MK212 Marketing

Value promise

A promise made to customers about value-in-use, which they should be able to realise in their value-creating processes in the future. Value promise fits situations in which value as value-in-use is not delivered but created in co-creational and customer-independent value creation processes

Zone of tolerance

Acceptable range of variations in service delivery

Customer service

All activities performed by retailers and their personnel to attract, retain, and enhance a customer's shopping experience (Levy & Weitz, 2007)

Promise management

An approach to marketing, in which marketing is a process of making promises, keeping promises and enabling the making and keeping of promises

Satisfaction

An attitude-like judgment following a service purchase or series of service interactions

Services as experiences

Creating memorable events for customers

High-contact services

Customers visit service facility and remain throughout service delivery, active contact between customers and service personnel, includes most people-processing services

Potential value-in-use

The potential value for customers embedded in the resources offered by a service provider. It is realised as real value (i.e. as value-in-use) for the customer during usage. As a customer-centric concept, based on utility theory, potential value-in-use is used in SL

Co-creation

The process of creating something together in a process of direct interactions between two or more actors, where the actors' processes merge into one collaborative, dialogical process

A joint sphere

The service provider and customers interact directly, which enables the provider to engage with customers' value creation and co-create value with them

The service provider can actively and directly influence...

customers' perceptions of the firm and its service, as well as customers' willingness to continue buying from it

Omni retail channels

An integrated and seamless blending of the customer shopping experience with physical and online channels. This is similar to the concept of using multi-channel formats except that it is concentrated more on a seamless approach to the consumer experience through all available shopping channels e.g. mobile Internet devices, computers, bricks and mortar, television, catalogues etc

Loyalty programme

An integrated system of marketing actions that aims to make customers more loyal by developing personalized relationships with them (Waarden-Meyer, 2008: 89)

Big data

Any collection of data sets so large and complex that it becomes difficult to process using traditional data processing applications

Service Culture

Appreciation for good service, good service is given to internal as well as external customers, good service is a way of life

Individual Behaviours

Approach behaviour; desire to stay, explore, work, affiliate whereas avoidance behaviour is the opposite

Network theory

Argues strongly that the internationalisation process is based on and facilitated by social interaction and relationships that evolve and develop over time. While grounded initially in the context of manufacturing, it has also been applied to the retail sector

Dimensions of Store Image

Atmosphere, convenience, facilities, institutional, merchandise, promotion, sales personnel, service

Relationship Marketing (RM)

Attracting, maintaining and - in multi-service organisations - enhancing customer relationships (Berry, 1983, p. 25)

Five key service elements

Availability of service personnel. responsiveness to customers, personalisation, proactiveness, loyalty programs

Price-related drivers

Average price, dispersion of prices, price dynamics, price-related policies

Brand equity revolves around a number of key dimensions:

Awareness, loyalty, perceived quality, brand associations and other proprietary brand assets (Aaker, 1991)

Switching Barriers

Barriers that make it difficult to leave one service provider and begin a relationship with another

Competition Based Pricing Strategy

Based on prices charged by other firms in the same industry or market. Used when services are standard across service providers and in oligopolies, with few large service providers

Functional differentiation

A mode of distinguishing things or arrangements based on the purposes or activities to which they are devoted

GAP Model of Service Quality

A model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality

Value proposition

A one-sided, firm-oriented concept for effective value delivery, with the clear potential to strengthen marketing in a goods-providing firm that engages in limited customer interfaces, other than customers' indirect interactions with a physical product, which is a context characterised by value delivery

Subordinate service role

A performing role that give people a status below that of the customer e.g. waiters, bus drivers and hotel receptionists

Servicescape

A physical setting in which a marketplace exchange is performed, delivered, and consumed within a service organisation (Zeithaml et al., 2009)

Employee satisfaction

A pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences (Locke, 1976, p. 1,300), is believed to be achieved through various human resource management practices i.e. job design, employee rewards and recognition etc (Spector, 1997)

Guarantee

A pledge or assurance that a product offered by a firm will perform as promised and, if not, then some form of reparation will be undertaken by the firm

Customer loyalty

A primary determinant of organisational profitability and growth (Heskett et al., 42); a deep commitment to the service provider (Shankar et al., 2003, p. 154)

Service switching

A process resulting from a series of decisions and critical service encounters over time rather than one specific moment in time when a decision is made

Markdowns

A reduction in the price of an item to reflect the present market position, caused by difficulties in forecasting demand, damaged goods, poor pricing, need to avoid being perceived as regular and predictable discounts, better use of technology

The purchase funnel

A sequential consumer decision-making model encompassing awareness to loyalty. It may consist of awareness, interest, consideration, intent, evaluation, purchase

Overhead costs

A share of fixed costs

Trailer call

A short survey that follows ("trails") a service event of encounter. If offers quick feedback on employees and also allows a company to fix its processes in a timely fashion

Competitive intensity

A situation where industry competition is fierce due to the number of competitors in the market and the lack of potential opportunities for further market growth

(Attracting Status Seekers) Prestige pricing

A special form of demand- based pricing where service providers offer high-quality or status services. Higher price is charged for the luxury end of the business e.g. restaurants, health clubs

The free form layout

A store design, used primarily in small specialty stores or within the boutiques of large stores, that arranges fixtures and aisles asymmetrically; 'organised chaos'. Also called boutique layout

Services triangle

A strategic framework that visually reinforces the importance of people in the ability of firms to keep their promises and succeed in building customer relationships (Bitner, 1995; Kotler, 1994; Grönroos, 2007)

Content marketing

A strategic marketing approach focused on creating valuable, relevant and consistent content to attract and retain a clearly defined audience, and ultimately to drive profitable customer action. It is also labelled as real-time marketing and has the role of storytelling (building narratives)

Value

A subject's relativistic preference after his or her interactions with things or events (Babin et al., 1994). It represents another important element in managing long-term customer relationships (Pride and Ferrell, 2003)

Attention restoration theory

A theory proposing that particular environmental characteristics, often found in natural settings, can support recovery from attentional fatigue

Service blueprinting

A tool for simultaneously depicting the service process, the points of customer contact and the evidence of service from the customer's point of view; process > points of contact > evidence

The customer pyramid

A tool that enables the firm to utilise differences in customer profitability to manage for increased customer profitability, strengthen the link between service quality and profitability as well as determine the optimal allocation of scarce resources

Financial Bonds

A type of business practice which is to enhance customer loyalty through pricing incentive (Berry, 1995)

The grid layout

A type of store layout that is characterised by long rows of shelving with aisles between the rows

Social Media Influencer

A user on social media who has established credibility in a specific industry. They have access to a large audience and can persuade others by virtue of their authenticity and reach

Competitive

About as good as the competition

Activists

Above average propensity to complain on all levels; more likely to complain to a third party; feel most alienated from the marketplace compared to other groups; in extreme cases can become "terrorists"

Supporting

Acceptable or slightly less versus the competition

Benefits of Social Media Platforms for Shoppers

Access information about specific retailers, brands and special offers, contribute views and opinions about shopping experiences, learn from other like-minded shoppers, engage in comparison pricing and information on retailers and brands, develop a personalised relationship with fellow shoppers and the retailer, save time and benefit from the convenience of 'visiting' the retail store in a 'virtual' sense, get some preferential treatment from retailers by virtue of being a fan, feel more confident about making purchases, feel a sense of belonging and being part of a community

Voicers

Actively complain to the provider, but not likely to spread negative WOM; believe in the positive consequences of complaining - the service provider's best friends

Boundary-spanning behaviour (BSB) contends that service employees achieve excellence through three key areas:

Actual service delivery (akin to key elements of service quality provision), external representation (being outstanding advocates of the company to external constituents) and internal influence (being an internal champion for developing service excellence across the company).

Cost-plus pricing

Adding a standard mark-up to the cost of the product, ignores market realities

(CBBE) Salience

Addresses aspects of the brand that are noticeable and recognisable to the consumer. This does not necessarily mean all elements of the brand, but aspect which mean that the consumer includes the brand in the 'consideration set' when evaluating brand alternatives in the early stages of the purchasing process

Six dimensions of shopping behaviour

Adventure, social shopping, gratification, idea shopping, role and value (Arnold and Reynolds, 2003)

Dimensions of Shopping Behaviour

Adventure, social shopping, gratification, idea shopping, role, value

Hi-Lo

Advocates the use of sales periods to stimulate store traffic and turnover, tend to attract shoppers with a higher willingness to pay, lack of conditioning to lower prices as in EDLP, fluctuating high and low prices

Social interactions

Affected by the physical container in which the service occurs. Can affect the nature of the social interaction in terms of the duration and the actual progression of events and limit the duration of the service

Low level of participation

All that is required is the customer's physical presence with the employees of the firm doing all the service production work e.g. orchestral concert

Wholesaling

All the activities involved in selling goods and services to those buying for resale or business use

Organic growth (or growing internally)

Allows the company to have very high levels of control over its operations. The costs of pursuing this approach are also high and the degree of risk is also relatively high compared with other entry mode options

Sponsorship

Allows the retailer to align/invest its brand values with a similar entity or brand. Needs to activate and leverage the sponsorship

Positive greens (18%)

Already act environmentally, looking to engage further

Stalled starters (10%)

Ambivalent or anti-environmental views, not taking action

Customer databases

An area of tracking customer reactions to different service and promotional offerings

Risk

An attribute of an alternative decision reflecting the variance of its possible outcomes (Gefen et al., 2002)

Achievement-striving motivation

An employee's perception of his/her desired intention to engage in planned actions to achieve beneficial, work-related tasks

Service inclination

An employees' interest in doing service-related work, which is reflected in their attitudes towards service and orientation toward serving customers and others on the job

Radio Frequency Identification

An extension of the bar code concept; 'intelligent' bar codes that can ' talk' to a networked system and track a particular item, pallet or case as it moves from point of manufacture to the time it ends up in the shopper's basket

Biophilia hypothesis

An innate bond exists between humans and other living systems, including nature and wildlife (Wilson, 1984)

Special treatment benefits

Customers receiving a special deal or price, or getting preferential treatment

Lead customers

Customers that cost the company money. The company must minimise this customer segment, either by trying to upgrade customers or by disassociating from them. However, if customers will be more profitable in the future, the company should serve them well

Post-sales touchpoint

Dealing with complaints, returns and warranty issues, speed of response to customer complaints and concerns, managing the complaints process, speed of response to replacing items

Interactive quality

Derives from the interaction between contact personnel and customers as well as between some customers and other customers

Hedonic values

Derives more from fun and enjoyment than from task completion and are non-instrumental, experiential, and affective (Chaudhuri and Holbrook, 2001) e.g. entertainment, exploration, and self-expression (Ailawadi et al., 2001; Chandon et al., 2000),

Marketing Science

Describes how IT has altered the very nature of the firm's connection to the customer

Subjectivity

Describing a service in words will be biased by personal experiences and degree of exposure to the service

Customer Relationship Management Systems

Designed to keep a history of all contacts a customer has had with the service provider

Demand-oriented pricing

Determining the value of a service (to customers)

Sustainable development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs (United Nations, 1987)

Creating Successful Service Delivery Teams

Emphasis on cooperation, listening, coaching, and encouraging one another, understand how to air differences, tell hard truths, ask tough questions, management needs to set up a structure to steer teams toward success

Types of centres

First generation: traditional "high street format" - 1960's and 70's in UK Second generation: early versions of the shopping centre concept - more focus on local brands and products Third generation: shopping as entertainment Third plus e.g. ski slopes

Role of Personal Selling

Impact of Omni-channels, no longer the 'sole keeper of knowledge', the customer is more proactive, a key role in reinforcing the retailer's brand image, reassurance, steering and directing

Four categories of external search

Impersonal advocate (print and broadcast media), impersonal independent (popular articles and broadcast programming), personal advocate (salespeople), personal independent (friends and relatives) (Andreasen, 1968)

Service Guarantee

Implicit guarantees i.e. return of goods, specific guarantees i.e. speed of servic, unconditional guarantees i.e. total satisfaction

Approach behaviours

Include all positive behaviours that might be directed at a particular place, such as desire to stay, explore, work, and affiliate (Mehrabian and Russell 1974)

(Components of service blueprinting) Customer actions

Includes all of the steps that customers take as part of the service delivery process. They are depicted chronologically across the top of the blueprint

Actual service

Includes both final results and the process through which those results were obtained

Expected experience

Includes expected attraction experience (i.e. expected number and experience value of visited attractions) and wait experience (i.e. expected waiting time)

Physical quality

Includes the physical aspects of the service (e.g., equipment or building)

Visitor satisfaction

Includes transaction-specific and overall satisfaction (Jones & Suh, 2000)

Consumer-specific factors that influence price image:

Individual factors that are relatively consistent over time e.g. price sensitivity and familiarity with market prices Situational factors such as time pressure and the financial consequences of the purchase decision

(Ethical shoppers) Suspicious shoppers

Individuals who are mistrustful of other people. This is reflected in their dealings with retailers where they feel they may be taken advantage of in certain buying situations. They tend to be idealistic and do not wish to do anything that might hurt others

Explicit signals

Labels, for giving directions, communicating the service script, reminders about behavioural rules

Emotional labour

Labour that goes beyond the physical or mental skills needed to deliver quality service. Boundary-spanning service employees are expected to align their displayed emotions with organisationally desired emotions e.g. delivering smiles, making eye contact, showing sincere interest and engaging in friendly conversation

Honestly disengaged (10%)

Lack of concern and interest in the environment, see no need to change actions or lifestyle, individualistically-focused

Factors that influence desired service

Lasting service intensifiers, personal needs

Transformational leaders

Leaders who stimulate and inspire (transform) followers to achieve extraordinary outcomes

Passives

Least likely to take any action, say anything to the provider, spread negative WOM, or complain to a third party; doubtful of the effectiveness of complaining

Key drivers of sustainable supply chain management (Mannet al., 2010)

Legislation, environmental drivers, financial drivers, internal business process drivers, customers, social

(Retail location strategy) Shopping

Leisure entertainment-based and functional utilitarian

Unprompted/unsolicited employee actions

Level of attention, unusual action, cultural norms, gestalt, adverse action

Constraints to effective customer service design and implementation

Levels of pay, part-time staff, repetitive and boring, in-store theft, technology and shift to 'low-touch'

Roles

Like actors, employees have roles to play and behave in specific ways

Expectations as beliefs

Links between an object and attribute - in order to take advantage of the preciseness and general acceptability of definitions of the concept belief

Remote services

Little or no customer involvement with the servicescape; employee only servicescape e.g. telephone company, insurance company, professional services

Aghazadeh (2005: 31) identifies a number of guidelines for making store layout decisions...

Locate high-draw items around the store, use prominent locations for high-impulse and high-margin items, distribute what is known as 'power items' to both sides of an aisle and to increase the viewing of other items, use end-aisle locations for high exposure rate, convey the impression of the store by careful selection in the positioning of the lead-off department

Retail pricing objectives

Long-term market development and profitability, short-term market share gain or protection, brand and quality-led objectives, sustainability-led objectives, equitable pricing objectives, promotions-led objectives, inventory-led objectives

Retail store loyalty

Loyal customers tend to buy more goods, they tend to be more predictable, cheaper to retain loyal customers, they act as ambassadors, they tend to become more profitable to the retailer over time, they are less likely to switch

(Categories of shoppers) Materialistic bargain hunter

Mainly blue collar (working class) are avid (interested) shoppers and will use any type of outlet, but will never pay full price for anything (11% of European population)

Key factors that shape the direction of retailer pricing strategies

Medium (online/offline), manufacture interaction, product type, other marketing mix, cross-channel competition and store positioning/format, in-channel competition and customer factors

Walters and Laffy (1996) identified four broad areas that make up the retail marketing mix:

Merchandise decision, store format, layout, space allocation, design and atmospherics, customer service and customer communications

(Retail location strategy) Location

Micro-level and macro-level

(Attracting bargain hunters) Discounting

Offering discounts or price cuts to communicate to price sensitive buyers that they are receiving value e.g. Airlines offering discounted ticket prices or free seats where customers pay only taxes and administration charges

Structural Bonds

Offers target customers value-adding benefits that are difficult or expensive for businesses to provide and that are not readily available elsewhere (Berry, 1995, p. 240)

Service-dominant logic service

Often defined as the application of specific competences on resources for the benefit of someone (Vargo and Lusch, 2008)

(Categories of shoppers) Old neighbourhood shopper

Older people, less well-off. Conservative, value tradition and their local roots. Fixed shopping habits, favour the 'corner shop' (21% of European population)

(Categories of shoppers) Demanding shopper

Older people, well-off and selective. Seek good standards of service and are loyal to specialist shops (13% of European population)

Factors influencing the location decision

Online developments, mobile technology, social media platforms, growth in expenditure on leisure-based activities, lifestyle changes, emergence of pop-up stores, multi-format locations, greater consumer mobility

Dangers of using social media

Open access, negative comments, uninvited brands, privacy and security concerns, no 'one size fits all' approach

Two principal dimensions of Service Brand Complexity

Operational complexity and interpersonal complexity

3 main causes of role stress

Organization VS Client: dilemma whether to follow company rules or to satisfy customer demands. This conflict is especially acute in organisations that are not customer oriented; Person VS Role: conflicts between what jobs require and employee's own personality and beliefs; Client VS Client: conflicts between customers that demand service staff intervention

Strategic Roles of the Servicescape

Package, facilitator, socialiser, differentiator

Incompleteness

People tend to omit details or elements that they are not familiar with

Moment of Truth

Perceived quality is realised when the service provider and the customer meets (Normann, 1991)

Social Bonds

Personal ties that focus on service dimensions to develop buyer-seller relationships through interpersonal interactions, friendships (Berry, 1995; Wilson,1995), and identifications (Smith, 1998; Turner, 1970)

Six key pillars that act as the drivers for customer experience excellence in the retail sector:

Personalisation, time and effort, expectations, resolution, integrity and empathy

Six pillars to drive customer experience excellence

Personalisation, time and effort, expectations, resolution, integrity, empathy

Post-benefit convenience

Personnel gain the training and empowerment to rectify post-purchase problems

Personal motives

Physical activity, sensory stimulation, role playing, diversion, learning about new trends, self-gratification

Components of service blueprinting

Physical evidence, customer actions, line of interaction, onstage contact-employee actions, line of visibility, backstage contact-employee actions, line of internal interaction, support processes

Job demands

Physical, social or organisational aspects of the job that require sustained physical and/or psychological (i.e. cognitive or emotional) effort on the part of the employee

TCC can be classified into specific categories:

Physical/spatial/facility, ecological, psychological, community, economic, social/cultural, political carrying capacity (Bao & Chu, 2006; Getz, 1982)

Interpersonal services

Placed between the two extremes and represents situations involving both customer and employees e.g. restaurants, hotels, hospitals, educational institutions and banks

Geocode

Placed on the computer with a spatial referencing point and visually displayed through maps and graphs (Clarke, 1998: 291)

Social motives

Pleasure of bargaining, status and authority, social experience outside the home, communications with others having a similar interest, peer group attraction

Mehrabian and Russell's (1974) research they have concluded that the emotion-eliciting qualities of environments are captured by two dimensions:

Pleasure-displeasure and degree of arousal (i.e. the amount of stimulation or excitement)

Image-related objectives

Positioning, low-cost, lifestyle

Engagement

Positive, fulfilling, work-related state of mind that is characterised by vigour, dedication, and absorption Schaufeli et al. (2002, p. 74)

Job resources

Positively self-evaluated environmental conditions that reinforce an employee's sense of his/her ability to successfully control and impact an environment (Hobfoll, 1989)

Social response theory

Posits that people often treat computers like humans, therefore, online retailers can gain a competitive advantage by using social cues that emulate human connections and some type of emotional bond

Key touch points in the purchasing process

Pre-sales: information-seeking, social media, friends, work colleagues, advertising; Sales encounter: interactions with store employees, handling of queries, demonstrating/advising, closing the sale; Post-sales: dealing with complaints, returns and warranty issues, speed of response to customer complaints process, speed of response to replacing items

Demand patterns

Predictable cycles, random demand fluctuations, demand patterns by market segment

Cost-Based Pricing Strategy

Price = Direct Costs + Overhead Costs + Profit Margin

(Attracting Convenience Seekers) Price bundling

Pricing and selling grouped together rather than individual services. Allows the customer to pay less than when purchasing each of the services individually e.g. health clubs

Self-service technologies (SSTs)

Services produced entirely by the customer without any direct involvement or interaction with the firm's employees. It represents the ultimate form of customer participation along a continuum from services that are produced entirely by the firm to those that are produced entirely by the customer

Three central tenets of Service-Dominant Logic (S-DL)

Services, S-DL shifted focus from a producer perspective to a customer perspective in the process of value creation where there are two types of resources: operand and operant

(Strategic Roles of the Servicescape) Differentiator

Servicescape acts as a differentiator by separating designs of a company from its competitor. It helps to reposition a company and attract new segments

Key factors that influence the level of involvement in purchasing decisions

Self-image, perceived risk, social factors and hedonistic influences (Laurent and Kapferer, 1985)

Factors Influencing the Level of Involvement in Purchase Situations

Self-image, perceived risk, social factors, hedonistic influences

The 'darker' side of relationship management

Self-interest, self-preservation, selfishness, greed

(Components of service blueprinting) Support processes

Separated from contact employees by the internal line of interaction. These are all of the activities carried out by individuals and units within the company who are not contact employees but that need to happen in order for the service to be delivered. Vertical lines from the support area connecting with other areas of the blueprint show the inter-functional connections and support that are essential to delivering the service to the final customer

(Components of service blueprinting) Onstage/visible contact employee actions

Separated from the customer by the line of interaction. Those actions of frontline contact employees that occur as part of a face-to-face encounter are depicted as onstage contact employee actions

(Components of service blueprinting) Backstage/invisible contact employee actions

Separated from the onstage actions by the very important line of visibility. Everything that appears above the line of visibility is seen by the customer, while everything below it is invisible (involves non-visible interaction and other activities that contact employees do)

Three types of BSBs frontline employees may perform associated with linking the organisation to its positional or actual customers:

Service delivery, external representation, internal influence

Self-Service Technologies (SSTs)

Service produced entirely by the customer without any direct involvement or interaction with firm's employees

(Strategic Roles of the Servicescape) Facilitator

Servicescape acts as a facilitator to help people in their surroundings

Competitive-based pricing

Setting prices based on competitors' strategies, prices, costs, and market offerings, however, competitors do not have the same resources, capabilities and scale

Passive loyalty

Shoppers remain open to repurchasing the brand but are also open to the idea of buying other brands

Employer brand

Similar to a product brand except that it promotes the organisation as a great place to work, rather than promoting a specific product or service

Seven sins of greenwashing

Sin of the hidden trade-off, sin of no proof, sin of vagueness, sin of worshipping false labels, sin of irrelevance, sin of lesser of two evils, sin of fibbing

Challenges for Competition Based Pricing

Small firms may charge too little to be viable, heterogeneity of services limits comparability, prices may not reflect customer value

Four different categories of social media (Schmidt and Ralph, 2011)

Social network or online communities, blogs, microblogs and really simple syndication (RSS)

Key drivers for Triple Bottom Line

Social, legislation, environmental, financial, internal business process, customer

Everyday Low Pricing (EDLP)

Based on the presumption that the price of every product in the store will be as low as possible on a daily basis, variations can occur, steers shoppers away from the notion of 'predictable discounting', it can create a downward spiral of price decreases

Challenges of global sourcing

Cultural, political and legal differences, lack of technology, poor infrastructure (IT, communications), customs procedures, exchange rate fluctuations, instability (e.g. economic, political)

(Service failures) Intangibility

Customer comparison of perceptions to expectations is highly subjective

Three social elements with each representing a social dimension that influences a customer's experience in a service setting

Customer placement, customer involvement, and interaction with employees

High level of participation

Customers are truly co-creators of the service; they have important participation roles that will affect the nature of the service outcome

Social benefits

Customers develop a sense of familiarity and, even, a social relationship with their service provider

(Attracting Convenience Seekers) Price framing

Customers do not possess accurate reference prices for services, services marketers are more likely than product marketers to organise price information for customers so they know how to view it

Selling environment

The physical and virtual spaces that are available to retailers as they attempt to attract customers to their product offerings, encourage them to browse, hopefully make a purchase and ultimately revisit that space on a regular basis

Location

The physical and/or virtual space that a retailer inhabits in order to present its value proposition and provide an opportunity for its target market(s) to access its merchandise and connect with its brand values and associations

Flagship store

The pinnacle in a retail chain, usually large and located in a high footfall prestigious location, with a full range of merchandise but an emphasis on the more expensive high quality and high fashion lines (Varley, 2007: 176)

Interpersonal complexity

The potential complexity of the personal interactions between customer and provider, in terms either of the number of different people involved in the service transaction or the depth of knowledge or quality of relationship required to deliver the service effectively

Categorisation

The process by which people assign a label to an object e.g. when people see a feathered animal flying through the air, they categorise it as a "bird" and not a "fish" (Loken and Ward 1990; Mervis and Rosch 1981)

Gold customers

The profitability level is lower and the commitment is not as high as platinum members, even though they are heavy users

(Regeneration of city centres) Physical approach

The role of heritage, in city centres as well as in neighbourhoods

(Regeneration of city centres) Integrated approach

The role that culture and creative activities can play in acting as a driving force for urban regeneration

Flexible replicatio

This recognises that full replication (standardisation) is not feasible or indeed desirable as it ignores obvious areas where differences occur across different international retail markets. Instead, a combination of standardisation and adaptation is the most appropriate strategy for retailers. However, flexibility should be at the heart of this approach (Jonsson and Foss, 2011)

Window of opportunity

This recognises that markets in general and the retail sector in particular goes through a life cycle which generally consists of four phases: opening, peaking, maturing and closing. Various characteristics are associated with each phase and will have major implications for critical decisions such as the mode of entry and the most appropriate labour strategy to be employed in each case

Other proprietary brand assets

This refers to the issue of being able to leverage the brand and build on its strengths. An example would be an exercise in co-branding. This involves two branders with similar brand values coming together to engage in various marketing exercises such as joint promotions or the creation of a new product

Social brand consumption

This refers to the level of interaction between consumers in the brand community. This form of brand consumption is exhibited by the willingness of consumers to share their experiences with each other, make recommendations and indeed act on recommendations by members of the particular brand community

Perceived quality

This refers to the shopper's perception of the overall quality or superiority of a brand in relation to others that are considered in the purchase decision

Green-minded shopper

This segment exhibits concerns about the way in which products are developed (for example, using natural resources, not using animals to test and develop the product etc)

(CBBE) Judgement (cognitive)

This stage builds on the second one where the shopper is in a position to make some observations and opinions about a particular brand in relation to aspects such as quality and credibility

The sources of cues can be divided into two broad categories:

Those derived from interaction with the physical environment and those derived from interaction with other people

Credence attributes

Those that customers find impossible to evaluate confidently even after purchase and consumption e.g. hygiene conditions of the kitchen and the healthiness of the cooking ingredients

Digital immigrants

Those that had to adjust to survive in a digital age

Experience products

Those whose relevant attribute information cannot be known until the trial/use of the product/service (Nelson, 1970, 1974)

Credence products

Those whose relevant attribute information is not available prior to and after the use of the product/service for a considerable period of time (Darby and Karni, 1973)

Capacity constraints

Time, labour, equipment, facilities

Listening posts

Tools for collecting data from customers and systematically translating those data into information in order to improve service and products. Common examples are letters of complaint

Challenges for Demand Based Pricing

Value may be perceived differently by customers because of different tastes, knowledge, buying power and ability to pay, setting prices internationally may differ across countries

Service failure

When a service outcome and/or service process fails to meet customer expectations

Brand associations

When reflecting on a particular brand, it is normal for shoppers to have certain associations with that brand e.g. for ethically concerned shoppers, retailers such as Body Shop and Lush inculcate strong associations with issues such as using natural ingredients that have not been tested on animals

Optimal Capacity

When resources are fully employed but not overused and that customers are receiving quality service in a timely manner e.g. all tables at a restaurant are completely full

Joint ventures

When two or more companies join forces - sharing resources, risks, and profits, but not actually merging companies - to pursue specific opportunities

Racetrack format

Where different departments are located around periphery of store, good way of getting customer to see max amount of different products as their eyes may be veered to another department whilst shopping in another e.g. Ikea

Decision waves

Where multiple decisions are taken within a single decision process seen as a sequence of activities, rather than stages, allowing for multiple decisions within each single decision process

Win- lose situation

Where only one party gains benefits and the other has to make sacrifices if it wishes to continue in the relationship

Interactive marketing (or real-time marketing)

Where promises are kept or broken by the firm's employees, subcontractors or agents

Win-win situation

Where there are no losers and each party derives some benefits from the relationship. there are doubts about whether commentators suggest. Like a partnership public

Four key questions for developing Sustainable Retail Supply Chain Strategies

Who are we (assessing the current position of our organisation)? What is changing (assessing the environment: current and future)? How do we fit (evaluating the risks and opportunities)? How should we fit (applying this analysis to existing strategy and identifying strategy changes)?

External dimensions

Windows - intrigue, inform, inspire, awnings, signage/facia, door entrances

Attributes that shape trust within the context of the online environment include...

brand name, website design and navigation, information, past experiences and country of origin

Brown (1993) refers to the concept of agglomeration as being...

central to an understanding of how retailers address spatial considerations. Traditionally, retailers have tended to locate or cluster close to retailers selling similar or complementary merchandise

The perceived risk associated with buying a private label product is higher than that of buying a...

comparable manufacturer brand alternative

The main driver for the move to global sourcing has been the...

cost imperative

Dynamic pricing is built on three marketing pricing structures...

cost, competition and demand

Lighting ranges from...

creating desired 'moods', blue lighting for 'hygienic look', wall and spot lights for shelf display, highlighting pockets of interest, merchandise can be seen

Operational consistency is clearly vital in avoiding...

customer dissatisfaction. If something doesn't work, it doesn't matter how engaging the interpersonal experience is, you're not going to deliver satisfaction

Attractive quality leads to...

customer satisfaction, but its absence does not cause dissatisfaction

Buzz/viral marketing campaigns bring...

customers and branders together, revolving around a particular activity or theme. It is a good example of how a retailer can integrate the message with other elements of the marketing communications mix

Customer expectations can change due to a number of factors such as...

competitive activities, new entrants to the market adopting different business models and the general state of the economy

In attempting to manage the total customer experience, complexity is generally the enemy of ___

consistency

When private labels enter a category, manufacturer brands adopt a...

defensive strategy of investing in product innovation that can enhance their competitive advantage and enable a sustainable price premium over the private labels

Customer factors that lead to...

demand uncertainty and the corresponding joint optimisation of price, promotion and product assortment

The physical selling environment refers to the...

internal and external dimensions

Components to develop brand positioning include...

its overall reputation, products/service performance, product and customer portfolio and networks

Perceived product risks are greater when the provided product information is...

limited and consumers have a low level of self-confidence in their brand evaluation (Bhatnagar and Ghose, 2004)

Generic private labels are often categorised as...

low cost, low quality alternatives

Many private labels now boast equivalent or even superior quality to that of...

manufacturer brands and even premium private labels are sold in some retailers

Services deliver an experience by...

providing a bundle of benefits which creates an experience for the consumer. This delivery process has been entitled the Servuction System model

Online consumers perceive more risks than those shopping in-stores for three reasons...

they cannot examine the product before they receive it, they are concerned about after-sales service, they may not fully understand the language used in e-sales (Hong and Yi, 2012)

(Ethical shoppers) Corrupt consumer

Someone that is similar to suspicious shoppers but is less idealistic and is predisposed to take advantage of any situation that presents an opportunity for personal gain (Al-Khatib, Stanton and Rawwas, 2005)

Market Maven

Someone who acts as a conduit of information about trends and developments in terms of new products and innovations that are on the market or are about to hit the outlets in the near future

Jay customer

Someone who acts in a thoughtless or abusive way, causing problems for the firm, its employees, and other customers e.g. the cheat, the thief, the rulebreaker, the belligerent, the family fueders, the vandal and the deadbeat

Price

The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service

Customer alchemy

The art of turning less profitable customers into more profitable customers

Experiencescapes

The extent to which the surroundings people encounter in the course of their lives "take the form of physical as well as imagined landscapes of experience"

Corporate culture

The pattern of shared values and beliefs that give the members of an organisation meaning and provide them with the rules for behaviour in the organisation

Profit margin

The percentage of full costs

The product demand cycle

The periodic cycle influencing demand for a particular service; it may vary in length from one day to 12 months

The four dimensions in a servicescape are...

physical, social, socially symbolic, restorative/natural

Stages in the brand management process

Identifying and establishing brand positioning, planning and implementing brand marketing programmes, measuring and interpreting brand performance, growing and sustaining brand equity

(Regeneration of city centres) Economic approach

Cultural and arts events and festivals can play a significant role in providing cities with an identity and empowering local communities within the area

Store Image

"...the way in which the store is defined in the shopper's mind, partly by its functional qualities and partly by an aura of psychological attributes" (Dupreez, Visser and Van Noordwyk, 2008)

Quality

"conformance to requirements" (Crosby, 1979)

The price-quality schema

"the generalised belief across product categories that the level of the price cue is related positively to the quality level of the product" indicating that consumers use price for the evaluation of overall product excellence or superiority (Zeithaml, 1988) i.e. it doesn't focus on actual product quality, but on the consumer's belief in the relationship between quality and price (Lichtenstein and Burton, 1989)

Current attendance should not fall below the...

"threshold attendance" needed to break even during shoulder seasons (Ahmadi, 1997)

Global supply chain

'...the distribution of performance outcomes of interest expressed in terms of losses. Profitability, speed of event, speed of losses, the time for detection of the events and frequency' (Manuj and Mentzer, 2008)

The physical retail selling environment begins with an...

'empty shell'. This applies to large spaces such as hypermarkets or small concession areas in department stores. If it is left as an empty shell, it will serve no purpose

Brand

A combination of a name, a logo and a symbol to provide recognition and awareness of a product

Customer Inertia

A consistent pattern of buying the same brand almost every time a consumer shops, out of habit, merely because less effort is required

Franchising

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor

Omni-retailing

A coordinated multichannel offering that provides a seamless experience when using all of the retailer's shopping channels (Levy et al., 2013)

Service culture

A culture where an appreciation for good service exists, and where giving good service to internal as well as ultimate, external customers is considered a natural way of life and one of the most important norms by everyone

Critical incidents research

A customer recalls and discusses both satisfying and unsatisfying experiences with a service provider and its employees

Path-to-purchase (PtP)

A decision-making process to solve an occasion-specific purchase need (Shankar et al., 2011)

Loyalty

A deeply held commitment to rebuy or repatronise a preferred product/service consistently in the future (Oliver, 1999, p. 34)

Intrinsic motivation

A desire to perform a behaviour effectively for its own sake

Price image and its impact on shopping behaviour

A function of two types of factors: retailer-based and consumer-based (Hamilton and Cherney, 2013)

Efficient Consumer Response (ECR)

A global movement in the grocery industry focusing on the total supply chain-suppliers, manufacturers, wholesalers and retailers, working closely together to fulfil the changing demands of the grocery consumer better, faster and at least cost (Fiddis, 1997, p. 40) e.g. sharing consumer information with suppliers

The Service Recovery Paradox

A good recovery can turn angry, frustrated customers into loyal ones. ..can, in fact, create more goodwill than if things had gone smoothly in the first place (Hart et al. 1990)

Consideration set

A group of brands within a product category that a buyer views as alternatives for possible purchase

Eclectic theory

Based on the view that international organisations build up significant advantages which can form the basis for development and exploitation in international markets. They largely revolve around ownership-specific, location-specific and internalisation advantages (Dunning, 1981)

Decision convenience

Being able to give customers appropriate information so that they can make informed buying decisions

External representation

Being vocal advocates to outsiders of the organization's image, goods and services (Bowen and Schneider 1985)

Customer expectations

Beliefs about service delivery that serve as standards, or reference points, against which performance is judged

Dimensions of brand equity

Brand awareness, brand loyalty, perceived quality, brand association, other proprietary brand assets

Sales-related objectives

Building sales volume, building customer traffic, increasing sales through loyal customers

Vendor-Managed Inventory (VMI)

By collaborating with suppliers and involving them intensively - to the extent of managing the inventory - it can be argued that benefits accrue to the retailer in terms of increased profits, and to the supplier in terms of more accurate forecasting i.e. getting suppliers to manage stores

Attraction experience

Can be measured by the number of attractions visited and/or experience value (i.e. the perceived value of the tourist experience) of attractions visited (Prebensen, Woo, & Uysal, 2014). However, it is restricted by waiting time

(Regeneration of city centres) Social approach

Can help to create a civic bond and cohesion in the process of urban regeneration and make more creative use of public space. The role of culture can also help address issues such as social inequality and social exclusion

Service improvements

Changes in service features e.g. extended hours of service

Price discrimination

Charging different prices for the same product to different segments of customers across the different retail channels

Categories of store brands

Classic store brand - positioned similar to or slightly below producer brands; generic store brand - basic, plain packaging, cuts in quality, no advertising; premium store brand - positioned like leading national brands

Kaplan (1987) concluded that preference for or liking of a particular environment can be predicted by three environmental dimensions:

Complexity (increase emotional arousal), mystery and coherence (enhance positive evaluation)

Sideline supporters (14%)

Concerned about the environment, but not taking significant action

Cautious participants (14%)

Concerned about the environment, taking some action, hold a pessimistic worldview about impact

Concerned consumers (14%)

Concerned about the environment, though show less conviction towards action than previous groups

Moderate level of participation

Consumer inputs are required to aid the service organisation in creating the service. Inputs can include information, effort or physical possessions

Functional brand consumption

Consumers make use of social media to address a number of problems or issues that require some clarification. These include solving problems; sending specific inquiries; searching for information; evaluating service before purchasing; and gaining access to a brand's special deals and giveaways

Content issues

Content engagement value, content media, content syndication, content participation, content access platform

The mode(s) of entry is influenced by a number of critical factors

Control, cost, level of risk, flexibility, speed of geographic coverage, critical mass, regulations

Limitations of Corporate Branding and Culture

Corporate branding implies that the large sums spent on building product brands have been a waste of time, it can damage the impact and contribution of local brands, it can potentially upset and alienate customers if well-loved and favourite brands disappear from the shelves

(Non-monetary costs) Convenience costs

Cost in obtaining a service e.g. travel costs

Challenges for Cost-Based Pricing

Costs are difficult to trace, labour is more difficult to price than materials, costs may not equal the value that customers perceive the services are worth

(Non-monetary costs) Psychological costs

Costs that customers experience as sacrifices when purchasing and using services

Experiential marketing

Create product desire, verify the target audience, build relationships, raise awareness, increase loyalty, increase return on marketing investment, establish relevance, encourage interaction and product trial, create memories, stimulate positive word-of-mouth, change the mind of dissatisfied customers (Morton, 2009)

Relational bonds

Created through economic or emotional marketing activities, may improve customers' utilitarian or hedonic value. When consumers highly value these bonds, they are motivated to be loyal

E-procurement Issues

Creates greater transparency, improves purchasing control, corporate purchasing agreements, expected to decrease administrative costs, getting 'buy-in' from suppliers, more accurate forecasting

The logic for designing a marketing communications initiative around such individuals revolves around three reasons:

Credibility: the belief that the celebrity has similar values and attributes that are closely associated with the brand values and attributes of the retailer; Recognition: the target market has a very high level of recognition when they see images of the celebrity; Popularity: the celebrity generates high levels of positive opinions and perceptions

Key success factors for effective generation...

Devolvement of power to the local city authorities, creating balanced and attractive residential neighbourhoods, valuing the role of culture in the regeneration process, working across boundaries, sectors and professions, generating a substantial part of the necessary revenue for generation from local taxes

Provider gap 2 (the service design and standards gap)

Difference between company understanding of customer expectations and development of customer-driven service designs and standards

The customer gap

Difference between customer expectations and perceptions. Closing the gap between what customers expect and what they receive is critical to delivering quality service

Provider gap 1 (listening gap)

Difference between customer expectations of service and a company's understanding of those expectations

Provider gap 4 (communication gap)

Difference between service delivery and service provider's external communications

Dynamic Pricing Models

Direct result of technology and software enablers, capturing 'live' information, tracking of purchase patters, still relying on historical data, ability to change prices in 'real time'

Customer Complaint Actions Following Service Failure

Dissatisfaction/negative emotions, complaint/no complaint action, complain to provider/negative word-of-mouth/third-party action, exit/switch or stay

Problematic customers

Drunkenness, verbal or physical abuse, breaking company policies, uncooperative customers

Social environmental concerns

Ecological effects, resident experience (Canestrelli & Costa, 1991), infrastructure and super-structure (Forbartha, 1966), and political/administrative factors (Getz, 1983)

Relationship marketing benefits for firms

Economic benefits - increased purchases over time; repeat purchases; customer behaviour benefits - continuous word of mouth communication; human resource management benefits - contribution to the production of the service by assisting in service delivery

Principles of Retail Pricing

Effective pricing is based around price sensitivity of shoppers; pricing decisions have to address the long-term aspects of the retailer's operations; retailers would like to sell their merchandise at 'full price'; retailers are increasingly making use of IT; use of location-based apps; retailers work closely with their supply base; retailers can engage in joint price promotions to maximise revenue; retailers have to grasp on operating multiple channels; shoppers increasingly use technology to track prices

E-service quality dimensions

Efficiency, fulfilment, reliability, privacy, responsiveness, compensation, contact

External marketing

Efforts that the firm engages in to set up its customers' expectations and make promises to customers regarding what is to be delivered

Two categories of service provision

Elements that are deemed to be compulsory i.e. the retailer cannot avoid service provision in such areas e.g. issues with law, and areas where the retailer has discretion on the extent of provision and level of investment provided

Innovators

Employees: may act as innovators since human capital remains a non-substitutable source of creativity (Bowen, 2016) Customers: may act as innovators as they take part in the development and delivery of new services. As 'free' consultants, they offer valuable feedback and ideas for innovation through interaction with employees, other customers and/or technological interfaces (Hoyer, Chandy, Dorotic, Krafft, & Singh, 2010)

Differentiator

Employees: the unique position of employees as a means to differentiate was already articulated by Heskett, Sasser, and Hart (1990) Customers: influence on the service out-come has grown significantly (Bitner et al., 1997), especially when technology acts as substitutor or network facilitator

Coordinator

Employees: this role becomes increasingly prevalent as complex service systems comprised of multiple actors require active co-ordination to create successful outcomes (Ostrom et al., 2015) Customers: they act as a resource integrator selecting and bringing together multiple related and/or unrelated parties in the service encounter (Tax et al., 2013) e.g. patients with chronic diseases regularly participate in the treatment process

External aspects

Entrance to the outlet, the use of logos and window displays to encourage shoppers to enter the store in the first instance

Internal Responses to the Servicescape

Environment and cognition, environment and emotion, environment and physiology, variations in individual responses

Benefits of adopting a sustainable retail supply chain strategy (Emmett and Sood, 2010: 8)

Environmental, technological, economic, regulatory, social

Strategies for when demand and capacity cannot be matched

Establish a reservation process, differentiate waiting customers, make waiting more pleasurable

Sustainability touches all aspects of operations

Ethical sourcing, not an 'optional extra', carbon footprint, energy efficiency, recycling

Reasons companies might NOT want to offer a service guarantee

Existing service quality is poor, a guarantee does not fit the company's image, service quality is truly uncontrollable, potential exists for customer abuse of the guarantee, costs of the guarantee outweigh the benefits

Factors that influence desired and predicted service

Explicit service promises, implicit service promises, online and offline word of mouth, past experience

Elements of physical/virtual evidence

Exterior servicescape, interior servicescape, virtual servicescape, other tangibles

The Power of Teamwork in Services

Facilitate communication among team members and knowledge sharing, higher performance targets, pressure to perform is high

Transaction convenience

Facilitates transactions such as checkouts and returns

Process oriented

Failure related to the service delivery failures e.g. rude employee behaviour

(Service failures) Inseparability

Failures occurring during interaction between service provider and customer

Outcome oriented

Failures related to incidents occurring with the core service e.g. Ocado grocery shopping website failed to meet demands so they had to temporarily close down their website

Source credibility revolves around three dimensions:

Familiarity (the extent of recognisability associated with the celebrity; Likeability (the degree of affection generated by the celebrity in the mind of the consumer); Similarity (the extent to which the individual sees the celebrity as a mirror of themself)

Self-service anxiety

Fear and apprehension of using technology to execute a service along with the perceived social pressures of performing the service

Transformational leadership theory (Bass, 1985)

Focuses on exceptional leaders who have profound effects on their followers

The seven core categories of shoppers' buying behaviour

Food, drink and product safety, animal welfare, honest labelling, advertising and promotions, ethical trading, human rights, the environment

New services

For currently served market - e.g. Tesco providing insurance services

Benefits of Service Guarantees

Forces company to focus on customers, sets clear standards, generates feedback, forces company to understand why it failed

Micro-level

From the perspective of the individual retailer (performance in outlets or assessing potential sites)

(Retail location strategy) Using space

Functional (facilitating purchases), social (coffee shops, restaurants), leisure (cineplex, indoor bowls)

Davis et al (2014) identify five core elements of brand consumption in a social media setting:

Functional brand consumption, emotional brand consumption, self-oriented brand consumption, social brand consumption and relational brand consumption

Shopping Motives

Functional/mundane, effort/planning, pleasure-seeking, escape

Corporate social responsibility-related objectives

Good citizenship, ethics, climate change, social issues

Other key factors influencing the location decision (Birkin, Clarke and Clarke, 2002)

Greater consumer mobility, online developments, mobile technology, social media platforms, growth in expenditure on leisure-activities, lifestyle changes, emergence of pop-up stores, multi-format locations

GAPACT

Greet, ask, provide, add-on, close the sale, thank

Digital natives

Groups that were born and grew up in the digital age

Two dimensions of determining customer services

Hard elements - tangible factors that the shopper can observe and assess e.g. car parking Soft elements - these include performance of the retail salesperson in areas such as product knowledge, interaction skills

Benefit convenience

Helping customers understand the benefits of products and services to create a more enjoyable experience

Service-profit chain audit

Helps companies determine what drives their profit and suggests actions that can lead to long-term profitability

How can organisations improve their operations and be successful via people?

Hire and select the right people, be the preferred employer and train your most important asset

Customer experience

Holistic in nature and involving the customer's cognitive, affective, emotional, social and physical responses to the retailer (Verhoef et al., 2009: 32)

Customer perceptions

How customers perceive services, how they assess whether they have experienced quality service and whether they are satisfied is ultimately what we as service marketers are interested in

Internal aspects

How do we display our merchandise? Where do we display the different categories of product within the store? How do we manage the entrance and exit of shoppers? How can we ensure that shoppers spend as much time as possible in the store? etc

Four different behaviours that characterise transformational leaders

Idealised influence, inspirational motivation, intellectual stimulation, individual consideration

The role of brands for consumers

Identification of a source of product, assignment of responsibility to a product maker, risk reducer, search cost reducer, promise, bond or pact with maker of product, symbolic device, signal of quality

The Service Profit Chain

Identifies important relationships between employee satisfaction, loyalty and productivity, organisational profitability and consumer loyalty (Heskett et al, 1994)

Keller (2008) identifies four stages in the brand management process:

Identifying and establishing brand positioning, planning and implementing brand marketing programmes, measuring and interpreting brand performance, growing and sustaining brand equity

Roles of the retail employee

Information provision, product knowledge, establishing trust and confidence, implementing retail procedures with returns and warranties, sales skills, cross-selling, up-selling, dealing with disinterested shoppers, dealing with 'problem' shoppers, handling complaints

Online Shopping Motives

Information search, price comparison, uniqueness seeking, product assortment, convenience seeking, social interaction, browsing, seeking out new ideas/products

Pre-sales touchpoint

Information-seeking, social media, friends, work colleagues, advertising, evaluation of alternatives

Willems et al (2011) examined the fashion retail sector and developed a specific scale that included the following dimensions:

Innovativeness (trendy, hip, boring, youthful and modern), chaos (chaotic, careless, tidy, calm and busy), conspicuousness (special, extravagant and striking), agreeableness (approachable, reliable, successful and friendly), sophistication (classy, elegant, stylish, distinguished and chic)

Services as products

Intangible product offerings that customers value and pay for in the marketplace

Green Supply Chain Management (GrSCM)

Integrating environmental thinking into supply-chain management, including product design, material sourcing and selection, manufacturing processes, delivery of the final product to the consumers as well as end-of-life management of the product after its useful life (Srivastava, 2007: 54- 55)

Sales encounter touchpoint

Interaction with store employees, handling of questions/queries, demonstrating/advising, closing the sale

How to assess potential retail locations:

Intuition, checklist, analogue, competitive activities, multiple regression, GIs and spatial modelling, geodemographic systems, lifestyles, mathematical models

Access convenience

Involves making sure they know where merchandise is and assisting customers in finding it

Direct costs

Involves materials and labour associated with delivering the service

Corporate quality

Involves the company's image or profile

Functional quality

Involves the manner in which the service is delivered

Technical quality

Involves what the customer is actually receiving from the service

Benefits of Corporate Branding and Culture

It provides coherence and a framework for internal cooperation, it signals the strength and size of the organisation to its key audiences, it is more cost-effective to operate as an overall corporate brand than to develop a range of different product brands

Emotional Labour

Occurs when there is gap between what employees feel inside, and emotions that management requires them to display to customers

Internal marketing

Management engages in these activities to aid the providers in their ability to deliver on the service promise: recruiting, training, motivating, rewarding, and providing equipment and technology; the task of ensuring employees understand the brand promise and their part in delivering an on-brand customer experience

Factors influencing store layout decisions

Managing the flow of footfall, create pockets of interest, inject excitement, encourage the purchase of additional items, encourage impulse purchases, encourage loitering (where relevant)

The role of brands for manufacturers

Means of identification to simplify handling or tracing, means of legally protecting unique features, signal of quality level to satisfied customers, means of endowing products with unique associations, source of financial returns

Internal quality

Measured by the feelings that employees have toward their jobs, colleagues, and companies

Synchro marketing

Modifications in product features and distribution elements, as well as communication efforts, to help smooth the peaks and valleys of demand (Kotler, 1973)

Switching Costs

Monetary and non-monetary costs involved in changing to and purchasing from a different firm

Operant

More intangible and human (both employee and customer) knowledge and physical and mental skills

Irates

More likely to engage in negative WOM to friends and relatives and to switch providers; average in complaints to provider; unlikely to complain to third parties; more angry, less likely to give provider a second chance

Platinum customers

Most profitable customers, who are typically heavy users of the product, who are not overly price sensitive and whose commitment to the enterprise is high

(Non-monetary costs) Time costs

Most services require customers direct participation and thus consume real time

Differentiating

Much better than the competition

The challenges of pricing in the retail context

Multi-product and multi-site, the service dimension, different retail formats and channels, varying margins across the portfolio of merchandise, price auditing and competitive checking

Challenges of pricing in the retail context

Multi-product/multi-site the service dimension, different retail formats and channels, varying margins across the portfolio of merchandise, price auditing and competitive checking, constant price adjustment

Start-up businesses

New service for a market that is already served by existing products e.g. online banking for financial services

Major or radical innovations

New services for markets yet undefined e.g. Facebook

Excess Demand

No one is being turned away, but the quality of service may still suffer due to overuse, crowding or employees being pushed to deliver beyond their abilities

Interpretation

No two people will define 'quick' or 'responsible' the same way

Benefits of global sourcing

Non-availability of products locally, cost-savings, access to higher quality product, cost reduction (labour, facilities and infrastructure), shortening of product development time, satisfying counter-trade obligations

Greenwashing

Not all companies engage in sustainable practices for the sake of society itself, but many recognise the reputational benefits. Some brands have incorporated sustainability into their marketing strategy without implementing sustainable practices throughout the business

(Service failures) Heterogeneity

Not every service encounter is going to be identical

Why do customers complain?

Obtain restitution or compensation, vent their anger, help improve the service, for altruistic reasons e.g. spare other customers from experiencing the same shortcomings

What determines customer satisfaction?

Product and service features, consumer emotions, attributions for success and failure, perceptions of equity and fairness, other consumers, family members and co-workers

Alternative Approaches to Value Creation (Nagel et al., 2011)

Product-led: product -> cost -> price -> value -> customers Customer-led: customers -> value -> prices -> costs -> products

Criteria for selecting suppliers

Product-related issues, quality-related issues, responsiveness-related issues, network-related issues, price and cost-related issues, sustainability-related issues, management-related issues

Excess capacity

Productive resources in the form of labour

Store brands

Products that are marketed by the retailer as opposed to the manufacturer's brands (which are produced and marketed by the manufacturer)

Generational cohort theory

Proposed by Mannheim in 1928, it has been used to understand consumer behaviour and explain the use of technology (Smelser, 2001)

Expectancy-Disconfirmation Theory

Proposes that consumers use expectations as a benchmark against which performance perceptions are judged

Acquisitions

Provides a retailer with a reasonably quick way of establishing a presence in the chosen international market. However, it is also associated with high levels of risk. In addition to the costs involved in acquiring local retail operations, such a strategy is usually well publicised and, if it goes wrong, can also attract much critical and negative comment in the financial press

Four attributes that shape different retail brand positions

Range brands, price brands, convenience brands and experience brands (Floor, 2006)

Online dimensions of customer service

Reliability, access, ease of navigation, efficiency, responsiveness, assurance, security, aesthetics, personalisation

Dimensions of customer service have been identified as being important for online retailers:

Reliability, access, ease of navigation, efficiency, responsiveness, assurance, security, aesthetics, personalisation (Suryandari and Paswan, 2014: 70)

Service quality dimensions

Reliability, assurance, tangibles, empathy, responsiveness

Medium

Recognises that many retailers operate multi-channel strategies and the different approaches which may exist in terms of online and offline pricing strategies

Service exclusion

Referring to unfairness that occurs when services (service providers) deliberately or unintentionally fail to include or to adequately service customers in a fair manner e.g. poverty, race or religion, sexuality, body image, stereotyping etc

Source credibility

Refers to a communicator's expertise, objectivity, or trustworthiness

(Corporate social responsibility) Internal considerations

Refers to initiatives and policies that operate within the confines of the organization e.g. many retailers instigate policies and procedures with internal staff to make them more aware of the need for social responsibility concerns when dealing with customers

Online aesthetic appeal

Refers to online ambient conditions and to the extent to which consumers interpret the servicescape as attractive or alluring

(Corporate social responsibility) External dimensions

Refers to practices that move outside the 'four walls' of the retailer and have an impact on the wider stakeholders e.g. some retailers employ rigorous policies with regard to managing their suppliers

In-channel competition

Refers to price competition within a particular store or across a number of stores within a retailer's operation. It also covers the impact of loss-leader price campaigns on store traffic (the number of people visiting stores)

(CBBE) Imagery

Refers to social and psychological needs. It considers the relationship between the brand's and the consumer's characteristics e.g. for luxury brands, the product may allow the consumer to relate their desired social position in society by purchasing such an item

Tenant mix

Refers to the 'relationship between the percentage of shop areas occupied by different store types in a shopping mall' (Yiu and Xu, 2012: 524- 541)

(CBBE) Performance

Refers to the ability of the product/service to meet the functional needs and requirements of the consumer. This covers product characteristics such as quality, durability, customer service, price etc

Store image

Refers to the combination of dimensions that shape a shopper's perception of a particular store

Integration with other marketing mix variables

Refers to the extent of price and product customisation together with promotional activities

Manufacturer interaction

Refers to the interaction between suppliers and retailers in areas such as promotions and store brand

Product type

Refers to the nature of the retail offering e.g. whether the retailer operates in the fashion or staple retail sectors (e.g. perishables and packaged goods) and the level of complementarity across the product ranges

Retail demand externalities

Refers to the overall impact that the presence of high-end retailers, or an appealing tenant mix, has on overall sales, footfall and the shopping experience. The way in which retail developers locate individual stores in the centre plays a key role in shaping the shopping experience (Howard, 2007)

Cross-channel competition

Refers to the retailer's overall positioning strategy and the extent and range of formats that it adopts

Dynamic pricing

Refers to the use of price to manage demand for a service by capitalizing on customer sensitivity to prices

Avoidance behaviours

Reflect the opposite of approach behaviour, in other words, a desire not to stay, explore, work, and affiliate

___ of service is the single most important feature in judging service quality

Reliability

SERVQUAL model

Reliability (consistently delivering the services promises at the stated level), responsiveness (providing prompt service), assurance (ability to inspire trust and confidence in the retailer), empathy (willingness to give some form of personalized attention to the shopper), tangibles (appearance of a retailer's store layout and design, communications material and so on)

Types of service encounters

Remote, telephone and face-to-face encounters

Biophilia

Represents a driver that encourages humans to subconsciously seek connection with "the rest of life," perhaps encouraging patronage to commercial third places

(CBBE) Resonance

Represents the strongest level of commitment of the individual to a particular brand. It takes the relationship between the consumer and the brand to a new level and is ideally where the brander wants to be

Fix the Customer

Respond quickly, provide appropriate communication, treat customers fairly, cultivate relationships with customers

Geuens, Weijters and Wulf (2009) developed a personality scale based on five factors:

Responsibility, activity, aggressiveness, simplicity and emotionality

Utilitarian value

Results from the conscious pursuit of an intended consequence (Babin et al., 1994). It is primarily instrumental, functional, and cognitive and represents customer value as the means to an end (Chandon et al.,2000) e.g. savings

Price image is a function of two types of factors:

Retailer-based factors, which managers can directly influence, and consumer-based factors, which are particular to the individual buyers and which managers cannot directly influence (Hamilton and Chernev, 2013: 3)

Macro-level

Role of Government and Regional Authorities, retail developers: investment groups, legislators

Customer satisfaction

Satisfaction is the consumers' fulfilment response. It is a judgement that a product or service feature, or the product or service itself, provides a pleasurable level of consumption-related fulfilment (Wilson et al., 2016)

Internal branding

Seeks to develop and reinforce a common value-based ethos, typically attached to some form of corporate mission or vision

Subscription-Based Promotions

Selected group of customers are offered limited sets of product for limited time periods, exclusivity

Loss leaders

Selected items sold at a loss to attract customers to buy costlier goods

Value is a phrase that unfortunately has generated many definitions largely built around some of the following concepts:

Something a company does that is better than the competition, delivering something that exceeds the customer's expectations, creating a desire in the mind of the customer resulting in a purchase

Qualifying

Somewhat better than the competition

Customer needs and requests

Special needs, customer preferences, customer errors, disruptive other

Demand exceeds optimum capacity

Staff and facilities are occupied at an ideal level

Demand is balanced at the level of optimal capacity

Staff and facilities are occupied at an ideal level

Non-price drivers

Store design, layout, ambience, website appearance, sales staff

Brand loyalty

Strong equity revolves around loyalty and commitment to that brand. It is more cost-effective to retain customers than it is to chase new ones. Loyal customers are less likely to switch to another retail brand

(Categories of shoppers) Mall shopper

Suburban, well-off people who prefer to obtain everything under the one roof, either in hypermarkets or shopping malls (12% of European population)

Social media channels

Such channels involve third-party operators who have created and operate platforms; were not set up originally to facilitate commercial activities and communications; often involves WOM advertising viral/buzz marketing

Self-selection

Suggests that most service jobs will draw applicants with some level of service inclination and that most employees in service organisations are inclined towards service

Relationship management theory

Suggests that there is no such thing as a 'one-size-fits-all' approach to dealing with suppliers. It is not financially viable or necessary to have a close, intimate relationship with each supplier

(Service failures) Perishability

Supply and demand problems are a common occurrence

Reactive approach

Tactical in nature and is far removed from what we might see as the desired position of employing a 'strategic, long-term perspective' with regard to such decisions

Common approaches to managing demand when there is insufficient capacity (excess demand)

Take no action, reduce demand, increase demand, inventory demand (reservation system and formalised queuing)

Internal influence

Taking individual initiative in communications to the firm and co-worker to improve service delivery by the organisation, co-workers and oneself (Schneider and Bowen, 1984; Zeithaml et al., 1988)

Maximum capacity

The absolute limit of service availability e.g. excessive waiting by customers in a restaurant

Benefits of adopting a Sustainable Retail Supply Chain Strategy

Technological, economic, social, regulatory, environmental

Factors that influence adequate service

Temporary service intensifiers, perceived service alternatives, self-perceived service role, situational factors, predicted service

Key Success Factors in Shopping Centre Developments

Tenant mix, anchor store(s), retail demand externalities (impact of closures and vacancy rates), embracing digital technology, keeping the centre fresh and vibrant, primary locations, the life-cycle effect, role of flagship stores

Key success factors in shopping centre developments

Tenant mix, retail demand externalities, embracing digital technology, keeping the centre fresh and vibrant, primary locations, the life-cycle effect, role of flagship stores

Descriptive beliefs

Tend to be held with certainty as they are the product of direct personal experience

Operand

Tend to be tangible and nonhuman, e.g. money, physical facilities, and good

Private labels have advantages when introducing new products

Tend to imitate faster, have immediate access to and control over distribution, immediate access to consumers, deliver a significant price utility - in line with the retailer's strategy, retailers may influence consumers' perceptions of private labels by providing samples, launched under an umbrella branding strategy

(Categories of shoppers) Discount shopper

Tends to be lower income, of all age groups and types of locality. Prefer shops which are local and offer lowest prices

Benefits of CRM Programmes

The ability to identify customers and their individual profitability, identification of individual customer's specific needs, tailored products to individual requirements, retain customers longer, cross-sell and up-sell, identify new product opportunities, capability to target high value prospects, a more holistic view based on the life time value of a customer

P - O fit

The congruence of organisational and individual values, from the employee perspective (O'Reilly et al., 1991)

Informational beliefs

The connection between an object and attribute is first made by another source (indirect)

Inferential beliefs

The connection between object and attribute results from an inference drawn from a prior belief i.e. go beyond the information given (Fishbein and Ajzen, 1975)

Four categories of online shoppers

The convenience shopper, the variety-seeking shopper, the store-oriented shopper and the balanced buyer (Rohm and Swaminathan, 2004)

Social media

The creation and exchange of user generated content (Kaplan and Haenlein, 2010, p. 61)

Intellectual stimulation

The degree to which a leader encourages his/her subordinates to think of old problems in new ways, to question their own values and beliefs and, when appropriate, those of their leader (Bass et al., 1987). Transformational leaders directly encourage followers to challenge accepted methods and answer their own questions when doing their work

Inspirational motivation

The degree to which the leader articulates a vision that is appealing and inspiring to followers. Inspirational leaders establish and convey high expectations (Bass, 1998) that challenge employees to achieve more than they thought possible

Individualised consideration

The degree to which the leader attends to each follower's needs, "acting as a coach, mentor, teacher, facilitator, confidant and counsellor" (Avolio, 1999, p. 47), suggesting to employees that they respect them and care about their personal situations, instilling a sense of meaning in their work

Idealised influence

The degree to which the leader behaves admirably that cause followers to identify with the leader. It is the leader's ability to develop a vision and to influence others to accept and share that vision (Jung and Avolio, 2000)

Positioning

The deliberate, proactive, interactive process of defining, modifying and monitoring consumer perceptions of a marketable product (Arnott, 1992)

Customer-based brand equity model (CBBE)

The differential effect of brand knowledge on consumer response to the marketing of the brand (Keller, 1993: 8) and is based on the principle of building the brand over a period of time and moving through a number of steps or stages (six) from the base of the pyramid up to the pinnacle

Provider gap 3 (the service performance gap)

The discrepancy between development of customer-driven service standards and actual service performance by company employees

Psychic distance

The distance between the home market and a foreign market resulting from the perception and understanding of cultural and business differences (Evans and Bridson, 2005: 70)

Hedonism

The drivers of behaviour that bring consumers to the marketplace to satisfy their internal needs (Jin and Kim, 2003: 399)

Shopping motivations

The drivers of behaviour that bring customers to the marketplace to satisfy their internal needs (Jin and Kim, 2003: 399)

(Non-monetary costs) Search costs

The effort invested to identify and select from among services you desire

Emotional exhaustion

The employee's perception of his/her work as being the root cause of feelings of emotional overextension and/or exhaustion (Maslach and Jackson, 1981)

Physical evidence

The environment in which the service is delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service

Digital age

The era where a person can exert significant influence on not only their identity but also their behaviour as consumers (Solomon, 2009)

Mutuality

The expectation that by engaging in such close relationships, both parties will gain from the experience in areas such as general competitiveness, profitability and increased sales

Zone of Tolerance

The extent to which customers recognise and are willing to accept this variation. Services are heterogenous and can vary across providers

Demand Based Pricing Strategy

The focus is on the customer and not the company or market. This type of pricing is fixed keeping in mind what the customers are likely to pay for the perceived value offered by the service. Non-monetary costs are considered as these contribute to the perception of value

Oversimplification

The intangibility element makes it difficult to describe a service in words

Mergers

The joining together of two or more companies or organisations to form one larger one

Boundary Spanners

The link between the external customer and environment and internal operations of the organisation

Sustainable supply chain management

The management of raw materials, information and services from the point of origin to the point of consumption and back, focusing on the delivery of value while explicitly addressing social, ethical and environment concerns in the supply chain process

Sustainable Supply Chain Management

The management of raw materials, information and services from the point of origin to the point of consumption and back, focusing on the delivery of value while explicitly addressing social, ethical and environmental concerns in the supply chain process (Ennis, 2015)

Public relations

The management through communication of perceptions and strategic relationships between an organisation and its internal and external stakeholders for mutual benefit and a greater social order (Valin, 2004)

Public Relations

The management, through communication, of perceptions and strategic relationships between an organisation and its internal and external stakeholders for mutual benefit and greater social order (Valin, 2004)

Tourism Carrying Capacity (TCC)

The maximum number of people that may visit a tourist destination at the same time, without causing destruction of the physical, economic, socio-cultural environment and an unacceptable decrease in the quality of visitors' satisfaction (World Tourism Organization [UNWTO], 1981)

Market Place exclusion

The mechanisms through which certain individual and communities are barred from the resources and opportunities provided by the market to other citizens

Operational complexity

The number of component parts brought together under the same brand name, in terms of the number of different services offered, the number of steps in a typical service transaction or the number and/or complexity of products offered in relation to the service

E-servicescape

The online environment factors that exist during service delivery

(CBBE) Feelings (affective)

The second element relates to the ability of the brand to engender feelings such as excitement, happiness, fun, social approval etc. it can be based on the individual reaction or as part of the social desirability and approval of the social set to which the individual belongs

Customisation Bonds

The service provider is attempting to create these type of bonds when it customises the service that is delivered to particular groups of customers: in other words, the provider tailor-makes the service to the needs of the customer

(Strategic Roles of the Servicescape) Socialiser

The servicescape design acts as a perfect socializer between both customers and employees

(Strategic Roles of the Servicescape) Package

The servicescape helps to convey the internal image through its outward appearance

Brand personality

The set of meanings constructed by an observer to describe the "inner" characteristics of another person (Fournier, 1995)

Common misconceptions about pricing

The shopper has rational motives for buying, consumers know the price of products and services, quality determines price, manufacturers can control the price charged by retailers, pricing can be based on fixed and inflexible margin policies, pricing based on competitor strategies is more effective

Service competencies

The skills and knowledge necessary to do the job

Space

The spatial area used by the retailer to present its merchandise and provide access for shoppers

Service science

The study of service systems, which are dynamic value co-creation configurations of resources (people, technology, organisations and shared information) (Maglio & Spohrer, 2008, p.18)

Expectation

The subjective probability that a behaviour will be followed by a particular outcome

Value drivers

The tangible and intangible factors that when acted upon by the organisation lead to an enhancement of competitive advantage (Macdivitt and Wilkinson, 2011)

Active loyalty

The traditional view, where the shopper does not consider any other brands

Channel

The way in which customers interact with an organisation

Category Management

The way of managing retail operations by classifying the assortment of the retailer into categories on the basic of consumer preference, not just on the basis of individual brands or items (Rashid and Matilla, 2011, p. 64) i.e. managing inventory based on categories

(Components of service blueprinting) Physical evidence

These are all the tangibles that customers are exposed to that can influence their quality perceptions

Master Franchisors

These are individuals or organisations that have local knowledge and expertise and are tasked with the challenge of recruiting and training potential franchisees, they may take responsibility for carrying out such visits

Confidence benefits

These benefits comprise feelings of trust or confidence in the provider, along with a sense of reduced anxiety and comfort knowing what to expect

Digital media channels

These channels essentially facilitate information to be stored and transmitted electronically and encoded digitally. Such technologies allow retailers to capture data on shoppers, track purchase patterns and use such information to develop customised messages that can be tailored to each individual

Iron customers

These customers provide the volume needed to utilise the firm's capacity but whose spending levels, loyalty and profitability are not substantial enough for special treatment

(Ethical shoppers) Principled purchasers

These shoppers are characterised by the emphasis they place on ethical behaviour in their day-to-day activities. They are scrupulous in matters such as not taking advantage of mistakes made by retail assistants e.g. undercharging for an item or giving too much change back

Fellow customers

They are present in the service environment and can affect the nature of the service outcome or process. Fellow customers can either enhance or detract from customer satisfaction and perceptions of quality

Value propositions

They are reciprocal promises of value, operating to and from suppliers and customers seeking an equitable exchange (Ballantyne and Varey, 2006)

The importance of employees

They are the service, the organisation in the customer's eyes, the brand and are marketers

The portfolio of channels should be based on the following guidelines:

They should be shopper-centric, reflecting the needs of the customer, they should recognise the fact that shoppers engage in multiple touchpoints with the retailer's value proposition, all of the channels should allow the shopper to engage with the retailer in a seamless and integrated fashion

Brand awareness

This aspect is the building block for developing a strong brand. Without high levels of brand awareness and brand recall, it is virtually impossible to capture a position in the mind of the shopper

Self-oriented brand consumption

This aspect replicates some of the functional and emotional elements but will tend to vary due to the individual's lifestyle and the goals that drive them forward. Three primary motivators contained in this core value include self-actualisation; self-perception enhancement; and self-branding. They reveal that consumers often seek self-actualisation in their experiences with brands and other consumers in a social media community

Emotional brand consumption

This emotional involvement with the brand involves some enjoyable connections e.g. alleviating personal problems or situations; feeling privileged, recognised, and valued by a brand; and escapism and satisfaction of curiosity

Relational brand consumption

This focuses on the level of interaction between the consumer and the brand. In many ways social media shortens the gap between the brander and the individual. It also allows for a degree of personalisation in terms of the level of contact and interaction between both parties

Code of behaviour document

This identifies a number of aspects of sourcing that retailers explicitly take a position on. It guides the way in which they identify, evaluate, select and draw up contracts with suppliers

Self-service

This is the environment in which the customer performs most of the activities and few if any employees are involved e.g. ATMs, cinemas, self-service entertainment such as golf courses and online internet services

(Attracting bargain hunters) Odd pricing

This is the practice of pricing services just below the exact amount to make buyers perceive that they are getting a lower price e.g. haircuts priced at £19.50 rather £20

(Attracting Status Seekers) Skimming pricing

This is where new services are introduced at high prices with large promotional expenditures e.g. new restaurants with celebrity chefs when opening in a new city

(Attracting Bargain Hunters) Penetration

This is where new services are introduced into a market at low prices to stimulate trial and widespread use e.g. online streaming services

The communications mix is made up of three parts:

Traditional - TV, radio, print, billboard, sponsorship, selling, PR; Digital - geo-based apps, beacon technology, tablets, androids; Social media - Twitter, Facebook, LinkedIn, Instagram, YouTube

The communications mix consists of three interlocking elements:

Traditional, digital and social media

Service delivery network (SDN)

Two or more organisations that, in the eyes of the customer, are responsible for the provision of a connected, overall service (Tax et al., 2013, p. 455). It is as an alternative to a service encounter-dominant view of the provision of the customer experience

Traditional media channels

Typical channels that organisations including retailers have used for decades to communicate their message to a target audience. Many of them allow for one-way communication and has a lack of focus and customisation with regard to the message

Service delivery system failures

Unavailable service, unreasonably slow service, other core service failure

The retail loyalty ladder

Unaware customer -> Interested customer -> Regular loyal -> Advocate

Characteristics of an Effective Service Guarantee

Unconditional, meaningful, easy to understand, easy to invoke

Internal customer service audits

Used to implement a culture of internal service quality. Through the audit, internal organisations identify their customers, determine their needs, measure how well they are doing and make improvements

Sales promotion

Used to stimulate a response from shoppers, attracts shoppers, use of banners,, push sales of selected product categories, joint promotions, differentiated promotions, use of information

(Categories of shoppers) Smart shopper

Young urban people, well-educated, like novelty. No preferences over type of shop, will seek good value for money (13% of European population)

Consumer demographic variables that affect their new product acceptance

Younger people tend to be less risk averse and more stimulated to try new products, larger households tend to by heavy buyers and create a greater likelihood for within-household heterogeneity, socioeconomic class with more purchasing power

A customer's individual capital includes...

a customer's personality, knowledge, skills and abilities (Phau and Chang-Chin, 2004)

A qualitative attribute is similar to the competitive attribute except that...

a retailer can afford to achieve less than the competition on this attribute, particularly if it is less relevant to the target market or the low rating on this feature is more than compensated for by the score on other attributes

Green supply chains consider the environmental effects of...

all processes of supply chain from the extraction of raw materials to the final disposal of goods (Emmett and Sood, 2010: 9)

As the monetary value of the product increases, the perceived risks involved in purchasing the product...

also increase (Dowling, 1999)

Customer service ultimately is about...

attracting, retaining and enhancing customer relationships (Sparks, 1992)

Continually investing in customer service does not necessarily lead to...

automatic increases in customer satisfaction

In-store marketing communications at the point of purchase includes...

banners, shelf-edge labels, cart/trolley talkers and augmented reality

Service loyalty has been found to have both...

behavioural and cognitive/attitudinal dimensions (Jones and Taylor, 2007)

The cognition-based component of attitude includes...

belief, judgments, and thoughts associated with an object, whereas the affect-based component includes emotions, feelings, and drives (Edwards, 1990 and McGuire, 1969)

Multiplicity of roles often results in service staff having to pursue...

both operational and marketing goals

Attributes contributing to web brand trust include...

brand name, website design and navigation, information, past experiences and country of origin

Newly introduced private label products are by default at a...

disadvantage, as consumers perceive them to be highly risky

Service line extensions

e.g. adding new menu items in restaurants

Style changes

e.g. revising the company logo

Touch includes...

engagement and interaction, product demonstrations, engagement with a contextual setting e.g. TISO (outdoor experience retailer), combining aroma with engagement

Continually exceeding customer expectations allows a firm the ability to...

enhance customer loyalty, thus providing the firm with a competitive advantage (Zeithaml et al., 2006)

In the Perceived Risk Theory (PRT), the components of perceived risk are...

finance (price), product performance (quality) and physical, privacy and time loss related (Kaplanet al., 1974)

Non-price-oriented promotions include...

free samples, sweepstakes, contests and premium user programmes

Critical areas where the retailer needs to capture information from its customer base in order to facilitate decision-making with regard to customer service strategy are...

frequency of browsing visits, frequency of purchasing visits, average transaction per visit, items purchased, range purchased, product/services purchased/used, satisfaction levels, customer services/facilities used, use of different retail channels, comparison with other retailers visited

Viral marketing allows retailers to...

generate interest, curiosity, excitement, discussion or visits to websites. People share their views, 'spread the word' and generally become wrapped up in the excitement

Developing a service culture is clearly a means of creating and enhancing...

good interactive marketing performance needed for implementing a relationship marketing strategy (Gronroos 1990)

High utilitarian or hedonic value =

high loyalty/loyal customer

Credence services are seen to constitute...

high risk purchases (Zeithaml, 1981), suggesting it is an "important" element of the involvement construct

Customer touchpoints in the purchasing process are...

holistic in nature and involving the customer's cognitive, affective, emotional, social and physical responses to the retailer (Verhoef et al., 2009)

Smell involves...

image associations, creation of artificial aromas e.g. Abercrombie and Fitch, cynical(?), linking to overall cleanliness of the retail outlet, ambient factors like temperature and humidity

A competitive attribute recognises that...

in order to be successful, this attribute is a minimum requirement. On its own, it does not provide any strong differentiating reason why a shopper should visit that particular store

Rintamaki and Kuusela (2007: 624) conclude by suggesting that a customer value proposition should...

increase the benefits and/or decrease the sacrifices that the customer perceives as relevant, build on competencies and resources that the company is able to utilise more effectively than its competitors, be recognisably different (unique) from competition, result in competitive advantage

Customer value propositions should...

increase the benefits and/or decrease the sacrifices that the customer perceives as relevant, build on competencies and resources that the company is able to utilise more effectively than its competitors, be recognisably different (unique) from the competition, result in a competitive advantage

Constant price adjustment can lead to...

increased traffic to the store and increased sales revenue. The danger of this approach lies in its ability to damage the integrity of the brand through constant price discounts and deals

The dimensions of brand personality are...

innovativeness, chaos, conspicuousness, agreeableness and sophistication (Willems et al, 2011)

When demand is high...

it exceeds the organisation's ability to meet it i.e. potential business is lost

Retail formats can be characterised along two dimensions...

merchandise assortment and customer service

The retail marketing mix consists of...

merchandise decision, store format, customer communications and customer services

The service logic is of a...

multidimensional nature. Depending on from which vantage point service is viewed, its content varies

Colour ranges from...

neutral, bright beacon, green environment and cultural interpretations

Omni channels represent a blurring of channels between...

physical and online approaches

Trust is more important for ___ retailers than ___ because of the higher risks involved

online, offline

Threshold attendance is determined not only by...

operating costs (Getz, 1983), but also by visitor-generated revenue

Value =

perceived product benefits + perceived emotional associations - perceived price

Product class determines the level of overall...

perceived risk in the product (Chaudhuri, 1998)

Quality is connected with ___ ___ and concerns the potential failure of a product to meet the expected quality/performance requirements (Kiang et al., 2011)

performance risk

It is suggested that the affective component of attitude is...

post-cognitive (e.g. Edwards, 1990)

Transformational leadership theory is particularly well suited to...

predicting employee engagement (Macey and Schneider, 2008)

Brand equity may be measured as the...

price differential between a given brand and the average market price

Price-oriented promotions include...

price discounts, coupons and rebates

Retailers can wield power if they focus on areas like...

pricing requirements, slotting allowances, unpaid services to retailers and penalties, and compensation for retailer's services (Radaev, 2003)

When using the Internet to purchase products, the fundamental risks are associated with...

privacy issues (Pantano, 2014;6, P, 2002), the degree to which consumers perceive that using the online environment will be secure (Taylor and Strutton, 2010), the inability of buyers to directly interact with the seller, the difficulty of navigation (Forsythe et al., 2006) e.g. the time spent searching for information, uncertainty about the after sales service warrantee compared with more traditional ways of shopping (Hong and Yi, 2012)

Operant resources act upon operand resources to...

produce effects customers use in forming their experience of value

The online purchasing process turns consumers into both...

product buyers and users of web-based technologies (Wu, 2013)

A potentially influential factor of consumer acceptance of new products is...

product novelty

When demand is low...

productive capacity is wasted

If a brand is perceived as something that simply replicates and copies what is already available (often referred to as a 'me-too' product), then consumers will most likely...

revert to their original preferred choice

Employee and customer outcomes in the Service Encounter 2.0 are driven by three factors...

role clarity, ability, motivation

Overall price image can influence the...

shopping behaviour and patronage of shoppers, shoppers adopt a holistic view of price image: the influencing factors should be viewed in their entirety and recognise the interdependent nature of the relationship between variables

Atmospherics include...

sight, sound, touch, taste and smell (Floor, Ko, 2006, p. 273)

Sound involves...

sound of silence, encourage browsing, music tempo, affects mood and movement, muzak and intrusiveness

Taste involves...

stimulating sales, introducing new flavours, creating a relaxed environment, using 'experts' e.g. whisky and wine tasting events, sampling

The elements found to be fundamental for engagement are...

strong leadership, accountability, autonomy, a sense of control over one's environment and opportunities for development (Kular et al., 2008, p. 11).

Private labels generally form a...

subgroup in consumers' memory, with specific categorisation cues, such that previous consumer learning may influence private label innovations

The service-dominant logic suggests that maintaining a service advantage requires...

that the retailer make the customer part of the coproduction of the service offering

The price-related drivers include...

the average price, which reflects how a retailer's prices compare with competitors, the dispersion of prices, reflecting how low and high prices are distributed within a store, price dynamics, which reflect the extent to which prices change within a store over a period of time, price-related policies such as price promises (revisit the price promise example in an earlier section), price-related communications such as price-based advertising

Store image is formed by...

the cues or signals that the individual retailer sends out to its target market. This can take the form of visual cues such as store design, layout, location, merchandising and the various marketing communications tools employed

A customer's social capital requires...

the existence of and the effects resulting from specific and sustained social relationships between consumers

The service recovery paradox is more likely to occur when...

the failure is not considered by the customer to be severe, the customer has not experienced prior failures with the firm, the cause of the failure is viewed as unstable by the customer, the customer perceives that the company had little control over the cause of the failure

Consumers decide whether they intend to proceed with a purchase based upon...

the information available to them (Kim et al., 2008), the degree of influence on provided recommendations and reviews (Wang and Chang, 2013), whether there is a reduction in performance and risks (Suwelack et al., 2011)

Store layout decisions are heavily influenced by...

the nature of the products sold. For instance, supermarkets tend to sell products that are largely utilitarian. This recognises that many of these products are low-involvement purchases e.g. cereal

The utilisation of space has to reflect...

the needs of shoppers and the location of the outlet must reflect a shopping environment that addresses such needs

Price image is unidimensional insofar as it considers...

the overall role of price perceptions

S-DL is viewed as...

the philosophical foundation of service science (Maglio & Spohrer, 2008: p. 19)

Critics of the source credibility and source attractiveness models argue that...

they do not place sufficient emphasis on the need for a strong relationship between the celebrity and the product or brand that is being endorsed. This leads to an alternative view that is referred to as the 'match-up' theory

Wait experience can be measured in several ways:

tolerable waiting time, waiting time and wait proportion

Repetitive operational tasks are the most conducive to...

training by rote, automation, measurement and quality control

Value equals

value-in-use; the value for customers, created by them during their usage of resources. It is created and determined by them

Experience-related variables play different roles in...

visitor satisfaction such as experience value, visited-attraction number, and waiting time

Service encounter

"Where promises are kept or broken and where the proverbial rubber meets the road-sometimes called real time marketing." -Wilson et al. (2013). It is from these encounters how consumers build their perceptions of the service brand and service quality

Involvement construct

"a person's perceived relevance of the object based on inherent needs, values and interests" (Zaichkowsky, 1985, p. 342)

Value generation

A process that includes actions by several actors (service provider, customer and others) and that ultimately leads to value for the customer. It is comprised of three value spheres

Service

"A service is any activity or benefit that one party can offer to another which is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product" -Kotler et al (2002) "Services are all economic activities whose output is not a physical product or construction, is generally consumed at the time it is produced, and provides added value in forms (such as convenience, amusement, timeliness, comfort, or health) that are essentially intangible concerns of its first purchaser." -Wilson et al. (2013)

The Service Encounter

A period of time during which a consumer directly interacts with a service (Shostack, 1985)

Information search

A critical aspect of consumer decision making and can be categorised into either internal or external search (Moorthy et al., 1997)

Value co-creation

A joint process that takes place on a co-creation platform involving e.g. a service provider and a customer, where the service provider's service (production) process and the customer's consumption and value creation process merge into one process of direct interactions

Image

A method of differentiating and representing an entity to its target market. Image is not "product;" nor is it "service"

Service Encounter 2.0

Any customer-company interaction that results from a service system that is comprised of interrelated technologies (either company- or customer-owned), human actors (employees and customers), physical/digital environments and company/customer processes. These encounters range from simple to complex interactions e.g. human-to-technology etc

Provider SL

As service providers, through all their actions and interactions with users (e.g. customers), firms strive to support users' everyday processes in a way that facilitates (or contributes to) users' value creation

Search qualities

Attributes a customer can determine before purchasing a product e.g. clothing, jewellery, furniture

Experience qualities

Attributes that can be discerned only after purchase or during consumption e.g. haircuts, restaurant meals

Experience attributes

Cannot be evaluated before purchase - the consumer will not know how much they will enjoy the food, the service, and the atmosphere until the actual experience

Credence qualities

Characteristics that the consumer may find impossible evaluate even after purchase e.g. car repair, dental treatment, legal services

A provider sphere

Closed to customers, where the service provider compiles resources, including potential value-in-use, to be offered to customers to facilitate their value creation

A customer sphere

Closed to the service provider and where the customers independently create value and may socially co-create value with actors in their ecosystem

Service industries and companies

Companies whose core product is a service

Ways to ensure customers are satisfied

Deliver the promises, improve customer service through feedback and disgruntled/struggling customers, exceeding expectations during service interaction. However, once customers are delighted their expectations are raised, minimise channel switching by increasing self-service channels, cultural attributes and values

Asset Builders

Delivers value through building, marketing, distributing and leasing physical things (physical capital) e.g. traditional retailers, logistics providers, and industrial manufacturers

Network Orchestrators

Delivers value through connecting peers and establishing relationships via a platform (network capital). These peers may sell products or services, build relationships, share advice, give reviews or collaborate e.g. social media businesses, review and sharing platforms

Technology Creators

Delivers value through ideas as they develop and sell intellectual property (intellectual capital) e.g. software, analytics, and pharmaceutical companies

Service Providers

Delivers value through skilled people. Hence, value is mostly created by the company's employees for which they charge customers (human capital) e.g. financial institutions, healthcare organisations, and business consultants

Heterogeneity

Difficult to control, process management, expectation management, service can and does vary due to people e.g. different lecturers

Intangibility

Difficult to display or communicate, cannot protect through patents, difficult to justify prices, make the intangible tangible, create "presence" through physical things, the company brand gives reassurance

Enabler

Employees: help both customers and technology to perform their respective service encounter roles well (Bowen, 2016) Customers: support employees and/or technology in the service encounter

Co-creation platform

Formed when two or more actors' processes, such as a service provider's and a customer's processes, merge into one collaborative, dialogical process, in which the actors actively influence each other's processes and outcomes. A co-creation platform entails only direct interactions

Strategic responses to managing customer perceptions of risk

Free trial (for services with high experience attributes), advertise (helps to visualise), display credentials, use evidence management e.g. furnishing, equipment etc, offer guarantees, encourage visit to service facilities, give customers online access about order status

Personnel

Front stage personnel are like members of a cast; backstage personnel are support production team

Klein (1998) identifies two conditions that hold for experience-products:

Full information on dominant attributes cannot be known without direct experience and information search for dominant attributes is more costly/difficult than direct experience

Perceived risks of purchasing and using services

Functional, financial, temporal, physical, psychological, social, sensory

Credence goods

Goods and services characterised by high levels of information asymmetry where it is the seller who often determines the customer's requirements e.g. legal services, insurance, financial services (Darby and Karni, 1973). Even after product trial and consumption, the consumer may find it difficult to evaluate the purchase (Zeithaml, 1981)

Search attributes

Helps customers evaluate a product before purchase e.g. type of food, location, type of restaurant and price

Search products

Identified as those whose relevant attribute information (e.g., price, quality, performance, dimension, size, colour, style, safety, warranty) can be easily obtained prior to use/purchase

McQuarrie and Munson (1992) proposed that there are two main elements within involvement:

Importance is viewed as the cognitive dimension of the construct, and interest captures the more affective, or emotional elements of involvement

___ ___ is judged to be a "key concomitant of heightened consumer involvement" (McQuarrie and Munson, 1992, p. 109) and the ___ ___ ___ have an impact on information search (Assael, 1998)

Information search, levels of involvement

Social value co-creation

Interactions in the customer sphere between the customer and actors in his or her ecosystem, where such actors, but not the service provider, can influence the customer's value creation

Indirect interactions

Interactions where one actor (e.g. a customer) interacts with a standardised system or product. No merged collaborative, dialogical process occurs, and therefore, the other actor (e.g. a provider of such resources) cannot actively influence customers' value creation. Instead, it interacts indirectly with the customer and this takes place in the customer sphere

Service delivery

Serving customers in a conscientious, responsive, flexible and courteous manner (Parasuraman et al., 1988)

Augmentation (of service employees)

Signifies technology's ability to assist and complement service employees in the service encounter (Marinova et al., 2017) i.e. Intelligence Augmentation (IA)

Direct interactions

Joint processes where two or more actors' actions merge into one collaborative, dialogical process. The actors can be human actors or intelligent systems and products and take place in the joint sphere

Low-contact service

Little or no physical contact with service personnel, contact usually at arm's length through electronic or physical distribution channels, new technologies (e.g. web, self-service technologies) help reduce contact levels

The consequences of consumer dissatisfaction

Lost sales and profits are the major consequence, some dissatisfied consumers will not give the seller a chance to remedy the problem, either as they feel the sell won't be willing or because they may be reluctant to complain in general (this can also relate to cultural/values issue e.g. Starbucks in Australia), it costs five times as much to attract a new customer than it does to retain a current customer

Inseparability

Simultaneous consumption, customer care must be real, service quality, no product to compensate, "Word of mouth", people talk about experience e.g. reviews

Perishability

Means they can't be stored, capacity planning, special promotions

Adequate service level

Minimum acceptable level of service

Challenges posed by services

Most services cannot be inventoried, intangible elements dominate value creation, services are often difficult to visualise and understand, customers may be involved in co-production, people may be part of the service experience, operational inputs and outputs tend to vary more widely, the time factor often assumes great importance, distribution may take place through non-physical channels

Interaction

Mutual or reciprocal action where two or more parties have an effect upon one another. In a business context supplier, customer interactions are for business reasons, and in these contacts, they have opportunities to influence one another's processes

Stages in Consumer Decision Making

Need recognition, information search, evaluation of alternatives, purchase, consumer experience, post-purchase evaluation

A "molecular" model

Offers opportunities for visualisation and management of a total market entity. It reflects the fact that a market entity can be partly tangible and partly intangible, without diminishing the importance of characteristic

Retailer attributes

Perceived value, convenience, order services, reputation and company responsiveness (e.g. information services) (Eastlick and Feinberg, 1999)

Factors influencing customer expectations of service

Personal needs, belief about what is possible, perceived service alternations, situational factors, explicit & implicit service promises, word-of-mouth, past experience, predicted service

The Expanded Marketing Mix

Product, price, promotion, place, people, physical evidence, process

Value proposition concept

Refers to contexts in which the firm delivers value to its customers (Anderson et al., 2006), not, as the SDL suggests, contexts in which the firm cannot deliver value

Network facilitation

Refers to technology acting as an enabler of connections and relationships. Network Orchestrators heavily build on such technologies. Rather than focusing on replacing human employees, these business models seek to use technology as a way to connect multiple entities in the service encounter - both human and technological

Substitution (of service employees)

Reflects the purpose of replacing human input in the service encounter (Marinova et al., 2017)

How do consumers handle perceived risk?

Seek information from respected personal sources, compare service offerings and search for independent reviews and ratings via the Internet, relying on a firm with good reputation, looking for guarantees and warranties, visiting service facilities or going for trials before purchase and examining tangible cues or other physical evidence, asking knowledgeable employees about competing services

Predicted service level

Service level that customer believes firm will actually deliver

Scripts

Specifies the sequences of behaviour for customers and employees

Service facilities

Stage on which drama unfolds, this may change from one act to another

Convenience, Shopping, and Specialty (CSS) goods

The conventional product-classification framework was originally developed by Copeland (1923) and has been prominently used before the web started to become an important shopping medium

Independent value creation

The customer's process of creating value-in-use out of resources in the customer's sphere, which is closed to the service provider. During this process, the service provider cannot actively influence value creation

Value creation

The customer's process of extracting value from the usage of resources. It is the customer's creation of value-in-use. Despite using the expression "value creation", value is not always instrumentally created; it may emerge as value-in-use

Value-in-exchange

The potential value embedded in resources provided by a firm, which, through sales, is realised as real value for the firm. Value-in-exchange is a firm-centric concept, based on labour theory, so it is not used in SL

Value facilitation

The way a service provider contributes to the customer's value creation by offering resources representing potential value-in-use

User SL

Users (e.g. customers) integrate resources acquired from a provider with other necessary resources in their possession and apply knowledge and skills held by them in a process that renders value ("use resources as service")

Value-in-use

Value emerging for or created by the customer during usage, is a key value concept, used to refer to value determined by customers

Desired service level

Wished-for level of service quality that customer believes can and should be delivered

Technology takes a central position in the Service Encounter 2.0, the three key roles are...

augmentation of service employees, substitution of service employees, network-facilitation (i.e. Lamberton & Stephen, 2016)

Services possess high levels of experience and credence properties, which in turn make them...

challenging to evaluate, particularly prior to purchase

Interactions are situations where the interacting parties are involved in...

each other's practices and have opportunities to influence each other

Credence services are the most difficult service offerings for consumers to...

evaluate, before and after purchase, and therefore a better understanding of the main influencers on this process is crucial to service providers and academics in this area

Service is the fundamental basis of ___

exchange

The ___ the value-in-use, the ___ the likelihood that the customer considers buying from the same firm the next time

higher, greater

Sheth (1983) identifies the factors that affect customer patronage preference as...

product types and characteristics, retail-outlet types and attributes, personal characteristics of shoppers, demographics and life-style

The involvement construct is generally recognised as having a...

strong influence on consumer buyer behaviour and is used to classify products in a number of advertising frameworks (Vakratsas and Ambler, 1999)