Mobile ESPN

1
Case Discussion

• Mobile ESPN
• Describe the 7 Ps of the companys service mix.
  How does the fact that it is a technology-based
  service influence its 7 Ps?
• What gaps does reliance on technology help close?
  How?
• Describe the companys market. What other niche
  markets can you think if that would be interested
  in MVNO? (e.g. stock traders)
• Where on the tangibility continuum does the
  companys offering lie?

• Best Buy
• Describe the companys core business and the
  value-added services it recently introduced
• What was Best Buys initial competitive strategy
  against electronic retailers? How has it changed
  to compete with Wal-Mart and Costco entering
  electronics market?
• What is customer-centricity and what gaps does it
  help close?
• What trends in consumption of electronics has
  Best Buy capitalized on by developing its Geek
  Squad?
• What service quality gap does the difficulty with
  implementing customer-centricity en masse
  illustrate?

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Part 2
FOCUS ON THE CUSTOMER
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The Customer Gap
Expected service
Customer Gap
Perceived service
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Consumer Behavior in Services
Chapter
3

• Consumer Choice
• Search, Experience, and Credence Properties
• Consumer Experience
• Postexperience Evaluation
• Understanding Differences Among Consumers

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Figure 3.3Stages in Consumer Decision Making and
Evaluation of Services
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Some General Theories of Motivation

• Maslow hierarchy physical, safety,
  belongingness, ego, and self-actualization
• McClellands Theory of Learned Needs
• Achievement motivation is seeking to get ahead,
  to strive for success, and to take responsibility
  for solving problems.
• Need for affiliation motivates people to make
  friends, to become members of groups, and to
  associate with others.
• Need for power refers to the desire to obtain and
  exercise control over others.
• Need for uniqueness refers to desires to perceive
  ourselves as original and different.

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Motivation
Maslows Hierarchy of Needs
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Optimum Stimulation Level

• . . . is a persons preferred amount of
  physiological activation or arousal.
• Activation may vary from very low levels (e.g.
  sleep) to very high levels (e.g. severe panic).
• Individuals are motivated to maintain an optimum
  level of stimulation and will take action to
  correct the level when it becomes to high or too
  low.
• Accounts for high vs. low sensation seeking
  people.
• Accounts for variety seeking
• Accounts for hedonic consumptionI.e., the need
  of people to create fantasies, gain feelings
  through the senses, and obtain emotional arousal.

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The Desire to Maintain Behavioral Freedom

• Psychological reactance is the motivational state
  resulting from the response to threats to
  behavioral freedom.
• Two types of threats can lead to reactance
• Social threats involve external pressure from
  other people to induce a consumer to do something
• Impersonal threats are barriers that restrict the
  ability to buy a particular product or service
• Frequent in marketing e.g., pushy salesperson
• Scarcity effects scarce products are valued
  more. Limited time offer, limited supply.

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The Motivation to Avoid Risk

• Perceived risk is a consumers perception of the
  overall negativity of a course of action based
  upon as assessment of the possible negative
  outcomes and of the likelihood that these
  outcomes will occur.
• Perceived risk consists of two major concepts -
  the negative outcomes of a decision and the
  probability these outcomes will occur.

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7 Types of Consumer Risks.

• Financial
• Performance
• Physical
• Psychological
• Social
• Time
• Opportunity Loss

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Consumer Evaluation Processes for Services

• Search Qualities
• attributes a consumer can determine prior to
  purchase of a product
• Experience Qualities
• attributes a consumer can determine after
  purchase (or during consumption) of a product
• Credence Qualities
• characteristics that may be impossible to
  evaluate even after purchase and consumption

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Figure 3.2Continuum of Evaluation for Different
Types of Products
Clothing Jewelry Furniture Houses Automobiles Rest
aurant meals Vacations Haircuts Child
care Television repair Legal services Root
canals Auto repair Medical diagnosis
Most Services
Most Goods
Easy to evaluate
Difficult to evaluate
High in search qualities
High in experience qualities
High in credence qualities
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Issues to Consider in Examining the Consumers
Service Experience

• Services as processes
• Service provision as drama
• Service roles and scripts
• The compatibility of service customers
• Customer coproduction
• Emotion and mood

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Cultural Influences on Buying Decisions
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Customer Expectations of Service
Chapter
4

• Meaning and Types of Service Expectations
• Factors that Influence Customer Expectations of
  Service
• Issues Involving Customer Service Expectations

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Figure 4.2Possible Levels of Customer
Expectations
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Figure 4.3Dual Customer Expectation Levels
Desired Service
Adequate Service
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Figure 4.4The Zone of Tolerance
Desired Service
Zone of Tolerance
Adequate Service
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Figure 4.5Zones of Tolerance for
DifferentService Dimensions
Desired Service
Level of Expectation
Desired Service
Zone of Tolerance
Adequate Service
Reliability
Tangibles
Source L. L. Berry, A. Parasuraman, and V. A.
Zeithaml, Ten Lessons for Improving Service
Quality, Marketing Science Institute, Report No.
93-104 (May 1993).
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Figure 4.6 Factors That Influence Desired
Service
Lasting Service Intensifiers
Desired Service
Personal Needs
Zone of Tolerance
Adequate Service
Example of company's influence on ideal
expectations example of service specifications
based on desired service
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Figure 4.7 Factors That Influence Adequate
Service
Temporary Service Intensifiers
Desired Service
Perceived Service Alternatives
Zone of Tolerance
Self-Perceived Service Role
Predicted Service
Adequate Service
Situational Factors
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Some Situational Elements

• Physical surroundings
• Social surroundings
• Time
• Task definition
• Antecedent states

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Figure 4.8Factors That Influence Desired and
Predicted Service
Explicit Service Promises
example of explicit service promise
example of implicit service promise
Implicit Service Promises
example of word-of-mouth
Word-of-Mouth
Desired Service
Zone of Tolerance
Past Experience
Predicted Service
Adequate Service
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Frequently Asked QuestionsAbout Customer
Expectations

• What does a service marketer do if customer
  expectations are unrealistic?
• Should a company try to delight the customer?
• How does a company exceed customer service
  expectations?
• Do customer service expectations continually
  escalate?
• How does a service company stay ahead of
  competition in meeting customer expectations?

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Group Exercise

• Discuss in groups and present to the class how
  various factors influence
• Desired (overall service philosophy, personal
  needs, derived nature of the service)
• Adequate (temporary intensifiers, available
  substitutes, self-perceived service role,
  situational factors)
• Predicted (explicit promises, implicit promises,
  word-of-mouth, past experience)
• types of expected service quality for
• A Paris Tour

• A spa visit