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SECTION 1

COURSE DESIGN AND TEACHING HINTS

INTRODUCTION

This instructor’s resource manual is designed to help you develop and teach a course on

services marketing, based on the text, readings, and cases contained in Services

Marketing, Sixth Edition. The manual is divided into six sections:

1. Course Design and Teaching Hints

2. Student Exercises and Projects

3. Teaching Insights for the Chapters

4. Overview of the Readings

5. Case Teaching Notes

6. PowerPoint Slides

An electronic file containing each of the color PowerPoint slides created specifically for

use with this text is located on the Prentice Hall Web site (accessible only with

permission from the publisher) at:

http://vig.prenhall.com/catalog/academic/product/0,1144,0131875523-IS,00.html.

Objectives of the Manual

The principal goals of this manual are to:

Discuss the learning objectives for each chapter to facilitate the instructor.

Aid in the preparation and (if desired) serve as a basis for lectures.

Emphasize integration of concepts, frameworks, and real-world practice

throughout the book.

Demonstrate links between individual chapters and between chapters and

specific readings or cases to reinforce learning.

Provide brief answers to each of the questions at the end of the chapters.

Summarize key issues raised in each reading and where appropriate.

Suggest ways of linking these readings to chapters and cases.

Suggest ideas for student projects, written assignments, and in-class

discussions.

Provide detailed notes on each of the cases in the book.

Propose topics and teaching suggestions for specific class sessions and the

sequence in which these sessions might be taught.

Additional instructor aids include:


A section on “Developing Your Own Course.”

A note on “Teaching with Cases.”

Two illustrative course outlines, which can serve as a departure point for

developing your own course outline.

A note on “Studying and Learning from Cases” for optional distribution to

students.

Web Site Supplement

To supplement the text, cases, and readings appearing in the book, additional materials,

including downloadable cases, will be placed on Prentice Hall’s dedicated Web site for

Services Marketing 6/E as they become available. We encourage you to check this Web

site periodically for new materials and other information. The URL is:

http://vig.prenhall.com/catalog/academic/product/0,1144,0131875523-IS,00.html.

Target Teaching Audiences

The Sixth Edition is equally suitable for courses directed at advanced undergraduates or

MBA and EMBA students. It may be used for courses in either services marketing or

service management. Services Marketing, 6/E, places marketing issues within a broader

general management context. The book will appeal both to full-time students headed for a

career in management and to EMBAs and executive program participants who are

combining their studies with ongoing work in managerial positions.

Changes from the Fifth U.S. Edition of Services Marketing

The Sixth Edition represents a significant revision. Its contents reflect ongoing

developments in the service economy, new research findings, and enhancements to the

structure and presentation of the book in response to feedback from reviewers and

adopters.

New Topics, New Structure. The chapter text is now organized around a new

framework for developing effective service marketing strategies that emphasizes the

value exchange between suppliers and their customers. This framework allows for a

flexible approach to teaching and forms the structure of the book, enabling students to see

how different chapter topics relate to each other. The framework is depicted in Figure

1.11 on page 28 in Services Marketing 6/E and in Exhibit 1-1 below.

Parts I and II have been restructured to improve the logical sequencing of topics. In

particular, discussion of positioning strategy (Chapter 7) now follows rather than

precedes chapters addressing such strategic elements as product elements, service

delivery, communications, and pricing.


Exhibit 1-1


Each of the 15 chapters has been revised. All chapters incorporate new examples and

references to recent research, and some have been retitled to reflect important changes in

emphasis. Figure A displays the four-part structure of the book, showing how chapter

topics are sequenced.

Chapter 1, “New Perspectives on Marketing in the Service Economy,” has been

completely rewritten. It explores the nature of the modern service economy, and presents

a clear new conceptualization of the nature of services, based on award-winning research

by one of the authors. In addition, this chapter offers a compelling discussion of the

distinctive challenges facing service marketers but explicitly avoids sweeping

generalizations. It introduces the eight key elements of the services marketing mix

(referred to collectively as the 8Ps), and presents the organizing framework for the book.

Chapter 2, “Customer Behavior in Service Encounters,” has also been substantially

revised and is now organized around a three-stage model of service consumption that

distinguishes, where necessary, between high- and low-contact services. At each stage,

this model presents relevant insights from different concepts that are central to

understanding, analyzing, and managing customer behavior.

New applications of technology—from Internet-based strategies to biometrics—and the

opportunities and challenges they pose, for customers and service marketers alike, are

woven into the text at relevant points across virtually all chapters, as well as being

illustrated in boxed inserts.

Among the significant enhancements to other chapters, you’ll find: a new treatment of

service pricing, including expanded coverage of revenue management and thought-

provoking coverage of abusive and confusing pricing practices; an overview of recent

developments in electronic communications such as iTV, blogs, and Internet advertising;

the latest thinking on cost-effective service excellence; an expanded section on the

“wheel of loyalty” and customer relationship management (CRM); and discussion of

current thinking on change management and service leadership.

In rewriting and restructuring the chapters, we worked hard to create a text that is clear,

readable, and focused. Boxed inserts within the chapters are designed to capture student

interest and provide opportunities for in-class discussion. They describe significant

research findings, illustrate practical applications of important service marketing

concepts, and describe best practices by innovative service organizations from the United

States and other countries. Most of these inserts are either new to the Sixth Edition or

have been updated.

Readings. Eight of the 11 readings are new to this edition. In response to reviewers’

suggestions, we selected readings that are relatively short, well written, and appealing to

both undergraduates and MBA students.

These readings, drawn from such respected publications as the Harvard Business Review,

BusinessWeek, Journal of Service Research, MIT Sloan Management Review, the Wall


Street Journal, and the McKinsey Quarterly, complement the text and offer students a

chance to explore key issues in greater depth, as well as to examine interesting and even

provocative market trends.

Among the authors of these readings are leading professors and management consultants

from around the world, as well as journalists writing for noted business publications.

Cases. Services Marketing, Sixth Edition, features an exceptional selection of 18 up-to-

date, classroom-tested cases of varying lengths and levels of difficulty. We wrote a

majority of the cases ourselves. Others are drawn from the case collections of Harvard,

INSEAD, and Yale.

Ten of the 18 cases are new to this edition. Four of the cases carried over from the

previous edition have been revised or updated. Copyright dates range from 2000 to 2007.

Responding to reviewer and adopter requests, we’ve increased the proportion of short and

medium-length cases. The new selection provides even broader coverage of service

marketing issues and application areas, with cases featuring a wide array of industries and

organizations, ranging in size from multinational giants to small entrepreneurial start-ups.

Two nonprofit organizations are included.

Organization and Sequencing of Materials in the Sixth Edition

From the Table of Contents, you will have noted that the chapters and readings in

Services Marketing 6/E (henceforth referred to as SM6) are grouped into four parts, each

comprising between two and five chapters of text and from one to four readings. All the

cases are gathered together at the end of the book, reflecting the fact that many of them

can be used with several different chapters. The book is designed to give instructors as

much flexibility as possible in structuring and sequencing their courses. You will find

that periodic cross-referencing of chapters within the text will refer students back to

earlier chapters where an important concept was first introduced. Readings and many of

the cases are also cross-referenced in the chapters to enhance the integration of text,

readings, and cases.

Most of the key concepts and frameworks are introduced within the first three chapters

and are subsequently employed throughout the book following the chapter in which they

first appear. The most central concepts of each chapter are highlighted in bold italic

face in the lists under the overview of each book part below.

Part I—Understanding Service Markets, Products, and Customers should be taught

first to provide the appropriate foundation for future discussion and analysis. It comprises

two chapters that lay out the building blocks for studying services and learning how you

can become an effective service marketer. The chapter topics are:


Chapter 1, “ New Perspectives on Marketing in the Service Economy”

Chapter 2, “Consumer Behavior in Service Encounters”

Key conceptual frameworks and tools introduced in Part I include:

Definition of services (Chapter 1)

Distinctive aspects of services marketing (Chapter 1)

The 8Ps of the services marketing mix (Chapter 1)

Four categories of services (Chapter 2)

Three-stage model of service consumption (Chapter 2)

o Prepurchase stage

o Service encounter stage

o Post-encounter stage

High- and low-contact service encounters (Chapter 2)

Part II—Building the Service Model teaches how to create a meaningful value

proposition through the development of the service concept and the selection of physical

and electronic delivery channels. This is supported by a business model that recovers

costs through realistic pricing. Customers must be educated on the value proposition via

effective communications. Finally, to ensure that the value proposition is commercially

viable, there must be a distinctive and defensible position in the market against

competitors. Four of the 8Ps are dealt with here:

Chapter 3—Product elements

Chapter 4—Place and time (the where and when of service distribution strategy)

Chapter 5—Price and other user outlays (includes revenue management strategy)

Chapter 6—Promotion and education (communications strategy)

Chapter 7—Positioning services in competitive markets

Key topics and conceptual frameworks introduced in Part II include:

Core and supplementary services (Chapter 3)

Basic flowcharting (Chapter 3)

The flower of service—a refinement of the core and supplementary product

elements comprising the augmented service product (Chapter 3)

Service branding (Chapter 3)

Categories of service innovations (Chapter 3)

Service delivery options (Chapter 4)

Cyberspace delivery of service elements (Chapter 4)

Role of service intermediaries (Chapter 4)

Service franchising (Chapter 4)

International distribution of services (Chapter 4)

Drivers of transnationally integrated strategies (Chapter 4)


The pricing tripod—activity-based, cost-based, and competition-based pricing

(Chapter 5)

Different types of costs (Chapter 5)

Monetary and non-monetary outlays—costs incurred by customers beyond

price (Chapter 5)

Revenue management, inventory buckets, and rate fences (Chapter 5)

Price elasticity (Chapter 5)

Ethical concerns and perceived fairness of pricing policies (Chapter 5)

Implementing service pricing (Chapter 5)

Role of marketing communications (Chapter 6)

Challenges of services communications (Chapter 6)

The marketing communications mix (Chapter 6)

Implications of the Internet for marketing communication (Chapter 6)

Segmentation (Chapter 6)

Positioning maps and strategy (Chapter 7)

Part III—Managing the Customer Interface focuses on how to manage all points at

which customers interact with the company. This involves the teamwork between

operations and HR to design effective processes, and balance demand against productive

capacity. Physical environment issues also need to be dealt with. Finally, people and HR

strategies must be aligned for outstanding service delivery. In this part, three elements of

the 8Ps related to service delivery are dealt with.

Chapter 8—Process (designing method and sequence of service performance)

Chapter 9—Balancing demand and productive capacity

Chapter 10—Physical environment (designing and managing tangible cues)

Chapter 11—People (managing front-line staff who interact with customers)

Key topics and conceptual frameworks introduced in Part III include:

Blueprinting service design—a more sophisticated and prescriptive form of

flowcharting (Chapter 8)

Service process redesign (Chapter 8)

The customer as co-producer (Chapter 8)

Self-service technologies (Chapter 8)

Managing jaycustomers (Chapter 8)

Productive capacity—definition and management (Chapter 9)

Demand cycles (Chapter 9)

Demand analysis and forecasting (Chapter 9)

Demand management (Chapter 9)

Psychology of waiting time (Chapter 9)

Queuing theory (Chapter 9)

Managing waiting lines and reservations strategies (Chapter 9)

Servicescapes (Chapter 10)

Consumer responses to servicescapes (Chapter 10)


Design of ambient conditions—music, scent, color (Chapter 10)

Environmental design—signage, symbols, artifacts, spatial layout (Chapter

10)

People as part of servicescape (Chapter 10)

Design servicescape holistically from the customer’s perspective (Chapter 10)

Frontliners as boundary spanners and role conflicts (Chapter 11)

Cycles of failure, mediocrity, and success in HR management (Chapter 11)

The Wheel of Successful HR in service firms (Chapter 11)

Empowerment of employees (Chapter 11)

Service teams (Chapter 11)

Service culture (Chapter 11)

Part IV—Implementing Service Strategies focuses on the activities involved in

implementing service marketing strategies. First, achieving profitability requires creating

customer relationships and building loyalty. Having an effective complaint handling and

service recovery strategy aids loyalty building. Second, productivity and quality are

necessary for financial success and finally, firms are challenged to remain competitive in

a changing world. This part comprises four chapters with the following emphasis:

Chapter 12—Managing customer relationships and building loyalty

Chapter 13—Obtaining customer feedback and managing service recovery after

failure

Chapter 14—Strategies for improving service quality and productivity

Chapter 15—Organizing for service leadership

Key topics and conceptual frameworks discussed in Part IV include:

Lifetime value of a (loyal) customer (Chapter 12)

Relationship marketing (Chapter 12)

The Wheel of Loyalty (Chapter 12)

Tiering of services (Chapter 12)

Loyalty bonds (Chapter 12)

Membership/loyalty marketing (Chapter 12)

Customer defections/churn (Chapter 12)

Customer relationship management (CRM) (Chapter 12)

Customer complaints, service recovery, and systems (Chapter 13)

Service guarantees (Chapter 13)

Customer feedback systems (Chapter 13)

Elements of service quality (Chapter 14)

SERVQUAL scale (Chapter 14)

Service quality gaps (Chapter 14)

Hard and soft measures of service quality (Chapter 14)

TQM, ISO 9000, Malcolm Baldrige, and Six Sigma (Chapter 14)

Service productivity: efficiency versus effectiveness (Chapter 14)

The Service Profit Chain (Chapter 15)


Cross-functional integration between marketing, operations, and HR

(Chapter 15)

Service leadership at the human level (Chapter 15)

Change management (Chapter 15)

Leadership, culture, and climate (Chapter 15)

Selecting Readings and Cases for Use with Specific Chapters

To help you identify which readings and cases fit well with specific chapters, please refer

to Exhibit 1–2 which follows.


Exhibit 1–2

SUGGESTIONS FOR READINGS AND CASES

TO USE WITH SPECIFIC CHAPTERS

Chapter Possible Reading(s) Possible Case(s)

1 New Perspectives on Marketing in the Service Economy

Nick Wingfield, “In a Dizzying World, One Way to Keep Up: Renting Possessions”

1. Susan Munro, Service Consumer 4. Starbucks: Delivering Customer Service

2 Customer Behavior in Service Encounters

2. Four Customers in Search of Solutions 3. Dr. Beckett’s Dental Office 9. Sullivan Ford Autoworld 16. Shouldice Hospital

3 Developing Service Concepts: Core and Supplementary Elements

Leonard L. Berry, Venkatesh Shankar, Janet T. Parish, Susan Cadwallader, and Thomas Dotzel, “Creating New Markets Through Service Innovation”

3. Dr Beckett’s Dental Office 6. Aussie Pooch Mobile 10. CompuMentor and the DiscounTech.org Service 18. TLContact Care Pages Services (A)

4 Distributing Services Through Physical and Electronic Channels

Prosenjit Datta and Gina S. Krishnan, “The Health Travellers”

Leonard L. Berry, Venkatesh Shankar, Janet T. Parish, Susan Cadwallader, and Thomas Dotzel, “Creating New Markets Through Service Innovation”

6. Aussie Pooch Mobile 7. Jollibee Foods Corporation 10. CompuMentor and the DiscounTech.org Service

5 Exploring Business Models: Pricing and Revenue Management

Sheryl E. Kimes and Richard B. Chase, “The Strategic Levers of Yield Management”

8. Accra Beach Hotel

6 Educating Customers and Promoting the Value Proposition

10. CompuMentor and the DiscounTech.org Service 17. Massachusetts Audubon Society


Chapter Possible Reading(s) Possible Case(s)

7 Positioning Services in Competitive Markets

Emily Thornton, “Fees! Fees! Fees!” John H. Roberts, “Defensive Marketing: How

a Strong Incumbent Can Protect Its Position”

5. Giordano 7. Jollibee Foods Corporation 16. Shouldice Hospital

8 Designing and Managing Service Processes

Loizos Heracleous, Jochen Wirtz, and Robert Johnston, “Kung-Fu Service Development at Singapore Airlines”

3. Dr Beckett’s Dental Office 16. Shouldice Hospital

9 Balancing Demand and Productive Capacity

Keith A. Gilson and Deepak K. Khandelwal, “Getting More from Call Centers”

8. Accra Beach Hotel 16. Shouldice Hospital

10 Crafting the Service Environment

Stephan H. Haeckel, Lewis P. Carbone, and Leonard L. Berry, “How to Lead the Customer Experience”

3. Dr. Beckett's Dental Office 16. Shouldice Hospital

11 Managing People for Service Advantage

Keith A. Gilson and Deepak K. Khandelwal, “Getting More from Call Centers”

3. Dr. Beckett’s Dental Office 11. Dr. Mahalee Goes to London 12. Menton Bank 13. Red Lobster 16. Shouldice Hospital

12 Managing Relationships and Building Loyalty

Diane Brady,—Why Service Stinks Frederick F. Reichheld, “The One Number

You Need to Grow”

11. Dr. Mahalee Goes to London 14. Hilton HHonors Worldwide: Loyalty Wars 17. Massachusetts Audubon Society

13 Achieving Service Recovery and Obtaining Customer Feedback

Frederick F. Reichheld, “The One Number You Need to Grow”

15. Accellion Service Guarantee

14 Improving Service Quality and Productivity

11. Dr. Mahalee Goes to London 16. Shouldice Hospital

15 Organizing for Change Management and Service Leadership

John H. Roberts, “Defensive Marketing: How a Strong Incumbent Can Protect Its Position”

11. Dr. Mahalee Goes to London 16. Shouldice Hospital 18. TLContact: Care Pages Services (A)

For more detailed descriptions of fit between readings and chapters, see Exhibit 3–1 (p. 3–2); for fit between cases and chapters, see Exhibit. 5–1 (p.5–2).


DEVELOPING YOUR OWN COURSE

This book gives you plenty of flexibility in putting together a course that will meet your

own specific teaching objectives. Many instructors will doubtless choose to use some

subset of the materials in the book or to resequence the materials to suit their preferences.

Two important considerations in sequencing of materials are (1) to decide when you want

to introduce certain key concepts that will be referred to again in subsequent chapters,

and (2) to ensure that each module builds logically on the previous one.

One option for enhancing your course with updated materials on topics of particular

interest to you and your students is to supplement the content of the book with additional

readings, which may include topical articles from such management-oriented periodicals

as the Financial Times, the Wall Street Journal, Business Week, National Post (Canada),

Fortune, Harvard Business Review, and various industry-specific magazines. The

business sections of daily and Sunday newspapers often contain interesting stories about

local or national service businesses that might serve as a topic for discussion. Good

sources of more academically-oriented articles include European Journal of Marketing,

International Journal of Service Industry Management, Journal of the Academy of

Marketing Science, Journal of Marketing, Journal of Retailing, Journal of the Market

Research Society, Journal of Services Marketing, Journal of Service Research, Managing

Service Quality, Service Industries Journal, and Sloan Management Review (however,

this list does not exhaust the possibilities).

Finally, you may be able to enhance the students’ experience by referring them to

relevant corporate Web sites that provide insights into strategies that relate to the topic

being covered in a specific class. The teaching notes for many of the cases include the

address of one or more relevant Web sites.

Course Prerequisites

Discuss the learning objectives for each chapter to facilitate the instructor.

Exposure to introductory marketing management course.

Materials on economic and financial analysis in marketing (e.g., break-even

analysis).

If students have little exposure to basic marketing, build early lectures around

concepts like market segmentation, competitive analysis, consumer decision-

making processes, and the marketing mix.

Class Format

Class should ideally be at least 70 minutes. This allows time for a good case

discussion and wrap up.


Two sample course outlines are included, one for undergraduate classes and

the other for MBA or EMBA teaching. These samples should be seen simply

as departure points for developing your own course.

Guest Speakers

In our experience, students enjoy a presentation by a marketing manager from a local

service firm. It’s helpful, too, to invite guest speakers to comment on a class discussion of

a case that deals with their industry, and then to talk about their own firm, and field

student questions. The best way to ensure that a guest speaker is informative in ways that

build usefully on the course is to brief the individual in advance, share prior course

material with him/her, and—most important of all—ensure that time is allocated for

student questions. A “planted” question from the instructor can also help bring out a key

insight from the guest speaker.

Written Assignments

Section 2 of the manual provides a variety of exercise that can be used as written

assignments for the students. In addition to that, instructors may wish to select one or

more of the following:

1. Written analyses of cases are assigned on a “rolling report” basis. Each student

must select one (or more) of the cases assigned and turn in a paper before class. This

approach—which we recommend—has the virtue of spreading the instructor’s

workload in marking papers and of ensuring that at least a few students are very well

prepared for the class in question! Such an assignment could also be coupled with

formal in-class presentations.

2. Report on consulting projects. Students work individually or in teams to undertake

consulting projects with cooperating businesses. This approach is popular with MBAs

and other mature students. You should require students to submit a preliminary

proposal to you before approving a project to ensure that the topic is both appropriate

and feasible within the time constraints of the course. Setting an early date for

submission of the proposals forces students to get working quickly to select and scope

out their projects. The assignment may be limited to just a written report or it may

include in-class presentations (note: presentations can be time consuming and you

may not be able to allocate more than one class session for this purpose).

3. Internet-based assignments. Various options are available here, including:

You assign students to review specific sites related to in-text examples (or

examples of your own).

You give an assignment offering a restricted choice of sites (e.g., compare and

contrast three bank sites and three consulting firm sites).


Students are given wide latitude to search the Internet in pursuit of an

individual or group research project.

Exams

Cases can be used for midterm and final exams purposes. Four hours is

required if administered in a formal exam.

Cases can also be assigned on a take-home basis.

Alternatively, set essay questions based on topics and concepts in the course

Exams can also be substituted by take-home written assignments and term

papers based on original research as these may be better indicators of

students’ skills, learning, and motivation

Evaluation of Students

For active participation, a certain percentage of the course grade can be

allocated to class participation.

Possible allocation of marks could be 30–40 percent for class participation,

20–30 percent for written assignment and 30–50 percent for a final exam.

For those preferring not to evaluate class participation, a common allocation is

20 percent for term paper, 40 percent for midterm exam, and 40 percent for

final exam.

TEACHING A COURSE THAT INCLUDES CASES

It’s common to hear of teaching by “The Case Method” as if there were only one way of

doing it. In practice, there are many different ways of using cases in a classroom

environment and a wide variety of instructor styles. The essence of case teaching is that

students and instructors participate in direct discussion of management problems. A case,

as one faculty member described it, “is the vehicle by which a chunk of reality is brought

into the classroom to be worked over by the class and the instructor.” Success in this

endeavor requires a commitment by both instructor and students to the use of cases as a

key-learning tool. Your role as a teacher includes choosing the material for study, setting

learning goals for each class, and shaping and facilitating the progress of class discussion.

The major onus, however, for learning must be placed on the students.

In this brief note, we won’t attempt to produce an in-depth guide to case teaching.

Instead, we highlight some of the basic steps that you can take to make students

comfortable and motivated in what many of them may perceive as a somewhat different

teaching environment to that which they have been accustomed in the past. The remarks

that follow are addressed primarily to the beginning case teacher rather than to the well-

seasoned instructor.


Before the Term Begins

Classroom setup

Seats arranged in a horseshoe or semicircle, with the rows rising in banks

behind each other to produce better sight lines is a more appropriate physical

arrangement.

Acoustics should be good to facilitate class discussion without the need for

microphones.

Marketing cases seats arranged in a horseshoe or semicircle, with the rows

rising in banks behind each other to produce better sight lines. Acoustics

should be good to facilitate class discussion without the need for microphones.

A built-in screen and electrical outlets for overhead projectors, electronic

projectors, and videotape players are also desirable features.

At the Beginning of the Course

Dispelling Student Misperceptions of “Old” Cases

Some of the cases in this book date from 2000, and others are as recent as

2006 or 2007. Students may be misguided and think that only cases published

within the past 12 months can possibly still be relevant.

Experienced instructors address this misconception right at the beginning of

the course, recognizing that if they fail to do so, students will not be motivated

to invest time in studying what they see as “outdated” material.

A number of the current best-selling cases from the Harvard Business School

collection were written more than a quarter of a century ago.

Grading Criteria

At strongly case-oriented schools where cases are used in almost every

session of a marketing course, it’s quite common for 40–50 percent of a

student’s course grade to be based on the quality and quantity of his or her

class participation, with the balance being derived from written assignments

and performance on the final exam.

We believe strongly that it is the instructor’s responsibility to motivate

students to participate in case discussions, to evaluate their performance, and

to give individual feedback. Grading student contributions meets these needs.

Setting Expectations

You should reinforce and expand upon the points in this note by clearly stating your

expectations of students in several crucial areas:

Good preparation for each class.


Prompt arrival before each class session begins.

Complete attendance throughout the course.

Regular participation in class discussions.

Attentiveness to other students’ comments.

Of course, these expectations will quickly prove unrealistic if the instructor does not set a

good example! Consistently begin and finish classes on schedule. Make clear by your

own remarks that you have been listening carefully to what students have been saying.

Challenge misstatements of fact, wrong numbers, and faulty reasoning—but don’t tear

students down in the process, especially at the beginning of the course when many of

them may be feeling nervous and insecure. The challenge is to be supportive in

demanding high standards of your students, so that these standards become part of their

own value system rather than a goal based upon fear of embarrassment in front of their

peers. The first few sessions of a case course can be crucial in terms of establishing the

necessary rapport and creating an atmosphere of mutual respect between students and

instructor.

Getting to Know Students

An important aspect of building this rapport is getting to know your students

so that you can both address and refer to them by name.

Some schools make it easier for instructor and students to get to know each

other by providing name cards that students can have in front of them; the

registrar may also provide the instructor with class cards containing each

student’s name, photograph, and brief biographical details.

If your school has a student picture book, with “mug shots” of all enrolled

students, then you may be able to cut and paste each student’s picture onto

that individual’s completed data sheet.

The data sheet is helpful for recording details of students’ class participation.

Quantitative Work

Only a few of the cases in the book can be prepared without any quantitative analysis.

Indeed, several cases require a fairly rigorous review of the data in the text and exhibits

to determine which numbers are important, credible, and need further manipulation to

yield useful managerial insights. So check early in the course that all students are familiar

with basic concepts in economic and financial analysis that relate to marketing.

As the Term Proceeds

In case courses, feedback needs to be given at two or even three levels: (1) the

individual, (2) group projects, if any, and (3) the class as a whole. The quality

of case discussions depends on the performance of all students combined—

including both those who participate and those who do not.


Plan on giving regular feedback to the class as a whole about the quality of

class discussions. If you feel that the depth of analysis was weak, the breadth

of class participation limited, or the arguments lacking in substantiation, then

you should say so. Similarly, you should acknowledge good performance by

the class as a whole.

Constructive criticism, offered in a supportive manner, will motivate the class

and make students want to perform well as a member of a larger group. Good

quality discussions should also be recognized. Praise, used selectively,

highlights what has been done well and should stimulate equal or even better

performance in the future.

Feedback to individual students is a separate, albeit related task. It usually

takes several weeks or more before you can make reasonable judgments about

a student’s overall caliber as a classroom participant.

An outstanding contribution can be publicly acknowledged (“That was an

excellent insight, Anna!”) but it’s usually more productive to counsel weak

performers out of class. One exception to this generalization concerns

individuals who persist in making poor use of class time. If you don’t bring

them up short, this inaction on your part may signal to other students that their

instructor is really indifferent to the quality of class discussion.

Frequent participation does not necessarily mean high-quality contributions

and students should understand that. You have to moderate the class should

the speaker go off tangent in a discussion.

The greater the weight that you place on participation as an input to grading,

the more likely you are to have students making office appointments and

asking you, “How am I doing?” By making good notes on each student’s data

sheet or class card concerning their participation (if any) in each class, you

will be better placed to offer individual students useful evaluations of their

class performance as well as advice for improvement.

You may want to consider sending a personal memo midway through a course

to each participant containing general comments about their progress in the

course.

Group projects or preassigned presentations are often a good way of involving

students who find it hard to make spontaneous comments in class. In addition

to providing a change of pace in the classroom, this pedagogical device has

the advantage of forcing students to get involved with the case instead of just

maintaining a highly detached position.

Obtaining Feedback

Feedback should be a two-way street. As an instructor, you should be seeking

feedback from your students as well as giving it to them.

Feedback should already be obtained midway through the term as it may

indicate a need to make adjustments to either course content or your teaching

approach during the balance of the course.


Responses to a midterm evaluation form should be anonymous. The questions

can usefully cover several points. You can ask students to rate each case on a

five-point scale in terms of its contribution to their learning. It’s important to

link case evaluation to learning, because otherwise students will tend to focus

simply on whether they enjoyed the class discussion or found the topic to be

personally interesting.

If you want more specific feedback, allow room for additional comments on

specific cases; however, experience suggests that only a limited number of

students will take the time to explain their ratings.

You should also ask for open-ended comments or suggestions on the conduct

and progress of the course to date.

Additional useful feedback, especially for an instructor who is relatively new

to case teaching, is to invite a more experienced colleague to sit in and

observe one or more of your classes. Another form of feedback is to audiotape

or videotape the class for subsequent review.

In summary, case teaching is a demanding but exciting approach to education. Many

instructors find it a challenging and rewarding experience and we hope that you will, too.


Sample Form - Student Data Sheet

[Course Title]

TO: Participants PHOTO

FROM: [Instructor’s Name] DATE:

To help me to get to know you better, would each of you please complete this

information sheet and return it as soon as possible?

Name and Address

Full Name_______________________________________________________________

What first name/nickname do you prefer to be called by? _________________________

Local Mailing Address_____________________________________________________

Email____________________________________ Phone______________________

Career Interests and Areas of Special Expertise

What career interests/plans do you have after graduation?

_______________________________________________________________________

_______________________________________________________________________

What full-time jobs (if any) have you held?

Employer Location Job Title(s) Dates

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

Do you have special knowledge of any industries? Which? ________________________

Degree(s) Sought

Which degree(s) are you currently studying for? ________________________________

Degree(s) previously obtained_______________________________________________


SAMPLE COURSE OUTLINES

Starting on the following page, we present outlines for two courses.

Appendix 1–1: A four-day EMBA course on Services Marketing

Appendix 1–2: A 35-hour, one-semester MBA course on Services Marketing consisting

of 26 sessions meeting twice a week for 75–80 minutes

Appendix 1–3: A 36-hour, one-semester undergraduate course on Services Marketing

consisting of 12 sessions of three hours each.

These outlines illustrate possible approaches to:

Sequencing topics.

Augmenting chapter coverage with cases and/or readings.

Using readings and/or cases independently of chapters.

Setting assignments for individual classes, including group presentations.

Employing the learning from student exercises as inputs to class discussion.

These outlines should be seen simply as providing a useful point of departure for designing your own course. Our goal in writing the book is to give instructors as much flexibility as possible and to offer a good mix of readings and cases from which to make selections. Some instructors will probably choose to select just a subset of all the chapters, cases, and readings in the book (or decide to assign them in a different sequence to match their own teaching objectives). Many of the cases are very versatile teaching tools that often embrace multiple issues and can be used to illustrate or reinforce concepts from several different chapters. Suggested study questions are included at the end of each chapter, but it is up to you to decide which—and how many—of these you wish to assign.

As you think about assignments, be sure to consider students’ past exposure to marketing

and their ability to devote significant time to advance reading and case preparation. When

setting assignments for specific dates, check for possible conflicts (e.g., religious or other

holidays, special events on campus, exams or other heavy assignments in closely related

classes) that may affect students’ attendance or at least impair their ability to prepare for

an important class in your own course.


_____________________________________________________________

APPENDIX 1–1

Sample Outline for a four-day EMBA course

_____________________________________________________________

A. Key Objectives

To provide an appreciation and understanding of the unique challenges inherent

in marketing, managing, and delivering service excellence at a profit.

Participants will be introduced to and have the opportunity to work with tools

and strategies that address these challenges.

To develop an understanding of the “state of the art” of service management

thinking.

To promote a customer service-oriented mindset.

B. Content

Introduction to Services Marketing—Trends, Opportunities, and Capturing

Value

Creating Value, Branding and Positioning Services

Pricing of Services and Revenue Management

Understanding Service Quality and How to Pinpoint Quality Shortfalls

Improving Service Quality

The Wheel of Loyalty—Customer Asset Management and Loyalty Programs

CRM, Segmentation and Tiering of Services, and Churn Diagnostics and

Management

Designing Effective Customer Feedback Systems

HRM Strategies that Lead to Loyal Employees and High Customer Orientation

Customer Service Process Design

Characteristics of Successful Service Firms

C. Method of Assessment

Pre-module Assignment and Presentation : 30 percent

Class Participation : 30 percent

Final Examination (open book) : 40 percent


D. Time Table and Outline of Sessions

Day 1

Session 1 Introduction to Services Marketing—Trends, Opportunities, and Capturing

Value

- Read—Lovelock and Wirtz, “New Perspectives on Marketing in the

Service Economy,” Chapter 1

Session 2 Understanding Service Quality and How to Pinpoint Quality Shortfalls

- Read—Lovelock and Wirtz, “Managing Relationships and Building

Loyalty,” Chapter 12

- Read—Lovelock and Wirtz, “Improving Service Quality and

Productivity,” Chapter 14

Session 3 The Wheel of Loyalty—CRM, Loyalty Programs

- Case—Hilton HHonors Worldwide: Loyalty Wars

Session 4 Customer Base Segmentation, Tiering of Service, and Churn Management

- Group Presentation—Assessment of a CRM Strategy and

Implementation

Day 2

Session 5 Improving Service Quality I

Session 6 Improving Service Quality II

- Group Presentation—Assessment and Recommendations for a Service

Quality Initiative

Session 7 Designing Effective Customer Feedback Systems

- Read—Lovelock and Wirtz, “Achieving Service Recovery and

Obtaining Customer Feedback,” Chapter 13

- Group Presentation—Evaluation and Recommendations for a CFS

Session 8 Creating Value and Positioning Services

- Case—Jollibee Food Corporation

Day 3

Session 9 Pricing of Services and Revenue Management I


- Read—Lovelock and Wirtz, “Exploring Business Models: Pricing and

Revenue Management,” Chapter 5

- Case—Accra Beach Hotel

Session 10 Pricing of Services and Revenue Management II

- Group Presentation—Critique of a Revenue Management Strategy and

Recommendations

Session 11 Delivering Customer Service

- Case—Starbucks: Delivering Customer Service

Session 12 Marketing High Involvement Credence Services—Consumer Behavior and

Communications Mix

- Read—Lovelock and Wirtz, “Customer Behavior in Service

Encounters,” Chapter 2, and “Educating Customers and Promoting the

Value Proposition,” Chapter 6

Day 4

Session 13 Managing People for Service Advantage I

- Read—Lovelock and Wirtz, “Managing People for Service Advantage,”

Chapter 11

- Read—Lovelock and Wirtz, “Organizing for Change Management and

Service Leadership,” Chapter 15

Session 14 Managing People for Service Advantage II

- Group Presentation—Front-Line Staff Management and Service Culture

Session 15 Service Design and Strategy—the Formula for Success

- Group Presentation—Assessment and Recommendations for a Six

Sigma Implementation or a Customer Service Process Redesign

Initiative

- Case—Shouldice Hospital

Session 16 Wrap-up of Module, Characteristics of Successful Service Firms

Exam


E. Pre-Module Assignments and Group Presentations

The pre-module assignments are a group effort, and are due on the day of the group

presentation. The submission should be in PowerPoint format and should be self-

explanatory. All analyses, spreadsheets, and other supplementary materials should be

provided in an appendix to the main PowerPoint report.

Discuss a few case context options and methodologies for analysis with me before

proceeding with your project beyond the initial research stage. Feel free to use one of the

current or former employers of a group member and invite their management to your

presentation after discussion with me.

Group Presentation: Assessment of a CRM Strategy and Its Implementation

1. Analyse the implementation of a CRM Strategy. What went right, what problems

were encountered, and what are the lessons for future CRM implementations?

2. Which areas do you think the firm could further improve on, that is, what are the

next steps for its CRM strategy?

Group Presentation: Assessment and Recommendations for a Service Quality Initiative

1. Analyse a Service Quality Initiative in a service firm one of your group members is

familiar with. What went right, what problems were encountered, and what are the

lessons for other service firms interested in implementing a similar initiative?

Group Presentation: Analysis of a Customer Feedback System

1. Conduct a diagnostic analysis of the customer feedback system (CFS) of a service

firm. Examine all aspects of the current CFS, including data collection, reports, and

attitudes of management and front-line staff toward customer feedback.

2. Identify potential gaps that exist between current and best practice.

3. What would you recommend to the firm, to cost-effectively improve its customer-

driven learning via its CFS?


Group Presentation: Revenue Management Strategy and Recommendations

1. Develop a check list of potential revenue management tools, pricing schemes, and

fencing mechanisms suitable for a service industry of your choice.

2. Critique the current revenue management strategy of a firm of your choice in the

selected industry, and then propose improvements to that revenue management

strategy. Specifically:

- Recommend revenue management strategies the firm could implement to

maximize contribution during low- as well as high-demand periods. Think

creatively and do not just suggest simple but usually ineffective strategies such

as student discounts during off-peak hours and the like.

- Using estimated or actual financial data to derive the potential revenue and

profit impact of all short-listed revenue management measures the firm should

consider implementing. Make any reasonable assumption required to do this.

- Consider the potential customer and staff reactions to these suggested measures.

Specifically, would these measures reduce customer satisfaction and jeopardize

long-term profitability? If yes, how could the firm manage customer

satisfaction and still implement these strategies? Would staff (especially temp

staff) be able to handle the recommended measures? If not, should they be

deployed or how could the firm help the staff to effectively deal with these

measures?

- Finally, given the potential profit impact and customer and staff responses, what

revenue management measures would you recommend the firm to implement,

and what would you recommend the firm to do to minimize possible customer

and employee conflicts resulting from these measures?

Group Presentation: Front-Line Staff Management and Service Culture

1. Analyse a service firm that significantly improved its service quality, productivity

and sales effectiveness (if applicable) delivered by its front-line employees. Focus

on:

- Determining the critical success factors for achieving these improvements.

- What went wrong?

- What could have been done better?

- What further improvements do you recommend from the status quo?


Group Presentation: Assessment and Recommendations for a Six Sigma

Implementation or a Customer Service Process Redesign Initiative

1. Analyse a Six Sigma Implementation or a Customer Service Process Redesign

Initiative in a service firm one of your group members is familiar with. What went

right, what problems were encountered, and what are the lessons for other service

firms interested in implementing a similar initiative?

Main Text

Christopher Lovelock and Jochen Wirtz (2007), Services Marketing: People,

Technology, Strategy, 6th ed., Upper Saddle River, New Jersey: Prentice Hall.


_____________________________________________________________

APPENDIX 1–2

Sample Outline for a 26-Session x 80 Minutes MBA Course

_____________________________________________________________

PART I: UNDERSTANDING SERVICE MARKETS, PRODUCTS, AND

CUSTOMERS

1. Introduction to Module and Services Marketing

Key Issues

Introduction of course, goals, marking, and use of cases, etc.

Evolution of services marketing

Fresh view of services

Required Reading

Chapter 1, “New Perspectives on Marketing in the Service Economy,” (pp. 4–16)

2. How Service Characteristics Affect Marketing Strategy

Key Issues

Characteristics of services and the implications on marketing strategy

The 8Ps of services marketing

Required Reading

Chapter 1, “New Perspectives on Marketing in the Service Economy,” (pp. 16–

29)

Nick Wingfield, “In a Dizzying World, One Way to Keep Up: Renting

Possessions,” (pp. 64–65)

PART II: BUILDING THE SERVICE MODEL

3. Consumer Behavior in Services

Key Issues

Four broad categories of service

The 3-stage model of consumer behavior

High- and low-contact service encounters


Required Reading

Chapter 2, “Consumer Behavior in Service Encounters,” (pp. 32–61)

Prepare Four Customers in Search of Solutions case or Sullivan Ford Auto World

case

4. The Augmented Service Product

Key Issues

Core and supplementary services

Flowcharting

The flower of service

Service branding

Required Reading

Chapter 3, “Developing Service Concepts: Core and Supplementary Elements,”

(pp. 68–86)

Prepare the Flower of Service Exercise (Section 2, Exercise 3)

5. Adding Value and Developing New Services

Key Issues

Service branding

New service development

Required Reading

Chapter 3, “Developing Service Concepts: Core and Supplementary Elements,”

(pp. 86–96)

Leonard L. Berry, Venkatesh Shankar, Janet T. Parish, Susan Cadwallader, and

Thomas Dotzel, “Creating New Markets Through Service Innovation,” (pp. 478–

484)

6. Distributing Services—1

Key Issues

Service delivery options

Cyberspace delivery of service elements

Role of service intermediaries

Required Reading

Chapter 4, “Distributing Services Through Physical and Electronic Channels,”

(pp. 98–112)

Prepare Aussie Pooch Mobile case


7. Distributing Services—2

Key Issues

Service franchising

International distribution of services

Drivers of transnationally integrated strategies

Required Reading

Chapter 4, “Distributing Services Through Physical and Electronic Channels,”

(pp. 112–122) Prosenjit Datta and Gina S. Krishnan, “The Health Travellers,” (pp. 207–210)

8. Service Pricing—1

Key Issues

The pricing tripod

Monetary and non-monetary outlays

Implementing service pricing

Required Reading

Chapter 5, “Exploring Business Models: Pricing and Revenue Management,” (pp.

124–151)

9. Service Pricing—2

Key Issues

Revenue management, inventory buckets, and rate fences

Ethical concerns and perceived fairness of pricing policies

Required Reading

Sheryl E. Kimes and Richard B. Chase, “The Strategic Levers of Yield

Management,” (pp. 211–219)

Prepare Accra Beach Hotel case

10. Educating and Promoting Services

Key Issues

Role of marketing communications

Challenges of services communications

The marketing communications mix

Implications of the Internet for marketing communication


Required Reading

Chapter 6, “Educating Customers and Promoting the Value Proposition,” (pp.

154–180)

Prepare Massachusetts Audubon Society case

11. Positioning Services in Competitive Markets—1

Key Issues

Positioning maps and strategy

Required Reading

Chapter 7, “Positioning Service in Competitive Markets,” (pp. 184–205)

Read Emily Thornton, “Fees! Fees! Fees!” (pp. 220–224)

12. Positioning Services in Competitive Markets—2

Required Reading

Read John H. Roberts, “Defensive Marketing: How a Strong Incumbent Can

Protect Its Position,” (pp. 225–229)

Prepare Giordano case

PART III: MANAGING THE CUSTOMER INTERFACE

13. Service Blueprinting

Key Issues

Service blueprinting

Service process redesign

Required Reading

Chapter 8, “Designing and Managing Service Processes,” (pp. 232–245)

Read Loizos Heracleous, Jochen Wirtz, and Robert Johnston, “Kung-Fu Service

Development at Singapore Airlines”

Prepare the Service Blueprinting Exercise (Section 2, Exercise 8)

14. The Customer as Co-Producer

Key Issues

The customer as co-producer

Self-service technologies


Managing jaycustomers

Required Reading

Chapter 8, “Designing and Managing Service Processes,” (pp. 245–257)

Prepare Shouldice Hospital case

15. Balancing Demand and Supply

Key Issues

Productive capacity—definition and management

Demand cycles

Demand analysis and forecasting

Demand management

Required Reading

Chapter 9, “Balancing Demand and Productive Capacity,” (pp. 260–273)

Read Keith A. Gilson and Deepak K. Khandelwal, “Getting More from Call

Centers,” (pp. 246–251)

16. Waiting Lines and Reservations

Key Issues

Psychology of waiting time

Queuing theory

Managing waiting lines and reservations strategies

Required Reading

Chapter 9, “Balancing Demand and Productive Capacity,” (pp. 273–285)

Prepare application exercise 3 (p. 286)

17. Crafting the Service Environment

Key Issues

Servicescape

Components of the servicescape

Dimensions of service environment

Required Reading

Chapter 10, “Crafting the Service Environment,” (pp. 273–285)

Read Stephan H. Haeckel, Lewis P. Carbone, and Leonard L. Berry, “How to

Lead the Customer Experience,” (pp. 352–355)


18. Managing People for Service Advantage

Key Issues

Frontliners as boundary spanners and role conflicts

Cycles of failure, mediocrity, and success in HR management

The Wheel of Successful HR in Service Firms

Empowerment of employees

Service teams

Service culture

Required Reading

Read Chapter 11, “Managing People for Service Advantage,”(pp. 310–339)

Prepare Menton Bank case

PART IV: IMPLEMENTING SERVICE STRATEGIES

19. Managing Relationships and Building Loyalty

Key Issues

Lifetime value of a (loyal) customer

Relationship marketing

The Wheel of Loyalty

Tiering of services

Required Reading

Read Chapter 12, “Managing Relationships and Building Loyalty,” (pp. 358–373

only) Diane Brady, “Why Service Stinks” Prepare Dr. Mahalee Goes to London case

20. Guest Speaker

21. Developing Loyalty Programs

Key Issues

Loyalty bonds

Membership/loyalty marketing

Customer defections/churn

Customer relationship management (CRM)

Required Reading

Read Chapter 12, “Managing Relationships and Building Loyalty,” (pp. 373–339

only)


Prepare Hilton HHonors Worldwide case

22. Complaint Handling and Service Recovery

Key Issues

Service guarantees

Customer feedback systems

Required Reading

Chapter 13, “Customer Feedback and Service Recovery,” (pp. 390–412)

Read Frederick F. Reichheld, “The One Number You Need to Grow,” (pp. 485–

491)

Prepare Accellion Service Guarantee case

23. Service Quality

Key Issues

Elements of service quality

SERVQUAL scale

Service quality gaps

Hard and soft measures of service quality

TQM, ISO 9000, Malcolm Baldrige, and Six Sigma (Chapter 14)

Required Reading

Read Chapter 14, “ Improving Service Quality and Productivity,” (pp. 416–433

only)

Prepare review question 3, and application exercise 1 (pp. 441–442)

24. Linking Productivity and Quality Strategies

Key Issues

Service productivity: efficiency versus effectiveness (Chapter 14)

Required Reading

Read Chapter 14, “Improving Service Quality and Productivity,” (pp. 433–441

only)

Prepare responses to review questions 6 and 7, application exercise 5 (p.442)

25. Service Leadership

Key Issues

The Service Profit Chain


Cross-functional integration between marketing, operations, and HR

Service leadership at the human level

Change management

Leadership, culture, and climate

Required Reading

Read Chapter 15, “Organizing for Service Leadership”

Prepare TLContact: Care Pages (A) case

26. Review Session

Key Issues

Highlight key issues raised in course

Add any other powerful issues raised in class discussions, presentations, projects,

etc.

Main Text

Christopher Lovelock and Jochen Wirtz (2007), Services Marketing: People,

Technology, Strategy, 6th ed., Upper Saddle River, New Jersey: Prentice Hall.

* * * * *

Summary Comments on Course Design The above course outline suggests useful ways of matching readings and cases to specific chapters, but these are not the only alternatives. This outline can serve as the basis for helping you to design a course using alternative class formats (e.g., 10 sessions of three hours), 24 sessions x 75 minutes, and so forth. Obviously, with fewer contact hours, it will be necessary to cut back or even eliminate the coverage of certain topics or to use fewer cases and readings.


_____________________________________________________________

APPENDIX 1–3

Sample Outline for An Undergraduate Course

12 Weeks, 12 Sessions, 3 Hours per Session

A. Course Objectives, Expectations, and Assessment

The objectives of this module are:

To provide an in-depth appreciation and understanding of the unique

challenges inherent in managing and delivering quality services. Participants

will be introduced to and have the opportunity to work with tools and

strategies that address these challenges.

To develop an understanding of the “state of the art” service management

thinking.

To promote a customer service-oriented mindset.

Expectations from Participants

Come to each class well prepared to be able to discuss the required readings

and assigned cases in detail. For each case discussion in class, write up your

analysis and recommendations beforehand.

Provide the respective groups with their data/reports by the due date (e.g.,

service encounter journals, complaint/complement letters).

Actively participate in lectures and tutorials as much of the learning will come

from discussions during class. Display a name sign in all lectures.

Give a professional group presentation that is relevant to the lecture topics and

interesting for the class. (Once a week.)

Internalize the concepts covered in the course and be able to creatively use

them in an applied context. This course is all about understanding and

application to the real world.


Components of Assessment

Final Test (open book): 40 percent

Group Presentation: 35 percent

Individual Assignments: 15 percent

Class Participation: 10 percent

B. Class Schedule

Week 1 Introduction to Services Marketing—Trends and Opportunities

Week 2 Consumer Behavior—Managing and Understanding the Service Experience

Week 3 Marketing Mix I: The Service Product

Case Presentation: TLContact.com

Week 4 Marketing Mix II: Communications Mix for Services

Marketing Mix III: Pricing of Services and Revenue Management

Date Due for Service Encounter Journal Template

Week 5 Marketing Mix IV: Distributing Services

Case Presentation: Jollibee Foods Corporation

Project Presentation: Pricing Models for Mobile Phone Services

Date Due for Complaint and Compliment Letters

Week 6 Service Delivery I: Designing Customer Service Processes

Service Delivery II: Designing the Service Environment

Week 7 Service Delivery III: Managing People for Service Advantage

Case Presentation: Menton Bank

Week 8 Marketing Implementation I: Managing Customer Loyalty

LTV, Loyalty Programs, and CRM

Date Due for Company Response Analysis of Complaint and Compliment

Letters

Week 9 Marketing Implementation II: Customer Feedback and Service Recovery

Date Due for Service Encounter Journal Analysis

Week 10 Marketing Implementation III: Improving Service Quality and Productivity

Case Presentation: Hilton HHonors Worldwide—Loyalty Wars

Week 11 Marketing Implementation IV: Organizing for Service Leadership

Project Presentation: Recommend-a-Friend Programs Analysis


Project Presentation: Analysis of Complaint/Compliment Letters and

Managerial Implications

Week 12 Wrap-up of Course

Project Presentation: Service Encounter Journal Analysis—Drivers of

(Dis)Satisfaction

Project Presentation: Service Encounter Journal Analysis—How to Get

Loyal Customers

Date Due for Course Folder Documenting Individual Assignments and

Case Preparations

C. Overview—Assignments

In this module, you will have to do the following individual and group assignments—they

are presented in approximate order of their due dates.

Assignments—Individual

1. Case write-up for each case: one to two page write-up(s) for each case in bullet

point form.

2. Complaint and compliment letters.

3. Analysis of company response and your reaction to that response.

4. Six service journal encounters and their analyses.

5. Submission of course folder, containing copies of all your individual assignments

(see list above).

Assignments—Groups

1. One case presentation, submit PowerPoint charts on the day of the presentation,

but no report or write-up.

2. One project, including presentation and report. Submit both on the day of the

presentation.

Some individual assignments have to be handed to groups who will analyze those

assignments for the class. Therefore the assignments have to be passed to the respective

groups on time during the break at the respective classes as outlined in the timetable. The

groups are not responsible for chasing individual students on their respective deliverables.

Rather, on the due date, each group will submit a list of all students who submitted their

deliverables on time. Please note that 10 marks will be conducted for late delivery of each

item from the total grade for the Individual Assignment Grade.


D. Outline of Lectures and Readings

1. Introduction to Services Marketing and Frameworks for Understanding Services

Key Issues

Macroeconomics, Trends, and Opportunities

Distinctive Marketing Challenges Posed by Services

Categorization of Services

Required Readings

Lovelock and Wirtz, Chapter 1

2. Consumer Behavior—Managing and Understanding the Service Experience

Key Issues

The Three-Stage Model of Consumer Behavior Applied to Services

Customer Expectations

The Service Delivery System

Theatre as a Metaphor for Service Delivery

Role and Script Theories Applied to Services

Required Readings


3. Key Element I: The Service Product

Key Issues

Key Steps in Service Planning

Core and Supplementary Services

The Flower of Service—Adding Value via Supplementary Services

Branding of Services

New Service Development

Required Readings



4. Key Element II: Designing the Communications Mix for Services

Key Issues

Communication Strategies for Services

Branding and Communications

Required Readings


5. Key Element III: Pricing Services and Revenue Management

Key Issues

Objectives and Foundation for Setting Prices

Cost-based, Value-based, and Competition-based Pricing

Revenue Management

Ethical Concerns and Perceived Fairness of Pricing Policies

Required Readings


Kimes and Chase, “The Strategic Levers of Yield Management,” reprinted in

Lovelock and Wirtz

5. Key Element IV: Distributing Services

Key Issues

Distribution Channels for Services

Type-of-Contact as Determinant of Channel Options

Global Distribution Systems

Required Readings


6. Service Delivery I: Designing Customer Service Processes

Key Issues

Blueprinting as a Basic Tool for Understanding and Managing Service

Processes

Service Process Redesign

Increasing Customer Participation


Balancing Demand and Capacity

Minimizing Perceptions of Waiting Time

Required Readings


7. Service Delivery II: Designing the Service Environment

Key Issues

The Servicescape Model

Dimensions of Service Environments

Engineering Customer Service Experiences

Required Readings


Haeckel, Carbone, and Berry, “How to Lead the Customer,” reprinted in Lovelock

and Wirtz.

8. Service Delivery III: Managing People for Service Advantage

Key Issues

Importance of Service Personnel

Conflicts in Boundary—Spanning Roles and Implications of Role Stress

The Cycles of Failure, Mediocrity, and Success

Selection, Training, and Motivation of Service Staff

Service Leadership and Service Culture

Required Readings


Gilson and Kandelwal, “Getting More from Call Centers,” reprinted in Lovelock

and Wirtz.

9. Marketing Implementation I: Managing Customer Loyalty

Key Issues

The Economics of Customer Retention

Managing the Customer Pyramid

The Wheel of Loyalty

Loyalty Programs


Customer Churn Diagnostics and Retention

CRM Strategies

Required Readings


Brady, “Why Service Stinks,” reprinted in Lovelock and Wirtz.

10. Marketing Implementation II: Customer Feedback and Service Recovery

Key Issues

Consumer Complaining Behavior

Principles of Effective Service Recovery Systems

The Power of Service Guarantees

Organizational Learning Through Effective Customer Feedback Systems

Required Readings


Reichheld, “The One Number You Need to Grow,” reprinted in Lovelock and

Wirtz.

11. Marketing Implementation III: Improving Service Quality and Productivity

Key Issues

Defining and Measuring Service Quality

The Quality Model: Diagnosing Service Quality Failures

Tools for Analyzing and Addressing Service Quality Problems

Return on Quality

Defining and Measuring Service Productivity

Improving Productivity

Required Readings


12. Marketing Implementation III: Organizing for Service Leadership

Key Issues

The Service Profit Chain

Integrating Marketing, Operations, and Human Resources

From Losers to Leaders—Four Levels of Service Performance


Service Leadership, Culture, and Climate

Required Readings


E. Main Text

Christopher H. Lovelock and Jochen Wirtz (2007), Services Marketing, 6th ed., Upper

Saddle River, New Jersey: Prentice Hall.

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