Upload
nguyenphuc
View
230
Download
1
Embed Size (px)
Citation preview
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 1
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:
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 2
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.
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 3
Exhibit 1-1
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 4
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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 5
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:
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 6
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)
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 7
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)
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 8
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)
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 9
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.
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 10
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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 11
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).
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 12
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.
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 13
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).
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 14
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.
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 15
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.
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 16
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.
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 17
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.
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 18
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.
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 19
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_______________________________________________
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 20
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.
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 21
_____________________________________________________________
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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 22
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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 23
- 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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 24
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?
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 25
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?
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 26
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.
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 27
_____________________________________________________________
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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 28
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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 29
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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 30
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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 31
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)
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 32
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)
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 33
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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 34
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.
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 35
_____________________________________________________________
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.
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 36
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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 37
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.
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 38
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
Lovelock and Wirtz, Chapter 2
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
Lovelock and Wirtz, Chapter 3
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 39
4. Key Element II: Designing the Communications Mix for Services
Key Issues
Communication Strategies for Services
Branding and Communications
Required Readings
Lovelock and Wirtz, Chapter 6
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
Lovelock and Wirtz, Chapter 5
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
Lovelock and Wirtz, Chapter 4
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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 40
Balancing Demand and Capacity
Minimizing Perceptions of Waiting Time
Required Readings
Lovelock and Wirtz, Chapter 8
7. Service Delivery II: Designing the Service Environment
Key Issues
The Servicescape Model
Dimensions of Service Environments
Engineering Customer Service Experiences
Required Readings
Lovelock and Wirtz, Chapter 10
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
Lovelock and Wirtz, Chapter 11
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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 41
Customer Churn Diagnostics and Retention
CRM Strategies
Required Readings
Lovelock and Wirtz, Chapter 12
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
Lovelock and Wirtz, Chapter 13
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
Lovelock and Wirtz, Chapter 14
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
Full file at https://fratstock.euIM for Lovelock & Wirtz, Services Marketing 6/E Course Design and Teaching Hints - Section 1 1 - 42
Service Leadership, Culture, and Climate
Required Readings
Lovelock and Wirtz, Chapter 15
E. Main Text
Christopher H. Lovelock and Jochen Wirtz (2007), Services Marketing, 6th ed., Upper
Saddle River, New Jersey: Prentice Hall.