2nd Edition
Essentials of
Published in 2012 by Pearson Education South Asia Pte Ltd 23/25 First Lok Yang Road, Jurong Singapore 629733
Publishing Director: Mark Cohen Project Editor: Chelsea Cheh Prepress Executive: Kimberly Yap
Pearson Asia Pacific offices: Bangkok, Beijing, Ho Chi Minh City, Hong Kong, Jakarta, Kuala Lumpur, Manila, Seoul, Singapore, Taipei, Tokyo
Printed in Singapore
4 3 2 1 15 14 13 12
ISBN
978-981-06-8618-5
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Brief Contents
Dedication About the Authors About the Contributors of the Cases Preface Acknowledgments v vii xi xxiii xxxv
Part I:
Chapter 1 Chapter 2 Chapter 3
4 34 66
Part II:
Chapter 4 Chapter 5 Chapter 6 Chapter 7
Developing Service Products: Core and Supplementary Elements Distributing Services through Physical and Electronic Channels Setting Prices and Implementing Revenue Management Promoting Services and Educating Customers
94
Part III:
Chapter 8 Chapter 9 Chapter 10 Chapter 11
Designing and Managing Service Processes Balancing Demand and Capacity Crafting the Service Environment Managing People for Service Advantage
224
Part IV:
Chapter 12 Chapter 13
Managing Relationships and Building Loyalty Complaint Handling and Service Recovery
358 394
Part V:
Chapter 14 Chapter 15
430 476
Part VI:
Glossary Credits Name Index Subject Index
Contents
Preface Acknowledgments xxiii xxxv
2
4
6
6 7
9 13
13 15
15
16 16 17 18
18 20
20 23
24
26 26 26 27 27
2.
34
36 37
37 38 38 49
49
50 50 52 53
Post-Purchase Stage
56
3.
66
68
68 70
Segmenting Service Markets Targeting Service Markets Positioning Services Using Positioning Maps to Plot a Competitive Strategy
72
74 74
76
76
79
82
82
83 86 88
94
96
98 99
99 100 101 101
102
102 103 104 105 105
106
107 108 110
113
113 115
5.
122
124
124
124
125 125 127 128
Place and Time Decisions Delivering Services in Cyberspace The Role of Intermediaries Distributing Services Internationally
129
129 132
133
135 137
139
140
142
142
6.
150
152
152
153
153 154 157 159
160
162 162 162 163
166
166 167 168
171
171 174 175 175 176 176 177
7.
188
190
190 191 191 192 192
Challenges of Services Communications Marketing Communications Planning The Marketing Communications Mix
192
192 193
195
195 196
197
198 198 202 208 209 213
213
224
226
228
228 231
231
232 233
Identifying Fail Points Fail-Proofing to Design Fail Points out of Service Processes Setting Service Standards and Targets Consumer Perceptions and Emotions in Service Processes Service Process Redesign to Improve Both Quality and Productivity Levels of Customer Participation Customers as Service Co-Creators Reducing Service Failures Caused by Customers Psychological Factors in Customer Self-Service What Aspects of SSTs Please or Annoy Customers? Managing Customers Reluctance to Change
243
245
247
247 248 248
Self-Service Technologies
250
251 252 253
9.
264
266
266 267
268 270
270 270
272 274
274
277
278 279 281 283 284
284
284
286
287
10.
296
298
298 299 300 301
302
302 304
306
307 311 312 312
314
314 314 315
11.
322
324
324
325
325 325 327
328
328 329 332
333
334 336 337 339 342 344
345
356
358
360
360 361 364
365 366
366 366 368 370
372
372 372 376
377
377 378 378 379
CRM: Customer Relationship Management What Does a Comprehensive CRM Strategy Include?
380
380
381
383 384
13.
394
396
396 397 399
Customer Responses to Effective Service Recovery Principles of Effective Service Recovery Systems
400
400 400
401
401 403 405 405
Service Guarantees
407
407 408 409 410
411
411 415
428
430
432 432
432
Identifying and Correcting Service Quality Problems Measuring and Improving Service Quality Learning from Customer Feedback
434
434 435
438
438
438
439 440 444
Hard Measures of Service Quality Tools to Analyze and Address Service Quality Problems
Root Cause Analysis: The Fishbone Diagram Pareto Analysis BlueprintingA Powerful Tool for Identifying Fail Points Assess Costs and Benefits of Quality Initiatives Determine the Optimal Level of Reliability Defining Productivity in a Service Context Measuring Productivity Service Productivity, Efficiency, and Effectiveness General Productivity Improvement Strategies Customer-Driven Approaches to Improve Productivity How Productivity Improvements Impact Quality and Value
445 447
447 448 449
Return on Quality
450
450 450
452
452 453 453
454
454 455 456
15.
476
478
478 480
480
481 482
483
483 488 489
490 493
502
504 510 514 519 528 538 547 555 559 564 568 578 588 590 599 603 605 617 624 627 634
The following cases are available for free download and class distribution on the Instructors Resource Website for courses that adopt Essentials of Services. Case 22 Case 23 Case 24 Case 25 Case 26 Case 27 Case 28 Case 29 Case 30 Case 31 Case 32 Case 33 Case 34 Susan Munro, Service Consumer Four Customers in Search of SolutionsCases A, B & C Jollibee Foods Corporation Hotel Imperial Primula Parkroyal Hotel: Marketing a Business and Resort Hotel in Malaysia Ginger: Smart Basics Using Technology to Revolutionalize the Library Experience of Singaporean Readers TLContact: Care Pages Service (A + B) Revenue Management at Prego Italian Restaurant Massachusetts Audubon Society Menton Bank Bossard Asia Pacific: Can It Make Its CRM Strategy Work? Accellion Service Guarantee