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Services Marketing Management, Third Edition (Services Marketing Management) PDF

280 Pages·2006·1.92 MB·English
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Services Marketing Management To Beatrice and Paul – Peter To Gervase, Phoebe and Hector – Angela Services Marketing Management Third Edition Peter Mudie and Angela Pirrie AMSTERDAM •BOSTON •HEIDELBERG •LONDON •NEW YORK •OXFORD PARIS •SAN DIEGO •SAN FRANCISCO •SINGAPORE •SYDNEY •TOKYO Butterworth-Heinemann is an imprint of Elsevier Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP 30 Corporate Drive, Suite 400, Burlington, MA01803, USA First published as The Management and Marketing of Services 1993 Second edition 1999 Third edition 2006 Copyright © 2006 Peter Mudie and Angela Pirrie. Published by Elsevier Ltd. All rights reserved. The right of Peter Mudie and Angela Pirrie to be identified as the authors of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988 No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone (+44) (0) 1865 843830; fax (+44) (0) 1865 853333; email: [email protected]. Alternatively you can submit your request online by visiting the Elsevier web site at http://elsevier.com/locate/permissions, and selecting Obtaining permission to use Elsevier material British Library Cataloguing in Publication Data Acatalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data Acatalogue record for this book is available from the Library of Congress ISBN-13: 978-0-7506-6674-9 ISBN-10: 0-7506-6674-9 For information on all Butterworth-Heinemann publications visit our web site at http://books.elsevier.com Typeset by Charon Tec Ltd, Chennai, India www.charontec.com Printed and bound in Great Britain 06 07 08 09 10 10 9 8 7 6 5 4 3 2 1 Contents Preface ix Acknowledgements xi 1 Introducing services 1 1.1 ‘What is this thing called service?’ 1 1.2 Characteristics of services 3 1.3 The ‘7 Ps’ of services 5 1.4 Customer involvement and uncertainty 6 1.5 Expectations and perceptions of a service 7 1.6 Core and augmented service 9 1.7 The ‘McDonaldization’ of services 10 1.8 The downside of McDonaldization 11 1.9 Technology in services 12 1.10 Call centres 14 1.11 The trouble with service … 17 Summary 18 Appendix 1.1 Technology and the future of services 18 References 23 2 Organization for service 27 2.1 ‘Organization realities’ 27 2.2 Structure of organizations 30 2.3 Culture of organizations 34 2.4 Types of organization culture 34 2.5 Organizational climate 36 2.6 Defensive behaviour 36 2.7 Explanation for defensive behaviour 38 2.8 Organizing for service 39 2.9 Empowerment 40 2.10 Criticism of the new service managementschool of thought 40 2.11 The virtual organization 42 Summary 42 References 43 3 Design of the service 47 3.1 The concept of design 47 3.2 Service classification: a design issue 48 vi Contents 3.3 Objects of the service processes 52 3.4 Customer contact 52 3.5 Service blueprint 57 3.6 The 3 logics 61 Summary 62 Appendix 3.1 Aprocedure for blueprinting a service 62 References 63 4 The service setting 65 4.1 The service setting framework 65 4.2 Types of service setting 67 4.3 The role of the service setting 68 4.4 The service setting and consumer behaviour 69 4.5 Environmental dimensions of the service setting 71 4.6 Three service settings 77 Summary 82 References 83 5 Service quality 85 5.1 The quality challenge 85 5.2 Definitions of quality (and implications for service quality) 86 5.3 Standards 89 5.4 Hard and soft standards 90 5.5 The Gaps Model of Service Quality 90 5.6 SERVQUAL(what to measure) 92 5.7 The SERVQUALScale 94 5.8 Tools of quality 96 5.9 Quality programmes 104 5.10 Cost of quality 106 Summary 108 References 109 6 The service encounter 111 6.1 The essence of an encounter 111 6.2 Service encounter as theatre 112 6.3 Scripts 112 6.4 Emotional labour 116 6.5 The critical incident technique 119 6.6 Dysfunctional customers, deviant employees – an everyday occurrence in the service encounter? 122 Summary 126 References 127 7 Managing people 131 7.1 Customer contact staff 131 7.2 Emotional labour 133 7.3 Empowerment 134 7.4 Recruitment 137 7.5 Orientation and socialization 140 Contents vii 7.6 Orientation 141 7.7 Gaining commitment from employees 143 7.8 Staff dissatisfaction 146 7.9 Staff turnover 150 7.10 Internal marketing 152 Summary 153 References 153 8 Demand and capacity management 157 8.1 The basic problem: perishability 157 8.2 Service capacity: resources and assets 159 8.3 Service demand 159 8.4 Managing demand and capacity 160 8.5 Aligning demand and capacity: the options 162 8.6 Yield management (also known as revenue management) 164 8.7 Waiting and queuing 169 8.8 Queuing: a behavioural perspective 172 Summary 175 References 175 9 Service communications 177 9.1 Integrated marketing communications 177 9.2 The role for communications 180 9.3 Services communication 180 9.4 Key communication variables 182 9.5 Corporate identity 188 9.6 Branding services 192 9.7 Advertising the service 195 Summary 198 References 199 10 Performance measurement 201 10.1 Productivity 201 10.2 The productivity framework 204 10.3 Improving productivity 206 10.4 Consumer participation and productivity 208 10.5 White-collar productivity 209 10.6 Service productivity as a relationship between input and output 213 10.7 Customer retention and lifetime value 215 Summary 221 Appendix 10.1 Customer retention 222 Appendix 10.2 The customer volume effect 225 References 226 11 Relationship marketing 227 11.1 Atwenty-first century approach to marketing 227 11.2 What is relationship marketing? 228 11.3 Why follow a relationship marketingapproach? 229 11.4 Benefits to the customer 231 viii Contents 11.5 Building a relationship marketing strategy 232 11.6 Relationship marketing strategies 234 Summary 237 References 237 12 Monitoring and evaluating the service 239 12.1 Customer satisfaction evaluation 239 12.2 Customer complaints 246 12.3 Service recovery 254 12.4 Effective complaint-handling procedures 256 12.5 Guarantees 259 12.6 Customer defections 262 Summary 262 References 263 Index 265 Preface Whilst largely retaining the overall structure of earlier editions, the third edition represents a thorough update and revamp of the content. For example, the impact of call centres, the significance of technology in the delivery of service and the trend toward the McDonaldization of services. Much more attention has been given to the importance of organizational climate and a completely new chapter has been devoted to relationship marketing. Greater prominence is attached to fundamental concepts, such as emotional labour, and techniques, for example, yield management. Service fairness and recovery and the law for services is the subject of extensive discussion in Chapter 12. We continue to acknowledge, much more so in this edition, the difficulties and problems surrounding the management and marketing of services. Typical of this concern is reference to customer and employee feelings of frustration leading to acts of revenge and sabotage. We, therefore, challenge our readers to think more critically of the management of services, not least because of the growing reference to this area in our everyday lives. Finally, throughout the book we hope you remain conscious of the three parties to a service encounter – management, employees, customers – and all that may involve. Peter Mudie Angela Pirrie

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Services Marketing Management builds on the success of the previous editions, formally entitled 'The Management and Marketing of Services', to provide an easily digestible approach to the service industry with a specific focus on the management and marketing elements.This new edition has been thorou
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