Download Revision - FMT-HANU

I
PowerPoint
to accompany
Services vs. goods
• Differences between goods and services
Revision
• Most service products cannot be inventoried
• Services typically have both tangible and intangible
elements but intangible elements dominate value creation.
Services marketing
• Services are often difficult to visualise and evaluate
• Customers may be involved in co-production
• The time factor often assumes great importance
• Distribution may take place through non-physical channels
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Categorising service processes
I
Figure 1.7
The service marketing system for a high-contact service
• people processing
• possession processing
• mental-stimulus processing
• information processing
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Figure 1.8
The service marketing system for a low-contact service
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Figure 1.9
An expanded marketing mix for services
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Gibson and Fraser: Business Law 4e © 2009 Pearson Education Australia
I
Figure 2.1
A typical model of a customer’s decision process
I
Impact of culture
• Culture is the sum of learned beliefs, values and
customs that create behavioural norms for a
given society
• Hofstede identified four underlying dimensions of
cultural values:
(1) collectivism/individualism
(2) uncertainty avoidance
(3) power distance
(4) masculinity/femininity
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Stage 1: Pre-purchase decision making
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
• Need arousal
Stage 2: Purchase and consumption—
the service encounter
• Service encounters: three levels of customer
contact
• Information search
• Mood states
• Evaluating alternatives
• Role and script theory
• Perceived risk
• Control theory
• Risk and uncertainty aversion
• Employees also need control
• Strategies for risk reduction
• Understanding customers’ psychological needs
and values
• Information sources used to select business
services
• Critical incidents in service encounters
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Figure 3.1
Basic focus strategies for services
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Important versus determinant attributes
• Importance attributes
• Determinant attributes
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Gibson and Fraser: Business Law 4e © 2009 Pearson Education Australia
I
Figure 3.5
Developing a marketing positioning strategy
I
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Figure 4.5
A services branding model
Figure 4.1
The Flower of Service: core product surrounded by
clusters of supplementary services that enhance the core
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Distribution strategy in a services context
• What is being distributed?
• Distinguishing between distribution of
supplementary and core services
• Distribution options for serving customers:
determining the type of contract
• Channel preferences vary between consumers
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Channel preferences vary between
consumers
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
The role of intermediaries - Franchising
• For complex and high-perceived-risk services,
people tend to rely on personal channels.
• Individuals with higher confidence and
knowledge are more likely to use impersonal and
self-service channels.
• Customers with social motives tend to use
personal channels.
• Convenience is a key driver of channel choice for
the majority of consumers.
Figure 5.2 Splitting responsibilities for service delivery
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Gibson and Fraser: Business Law 4e © 2009 Pearson Education Australia
I
Factors responsible for the
internationalisation of services
I
Three basic requirements
for a service blueprint
• Market drivers
• Must show time dimensions
• Competition drivers
• Must identify and handle errors, bottlenecks,
and reiterations
• Technology drivers
• Must precisely define how much variation from
standards can be allowed in execution
• Cost drivers
• Common customer needs drivers
• Government drivers
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
The role of price in marketing strategy
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
The three foundations of pricing strategy
• The functional role
• Costs
• The strategic role
• Competition
• Value to customer
Figure 6.1
The pricing tripod
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Revenue management for services
Revenue management can be applied if:
• Capacities are relatively fixed and perishable
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
PowerPoint
to accompany
Chapter 8
• Different market segments exist
• Service is sold in advance
• Variable and uncertain demand
• Low marginal sales variable cost but high
marginal production cost
Integrated services
marketing
communication
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Gibson and Fraser: Business Law 4e © 2009 Pearson Education Australia
I
Figure 8.1
The role of marketing communications in services
I
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Figure 8.2
The characteristics of services present four key
communications challenges
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Figure 8.3
Sources of messages received by a target audience
PowerPoint
to accompany
Chapter 14
Managing people for
service advantage
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
The service profit chain
I
Frontline work is difficult and stressful
• Boundary spanning
• Sources of conflict (i.e. person–role
conflict; organisation–client conflict;
inter-client conflict)
• Emotional labour
• Service sweat shops?
Figure 14.1
The service profit chain
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Gibson and Fraser: Business Law 4e © 2009 Pearson Education Australia
I
Figure 14.3
The cycle of failure
I
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Figure 14.6
The cycle of success
Figure 14.5
The cycle of mediocrity
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Human resource management—
how to get it right
• Hiring the right people
• Identify the best people
• Train service employees actively
• Empower the frontline
• Build high-performance service delivery
teams
• Motivate and energise people
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Service leadership and culture
Figure 14.10
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
PowerPoint
to accompany
Chapter 9
(a) The
traditional
organisational
pyramid.
Managing the
customer service
function
(b) The inverted
organisational
pyramid with
a customer
and frontline
focus
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Gibson and Fraser: Business Law 4e © 2009 Pearson Education Australia
I
Employees and customer service
I
• Delivering the core service as
promised—reliability—is often totally
within the control of frontline
employees
• A growing trend for frontstage staff to
be supplied on a contract basis by
specialist human resource companies
• One of the future challenges in
managing the customer service
function will be to manage this network
of customer service function suppliers
• Employees are critical to service
recovery efforts
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
How technology is leveraging
customer service
Outsourcing customer service
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Factors shaping
the customer service function
• Presence or absence of intermediaries
• Customer service is becoming
increasingly technology based.
• High contact versus low contact
• Duration of service delivery process
• Technology can improve operational
efficiency.
• Capacity-constrained services
• Frequency of use and repurchase
• Technology is creating opportunities for
real-time feedback from the
marketplace.
• Level of complexity
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
PowerPoint
to accompany
Chapter 10
Crafting the service
environment
What is the purpose
of service environments?
• Engineer the customers’ experience
and shape their behaviours
• Convey the planned image of the firm
and support its positioning and
differentiation strategy
• Act as part of the value proposition
• Facilitate the service encounter and
enhance both service quality and
productivity
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Gibson and Fraser: Business Law 4e © 2009 Pearson Education Australia
I
The Mehrabian–Russell Stimulus-Response
Model
I
Figure 10.3
The servicescape model
Figure 10.1 Model of environmental responses
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
PowerPoint
to accompany
Adjusting capacity to match demand
• Schedule downtime during periods of low demand
Chapter 7
• Cross-train employees
• Use part-time employees
• Invite customers to perform self-service (coproduction)
Balancing productive
capacity and
demand
• Ask customers to share
• Create flexible capacity
• Rent or share extra facilities and equipment
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Demand and supply imbalance
I
Strategies for managing demand
• Basic approaches to managing demand
• Using marketing mix elements to shape demand
patterns
• Inventorying demand through queuing and
reservations
• Inventory demand through a reservation system
• Create alternative demand for otherwise wasted
capacity
Figure 7.2
Implications of variations in demand relative to
capacity
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Gibson and Fraser: Business Law 4e © 2009 Pearson Education Australia
I
PowerPoint
to accompany
The pivotal role of satisfaction
Chapter 11
Customer
satisfaction and
service quality
Figure 11.1
Benefits of customer satisfaction and service quality
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Customer satisfaction
and financial performance
I
Figure 11.3
The link between value, satisfaction
and customer retention (loyalty)
Figure 11.2
An experience to profits model
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Figure 11.4
Non-linear effects of satisfaction on customer loyalty
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Modelling customer satisfaction processes
Figure 11.5
The
disconfirmation
of expectations
model
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Gibson and Fraser: Business Law 4e © 2009 Pearson Education Australia
I
I
Satisfaction
Expectations
• Satisfaction and dissatisfaction are two
independent and separate constructs affected
by satisfiers and dissatisfiers
• Formation of expectations
• Other influences on satisfaction
evaluations:
• Impact of culture on customer
expectations
• Managing expectations
• Prior attitudes towards the brand
• Consumers’ attributions to unexpected events
• Equity theory or perceived fairness
• Perceived value
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Dimensions of service quality
PowerPoint
to accompany
1. Tangibles (appearance of physical elements)
Chapter 12
2. Reliability (dependable, accurate performance)
3. Responsiveness (promptness and helpfulness)
4. Assurance (competence, courtesy, credibility
and security)
Managing customer
5. Empathy (easy access, good communications
and customer understanding)
relationships
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Segmentation of relational markets
Figure 12.3
The diamond of
loyalty
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
A customer-value approach to segmentation
Figure 12.5
Customers’ profitability matrix
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Gibson and Fraser: Business Law 4e © 2009 Pearson Education Australia
I
A customer-value approach to segmentation
I
Figure 12.7
Three customer retention strategies
Figure 12.5
Customers’ profitability matrix
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Figure 12.9
What customer relationship management
really comprises
PowerPoint
to accompany
Chapter 13
Handling customer
complaints and
managing service
recovery
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Figure 13.2
How customers handle dissatisfaction
I
Stress and Coping Theory
• 2 key psychological processes:
• Cognitive appraisal: process of categorizing an
encounter, with respect to its significance to their
well being
• Coping: efforts, both behavioral and cognitive,
employed to control, tolerate or minimize a
stressful situation
• Emotion-focused
• Problem-focused
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Gibson and Fraser: Business Law 4e © 2009 Pearson Education Australia
I
Purposes for complaining
I
• Customers complain to recover some
economic loss (distributive/outcome justice)
Customer complaining types
• Passives
• Voicers
• Customers complain to rebuild self-esteem
(Stress & coping theory)
• Irates
• Activists
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Figure 13.8
Components of an effective service recovery system
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Justice theory and service recovery
Figure 13.9
The role of justice in the complaint-handling procedure
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
I
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
What’s more?
• Exam format:
• Closed book exam
• MCQs, discussion questions, case and
problem solving included
• Time: 120 minutes
Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition
Gibson and Fraser: Business Law 4e © 2009 Pearson Education Australia