HC 1 AC Sermsd

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AC Services Marketing

Lecture 1

dr. Pieter Cornelis

April 2015


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http://www.google.nl/url?sa=i&rct=j&q=magische+vallei&source=images&cd=&cad=rja&docid=eGtwAgziDBoJkM&tbnid=2kzOAk4FNANvSM:&ved=0CAUQjRw&url=http%3A%2F%2Ftoverland.nl%2Fmagische-vallei%2F&ei=H-wRUs2sIabG0AX9y4GABA&bvm=bv.50768961,d.d2k&psig=AFQjCNHSrJw_1oyBCOTXnEdnWPq-67NVMg&ust=1376992656450607http://localhost/var/www/apps/conversion/tmp/scratch_4//www.tilburguniversity.edu/nl/


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Contact details…

Dr. Pieter Cornelis

Department of International Event, Music & Entertainment Studies

Office: Fontys Tilburg, P3 building 0.20

Phone: +31622119081

Email: [email protected]

Office Hours: Tue, Wed, Thu 11.00 – 12.00 or by appointment


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Expectations… 1, 2, 4, all)

• What do you expect from this course?

• When will you be satisfied?


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Course description

Service businesses are an increasingly dominant force in world economics. This course is designed to help

you develop an understanding of the unique marketing needs and challenges faced by service organizations

and goods-oriented firms that use service as a competitive strategy in an increasingly challenging global

environment. Approximately 70% of the Dutch GDP and employment are derived from services industries. If

you believe what they say about the oldest profession, then a service was even the first occupation! Why is it

then that marketers only started considering service companies distinct entities in the late 1970s? Serious

research in service industries didn’t start until the mid-1980s. The result is that both academics andpractitioners still have a lot to learn about services phenomena. This course is designed to address this

problem.

In this class, you will be exposed to a new way of thinking about marketing. No longer are manufacturing

processes, defects per one-thousand, or logistics paramount. Services are different. We will discuss how they

are different, why they are different, and what strategies result from these distinctions. We will cover whypeople are essential to service success, why expectations are important to service consumers, how the

physical environment influences service delivery, and how services firms should recover from failure. You will

also learn how quality is evaluated in service firms, why value is an essential deliverable, and what role loyalty

has on the bottom line. In essence, we will look at marketing through a different lens.


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Course objectives

Businesses in today's competitive environment expect you to have a variety of skills when

you graduate. Employers consistently say that they are looking for employees with the

following abilities:

1) good problem solving and critical-thinking skills;

2) excellent communication skills (both written and oral);

3) the ability to work well in teams;

4) listening skills and a willingness to understand the opinions of others; and

5) information literacy.

This course is designed to help you develop these skills in the context of services

marketing so that you will be more prepared to meet the needs (and hopefully even exceedthe expectations) of your future employers. We'll use lectures, class discussions, group

activities, films, presentations and a project to explore services marketing concepts and to

create a unique service experience of our own throughout the course period.


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Course objectives

• To appreciate the differences between services and physical goods and to understand how

these differences translate into strategic direction.

• To understand what quality means in service delivery and how perceptions of service quality

are developed by customers.

• To provide you with an understanding of how service customers determine value in a service

exchange and how this translates into a satisfied customer base.

• To learn about the role of physical evidence in service delivery and what constitutes an

effective service environment.

• To provide you with the knowledge necessary to manage the human constituents in service

delivery.

• To appreciate the ramifications of service failure and the benefits of service recoverystrategies.

• To understand the importance of keeping good current customers and finding good future

customers.


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Course content

Class will consist of a combination of lectures, case studies, and participative

discussions/ activities. The first two hours of the week will be used to present new

theories, constructs and models by the lecturer. During the second block of two hours

these new insights will be applied. The recommended text will provide the general

framework for material to be covered in class. However, additional material will be

presented in class that the student will be required to master. To be successful in this

class, students must attend classes, read assigned sections, and participate in class

discussions.


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Course outline

• 21-4 lesson 1

• 28-4 lesson 2

• 12-5 lesson 3

• 26-5 x

• 2-6 lesson 4 (Efteling)

• 9-6 lesson 5


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Course materials

• Textbook: Wilson, Zeithaml, Bitner & Gremler, Services Marketing:

integrating customer focus across the firm , McGraw-Hill International

Edition, 2012, 2nd European edition

• Handouts, articles: to be found on the portal


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Grading policy…

3 group assignments (75%)

- Analyses

- Expectations

- Satisfaction

Resits in next period

1 individual assignment (25%)

- Strategy

1 bonus assignment (0.5)- Presentation


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Program…

3 group assignments

- Analyses week 1

- Expectations week 2

- Satisfaction week 3

1 individual assignment

- Strategy week 5

1 bonus assignment- Presentation week 5


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Assignments…

• Assignments should be handed in on AC day ( June 22nd ).

• One hard copy per group (assignment 1-3) with individual

attachements of assignment 4.

• Your grade will reflect the amount of effort you devote to the project,

how well you present and support your findings, and how well you

applied all theories, models etc. taught during the classes.

• Other important aspects are congruency, creativity and how realistic

your advice will be, as well as overall impression and applying

academic and professional standards.


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Presentations

• Presentations June 9th 2015

– 5 minutes presentation

– general feedback


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Assignments…

1. Analyses of the Efteling and market

2. Analyses of the expectations

3. Gap-analyses of the service/experience

4. Strategy to improve the customer experience and get better bottom

line results.


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Assignment 1 (group, 25 )

• Make an extensive internal and external analysis of the Efteling and one

of the services of this company.

• Use McKinsey 7S model (or one of the reference models on the next page)

for your analyses and at least 6 other marketing models that you’ve been

taught over the last 4 years of marketing lessons

• Use at least 5 academic references from different academic journals

and/or books (APA-style)

• Maximum of 7500 words


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• Understand the different levels of expectations

• Understand the factors that influence these expectations


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• Make a gap-analysis of the Efteling-experience


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A few questions related to assignment 1…

• What is the structure of this entertainment company, which

companies/brands does it own, what divisions does it have, how

does the network of this company look like, for which succesful

products is this company known for, can you find some financial key

figures, what is the bottom line succes of the company, how does thestrategy of this company look like, what are the plans for the (near)

future, what is the biggest challenge of this company, new releases,

etc.?

• What about the market, trends, developments, driving forces etc.?

• Get familiar with the company (it’s products, services, experiences),

the market, competitors and customers.


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Rephrase in your own words the assignment(s)


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Discussion

• What is entertainment?

• What are services?

• What are experiences?

http://hbr.org/1998/07/welcome-to-the-experience-economy/

http://hbr.org/1998/07/welcome-to-the-experience-economy/http://hbr.org/1998/07/welcome-to-the-experience-economy/http://hbr.org/1998/07/welcome-to-the-experience-economy/http://hbr.org/1998/07/welcome-to-the-experience-economy/http://hbr.org/1998/07/welcome-to-the-experience-economy/http://hbr.org/1998/07/welcome-to-the-experience-economy/http://hbr.org/1998/07/welcome-to-the-experience-economy/http://hbr.org/1998/07/welcome-to-the-experience-economy/http://hbr.org/1998/07/welcome-to-the-experience-economy/http://hbr.org/1998/07/welcome-to-the-experience-economy/


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Introduction to services

• Goods versus services

• Characteristics of services and marketing implications

• Challenges and answer to these challenges

– Services marketing mix

– Marketing triangle


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List 1 List 2 List 3

Blue Jeans Business Suit Appendix Operation

Car Casual Clothing Car Brake Relining

Dental Examination Condo Dress Shoes

Meal at Nice Restaurant Couch Eyeglasses

Hotel Room Dry Cleaning Health Club MembershipHouseplant Fast Food Legal Representation

Golf Lessons Day Care Furniture

Ice Cream Cone Flu Shot Novel

Jewellery House Cleaner Psychotherapy

Laundry Detergent Life Insurance Rental Car

“Lean Cuisine” Dinner Plumbing Repairs Soft DrinkRunning Shoes Poster Framing Tailored Clothing

TV Repair Socks Typing Service

Vacation Package Tax Consultant Xeroxing/Copying

awn Iacobucci 1992). “An Empirical Examination of Some Basic Tenets in Services: Goods-Services Continua” In

Advances in Services Marketing and Management

JAI Press. 1: 23-52.

Goods versus services


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Goods versus services

• What do the products at the top of the list have in common?

• What do the products at the bottom have in common?

• What do the products in the middle have in common?


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Table 1.2

Goods versus Services

Source: A. Parasuraman, V.A. Zeithaml, and L. L. Berry, “A

Conceptual Model of Service Quality and Its Implications

for Future Research,” Journal of Marketing 49 (Fall 1985),

pp. 41 –50.


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Consumer Evaluation Processes for Services

•Search Qualities

– attributes a consumer can determine prior to purchase of a product

•Experience Qualities– attributes a consumer can determine after purchase (or during

consumption) of a product

•Credence Qualities– characteristics that may be impossible to evaluate even after

purchase and consumption


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How Product Attributes Affect Ease of Evaluation

Most Goods

High in searchattributes

High in experienceattributes

High in credence attributes

Difficult

to evaluate*Easyto evaluate

Mos t Services

Clothing

Chair

Motor vehicle

Foods

Restaurant meals

Lawn fertilizer

Haircut

Entertainment

Computer repair

Education

Legal services

Complex surgery

*NOTE: Diff iculty of evaluation tends to decrease with broad expos ure to a service category and frequency of use of a specif ic suppl ier

Evaluating aservice maybe difficult

Uncertainty &perceived risk


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Challenges for Services

• Defining and improving quality

• Designing and testing new services

• Communicating and maintaining aconsistent image

• Accommodating fluctuating demand

• Motivating and sustaining employeecommitment

• Coordinating marketing, operations, andhuman resource efforts

• Setting prices

• Finding a balance between standardization versus personalization

• Ensuring the delivery of consistent quality


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The Services Marketing Triangle


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Elements of the 3 Ps

People

Physicalevidence

Process

• Contact Employees

• Customer Him/Herself

• Other Customers

Tangible Communication

Price Servicescape

Guarantees

Technology

Operational Flow of Activities

Steps in Process

Flexibility v. Standard

Technology v. Human


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What is entertainment?


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Bates, Stephen, and Anthony J. Ferri. "What's

Entertainment? Notes Toward a Definition." Studies in

Popular Culture (2010): 1-20.


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Vorderer, Peter, Christoph Klimmt, and Ute Ritterfeld.

"Enjoyment: At the heart of media

entertainment." Communication theory 14.4 (2004): 388-

408.


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The financial impact of service quality

Chapter 18


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Source: James L. Heskett, W.


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,

Earl Sasser, Jr., and Leonard A.

Schlesinger, The Service Profit

Chain, (New York, NY: The Free

Press, 1997), p. 83.


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Assignment 1

• Entertainment company and a service/experience it offers

• Marketing models for analysing


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A few questions related to assignment 1…

• What is the structure of this entertainment company, whichcompanies/brands does it own, what divisions does it have, how

does the network of this company look like, for which succesful

products is this company known for, can you find some financial key

figures, what is the bottom line succes of the company, how does thestrategy of this company look like, what are the plans for the (near)

future, what is the biggest challenge of this company, new releases,

etc.?

• What about the market, trends, developments, driving forces etc.?

• Get familiar with the company (it’s products, services, experiences),

the market, competitors and customers.


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Documents

HC 1 AC Sermsd