,TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION ....................................................................................................................... 1
WHAT ARE SERVICES............................................................................................................................................1
SERVICE DOMINANT LOGIC .................................................................................................................................1
EVOLUTION OF SERVICES.....................................................................................................................................2
SERVICE CHARACTERISTICS .................................................................................................................................3
SERVICES TRIANGLE .............................................................................................................................................4
SERVICES MARKETING MIX ..................................................................................................................................5
CHAPTER 2: THE GAPS MODEL .................................................................................................................... 7
CUSTOMER GAP (GAP 5) ......................................................................................................................................7
PROVIDER GAPS...................................................................................................................................................7
CHAPTER 3: CONSUMER BEHAVIOUR ........................................................................................................ 10
CONSUMER DECISIONS .................................................................................................................................... 10
CHAPTER 4: CUSTOMER EXPECTATIONS OF SERVICE .................................................................................. 11
TYPES OF EXPECTATIONS .................................................................................................................................. 11
ZONE OF TOLERANCE........................................................................................................................................ 11
FACTORS THAT INFLUENCE EXPECTATIONS ..................................................................................................... 11
MANAGEMENT OF CUSTOMER EXPECTATIONS ............................................................................................... 12
CHAPTER 5: CUSTOMER PERCEPTIONS OF SERVICE .................................................................................... 13
CUSTOMER PERCEPTIONS ................................................................................................................................ 13
CUSTOMER SATISFACTION ............................................................................................................................... 13
SERVICE QUALITY .............................................................................................................................................. 14
DIMENSIONS OF SERVICE QUALITY (RATER) ............................................................................................................... 14
SERVICE ENCOUNTERS...................................................................................................................................... 15
CHAPTER 6: LISTENING TO CUSTOMERS .................................................................................................... 17
CUSTOMER DATABASES AND BIG DATA ........................................................................................................... 17
MARKETING RESEARCH .................................................................................................................................... 17
UPWARD COMMUNICATION............................................................................................................................ 20
CHAPTER 7: BUILDING CUSTOMER RELATIONSHIPS ................................................................................... 21
CUSTOMER RELATIONSHIPS ............................................................................................................................. 21
RELATIONSHIP VALUE ....................................................................................................................................... 22
i
, RELATIONSHIP DEVELOPMENT......................................................................................................................... 23
RELATIONSHIP CHALLENGES ............................................................................................................................ 24
CHAPTER 8: SERVICE INNOVATION AND DESIGN........................................................................................ 25
SERVICE AND THE INNOVATION & DESIGN PROCESS ....................................................................................... 25
SERVICE BLUEPRINTING.................................................................................................................................... 26
HIGH-PERFORMANCE SERVICE INNOVATIONS................................................................................................. 28
CHAPTER 9: CUSTOMER-DEFINED SERVICE STANDARDS ............................................................................. 29
TYPES OF STANDARDS ...................................................................................................................................... 29
FACTORS FOR APPROPRIATE SERVICE STANDARDS.......................................................................................... 30
DEVELOPMENT OF CUSTOMER-DEFINED STANDARDS .......................................................................................... 30
CHAPTER 10: PHYSICAL AND VIRTUAL SERVICESCAPE ................................................................................ 32
PHYSICAL EVIDENCE ......................................................................................................................................... 32
TYPES OF SERVICESCAPE (TYPOLOGY) .............................................................................................................. 33
STRATEGIC ROLES OF SERVICESCAPE................................................................................................................ 34
SERVICESCAPE EFFECTS ON BEHAVIOUR .......................................................................................................... 34
ENVIRONMENTAL CONDITIONS ....................................................................................................................... 36
PHYSICAL EVIDENCE STRATEGY GUIDELINES.................................................................................................... 36
CHAPTER 11: EMPLOYEES’ ROLES IN SERVICE DELIVERY ............................................................................. 38
SERVICE CULTURE ............................................................................................................................................. 38
IMPORTANCE OF SERVICE EMPLOYEES ............................................................................................................ 38
BOUNDARY SPANNING ROLES .......................................................................................................................... 39
STRATEGIES FOR QUALITY SERVICE DELIVERY .................................................................................................. 41
CHAPTER 12: CUSTOMERS’ ROLES IN SERVICE DELIVERY ............................................................................ 43
IMPORTANCE OF CUSTOMERS ............................................................................................................................ 43
CUSTOMER ROLES ............................................................................................................................................ 44
SELF-SERVICE TECHNOLOGY ..................................................................................................................................... 45
STRATEGIES FOR ENHANCING CUSTOMER PARTICIPATION ....................................................... 46
CHAPTER 14: MANAGING DEMAND AND CAPACITY ................................................................................... 49
LACK OF INVENTORY CAPABILITY ..................................................................................................................... 49
CAPACITY CONSTRAINTS .................................................................................................................................. 49
DEMAND PATTERNS ......................................................................................................................................... 50
STRATEGIES FOR SHIFTING DEMAND ............................................................................................................... 51
REVENUE MANAGEMENT ................................................................................................................................. 53
QUEUING STRATEGIES ...................................................................................................................................... 54
ii
, CHAPTER 15: SERVICE RECOVERY .............................................................................................................. 55
IMPACT OF SERVICE FAILURE & RECOVERY ...................................................................................................... 55
CUSTOMER RESPONSES TO SERVICE FAILURES ................................................................................................ 57
CUSTOMER RECOVERY EXPECTATIONS ............................................................................................................ 58
SWITCHING VS. LOYALTY .................................................................................................................................. 59
SERVICE RECOVERY STRATEGIES ...................................................................................................................... 60
SERVICE GUARANTEES...................................................................................................................................... 62
CHAPTER 16: MANAGING SERVICE PROMISES ........................................................................................... 64
COMMUNICATION CHALLENGES (SERVICES) ................................................................................................... 65
STRATEGIES TO OVERCOME CHALLENGES ....................................................................................................... 66
iii
CHAPTER 1: INTRODUCTION ....................................................................................................................... 1
WHAT ARE SERVICES............................................................................................................................................1
SERVICE DOMINANT LOGIC .................................................................................................................................1
EVOLUTION OF SERVICES.....................................................................................................................................2
SERVICE CHARACTERISTICS .................................................................................................................................3
SERVICES TRIANGLE .............................................................................................................................................4
SERVICES MARKETING MIX ..................................................................................................................................5
CHAPTER 2: THE GAPS MODEL .................................................................................................................... 7
CUSTOMER GAP (GAP 5) ......................................................................................................................................7
PROVIDER GAPS...................................................................................................................................................7
CHAPTER 3: CONSUMER BEHAVIOUR ........................................................................................................ 10
CONSUMER DECISIONS .................................................................................................................................... 10
CHAPTER 4: CUSTOMER EXPECTATIONS OF SERVICE .................................................................................. 11
TYPES OF EXPECTATIONS .................................................................................................................................. 11
ZONE OF TOLERANCE........................................................................................................................................ 11
FACTORS THAT INFLUENCE EXPECTATIONS ..................................................................................................... 11
MANAGEMENT OF CUSTOMER EXPECTATIONS ............................................................................................... 12
CHAPTER 5: CUSTOMER PERCEPTIONS OF SERVICE .................................................................................... 13
CUSTOMER PERCEPTIONS ................................................................................................................................ 13
CUSTOMER SATISFACTION ............................................................................................................................... 13
SERVICE QUALITY .............................................................................................................................................. 14
DIMENSIONS OF SERVICE QUALITY (RATER) ............................................................................................................... 14
SERVICE ENCOUNTERS...................................................................................................................................... 15
CHAPTER 6: LISTENING TO CUSTOMERS .................................................................................................... 17
CUSTOMER DATABASES AND BIG DATA ........................................................................................................... 17
MARKETING RESEARCH .................................................................................................................................... 17
UPWARD COMMUNICATION............................................................................................................................ 20
CHAPTER 7: BUILDING CUSTOMER RELATIONSHIPS ................................................................................... 21
CUSTOMER RELATIONSHIPS ............................................................................................................................. 21
RELATIONSHIP VALUE ....................................................................................................................................... 22
i
, RELATIONSHIP DEVELOPMENT......................................................................................................................... 23
RELATIONSHIP CHALLENGES ............................................................................................................................ 24
CHAPTER 8: SERVICE INNOVATION AND DESIGN........................................................................................ 25
SERVICE AND THE INNOVATION & DESIGN PROCESS ....................................................................................... 25
SERVICE BLUEPRINTING.................................................................................................................................... 26
HIGH-PERFORMANCE SERVICE INNOVATIONS................................................................................................. 28
CHAPTER 9: CUSTOMER-DEFINED SERVICE STANDARDS ............................................................................. 29
TYPES OF STANDARDS ...................................................................................................................................... 29
FACTORS FOR APPROPRIATE SERVICE STANDARDS.......................................................................................... 30
DEVELOPMENT OF CUSTOMER-DEFINED STANDARDS .......................................................................................... 30
CHAPTER 10: PHYSICAL AND VIRTUAL SERVICESCAPE ................................................................................ 32
PHYSICAL EVIDENCE ......................................................................................................................................... 32
TYPES OF SERVICESCAPE (TYPOLOGY) .............................................................................................................. 33
STRATEGIC ROLES OF SERVICESCAPE................................................................................................................ 34
SERVICESCAPE EFFECTS ON BEHAVIOUR .......................................................................................................... 34
ENVIRONMENTAL CONDITIONS ....................................................................................................................... 36
PHYSICAL EVIDENCE STRATEGY GUIDELINES.................................................................................................... 36
CHAPTER 11: EMPLOYEES’ ROLES IN SERVICE DELIVERY ............................................................................. 38
SERVICE CULTURE ............................................................................................................................................. 38
IMPORTANCE OF SERVICE EMPLOYEES ............................................................................................................ 38
BOUNDARY SPANNING ROLES .......................................................................................................................... 39
STRATEGIES FOR QUALITY SERVICE DELIVERY .................................................................................................. 41
CHAPTER 12: CUSTOMERS’ ROLES IN SERVICE DELIVERY ............................................................................ 43
IMPORTANCE OF CUSTOMERS ............................................................................................................................ 43
CUSTOMER ROLES ............................................................................................................................................ 44
SELF-SERVICE TECHNOLOGY ..................................................................................................................................... 45
STRATEGIES FOR ENHANCING CUSTOMER PARTICIPATION ....................................................... 46
CHAPTER 14: MANAGING DEMAND AND CAPACITY ................................................................................... 49
LACK OF INVENTORY CAPABILITY ..................................................................................................................... 49
CAPACITY CONSTRAINTS .................................................................................................................................. 49
DEMAND PATTERNS ......................................................................................................................................... 50
STRATEGIES FOR SHIFTING DEMAND ............................................................................................................... 51
REVENUE MANAGEMENT ................................................................................................................................. 53
QUEUING STRATEGIES ...................................................................................................................................... 54
ii
, CHAPTER 15: SERVICE RECOVERY .............................................................................................................. 55
IMPACT OF SERVICE FAILURE & RECOVERY ...................................................................................................... 55
CUSTOMER RESPONSES TO SERVICE FAILURES ................................................................................................ 57
CUSTOMER RECOVERY EXPECTATIONS ............................................................................................................ 58
SWITCHING VS. LOYALTY .................................................................................................................................. 59
SERVICE RECOVERY STRATEGIES ...................................................................................................................... 60
SERVICE GUARANTEES...................................................................................................................................... 62
CHAPTER 16: MANAGING SERVICE PROMISES ........................................................................................... 64
COMMUNICATION CHALLENGES (SERVICES) ................................................................................................... 65
STRATEGIES TO OVERCOME CHALLENGES ....................................................................................................... 66
iii
