Services marketing

Cover......Page 1
About the Authors......Page 8
About the Contributors of the Cases......Page 10
Brief Contents......Page 12
Contents......Page 14
Preface......Page 18
Acknowledgments......Page 22
Part I: Understanding Service Products, Consumers, and Markets......Page 25
 Chapter 1: New Perspectives on Marketing in the Service Economy......Page 27
   Services Dominate the Economy in Most Nations......Page 28
   Most New Jobs Are Generated by Services......Page 30
   Contribution to Gross Domestic Product......Page 31
   The Historical View......Page 33
   A Fresh Perspective: Benefits without Ownership......Page 37
   Intangible Elements Dominate Value Creation......Page 38
   Service Products versus Customer Service and After-Sales Service......Page 39
   People Processing......Page 41
   Possession Processing......Page 42
   Information Processing......Page 43
  Services Pose Distinct Marketing Challenges......Page 44
   Place and Time......Page 45
   Price and Other User Outlays......Page 46
   Promotion and Education......Page 47
   Process......Page 48
   People......Page 49
  Marketing Must Be Integrated with Other Management Functions......Page 50
   Part II: Applying the 4 Ps of Marketing to Services......Page 51
   Part III: Managing the Customer Interface......Page 52
  Conclusion......Page 53
  Chapter Summary......Page 54
  Application Exercises......Page 55
  Endnotes......Page 56
 Chapter 2: Consumer Behavior in a Services Context......Page 58
  The Three-Stage Model of Service Consumption......Page 59
  Prepurchase Stage......Page 60
   Need Awareness......Page 61
   Evaluating Alternatives......Page 62
  Service Encounter Stage......Page 68
   Service Encounters Are "Moments of Truth"......Page 69
   Service Encounters Range from High Contact to Low Contact......Page 70
   The Servuction System......Page 71
   Role and Script Theories......Page 72
   Are Expectations Always the Right Comparison Standard?......Page 75
   Links between Customer Satisfaction and Corporate Performance......Page 76
  Chapter Summary......Page 78
  Application Exercises......Page 79
  Endnotes......Page 80
 Chapter 3: Positioning Services in Competitive Markets......Page 82
  Achieve Competitive Advantage Through Focus......Page 84
   Identifying and Selecting Target Segments......Page 87
   Establishing Service Levels......Page 89
  Developing an Effective Positioning Strategy......Page 91
   Market, Internal, and Competitor Analyses......Page 93
   An Example of Applying Positioning Maps to the Hotel Industry......Page 95
   Mapping Future Scenarios to Identify Potential Competitive Responses......Page 97
   Innovation in Positioning......Page 99
  Chapter Summary......Page 100
  Application Exercises......Page 101
  Endnotes......Page 102
Part II: Applying the 4 Ps of Marketing to Services......Page 103
 Chapter 4: Developing Service Products: Core and Supplementary Elements......Page 105
   Service Product......Page 106
   Designing the Service Concept......Page 107
  The Flower of Services......Page 109
   Facilitating Supplementary Services......Page 110
   Enhancing Supplementary Services......Page 113
   Managerial Implications......Page 117
   Branding Strategies for Services......Page 118
   Tiering Service Products with Branding......Page 120
   Offering a Branded Experience......Page 122
   A Hierarchy of New Service Categories......Page 123
   Reengineering Service Processes......Page 124
   Physical Goods as a Source of New Service Ideas......Page 125
   Achieving Success in New Service Development......Page 126
  Chapter Summary......Page 129
  Endnotes......Page 130
 Chapter 5: Distributing Services Through Physical and Electronic Channels......Page 132
   What Is Distributed?......Page 133
  Distribution Options for Servicing Customers: Determining the Type of Contact......Page 134
   Service Providers Go to Their Customers......Page 135
   Channel Preferences Vary among Consumers......Page 137
   Where Should Service Be Delivered in a Brick-and-Mortar Context?......Page 138
   When Should Service Be Delivered?......Page 139
  Delivering Services in Cyberspace......Page 140
   E-Commerce: The Move to Cyberspace......Page 142
  The Role of Intermediaries......Page 144
   Franchising......Page 145
  The Challenge of Distribution in Large Domestic Markets......Page 146
   Factors Favoring Adoption of Transnational Strategies......Page 147
   Barriers to International Trade in Services......Page 153
  Chapter Summary......Page 155
  Application Exercises......Page 156
  Endnotes......Page 157
 Chapter 6: Setting Prices and Implementing Revenue Management......Page 158
  Effective Pricing is Central to Financial Success......Page 159
   Objectives for Establishing Prices......Page 160
   Cost-Based Pricing......Page 161
   Value-Based Pricing......Page 163
   Competition-based Pricing......Page 167
  Revenue Management: What it is and how it works......Page 168
   Price Elasticity......Page 169
   Designing Rate Fences......Page 170
  Ethical Concerns in Service Pricing......Page 172
   Service Pricing Is Complex......Page 174
   Designing Fairness into Revenue Management......Page 175
   What Should Be the Specified Basis for Pricing?......Page 178
   When Should Payment Be Made?......Page 180
   How Should Payment Be Made?......Page 181
  Chapter Summary......Page 182
  Review Questions......Page 183
  Endnotes......Page 184
 Chapter 7: Promoting Services and Educating Customers......Page 186
  The Role of Marketing Communications......Page 187
   Position and Differentiate the Service......Page 188
   Stimulate or Dampen Demand to Match Capacity......Page 190
   Overcoming the Problems of Intangibility......Page 191
  Marketing Communications Planning......Page 192
   Defining the Target Audience......Page 194
  The Marketing Communications Mix......Page 196
   Messages Transmitted through Traditional Marketing Channels......Page 197
   Messages Transmitted through the Internet......Page 200
   Messages Transmitted through Service Delivery Channels......Page 204
   Messages Originating from Outside the Organization......Page 207
  The Role of Corporate Design......Page 210
  Chapter Summary......Page 212
  Review Questions......Page 213
  Endnotes......Page 214
Part III: Managing the Customer Interface......Page 217
 Chapter 8: Designing and Managing Service Processes......Page 219
  Flowcharting Customer Service Processes......Page 220
   Flowchartingis a Simple Tool to Document Service Processes......Page 221
  Blueprinting Services to Create Valued Experiences and Productive Operations......Page 223
   Developing a Blueprint......Page 224
   Blueprinting the Restaurant Experience: A Three-Act Performance......Page 225
   Setting Service Standards and Target......Page 231
  Service Process Redesign......Page 234
   Service Process Redesign Should Improve Both Quality and Productivity......Page 236
  The Customer as Co-Producer......Page 237
   Customers as Partial Employees......Page 238
  Self-Service Technologies......Page 241
   What Aspects of SSTs Please or Annoy Customers?......Page 242
  Conclusion......Page 244
  Chapter Summary......Page 246
  Endnotes......Page 247
 Chapter 9: Balancing Demand and Productive Capacity......Page 250
   Defining Productive Capacity......Page 251
   From Excess Demand to Excess Capacity......Page 252
   Adjusting Capacity to Match Demand......Page 254
   Demand Varies by Market Segment......Page 255
   Understanding Patterns of Demand......Page 256
   Marketing Mix Elements Can Be Used to Shape Demand Patterns......Page 257
   Why Waiting Lines Occur......Page 261
   Managing Waiting Lines......Page 262
   Different Queue Configurations......Page 263
   Queuing Systems Can Be Tailored to Market Segments......Page 265
  Customer Perceptions of Waiting Time......Page 266
   The Psychology of Waiting Time......Page 267
  Inventory Demand Through Reservations Systems......Page 268
   Reservations Strategies Should Focus on Yield......Page 270
   Create Alternative Use for Otherwise Wasted Capacity......Page 271
  Conclusion......Page 272
  Chapter Summary......Page 273
  Endnotes......Page 274
 Chapter 10: Crafting the Service Environment......Page 276
  What is the Purpose of Service Environments?......Page 277
   For Image, Positioning, and Differentiation......Page 278
   The Servicescape as Part of the Value Proposition......Page 279
   Facilitate the Service Encounter and Enhance Productivity......Page 280
   Feelings are a Key Driver of Customer Responses to Service Environments......Page 281
   The Servicescapes Model—An Integrative Framework......Page 284
   The Effect of Ambient Conditions......Page 285
   Spatial Layout and Functionality......Page 290
   People are Part of the Service Environment, Too......Page 291
   Design with a Holistic View......Page 292
   Design from a Customer’s Perspective......Page 293
   Tools to Guide Servicescape Design......Page 295
  Chapter Summary......Page 297
  Endnotes......Page 298
 Chapter 11: Managing People for Service Advantage......Page 301
   Service Personnel as a Source of Customer Loyalty and Competitive Advantage......Page 303
   The Frontline in Low-Contact Services......Page 304
   Sources of Conflict......Page 305
   Emotional Labor......Page 306
   Service Sweat Shops?......Page 307
  Cycles of Failure, Mediocrity, and Success......Page 308
   The Cycle of Failure......Page 309
   The Cycle of Mediocrity......Page 311
  Human Resources Management—How to Get It Right......Page 313
   Hire the Right People......Page 314
   Tools to Identify the Best Candidates......Page 315
   Train Service Employees Actively......Page 316
   Empower the Frontline......Page 319
   Build High-Performance Service-Delivery Teams......Page 321
   Motivate and Energize People......Page 323
   The Role of Labor Unions......Page 325
  Service Leadership and Culture......Page 326
   Internal Marketing......Page 327
  Chapter Summary......Page 330
  Application Exercises......Page 331
  Endnotes......Page 332
Part IV: Implementing Profitable Service Strategies......Page 335
 Chapter 12: Managing Relationships and Building Loyalty......Page 337
   Why is Customer Loyalty Important to a Firm's Profitability?......Page 339
   Why are Customers Loyal?......Page 341
   Transactional Marketing......Page 343
   Relationship Marketing......Page 344
   Creating "Membership" Relationships......Page 345
  The Wheel of Loyalty......Page 346
   Searching for Value, Not Just Volume......Page 347
   Managing the Customer Base through Effective Tiering of Service......Page 349
   Customer Satisfaction and Service Quality Are Prerequisites for Loyalty......Page 352
   Encouraging Loyalty through Financial and Nonfinancial Rewards......Page 354
   Building Higher-Level Bonds......Page 357
   Analyze Customer Defections and Monitor Declining Accounts......Page 359
   Implement Effective Complaint Handling and Service Recovery Procedures......Page 360
   Increase Switching Costs......Page 361
   Common Objectives of CRM Systems......Page 362
   What Does a Comprehensive CRM Strategy Encompass?......Page 363
   Common Failures in CRM Implementation......Page 364
   How to Get CRM Implementation Right......Page 365
  Chapter Summary......Page 367
  Review Questions......Page 368
  Endnotes......Page 369
 Chapter 13: Complaint Handling and Service Recovery......Page 372
   Customer Response Options to Service Failures......Page 373
   Understanding Customer Complaining Behavior......Page 374
   What Do Customer Expect Once They Have Made a Complaint?......Page 376
   The Service Recovery Paradox......Page 377
  Principles of Effective Service Recovery Systems......Page 378
   Make It Easy for Customers to Give Feedback......Page 379
   Enable Effective Service Recovery......Page 380
   How Generous Should Compensation Be?......Page 381
   The Power of Service Guarantees......Page 382
   How to Design Service Guarantees......Page 385
   Is Full Satisfaction the Best You Can Guarantee?......Page 386
   Is It Always Appropriate to Introduce a Service Guarantee?......Page 387
   Seven Types of Jaycustomers......Page 388
   Dealing with Consumer Fraud......Page 393
  Chapter Summary......Page 396
  Review Questions......Page 397
  Endnotes......Page 398
 Chapter 14: Improving Service Quality and Productivity......Page 402
   Service Quality, Productivity, and Marketing......Page 405
   Different Perspectives of Service Quality......Page 406
   The Gaps Model in Service Design and Delivery......Page 407
  Measuring and Improving Service Quality......Page 409
   Key Objectives of Effective Customer Feedback Systems......Page 410
   Use a Mix of Customer Feedback Collection Tools......Page 413
   Analysis, Reporting, and Dissemination of Customer Feedback......Page 416
  Hard Measures of Service Quality......Page 417
   Root Cause Analysis: The Fishbone Diagram......Page 419
   Pareto Analysis......Page 420
   Return on Quality......Page 421
   Defining Productivity in a Service Context......Page 423
  Improving Service Productivity......Page 424
   Customer-Driven Approaches to Improve Productivity......Page 425
   How Productivity Improvements Impact Quality and Value......Page 426
  Chapter Summary......Page 428
  Application Exercises......Page 429
  Appendix 14.1: Measuring Service Quality Using Servqual......Page 430
  Appendix 14.2: Measuring Service Quality in Online Environments......Page 432
  Appendix 14.3: Systematic Approaches to Quality and Productivity Improvement and Process Standardization......Page 433
 Chapter 15: Striving for Service Leadership......Page 439
   Important Links in the Service-Profit Chain......Page 440
  Integrating Marketing, Operations, and Human Resources......Page 442
   Integrating Functional Areas in Service Firms......Page 443
   From Losers to Leaders: Four Levels of Service Performance......Page 445
   Leading Change Toward a Higher Performance Level......Page 449
  In Search of Human Leadership......Page 450
   Individual Leadership Qualities......Page 451
   Role Modeling Desired Behavior......Page 453
   Leadership, Culture, and Climate......Page 455
  Conclusion......Page 456
  Chapter Summary......Page 459
  Review Questions......Page 460
  Endnotes......Page 461
Case 1: Sullivan Ford Auto World......Page 463
Case 2: Four Customers in Search of Solutions......Page 469
Case 3: Dr. Beckett's Dental Office......Page 471
Case 4: Banyan Tree Hotels & Resorts......Page 476
Case 5: Giordano: Positioning for International Expansion......Page 486
Case 6: Distribution at American Airlines......Page 498
Case 7: The Accra Beach Hotel: Block Booking of Capacity During a Peak Period......Page 507
Case 8: Revenue Management of Gondolas: Maintaining the Balance Between Tradition and Revenue......Page 513
Case 9: Aussie Pooch Mobile......Page 517
Case 10: Shouldice Hospital Limited (Abridged)......Page 530
Case 11: Red Lobster......Page 542
Case 12: Menton Bank......Page 544
Case 13: Dr. Mahalee Goes to London: Global Client Management......Page 554
Case 14: Hilton HHonors Worldwide: Loyalty Wars......Page 556
Case 15: Massachusetts Audubon Society......Page 570
Case 16: TLContact: CarePages Service (A)......Page 587
Case 17: The Accellion Service Guarantee......Page 600
Case 18: Starbucks: Delivering Customer Service......Page 603
Glossary of Service Marketing and Management Terms......Page 619
Credits......Page 626
Name Index......Page 627
Subject Index......Page 639