Topics: Star Alliance, Jet Airways, Lufthansa Pages: 65 (12427 words) Published: January 31, 2011

Background of the study:-

Service Marketing

Services include all economic activities whose output are not a physical product, are generally consumed at the time it is produced, and provide added value in forms that are intangible concerns of its purchaser. Philip Kotler has defined Service Marketing as:

“Any act or performance that one party can offer to another, that is essentially intangible and does not result to the ownership of anything. Its production may or may not be tied to a physical product.”

Service Marketing Triangle


External Marketing
– Making Promises


The services marketing triangle shows the 3 interlinked groups that work together to develop, promote and deliver services. Between the three points of triangle there are three types of marketing that must be successfully carried out for a service to succeed – external and interactive marketing. All these activities resolve around making and keeping promises to customers. For services all three types of marketing activities are essential for building and maintaining relationships with customers.

External Marketing – Making Promises
Through its external marketing efforts a company makes promises to its customers regarding what they can expect and how it will be delivered.

Interactive Marketing – Keeping Promises
This is the most critical type of marketing activity from the customers’ point of view. Interactive marketing occurs in the moment of truth when the customers interact with the organization and the service is produced and consumed. Promises are kept or broken and the reliability of service is related every time the customer interacts with the organization.

International Marketing – Enabling Promises
Service providers must have the skills, abilities, tools and motivation to deliver. They must be enabled. Promises are easy to make but unless provided with tools and rewards for good service, the promises may not be kept. This is important as the employee satisfaction is linked with the customer satisfaction.

Conceptual Framework

“Definition of Customer Satisfaction”

Everyone knows what satisfaction is but when they are asked to give a definition. It seems nobody knows.

From the previous sentence, Richard L. Oliver expresses the definition of satisfaction as given below.

“Satisfaction is the consumer’s fulfillment response. It is a judgment that a product to service feature, or the product or service itself, provides a pleasurable level of consumption – related fulfillment.”

Satisfaction is the customers’ evaluation of a product or service in terms of whether that product or service has met their needs and expectations. Failure to meet needs and expectation is brought to dissatisfy with the product or service.

Factors Influence Customer Satisfaction

Product and service features
Consumer emotions
Attributions for service success or failure
Perceptions of equity or fairness

Product and Service Features

Customer satisfaction with a product or service is influenced significantly by the customer’s evaluation of product or service features. Research has shown that customers of services will make trade – offs among different service features (price, quality and etc), depending on the type of service being evaluated and the criticality of the service.

Consumer Emotions

Actually, there are 2 types of emotion that are given below: -

Positive emotions 
Negative emotions 

The emotions can be stable, pre – existing emotions e.g. mood state or life satisfaction. For example, when you are on vacation or at a very happy stage in your life, good mood and positive frame of mind has influenced, you will respond positively to that service.

Attributions for Service Success or Failure

Attributions – the perceived causes of events...
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