Download reflections on services marketing

REFLECTIONS ON
SERVICES MARKETING
AMA SERVSIG 2012 Special Session
Helsinki, Finland
INTRODUCTION
LLOYD C. HARRIS
WARWICK BUSINESS SCHOOL, UK
SETTING THE SCENE
¢  How
all this happened…..
¢  Plugging the book – please
buy it and persuade your
students to buy it (and their
parents) and your
parents….
¢  Esteemed Colleagues (The
Motley Crew)
¢  Presentations and
Discussion
SERVICES MARKETING: ROOTS AND WINGS
RAY FISK, TEXAS STATE UNIVERSITY, USA
EVOLUTION OF THE SERVICES MARKETING
FIELD
Walking Erect
Scurrying About
Crawling Out
Pre-1980s
1980-1985
1986-1992
Source: Fisk, Brown and Bitner (1993)
EVOLUTION OF SERVICES MARKETING
¢  Crawling
— 
— 
Out (Pre 1980)
Early services marketing work was conceptual/theoretical.
Goods Marketing vs. Services Marketing Debate:
Shostack (1977) – “Breaking Free From Product Marketing.”
¢  Berry (1980) – “Services Marketing is Different.”
¢ 
¢  Scurrying
— 
About (1980-1985)
More services research was published.
Literature was still mostly conceptual.
¢  Literature was beginning to move beyond goods vs. services issues.
¢ 
— 
— 
Enthusiasm centered around AMA Services Marketing Conferences.
Emergence of a core group of academics & business
practitioners.
¢  Walking
— 
— 
Erect (1985–1992)
Increasing number of services scholars.
Explosive growth in the literature:
Acceptance of services research by major journals
¢  More dissertations
¢  More textbooks
¢ 
— 
— 
Academic events in Europe
Creation of academic centers:
¢ 
Arizona State University’s Center for Service Leadership
RECENT STAGES OF SERVICES EVOLUTION
Building Community
Creating Language
Making Tools
1992-2000
2000-Now
The Future
MAKING TOOLS (1993-2000)
More quantitative research - measurement, statistics, and
decision support modeling.
¢  Broadening, deepening and sharpening of the research.
¢  Continued globalization and multidisciplinary research.
¢  Expanding topic areas:
¢ 
— 
— 
— 
— 
— 
— 
service design & delivery
service experiences
service quality & customer satisfaction
service recovery
modeling & measurement
technology infusion
CREATING LANGUAGE (2000-NOW)
¢  Services
Marketing is Becoming the Language of
Marketing
—  Services rather than goods are fundamental to
economic exchange - Vargo & Lusch (2004)
¢  Global Language
—  Services marketing has always been a global field,
but it is expanding rapidly.
—  Expansion of literature worldwide
—  More conferences and centers worldwide
¢  Transdisciplinary Language
—  IBM’s Service Science, Management, Engineering
(SSME) Initiative
BUILDING COMMUNITY (THE FUTURE)
¢  An
eclectic, multidisciplinary approach is
required.
— 
— 
— 
— 
No discipline can provide complete solutions.
The centers of disciplines are more important than
their boundaries.
Inclusiveness is essential.
Power sharing is essential.
¢ 
No discipline, organization, or country should dominate.
A BIG TENT FOR T-SHAPED PEOPLE
¢  Service
Arts
¢  Service Management
¢  Service Engineering
¢  Service Science
¢  Service Performance - the center pole that
unifies the disciplines.
— 
— 
— 
T-Shaped people are needed to link and unite
these disciplines.
Breadth and depth are essential.
A friendly ethos is essential.
SERVICE COLLABORATION
¢  Our
modern communications era
(especially the Internet) vastly reduces
the barriers to collaboration.
— 
— 
— 
Multidisciplinary social networks are needed that capitalize
on these technologies.
We need to move from silos of knowledge to webs of
knowledge.
The customer must be part of the conversation!
SOCIAL MEDIA: SERVICES MAGIC
OR SERVICES MONSTER
STEVE BARON, UNIVERSITY OF LIVERPOOL
REBEKAH RUSSELL-BENNETT, QUEENSLAND UNIVERSITY OF
TECHNOLOGY
LARRY NEALE QUEENSLAND, UNIVERSITY OF TECHNOLOGY
THEY’RE MAGIC! THEY’RE SERVICE!
“Facebook is my connection to everyone and
everything. It keeps me organised, reminds
me of events, and most importantly reminds
me of when to send those previously often
forgotten birthday wishes. Essentially,
Facebook has managed to cut down my
phone bills, help me with assignments, keep
me informed, and remind me when to be
where”
MONSTROUS!
80% of Americans use
a social network
83% trust the info
Pop: 22m
• 11.3m Facebook
users (78% of
internet population)
• 9.4m Youtube
users
• 1.8m Twitter users
• Half of all
Facebook access is
from Smartphones
“There are now more iPhones sold every day
(402k) than babies born (300k)”
Pop: 58m
• 30m
Facebook
users
• 26m Twitter
China
Most socially
engaged
country
485m users
MONSTROUS!
¢  In
a global survey of CMOs,
over 50% of respondents
stated that social media were
key channels for engaging
customers (IBM 2011)
¢  And
— 
the trend is ------
On a tram from centre of
Manchester to the suburbs at
8.00pm on a Saturday, my
wife and I were the only
people out of 20 in the
compartment not -- - ------ -----
MAKING MAGIC FROM SOCIAL MEDIA:
PRACTITIONERS
How to gain
maximum impact
through relevant
newsfeeds
• Methods for increasing
‘affinity’ and ‘weight’
and reducing ‘decay’
How organizations
can provide service
for their customers
via social media
How to attract followers most
effectively
MAKING MAGIC FROM SOCIAL MEDIA:
ACADEMICS
Strategies for
managing social
media.
Why social media
are important for
service marketers
How social
media can be
integrated into
the service mix
The global
influence of
social media
How social
media relate to
the SDL
POTENTIAL RESEARCH DIRECTIONS
DEVIANT SERVICE BEHAVIOUR: WHAT, WHY
AND WHAT TO DO ABOUT IT
KATE L DAUNT, CARDIFF BUSINESS SCHOOL,
UK
DOMINIQUE A GREER, QUEENSLAND
UNIVERSITY OF TECHNOLOGY, AUSTRALIA
WHAT CONSTITUTES DEVIANT
BEHAVIOUR?
¢  The
state of diverging from usual or acceptable
standards…especially in social behaviour (Oxford
English Dictionary, 2010).
¢  Extremely
behaviours
¢  Two
— 
— 
positive vs. extremely negative
parallel streams of research
Organisational behaviour
Marketing
¢  Wide
range of forms
AN OVERVIEW OF DEVIANT SERVICE
BEHAVIOUR
Deviant
Service
Behaviour
Negative Deviance
Dimensions of
Deviance
1. Norms
2. Intent
3. Visibility
4. Harm
5. Premeditation
Motivations for
Deviance
Cognitive appraisals
of:
1. Fairness
2. Control
Managerial Strategies
for Deviance
1.Empowerment
2.Service Participant
Compatibility
3.Servicescape
(Re)Design
Deviant Actors
1.Customers
2.Service providers
3.Service managers
Positive Deviance
Consequences of
Deviance
1.Financial
2.Physical
3.Psychological
4.Behavioural
DIMENSIONS OF DEVIANCE
Norms – violation (culture)
Intent – deliberate (motive)
Visibility – overt vs. covert
Harm – target
Premeditation – opportunistic?
MOTIVES AND CONSEQUENCES
Motivations
• Fairness
• Control
• Financial
• Physical
• Psychological
Consequences • Behavioural
MANAGERIAL STRATEGIES
Empowerment
Service participant compatibility
Servicescape (Re)design
FUTURE RESEARCH
ITS MORE THAN PHYSICAL...ITS SOCIAL,
NATURAL, SYMBOLIC, AND VIRTUAL
SERVICESCAPE STIMULI
MARK ROSENBAUM, NORTHERN ILLINOIS UNIVERSITY, USA
CAROLYN MASSIAH, UNIVERSITY OF CENTRAL FLORIDA, USA
Physical
Realm
Cyber
Realm
Social
Realm
Perceived
Servicescape
Restorative
Realm
Symbolic
Realm
Physical
Realm
THE SOCIAL REALM
Employees
Customers
Employee-customer congruency
Social density
Displayed emotions of others
SYMBOLIC REALM
Ethnic
Symbols
Ethnic
Signs
Ethnic
Artifacts
Symbolic
Realm
THE RESTORATIVE REALM
Being
Away
Fascination
Compatibility
Restorative
Realm
THE CYBER REALM
In-store
kiosks, SSTs
Corporate
Website
Mobile
Applications
Cyber
Realm
site’s navigation speed, information
content, delivery time, presentation
quality, reputation, trust,
understandable
ARE MARKETNG ACADEMICS TOO LAZY, TOO
SCARED OR TOO CAUTIOUS TO RESEARCH
MARKETING SERVICES INTERNATIONALLY?
AIDAN DALY, NATIONAL UNIVERSITY OF IRELAND-GALWAY
MERLIN SIMPSON, PACIFIC LUTHERAN UNIVERSITY, USA
SERVICES INTERNATIONALIZATION
RESEARCH
¢  “The
paucity of research on international services
marketing is alarming when one considers the
importance of services in the global economy.”
— 
Gary Knight, 1999, Journal of Services Marketing, vol. 13
no. 4/5
SERVICE CLASSIFICATIONS:
LOVELOCK AND YIP, 1996
Possession-Processing: car repair, laundry/dry
cleaning, landscaping, equipment installation and
maintenance.
Information-Based: banking, accounting, education,
consulting, data-processing, entertainment, etc.
People-Processing: health care, passenger
transportation, lodging, food service, personal
grooming, physical fitness
PEOPLE-PROCESSING SERVICES:
THE SERVUCTION MODEL
Inanimate
Environment
Invisible
organization
and systems
Customer A
Contact
Personnel
Or
Service
Provider
Customer B
Invisible
Visible
Bundle of service benefits
Received by Customer A
Sources: Pierre Eigler and Reic Langeard, 1987. “Servuction: le Marketing de Services,
Paris: McGraw Hill; Bateson John E.G. and Hoffman K. Douglas 1999, Managing Services
Marketing, 4th ed, Dryden Press: London p.14
MOTIVES AND BARRIERS
Motives
Barriers
Vision, ambition, commitment
Lack of CEO Ambition,
initiative
Market opportunities
Cultural/Psychic Distance
Profitability and Growth
Lack of Experience
Competitive strength
Lack of Financial Resources
Hunch
Ethnocentrism
Tariffs, quotas, non-tariff
barriers
Source: Svend Hollenson, 2007, Global Marketing, 4th ed.
SERVICES GLOBALIZATION DECISIONS
Market
Selection
Mode of
Entry
Marketing
Mix
MARKET SELECTION
Market selection, country and within country, deemed
a critical decision (Dunning, 1989)
¢  Extant literature extensively features matrixdetermined weighted factor decision-making, based
on
¢ 
— 
Hard issues
¢ 
— 
Soft Issues
¢ 
¢ 
Market size, market growth, price levels, competition
Brand acceptance, fit with existing marketing practice
People-Processing services research dismissed matrix
approach
— 
Holistic assessment engaged
¢ 
— 
Including country/site “reconnaissance”
Political stability, economic conditions, regulatory
environment, technology
MODES OF ENTRY
Conventional!
Indirect or
Direct
Exporting
Licensing
Contract
Manufacturing
Joint
Venture
Foreign Direct
Investment
(FDI)
People-Processing Services!
Strategic
Alliance/
Joint
Venture
Foreign
Direct
Investment
(FDI)
Franchising
Merger/
Acquisition
TO STANDARDIZE OR ADAPT?
Source: Aidan Daly, “let’s Improvise,” 2004
INTERACTION DISCUSSION PANEL
WANT MORE................. READ THE BOOK!
New book launched June 2012
¢  39 academics from 15 countries
¢  Covers 5 global trends:
¢ 
1. 
2. 
3. 
4. 
5. 
¢ 
¢ 
Globalisation
Deeper understanding of service
customer behaviour
Increased collaboration and
relationships
Ubiquity of technology
Sustainability
Each chapter is a scholarly
contribution
Can be used in teaching
advanced students:
— 
Instructor’s manual and
PowerPoint slides available