The theoretical framework your group uses to analyze

The components of the services marketing mix (the 7Ps) (chapter 1)

1) Product elements: All components of the service performance that create value
for customers.
2) Place and time: When, where, and how to deliver services to customers.
3) Price and other user outlays: All the outlays incurred by customers in obtaining
benefits from the service product costs of service, including money, time
expenditures, physical and mental effort, and exposure to negative sensory
experiences.
4) Promotion and education: All communications activities and incentives
designed to inform and educate customers, build preference for a particular service,
and encourage them to take action.
5) Process: Design of the method and sequence of actions in service creation and
delivery. In addition to process management, productivity helps to reduce costs and
quality is essential for differentiation and building customer satisfaction and
loyalty.
6) Physical environment: The appearance of buildings, equipment, interiors,
personnel, and other clues that provide evidence of service quality.
7) People: Interactions with employees involved in service production and with
other customers encountered during service delivery.
Analysis Post-Encounter Stage: (chapter 2)
_Customer Satisfaction:
The Expectancy-Disconfirmation Model of Satisfaction (in slide)
 Positive disconfirmation Performance is better than expected
 Negative disconfirmation Performance perceptions are worse than expected
_ Service Quality:
• Customer Satisfaction versus Service Quality
Both customer satisfaction and service quality are determined by comparing
customers’ expectations with their performance perceptions
• Dimensions of Service Quality By Valarie A. Zeithaml, Leonard Berry, and A.
Parasuraman (1988) have identified dimensions used by consumers in evaluating
service:
1. Tangibles (appearance of physical elements)
2. Reliability (dependable and accurate performance)
3. Responsiveness (promptness and helpfulness)
4. Assurance (credibility, security, competence, and courtesy)
5. Empathy (easy access, good communications, and customer understanding)
• Customer Satisfaction versus Service Quality
• Dimensions of Service Quality
• Measuring Service Quality
To measure service quality, Valarie A. Zeithaml and hercolleagues developed a
survey instrument called SERVQUAL (1988)
[Table 2.4 The SERVQUAL scale., P.57]
_ Customer Loyalty:
Loyalty is a customer’s willingness to continue patronizing a firm over the long
term, preferably on an exclusive basis, and recommend the firm’s products to
friends and associates
How to build customer loyalty?
Delivering great service experiences that satisfy customers and build their service
quality perceptions is the first and probably the most important step toward
building a loyal customer base!
The flower of service: (chapter 4)
_What the customer is fundamentally buying
_Supplementary Services
1. Facilitating Supplementary Services
 Information
 Order-taking
  Billing
 Payment
2. Enhancing Supplementary Services
 Consultation
 Hospitality
 Safekeeping
 Exceptions
_Delivery processes:
 How the different service components are delivered to the customer?
 The nature of the customers’ role in those processes
 How long delivery lasts
 The prescribed level and style of service to be offered.