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Summary Marketing Management 324: Services Marketing

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Summaries and additional class notes from all the work covered during the semester. Includes all chapters covered and tested in A1 and A2.

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  • February 15, 2024
  • 72
  • 2023/2024
  • Summary
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,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




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, 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



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, 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




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