Additional Information
Book Details
Abstract
Essentials of Services Marketing, 3e, is meant for courses directed at undergraduate and polytechnic students, especially those heading for a career in the service sector, whether at the executive or management level. It delivers streamlined coverage of services marketing topics with an exciting global outlook with visual learning aids and clear language. It has been designed so that instructors can make selective use of chapters and cases to teach courses of different lengths and formats in either services marketing or services management.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Cover | Cover | ||
| Title Page | i | ||
| Copyright Page | ii | ||
| Brief Contents | iii | ||
| Dedication\r | v | ||
| About the Authors\r | vii | ||
| Contents | xii | ||
| Preface | xxii | ||
| Acknowledgments | xxxii | ||
| Part I: Understanding Service Markets, Products, and Customers | 3 | ||
| 1. Introduction to Services Marketing | 4 | ||
| Why Study Services? | 7 | ||
| Services Dominate the Global Economy | 7 | ||
| Most New Jobs Are Generated by Services | 7 | ||
| Understanding Services Offers Personal Competitive Advantage | 8 | ||
| What Are the Principal Industries of the Service Sector? | 8 | ||
| Contribution to Gross Domestic Product | 9 | ||
| Powerful Forces Are Transforming Service Markets | 10 | ||
| B2B Services as a Core Engine of Economic Development | 10 | ||
| What Are Services? | 12 | ||
| Benefits without Ownership | 12 | ||
| Defining Services | 14 | ||
| Service Products versus Customer Service and After-Sales Service | 14 | ||
| Four Broad Categories of Services—A Process Perspective | 15 | ||
| People Processing | 15 | ||
| Possession Processing | 15 | ||
| Mental Stimulus Processing | 16 | ||
| Information Processing | 16 | ||
| Services Pose Distinct Marketing Challenges | 17 | ||
| The 7 Ps of Services Marketing | 18 | ||
| The Traditional Marketing Mix Applied to Services | 18 | ||
| The Extended Services Marketing Mix for Managing the Customer Interface | 22 | ||
| Marketing Must Be Integrated with Other Management Functions | 24 | ||
| The Service–Profit Chain | 25 | ||
| A Framework for Developing Effective Service Marketing Strategies | 27 | ||
| 2. Consumer Behavior in a Services Context | 36 | ||
| The Three-Stage Model of Service Consumption | 39 | ||
| Pre-Purchase Stage | 39 | ||
| Need Awareness | 39 | ||
| Information Search | 40 | ||
| Evaluation of Alternative Services | 40 | ||
| Purchase Decision | 48 | ||
| Service Encounter Stage | 48 | ||
| Service Encounters Are “Moments of Truth” | 48 | ||
| Service Encounters Range from High Contact to Low Contact | 49 | ||
| The Servuction System | 50 | ||
| Theater as Metaphor for Service Delivery: An Integrative Perspective | 51 | ||
| Role and Script Theories | 51 | ||
| Perceived Control Theory | 52 | ||
| Post-Encounter Stage | 53 | ||
| Customer Satisfaction | 53 | ||
| Service Quality | 54 | ||
| Customer Loyalty | 56 | ||
| 3. Positioning Services in Competitive Markets | 64 | ||
| Customer-Driven Services Marketing Strategy | 67 | ||
| Customer, Competitor, and Company Analysis (3Cs) | 67 | ||
| Segmentation, Targeting, and Positioning (STP) | 68 | ||
| Segmenting Service Markets | 68 | ||
| Important versus Determinant Service Attributes | 70 | ||
| Segmenting Based on Service Levels | 71 | ||
| Targeting Service Markets | 71 | ||
| Achieving Competitive Advantage through Focus | 71 | ||
| Principles of Positioning Services | 75 | ||
| Using Positioning Maps to Plot Competitive Strategy | 76 | ||
| An Example of Applying Positioning Maps to the Hotel Industry | 77 | ||
| Mapping Future Scenarios to Identify Potential Competitive Responses | 80 | ||
| Positioning Charts Help Executives Visualize Strategy | 82 | ||
| Developing an Effective Positioning Strategy | 82 | ||
| Part II: Applying the 4 Ps of Marketing to Services | 89 | ||
| 4. Developing Service Products And Brands | 90 | ||
| Creating Service Products | 92 | ||
| What Are the Components of a Service Product? | 92 | ||
| The Flower of Service | 95 | ||
| Facilitating Supplementary Services | 95 | ||
| Enhancing Supplementary Services | 98 | ||
| Branding Service Firms, Products, and Experiences | 102 | ||
| Branding Strategies for Services | 102 | ||
| Tiering Service Products with Branding | 104 | ||
| Building Brand Equity | 106 | ||
| Delivering Branded Service Experiences | 107 | ||
| New Service Development | 108 | ||
| A Hierarchy of New Service Categories | 108 | ||
| Achieving Success in New Service Development | 110 | ||
| 5. Distributing Services through Physical and Electronic Channels | 118 | ||
| Distribution in a Services Context | 121 | ||
| What Is Being Distributed? | 121 | ||
| How Should a Service Be Distributed? | 122 | ||
| Customers Visit the Service Site | 122 | ||
| Service Providers Go to Their Customers | 122 | ||
| The Service Transaction Is Conducted Remotely | 123 | ||
| Channel Preferences Vary among Customers | 126 | ||
| Channel Integration Is Key | 126 | ||
| Where Should a Service Facility Be Located? | 127 | ||
| Strategic Location Considerations | 128 | ||
| Tactical Location Considerations | 129 | ||
| Innovative Location Strategies | 130 | ||
| When Should Service Be Delivered? | 132 | ||
| The Role of Intermediaries | 133 | ||
| Benefits and Costs of Alternative Distribution Channels | 133 | ||
| Franchising | 135 | ||
| Other Intermediaries | 137 | ||
| The Challenge of Distribution in Large Domestic Markets | 137 | ||
| Distributing Services Internationally | 139 | ||
| Factors Favoring Adoption of Transnational Strategies | 139 | ||
| Barriers to International Trade in Services | 142 | ||
| How to Enter International Markets | 143 | ||
| 6. Setting Prices and Implementing Revenue Management | 152 | ||
| Effective Pricing Is Central to Financial Success | 154 | ||
| Objectives for Establishing Prices | 154 | ||
| Pricing Strategy Stands on Three Foundations | 154 | ||
| Cost-Based Pricing | 154 | ||
| Value-Based Pricing | 157 | ||
| Reducing Related Monetary and Non-Monetary Costs | 160 | ||
| Competition-Based Pricing | 161 | ||
| Revenue Management: What It Is and How It Works | 163 | ||
| Reserving Capacity for High-Yield Customers | 164 | ||
| How Can We Measure the Effectiveness of a Firm’s Revenue Management? | 165 | ||
| How Does Competitors’ Pricing Affect Revenue Management? | 166 | ||
| Price Elasticity | 166 | ||
| Designing Rate Fences | 168 | ||
| Fairness and Ethical Concerns in Service Pricing | 169 | ||
| Service Pricing Is Complex | 169 | ||
| Piling on the Fees | 172 | ||
| Designing Fairness into Revenue Management | 173 | ||
| Putting Service Pricing into Practice | 177 | ||
| How Much Should Be Charged? | 177 | ||
| What Should Be the Specified Basis for Pricing? | 177 | ||
| Who Should Collect Payment and Where Should Payment Be Made? | 181 | ||
| When Should Payment Be Made? | 181 | ||
| How Should Payment Be Made? | 182 | ||
| How Should Prices Be Communicated to the Target Markets? | 184 | ||
| 7. Promoting Services and Educating Customers | 194 | ||
| Integrated Service Marketing Communications | 196 | ||
| Defining the Target Audience | 196 | ||
| Specifying Service Communication Objectives | 198 | ||
| Strategic Service Communications Objectives | 198 | ||
| Tactical Service Communications Objectives | 198 | ||
| Crafting Effective Service Communication Messages | 202 | ||
| Problems of Intangibility | 202 | ||
| Overcoming the Problems of Intangibility | 203 | ||
| The Services Marketing Communications Mix | 204 | ||
| Communications Originate from Different Sources | 205 | ||
| Messages Transmitted through Traditional Marketing Channels | 206 | ||
| Messages Transmitted Online | 208 | ||
| Messages Transmitted through Service Delivery Channels | 212 | ||
| Messages Originating from Outside the Organization | 215 | ||
| Timing Decisions of Services Marketing Communications | 220 | ||
| Budget Decisions and Program Evaluation | 221 | ||
| Ethical and Consumer Privacy Issues in Communications | 222 | ||
| The Role of Corporate Design | 223 | ||
| Integrated Marketing Communications | 224 | ||
| Part III: Managing the Customer Interface | 235 | ||
| 8. Designing Service Processes | 236 | ||
| What Is a Service Process? | 238 | ||
| Designing and Documenting Service Processes | 238 | ||
| Developing a Service Blueprint | 238 | ||
| Blueprinting the Restaurant Experience: A Three-Act Performance | 241 | ||
| Identifying Fail Points | 248 | ||
| Fail-Proofing to Design Fail Points out of Service Processes | 248 | ||
| Setting Service Standards and Targets | 249 | ||
| Consumer Perceptions and Emotions in Service Process Design | 250 | ||
| Service Process Redesign | 251 | ||
| Service Process Redesign Should Improve Both Quality and Productivity | 252 | ||
| Customer Participation in Service Processes | 254 | ||
| Customers as Service Co-Creators | 254 | ||
| Reducing Service Failures Caused by Customers | 254 | ||
| Self-Service Technologies | 254 | ||
| Customer Benefits and Adoption of Self-Service Technology | 256 | ||
| Customer Disadvantages and Barriers of Adoption of Self-Service Technology | 257 | ||
| Assessing and Improving SSTs | 257 | ||
| Managing Customers’ Reluctance to Change | 259 | ||
| 9. Balancing Demand and Capacity | 268 | ||
| Fluctuations in Demand Threaten Profitability | 270 | ||
| From Excess Demand to Excess Capacity | 270 | ||
| Building Blocks of Managing Capacity and Demand | 272 | ||
| Defining Productive Service Capacity | 272 | ||
| Managing Capacity | 273 | ||
| Stretching Capacity Levels | 273 | ||
| Adjusting Capacity to Match Demand | 274 | ||
| Understand Patterns of Demand | 275 | ||
| Managing Demand | 277 | ||
| Marketing Mix Elements Can Be Used to Shape Demand Patterns | 279 | ||
| Inventory Demand through Waiting Lines and Queuing Systems | 280 | ||
| Waiting Is a Universal Phenomenon | 281 | ||
| Managing Waiting Lines | 281 | ||
| Different Queue Configurations | 283 | ||
| Virtual Waits | 285 | ||
| Queuing Systems Can Be Tailored to Market Segments | 285 | ||
| Customer Perceptions of Waiting Time | 287 | ||
| The Psychology of Waiting Time | 287 | ||
| Inventory Demand through Reservations Systems | 288 | ||
| Reservations Strategies Should Focus on Yield | 289 | ||
| Create Alternative Use for Otherwise Wasted Capacity | 290 | ||
| 10. Crafting the Service Environment | 298 | ||
| Service Environments—an Important Element of the Services Marketing Mix | 300 | ||
| What Is the Purpose of Service Environments? | 300 | ||
| Shape Customers’ Service Experiences and Behaviors | 300 | ||
| Signal Quality and Position, Differentiate, and Strengthen the Brand | 300 | ||
| Core Component of the Value Proposition | 302 | ||
| Facilitate the Service Encounter and Enhance Productivity | 303 | ||
| The Theory behind Consumer Responses to Service Environments | 303 | ||
| Feelings Are a Key Driver of Customer Responses to Service Environments | 304 | ||
| The Servicescape Model–An Integrative Framework | 307 | ||
| Dimensions of the Service Environment | 308 | ||
| The Effect of Ambient Conditions | 308 | ||
| Spatial Layout and Functionality | 313 | ||
| Signs, Symbols, and Artifacts | 314 | ||
| People Are Part of the Service Environment Too | 315 | ||
| Putting It All Together | 315 | ||
| Design with a Holistic View | 315 | ||
| Design from a Customer’s Perspective | 316 | ||
| Tools to Guide Servicescape Design | 319 | ||
| 11. Managing People for Service Advantage | 326 | ||
| Service Employees Are Extremely Important | 328 | ||
| Service Personnel as a Source of Customer Loyalty and Competitive Advantage | 328 | ||
| Front-Line Work Is Difficult and Stressful | 330 | ||
| Service Jobs Are Boundary-Spanning Positions | 330 | ||
| Sources of Role Conflict | 330 | ||
| Emotional Labor | 331 | ||
| Service Sweatshops | 332 | ||
| Cycles of Failure, Mediocrity, and Success | 333 | ||
| The Cycle of Failure | 333 | ||
| The Cycle of Mediocrity | 335 | ||
| The Cycle of Success | 336 | ||
| Human Resource Management—How to Get It Right? | 337 | ||
| Hire the Right People | 337 | ||
| Tools to Identify the Best Candidates | 339 | ||
| Train Service Employees Actively | 343 | ||
| Empower the Front Line | 347 | ||
| Build High-Performance Service-Delivery Teams | 350 | ||
| Integrate Teams across Departments and Functional Areas | 352 | ||
| Motivate and Energize People | 353 | ||
| Service Culture, Climate, and Leadership | 355 | ||
| Building a Service-Oriented Culture | 355 | ||
| A Climate for Service | 356 | ||
| Qualities of Effective Leaders in Service Organizations | 356 | ||
| Leadership Styles, Focus on the Basics, and Role Modeling | 357 | ||
| Focusing the Entire Organization on the Front Line | 357 | ||
| Part IV: Developing Customer Relationships | 371 | ||
| 12. Managing Relationships and Building Loyalty | 372 | ||
| The Search for Customer Loyalty | 375 | ||
| Why Is Customer Loyalty So Important to a Firm’s Profitability? | 375 | ||
| Assessing the Value of a Loyal Customer | 377 | ||
| Worksheet for Calculating Customer Lifetime Value | 377 | ||
| The Gap between Actual and Potential Customer Value | 378 | ||
| Why Are Customers Loyal? | 378 | ||
| The Wheel of Loyalty | 378 | ||
| Building a Foundation for Loyalty | 380 | ||
| Target the Right Customers | 380 | ||
| Search for Value, Not Just Volume | 381 | ||
| Manage the Customer Base through Effective Tiering of Services | 383 | ||
| Customer Satisfaction and Service Quality Are Prerequisites for Loyalty | 386 | ||
| Strategies for Developing Loyalty Bonds with Customers | 387 | ||
| Deepen the Relationship | 387 | ||
| Encourage Loyalty through Financial and Non-financial Rewards | 387 | ||
| Build Higher-Level Bonds | 391 | ||
| Strategies for Reducing Customer Defections | 392 | ||
| Analyze Customer Defections and Monitor Declining Accounts | 392 | ||
| Address Key Churn Drivers | 393 | ||
| Implement Effective Complaint Handling and Service Recovery Procedures | 394 | ||
| Increase Switching Costs | 394 | ||
| Enablers of Customer Loyalty Strategies | 394 | ||
| Customer Loyalty in a Transactional Marketing Context | 394 | ||
| Relationship Marketing | 395 | ||
| Creating ‘Membership-type’ Relationships as Enablers for Loyalty Strategies | 395 | ||
| Customer Relationship Management | 397 | ||
| Common Objectives of CRM Systems | 397 | ||
| What Does a Comprehensive CRM Strategy Include? | 398 | ||
| Common Failures in CRM Implementation | 400 | ||
| How to Get CRM Implementation Right | 400 | ||
| 13. Complaint Handling and Service Recovery | 412 | ||
| Customer Complaining Behavior | 415 | ||
| Customer Response Options to Service Failure | 415 | ||
| Understanding Customer Complaining Behavior | 416 | ||
| What Do Customers Expect Once They Have Made a Complaint? | 417 | ||
| Customer Responses to Effective Service Recovery | 418 | ||
| Impact of Effective Service Recovery on Customer Loyalty | 419 | ||
| The Service Recovery Paradox | 419 | ||
| Principles of Effective Service Recovery Systems | 420 | ||
| Make It Easy for Customers to Give Feedback | 420 | ||
| Enable Effective Service Recovery | 421 | ||
| How Generous Should Compensation Be? | 424 | ||
| Dealing with Complaining Customers | 424 | ||
| Service Guarantees | 426 | ||
| The Power of Service Guarantees | 426 | ||
| How to Design Service Guarantees | 427 | ||
| Is Full Satisfaction the Best You Can Guarantee? | 427 | ||
| Is It Always Beneficial to Introduce a Service Guarantee? | 428 | ||
| Discouraging Abuse and Opportunistic Customer Behavior | 429 | ||
| Seven Types of Jaycustomers | 430 | ||
| Dealing with Customer Fraud | 432 | ||
| Part V: Striving for Service Excellence | 445 | ||
| 14. Improving Service Quality and Productivity | 446 | ||
| Integrating Service Quality and Productivity Strategies | 449 | ||
| Service Quality, Productivity, and Profitability | 449 | ||
| What Is Service Quality? | 450 | ||
| Identifying and Correcting Service Quality Problems | 450 | ||
| The Gaps Model in Service Design and Delivery | 451 | ||
| Key Ways to Close the Gaps in Service Quality | 454 | ||
| Measuring Service Quality | 454 | ||
| Soft and Hard Service Quality Measures | 454 | ||
| Learning From Customer Feedback | 455 | ||
| Key Objectives of Effective Customer Feedback Systems | 455 | ||
| Use a Mix of Customer Feedback Collection Tools | 456 | ||
| Analysis, Reporting, and Dissemination of Customer Feedback | 462 | ||
| Hard Measures of Service Quality | 463 | ||
| Tools to Analyze and Address Service Quality Problems | 466 | ||
| Root Cause Analysis: The Fishbone Diagram | 466 | ||
| Pareto Analysis | 467 | ||
| Blueprinting–A Powerful Tool for Identifying Fail Points | 467 | ||
| Return on Quality | 469 | ||
| Assess Costs and Benefits of Quality Initiatives | 469 | ||
| Determine the Optimal Level of Reliability | 471 | ||
| Defining and Measuring Productivity | 471 | ||
| Defining Productivity in a Service Context | 472 | ||
| Measuring Productivity | 472 | ||
| Service Productivity, Efficiency, and Effectiveness | 473 | ||
| Improving Service Productivity | 473 | ||
| Generic Productivity Improvement Strategies | 473 | ||
| Customer-Driven Approaches to Improve Productivity | 474 | ||
| How Productivity Improvements Impact Quality and Value | 475 | ||
| Integration and Systematic Approaches to Improving Quality and Productivity\r | 478 | ||
| Systematic Approaches to Improving Service Quality and Productivity | 479 | ||
| Which Approach Should a Firm Adopt? | 481 | ||
| 15. Building a World-Class Service Organization | 490 | ||
| Introduction | 491 | ||
| Creating a World-Class Service Organization | 491 | ||
| From Losers to Leaders: Four Levels of Service Performance | 491 | ||
| Moving to a Higher Level of Performance | 495 | ||
| Customer Satisfaction and Corporate Performance | 495 | ||
| Conclusion and Wrap-Up | 497 | ||
| Part VI: Cases | 502 | ||
| Case 1 Sullivan Ford Auto World | 504 | ||
| Case 2 Dr. Beckett’s Dental Office | 510 | ||
| Case 3 Uber: Competing as Market Leader in the United States versus Being a Distant Second in China | 514 | ||
| Case 4 Banyan Tree: Branding the Intangible | 521 | ||
| Case 5 Kiwi Experience | 530 | ||
| Case 6 The Accra Beach Hotel: Block Booking of Capacity during a Peak Period | 538 | ||
| Case 7 Revenue Management of Gondolas: Maintaining the Balance between Tradition and Revenue | 543 | ||
| Case 8 Aussie Pooch Mobile | 546 | ||
| Case 9 Shouldice Hospital Limited (Abridged) | 556 | ||
| Case 10 Red Lobster | 566 | ||
| Case 11 Singapore Airlines: Managing Human Resources for Cost-Effective Service Excellence | 568 | ||
| Case 12 Dr. Mahalee Goes to London: Global Client Management | 577 | ||
| Case 13 The Royal Dining Membership Program Dilemma | 579 | ||
| Case 14 Customer Asset Management at DHL in Asia | 586 | ||
| Case 15 Starbucks: Delivering Customer Service | 590 | ||
| Case 16 LUX*: Staging a Service Revolution in a Resort Chain | 605 | ||
| Case 17 KidZania: Shaping a Strategic Service Vision for the Future | 620 | ||
| Glossary | 641 | ||
| Credits | 651 | ||
| Name Index | 655 | ||
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