bma791_unit-outline.pdf

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BMA791

SERVICES MARKETING

Semester 1, 2012

Teaching Team:

Dr Rob Hecker

CRICOS Provider Code: 00586B


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Contact Details

Unit Coordinator & lecturer: Dr Rob Hecker

Campus: Hobart

Room Number: 307

Email: [email protected]

Phone: +61 3 6226 1774

Fax: +61 3 6226 2170

Consultation Time: By appointment


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Contents

Contact Details Pa2

Unit Description . Pag

Intended Learning Outcomes and Generic Graduate Attributes .Page 6

Learning Expectations and Teaching Strategies Approach ..Page 7

Learning Resources ..Page 7

Details of Teachin g Arrangements Page 10

Assessment Page 11

Submission of Coursework . Page14

Academic Misconduct and Plagiarism .. Page 16

Tutorial Program ..Page 17

Study Schedule Page 22


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Unit Description

More than 70 per cent of the Australian labour force is employed in the service sector. On thebalance of probabilities, most graduates will work for a service firm at some stage during their

careers. As a student you are in one of the largest service industry sectors, namely education. Similartrends in employment have been noted in most developed economies. Despite this trend to service-based employment, it is all too common that we hear of poor standards of service.

Until relatively recently the marketing literature offered very little concrete guidance to servicesmarketer s. Over the past decade or so a growing awareness of the service sectors economiccontribution has prompted research into new ways of managing and marketing the service firm.Increasingly this type of research has concluded that in many respects the service firm is differentfrom its manufacturing counterpart and that new skills, new concepts and different techniques arerequired for effective services marketing and management.

Services marketing is a specialisation within the discipline of marketing. Although many marketingprinciples apply equally to services and products, there is widespread consensus among academicsand practitioners that the issues that confront services marketers require different strategies. Inessence, this unit is an advanced unit in marketing since it builds on basic principles in a servicecontext.

As with all marketing practice, services marketing is concerned with customers needs and wants. Inservices, however, customers occupy a more pivotal role since they enter service systems and areactive participants in service production and delivery. During this interactive process customers form

impressions about the organisation and make judgements about service quality. Varioustechnologies, and information technology in particular, may affect the development of theseimpressions. It is the need to manage the customers role in production and consumption thatpresents one of the greatest challenges to services marketers.

Pre-Requisite/Co-Requisite Unit(s)

Nil


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Enrolment in the Unit

Unless there are exceptional circumstances, students should not enrol in BMA units after the end of

week two of semester, as the School of Management cannot guarantee that:

any extra assistance will be provided by the teaching team in respect of work covered in theperiod prior to enrolment; and

penalties will not be applied for late submission of any piece or pieces of assessment thatwere due during this period.

Enrolment in Tutorials and Workshops

Students will be able to enrol in tutorials electronically through MyLO. Tutorial enrolments will beopen until the end of the first week of semester (Friday 2 March 2012). Students who have notenrolled in a tutorial by this time will be allocated a tutorial by the unit coordinator. Variations intutorial enrolments will not be permitted after this time.


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tended Learning Outcomes and Generic Graduate Attributes

Intended Learning Outcomes AssessmentMethods

Graduate Attribute Outcomes n th i s un i t you wi l l l earn : In assess ing th i s un i t I wi l l be looking a t your ab i l i ty to :

The differences betweenoods and services and themplications for marketingn service industries:

Identify the differences between the marketing of goods andservices.

Essay and ExamThe assessments and teaching activities in this unit have beendesigned to develop the following graduate attributes instudents:

Knowledge:

Specific knowledge about the complexity of servicesmarketing, and apply this knowledge to a range ofservice industries.

Life-long learning skills in the pursuit of professionaldevelopment as a marketer in service industries.

Communication:

Written communication skills of quality expected ofprofessional marketer, with a clearly demonstratedability to communicate complex arguments in writtenform.

Problem Solving Skills:

Effective problem solving skills including the ability toapply marketing theory, models and methods andlogical thinking to a range of multi-dimensionalservice industry problems.

An awareness of when additional information isneeded and the capacity to locate, analyse and use it.

Discuss how the differences between goods and servicesimpact on a customers experience of service.

Essay and Exam

Explain the gaps that can occur in efforts to manage servicequality.

Essay and Exam

To manage the marketingmix in service industries:

Identify how the marketing mix differs in service industries. Article critiqueand Exam

Research and analyse a service context. Article critiqueand Exam

Use the marketing mix in a strategic and functional way inorder to close identified gaps in service quality.

Article critiqueand Exam

trategies for enhancedervice performance:

Identify and discuss the different strategic options for buildingcustomer lifetime value.

Exam

Manage the process of service recovery and complaint

handling.

Exam

Discuss the issues associated with demand and capacitymanagement in service industries.

Exam


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Learning Expectations and Teaching Strategies/Approach

Expectations

The University is committed to a high standard of professional conduct in all activities, and holds itscommitment and responsibilities to its students as being of paramount importance. Likewise, itholds expectations about the responsibilities students have as they pursue their studies within thespec ial environment the University offers. The Universitys Code of Conduct for Teaching andLearning states:

Students are expected to participate actively and positively in the teaching/learningenvironment. They must attend classes when and as required, strive to maintain steady

progress within the subject or unit framework, comply with workload expectations, andsubmit required work on time.

Occupational Health and Safety (OH&S)

The University is committed to providing a safe and secure teaching and learning environment. Inaddition to specific requirements of this unit you should refer to the Universitys policy at:http://www.admin.utas.edu.au/hr/ohs/pol_proc/ohs.pdf.

Learning Resources

Prescribed Text

Zeithaml, VA, Bitner, MJ & Gremler, DD 2009, Services marketing: integrating customer focus acrossthe firm , 5 th edn, McGraw-Hill Irwin, Sydney.

Recommended Texts

Baron, S & Harris, K 2003, Services marketing: texts and cases , 2nd

edn, Palgrave, Basingstoke.

Batterley, R 2004, Leading through relationship marketing: how winning organisations leveragestakeholder relationships to improve business performance , McGraw-Hill, Sydney.

Bruhn, M & Georgi, D 2006, Services marketing: managing the service value chain , Prentice-HallFinancial Times, Harlow.

Egan, J 2008, Relationship marketing: exploring relational strategies in marketing , Prentice-HallFinancial Times, Harlow, Essex.

Fisk, RP, Gountas, S, Hume, M, Gountas, J, Grove, S & John, J 2007, Services marketing: first Asia-Pacific edition , John Wiley & Son, Milton, Queensland.
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Gabbott, M & Hogg, G 1997, Contemporary services marketing management a reader, Dryden,London.

Gilmore, A 2003, Services marketing and management, Sage, London.

Glynn, WJ & Barnes, JG (eds) 1995, Understanding services management: integrating marketing,organisational behaviour, operations, and human resource management, Wiley, Chichester, NY.

Grnroos, C 2000, Service management and marketing: a customer relationship managementapproach, 2nd edn, Wiley, Chichester.

Gupta, S & Lehman, DR 2005, Managing customers as investments: the strategic value of customersin the long run, Wharton School Publishing, Upper Saddle River, New Jersey.

Hoffman, KD & Bateson, JEG 2006, Services marketing: concepts, strategies and cases , 3 rd edn,Thomson South Western, Mason, Ohio.

Kasper, H, van Helsdingen, P & De Vries, W 2006, Services marketing management: a strategic perspective, Wiley, Chichester.

Lovelock, CH, Patterson, PE & Walker, RH 2004, Services marketing: an Asia-Pacific perspective , 3 rd edn, Prentice-Hall, Melbourne.

Lovelock, C & Wirtz, J 2004, Services marketing , 5 th edn, Prentice-Hall, Upper Saddle River, NJ.

McColl-Kennedy, J R (ed) 2003, Services marketing: a managerial approach , John Wiley & Sons,Milton, Queensland.

Sherry, JF (ed) 1998, Servicescapes: the concept of place in contemporary markets, NTC, Chicago.

Tang, EPY, Chan, RYK, Tai, SHC & Tai, S 2002, Asian dimension of services marketing , Hawthorn Press,Singapore.

Van Looy, B, Gemmel, P & Van Dierdonck, R (ed) 2003, Services marketing: an integrated approach ,2nd edn, Prentice-Hall Financial Times, Harlow, Essex.

Journals and Periodicals

Apart from books, you will find it valuable to get into the practice of reading relevant articles from journals and periodicals (including newspapers and magazines).

Australasian Marketing journal (Proquest)

European Journal of Marketing (Proquest)

International Journal of Service Industry Management (Proquest)

Journal of the Academy of Marketing Science (Proquest, Sage)

Journal of the Market Research Society (Proquest)

Journal of Marketing (Proquest)


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Journal of Retailing (electronic via library ScienceDirect mainly abstracts)

Journal of Services Marketing (Proquest embargoed 1 year)

Journal of Services Research (Sage)

Marketing Magazine (Proquest, Australia/New Zealand Reference centre)

Marketing Research (Proquest embargoed 3 years)

Service Industries Journal (Taylor & Francis database)

Services Marketing Quarterly (Proquest)

Sloan Management Review (Proquest)

Useful Websites

Students must obtain the following electronic publications which are available from the School of

Management website: http://www.utas.edu.au/mgmt/student.htm

Writing Assignments: A Guide

School of Management Referencing Style

My Learning Online (MyLO)

MyLO software has been incorporated into the delivery of this unit to enhance the learningexperience by providing access to up to date course materials and by allowing for online discussion

through this web based environment.

To access MyLO from your own computer you will need the appropriate software, and hardware torun that software. See Learning Online at http://uconnect.utas.edu.au/ for computer software youwill need.

Note : Older computers may not have the hardware to run some of the required softwareapplications. Contact your local IT support person or the Service Desk on 6226 1818 if youexperience difficulties. The School of Management has prepared a MyLO Information Sheet whichincludes access guidelines and contact information. It is available to download as a word document

from the School of Management website at http://www.utas.edu.au/mgmt/student.htm.

Privacy Policy and Notice

The School of Management takes the utmost care to protect the privacy and security of yourpersonal information and to ensure its accuracy. If you have any concerns about your privacy inMyLO please contact the coordinator of this unit or view the University of Tasmania MyLO PrivacyPolicy Statement available from the university website athttp://www.utas.edu.au/coursesonline/privacy.htm.
http://www.utas.edu.au/mgmt/student.htmhttp://uconnect.utas.edu.au/http://www.utas.edu.au/mgmt/student.htmhttp://www.utas.edu.au/coursesonline/privacy.htmhttp://www.utas.edu.au/coursesonline/privacy.htmhttp://www.utas.edu.au/mgmt/student.htmhttp://uconnect.utas.edu.au/http://www.utas.edu.au/mgmt/student.htm


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Details of Teaching Arrangements

Lectures

This unit we will use face-to-face workshops held on Tuesday at 2.00pm. The purpose of theworkshop series is to provide you with a broad overview of the main theoretical and practical issuesassociated with the management of service firms. The workshop series will be supported by a rangeof additional reading drawn from the prescribed text, other marketing textbooks, and academic

journals. These readings are intended to add depth to the knowledge and understanding you havegained from the lectures.

Tutorials

Tutorials will be embedded in the workshops.

Communication, Consultation and Appointments

In addition to the unit outline, we will communicate important information to you through Lecturesand the Announcements section of MyLO. Therefore, it is important that you check the MyLO sitefor this unit regularly.

If you would like to talk to us (we would love to hear from you), then you can either send us an email

or make an appointment to see us during our consultation times. To email us, you should use themail function in MyLO . This will enable us to check the one source for all student queries. We willregularly check our MyLO mail, and endeavour to get back to you within two working days.

If you would like to see a member of the teaching team in person, then you can come and see us inour consultation times or by appointment . If you have a tutor who is not the lecturer you shouldalso check the consultation times for your specific tutor.

Finally, all requests for extension must be made in writing to the Unit Coordinator (Dr Rob Hecker).


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Assessment

Assessment Schedule

In order to pass this unit you must achieve an overall mark of at least 50 per cent of the totalavailable marks. Details of each assessment item are outlined below.

Assessment Item Value Due Date LengthAssessment Item 1 Individual Essay

10 marks 30 March 1500 words*

Assessment Item 2 In-class Test

10 marks In lecture, week 7 1 hour

Assessment Item 3 Journal Article Critique

20 marks 11 May 2000 words*

Assessment Item 4 -Exam

60 marks Exam period 3 hours

* Word Limit : The word count includes such items as headings, in-text references, quotes andexecutive summaries. It does not include the reference list at the end of the assignment.

Assessment Item 1 Essay (The Importance of Service Quality)

Task Description : Individual Essay

Assessment Criteria : A copy of the assessment criteria and marking scheme are available throughMyLO

Task Length : 1500 words

Due Date : Friday 30 March 2012 (2.00pm)

Value : 10 marks

Assessment Detail: The purpose of this assessment item is to consolidate your knowledge ofquality management in service industries, and builds on the material coveredin the web-lecture delivered during week two. For this assessment item youare required to write a short essay (1500 words) addressing the followingquestion:

Why is quality such an important issue in the marketing of services?Why is quality more difficult to manage in service industries than it isin the case of physical goods? Use examples to support your answer.

This assignment should be answered in an essay format, with anintroduction, body, and conclusion. Examples can be used to support youranswers. There is no requirement for a table of contents for this assignment.Students are expected to use a minimum of eight (8) academic references toanswer this question. A copy of the assessment criteria and marking schemeare available through MyLO.


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Assessment Item 2 In-class test

Task Description : In-class test

Task Length : One-hour

Due Date : In lectures week 7 (week commencing 16 April)

Value : 10 marks

Assessment Detail: An in-class test will be held during the lecture in Week 8. The test consists offour (4) essay questions. Students are required to answer two (2) of the four(4) questions provided. There will be one question from each of thefollowing weeks/topics:

Week 1 What is services marketing and why is it important? Week 3 Understa nding the customers experience of service. Week 4 Developing the service product. Week 6 The role of people in service delivery.

The test questions will be drawn from the tutorial questions for theseweeks/topics. Students are required to sit the in-class test at the specifiedtimes. Alternate arrangement will only be made for students with medicalcertificates.

Assessment Item 3 Journal Article Critique

Task Description Journal Article Critique

Assessment Criteria : A copy of the assessment criteria and marking scheme are available throughMyLO

Task Length : 2000 words

Due Date : Friday 11 May 2012 (2.00pm)

Value : 20 marks

For this assignment you are required to critique one of the following articles:

Keillor, BD, Lewison, D, Hult, GTM & Ha user, W 2007, The service encounterin a multi-nat ional context, Journal of Services Marketing , vol. 21, no. 6, pp.451-461.

Lee, YK, Nam, JH, Park, DH & Lee, KA 2006, What factors influence customer -orientated pro-social behaviour of customer contact e mployees? Journal ofServices Marketing , vol. 20, no. 4, pp. 251-264.

Palmer, A 2010, Customer experience management: a critical review of an

emerging idea , Journal of Services Marketing , vol. 24, no. 3, pp. 196-208.


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Ueno, A 2010, What are the fundame ntal features supporting servicequality? Journal of Services Marketing , vol. 24, no. 1, pp. 74-86.

You are required to critically analyse the content and usefulness of yourchosen article. Your critique should have three sections. The first section

should provide a brief overview of the article s content, summarising thearticle s topic, the ideas it reports, and the authors key conclusions. Thesecond section should identify the strengths and weaknesses of the authorsresearch or argument. The third section should outline the practicalimplications of the authors findings for services marketers. Students areexpected to use a minimum of eight (8) academic references in your critique.

Assessment Item 4 Final Exam

Format : Written Exam

Duration : 3 hours

Value: 60 marks

Assessment Detail: The final examination will be closed book. It will be of three hours duration.The examination is worth 60 per cent of the total available marks. Theexamination will comprise two parts.

Part A is a case analysis worth 20 marks. You will be asked to criticallyanalyse the services marketing practices of a case organisation. Students willbe provided with the case study prior to the examination period.

Part B requires you to complete 4 essay questions from a list of 6 essayquestions. Each essay will be worth 10 marks, with Part B worth a total of 40marks. Essay topics will be drawn from the following weeks:

Week 2 Exploring the central role of service quality.Week 5 Managing the physical evidence.

Week 9 Promoting and pricing the service product.Week 10 Relationship marketing.Week 11 Capacity and demand management.Week 12 Service recovery, complaint handling and customer feedback.

The best preparation for Part B of the exam is consistent work throughout thesemester, together with completion of the tutorial questions.

Your final examination for this unit will be held during the scheduled examination period asindicated by Student Administration in correspondence to you.


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Examinations will normally be scheduled Monday to Saturday inclusive. Examinations may be heldduring the day or evening and students should consult the university information which will be madeavailable towards the end of semester.

You are advised to make any necessary arrangements with employers now for time off during the

examination period to sit this examination. Your participation at the scheduled time is notnegotiable unless there are exceptional circumstances. Note that you will be expected to sit theexamination at your recorded study centre.

Supplementary Exams : Except in special circumstances and on the recommendation of the unitcoordinator or the Head of School, a student who fails will not be granted a supplementaryexamination.

Special Consideration and Student Difficulties

If a student is experiencing difficulties with their studies or assignments, have personal or lifeplanning issues, disability or illness which may affect their course of study, they are advised to raisethese with their lecturer in the first instance.

Should a student require assistance in accessing the Library, visit their website for more informationat http://www.utas.edu.au/library/.

Students who have completed their examinations and who feel that they have been disadvantageddue to illness or other circumstances affecting their study, may fill out a form to request that theirlecturer takes this into consideration when marking the examination. Forms should be submitted

directly to the relevant school, accompanied by appropriate supporting documentation, as soon aspossible after the completion of the examination. Granting of special consideration is at thediscretion of the lecturer and school. The relevant form can be found at the following website:http://www.studentcentre.utas.edu.au/examinations_and_results/forms_files/index.htm#eits

Students with a non-English speaking background may be permitted to take a bilingual dictionaryinto an exam. This dictionary must not be annotated that is, it must have no notes written in it.Students must request permission from the Student Centre in order to use a bilingual dictionary.

Submission of Coursework

Lodging Coursework

All Coursework must have the School of Management Assignment Cover Sheet, which is available asa blank template from the School of Management website athttp://www.utas.edu.au/mgmt/student.htm. All assignments must include the tutors name on theassignment Cover Sheets when they are submitted. If this is not done the assignment will not be

accepted and therefore will not be marked.
http://www.utas.edu.au/library/http://www.studentcentre.utas.edu.au/examinations_and_results/forms_files/index.htm#eitshttp://www.utas.edu.au/mgmt/student.htmhttp://www.utas.edu.au/mgmt/student.htmhttp://www.studentcentre.utas.edu.au/examinations_and_results/forms_files/index.htm#eitshttp://www.utas.edu.au/library/


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Please remember that you are responsible for lodging your Coursework on or before the due date.We suggest you keep a copy. Even in the most perfect of syst ems, items sometimes go astray.Assignments must be submitted electronically through the relevant assignment drop box in MyLO.All coursework must be handed in by 2.00pm on the due date.

Requests for Extensions

Written Coursework:

Extensions will only be granted on medical or compassionate grounds and will not be grantedbecause of work or other commitments. Requests for extensions should be made in writing to theunit coordinator prior to the due date. Medical certificates or other evidence must be attached andmust contain information which justifies the extension sought. Late assignments which have notbeen granted an e xtension will, at the lecturers discretion, be penalised by deducting ten per cent

of total marks for each full day overdue.

Assignments submitted more than five days late will normally not be accepted by the unitcoordinator.

In-class Tests:

Students who are unable to sit a test on medical or compassionate grounds (work or othercommitments are not considered 'compassionate grounds') may request that they be permitted tosubmit alternative Coursework. Please do not expect a special test to be held for you if you chooseto go on holidays or undertake other activities on the scheduled date. If you do need to request

alternative Coursework, you should do so in writing to the unit coordinator prior to the due date.Medical certificates or other evidence must be attached and must contain information which

justifies the request. The telephone number of the doctor should also be included.

Faculty of Business Late Assessment Policy

A full copy of the Faculty of Business late assessment policy is available from the Faculty homepageat http://fcms.its.utas.edu.au/business/business/policies.asp.

Academic Referencing and Style Guide

Before starting their assignments, students are advised to familiarise themselves with the followingelectronic resources. The first is the School of Management Guide to Writing Assignment , which canbe accessed from the following site - : http://www.utas.edu.au/mgmt/student.htm. The guideprovides students with useful information about the structure and style of assignments in the Schoolof Management.

The second is the Harvard Referencing System Style Guide , which can be accessed from the UTASlibrary (http://utas.libguides.com/content.php?pid=27520&sid=199808) . The Harvard Referencing
http://fcms.its.utas.edu.au/business/business/policies.asphttp://www.utas.edu.au/mgmt/student.htmhttp://utas.libguides.com/content.php?pid=27520&sid=199808http://utas.libguides.com/content.php?pid=27520&sid=199808http://www.utas.edu.au/mgmt/student.htmhttp://fcms.its.utas.edu.au/business/business/policies.asp


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System will be used in all School of Management units, and students are expected to use this systemin their assignments.

Academic Misconduct and Plagiarism Academic misconduct includes cheating, plagiarism, allowing another student to copy work for anassignment or an examination, and any other conduct by which a student:

(a) seeks to gain, for themselves or for any other person, any academic advantage oradvancement to which they or that other person are not entitled; or

(b) improperly disadvantages any other student.

Students engaging in any form of academic misconduct may be dealt with under the Ordinance of

Student Discipline. This can include imposition of penalties that range from a deduction/cancellationof marks to exclusion from a unit or the University. Details of penalties that can be imposed areavailable in the Ordinance of Student Discipline Part 3 Academic Misconduct, seehttp://www.utas.edu.au/universitycouncil/legislation/.

Plagiarism is a form of cheating. It is taking and using someone elses thoughts, writings orinventions and representing them as your own, for example:

using an authors words without putting them in quotation marks and citing the source;

using an authors ideas without proper acknowledgment and citat ion; or

copying another students work.

If you have any doubts about how to refer to the work of others in your assignments, pleaseconsult your lecturer or tutor for relevant referencing guidelines, and the academic integrityresources on the web at http://www.utas.edu.au/tl/supporting/academicintegrity/index.html.

The intentional copying of someone elses work as ones own is a serious offence punishable bypenalties that may range from a fine or deduction/cancellation of marks and, in the most serious ofcases, to exclusion from a unit, a course or the University.

The University and any persons authorised by the University may submit your assessable works toa plagiarism checking service, to obtain a report on possible instances of plagiarism. Assessableworks may also be included in a reference database. It is a condition of this arrangement that theoriginal authors permission is required before a work within the databa se can be viewed.

For further information on this statement and general referencing guidelines, seehttp://www.utas.edu.au/plagiarism/ or follow the link under Policy, Procedures and Feedback onthe Current Students homepage.
http://www.utas.edu.au/universitycouncil/legislation/http://www.utas.edu.au/tl/supporting/academicintegrity/index.htmlhttp://www.utas.edu.au/plagiarism/http://www.utas.edu.au/plagiarism/http://www.utas.edu.au/tl/supporting/academicintegrity/index.htmlhttp://www.utas.edu.au/universitycouncil/legislation/


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Embedded Tutorial Program

The tutorial program is designed to consolidate understanding of core marketing theory, and to givestudents an opportunity to apply marketing theory to case analysis. These questions are also

designed to help you prepare for the in-class test and final exam. Students are asked to come totutorials prepared to answer the questions and analyse the case study. Note the tutorial programdoes not start till week 2.

Week 2 What is services marketing and why is it important?

Reading: Zeithaml et al (2009) - Chapter 1

1. In your own words, define services and goods. How do you believe the marketing of servicesdiffers from the marketing of physical goods? Use examples to support your answers.

2. Why does the marketing of services require an extended marketing mix? What are the

elements that make up this extended marketing mix?3. What factors do you believe have contributed to the growth of the service economy in thelast 30 years?

4. How do you see technology such as the Internet impacting on the future of the serviceeconomy? Use examples to support your answers.

Case Study: Kiwi Experience.

Source: Lovelock, CH, Patterson, PE & Walker, RH 2007, Services marketing: an Asia-Pacific perspective , 4 th edn, Prentice-Hall, Melbourne, pp. 495-501. (Available through eReserve.)

1. Why is attracting first-time customers so important to KE? How does KE attract thesecustomers and what else could it do to increase sales?2. How has KE attempted to overcome the problems that the distinctive aspects of services

present to marketers?3. Why are the drivers of the buses so important to KE? How can KE manage the drivers to

maintain or increase their effectiveness?4. Does this case suggest that some service organisations are more suited to relationship

marketing than others? Draw a continuum indicating where various service organisationsmay lie on a scale that has relationship marketing of great importance/ and relationshipma rketing of little importance at polar ends.

5. What factors may limit the growth of KE? What can the directors of the organisation do toensure this does not occur?

Week 3 Exploring the central role of service quality.

Reading: Zeithaml et al (2009) - Chapter 2.

6. What is quality? Is quality a subjective or objective conce pt? How does quality differ fromthe concept of productivity?

7. Why is quality such an important issue in the marketing of services? Why is quality moredifficult to manage in service industries than it is in the case of physical goods?

8. Outline and discuss the components of the SERVQUAL Model. What are the dimensions ofquality outlined in this model?

9. Outline and discuss the gaps that can occur in delivery of service quality. What steps canmanagers take to close these service quality gaps?


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Case Study: An international retailer puts customers in the wish mode to begin closing the gap.

Source : Zeithaml, VA, Bitner, MJ & Gremler, DD 2009, Services marketing: integrating customer focus across the firm, 5 th edn, McGraw-Hill Irwin, Sydney. Page 35.

1. Why is an understanding of customer expectations so important in the management anddelivery of service quality?2. How can organisations such as Ikea use an understanding of customer expectations to close

the gaps that can occur in their delivery of service quality?

Week 4 Understanding the customers experience of service.

Reading: Zeithaml et al (2009) Chapters 3, 4 and 5.

1. Discuss the differences between search, experience and credence properties. How does theexistence of experience and credence properties impact upon customer evaluations ofservice?

2. What is meant by the notions of services as processes and services as drama? How doservice organisations use role and script theory to improve the process of service delivery forthe customer?

3. What does it mean when marketers talk about a customers Zone of Tolerance? Do allcustomers have the same Zone of Tolerance? What are the implications of this concept forthe design and management of service delivery processes?

4. Outline and discuss the factors that influence customer expectations of service. What doesa services marketer do if customer expectations are unrealistic? Should a company try todelight the customer? How does a company exceed customer service expectations?

5. What is customer satisfaction? What determines customer satisfaction? What role does theservice encounter play in influencing customer satisfaction?

Case Study: Disneyland An American Icon Adapts to Cultural Differences in Global Expansion

Source : Zeithaml, VA, Bitner, MJ & Gremler, DD 2009, Services marketing: integrating customer focus across the firm, 5 th edn, McGraw-Hill Irwin, Sydney. Pages 66-67.

1. How do you believe culture impacts upon the customers experience of service? Howshould service firms such as Disneyland respond to these cultural differences in theirefforts to manage service quality?

Week 5 Developing the service product.

Reading: Zeithaml et al (2009) Chapters 9 & 10; Lovelock, C & Wirtz, J 2007, Services marketing, 6 th edn, Prentice-Hall, Upper Saddle River NJ. Pages 69-96 (available through eReserve).

1. Using an example of your choosing, distinguish between the core and supplementary(facilitating and enhancing) elements of the service product. What are the managerialimplications of this augmented service product model?

2. Outline and discuss the different types of new service product development firms mayundertake. Use examples to support your answers.

3. Why is it important for firms to use customer-defined standards in the development of theirservice products? What are the different types of customer-defined standards a service firmmay use?


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Week 6 Managing the physical evidence of service.

Reading: Zeithaml et al (2009) Chapter 11.

1. In your own words, define physical evidence. What types of physical evidence might aservice organisation utilise?

2. Identify and discuss the functional and strategic role of the physical evidence in servicedelivery (consider here its impact on both the customer and the service worker).

3. Outline and discuss the Mehrabian-Russell Stimulus Response Model and the Russell Modelof Affects. What are the implications of these models for the design of the servicescape?Use examples to support your discussion.

4. Outline and discuss Bitners Framework for Understanding Environmental -User Relationshipsin Service Organisations. What are the implications of this model for the design of theservicescape? Use examples to support your discussion.

Field Work Exercise:

Marketers attempt to design servicescapes that create approach behaviours in their target market.

Working in groups of four, identify and photograph three storefronts that generate approachbehaviours and three that generate avoidance behaviours. Come to class prepared to demonstratethese storefronts, and justify why you believe they create approach and avoidance behaviours. Inmaking your judgements carefully consider who the target market is for this store.

Week 7 The role of people in service delivery.

Reading: Zeithaml et al (2009) Chapters 12 & 13.

1. Why are customer-service staff so important to service delivery? How do their actionsimpact upon customer satisfaction and service quality?

2. Outline and discuss the services marketing triangle. What does it tell us about anorganisations ability to deliver on the promise?

3. Outline and discuss the boundary spanning roles performed by service workers. What issuesmust be considered in managing service workers boundary spanning roles?

4. What are the three different roles customers may play in service delivery? What strategiesmay service firms use for enhancing customer participation in service delivery?

Week 8 Service delivery processes the architecture of the service offering.

Reading: Gemmel, P 2003, Servic e process design and management, in B Van Looy, P Gemmel & RVan Dierdonck (eds), Services marketing: an integrated approach, 2nd edn, Prentice-Hall FinancialTimes, Harlow, Essex, pp. 259-276. (Available through eReserve.)

Reading: Hoffman, KD & Bateson, JEG 2006, Services marketing: concepts, strategies and cases, 3 rd edn, Thomson South Western, Mason, Ohio. Chapter 6. (Available through eReserve.)

1. What are service processes and why are they so important? How can blueprints andflowcharts be used to understand these service delivery processes?

2. What are the implications of customer involvement in the service delivery process? Whatstrategies are available for the management of customers as partial employees of theservice firm? Use examples to support your answers.

3. How can customer needs or customer preferences be incorporated into service processdesign?


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4. Outline and discuss how the inability to inventory services affects the operational efficiencyof most service firms.

5. For a service of your choosing, develop a simplified blueprint for that service deliveryprocess. What issues did you have in trying to develop your blueprint?

Week 9 Service distribution strategies domestic and international.


1. What are the advantages and disadvantages of direct service delivery? What are theadvantages and disadvantages of using intermediaries?

2. What is franchising and why it increasingly used in service industries? What are the benefitsand challenges of this approach for the franchiser and franchisee? Give examples of wherefranchising has been employed.

3. How can electronic channels be used to distribute services? What are the benefits andchallenges for service firms using electronic distribution channels?

4. What are some of the common issues associated with using intermediaries? What strategies

are available to service firms to improve the effectiveness of distribution throughintermediaries?

Week 10 Promoting and pricing the service product .

Reading: Zeithaml et al (2009) Chapters 16 and 17.

1. Why is internal marketing communications important in service firms?2. Outline and discuss the four generic promotional strategies for matching service promises

with delivery.3. What are the three key ways that service prices are different for consumers?

4. Compare and contrast the cost-based, demand-based, and competition-based approachesto service pricing. How could these three approaches be integrated to arrive at an effectiveprice point?

Week 11 Relationship marketing profiting through customer retention.


1. What is relationship marketing and why is it an important concept in the marketing ofservices?

2. Why do customers seek ongoing relationships with service providers? What benefits does itprovide them?

3. Why do service organisations seek ongoing relationships with their customers? Whatbenefits does it provide them?

4. Outline and discuss the relationship development strategies available to serviceorganisations. Use examples to support your answers.

5. Should all customers be the focus of relationship marketing? What factors should servicefirms consider when determining whether or not to build a relationship with a customer?

Scenario Exercise : Relationship marketing in the fitness industry.

Imagine you are the marketing manager for a chain of health and fitness clubs. The companyoperates in a number of cities, including Hobart, Launceston, Devonport and Burnie. The company

offers its customers gym equipment for weight training as well as an extensive range of exerciseclasses, including aerobics, spin-cycle, cross training, yoga and pilates.


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While the company has experienced considerable membership growth in the past, this has slowed inthe last twelve months (largely due to the fact that no new outlets have been opened). The Board ofDirectors has begun to consider the issue of customer retention and has asked you write a briefreport on the benefits of relationship marketing.

1. Outline and discuss the different relationship marketing strategies that may be used by thefirm.

2. Discuss whether the organisation should attempt to build ongoing relationships with itsentire customer base.

Week 12 Capacity and demand management.


1. Outline and discuss the four different relationships between capacity and demand. Whatare some of the factors that constrain service capacity and create variability in demand?

2. What strategies can service firms adopt to better match capacity and demand? Useexamples to support your answers.3. What is meant by yield management? Why should service firms be concerned with yield?

Case Study: Combining Demand (Marketing) and Capacity (Operations) Strategies to IncreaseProfits.

Source : Zeithaml, VA, Bitner, MJ & Gremler, DD 2009, Services marketing: integrating customer focus across the firm, 5 th edn, McGraw-Hill Irwin, Sydney. Pages 456-457.

1. Outline the varying relationships between capacity and demand that might be faced by aski resort over the course of a year. What are the underlying factors causing variationsin this relationship?

2. What additional strategies would you recommend in this case situation to better matchcapacity and demand over the entire year?

Week 13 Service recovery, complaint handling and customer feedback.


1. Why is effective service recovery important? How do customers respond to service failures?How does service failure and recovery impact service switching behaviour?

2. What is the service recovery paradox? If you were the manager of a service organisationhow would you respond to this paradox?

3. What are the common customer expectations of service recovery?4. Outline the generic recovery strategies available to service organisations. Use an example to

demonstrate how each of these strategies could be used.5. How important are service guarantees to customers? What type of guarantees might a

service organisation offer its customers?


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Study Schedule

Week Start of Week Text Chapter Topic Due Dates

1 27 February1

What is services marketing and why isit important?

2 5 March2

Exploring the central role of servicequality.

3 12 March3, 4, 5

Understanding the customersexperience of service.

4 19 March9 & 10 Developing the service product.

5 26 March11 Managing the evidence of service.

Assessment item 130 March

6 2 April12 & 13 The role of people in service delivery.

Mid-Semester Break 5 April to 11 April

7 16 April

TBAThe service delivery process thearchitecture of the service offering.

Assessment item 2

8 23 April14 Service distribution strategies

domestic and international.

9 30 April16 & 17 Promoting and pricing the service

product.

10 7 May7 Relationship marketing profiting

through customer retention.

Assessment item 311 May

11 14 May15 Capacity and demand management.

12 21 May6 Service recovery, complaint handling

and customer feedback.

13 28 May18 Assessing the profitability of service

performance.

Examination Period: 9 June 26 June

bma791_unit-outline.pdf

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