Unit-IV

NOIDA INSTITUTE OF ENGINEERING & TECHNOLOGY
GREATER NOIDA
MBA
Marketing of Services (AMBAMK0413)
Unit 4: Service Performance
By
Dr. Ajay Gangele / Mr. Arun Kumar
Assistant Professor
School of Management
NIET, GREATER NOIDA
Index
S No Content
1 Name of Subject with code, Course and Subject Teacher
2 Brief Introduction of Faculty member with Photograph
3 Evaluation Scheme
4 Syllabus
5 Branch wise Application
6 Course Objective(s)
7 Course Outcome(s)
8 Program Outcomes (POs)
9 COs and POs Mapping
10 Program Educational Objectives (PEOs)
11 Result Analysis
12 End Semester Question paper Templates
13 Prequisite/Recap
. Subject: Marketing of services By: Dr. Ajay Gangele / Mr. Arun Kumar
Index
S No Content
14 Brief Introduction about the Subject with Videos
15 Unit Content
16 Unit Objectives
17 Topic Objectives & Topic Outcome
18 Lecture related to topic
19 Daily Quiz
20 Weekly Assignment
21 Topic Links
22 MCQs
23 Glossary Questions
24 Old question papers
25 Expected Questions
26 Recap of unit
Noida Institute of Engineering and Technology, Greater
Noida
SERVICE PERFORMANCE
Unit: 2
AMBAMK0413 Mr. Arun Kumar

MARKETING OF SERVICES School of Management
MBA
IV SEM
Faculty Profile
Faculty Name: Arun Kumar
Designation: Assistant Professor
Department: MBA
Email ID: arun.kumar@niet.co.in
Qualification: PhD, Pursuing, MBA
Specialization: Marketing & International Business
Research Area: AI in Marketing
Teaching Area: International Business and Marketing
Total Experience: 13+ years
. Subject: Marketing
Subject:ofMarketing
services of Services By: Dr. Ajay Gangele
By:/ Mr.
Dr. Arun
Ajay Gangele
Kumar / Mr. Arun Kumar
Evaluation Scheme
Syllabus
Syllabus
Branch wise Applications
1. Learning how to capture someone’s attention, nudge them towards certain

behaviours.
2. Services marketing is most commonly used by companies that sell to individuals.
3. They research consumer behavior to create advertisements that appeal to certain

demographics, allowing companies to narrow the marketing focus to a
concentrated effort.
4. Use of customer data for achieving customer delight.
Course Objective
• To develop an understanding of the basic concepts and issues in service marketing.
• To build a working service marketing vocabulary so as to understand and discuss
marketing concepts in business settings.
• To learn about key characteristics of service and service processes, customer service
experiences, the role of internal stakeholders in service delivery, and organizational
challenges of managing service.
• To strengthen the ability to justify and support decisions through information
acquisition and management.
• To provide an understanding of how service customers determine value in a service
exchange and how this translates into a satisfied customer base.
Course Outcome
CO-PO Mapping
Mapping of Course Outcomes and Program Outcomes
Sr. Course PO1 PO2 PO3 PO4 PO5 PO6
No Outcome
1 CO 1 M H
2 H M M
CO 2
3 H H H
CO 3
4 H M H
CO 4
5 H H H
CO 5
*H= High *M= Medium

Program Educational Outcomes
PEO1: Conceptual Knowledge to adapt in rapidly changing environment and
learn new skills and demonstrate application of management principles in
professional work setting.
PEO2: Apply appropriate tools for decision making for solving complex
managerial problems in local or global context
PEO3: Exhibit Integrity, social responsibility and teamwork
PEO4: Exhibit ethics, communication skills, leadership qualities and

entrepreneurial mindset
Result Analysis (Department Result, Subject
Result and Individual Faculty Result)
100%
End Semester Question Paper Template
Prerequisite and Recap
Pre requisite of the Unit

• Service performance
• Evaluating Service offerings.

Recap:
• Delivering, Pricing and Managing Service offerings
Introduction to the subject
• The subject of marketing of services gives students a thorough understanding of

the concepts and procedures that go into managing and marketing of services , and
its promotion in related industries.
• It includes intellectual as well as practical aspects of best practices in the service
sector.
• It covers the Basics of service marketing, pricing of services and current trends in
services marketing, which will help in enhancing the knowledge and skills of all
the students who want to be an entrepreneur or build a career in retail, sales,
creative, and professional talents.
Topic Objective /Topic Outcome
Topic 1:
• Service Quality
• Practical Methods for Measuring
Service Quality
• Complaint handling
Definition of Service (CO4)
Berry define service as act, deeds, & performance.
AMA define service as activities, benefits or satisfaction that are

offered for sale, or provided in connection with the sale of goods.
Quality
 In the words of crosby:- Quality is conformance to requirements

 ASQC Define:- Quality is the totality of features and characteristics of a product,
or service that beer on it’s ability to satisfy stated or implied needs.
 Fully satisfy customer requirements at the lower cost.
Service Quality
Expecte
d
service
Service Customer Customer

quality satisfaction loyalty
Perceive
d
service
Practical Methods for Measuring Service Quality
The 5 rules of complaints handling for organizations
1. Have a strategic plan.

2. Train your staff and management in complaints handling.
3. Give complaining enough priority and authority.
4. Ensure that you can process complaints from all sources.
5. Set up processes to log and analyze all complaints and share
with everyone.
Steps for Complaint handling
Topic 2:
• Recovery Management
• Service Guarantee
Recovery Management
• A service failure is usually described as service performance that falls below

customer’s expectations which will have adverse effects on their satisfaction
level for service encounters.
• Therefore, a service recovery involves taking proactive and reactive actions by

the service organization to get things right for the affected customers following
a service failure. In order to conduct an effective service recovery from the
perspective of organization, they must understand the implications of service
recovery and take specific set of actions to conduct effective service recovery
tactics and strategies.
Service Recovery Strategies
• When a service failure occurs, service recovery strategies will be needed to be

implemented by service organizations. This long-term strategy will be embedded
as part of organization’s overall service strategy.
• Service recovery is about the combination of a variety of strategies to solve the

specific context of the problem.
Service Recovery Strategies
• The proposed eight strategies by Zeithaml et al. are:
Benefits of Service Guarantee
(i) Sets Clear Standards for the Organization

(ii) Forces the Company to Focus on its Customers
(iii) A Good Service Guarantee Studies the Impact on Employee
Morale and Loyalty
(iv) Immediate and Relevant Feedback from Customers
What does a Guarantee do?
Types of Service Guarantee
Further, previous research has identified four types of service guarantees:

(i) Specific
(ii) Unconditional
(iii) Implicit and
(iv) Internal
Service Guarantee
(i) A Specific Guarantee: Signals firm commitment on specific attribute

performance such as delivery time or price. Specific guarantees allow
customers to evaluate service by disconfirming attribute performance
expectations. From the firm’s perspective, a specific guarantee can serve not
only as a benchmark to guide employee efforts and firm process design, but
also as a performance measure.
(i) A Specific Guarantee: Signals firm commitment on specific attribute

performance such as delivery time or price. Specific guarantees allow
customers to evaluate service by disconfirming attribute performance
expectations. From the firm’s perspective, a specific guarantee can serve not
only as a benchmark to guide employee efforts and firm process design, but
also as a performance measure.
(iii) Implicit Guarantee: As the term suggests, it is an unwritten, unspoken

guarantee that establishes an understanding between the firm and its customers.
Customers may infer that an implicit guarantee is in place when a firm has an
outstanding reputation for service quality. The focus of an implicit guarantee is
customer satisfaction.
(iv) An Internal Guarantee: It is “a promise or commitment by one part of the

organization to another to deliver its products or services in a specified way or
incur a meaningful penalty, monetary or otherwise.” Since implicit guarantees are
unconditional guarantees (without formal expression of explicit commitment) and
the focus of internal guarantees is limited to coordinating functions and employees,
the subsequent discussion includes only specific and unconditional guarantees.
Topic 3:
• CRM
• Service quality measurement
Definition of CRM
“CRM is concerned with the creation, development and enhancement of

individualized customer relationships with carefully targeted customers and
customer groups resulting in maximizing their total customer life-time value”
“Strategically significant customers”
“Customer relationship management focuses on strategically significant markets.

Not all customers are equally important”
• Therefore, relationships should be built with customers that are likely to provide
value for services
• Building relationships with customers that will provide little value could result in
a loss of time, staff and financial resources
Role of IT in CRM
Technology plays a pivotal role in CRM

• Technological approaches involving the use of databases, data mining and one-to-
one marketing can assist organizations to increase customer value and their own
profitability.
• This type of technology can be used to keep a record of customers names and
contact details in addition to their history of buying products or using services.
• This information can be used to target customers in a personalized way and offer
them services to meet their specific needs.
• This personalized communication provides value for the customer and increases
customers loyalty to the provider.
Implementing a relationship marketing strategy
Relationship marketing is based on the tenets of customer experience management

(CEM), which focuses on improving customer interactions to foster better brand
loyalty. While these interactions can still occur in person or over the phone, much
of relationship marketing and CEM has taken to the Web.
With the abundance of information on the Web and flourishing use of social media,
most consumers expect to have easy, tailored access to details about a brand and
even expect the opportunity to influence products and services via social media
posts and online reviews.
Today, relationship marketing involves creating easy two-way communication
between customers and the business, tracking customer activities and providing
tailored information to customers based on those activities.
Relationship Management
 Relationship management is a strategy in which an organization maintains a
continuous level of engagement with its audience. This management can happen
between a business and its customers or between a business and other businesses.
Relationship management aims to create a partnership between the organization
and its audience, either customer or business, rather than consider the relationship
merely transactional.
 Relationship management involves any process or strategy used to build support

for a business and its offerings and increase brand loyalty. Most often relationship
building occurs at the customer level, but it is valuable at the business level as
well. While a business may choose to hire a relationship manager to oversee these
tasks, it may also integrate these duties with other positions, such as marketing or
human resources.
Main Difference between Relationship Marketing
and Relationship Management
While relationship marketing is a sales and marketing concept, CRM refers to the
tools used to carry out the concept. Relationship marketing is implemented as a
strategy and includes activities such as identifying long-term sales and retention
goals, public relations, marketing and advertising campaigns.
CRM includes the operational tasks that support the relationship marketing strategy.
Activities may include gathering data about the customers, then organizing and
analyzing it to create target customer profiles. CRM data is also effective in finding
opportunities to create special offers to reward long-time customers for their loyalty,
further building the relationship.
Types of CRM
• Customer Relationship Management software is the only solution that can help business to
communicate with prospects or customers properly.
Types of CRM
• Operational CRM
• Analytical CRM
• Collaborative CRM
Significance of CRM
 A CRM system consists of a historical view and analysis of all the acquired or to
be acquired customers. This helps in reduced searching and correlating customers
and to foresee customer needs effectively and increase business.
 CRM contains each and every bit of details of a customer, hence it is very easy
for track a customer accordingly and can be used to determine which customer
can be profitable and which not.
Significance of CRM
 In CRM system, customers are grouped according to different aspects according

to the type of business they do or according to physical location and are
allocated to different customer managers often called as account managers. This
helps in focusing and concentrating on each and every customer separately.
 A CRM system is not only used to deal with the existing customers but is also
useful in acquiring new customers. The process first starts with identifying a
customer and maintaining all the corresponding details into the CRM system
which is also called an ‘Opportunity of Business’.
Significance of CRM
 The Sales and Field representatives then try getting business out of these customers
by sophistically following up with them and converting them into a winning deal.
All this is very easily and efficiently done by an integrated CRM system.
 The strongest aspect of Customer Relationship Management is that it is very cost-
effective. The advantage of decently implemented CRM system is that there is very
less need of paper and manual work which requires lesser staff to manage and
lesser resources to deal with. The technologies used in implementing a CRM
system are also very cheap and smooth as compared to the traditional way of
business.
Service Quality Measurement
GAP Model of Service Quality
The Customer Gap
The Services Marketing Triangle
Company
(Management)
Internal External
Marketing Marketing
“enabling the “setting the
promise” promise”
Employees “delivering the promise” Customers
Gaps Model of Service Quality
CUSTOMER Expected
Service
Customer
Gap
Perceived
Service
External
COMPANY Service Delivery Communications to
Gap 4 Customers
Gap 1 Gap 3
Customer-Driven Service
Designs and Standards
Gap 2
Company Perceptions of
Consumer Expectations
Brief Summary Gaps in Service Quality
Daily Quiz
1. Define CRM.
2. Discuss the concept of Services Guarantee.
3. Explain Service recovery with example.
4. State ways to handle Customer Complaint.
5. Explain Gap model of Service Quality.
You tube & NPTEL Video Links and Online Courses
Details
• https://www.youtube.com/watch?v=T456sxZ0EIo
• https://www.youtube.com/watch?v=VxYrLYBt2yQ
• https://www.youtube.com/watch?v=3U5o2PT8qlU&t=36s
• https://nptel.ac.in/courses/110/105/110105038/
• https://www.youtube.com/watch?v=UaKtVtTahCQ
• https://www.youtube.com/watch?v=DV8NnBBmYso
• https://www.youtube.com/watch?v=68M7Dm25ZDA&list=RDCMUCch9-kudvO8
7zJhFewOUzdQ&index=5
• https://www.youtube.com/watch?v=tAjfH2qgAyg
MCQs
1. Which of the following is difficult to evaluate?

A. Jewelry
B. Auto repair
C. Furniture
D. Clothing
2. Evaluation of Medical Diagnosis service is mainly depends on ________.
A. High in experience quality
B. High in credence quality
C. High in search quality
D. Both a and c
MCQs Contd.
3. A service guarantee must not be _____
A. Conditional
B. Meaningful
C. Easy to invoke
D. Easy to communicate
4. Service Guarantees are not appropriate when
A. It is easy to invoke
B. Buyer resistance is high
C. It involves restitution
D. Price of the service is low
Weekly Assignment
1. Discuss the role of CRM in Service Performance. What strategies are adopted
in developing relationship with customers.
2. Define service quality. Explain how it is measured. Answer with special
reference to automobile servicing industry.
Old Question Papers links
2021-22 AMBAMK0413.pdf (niet.co.in)
2022-23-AMBAMK0413.pdf (niet.co.in)
Expected Questions for University Exam
1. Explain service quality.

2. Describe service performance.
3. Define service guarantee.
4. Describe types of service guarantee.
5. Describe CRM & its types.
6. Explain various service recovery strategies.
7. State ways to handle Customer Complaint.
8. Explain Gap model of Service Quality.
References
1. Services Marketing Text and Cases, Vinnie Jauhari & Kirti Dutta, Oxford
Uniersity Press.
2. Services Marketing, Zeithaml Valerie and Mary Jo Bitner, Gremler & Pandit,
Tata McGraw Hill.
3. Services Marketing, Lovelock, Christopher. Prentice Hall.
4. Services Marketing, Nargundkar, Rajendra. Tata McGraw Hill
5. The Essence of Services Marketing, Adrian Payne. PHI.
Services Marketing, Ravi Shankar. Excel Publishing
Recap
• Service Performance
• Evaluating Success of Service Offering
• Service quality and measurement
• Complaint handling
• Recovery management
• Service Guarantees
• Role of CRM
• The Gaps Model of Service Quality
Case Study On Gap Model Of Service Quality With
Respect To Healthcare Industry
• In the healthcare industry the Gap Model of Service Quality can be a valuable
framework for understanding and improving the quality of service delivery. The
model identifies five key gaps that can occur in the service delivery process leading
to potential service quality problems.
• 1. Gap 1: The Knowledge Gap. This gap occurs when there is a difference between
patient expectations and management perceptions of those expectations. Healthcare
providers may not fully understand or be aware of patient needs and expectations
leading to a discrepancy in the quality of service provided.
• 2. Gap 2: The Policy Gap. This gap arises when management's perceptions of patient
expectations are not translated into service quality specifications. It can result in a
mismatch between what patients expect and what is delivered leading to
dissatisfaction with the healthcare services provided.
3. Gap 3: The Delivery Gap. The delivery gap occurs when there is a discrepancy
between the service quality specifications and the actual service delivery by
healthcare providers. This can happen due to issues such as inadequate training
resources or processes leading to a lower quality of service than what was promised
or expected.
4. Gap 4: The Communication Gap. This gap happens when there is a difference
between what is promised in terms of service quality and what is communicated to
patients. Effective communication is crucial in the healthcare industry to manage
patient expectations and ensure that patients are well-informed about the services
they receive.
5. Gap 5: The Perception Gap. The perception gap occurs when patients perceive the
service quality differently from what was actually delivered. Factors such as
personal experiences emotions and prior expectations can influence how patients
perceive the healthcare services they receive.
By identifying and addressing these gaps in the service delivery process healthcare
providers can improve the quality of service they provide to patients and enhance
patient satisfaction and outcomes. This model serves as a valuable tool for
healthcare organizations to assess and improve their service quality delivery
processes.
Thank you

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NOIDA INSTITUTE OF ENGINEERING & TECHNOLOGY

AMBAMK0413 Mr. Arun Kumar

1. Learning how to capture someone’s attention, nudge them towards certain

2. Services marketing is most commonly used by companies that sell to individuals.

3. They research consumer behavior to create advertisements that appeal to certain

4. Use of customer data for achieving customer delight.

*H= High *M= Medium

PEO3: Exhibit Integrity, social responsibility and teamwork

PEO4: Exhibit ethics, communication skills, leadership qualities and

Pre requisite of the Unit

• Evaluating Service offerings.

• The subject of marketing of services gives students a thorough understanding of

Unit 4: Service Performance

Berry define service as act, deeds, & performance.

AMA define service as activities, benefits or satisfaction that are

 In the words of crosby:- Quality is conformance to requirements

Service Customer Customer

1. Have a strategic plan.

Unit 4: Service Performance

• A service failure is usually described as service performance that falls below

• Therefore, a service recovery involves taking proactive and reactive actions by

• When a service failure occurs, service recovery strategies will be needed to be

• Service recovery is about the combination of a variety of strategies to solve the

• The proposed eight strategies by Zeithaml et al. are:

(i) Sets Clear Standards for the Organization

Further, previous research has identified four types of service guarantees:

(i) A Specific Guarantee: Signals firm commitment on specific attribute

(i) A Specific Guarantee: Signals firm commitment on specific attribute

(iii) Implicit Guarantee: As the term suggests, it is an unwritten, unspoken

(iv) An Internal Guarantee: It is “a promise or commitment by one part of the

Unit 4: Service Performance

“CRM is concerned with the creation, development and enhancement of

“Customer relationship management focuses on strategically significant markets.

Technology plays a pivotal role in CRM

Relationship marketing is based on the tenets of customer experience management

 Relationship management involves any process or strategy used to build support

 In CRM system, customers are grouped according to different aspects according

GAP Model of Service Quality

Employees “delivering the promise” Customers

1. Which of the following is difficult to evaluate?

1. Explain service quality.

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H= High M= Medium