Services Marketing Concepts Strategies and Cases 5th edition by Douglas Hoffman, John Bateson 0357671309 9780357671306

Part I. An Overview of Services Marketing

Chapter 1. An Introduction to Services

1-1. Introduction

1-2. What Is a Service?

1-2a. The Scale of Market Entities

1-2b. The Economic Value of Transforming Goods into Services

1-2c. The Molecular Model

1-3. Creating the Service Experience

1-4. The Servuction Model

1-4a. The Servicescape

1-4b. Contact Personnel/Service Providers

1-4c. Other Customers

1-4d. Invisible Organization and Systems

1-5. Why Study Services?

1-5a. The Growth of the Global Service Economy

1-5b. The Growth of the Global Service Labor Force

1-5c. The Emergence of E-Service(s)

1-5d. Serving It Up Green: Sustainability Comes to Services

Summary

Key Terms

Review Questions

Chapter 2. The Service Economy: Supersectors and Ethical Considerations

2-1. Introduction

2-2. What Is the Service Economy?

2-2a. Education and Health Services

2-2b. Financial Activities

2-2c. Government

2-2d. Information

2-2e. Leisure and Hospitality

2-2f. Professional and Business Services

2-2g. Transportation and Warehousing and Utilities

2-2h. Wholesale and Retail Trade

2-2i. Other Services

2-2j. The Service Sector: Concluding Thoughts

2-3. Ethical Considerations for Services Marketers

2-4. What Are Ethics?

2-5. The Opportunity for Ethical Misconduct in Services Marketing

2-5a. Services Consist of Few Search Attributes

2-5b. Technical and Specialized Services

2-5c. Time Lapse Between Performance and Evaluation

2-5d. Services Sold Without Guarantees and Warranties

2-5e. Services Performed by Boundary-Spanning Personnel

2-5f. Accepted Variability in Performance

2-5g. Outcome-Based Reward Systems

2-5h. Consumer Participation in Production

2-6. Issues that Create Ethical Conflict

2-6a. Conflict of Interest

2-6b. Organizational Relationships

2-6c. Honesty

2-6d. Fairness

2-6e. Communication

2-7. The Effects of Ethical Misconduct

2-8. Controlling Ethical Decision Making

2-8a. Employee Socialization

2-8b. Standards of Conduct

2-8c. Corrective Control

2-8d. Leadership Training

2-8e. Service/Product Knowledge

2-8f. Monitoring of Employee Performance

2-8g. Stress Long-Term Customer Relationships

Summary

Key Terms

Review Questions

Chapter 3. Fundamental Differences Between Goods and Services

3-1. Introduction

3-2. Intangibility: The Mother of All Unique Differences

3-2a. Marketing Challenges Created by Intangibility

3-2b. Possible Solutions to Challenges Caused by Intangibility

3-3. Inseparability: The Interconnection of Service Participants

3-3a. Marketing Challenges Created by Inseparability

3-3b. Possible Solutions to Challenges Created by Inseparability

3-4. Heterogeneity: The Variability of Service Delivery

3-4a. Marketing Challenges Created by Heterogeneity

3-4b. Possible Solutions to Challenges Caused by Heterogeneity

3-5. Perishability: Balancing Supply and Demand

3-5a. Marketing Challenges Caused by Perishability

3-5b. Possible Solutions to Challenges Created by Perishability

3-6. Marketing, Operations, and Human Resources Must Work Together

Summary

Key Terms

Review Questions

Chapter 4. Services Consumer Behavior

4-1. Introduction

4-2. The Consumer Decision Process: An Overview

4-2a. The Prepurchase Stage: The Stimulus

4-2b. The Prepurchase Stage: Problem Awareness

4-2c. The Prepurchase Stage: Information Search

4-2d. The Prepurchase Stage: Evaluation of Alternatives

4-2e. The Consumption Stage: Choice

4-2f. The Postpurchase Stage: Postpurchase Evaluation

4-3. Special Considerations Pertaining to Services

4-3a. Prepurchase Stage Considerations: Perceived Risk

4-3b. Prepurchase Stage Considerations: The Importance of Personal Sources of Information

4-3c. Prepurchase Stage Considerations: Fewer Alternatives to Consider

4-3d. Prepurchase Stage Considerations: Self-Service as a Viable Alternative

4-3e. Consumption Stage Considerations

4-3f. Postpurchase Considerations

Summary

Key Terms

Review Questions

Part II. The Tactical Services Marketing Mix

Chapter 5. The Service Delivery Process

5-1. Introduction

5-2. Stages of Operational Competitiveness

5-2a. Stage 1: Available for Service

5-2b. Stage 2: Journeyman

5-2c. Stage 3: Distinctive Competence Achieved

5-2d. Stage 4: World-Class Service Delivery

5-3. Marketing and Operations: Balance is Critical

5-4. In a Perfect World, Service Firms Would Be Efficient

5-4a. Thompson’s Perfect-World Model

5-4b. The Focused Factory Concept

5-4c. The Plant-Within-a-Plant Concept

5-5. Applying Efficiency Models to Service Firms

5-5a. Operations Solutions for Service Firms

5-5b. Moving the Time of Demand to Fit Capacity

5-6. The Art of Blueprinting

5-6a. An Example of a Simple Blueprint

5-6b. The Service Operations Manager’s Perspective

5-6c. The Service Marketing Manager’s Perspective

5-6d. Using Service Blueprints to Identify the Servuction Process

5-6e. A Marketing or an Operations Blueprint?

5-6f. Constructing the Service Blueprint

5-7. Blueprinting and New-Product Development: The Roles of Complexity and Divergence

Summary

Key Terms

Review Questions

Chapter 6. The Pricing of Services

6-1. Introduction

6-2. What Does It Mean to Provide Value?

6-3. Special Considerations of Service Pricing

6-3a. Cost Considerations

6-3b. Demand Considerations

6-3c. Customer Considerations

6-3d. Competitive Considerations

6-3e. Profit Considerations

6-3f. Product Considerations

6-3g. Legal Considerations

6-4. Emerging Service Pricing Strategies

6-4a. Satisfaction-Based Pricing

6-4b. Relationship Pricing

6-4c. Efficiency Pricing

6-4d. Adaptive Pricing

6-5. Some Final Thoughts on Pricing Services

Summary

Key Terms

Review Questions

Chapter 7. Developing the Service Communication Strategy

7-1. Introduction

7-2. Managing the Service Communication Process

7-2a. Selecting Target Markets

7-2b. Establishing Communications Objectives

7-2c. Setting the Communications Budget

7-2d. Formulating the Service Firm’s Positioning Strategy

7-2e. Establishing Message and Media Strategies

7-2f. Monitoring, Evaluating and Controlling the Communication Strategy

7-3. Special Challenges Associated with the Service Communications Strategy

7-3a. Mistargeted Communications

7-3b. Managing Expectations and Perceptions

7-3c. Advertising to Employees

7-3d. Selling/Operation Conflicts

7-4. Specific Guidelines for Developing Service Communications

7-4a. Develop a Word-of-Mouth Communications Network

7-4b. Promise What Is Possible

7-4c. Tangibilize the Intangible

7-4d. Feature the Working Relationship Between Customer and Provider

7-4e. Reduce Consumer Fears about Variations in Performance

7-4f. Determine and Focus on Relevant Service Quality Dimensions

7-4g. Differentiate the Service Product via the Service Delivery Process

7-4h. Make the Service More Easily Understood

7-5. Developing Communication Strategies for Professional Service Providers

7-5a. Special Considerations for Professional Service Providers

7-5b. Establish Regular Communications with Clients

7-5c. Develop a Firm Brochure

7-5d. An Informed Office Staff Is Vital

Summary

Key Terms

Review Questions

Chapter 8. Managing the Firm’s Physical Evidence

8-1. Introduction

8-2. The Strategic Role of Physical Evidence

8-2a. Packaging

8-2b. Facilitating the Service Process

8-2c. Socializing Employees and Customers

8-2d. A Means for Differentiation

8-3. The SOR Model

8-4. The Development of Servicescapes

8-4a. Remote, Self-Service, and Interpersonal Services

8-4b. Stage 1: Physical Environmental Dimensions

8-4c. Stage 2: Holistic Environment

8-4d. Stage 3: Internal Response Moderators

8-4e. Stage 4: Internal Responses

8-4f. Stage 5: Behavioral Responses to the Environment

8-5. Managing the Senses When Creating Servicescapes

8-5a. Sight Appeals

8-5b. Sound Appeals

8-5c. Scent Appeals

8-5d. Touch Appeals

8-5e. Taste Appeals

Summary

Key Terms

Review Questions

Chapter 9. People as Strategy: Managing Service Employees

9-1. Introduction

9-2. The Service Provider Role

9-2a. Coping Strategies and Implications for Customers

9-2b. How Can Marketing Make Things Better or Worse?

9-3. Unleashing Service with the Right Climate

9-3a. Creating a Climate for Service

9-3b. Controlling, Rewarding and Evaluating Service Providers

9-3c. Empowerment

9-4. The Role of Management

9-5. Information Technology and the Service Provider

9-5a. Customer Relationship Management

Summary

Key Terms

Review Questions

Chapter 10. People as Strategy: Managing Service Consumers

10-1. Introduction

10-2. Expert and Novice Consumers as Part of the Production Process

10-3. The Theatrical Analogy

10-3a. Defining Novices and Experts Using the Script Idea

10-4. Consumer Performance and Operational Efficiency

10-5. Consumer Satisfaction and Consumer Performance

10-6. Managing Consumer Performance Scripts

10-6a. Audit Your Consumer Performance Expertise

10-6b. Increasing the Share of Consumers Who Are Expert Performers

10-6c. Change Scripts Carefully

10-6d. Coping with Novices and Experts

10-7. Managing Consumer Service Perceptions During The Service Experience

10-7a. Principle 1: Uncertain Waits are Longer than Known, Finite Waits

10-7b. Principle 2: Unexplained Waits are Longer than Explained Waits

10-7c. Principle 3: Anxiety Makes the Wait Seem Longer

10-7d. Principle 4: Preprocess Waits Feel Longer than In-Process Waits—Post-Process Waits Feel Longest of All

10-7e. Principle 5: Unfair Waits Are Longer than Equitable Waits

10-7f. Principle 6: Unoccupied Waits Feel Longer than Occupied Waits

10-7g. Principle 7: Solo Waits Are Longer than Group Waits

10-7h. Principle 8: The More Valuable the Service, the Longer the Customer Will Wait

10-8. Consumer Performance and The Role of Marketing and Operations

Summary

Key Terms

Review Questions

Part III. Assessing and Implementing Successful Service Strategies

Chapter 11. Defining and Measuring Customer Satisfaction

11-1. Introduction

11-2. The Importance of Customer Satisfaction

11-2a. What Is Customer Satisfaction and Dissatisfaction?

11-2b. The Benefits of Customer Satisfaction

11-2c. The Benefits of Customer Satisfaction Surveys

11-3. Measuring Customer Satisfaction

11-3a. The Scale of 100 Approach

11-3b. The “Very Dissatisfied/Very Satisfied” Approach

11-3c. The Combined Approach

11-4. Understanding Customer Satisfaction Ratings

11-4a. Factors Influencing Customer Satisfaction Ratings

11-4b. Are Customer Satisfaction Surveys Worth It?

11-5. Customer Satisfaction: How Good Is Good Enough?

11-6. Does Customer Satisfaction Translate into Customer Retention?

11-7. Customer Satisfaction: A Closer Look

11-7a. Types of Customer Expectations

11-7b. The Zone of Tolerance

11-7c. Factors Influencing Service Expectations: Desired Service

11-7d. Factors Influencing Service Expectations: Desired Service and Predicted Service

11-7e. Factors Influencing Service Expectations: Adequate Service

11-7f. The Link between Expectations, Customer Satisfaction, and Service Quality

Summary

Key Terms

Review Questions

Chapter 12. Defining and Measuring Service Quality

12-1. Introduction

12-2. What Is Service Quality?

12-2a. The Difference in Quality Perspectives between Goods and Services

12-3. Diagnosing Failure Gaps in Service Quality

12-3a. The Knowledge Gap (Gap 1)

12-3b. The Standards Gap (Gap 2)

12-3c. The Delivery Gap (Gap 3)

12-3d. The Communications Gap (Gap 4)

12-4. Measuring Service Quality: The SERVQUAL Measurement Scale

12-4a. The Tangibles Dimension

12-4b. The Reliability Dimension

12-4c. The Responsiveness Dimension

12-4d. The Assurance Dimension

12-4e. The Empathy Dimension

12-4f. Determining the Importance of Each of the Five Dimensions

12-4g. Criticisms of SERVQUAL

12-4h. SERVQUAL: Some Final Thoughts

12-5. Service Quality Information Systems

12-5a. Solicitation of Customer Complaints

12-5b. After-Sales Surveys

12-5c. Customer Focus Group Interviews

12-5d. Mystery Shopping

12-5e. Employee Surveys

12-5f. Total Market Service Quality Surveys

Summary

Key Terms

Review Questions

Chapter 13. Complaint and Service Recovery Management

13-1. Introduction

13-2. The Psychology of Customer Complaining Behavior

13-2a. Types of Complaints

13-2b. Types of Complainers

13-2c. Why Do Customers Complain?

13-2d. Why Don’t Customers Complain?

13-2e. Complaining Outcomes

13-3. Developing a Service Recovery Management Program

13-3a. Developing a Positive Internal Recovery Culture

13-3b. Service Failure Identification

13-3c. Service Failure Attribution: Identifying the Root Cause

13-3d. Recovery Strategy Selection: What Should the Customer Receive to Offset the Failure?

13-3e. Recovery Strategy Implementation: How Should the Recovery Strategy Be Presented to the Customer?

13-3f. Providing Feedback to Employees

13-4. The Art of Service Recovery: Basic Rules of Thumb

13-4a. Measure the Costs

13-4b. Actively Encourage Complaints

13-4c. Anticipate Needs for Recovery

13-4d. Train Employees

13-4e. Empower the Front Line

13-4f. Respond Quickly

13-4g. Close the Loop

Summary

Key Terms

Review Questions

Chapter 14. Customer Loyalty and Retention

14-1. Introduction

14-2. What Is Customer Loyalty?

14-2a. You’re Great, but It’s Over!

14-2b. Strategies for Cultivating Customer Loyalty

14-3. What Is Customer Retention?

14-3a. The Trend toward Customer Retention

14-3b. The Importance of Customer Retention

14-4. The Benefits of Customer Retention

14-4a. Profits Derived from Sales

14-4b. Profits from Reduced Operating Costs

14-4c. Profits from Referrals

14-4d. Clarifying the Benefits of Customer Retention

14-4e. Determining the Lifetime Value of a Customer

14-4f. Is It Always Worthwhile to Keep a Customer?

14-5. Customer Retention Programs

14-5a. Frequency Marketing

14-5b. Relationship Marketing

14-5c. Aftermarketing

14-5d. Service Guarantees

14-6. Defection Management: Developing a Zero Defection Culture

14-6a. Zero Defects versus Zero Defections

14-6b. The Importance of Defection Management

14-6c. Defector Types

14-6d. The Defection Management Process

Summary

Key Terms

Review Questions

Chapter 15. Pulling the Pieces Together: Creating a World-Class Service Culture

15-1. Introduction

15-2. Obstacles to World-Class Service: Departmentalization and Functionalism

15-2a. Overcoming the Silo Mentality: Understanding Internal Logics

15-2b. Business Philosophies: The Industrial Versus Market-Focused Management Models

15-2c. The Industrial Management Model

15-2d. Consequences of the Industrial Management Model

15-2e. The Market-Focused Management Model

15-3. Developing a Service Culture

15-3a. Assessing the Current Culture of the Service Firm: Observation and Indirect Questioning Techniques

15-3b. Assessing the Current Culture of the Service Firm: Conducting a Service Audit

15-3c. The Service Audit: The Profit and Growth Component

15-3d. The Service Audit: The Customer Satisfaction Component

15-3e. The Service Audit: The External Service Value Component

15-3f. The Service Audit: The Employee Productivity Component

15-3g. The Service Audit: The Employee Loyalty Component

15-3h. The Service Audit: The Employee Satisfaction Component

15-3i. The Service Audit: The Internal Service Quality Component

15-3j. The Service Audit: The Firm’s Leadership Component

15-3k. The Service Audit: The Measurement Relationship Component

15-4. Strategies that Facilitate Cultural Change

15-4a. Changing Culture through Structure

15-4b. Changing Culture through Systems

15-4c. Changing Culture through People

15-4d. Changing Culture Directly