Service from the heart
Jochen Wirtz Patricia Chew Christopher Lovelock
Dedication About the Authors About the Contributors of the Cases Preface Acknowledgments v vii xi xxiii xxxv
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
4 34 66
Chapter 4 Chapter 5 Chapter 6 Chapter 7
Developing Service Products: Core and Supplementary Elements Distributing Services through Physical and Electronic Channels Setting Prices and Implementing Revenue Management Promoting Services and Educating Customers
Applying the 4 Ps of Marketing to Services
96 122 150 188
Chapter 8 Chapter 9 Chapter 10 Chapter 11
Designing and Managing Service Processes Balancing Demand and Capacity Crafting the Service Environment Managing People for Service Advantage
Designing and Managing the Customer Interface
226 264 296 322
Chapter 12 Chapter 13
Managing Relationships and Building Loyalty Complaint Handling and Service Recovery
Developing Customer Relationships Striving for Service Excellence Cases
356 428 502
Chapter 14 Chapter 15
Improving Service Quality and Productivity Organizing for Service Leadership
Glossary Credits Name Index Subject Index
649 657 661 671
RELATIONSHIPS and BUILDING LOYALTY
Recognize the important role customer loyalty plays in driving a service firm’s profitability. Calculate the lifetime value (LTV) of a loyal customer. Understand why customers are loyal to a particular service firm. Know the core strategies of the Wheel of Loyalty that explain how to develop a loyal customer base. Appreciate why it is so important for service firms to target the “right” customers. Use service tiering to manage the customer base and build loyalty.
Understand the relationship between customer satisfaction and loyalty. Know how to deepen the relationship through cross-selling and bundling. Understand the role of financial and non-financial loyalty rewards in enhancing customer loyalty. customization, and structural bonds in enhancing loyalty.
LO 2 LO 3 LO 4
LO 10 Appreciate the power of social,
LO 11 Understand what factors
cause customers to switch to a competitor, and how to reduce such switching. by Customer Relationship Management (CRM) systems in delivering customized services and building loyalty.
LO 12 Understand the part played
12 • Managing Relationships and Building Loyalty
Harrah’s Entertainment’s Customer Relationship Management1 Harrah’s Entertainment is the world’s largest gaming company with its four main brands Harrah’s, Caesar’s, Horseshoe, and the London Clubs family of casinos. It is a leader in the use of highly sophisticated loyalty programs. Harrah’s was first to launch a tiered customer loyalty program in the gaming industry. Today, it has four tiers in its loyalty program—Gold, Platinum, Diamond, and Seven Stars (by invitation only). The program is integrated across all its properties and services. Customers identify themselves (and earn points) at every touchpoint throughout the company, ranging from its gaming tables, restaurants, and hotels, to the gift shops and shows. The points collected can be used to obtain cash, merchandise, lodging, show tickets, vacations, and events. What is special about Harrah’s is not its loyalty program, but what it does with the information gleaned about its customers when they...
References: Kevin P. Gwinner, Dwayne D. Gremler, and Mary Jo Bitner, “Relational Benefits in Services Industries: The Customer’s Perspective,” Journal of the Academy of Marketing Science 26, no. 2 (1998): 101–114.
Please join StudyMode to read the full document