Services Marketing
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NUS BUSINESS SCHOOL NATIONAL UNIVERSITY OF SINGAPORE Course Outline BZ3612 - Services Marketing Instructor: A/P Jochen Wirtz, Ph.D. Office: BIZ 2 #03-08 Telephone: +65-6874-3656 Email: [email protected] IVLE: http://ivle.nus.edu.sg/workspace/search/template.asp?courseid=BZ3612_JW Table of Contents A. Course Objectives, Expectations & Assessment................................................................................... 2 B. Time Table ............................................................................................................................................ 3 C. Overview – Assignments ....................................................................................................................... 4 D. Outline of Lectures and Readings ........................................................................................................ 5 E. Case & Group Presentation Questions................................................................................................. 9 F. Guidelines for Group Presentations ................................................................................................... 13 G. Guidelines for Individual Assignments............................................................................................... 14 H. Required Text & Supplementary Readings ....................................................................................... 16 I. Assessment Forms ............................................................................................................................... 17 © Dr. Jochen Wirtz, 2002 Page 1 A. Course Objectives, Expectations & 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, analysis of loyalty/membership programs, mobile phone pricing questionnaire, and churn diagnostic questionnaire). · 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. · Internalise 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. · ‘House Rules’ for everyone to follow: - Do not come late for class - Switch off your pager and/or handphone during class - Do not pack up your notes until class is dismissed - Do not talk while fellow students are presenting or asking questions - Respect everyone’s opinion Components of Assessment · Final Examination (open book) : 50 % · Group Presentation : 25 % · Individual Assignments : 15 % · Class Participation : 10 % © Dr. Jochen Wirtz, 2002 Page 2 B. Time Table Session Topic 1 Introduction to Services Marketing – Trends & Opportunities 2 Consumer Behaviour Related to Services – Understanding the Service Experience 3 Marketing Mix I: Pricing of Services & Yield Management Marketing Mix II: Distribution of Services Case – Westin in Asia – Distributing Hotel Rooms Globally 4 Marketing Mix III: Communications for Services Marketing Mix IV: Designing Service Environments Group Presentation 1: Case – Develop a Yield Management Strategy for Prego Due date of Mobile Phone Pricing Questionnaire Due date of Complaint & Compliment Letters 5 Marketing Mix V: Designing Customer Service Processes Case - Shouldice Hospital 6 Marketing Mix VI: Managing Service Personnel I Group Presentation 2: Case – Pricing Models for Mobile Phone Services 7 Marketing Mix VI: Managing Service Personnel II Case – Bouleau & Huntley: Cross-selling Professional Services 8 Marketing Implementation I: Understanding Service Quality Due date of Loyalty/Membership Program Analysis 9 Marketing Implementation II: Managing Service Quality Designing & Implementing Effective Customer Feedback Systems Due date of Mobile Phone Churn & Retention Questionnaire Due date of Service Encounter Journal Analysis Due date of Company Response Analysis to Complaint & Compliment Letters 10 Marketing Implementation III: Managing Customer Loyalty LTV, Churn Alert-based Retention and Loyalty Programs; CRM Strategies Group Presentation 3: Value Propositions for Loyalty Programs that Work 11 Group Presentation 4: Case - Conduct a Churn Diagnostic & Retention Program for M1 Group Presentation 5: Analysis of Complaint/Compliment Letters & Managerial Implications Guest Speaker from MobileOne (to be confirmed) 12 Group Presentation 6: Service Encounter Journal Analysis – Drivers of (Dis)Satisfaction Group Presentation 7: Service Encounter Journal Analysis – How to Get Loyal Customers Due date of Course Folder documenting individual assignments and case preparations Wrap up of Course 13 Review © Dr. Jochen Wirtz, 2002 Page 3 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. No. Assignments – Individual 1. Case write-up for each case: one to two pages write-up for each case in bullet point form 2. Complaint & compliment letters 3. Response to mobile phone pricing questionnaire 4. Loyalty/membership program analysis 5. Mobile phone churn & retention questionnaire, and analysis 6. Six service journal encounters & their analyses 7. Analysis of company response & your reaction to that response 8. Submission of Course Folder, containing copies of all your individual assignments (see list above) No. Assignments – Groups 1. One group presentation, submit PowerPoint charts and appendix with detailed analysis on the day of the presentation, but no report write-up A lot of the individual assignments have to be handed to groups who will analyse 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 time-table. 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. © Dr. Jochen Wirtz, 2002 Page 4 D. Outline of Lectures and Readings 1. Introduction to Services Marketing · Key Issues - Macroeconomics, Trends & Opportunities - Features of Services & The Servuction Model · Required Readings - Lovelock, Wirtz & Keh, Chapters 1, 2 & 3 - Wirtz & Lovelock (2001), “Asia’s Growing Service Sectors,” reprinted in Lovelock, Wirtz & Keh 2. Consumer Behaviour Related to Services · Key Issues - The Three-Stage Model of Consumer Behaviour Applied to Services - Multi-attribute Models & Search, Experience, Credence and Ambiguous Attributes - Perceived Risk - Importance of the Consumption Stage for Services - Modelling Consumer Satisfaction with Services - Environmental Perspective of the Service Encounter - Perceived Control, Script & Role Theories Applied to Services · Required Readings - Lovelock, Wirtz & Keh, Chapter 4 3. Marketing Mix I: Pricing of Services · Key Issues - Pricing Strategies Applied to Services - Services Specific Issues on Price Discrimination - Cost Accounting for Services - Price Bundling and Cross-Selling - Yield Management · Required Readings - Lovelock, Wirtz & Keh, Chapter 9 - Wirtz, Ho & Patterson (2001), “Yield Management: Resolving Potential Customer and Employee Conflicts,” NUS Business School Working Paper. - Kimes & Wirtz (2002), “Restaurant Revenue Management Strategy at Prego,” NUS Business School Working Paper © Dr. Jochen Wirtz, 2002 Page 5 4. Marketing Mix II: Distribution · Key Issues - Distribution Channels for Services - Internationalisation of Service Firms - Global Distribution Systems · Required Readings - Lovelock, Wirtz & Keh, Chapter 11 - Wirtz & Ho (2001), “Westin in Asia – Distributing Hotel Rooms Globally,” reprinted in Lovelock, Wirtz & Keh. 5. Marketing Mix III: Communications · Key Issues - Setting Communication Strategies for Services - Services Specific Issues in Communication Strategies - Guidelines for Advertising of Services - Branding & Promotion of Services · Required Readings - Lovelock, Wirtz & Keh, Chapter 10 6. Marketing Mix V: Designing the Service Environment · Key Issues - A Theoretical Framework for Understanding the Impact of Service Environments on Customer Behaviour and Satisfaction - Engineering Customer Experiences · Required Readings - Carbone & Haeckel (1994), "Engineering Customer Experiences," Marketing Management, Vol. 3, No 9, p 9-19 7. Marketing Mix IV: Designing Customer Service Processes · Key Issues - Full-Service Models Versus Restricted Service Models - Isolating the Technical Core, Minimising the Servuction System & Production-Lining Services - Increasing