategic Planning
    3. The Steps in Strategic Planning
    4. Selecting the Right Strategy Is the Success Key
    5. A Market-oriented Service Strategy
    6. The Strategic Management Trap
    7. The Service-oriented Approach
    8. A Service-oriented Organization Structure
    9. The Service Triangle
    10. The Services Marketing Mix
    11. Strategy Implementation
    12. Corporate Strategy and Social Responsibility
    13. Strategy Evaluation and Control
    14. Summary
    15. Key Terms
    16. Brief Questions
    17. Essay Questions
    18. Assignments
    19. References
  16. 8. Market Segmentation
    1. Introduction
    2. Undifferentiated Marketing
    3. Differentiated Marketing (Market Segmentation)
    4. Bases for Market Segmentation
    5. Consumer Characteristics
    6. Consumer Responses (Behavioural Segmentation)
    7. Technographic Segmentation
    8. Market Segmentation System
    9. Criteria for Market Segmentation
    10. Substantiality
    11. Measurability
    12. Accessibility
    13. Differentiability
    14. Customization
    15. Customizing the Service Around a Standardized Core
    16. Creating Customizable Services
    17. Offering Point-of-delivery Customization
    18. Offering Standard Modules that Can Be Combined in Unique Ways
    19. Stages in Market Segmentation
    20. Search
    21. Selection
    22. Strategy
    23. Summary
    24. Key Terms
    25. Brief Questions
    26. Essay Questions
    27. Assignments
    28. References
  17. 9. Competition Analysis and Strategies
    1. Introduction
    2. Competitive Threats
    3. Competition from the Industry Perspective
    4. Monopoly
    5. Oligopoly
    6. Monopolistic Competition
    7. Pure Competition
    8. Competition from the Market Perspective
    9. Competition Leads Life Insurance Market Development in India
    10. Competition Analysis
    11. Future Objectives
    12. Current Strategy
    13. Assumption
    14. Capabilities
    15. Competition Strategies
    16. Market Leaders
    17. Market Challengers
    18. Market Followers
    19. Market Nichers
    20. Achieving Competitive Advantage
    21. Regulated Competition in the Indian Telecom Sector
    22. Summary
    23. Key Terms
    24. Brief Questions
    25. Essay Questions
    26. Assignments
    27. References
  18. 10. Service Demand Management
    1. Introduction
    2. Demand Situations
    3. Negative Demand
    4. No Demand
    5. Latent Demand
    6. Seasonal Demand
    7. Demand Patterns
    8. Irregular Demand
    9. Falling Demand
    10. Demand to the Level of Optimum Capacity
    11. Demand Exceeds Optimum Capacity
    12. Demand Below the Optimum Capacity
    13. Excess Demand
    14. Demand Variations
    15. Demand Forecasting Methods
    16. Demand Management
    17. Shifting Demand to Match Service Capacity
    18. Increasing Demand to the Level of Optimum Capacity
    19. Capacity Management
    20. High Demand
    21. Low Demand
    22. Waiting-line Management
    23. Developing Operational Logic
    24. Top 10 Predictions for the IT/ITeS Sector in India
    25. Establishing a Reservation Process
    26. Differentiating Waiting Customers
    27. Making Waiting Fun
    28. Summary
    29. Key Terms
    30. Brief Questions
    31. Essay Questions
    32. Assignments
    33. References
  19. 11. The Service Product
    1. Introduction
    2. The Basic Service Package
    3. Service Product Classification: The Consumer’s Perspective
    4. The Customer Value Hierarchy
    5. The Flower of Service
    6. Information
    7. Consultation
    8. Order Taking
    9. Hospitality
    10. Safekeeping
    11. Exceptions
    12. Billing
    13. Payment
    14. The Development of a New Service
    15. What Is a New Service Product?
    16. Steps in the Development of a New Service
    17. Success Factors for a New Product
    18. The Service Product Mix
    19. Service-line Decisions
    20. Service Differentiation
    21. Service Life-cycle Management
    22. Summary
    23. Key Terms
    24. Brief Questions
    25. Essay Questions
    26. Assignments
    27. References
  20. 12. Service Branding and Positioning
    1. Introduction
    2. Service Branding
    3. Goods Branding Versus Services Branding
    4. Choosing Brand Elements
    5. Benefits of Branding
    6. The Brand Value Chain
    7. Corporate Branding for Services
    8. Indian Consumers’ Brand Loyalty and Performance Rating of Select Service Brands
    9. Brand Equity
    10. Service Positioning
    11. Frame of Reference
    12. Positioning Strategies
    13. Summary
    14. Key Terms
    15. Brief Questions
    16. Essay Questions
    17. Assignments
    18. References
  21. 13. Physical Evidence
    1. Introduction
    2. The Concept of Physical Evidence
    3. Elements of Physical Evidence
    4. The Concept of a Servicescape
    5. Types of Servicescapes
    6. Servicescape Dimensions
    7. The Impact of Colour on Consumer Behaviour
    8. Servicescape Effects on Behaviour
    9. Using Visual Merchandising to Influence Consumer Perceptions at Retail Service Outlets
    10. Other Tangibles
    11. Role of Evidence in Services Marketing
    12. Guidelines for Developing a Physical Evidence Strategy
    13. Summary
    14. Key Terms
    15. Brief Questions
    16. Essay Questions
    17. Assignments
    18. References
  22. 14. Pricing
    1. Introduction
    2. The Pricing of Services
    3. Service Attributes that Influence Pricing Decisions
    4. Influence of Non-monetary Costs
    5. Price-Quality Relations
    6. The Objectives of Pricing
    7. Approaches to Pricing
    8. Cost-based Pricing
    9. Competition-based Pricing
    10. Demand-based Pricing
    11. Pricing Strategies Linked to Value Perceptions
    12. Low or Reduced Price Is Value
    13. Price Discrimination in Services
    14. Value Is Everything Expected in a Service
    15. Value Is Price Versus Quality Relationship
    16. Value Is Special Packages Offered by the Company
    17. Summary
    18. Key Terms
    19. Brief Questions
    20. Essay Questions
    21. Assignments
    22. References
  23. 15. Distribution
    1. Introduction
    2. Service Transactions
    3. Service Locations and Service Providers
    4. Service Locations
    5. Service Providers
    6. Distribution Flows of Services
    7. Distribution by Company-owned Channels
    8. Channels for Service Distribution
    9. Franchising
    10. Franchisee Satisfaction Is the Key
    11. Agents and Brokers
    12. Electronic Channels
    13. Services e-Retailing
    14. The Design of a Service Distribution System
    15. The Strategies for Channel Management
    16. Control Strategies
    17. Empowerment Strategies
    18. Partnering Strategies
    19. Summary
    20. Key Terms
    21. Brief Questions
    22. Essay Questions
    23. Assignments
    24. References
  24. 16. Internal Marketing
    1. Introduction
    2. Employees Caught in Between
    3. Employee Satisfaction
    4. Emotional Labour
    5. Objectives of Internal Marketing
    6. Roles of a Service Employee
    7. The Internal Marketing Product
    8. Strategies for Internal Marketing
    9. Employee Development—Facilitating Practices
    10. Staffing
    11. Internal Marketing Challenges
    12. Training
    13. Organizing
    14. Supporting
    15. Motivating
    16. Evaluating
    17. Rewarding
    18. Retaining
    19. Summary
    20. Key Terms
    21. Brief Questions
    22. Essay Questions
    23. Assignments
    24. References
  25. 17. External Marketing
    1. Introduction
    2. The Need for External Marketing
    3. Integrated Marketing Communications
    4. Designing a Communication Campaign
    5. Selecting the Target Audience
    6. Determining the Objectives of Communication
    7. Generating the Message
    8. Selecting the Media
    9. Budgeting for Marketing Communications
    10. Integrating Communications Mix Elements
    11. The New Age Specialist Ad Agencies
    12. The Objectives of Integrated Marketing Communications
    13. Word-of-mouth Communication
    14. Themes of External Marketing Campaigns
    15. Information
    16. Education
    17. Persuasion
    18. Reinforcement
    19. Training
    20. Efficiency
    21. Leadership
    22. Relationship
    23. Image Building
    24. Price Versus Quality
    25. Demand Management
    26. Recovery
    27. Successful Communication Campaigns
    28. Success in External Marketing
    29. The Five Rules of Effective Campaigns
    30. Matching Service Promises with Delivery
    31. Managing Horizontal Communication
    32. Summary
    33. Key Terms
    34. Brief Questions
    35. Essay Questions
    36. Assignments
    37. References
  26. 18. Interactive Marketing
    1. Introduction
    2. Customer Interaction
    3. Quality-generating Resources
    4. A Service Encounter
    5. Employee Participation
    6. Customer Participation
    7. Customer Roles in Service Delivery
    8. Moments of Truth
    9. Managing Moments of Truth
    10. Service Cycles
    11. The Service Interaction Process
    12. The Joining Phase
    13. The Intensive Consumption Phase
    14. The Detachment Phase
    15. Integrating the Phases
    16. Enhancing Employee Participation
    17. Verbal Communication Skills
    18. Non-verbal Communication Skills
    19. Transactional Analysis
    20. Enhancing Customer Participation
    21. Defining the Processes Where Customers Have to Perform
    22. Providing an Appropriate Customer Mix
    23. Managing Customer Expectations
    24. Summary
    25. Key Terms
    26. Brief Questions
    27. Essay Questions
    28. Assignments
    29. References
  27. 19. Service Quality Management
    1. Introduction
    2. How is Service Quality Perceived?
    3. Image
    4. Expected Versus Experienced Quality
    5. Total Perceived Quality
    6. Determinants of Service Quality
    7. The Process for Service Quality Management
    8. Service Quality Audit
    9. The GAP Model of Service Quality
    10. Quality Management in Sterilization Services
    11. SERVQUAL
    12. Total Quality Services Marketing
    13. Five Myths and Truths of Service Quality
    14. Zero Defects Versus Zero Defections
    15. Service Excellence
    16. Research on Service Quality
    17. Summary
    18. Key Terms
    19. Brief Questions
    20. Essay Questions
    21. Assignments
    22. References
  28. 20. Service Failures and Recovery
    1. Introduction
    2. Reasons for Customer Grievances
    3. Customer Response to Service Failures
    4. Classification of Complainers on Service Failures
    5. Complaint Management
    6. The Customer Complaint Management System
    7. Service Recovery
    8. Benefits of Service Recovery
    9. Consumer Grievance Recovery Strategies
    10. Recovery Strategies
    11. Measuring Satisfaction with Transaction—Specific Service Recovery
    12. Effective Service Recovery
    13. Summary
    14. Key Terms
    15. Brief Questions
    16. Essay Questions
    17. Assignments
    18. References
  29. 21. Customer Relationship Management
    1. Introduction
    2. Benefits of CRM
    3. Benefits to the Company
    4. Benefits to Consumers
    5. Three Drivers of Successful CRM
    6. Customer Value
    7. Customer Satisfaction
    8. Customer Retention
    9. A CRM Framework
    10. Selection of Customers
    11. Customer-related Inputs
    12. Organization-related Inputs
    13. Selection of Customers
    14. Customer Classification Based on Acquisition Costs and Retention Costs
    15. The Goals of CRM
    16. The Organizational System for CRM
    17. Operationalization
    18. CRM Budget
    19. Employee Orientation
    20. Efficiency Measurement and Reward
    21. The Interaction Process
    22. Roles of Employees
    23. Roles of Customers
    24. Moments of Truth
    25. The Customer Response
    26. The Customer Experience
    27. Value Analysis
    28. Future Benefits
    29. e-CRM
    30. Applications of e-CRM
    31. Benefits of e-CRM
    32. Market for e-CRM
    33. Types of e-CRM
    34. Operational CRM
    35. Analytical CRM
    36. Collaborative CRM
    37. Criteria for the Selection of e-CRM Software
    38. Summary
    39. Key Terms
    40. Brief Questions
    41. Essay Questions
    42. Assignments
    43. References
  30. 22. International Marketing of Services
    1. Introduction
    2. What is International Marketing?
    3. Companies’ Orientation to International Marketing
    4. The International Marketing Environment
    5. Asian Versus Western Cultures: The Impact on Travel and Tourism Services
    6. Trade Barriers
    7. The World Trade Organization (WTO)
    8. Measures for Promoting Indian Services Exports
    9. The Marketing Programme
    10. Market-entry Strategies
    11. Selecting a Country for Entry
    12. Country-of-origin Effect
    13. Value Creation
    14. Value Communication
    15. Value Delivery
    16. Summary
    17. Key Terms
    18. Brief Questions
    19. Essay Questions
    20. Assignments
    21. References
  31. 23. Consumer Protection in Services
    1. Introduction
    2. Consumer Expectations from Industries and Businesses
    3. Product Design and Development
    4. Product Quality and Performance
    5. Product Representation
    6. Optimum Use of Resources
    7. Fairness in Transactions
    8. Consumers’ Concerns
    9. The Consumer Movement in India
    10. Legal and Administrative Mechanisms for Consumer Protection in India
    11. The Consumer Protection Act (1986)
    12. National Consumer Disputes Redressal Commission
    13. Provisions of the Act for Professional Services, Education Services and PSUs
    14. Disruption of Services by Illegal Strikes
    15. The Right to Information Act (2005)
    16. The Administrative Mechanism
    17. Business Response to the Consumer Movement
    18. Summary
    19. Key Terms
    20. Brief Questions
    21. Essay Questions
    22. Assignments
    23. References
  32. 24. Services Marketing in India
    1. Introduction
    2. The Marketing of Banking Services: A Case Study on the State Bank of India
    3. Product Policies and Strategies
    4. New Product Planning and Development
    5. Product Additions and Deletions
    6. Pricing Policies and Strategies
    7. The Distribution Network
    8. External Marketing
    9. Internal Marketing
    10. Marketing of Transport Services: A Case Study on APSRTC
    11. The Service Product Mix
    12. Pricing
    13. The Distribution Network
    14. External Marketing
    15. Internal Marketing
    16. Marketing of Hospital Services
    17. The Basic Service Package (Product)
    18. The Physical Environment
    19. Pricing
    20. The Distribution Network
    21. Internal and Interactive Marketing
    22. External Marketing
    23. Marketing of Educational Services
    24. The Product
    25. Pricing
    26. The Distribution Network
    27. People
    28. Promotion
    29. Interactive Marketing
    30. Marketing of Tourism Services
    31. Marketing Approach for Tourism Services
    32. The Product
    33. Physical Evidence
    34. Pricing
    35. The Distribution Network
    36. People
    37. Promotions
    38. The Process
    39. Key Terms
    40. Brief Questions
    41. Essay Questions
  33. Cases
    1. Case 1. Beauty Care by Marico: Kaya Skin Clinics
    2. Case 2. Life Insurance Corporation: Restructuring for Growth
    3. Case 3. McDonald’s in India
    4. Case 4. Subway’s Marketing Strategy in India
    5. Case 5. Cox and Kings: Service with a Difference
  34. Notes
  35. Acknowledgements
  36. Copyright