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Assignment 2

3133 words - 13 pages

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MKT5709 Service Marketing |
Assignment 2 |
Customer Satisfaction: A major challenge for marketing managers |
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Student Name: Jui-Kang Yu (Bill)
Student Number: 10133163
Lecture: Gleen Swift
Submit date: 09/10/2011
Abstract
Service sector is playing a leading position in the global market these days. It gradually becomes a core factor which needs to be considered while doing businesses. Customers also begin focusing more on service rather than the product itself when they go shopping. Most of the time, some businesses are more successful than others because they know that offering good quality of goods is no longer the issue which has to be taken into ...view middle of the document...

0 Conclusion 9
9.0 Reference list 11

1.0 Introduction
Nowadays, services are becoming more important than products. Customers are getting more sophisticated and demanding. People start shopping around and trying to find the best price for the products or services they intend to purchase. Companies are all striving to make their products and services to be more competitive and differentiated than other competitors. This leads to the emergence of better quality of products and services. Knowles, Diamantis, & EL-Mourhabi (2004) state that one of the major challenges encountering hospitality industry is the issue of service. They think competitive pressures will force companies to create products or services with greater quality in order to be unmatchable. Moreover, they argue that customers are growing into open-minded and willing to experience new things. In this situation, marketing managers need to be aware of the importance of service and find ways to cope with the changing environment and customer behavior. In this report all of the resources will be secondary data which collected from books and journal articles. This article will mainly talk about different aspects of service, such as the feature of service, service characteristics, service blueprinting, consumer decision process, consumer behaviors, and service recovery. All of these topics will be discussed below. The purpose of this article is to help marketing managers to create higher customer satisfaction by using service tools or models.

2.0 Service overview
Being a good marketing manager, it is essential to have a clear understanding about the meaning of service and service marketing. Rao (2004) defines service as an object transaction provided by an organisation that offers services so as to generate satisfaction. He also mentions that services are intangible and it is aim to satisfy consumer needs. Lovelock, Patterson, & Wirtz (2011) explain that service marketing which purpose is to sell service-based products or to differentiate products according to service component of products. Even though managers already know the definition of service and service marketing, they also need to be aware of the reasons which trigger the growth of service sectors. Srinivasan (2004) says that consumers have higher expectations for service quality, the increasing competitions between companies, the advancement of technology, and globalisation are few of the major factors which result in the development of service sectors. In hospitality industry, service sector plays a critical role and one of the main reasons that offering good quality of service is more difficult than producing good quality of products is because service is intangible. Fisk, Grove, & John (2008) claim the main difference between services and physical products is that services cannot be stored, not like products. Moreover, customers are unlikely to get ownership from services. They think customers can purchase...

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