SERVICES MARKETING

1 NEWDELHI NAGPUR BENGALURU HYDERABAD CHENNAI PUNE LUCKNOW AHMEDABAD ERNAKULAM BHUBANESWAR INDORE KOLKATA GUWAHATI AuthorNopartofthispublicationmaybereprod uced,storedinaretrievalsystem,ortransmit tedinanyformorbyanymeans,electronic,mech anical,photocopying, :2014 , Ramdoot PoojaApartments ,4-B,MurariLalStreet,AnsariRoad,DaryaGan j, :011-23270392,23278631;Fax:011-23256286 Nagpur:KundanlalChandakIndustrialEstate, GhatRoad, :0712-2738731,3296733;Telefax:0712-27212 16 (Old12/1),1stFloor,NexttoHotelHighlands, MadhavaNagar,RaceCourseRoad, :080-22286611,22385461,41138821,22281541 ,Lingampally,BesidesRaghavendraSwamyMath am,Kachiguda, :040-27560041,27550139 Chennai:8/2 Madley2ndstreet, , :09320490962 Pune:FirstFloor,"Laksha"Apartment, ,Mehunpura,Shaniwarpeth(NearPrabhatTheat re), :020-24496323/24496333;Mobile:0937057933 3 Lucknow:HouseNo731,ShekhupuraColony, ,Aliganj, :09307501549 Ahmedabad:114, SHAIL ,1stFloor, , ,NavrangPura, :079-26560126;Mobile:09377088847 Ernakulam:39/176(NewNo:60/251)1stFloor,K arikkamuriRoad,Ernakulam,Kochi :0484-2378012,2378016;Mobile:09387122121 Bhubaneswar:5 StationSquare,Bhubaneswar-751001(Odisha) .

2 Phone:0674-2532129,Mobile:09338746007 Indore:KesardeepAvenueExtension,73,Naray anBagh, ,IIIrdFloor,NearHumptyDumptySchool,Indor e-452007( ).Mobile:09303399304 Kolkata:108/4,BeliaghataMainRoad,NearIDH ospital, ,Kolkata-700010,Phone:033-32449649,Mobil e:7439040301 ,BehindPragjyotishCollege,NearSharmaPrin tingPress, ,Guwahati-781009,(Assam).Mobile:09883055 590,08486355289,7439040301 DTPby: ,desiretouseleisuretime,availabilityofcr editcardsandcreditfacilities,increasinga vailabilityofnewproductsandgadgets,etc., whichalreadycontributestoalmost50percent togrossdomesticproduct(GDP) 25 ConceptofServicesServiceOfferingsandCust omerServiceContributionofServicesSectort oIndia sEconomyReasonsfortheGrowthoftheServiceS ectorTechnologyasaDrivingForceforGrowthR oleofGATS intheServiceSectorDistinctiveCharacteris ticsofServicesasComparedtoProductsTangib ilitySpectrumConceptofServiceMarketingTr iangleServicesMarketingMix AnOverviewQuestionsforDiscussionCaseStud y:ExampleofanInnovativeService:ATMs2 SERVICEQUALITY TheGAPSA nalysisApproach26 46 DeterminingtheOptimalQualityTheGAPA nalysisModelCustomerGapTheProviderGapsSu mmaryofResearchFindingsonServiceQualityM anagementofServiceQualityQuestionsforDis cussionCaseStudy:MobilePhoneServicesinIn diaCaseStudy.

3 MumbaiDabbawalas AmazingService3 CONSUMERBEHAVIOURINSERVICES47 69 Search,ExperienceandCredenceQualitiesSta gesofConsumerDecisionMakingforServicesCu stomerExpectationsofServicesZoneofTolera nceFactorsInfluencingCustomerExpectation sofServiceCustomerPerceptionofServicesCu stomerSatisfactionFactorsthatInfluenceCu stomerSatisfactionServiceQualityServiceQ ualityDimensionsServiceEncountersTypesof ServiceEncountersTheEvidenceofServiceQue stionsforDiscussionTheTestsofCustomerSer vice4 MARKETINGRESEARCHINSERVICES70 86 IntroductionObjectivesofResearchCriteria foranEffectiveResearchinServicesTypesofS erviceMarketingResearchQuestionsforDiscu ssionPracticalApplicationofServiceMarket ingResearch:MysteryShoppingExampleofServ icesMarketingResearch:CriticalIncidentTe chnique5 RELATIONSHIPMARKETING87 111 IntroductionEvolutionofCustomerRelations hipsBenefitsofCustomerRelationshipMarket SegmentationandTargetinginServicesLifeti meRelationshipValueofCustomersSegmentati onBasedonCustomerProfitabilityCustomerRe tentionStrategiesRelationshipBondsStrate giesforBuildingRelationshipsCustomerInte ractionManagement(CIM)ande-CRMS erviceFailureandRecoveryGuidelinesforSer viceRecoveryServiceGuaranteesQuestionsfo rDiscussionCaseStudy:How(not)toChaseCust omersAway6 SERVICESTANDARDS112 130 IntroductionNeedforCustomer-definedStand ardsProcessforDevelopingCustomer-defined StandardsServiceLeadershipServiceQuality andProfitRoleofServiceQualityinOffensive andDefensiveMarketingMeasuringCompany sPerformance theBalancedPerformanceScoreCardQuestions forDiscussionCaseStudy.

4 VasanEyeCare7 SERVICEDESIGNANDPOSITIONING131 150 NewServiceDesign ChallengesNewServiceDevelopmentTypesofNe wServicesNewServiceDevelopmentProcessSer viceBlueprintingComponentsofaServiceBlue printPreparingaServiceBlueprintServicePo sitioningDevelopingtheValuePropositionfo rPositioningBlueOceanStrategy ItsRelevancetoServicesMarketingQuestions forDiscussionCaseStudy:GoldenChariots ExampleofPositioningLuxuryTrainsinIndia8 ROLEOFEMPLOYEESINSERVICESMARKETING151 174 ImportanceofServiceEmployeesBoundarySpan ningRolesEmotionalLabourSourcesofconflic tStrategiesforManagingServiceEmployeesSe rviceCultureInternalMarketingQuestionsfo rDiscussionExamplesofLatestServiceMarket ingPractices RobotsReplacingServiceEmployeesCaseStudy :ServiceCultureofBritishAirways9 ROLEOFCUSTOMERSINSERVICESMARKETING175 194 ImportanceofCustomersRolesPlayedbyCustom ersSelf-serviceTechnology TotalCustomerParticipationStrategiesforE nhancingCustomerParticipationQuestionsfo rDiscussionExampleofHighLevelofCustomerP articipation:HealthClubsCaseStudy:Self-s erviceTechnology eBayIncCasestudy:OnlineBookShops10 SERVICEINTERMEDIARIES195 216 IntroductionTypesofDistributioninService sTheStrategicRoleofIntermediariesKeyInte rmediariesforServiceDeliveryDirectDelive ryFranchisingAgentsandBrokersElectronicC hannelsProblemsandIssuesinChannelManagem entIntermediaryControlStrategiesQuestion sforDiscussionCaseStudy:McDonald sBusinessStrategiesinIndiaCaseStudy:VLCC .

5 GrowingthroughaHealthyFranchiser FranchiseeRelationship11 MANAGINGDEMANDANDCAPACITY217 240 IntroductionVariationsinDemandUnderstand ingDemandPatternsStrategiesforMatchingCa pacityandDemandShiftingDemandtoMatchCapa cityAdjustingCapacitytoMeetDemandYieldMa nagementWaitingLineStrategiesQuestionsfo rDiscussionCaseStudy:WaitingLineManageme ntatTirumalaTemple12 ROLEOFMARKETINGCOMMUNICATIONSINSERVICES2 41 260 ImportanceofIMCinServicesKeyReasonsforGa p4 StrategiestoMatchServicePromiseswithDeli veryManageServicePromisesManageCustomerE xpectationsImproveCustomerEducationManag eInternalMarketingCommunicationTheAbsenc eofCommunicationImportanceofWord-of-Mout hCommunicationThroughtheInternetQuestion sforDiscussionCaseStudy:PromotingMedical andHealthTourisminKerala13 PRICINGOFSERVICES261 284 TheRoleofPriceObjectivesofPricingThePric ingStrategyTripodApproachestoPricingofSe rvicesCost-basedPricingCompetition-based PricingDemand-based(valuetocustomer)Pric ingPricingBasedonPerceivedValuePricingSt rategiesDecidingthePriceforServicesQuest ionsforDiscussionCaseStudy:SpiceJet India sLowCostAirline14 PHYSICALEVIDENCEINSERVICES285 304 UnderstandingPhysicalEvidenceTypesofServ icescapesRolesofServicescapesFrameworkto UnderstandtheEffectsofServicescapeonBeha viourEnvironmentalDimensionsInternalResp onsesBehavioursinServicescapeStrategiesf orPhysicalEvidenceDesignQuestionsforDisc ussionCaseStudy:WonderLa,BengaluruCaseSt udy.

6 ServicescapesofCoffeeParloursinIndia15 APPLICATIONSOFSERVICESMARKETING305 327 IntroductionMarketingofFinancialServices MarketingofTourismMarketingofHealthServi cesMarketingofEducationalServicesMarketi ngofProfessionalServicesQuestionsforDisc ussionCaseStudy:AdvertisingCompaniesofIn dia16 RETAILMANAGEMENT328 357 IntroductiontoRetailingFunctionsofRetail ingSpecialCharacteristicsRetailManagemen tStrategyRetailManagementActivitiesRelat ionshipManagementUnethicalPracticestobeA voidedRetailOrganizationStructureRetaili ngSceneinIndiaReliance sEntryintoRetailMarketingGrowthofHighway RetailingProfilesofaFewLeadingRetailersi nIndiaRetailRobotsMerchandisingShrinkage ManagementinRetailQuestionsforDiscussion CaseStudy:TheProsandConsofFDIinRetailCas eStudy:TataStarbucksExpansionInnovations inRetailServiceDelivery17 INSURANCEMARKETING358 372 IntroductiontoInsuranceTheMarketSituatio nforInsuranceSalesForceforInsuranceMarke tingObjectivesforInsuranceChallengesinIn suranceMarketingInsuranceMarketingStrate giesBasicQualitiesNeededforInsuranceSale smen/AgentsPre-requisitesofEffectiveInsu ranceSellingProtectionforConsumersinInsu ranceQuestionsforDiscussionCaseStudy.

7 CelebrityInsuranceBIBLIOGRAPHY373 INTRODUCTIONTOSERVICESC hapterContents ConceptofServices ServiceOfferingsandCustomerService ContributionofServicesSectortoIndia sEconomy ReasonsfortheGrowthoftheServiceSector TechnologyasaDrivingForceforGrowth RoleofGATS intheServiceSector DistinctiveCharacteristicsofServicesasCo mparedtoProducts TangibilitySpectrum ConceptofServiceMarketingTriangle ServicesMarketingMix AnOverview QuestionsforDiscussion CaseStudy:ExampleofanInnovativeService:A TMsCONCEPTOFSERVICESI nordertounderstandtheconceptofservices, , , , ,askforsometeststobedone,andbasedonthere sults, ,seenandfelt, ,isgenerallyconsumedatthetimeitisproduce d,andprovidesaddedvalueinforms(likeconve nience,entertainment,timeliness,comforto rhealth) ,thecoreproductofferingsofhospitals,hote ls,banks,BSNL,BESCOM,Vodafone,colleges,a irlines, , Aformofproductthatconsistsofactivities,b enefitsorsatisfactionsofferedforsalethat areessentiallyintangibleanddonotresultin theownershipofanything.

8 ( ,consultancy,transportation,warehousing, maintenanceservices,constructionofafacto ry,etc.),ortoendcustomers( ,hotel,restaurant,healthcareservices,edu cation,etc.).Serviceofferingscanbesoldby traditionalservicecompanies( ,banks,insurancecompanies,mobileservicel ikeAirtel)aswellasthemanufacturers( ,IBM,GE). (BPOs),billing,andhandlingcomplaints,tak ingorders,doordeliveryofproducts,install ation, , ,watersupply,sewerage,PWD(roadsandbridge s)Lawenforcing,Civil,AdministrativeandDe fenseServicesPolice,Army,Navy,AirForce,F ireService,Judiciary(courts),CivilAdmini stration,MunicipalServices,ParksandPubli cBuildingsINTRODUCTIONTOSERVICES3 TransportandcommunicationRailways,Airlin es,Buses,MetroRail,PostalServices,Teleph ones(BSNL,Airtel,Vodafone,etc.),Broadcas ting(AIR,FM),Telecasting(Doordarshan,cab leTV,TVchannels)DistributivetradeWholesa lers,retailers,dealers,agentsInsurance,b anking,financeBanks,insurancecompanies,f inancialinstitutions,sharebrokersBusines s,professionalandscientificactivitiesAdv ertising,marketingresearch,consultancy,l egal,medical,educational(schoolsandcolle ges),maintenanceandrepairs,employment(HR agencies)Leisure,recreationCinemas,theat res,clubs,gyms,restaurants,hotels,themep arksMiscellaneousBeautyparlours,healthcl ubs,domestichelp,drycleaning,matrimonial servicesCONTRIBUTIONOFSERVICESECTORTOIND IA SECONOMYT heservicesectorisamajorcontributortoIndi a ,aspertheEconomicSurveyofGovernmentofInd ia, ,and2011-12.

9 IT(InformationTechnology,theleadingservi cesector) IT enabledservices Telecommunications Communityservices Hotelsandrestaurants Tourism Organizedretail4 SERVICESMARKETINGA sfarasemploymentisconcerned,theservicess ectorisinsecondplaceinIndia, : Softwareservices Businessservices Engineeringservices Personal,culturalandrecreationalservices Financialservices Travel, ,whichsatisfiedpeople sphysiologicalneedsforfood, ,therewasdemandforimprovedsatisfaction, (activitieswhichconsumersusedtoperformth emselves)likeinteriordecoration,laundry, careofhouseholdproductssuchascarpets,car eofgarden,plumbing,electricalrepairs, :Thedesiretouseleisuretimeforleisurehasl edtogreaterdemandforrecreationandenterta inmentfacilities,travelresorts, ,cr ches,baby-sitting,householddomestichelp, :Improvementinlifeexpectancyhasgenerated greatdemandfornursinghomes, :Thishasledtogreaterdemandforskilledspec ialiststoprovidemaintenanceforcomplexpro ductslikeairconditioners, :Thishasledtothedemandforspecialistsinin cometax,labourlaws,legalaffairs,marriage counseling, :Thishascreatedgreaterdemandforpurchased orleasedservices,carrental, :Proliferationofnewproducts,especiallyco mputer-sparkeddevelopmentofprogramming,s oftwaredevelopment,andBusinessProcessOut sourcing(BPO) , ,especiallyinformationtechnology(IT),isc urrentlyshapingthefieldofservicesector, ,videoconferencing,AutomatedTellerMachin es(ATMs),VoiceMail,InteractiveVoiceRespo nseSystems(IVRS),DishTV,broad-band,Inter netservices, (GPS) likefindingtheirlocation,routetotheirdes tinations,locatinghotels,banks,restauran ts,petrolbunks.

10 Onlineticketbooking(air,railorbus) Netbanking Onlinebillpaying(mobile,landline,LICprem ium) Onlineinformation(FrequentlyAskedQuestio ns,Googlesearch,Wikipedia) Onlineshopping( , )6 SERVICESMARKETING Onlineeducation(MBAandothercourses) Onlinetestsandexaminations BusinessProcessOutsourcing(BPOs) , (SST)basedservicesarenowavailable, ,usingnetbanking,customerscanaccesstheir bankaccountsanywhereintheworld,checkbala nces,paybillsonline,orderdemanddrafts,tr ansferfundstothirdparties, ,usingthewebsiteofamanufacturer, , , ,costs,duration,itinerary, , , (IT)systemsandimprov