A School of Marketing
This page is especially developed for students of services marketing and it consists of all the theoretical material about services marketing course. Services Marketing is a vast and most important field for any sort of businesses and economy of any country.
Q: What are the reasons for Servcorp’s success in international markets? To what extent has Servcorp been able (a) to standardize, and (b) to customize its service offering worldwide? In international markets Servcorp has obviously developed both a mix of standardization (office layouts, facilities available, the way each client is treated) and customization (local staff …
A useful typology of service firms in international markets is provided in Figure. It distinguishes and gives examples of different types of service firms operating internationally with reference to two main qualifying dimensions: their respective degree of intangibility, and the respective degree of face-to-face client contact required or necessitated. Each of the four cells illustrated …
As with domestic market expansion, several options are available. These include: Embedding services in some physical storage medium as a form of support which may be self-delivered (in the form of computer software, videos or international calls) Satellite and telecommunications for example) or delivered in person by an on-site representative of the service organization. Using …
Understanding the nature of international services first Services now account for approximately 30% of total trade world-wide. There are a few factors that drive an organization to serve in international markets. While the mix and proportion of export services varies from one country to another. International Service Categories The main categories include; Professional services (including, …
Emotional Labor Emotional labor concerns the management of emotions by service personnel so that customers will only see desirable expressions. An example would be a front desk manager of a hotel retaining a calm and professional appearance even when being abused by an irate guest. Role Conflict Role conflict is where service employees must manage …
Defining Services Management Trinity Whilst the power of conceptualizing the management functions as a Service Management Trinity should be evident, achieving this integration in practice may still be problematic. Unlike manufacturing in which each management function can be considered as interlocking yet separate, a service organization can be thought of as a ‘factory in the …
Use of three dimensions of Tierney Model The Price, Arnould and Tierney model for classifying and managing service encounters is a useful example. It uses three dimensions to describe the encounter: Encounter duration Affective content Spatial proximity For an organization that is considering how to improve its customer service function, whether to go ‘hi-tech’ or …
Case Synopsis This case (Medium is the message) illustrates the face-to-face nature of services along with its managerial implications. Fly Away Travel is known for providing stimulating holidays, and also for their personal attention and care. It is this high level of customer service that differentiates it from other travel providers. To combat geography and …
Defining Customer Service Customer service is now a function that is built into the very fabric of the total service delivery and designing system. Customer service involves task-oriented activities, other than proactive selling, that involve interactions with customers in person, by telecommunications or by mail. Two main criteria of designing and performing a service function. …
What might have been some of the implications for Scuba Jamboree of the fact that 70% of the local diving industry was controlled by foreign operators, and the challenge for Thai dive specialists to become more competitive? A: In the dive business, accreditation by a professional organization (like PADI) is essential. This was lacking in …
Distinguish between the internal and external role of public relations in promoting services. The internal or personnel-focused role of public relations includes culture and morale building trust and confidence building recognition and reward loyalty building serving to enhance productivity creating a climate or ambience conducive to optimum service delivery, customer comfort and satisfaction The external …
Role of Marketing Communication Mix in Promoting Services Service marketers usually have access to numerous forms of marketing communication. The challenge is to select the most appropriate (mix) and weave them together into a coherent, integrated program that is both effective and cost-efficient. Elements of Marketing Communication Mix The main elements of the mix that …
5 Factors which differentiate Goods from Services Most of the factors which differentiate goods from services create distinctive marketing implications for service communication strategies. For example: The intangible nature of services means that Advertising is often necessary to communicate standing and reputation and, thereby, to build trust and confidence; to put a personal ‘face’ and …
Marketing Case 1: City Sightseeing Tours – A Communication Challenge Researchers are expected to discern that there is indeed a central role to be played by MC in this marketing case situation – for the purposes of. (a) making people aware of the new service, and (b) differentiating the service from the competing alternative. This …
Definitions of managing capacity and managing demand Managing capacity refers to the way capacity is used and tailored to match variations in demand. Means for operationalizing each include: Creating Flexible Capacity Provide for additional capacity Rent facilities Manage Capacity Create flexibility in what is offered Review the hours of business Cross-train employees Managing demand, however, …
Q: In what ways can pricing capture and communicate value in services? A: Developing Pricing can capture and communicate value in a variety of ways by, for example: Making a desired service appear affordable Suggesting that what is offered is a special and limited offering with greater value than what is normally offered (Package deals …
Asset Revenue Generating Efficiency (ARGE) is an index or measure of the extent to which an organizations asset are achieving their full revenue-earning potential and yield. Ways to Evaluate Asset Revenue Generating Efficiency (ARGE) Two ways to evaluate this: By multiplying the capacity utilization rate by the yield percentage, that is the total actual revenue …
Monetary versus Non-monetary Pricing Objectives It is important that researchers understand the role that pricing objectives play in serving the attainment of business goals and objectives, as well as marketing goals and objectives. Reasons of Formulating A Pricing Strategy As illustrated in Figure, a pricing strategy is formulated with reference to several considerations: Costs to …
In addition to the costs incurred by a service organization, customers may also incur up to five types of costs in purchasing and using a service: Financial costs Time costs Physical costs Psychic costs (mental effort, negative feelings) Sensory costs (unpleasant sights, noises, smells and tastes; physical discomfort) Significance of types of costs in service …
What marketing and management challenges are raised using intermediaries in a service setting and delivery? Challenges arise from multi-site service delivery involving representatives who may not be employed directly by the originating service provider. When the provision of services is delegated or sub-contracted to external agents or representatives, maintaining control over what is provided and …
Above mentioned figure summarizes key decisions faced by management in planning and configuring the service delivery process. Essentially these may be summarized and discussed under six main headings: (i) What is involved, step by step, in delivering the core and supplementary services. Note: Shostack’s article on flowcharting or blueprinting illustrates well how this task may …
Service Delivery Place, Servicescape & Physical Evidence – Examples A service organization’s place of service delivery and the physical evidence that forms a part of this, i.e. The servicescape refers to the setting, surroundings and facilities, inclusive of furniture and furnishings, décor and lighting. All that collectively define and characterize the place of service provision. …
IT (Information Technology) is increasingly being used to facilitate service provision and in so doing to eliminate or diminish the role of customer service personnel in service encounter. The marketplace versus marketspace distinction drawn by Rayport and Sviokla provides a useful frame of reference to organize and facilitate this discussion. The respective roles played by …
Q: Explain the role and purposes of a business analysis in the process of new service product development. A: The essential role of a business analysis is to test the feasibility and viability of any proposed new service product development. Its purposes include to estimate market potential, size and likely demand to estimate the costs …
A service is essentially the act of providing for a customer some function or task that they either can’t or don’t wish to perform themselves. Understanding the concepts of Service Product Strategy Strategic Service Concept An organization’s strategic service concept defines the essential value proposition to potential customers. A fast-food restaurant or hairdressing service, for …
By drawing upon work by Levitt, Shostack, and Gronroos its identified that a service product strategy is constituted of core and supplementary elements. Furthermore, the latter classification may be sub-divided into two distinct categories: facilitating and supporting services. Core/supplementary Service Categories Examples of each are provided and discussed below in some detail under the collective …
How does Kiwi Experience attract these customers and what else could it do to increase sales? Attracting customers is so important for Kiwi Experience as they cannot rely on customers coming back. Retention of customer is very unlikely. As the case states “it is very unusual for passengers to travel on Kiwi Experience for a …
Q: How can the decision about whom to target provide a service organization with a competitive advantage? A: Competitive advantage can be grounded in and gained because of the customers that a service organization chooses to target the market because of the positioning opportunities. to define, profile, attract and appeal to customers either not served …
What is Positioning Positioning is the process of establishing and maintaining a distinctive place in a market for an organization and/or its service product offerings. This process is facilitated by asking the following questions: What is our service concept? How does it differ from competitors’ offerings? How well does it meet the needs of customers …
Target Market Target market is defined and profiled with reference to a mix of demographic, geographic, socio-economic, psychographic, and behavioral data in service organizations. Although the emphasis given to any one of these data sets may vary with circumstances, it is important to know how the nature of customers is shaped and influenced by all …
Q: Explain why it is more profitable to retain existing customer relationships than to continually try to attract new ones. Research has shown that one loyal customer tends to become more profitable over time. Apart from not having to outlay the initial costs of attracting new customers, there are four factors that create incremental profits …
Fueling the Customer Relationship Discuss the grounds for, and appropriateness of, a customer relationship marketing and management strategy in the context of Eric’s business. Eric’s case is an interesting one and is probably indicative of many in the same position as he. His business and marketplace have some of the characteristics that make it suitable …
Recent research found in a study of hairdressers that customer loyalty was predominantly to the individual hairdresser rather than the firm. The key determinants of a successful customer relationship are: Trust in Service Provider The essential aspect for any organization is customer’s trust on its brand, it plays a vital role in building customer relations …
The second strategy used for customer retention is to build switching barriers (or costs) into the service product. There are two types of switching barriers (costs): Economic Barriers – representing financial disincentives to defecting such as termination penalties and service contracts and Psychological Barriers – where valued personal relationships are broken with a change of …
Relationship marketing refers to using marketing tools to attract potential customers, establish communication, and create and develop relationships. Relationship management moves the customers up the loyalty ladder by maintaining and enhancing relationships and retaining customers. Relationship Marketing Defined ‘…the union of customer service, quality and marketing.’ (Bateson) ‘…the dual focus of getting and …
Q1: What factors contributed to Maree’s sense of annoyance and frustration in ‘The customer’s right’ case study? It should be noted that Maree was frustrated initially from a service failure (or at least a perceived service failure), however the clerk’s attempt at recovery only made the situation worse. The factors that contributed to her annoyance …
From a procedural perspective we offer ten guidelines for effective complaint resolution: Act fast to rectify the problem and restore the customer’s sense of satisfaction Admit mistakes but don’t be defensive Show that you understand the problem from the customer’s point of view Don’t argue with customers Acknowledge the customer’s feelings Give customers the benefit …
Major courses of action open to an unsatisfied customer The options for an unsatisfied customer are: seek redress directly from firm take legal action complain to business, private or governmental agencies stop buying product or brand or boycott service provider warn friends Essentially these are: Do nothing Complain in some form to the service provider …
Article Overview In this article we focus on the issue of how to deal with customer complaints effectively and productively, to the end of recovering successfully from situations in which a customer has expressed dissatisfaction with their service encounter or some part of it. In this way customers, their loyalty and positive word-of-mouth, are retained. …
Subliminal advertising is also called as subliminal priming. It’s a short and quick message is sent to people in form of text, image, video or as audio. This message can’t be noticed by conscious mind but only by the unconscious mind. This subliminal advertising only works in certain situations when the brand that is advertised …
What is Satisfaction “Satisfaction is an affective or emotional state following an evaluation of the consumption experience”. Dictionary definitions describe satisfaction as ‘fulfilment’ or to ‘be content or pleased’. Achieving mere satisfaction is not enough, the aim is to delight a customer if loyalty is to be achieved Satisfaction and loyalty Figure 4.3 depicts the …
How would you characterize customer (Lee’s) expectations and perceptions, and what factors have contributed to the formation of these? Lee expected to save time from a convenient and cheaper bill paying system being offered by her bank. She is likely to have formed those expectations from at least two sources. i) her previous experience with …
‘Service quality’ means different things to different people. Parasuraman et al define it as: “… consumers’ judgement (across multiple service encounters) about the firms (or brand) overall excellence or superiority… it is a form of attitude, related but not equivalent to satisfaction” Dimensions of satisfaction and service quality tangibles reliability responsiveness assurance empathy Comparing Service …
Researchers have found there is a relationship between the degree of satisfaction achieved, and the level of customer retention or loyalty. Merely achieving customer satisfaction, however, is not enough. Benefits of satisfying customers There are many other benefits of satisfying or delighting customers. Among them are: Encourages repeat patronage and loyalty Enhances/promotes positive word of …
A model of the consumer decision making process for services as opposed to goods is provided (Fig. 3) and discussed in the article. Consumer decision making for services high in experience and credence properties (as distinct from search properties common to most fast-moving packaged consumer goods) is generally characterized by a higher sense of perceived …
Role and Script Theories serve to inform and guide behavior in service contexts. Role Theory It provides a framework for understanding and defining the behavior that customers expect and feel comfortable with in different service contexts. This, in turn, bears directly on the recruitment, training and development of service personnel, especially those in high customer-contact …
This mini case focuses on the cultural differences in decision making in a service setting. What might be important cultural considerations for Con to consider in thinking about this opportunity? Con should compare the cultural characteristics of the Greeks (his primary market now) and the Vietnamese (his potential market) to see if there are any …
Control Theory Because of the sense of apprehension or risk that many service customers feel, it is important that they be given a sense of control over the service experience or encounter to counterbalance this. In this way they will feel confident about what they are experiencing, and the likelihood of post-purchase dissonance will be …
Distinguish between back-stage and front-stage service operations Types of Service operations The distinction between frontstage and back-stage service operations in a service organization is best illustrated with reference to what is visible and invisible to the customer. This distinction may or may not be clear-cut. For instance, a restaurant may be designed in such a …
Q: What are the implications of having a customer involved in the service process and ‘factory’? A: Having a customer involved in the service process means that the interpersonal and communication skills of customer contact personnel must be well developed. Furthermore, their personal appearance, manner and demeanor must be such that the customer is in …
Mini case solution: The Antiquarian Bookshop This mini case (antiquarian bookshop) is intended to provide a means of exploring in an applied way many of the key concepts explained and discussed in this chapter. Q1. What is being processed in the bookshop, and what are important managerial implications of understanding this? Students are expected to …
Define Service as A System with relevant examples Any service business can be thought of as a system comprising service operations service delivery service marketing Service operations Includes what goes on behind the scenes as well as in the presence of a customer in order to create and process the service. For example: ordering and …
Service encounter Managing the service encounter has implications for the place of service provision – i.e. where the encounter will take place, and how the service is to be provided. The nature of contact between a customer and service organization can vary greatly. It can be characterized as one involving a high degree of involvement …
Service provision is effectively a process by which a service is made available to someone or something, most commonly in real time with the customer present in the process. This suggests that we should evaluate service processes to determine if different types of processes result in different levels of customer involvement. Distinguish between people, possession, …
Following points that can be made for services economy growth include: Increased leisure time and affluence serve to create increased demand for domestic services. g. recreation and entertainment, tourism, and hospitality services. Services are a significant means of adding value to a product marketing strategy, gaining, and maintaining competitive advantages, and securing key account relationships. …
Q: Are the concepts in Chapter 1 relevant to the marketing of a church, religious institution or non-profit organization such as World Vision? Explain. A: The short answer to this question is a definite “yes”. Churches and other religious institutions, many of which are experiencing declining attendances and financial support yet are correspondingly faced …
Broadly speaking, four generic differences distinguish services from goods. These are Intangibility, Inseparability (simultaneity of production and consumption), Heterogeneity (Variability), and Perishability. Marketing and managerial services vs goods differences Arising from these differences are several important marketing and management implications which include: Greater involvement of customers in the production process People as part of the …
This mini case is included to help students explore the key concepts from services marketing. What distinctive aspects of services, and what other services marketing concepts explained are reflected in this case, and what are likely to be important considerations in marketing and managing this service successfully. On the service continuum (Figure 1.5) students should …
Numerous service opportunities have been presented because of these changes in government regulations, technology, franchising, and in international markets. They include, for example: Creating service opportunities in effect to environmental changes Opportunities from Fewer Regulations and Professional Restrictions Easier entry to specific product markets More freedom to compete on price Removal of geographic restrictions Incentives …
What are services? A service is an intangible offer that one party makes to another in exchange for money or any other valuable thing. But the party who provide service does not get the ownership of anything. Services marketers and managers must appreciate that customers are often buying an experience that needs to be staged, …
Service managers must also understand that their consumer behavior also is likely to be influenced by the degree of responsibility and autonomy invested in them, and by their own sense of control over the service encounter and delivery process. Below Figure provides a model of the consumer decision-making, purchase, consumption and evaluation process. You should …
Synopsis of Austrade Case Study This case traces the events of Australia’s Trade Commission post (Austrade) in Bangkok, Thailand from a post that had the worst customer service record in the SE Asian region to becoming among the top five posts in the world, all in the space of a few years. It touches on …
Synopsis of Qantas Case This Qantas case reports a series of dissatisfactory service encounters for a business passenger returning on a Qantas 16-hour flight from Los Angeles to Sydney. The case centers around Qantas service recovery efforts (or lack of) and the relationship between customer satisfaction/dissatisfaction (CS/D) and service quality. Further, it demonstrates how repeat …
Synopsis of Perth Zoo Case Study This case is a good example of a not-for-profit service organisation, and the opportunities and problems such an organisation face. It deals with issue surrounding selection of target markets, relationship marketing, getting repeat patronage, generic competition and issues that are like many private sector firms – goods or services. …
Mention Bank Asia Case Study Solution Steps Mention Bank Asia has Taken to Develop a Customer Orientation Remodeling and renovation of branches (“friendly yet professional”) Teller stations redesigned to provide full/express service Touch-screen information terminals installed near entrance Introduction of advanced model ATMs with color screens Increased number of ATMs in branches Access to regional …
This case ‘an incident in the babies’ room’ covers many of the topics in Services Marketing. Twinkle Toes is a typical long-day care center that has been recently taken over by Maria Sanchez. To reduce costs, Maria hires inexperienced staff, but a complaining customer draws her attention to the ramifications of her decision and other …
Online stockbroking is a commonly used phenomenon in today’s era. In a technology market such as this, marketers should be encouraged to think laterally and be very creative. The ‘obvious’ will emerge and be recorded, but researchers should be encouraged to go beyond this. The market structure, in terms of key players, their relative size …
Q1. How should TLM position itself? TLM’s core product is hospitality but the international marketing of Thailand as a long stay tourist destination. It differentiates Thailand from its competitors is the responsibility of the government through the Tourism Authority of Thailand (TAT). TLM’s work should complement the work of TAT, by marketing Thailand specifically to …
Distinguish between the core, supplementary and facilitating services provided by FedEx. FedEx Core Services Air & Road Freight: – International Priority (IP) International Priority Freight Service (IPFS) (Cargo, packages, letters & documents) FedEx Support Services FedEx Packaging EC-Inventory EC-Manufacturing EC-Return Management COSMOS EC-Warehouse Management FedEx Ship Manager FedEx Ship Assistant Customs Clearance Customer Care Program …
The Melbourne Cup is Australia’s premier horse race of the nation (handicap over 3200 meters with over AUD$2 million prize money) and it has its own public holiday in metropolitan Melbourne. The TAB (used to stand for Totalizer Agency Board when government owned and run, but now a public company, Tabcorp Holdings) is the only, …
Answers to the Case Questions What features do you think are important for BDW’s Web site? Blake Dawson Waldron deals primarily with high net worth consumers. BDW’s clients expect to see plush surrounds. BDW’s physical offices tend to reflect that wealth and success. Such visual cues are also expected on the Internet. A “top tier” …
Questions for Discussion What does the experience described in this case suggest about the concept of value and how this is assessed by different people? (Note: It might be helpful to consider this question with reference to the work of Valarie Zeithaml.) Discuss the appropriateness of the club’s use of bundling and other potential sports …
In this article we will see the comparison between quality of services provided by regular cheap salon and high-end expensive salon. Beauty salons have proven to be a recession-proof industry across Globe. The growth of this industry is increasing in Globe due to raised awareness. This awareness in both men and women of Globe is …
Emirates is an airline based in Dubai, UAE. The airline is a subsidiary of the Emirates group, which is wholly owned by the government of Dubai’s investment corporation of UAE. The largest airline country is American Airlines Group. Seating on each airline is categorized into different categories. These categories are different for each company however …
Ritz-Carlton hotel Services comparison This hotel offers better services in comparison to its competitors to obtain the right people to establish the best services. Whole hotel area is covered with trees to avoid noise and dust pollution of outside world. The Ritz-Carlton hotel company is the first and only hotel organization to win the desirable …
KOOVS.COM SWOT Analysis; Claimed to be the largest online wholesale subsidiary store in India and Pakistan. It was established in 2009 and it’s a public online store which provides branded fashion cloths and other accessories online. Strengths Higher (84.81%) rate of customer engagement via social media platforms Excellent site ranking on Alexa Strong brand recognition …