Service Marketing

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Services Marketing

“Okay, everyone knows that the Net is changing everything . . . that’s old news. The savvy companies are already asking themselves: what comes next? Chapter Two of the Internet will be about the mass proliferation of e-services.”

K. Douglas Hoffman, Colorado State University
Dr. Hoffman earned his master’s and doctorate degrees from the University of Kentucky and his bachelor’s degree from The Ohio State University. He has been formally recognized for teaching excellence and has served as past education coordinator for the Services Marketing Special Interest Group of the American Marketing Association. Dr. Hoffman currently is a professor of marketing and has taught such courses as Principles of Marketing, Services Marketing, E-Marketing, Retail Management, and Marketing Management. His primary teaching and research passion is services marketing. He launched the first services marketing classes at Mississippi State University, the University of North Carolina at Wilmington, and Colorado State University. Prior to his academic career, Dr. Hoffman was actively involved in his familyowned golf course business, served as a distribution analyst for Volkswagen of America, and worked as a research analyst for the Parker Hannifin Corp. His current research and consulting activities are primarily in the areas of customer service/satisfaction and services marketing education. Dr. Hoffman has coauthored two other South-Western/Thomson Learning texts: Essentials of Services Marketing and Managing Services Marketing, both with John E. G. Bateson.

One of the most profound changes driving the growth of the service econ-


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omy has been the phenomenal advance in technology and in particular— the Internet. Let’s recap the growth of the Internet in a nutshell. Sometime around 1996, the obsession with the Internet began. Thousands of businesses, customers, employees, and partners got wired to one another and began conducting business processes online (a.k.a., e-business). Eventually, more and more customers (businesses and final consumers) became wired and formed a critical mass. Through repeated usage, customer trust dramatically increased, and the Net became a viable means for revenue production and economic growth (a.k.a., e-commerce). Hewlett-Packard ( refers to this period as “Chapter One of the Internet.” It was during Chapter One that the foundation of the Internet was laid, providing the infrastructure that enabled the evolution of the Net to follow. Chapter One required users to: do it yourself at your desk on a PC tapping into Web storefronts using monolithic applications where IT (Internet technology) is viewed as an asset

Chapter One is old news. According to the experts, Chapter Two will be about the mass proliferation of e-services. In comparison to Chapter One, which required users to work the Web, Chapter Two is about the Internet working for the user. Now the Internet helps users to: do it for me while I am living my life on PCs, devices, and things through the use of automated e-services using modular e-services where IT is viewed as a service

Chapter Two will require companies to rethink their Web site strategy. In an e-service world, driving thousands of users to your Web site is no longer the

Le ar ni ng ™
—The Hewlett-Packard Company


There’s nothing like leaving on a business trip the day before Thanksgiving. The hapless executive heads for the airport. While she’s en route, all hell breaks loose in Salt Lake City. A blizzard grounds her connecting flight to LaGuardia. All other flights to New York City are overbooked. And by the way, NYC’s taxi drivers have just gone on strike. Not to worry, by the time the executive gets to the airport, several different e-services have gone to work, turning a near disaster into a minor delay.

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• First, the airline’s flight...
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