Services Marketing Management, Third Edition (Services Marketing Management)

280 Pages·2006·1.92 MB·English

by  Peter Mudie

Services Marketing Management
To Beatrice and Paul
– Peter
To Gervase, Phoebe and Hector
– Angela
Services Marketing Management
Third Edition
Peter Mudie and Angela Pirrie
AMSTERDAM •BOSTON •HEIDELBERG •LONDON •NEW YORK •OXFORD
PARIS •SAN DIEGO •SAN FRANCISCO •SINGAPORE •SYDNEY •TOKYO
Butterworth-Heinemann is an imprint of Elsevier
Butterworth-Heinemann is an imprint of Elsevier
Linacre House, Jordan Hill, Oxford OX2 8DP
30 Corporate Drive, Suite 400, Burlington, MA01803, USA
First published as The Management and Marketing of Services 1993
Second edition 1999
Third edition 2006
Copyright © 2006 Peter Mudie and Angela Pirrie. Published by Elsevier Ltd.
All rights reserved.
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British Library Cataloguing in Publication Data
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Library of Congress Cataloguing in Publication Data
Acatalogue record for this book is available from the Library of Congress
ISBN-13: 978-0-7506-6674-9
ISBN-10: 0-7506-6674-9
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06 07 08 09 10 10 9 8 7 6 5 4 3 2 1
Contents
Preface ix
Acknowledgements xi
1 Introducing services 1
1.1 ‘What is this thing called service?’ 1
1.2 Characteristics of services 3
1.3 The ‘7 Ps’ of services 5
1.4 Customer involvement and uncertainty 6
1.5 Expectations and perceptions of a service 7
1.6 Core and augmented service 9
1.7 The ‘McDonaldization’ of services 10
1.8 The downside of McDonaldization 11
1.9 Technology in services 12
1.10 Call centres 14
1.11 The trouble with service … 17
Summary 18
Appendix 1.1 Technology and the future of services 18
References 23
2 Organization for service 27
2.1 ‘Organization realities’ 27
2.2 Structure of organizations 30
2.3 Culture of organizations 34
2.4 Types of organization culture 34
2.5 Organizational climate 36
2.6 Defensive behaviour 36
2.7 Explanation for defensive behaviour 38
2.8 Organizing for service 39
2.9 Empowerment 40
2.10 Criticism of the new service managementschool of thought 40
2.11 The virtual organization 42
Summary 42
References 43
3 Design of the service 47
3.1 The concept of design 47
3.2 Service classification: a design issue 48
vi Contents
3.3 Objects of the service processes 52
3.4 Customer contact 52
3.5 Service blueprint 57
3.6 The 3 logics 61
Summary 62
Appendix 3.1 Aprocedure for blueprinting a service 62
References 63
4 The service setting 65
4.1 The service setting framework 65
4.2 Types of service setting 67
4.3 The role of the service setting 68
4.4 The service setting and consumer behaviour 69
4.5 Environmental dimensions of the service setting 71
4.6 Three service settings 77
Summary 82
References 83
5 Service quality 85
5.1 The quality challenge 85
5.2 Definitions of quality (and implications for service quality) 86
5.3 Standards 89
5.4 Hard and soft standards 90
5.5 The Gaps Model of Service Quality 90
5.6 SERVQUAL(what to measure) 92
5.7 The SERVQUALScale 94
5.8 Tools of quality 96
5.9 Quality programmes 104
5.10 Cost of quality 106
Summary 108
References 109
6 The service encounter 111
6.1 The essence of an encounter 111
6.2 Service encounter as theatre 112
6.3 Scripts 112
6.4 Emotional labour 116
6.5 The critical incident technique 119
6.6 Dysfunctional customers, deviant employees – an everyday
occurrence in the service encounter? 122
Summary 126
References 127
7 Managing people 131
7.1 Customer contact staff 131
7.2 Emotional labour 133
7.3 Empowerment 134
7.4 Recruitment 137
7.5 Orientation and socialization 140
Contents vii
7.6 Orientation 141
7.7 Gaining commitment from employees 143
7.8 Staff dissatisfaction 146
7.9 Staff turnover 150
7.10 Internal marketing 152
Summary 153
References 153
8 Demand and capacity management 157
8.1 The basic problem: perishability 157
8.2 Service capacity: resources and assets 159
8.3 Service demand 159
8.4 Managing demand and capacity 160
8.5 Aligning demand and capacity: the options 162
8.6 Yield management (also known as revenue management) 164
8.7 Waiting and queuing 169
8.8 Queuing: a behavioural perspective 172
Summary 175
References 175
9 Service communications 177
9.1 Integrated marketing communications 177
9.2 The role for communications 180
9.3 Services communication 180
9.4 Key communication variables 182
9.5 Corporate identity 188
9.6 Branding services 192
9.7 Advertising the service 195
Summary 198
References 199
10 Performance measurement 201
10.1 Productivity 201
10.2 The productivity framework 204
10.3 Improving productivity 206
10.4 Consumer participation and productivity 208
10.5 White-collar productivity 209
10.6 Service productivity as a relationship between input and output 213
10.7 Customer retention and lifetime value 215
Summary 221
Appendix 10.1 Customer retention 222
Appendix 10.2 The customer volume effect 225
References 226
11 Relationship marketing 227
11.1 Atwenty-first century approach to marketing 227
11.2 What is relationship marketing? 228
11.3 Why follow a relationship marketingapproach? 229
11.4 Benefits to the customer 231
viii Contents
11.5 Building a relationship marketing strategy 232
11.6 Relationship marketing strategies 234
Summary 237
References 237
12 Monitoring and evaluating the service 239
12.1 Customer satisfaction evaluation 239
12.2 Customer complaints 246
12.3 Service recovery 254
12.4 Effective complaint-handling procedures 256
12.5 Guarantees 259
12.6 Customer defections 262
Summary 262
References 263
Index 265
Preface
Whilst largely retaining the overall structure of earlier editions, the third edition
represents a thorough update and revamp of the content. For example, the impact of
call centres, the significance of technology in the delivery of service and the trend
toward the McDonaldization of services. Much more attention has been given to
the importance of organizational climate and a completely new chapter has been
devoted to relationship marketing. Greater prominence is attached to fundamental
concepts, such as emotional labour, and techniques, for example, yield management.
Service fairness and recovery and the law for services is the subject of extensive
discussion in Chapter 12.
We continue to acknowledge, much more so in this edition, the difficulties and
problems surrounding the management and marketing of services. Typical of this
concern is reference to customer and employee feelings of frustration leading to acts
of revenge and sabotage. We, therefore, challenge our readers to think more critically
of the management of services, not least because of the growing reference to this area
in our everyday lives. Finally, throughout the book we hope you remain conscious
of the three parties to a service encounter – management, employees, customers –
and all that may involve.
Peter Mudie
Angela Pirrie