Summary of the lectures (integrated with notes took during the lectures) and summary of all the articles required from the study guide (guest lectures included).
Reading 1 Lecture 1:.........................................................................................................................................5
1.1 Examine the nature of the service:..........................................................................................................5
1.2 Differentiation between marketing of service and marketing of physical goods:....................................5
1.3 Characteristics of a services:....................................................................................................................5
1.4 Classifications of services:........................................................................................................................6
Reading 2 Lecture 1..........................................................................................................................................8
Customer Perception.....................................................................................................................................8
Article 1 Lecture 1.............................................................................................................................................9
Evolving to a New Dominant Logic for Marketing..........................................................................................9
Lecture 1.........................................................................................................................................................12
Definition of service:....................................................................................................................................12
Identify challenges and opportunities:.........................................................................................................14
Goods Dominant Logic vs. Service Dominant Logic:.....................................................................................14
The SDL:.......................................................................................................................................................14
Servitization:................................................................................................................................................15
Article 1 Lecture 2:..........................................................................................................................................17
“The Servitization of manufacturing”...........................................................................................................17
Article 2 Lecture 2:..........................................................................................................................................19
“Cutomer Involvement in New Service Development: An Examination of Antecedents and Outcomes”....19
Lecture 2:........................................................................................................................................................20
2.1 Transition from products to services:.....................................................................................................20
2.2 New Service Development (NSD)...........................................................................................................22
2.3 Role of the customer in NSD..................................................................................................................23
Reading 1 Lecture 3........................................................................................................................................25
Foundations for Services Marketing.............................................................................................................25
Gap 1: Not knowing what customers Expect................................................................................................25
Gap 2: Not selecting the right service quality designs and standards..........................................................25
Gap 3: Not delivering to service designs and standards...............................................................................26
Gap 4: Not matching performance to promises...........................................................................................26
Reading 2 Lecture 3:.......................................................................................................................................28
Understanding services buyer behaviour:....................................................................................................28
Lecture 3: Managing satisfaction and service quality.....................................................................................29
3.1 Disconfirmation paradigm:.....................................................................................................................29
, Article 1 Lecture 3: When do customers get what they expect? Understanding the ambivalent effects of
customers’ service expectations on satisfaction. (Habel ,Alavi, …, 2016)...............................................30
3.2 The causes of satisfaction:.....................................................................................................................31
3.3 Quality models of services:....................................................................................................................31
3.3.1 Kano model and e-service quality model:......................................................................................31
3.3.2 SERVQUAL dimensions:..................................................................................................................32
3.4 Gaps model of service quality................................................................................................................33
Reading 1 Lecture 4........................................................................................................................................35
Service Employees are extremely important...............................................................................................35
Cycles of failure, mediocrity and success.....................................................................................................35
The cycle of failure:.................................................................................................................................35
The cycle of mediocrity:..........................................................................................................................35
The cycle of success:...............................................................................................................................36
Human resources management:..................................................................................................................36
Empower the Front Line:..............................................................................................................................37
Service Leadership and culture:...................................................................................................................37
Article 1 lecture 4:..........................................................................................................................................38
Touch Versus Tech: When Technology Functions as a Barrier or a Benefit to Service Encounters..............38
Article 2 lecture 4:..........................................................................................................................................39
Principles and Principals: Do Customer Stewardship and Agency Control Compete or Complement When
Shaping Frontline Employee Behavior?...................................................................................................39
Lecture 4:........................................................................................................................................................40
Frontline employees in service quality:........................................................................................................40
Conflicts in the service triangle:...................................................................................................................40
General framework for studying FLE performance:.....................................................................................40
How to motivate a front-line employee:......................................................................................................41
Rapport building:.........................................................................................................................................41
Artificial intelligence:...................................................................................................................................41
Lecture 5: Innovation in the frontline.............................................................................................................42
Two roads to innovation in the frontline:....................................................................................................42
Article 1 lecture 5: Don’t just fix it, make it better! Using frontline service employees to improve recovery
performance...........................................................................................................................................42
Article 2 Lecture 6:..........................................................................................................................................44
Service Blueprinting: A Practical Technique for Service Innovation.............................................................44
(Bitner, Ostrom, Morgan, 2007)...................................................................................................................44
Lecture 6: Service Blue Printing......................................................................................................................44
6.1 Service Blueprinting...............................................................................................................................44
, 6.1.1 Service Blueprinting components..................................................................................................44
6.1.2 Building a service blueprinting.......................................................................................................45
6.1.3 Benefit of Blueprinting...................................................................................................................45
6.1.4 Who can benefit from blueprinting:..............................................................................................45
6.1.5 Service blueprinting and design criteria.........................................................................................46
6.2 Servicescape...........................................................................................................................................47
6.2.1 Typology of Service Organizations Based on Form and Use of the Servicescape...........................47
6.2.2 Roles of the Servicescape...............................................................................................................47
6.2.3 Servicescape as Part of Value Proposition.....................................................................................48
6.3 A Framework for Understanding Environment-User Relationships in Service Organizations.................48
Servicescapes: The Impact of Physical Surroundings on Customers and Employees..............................48
6.3.1 An Integrative Framework: Bitner’s Servicescape Model..............................................................49
6.3.2 Environmental Dimensions............................................................................................................49
Impact of Signs, Symbols, and Artifacts..................................................................................................49
6.3.3 Understanding Servicescape Effects on Behavior..........................................................................49
Social Interactions in the Servicescape...................................................................................................50
Variations in Individual Response...........................................................................................................50
6.3.4 Guidelines for Physical Evidence Strategy......................................................................................50
6.3.5 Tools to Guide Servicescape Design...............................................................................................50
6.4 E-servicescapes: A research model........................................................................................................50
Online servicescapes, trust, and purchase intentions..................................................................................50
6.4.1 Changes in Servicescape design.....................................................................................................51
Reader 1 Lecture 7: Quality Management in Services....................................................................................52
The shape of the quality function................................................................................................................52
Asymmetric Quality Function..................................................................................................................52
Satisfiers and dissatisfiers.......................................................................................................................52
Lessons of service quality and quality management research.....................................................................53
A service quality management programme.................................................................................................53
Service recovery processes..........................................................................................................................53
Timing of recovery processes.......................................................................................................................54
Article 1 Lecture 7...........................................................................................................................................55
Employees’ Willingness to Report Service Complaints.................................................................................55
Article 2 Lecture 7...........................................................................................................................................56
Identifying Appropriate Compensation Types for Service Failures: A Meta-Analytic and Experimental
Analysis...................................................................................................................................................56
Lecture 7: Service Engineering and Marketing...............................................................................................58
7.1 Service failures.......................................................................................................................................58
, 7.1.1 Types of service failures.................................................................................................................58
7.1.2 Reasons for service switching........................................................................................................58
7.2 Service recovery strategies....................................................................................................................59
7.2.1 Service recovery.............................................................................................................................59
7.2.2 Customer expect justice.................................................................................................................59
7.2.3 Firms’ action..................................................................................................................................59
7.3 Service recovery paradox.......................................................................................................................60
7.3.1 Restores customer satisfaction......................................................................................................60
7.3.2 Influences future customers’ purchase decision process...............................................................61
7.3.3 Yields information for improvement..............................................................................................61
Article 1 Lecture 8:..........................................................................................................................................62
Article 2 lecture 8:..........................................................................................................................................64
Lecture 8:........................................................................................................................................................66
8.1 Access-Based Consumption....................................................................................................................66
Essential of sharing through companies.................................................................................................67
Essential of sharing through marketplaces.............................................................................................67
Platforms drive access-based growth.....................................................................................................67
8.2 How to react as a traditional business?..................................................................................................68
8.3 How to manage customers?...................................................................................................................69
Overcoming adoption barriers................................................................................................................69
Preventing misbehaviour........................................................................................................................69
,Reading 1 Lecture 1:
Key structure:
1. Examine the nature of the service
2. Differentiate the marketing of services from the marketing of physical goods and their facilitating services
3. Explain the characteristics of all services
4. Classify various services
1.1 Examine the nature of the service:
Definition: the service is “a deed, a performance, an effort”
Service often rely on physical products for their performance, also they can range from ordinary activities to unusual
ones.
Usually, services are not seen or considered unless they are poorly performed.
1.2 Differentiation between marketing of service and marketing
of physical goods:
Lynn Shostach distinguished between physical goods and services along a continuum from intangible dominant
services to tangible dominant physical goods.
Classification through the degree of tangibility – the
proportion of tangibles to intangibles in a product
determines whether a marketing offering is a good or
a service.
Criticism: This dichotomy isn’t true because service
and products are linked together in a complementary
way, so the classification is hard to do.
Indeed, many manufacturing firms have differentiated
their products by offering superior service (Apple).
1.3 Characteristics of a services:
IHIP Paradigm - Classical characteristics that describe common differences between typical services and typical
products:
Intangibility;
Produced and consumed simultaneously;
Variability or heterogeneity;
Perishable;
However, these 4 characteristics received different criticisms among which that these four differences are not unique
to all services.
Intangibility:
Definition: services can’t be seen, touched, held or put on a shelf, because they lack a physical existence or
form.
Intangibility is a state of being – customers can’t purchase physical ownership of an “experience”, “time” or a
“process”.
This state of being prevents customers from examining the services before their actual enactment.
Indeed, there is a greater degree of risk when purchasing a service than when a physical good.
, There are tactics that help the customers to examine the service (e.g. photos of the hairdresser
creation, or photo of the hotels’ rooms).
Inseparability:
Definition: the production and the consumption of the service performance occur simultaneously.
Inseparability suggests that interaction between the customer and the service provider must occur for the
service to happen.
The customer is an important co-producer of the service through the provision of information and
performance of specific tasks, customers help create the very product they “consume”.
Closer interaction between company and customer
Difficulties to separate the service from the service provider (the customer is purchasing the
skills and the knowledge of a particular individual)
Variability:
Definition: it is hard for a service organization to standardize the quality of its service performance. This led
to many quality control problems.
Perishability:
Definition: most services can’t be produced and stored before consumption, the exist only at the time of
their production.
Managing demand -> company to smooth the fluctuations of customers’ demand over the time uses different
techniques like price promotion, reservation and appointments system.
Another characteristic that is used to classify services is Rental/Access:
Rental/Access:
Definition: services do not involve transfer of ownership, they provide temporary ownership possession or
access.
Services in general have the traditional four characteristics plus rental/access in varying degrees -> services that share
the same characteristics, share also similar marketing strategies and tactics.
1.4 Classifications of services:
There are various classifications of services:
a. Classification based on services fields;
b. Classification based on services customers;
c. Lovelock’s classification;
d. Services marketing triangle;
Starting with the first classification, classification based on services fields, it is a classification of services in 10
industry.
The classification based on services customers, classified the types of customers the companies serve.
Consumer services: provided to customers who are purchasing for their own personal needs;
B2B services: provided to customers who are purchasing on behalf of their organizations;
The Lovelock’s classification is a first classification focuses on to (1) what or whom the service is directed and (2) the
nature of the service act.
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