SERVICES MARKETING PEOPLE, TECHNOLOGY, STRATEGY. Global Edition. Christopher Lovelock. Yale University Jochen Wirtz National University of Singapore

Size: px

Start display at page:

Download "SERVICES MARKETING PEOPLE, TECHNOLOGY, STRATEGY. Global Edition. Christopher Lovelock. Yale University Jochen Wirtz National University of Singapore"

Bernard Pierce
8 years ago
Views:

1 Seventh Edition SERVICES MARKETING PEOPLE, TECHNOLOGY, STRATEGY Global Edition Christopher Lovelock Yale University Jochen Wirtz National University of Singapore Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid

2 CONTENTS Preface 17 Part I Understanding Service Products, Consumers, and Markets 24 Chapter 1 New Perspectives on Marketing in the Service Economy 26 Why Study Services? 27 What Are the Principal Industries of the Service Sector? 30 Powerful Forces Are Transforming Service Markets 32 What Are Services? 32 Four Broad Categories of Services A Process Perspective 40 Services Pose Distinct Marketing Challenges 43 The Traditional Marketing Mix Applied to Services 44 The Extended Services Marketing Mix for Managing the Customer Interface 47 Marketing Must Be Integrated with Other Management Functions 49 A Framework for Developing Effective Service Marketing Strategies 50 Chapter 2 Consumer Behavior in a Services Context 57 The Three-Stage Model of Service Consumption 58 Prepurchase Stage 59 Service Encounter Stage 67 Postencounter Stage 74 Chapter 3 Positioning Services in Competitive Markets 81 What Is Required for Positioning Services Effectively? 83 Achieve Competitive Advantage Through Focus 83 Market Segmentation Forms the Basis for Focused Strategies 86 Service Attributes and Levels 88 Positioning Distinguishes a Brand from Its Competitors 90 Developing an Effective Positioning Strategy 90 Using Positioning Maps to Plot Competitive Strategy 94 Changing Competitive Positioning 98 13

32 Four Broad Categories of Services A Process Perspective 40 Services Pose Distinct Marketing Challenges 43 The Traditional Marketing Mix Applied to Services 44 The Extended Services Marketing Mix

3 Part II Applying the 4 Ps of Marketing to Services 102 Chapter 4 Developing Service Products: Core and Supplementary Elements 104 Planning and Creating Service Products 105 The Flower of Services 108 Branding Service Products and Experiences 117 New Service Development 122 Chapter 5 Distributing Services Through Physical and Electronic Channels 131 Distribution in a Services Context 132 Distribution Options for Servicing Customers: Determining the Type of Contact 133 Place and Time Decisions 137 Delivering Services in Cyberspace 139 The Role of Intermediaries 143 The Challenge of Distribution in Large Domestic Markets 145 Distributing Services Internationally 146 Chapter 6 Setting Prices and Implementing Revenue Management 157 Effective Pricing Is Central to Financial Success 158 Pricing Strategy Stands on Three Foundations 160 Revenue Management: What It Is and How It Works 167 Ethical Concerns in Service Pricing 171 Putting Service Pricing into Practice 177 Chapter 7 Promoting Services and Educating Customers 185 The Role of Marketing Communications 186 Challenges of Services Communications 190 Marketing Communications Planning 191 The Marketing Communications Mix 195 The Role of Corporate Design 209 Integrating Marketing Communications 211 Part III Managing the Customer Interface 216 Chapter 8 Designing and Managing Service Processes 218 Flowcharting Customer Service Processes 219 Blueprinting Services to Create Valued Experiences and Productive Operations 222 Service Process Redesign 233

Distribution Options for Servicing Customers: Determining the Type of Contact 133 Place and Time Decisions 137 Delivering Services in Cyberspace 139 The Role of Intermediaries 143 The Challenge of

4 Contents 15 The Customer as Co-Producer 236 Self-Service Technologies 240 Chapter 9 Balancing Demand and Productive Capacity 249 Fluctuations in Demand Threaten Profitability 250 Managing Capacity 253 Analyze Patterns of Demand 254 Managing Demand 256 Inventory Demand Through Waiting Lines and Queuing Systems 260 Customer Perceptions of Waiting Time 265 Inventory Demand Through Reservations Systems 267 Chapter 10 Crafting the Service Environment 275 What Is the Purpose of Service Environments? 276 The Theory Behind Consumer Responses to Service Environments 280 Dimensions of the Service Environment 284 Putting It All Together 291 Chapter 11 Managing People for Service Advantage 300 Service Employees Are Crucially Important 302 Frontline Work Is Difficult and Stressful 304 Cycles of Failure, Mediocrity, and Success 307 Human Resources Management How to Get It Right 312 Service Leadership and Culture 325 Part IV Implementing Profitable Service Strategies 334 Chapter 12 Managing Relationships and Building Loyalty 336 The Search for Customer Loyalty 338 Understanding the Customer-Firm Relationship 342 The Wheel of Loyalty 345 Building a Foundation for Loyalty 346 Strategies for Developing Loyalty Bonds with Customers 353 Strategies for Reducing Customer Defections 358 CRM: Customer Relationship Management 361 Chapter 13 Complaint Handling and Service Recovery 371 Customer Complaining Behavior 372 Customer Responses to Effective Service Recovery 376 Principles of Effective Service Recovery Systems 377 Service Guarantees 381 Discouraging Abuse and Opportunistic Customer Behavior 387

Systems 267 Chapter 10 Crafting the Service Environment 275 What Is the Purpose of Service Environments?

5 Chapter 14 Improving Service Quality and Productivity 401 Integrating Service Quality and Productivity Strategies 403 What Is Service Quality? 405 Identifying and Correcting Service Quality Problems 406 Measuring and Improving Service Quality 408 Learning from Customer Feedback 409 Hard Measures of Service Quality 416 Tools to Analyze and Address Service Quality Problems 418 Defining and Measuring Productivity 422 Improving Service Productivity 423 Chapter 15 Striving for Service Leadership 438 Cases Glossary 618 Credits 625 Name Index 626 Subject Index 638 The Service-Profit Chain 439 Integrating Marketing, Operations, and Human Resources 441 Creating a Leading Service Organization 444 In Search of Human Leadership 449 Case 1 Sullivan Ford Auto World 462 Case 2 Four Customers in Search of Solutions 468 Case 3 Dr. Beckett's Dental Office 470 Case 4 Banyan Tree Hotels & Resorts 475 Case 5 Giordano: Positioning for International Expansion 485 Case 6 Distribution at American Airlines 497 Case 7 Case 8 The Accra Beach Hotel: Block Booking of Capacity During a Peak Period 506 Revenue Management of Gondolas: Maintaining the Balance Between Tradition and Revenue 512 Case 9 Aussie Pooch Mobile 516 Case 10 Shouldice Hospital Limited (Abridged) 529 Case 11 Red Lobster 541 Case 12 Menton Bank 543 Case 13 Dr. Mahalee Goes to London: Global Client Management 553 Case 14 Hilton HHonors Worldwide: Loyalty Wars 555 Case 15 Massachusetts Audubon Society 569 Case 16 TLContact: CarePages Service (A) 586 Case 17 The Accellion Service Guarantee 599 Case 18 Starbucks: Delivering Customer Service 602

Address Service Quality Problems 418 Defining and Measuring Productivity 422 Improving Service Productivity 423 Chapter 15 Striving for Service Leadership 438 Cases Glossary 618 Credits 625 Name

ENTERPRISE SYSTEMS FOR MANAGEMENT

I I Second Edition ENTERPRISE SYSTEMS FOR MANAGEMENT Luvai F. Motiwalla University of Massachusetts Lowell and Jeff Thompson Oracle Consulting PEARSON Boston Columbus Indianapolis New York San Francisco