Services Marketing : People, Technology, Strategy

by Lovelock, Christopher H; Wirtz, Jochen

• ISBN13: 9780131875524
• ISBN10: 0131875523
• Edition: 6th
• Format: Hardcover
• Copyright: 2011-01-01
• Publisher: Prentice Hall

Summary

Significantly revised, restructured, and updated to reflect the challenges facing service managers in the 21st century, this book combines conceptual rigor with real world examples and practical applications. Exploring both concepts and techniques of marketing for an exceptionally broad range of service categories and industries, the Sixth Edition reinforces practical management applications through numerous boxed examples, eight up-to-date readings from leading thinkers in the field, and 15 recent cases. For professionals with a career in marketing, service-oriented industries, corporate communication, advertising, and/or public relations.

Table of Contents

About the Contributors of the Readings and Cases	vii
Preface	xv
PART I: UNDERSTANDING SERVICE MARKETS, PRODUCTS, AND CUSTOMERS	2	(64)
New Perspectives on Marketing in the Service Economy	4	(28)
Why Study Services?	6	(6)
What Are Services?	12	(4)
Services Pose Distinctive Marketing Challenges	16	(6)
Services Require and Expanded Marketing Mix	22	(10)
Customer Behavior in Service Encounters	32	(34)
Differences Among Services Affect Customer Behavior	33	(5)
Customer Decision Making: The Three-Stage Model of Service Consumption	38	(2)
The Prepurchase Stage	40	(9)
The Service Encounter Stage	49	(9)
The Post-encounter Stage	58	(6)
Reading
``In a Dizzying World, One Way to Keep Up: Renting Possessions''	64	(2)
Nick Wingfield
PART II: BUILDING THE SERVICE MODEL	66	(164)
Developing Service Concepts: Core and Supplementary Elements	68	(30)
Planning and Creating Services	69	(8)
The Flower of Service	77	(9)
Planning and Branding Service Products	86	(3)
Development of New Services	89	(9)
Distributing Services Through Physical and Electronic Channels	98	(26)
Distribution in a Services Context	99	(1)
Determining the Type of Contact: Options for Service Delivery	100	(3)
Place and Time Decisions	103	(4)
Delivering Services in Cyberspace	107	(3)
The Role of Intermediaries	110	(2)
The Challenge of Distribution in Large Domestic Markets	112	(2)
Distributing Services Internationally	114	(10)
Exploring Business Models: Pricing and Revenue Management	124	(30)
Effective Pricing Is Central to Financial Success	125	(2)
Pricing Strategy Stands on Three Legs	127	(9)
Revenue Management: What It Is and How It Works	136	(6)
Ethical Concerns in Service Pricing	142	(4)
Putting Service Pricing into Practice	146	(8)
Educating Customers and Promoting the Value Proposition	154	(30)
The Role of Marketing Communication	155	(1)
Communicating Services Presents both Challenges and Opportunities	156	(7)
Setting Communication Objectives	163	(1)
The Marketing Communications Mix	164	(11)
The Role of Corporate Design	175	(1)
Marketing Communications and the Internet	176	(8)
Positioning Services in Competitive Markets	184	(46)
Focus Underlies the Search for Competitive Advantage	185	(2)
Market Segmentation Forms the Basis for Focused Strategies	187	(1)
Service Attributes and Levels	188	(3)
Positioning Distinguishes a Brand from Its Competitors	191	(5)
Internal, Market, and Competitor Analyses	196	(3)
Using Positioning Maps to Plot Competitive Strategy	199	(5)
Changing Competitive Positioning	204	(3)
Readings
``The Health Travellers''	207	(4)
Prosenjit Datta
Gina S. Krishnan
``The Strategic Levers of Yield Management''	211	(9)
Sheryl E. Kimes
Richard B. Chase
``Fees! Fees! Fees!''	220	(5)
Emily Thornton
``Best Practice: Defensive Marketing: How a Strong Incumbent Can Protect Its Position''	225	(5)
John H. Roberts
PART III: MANAGING THE CUSTOMER INTERFACE	230	(126)
Designing and Managing Service Processes	232	(28)
Blueprinting Services to Create Valued Experiences and Productive Operations	233	(9)
Service Process Redesign	242	(3)
The Customer as Co-producer	245	(5)
Dysfunctional Customer Behavior Disrupts Service Processes	250	(10)
Balancing Demand and Productive Capacity	260	(28)
Fluctuations in Demand Threaten Service Productivity	261	(1)
Many Service Organizations Are Capacity-Constrained	262	(4)
Patterns and Determinants of Demand	266	(2)
Demand Levels Can Be Managed	268	(5)
Inventory Demand Through Waiting Lines and Reservations	273	(6)
Minimize Perceptions of Waiting Time	279	(2)
Create an Effective Reservations System	281	(7)
Crafting the Service Environment	288	(22)
What Is the Purpose of Service Environments?	289	(2)
Understanding Consumer Responses to Service Environments	291	(4)
Dimensions of the Service Environment	295	(9)
Putting It All Together	304	(6)
Managing People for Service Advantage	310	(46)
Service Employees Are Crucially Important	311	(2)
Front-Line Work Is Difficult and Stressful	313	(3)
Cycles of Failure, Mediocrity, and Success	316	(5)
Human Resources Management---How to Get It Right	321	(14)
Service Leadership and Culture	335	(7)
Readings
``Kung-Fu Service Development at Singapore Airlines''	342	(4)
Loizos Heracleous
Jochen Wirtz
Robert Johnston
``Getting More from Call Centers: Used Properly, They Can Be Strategic Assets''	346	(6)
Keith A. Gilson
Deepak K. Khandelwal
``How to Lead the Customer Experience''	352	(4)
Stephan H. Haeckel
Lewis P. Carbone
Leonard L. Berry
PART IV: IMPLEMENTING PROFITABLE SERVICE STRATEGIES	356	(270)
Managing Relationships and Building Loyalty	358	(32)
The Search for Customer Loyalty	359	(4)
Understanding the Customer-Firm Relationship	363	(2)
The Wheel of Loyalty	365	(1)
Building a Foundation for Loyalty	366	(7)
Creating Loyalty Bonds	373	(6)
Strategies for Reducing Customer Defections	379	(2)
CRM: Customer Relationship Management	381	(9)
Achieving Service Recovery and Obtaining Customer Feedback	390	(26)
Customer Complaining Behavior	391	(3)
Customer Responses to Effective Service Recovery	394	(3)
Principles of Effective Service Recovery Systems	397	(3)
Service Guarantees	400	(5)
Discouraging Abuse and Opportunistic Behavior	405	(1)
Learning from Customer Feedback	406	(10)
Improving Service Quality and Productivity	416	(30)
Integrating Service Quality and Productivity Strategies	417	(1)
What Is Service Quality?	418	(6)
The Gaps Model---A Conceptual Tool to Identify and Correct Service Quality Problems	424	(1)
Measuring and Improving Service Quality	425	(8)
Defining and Measuring Productivity	433	(2)
Improving Service Productivity	435	(7)
Appendix	442	(4)
Organizing for Change Management and Service Leadership	446	(180)
Effective Marketing Lies at the Heart of Value Creation	447	(3)
Integrating Marketing, Operations, and Human Resources	450	(2)
Creating a Leading Service Organization	452	(4)
In Search of Human Leadership	456	(6)
Change Management	462	(9)
Readings
``Why Service Stinks''	471	(7)
Diane Brady
``Creating New Markets Through Service Innovation''	478	(7)
Leonard L. Berry
Venkatesh Shankar
Janet Turner Parish
Susan Cadwallader
Thomas Dotzel
``The One Number You Need to Grow''	485	(7)
Frederick F. Reichheld
CASES
Susan Munro, Service Consumer	492	(2)
Four Customers in Search of Solutions	494	(1)
Dr. Beckett's Dental Office	495	(3)
Starbucks: Delivering Customer Service	498	(13)
Giordano: Positioning for International Expansion	511	(9)
Aussie Pooch Mobile	520	(12)
Jollibee Foods Corporation	532	(8)
The Accra Beach Hotel	540	(5)
Sullivan Ford Auto World	545	(5)
CompuMentor and the DiscounTech.org Service	550	(17)
Dr. Mahalee Goes to London	567	(2)
Menton Bank	569	(8)
Red Lobster	577	(2)
Hilton HHonors Worldwide: Loyalty Wars	579	(11)
The Accellion Service Guarantee	590	(2)
Shouldice Hospital Limited (Abridged)	592	(10)
Massachusetts Audubon Society	602	(14)
TLContact: CarePages Service (A)	616	(10)
Glossary	626	(7)
Credits	633	(3)
Name Index	636	(6)
Subject Index	642