CONTENTS
PART ONE The Basic Building Blocks = 2
Chapter 1 The Service Revolution = 5
The Service Economy = 6
Service at the Firm Level = 8
What Is a Service? = 9
Classification of Services = 10
The Basic Model = 12
Services Cannot Be Inventoried = 12
Services in Action 1.1 Rainforest Cafe = 13
Services Are Time Dependent = 14
Services Are Place Dependent = 15
Consumers Are Always Involved in the Factory = 15
Changes in the Factory Mean Changes in Consumer Behavior = 15
Services in Action 1.2 Domino's Pizza = 16
Changes in the Benefit Concept Mean Changes in the Factory = 17
Everyone and Everything That Comes into Contact with the Consumer Is Delivering the Service = 17
Contact Persons Are Products = 18
Services Cannot Be Quality Controlled at the Factory Gate = 18
A Different Concept of Marketing as an Organizational Function = 19
Sequence of the Book = 19
Part Ⅰ The Basic Building Blocks = 19
Part Ⅱ Configuring the Service Firm = 20
Part Ⅲ Competing as a Service Firm = 21
Notes = 21
Chapter 2 Understanding the Service Consumer = 23
Chapter Overview = 24
The Three-Stage Model of Services Consumer Behavior = 24
The Prepurchase Stage = 24
The Consumption Stage = 25
Postpurchase Evaluation = 25
Services in Action 2.1 Riverside Methodist Hospital = 29
Models of Consumers' Decision-Making Processes = 29
The Consumer as a Risk Taker = 30
Risk Reduction Strategies for Consumer Services = 31
Services in Action 2.2 Fidelity Investments = 32
Risk Reduction Strategies for Industrial and Professional Services = 32
The Consumer as a Rational Mathematician = 33
Shortcomings of the Multiattribute Model for Services = 35
Relating Customer Attributes to Managerial Actions = 36
The Consumer as a Searcher for Control = 36
The Consumer as an Actor within a Script = 39
Services in Action 2.3 Safeway = 42
The Consumer as a Partial Employee = 42
Consumer Behavior and Management Decisions = 43
Questions = 43
Notes = 44
Chapter 3 Understanding the Service Operation = 45
Chapter Overview = 46
Services in Action 3.1 Arby's = 47
Prerequisites for Manufacturing Efficiency = 48
Alternative Strategies for Achieving Manufacturing Efficiency = 49
Applying the Efficiency Model to Services = 49
Potential Solutions to Service Operations Problems = 50
Isolating the Technical Core and Minimizing the Servuction System = 51
The Operations Perspective = 51
The Marketing Perspective = 53
Production-Lining the Whole System = 53
Creating Flexible Capacity = 54
The Operations Perspective = 54
The Marketing Perspective = 54
Increasing Customer Participation = 55
Moving the Time of Demand to Fit Capacity = 55
Summary : The Marketing／Operations Interdependence = 55
Questions = 56
Notes = 56
Chapter 4 Understanding the Service Worker = 58
Chapter Overview = 59
The Importance of Contact Personnel = 59
The Boundary-Spanning Role = 62
Role Stress in Boundary-Spanning Roles = 63
Sources of Conflict in Boundary-Spanning Roles = 64
Services in Action 4.1 Holding It for Eight Hours = 65
The Fight for Control = 66
The Implications of Role Stress for Boundary-Spanning Personnel = 66
Services in Action 4.2 Holding It for Fight Hours(Ⅱ) = 67
Managing the Customer-Contact Personnel Interface = 68
Summary : People as the Product = 69
Questions = 69
Notes = 70
Article 1.1
A Test of Services Marketing Theory : Consumer Information Acquisition Activities / Keith B. Murray = 71
Article 1.2
Critical Service Encounters : The Employee's Viewpoint / Mary Jo Bitner ; Bernard H. Booms ; Lois A. Mohr = 88
Article 1.3
Managing Multiple Demands : A Role-Theory Examination of the Behaviors of Customer Contact Service Workers / Kristopher A. Weatherly ; David A. Tansik = 102
PART TWO Configuring the Service Firm = 114
Chapter 5 The Service Operation = 118
Chapter Overview = 119
The Four Stages of a Service Firm's Operational Competitiveness = 119
Stage 1 Available for Service = 119
Stage 2 Journeyman = 120
Stage 3 Distinctive Competence Achieved = 120
Stage 4 World-Class Service Delivery = 120
The Manufacturing Strategy Paradigm Applied to Service = 121
Baselining Performance = 121
Setting Priorities and Achieving Coherence = 121
Services in Action 5.1 Citicorp = 122
Services in Action 5.2 The Chubb Group of Insurance Companies = 125
Designing the Interactive Process = 126
The Service Operations Manager's Perspective = 126
The Service Marketing Manager's Perspective = 127
Using Flowcharts to Identify the Servuction Process = 128
Services in Action 5.3 Lands' End = 129
A Marketing or an Operations Flowchart? = 129
Flowcharting for New Product Development = 131
Services in Action 5.4 Intercontinental Florist = 133
Process Reengineering and Service Businesses = 133
Summary = 134
Questions = 134
Notes = 134
Chapter 6 The Physical Setting = 135
Chapter Overview = 136
Physical Setting and Different Types of Service Delivery = 136
Physical Evidence and Operational Efficiency = 137
Socializing Employees and Customers = 137
Physical Setting as a Source of Differentiation = 138
Individuals' Responses to Physical Settings = 138
Services in Action 6.1 Surreal but So Real = 139
The Mehrabian-Russell Model = 139
The Servicescapes Model = 140
Services in Action 6.2 Restaurants Tell All about Their Food = 146
Crowding, Capacity, and Control = 146
Waiting in Line Blues = 147
Questions = 148
Notes = 148
Chapter 7 The Service Employees = 150
Chapter Overview = 151
Human Resources Policies and the Customer = 151
Human Resources Policies and Climate or Culture = 152
Services in Action 7.1 Pre-Opening Training at the Sheraton Palace Hotel = 153
Creating the Right Type of Organization = 153
Services in Action 7.2 Taco Bell Recruitment and Empowerment = 154
Empowerment and Enfranchisement = 154
Making Empowerment Work = 155
Services in Action 7.3 Disney World = 157
Making Enfranchisement Work = 158
When to Empower and Enfranchise = 158
Services in Action 7.4 Enfranchisement at Fairfield Inns = 159
Implications for Marketing = 160
Reducing Role Stress with Marketing = 160
Services in Transition = 161
Services in Action 7.5 Northwest Airlines : The Turnaround Bill Arrives = 162
Questions = 162
Notes = 162
Chapter 8 Communications Strategy = 164
Chapter Overview = 165
Setting Communications Strategy for Services = 165
Defining the Target Audience for Service Communication = 165
Advertising to Employees = 166
Setting Communications Objectives for Services = 167
Services in Action 8.1 Influencing the Preconsumption Choice Process : NASDAQ International = 168
Services in Action 8.2 Teaching the Consumer the Script : Wendy's Hamburgers = 170
Communications to Influence Choice or Evaluations? = 171
Dividing the Communications Objectives and Target Audiences among the Channels = 171
Capabilities of Different Channels = 171
Understanding Consumer Information Acquisition = 172
General Guidelines for Communications Messages = 173
Promise What Is Possible = 173
Tangibilize the Intangible = 173
Feature the Working Relationship between Customer and Provider = 174
Reduce Consumer Fears about Variation in Performance = 174
Determine and Focus on Relevant Service Quality Dimensions = 174
Putting the Communications Mix Together = 175
Questions = 175
Notes = 176
Chapter 9 Service Pricing Policy = 177
Chapter Overview = 178
Time-Dependent Capacity and Its Impact on Pricing = 178
The Nature of Service Costs = 179
The Nature of Service Demand = 180
Price Discrimination arid lime-Based Pricing = 180
Discrimination by Time of Usage = 181
Discrimination by Time of Reservation or Ticket Purchase = 181
Services in Action 9.1 Sealink Cross-Channel Ferries = 182
Services in Action 9.2 The Parker House = 184
Multiple Services and Price Bundling = 184
Introducing Nonmonetary Costs into the Analysis = 186
Questions = 188
Notes = 188
Article 2.1
The Influence of Store Environment on Quality Inferences and Store Image / Julie Baker ; Dhruv Grewal ; A. Parasuraman = 189
Article 2.2
What to Tell Customers in Waits of Different Lengths : An Integrative Model of Service Evaluation / Michael K. Hui ; David K. Tse = 202
Article 2.3
The Effects of Filled Waiting Time and Service Provider Control over the Delay on Evaluations of Service / Shirley Taylor = 214
Article 2.4
The Management of Customer-Contact Service Employees : An Empirical Investigation / Michael D. Hartline ; O. C. Ferrell = 226
Article 2.5
Going to Extremes : Managing Service Encounters and Assessing Provider Performance / Linda L. Price ;. Eric J. Arnould ; Patrick Tierney = 249
Article 2.6
A Comparison of Advertising Content : Business to Business versus Consumer Services / L. W. Turley ; Scott W. Kelley = 267
PART THREE Competing as a Service Firm = 276
Chapter 10 Competing as a Service Firm : Genetic Competitive Strategies = 279
Chapter Overview = 280
Competing for a Basic Formula = 280
Basic Competitive Choices = 281
Competing for Reach = 282
Services in Action 10.1 The Club Mediteran$$e'$$e of the Ski Slopes = 283
Competing for Geography = 283
Services in Action 10.2 Never Mind the Ugly Americans = 284
Franchising and the Competition for Geography = 284
Internationalization = 285
Services in Action 10.3 BanPonce Group = 286
Competing for Market Share = 286
Multiserx-ice Strategy = 286
Multiservice Strategy = 287
Dangers of Loss of Focus = 287
Multiservice／Multisegment Firms = 287
Services in Action 10.4 Delta Express, or "Delta Distress"? = 288
Multisite／Multisegment Firms = 288
Refocusing the Service Firm = 289
Competing for Loyalty = 289
Cost of New versus Old Customers = 289
Service Satisfaction System = 290
Service Recovery System = 290
Customer Retention and Quality System = 290
Questions = 291
Notes = 291
Chapter 11 Customer Satisfaction System = 292
Chapter Overview = 293
Justification for Customer Satisfaction = 293
Cost of New versus Old Customers = 293
Competitive Demand for Satisfaction = 294
The Life Cycle Value of Customers = 295
Operationalizing Customer Satisfaction = 296
Calculating the Return from an Investment in Customer Satisfaction = 296
Measuring Customer Satisfaction = 297
Understanding Customer Satisfaction Ratings = 299
Services in Action 11.1 Measuring Customer Satisfaction in the United States = 301
Services in Action 11.2 Measuring Service Quality : Federal Express = 303
Building a Satisfaction Information System = 304
Services in Action 11.3 The Marriott Customer Satisfaction Survey = 305
Questions = 309
Notes = 309
Chapter 12 Service Recovery = 310
Chapter Overview = 311
Service Failures = 311
Customer Complaining Behavior = 313
Value of Complaining Custormers = 314
Service Recovery Strategies = 316
Actively Encouraging Complaints = 316
Listening to Complaints = 316
Implementing Service Recovery Strategies = 317
Measure the Costs = 318
Anticipate Needs for Recovery = 318
Respond Quickly = 318
Define Recovery Strategies = 319
Train Employees = 322
Empower the Front Line = 322
Questions = 322
Notes = 322
Chapter 13 The Customer Retention System = 324
Chapter Overview = 325
Why Are Loyal Customers Valuable to Service Business? = 325
Cost Savings = 326
Services in Action 13.1 The Profitability of Customer Retention Efforts at MBNA = 326
Profits from Referrals = 326
Customer Retention System Components = 327
Pricing for Loyalty = 328
Creating Individual-Level Consumer Franchises = 329
Combining Loyalty Pricing and One-to-One Marketing = 330
Defection Management = 331
Zero Defects versus Zero Defections = 331
Importance of Defection Management = 331
Defection Management Process = 332
Services in Action 13.2 Southwestern Bell Volunteer Ambassador Program = 333
Service Guarantees = 333
Characteristics of Successful Guarantees = 334
Services in Action 13.3 The Hampton Inns' Unconditional Service Guarantee = 335
Questions = 336
Notes = 336
Chapter 14 Competing as a Service Firm : Service Quality = 338
Chapter Overview = 339
Introduction to Service Quality = 339
What Is Service Quality? = 340
Diagnosing Service Quality Failures = 340
Services in Action 14.1 Montgomery County, Ohio = 341
Consumer Expectation versus Management Perception = 341
Management Perception versus Quality Specifications = 342
Service Quality Specifications versus Service Delivery = 343
Service Delivery versus External Communication = 344
Setting and Improving Service Standards = 345
An Appropriate Quality Logic = 346
Measuring Service Quality : The SERVQUAL System = 347
Services in Action 14.2 Parkview Episcopal Medical Center = 351
Creating a Quality Culture = 351
Questions = 353
Notes = 353
Chapter 15 Competing as a Service Firm : Building a Customer-Focused Service Organization = 354
Chapter Overview = 355
The Historical Weakness of Marketing in Service Firms = 355
The Technology Matrix = 355
The Evolutionary Place of Marketing = 357
Services in Action 15.1 La Quinta Motor Inns = 358
The Need for More Customer Orientation = 359
Building Customer Orientation in Service Firms = 359
Changing Culture through Structure = 360
Services in Action 15.2 Dunfey Hotels = 361
Changing Culture through Systems = 362
Changing Culture through People = 362
Changing Culture Directly = 362
Summary = 363
Questions = 364
Notes = 364
Article 3.1 Developing Global Strategies for Service Businesses / Christopher H. Lovelock ; George S. Yip = 365
Article 3.2 Customer Satisfaction Fables / Dawn Iacobucci ; Kent Grayson ; Amy Ostrom = 379
Article 3.3 The American Customer Satisfaction Index : Nature, Purpose, and Findings / Claes Fornell ; Michael D. Johnson ; Eugene W. Anderson ; Jaesung Cha ; Barbara Everitt Bryant = 383
Article 3.4 Customer Evaluations of Service Complaint Experiences : Implications for Relationship Marketing / Stephen S. Tax ; Stephen W. Brown ; Murali Chandrashekaran = 397
Article 3.5 Do Customer Loyalty Programs Really Work? / Grahame R. Dowling ; Mark Uncles = 416
Article 3.6 Customer Switching Behavior in Service Industries : An Exploratory Study / Susan M. Keaveney = 427
Article 3.7 Measuring Service Quality : A Reexamination and Extension / J. Joseph Cronin, Jr. ; Steven A. Taylor = 441
Article 3.8 Research Note : Improving the Measurement of Service Quality / Tom J. Brown, Gilbert A. Churchill, Jr. ; J. Paul Peter = 455
Index = 463
