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Services Marketing: Text and Cases, 2nd Edition

Book Description

The second edition of Services Marketing: Text and Cases takes a leap forward to develop a strategic perspective to the service marketing framework. This edition begins with an initiation into the field of services and then develops an appreciation of the service marketing system and includes five additional chapters. The focus is then directed at service strategy and the creation of sustainable differentiation. The book finally discusses the management of operational issues such as quality, demand matching, recovery and empowerment.

Table of Contents

  1. Cover
  2. Title Page
  3. Contents
  4. Dedication
  5. Preface to the First Edition
  6. Preface
  7. 1. Field of Services: The Service Economy
    1. Service Sector
      1. Economic Development in Different Waves
      2. Pre-Industrial Society
      3. Industrial Society
      4. Post-Industrial Society
      5. Growth of Services
      6. Increasing Levels of Income
      7. Urbanization
      8. Women in the Workforce
      9. Demographic Shifts
      10. Concern for Environment
      11. Government
      12. Industrialization
      13. Competitive Pressures
      14. National Specialization
      15. International Specialization
      16. State of Services
      17. Service Failures: Reasons
      18. Need for Marketing
      19. Paradigm Shift
    2. Summing Up
    3. Case Study
    4. Review Questions
    5. Practical Exercises
    6. References
  8. 2. Nature of Services
    1. What are Services?
    2. Products, Goods and Services
    3. Characteristics of Services
      1. Intangibility
      2. Inseparability
      3. Variability
      4. Perishability
    4. Managerial Challenges
    5. Summing Up
    6. Case Study
    7. Review Questions
    8. Practical Exercises
    9. References
  9. 3. Service Product and Pricing
    1. Value Creation
    2. Inadequacy of 4Ps
    3. Product
      1. Service Package
      2. Service Components
      3. Balancing the Tangible and Intangible Components
      4. Core and Supplementary Services
      5. The Product Levels
      6. Service Levels and Delivery
    4. Price
    5. Price Names
    6. Price in Services
      1. Intangibility and Price
      2. Price and Quality
      3. Lack of Stock and Price
      4. Mechanized Services and Price
      5. Service Customization and Price
      6. Non-Monetary Aspects and Price
      7. Control and Service Price
    7. Pricing Approaches
      1. Cost-Based Pricing
      2. Competition-Oriented Pricing
      3. Market-Based Pricing
    8. Price and Customer Value
      1. Value as Low Price
      2. Value as Benefits
      3. Value as Quality
      4. Value as What is Given and Received
    9. Summing Up
    10. Case Study
    11. Review Questions
    12. Practical Exercises
    13. References
  10. 4. Service Promotion and Distribution
    1. Promotion Once Frowned Upon
    2. Importance of Communication
      1. Communication at Pre-Purchase Stage
      2. Communication and Consumption Stage
      3. Communication and Post-Consumption Stage
    3. Issues in Service Promotion
      1. Tangible Clues
      2. Word of Mouth
      3. Ownership
      4. Ties with Customer
    4. Guidelines for Effective Promotion
      1. Refrain from Overpromising
      2. Advertise for Employees
      3. Encourage by Word of Mouth
      4. Tangibilize the Service Offer
      5. Make Service Understood
      6. Maintain Continuity
    5. Service Distribution
    6. Channels in Services
    7. Why Intermediaries?
      1. Efficiency
      2. Flow of Goods
      3. Routine Building
      4. Search
      5. Feasibility
    8. Service Outputs
      1. Spatial Convenience
      2. Lot Sizes
      3. Waiting Time
      4. Assortment Breadth
    9. Channel Options
      1. Intensive Distribution
      2. Exclusive Distribution
      3. Selective Distribution
    10. Service Distribution Strategy
      1. Multi-Site Strategy
      2. Multi-Service Strategy
      3. Multi-Segment Strategy
      4. Hybrid Strategies
      5. Franchising
      6. Franchise Agreement
      7. When to Franchise?
      8. Advantages and Disadvantages
    11. Service Location
      1. Location Considerations
    12. Distribution Innovations
      1. Franchising
    13. Intermediaries
      1. Electronic Channels
    14. Summing Up
    15. Case Study
    16. Review Questions
    17. Practical Exercises
    18. References
  11. 5. Processes in Services
    1. Process in Goods and Services
    2. Importance
    3. Mapping the Service System
      1. Mapping Process Vertically
      2. Mapping Process Horizontally
      3. System Blueprint – Horizontal and Vertical Process Combined
    4. Service Blueprint – An Example
    5. Type of Services
    6. Understanding Service Process
      1. Variety in Process
      2. Value Addition in Process
      3. Task Allocation
    7. Integrating Marketing with Operations
    8. Decisions in Service Process Planning
    9. Knowing the Process Types
    10. Strategic Position and Service Process
    11. Consequences of Changes in Divergence and Complexity
    12. Service Operational Position
    13. Service Process Matrix
    14. Summing Up
    15. Case Study
    16. Review Questions
    17. Practical Exercises
    18. References
  12. 6. People in Services
    1. The Elements of Goods and Services
    2. People
    3. People Dimension in Services
      1. Moment of Truth
      2. Interpersonal Angle
    4. Importance of People
      1. Service Encounters
      2. Customer Side of an Encounter
      3. Encounter Types
      4. People as Part of Service
      5. People as Representatives of the Firm
      6. People as Marketers
    5. Types of Service Personnel
    6. High-Contact and Low-Contact Services
      1. Frontline and Back-Room Employees
    7. Service Personnel Issues
      1. The Right Person for the Right Job
      2. Skill Set
      3. Employee Training
      4. Sell Jobs Within
      5. Service Scripts
      6. Internal Marketing
      7. Role Conflict and Role Ambiguity in Service Jobs
    8. Emotions in Service Situations
      1. Positive and Negative Emotional States
      2. Emotion Management
      3. Acting Out
      4. Fatigue and Burnout
    9. Service Profit Chain
    10. Service Culture
      1. Importance
    11. Summing Up
    12. Case Study
    13. Review Questions
    14. Practical Exercises
    15. References
  13. 7. Physical Evidence
    1. Importance of Evidence
    2. Evidence Types
    3. Role of Physical Evidence
      1. Service Packaging
      2. Service Facilitation
      3. Socialization
      4. Differentiation
    4. Physical Evidence and Services
    5. Stimulus–Response Model
    6. Servicescapes
      1. The Service Type
      2. Environment Dimensions
      3. Cognitive Responses
      4. Emotional Responses
      5. Physiological Responses
      6. Behavioural Response
    7. Physical Evidence Strategy
      1. Recognize Importance
      2. Service Mapping
      3. Clarify Role
      4. Identify Opportunities
      5. Flexibility
      6. Involve Others
    8. Servicescape and Strategy Considerations
      1. Customer and Competition
      2. Employee Considerations
    9. Summing Up
    10. Case Study
    11. Review Questions
    12. Practical Exercises
    13. References
  14. 8. The Service System
    1. Goods System – Marketing after Production
    2. The Service System – Marketing in the Factory
    3. Operations System
    4. Types of Service
    5. Service Delivery System
    6. Services Marketing System
    7. Functional Conflicts
    8. Anatomy of Service Exchange
    9. Encounter Types
    10. Customer and Staff
    11. Customer and System
    12. Customer and Environment
    13. Customer and Customer
    14. Key Players in Service Creation
    15. Nature of Marketing, HR and Operations Functions
      1. Services Tend to Be Operations Dominated
      2. Marketing Tends to Be New
    16. Human Resource – Emergence of a New Boss
    17. The Marketing and Operations Conflicts
      1. Orientational Conflict
    18. Clash Between Time Horizons
    19. New Service Offers
    20. Evaluation and Reward Criteria
    21. Marketing – Human Resources Conflicts
    22. Role and Goal Inconsistency
    23. Choose Your Strategy
    24. Conflict Resolution is the Key
    25. Promoting Marketing Within
    26. Inter-Functional Transfers for Better Understanding
    27. Promoting Informal Contact
    28. Promoting Marketing at the Field Level
    29. Decentralizing Revenue Responsibility
    30. Internal Marketing
    31. Operating Procedures
    32. Training
    33. Marketing in a Service Firm
    34. Summing Up
    35. Case Study
    36. Review Questions
    37. Practical Exercises
    38. References
  15. 9. Service Customer Behaviour
    1. Need to Know Customer
    2. Customer as a Decision Maker
    3. The Decision-Making Perspective
    4. Customer Purchases Involve Risk
    5. Search, Experience and Credence Attributes
    6. Services Buying, and Risk and Uncertainty
    7. Consumer Decision Process
    8. Customer Expectations
      1. Types of Expectations
      2. Intra-Segment and Inter-Segment Desired Customer Expectations
      3. Expectations Across Firm Within a Category
    9. Zone of Tolerance
      1. Satisfactory Service
      2. Customer Delight and Frustration
      3. Width of Zone of Tolerance and Customer Differences
      4. Width of Zone of Tolerance and Service Dimension Importance
    10. Determinants/Influencers of Customer Expectations
      1. Desired Service
      2. Adequate Service
    11. Service Decision Process
      1. Degree of Involvement
      2. Perceived Product Differentiation
      3. Time Pressure
      4. Mood States
    12. Need for New Services
    13. Information Search Processes
    14. Pre-Purchase Comparisons
      1. Service Evaluations
      2. Post-Purchase Behaviour
    15. Marketing Strategies
      1. Brand Loyalty
      2. Information Provision
      3. Getting to Consider
      4. Winning at Pre-Purchase Comparison
      5. Service Evaluation
      6. Post-Purchase Behaviour
    16. Summing Up
    17. Case Study
    18. Review Questions
    19. Practical Exercises
    20. References
  16. 10. Service Vision and Strategy
    1. Business with Vision and Mission
    2. Mission and Services
    3. Relationships and Services
    4. Mission and Vision: Some Examples
      1. A Fast-Food Chain
      2. A Cosmetics Company
      3. A Telecommunication Company
      4. A Traveller Cheque Company
      5. A Five-Star Hotel Chain
      6. An Adverting Company
      7. A Top IT Company
      8. An IT Solutions Provider
      9. An Insurance Company
      10. An Airline Company
      11. Another Airline Company
    5. Service Strategy
      1. Market Segmentation
      2. Target Market
      3. Service Concept
      4. Operating Strategy
      5. Service Delivery System
    6. Integrative Elements
    7. Developing Service Strategy
      1. Service Attributes
      2. Competition
      3. Firm's Competencies
    8. Summing Up
    9. Case Study
    10. Review Questions
    11. Practice Exercises
    12. References
  17. 11. Market Analysis
    1. Commoditization
    2. Strategy for Differentiation
    3. Customer Analysis
    4. Segment Identification
    5. Coverage Strategies
    6. Customer Benefits and Motivation
    7. Motivation Grouping
    8. Relative Importance
    9. Competitor Analysis
    10. Competitor Identification
    11. Understanding Competitors
    12. Self-Analysis
    13. Summing Up
    14. Case Study
    15. Review Questions
    16. Practical Exercises
    17. References
  18. 12. Sustainable Differentiation
    1. Differentiation
    2. Competitive Positioning
    3. Value Proposition and Strategy
      1. Value Proposition
      2. Strategies
      3. Value Disciplines
      4. Value Chain
      5. Value Chain Differences
      6. Competitive Advantage
    4. Value Enhancement Strategies
      1. Benefit Improvement
      2. Benefit Extension
      3. Value Expension: Experience Provision
    5. Differentiation Over Time
    6. Self-Analysis
    7. Summing Up
    8. Case Study
    9. Review Questions
    10. Practical Exercises
    11. References
  19. 13. Service Quality
    1. What is Quality?
    2. Conformance Quality and Performance Quality
    3. Dimensions of Quality in Goods
    4. Three Levels of Quality
    5. Holistic View of Service Quality
    6. Values and Quality
    7. Quality in Services
    8. Quality and Service Characteristics
    9. What is Service Quality?
      1. Quality Dimensions
    10. Technical Quality and Functional Quality
      1. What (Technical) and How (Process) Dimensions
      2. Total Perceived Quality
    11. Evolution of Service Quality Models
    12. Implementing Quality: Gaps Model
      1. Gap 1: The Understanding Gap
      2. Gap 2: Service Standards Specification Gap
      3. Gap 3: Service Standards–Delivery Gap
      4. Gap 4: Service Promotion Gap
      5. Gap 5: The Service Quality Gap
    13. Measuring Service Quality
    14. Quality Measurement
      1. Implementing SERVQUAL
      2. Critical Evaluation of SERVQUAL
    15. SERVPREF
    16. The Gallup Service Quality Audit (QSA)
      1. Measurement Method
    17. Initiating and Managing Quality
      1. Customer Outcome: Satisfaction
      2. Service Quality is Input
      3. Quality Perception Process
      4. Adequacy of Service Delivery Process
      5. Ascertain Customer Expectations
      6. Setting Standards
      7. Hard or Soft Measures
      8. Convert Standards into Behaviours
      9. Monitor Performance and Take Corrective Actions
    18. Summing Up
    19. Case Study
    20. Review Questions
    21. Practical Exercises
    22. References
  20. 14. Branding Services
    1. Brands and Customer Relationship
    2. Concept of Brand
      1. Signifier and Signified
      2. Brand Vision
    3. Brand Value Proposition
    4. Service Characteristics and Branding
      1. Intangibility
      2. Inseparability
      3. Heterogeneity/Variability
      4. Perishability
    5. Branding Implications
    6. Creating a Strong Service Brand
      1. Courage to be Different
      2. Determine Your Own Fame
      3. Emotional Connection
      4. Internalize the Brand
      5. Brand and Frontline
      6. Brand Concept Management
    7. Summing Up
    8. Case Study
    9. Review Questions
    10. Practical Exercises
    11. References
  21. 15. Demand and Supply Management
    1. The Service Capacity
    2. Fixed Capacity No Inventory
    3. Demand for Services
      1. Predictable and Unpredictable Demand
    4. Demand Disaggregation
    5. Demand and Capacity Interfaces
      1. Situation I
      2. Situation II
      3. Situation III
      4. Situation IV
    6. Strategies to Deal with Imbalances
    7. Unforeseen Imbalances
      1. Intelligence Enhancement
      2. Risk Reduction
    8. Foreseeable Imbalances
      1. Demand Modification Strategies
      2. Product Modification
      3. Price
      4. Place
      5. Promotion
    9. Inventorying Demand
    10. Psychology of Wait
      1. Unoccupied Waiting Time Feels Longer Than Occupied Waiting Time
      2. Waiting in Anxiety Seems Longer
      3. Uncertain Waits Feel Longer Than Finite and Known Waits
      4. Unexplained Waits are Longer Than Explained Waits
      5. Willingness to Wait is Longer When Service in Question is More Valuable
      6. Waiting Alone Feels Longer Than Waiting in a Group
      7. Unfair Waiting Feels Longer Than Equitable Waiting
      8. Preprocess Waits Feel Longer Than In-Process Waits
    11. Reservations
    12. Capacity Modification Strategies
      1. Employ Part-Time Workers
      2. Efficiency Maximization
      3. Cross-Training
      4. Involve Customers
      5. Capacity Sharing
      6. Super-Human Effort
    13. Summing Up
    14. Case Study
    15. Review Questions
    16. Practical Exercises
    17. References
  22. 16. Service Recovery and Empowerment
    1. Things Can Go Wrong
    2. Deviations in Services
    3. Service Failures
    4. Types of Service Encounters
    5. Customer Response to Failures
    6. Customer Feelings
      1. Irritation
      2. Victimization
    7. Failure Types
      1. System Failures
      2. Customer Needs and Requests
      3. Unprompted and Unsolicited Employee Actions
    8. How People Complain
    9. Effective Recovery
    10. Ingredients of Recovery
      1. Apology
      2. Urgent Reinstatement
      3. Empathy
      4. Symbolic Atonement
      5. Follow Up
    11. Recovery Capability
      1. Measure the Cost of Lost Customer
      2. Break Silence and Show Commitment
      3. Resolve Problems Fast
      4. Train and Empower Employees
      5. Tell Customer
    12. Recovery Service
      1. Teaching Importance
      2. Problem Identification
      3. Effective Resolution of Problems
      4. Improve the System
    13. Learning from Failures
      1. Failure Identification
      2. Resolution of Customer Problems
      3. Strategies to Recover
      4. Classify and Communicate Failures
      5. Service Improvement
    14. Service Guarantee
      1. Services and Guarantees
      2. Guaranteeing Service Performance
      3. Good Service Guarantee
    15. Empowerment
    16. Meaning
    17. How Companies Use Empowerment
    18. Benefits and Costs of Empowerment
      1. Benefits
      2. Costs
    19. How to Empower
      1. Suggestion Involvement
      2. Job Involvement
      3. High Involvement
    20. Choice of Approach
      1. Business Strategy
      2. Ties to Customer
      3. Technology
      4. Business Environment
      5. Nature of Employees
    21. Types of Organizations
    22. Empowered Firm
    23. Setting Goals
    24. Change Management Attitudes and Roles
    25. Training and Development
    26. Selection and Recruitment
    27. Provide Necessary Information
    28. Somebody Must Own Problem
    29. Tolerate Mistakes
    30. Summing Up
    31. Case Study
    32. Review Questions
    33. Practical Exercises
    34. References
  23. 17. Customer Relationships
    1. Importance of Relationships
    2. Traditional Interface
      1. Pure Transaction
      2. Repeated Transactions
      3. Long-Term Relationship
      4. Relationship Perspective
    3. Customer Perspective
      1. Cost Benefit Factors
      2. Sociocultural Factors
    4. Economics of Relationship
    5. Customer Satisfaction
    6. Satisfaction Drivers
    7. Is Satisfaction Enough?
    8. Total Customer Satisfaction and Delight
    9. Satisfaction: Cognitive and Affective Perspective
    10. Delight
    11. Relationships in Services
    12. People Factor
    13. Social Encounters
    14. Emotional Connection
    15. Uncertainty and Risk
    16. Importance of Frontline
    17. Relationship Building
    18. Levels of Relationship Building
    19. Relationship Customers
    20. Relationship Tools and Strategies
      1. Lifetime Products and Services
      2. Loyal Employees
      3. Financial Benefits
      4. Social Benefits
      5. Structural Bonds
    21. Summing Up
    22. Case Study
    23. Review Questions
    24. Practical Exercises
    25. References
  24. Cases
    1. 1. Taj Solitaire Crown
    2. 2. Rightaway Restaurant
    3. 3. MidEast Bank
      1. The Situation
      2. Banking Options
      3. The Fear
      4. The Freedom
      5. The Customer Side
      6. The Product
      7. The Problem
    4. 4. Naïve Questioner Expert Replier
    5. 5. Gucchiano
    6. 6. Credit Cards at the Turn of Time
    7. 7. Supremacy Challenged
    8. 8. Skin and Dollars
    9. 9. War for the Sky
      1. The Industry
      2. New Phase
      3. The Challenge
    10. 10. Service Quality Dilemma
    11. 11. Activation Problem
    12. 12. The Complaint Letter
      1. The Company Scene
    13. 13. Faculty School of Business
      1. The Faculty
      2. The Meeting
      3. The Challenge
    14. 14. Japan Motor Limited
  25. Acknowledgements
  26. Copyright