Contents Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x
PART I
An Overview of Services Marketing
CHAPTER 1
An Introduction to Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Introduction
3
What Is a Service?
4
Framing the Service Experience: The Servuction Model Why Study Services? Summary
8
13
20
CASE 1: The Twins’ First Service Encounter
23
CHAPTER 2
The Service Sector: Supersectors and Ethical Considerations . . . . . . . . . . . . . . . . . . . . 30 Introduction
31
What Is the Service Economy?
32
Ethical Considerations for Services Marketers What Are Ethics?
42
42
The Opportunity for Ethical Misconduct in Services Marketing Issues That Create Ethical Conflict The Effects of Ethical Misconduct Controlling Ethical Decision Making Summary
43
46 48 49
50
CASE 2: The Conundrum: Sears Auto Centers
53
CHAPTER 3
Fundamental Differences Between Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Introduction
56
Intangibility: The Mother of All Unique Differences
57
Inseparability: The Interconnection of Service Participants Heterogeneity: The Variability of Service Delivery Perishability: Balancing Supply and Demand The Structure of This Text Summary
63
68
71
77
79
CASE 3: Online Air Travel: Expedia, Orbitz, and Travelocity Lead the Pack
82
xii Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents
xiii
CHAPTER 4
Services Consumer Behavior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Introduction
85
The Consumer Decision Process: An Overview
87
Special Considerations Pertaining to Services Summary
93
102
CASE 4: United Attempts to Crack the Non-business Market
106
The Tactical Services Marketing Mix
PART II CHAPTER 5
The Service Delivery Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Introduction
112
Stages of Operational Competitiveness
112
Marketing and Operations: Balance Is Critical
116
In a Perfect World, Service Firms Would Be Efficient Applying Efficiency Models to Service Firms The Art of Blueprinting
118
120
126
Blueprinting and New-Product Development: The Roles of Complexity and Divergence Summary
134
136
CASE 5: Build-A-Bear Workshops: Calculating the Service Cost per Bear
139
CHAPTER 6
The Pricing of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Introduction
143
What Does It Mean to Provide Value?
144
Special Considerations of Service Pricing Emerging Service Pricing Strategies
160
Some Final Thoughts on Pricing Services Summary
146 163
163
CASE 6: MDVIP: Become a Priority, Not Just a Patient
166
CHAPTER 7
Developing the Service Communication Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Introduction
169
Managing the Service Communication Process
171
Special Challenges Associated with the Service Communications Strategy Specific Guidelines for Developing Service Communications
Developing Communication Strategies for Professional Service Providers Summary
180
182 189
193
CASE 7: Developing a Communication Strategy: Ultimate Escapes
196
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
xiv
Contents
CHAPTER 8
Managing the Firm’s Physical Evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Introduction
199
The Strategic Role of Physical Evidence The SOR Model
200
204
The Development of Servicescapes
206
Managing the Senses When Creating Servicescapes Summary
213
221
CASE 8: Developing an Orthodontic Servicescape: Dr. Crane’s Dilemma
224
CHAPTER 9
People as Strategy: Managing Service Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 Introduction
229
The Importance of Service Personnel
231
The Natural Stresses & Strains on Contact Service Personnel Unleashing Service with the Right Climate The Role of Management
235
249
Information Technology and the Service Provider Summary
233
249
252 255
CASE 9: Recruitment Cost Savings in the Gaming Industry CHAPTER 10
People as Strategy: Managing Service Consumers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258 Introduction
258
Expert and Novice Consumers as Part of the Production Process Consumer Performance and Operational Efficiency Consumer Performance and Information Technology Consumer Satisfaction and Consumer Performance The Theatrical Analogy
260
260 261 264
265
Managing Consumer Performance Scripts Managing Consumer Service Perceptions
266 271
Consumer Inseparability and the Role of Marketing and Operations Summary
275
278
CASE 10: You Decide How Much Meals Are Worth, Restaurants Tell Customers
282
PART III Assessing and Implementing Successful Service Strategies CHAPTER 11
Defining and Measuring Customer Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 Introduction
288
The Importance of Customer Satisfaction Measuring Customer Satisfaction
288
293
Understanding Customer Satisfaction Ratings
295
Customer Satisfaction: How Good Is Good Enough?
301
Does Customer Satisfaction Translate into Customer Retention?
303
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents
Customer Satisfaction: A Closer Look Summary
xv
305
312 314
CASE 11: The Crestwood Inn CHAPTER 12
Defining and Measuring Service Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316
Introduction
318
What Is Service Quality?
319
Diagnosing Failure Gaps in Service Quality
321
Measuring Service Quality: The SERVQUAL Measurement Scale Service Quality Information Systems Summary
327
334
339 342
CASE 12: Service Quality at the Remington Hotel CHAPTER 13
Complaint and Service Recovery Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345
Introduction
346
The Psychology of Customer Complaining Behavior Developing a Service Recovery Management Program The Art of Service Recovery: Basic Rules of Thumb Summary
348 355 364
366
CASE 13: Part I: Is This Any Way to Run an Airline? CASE 13: Part II: World Airline’s Response
370
373
CHAPTER 14
Customer Loyalty and Retention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375
Introduction
376
What Is Customer Loyalty?
377
What Is Customer Retention?
382
The Benefits of Customer Retention Customer Retention Programs
385
389
Defection Management: Developing a Zero Defection Culture Summary
394
400
CASE 14: The Mandalay Bay Conundrum
403
CHAPTER 15
Pulling the Pieces Together: Creating a World-Class Service Culture . . . . . . . . . . . 406
Introduction
407
Obstacles to World-Class Service: Departmentalization and Functionalism Developing a Service Culture
Strategies that Facilitate Cultural Change Summary
425
430
CASE 15: Assessing Your College’s Culture: Go for a Culture Walk Glossary Index
408
418
432
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.