Service Triangle and its Importance along with

Retail Management Notes

1. DISCOVER . LEARN . EMPOWER INSTITUTE –University School of Business DEPARTMENT -Management M.B.A Marketing of Services Faculty Name : Dr Zahid 1

2. 2 Theory of Services CO Number Title Level CO 1 Students will be able to: remember that the service sector is a dominant sector of Indian economy and is here to stay and grow further Remember   CO II List the determinants of the demand and supply for a service product in a competitive market Understand   CO III To understand the factors that affect consumer behavior in service Understand CO IV Understand the concept services demand determinants and their forecasting Understand &Remember Course Outcome Shall be discussed in this lecture www.servicesblogspot.com

3. Unit – 1 Chapter 2 3

4. Learning objective Objective : This course aims at enabling students to apply marketing concepts and principles to the unique challenges and opportunities of services marketing to create customer value. 4

5. The Service triangle 5

6. The Service Triangle (Definition and components) The Service Triangle is a framework for managing the relationships essential for delivering high-quality services. It emphasizes the interactions between “Company”, “Employees”, and “Customers to ensure the delivery of promised services. 1. Company: Defines the service promise through branding, marketing strategies, and systems. 2. Employees: Act as the bridge by delivering on the promise through skills, behavior , and customer interactions. 3. Customers: Evaluate the service based on their expectations and experiences. 6

7. Alignment between the three components is essential for maintaining consistency in service delivery: 1. Company ↔ Employees: Internal marketing ensures employees understand and deliver the service promise effectively. Example: Training programs, incentives, and performance evaluations align employees with organizational goals. 2 . Employees ↔ Customers: Employees' behavior and service quality directly impact customer satisfaction and loyalty. Example: Customer-facing employees in hospitality industries significantly influence perceived service value. 3. Customers ↔ Company: Customer feedback and experiences help organizations improve and refine their services. Example: Customer satisfaction surveys or reviews guide service innovations and improvements. The Service Triangle alignment Interactions 7

8. Importance of the Service Triangle 8 Consistency in Service Delivery : Ensures alignment between what is promised and what is delivered Improved Customer Experience : Enhances satisfaction by focusing on relationships and service quality. Employee Empowerment : Ensures employees have the tools, training, and motivation to deliver quality services. Feedback Loop : Builds a cycle of improvement by aligning customer insights with company strategies. Competitive Advantage : Creates a service differentiation strategy through consistent delivery and trust-building.

9. Real-World Example “Starbucks” Service Triangle 9 Company : Defines the brand promise of a premium coffee experience. Employees : Trained baristas ensure quality preparation, personalized interactions, and ambiance delivery. Customers : Experience the promise through product quality, service atmosphere, and customer relationships.

10. 7P's of Service Marketing Mix 10 1. Product - Core and supplementary services meet customer needs. - Example: Airlines offer transport + in-flight entertainment. 2. Price - Pricing strategies: cost-based, value-based, tiered pricing. - Example: Subscription services like Netflix. 3. Place - Channels for service delivery: physical, online, and apps. - Example: E-learning platforms deliver courses digitally. 4. Promotion - Communication to attract and retain customers. - Example: Social media campaigns, ads, and PR. 5. People - Employees influence customer satisfaction through interactions. - Training ensures consistent quality. 6. Process - Systems that ensure smooth and consistent delivery. - Example: Food delivery processes in Zomato/Swiggy. 7. Physical Evidence - Tangible elements signalling service quality. - Example: Hotel ambiance, branding, and websites.

11. New Service Development Process 11 1. Idea Generation - Identify service opportunities from market gaps, trends, and feedback. 2. Concept Development - Develop the service blueprint and define customer value. 3. Business Analysis - Analyse financial feasibility, costs, and revenue potential. 4. Service Design - Design customer touchpoints and back-end processes. 5. Service Testing - Pilot programs or beta-testing to refine the service. 6. Commercialization - Launch the service with marketing strategies. 7. Post-Launch Review - Monitor customer feedback and performance for improvements.

12. References 12 Bitner, M. J., & Brown, S. W. (2008). Service Blueprinting: A Practical Technique for Service Innovation. California Management Review, 50(3), 66-94. Zeithaml, V. A., Bitner, M. J., & Gremler , D. D. (2018). Services Marketing: Integrating Customer Focus Across the Firm (7th ed.). McGraw-Hill. Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson Education. Grönroos , C. (2015). Service Management and Marketing: Managing the Service Profit Logic. Wiley. Lovelock, C., & Wirtz, J. (2016). Services Marketing: People, Technology, Strategy (8th ed.). Pearson Education. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing, 64(1), 12-40.

13. 13 Assessment model