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• Cover
• Title
• Copyright
• Dedication
• Brief Contents
• Contents
• About the Authors
• About the Contributors of the Case Studies
• Preface
• Acknowledgements
• PART I: UNDERSTANDING SERVICE PRODUCTS, CONSUMERS, AND MARKETS
• 1. Creating Value in the Service Economy
• Why Study Services
• • Services Dominate the Global Economy
• • Most New Jobs are Generated by Services
• • Understanding Services Offers Personal Competitive Advantage
• What Are the Principal Industries of the Service Sector?
• • Contribution to Gross Domestic Product
• Powerful Forces are Transforming the Service Markets
• B2B Services as a Core Engine of Economic Development
• Outsourcing and Offshoring Often Work in Tandem
• What Are Services
• • The Historical View
• Benefits Without Ownership
• • Defining Services
• • Service Products versus Customer Service and After-Sales Service
• Four Broad Categories of Services – A Process Perspective
• • People Processing
• • Possession Processing
• • Mental Stimulus Processing
• • Information Processing
• Services Pose Distinct Marketing Challenges
• The 7Ps of Marketing
• The Traditional Marketing Mix Applied to Services
• • Product Elements
• • Place and Time
• • Price and Other User Outlays
• • Promotion and Education
• The Extended Services Marketing Mix for Managing the Customer Interface
• • Process
• • Physical Environment
• • People
• Marketing Must be Integrated with Other Management Functions
• The Service–Profit Chain
• A Framework for Developing Effective Service Marketing Strategies
• • Understanding Service Products, Consumers and Markets
• • Applying the 4 Ps of Marketing to Services
• • Managing the Customer Interface
• • Developing Customer Relationships
• • Striving for Service Excellence
• 2. Understanding Service Consumers
• 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 Metaphor for Service Delivery: An Integrative Perspective
• • Role and Script Theories
• • Perceived Control Theory
• Post-Encounter Stage
• • Customer Satisfaction
• • Service Quality
• • Customer Loyalty
• 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
• • Important versus Determinant Service Attributes
• • Segmentation Based on Service Levels
• Targeting Service Markets
• • Achieving Competitive Advantage through Focus
• Principles of Positioning Services Using
• Positioning Maps to Plot Competitive Strategy
• • An Example of Applying Positioning Maps to the Hotel Indsutry
• • Mapping Future Scenarios to Identify Potential Competitive Responses
• • Positioning Charts Help Executives Visualize Strategy
• Developing an Effective Positioning Strategy
• PART II: APPLYING THE 4 PS OF MARKETING TO SERVICES
• 4. Developing Service Products and Brands
• Creating Service Products
• • What are the Components of a Service Product?
• The Flower of Service
• • Facilitating Supplementary Services
• • Enhancing Supplementary Services
• • Managerial Implications
• Branding Service Firms, Products and Experiences
• • Branding Strategies for Services
• Tiering Service Products with Branding
• Building Brand Equity
• Delivering Branded Service Experiences
• 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 Being Distributed?
• How Should A Service Be Distributed?
• • Customers Visit the Service Site
• • Service Providers Go to their Customers
• • The Service Transaction is Conducted Remotely
• • Channel Preferences Vary among Customers
• • Channel Integration is Key
• Where Should a Service Facility be Located?
• • Strategic Location Considerations
• • Tactical Location Considerations
• • Locational Constraints
• • Innovative Location Strategies
• When Should Service be Delivered?
• The Role of Intermediaries
• • Benefits and Costs of Alternative Distribution Channels
• Franchising
• The Challenge of Distribution in Large Domestic Markets
• Distributing Services Internationally
• • Factors Favoring Adoption of Transnational Strategies
• • How does the Nature of a Service Affect International Distribution?
• • Barriers to International Trade in Services
• • How to Enter International Markets?
• 6. Service Pricing and 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 can we Measure the Effectiveness of a Firm’s Revenue Management?
• • How does Competitor’s Pricing Affect Revenue Management?
• • Price Elasticity
• • Designing Rate Fences
• Fairness and Ethical Concerns in Service Pricing
• • Service Pricing is Complex
• • Piling on the Fees
• • Designing Fairness into Revenue Management
• Putting Service Pricing Into Practice
• • How Much to Charge?
• • What Should be the Specified Basis for Pricing?
• • Who Should Collect Payment and 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. Service Marketing Communications
• Integrated Service Marketing Communications
• Defining the Target Audience
• Specifying Service Communication Objectives
• • Strategic Service Communications Objectives
• Tactical Service Communications Objectives
• • Promote Tangible Cues to Communicate Quality
• Crafting Effective Service Communication Messages
• • Problems of Intangibility
• • Overcoming the Problems of Intangibility
• The Services Marketing Communication Mix
• • Communications Originate from Different Sources
• • Messages Transmitted through Traditional Marketing Sources
• • Messages Transmitted Online
• • Messages Transmitted through Service Delivery Channels
• • Messages Originating from Outside the Organization
• Timing Decisions of Services Marketing Communication
• Budget Decisions and Program Evaluation
• Ethical and Consumer Privacy Issues in Communications
• The Role of Corporate Design
• Integrated Marketing Communications
• PART III: MANAGING THE CUSTOMER INTERFACE
• 8. Designing Service Processes
• What is a Service Process?
• Designing and Documenting Service Processes
• Developing a Service Blueprint
• • Blueprinting the Restaurant Experience: a Three-Act Performance
• • Identifying Fail Points
• • Fail-Proofing to Design Fail Points out of Service Processes
• • Setting Service Standards and Targets
• • Consumer Perceptions and Emotions in Service Process Design
• Service Process Redesign
• • Service Process Redesign Should Improve Both Quality and Productivity
• Customer Participation in Service Processes
• • Levels of Customer Participation
• • Customer as Co-creators
• • Reducing Service Failures Caused by Customers
• Self-Service Technologies
• • Customer Benefits and Adoption of Self-Service Technology
• • Customer Disadvantages and Barriers of Adoption of Self-Service Technology
• • Assessing and Improving SSTs
• • Managing Customer’s Reluctance to Change
• 9. Balancing Demand and Capacity
• Fluctuations in Demand Threaten Profitability
• • From Excess Demand to Excess Capacity
• • Building Blocks of Managing Capacity and Demand
• Defining Productive Service Capacity
• Managing Capacity
• • Stretching Capacity Levels
• • Adjusting Capacity to Match Demand
• Understanding Patterns of Demand
• Managing Demand
• • Marketing Mix Elements Can be used to Shape Demand Patterns
• Inventory Demand Through Waiting Lines and Queuing Systems
• • Waiting is a Universal Phenomenon
• • 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
• Create Alternative Use for Otherwise Wasted Capacity
• 10. Crafting the Service Environment
• Service Environments – An Important Element of The Service Marketing Mix
• What is the Purpose of Service Environments?
• • Shape Customer’s Service Experience and Behaviors
• • Signal Quality and Position, Differentiate and Strengthen the Brand
• • Core Component of The 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 Framework
• Dimensions of the Service Environment
• • The Effect of Ambient Condition
• • Spatial Layout 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 Perspective
• 11. Managing People for Service Advantage
• Service Employees are Extremely Important
• • Service Personnel as a Source of Customer Loyalty and Competitive Advantage
• • The Frontline in Low-Contact Services
• Frontline Work is Difficult and Stressful
• • Service Jobs are Boundary Spanning Positions
• • Sources of Role Conflict
• • Emotional Labor
• • Service Sweatshops?
• Cycles of Failure, Mediocrity 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
• • Internal Communications to Shape the Service Culture and Behaviors
• • Empower the Frontline
• • When are High Levels of Empowerment Appropriate?
• • Build High-Performance Service-Delivery Teams
• • Integrate Teams Across Departments and Functional Areas
• • Motivate and Energize People
• • The Role of Labor Unions
• Service Culture, Climate and Leadership
• • Building a Service-Oriented Culture
• • A Climate for Service
• • Qualities of Effective Leaders in Service Organizations
• • Leadership Styles, Focus on the Basics, and Role Modelling
• • Focusing the Entire Organization on the Frontline
• 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
• • Worksheet for Calculating Customer Lifetime Value
• • The Gap between Actual and Potential Customer Value
• • Why Are Customers Loyal?
• The Wheel of Loyalty
• Building A Foundation For Loyalty
• • Target the Right Customers
• • Search for Value, Not Just Volume
• • Manage the Customer Base through Effective Tiering of Service
• • Customer Satisfaction and Service Quality Are Prerequisites for Loyalty
• Strategies for Developing Loyalty Bonds with Customers
• • Deepen the Relationship
• • Encourage Loyalty through Financial and Non-financial Rewards
• • Build 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
• Enablers of Customer Loyalty Strategies
• • Customer Loyalty in a Transactional Marketing Context
• • Relationship Marketing
• • Creating “Membership-Type” Relationships as Enablers for Loyalty Strategies
• CRM: Customer Relationship Management
• • Common Objectives of CRM Systems
• • What Does a Comprehensive CRM Strategy Include?
• • Common Failures in CRM Implementation
• • How to Get CRM 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 Customer 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
• • Consequences of Dysfunctional Customer Behavior
• • Dealing with Consumer Fraud
• PART V: STRIVING FOR SERVICE EXCELLENCE
• 14. Improving Service Quality and Productivity
• Integrating Service Quality and Productivity Strategies
• • Service Quality, Productivity, and Profitability
• What is Service Quality?
• Identifying and Correcting Service Quality Problems
• • The Gaps Model in Service Design and Delivery
• • Key Ways to Close the Gaps in Service Quality
• Measuring 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, and Dissemination of Customer Feedback
• Hard Measures of Service Quality
• Tools to Analyze and Address Service Quality Problems
• • Root Cause Analysis: The Fishbone Diagram
• • Pareto Analysis
• • 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
• Improving Service Productivity
• • Generic Productivity Improvement Strategies
• • Customer-Driven Approaches to Improve Productivity
• • How Productivity Improvements Impact Quality and Value
• Integration and Systemic Approaches to Improving Service Quality and Productivity
• • Total Quality Management
• • ISO 9000 Certification
• • Six Sigma
• • Malcolm-Baldrige and EFQM Approaches
• • Which Approach Should a Firm Adopt?
• 15. Building a World Class Service Organization
• Creating a World-Class Service Organization
• • From Losers to Leaders: Four Levels of Service Performance
• • Moving to a Higher Level of Performance
• Customer Satisfaction and Corporate Performance
• PART VI: CASE STUDIES
• Case 1 Sullivan Ford Auto World
• Case 2 Dr. Beckett’s Dental Office
• Case 3 Bouleau & Huntley: Crossselling Professional Services
• Case 4 Uber: Competing as Market Leader in the US versus Being a Distant Second in China
• Case 5 Banyan Tree: Designing and Delivering a Branded Service Experience
• Case 6 Kiwi Experience
• Case 7 The Accra Beach Hotel: Block Booking of Capacity during a Peak Period
• Case 8 Aussie Pooch Mobile
• Case 9 Shouldice Hospital Limited (Abridged)
• Case 10 Delwarca Software Remote Support Unit
• Case 11 Red Lobster
• Case 12 Raleigh & Rosse: Measure to Motivate Exceptional Service
• Case 13 Singapore Airlines: Managing Human Resources for Cost-effective Service Excellence
• Case 14 Dr. Mahalee Goes to London: Global Client Management
• Case 15 Royal Dining Membership Program Dilemma
• Case 16 Starbucks: Delivering Customer Service
• Case 17 LUX*: Staging a Service Revolution in a Resort Chain
• Case 18 KidZania: Shaping a Strategic Service Vision for the Future
• Case 19-32 Additional Cases Available for Educators
• Glossary
• Name Index
• Subject Index