Services Marketing: People, Technology, Strategy 9781944659004, 9789332587687, 1944659005, 9781944659028, 1944659021

Table of contents :
Cover......Page 1
Half Title......Page 4
Title Page......Page 6
Copyright Page......Page 7
Dedication......Page 8
Brief Contents......Page 9
Table of Contents......Page 10
About the Authors......Page 17
About the Contributors of the Case Studies......Page 19
Preface......Page 20
Acknowledgements......Page 22
Part I: Understanding Service Products, Consumers, and Markets......Page 24
1. Creating Value in the Service Economy......Page 26
Services Dominate the Global Economy......Page 29
Most New Jobs Are Generated by Services......Page 30
What Are the Principal Industries of the Service Sector?......Page 33
Contribution to Gross Domestic Product......Page 36
B2b Services as a Core Engine of Economic Development......Page 37
Outsourcing and Offshoring Often Work in Tandem......Page 39
Benefits Without Ownership......Page 41
Service Products versus Customer Service and After-Sales Service......Page 44
Four Broad Categories of Services — A Process Perspective......Page 45
Possession Processing......Page 46
Mental Stimulus Processing......Page 47
Services Pose Distinct Marketing Challenges......Page 48
The 7 Ps of Services Marketing......Page 50
Place and Time......Page 51
Promotion and Education......Page 52
Process......Page 54
People......Page 55
Marketing Must be Integrated with Other Management Functions......Page 56
The Service–Profit Chain......Page 57
A Framework for Developing Effective Service Marketing Strategies......Page 60
Managing the Customer Interface......Page 61
Striving for Service Excellence......Page 62
2. Understanding Service Consumers......Page 72
Prepurchase Stage......Page 74
Information Search......Page 76
Evaluation of Alternative Services......Page 77
Purchase Decision......Page 86
Service Encounters Are “Moments of Truth”......Page 88
Service Encounters Range From High Contact to Low Contact......Page 89
The Servuction System......Page 90
Theater as Metaphor for Service Delivery: An Integrative Perspective......Page 92
Role and Script Theories......Page 93
Perceived Control Theory......Page 95
Customer Satisfaction......Page 96
Service Quality......Page 98
Customer Loyalty......Page 102
3. Positioning Services in Competitive Markets......Page 110
Customer-Driven Services Marketing Strategy......Page 114
Customer, Competitor, and Company Analysis (3Cs)......Page 116
Segmentation, Targeting, and Positioning (STP)......Page 119
Segmenting Service Markets......Page 120
Important versus Determinant Service Attributes......Page 121
Segmentation Based on Service Levels......Page 123
Principles of Positioning Services......Page 129
An Example of Applying Positioning Maps to the Hotel Industry......Page 131
Mapping Future Scenarios to Identify Potential Competitive Responses......Page 134
Positioning Charts Help Executives Visualize Strategy......Page 136
Developing an Effective Positioning Strategy......Page 137
Part II: Applying the 4 Ps of Marketing to Services......Page 142
4. Developing Service Products and Brands......Page 144
What Are the Components of a Service Product?......Page 146
The Flower of Service......Page 150
Facilitating Supplementary Services......Page 151
Enhancing Supplementary Services......Page 154
Managerial Implications......Page 157
Branding Service Firms, Products, and Experiences......Page 159
Branding Strategies for Services......Page 160
Tiering Service Products with Branding......Page 161
Building Brand Equity......Page 163
Delivering Branded Service Experiences......Page 164
A Hierarchy of New Service Categories......Page 165
Achieving Success in New Service Development......Page 166
5. Distributing Services Through Physical and Electronic Channels......Page 174
What is Being Distributed?......Page 176
Service Providers Go to Their Customers......Page 178
The Service Transaction Is Conducted Remotely......Page 181
Channel Preferences Vary Among Customers......Page 183
Where Should a Service Facility be Located?......Page 184
Tactical Location Considerations......Page 185
Innovative Location Strategies......Page 186
Benefits and Costs of Alternative Distribution Channels......Page 190
Franchising......Page 192
The Challenge of Distribution in Large domestic Markets......Page 195
Factors Favoring Adoption of Transnational Strategies......Page 197
How Does the Nature of a Service Affect International Distribution?......Page 200
How to Enter International Markets?......Page 202
6. Service Pricing and Revenue Management......Page 212
Effective Pricing is Central to Financial Success......Page 214
Objectives for Establishing Prices......Page 216
Cost-based Pricing......Page 217
Value-based Pricing......Page 220
Reducing Related Monetary and Non-monetary Costs......Page 221
Competition-based Pricing......Page 224
Revenue Management: What It Is and How It Works......Page 226
Reserving Capacity for High-yield Customers......Page 227
Price Elasticity......Page 228
Designing Rate Fences......Page 229
Service Pricing is Complex......Page 233
Piling on the Fees......Page 235
Designing Fairness into Revenue Management......Page 237
Putting Service Pricing Into Practice......Page 239
How Much to Charge?......Page 240
What Should be the Specified Basis for Pricing?......Page 242
Who Should Collect Payment and Where Should Payment be Made?......Page 243
When Should Payment be Made?......Page 244
How Should Prices be Communicated to the Target Markets?......Page 245
7. Service Marketing Communications......Page 254
Integrated Service Marketing Communications......Page 256
Defining the Target Audience......Page 258
Tactical Service Communications Objectives......Page 259
Promote Tangible Cues to Communicate Quality......Page 262
Problems of Intangibility......Page 264
Overcoming the Problems of Intangibility......Page 265
The Services Marketing Communication Mix......Page 268
Messages Transmitted through Traditional Marketing Channels......Page 270
Messages Transmitted Online......Page 273
Messages Transmitted through Service Delivery Channels......Page 280
Messages Originating from Outside the Organization......Page 282
Budget Decisions and Program Evaluation......Page 291
Ethical and Consumer Privacy Issues in Communications......Page 292
The Role of Corporate Design......Page 293
Integrated Marketing Communications......Page 296
Part III: Managing the Customer Interface 293......Page 316
8. Designing Service Processes......Page 318
Designing and Documenting Service Processes......Page 320
Developing a Service Blueprint......Page 323
Blueprinting the Restaurant Experience: a Three-Act Performance......Page 325
Fail-Proofing to Design Fail Points out of Service Processes......Page 332
Setting Service Standards and Targets......Page 333
Consumer Perceptions and Emotions in Service Process Design......Page 334
Service Process Redesign......Page 336
Service Process Redesign Should Improve Both Quality and Productivity......Page 337
Levels of Customer Participation......Page 340
Self-Service Technologies......Page 342
Customer Benefits and Adoption of Self-Service Technology......Page 345
Customer Disadvantages and Barriers of Adoption of Self-Service Technology......Page 347
Managing Customers’ Reluctance to Change......Page 348
9. Balancing Demand and Capacity......Page 364
Fluctuations in Demand Threaten Profitability......Page 365
From Excess Demand to Excess Capacity......Page 366
Building Blocks of Managing Capacity and Demand......Page 367
Defining Productive Service Capacity......Page 368
Stretching Capacity Levels......Page 370
Adjusting Capacity to Match Demand......Page 371
Understand Patterns of Demand......Page 372
Managing Demand......Page 375
Marketing Mix Elements Can be used to Shape Demand Patterns......Page 377
Waiting is a Universal Phenomenon......Page 380
Managing Waiting Lines......Page 381
Different Queue Configurations......Page 382
Virtual Waits......Page 384
The Psychology of Waiting Time......Page 386
Inventory Demand Through Reservations Systems......Page 388
Create Alternative Use for Otherwise Wasted Capacity......Page 389
10. Crafting the Service Environment......Page 396
Shape Customers’ Service Experience and Behaviors......Page 398
Signal Quality and Position, Differentiate and Strengthen the Brand......Page 400
Core Component of The Value Proposition......Page 401
Facilitate the Service Encounter and Enhance Productivity......Page 402
Feelings are a Key Driver of Customer Responses to Service Environments......Page 403
Dimensions of the Service Environment......Page 406
The Effect of Ambient Condition......Page 408
Spatial Layout and Functionality......Page 414
Signs, Symbols and Artifacts......Page 415
People are Part of the Service Environment too......Page 417
Design from a Customer’s Perspective......Page 418
11. Managing People for Service Advantage......Page 428
Service Employees are Extremely Important......Page 430
Service Personnel as a Source of Customer Loyalty and Competitive Advantage......Page 432
The Frontline in Low-Contact Services......Page 433
Sources of Role Conflict......Page 434
Emotional Labor......Page 435
Service Sweatshops?......Page 436
The Cycle of Failure......Page 438
The Cycle of Mediocrity......Page 441
The Cycle of Success......Page 443
Human Resource Management – How to Get it Right......Page 444
Hire the Right People......Page 445
Tools to Identify the Best Candidates......Page 447
Train Service Employees Actively......Page 449
Internal Communications to Shape the Service Culture and Behaviors......Page 455
When are High Levels of Empowerment Appropriate?......Page 456
Build High-Performance Service-Delivery Teams......Page 460
Integrate Teams Across Departments and Functional Areas......Page 462
Motivate and Energize People......Page 463
The Role of Labor Unions......Page 465
Building a Service-Oriented Culture......Page 466
Qualities of Effective Leaders in Service Organizations......Page 467
Leadership Styles, Focus on the Basics, and Role Modelling......Page 468
Focusing the Entire Organization on the Frontline......Page 470
Part IV: Developing Customer Relationships 459......Page 482
12. Managing Relationships and Building Loyalty......Page 484
The Search for Customer Loyalty......Page 486
Why Is Customer Loyalty So Important to a Firm’s Profitability?......Page 488
Assessing the Value of a Loyal Customer......Page 490
Worksheet for Calculating Customer Lifetime Value......Page 491
Understanding the Customer-Firm Relationship......Page 492
Interaction Marketing......Page 493
Creating “Membership” Relationships......Page 494
Building A Foundation For Loyalty......Page 497
Search for Value, Not Just Volume......Page 498
Manage the Customer Base through Effective Tiering of Service......Page 499
Customer Satisfaction and Service Quality Are Prerequisites for Loyalty......Page 509
Deepen the Relationship......Page 510
Encourage Loyalty through Financial and Non-financial Rewards......Page 511
Build Higher-Level Bonds......Page 513
Analyze Customer Defections and Monitor Declining Accounts......Page 517
Implement Effective Complaint Handling and Service Recovery Procedures......Page 518
Increase Switching Costs......Page 519
Relationship Marketing......Page 520
Creating “Membership-Type” Relationships as Enablers for Loyalty Strategies......Page 521
CRM: Customer Relationship Management......Page 522
Common Objectives of CRM Systems......Page 523
What Does a Comprehensive CRM Strategy Include?......Page 524
How to Get CRM Implementation Right......Page 526
13. Complaint Handling and Service Recovery......Page 538
Understanding Customer Complaining Behavior......Page 540
What Do Customers Expect Once They Have Made A Complaint?......Page 544
Impact of Effective Service Recovery on Customer Loyalty......Page 545
The Service Recovery Paradox......Page 546
Principles of Effective Service Recovery Systems......Page 547
Make It Easy for Customer to Give Feedback......Page 548
Enable Effective Service Recovery......Page 549
Dealing with Complaining Customers......Page 551
The Power of Service Guarantees......Page 553
How to Design Service Guarantees......Page 554
Is Full Satisfaction the Best You Can Guarantee?......Page 555
Is It Always Beneficial to Introduce a Service Guarantee?......Page 557
Discouraging Abuse and Opportunistic Customer Behavior......Page 558
Seven Types of Jaycustomers......Page 559
Consequences of Dysfunctional Customer Behavior......Page 565
Dealing with Consumer Fraud......Page 566
Part V: Striving for Service Excellence 555......Page 578
14. Improving Service Quality and Productivity......Page 580
Service Quality, Productivity, and Profitability......Page 582
What is Service Quality?......Page 585
The Gaps Model in Service Design and Delivery......Page 586
Key Ways to Close the Gaps in Service Quality......Page 587
Soft and Hard Service Quality Measures......Page 590
Key Objectives of Effective Customer Feedback Systems......Page 591
Use a Mix of Customer Feedback Collection Tools......Page 592
Analysis, Reporting, and Dissemination of Customer Feedback......Page 597
Hard Measures of Service Quality......Page 599
Root Cause Analysis: The Fishbone Diagram......Page 602
Blueprinting — A Powerful Tool for Identifying Fail Points......Page 604
Assess Costs and Benefits of Quality Initiatives......Page 605
Determine the Optimal Level of Reliability......Page 606
Measuring Productivity......Page 608
Service Productivity, Efficiency, and Effectiveness......Page 609
Generic Productivity Improvement Strategies......Page 610
How Productivity Improvements Impact Quality and Value......Page 612
Total Quality Management......Page 615
Six Sigma......Page 617
Malcolm-Baldrige and EFQM Approaches......Page 618
Which Approach Should a Firm Adopt?......Page 619
15. Building a World Class Service Organization......Page 628
From Losers to Leaders: Four Levels of Service Performance......Page 629
Customer Satisfaction and Corporate Performance......Page 633
Part VI: Case Studies......Page 640
Case 1 Sullivan Ford Auto World......Page 642
Case 2 Dr. Beckett’s Dental Office......Page 648
Case 3 Bouleau & Huntley: Crossselling Professional Services......Page 652
Case 4 Uber: Competing as Market Leader in the US versus Being a Distant Second in China......Page 658
Case 5 Banyan Tree: Designing and Delivering a Branded Service Experience......Page 665
Case 6 Kiwi Experience......Page 675
Case 7 The Accra Beach Hotel: Block Booking of Capacity during a Peak Period......Page 684
Case 8 Aussie Pooch Mobile......Page 689
Case 9 Shouldice Hospital Limited (Abridged)......Page 700
Case 10 Delwarca Software Remote Support Unit......Page 711
Case 11 Red Lobster......Page 716
Case 12 Raleigh & Rosse: Measure to Motivate Exceptional Service......Page 719
Case 13 Singapore Airlines: Managing Human Resources for Cost-effective Service Excellence......Page 728
Case 14 Dr. Anjishnu Sen Goes to London......Page 737
Case 15 The Royal Dining Membership Program Dilemma......Page 739
Case 16 Starbucks: Delivering Customer Service......Page 746
Case 17 LUX*: Staging a Service Revolution in a Resort Chain......Page 762
Case 18 KidZania: Shaping a Strategic Service Vision for the Future......Page 778
Case 19 Marketing Strategy for a Media Service: The Case of Radio Spicy— An Intern’s Report......Page 798
Case 20-33 Additional Case Studies Available for Download......Page 818
Glossary......Page 820
Name Index......Page 829
Subject Index......Page 833
Back Cover......Page 841