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Faculty of Business and Law
aCADEMIC YEAR 2018/19
assessment brief
Module Code:
UMKD6R-15-3
Module Title:
Marketing Services
Submission Deadline:
Wednesday 13th March 2019
Assessment Component
Coursework
Assessment Weighting:
50 per cent of total module mark
Marking and feedback deadline (20 working days)
10th April 2019
Assessment Instructions
This is an individual case-based assignment that requires you to
answer a question in relation to the case study below:
‘Woodchurch Furniture’.
Question: Using services marketing theory, analyse and explain
Woodchurch’s loss of customersand recommendhow it might
improve the customer experience. (100 marks)
General Guidance
· The coursework requires you to select and apply theories,
frameworks, and concepts from the first six study units of the
module.
· It is your decision as to what theories/frameworks/concepts to
use to inform your answer. There is no recommended minimum
or maximum number, but generally, quality of application is
more important than the quantity of frameworks applied.
· Remember that the requirement is to apply rather than
describe theory.
· You may use subheadings in your answer, but avoid excessive
use of bullet points.
· Do not reiterate passages from the case study. Obviously, you
will need to refer to the case, but do this as succinctly as you
can.
· Evidence of relevant reading beyond the lecture slides, with
appropriate application of this reading, will be rewarded.
Besides textbooks, you may want to explore relevant articles
from Journal of Services Marketing,Journal of Service
Research, or Service Industries Journal. Other journals will
haverelevant articles, but, as implied by their titles, these three
focus on services.
· Include a title page, contents, and references. There is no need
for an abstract or executive summary. Please number your
pages.
Marking Criteria
Please see the grid below:
Criteria
Grading
Analysis (35%)
Recommendations (35%)
Structure (20%)
Literacy, presentation, referencing (10%)
80-100 PASS
Exceptional
Insightful analysis with originality of thought. Identifies
underlying issue(s). Excellent application of theory.
Demonstrates excellent integration of relevant literature from
outside the module reading list.
Highly appropriate, with originality of thought. Consistent with
issues raised in the analysis. Exceptional clarity and detail.
Supported wherever possible by theory / literature.
Exceptional organization and flow of material with excellent
connections between ideas. Introduction is specific and
signposts. Conclusion synthesises and may highlight
implications of recommendations.
Exceptional standard of literacy and presentation. Near faultless
referencing.
70-79 PASS
Excellent
Insightful analysis. Identifies underlying issue(s). Excellent
application of theory. Demonstrates excellent integration of
relevant literature from outside the module reading list.
Excellent and appropriate, with some originality of thought.
Consistent with issues raised in the analysis. Excellent clarity
and detail. Supported wherever possible by theory / literature.
Excellent organization and flow of material. Ideas are well
connected. Introduction is specific and signposts. Conclusion
synthesises and may highlight implications of recommendations.
Excellent standard of literacy and presentation. Referencing is
excellent but there may be one or two slips.
60-69 PASS
Very good / good
Good analysis. Identifies underlying issue(s) though may not
discuss in depth. Good application of theory. Demonstrates
good integration of relevant literature, with some from outside
the module reading list.
Good and generally appropriate. Largely consistent with issues
raised in the analysis. Good clarity and detail. Some
recommendations supported by theory / literature.
Good organization and flow of material with ideas that are
mostly well connected. Introduction is largely contextualised
and signposts. Conclusion provides a good summary.
Good standard of literacy and presentation. Just a few errors.
Referencing is good, though there may be a few errors or
omissions.
50-59 PASS
Competent
Competent analysis. May miss underlying issue(s). Reasonable
application of theory though not always systematic or accurate.
Evidence of reading beyond the lecture slides.
Competent and generally appropriate. There may be
inconsistencies with issues raised in the analysis. Some
recommendations lack clarity and detail. Limited theoretical
support.
Competent organization of material but flow may not always be
logical. Ideas not always connected. Introduction is general
with limited signposting. Conclusion provides an incomplete
summary.
Competent standard of literacy and presentation. Referencing is
competent but there may be several errors or omissions.
40-49 PASS
Adequate
Adequate analysis. Misses underlying issue(s). Adequate
application of theory but not systematic and with evidence of a
lack of understanding in places. No evidence of reading beyond
lecture slides.
Adequate though not all appropriate. A lack of consistency with
the analysis. A substantial lack of clarity and detail. Limited or
no theoretical support.
Some attempt to structure the report but not always effective.
Ideas often unconnected. Introduction is superficial with
limited/no signposting. Conclusion is weak or absent.
Adequate literacy and presentation but with several areas of
weakness. Many instances of incorrect or missing references.
35-39 FAIL
Inadequate
Superficial analysis. Misses underlying issue(s). Limited and
unsystematic application of theory, demonstrating a lack of
understanding. No evidence of reading beyond the lecture
slides.
Inadequate and with limited appropriateness. A lack of
consistency with the analysis. A substantial lack of clarity and
detail. No theoretical support.
Vague structure with little or no logic to the flow of material.
Ideas unconnected. Introduction and conclusion are superficial
or absent.
Inadequate literacy and presentation, with substantial areas of
weakness. Many instances of incorrect or missing references.
Significantly under or over word count.
0-34 FAIL
Poor
Poor analysis. Misses underlying issue(s). Very limited and
unsystematic application of theory, demonstrating a lack of
understanding. No evidence of reading beyond the lecture
slides.
Very few, and largely inappropriate, recommendations. A lack
of consistency with the analysis. A substantial lack of clarity
and no detail. No theoretical support.
Very disorganized with no logic to the flow of material. Poor
connections between ideas. Introduction and conclusion are
superficial or absent.
Poor literacy and presentation. Many instances of incorrect or
missing references. Significantly under or over word count.
Formative feedback and Support
Formative feedback
Formative feedback provides opportunities to reflect on your
ongoing work and preparation for your assignment. Time will be
set aside in every lecture prior to the submission date for you to
ask questions and receive feedback about the assignment. If you
prefer not to ask your question aloud in the lecture, you can
email it in advance to the module leader. Weekly tutorial tasks
are designed to give you the opportunity to apply theory that
you may choose to use in your coursework, thus giving you the
opportunity to receive formative feedback in class. In addition,
a ‘frequently asked questions’ document will be made available
on Blackboard and updated regularly.
Formatting
Please use the following file format: Microsoft Word file with a
.doc or .docx file extension. We cannot ensure that other
formats are compatible with markers’ software.
All work should be word processed in 12-point font Times New
Roman or Arial and single spaced. Please number your pages.
The first page of your coursework must include:
· Your student number
· The module name and number
· Your word count
Word Limit
The maximum word limit for this coursework is 2,500.
· This word count includes everything in the main body of the
text (including headings, tables, citations, quotes, lists, etc.).
· References, title page, contents page, and appendices are NOT
included in the word count.
· There is no direct penalty for exceeding the word count, but
the marker WILL stop reading once the maximum word limit
has been reached and nothing further will be taken into account
in the allocation of marks.
You can view the UWE word count policy here:
http://www1.uwe.ac.uk/aboutus/policies
Referencing:
Please adhere to the principles of good academic practice and
ensure you reference all sources used when developing your
assessment, using the UWE Harvard system. Failure to properly
reference your work to original source material can be grounds
for the assessment offence of plagiarism and may result in
failure of the assessment or have more serious implications.
For further guidance on correct referencing go to:
http://www1.uwe.ac.uk/students/studysupport/studyskills/refere
ncing.aspx
Details of what constitutes plagiarism and how to avoid it can
be found here:
http://www1.uwe.ac.uk/students/studysupport/studyskills/readin
gandwriting/plagiarism.aspx
For general guidance on how to avoid assessment offences see:
http://www1.uwe.ac.uk/students/academicadvice/assessments/as
sessmentoffences.aspx
Instructions for submission
You must submit your assignment before the stated deadline by
electronic submission through Blackboard. Notification that the
electronic submission portal is open for your assignment is
displayed (usually two weeks before the submission date) in the
Coursework tab in myUWE, the Coursework tab in Blackboard
and via an announcement in the Blackboard course.
Please allow sufficient time to upload your assignment, noting
that the system becomes busier and slower as the deadline
approaches. Only your final upload will be counted. Ensure all
your information is submitted at one attempt to avoid
‘overwriting’ your intended submission. Always check and
retain your receipts.
Late submission in the 24 hours following the deadline will be
accepted but the assignment mark will be capped at 40%.
Submissions after 24 hours will not be accepted. For full
guidance on online submission through Blackboard, see:
http://info.uwe.ac.uk/online/Blackboard/students/guides/assign
ments/default.asp
Submissions of coursework by any other method (including a
paper copy, on disk or by email) are NOT permissible for this
module unless specifically agreed in advance of the submission
date.
Before submitting your work, please ensure that:
· You have proof read you work thoroughly to ensure your work
is presented appropriately
· You have addressed all the required elements of the
assessment
· You have referenced in accordance with the guidance provided
· You have addressed each of the marking criterion
· The submission is in the correct format
Final feedback and marks release
Students will normally receive marks and feedback on their
submission within 20 working days of the submission deadline
(not including any public holidays or university closure days).
Any delay in returning students’ work will be communicated by
the module leader via Blackboard. Feedback on this module is
not limited to the written comments you will receive on
individual written assessment submissions.
Feedback and marks for this module will be available by 10th
April 2019.
For further guidance on feedback, please refer to the module
handbook.
Further Guidance and Support
General guidance on study skills is available at:
http://www1.uwe.ac.uk/students/studysupport/studyskills.aspx
Specific study skills pages relating to this module include:
Writing skills:
https://www1.uwe.ac.uk/students/studysupport/studyskills/readi
ngandwriting/writing.aspx
Support from the FBL Academic Success Centre:
http://www1.uwe.ac.uk/bl/bbs/aboutus/studentexperience/acade
micsupportcentre.aspx
Guidance on UWE assessment regulations and terminology:
http://www1.uwe.ac.uk/students/academicadvice/assessments/as
sessmentsguide.aspx
Guidance on using the library:
http://www1.uwe.ac.uk/library/usingthelibrary.aspx
Personal Circumstances
If you are experiencing difficulties in completing a piece of
assessment on time due to unexpected circumstances (for
example illness, accident, bereavement), you should seek advice
from a Student Support Adviser at the earliest opportunity.
Please note the module leader cannot grant personal
circumstances or extensions.
Appointments with a student adviser can be made via an
Information Point or online at:
http://www1.uwe.ac.uk/students/academicadvice/studentadviser
s.aspx
The Student Support Adviser will advise as to whether you
should submit an application for ‘Personal Circumstances
(PCs)’, how to do so and what evidence is required to support
the application.
Further details on ECs can be found here:
http://www1.uwe.ac.uk/students/academicadvice/assessments/pe
rsonalcircumstances.aspx
Woodchurch Furniture
We are a medium-sized UK firm that designs and manufactures
functional, but aesthetically pleasing, furniture. Our target
market includes small, office-based businesses, and
independent, premium restaurants and hotels. In the time since
our founding in 1990, we have built a reputation for high
quality and innovative products.
In the period from 2008 to 2010, with the UK in the grip of a
recession, our revenues began to fall. Many of our target
audience regarded high quality furniture as a luxury and
switched to cheaper, and in our opinion inferior, furniture.
While we did our best to reduce our costs and prices, we could
not match the prices of imported, mass-produced furniture. In
an effort to increase our sales revenue, we decided to introduce
a furniture ‘repair and care’ service. The service includes
repairs to damaged furniture, maintenance work to prolong the
life of furniture, and cleaning and re-upholstery of chairs. We
offer this service as an annual contract for our customers. This
comprises twice-yearly visits (we call them ‘audits’) to inspect
furniture and carry out any required maintenance. In addition,
customers can call us, when necessary, for emergency repairs.
Initially, many of our customers signed up for this service. They
were pleased to have their furniture cared for by the firm that
manufactured it. However, overall, we have not seen the uplift
in revenue that we expected. In fact, after a couple of years, a
worrying trend developed. Our customers began cancelling their
service contracts.
In order to find out the reason why, we conducted a survey. The
results of the survey suggested that customers were dissatisfied
with our service. We could not understand why, because we
know that we manufacture high quality furniture and that we
have skilled technicians who understand everything there is to
know about maintaining and repairing furniture. We decided to
run a marketing communications campaign to remind existing
and prospective customers that we are one of the UK’s leading,
quality-furniture manufacturers. Yet 12 months later, the
problem persisted – more customers had cancelled their
contracts.
In an effort to ‘dig deeper’, we decided to conduct interviews
with 20 of our customers who had recently terminated service
contracts with us. Below is a summary of the findings, reported
in the words of a respondent.
I realize that you manufacture high quality furniture, and that
you have skilled technicians. In fact, I recently discovered that
many of your Repair and Care technicians are actually furniture
makers from your factory. While I find it reassuring to know
that my furniture is being cared for by the person that made it, I
am sorry to say I am not happy with the way in which you carry
out your service. Up to now, I have resisted complaining, but
since you are asking, I will tell you what I think.
You are often vague about when your technicians will arrive,
and even when you commit to a day and time, you often do not
arrive when expected. I also find that you have restricted
appointment times. I run a small business and need to schedule
repairs and maintenance outside office hours. I find it difficult
to fit in with your appointment calendar. Whenever I call to
make an appointment, I find I am ‘on hold’ for several minutes
before I get to speak to one of your customer service
representatives. Then, when I finally get through to a
representative, they ask me questions about the furniture that I
cannot answer, such as the range and model types, date of
purchase, date of last service visit, and so on. This usually
means having to end the call, find the information (which is
difficult and time-consuming to locate), and call back, only to
be put on hold again.
My contract states I am entitled to two audits per year.
However, I find that it is up to me to instigate these visits. I
have never had a call from you to say it is time to book my
furniture audit. There also seems to be an unwillingness to come
out for jobs that you consider small. They may appear small to
you, but if a chair or desk needs repairing, we do not want to
wait up to six months for the next audit.
Although a small number of your technicians are attentive,
many are rather dismissive and show no concern about arriving
late to an appointment. There are times when technicians leave
partway through a job without telling me why. I used to think
they were taking long coffee breaks. Later I discovered that
they left to return to your office to get tools or products
required for the repairs. This clearly lengthens the time required
to finish the work.
While working on the repairs, technicians often receive calls
from your office. From what I can deduce, they are being asked
when they will finish the job and when they will arrive at their
next appointment. I find this rather concerning and irritating.
Will they rush the repairs to get to the next appointment?
Each time I have a problem, you send a new technician that I
have never met before. Sometimes I do not even recognise them
as your employees; do you subcontract work? I also find I have
to repeat all the information about a problem that I told the
customer service representative. This is annoying and makes me
wonder if you talk to each other. I have been a customer of
yours for many years, but I do not feel this is reflected in how I
am treated.
Sure, you know how to manufacture furniture, but as for the
rest…
N.B. Woodchurch Furniture is a fictitious company
4
Managing People
Marketing Services 6
Why are service personnel important?
They are service firm and brand
They are marketers
They directly affect customer loyalty
They determine productivity
They affect service quality
They can be a source of competitive advantage
Backstage staff have direct impact on service performance
“Partners are instrumental in all that we do. Our Partners own
our business so have a vested interest in its success. They are at
the heart of our service offering, embodying our values of trust,
respect and fairness and they are the energy and passion that
drives our work to be an evermore responsible and sustainable
business.”
Sir Charlie Mayfield, Chairman, John Lewis Partnership
Service personnel as boundary spanners
Operate at the boundary of the firm:
Interact with customers
Interact with colleagues
Link the organization with customers
Represent the firm
Pass information in both directions
Conflict
Person/role conflict
Role inconsistent with individual’s personality
Emotional labour: supressing personal feelings in favour of a
‘public display’ of happiness
Role ambiguity and role overload
Organization/client conflict
Personnel are expected to be efficient but also delight customers
Inter-customer conflict
Being flexible in serving the needs of one customer can lower
service quality for another customer
Mediating between conflicting customers
Reducing role stress
Employee training
Re-design operating procedure
Manage customer expectations
Segment customer groups to minimise conflict
Delivering quality through peopleIntelligent hiringHire for
service inclination
Be the preferred employer and compete for the bestIntensive
trainingTrain for technical and interactive skills
Provide supportive technology and equipment
Empower
Promote teamworkIncessant monitoringDevelop service-
oriented internal processes
Measure internal service quality
Gather customer feedbackInspiring rewardsProvide feedback
Reward strong performers to retain the best
Hiring
‘The right people are your most important asset.
The wrong people are a liability that is often difficult to get rid
of’ (anon)
Training
Firm’s culture
Technical skills
Product/service knowledge
Empowerment
Empowering the frontline to make discretionary decisions:
rectify service failures promptly
respond to customer requests promptly
motivates staff
encourages feedback about service design improvements
Most appropriate where:
service is personalized
transactions are extended rather than short-term
service environment is unpredictable
employees have good interpersonal skills
But not always appropriate
Low-contact and/or standardized services
Not all employees want empowerment
Requires appropriate attitudes and skills
Likely to result in higher salaries
Can cause inefficiencies and inconsistency
Reward
Extrinsic motivation
Intrinsic motivation
Important to reward quality service provision
Important to reward good discretionary decisions
Important in order to retain staff
Service-profit chain
Internal Service Quality
(employee
selection,
development, motivation)
Employee Satisfaction
Employee Retention,
Competence
and Productivity
Delivery of External Service Value to Customer
(benefits exceed costs)
Customer Satisfaction
Customer Loyalty
(retention & WOM)
Profitability & Growth
(cheaper to retain existing customers than to attract new
customers)
Heskett et al. (1994)
Service culture
Where an appreciation for good service exists and where giving
good service to internal as well as external customers is
considered the only way to work
(Grönroos, 2007)
Service culture
Requires
Well-defined and communicated service concepts (what, to
whom, how)
Appropriate organizational structure (cooperation,
communication)
Leadership
Customer-oriented attitude
Customer-oriented attitude
Organizational support
(resources, training, support)
Customer participation
(leading to positive perception of customer)
Deep acting behaviour
(more genuine and authentic)
(Yoo and Arnold, 2016)
Internal marketing
A programme of creating and maintaining internal relationships
between people in the organization so that they feel motivated
to provide services to internal and external customers in a
customer-focused way, and have the skills required and support
needed to fulfil their roles as part-time marketers.
(Grönroos, 2007)
Internal marketing
Ensure employees know what is being promised to customers
Ensure employees understand their role in maintaining
relationships with customers and have skills and motivation to
do so
Sell the brand internally
Ensure channels exist for frontline staff to communicate with
senior management
Ensure channels exist for communication across functions
Ensure communication is targeted to back-office personnel
Employees seen as internal customers of the organization who
need to be
attracted, motivated, and retained
Customer participation
Customers often co-produce: customization, convenience,
speed, productivity, cost reduction, enjoyment
Quality of delivery and outcome can be reduced by lack of
knowledge, error, or unwillingness to participate
Customer co-production
Clearly define customer role
Teach customers how to co-produce
Benefits to offset customer resource input
Make participation easy and reliable
Attract appropriate customers
Value co-creation
Co-production is one dimension of a concept called value co-
creation (Vargo and Lusch, 2004)
The second dimension is value-in-use, where value is derived
from the experience of using the service offering during or after
the exchange process
The customer inputs and integrates resources (knowledge,
skills, time) with those of the service provider to create value
Customers are ‘partial employees’
References
Grönroos, C. (2007) Service Management and Marketing. 3rd
ed. Chichester; Wiley.
Heskett, J. et al. (1994) Putting the service-profit chain to work.
Harvard Business Review. 2 (March-April), 164-174.
Vargo, S. and Lusch, R. (2004) Evolving to a new dominant
logic for marketing. Journal of Marketing. 68 (1), 1-17.
Yoo, J. and Arnold, T. (2016) Frontline employee customer-
oriented attitude. Journal of Service Research. 19 (1), 102-117
Service Quality and Satisfaction
Part 2: Measurement and management
Marketing Services 5
Difficulties of measurement and management
Intangibility of services makes quality difficult to measure. An
abstract construct
Inseparability means that customers co-produce the service and
take some responsibility for quality
Variability means no two interactions will be the same
As well as identifying five dimensions of service quality
(RATER), Parasuraman, Zeithaml, and Berry (PZB) developed:
the SERVQUAL Questionnaire (PZB, 1991) to measure service
quality
a framework commonly called the Gaps model (PZB, 1985) to
show the major causes of service quality shortfalls and how to
remedy them
SERVQUAL
22 items, across the five dimensions
P (perception) and E (expectation scores) scores for each item
are compared to arrive at a quality score for each of the 22
items
Adapt depending on the industry and context to reflect different
service activities
Administer on a regular basis to analyse trends
Criticisms of SERVQUAL
Is it measuring SQ or satisfaction?
SERVQUAL dimensions are not generic
Concentrates on process more than outcome
Excessively long questionnaire
Respondents are required to rate expectations and perceptions at
the same time. Expectations will be biased by experience of
service
No indication of importance of each item to customers
The fact that what we experienced is better than we expected
(P>E), doesn’t actually tell us much about the quality of the
service
Performance-only questionnaire
Cronin and Taylor (1992) recommend using only the
performance questions of the SERVQUAL model
Resembles typical customer survey
They also allow for weighting of the 22 items
Service quality Gaps model
Management’s perceptions of customer expectations
Translation of perceptions into service quality specifications
Service Delivery
Perceived Service
Expected Service
External Communications
WOM
Personal needs
Past experience
Gap 5
Consumer
Company
Gap 4
Gap 3
Gap 2
Gap 1
PZB (1985)
Gap 1: Not knowing what customers expect
The gap between customer expectations and management
perception of customer expectations
A misunderstanding of what attributes are valued by customers
A market intelligence gap
Causes of gap 1
Gap 2: Inappropriate service standards
The gap between management perception of customer
expectations and service quality specifications
Service designs and standards do not reflect expectations
A design standards gap
Causes of gap 2Lack of management commitment (belief that
customer expectations are unrealistic)Vague, undefined service
designsInadequate task standardizationFailure to develop
physical environment in line with customer expectations
Gap 3: Failure to deliver to standards
The gap between service quality specification and service
delivery
May lack necessary systems, processes, and people
May not encourage and require staff to meet standards
A delivery gap
Causes of gap 3Rigid or complicated specificationsPoor internal
marketingEmployee role ambiguity or conflictBreak-down in
technology or systems supportEmployee/customer unwillingness
or inability to performFailure to match supply and demand
Gap 4: Failure to meet promises
The gap between service delivery and external communications
The provider promises one thing and delivers another
A communications or ‘promises’ gap
Causes of gap 4Propensity to over-promise or exaggerateLack
of integration between marketing and operationsLack of
horizontal communication within the firm
Gap 5
The gap between perceived service and expected service.
The customer-perceived gap
The result of one or more of gaps 1 to 4
SERVQUAL measures gap 5 (perceptions versus expectations)
Having administered SERVQUAL, marketers can examine
which of the four gaps is responsible for gap 5
Closing the gapsGap 1: Market intelligence gapMarket research;
customer feedback; interaction between customers and
management; communication between contact personnel and
managementGap 2: Standards gap Specify tasks, sequences, and
timings as tightly as possible; standardize repetitive tasks to
improve consistencyGap 3: Delivery gapImprove recruitment,
training, and rewards; clarify roles; empower; improve
technology and equipment; educate customers; monitor
late/inaccurate deliveries; complaints recovery proceduresGap
4: Communications gapDon’t over-promise; seek input from
contact personnel; pre-test advertising; facilitate inter-
functional communication
E-service quality
Parasuraman et al. (2005) developed a measure of service
quality for the internet. Twenty-two items across four
dimensions:
Efficiency (accessibility and speed)
System availability (reliable web site/well functioning)
Fulfilment (items arrive as promised)
Privacy and security
Levels of measurement
Three sets of measures:
Customer measures
Service performance measures
Financial measures
Measuring satisfaction
Organizations create customized measures of satisfaction to suit
their individual needs
Attempts have been made to devise generic models. UKCSI uses
five dimensions:
staff professionalism
quality and efficiency
ease of doing business
problem-solving
timeliness
Sainsbury’sCheckoutTrolleys and basketsProductsDeli and fish
counterStaffPricingMisc.Help at checkouts
Enough time to pack purchasesEasy to steer trolleys
Strong bags
Wide range of
Quality fresh fruit and veg
Quick service
High quality productAlways available
Helpful and courteousClearly marked on shelf
Good offersBaby-changing facilities
Not crowded
58 statements across seven categories to rate on a Likert scale.
Research techniques
Questionnaires (SERVQUAL surveys; exit surveys)
Critical incident technique
Customer panels
Mystery customers
Complaint (and compliment) analysis
Employee research
Ethnographic research
User-generated content
Lost-customer follow-up
Setting service standards
Q: How far should a firm go in improving service quality?
A: As far as customers are prepared to pay for the enhanced
level of quality
References
Cronin, J. and Taylor, S. (1992) Measuring service quality: a re-
examination and extension. Journal of Marketing. 56 (3), pp.
55-68.
Parasuraman, A., Zeithaml, V., and Berry, L.L. (1985) A
conceptual model of service quality and its implications for
future research. Journal of Marketing. 49 (Fall), pp. 41-50.
Parasuraman, A., Zeithaml, V., and Berry, L.L. (1988)
SERVQUAL: A multiple-item scale for measuring consumer
perceptions of service quality. Journal of Retailing. 64 (1), pp.
12-40.
Parasuraman, A., Zeithaml, V., and Berry, L.L. (1991)
Refinement and re-assessment of the SERVQUAL scale. Journal
of Retailing. 67 (4), pp. 420-450.
Parasuraman, A., Zeithaml, V., and Malhotra, A. (2005) E-S-
Qual: A multiple item scale for assessing electronic service
quality. Journal of Service Research. 7 (3), 213-233.
Service Quality and Satisfaction
Part 1: Definitions and dimensions
Marketing Services 4
Different perspectives
Quality is determined by the customer and is the extent to which
the offering serves their needs and expectations
Quality is conformance to internally-specified standards
What is service quality?
The discrepancy [gap] between consumers’ perceptions of
services offered by a particular firm and their expectations
about firms offering such services
(Parasuraman, Zeithaml, and Berry, 1988)
Dimensions of service qualityReliability (delivering on
promises)Dependable and accurate performance. Firm meets its
promises (on delivery, price, problem resolution, service
provision)Assurance (inspiring trust and confidence)Competent,
courteous, credible, offering securityTangibles (representing the
firm physically)Appearance of physical elements (inanimate and
animate)Empathy (treating customers as individuals)Good
communication, customer understanding, and caring
individualised attentionResponsiveness (being willing to
help)Prompt and helpful employees
Examples of
dimensionsReliabilityResponsivenessAssuranceEmpathyTangibl
esCar repairProblem fixed first time and ready when
promisedNo waiting. Responds to requestsKnowledgeable
mechanicsAcknowledges customer by name. Remembers
previous problemsWaiting area. UniformsArchitectureDelivers
plans when promised and within budgetReturns telephone calls.
Modifies designs when askedCredentials and reputation.
Knowledge and skillsUnderstands client’s industry (B2B).
FriendlyOffice area, plans, invoices, dress
Alternative view
Grönroos (1984) says quality has two dimensions:
Technical or outcome dimension (‘what’)
Functional or process dimension (‘how’)
Excellent performance in one does not necessarily make up for
failings in another.
Integrated model
Brady and Cronin (2001) attempted to combine previous
models:
Interaction
Quality
Employee attitude
Employee behaviour
Employee expertise
Physical Environment Quality
Ambient conditions
Design
Social factors
Outcome
Quality
Waiting time
Tangibles
Valence
Service
Quality
E-service quality
E-service quality
Efficiency
Reliability
Responsive
Support
Security
Accessibility
What is satisfaction?
Satisfaction is the consumer’s fulfilment response. It is a
judgement that a product or service provided a pleasurable level
of consumption-related fulfilment
(Oliver, 1997)
Satisfaction is not an absolute. It is relative
Can have transaction-specific satisfaction and cumulative
satisfaction.
Expectancy disconfirmation model
Performance/ experience exceeds expectations
Satisfaction or delight
Positive disconfirmation
Performance/
experience
lower than
expectations
Dissatisfaction
Negative disconfirmation
Performance/
experience meets expectations
Confirmation (zero disconfirmation)
Satisfaction
Based on Oliver (1981)
Satisfaction and service quality
Satisfaction
Service Quality
Service Quality
Satisfaction
Satisfaction
Service Quality
OR
OR
Satisfaction and service quality
Confusion because service quality and satisfaction both
conceptualised as a comparison of what is received with what
was expected
Prevailing view (e.g. Cronin and Taylor, 1992; Grönroos, 2007)
is that service quality is a cognitive judgement that contributes
to satisfaction
Satisfaction is influenced by both cognitive judgments of
performance, but also emotions that result from the service
experience (e.g. pleasure, surprise, relief)
Satisfaction and service quality
Service Quality
Product Quality
Value
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Satisfaction
Emotional response
Why is satisfaction important?
Satisfaction or delight
Loyalty and/or positive WOM
Dissatisfaction
Switching and/or negative WOM
‘Leaders who do not actively work to increase customer
satisfaction will be responsible for damaging their companies’
future earnings and shareholder value’
(Hart, 2007)
Satisfaction and retention
On average, 65-85% of customers who ‘defect’ to competitors
claim they were satisfied with their previous service provider.
Reichheld (1996) says we fall into the ‘satisfaction trap’,
thinking that satisfaction is the end in itself. What really
matters is loyalty.
Delight
Customer delight means delivering what is unexpected by the
customer (Oliver et al., 1997)
Delight means surprise, excitement, pleasure
However, once customers have been delighted, their expectation
levels are raised
Results in extra effort and cost to the firm
The strategy of under-promising to over-deliver (UPOD) can
backfire. Some customers may go elsewhere because the quality
level signalled by the firm is below what they consider adequate
(Topaloglu and Fleming, 2017)
Delight
Surprise
Joy
Employee effort
Employee expertise
Tangibles
Delight
Barnes et al. (2016)
Expectations
Customer expectations are beliefs about service delivery that
serve as standards or reference points against which
performance is judged
Zeithaml et al. (1993) distinguish two levels of expectation:
Desired Service Level
The level of service the customer hopes to receive, consisting of
a blend of what the customer believes can and should be
delivered
Adequate Service Level
The level of service the customer will accept. The minimum
service that can be delivered and still meet a customer’s basic
needs
Zone of tolerance
Zone of tolerance is the difference between desired and
adequate service levels
Zone of tolerance expands and contracts across customers and
even within the same customer (depending on the situation)
When service falls below the adequate level customers will be
frustrated. When it is higher than the desired level, customers
will be delighted
Desired Service
(ideal expectation)
Adequate Service
(minimum expectation)
Zone of tolerance
Factors influencing expectations
Predicted service expectations:
Provider promises
WOM
Past experience
Personal needs
Situational factors
Perceived alternatives
References
Barnes, D., Collier, J., Howe, V., and Hoffman, D. (2016)
Multiple paths to custoerm delight. Journal of Services
Marketing. 30 (3), 277-289.
Brady, M. and Cronin, J. (2001) Some new thoughts on
conceptualising perceived service quality. Journal of Marketing.
65 (3), pp. 34-49.
Cronin, J. and Taylor, S. (1992) Measuring service quality: a re-
examination and extension. Journal of Marketing. 56 (3), pp.
55-68.
Grönroos, C. (2007) Service Management and Marketing. 3rd
ed. Chichester; Wiley.
Grönroos, C. (1984) A service quality model and its
implications. European Journal of Marketing. 18 (4), pp. 36-44
Hart, C. (2007) Beating the market with customer satisfaction.
Harvard Business Review. 85 (3), pp. 30-32.
Oliver, R. (1981) Measurement and evaluation of satisfaction
processes in retail settings. Journal of Retailing. 57 (Fall), pp.
25-48.
Oliver, R. (1997) Satisfaction: A Behavioural Perspective on
the Consumer. New York: McGraw-Hill.
Oliver, R., Rust, R. and Varki, S. (1997) Customer delight.
Journal of Retailing. 73 (3), pp. p. 311-336.
Parasuraman, A., Zeithaml, V., and Berry, L.L. (1988)
SERVQUAL: A multiple-item scale for measuring consumer
perceptions of service quality. Journal of Retailing. 64 (1), pp.
12-40.
Reichheld, F. (1996) The Loyalty Effect. Boston: Harvard
Business School Press.
Topaloglu, O. and Fleming, D. (2017) Under-promising and
over-delivering: Pleasing the customer or strategic blunder?
Journal of Services Marketing. 31 (7), pp. 720-732.
Wilson, A., Zeithaml, V., Bitner, MJ., Gremler, D. (2012)
Services Marketing. 2nd ed. Maidenhead: McGraw-Hill.
Zeithaml, V., Berry, L., and Parasuraman, A. (1993) The nature
and determinants of customer expectations of service. Journal of
the Academy of Marketing Science. 12 (1) pp. 1-12.
Service Encounter and
Service Delivery
Marketing Services 3
Service encounter
A period of time during which a consumer directly interacts
with a service
(Shostack, 1985)
Personal exchanges between customer and service
employees/other customers (face-to-face)
OR
impersonal interactions with technology, equipment, and
physical surroundings
Moments of truth
How consumers evaluate an encounter is critical to the overall
evaluation of the purchase and potential re-purchase
Every encounter is an opportunity for the customer to evaluate
the service provider:
‘a moment of truth’ (Normann, 1984)
Encounters will be evaluated on the basis of people, physical
evidence, process
Critical incidents
Specific interactions between customers and service firm
employees that are especially satisfying or especially
dissatisfying.
Not all service incidents are classified as critical, only those
that customers find memorable because they are particularly
satisfying or dissatisfying
(Bitner et al., 1990)
Servuction model
Customer
Other customers
Contact personnel
Inanimate environment
Operations infrastructure
(Langeard et al.,1981)
Back- stage/office
Front- stage/office
Servuction system
Factory metaphor to describe the service process: emphasises
process, system, structure, inputs, speed and efficiency.
Recognises that several factors contribute to the bundle of
benefits received by customer.
Customers regarded as co-producers with a role to play in the
production of the service. A resource that can increase the speed
and efficiency of production.
Model shows visible and invisible elements in the service
production system, and how they interact and affect the
customer experience
Theatre model
Setting
Actors
Audience
(Grove and Fisk, 1992)
Theatre model
Setting (stage and props): service facilities and physical
environment. Affects behaviour of customers/employees and
defines the service experience
Auditioning: hiring appropriate employees
Actors: employees whose attitudes, behaviour, appearance
influence perceptions.
Rehearsal: Training
Audience: customers, with cognitive and emotional responses to
the experience. Other customers (members of audience) affect
experience
Performance: employees and customers each with a role and
‘script’ (sequence of behaviours) to follow
Back-stage production team: support staff who make a crucial
contribution to service planning, production and delivery.
Usually out-of-bounds to audience
Managing encounters: People
Employees trained and empowered to meet expectations,
respond to special requests, and resolve service failure
Customers ‘educated’ to perform role
Customer segments compatible
Managing encounters: Technology
Migrate customers from face-to-face to computer-mediated
encounters or technology-based self service (TBSS)
Customer’s own ‘labour’ replaces that of service provider
BUT
has implications for service quality and value perceptions
10
Managing encounters: Technology
Sources of satisfaction
Perceived time/money saving
Ability to solve a problem immediately
More control over process (customization)
Greater reliability than human interaction
Sources of dissatisfaction
Technology failure
Process failure
Customer-driven failure
Insufficient value from resource application
11
Pleasure/displeasure in encounters
Critical incident technique
When did the incident happen?
What did the employee do?
What happened that made you feel satisfied/dissatisfied?
What should have been done differently?
Sources of satisfaction/dissatisfaction
Recovery: employee response to service failure
Adaptability: employee response to requests
Spontaneity: unprompted employee actions
Coping: employee response to problem customers
12
Customer experience
A customer’s ‘journey’ with a firm over time during the
purchase cycle and across multiple touch points
(Lemon and Verhoef, 2016)
Extends across pre-purchase, purchase, and post-purchase
Analysis and measurement requires:
Customer journey analysis (from customer perspective)
Multi-channel perspective
Customer experience elements
Cognitive
(goal attainment)
Social
(employees and other customers)
Emotional
(level of delight, joy, excitement, etc)
Sensory
(physical environment)
(Keiningham et al., 2017)
Service process
The service process describes the method and sequence of links
of the service system
Process will be designed around contact personnel, back-stage
personnel, customers, and technology
Tug of war between marketing effectiveness and operational
efficiencies
Service process has key influence on customer evaluations of
service quality
Difficult to achieve perfection
Customization and lack of standardization
Variability of the demand cycle
Variability of service demand
Customer and contact personnel mood
Involvement of customer in service process
Blueprinting
A graphical approach to depict a ‘map’ of the service ‘system’
showing:
All of the steps, tasks, choices, and support processes required
to make, provide, and consume a service
Those responsible for each task
Sequencing and relationship of tasks or steps
Timing of tasks or steps
Physical evidence at each point of interaction
Seek multiple perspectives: operations, marketing, HR,
employees, and customers
18
A multi-purpose tool
Marketing
Obtain customer feedback at concept and service development
stage
Identify competitive advantage
Analyse appropriateness of physical evidence at each point of
customer contact
Human Resources
Analyse staff roles and identify recruitment/training
requirements
Show employees how their roles fit within the total service
delivered to the customer
Operations
Identify potential operational fail points and improvements
Analyse the effectiveness and efficiency of the process
Making services availableFactors to considerPurchase
frequencyCompetitor activityCustomer locationCost of
provisionWillingness to travelStaff commitmentChannel
preferencesPositioning
Making services available
Direct Sales
Build relationships with customers, retain profit, maintain
quality
Intermediaries (e.g. franchising)
Improve accessibility and after-sales service, share costs/risks,
but loss of quality control, and reduced profit
Internet (disintermediation!)
Accessibility, convenience, choice, information,
competitive pricing
References
Bitner, M., Booms, B., and Tetreault, M. (1990) The service
encounter: diagnosing favourable and unfavourable incidents.
Journal of Marketing. 54 (January), 71-84.
Grove, S. and Fisk, R. (1992) The service experience as theatre.
Advances in Consumer Research. 19 (1), 455-461.
Keiningham, T., Ball, J., Benoit, S., et al. (2017) The interplay
of customer experience and commitment. Journal of Services
Marketing. 31 (2), 148-160.
Langeard, E., Bateson, J., Lovelock, C. and Eiglier, P. (1981)
Marketing of Services. Cambridge, MA: Marketing Sciences
Institute.
Lemon, K. and Verhoef, P. (2016) Understanding customer
experience throughout the customer journey. Journal of
Marketing. 80 (Nov), 69-96.
Normann, R. (1984) Service Management. New York: Wiley.
Shostack, G.L. (1985) Planning the service encounter. In
Czepiel, J., Solomon, M. and Surprenant, C. eds. (1985) The
Service Encounter. Lexington: Lexington Books, 243-254.
Distinguishing features of services
Marketing Services 2
Four distinguishing features
Intangibility
Inseparability
Variability (heterogeneity)
Perishability
These four features have been identified by a variety of authors,
but Zeithaml, Parasuraman, and Berry (1985) provide an
excellent review of the features and a summary of their
implications (you can cite these authors, if you need to, when
discussing the four features)
Intangibility
Abstract experiences, activities, and processes, so can’t be seen
or touched
Probably the most fundamental characteristic
Implications of intangibility
Difficult to evaluate which increases buyer risk
Difficult to promote/communicate
Impossible to build up an inventory
Issues for marketing:
Brand image
Physical cues
Price as a quality proxy
Guarantees and endorsements
Free trials
WOM
Implications of intangibility
The ease or difficulty of evaluating a service depends on its
attributes:
Search attributes (attributes that can be evaluated prior to
purchase)
Experience attributes (attributes that can only be evaluated
during/after consumption)
Credence attributes (attributes that can’t be evaluated easily
even after purchase)
Intangibility
(Zeithaml, 1981)
Restaurant Meals
Vacation
Haircut
Entertainment
High In Experience
Attributes
Computer Repair
Education
Legal Services
Complex Surgery
High In Credence
Attributes
Inseparability
Customer consumption often simultaneous with service
production/delivery
Customers interact with service provider
Can include customer co-production
Implications of inseparability
Service providers require different skill set
Co-production can influence service outcome
Other customers can be present
Difficulty selling to geographically widespread market
Difficult to correct defective service
Issues for marketing:
Employee and customer management
Multi-site locations
Opportunity for customization
Variability (Heterogeneity)
No two service provisions are ever identical
Affected by personnel delivering service, time of day, other
customers present, etc.
Individual customer perceptions of service delivery will vary
Implications of variability
Consistently perfect quality difficult to achieve
Service delivered to the customer may not match what was
promoted or planned
Implications for brand image
Greater risk for customer
Issues for marketing:
Training and/or technology to reduce variability
Standardise wherever possible
But remember,
customers of more ‘hedonic’ services expect a customized
approach (Ding and Keh, 2015)
Perishability
Cannot be stored or saved, and sold later
Little or no inventory
Implications of perishability
Lost revenue (excess capacity)
Lost customers (excess demand)
Issues for marketing:
Managing congestion during peak demand, and unused capacity
during low demand
A Fifth Characteristic?
Lack of ownership
Marketing transactions that do not involve a transfer of
ownership (Lovelock and Gummesson, 2004)
The extended marketing mix
Booms and Bitner (1981) extended mix to 7 ‘Ps’. The
importance of each will vary according to the particular service
Physical Evidence
Process
People
The extended marketing mix
People
All human actors who play a part in service delivery and
influence a buyer’s perceptions
Physical Evidence
The environment in which the service is delivered and any other
tangible elements
Process
The procedures, mechanisms, and flow of activities by which
the service is delivered
References
Booms, B. and Bitner, M.J. (1981) Marketing strategies and
organization structures for service firms. In Donnelly, J. and
George, W. eds. (1981) Marketing of Services. Chicago: AMA,
pp. 51-67.
Ding, Y. and Keh, H. (2015) A re-examination of service
standardization versus customization from the consumer’s
perspective. Journal of Services Marketing. 30 (1), 16-28.
Lovelock, C. and Gummesson, E. (2004) Whither services
marketing: in search of a new paradigm and fresh perspectives.
Journal of Service Research. 7 (1), pp. 20-41.
Zeithaml, V. (1981) How consumer evaluation processes differ
between goods and services. In Donnelly, J. and George, W.
eds. (1981) Marketing of Services. Chicago: AMA, pp. 186-190.
Zeithaml, V., Parasuraman, A., and Berry, L. (1985) Problems
and strategies in services marketing. Journal of Marketing. 49
(2), 33-46.
Defining and classifying services
Marketing Services 1
Teaching and learning
Lecture: introduction to, and understanding of, key ideas in
services marketing, with practical examples of theory in the
‘real world’
Tutorial: application of theory to practice, with an opportunity
to discuss and debate. Requires preparation and participation
Assessment: opportunity to analyse, evaluate, to make
recommendations, and to apply theory to practice
Independent Study: reading to enhance understanding of key
ideas
Core text book
Palmer, A. (2014) Principles of Services Marketing,
7th edition, Maidenhead: McGraw-Hill
Blackboard
Module handbook
Lecture slides
Announcements
Tutorial preparation materials
Recommended articles (in Reading List content area)
Coursework brief
Module handbook
Contains:
Lecture and tutorial programme
Recommended reading
Brief for each tutorial
Bring it to every session
Assessment
Coursework 50%
2,500-word assignment based on a case study
Online submission: Wednesday March 13th 2019
Examination 50%
Two-hour examination in April/May. Essay-style questions.
Answer two questions from a choice of four. Each of the four
questions will focus on one topic, drawn from study units 6 to
11.
Size of the service sector
66% of world GDP
74% of developed countries’ GDP
51% of developing countries’ GDP
(UNCTAD, 2012)
Share of economic output in UK
(Office for National Statistics, 2018)
1948
2016
% of GDP
Services Manufacturing Construction Agriculture 46 42
6 6
% of GDP
79%
Services Manufacturing Construction Agriculture 79 14
6 1
Examples of service industries
Supply (retail, energy, transport)
Entertainment
Government and non-profit
Personal and maintenance
Tourism, Hospitality, Recreation
Healthcare
Communication and Information
Education and knowledge
Financial and insurance
What are services?
The production of an essentially intangible benefit, either in its
own right or as a significant element of a tangible product,
which through some form of exchange, satisfies an identified
need
(Palmer, 2014)
What are services?
Services are deeds, processes and performances…economic
activities whose output is not a physical product, is generally
consumed at the time it is produced, and provides added value
in forms (such as amusement, comfort, convenience) that are
essentially intangible
(Wilson et al., 2012)
What are services?
Products of economic activity that you can’t drop on your foot,
ranging from hairdressing to websites
(The Economist, 2013)
Product-service continuum
Tangible
Intangible
Tangible dominant
e.g. coffee
Intangible dominant
e.g. consultancy
Restaurant meal
(Shostack, 1977)
Trends in services
Many manufacturers of products now add supplementary service
elements that augment the tangible good
Servitization: Manufacturing firms competing through service
provision. Requires culture change
With increasingly similar products, service becomes the
differentiating factor and source of competitive advantage
Distinction between the marketing of a service where the
service is the core product, and where service is an add-on to a
physical good and adds value to the good.
Customer service is the service provided in support of a
company’s core product. You do not ‘buy’ customer service;
you buy the product or service that a company offers.
New business models
Shift in lifestyle: car ownership forecast to decrease in
developed economies (McKinsey, 2017)
Automotive manufacturers introducing service element to
replace reduced revenues from manufacturing
Mercedes (and others) investing in shared mobility services
Molecular model (Shostack, 1977)
Many ‘products’ are a combination of tangible and intangible:
cinema
visit
food and
drink
atmosphere
ticket purchase
and seat
reservation
method
of
delivery
building and
seating
the film –
entertainment
Screen size,
sound clarity
Classifying servicesPeople as
recipientsPossessions as recipientsTangible actionsHigh-
involvement
personal servicesGoods maintenance servicesIntangible
actionsServices for
the mindIntangible asset maintenance services
Palmer (2014), based on Lovelock (1983)
Classification criteriaLow or high customizationLow or high
customer participationLow or high level of service provider
judgementOne-time episodes or long-term
relationship/contractUtilitarian or hedonic serviceWide or
narrow demand fluctuationsCapacity constrained or
flexibleCustomer to organization or organization to customer or
remote interaction
Based on Lovelock (1983)
The Flower of Service
Core Service
Payment
Consultation
Hospitality
Safekeeping
Billing
Order-taking
Information
Exceptions
Facilitating
Enhancing
Lovelock (1995)
Supplementary servicesInformationHow to obtain and use a
serviceOrder-takingSecure a commitment to service
deliveryBilling
Clear and accuratePayment
Simple and convenient transactions Consultation
Advice tailored to individual customer needs Hospitality
Made welcomeSafekeepingFirm will look after personal
possessionsExceptionsFlexible and responsive to special
requests
References
Lovelock, C. (1983) Classifying services to gain strategic
marketing insights. Journal of Marketing. 47 (summer), pp. 9-
20.
Lovelock, C. (1995) Competing on service: Technology and
teamwork in supplementary services. Strategy and Leadership.
32 (4) 32-47.
McKinsey (2017) Shared mobility. Available from:
https://www.mckinsey.com/industries/automotive-and-
assembly/our-insights/how-shared-mobility-will-change-the-
automotive-industry
ONS (2018) Economy. Available from:
https://www.ons.gov.uk/economy
Palmer, A. (2014) Principles of Services Marketing. 7th edition.
Maidenhead: McGraw-Hill.
Shostack, G.L. (1977) Breaking free from product marketing.
Journal of Marketing. 41 (2), pp. 73-80.
The Economist (2013) Economics A to Z. Available from:
http://www.economist.com/search/google?cx=013751040265774
567329%3Apqjb-wvrj-
q&cof=FORID%3A11&query=index%20terms&op=Search
UNCTAD (2012) Statistics. Available from:
http://unctad.org/en/Pages/Statistics.aspx.
Wilson, A., Zeithaml, V., Bitner M.J., and Gremler, D. (2012)
Services Marketing. 2nd ed. Maidenhead: McGraw Hill.

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  • 1. Faculty of Business and Law aCADEMIC YEAR 2018/19 assessment brief Module Code: UMKD6R-15-3 Module Title: Marketing Services Submission Deadline: Wednesday 13th March 2019 Assessment Component Coursework Assessment Weighting: 50 per cent of total module mark Marking and feedback deadline (20 working days) 10th April 2019 Assessment Instructions This is an individual case-based assignment that requires you to answer a question in relation to the case study below: ‘Woodchurch Furniture’. Question: Using services marketing theory, analyse and explain Woodchurch’s loss of customersand recommendhow it might improve the customer experience. (100 marks) General Guidance · The coursework requires you to select and apply theories,
  • 2. frameworks, and concepts from the first six study units of the module. · It is your decision as to what theories/frameworks/concepts to use to inform your answer. There is no recommended minimum or maximum number, but generally, quality of application is more important than the quantity of frameworks applied. · Remember that the requirement is to apply rather than describe theory. · You may use subheadings in your answer, but avoid excessive use of bullet points. · Do not reiterate passages from the case study. Obviously, you will need to refer to the case, but do this as succinctly as you can. · Evidence of relevant reading beyond the lecture slides, with appropriate application of this reading, will be rewarded. Besides textbooks, you may want to explore relevant articles from Journal of Services Marketing,Journal of Service Research, or Service Industries Journal. Other journals will haverelevant articles, but, as implied by their titles, these three focus on services. · Include a title page, contents, and references. There is no need for an abstract or executive summary. Please number your pages. Marking Criteria Please see the grid below: Criteria Grading Analysis (35%) Recommendations (35%)
  • 3. Structure (20%) Literacy, presentation, referencing (10%) 80-100 PASS Exceptional Insightful analysis with originality of thought. Identifies underlying issue(s). Excellent application of theory. Demonstrates excellent integration of relevant literature from outside the module reading list. Highly appropriate, with originality of thought. Consistent with issues raised in the analysis. Exceptional clarity and detail. Supported wherever possible by theory / literature. Exceptional organization and flow of material with excellent connections between ideas. Introduction is specific and signposts. Conclusion synthesises and may highlight implications of recommendations. Exceptional standard of literacy and presentation. Near faultless referencing. 70-79 PASS Excellent Insightful analysis. Identifies underlying issue(s). Excellent application of theory. Demonstrates excellent integration of relevant literature from outside the module reading list. Excellent and appropriate, with some originality of thought. Consistent with issues raised in the analysis. Excellent clarity and detail. Supported wherever possible by theory / literature. Excellent organization and flow of material. Ideas are well connected. Introduction is specific and signposts. Conclusion synthesises and may highlight implications of recommendations. Excellent standard of literacy and presentation. Referencing is excellent but there may be one or two slips. 60-69 PASS Very good / good Good analysis. Identifies underlying issue(s) though may not discuss in depth. Good application of theory. Demonstrates good integration of relevant literature, with some from outside the module reading list.
  • 4. Good and generally appropriate. Largely consistent with issues raised in the analysis. Good clarity and detail. Some recommendations supported by theory / literature. Good organization and flow of material with ideas that are mostly well connected. Introduction is largely contextualised and signposts. Conclusion provides a good summary. Good standard of literacy and presentation. Just a few errors. Referencing is good, though there may be a few errors or omissions. 50-59 PASS Competent Competent analysis. May miss underlying issue(s). Reasonable application of theory though not always systematic or accurate. Evidence of reading beyond the lecture slides. Competent and generally appropriate. There may be inconsistencies with issues raised in the analysis. Some recommendations lack clarity and detail. Limited theoretical support. Competent organization of material but flow may not always be logical. Ideas not always connected. Introduction is general with limited signposting. Conclusion provides an incomplete summary. Competent standard of literacy and presentation. Referencing is competent but there may be several errors or omissions. 40-49 PASS Adequate Adequate analysis. Misses underlying issue(s). Adequate application of theory but not systematic and with evidence of a lack of understanding in places. No evidence of reading beyond lecture slides. Adequate though not all appropriate. A lack of consistency with the analysis. A substantial lack of clarity and detail. Limited or no theoretical support. Some attempt to structure the report but not always effective. Ideas often unconnected. Introduction is superficial with limited/no signposting. Conclusion is weak or absent.
  • 5. Adequate literacy and presentation but with several areas of weakness. Many instances of incorrect or missing references. 35-39 FAIL Inadequate Superficial analysis. Misses underlying issue(s). Limited and unsystematic application of theory, demonstrating a lack of understanding. No evidence of reading beyond the lecture slides. Inadequate and with limited appropriateness. A lack of consistency with the analysis. A substantial lack of clarity and detail. No theoretical support. Vague structure with little or no logic to the flow of material. Ideas unconnected. Introduction and conclusion are superficial or absent. Inadequate literacy and presentation, with substantial areas of weakness. Many instances of incorrect or missing references. Significantly under or over word count. 0-34 FAIL Poor Poor analysis. Misses underlying issue(s). Very limited and unsystematic application of theory, demonstrating a lack of understanding. No evidence of reading beyond the lecture slides. Very few, and largely inappropriate, recommendations. A lack of consistency with the analysis. A substantial lack of clarity and no detail. No theoretical support. Very disorganized with no logic to the flow of material. Poor connections between ideas. Introduction and conclusion are superficial or absent. Poor literacy and presentation. Many instances of incorrect or missing references. Significantly under or over word count. Formative feedback and Support Formative feedback Formative feedback provides opportunities to reflect on your ongoing work and preparation for your assignment. Time will be
  • 6. set aside in every lecture prior to the submission date for you to ask questions and receive feedback about the assignment. If you prefer not to ask your question aloud in the lecture, you can email it in advance to the module leader. Weekly tutorial tasks are designed to give you the opportunity to apply theory that you may choose to use in your coursework, thus giving you the opportunity to receive formative feedback in class. In addition, a ‘frequently asked questions’ document will be made available on Blackboard and updated regularly. Formatting Please use the following file format: Microsoft Word file with a .doc or .docx file extension. We cannot ensure that other formats are compatible with markers’ software. All work should be word processed in 12-point font Times New Roman or Arial and single spaced. Please number your pages. The first page of your coursework must include: · Your student number · The module name and number · Your word count Word Limit The maximum word limit for this coursework is 2,500. · This word count includes everything in the main body of the text (including headings, tables, citations, quotes, lists, etc.). · References, title page, contents page, and appendices are NOT included in the word count. · There is no direct penalty for exceeding the word count, but the marker WILL stop reading once the maximum word limit has been reached and nothing further will be taken into account in the allocation of marks. You can view the UWE word count policy here: http://www1.uwe.ac.uk/aboutus/policies
  • 7. Referencing: Please adhere to the principles of good academic practice and ensure you reference all sources used when developing your assessment, using the UWE Harvard system. Failure to properly reference your work to original source material can be grounds for the assessment offence of plagiarism and may result in failure of the assessment or have more serious implications. For further guidance on correct referencing go to: http://www1.uwe.ac.uk/students/studysupport/studyskills/refere ncing.aspx Details of what constitutes plagiarism and how to avoid it can be found here: http://www1.uwe.ac.uk/students/studysupport/studyskills/readin gandwriting/plagiarism.aspx For general guidance on how to avoid assessment offences see: http://www1.uwe.ac.uk/students/academicadvice/assessments/as sessmentoffences.aspx Instructions for submission You must submit your assignment before the stated deadline by electronic submission through Blackboard. Notification that the electronic submission portal is open for your assignment is displayed (usually two weeks before the submission date) in the Coursework tab in myUWE, the Coursework tab in Blackboard and via an announcement in the Blackboard course. Please allow sufficient time to upload your assignment, noting that the system becomes busier and slower as the deadline approaches. Only your final upload will be counted. Ensure all your information is submitted at one attempt to avoid ‘overwriting’ your intended submission. Always check and retain your receipts.
  • 8. Late submission in the 24 hours following the deadline will be accepted but the assignment mark will be capped at 40%. Submissions after 24 hours will not be accepted. For full guidance on online submission through Blackboard, see: http://info.uwe.ac.uk/online/Blackboard/students/guides/assign ments/default.asp Submissions of coursework by any other method (including a paper copy, on disk or by email) are NOT permissible for this module unless specifically agreed in advance of the submission date. Before submitting your work, please ensure that: · You have proof read you work thoroughly to ensure your work is presented appropriately · You have addressed all the required elements of the assessment · You have referenced in accordance with the guidance provided · You have addressed each of the marking criterion · The submission is in the correct format Final feedback and marks release Students will normally receive marks and feedback on their submission within 20 working days of the submission deadline (not including any public holidays or university closure days). Any delay in returning students’ work will be communicated by the module leader via Blackboard. Feedback on this module is not limited to the written comments you will receive on individual written assessment submissions. Feedback and marks for this module will be available by 10th April 2019. For further guidance on feedback, please refer to the module handbook.
  • 9. Further Guidance and Support General guidance on study skills is available at: http://www1.uwe.ac.uk/students/studysupport/studyskills.aspx Specific study skills pages relating to this module include: Writing skills: https://www1.uwe.ac.uk/students/studysupport/studyskills/readi ngandwriting/writing.aspx Support from the FBL Academic Success Centre: http://www1.uwe.ac.uk/bl/bbs/aboutus/studentexperience/acade micsupportcentre.aspx Guidance on UWE assessment regulations and terminology: http://www1.uwe.ac.uk/students/academicadvice/assessments/as sessmentsguide.aspx Guidance on using the library: http://www1.uwe.ac.uk/library/usingthelibrary.aspx Personal Circumstances If you are experiencing difficulties in completing a piece of assessment on time due to unexpected circumstances (for example illness, accident, bereavement), you should seek advice from a Student Support Adviser at the earliest opportunity. Please note the module leader cannot grant personal circumstances or extensions. Appointments with a student adviser can be made via an Information Point or online at: http://www1.uwe.ac.uk/students/academicadvice/studentadviser s.aspx The Student Support Adviser will advise as to whether you
  • 10. should submit an application for ‘Personal Circumstances (PCs)’, how to do so and what evidence is required to support the application. Further details on ECs can be found here: http://www1.uwe.ac.uk/students/academicadvice/assessments/pe rsonalcircumstances.aspx Woodchurch Furniture We are a medium-sized UK firm that designs and manufactures functional, but aesthetically pleasing, furniture. Our target market includes small, office-based businesses, and independent, premium restaurants and hotels. In the time since our founding in 1990, we have built a reputation for high quality and innovative products. In the period from 2008 to 2010, with the UK in the grip of a recession, our revenues began to fall. Many of our target audience regarded high quality furniture as a luxury and switched to cheaper, and in our opinion inferior, furniture. While we did our best to reduce our costs and prices, we could not match the prices of imported, mass-produced furniture. In an effort to increase our sales revenue, we decided to introduce a furniture ‘repair and care’ service. The service includes repairs to damaged furniture, maintenance work to prolong the life of furniture, and cleaning and re-upholstery of chairs. We offer this service as an annual contract for our customers. This comprises twice-yearly visits (we call them ‘audits’) to inspect furniture and carry out any required maintenance. In addition, customers can call us, when necessary, for emergency repairs. Initially, many of our customers signed up for this service. They were pleased to have their furniture cared for by the firm that
  • 11. manufactured it. However, overall, we have not seen the uplift in revenue that we expected. In fact, after a couple of years, a worrying trend developed. Our customers began cancelling their service contracts. In order to find out the reason why, we conducted a survey. The results of the survey suggested that customers were dissatisfied with our service. We could not understand why, because we know that we manufacture high quality furniture and that we have skilled technicians who understand everything there is to know about maintaining and repairing furniture. We decided to run a marketing communications campaign to remind existing and prospective customers that we are one of the UK’s leading, quality-furniture manufacturers. Yet 12 months later, the problem persisted – more customers had cancelled their contracts. In an effort to ‘dig deeper’, we decided to conduct interviews with 20 of our customers who had recently terminated service contracts with us. Below is a summary of the findings, reported in the words of a respondent. I realize that you manufacture high quality furniture, and that you have skilled technicians. In fact, I recently discovered that many of your Repair and Care technicians are actually furniture makers from your factory. While I find it reassuring to know that my furniture is being cared for by the person that made it, I am sorry to say I am not happy with the way in which you carry out your service. Up to now, I have resisted complaining, but since you are asking, I will tell you what I think. You are often vague about when your technicians will arrive, and even when you commit to a day and time, you often do not arrive when expected. I also find that you have restricted appointment times. I run a small business and need to schedule repairs and maintenance outside office hours. I find it difficult to fit in with your appointment calendar. Whenever I call to make an appointment, I find I am ‘on hold’ for several minutes before I get to speak to one of your customer service representatives. Then, when I finally get through to a
  • 12. representative, they ask me questions about the furniture that I cannot answer, such as the range and model types, date of purchase, date of last service visit, and so on. This usually means having to end the call, find the information (which is difficult and time-consuming to locate), and call back, only to be put on hold again. My contract states I am entitled to two audits per year. However, I find that it is up to me to instigate these visits. I have never had a call from you to say it is time to book my furniture audit. There also seems to be an unwillingness to come out for jobs that you consider small. They may appear small to you, but if a chair or desk needs repairing, we do not want to wait up to six months for the next audit. Although a small number of your technicians are attentive, many are rather dismissive and show no concern about arriving late to an appointment. There are times when technicians leave partway through a job without telling me why. I used to think they were taking long coffee breaks. Later I discovered that they left to return to your office to get tools or products required for the repairs. This clearly lengthens the time required to finish the work. While working on the repairs, technicians often receive calls from your office. From what I can deduce, they are being asked when they will finish the job and when they will arrive at their next appointment. I find this rather concerning and irritating. Will they rush the repairs to get to the next appointment? Each time I have a problem, you send a new technician that I have never met before. Sometimes I do not even recognise them as your employees; do you subcontract work? I also find I have to repeat all the information about a problem that I told the customer service representative. This is annoying and makes me wonder if you talk to each other. I have been a customer of yours for many years, but I do not feel this is reflected in how I am treated. Sure, you know how to manufacture furniture, but as for the rest…
  • 13. N.B. Woodchurch Furniture is a fictitious company 4 Managing People Marketing Services 6 Why are service personnel important? They are service firm and brand They are marketers They directly affect customer loyalty They determine productivity They affect service quality They can be a source of competitive advantage Backstage staff have direct impact on service performance “Partners are instrumental in all that we do. Our Partners own our business so have a vested interest in its success. They are at the heart of our service offering, embodying our values of trust, respect and fairness and they are the energy and passion that drives our work to be an evermore responsible and sustainable business.” Sir Charlie Mayfield, Chairman, John Lewis Partnership
  • 14. Service personnel as boundary spanners Operate at the boundary of the firm: Interact with customers Interact with colleagues Link the organization with customers Represent the firm Pass information in both directions Conflict Person/role conflict Role inconsistent with individual’s personality Emotional labour: supressing personal feelings in favour of a ‘public display’ of happiness Role ambiguity and role overload Organization/client conflict Personnel are expected to be efficient but also delight customers Inter-customer conflict Being flexible in serving the needs of one customer can lower service quality for another customer Mediating between conflicting customers Reducing role stress Employee training Re-design operating procedure Manage customer expectations Segment customer groups to minimise conflict Delivering quality through peopleIntelligent hiringHire for
  • 15. service inclination Be the preferred employer and compete for the bestIntensive trainingTrain for technical and interactive skills Provide supportive technology and equipment Empower Promote teamworkIncessant monitoringDevelop service- oriented internal processes Measure internal service quality Gather customer feedbackInspiring rewardsProvide feedback Reward strong performers to retain the best Hiring ‘The right people are your most important asset. The wrong people are a liability that is often difficult to get rid of’ (anon) Training Firm’s culture Technical skills Product/service knowledge Empowerment Empowering the frontline to make discretionary decisions: rectify service failures promptly respond to customer requests promptly motivates staff encourages feedback about service design improvements Most appropriate where: service is personalized transactions are extended rather than short-term service environment is unpredictable
  • 16. employees have good interpersonal skills But not always appropriate Low-contact and/or standardized services Not all employees want empowerment Requires appropriate attitudes and skills Likely to result in higher salaries Can cause inefficiencies and inconsistency Reward Extrinsic motivation Intrinsic motivation Important to reward quality service provision Important to reward good discretionary decisions Important in order to retain staff Service-profit chain Internal Service Quality (employee selection, development, motivation) Employee Satisfaction Employee Retention, Competence and Productivity Delivery of External Service Value to Customer (benefits exceed costs) Customer Satisfaction Customer Loyalty (retention & WOM) Profitability & Growth (cheaper to retain existing customers than to attract new
  • 17. customers) Heskett et al. (1994) Service culture Where an appreciation for good service exists and where giving good service to internal as well as external customers is considered the only way to work (Grönroos, 2007) Service culture Requires Well-defined and communicated service concepts (what, to whom, how) Appropriate organizational structure (cooperation, communication) Leadership Customer-oriented attitude Customer-oriented attitude Organizational support (resources, training, support) Customer participation (leading to positive perception of customer) Deep acting behaviour (more genuine and authentic) (Yoo and Arnold, 2016) Internal marketing A programme of creating and maintaining internal relationships between people in the organization so that they feel motivated to provide services to internal and external customers in a
  • 18. customer-focused way, and have the skills required and support needed to fulfil their roles as part-time marketers. (Grönroos, 2007) Internal marketing Ensure employees know what is being promised to customers Ensure employees understand their role in maintaining relationships with customers and have skills and motivation to do so Sell the brand internally Ensure channels exist for frontline staff to communicate with senior management Ensure channels exist for communication across functions Ensure communication is targeted to back-office personnel Employees seen as internal customers of the organization who need to be attracted, motivated, and retained Customer participation Customers often co-produce: customization, convenience, speed, productivity, cost reduction, enjoyment Quality of delivery and outcome can be reduced by lack of knowledge, error, or unwillingness to participate Customer co-production Clearly define customer role Teach customers how to co-produce Benefits to offset customer resource input Make participation easy and reliable Attract appropriate customers
  • 19. Value co-creation Co-production is one dimension of a concept called value co- creation (Vargo and Lusch, 2004) The second dimension is value-in-use, where value is derived from the experience of using the service offering during or after the exchange process The customer inputs and integrates resources (knowledge, skills, time) with those of the service provider to create value Customers are ‘partial employees’ References Grönroos, C. (2007) Service Management and Marketing. 3rd ed. Chichester; Wiley. Heskett, J. et al. (1994) Putting the service-profit chain to work. Harvard Business Review. 2 (March-April), 164-174. Vargo, S. and Lusch, R. (2004) Evolving to a new dominant logic for marketing. Journal of Marketing. 68 (1), 1-17. Yoo, J. and Arnold, T. (2016) Frontline employee customer- oriented attitude. Journal of Service Research. 19 (1), 102-117 Service Quality and Satisfaction Part 2: Measurement and management Marketing Services 5 Difficulties of measurement and management
  • 20. Intangibility of services makes quality difficult to measure. An abstract construct Inseparability means that customers co-produce the service and take some responsibility for quality Variability means no two interactions will be the same As well as identifying five dimensions of service quality (RATER), Parasuraman, Zeithaml, and Berry (PZB) developed: the SERVQUAL Questionnaire (PZB, 1991) to measure service quality a framework commonly called the Gaps model (PZB, 1985) to show the major causes of service quality shortfalls and how to remedy them SERVQUAL 22 items, across the five dimensions P (perception) and E (expectation scores) scores for each item are compared to arrive at a quality score for each of the 22 items Adapt depending on the industry and context to reflect different service activities Administer on a regular basis to analyse trends Criticisms of SERVQUAL Is it measuring SQ or satisfaction? SERVQUAL dimensions are not generic Concentrates on process more than outcome Excessively long questionnaire Respondents are required to rate expectations and perceptions at the same time. Expectations will be biased by experience of
  • 21. service No indication of importance of each item to customers The fact that what we experienced is better than we expected (P>E), doesn’t actually tell us much about the quality of the service Performance-only questionnaire Cronin and Taylor (1992) recommend using only the performance questions of the SERVQUAL model Resembles typical customer survey They also allow for weighting of the 22 items Service quality Gaps model Management’s perceptions of customer expectations Translation of perceptions into service quality specifications Service Delivery Perceived Service Expected Service External Communications WOM Personal needs Past experience Gap 5 Consumer Company Gap 4 Gap 3 Gap 2 Gap 1 PZB (1985)
  • 22. Gap 1: Not knowing what customers expect The gap between customer expectations and management perception of customer expectations A misunderstanding of what attributes are valued by customers A market intelligence gap Causes of gap 1 Gap 2: Inappropriate service standards The gap between management perception of customer expectations and service quality specifications Service designs and standards do not reflect expectations A design standards gap Causes of gap 2Lack of management commitment (belief that customer expectations are unrealistic)Vague, undefined service designsInadequate task standardizationFailure to develop physical environment in line with customer expectations Gap 3: Failure to deliver to standards The gap between service quality specification and service delivery May lack necessary systems, processes, and people May not encourage and require staff to meet standards A delivery gap
  • 23. Causes of gap 3Rigid or complicated specificationsPoor internal marketingEmployee role ambiguity or conflictBreak-down in technology or systems supportEmployee/customer unwillingness or inability to performFailure to match supply and demand Gap 4: Failure to meet promises The gap between service delivery and external communications The provider promises one thing and delivers another A communications or ‘promises’ gap Causes of gap 4Propensity to over-promise or exaggerateLack of integration between marketing and operationsLack of horizontal communication within the firm Gap 5 The gap between perceived service and expected service. The customer-perceived gap The result of one or more of gaps 1 to 4 SERVQUAL measures gap 5 (perceptions versus expectations) Having administered SERVQUAL, marketers can examine which of the four gaps is responsible for gap 5 Closing the gapsGap 1: Market intelligence gapMarket research; customer feedback; interaction between customers and management; communication between contact personnel and managementGap 2: Standards gap Specify tasks, sequences, and timings as tightly as possible; standardize repetitive tasks to improve consistencyGap 3: Delivery gapImprove recruitment,
  • 24. training, and rewards; clarify roles; empower; improve technology and equipment; educate customers; monitor late/inaccurate deliveries; complaints recovery proceduresGap 4: Communications gapDon’t over-promise; seek input from contact personnel; pre-test advertising; facilitate inter- functional communication E-service quality Parasuraman et al. (2005) developed a measure of service quality for the internet. Twenty-two items across four dimensions: Efficiency (accessibility and speed) System availability (reliable web site/well functioning) Fulfilment (items arrive as promised) Privacy and security Levels of measurement Three sets of measures: Customer measures Service performance measures Financial measures Measuring satisfaction Organizations create customized measures of satisfaction to suit their individual needs Attempts have been made to devise generic models. UKCSI uses five dimensions: staff professionalism quality and efficiency ease of doing business problem-solving
  • 25. timeliness Sainsbury’sCheckoutTrolleys and basketsProductsDeli and fish counterStaffPricingMisc.Help at checkouts Enough time to pack purchasesEasy to steer trolleys Strong bags Wide range of Quality fresh fruit and veg Quick service High quality productAlways available Helpful and courteousClearly marked on shelf Good offersBaby-changing facilities Not crowded 58 statements across seven categories to rate on a Likert scale. Research techniques Questionnaires (SERVQUAL surveys; exit surveys) Critical incident technique Customer panels Mystery customers Complaint (and compliment) analysis
  • 26. Employee research Ethnographic research User-generated content Lost-customer follow-up Setting service standards Q: How far should a firm go in improving service quality? A: As far as customers are prepared to pay for the enhanced level of quality References Cronin, J. and Taylor, S. (1992) Measuring service quality: a re- examination and extension. Journal of Marketing. 56 (3), pp. 55-68. Parasuraman, A., Zeithaml, V., and Berry, L.L. (1985) A conceptual model of service quality and its implications for future research. Journal of Marketing. 49 (Fall), pp. 41-50. Parasuraman, A., Zeithaml, V., and Berry, L.L. (1988) SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing. 64 (1), pp. 12-40. Parasuraman, A., Zeithaml, V., and Berry, L.L. (1991) Refinement and re-assessment of the SERVQUAL scale. Journal of Retailing. 67 (4), pp. 420-450. Parasuraman, A., Zeithaml, V., and Malhotra, A. (2005) E-S- Qual: A multiple item scale for assessing electronic service quality. Journal of Service Research. 7 (3), 213-233.
  • 27. Service Quality and Satisfaction Part 1: Definitions and dimensions Marketing Services 4 Different perspectives Quality is determined by the customer and is the extent to which the offering serves their needs and expectations Quality is conformance to internally-specified standards What is service quality? The discrepancy [gap] between consumers’ perceptions of services offered by a particular firm and their expectations about firms offering such services (Parasuraman, Zeithaml, and Berry, 1988) Dimensions of service qualityReliability (delivering on promises)Dependable and accurate performance. Firm meets its promises (on delivery, price, problem resolution, service provision)Assurance (inspiring trust and confidence)Competent, courteous, credible, offering securityTangibles (representing the firm physically)Appearance of physical elements (inanimate and animate)Empathy (treating customers as individuals)Good communication, customer understanding, and caring individualised attentionResponsiveness (being willing to help)Prompt and helpful employees
  • 28. Examples of dimensionsReliabilityResponsivenessAssuranceEmpathyTangibl esCar repairProblem fixed first time and ready when promisedNo waiting. Responds to requestsKnowledgeable mechanicsAcknowledges customer by name. Remembers previous problemsWaiting area. UniformsArchitectureDelivers plans when promised and within budgetReturns telephone calls. Modifies designs when askedCredentials and reputation. Knowledge and skillsUnderstands client’s industry (B2B). FriendlyOffice area, plans, invoices, dress Alternative view Grönroos (1984) says quality has two dimensions: Technical or outcome dimension (‘what’) Functional or process dimension (‘how’) Excellent performance in one does not necessarily make up for failings in another. Integrated model Brady and Cronin (2001) attempted to combine previous models: Interaction Quality Employee attitude Employee behaviour Employee expertise Physical Environment Quality Ambient conditions Design Social factors Outcome
  • 29. Quality Waiting time Tangibles Valence Service Quality E-service quality E-service quality Efficiency Reliability Responsive Support Security Accessibility What is satisfaction? Satisfaction is the consumer’s fulfilment response. It is a judgement that a product or service provided a pleasurable level
  • 30. of consumption-related fulfilment (Oliver, 1997) Satisfaction is not an absolute. It is relative Can have transaction-specific satisfaction and cumulative satisfaction. Expectancy disconfirmation model Performance/ experience exceeds expectations Satisfaction or delight Positive disconfirmation Performance/ experience lower than expectations Dissatisfaction Negative disconfirmation Performance/ experience meets expectations Confirmation (zero disconfirmation) Satisfaction Based on Oliver (1981) Satisfaction and service quality Satisfaction Service Quality Service Quality Satisfaction
  • 31. Satisfaction Service Quality OR OR Satisfaction and service quality Confusion because service quality and satisfaction both conceptualised as a comparison of what is received with what was expected Prevailing view (e.g. Cronin and Taylor, 1992; Grönroos, 2007) is that service quality is a cognitive judgement that contributes to satisfaction Satisfaction is influenced by both cognitive judgments of performance, but also emotions that result from the service experience (e.g. pleasure, surprise, relief) Satisfaction and service quality Service Quality Product Quality Value Reliability Responsiveness Assurance Empathy Tangibles Satisfaction Emotional response Why is satisfaction important? Satisfaction or delight
  • 32. Loyalty and/or positive WOM Dissatisfaction Switching and/or negative WOM ‘Leaders who do not actively work to increase customer satisfaction will be responsible for damaging their companies’ future earnings and shareholder value’ (Hart, 2007) Satisfaction and retention On average, 65-85% of customers who ‘defect’ to competitors claim they were satisfied with their previous service provider. Reichheld (1996) says we fall into the ‘satisfaction trap’, thinking that satisfaction is the end in itself. What really matters is loyalty. Delight Customer delight means delivering what is unexpected by the customer (Oliver et al., 1997) Delight means surprise, excitement, pleasure However, once customers have been delighted, their expectation levels are raised Results in extra effort and cost to the firm The strategy of under-promising to over-deliver (UPOD) can backfire. Some customers may go elsewhere because the quality level signalled by the firm is below what they consider adequate (Topaloglu and Fleming, 2017)
  • 33. Delight Surprise Joy Employee effort Employee expertise Tangibles Delight Barnes et al. (2016) Expectations Customer expectations are beliefs about service delivery that serve as standards or reference points against which performance is judged Zeithaml et al. (1993) distinguish two levels of expectation: Desired Service Level The level of service the customer hopes to receive, consisting of a blend of what the customer believes can and should be delivered Adequate Service Level The level of service the customer will accept. The minimum service that can be delivered and still meet a customer’s basic needs Zone of tolerance Zone of tolerance is the difference between desired and adequate service levels Zone of tolerance expands and contracts across customers and even within the same customer (depending on the situation)
  • 34. When service falls below the adequate level customers will be frustrated. When it is higher than the desired level, customers will be delighted Desired Service (ideal expectation) Adequate Service (minimum expectation) Zone of tolerance Factors influencing expectations Predicted service expectations: Provider promises WOM Past experience Personal needs Situational factors Perceived alternatives References Barnes, D., Collier, J., Howe, V., and Hoffman, D. (2016) Multiple paths to custoerm delight. Journal of Services Marketing. 30 (3), 277-289. Brady, M. and Cronin, J. (2001) Some new thoughts on conceptualising perceived service quality. Journal of Marketing. 65 (3), pp. 34-49. Cronin, J. and Taylor, S. (1992) Measuring service quality: a re- examination and extension. Journal of Marketing. 56 (3), pp.
  • 35. 55-68. Grönroos, C. (2007) Service Management and Marketing. 3rd ed. Chichester; Wiley. Grönroos, C. (1984) A service quality model and its implications. European Journal of Marketing. 18 (4), pp. 36-44 Hart, C. (2007) Beating the market with customer satisfaction. Harvard Business Review. 85 (3), pp. 30-32. Oliver, R. (1981) Measurement and evaluation of satisfaction processes in retail settings. Journal of Retailing. 57 (Fall), pp. 25-48. Oliver, R. (1997) Satisfaction: A Behavioural Perspective on the Consumer. New York: McGraw-Hill. Oliver, R., Rust, R. and Varki, S. (1997) Customer delight. Journal of Retailing. 73 (3), pp. p. 311-336. Parasuraman, A., Zeithaml, V., and Berry, L.L. (1988) SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing. 64 (1), pp. 12-40. Reichheld, F. (1996) The Loyalty Effect. Boston: Harvard Business School Press. Topaloglu, O. and Fleming, D. (2017) Under-promising and over-delivering: Pleasing the customer or strategic blunder? Journal of Services Marketing. 31 (7), pp. 720-732. Wilson, A., Zeithaml, V., Bitner, MJ., Gremler, D. (2012) Services Marketing. 2nd ed. Maidenhead: McGraw-Hill. Zeithaml, V., Berry, L., and Parasuraman, A. (1993) The nature and determinants of customer expectations of service. Journal of the Academy of Marketing Science. 12 (1) pp. 1-12. Service Encounter and Service Delivery
  • 36. Marketing Services 3 Service encounter A period of time during which a consumer directly interacts with a service (Shostack, 1985) Personal exchanges between customer and service employees/other customers (face-to-face) OR impersonal interactions with technology, equipment, and physical surroundings Moments of truth How consumers evaluate an encounter is critical to the overall evaluation of the purchase and potential re-purchase Every encounter is an opportunity for the customer to evaluate the service provider: ‘a moment of truth’ (Normann, 1984) Encounters will be evaluated on the basis of people, physical evidence, process Critical incidents Specific interactions between customers and service firm employees that are especially satisfying or especially dissatisfying. Not all service incidents are classified as critical, only those that customers find memorable because they are particularly satisfying or dissatisfying (Bitner et al., 1990)
  • 37. Servuction model Customer Other customers Contact personnel Inanimate environment Operations infrastructure (Langeard et al.,1981) Back- stage/office Front- stage/office Servuction system Factory metaphor to describe the service process: emphasises process, system, structure, inputs, speed and efficiency. Recognises that several factors contribute to the bundle of benefits received by customer. Customers regarded as co-producers with a role to play in the production of the service. A resource that can increase the speed and efficiency of production. Model shows visible and invisible elements in the service production system, and how they interact and affect the customer experience Theatre model Setting Actors Audience
  • 38. (Grove and Fisk, 1992) Theatre model Setting (stage and props): service facilities and physical environment. Affects behaviour of customers/employees and defines the service experience Auditioning: hiring appropriate employees Actors: employees whose attitudes, behaviour, appearance influence perceptions. Rehearsal: Training Audience: customers, with cognitive and emotional responses to the experience. Other customers (members of audience) affect experience Performance: employees and customers each with a role and ‘script’ (sequence of behaviours) to follow Back-stage production team: support staff who make a crucial contribution to service planning, production and delivery. Usually out-of-bounds to audience Managing encounters: People Employees trained and empowered to meet expectations, respond to special requests, and resolve service failure Customers ‘educated’ to perform role Customer segments compatible
  • 39. Managing encounters: Technology Migrate customers from face-to-face to computer-mediated encounters or technology-based self service (TBSS) Customer’s own ‘labour’ replaces that of service provider BUT has implications for service quality and value perceptions 10 Managing encounters: Technology Sources of satisfaction Perceived time/money saving Ability to solve a problem immediately More control over process (customization) Greater reliability than human interaction Sources of dissatisfaction Technology failure Process failure Customer-driven failure Insufficient value from resource application 11
  • 40. Pleasure/displeasure in encounters Critical incident technique When did the incident happen? What did the employee do? What happened that made you feel satisfied/dissatisfied? What should have been done differently? Sources of satisfaction/dissatisfaction Recovery: employee response to service failure Adaptability: employee response to requests Spontaneity: unprompted employee actions Coping: employee response to problem customers 12 Customer experience A customer’s ‘journey’ with a firm over time during the purchase cycle and across multiple touch points (Lemon and Verhoef, 2016) Extends across pre-purchase, purchase, and post-purchase Analysis and measurement requires: Customer journey analysis (from customer perspective) Multi-channel perspective
  • 41. Customer experience elements Cognitive (goal attainment) Social (employees and other customers) Emotional (level of delight, joy, excitement, etc) Sensory (physical environment) (Keiningham et al., 2017) Service process The service process describes the method and sequence of links of the service system Process will be designed around contact personnel, back-stage personnel, customers, and technology Tug of war between marketing effectiveness and operational efficiencies Service process has key influence on customer evaluations of service quality Difficult to achieve perfection Customization and lack of standardization Variability of the demand cycle Variability of service demand Customer and contact personnel mood Involvement of customer in service process
  • 42. Blueprinting A graphical approach to depict a ‘map’ of the service ‘system’ showing: All of the steps, tasks, choices, and support processes required to make, provide, and consume a service Those responsible for each task Sequencing and relationship of tasks or steps Timing of tasks or steps Physical evidence at each point of interaction Seek multiple perspectives: operations, marketing, HR, employees, and customers 18 A multi-purpose tool Marketing Obtain customer feedback at concept and service development
  • 43. stage Identify competitive advantage Analyse appropriateness of physical evidence at each point of customer contact Human Resources Analyse staff roles and identify recruitment/training requirements Show employees how their roles fit within the total service delivered to the customer Operations Identify potential operational fail points and improvements Analyse the effectiveness and efficiency of the process Making services availableFactors to considerPurchase frequencyCompetitor activityCustomer locationCost of provisionWillingness to travelStaff commitmentChannel preferencesPositioning Making services available Direct Sales Build relationships with customers, retain profit, maintain quality Intermediaries (e.g. franchising) Improve accessibility and after-sales service, share costs/risks, but loss of quality control, and reduced profit Internet (disintermediation!) Accessibility, convenience, choice, information, competitive pricing
  • 44. References Bitner, M., Booms, B., and Tetreault, M. (1990) The service encounter: diagnosing favourable and unfavourable incidents. Journal of Marketing. 54 (January), 71-84. Grove, S. and Fisk, R. (1992) The service experience as theatre. Advances in Consumer Research. 19 (1), 455-461. Keiningham, T., Ball, J., Benoit, S., et al. (2017) The interplay of customer experience and commitment. Journal of Services Marketing. 31 (2), 148-160. Langeard, E., Bateson, J., Lovelock, C. and Eiglier, P. (1981) Marketing of Services. Cambridge, MA: Marketing Sciences Institute. Lemon, K. and Verhoef, P. (2016) Understanding customer experience throughout the customer journey. Journal of Marketing. 80 (Nov), 69-96. Normann, R. (1984) Service Management. New York: Wiley. Shostack, G.L. (1985) Planning the service encounter. In Czepiel, J., Solomon, M. and Surprenant, C. eds. (1985) The Service Encounter. Lexington: Lexington Books, 243-254. Distinguishing features of services Marketing Services 2 Four distinguishing features Intangibility Inseparability Variability (heterogeneity) Perishability
  • 45. These four features have been identified by a variety of authors, but Zeithaml, Parasuraman, and Berry (1985) provide an excellent review of the features and a summary of their implications (you can cite these authors, if you need to, when discussing the four features) Intangibility Abstract experiences, activities, and processes, so can’t be seen or touched Probably the most fundamental characteristic Implications of intangibility Difficult to evaluate which increases buyer risk Difficult to promote/communicate Impossible to build up an inventory Issues for marketing: Brand image Physical cues Price as a quality proxy Guarantees and endorsements Free trials WOM Implications of intangibility The ease or difficulty of evaluating a service depends on its attributes: Search attributes (attributes that can be evaluated prior to purchase)
  • 46. Experience attributes (attributes that can only be evaluated during/after consumption) Credence attributes (attributes that can’t be evaluated easily even after purchase) Intangibility (Zeithaml, 1981) Restaurant Meals Vacation Haircut Entertainment High In Experience Attributes Computer Repair Education Legal Services Complex Surgery High In Credence Attributes Inseparability Customer consumption often simultaneous with service production/delivery Customers interact with service provider Can include customer co-production Implications of inseparability Service providers require different skill set Co-production can influence service outcome
  • 47. Other customers can be present Difficulty selling to geographically widespread market Difficult to correct defective service Issues for marketing: Employee and customer management Multi-site locations Opportunity for customization Variability (Heterogeneity) No two service provisions are ever identical Affected by personnel delivering service, time of day, other customers present, etc. Individual customer perceptions of service delivery will vary Implications of variability Consistently perfect quality difficult to achieve Service delivered to the customer may not match what was promoted or planned Implications for brand image Greater risk for customer Issues for marketing: Training and/or technology to reduce variability Standardise wherever possible But remember, customers of more ‘hedonic’ services expect a customized approach (Ding and Keh, 2015) Perishability Cannot be stored or saved, and sold later
  • 48. Little or no inventory Implications of perishability Lost revenue (excess capacity) Lost customers (excess demand) Issues for marketing: Managing congestion during peak demand, and unused capacity during low demand A Fifth Characteristic? Lack of ownership Marketing transactions that do not involve a transfer of ownership (Lovelock and Gummesson, 2004) The extended marketing mix Booms and Bitner (1981) extended mix to 7 ‘Ps’. The importance of each will vary according to the particular service Physical Evidence Process People The extended marketing mix People All human actors who play a part in service delivery and influence a buyer’s perceptions Physical Evidence
  • 49. The environment in which the service is delivered and any other tangible elements Process The procedures, mechanisms, and flow of activities by which the service is delivered References Booms, B. and Bitner, M.J. (1981) Marketing strategies and organization structures for service firms. In Donnelly, J. and George, W. eds. (1981) Marketing of Services. Chicago: AMA, pp. 51-67. Ding, Y. and Keh, H. (2015) A re-examination of service standardization versus customization from the consumer’s perspective. Journal of Services Marketing. 30 (1), 16-28. Lovelock, C. and Gummesson, E. (2004) Whither services marketing: in search of a new paradigm and fresh perspectives. Journal of Service Research. 7 (1), pp. 20-41. Zeithaml, V. (1981) How consumer evaluation processes differ between goods and services. In Donnelly, J. and George, W. eds. (1981) Marketing of Services. Chicago: AMA, pp. 186-190. Zeithaml, V., Parasuraman, A., and Berry, L. (1985) Problems and strategies in services marketing. Journal of Marketing. 49 (2), 33-46. Defining and classifying services Marketing Services 1
  • 50. Teaching and learning Lecture: introduction to, and understanding of, key ideas in services marketing, with practical examples of theory in the ‘real world’ Tutorial: application of theory to practice, with an opportunity to discuss and debate. Requires preparation and participation Assessment: opportunity to analyse, evaluate, to make recommendations, and to apply theory to practice Independent Study: reading to enhance understanding of key ideas Core text book Palmer, A. (2014) Principles of Services Marketing, 7th edition, Maidenhead: McGraw-Hill Blackboard Module handbook Lecture slides Announcements Tutorial preparation materials Recommended articles (in Reading List content area) Coursework brief Module handbook Contains: Lecture and tutorial programme Recommended reading Brief for each tutorial
  • 51. Bring it to every session Assessment Coursework 50% 2,500-word assignment based on a case study Online submission: Wednesday March 13th 2019 Examination 50% Two-hour examination in April/May. Essay-style questions. Answer two questions from a choice of four. Each of the four questions will focus on one topic, drawn from study units 6 to 11. Size of the service sector 66% of world GDP 74% of developed countries’ GDP 51% of developing countries’ GDP (UNCTAD, 2012) Share of economic output in UK (Office for National Statistics, 2018) 1948 2016 % of GDP Services Manufacturing Construction Agriculture 46 42 6 6
  • 52. % of GDP 79% Services Manufacturing Construction Agriculture 79 14 6 1 Examples of service industries Supply (retail, energy, transport) Entertainment Government and non-profit Personal and maintenance Tourism, Hospitality, Recreation Healthcare Communication and Information Education and knowledge Financial and insurance What are services? The production of an essentially intangible benefit, either in its own right or as a significant element of a tangible product, which through some form of exchange, satisfies an identified need (Palmer, 2014) What are services? Services are deeds, processes and performances…economic activities whose output is not a physical product, is generally consumed at the time it is produced, and provides added value in forms (such as amusement, comfort, convenience) that are essentially intangible
  • 53. (Wilson et al., 2012) What are services? Products of economic activity that you can’t drop on your foot, ranging from hairdressing to websites (The Economist, 2013) Product-service continuum Tangible Intangible Tangible dominant e.g. coffee Intangible dominant e.g. consultancy Restaurant meal (Shostack, 1977) Trends in services Many manufacturers of products now add supplementary service elements that augment the tangible good Servitization: Manufacturing firms competing through service provision. Requires culture change With increasingly similar products, service becomes the differentiating factor and source of competitive advantage Distinction between the marketing of a service where the service is the core product, and where service is an add-on to a physical good and adds value to the good. Customer service is the service provided in support of a company’s core product. You do not ‘buy’ customer service; you buy the product or service that a company offers.
  • 54. New business models Shift in lifestyle: car ownership forecast to decrease in developed economies (McKinsey, 2017) Automotive manufacturers introducing service element to replace reduced revenues from manufacturing Mercedes (and others) investing in shared mobility services Molecular model (Shostack, 1977) Many ‘products’ are a combination of tangible and intangible: cinema visit food and drink atmosphere ticket purchase and seat reservation method of delivery building and seating the film – entertainment Screen size,
  • 55. sound clarity Classifying servicesPeople as recipientsPossessions as recipientsTangible actionsHigh- involvement personal servicesGoods maintenance servicesIntangible actionsServices for the mindIntangible asset maintenance services Palmer (2014), based on Lovelock (1983) Classification criteriaLow or high customizationLow or high customer participationLow or high level of service provider judgementOne-time episodes or long-term relationship/contractUtilitarian or hedonic serviceWide or narrow demand fluctuationsCapacity constrained or flexibleCustomer to organization or organization to customer or remote interaction Based on Lovelock (1983) The Flower of Service Core Service Payment Consultation
  • 56. Hospitality Safekeeping Billing Order-taking Information Exceptions Facilitating Enhancing Lovelock (1995) Supplementary servicesInformationHow to obtain and use a serviceOrder-takingSecure a commitment to service deliveryBilling Clear and accuratePayment Simple and convenient transactions Consultation Advice tailored to individual customer needs Hospitality Made welcomeSafekeepingFirm will look after personal possessionsExceptionsFlexible and responsive to special requests References Lovelock, C. (1983) Classifying services to gain strategic marketing insights. Journal of Marketing. 47 (summer), pp. 9- 20. Lovelock, C. (1995) Competing on service: Technology and teamwork in supplementary services. Strategy and Leadership. 32 (4) 32-47. McKinsey (2017) Shared mobility. Available from: https://www.mckinsey.com/industries/automotive-and- assembly/our-insights/how-shared-mobility-will-change-the- automotive-industry ONS (2018) Economy. Available from: https://www.ons.gov.uk/economy Palmer, A. (2014) Principles of Services Marketing. 7th edition.
  • 57. Maidenhead: McGraw-Hill. Shostack, G.L. (1977) Breaking free from product marketing. Journal of Marketing. 41 (2), pp. 73-80. The Economist (2013) Economics A to Z. Available from: http://www.economist.com/search/google?cx=013751040265774 567329%3Apqjb-wvrj- q&cof=FORID%3A11&query=index%20terms&op=Search UNCTAD (2012) Statistics. Available from: http://unctad.org/en/Pages/Statistics.aspx. Wilson, A., Zeithaml, V., Bitner M.J., and Gremler, D. (2012) Services Marketing. 2nd ed. Maidenhead: McGraw Hill.