Lecturer: Ren, Xiaofeng/任晓峰
the School of Management of Marketing and logistics
Cell phone: 17327981858
Email: [email protected]
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language requirements for
bilingual course
ENGLISH:
textbook+PPT+exercises+quiz+examination
CHINESE:
speaking
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Chapter 1
An Introduction to
Services
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•Economic value, like the coffee bean,
progresses from commodities to goods
to services to experiences.
--Joseph B. Pine II & James H. Gilmore
The Experience Economy
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Chapter Objectives
•Understand the basic differences between goods and
services.
•Appreciate the factors that create the customer's
service experience.
•Comprehend the driving forces behind the increasing
demand for services marketing knowledge.
•Understand the two organization models used in
service firms: the industrial management model and
the market-focused management model.
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Opening Vignette: Private Escape
Private Escape is a worldwide destination club with a business model
similar to a private country club where a limited number of members have
virtually unlimited access to a global portfolio of exquisitely maintained,
luxurious vacation homes complete with five-star concierge services.
Private Escape understands the bundle of benefits provided to its members
through the effective management of the member’s service experience.
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What is a Service?
Services: deeds, efforts, or performances
Goods: objects, devices, or things
GE and IBM are generally thought of as major
goods producers, who now generate more
than half of the revenues from services.
The distinction between goods and services is
not perfectly clear.
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Figure 1.1: Scale of Market Entities
1.Helps illustrate how products fall along a continuum that ranges from tangible
dominant to intangible dominant.
2.Defining service businesses too narrowly, firms can develop classic cases of
marketing myopia.
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Figure 1.2: Molecular Model
1.A conceptual model of the relationship between tangible and intangible
components of a firm’s operations.
2.Understanding the importance and components of the service experience
is critical.
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•Benefit concept: Encapsulation of benefits
in the consumer’s mind
1. Services deliver a bundle of benefits through
the experience that is created for the
consumer.
2. Tide’s core benefit concept
–Might simply be Cleaning or
•Cleanliness
•Whiteness
•Motherhood
What is benefit concept?
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What is the Servuction model?
(visible)
Servicescape
Contact personnel
Service providers
Other customers
(invisible)
Organization and
systems
Servuction Model
A framework
for understanding
the consumer’s
experience
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Invisible Visible
Inanimate
Environment
Contact
Personnel
Or
Service
Provider
Invisible
organization
and systems
Customer A
Customer B
Bundle of
service
benefits
received
by Customer A
Figure 1.3: The Servuction Model
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•Other customers
1.Plainly visible to consumers
2.Many services serve multiple
customers simultaneously. The
influence of other customers can be
active or passive.
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Why Study Services?
1. Growth in the service sector employment in
2010
–78% of GDP in Japan (58% in 1990)
–75% of GDP in the European Community (60%
in 1990)
2. The bulk on new jobs created in America over
the last 30 years have been white-collar jobs, in
higher-level professional, technical,
administrative, and sales positions.
3. Economic Impact
–81% of workforce in the United States (74% in
2005)
–The majority of industries in the U.S. economy
do not produce, they perform
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The Service Revolution
Industrial
Management model:
an approach to
organizing a firm that
focuses on revenues
and operating costs and
ignores the role
personnel play
ingenerating customer
satisfaction and
sustainable profits.
Market-focused
Management model:
a new organizational
model that focuses on
the components of the
firm that facilitate the
firm’s service delivery
system.
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•Sales Revenues are a function of:
–Location Strategies
–Sales Promotions
–Advertising
•Labor and operating costs should be
kept as low as possible
•Places a higher value on upper and
middle managers
•Replaces full-time personnel with part-
time personnel to reduce costs
Industrial Management Model
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Consequences
•Produce dead-end front-line jobs, poor
pay, superficial training, no
opportunity for advancement, if any,
access to company benefits.
•Can lead to customer dissatisfaction,
flat or declining sales revenues, high
employee turnover, little service
productivity.
Industrial Management Model
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The
service
strategy
The
customer
The
systems
The
people
•The organization
exists to serve
the needs of the
people who serve
the customer
•The company
exists to serve
the customer
Figure 1.6: The Services Triangle
Is the framework that
supports the market-
focused management
model by depicting
the relationships
among……
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1.Communicate the
service strategy to
the customer (Firm’s
commitment to excellence)
2.Communicate the
service strategy to
the employees (Good
service starts at the Top)
3.Consistency of the
service strategy to
run the day-to-day
operations
4.Impact of
organizational systems
upon customers
5.Importance of
organizational systems
and employee efforts
6.The customer/service
provider interaction
(Critical incidents or “moments of
truth”)
Six Key Relationships
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•Recognizes that employee turnover and
customer satisfaction are clearly related.
1. Ties pay to performance
2. Focus on selection and training of personnel.
•Employs more full-time employees.
1. Refuse to sacrifice competent and motivated full
time personnel in the name of lower operating costs.
Market-Focused Management
Model
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•Attempting to utilize innovative data to
examine the firm’s performance by looking
beyond generally accepted accounting
principles. New accounting measures:
1. The value of customer retention as
opposed to obtaining new customers
2. The costs of employee turnover
3. The value of employee training
4. The monetary benefits associated with
servie recovery
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Summary
•Ultimately, service marketing is about
managing the compromising relationships
that must exist among marketing, operations,
and human resources.
•Services permeate every aspect of our lives;
consequently, the need for services
marketing knowledge is greater today than
ever before.
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1. Which of the following businesses would
be characterized as a pure service?
insurance
farming
mining
there is no such thing as a pure service
A
B
C
D
提交
单选题 1分
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2. Which of the following sets of terms best
describes a service?
objects, devices, and performances
deeds, effort, and performances
effort, objects, and deeds
objects, devices, and things
A
B
C
D
提交
单选题 1分
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3. The continuum that ranges from tangible-
dominant to intangible-dominant is referred
to as:
the services triangle
the Servuction model
the scale of market entities
the service-profit chain
A
B
C
D
提交
单选题 1分
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4. Which of the following fields would be
least likely to be described as intangible-
dominant?
manufacturing
education
insurance
banking
A
B
C
D
提交
单选题 1分
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5. _______ results in the practice of too
narrowly defining one’s business:
Services marketing
Marketing management
Marketing myopia
Scale of market entities
A
B
C
D
提交
单选题 1分
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6. According to the Servuction Model, factors
that influence the customer's service
experience include all of the following except:
price
contact personnel/service providers
other customers
servicescape
A
B
C
D
提交
单选题 1分
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7. Servicescape consists of which of the
following features:
personal artifacts
inanimate objects
signs
all of the above
A
B
C
D
提交
单选题 1分
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8.The industrial management model
believes
employees want to do good work
front-line personnel are more important
than upper-and middle-managers.
technology should be used to assist
employees
labor and operating costs should be
kept as low as possible
A
B
C
D
提交
The industrial management model believes
单选题 1分