soundofheaven.info: Services Marketing: People, Technology, Strategy (7th Edition) ( ): Christopher H Lovelock, Jochen Wirtz: Books. Description of service marketing pdf free ebook. SERVICES MARKETING People , Technology, Strategy SEVENTH EDITION Christopher Lovelock Jochen Wirtz. John Reid Blackwell, “Altria to Test Market New Nicotine Product in Virginia,” is based on Christopher H. Lovelock and Jochen Wirtz, Services Marketing, 7th ed. soundofheaven.info (Accessed January 7, ).
|Language:||English, Spanish, Indonesian|
|Genre:||Politics & Laws|
|ePub File Size:||23.88 MB|
|PDF File Size:||19.15 MB|
|Distribution:||Free* [*Regsitration Required]|
Mar 11, We've designed Services Marketing, Seventh Edition to complement the . With gratitude and in loving memory of Christopher Lovelock. Jan 9, PDF | Creating and marketing value in today's increasingly service and knowledge-intensive Christopher Lovelock ntroduction to services marketing . .. Services Marketing: People, Technology, Strategy, 7th edition. Eighth Edition SERVICES MARKETING People Technology Strategy Jochen Wirtz Christopher Lovelock:RUOG 6FLHQWLÀF Published by World Scientiic.
Rapid developments in information technology are permitting service businesses to make radical improvements in business processes and even completely reen- gineer their operations. She is hard to ignore. Arnold Vila Operations Specialist: Part I Understanding Service Products, Consumers, and Markets Part I of the book lays the building blocks for studying services and learning how to become an efective services marketer. Personality tests help to identify traits relevant for a particular job.
Pearson Education, Inc. All rights reserved. This book, or parts thereof, may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system now known or to be invented, without written permission from the publisher.
For photocopying of material in this volume, please pay a copying fee through the Copyright Clearance Center, Inc. In this case permission to photocopy is not required from the publisher. Desk Editor: Creating Value in the Service Economy 4 2.
Understanding Service Consumers 50 3. Developing Service Products and Brands 5. Service Pricing and Revenue Management 7.
Designing Service Processes 9. Balancing Demand and Capacity Crafting the Service Environment Managing Relationships and Building Loyalty Improving Service Quality and Productivity Crossselling Professional Services Case 4 Uber: Mahalee Goes to London: Creating Value in the Service Economy 2.
Understanding Service Consumers 3. Developing Service 8. Designing Service Distributing Services 9. Balancing Demand and Crafting the Service 6. Service Pricing and Environment Revenue Management Managing People for 7. Be familiar with the characteristics of services and the distinctive marketing challenges they pose.
You use an array of services every to ind skilled and motivated employees, to keep costs day, although some — such as talking on the phone, down and make a proit, or to satisfy customers, who, using a credit card, riding a bus, downloading music, they sometimes grumble, have become unreasonably using the Internet, or withdrawing money from an demanding.
ATM — may be so routine that you hardly ever notice them unless something goes wrong. Other service Fortunately, there are service companies that know purchases may involve more thought and be more how to please their customers while also running a memorable — for instance, booking a cruise vacation, productive and proitable operation, stafed by pleasant getting inancial advice, or having a medical examination.
A typical university is a complex service organization that ofers You probably have a few favorite service irms you like not only educational services, but also libraries, student to patronize.
Have you ever stopped to think about the accommodation, healthcare, athletic facilities, museums, way they succeed in delivering services that meet and security, counseling, and career services. Your use of these services In addition to studying key concepts, organizing is an example of service consumption at the individual frameworks, and tools of services marketing, you or business-to-consumer B2C level.
From Organizations use a wide array of business-to-business the experiences of other irms, you can draw important B2B services, which usually involve purchases on a lessons on how to succeed in increasingly competitive much larger scale than those made by individuals or service markets.
Nowadays, organizations outsource more and more tasks to external service providers in order to focus on their core business. You too may not always be delighted with your service experiences; in fact, at times, you may be very disappointed.
Both individual and corporate consumers complain about broken promises, poor value for money, rude or incompetent personnel, inconvenient service hours, bureaucratic procedures, wasted time, malfunctioning self-service technologies SSTs , complicated websites, a lack of understanding of their needs, and various other problems. Suppliers of services, who oten face stif competition, appear to have a very diferent set of concerns. Many Figure 1. In exchange for money, time, and effort, service customers expect value from access to labor, skills, expertise, goods, facilities, networks, and systems.
Key implications of these features Key Trends include the following: Part I Understanding Service Products, Consumers, and Markets Part I of the book lays the building blocks for studying services and learning how to become an efective services marketer.
However, the 4 Ps are expanded to take into account the characteristics of services that are diferent from goods. In services marketing, much communication is educational in nature to teach customers how to efectively move through service processes. It covers the additional 3 Ps that are unique to services marketing.
Very oten, customers are involved in these processes as co-producers, and well- designed processes need to account for that.
Marketing strategies for managing demand involve smoothing demand luctuations, inventorying demand through reservation systems, and formalized queuing. Managing customer waiting is also explored in this chapter. Hence, service irms devote a signiicant amount of efort to recruit, train, and motivate employees. How to get all this right is explained using the Service Talent Cycle as an integrative framework.
Service guarantees are explored as a powerful way of institutionalizing service recovery and as an efective marketing tool to signal high-quality service. Part V Striving for Service Excellence Part V focuses on how to develop and transform a irm to achieve service excellence.
Customer feedback systems are discussed as an efective tool for systematically listening to and learning from customers. CEO of Starbucks James l. Heskett, W. Earl Sasser, Jr. The right people are your most important asset. Leonard L. New York: The Free Press, , pp.
Employees working in these customer-facing jobs span the boundary between inside and outside the organization. They are expected to be fast and efficient in executing opera- tional tasks as well as courteous and helpful in dealing with customers.
In fact, frontline employees are a key input for delivering service excellence and competitive advantage. Organizations that display this commitment understand the economic payoff from investing in their people. These firms are also characterized by a distinctive culture of service leadership and role mod- eling by top management. It is probably harder for competitors to duplicate high- performance human assets compared to any other corporate resource.
Service Personnel as a Source of Customer Loyalty and Competitive Advantage Almost everybody can recount some horror story of a dreadful experience they have had with a service business. If pressed, many of these same people can also recount a really good service experience. Service personnel usually feature prominently in such dramas. They either feature in roles as uncaring, incompetent villains or as heroes who went out of their way to help customers by anticipating their needs and resolving prob- lems in a helpful and empathetic manner.
Often, the service employees is the most visible ele- ment of the service, delivers the service, and significantly determines service quality. Frontline employees and the service they provide often are a core part of the brand. The employees determine whether the brand promise is delivered. Service personnel often are crucially important for generating sales, cross-sales, and up-sales.
Frontline employees have heavy influence on the pro- ductivity of frontline operations. This and many other success stories of employees showing discretionary effort that made a difference have reinforced the truism that highly motivated people are at the core of service excellence. The intuitive importance of the effect of service employees on customer loyalty was integrated and formalized by James Heskett and his colleagues in their pioneer- ing research on what they call the service profit chain Chapter 15 illustrates the chain in more detail.
It demonstrates the chain of relationships among 1 employee satis- faction, retention, and productivity; 2 service value; 3 customer satisfaction and loyalty; and 4 revenue growth and profitability for the firm. The Frontline in Low-Contact Services Most research in service management and many of the best practice examples featured in this chapter relate to high-contact services.
This is not entirely surpris- ing, of course, because the people in these jobs are so visible. They are the actors who appear front-stage in the service drama when they serve the customer. So, it is obvious why the frontline is so crucially important to customers and therefore to the competitive position of the firm.
Many routine transactions are now conducted without involving frontline staff at all. In light of these trends, are frontline employees really all that important? Most people do not call the service hotline or visit the service center of their cell phone service provider, or their credit card company more than once or twice a year. Also, it is likely that these in- teractions are not about routine transactions, but about service problems and special requests.
However, these customer- facing employees work in some of the most de- manding jobs in service firms. Perhaps you have worked in one or more of such jobs, which are particularly common in the health care, hospitality, retailing, and travel industries. They link the in- side of an organization to the outside world, operating at the boundary of the company.
Because of the position they occupy, boundary spanners often have conflicting roles. In particular, customer contact personnel must attend to both operational and marketing goals. This multiplicity of roles in service jobs often leads to role conflict and role stress among employees,7 which we will discuss next.
Sources of Conflict There are three main causes of role stress in frontline positions: Customer contact personnel must attend to both op- erational and marketing goals. They are expected to delight customers, which takes time, yet they have to be fast and efficient at operational tasks. The problem is especially acute in organizations that are not customer oriented. In these cases, staff frequently has to deal with customer needs and requests that are in conflict with organizational rules, procedures, and productivity requirements.
Service staff may have conflicts between what their job re- quires and their own personalities, self-perception, and beliefs. For example, the job may require staff to smile and be friendly even to rude customers see the section on jaycustomers in Chapter These traits are most likely found in people with high self-esteem.
However, many front- line jobs are often perceived as low-level jobs that require little education, offer low pay, and often lack prospects.
Conflicts between customers are not uncommon e. This is a stressful and unpleasant task, as it is difficult and often impossible to satisfy both sides. In short, frontline employees may perform triple roles: In combination, playing such roles often leads to role conflict and role stress for employees.
We call this emotional labor, which in itself is an important cause of stress. Frontline staff are expected to be cheerful, genial, compassionate, sin- cere, or even self-effacing—emotions that can be conveyed through facial expressions, gestures, tone of voice, and words.
Although some service firms make an effort to recruit employees with such characteristics, there will inevitably be situations when employees do not feel such positive emotions, yet are required to suppress their true feelings in order to conform to customer expectations. A flight attendant was approached by a passenger with: This puts considerable pres- sure on its frontline employees.
So the staff are really under a lot of pressure. We have a motto: The challenge is to help our staff deal with difficult situa- tions and take the brickbats. This will be the next thrust of our training programs. Rapid developments in information technology are permitting service businesses to make radical improvements in business processes and even completely reen- gineer their operations.
These developments sometimes result in wrenching changes in the nature of work for existing employees. In some instances, de- ployment of new technology and methods can dramatically change the nature of the work environment see Service Perspective In other instances, face- to-face contact is replaced by use of the Internet or call center-provided services, and firms have redefined and relocated jobs, created new employee profiles for recruiting purposes, and sought to hire employees with a different set of qualifications.
As a result of the growing shift from high-contact to low-contact services, a large and increasing number of customer contact employees work by telephone or email, never meeting customers face to face. At best, when well designed, such jobs can be rewarding, and often offer par- ents and students flexible working hours and part-time jobs some 50 percent of call center workers are single mothers or students.
In fact, it has been shown that part-time workers are more satisfied with their work as CSRs than full-time staff, and perform just as well. There is also sig- nificant stress from customers themselves, because many are irate at the time of contact. It is no wonder then that business is booming for the Operations Workforce Optimization OWO unit that was recently acquired by Accenture, the global consulting firm.
The consulting and software company adapted time-motion concepts developed for manufac- turing operations to service businesses, where it breaks down tasks such as working a cash reg- ister in a supermarket into quantifiable units and develops standard times to complete each unit or task. The firm then implements software to help its clients to monitor employee performance. Employee responses to this approach can be negative. Interviews with cashiers of that large retailer suggest that the system has spurred many to hurry up and experience increased stress levels.
Gunter, 22 years old, says he recently told a longtime customer that he could not chat with her anymore as he was being timed. They are not as friendly. I know elderly people have a hard time making change because you lose your ability to feel. All too often, poor working environments translate into dreadful service, with employees treating customers the way their managers treat them. Businesses with high employee turnover frequently are stuck in what has been termed the cycle of failure.
However, if the working environment is managed well, there is potential for a virtuous cycle in service employment, the cycle of success. One solution takes the form of simplifying work routines and hiring workers as cheaply as possible to perform repetitive work tasks that require little or no training. Among consumer services, department stores, fast-food restaurants, and call center operations often are cited as examples in which this problem abounds although there are notable exceptions.
The cycle of failure captures the implications of such a strategy, with its two concentric but interac- tive cycles: The employee cycle of failure begins with a narrow design of jobs to accommodate low skill levels, an emphasis on rules rather than service, and the use of technology to control quality. A strategy of low wages is accompanied by minimal effort in selection or training. Consequences include bored employees who lack the ability to respond to customer problems, who become dissatisfied, and who develop a poor service attitude.
Outcomes for the firm are low service quality and high employee turnover. Because of weak profit margins, the cycle repeats itself with the hiring of more low-paid employees to work in this unrewarding atmosphere.
The customer cycle of failure begins with heavy organizational emphasis on attracting new customers who become dissatisfied with employee performance and the lack of continuity implicit in continually changing faces. These cus- tomers fail to develop any loyalty to the supplier and turn over as rapidly as the staff.
This situation requires an ongoing search for new customers to main- tain sales volume. The departure of discontented customers is especially disturbing in light of what we now know about the greater profitability of a loyal custo- mer base.
Schlesinger and James L. James Heskett, Earl Sasser, and Leonard Schlesigner argue that companies need to measure employee lifetime value, just as they seek to calculate cus- tomer lifetime value. Three key cost variables often are omitted: Also ignored are two revenue variables: You might just become the unknowing victim of a malicious case of service sabotage, such as having something unhygienic added to your food. There actually is a fairly high incidence of service sabotage by frontline employees.
Lloyd Harris and Emmanuel Ogbonna found that 90 percent of them accepted that frontline behavior with malicious intent to reduce or spoil the service—service sabotage is an everyday occurrence in their organizations.
Harris and Ogbonna classify service sabotage along two dimensions: Covert behaviors are concealed from customers, whereas overt actions are purposefully displayed often to coworkers as well as customers. Routinized behaviors are ingrained into the culture, whereas intermittent actions are sporadic and less common. Some true examples of service sabotage classified along these two dimensions appear in Figure You know—if the guest is you or I.
Getting your own back evens the score. There are in a hurry, you slow it right down and drag it right out and if lots of things that you do that no one but you will ever know they want to chat, you can do the monosyllabic stuff. And —smaller portions, dodgy wine, a bad beer—all that and you all the time you know that your mates are round the corner serve with a smile!
Sweet revenge! I mean, really putting them down is really nothing new in that. They are always complaining. So to get back at the apologies.
Intermittent —Front-of-House Supervisor Before you know it, managers and all have cottoned on and this poor chap is being met and greeted every two steps!
Lloyd C. Used with permission. The Cycle of Mediocrity The cycle of mediocrity is another potentially vicious employment cycle see Figure You are most likely to find it in large, bureaucratic organizations. Glynn and J. In such environments, service delivery standards tend to be prescribed by rigid rule- books and oriented toward standardized service, operational efficiencies, and prevention of both employee fraud and favoritism toward specific customers.
Job responsibilities tend to be narrowly and unimaginatively defined, tightly categorized by grade and scope of respon- sibilities, and further rigidified by union work rules. Salary increases and promotions are largely based on longevity. Successful performance in a job often is measured by absence of mistakes, rather than by high productivity or outstanding customer service.
Training focuses on learning the rules and the technical aspects of the job, not on improving human inter- actions with customers and coworkers. Because there are minimal allowances for flexibility or employee initiative, jobs tend to be boring and repetitive.
However, in contrast to the cy- cle of failure, most positions provide adequate pay and often good benefits combined with high security. Thus, employees are reluctant to leave. This lack of mobility is compounded by an absence of marketable skills that would be valued by organizations in other fields. Customers find such organizations frustrating to deal with. Faced with bureaucratic hassles, lack of service flexibility, and unwillingness of employees to make an effort to serve them well, customers can become resentful.
Employees may then protect themselves through such mechanisms as with- drawal into indifference, playing overtly by the rulebook, or countering rudeness with rudeness. The Cycle of Success Some firms reject the assumptions underlying the cycles of failure or mediocrity. Instead, they take a longer term view of financial performance, seeking to prosper by investing in their people in order to create a cycle of success Figure As with failure or mediocrity, success applies to both employees and customers.
Attractive compensation packages are used to attract good quality staff. Broadened job designs are accompanied by training and empowerment practices that allow frontline staff to control quality. With more focused recruitment, intensive training, and better wages, employees are likely to be happier in their work and to provide higher quality, customer-pleasing service.
Regular customers also appreciate the continuity in service relationships resulting from lower turnover and so are more likely to remain loyal.
Profit margins tend to be higher, and the organization is free to focus its marketing efforts on reinforcing customer loyalty through customer retention strategies. These strategies usually are much more profitable than strategies for attracting new customers. A powerful demonstration of a frontline employee working in the cycle of success is waitress Cora Griffin featured in the opening vignette of this chapter. Even public service organizations in many countries are increasingly working toward creating their cycles of success, too, and offer their users good quality service at a lower cost to the public.
Figure Motivate and Energize Your People 1. Service Delivery Teams: We will then discuss the recommended practices one by one in this section. Employee satisfaction should be seen as necessary but not sufficient for having high performing staff. For in- stance, a recent study showed that employee effort was a strong driver of customer sat- isfaction over and above employee satisfaction.
The right people are your most impor- tant asset. Hiring the right people includes competing for applications from the best em- ployees in the labor market, then selecting from this pool the best candidates for the specific jobs to be filled. To be able to select and hire the best people, they first have to apply for a job with you and then accept your job offer over others the best people tend to be selected by several firms.
Furthermore, the compensation package cannot be below average—top people ex- pect above average packages. In our experience, it takes a salary in the range of the 60th to 80th percentile of the market to attract top performers to top companies.
However, a firm does not have to be a top paymaster, if other important aspects of the value propo- sition are attractive. In short, understand the needs of your target-employees and get your value proposition right. For example, The Walt Disney Company assesses prospective em- ployees in terms of their potential for on-stage or backstage work.
On-stage workers, known as cast members, are assigned to those roles for which their appearance, personalities, and skills provide the best match. What makes outstanding service performers so special? Often it is things that cannot be taught. It is the qualities intrinsic to the people and qualities they would bring with them to any employer.
As one study of high performers observed: The same is true for charm, for detail orienta- tion, for work ethic, for neatness. But by and large, such Source: Tools to Identify the Best Candidates Excellent service firms use a number of approaches to identify the best candidates in their applicant pool.
These approaches include interviewing applicants, observing behavior, conducting personality tests, and providing applicants with a realistic job preview. To improve hiring decisions, successful re- cruiters like to employ structured interviews built around job requirements and to use more than one interviewer. People tend to be more careful in their judgments when they know that another individual is also evaluating the same applicant. The hiring decision should be based on the behavior that recruiters observe, not just the words they hear.
As John Wooden said: Too often, the big talkers are the little doers. Also, past behavior is the best pre- dictor of future behavior: Hire the person who has won service excellence awards, received many complimentary letters, and has great references from past employers.
Personality tests help to identify traits relevant for a particular job. For example, willingness to treat customers and colleagues with cour- tesy, consideration, and tact; perceptiveness of customer needs; and ability to commu- nicate accurately and pleasantly are measurable traits. Hiring decisions based on such tests tend to be accurate.
For example, the Ritz-Carlton Hotels Group uses personality profiles on all job applicants. Employees are selected for their natural predisposition for working in a service context. Inherent traits such as a ready smile, a willingness to help others, and an affinity for multitasking enable them to go beyond learned skills. An appli- cant to Ritz-Carlton shared about her experience of going through the personality test for a job as a junior-level concierge at the Ritz-Carlton Millenia Singapore.
Her best advice: But I had to support it with real life examples. This, at times, felt rather in- trusive. To answer the first question for instance, I had to say a bit about the person I had helped—why she needed help, for example.
The test forced me to recall even insignificant things I had done, like learning how to say hello in different languages which helped to get a fix on my character. Here, applicants enter their test responses to a Web-based questionnaire, and the prospective employer receives the analysis, the suitability of the candidate, and a hiring recommendation. Developing and administering such tests has become a sig- nificant service industry in its own right. A leading global supplier of such assess- ment products, the SHL Group, serves some 15, organizations in 30 languages in over 50 countries.
Have a look at its website at www. This approach allows some candidates to withdraw if they determine the job is not suitable for them. Many service companies adopt this approach.
Here, managers can observe candi- dates in action, and candidates can assess whether they like the job and the work environment. Train Service Employees Actively If a firm has good people, investments in training can yield outstanding results. Service champions show a strong commitment to training in words, dollars, and ac- tion.
Humor is the key. Southwest looks for people with other-oriented, outgoing personalities, individuals who become part of an extended family of people who work hard and have fun at the same time. It is perhaps at its most innovative in the selection of flight attendants. A day-long visit to the company usually begins with applicants gathered in a group.
Recruiters watch how well they interact with each other another chance for such observation will come at lunchtime. Then comes a series of personal interviews. Based on input from supervisors and peers in a given job category, interviewers target 8 to 10 dimensions for each position.
The basics that are clearly explained in detail in this book. This way I find that I am able to make step-by-step manageable changes while I build my business. This new edition is updated, very well written, easy to understad but at the same time deep enough for a mor serius learning. Hardcover Verified Purchase. Thanks for saving me piles of money on books through my college years. I would recommend you updating the book, it was falling apart. I had to tape it and I struggled a lot while doing homework.
Excellent text. It is a very good and updated knowledge about new service concept. See all 54 reviews. What other items do customers buy after viewing this item? People, Technology, Strategy Hardcover. People, Technology, Strategy 7th Edition Hardcover. International Marketing Irwin Marketing Hardcover.
Pages with related products. See and discover other items: There's a problem loading this menu right now. Learn more about Amazon Prime. Get fast, free shipping with Amazon Prime. Back to top. Get to Know Us. Amazon Payment Products. English Choose a language for shopping.
Amazon Music Stream millions of songs. Amazon Advertising Find, attract, and engage customers. Amazon Drive Cloud storage from Amazon.
Alexa Actionable Analytics for the Web. AmazonGlobal Ship Orders Internationally. Amazon Inspire Digital Educational Resources. Amazon Rapids Fun stories for kids on the go. Amazon Restaurants Food delivery from local restaurants.
ComiXology Thousands of Digital Comics. DPReview Digital Photography. East Dane Designer Men's Fashion. Shopbop Designer Fashion Brands. Deals and Shenanigans. PillPack Pharmacy Simplified.