Contents - Essentials of Services Marketing, Second Edition.pdf

09/09/2015

Contents - Essenti al s of Ser vi ces Mar keting, Second Edi tion

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Essentials of Services Marketing, Second Edition

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Preface Acknowledgments

Feedback (http://community.saf Part I: Understanding Service Products, Consumers, and Markets and Markets 1. Introduction Introduction to Services Marketing Marketing Why Study Services?

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Services Dominate Dominate the Economy in i n Most Nations Most New Jobs Are Generated by Services

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Po werful Forces Are Transfor forming ming Service Markets 10 days left in your trial.

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What Are Services? Benefits without Ow nership

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Defining Defi ning Services Four Fou r Broad Categories of Serv ices—A ices—A Process Perspectiv e People Processing

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Possession Processing Mental Stimulus Processing Information Processing Services Pose Distinct Marketing Challenges The 7 Ps of Services Marketing The Traditional Marketing Mix Applied to Services The Extended Services Marketing Mix for Managing the Customer Interface Enjoy Safari? Subscribe Today  A Framework for Developing Effective Services Marketing Strategies Understanding Service Products, Consumers, and Markets Applying the 4 Ps of Marketing to Services Designing and Managing the Customer Interface Developing Customer Relationships Striving for Service Excellence 2. Consumer Behavior in a Services Context The Three-Stage Model of Service Consumption Pre-purchase Stage Need Awareness Information Search Evaluation of Alternative Services Purchase Decision Service Encounter Stage Service Encounters Are “Moments of Truth” Service Encounters Range from High Contact to Low Contact The Servuction System Theater as a Metaphor for Service Delivery: An Integrative Perspective Post-Purchase Stage 3. Positioning Services in Competitive Markets Customer-Driven Services Marketing Strategy Customer, Competitor, and Company Analysis (3 Cs) Segmentation, Targeting, and Positioning (STP) Segmenting Service Markets

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Contents - Essentials of Services Marketing, Second Edition

Important versus Determinant Service Att ributes Segmenting Based on Service Levels Targeting Service Markets Achieve Competitive Advantage through Focus PositioningServices Developing an Effective Positioning Strategy Using Positioning Maps to Plot a Competitive Strategy An Example of Applying Positioning Maps to the Hotel Industry Mapping F uture Scenarios to Identify Potential Competitive Responses Positioning Charts Help Executives to Visualize a Strategy Part II: Applying the 4 Ps of Marketing to Services 4. Developing Service Products: Core and Supplementary Elements The Flower of Service Facilitating Supplementary Services Information Order Taking Billing Payment Enhancing Supplementary Services Consultation Hospitality Safekeeping Exceptions Managerial Implications Branding Service Products and Experiences Branding Strategies for Services Tiering Service Products with Branding Building Brand Equity and Developing a Branded Experience New Service Development A Hierarchy of New Service Categories Achieving Success in New Service Development 5. Distributing Services through Physical and Electronic Channels Distribution in a Services Context What Is Distributed? Distribution Options for Serving Customers: Determining the Type of Contact Customers Visit the Service Site Service Providers Go to Their Customers The Service Transaction Is Conducted Remotely Channel Preferences Vary among Consumers Place and Time Decisions Where Should Service Be Delivered in a Brick-and-Mortar Context? When Should Service Be Delivered? Delivering Services in Cyberspace Service Delivery Innovations Fa cilitated by T echnology E-Commerce: the Move to C yberspace The Role of Intermediaries Franchising Distributing Services Internationally How to Enter International Markets 6. Setting Prices and Implementing Revenue Management Effective Pricing Is Central to Financial Success Objectives for Establishing Prices Pricing Strategy Stands on Three Foundations Cost-Based Pricing Value-Based Pricing Reducing Related Monetary and Non-monetary Costs Competition-Based Pricing Revenue Management: What It Is and How It Works Reserving Capacity for High-Yield Customers How Does Competit ors’ Pricing Affect Revenue Management?

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Price Elasticity Designing Rate Fences Ethical Concerns in Service Pricing Service Pricing Is Complex Piling on the Fees Designing F airness into Revenue Management Putting Service Pricing into Practice How Much to Charge? What Should Be the Specified Basis for Pricing? Who Should Collect Payment? Where Should Payment Be Made? When Should Payment Be Made? How Should Payment Be Made? How Should Prices Be Communicated to the Target Markets? 7. Promoting Services and Educating Customers The Role of Marketing Communications Position and Differentiate the Service Promote the Contribution of Service Pe rsonnel and Backstage Operations Add Value through CommunicationContent Facilitate Customer Involvement in Service Production Stimulate or Dampen Dema nd to Match Capacity Challenges of Services Communications Problems of Intangibility Overcoming the Problems of Intangibility Marketing Communications Planning Defining the Target Audience Specifying Communication Objectives The Marketing Communications Mi x Communications Originate from Different Sources Messages Transmitted through Traditional Marketing Channels Messages Transmitted t hrough the Internet Messages Transmitted t hrough Service Delivery Channels Messages Originating from Outside the Organization Ethical and Consumer Privacy Issues in Communication The Role of Corporate Design Part III: Designing and Managing the Customer Interface 8. Designing and Managing Service Processes Flowcharting Customer Service Processes Flowcharting Is a Simple T ool to Document Service Processes Insights from Flowcharting Use Blueprinting to Document and Manage Service Processes Developing a Blueprint Blueprinting the Restaurant Experience: A Three-Act Performance Identifying F ail Points Fail-Proofing to Design Fail Points out of Service Processes Setting Service Standards and Targets Consumer Perceptions and Emotions in Service Processes Service Process Redesign Service Process Redesign to Improve Both Quality and Productivity The Customer as Co-Creators Levels of Customer Participation Customers as Service Co-Creators Reducing Service Failures Caused by Customers Self-Service Technologies Psychological Factors in Customer Self-Service What Aspects of SSTs Please or Annoy Customers? Managing Customers’ Reluctance to Change 9. Balancing Demand and Capacity Fluctuations in Demand Threaten Profitability From Excess Demand to Excess Capacity


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Building Blocks of Managing Capacity and Demand Defining Productive Service Capacity Managing Capacity Stretching Capacity L evels Adjusting Capacity to Match Demand Understanding Patterns of Demand Managing Demand Marketing Mix Elements Can Be Used t o Shape Demand Patterns Inventory Demand through Waiting Lines and Queuing Systems Waiting Occurs Everywhere Managing Waiting Lines Different Queue Configurations Virtual Waits Queuing Systems Can Be Tailored to Market Segments Customer Perceptions of Waiting Time The Psychology of Waiting Time Inventory Demand through Reservation Systems Reservation Strategies Should Focus on Yield 10. Crafting the Service Environment What Is the Purpose of Service Environments? Shape Customers’ Experiences and Behavior For Image , Positioning, and Differentiation Part of t he Value Proposition Facilitate the Service Encounter and Enhance Productivity The Theory Behind Consumer Responses to Service Environments Feelings Are a Key Driver of Customer Responses to Service Environments The Servicescape Model—An Integrative F ramework Dimensions of the Service Environment The Effect of Ambient Conditions Spatial La yout and Functionality Signs, Symbols, and Artifacts People Are Part of the Service Environment, Too Putting It All Together Design with a Holistic View Design from a Customer’s P erspective Tools to Guide Servicescape Design 11. Managing People for Service Advantage Service Employees Are Extremely Important The Frontline in Low-Contact Services Frontline Work Is Difficult and Stressful Boundary Spanning Sources of Role Conflict Emotional Labor Cycles of Failure, Mediocrit y, and Success The Cycle of Failure The Cycle of Mediocrity The Cycle of Success Human Resource Management—How to Get It Right? Hire the Right People Tools to Identify the Best Candidates Train Service Employees Actively Empower the Front Line Build High-Performance Service-Delivery Te ams Motivate a nd Energize People Service Leadership and Culture Part IV: Developing Customer Relationships 12. Managing Relationships and Building Loyalty The Search for Customer Loyalty Why Is Customer Loyalty so Important to a Firm’s Profitability? Assessing the Value of a Loyal Customer


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Why Are Customers Loyal? The Wheel of Loyalty Building a Foundation for Loyalty Targeting the Right Customers Searching for Value, Not Just Volume Managing the Customer Base through Effective Tiering of Service Customer Satisfaction and Service Quality Are Prerequisites for Loyalty Strategies for Developing Loyalty Bonds with Customers Deepeningthe Relationship Encouraging Loyalty through Financial and Non-financial Rewards Building Higher-Level Bonds Strategies for Reducing Customer Defections Analyze Customer Defections and Monitor Declining Accounts Address Key Churn Drivers Implement Effective Complaint Handling and Service Recovery Procedures Increase Switching Costs CRM: Customer Relationship Management Common Objectives of CRM Systems What Does a Comprehensive CRM Strategy Include? Common Failures in CRM Implementation How to Get C RM Implementation Right 13. Complaint Handling and Service Recovery Customer Complaining Behavior Customer Response Options to Service Failure Understanding Customer Complaining Behavior What Do Customers Expect Once They Have Made a Complaint? Customer Responses to Effective Service Recovery Impact of Effective Service Recovery on Customer Loyalty The Service Recovery Paradox Principles of Effective Service Recovery Systems Make It Easy for Customers to Give Feedback Enable Effective Service Recovery How Generous Should Compensation Be? Dealing with Complaining Customers Service Guarantees The Power of Service Guarantees How to Design Service Guarantees Is Full Satisfaction the Best You Can Guarantee? Is It Always Beneficial to Introduce a Service Guarantee? Discouraging Abuse and Opportunistic Customer Behavior Seven Types of Jaycustomers Dealing with Consumer Fraud Part V: Striving for Service Excellence 14. Improving Service Quality and Productivity Integrating Service Quality and Productivity Strategies What Is Service Quality? Dimensions of Service Quality Identifying and Correcting Service Quality Problems The Gaps Model in Service Design and Delivery Key Ways to C lose the Gaps in Service Quality Measuring and Improving Service Quality Soft and Hard Service Quality Measures Learning from Customer Feedback Key Objectives of Effective Customer Feedback Systems Use a Mix of Customer Feedback Collection Tools Analysis, Reporting, andDissemination of Customer Feedback Hard Measures of Service Quality Tools to Analyze and Address Service Quality Problems Root Cause Analysis: The Fishbone Diagram Pareto Analysis


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Blueprinting—A Powerful Tool for Identifying Fail Points Return on Quality Assess Costs and Benefits of Quality Initiatives Determine the Optimal Level of Reliability Defining and Measuring Productivity Defining Productivity in a Service Context Measuring Productivity Service Productivity, Efficiency, and Effectiveness ImprovingServiceProductivity General Productivity Improvement Strategies Customer-Driven Approaches t o Improve Productivity How Productivity Improvements Impact Q uality and Value 15. Organizing for Service Leadership The Service Profit Chain Important Links in the Service Profit Chain Getting the Service Profit Chain Right Creates Shareholder Value Integrating Marketing, Operations, and Human Resources How Are Marketing, Operations, and Human Resources Linked? Do We Need Additional Skill Sets besides Marketing, Operations, and Human Resources? Creating a Leading Service Organization From Losers to L eaders: Four Levels of Service Performance Moving to a Higher Level of Performance Leading Change toward a Higher Performance Level Leadership, Organizational Culture, and Climate Leadership in the Future Part VI: Cases Case 1 Sullivan Ford Auto World Case 2 Dr. Beckett’s Dental Office Case 3 Bouleau & Huntley: Cross-Selling Professional Services Case 4 Banyan Tree: Branding the Intangible Case 5 Giordano: Positioning for International Expansion Case 6 Kiwi Experience Case 7 Distribution at American Airlines Case 8 Managing Word-of-Mouth: The Referral Incentive Program That Backfired Case 9 The Accra Beach Hotel: Block Booking of Capacity during a Peak Period Case 10 Revenue Management of Gondolas: Maintaining the Balance between Tradition and Revenue Case 11 Aussie Pooch Mobile: Expansion by Franchising Case 12 Shouldice Hospital Limited (Abridged) Case 13 Red Lobster Case 14 Singapore Airlines: Managing Human Resources for Cost-effective Service Excellence Case 15 Customer Asset Management at DHL in Asia Case 16 Dr. Mahalee Goes to London: Global Client Management Case 17 Hilton HHonors Worldwi de: Loyalty Wars Case 18 The Royal Dining Membership Program Dilemma Case 19 The Complaint Letter Case 20 The Broadstripe Service Guarantee Case 21 Starbucks: Delivering Customer Service The following cases are available for free download and class distri bution on the Instructor’s Resource Website for courses that adopt Essentials of Services. Case 22 Susan Munro, Service Consumer Case 23 Four Customers in Search of Solutions—Cases A, B & C Case 24 Jollibee Foods Corporation Case 25 Hotel Imperial Case 26 Primula Parkroyal Hotel: Marketing a Business and Resort Hotel in Malaysia Case 27 Ginger: Smart Basics Case 28 Using Technology to Revolutionalize the Library Experience of Singaporean Readers Case 29 TLContact: Care Pages Service (A + B)


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Case 30 Revenue Management at Prego Italian Restaurant Case 31 Massachusetts Audubon Society Case 32 Menton Bank Case 33 Bossard Asia Pacific: Can It Make Its CRM Strategy Work? Case 34 Accellion Service Guarantee Glossary Credits Name Index Subject Index

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Contents - Essentials of Services Marketing, Second Edition.pdf

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