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(eBook PDF) Principles of Services

Marketing 7th Edition by Palmer, Adrian


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3 Managing the customer experience
3.1 Introduction
3.2 Customer experience
3.3 Frameworks for managing the customer experience
3.4 The effects on customer experience of other
customers
3.5 The effects on customer experience of health, safety
and security considerations
Case study: Creating a drama at T.G.I. Friday’s
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4 Making services accessible to consumers
4.1 Introduction
4.2 When should the service be made accessible?
4.3 To whom should the service be made accessible?
4.4 Where should the service be made accessible?
4.5 How should access be provided? The role of
intermediaries
4.6 Selection of intermediaries
4.7 Franchised service distribution
4.8 Accessibility through co-production
Case study: A bike to rent just whenever and wherever you want it?
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5 Relationships, partnerships and networks
5.1 Introduction
5.2 Network perspectives of marketing
5.3 Theories underpinning networks and relationships
5.4 Relationship marketing and consumer services
5.5 Customer loyalty
5.6 Managing customer information
Case study: Points mean prizes, and a goldmine of data for
companies
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6 Understanding services buying behaviour
6.1 Introduction
6.2 Models of buyer behaviour
6.3 The effects of intangibility and risk on the buying
process
6.4 The decision-making unit
6.5 Learning about buyer behaviour
6.6 Market segmentation and buyer behaviour
Case study: Coffee to go is no go for Israeli consumers
Summary and links to other chapters
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7 Innovation and new service development
7.1 Introduction
7.2 The service life-cycle concept
7.3 Refining the service portfolio
7.4 New service development
7.5 Demand forecasting
7.6 Competitor analysis
7.7 Service deletion
Case study: Mobile banking: hot new service in Mombasa, but why
a cooler reception in Manchester?
Summary and links to other chapters
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8 Developing service brands
8.1 Introduction
8.2 The development of service brands
8.3 Services branding strategy
8.4 Small businesses and brand development
Case study: How far can the Tesco brand be stretched?
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9 Service quality
9.1 Introduction
9.2 Defining service quality
9.3 The service–profit chain
9.4 Frameworks for understanding and measuring
service quality
9.5 Setting quality standards
9.6 Researching service quality
9.7 Managing and monitoring service performance
9.8 Creating a service quality culture
9.9 Managing the extended marketing mix for quality
Case study: ‘Satisfaction guaranteed’ – service customers’ dream
or service providers’ nightmare?
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10 Engaging employees in service delivery
10.1 Introduction
10.2 Internal marketing
10.3 Controlling and empowering staff
10.4 Creating engagement by employees
10.5 Leadership
10.6 Recruiting, training and rewarding employees
10.7 Reducing dependency on human resources
Case study: A 24/7 society may be good for customers, but can
employees cope with the stress?
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11 The pricing of services
11.1 Introduction
11.2 Organizational influences on pricing decisions
11.3 Factors influencing pricing decisions
11.4 Costs as a basis for pricing
11.5 Demand-based pricing
11.6 Competitor-based pricing
11.7 Distortions to market-led pricing decisions
11.8 Pricing strategy
11.9 Service portfolio pricing
11.10 Tactical pricing
11.11 Pricing strategies for not-for-profit services
11.12 Internal market pricing
Case study: UK rail fares move to market-based pricing
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12 Yield management: matching capacity with demand
12.1 Introduction
12.2 Causes and consequences of fluctuating demand
12.3 Managing service capacity
12.4 Queuing and reservation systems
12.5 Yield management and flexible pricing
Case study: Cultural change needed to manage hotel yields more
effectively
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13 Managing communications
13.1 Introduction
13.2 The message
13.3 Channels of communication
13.4 The extended services promotion mix
13.5 Advertising and the media
13.6 Sales promotion
13.7 Personal selling
13.8 Direct marketing
13.9 Public relations
13.10 Sponsorship
13.11 Online communication
13.12 Word of mouth and social network media
13.13 Developing a promotional campaign
Case study: Promoting an ‘ethical bank’
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14 Globalized services marketing
14.1 Introduction
14.2 The importance of international trade in services
14.3 Defining international trade in services
14.4 Reasons for service firms going global
14.5 Analysing opportunities for overseas development
of services
14.6 The foreign marketing environment
14.7 Sources of information on foreign markets
14.8 Refining the marketing programme for foreign
markets
14.9 Market-entry strategies
Case study: Indian call centres create new international trade
Summary and links to other chapters
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Index
About the author
Adrian Palmer is Professor of Marketing at ESC Rennes, France, a Grand Ecole
which has been listed in the Financial Times rankings of the World’s Top 50 schools
for Masters in Management programmes. The School has an active group of
researchers in the field of Services Marketing and Customer Experience
Management. He was previously Professor of Marketing at Swansea University, UK
and before entering academia held marketing positions in the transport and travel
sectors. The author is Associate Editor of the Journal of Marketing Management
and has published articles in many leading journals, including Journal of Services
Marketing, European Journal of Marketing, Journal of Marketing Management and
Tourism Management. Consultancy projects, previous work in the services sector
and courses delivered throughout the world have informed the cases and examples
used in this new edition.
Preface
Today, more people in the Western world earn a living from producing services
than from making manufactured goods. For consumers, increasing wealth has
resulted in opportunities to buy services which were previously unattainable. For
businesses, services are not a luxury, but have become essential inputs as firms
concentrate on their core business activities and buy in specialist services from
outside. Services have become a component of almost all products that we buy, and
in this sense, all businesses are services businesses. The book explores the concept
of ‘service dominant logic’ which puts services at the centre of all value creation
The growth of the services sector has presented many apparent paradoxes.
Despite the efforts of services organizations to improve their quality standards,
dissatisfaction has been seen to grow in many sectors, simply because firms have
not kept up with consumers’ rising expectations. There is the paradox of many
services companies developing relationship marketing programmes with their
customers, but which result in poor perceptions by customers of their relationships,
as firms ‘industrialize’ their service processes. One explanation of such apparent
paradoxes is that service benefits can only be defined in consumers’ minds. With
few tangible cues to go on, the same service can be perceived quite differently by
two different consumers.
This book develops frameworks for understanding services and the effective
marketing of them. Central to this are the characteristics of intangibility,
inseparability, perishability and variability, which have profound implications for
the way that marketing managers in the services sector develop their service offer,
promote it and then deliver it. Traditional marketing-mix frameworks that apply to
manufactured goods do not always work well for services. Services are about
processes as much as outcomes and these processes often involve considerable
interaction between customers and operations people. It follows therefore that
marketing cannot be seen as an isolated function within an organization. Successful
services companies make sure that their front-line staff can competently deliver the
promises which marketing people make to customers. Services marketing cannot be
separated from services management.
The book begins by trying to define services and assessing the impacts of core
service characteristics on marketing activities. In some aspects of marketing, for
example pricing and promotion, there may be relatively few differences between
goods and services in the application of the general principles of marketing. In
other aspects, new principles are called for. For this reason, a chapter is given to
studying service systems in which the customer becomes a co-producer of a service,
something which doesn’t generally occur for goods where production and
consumption are separated. Another chapter is devoted to studying the interface
between human resource management and marketing, something that is vital for the
success of people-based services. Other themes that are emphasized in this book are
the importance of information technology as a tool for producing, distributing and
promoting services, and the increasingly important role of buyer–seller
relationships as a service benefit in its own right. The final chapter considers the
problems and opportunities open to firms expanding overseas in increasingly
competitive global markets for services.
To illustrate the general principles of services marketing, each chapter contains
contemporary In Practice vignettes of good practice drawn from successful services
organizations around the world, while Thinking Around the Subject boxes illustrate
some of the operational challenges of putting theory into practice. The division of
the material in this book into 14 chapters is to some extent arbitrary, and successful
marketing must recognize the interrelatedness of all of the subjects covered. For
this reason, each chapter concludes with a summary of key linkages to other
chapters. Suggestions are made for further reading.
This new edition has been revised to take account of the most recent
developments in services marketing. There is extensive coverage of Internet-based
service delivery, noting the evolution of Web 2.0 to incorporate greater peer-to-peer
interaction. The concept of ‘customer experience’ has aroused recent interest, and a
new chapter is given to exploring experiential aspects of service consumption.
Adrian Palmer
mail@apalmer.com
Acknowledgements
The author and publishers would like to thank the following reviewers for their
comments at various stages in the text’s development: Annie Chen, University of
Westminster Jill Brown, University of Portsmouth Sangwon Park, University of
Surrey Andrea Beetles, University of Cardiff Danilo Brozovic, Stockholm
University Saima Bantvawala, VU University Amsterdam Solomon Russom Habtay,
Witwatersrand For the provision of case studies for the new edition we would also
like to thank: Paul Custance, Harper Adams University College, Shropshire, UK
Irena Descubes, ESC Rennes of School Business, France Michael Etgar, College of
Management, Tel-Aviv, Israel Nicole Koenig-Lewis, Swansea University, UK
Rod McColl, ESC Rennes of School Business, France Alexander Moll, Virtual
Identity AG, Germany Una McMahon-Beattie, University of Ulster, UK
Steve Worthington, Monash University, Melbourne, Australia We would also like to
thank the following organizations for allowing us permission to republish material:
Air Berlin
Amazon.co.uk
Birmingham International Airport British Airways
British Telecom
Cheltenham Tourism
Childbase Nursery
Confused.com
Corbis Images
Crocus.co.uk
Domino’s Pizza
easyJet
Expedia.co.uk
Experian
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