INDEX
4Ps (product, place, price and promotion) model 279, 280
absence of communication 314, 314, 315–16
acceptable quality 128
accountability 435
acquisition costs 161–2
active relational mode 27–8, 28
acts 108
adaptability 56
additional value 173–4
administrative recovery 147
administrative service recovery 147
administrative strategy 147
advocacy bonds 316
after-sales services 464
asymmetric quality function 135, 136
attitude management 413–15
attribute-based measurement instruments 101, 102–4, 103
augmented service offering 205, 206, 207, 209–13, 209, 215, 388
case study 216–20
on Internet 226–8
auxiliary services 206
barriers to implemented service management 508–9
base profit 162
basic package 215
basic service package 207–8, 224
blueprinting model 393–5
BMW 54
bonds 26, 111–14, 115, 178, 272, 295
brand contacts 339–41, 340, 341
brand formation process 345
brand identity 339
brand involvement 343
brand knowledge 342
brand messages 339
brand promise 343
brand–relationship–value triangle 345, 346
brand relationships 339–41, 340, 342
brand value 342–3
budgets for customer management and customer-focused performance 501
business effectiveness 475
business mission 80–1, 81, 390, 451, 477
buyer–seller interactions 95, 138
capacity efficiency 247, 248, 249, 249, 254, 256
classification of services 51–2
closed process 57
closed systems 237–8
coaching 453
cognitive dissonance 29
communication 26, 60–1, 359, 426–7
communication circle 311, 317, 317–18, 324, 361–2, 362
marketing communication and 318–19
communications management 213, 413–14
company image 96
comparison standard 111
competition-driven perspective 24
competitive advantage 55–6, 97–8, 467–8
conceptualizing, systematizing, servicizing (CSS) model 480–2
confidence type of relational benefit 28, 29
confirmed quality 128
connectedness
brands and 342
relationship communication and 328, 329
constant-quality assumption 237, 240, 244, 255
consumption of services 52–4, 54
consumption style model 400, 400–1
consumption (usage) process 273–4, 275, 287, 292
detachment phase 387, 388, 388
service package and 387–8, 388
contact, relationship communication and 328
continuously rendered services 51, 52
contracts, trust and 30
co-production of customers 138, 288
core product perspective 19–20, 22
cost-effective changes 236
cost efficiency see internal efficiency
cost-generating functions 72, 73
cost savings 162
costs
acquisition 161–2
direct relationship 164–5, 166, 169, 174, 175, 176
of failures and mistakes 144
gross direct 164
indirect relationship 164, 165, 166, 170, 174, 176
management of 243–4
net direct 164
production 169
profitability and 4
relationship 164, 166, 167, 168, 168, 171, 172–3, 179, 256, 478
of service recovery 149
critical episodes 179
critical incident method 93, 105–6
critical service encounters 179
crowdsourcing 364
culture, importance in service organizations 447
customer base, management of 295–6
customer benefit concept 207, 209, 214–15
of service strategy 80
customer commitments 178
customer contact, direct 3, 11
customer contact development office 380
customer contact employees 390, 391
empowerment of 145
enabling 145
customer delight 128
customer-driven perspective 23–4
customer equity, definition 186
customer equity management 186–7
customer expectations 384, 386, 390, 496
managing 99–100
customer experiences 496
customer focus 498–500
customer-focused activities, diffusion of 498
customer-focused management 31
customer-focused strategy 494, 495
customer-induced contribution 241, 242
customer information files 3, 11
customer lifecycle 471
customer loyalty 23
customer satisfaction and 160–1, 160
customer management 500–1
marketing and 501–2
customer-oriented service system, creating 3, 12
customer-oriented services 12
customer participation 211, 225–6, 388
customer past experience 98, 130
customer perceived quality 248
customer perceived service quality 72, 76, 78
customer perceived value (CPV) 171–3, 177
customer profitability, analysing 188
customer profitability analysis phase 189–93, 190
customer relationship lifecycle 267, 272–4, 273
customer relationship lifecycle model 280, 287, 291
customer relationship perspective 23
customer relationship profitability 177–80, 178
customer relationships 2–3
service impact in 82–4
customer sacrifice 111, 163–4, 166
customer satisfaction 111
customer loyalty and 160–1, 160
vs perceived service quality 106
customer satisfaction measurement models 94
customer segments 387
customer-to-customer communication 60–1
customers
definition 27
informing 145–6
value-creating processes 2, 3, 384, 385
value-formation process 474–5, 474
decision-making authority 86, 87–8
defensive recovery 147
defensive service recovery 147
defensive strategy 147
depth of social media information 360
dialogical mode 326
dialogue, definition 326
direct relationship costs 164–5, 166, 169, 174, 175, 176
disconfirmation construct 94
discretely rendered services 51, 52
distinct communication process 327, 328, 341
distributive fairness 142
dynamics of expectations 116–19, 116, 118
economic quality 97
emotions, customer 101
employee brand identification 344
employee branding 344
employee role ambiguity 496
employee role conflicts 496
employees 12
communication and 321–2, 322, 323
empowerment of 87, 149, 409, 432–5, 497
knowledge 59
see also customer contact employees
empowerment
of consumers 358
of customer contact employees 145
of employees 87, 149, 409, 432–5, 497
enabling employees 87, 149, 409, 432–4
of customer contacts 145
knowledge support 433
management support 433
technical support 433
enabling goods 208
enabling services 208
engagement behaviours, social media 363–4
episode benefit 172
episode configuration 179
episode-level quality 111
episode performance 111
episode sacrifice 172
episodes 108–9
exchange perspective 23
existing customers, communication and 321–2, 322, 323
expected quality 98
expected service 130
experience-related value 475
experienced quality 98
experientializing 60–1, 359, 361
explicit expectations 116, 117, 118
extended servicescape 398–9, 398
external customers 380
external effectiveness 71, 72, 76
external efficiency see perceived service quality
external marketing 268, 287, 417, 418, 496
facilitating goods 208
facilitating services 208, 225
Fairchild Fasteners 386
fairness, perceived 142
firm
as a service business 3
as value-generating operation 10
flexibility 55–6
full-time marketers 382, 383, 384, 496
function dimension of quality 95, 98
functional quality 96, 97, 135, 138, 171, 172, 205, 223, 248
functional value 182
functionalistic management perspective 10
fuzzy expectations 116, 117, 118
gap analysis approach 127, 129–31, 130
generalized trust 30
good perceived service quality 93
‘good service’, definition 159
goods marketing triangle 56–8, 57
Goods Profit Logic 70, 70, 71, 73
governing system 59
gross direct costs 164
gross margin 169
half-life of social media information 360
Handelsbanken 289
HG Hardware 430
hidden services 21, 48, 71, 82–3, 174, 223, 448, 466
high-tech services 51–2
high-touch services 51–2
hit-and-run delight 129
human resource management (HRM) 413, 422–3, 423, 427, 429, 451
hygiene factors 136
communicated expectations 348
developing 349–50
as filter 348–9
as function of expectations and experience 348, 349
importance of 348–9
internal and external impact 348, 349
as reality 349–50
service provider 496
image factor 98
image impact 321
image management 207, 213, 312, 347–8
implicit expectations 116, 117–18
implied-in-fact promises 117
incremental value assessment 183, 185
independent value creation 14–15
indirect control by culture 447
indirect relationship costs 164, 165, 166, 170, 174, 176
information exchange through social media 359
information support 426–7
information technology, role in service offerings 213–14
innovation 364
inseparability characteristic 50
inside-out label 501
inside-out management approach 6, 7, 7, 20, 482–3
intangibility 50–1
integrated marketing communication 312–15, 314, 315
relationship marketing and 328
intentional dynamics 118
interaction-induced contribution 241, 242
interaction process 327, 328, 341
interactional fairness 142
interactive marketing 52, 59, 267, 272, 292, 294–5, 317, 410, 436, 497–8
vs traditional external marketing 289–90
interactive marketing function 287–8
interactive marketing model 17
interactive marketing process 287, 383, 384
internal customers 381–2, 381, 393, 419, 452
internal dialogue 417, 421, 428
internal efficiency 70–2, 75, 76, 77–8, 141, 240–1, 242, 244, 245, 245, 246, 247, 248, 249, 249, 253, 255
internal marketing 12, 60, 215, 268, 296, 450, 454
activities 428–9
commitment to 501
concept 412–13
continuous process 436
definition 409
enabling promises 496–6
external focus 436
goals 417
implementation 436
internal focus 436
as knowledge renewal 431
objectives 415–16
relationship-mediated approach 431–2
strategic 419, 420–5, 421, 423, 425, 426
as strategic issue 411–12
three levels of 416–18
internal marketing relationship-mediated approach 431–2
internal service 393
internal service functions 381–2, 381
internal service recovery 428–9
Internet 24, 213–14, 224, 225, 226–8, 252
marketing and 290–1
Interrent-Europcar 216–20
intranets 452
JIT logistics 24
joint productivity gain calculation 183, 185
justice 142
just-in-time approach 24, 164–5
knowledge, employee 59
knowledge-related bonds 111, 115
leadership 420–2, 421, 428, 453–4
learning relationships 253–4, 254, 327
Levi Strauss 54
lifecycle approach 50
lifetime value of customer relationship 187
Liljander–Strandvik model of relationship quality 111–14, 112–14, 115
line of visibility 382, 390, 392–3
linear quality function 135, 135
local image 96
long-range process 450
long-term productivity 250
long-term relationships 85
long-term sacrifice 166
lurkers on social media 366
main service 206
main service sequence 147
Major Office Machine Ltd (MOM) 188–95, 190, 194
management perception gap 131
management support 392, 420–2, 421, 428, 497, 506–7
mandatory costs 244
manufacturers, challenge for 463–4
manufacturing, strategy lessons 69–71, 70, 73
manufacturing-oriented productivity concept
pitfalls using model 244–6, 245, 246
market communication gap 133–4
market orientation, organizing for 378–9, 378
market-oriented management 84, 296–7
market-oriented view 268
market performance 432
market share 295–6
marketing 24
as passion or cost 283
place in the organization 382–4
relationship definition of 284–7, 286
as set of tools, techniques and activities 269, 270
social media 362–4
viral 366
marketing attitude of mind 270, 297, 383, 384
marketing communication 98, 130, 134–5, 138–9, 207, 213, 311–12
communication circle and 318–19
guidelines 323–6
capitalize on word of mouth 323, 324
communicate intangibility 323, 324
communication continuity 323, 324–5
communication effects of absence of communication 324, 325
customers create messages for themselves 324, 325–6
customers integrate communication messages with experience 324, 325
direct communication efforts to employees 323, 324
integrate marketing communication efforts and messages 324, 325
long-term effects of communication 324, 325
make the service understood 323, 324
promise what is possible 324, 325
provide tangible clues 323, 324
marketing communication impact
marketing concept 268, 270, 281
marketing definition 269–71, 278
marketing mix approach 279–80
relationship approach 281–2
marketing department 373–6, 375
as organizational trap 376–7, 376
marketing functions and processes 287–9, 288
marketing impact 321
marketing management 296–7
marketing mix approach 279–80, 294
marketing objectives 271–2, 271
marketing process, marketing department and 373–6, 375
marketing strategy continuum 267, 292–3, 293
consequences 294–6
customer information system 295–6
dominating marketing focus 294–5
dominating quality dimension 295
interdepartmental collaboration 296
measurement of customer satisfaction 295–6
price elasticity 295
role of internal marketing 296
time perspective 294
unit of analysis 294
mass communication 426–7, 428, 429
mass customization 54
mass marketing function 287
Mattel 54
middle management 419
missing service product 205–6
mistakes, learning from 146
moments of opportunity 100, 276, 317
moments of truth 100–1, 138, 276, 287, 317, 390, 494
monetary value 475
mood, customer 101
motivation of employees 435
multi-use feature 175
mutual value creation 180, 181
narrower competence gap 253
net direct costs 164
net present value (NPV) 166, 175, 176–7, 184–5, 187
net price 169
net profit 169
network organizations 374
new services 82
Nike Town Chicago (NTC) 397–8
Normet Group 484–6
offence strategy 147
offensive service recovery 147
offering as a process 477–8
offering features 174–7, 175, 176
open innovation 364
open process 53
open systems 238
Oreo 359
organization size 379
organizational pyramids 378–9, 378
organizational structure 86, 88
organizational structure support 505–6
outcome consumption 52–4, 54, 70, 268
outcome dimension of quality 95
outside-in management approach 5–8, 6, 7, 20, 482–3
outsourcing 482–3
ownership 51
Palace, The 226–8
part-time marketers 59, 267, 284, 287, 362, 374–5, 383, 384, 419, 436, 496, 497, 498
part-time marketing resources 289, 383
partial productivity 256
participation, dialogue and 326
participation skills 252
passive relational mode 27–8, 28
patronage concentration 179
perceived fairness 142
perceived quality 253–4
in relationship framework 109–11, 110
perceived sacrifice 178
perceived service 130
perceived service quality 72, 93, 94, 98–9, 99, 242, 245, 246, 249, 249, 255, 399, 494
vs customer satisfaction 106
problems with measurements and comparisons 104–5
perceived service quality gap 134
personal knowledge of employees 432
personality-based trust 30
personality factors, trust and 30
physical interactions 399
physical resources in service production process 400–1
planned communication 318–19, 320, 328–9
planned messages 313, 314, 314, 315
planning systems, motivating 424–5, 426, 429
potential customers, communication and 321–2, 322, 323
practice efficiency 182
practice matching 180–2, 183, 184–5, 186, 474, 475
premium price 163
price
elasticity 295
net 169
premium 163
service quality and 107
procedural fairness 142
process-based trust 30
process consumption 52–4, 54, 75, 77, 268, 338
process effectiveness 474, 475
process management perspective 3, 9–10, 10
process-oriented marketing 284
process quality 96
process-related dimension of quality 95
process value productivity 258
‘product’ as a process 477–8
product-based value 85
product business focus 6–7
product-focused management, commercial analysis 4–5
product marketing triangle 57, 57–8
product messages 313, 314, 314, 328
production costs 169
production-oriented view 268
productivity
balancing revenues and costs 236–7
managing profits, not costs 235–6
productivity management 498
profit effectiveness 243
see also Goods Profit Logic; Service Profit Logic
promise concept 283–4, 362, 496–8
provider-induced contribution 241, 242
provider participation 241, 242, 242, 243
psychological costs 164, 165–6, 170
purchasing behaviour 318
purchasing process 272–3, 274–5, 292
qualitative measurement instruments 101, 102
quality
customer perception of 94–5
optimal 128–9
quality-enhancing factors 136
quality function, shape of 135–7, 135, 137
quality gaps 131–4
quality improvement, failure in 128
quality monitoring 138
quality specification gap 131–2
reciprocal return on relationship (RORR) 180–6, 181, 182
recovery, speed of 145
recovery needs, identification 145
referrals 162–3
regulations, trust and 30
relational benefits 28–9
relational intent 27
relational marketing process model 285–7, 286
relational mode 27–8
relationship benefits 172
relationship communication 328–30, 329, 330
relationship costs 80, 164, 166, 167, 168, 168, 171, 172–3, 179, 256, 478
relationship definition of marketing 281–2
relationship dialogue 311, 326–7
relationship framework 108–9, 109, 146–7, 148
perceived quality in 109–11, 110
relationship marketing 23, 27, 28, 30, 271
integrated marketing communication and 328
relationship-oriented service processes 498
relationship performance 114
relationship perspectives 26–7
relationship framework for 108–9, 109
relationship sacrifice 114, 172
relationship satisfaction 114
relationship strategy
strategic requirements 3, 8–11
relationship strategy phase 189, 193–5, 194
relationship strength 178–9
relationship value 114
definition 24–7
negative consequences 282–3
resistance to change 450
resource development 60
retention equity 187
return on relationship (ROR) 180
reciprocal (RORR) 180–6, 181, 182
revenue benefits 174, 175, 176
revenue effectiveness 240, 241–2, 246, 247, 254
revenue-generating capability 4, 236
revenue-generating function 72, 78
revenue growth 162
revenue streams 179
reward systems 86, 88, 423, 429
Ritz Carlton Hotel, Phoenix, Arizona 144
Sabel Wilderness hotel 100
sacrifice, customer 111, 163–4, 166
SAS (Scandinavian Airlines System) 27, 243
scale economies 70
SCB Bank 379–80
self-service elements 252, 255
service blueprinting 393–5
service brand relationships, creating 343–7, 344, 346–7
service branding process 344–5, 344
transforming into 468, 469–72, 471, 476–82, 479–80
service business approach, need for 472–3, 473
benefit for manufacturing firm 475–6
cost of transformation into service business 483
service business focus 6
service business knowledge base 472–3, 473
service business logic 7
service competition 9, 20, 23–4, 498–502, 499–500
management guidelines 502–8
seven rules of service 502–7
demand analysis 503
general approach 502–3
management support 506–7
marketing 504–5
organizational support 505–6
quality control 503–4
technology 505
service competition logic 23–4
service concepts 80–2, 207, 209, 212, 215, 224, 390, 451, 506
service consumption process 399–401, 400
barriers and opportunities 455–6
definition 448
maintaining 417–18
managing relationships and 447–8
prerequisites for successful 418–19
service culture, requirements for 450–5
developing leadership 453–4
developing organizational structure 451–2
developing service strategy 450–1
service training programmes 454–5
service delivery gap 132–3
service design 221
service-dominant logic 14, 24, 43–5
service encounters 95, 138, 287
service failure 140–2
service features, quality of 94
service-focused management, commercial analysis 4–5
service knowledge 424
service logic 14, 15, 24, 25, 43–7
service management 9, 12, 13, 20, 50, 84–5
shifts in focus 85–8
service marketing triangle 58–60, 58
service messages 313, 314, 314, 315, 328
service offering 206
developing in marketspace 224
dynamic model 214–20
managing 207
service orientation 449
service-oriented leadership 453
service-oriented organizational structure 378
service-oriented strategy 78–80, 79
service perspective 2–3, 22, 447
adoption of 183, 184, 186, 465–6
service process 215, 245–6, 248
service productivity 258
as a learning relationship 253–4, 254
managing 255
revenue/cost ratio for measuring 258–9, 260
service productivity concept, applying 250–3
attitudes and employee behaviour 251
employee/customer co-production 251–2
improving employees’ technical skills 250–1
increasing customer cooperation 252–3
industrializing the service operation 252
internal values supportive to good service productivity 251
using Internet, digital solutions and IT 252
reducing mismatch between supply and demand 253
service productivity dilemma 239
service productivity measurement instruments 257–9, 257, 259, 260
service productivity model 246–9, 247, 249
Service Profit Logic 71–4, 72, 73, 86, 87, 493, 494
service quality 88
cost of improving 158
customer willingness to pay for 157–8
investment in 127–8
lack of, cost of 159
lessons 137–9
measuring 101–2
research 93–4
social media 363
service quality management programme 139–40
customer expectations management programme 139
customer participation management programme 140
information technology management programme 140
internal marketing programme 140
physical environment and physical resources management programme 140
service concept development 139
service outcome management programme 140
service recovery 141
vs complaints handling 141–2
definition 141
guidelines 142–4
perceived fairness and 142
timing of recovery processes 146–7, 148
service sequence 147
service strategy, service culture and 448–9, 449
service strategy approach 465–6
service style 400
service style/consumption style model 400, 400–1
service system in a network of systems 401
service system model 373, 388–90, 389, 393–5, 401
interactive part 390–1
customers 390–1
physical resources and equipment 390, 391
support part 392
service vision 451
services
common characteristics 49–51
definition 47–9
good, requirements for 450
as processes 50
servicescape 97, 140, 223, 276, 391, 396–8, 397
servicizing 223, 478–80, 479–80
SERVPERF 105
servuction model 17
Shangri-La Hotel, Bangkok 129
shared values 449–50
short-term sacrifice 166
social benefits of customer–provider relationship 28, 29
social interactions 399
background 357–9
branding 338
communication circle 361–2, 362
community participation 360–1, 361
customer-to-customer communication 60–1
Finnair case study 366–7
marketing of services 362–4
types 359–60
social norms, trust and 30
social value co-creation 15
solicitation of complaints 144–5
special treatmentsas customer benefit 29
special treatments as relational benefit 28
Stobachoff curve 189, 190, 190, 192
strategic internal marketing 419, 420–5, 421, 423, 425, 426
strategic management trap 71, 74–6, 74, 77, 244
strategic requirements of relationship strategy 3, 8–11
style of consuming 400
style of performance 400
supervisors 419
supplementary services 206
supplier–customer–customer’s customer 466–7, 467
supplier support chains 471
support of systems and technology, promises and 496
supporting goods 208
supportive marketing communication 215
Svenska Handelsbanken 87–8, 318
system trust 30
systematization 55
systems knowledge 394
systems support 392, 393, 427, 429, 496
tactical elements of relationship strategy 3, 11–12
tactical internal marketing 419–20, 426–9
target groups 387
technical dimension of quality 95
technical quality 95, 96, 97–8, 100, 135, 138, 171, 172, 205, 223, 248
technical solution to customer process 464
technologies 59
technology-driven perspective 24
three-stage model of marketing 291–2, 291
time 12
customer’s 59
timing of service recovery 148, 149
top management 419
total communication concept 312
total communication impact 312
total communication management 319
total customer perceived quality 85
total long-term costs 166, 167
total perceived quality 97, 98, 99
total perceived service quality model 94
total revenue-generating support 173
total service offering 12, 174–7, 175, 176
total value 85
totally invisible part of organization 393
traditional external marketing process 287, 289–90, 383
traditional marketing function 287, 291–2, 496
training, employees 145, 423–4, 425, 426, 428
transaction marketing 23, 27, 271, 272, 281, 292
turning point 245–6
Twitter 60–1, 359, 360, 363, 366
Unilink Co. 386
unintentional dynamics 118
United Airlines 358
unplanned communication 319, 320
usage process see consumption (usage) process
user generated content (UGC) 358
user interface (UI) 224–5, 226
Valio 358–9
for customers 12–13, 16–17, 16, 168
of customers 187–95
for service providers 17–19, 18
value constellation model 13
value-creating processes 13, 384, 385
value-creating support 464, 465–6
value creation 12–19, 14, 16, 18, 180, 181
value destroyers 173–4
value equity 187
value formation process 384, 385, 474–5, 474
value-generating process 13–16, 14, 384
value-in-exchange 13, 85, 171, 473
value-in-use 13, 15, 85, 171, 472, 473, 482
value quantification 174–7, 175, 176
value sharing 183
value system, customer 384–5
viral marketing 366
virtual marketspace 224
virtual organizations 374
virtual worlds 359
win–win strategy 170
word-of-mouth communication 98, 213, 315, 316–18, 328, 361–2, 364, 366, 386, 496
WWOZ ratio 290–1
Yoogaia 364
YouTube 358