Showing papers on "Services marketing published in 2007"

Differential Effects of Preferential Treatment Levels on Relational Outcomes

Abstract: Despite its often controversial and philosophically divisive nature, preferential treatment of customers holds the potential to contribute to important relational outcomes valued by firms. In this study, sampled customers (n = 2,461) of a national upscale department store chain representing recipients of three different levels of preferential treatment are tested. While controlling for individual customer characteristics, higher levels of preferential treatment are shown to positively influence relationship commitment, increased purchases, share of customer, word of mouth, and customer feedback. This study fills a major services marketing research gap by assessing the favorable effects of higher levels of preferential treatment as a relationship marketing strategy.

Exit Services Marketing – Enter Service Marketing

Abstract: Since the 1970s, services marketing has grown into a major subdiscipline of marketing. It is constantly claimed – but is refuted in the article – that services are now the dominant economic activity in developed countries and keeps growing while the two traditional goods sectors, manufacturing and agriculture, are declining. An unsolved problem that has been swept under the carpet is the fact that goods and services always appear together. An international debate on the content of services marketing and marketing in general is in progress, especially fuelled by the service-dominant logic suggested by Vargo and Lusch (2004a). This new logic is a synthesis of knowledge and ideas that have been brewing over many decades. Among its tenets are that customers are not buying goods or services but value propositions to be of service to them, that customers are co-creators, and that value is actualized in the customer usage process rather than in the supplier value chain. The purpose of the article is to help break a deadlock of taken-for-granted “truths” in marketing, stimulate the emergence of more valid and relevant marketing theory and even uncover the inner secrets of marketing, its genome. In fulfilling this purpose the author points to the need to rethink several marketing-related issues, among them the economic sectors; alleged differences between goods and services; where and when marketing occurs; the interdependence between quality, productivity and profits; the roles of supplier and customer; the importance of customer-to-customer interaction (C2C); the high tech/high touch balance; the marketing mix; and relational and interactive approaches to marketing. Finally, the article questions the relevance of the marketing concept and customer centricity, advocating the need to apply “balanced centricity” and a stakeholder and network approach, epitomised by the author’s concept many-to-many marketing.

Maintaining customer relationships in high credence services

Abstract: Purpose – The growing importance of relationship marketing has increased interest in the role of consumer trust and loyalty in establishing, developing, and maintaining successful relational exchanges. The aim of this study is first, to examine the differential effects of perceived service quality, trust, and loyalty on repurchase intentions, second, to specify loyalty as a key mediating variable in the consumer‐trust repurchase intentions relationship, and finally, to directly confront the thesis that loyalty is a more powerful determinant of long‐term relationships than trust.Design/methodology/approach – To test the proposed model in the context of professional services, the authors use data collected from 1,125 customers of a global financial services firm.Findings – The results highlight customers' willingness to recommend the firm to relatives or friends to be the key driver of customer commitment to the organization.Research limitations/implications – Although this single‐industry approach may esta...

A Cultural Models Approach to Service Recovery

Abstract: Service recovery research remains conflicted in its understanding of consumers' recovery expectations and of why similar goods or service failures may lead to different recovery expectations. The authors argue that this conflict results from the assumption that consumer recovery expectations are monolithic and largely homogeneous, driven mainly by behavioral, relational, or contextual stimuli. Instead, recovery scenarios involving high-involvement (i.e., self-relevant) goods and service failures may activate closely held, identity-related cultural models that, though ultimately applied to regain balance (a foundational schema), differ according to their sociocultural heritage and create a range of unique consumer recovery preferences. The authors empirically identify three embodied cultural models—relational, oppositional, and utilitarian—that consumers apply to goods or service failures. Furthermore, the authors discuss implications for service recovery research and services marketing practice a...

E-Services: A Synthesis and Research Agenda

Abstract: Services marketing research increases in both intensity and relevance as services contribute an increasing share of the world’s economy and as firms and their customers increasingly interact through electronic networks. E-services present sharp new challenges to both researchers and practitioners because the processes from beginning to end of the e-service value chain are markedly different than those for offline services and because the electronic environment offers increased flexibility throughout the value chain. This flexibility creates the requirement to impose some sort of structure on all of the possible service and channel design choices. E-service flexibility creates an opportunity, and the need, to think about the consumer early in the design process. Finally, flexibility makes it difficult, but critically important, to consider various scenarios suggesting future developments in e-services. Our goal is to provide an over-view of the past and some projections for the future in the new field of e-services.

What Is Sports Marketing

Abstract: A central point of differentiation between sports marketing and traditional goods/services marketing is how one views individual purchasers. Fans are certainly loyal to the team in terms of repeat purchases, but fan identification is a deeper psychological affiliation that is the basis for a fan determining his self-esteem and self-worth. It is found that because of the nature of the events and the distribution channels, sports, such as soccer, basketball, baseball, tennis, golf, and motor sports are global products needing little translation or an alteration of the marketing mix (product, place, promotion, pricing) to gain acceptance across cultures. Price-setting in most sports settings must consider various forms of price bundling. Season tickets are offered at a bundled price for the entire season and are de-bundled in the form of smaller ticket packages or individual tickets. Brands that seek to build levels of identification like the ones found in the wide world of sports can generate fans who are willing to proudly wear their brand names.

A typology of mass services: the role of service delivery and consumption purpose in classifying service experiences

Abstract: Purpose — The purpose of this paper is to provide services marketers with a deeper understanding of the elements that characterize mass services. The paper shows that many studies have been conducted within the context of professional and retail services, knowledge of mass service contexts is limited despite the growth of services within this context. Design/methodology/approach — This paper provides a conceptual overview of mass services and develops a typology for mass services based on an extensive review of the services literature. Specifically, the typology developed classifies mass services on the basis of service delivery and purpose. The typology forwarded, therefore, classifies mass services using a two-by-two framework with individual and collective mass services classified as either utilitarian or hedonic in nature. Findings — The typology found in this paper provides a practical insight into the characteristics of services falling into the classification of mass services. The value of the classification is that managers can better understand the unique aspects of mass services, thus, allowing for a better utilization of limited resources. Moreover, the paper provides insights into a service classification that has received limited research emphasis, yet, is attracting increasing industry attention. Originality/value — This paper provides academics and practitioners with a framework that has both tactical and strategic implications. These implications include enhancing the customer experience and thus customer retention, resource management, employee training and service management. Given that such a framework has not been forwarded in the literature, the typology presented in the current paper makes an original contribution to the literature.

A typology of mass services: the role of service delivery and consumption purpose in classifying service experiences

Abstract: Purpose — The purpose of this paper is to provide services marketers with a deeper understanding of the elements that characterize mass services. The paper shows that many studies have been conducted within the context of professional and retail services, knowledge of mass service contexts is limited despite the growth of services within this context. Design/methodology/approach — This paper provides a conceptual overview of mass services and develops a typology for mass services based on an extensive review of the services literature. Specifically, the typology developed classifies mass services on the basis of service delivery and purpose. The typology forwarded, therefore, classifies mass services using a two-by-two framework with individual and collective mass services classified as either utilitarian or hedonic in nature. Findings — The typology found in this paper provides a practical insight into the characteristics of services falling into the classification of mass services. The value of the classification is that managers can better understand the unique aspects of mass services, thus, allowing for a better utilization of limited resources. Moreover, the paper provides insights into a service classification that has received limited research emphasis, yet, is attracting increasing industry attention. Originality/value — This paper provides academics and practitioners with a framework that has both tactical and strategic implications. These implications include enhancing the customer experience and thus customer retention, resource management, employee training and service management. Given that such a framework has not been forwarded in the literature, the typology presented in the current paper makes an original contribution to the literature.

Measuring Customer Value and Satisfaction in Services Transactions: Scale Development, Validation, and Cross-Cultural Comparison

Abstract: Customer value and customer satisfaction are pivotal but at the same time elusive concepts in services marketing theory. This paper focuses on discussing the relationship between these two concepts. We propose operationalization by developing and testing scales, especially operational indicators, for important dimensions and drivers of the services-value construct. A multitrait-multimethod design is used to test the robustness of the operationalization. Furthermore, a cross-cultural data set is used to explore country influences using confirmatory factor analysis and structural equation models. Results indicate that the measurement construct is robust and useful in country-comparative studies.

Sensing the scent of service success

Abstract: Purpose – The intangible character of services makes it difficult for customers to evaluate a service offering before consumption. Scent offers a powerful means of making services tangible. Therefore, this paper aims to contribute to the understanding of how scents can be used for services marketing purposes.Design/methodology/approach – The paper presents an overview of studies, mainly from the area of retailing, indicating how scents can be used in services, and this is followed by a number of examples of such applications.Findings – The paper finds that, although there are examples of service providers utilising scents to tangibilise, enhance and differentiate services, this area has been relatively neglected in marketing literature.Practical implications – By adding the component of scent to their offerings, service providers have the opportunity to create a competitive advantage. When using scents in services marketing, managers should consider the aspects of presence, pleasantness, congruity and mem...

The Intangibility of Music in the Internet Age

Abstract: As music consumption increasingly moves to the Internet, music as a product becomes even more intangible and service‐like. This tends to create a number of marketing problems. Through a review of services marketing literature and illustrative observations of online music services, this paper explores the intangibility aspect of online music and assesses how online music providers deal with the intangibility of their offer. The paper concludes that providers of online music largely utilize services marketing strategies to manage the intangibility of their products, although difficult issues such as pricing and consumer valuation of tangibility remain to be solved.

Committed to Content Provider or Mobile Channel? Determinants of Continuous Mobile Multimedia Service Use

Abstract: The focus of the article is analysis of relationships between value perceptions, commitment and intentions to use mobile multimedia service (MMS) content. Attracting a committed wide audience end-user base that uses multimedia content frequently is essential for success of the services. Customers' preferences for both the content provider and for the channel used are included. This is necessary for exploring further how to increase continuous use and revenue per user in the mobile field. In the empirical case of mobile multimedia services in the real estate business, intentions to use the same service provider again were found to be directly influenced by commitment to use the same provider, and indirectly by emotional and social value perceptions of MMS content. The usefulness of the content had no effect on intentions to use the same provider. However, it influenced intentions to use the mobile channel as such. Implications for theory and marketers are discussed. INTRODUCTION In recent years, companies have started to extend their cross-media strategies by implementing SMS (short message service) and MMS (multimedia messaging service)[1] -based content in their service offerings (Feldmann 2005). The importance of the mobile channel in multi-channel strategies is expected to increase, as the customers require interactive service anytime, anywhere (Pagani 2004). The electronic channels add to the traditional media and enable customers to access content via several media or distribution channels (e.g. Internet, mobile channel, digital television, magazines, brick and mortar stores). Offering valuable content via mobile devices is expected to be increasingly important in gaining a competitive edge by strengthening relationships with the customers (Lin and Wang 2006). Creating profitable content requires long-term customer relationships and understanding of what influences the users. commitment to a mobile vendor and their repeat purchase intentions (Lin and Wang 2006). Since there is a finite number of users, customers should value the content so that they are willing to pay for it and optimally be kept long-term after the trial (Peffers and Tuunanen 2005). Lack of understanding of the needs and requirements of the wide end-user audience and of the ability to keep the trial users of new technology may easily result in market failure (Tuunanen 2003). In this vein, value perceptions have proven to be useful, since they are linked to purchase behaviour. Thus, companies should try to attract customers that are committed to the provider and prefer to use the mobile channel to access content services. Furthermore, they should also aim at providing content that these users perceive as valuable. The technology acceptance model (TAM) has become a cornerstone of IS research (Scornavacca, Barnes, and Huff 2006). However, previous TAM theories offer little insight as to how to promote commitment to content provider and what the wide audience perceives as valuable in the content offered with the help of the technology. Traditional TAM studies do not take into account the positive attitude towards a provider that is essential for attracting and keeping the wide audiences. New theories should be tested empirically in the mobile field, where previous research has long been dominated by descriptive and conceptual analysis (Scornavacca, Barnes, and Huff 2006). Thus, this study aims at adding to the mobile research field. It also fills a gap in the IS field by analyzing commitment to content provider and how value perceptions influence it. Theories that help to understand how to commit users to use one content provider's services in the long run are essential for keeping the wide audience end-users. Moreover, perceived value theories are helpful in examining why mobile content is used. Services marketing theories do not explicitly account for the influence of new technology or the channel used to access the service, which is increasingly important in new self-service contexts where users can choose between several distribution channels. …

Moving towards the Service-Dominant Logic – a Comment:

Abstract: The Service Dominant Logic has generated a great deal of debate in the marketing domain, in particular within services marketing. However, the logic is still in its infancy, thus there is a raft of...

Enhancing Singapore travel agencies' customer loyalty: an empirical investigation of customers' behavioural intentions and zones of tolerance

Abstract: The services marketing literature focuses on the measurement of service quality and its impact and consequences on businesses. Set in the context of the travel retail agency in Singapore, this study focuses on the relationship between service quality and favourable behavioural intentions. The findings revealed that improving service quality can increase favourable behavioural intentions. However, service improvements that exceed customers' minimum-service threshold and those that exceed customers' desired-service level were found to have mixed effect on behavioural intentions. Hence travel agencies must carefully determine the behavioural intentions they wish to foster amongst their various customers and develop service quality strategies in line with the findings of this study. Copyright © 2007 John Wiley & Sons, Ltd.

Marketing of Library and Information Services: A Strategic Perspective

Abstract: In today's knowledge economy, library and information services are viewed as saleable products. More importantly, libraries have started treating their users as ‘customers.’ The paper analyzes the ...

Changes in perceptions of quality of, and access to, services among clients of a fractional franchise network in Nepal.

Abstract: With declining levels of international donor funding for financing reproductive health programmes, developing country governments and international donors are looking towards private sector strategies to expand the supply of quality reproductive health services. One of the challenges of a health franchise is to improve the quality of services provided by independent private practitioners. Private providers are more likely to abide by the quality standards set by a franchiser if they see a financial benefit resulting from franchise participation. This study was conducted to measure whether (a) there were improvements in perceived quality of care and perceived access to health facilities once these facilities became part of a franchise and (b) improvements in perceived quality and perceived access were associated with increased client loyalty to franchised clinics. Franchisees were given basic reproductive health training for seven days and services marketing training for two days. Exit interviews were conducted with male and female clients at health facilities. A pre-test measurement was taken in April 2001, prior to the start of project activities. A post-test measurement was taken in February/March 2002, about 9 months after the pre-test. Multilevel regression analysis, which takes the hierarchical structure of the data into account, was used for the analysis. After taking provider-level variation into account and controlling for client characteristics, the analyses showed significant improvements in perceived quality of care and perceived access to services. Private provider participation in a franchise network helps improve client perceptions of quality of, and access to, services. Improvements in client perceptions of quality and access contribute to increased client loyalty to franchised clinics. Once increased client loyalty translates into higher client volumes, providers are likely to see the benefits of franchise participation. In turn, this should lead to increased provider willingness to remain part of the franchise and to abide by the standards of quality set by the franchiser.

Relationship marketing and services marketing: two convergent perspectives for value creation in the cultural sector. empirical evidence on performing arts consumers in spain

Abstract: Using the relationship paradigm as a theoretical framework, a management model for cultural services (relationship marketing of cultural organizations) is proposed, what is an unprecedented contribution in the marketing field. By combining two convergent perspectives —as relationship marketing and services marketing—, the model is structured on the basis of two large types of relationships in the management of a cultural organization: instrumental relationships and group relationships. The paper is an in-depth study of relationships regarding performing arts audience. A theoretical/empirical approach was applied, including face to face interviews to 1005 performing arts consumers and telephone interviews to a sample of 2005 individuals in Spain.

The influence of bank employees on bank customer relationship management

Abstract: Purpose: Despite extensive research in services marketing, much is still unknown to specific service providers on the influence of their employees on their services This paper attempts to address this limitation and investigates the influence of employees on the customer relationship management (CRM) of banks The primary objective of this paper is to investigate the influence of selected independent variables, namely attitude and knowledgeability , on the CRM of banks Design/Methodology/Approach: An empirical investigation was conducted with a structured questionnaire with items that related to banks' CRM in terms of attitude and knowledgeability The sample consisted of 290 banking clients in the Nelson Mandela Metropolitan area and the response rate was 9103% Findings: Significant positive relationships exist between both the knowledgeability , and attitude of bank employees and a bank's CRM These relationships imply that more extensive knowledgeability and more positive attitudes of bank employees lead to improved, maintained relationships between a bank and its clients Employees play an important role in banks’ client relationships Implications: Banks should focus on increasing their employees' knowledgeability and improving their attitude to ensure higher levels of CRM This paper provides strategies for banks and could create greater awareness among South African banks of the advantages of CRM, how their employees influence their CRM, and ways to adapt to these influences Originality/Value: No study has focused exclusively on CRM within banks in South Africa Prior research focused on customer service and service quality; both possible results of superior CRM However, this research differs, as it identifies the variables influencing CRM in banks in South Africa It is proposed that this paper will be beneficial for South African banks, as the recommendations may be used to ensure higher levels of CRM in banks

Examining leisure constraints for ski centre visitors: implications for services marketing.

Abstract: This study forms a determination research into the existence of constraint factors in the demand of ski centre services. After collecting 1,316 questionnaires from twelve ski centre destinations in Greece, the power efficiency of three important theoretical classifications (intrapersonal, interpersonal, and structural constraints) was explored through confirmatory factor analysis (CFA). Findings support two out of three theoretical constraint categories, namely, intrapersonal and structural constraints, while the validity of the final measurement tool was explored. Practical implications for services marketing are also discussed.

The differential value of information in industrial purchasing decisions: Applying an economics of information framework

Abstract: Purpose – This research integrates recent work on customer information acquisition in services marketing and economics of information research with literature on industrial buying behavior for the purpose of proposing and empirically testing a model that explores information acquisition in industrial purchasingDesign/methodology/approach – To test the proposed model, an online survey was prepared using WebSurveyor and an introductory e‐mail with a link to the survey was sent to a sample of members of a professional organization of industrial purchasing managersFindings – Results indicated a differential use of information sources across differing purchase situations When purchasing situations were perceived to be easy to evaluate, there was a significantly greater use of impersonal information sources In addition, we offer evidence that the use of both personal and impersonal information sources does, in fact, increase the perception of goal clarity with respect to the purchasing task among industrial

Services business markets: a further view of a new reality or a blurred landscape?

Abstract: Purpose – The purpose of this article is to review the emerging literature of services business markets (SBMs) from 1974 to 2007 and analyse main themes that indicate the development of the literature. It also aims to provide an introduction to the special issue on services business‐to‐business markets by examining the context.Design/methodology/approach – The literature of SBMs from 1974 through 2007 was searched in relevant databases. The articles were analysed using Glaser's grounded theory. The constant comparison method was used with in vivo coding to reveal themes in the literature. These themes were then analysed contextually.Findings – The literature revealed seven themes which followed a trajectory from implicit to explicit consideration of SBMs, as well as to multi‐ and cross‐disciplinary focus with integration of variables from consumer services marketing. The landscape for SBMs has become blurred due to deregulation, globalisation and information technology, particularly the internet and e‐com...

A case study using a patient satisfaction survey to improve the delivery and effectiveness of drug addiction treatment services: marketing implications and organizational impact.

Abstract: Drug abuse and addiction continues to negatively impact many lives in this country. The United States health care system has grappled with how to best serve this vulnerable population. Since the personal and societal costs of addiction are high, all recent iterations of the United States strategic health plans (such as Healthy People 2010) have prioritized this area for improvement. At the local level, health care providers who care for those with addictions are challenged with shrinking insurance coverage for services, a difficult patient population, lack of treatment options, growing ranks of indigent patients, as well as a plethora of additional management challenges. It is known that successful treatment is integrally linked with patient satisfaction with services. The most critical factors in successful addiction treatment (from a patient's perspective) are (1) their belief that the counselor cares about them and, (2) their belief that they can recover. This paper reports a case study in the use of a patient satisfaction survey as a quality management/service refinement tool within a methadone treatment setting. Results indicate that the use of the survey itself provides patients with a tangible cue supporting the presence of the critical success factors. Further, the use of a survey provides a baseline for future measurements and trending. The paper concludes with a discussion of the marketing and organizational implications of incorporating the patient satisfaction survey into the ongoing delivery program for addiction services.

Connected care in a fragmented world: lessons from rural health care

Abstract: This paper uses the phenomenon of very high satisfaction with remote rural health services in Scotland as a trigger for exploring what consumers want and like in health service utilisation — and why. It draws on the business literature in customer services marketing and economic sociology to illuminate why long-term associations between consumers and providers in health care are important and beneficial. In doing so, it highlights wider lessons about the experience of good health care to be learned from the satisfaction expressed by rural residents and suggests, as health services become increasingly fragmented, the relevance of maintaining a connected experience for patients.

Contemporary Issues in Services Marketing

Abstract: Recently, India has got recognition among the major economies of the world. It has been ranked the fourth economic power in the world after the USA, China and Japan. L.N.Mittal, Britain's richest man and chairman of Arcelor Mittal, the world's largest steel company said, "At present, no corporate or board meeting anywhere in the world is complete without India being discussed". Interestingly, there is a significant contribution of services in the economic growth story of India. There has been a fundamental shift in the India's commercial dealings with the outside world. India has emerged as the fastest growing nation in the global services trade with the jump of 34% in the exports of services in 2006. Ranked at the 12th position, the country's services exports totaled $73 billion while imports were $70 billion in 2006 according to World Trade Organisation - WTO report. Looking at the contribution of services in most of the economies in the world, the time has come when marketers should make themselves familiarize with contemporary issues in the areas of services marketing for the better economical growth of their country and their own organizations.

Does the marketing curriculum reflect the importance of services marketing for practitioners

Abstract: Given the growth of the service sector and the increased importance of service marketing thinking for practitioners we are interested in learning how far this development is reflected within the marketing curriculum delivered within UK universities. Our qualitative research explores the subject with expert respondents who have an overview of the marketing curriculum within a number of UK universities. Of particular interest is our finding of great variation in the degree to which services marketing is considered sufficiently important to integrate within the core marketing curriculum. Equally worthy of note is the suggestion that the degree to which services marketing thinking is successfully integrated within core marketing curricula will vary greatly depending on who is responsible for curriculum design and delivery. Given the rising importance of service industries we suggest that our students, who will be the marketing practitioners of the future, will benefit from greater integration of services marketing theory within the core marketing curriculum.

On assessing measures of internal marketing in higher education: A services marketing perspective

Abstract: In India significant sums both from state governments and the University Grants Commission are spent on higher education. However, returns are not commensurate with investments. In this paper it is attempted to show that training and development, organizational communication and employee motivation are some key factors that need to be focused for improving organization performance as an internal marketing strategy. Drivers of high performance are identified within internal marketing perspective. This is done by gathering experiences of faculty members within internal marketing perspective. It was found that though faculty members were only moderately motivated, but they were not satisfied with regard to the state of training and development and internal communication, both of which were assessed as vital predictors of employee motivation. The paper comes out with a set of strategies and organization practices that can help improve faculty motivation.