Outsourcing Policy

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Brief Contents
Dedications About the Authors About the Contributors of the Cases Preface Acknowledgements v vi xi xxiii xxxiii

Part I:
Chapter 1 Chapter 2 Chapter 3

Understanding Service Products, Consumers and Markets
Introduction to Services Marketing Consumer Behavior in a Services Context Positioning Services in Competitive Markets

2
4 32 56

Part II:
Chapter 4 Chapter 5 Chapter 6 Chapter 7

Applying the 4Ps to Services
Developing Service Products: Core and Supplementary Elements Distributing Service Through Physical and Electronic Channels Setting Prices and Implementing Revenue Management Promoting Services and Educating Customers

82
84 110 134 168

Part III:
Chapter 8 Chapter 9 Chapter 10 Chapter 11

Managing the Customer Interface
Designing and Managing Service Processes Balancing Demand Against Productive Capacity Crafting the Service Environment Managing People for Service Advantage

196
198 228 252 276

Part IV:
Chapter 12 Chapter 13 Chapter 14 Chapter 15

Implementing Profitable Service Strategies 304
Managing Relationships and Building Loyalty Complaint Handling and Service Recovery Improving Service Quality and Productivity Organizing for Change Management and Service Leadership 306 338 365 408

Part V: Cases
Glossary Credits Name Index Subject Index

430
541 549 553 561

2

CHAPTER

consumer behavior in a

SERVICES CONTEXT
LO 5 Know how reducing or increasing

LEARNING OBJECTIVES
By the end of this chapter, students should be able to:
LO 1 Understand the three-stage LO 2 Learn how consumers

model of service consumption. evaluate and choose between alternative service offerings and why they have difficulty making those evaluations. customers face in purchasing services and the strategies firms can use to reduce these perceived risks. form expectations and the components of these expectations.

the level of customers’ contact with a service organization affects the nature of their service experiences. model and understand the interactions that together create the service experience.

LO 6 Be familiar with the servuction

LO 3 Know the perceived risks that

LO 7 Obtain insights from viewing service

delivery as a form of theater.

LO 8 Know how role and script theory

LO 4 Understand how customers

contribute to a better understanding of service experiences. services and what determines their satisfaction.

LO 9 Know how customers evaluate

OPENING VIGNETTE1
SUSAN LEE, SERVICE CUSTOMER
Figure 2.1 New York University is the gateway to bigger and better things for students like Susan Lee.

S

usan Lee, a final-year business student, had breakfast and then logged onto the Internet to check the local weather forecast. It predicted rain, so she grabbed an umbrella before leaving the apartment. On the way to the bus stop, she dropped a letter in a mailbox. The bus arrived on schedule. It was the usual driver, who recognized her and gave a cheerful greeting as she showed her commuter pass.

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Chapter 2 • Consumer Behavior in a Services Context

Arriving at her destination, Susan left the bus and walked to the College of Business. Joining a crowd of other students, she found a seat in the large lecture theater where her marketing class was held. The professor was a very dynamic individual who believed in having an active dialog with the students. Susan made several contributions to the discussion and felt that she learned a lot from listening to others’ analyses and opinions. Susan and her friends had lunch at the recently renovated Student Union. It was a well-lit and colorfully decorated new food court, featuring a variety of small kiosks. There were both local suppliers and brand-name fast food chains, which offered choices of sandwiches, as well as health foods and a variety of desserts. Although she had wanted a sandwich, there was a long queue of customers at the sandwich shop. Thus, Susan joined her friends at Burger...
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