Service marketing study

| services marketing | | STUDY GUIDE FOR | | bmar 211 VEC | |*BMAR211VEC* | | SCHOOL OF ECONOMIC SCIENCES | | VAAL TRIANGLE CAMPUS | Study guide compiled by:

Dr N de Klerk Edited nn. = Page layout by Elsabe Strydom, graphikos. Printing arrangements and distribution by Department Logistics (Distribution Centre). Printed by The Platinum Press (018) 299 4226. Copyright ( 2012 edition. Date of revision 2012. North-West University, Potchefstroom Campus. No part of this book may be reproduced in any form or by any means without written permission from the publisher. MODULE CONTENTS Word of welcomevi Contact detailsvi Rationalevi Module objectivesvii How to studyvii Important informationviii Module planxi The prescribed textbook isxii Assessmentxii Action wordsxiii Study iconsxiv

Module outcomesxv Work programmexv Warning against plagiarismxv Study unit 1What is service marketing? 1 1. 1Introduction2 1. 2What are services? 2 1. 3Why services marketing? 3 1. 4Service and technology4 1. 5Characteristics of services compared to goods6 1. 6Services marketing mix? 8 1. 7Staying focused on the customer? 9 1. 8Summary9 1. 9Discussion questions9 1. 10Read thecase studyon p. 153 in the study guide and answer the following questions. 11 Study unit 2Service quality13 2. 1Introduction14 2. 2The customer gap14 2. 3Customer expectations of service18 2. 4Meaning and types of service expectations18 2. Customer perceptions of service20 2. 6Summary28 2. 7Discussion questions, exercise & case study28 2. 8Discussion questions, exercise & case study33 2. 9Discussion questions, exercise & case study35 Study unit 3Listening to customers through research41 3. 1Introduction42 3. 2Using marketing research to understand customer expectations42 3. 3Elements in an effective services marketing research program44 3. 4Summary46 3. 5Discussion questions47 3. 6Exercises47 Study unit 4Building customer relationships49 4. 1Introduction50 4. 2Relationship marketing50 4. 3Relationship value of customers53 4. 4Customer profitability segments54 . 5Relationship challenges56 4. 6Summary57 4. 7Discussion questions57 4. 8Exercises59 Study unit 5Service recovery61 5. 1Introduction62 5. 2The impact of servicefailureand recovery62 5. 3How customers respond to service failures64 5. 4Customers’ recovery expectations65 5. 5Switching versus staying following service recovery66 5. 6Service recovery strategies67 5. 7Summary68 5. 8Discussion questions68 5. 9Exercises69 5. 10Case study: Jet blue: High-flying airline melts down in ice storm70 Study unit 6Service innovation and design75 6. 1Introduction76 6. 2Challenges of service innovation and design76 6. New service development processes77 6. 4Types of service innovations77 6. 5Stages in service innovation and development78 6. 6Service blueprinting81 6. 7Summary84 6. 8Discussion questions85 6. 9Exercises86 6. 10Case study: Shouldice hospital limited86 Study unit 7Managing people91 7. 1Introduction92 7. 2Employees roles in service delivery92 7. 3Customers’ roles in service delivery98 7. 4Summary102 7. 5Discussion questions, exercises and case studies103 Study unit 8Delivering service through intermediaries and electronic channels107 8. 1Introduction108 8. 2Service distribution108 8. 3Direct or company-owned channels108 . 4Franchising109 8. 5Agents and brokers110 8. 6Electronic channels111 8. 7Common issues involving intermediaries113 8. 8Strategies for effective service delivery through intermediaries114 8. 9Summary116 8. 10Discussion questions116 Study unit 9Integrated services marketing communications119 9. 1Introduction120 9. 2The need for coordination in marketing communication120 9. 3Key servicecommunicationchallenges121 9. 4Five categories of strategies to match service promises with delivery123 9. 5Summary128 9. 6Discussion questions128 9. 7Exercises130 Study unit 10Pricing of services131 10. 1Introduction132 0. 2Three key ways that service prices are different for consumers132 10. 3Approaches to pricing services134 10. 4Pricing strategies that link to the four value definitions135 10. 5Summary137 10. 6Discussion questions137 10. 7Exercises138 10. 8Case study: Virgin mobile: Pricing for the very first time139 APPENDIX A: 143 Word of welcome The School of Economic Sciences welcomes you as a learner to the Faculty of Economic Sciences and IT at the North-West University. We hope that the time we spend together while learning to understand Services Marketing will be fruitful, but above all ENJOYABLE.

The aim of this learner guide is to direct your studies for this module in such a way that you always will know what is expected of you and where it fits into our general program of study. General class conduct is also discussed. We hope that this will help you feel more in control of your studies, as these “ class rules” agreed upon will leave you in no uncertainty about what is expected from you (by the lecturer) and what you can expect of the lecturer. The school strives towards integration of existing knowledge with new knowledge and to afford the learner the ability to: • Think logically Gain knowledge of Economic Sciences, in order to • Make a positive contribution to the field of Economic Sciences once you have completed your studies. Contact details The contact details of lecturers involved with this module in this semester are as follows: | Title and Surname | Office number | Telephone number and e-mail address | | Lecturer: | Building 4-G16(a) |(016) 910 3364 | | Dr N De Klerk | | Natasha.[email protected]ac. za | | Secretary: | Building 4-G12(b) |(016) 910 3365 | | Ms Barbie Smith | | Barbie.[email protected]ac. za | Rationale The service sector is one of the fastest growing sectors in the world, emphasising its importance. From a business point of view, businesses have begun to understand the importance of customer service as a way to compete in an increasingly competitive globalenvironment.

Many businesses make use of services as a way to differentiate them from the competition. From a customer’s point of view, customers are becoming more aware of their needs and demand higher levels of service. For this reason services marketing has become much more important as a means of satisfying customer needs and demands. In order to satisfy consumer needs, businesses need to understand how services can influence customer satisfaction and which services are important to customers.

An understanding of services marketing can therefore help businesses to focus their services on specific customers who will want to form a relationship with and become loyal to the business. Services marketing can furthermore be used by any business (even those selling physical products): augmenting the product offering by providing quality services and being able to recover from service failures, will present greater opportunities for customer satisfaction and the development of loyal customers. In this class you will be exposed to a new way of thinking about marketing.

No longer are manufacturing processes, defects per one-thousand, or logistics paramount. Services are different. We will discuss how they are different, why they are different, and what strategies result from these distinctions. We will cover why people are essential to service success, why expectations are important to service consumers, and how service firms should recover from failure. You will also learn how quality is evaluated in service firms, why value is an essential deliverable, and what roleloyaltyhas on the bottom line.

In essence, we will look at marketing through a different lens. Module objectives Upon completion of this module you should be able to demonstrate: • a complete and systematic knowledge of marketing within a service environment, including service quality, the service delivery process, insights into service customers and their decision-making, an understanding of the different available pricing strategies, as well as integrated service-marketing communications; skills, based on an informed comprehension of theories and concepts, to design and develop a proper service offering, to analyse and identify a pricing strategy relevant to a specific service market, to suggest ways on how to build customer relationships and loyalty, and to recover service failure; • and the ability to undertake a literature and environmental review of the service environment and prepare a report as individual or as member of a team, and to communicate these results in writing as well as verbally.

How to study When you study BMAR211, you should: • attentively study the outcomes on all levels (module, learning unit, learning section); • view the module plan from a bird’s eye view of what the module entails; • page through the learning materials to determine the organisation, difficulty level, and volume; • read the learning material according to the instructions provided in the learning guide and learning outcomes; • do all learning activities (exercises) in every learning section (or learning part) of the learning guide; be well prepared for all the contact sessions (discussions) according to the time schedule, in other words study the sections indicated/listed in the learning guide in order to take part in the group discussion; • complete all self-evaluation exercises and mark each according to the answers/instructions/solutions provided; • submit fully completed assignments according to the time schedule; and • complete the summative evaluation [exercise(s)/questions] and follow the instructions provided. Important information Learning outcomes associated with every study unit are listed in this study guide.

All the relevant exercises are provided in the textbook (Zeithaml et al. , 2011). This study guide will therefore act as a “ road map” guiding you through the textbook. Always make sure you know the study material relevant to an exercise before you start with the exercise. If you are asked to prepare an exercise or assignment for a contact session, you should prepare it thoroughly and in such a way that it can be ready to be handed in during the contact session. Make sure that the information relative to an assignment is stapled together.

Always make copies of the assignment, since you can be asked to hand in your answers before the contact session takes place. Attending contact sessions with thoroughly prepared exercises and assignments will add value to this programme. To optimally utilise your time, it is important that you work as follows when studying the module content. • For each contact session you should already have mastered the learning outcomes. • Contact sessions will be used for problem-solving through facilitation and discussion of activities. It is important that you complete the relevant exercises in the study guide before each contact session. The number of contact sessions and the assignments handed in during the contact sessions are indicated in the work schedule. COURCE APPROACH Classes will be a combination of discussion, various exercises (conducted both inside and outside of the classroom), and lectures. You will participate in several role-playing exercises. The purpose of these activities is to provide you an opportunity to practice your communication and services marketing skills. Your class participation is expected and appreciated.

ATTENDANCE Class attendance is very important and attending classes will definitely help to better your proficiency in Services Marketing. A roll call list will be circulated during contact sessions and you will be expected to sign the list. Make sure that you DO SIGN the list. At the end of the contact session, the lecturer will immediately indicate the absence. An excuse such as “ I was in class – I forgot to sign“ is unacceptable. If you did not sign, you were not there. WRITING OF TESTS The dates of the class and semester tests that will be written will be arranged very early in the semester and posted on eFundi.

After we have decided and agreed upon the dates, no changes will be made. Very important: a test is only written once, there is no second chance to write that test. ASSIGNMENTS/SCRIPTS You should hand in your assignments during the normal class periods decided upon for the handing in of assignments. No assignments may be handed in the corridors or during the contact sessions of other students or at the school’s secretary. The secretary is instructed not to accept any assignments by students. Assignments need to be marked off the class lists, to ensure that they were handed in.

The due date for delivering projects or handing in assignments will also be determined very early in the semester. Once we have agreed upon a date for handing in of an assignment, the date is fixed and cannot be changed. Again, it is theresponsibilityof the student to arrange with the lecturer if something unexpected comes up that hinders the handing in of the assignment. Marked assignments/scripts will only be handed out during normal contact sessions. No assignments/scripts will be handed out outside the normal contact sessions (for example the corridor/office/to other students).

When you are absent, you can collect it in the next contact session. ASSIGNMENT FORMATS All assignments must be typed in a Arial/Times new Roman, font size 12, justified alignment and 1? space format. No assignment will be accepted late unless the delay is due to an Official University Excuse. Late refers to after the contact session is over on the day the assignment is due. Assignment Cover Page. You must have a cover page for all work turned in for a grade. On the cover page type: (1) your name (2) student number (3) BMAR211 (4) date assignment is due (5) title of assignment. Staple all pages together.

If you do not have a cover page with the above information, the assignment will not be graded and you will receive a ” zero. ” Why is this important? Some people’s handwriting is very challenging to read! This will ad in getting the grades back to you in a timely manner. Thanks for understanding. eFUNDI & E-MAIL–YOU NEED IT! You will complete web tests and be informed of class activities, grades and assignments, etc. on eFundi. Registered students have access to eFundi sites and all students have an NWU e-mail address. The fastest way for you to get a response from me is using e-mail. This includes questions or comments about the course.

CONDUCT IN THE CLASSROOM Some miscellaneous expectations that I (as the service provider) have of students i. e. , customers) in the delivery (co-production) of this educational service: 1. Do not hesitate to ask questions. If something is unclear to one student, it probably means that several others have the same question. However, please ask the instructor the questions in class or to slow down and repeat something, not another student. 2. We have good equipped classrooms at the North-West University. We want to maintain high quality conditions of these classrooms for the students for future years.

Thus, it is necessary for you to adhere to the established policy of NO BEVERAGES, FOODOR TOBACCO PRODUCTS within the classrooms. This includes having closed containers on the floor, desk, being held, or able to be seen in an open book bag. Your assistance in enforcing this policy is greatly appreciated. 3. No talking in the classroom while your instructor is conducting the class. Please do not talk when students are contributing to class discussion; when guest speakers are visiting with you; during videos; and at times when talking can disturb others in the classroom. 4. Do not come to class late or leave early.

Neither your fellow students nor the lecturer appreciate such disruptions. Students expect instructors to be on time, and the same behaviour is expected from students. If you need to leave during class, please do not cause a second disruption by returning to class a few minutes later. 5. Please avoid lecturers “ Pet Peeves”. Over the years lecturers have observed a variety of student behaviours. Some of them bother lecturers more than others. The worst behaviours students can exhibit include: a lower mark) CREDITS AND NOTIONAL LEARNING HOURS Each module is worth a certain amount of credits.

To obtain a qualification (degree) you need between 400 and 450 credits. Most semester modules in our Faculty, including this module, are worth 16 credits. Notional learning hours indicate the amount of time that the average student will spend to achieve success in a particular module. These notional learning hours will include all the time that you are working on the module, for example attending contact sessions, studying for tests and exams, writing tests and exams, group work, preparation and research for module assessments, etc. In other words, it will be all the time that you spend on the module.

You will get an indication of the notional learning hours by multiplying the credits by 10. This implies that you will have to spend on average 160 hours to achieve success in BMAR211. Remember that we use the average student as yardstick; some students will need more time while others may need less time to be successful. Module plan The following diagram illustrates the lay-out of the module: Services Marketing The prescribed textbook is The content of this learning guide is the “ road map” and important source of your learning material. This guide must be used in conjunction with the Textbook for Services Marketing:

Zeithaml, V. L, Bitner, M. J. & Gremler, D. D. , 2011. Services Marketing: Integrating Customer Focus Across the Firm. 5th Ed. McGraw-Hill: New York, NY. In addition you are required to supplement the notes from class discussions and from the additional learning material. Additional learning material 1. Palmer, A. 2011. Principles of Services Marketing. 6th ed. London: McGraw-Hill. 2. Visit the Emerald, Ebsco Host websites. Accessible through the library website. 3. European Journal of Marketing 4. Journal of Customer Services 5. Journal of Retailing 6. HarvardBusiness Review 7. Managing Service Quality

Bibliographical and text references You are kindly requested to use bibliographical and text references according to the guidelines laid down by the Institution. A copy of the guidelines is available through the library website. Assessment The following A-rules need to be studied carefully: A. 8. 6 Admission to any examination will be granted only to a learner who has proved to the satisfaction of the school director, who acts in consultation with the subject group chairperson, by submission of proof or participation, that the participation requirements of the relevant module, as set out in the relevant faculty rules, have been met.

A. 1. 35 “ Participation mark” means the average mark awarded to a learner in a module by way of formative assessment within a prescribed period for the completion of those teaching-learning programmes which are required as part of the study within the module and for which a mark has been awarded. (A. 1. 5) Evaluating the outcomes of this module will be done in the following way: Participation mark This mark is calculated by using the marks obtained in the assignments, eFundi class tests and the semester tests.

Assessment takes place on a continuous basis by means of a variety of methods and may include active participation in class discussions, formal assignments, group discussion, eFundi class tests and semester tests. It would be advisable to familiarize yourself with the concept of online learning and assessment as you are required to perform on-line assessments and assignments. ~; Semester tests 60% ~; Assignment 30% ~; eFundi Class tests 5% ~; Class participation 5% ~; Participation mark100% This is a guideline and can change. Examination mark ; A 3-hour-paper is written. ~; A sub-minimum of 40% must be obtained in the examination paper. ~; 50% should be obtained in order to pass the module. Module mark ~; Participation mark 50% ~; Examination mark 50% ~; Module mark100% Action words • Define To supply the accurate meaning of concept. • Name/mention/list/state Briefly name/mention/list/state without giving details. Neither a discussion nor an explanation is necessary. • Outline/know/recalls Emphasise the major features, structures or general principles of a topic, omitting minor details.

Slightly more detail than in the case of naming, listing or stating of information is required. • Comment Briefly state your own opinion on a subject. • Comprehend State/show your understanding on a subject by means of a short discussion. • Distinguish State a distinctive feature on a subject/item. • Identify Give the essential characteristics or aspects of a phenomenon, for example a good research design. • Describe Say exactly what something is like, give an account of the characteristics or nature of something, explain how something works. No opinion or argument is needed. • Discuss

Comment on something in your own words. Often requires debating two viewpoints or two different possibilities. • Example A practical illustration of a concept is required. • Explain/clarify Clarify or give reasons for something, usually in your own words. You must prove that you understand the contents. It may be useful to use examples or illustrations. • Evaluate This means that you should analyse a theory, article, prescribed book or similar to determine its worth or value. You should constantly indicate whether you agree or disagree with statements made, and motivate your point of view. Draw a mind map/diagram/figure Outline the main concepts pertaining to the study material by drawing a diagram and completing the concepts in telegram style. Also indicate the relationships between the different concepts. Study icons |[pic] | |[pic] | | | | Important information. | | Study the indicated material(s) in the | | | | | textbook/article, etc. |[pic] | |[pic] | | | | Outcomes. | | Approximate study time. | |[pic] | | | | | | Preparation for contact session/group | | | | | meeting. | | Module outcomes After the successful completion of this module you should be able to demonstrate a complete and systematic knowledge of marketing within a service environment, including service quality, the service delivery process, insights into service customers and their decision-making, an understanding of the different available pricing strategies, as well as integrated service marketing communications.

You should also be able to, based upon an informed comprehension of theories and concepts, design and develop a proper service offering, analyse and identify a pricing strategy relevant to specific service marketing, and suggest ways to build customer relationships and loyalty and to recover from service failures. Furthermore, you should be able to demonstrate the ability to undertake a literature and environmental review of the service environment and prepare a report as individual or as a member of a team and to communicate these results in writing as well as verbally.

Work programme You will be given a handout containing the work programme at the beginning of the semester. Warning against plagiarism [pic] ASSIGNMENTS ARE INDIVIDUAL TASKS AND NOT GROUP ACTIVITIES. (UNLESS EXPLICITLY INDICATED AS GROUP ACTIVITIES) Copying of text from other learners or from other sources (for instance the study guide, prescribed material or directly from the internet) is not allowed – only brief quotations are allowed and then only if indicated as such. You should reformulate existing text and use your own words to explain what you have read.

It is not acceptable to retype existing text and just acknowledge the source in a footnote – you should be able to relate the idea or concept, without repeating the original author to the letter. The aim of the assignments is not the reproduction of existing material, but to ascertain whether you have the ability to integrate existing texts, add your own interpretation and/or critique of the texts and offer a creative solution to existing problems. Be warned: students who submit copied text will obtain a mark of zero for the assignment and disciplinary steps may be taken by the Faculty and/or University.

It is also unacceptable to do somebody else’s work, to lend your work to them or to make your work available to them to copy – be careful and do not make your work available to anyone! What is service marketing? [pic] You should be able to complete this study unit successfully within 15 hours. [pic] This study unit is based on the prescribed textbook (Zeithaml et al. , 2011), Chapter 1. Attentively read through this chapter. [pic] Read the section titled “ How to study” in the module information regarding how to prepare for the contact session. pic] Learning outcomes: After studying Chapter 1 you should be able to: • Explain what services are and identify important trends in services; • Describe the forces that had led to the growth of services marketing; • Explain the need for special services marketing concepts and practices and why the need has developed and is accelerating; • Comprehend the profound impact oftechnologyon service; • Outline the basic differences between goods and services and the resulting challenges and opportunities for service businesses; Discuss the expanded marketing mix for services and thephilosophyof customer focus. [pic] Study Chapter 1 (p. 2 in textbook) thoroughly. A framework for Chapter 1 is provided below and provision has been made to summarise the Chapter. Read through the chapter and complete the preparation exercises indicated at the end of this study unit. 1 Introduction …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. 2 What are services? …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. Services are: ……………………………………………………………………………………… ……………………………………………………………………………………………………. Services are defined as: …………………………………………………………………………. …………………………………………………………………………………………………….. 1. Service Industries, Services as Products, Customer Service, and Derived Service: …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. Service industries and companies include: ……………………………………………………… …………………………………………………………………………………………………….. Services as products represent: ………………………………………………………………… ……………………………………………………………………………………………………. Customer service is: ……………………………………………………………………………… …………………………………………………………………………………………………….. Derived service is: ……………………………………………………………………………….. …………………………………………………………………………………………………….. 2. Tangibility spectrum: ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 3. Trends in the service sector: …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 3 Why services marketing? …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. . 3. 1Service-based economies: …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 3. 2Service as a business imperative in manufacturing and information technology: ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 3. 3Deregulated industries and professional service needs: ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 3. 4Services marketing is different: …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. 1. 3. 5Service equals profits: …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. . 3. 6But “ service stinks”: …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. | EXERCISE 1. 1 | | Roughly calculate your budget for an average month. What percentage of your budget goes for services versus goods? Do the services you | | purchase have value? In what sense? If you had to cut back on your expenses, what would you cut ut? | | | | | | | | | 4 Service and technology …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 4. 1Potential for new service offerings: …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 4. 2New ways to deliver service: …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 4. 3Enabling both customers and employees: …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………… ……………………………….. …………………………………………………………………………………………………….. 1. 4. 4Extending the global reach of services: …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 4. 5The Internet is a service: …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 4. 6The paradoxes and dark side of technology and service: …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 5 Characteristics of services compared to goods …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. 1. Intangibility: …………………………………………………………………………………………………….. …………………………………………………………………… ……………………………….. …………………………………………………………………………………………………….. Resulting marketing implications are: …………………………………………………………… ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 5. 2Heterogeneity: …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. Resulting marketing implications are: …………………………………………………………… …………………………………………………………………………………………………….. …………………………………………………………………… ……………………………….. …………………………………………………………………………………………………….. 1. 5. Simultaneous production and consumption: …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. Resulting marketing implications are: …………………………………………………………… …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. 1. 5. 4Perishability: …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. Resulting marketing implications are: …………………………………………………………… ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 5. 5Challenges and questions for service marketers: …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. TABLE 1. 1: COMPARING GOODS AND SERVICES: | Goods: | Services: | Resulting implications: | | Tangible: | | | Standardised: | | | | Production separate from | | | | consumption: | | | | Nonperishable: | | | Services marketing mix? …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 6. 1Traditional marketing mix: ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. 1. 6. 2Expanded mix for services: …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. People: ……………………………………………………………………………………………. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. Physical evidence: ……………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. Process: ………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 7 Staying focused on the customer? …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 8 Summary …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. [pic] • Complete the discussion questions 1, 2, 3, 4 & 7 (p. 28 in textbook). • Complete the case study: Old MacDonald had a farm (p. 25 in study guide). • Complete/submit your assignments and homework according to the work programme. 9 Discussion questions 1. 9. 1What distinguishes service offerings from customer services?

Provide specific examples. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 9. 2How is technology changing the nature of customer service and service offerings? ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 9. 3What are the basic characteristics of services compared with goods? What are the implications of these characteristics for South African Airways? …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. 1. 9. 4One of the underlying frameworks for the text is the services marketing mix. Discuss why each of the three new mix elements (people, process and physical evidence) is included. How might each of these communicate with or help satisfy an organisation’s customers? ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. . 5How can quality service be used in a manufacturing context for competitive advantage? Think of your answer to this question in the context of automobiles or computers or some other manufactured product you have actually purchased. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. Case study 1: “ Old macdonald had a farm – and a service business too? ” (appendix a) 10 Read the case study on p. 153 in the study guide and answer the following questions. 1. 10. 1To what extent is the presence of a well-developed agricultural service sector a prerequisite for an efficient and profitable agricultural sector?

Or is the development of the agricultural services sector a consequence of advanced farming methods? …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 1. 10. 2From a marketing perspective, discuss the main differences between a crop of potatoes and a camping site. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. 1. 10. 3What are the principal challenges that farmers are likely to face as they develop new consumer services to supplement their basic agricultural output? …………………………………………………………………………………………………….. …………………………………………………………………… ……………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. Service quality [pic] You should be able to complete this study unit successfully within 20 hours. [pic]

This study unit is based on the prescribed textbook (Zeithaml et al. , 2011), Chapters 2, 4 and 5. Attentively read through these chapters. [pic] Read the section titled “ How to study” in the module information regarding how to prepare for the contact session. [pic] Learning outcomes: After studying Chapters 2, 4 & 5 you should be able to: • Defend the gaps model as a useful framework for understanding service quality in an organisation; • Comprehend that the most critical service quality gap to close is the customer gap; • Know that four gaps that occur in companies are responsible for the customer gap; Describe the factors responsible for each of the four provider gaps; • Outline the Gaps Model; • Discuss service expectations; • Describe what influences customer perceptions and the relationships among customer satisfaction, service quality, and service encounters; • State the importance of customer satisfaction – what it is, the factors that influence it, and the significant outcomes resulting from it; • Distinguishes between the five key dimensions of service quality: reliability, responsiveness, empathy, assurance, and tangibles; Comprehend that service encounters or the “ moments of truth” are the essential building blocks from which customers form their perceptions. [pic] Study Chapter 2 (p. 31 in textbook), 4 (p. 74 in textbook) and 5 (p. 100 in textbook) thoroughly. A framework for these chapters is provided below and provision has been made to summarise the chapters. Read through the chapters and complete the preparation exercises indicated at the end of this study unit. 1 Introduction …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. 2 The customer gap The customer gap is: …………………………………………………………………………….. ……………………………………………………………………………………………………. Customer expectations are : …………………………………………………………………….. …………………………………………………………………… ……………………………….. …………………………………………………………………………………………………….. What forms the basis for the gaps model? ……………………………………………………… ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. The sources for customer expectations are: ……………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. FIGURE 2. 1: THE CUSTOMER GAP | | | | | | | | | | | | | | | | | 2. 2. 1The provider gaps …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. ? Provider gap 1: The listening gap: …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………..

Key factors leading to provider gap 1: the listening gap: ………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ? Provider gap 2: The service design and standards gap: …………………………………………………………………………………………………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. Key factors leading to provider gap 2: the service design and standards gap: ……………….. ……………………………………………………………………………………………………. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. …………………………………………………………………………………………….