Module Handbook Autumn 2016-17 MKT3125 Services Marketing Management Module Leader: DR Louise Boulter

MGT3160 Services Management
Module Leader: Dr Louise Boulter
Module Handbook
Autumn 2016-17
MKT3125 Services
Marketing Management
Module Leader:
Dr Louise Boulter
Module guide
Contents Page
Key information 2
Other important information 3
Overview of module 4-5
Learning resources 6
Statement of student conduct 7
Indicative overview of week on week schedule 8
Assessment information 9-11
Teaching methods & attendance 12
Introduction to Services Marketing Management &

Week on week lectures & Seminars 13-41
Seminar questions 43-71
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Module guide
KEY INFORMATION
Module identification
 Title: MKT3125 Services Marketing Management
 Indicative Duration: Lectures commence during the week of 3 October 2016.

Seminars commence during the week of 10 October 2016.
 Classes Lectures and seminars
Classes check the UniHub for confirmation.)
 Lecture day Fridays from 13.00 – 14.00 in HG19
 Seminar days as follows:
o Tuesdays 5.00 – 7.00 W157 Stephen Donohoe
o Fridays: 4.00 – 6.00pm WG49 Dr Louise Boulter
o Fridays 4.00 – 6.00pm CG09 Stephen Donohoe
o Other seminar times and dates to be confirmed
Module Leader: Dr Louise Boulter
 Office: W104, Hendon
 Office Hours – unless otherwise notified: Mondays 12.00 – 2.00pm held in

W124
 Email: l.boulter@mdx.ac.uk
 Contact details:
Dr Louise Boulter
Senior Lecturer
Middlesex University Business School
International Management and Innovation
The Burroughs
Hendon, London
NW4 4BT
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Module guide
Indicative Key assessment dates
12 December 2016 - 11.00pm Submit assignment 1 via UniHub Turnitin
20 February 2017 – 11.00pm Submit assignment 2 via UniHub Turnitin
10 April 2017 – 11.00pm Submit assignment 3 via Unihub Turnitin
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Module guide
Other Important Information

The material in this handbook is as accurate as possible at the date of production,
however, you will be informed of any major changes in a timely manner. Your
module handbook should be read and used alongside your programme handbook
and the information available to all students on UniHub including the Academic
Regulations and Student Charter. It is essential that you bring this
handbook with you to all seminars, or you ensure that you can
access the handbook via the unihub at seminars
Students must attend all lectures and seminars, except where there are
extenuating circumstances. A register is taken in all lectures and seminars
throughout the duration of this Module. Failure to comply with these requirements
will not only jeopardise your likelihood of gaining a good grade but also a copy of
your attendance will be sent at the end of each week to the Programme Director .
Lectures & Seminars

Lectures typically last for a period of 50 minutes with 5 minutes for questions.
Punctual attendance at lectures is a courtesy, not just to the lectures but also to
fellow students. If you arrive late, by all means attend the class, however, enter
the lecture theatre and take your seat in a professional manner so as not to
disturb other students. Audiences in lectures vary in size, but may be over 100
students. With regard to seminars the seminars represent an opportunity for you
to interact not only with your seminar tutor but also with your peer colleagues. It
is essential that you have read through the material and at least started to think
through some of the key issues that need are being addressed through the
questions that are set. Please bring your handbook and core text to the
seminars.
Anyone arriving later than 10 minutes to a lecture will not be

permitted entry
Please Note
The material in this handbook is accurate at the time of writing – should there be
any changes you will be notified in a timely manner. Should there be any
discrepancy between the handbook and University regulations, then University
regulations take precedence over this handbook.
Assignment submission
See page 8 onwards for details of assignments and submission. It is important to
note that once the assignment deadline has passed, that it is the assignment that
you have finally submitted through the UniHub that will be marked. You will not
have an opportunity to submit a second assignment if you have submitted the
wrong assignment.
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2. OVERVIEW OF THE MODULE

Short code MKT3125
Title Services Marketing Management
Level 6 Undergraduate
Credit Points 30
Aims
This module explores services marketing management from an operations
perspective; it aims to offer an in-depth exploration of services marketing
management, emphasising those concepts, practices and techniques that are
pertinent to service. Students will synthesise and apply previous study of
management and marketing concepts and techniques and relate business theory
to practice through the use of specialised service-sector case studies. Many
students will eventually work in the service sector, and it is hoped that this
module will inspire and shape their career.
Syllabus
Since many students are likely to work in the service sector, the syllabus is organised to be not
only a comprehensive critical account of the service sector but also to inspire and possibly shape
their future careers. Topics covered include:
 Planning the prerequisites for successful service: the concept (customer benefits and
sacrifice matched by product attributes, service characteristics and the service marketing
mix), the system (technology, facilities, human resources and organizational control) and
the process (the series of transformational steps);
 Marketing management in a service context: marketing strategies for service firms;
customer focus; service quality; relationship building; empowerment; cross-functional
working; performance measurement; continuous improvement;
 Techniques for service marketing management: quality gap analysis; yield management;
process analysis; site selection; layout planning.
Learning Outcomes
Knowledge
On completion of this module the successful student will be able to understand and critically
evaluate:
1. The characteristics and challenges of the service sector;
2. The purpose, application and limitations of a range of services marketing concepts,
Theories and techniques
Skills
This module will call for the successful student to:
3. use module material and material from having conducted additional research to prepare an
analytical framework for a set problem.
4. use module material and material from having conducted additional research to select and
use an organisation as an analytical framework to analyse services marketing
management theories
5. use module material and material from having conducted additional research to present
competent, cohesive, and focused answers to management problems.
Learning, Teaching and Assessment Strategy

Formal lectures incorporating an interactive element introduce the key elements of the syllabus;
provide relevant context, and signpost reading materials. Lectures are supported by PowerPoint
presentations. Seminars will provide the forum for group-based case analysis and problem
solving. This module aims to gradually develop student's ability to critically analyse business
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Module guide
cases, emphasising the structured application of theoretical models for problem analysis.
Regular case analysis and feedback is used to provide formative assessment of students;
progress in both understanding theory and developing cognitive skills. Independent learning will
be emphasised, based around MyUniHub materials.
Assessment Scheme
Formative assessment consists of tutor feedback on seminar contributions and regular case
analysis. (Learning Outcomes 1 to 5). Assignments 1 and 2 have the same format, allowing
students to apply and benefit from feedback.
Summative assessment consists of three components, selected in order to ensure students

demonstrate an overall understanding of relevant concepts and techniques as well as the ability
to apply and critique them in appropriate contexts.
i. Individual assignment 1 (15%, week 10 – 2000 words): evaluating the purpose,

applications and limitations of a range of service marketing management concepts,
theories and techniques. (Learning Outcomes 1 and 2)
ii. Individual assignment 2 (35%, week 18 – 2500 words): evaluating the purpose,
applications and limitations of a further range of service marketing management
concepts, theories and techniques in the context of a service organisation selected by
the student. (Learning Outcomes 1 and 2)
iii. Individual assignment 3 (50%, week 23 – 3000 words): a case study based report,
demonstrating the ability to identify problems and apply learning to improve performance
of service marketing management (Learning Outcomes 1 to 5)
Individual assignment 3 must be passed with a minimum mark of 30%.
Assessment Weighting
Coursework (100%)
Learning materials
Essential:
 Johnston. R., Clarke. G., Shulver, M. (2012). Service Operations Management:
Improving Service Delivery (4th Edition), Pearson.
Highly Recommended:
 Lovelock, Ch. Wirtz, J. (2011). Services Marketing: People, Technology,
Strategy, (7th Edition) Pearson.
Recommended
 Fitzsimmons, JA, and Fitzsimmons, MJ, (2006). Service Management, McGraw
Hill
 Van Looy, B, et al., (2003). Services Management, Pitman
Selected papers shall be communicated to students by the Module Leader
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3. LEARNING RESOURCES
Required reading – Core Text Book for this Module
One text has been chosen for this course, containing essential readings and
cases. You must be able to access this textbook every week in order to succeed in
this module:
Johnston. R., Clarke. G., Shulver, M. (2012). Service Operations

Management: Improving Service Delivery (4th Edition), Pearson.
Highly Recommended
Lovelock, C., Wirtz, J. (2011). Services Marketing: People, Technology, Strategy, (7th
Edition) Pearson.
Recommended reading
Recommended reading is advised for those students who are aiming at an upper second
class degree or better.
Journal Articles
Several journal articles are listed in the Schedule, some are “Required reading”. All listed
journal articles are available in the Middlesex University on-line journals.
Lecture Slides
Copies of the main lecture slides used are available from the UniHub for this Module. All
of the material for this Module is copyright and is only to be used for your own education.
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Module guide
4. STATEMENT OF STUDENT CONDUCT

University Regulations: Student Conduct & Discipline Procedure
As a Middlesex student, you are expected to conduct yourself at all times in a
manner which demonstrates respect for the University, your fellow students
and its staff. You are an ambassador for the university, and you are expected
to behave in a way that enhances the reputation of the University and all of
its students and graduates, and that is sensitive to our culturally diverse
environment. You are encouraged, with the support of the University, to
engage actively in the learning process, to be fully committed to your studies
and determined to succeed.
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Module guide
5. INDICATIVE OUTLINE SCHEDULE

Weekly activities
A detailed Schedule for each week follows later in this handbook. Each week
consists of private study (reading and case preparation) a lecture and a seminar.
The following outline programme shows the week-by-week plan for lectures and
seminars. Seminars comprise case discussion. Most cases are in Johnston et al.
(2012).
Week
Week Lecture: Seminar:
Commencing
Introduction to Services Marketing
1 3 Oct 2016 NO SEMINARS THIS WEEK
Management
1. Challenges for Service Managers 2.

2 10 Oct Sky Airways
The Service Concept (on line lecture)
Understanding & Managing Customer

3 17 Oct The Sunningtree Golf Club
Relationships & Building Loyalty
Customer Expectations & Perceptions
4 24 Oct No Seminar
(on-line lecture)
5 31 Oct Managing Service Supply relationships NCSBU
6 7 Nov Assignment One - Review No Seminar
7 14 Nov Designing & Managing Service processes Regional Forensic Science Lab
8 21 Nov Improving Service Process Efficiency Beninhana
Managing Service people (on line Process flow exercise & the Lean
9 28 Nov
lecture) Process (Material given in class)
10 5 Dec Service Resource Utilisation/Capacity Empress Hotel Group
Guest Speaker : Vince Desmond CEO
11 12 Dec No Seminar
CQI, “A career in Quality”
Performance management for Service
12 9 Jan 2016 Medi-Call Personal Alarms
Excellence
Distributing Services through physical
13 16 Jan The Squire Hotel Group
and e-channels (on line lecture)
Prepare Questions from on line
session Distributing Services
Continuous improvement and learning
14 23 Jan through physical and e-channels –
from others
seen seminar section in the
handbook
15 30 Jan Service culture & Strategy – on Line No Seminar
16 6 Feb Private study IDEO - material given in class
17 13 Feb Review Assessment 2 No Seminar
EFQM - a joined up approach for
18 20 Feb Smith & Jones Solicitors
managing services (On line lecture)
19 27 Feb Review lecture for 3rd Assignment No Seminar
20 6 March Q&A re; Third assessment Private Study
21 13 March Guest Speaker TBC No Seminar
22 20 March Assessment 3 final workshop Private Study
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5. ASSESSMENT
Summative Assessment Design
An overall mark of 40% (grade 16) must be achieved to pass the module.
Formative assessment consists of tutor feedback on seminar contributions and regular

case analysis. (Learning Outcomes 1 to 5). Assignments 1 and 2 have a similar format,
allowing students to apply and benefit from feedback.
Summative assessment consists of three components, (you can find a copy of the
assessments on unihub) selected in order to ensure students demonstrate an overall
understanding of relevant concepts and techniques as well as the ability to apply and
critique them in appropriate contexts.
1 Individual assignment 1 (15%, week 10 – 2000 words): evaluating the purpose,

applications and limitations of a range of service marketing management
concepts, theories and techniques. (Learning Outcomes 1 and 2)
2 Individual assignment 2 (35%, week 18 – 2500 words): evaluating the purpose,
applications and limitations of a further range of service marketing management
concepts, theories and techniques in the context of a service organisation
selected by the student. (Learning Outcomes 1 and 2)
3 Individual assignment 3 (50%, week 23 – 3000 words): a case study based
report, demonstrating the ability to identify problems and apply learning to
improve performance of service marketing management (Learning Outcomes 1
to 5)
Each component is marked out of 100. Assignment 3 must be passed with a minimum of
30%.
 First class (grades 1 to 4) – 70% and above

 Upper second class (grades 5 to 8) – 60 to 69%
 Lower second class (grades 9 to 12) – 50 to 59%
 Third class (grades 13 to 16) – 40 to 49%
 Compensatable fail (grades 17 and 18) 30 - to 39%
 Uncompensatable fail (grade 19) 0-29%
 Fail - Grade 20
Submitting work via the UniHub
When you submit work via the UniHub, it will be checked for originality using Turnitin, a
software application that compares your work with sources such as the internet, journals,
books and other students’ submissions from your class and other universities. Turnitin
may take 30 minutes to complete its analysis and once it does you will see a percentage
of work from your assignment which matches other sources and you can access a report
showing sources; this is done “intelligently” so that changing odd words is still recognised
as a match. If you find significant matches, you can amend your assignment and
resubmit it, over-writing previous submissions.
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Module guide
Note that unless you submit your assignment to Turnitin no feedback or grade will
be given to you
See Important Assessment Regulations Section (d) below concerning plagiarism.

Make sure that quotations are correctly punctuated using quotation marks (“”) not
apostrophes; correct quotations will not be recognised as plagiarism although extensive
quotation will limit the credit you receive for original work. Also ensure that referencing
and bibliography is correctly presented. There is information on the UniHub for this
Module that outlines how to reference your research material.
Assessment Feedback
Every effort will be made to let you have feedback through the UniHub. If you
wish to come and see me about your feedback then please make an appointment
during office hours.
Coursework will not be returned to you. These are kept for up to one year, and then
shredded. You must retain a copy of your own work.
Important Assessment Regulations
(a) It is important to meet deadlines for submitting written coursework. Coursework

should be submitted via the UniHub. If coursework is received up to 7 days late it will
be still be marked but you will only get a maximum of 40% (grade 16) for the
component (or less if the work is not of a passing standard). Coursework received
more than 7 days late will not be marked as a first attempt.
If you cannot submit your work in on time then it is important that you apply for a
deferral. The Module Leader cannot grant deferrals it is the University that makes
all deferral decisions. See Section below on Deferrals.
You cannot be given an extension on a coursework deadline. However, a deferral can be

granted in exceptional circumstances, usually medical, and only when a reassessment
opportunity will be available at a future point. If this is necessary, you must apply to the
Assessment Officer in writing, submitting supporting documentation. Deferral means that
course work handed in late may not be marked until the next assessment period. Please
note that self-deferral is not allowed in the Business School.
If you do not either submit coursework within 7 days of the due date or receive a
deferral from the Assessment Office, you will be given 0% for that component,
which means that all the assessment requirements for the module have not been
completed and you will need to complete reassessment in order to pass the module. The
minimum pass grade (16) is the maximum that may be gained for the component if the
reassessment is subsequently completed successfully.
The work presented for assessment must be your own work and written in your own
words. Plagiarism is the representation of another person’s work as your own. To avoid
plagiarism you must reference correctly; passages taken from other sources, including
the internet, must be placed in quotation marks (“”) and correctly cited. Plagiarism does
result in failure of the assignment, the module and other more serious penalties. Please
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refer to the University Guide and Regulations section F on Infringement of Assessment

Regulations – Academic Misconduct for more detailed information about plagiarism and
academic dishonesty.
Where a student is suspected of academic dishonesty the University Regulations on

Infringement of Assessment Regulations – Academic Misconduct will be followed.
After marking, all failing scripts, and a prescribed sample of all other work are moderated
by another member of University staff, then made available for inspection and comment
by an external examiner (usually from another university). Mark totals, data entry and
grade calculation are double checked, then the grades are approved by the formal
Assessment Board. After this point, grades cannot be changed by a module tutor.
An appeal is a request from a student that a decision of an Assessment Board or

Campus Progression Committee should be reviewed because it is believed that an
injustice has occurred. There is no right of appeal against academic judgement. Students
wishing to appeal against a decision of an Assessment Board should refer to the
University Regulations Section on Appeal Regulations and Procedures.
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Module guide
6. TEACHING METHODS AND ATTENDANCE

Preparation for Classes
NB - Always bring your handbook and core text to seminars – hard copies or
ensure that you have access to e-copies of material
Emphasis will be placed on your active involvement. Typically you will have to read set
chapters, articles and cases every week. You will need to write your own notes from the
prescribed reading and ask for clarification from me if required.
Before the lectures, you should ensure that you read through the slides
Seminar time will be largely given over to structured discussion and case analysis. You
are required to prepare the case in advance, to the standard explained in the first lecture.
If for any reason you have not prepared the case in time for your allocated seminar,
attend a later seminar if possible and use the time to prepare. If you are unable to
attend, email the Module Leader ON l.boulter@mdx.ac.uk before the seminar
begins.
Attendance Requirements & Seminar Allocation
The module is designed for learning through participation and because of this attendance
at lectures and seminars is compulsory.
You will be assigned a MKT3125 seminar group through the UniHub and you must
attend this one and no other. The Module Leader cannot change seminar day/date/time
allocations.
Finally, please note that the material in this handbook is as accurate as possible at the
date of production, however, you will be informed of any major changes in a timely
manner. Note if there are any discrepancies between the handbook and University
regulations, then University regulations take precedence over this handbook.
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Introduction to Services Marketing Management
Week 1 – Lecture, No Seminar

STARTSECTION=scope_2.htm= SECTION~
Lecture Objectives for this week
 Introduction to the Module
 Explain what we mean by services marketing management
 Explain the growth of the service sector
 Outline the service context
 Define service
 Identify different types of service and service process
Essential reading – you must read the following material and make your own
notes in advance of this week’s classes:
 CORE TEXT – Johnston et al. (2012) Chapter 1
No seminar this week - this is your opportunity to get organised.
 Familiarise yourself with the module handbook, in particular the

assessment and attendance requirements. Check your timetable. You
may be able to change seminar groups for yourself, using MISIS
drop/add facility.
 Buy a copy of the core text and do this week’s essential reading and
make your own notes. One copy shared between two students seems to
work satisfactorily.
P a g e 14
Week 2 – Lecture on line – The Service Concept
Week 2 Seminar – In Class: Sky Airways

Lecture: Objectives for this week
 Describe some of the key challenges faced by service managers
 Define the service concept
 Demonstrate the power of the service concept as a strategic tool
 Use the notion of focus to define four types of service concept
 Examine how unfocused organizations can gain the benefits of focus
 Johnston et al (2012) Chapter 2 & Chapter 3
Seminar Preparation – before the seminar you must read the following
case:
 Sky Airways – See Chapter 2 Johnston et al. (2012)
and complete the case preparatory question(s) in the Case Analysis Section of
this Handbook.
Self assessment question:
As you prepare your notes, start to draw up your outline answer to this question:
 Explain the term “service concept” as used by Johnston et al (2012).

How does the use of the service concept contribute to the success of a
service organisation?
Recommended Further Reading includes:
 Anderson, Shannon, Lisa Klein Pearo, and Sally K. Widener, (2008), “Drivers of Service
Satisfaction: Linking Customer Satisfaction to the Service Concept and Customer
Characteristics”, Journal of Service Research, 10 (4) 365–381.
 Clark, Graham, Robert Johnston and Michael Shulver (2000), “Exploiting the Service
Concept for Service Design and Development” in Fitzsimmons James., and Fitzsimmons
Mona, (eds), New Service Design, Sage Publications, Thousand Oaks, California, 71–91.
P a g e 15
 De Chernatony, Lesley, Susan Cottam and Susan Segal-Horn, (2006), “Communicating
Service Brands’ Values Internally and Externally”, The Service Industries Journal, 26 (8)
819–836.
 Goldstein, Susan Meyer, Robert Johnston, JoAnn Duffy, and Jay Rao (2002), "The service
concept: the missing link in service design research?" Journal of Operations Management, 20
(2), 121–34.
 Kwortnik, Robert J. and Gary M. Thompson, (2009), “Unifying Service Marketing and
Operations with Service Experience Management”, Journal of Service Research, 11 (4) 389–
406.
 Prahalad, C K and Venkatram Ramaswamy, (2004), The Future of Competition – Co-Creating

Unique Value with Customers, Harvard Business School Press, Boston.
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Week 3 Lecture: Understanding and Managing Customer
Relationships: Building Loyalty
Week 3 – Seminar – In Class: The Sunningtree Golf Club

 Identify and define different types of customer
 Recognize the benefits of retaining valuable customers and identify the

issues in the calculation of customer lifetime values
 Discuss the value and importance of loyal customers
 Explain customer-service organisation relationships
 Identify strategies for retaining loyal customers
 Johnston et al. (2012) Chapter 4
case:
Case study The Sunningtree Golf Club Johnston et al. (2012) Chapter 3.
Complete the case preparatory question(s) in the Case Analysis Section of
this Handbook.
 Why are some customers more valuable than others? What can service
managers do to retain valuable customers?
Anderson, Erin and Sandy D. Jap, (2005), “The Dark Side of Close Relationships”, MIT Sloan
Management Review, 46 (3) 75–82.
Buttle, Francis, (2008), Customer Relationship Management, 2nd edition, Butterworth-

Heinemann.
P a g e 17
Edvardsson, Bo and Tore Strandvik, (2008), “Critical times in business relationships”, European
Business Review, 21 (4) 326–343.
Fruchter, Gila E. and Simon P. Sigue, (2005), Transactions vs. Relationships: What should the
Company Emphasize?, Journal of Service Research, 8(1) 18–36.
Johnston Robert, and Roy Staughton, (2009), “Establishing and Developing Strategic
Relationships – The Role for Operations Managers”, International Journal of Production and
Operations Management, 29 (6) 564–590.
Karten, Naomi, (2004), “With Service Level Agreements, Less is More”, Information Systems
Management, 21 (4) 43–45.
Maister, David H., (2003), Managing the Professional Service Firm, Simon and Schuster, London.
Reichheld, Frederick F., (2006), “The Microeconomics of Customer Relationships”, MIT Sloan
Management Review, 47 (2) 73–78.
Shaw, Colin, (2007), The DNA of Customer Experience, Palgrave Macmillan, Basingstoke
Staughton, Roy, and Robert Johnston, (2005), “Operational Performance Gaps in Business
Relationships”, International Journal of Operations and Production Management, 25 (4) 320–
332.
P a g e 18
Week 4 Lecture: Customer Expectations & Perceptions – On
Line
Week 4 – No Seminar
 Understand Customer expectations and Perceptions
 Explain customer satisfaction and service quality
 Discuss customer expectations and how they are created
 Define customer expectations using the service quality factors
 Discuss how organisation might close the gaps in customer expectations
Recommended Further Reading includes;

Andreassen, Tor Wallin, (2001), “From disgust to delight: Do customers hold a grudge?” Journal
of Service Research,.4 (1), 39–50.
Ding, David Xin, Paul Jen-Hwa Hu, Rohit Verma and Don G. Wardell, (2010), “The Impact of
Service System Design and Flow Experience on Customer Satisfaction in Online Financial
Services”, Journal of Service Research, 13 (1) 96–110.
Dixon, Matthew, Karen Freeman and Nicholas Toman, (2010), “Stop trying to delight your
customers”, Harvard Business Review, July-August, 2–7.
John, Joby, Stephen J. Grove and Raymond P. Fisk, (2006), Improvisation in service
performances: lessons from jazz, Managing Service Quality, 16 (3) 247–268.
Johnston, Robert, (2004), Towards a Better Understanding of Service Excellence”, Managing

Service Quality, 14 (2/3) 129–133.
Nadiri, Halil and Kashif Hussain, (2005), Diagnosing the zone of tolerance for hotel services,
Managing Service Quality, 15 (3) 259–277.
Ojasalo, Jukka, (2006), “Quality for the individual and for the company in the business-to-
business market: Concepts and empirical findings on trade-offs”. The International Journal of
Quality and Reliability Management, 23 (2/3) 162–178.
P a g e 19
Olsen, Line Lervik and Michael D. Johnson, (2003), “Service equity, satisfaction, and loyalty:
From transaction-specific to cumulative evaluations”, Journal of Service Research, 5 (3) 184–
195.
Pollack, Birgit Leisen, (2008), “The nature of service quality and satisfaction: empirical evidence
for the existence of satisfiers and dissatisfiers”, Managing Service Quality, 18 (6) 537–558.
P a g e 20
Week 5: Lecture Managing Service Supply Relationships
Week 5 – Seminar in Class; Northern Breast Screening Unit

 Identify the main types of supply relationships
 Define supply chains, explore service applications and discuss the main
issues in supply chain management
 Understand the use and management of intermediaries
 Identify the main types of supply partnerships and how they can be
managed effectively
 Evaluate the role of service-level agreements
 Johnston et al., Chapter 6
case:
 "Northern County Breast Screening Unit” (Johnston et al. 2012

Chapter 5
this Handbook.
 How can service mangers gain benefits from the use intermediaries and
from disintermediation?
Andreassen, Tor Wallin, (2001), “From disgust to delight: Do customers hold a grudge?” Journal
of Service Research,.4 (1), 39–50.
P a g e 21
Ding, David Xin, Paul Jen-Hwa Hu, Rohit Verma and Don G. Wardell, (2010), “The Impact of
Service System Design and Flow Experience on Customer Satisfaction in Online Financial
Services”, Journal of Service Research, 13 (1) 96–110.
Dixon, Matthew, Karen Freeman and Nicholas Toman, (2010), “Stop trying to delight your
customers”, Harvard Business Review, July-August, 2–7.
John, Joby, Stephen J. Grove and Raymond P. Fisk, (2006), Improvisation in service
performances: lessons from jazz, Managing Service Quality, 16 (3) 247–268.
Johnston, Robert, (2004), Towards a Better Understanding of Service Excellence”, Managing

Service Quality, 14 (2/3) 129–133.
Nadiri, Halil and Kashif Hussain, (2005), Diagnosing the zone of tolerance for hotel services,
Managing Service Quality, 15 (3) 259–277.
Ojasalo, Jukka, (2006), “Quality for the individual and for the company in the business-to-
business market: Concepts and empirical findings on trade-offs”. The International Journal of
Quality and Reliability Management, 23 (2/3) 162–178.
Olsen, Line Lervik and Michael D. Johnson, (2003), “Service equity, satisfaction, and loyalty:
From transaction-specific to cumulative evaluations”, Journal of Service Research, 5 (3) 184–
195.
Pollack, Birgit Leisen, (2008), “The nature of service quality and satisfaction: empirical evidence
for the existence of satisfiers and dissatisfiers”, Managing Service Quality, 18 (6) 537–558.
P a g e 22
Week 6 – Assignment one Review
No Seminar
This week is planned for you to take time to do research for assessment
one.
Objectives
 Get up to date with reading
 Complete assessment
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Week 7: Lecture: Designing and Managing Service
Processes
Week 7 – Seminar in Class: Regional Forensic Science Lab.

 Define service processes and their importance
 Explain the nature of service processes
 An overview of Blueprinting for service process design
 Johnston et al., (2012) Chapter 8
case:
 "The Regional Forensic Science Laboratory” Johnston et al. (2012)

Chapter 6
this Handbook.
 Explain the difference between the terms “commodity processes” and

“capability processes” as used by Johnston and Clark. Is it desirable for all
service organisations to strive to move from “commodity” to “capability”?
Croom, Simon, and Robert Johnston, (2003), “E-Service: Enhancing internal customer service
through e-procurement”, International Journal of Service Industry Management, 14 (5) 539–
555
Croom, Simon, and Robert Johnston, (2006), “Improving user compliance of electronic
procurement systems: An examination of the importance of internal customer service
quality’, International Journal of Value Chain Management, 1 (1) 94–104
Karten, Naomi, (2004), “With Service Level Agreements, Less is More”, Information Systems
Management, 21 (4) 43–45
Sengupta, Kaushik, Daniel R. Heiser, and Lori S. Cook, (2006), “Manufacturing and Service
Supply Chains: A Comparative Analysis”, Journal of Supply Chain Management, 42 (4) 4–15
P a g e 24
Tate, Wendy L., Lisa M. Ellram, and Stephen W. Brown, (2009), “Offshore Outsourcing of
Services: A Stakeholder Perspective”, Journal of Service Research, 12 (1) 56–72
Womack, James P. and Daniel T. Jones, (2005), Lean Consumption, Harvard Business Review, 83
(3) 58–68
P a g e 25
Week 8 Lecture: Improving Service Process Efficiency
Week 8 – Seminar Benihana

 Understanding the concept of Lean Management
 How Lean management is being used to improve process efficiency
 Tools for improving process efficiency
Seminar material read through Benihana case study and

questions
Week 9 Lecture: Managing Service People for Competitive

Advantage
Week 9 – Seminar: Process flow exercise – material handed

out in class
 Discuss the importance of leadership and motivation of service

employees in delivering excellent operations performance
 Describe the pressures on service providers
 Describe how HRM can hire the ‘right’ service people
P a g e 26
Seminar Preparation – Process Flow Exercise
 An exercise will be given to you in class
P a g e 27
Week 10 Lecture: Service Resource Utilisation
Week 10: Seminar: Empress Hotel Group

 Explain how service managers can get the most out of their fixed
resources – capacity management
 Explain how service managers try to ensure that each customer gets
what they want, when they want it
 Describe how to manage bottlenecks and queues
 Show how to deal with capacity peaks – when they enter the “coping
zone”
 Suggest ways in which service managers can improve their resource

utilization
case:
 Empress Hotel Group Johnston et al. (2012) Chapter 10
this Handbook.
 How should service capacity be managed in order to achieve customer

satisfaction, employee satisfaction, and profitability?
Recommended Reading includes:
Bateson, John E. G., (2002), “Are your customers good enough for your service business?”
Academy of Management Executive, 16 (4), 110–120
Harris, Richard, Kim Harris, Steve Baron, (2003), “Theatrical services experiences: Dramatic
script development with employees”, International Journal of Service Industry Management,
14 (2) 184–199
P a g e 28
James, Kim and Graham Clark, (2002), “Service Organisations in transition and anxiety
containment”, Journal of Managerial Psychology, 17 (5) 394–407
Johnston, Robert, and Peter Jones, (2004), “Service Productivity: Towards Understanding the
Relationship between Operational and Customer Productivity”, International Journal of
Productivity and Performance Management, 53 (3) 201–213
Klidas, Antonis, Peter T. van den Berg, Celeste P.M. Wilderom, (2007), “Managing employee
empowerment in luxury hotels in Europe”, International Journal of Service Industry
Management, 18 (1) 70–83
Kong, Mikyoung, and Giri Jogaratnam, (2007), “The influence of culture on perceptions of
service employee behaviour”, Managing Service Quality, 17 (3) 275–297
Meyer, Danny, (2007), Setting the Table, Harper Collins, New York
Ottenbacher, Michael, Juergen Gnoth, Peter Jones, (2006), “Identifying determinants of success in
development of new high contact services: Insights from the hospitality industry“,
International Journal of Service Industry Management, 17 (4) 344-363
Yagil, Dana, (2006), “The relationship of service provider power motivation, empowerment and
burnout to customer satisfaction”, International Journal of Service Industry Management, 17
(3) 258–270
P a g e 29
Week 11 - Guest Speaker: Vince Desmond Executive
Director the Chartered Quality Institute (CQI) “Having a
Quality Career”.
No Seminar
P a g e 30
Week 12: Lecture Performance Management for Service
Excellence
Week 12 – Seminar Medi-call personal alarms

 Identify the importance and purpose of performance management
 Explain the difference between performance measurement, reporting and

management
 Discuss the choice of appropriate performance measures
 Suggest ways in which performance reporting can be achieved
 Investigate performance management
case:
 "Medi-Call Personal Alarm Systems Ltd” (Johnston et al. (2012)

Chapter 11
this Handbook.
Johnston, Robert, and Peter Jones, (2004), “Service Productivity: Towards Understanding the
Relationship between Operational and Customer Productivity”, International Journal of
Productivity and Performance Management, 53 (3) 201–213
Kimes, Sheryl E., and Jochen Wirtz, (2003), “Has revenue management become acceptable?”,
Journal of Service Research, 6 (2) 125–135
Klassen, Kenneth J., and Thomas R. Rohleder, (2001), “Combining operations and marketing to
manage capacity and demand in services”, Service Industries Journal, 21 (2) 1–30
Kwortnik, Robert J. Jr., and Gary M. Thompson, (2009), “Unifying Service Marketing and
Operations With Service Experience Management”, Journal of Service Research, 11 (4) 389–
406
P a g e 31
Pullman, Madeleine.E., and Gary M. Thompson, (2003), “Strategies for integrating capacity with
demand in service networks”, Journal of Service Research, 5 (3) 169–183
Thompson, Gary M., (2011), “Cherry-Picking Customers by Party Size in Restaurants”, Journal of
Service Research, 14 (2) 201–213
P a g e 32
Week 13: Lecture on Line - Distributing Services through
Physical and E-Channels
Week 13 – Seminar: The Squire Hotel Group

 Describe how networks, technology and information are transforming service
 Discuss the management of physical and virtual networks
 Distribution in a Services Context
 Options for Service Delivery
 Place and Time Decisions
 Delivering Services in Cyberspace
 The Role of Intermediaries
 The Challenge of Distribution in Large Domestic Markets
 Johnston et al., (2012) Chapter 7 with reference to ‘What is the role of

technology in developing the customer experience?’
case:
 “The Squire Hotel Group” (Johnston et al., (2012) Chapter 9
and complete the case preparatory question(s) in the Case Analysis Section of this
Handbook
Imai, Masaaki, (2007), Gemba Kaizen: A common sense low cost approach to Management,
McGraw-Hill, New York
Kelly, William, (2007), “Deployment: 7 Stumbling Blocks to Overcome, Six Sigma Forum
Magazine (www.asq.org), August 16–21
P a g e 33
Womack, James P., Daniel T. Jones and Daniel Roos, (2007), The Machine that Changed the
World, Simon & Schuster Ltd
Womack, James P. and Daniel T. Jones, (2003), Lean Thinking, Free Press
P a g e 34
Week 14 Lecture: Continuous Improvement and Learning
from Others
Week 14 –Seminar Prepare Questions from Week 13 on

Line Lecture – see below
 Understand the context and nature of Benchmarking
 How Benchmarking can be used to improve service performance

RTSECTION=scope_2.htm= SECTION~
For the Seminar you must prepare Questions from the on-line lecture which is on
distributing services through e-channels
An entrepreneur is thinking of setting up a new service business (you can

choose any specific business). What advice would you give regarding the
What? How? Where? When? of Service Distribution
P a g e 35
Week 15: Lecture: Service Culture
Week 15 – Seminar: No Seminar this week

 Demonstrate the impact of culture on service delivery
 Describe organizational culture and how to influence it
 Identify types of organisational culture and the implications for service

delivery systems
 Describe four dimensions of national culture
 Describe how organizations might manage cultural change
 Johnston et al. (2012) Chapter16
P a g e 36
Week 16: Lecture: Service Strategy
Week 16 – Seminar: IDEO

 Define what is meant by strategy and identify its key components
 Discuss the use of service as a competitive weapon
 Explain how performance objectives are turned into operational priorities
 Describe strategy formulation and development
 Explore the issues involved in sustaining a strategy
Seminar material shall be handed out in class
P a g e 37
Week 17 Review Assessment Two
P a g e 38
Week 18: Lecture On Line EFQM – A Joined up Approach
for Delivering Excellent Services
Week 18: Seminar Smith & Jones Solicitors

 Identify the importance of cause and effect
 Explain the EFQM Excellence Model – context and criteria
 Describe the difference between Enablers and Results
 Discuss the concept of Excellence
case: Johnston et al (2012) Chapter 15 Smith & Jones Solicitors
P a g e 39
Week 19 – Review of EFQM On Line Lecture in Class Plus
Q&A Session
P a g e 40
Week 20: Guest Speaker TBC
Week 20
case:
 “Benihana comes to London” (see the Case Analysis Section of this

Handbook.
this Handbook.
P a g e 41
Week 21 – Q&A re; Third Assessment
No Seminar
P a g e 42
Week 22 – Private Study
During this time you can progress your third and final
assignment and come to my office to ask any questions that
you may have with regard to the completion of this
assignment.
P a g e 43
SEMINARS
Week 1 – NO SEMINAR THIS WEEK – SEMINARS

COMMENCE IN WEEK 2
P a g e 44
Week 2 Sky Airways
1. (a) Describe Sky’s service product.
(b) How would you rate the importance of each element?
1. Describe the conflicts between managing day-to-day operations, improving the

operation and supporting strategic developments.
2. Evaluate the options suggested by Angela Carter-Smith, Christina Towers, Justin

Maude and David Goh.
P a g e 45
4. If you were Peter Greenwood what would you say to the Board?
P a g e 46
Week 3 The Sunninghill Golf Club
1. What are the service concepts for the members, the society golfer and the wedding function guests?
2. What are the potential conflicts among the service concepts?
P a g e 47
3. What advice can you give to Joe Tidsdale as to how to manage his business in the future?
P a g e 48
P a g e 49
Week 5 North County Breast Screening Unit (NCBSU)
Access Availability Care Communication Competence Courtesy Functionality Reliability Privacy Responsiveness Comfort
Priorities
Nurse 4 4 5 5 5 5 4 5 5 4 4
Radiographer 4 4 5 5 5 4 4 4 4 4 4
Manager 4.5 4.2 3.8 4.2 4.5 4.2 3.8 3.8 4.2 3.45 3.75
Screened p. 4.01 4.12 4.12 4.84 4.8 4.71 4.41 4.59 4.74 4.16 4.06
Diagnosed p. 4.12 4.72 4.92 4.88 4.91 4.61 4.98 4.99 4.91 4.86 4.98
Perceptions
Nurse 3 4 4 4 4 4 3 4 4 3 4
Radiographer 3 2 4 4 4 3 3 3 3 4 3
Manager 4.5 3.2 3.8 4.2 4.6 4.2 4.8 3.8 4.2 2.8 3.75
Screened p. 3.51 4.68 4.68 4.85 4.88 4.91 4.19 4.63 4.35 4.63 4.35
Diagnosed p. 3.62 4.67 4.32 4.51 4.53 4.71 4.55 4.75 4.07 4.21 4.37
P a g e 50
Week 5 North County Breast Screening Unit (NCBSU)
Continued…
Note that where the case mentions ”importance”, we shall be substituting the word “expectations”.
Questions
1. Evaluate the quality of service provided by the NCBSU.
2. What recommendations would you make for improvement?
Detailed questions
1. Analyse the differences in the priorities of the two types of patients.
2. Analyse the differences in the perceptions of the two types of patients.
3 Identify the gaps between the screened patients’ importance rating and their perceived quality level for
each factor.
4 Identify the gaps between the diagnosed patients’ importance rating and their perceived quality level for
each factor.
P a g e 51
5 Which of the three staff members best understood patient priorities?
6 What do your results tell you about improvement priorities for the NCBSU?
7 What recommendations would you make for improvement?
P a g e 52
Gap Analysis – this will help you with the gap analysis
Screened Patients Diagnosed Patients
Most important
factors
(4.5 and over)
Highest Perceptions
(4.5 and over)
Lowest Perceptions
(below 4)
Gaps
(perception-priortity)
P a g e 53
Staff’s view of patient priorities and perception – use the grid below
Nurse Radiographer Manager
Most
important
factors
(4.5 and over)
Highest
Perceptions
(4.5 and over)
Lowest
Perceptions
(below 4)
P a g e 54
P a g e 55
Week 7 Regional Forensic Science Laboratory
General Questions
1 Summarise the problems faced by Michael Tay and the other professionals involved in the collection,
analysis and use of forensic evidence?
2 How could a ‘supply chain approach’ overcome some of the problems?
Detailed Questions
1 Draw out the supply chain showing first, second etc tiers of suppliers and
customers. Identify the ‘commodities’ that are moved through the supply chain. Identify
the weak links in the supply chain.
P a g e 56
2 Summarise the problems faced by Michael Tay and the other professionals
involved in the collection, analysis and use of forensic evidence
3. How could a ‘supply chain approach’ overcome some of the problems?
4. What recommendations would you make for improvement?
P a g e 57
Week 8 Benihana
Rocky Aoki opened his first European restaurant in Swiss Cottage in 1986. It was to be
the first of three units in London. The chain started in New York in 1964 and now there
are over 90 restaurants world-wide. What makes Benihana quite distinct from other
Japanese restaurants is the way in which its chefs cook in front of the customers,
combining culinary and performance arts to create what Benihana advertisements
describe as the "theatre of the table". The Benihana menu, although based on authentic
Japanese cuisine, is far removed from the raw fish associated with a Sushi Bar or
traditional Japanese restaurants. In Benihana the dishes are based on steak, chicken,
prawn, scallops and lobster, cooked on a teppanyaki or griddle.
Each of the dining tables - or hibachi - seats 8 people, around three sides of a
teppanyaki. The design incorporates a chef's workstation that is used for preparing and
cooking the raw ingredients. A typical restaurant occupies a 650 square-metre site and
usually consists of a very large bar, typically with 60-seats, and a restaurant with 14
teppanyaki. The teppanyaki are arranged in 7 pairs, giving a maximum of 112 seats.
Above each pair of teppanyaki is an air conditioning unit to cope with the heat and fumes
produced by the cooking process.
On average only about a quarter of the total floor space is devoted to back of house
areas (kitchen, stores, staff rooms etc). The kitchen itself is extremely small and contains
little more than a rice boiler, stockpot, boiling table, preparation tables and refrigerated
storage. Most customers hear of Benihana through word of mouth recommendation and
many visit on several occasions. Customers usually make telephone reservations in
advance. On arrival they are shown into the bar and they typically wait 30 minutes before
being shown to their table. Tables of 8 people are made up with customers from two or
more groups. Customers normally spend less than 90 minutes at the table before
returning to the bar for coffee. A point of sale system is used to track billing between the
bar and the restaurant, and relay orders to the kitchen.
On busy evenings 7 chefs will be working, but fewer on quiet nights. They pre-portion the
food during the afternoon before service and then cook at the teppanyaki during the meal
periods. Each chef works with a dining room assistant. The assistant takes the orders in
the bar, then after about 15 minutes later escorts the guests to the table. The assistant
serves the drinks, then the salad and soup that are included in all set meals. After the
guests have been seated at the table for about 20 minutes the Chef appears to cook the
Prawn Appetiser on the teppanyaki - again included in all set meals.
Once the guests have finished all the starters, the assistant clears the plates and brings
a trolley with the ingredients for the main courses. The chefs have undergone a 6-month
training period to teach them the "Benihana Way", emphasising how to prepare and
serve food using spectacular knife work and artistic food presentation, as well as
occasional juggling tricks with the utensils. Preparing the prawn appetiser and main
courses takes the chef about 40 minutes in total. Having tidied the teppanyaki, the chef
leaves the guests to finish their meals. About 10 minutes later, once the main courses
have been eaten, the assistant clears the table. A choice of desserts is available,
although this is limited to ice-cream or pineapple. Fifteen minutes later the guests are
escorted back to the bar.
Profitability is very high compared to industry norms. The average spend per customer is
high, but the cost of food and drink relative to price paid is low in comparison with other
restaurant brands with similar prices. Furthermore employee costs are very low, about 12
P a g e 58
% of total sales, including kitchen assistants, dining waitresses, barstaff, and cleaners.
On Friday or Saturday nights up to 350 covers can be served.
1. (a) What sacrifices do Benihana’s customers make?
(b) What benefits do Benihana’s customers achieve?
(c) On what sort of occasions would customers come to Benihana? Are they likely
to come again?
2. (a) What are the activity steps in the service process at Benihana? Start with the
guests entering the bar and end with the guests returning to the bar after the
meal. Use the table on the next page to record the activities and times.
(b) Use the same table to record when the Chef and Waiting Assistant are
occupied.
3. How does Benihana manage to serve so many customers in such a short period
of time?
4. Why are Benihana’s costs so low in comparison with other restaurants?
P a g e 59
Waiting Assistant
Teppanyaki B
Teppanyaki A
Chef
10

20

30

40

50

60

70

80

90

100

110

120

130

140

150

160

170

180

190

200

210

220

230

240

P a g e 60
Week 9 Process Flow Exercise – Material shall be handed
out in class
P a g e 61
Week 10 Empress Hotel Group
1 Why should the managers and employees appreciate the existence of procedures
and routines? What are the disadvantages?
2 What will be the problems in removing these procedures as the organisation

moves from being “compliant” to “adaptive”?
3 What should Davina do in order to help staff become warmer and more
spontaneous?
P a g e 62
P a g e 63
Week 12 Medi-Call Personal Alarms
1. When does Medi-call’s call centre enter the coping zone?
What is the likely impact of this overload on customers and staff?
P a g e 64
2. What strategies do you recommend that Medi-call adopts in busy periods?
What actions would you need to implement them effectively?
3. Do you agree with Medi-call’s philosophy on reassurance calls?
What action do you recommend?
P a g e 65
Week 13 The Squire Hotel
1. Evaluate the performance measures in place at the Squire Group. You may wish
to consider the balance, or mix, of measures and the links between the
performance measures at the various levels in the Squire Group and its corporate
strategy
2. Assess senior managers’ ability to drill down the organisation. Is the senior
management out of touch with reality
3. What improvements would you suggest
Evaluation of Performance Measures
Financial Operational External Development

Group Level
Hotel Level
Restaurant
Level
P a g e 66
Week 14 Distributing services through physical and e-
channels
Listen to on-line session and prepare answers to the

following;
An entrepreneur is thinking of setting up a new service

business (you can choose any specific business). What
advice would you give regarding the
What?
How?
Where?
When?
of Service Distribution
P a g e 67
P a g e 68
Week 16 Seminar: IDEO material handed out in class
P a g e 69
Week 17 Review Assessment Two
Objectives
 Get up to date with reading

 Complete assignments
P a g e 70
Week 18 Smith & Jones, Solicitors
Develop a new service strategy for Smith and Jones. You should consider:
1. The current service concepts(s).
2. What is driving the change of strategy.
3. How could John differentiate his firm from the competition?
4. What changes would he need to make to the operation?
P a g e 71
Week 19 No Seminar
P a g e 72
Week 20 No Seminar
P a g e 73

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Module Handbook Autumn 2016-17 MKT3125 Services Marketing Management Module Leader: DR Louise Boulter

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MGT3160 Services Management

Module Leader: Dr Louise Boulter

Other important information 3

Overview of module 4-5

Statement of student conduct 7

Indicative overview of week on week schedule 8

Assessment information 9-11

Teaching methods & attendance 12

Introduction to Services Marketing Management &

Seminar questions 43-71

 Title: MKT3125 Services Marketing Management

 Indicative Duration: Lectures commence during the week of 3 October 2016.

 Classes Lectures and seminars

Classes check the UniHub for confirmation.)

 Lecture day Fridays from 13.00 – 14.00 in HG19

 Seminar days as follows:

o Tuesdays 5.00 – 7.00 W157 Stephen Donohoe

o Fridays: 4.00 – 6.00pm WG49 Dr Louise Boulter

o Fridays 4.00 – 6.00pm CG09 Stephen Donohoe

o Other seminar times and dates to be confirmed

Module Leader: Dr Louise Boulter

 Office: W104, Hendon

 Office Hours – unless otherwise notified: Mondays 12.00 – 2.00pm held in

Indicative Key assessment dates

12 December 2016 - 11.00pm Submit assignment 1 via UniHub Turnitin

20 February 2017 – 11.00pm Submit assignment 2 via UniHub Turnitin

10 April 2017 – 11.00pm Submit assignment 3 via Unihub Turnitin

Other Important Information

Lectures & Seminars

Anyone arriving later than 10 minutes to a lecture will not be

2. OVERVIEW OF THE MODULE

Learning, Teaching and Assessment Strategy

Summative assessment consists of three components, selected in order to ensure students

i. Individual assignment 1 (15%, week 10 – 2000 words): evaluating the purpose,

Individual assignment 3 must be passed with a minimum mark of 30%.

Individual assignment 3 must be passed with a minimum mark of 30%.

Selected papers shall be communicated to students by the Module Leader

Johnston. R., Clarke. G., Shulver, M. (2012). Service Operations

4. STATEMENT OF STUDENT CONDUCT

5. INDICATIVE OUTLINE SCHEDULE

1. Challenges for Service Managers 2.

Understanding & Managing Customer

Formative assessment consists of tutor feedback on seminar contributions and regular

1 Individual assignment 1 (15%, week 10 – 2000 words): evaluating the purpose,

Individual assignment 3 must be passed with a minimum mark of 30%.

 First class (grades 1 to 4) – 70% and above

Submitting work via the UniHub

See Important Assessment Regulations Section (d) below concerning plagiarism.

Important Assessment Regulations

(a) It is important to meet deadlines for submitting written coursework. Coursework

You cannot be given an extension on a coursework deadline. However, a deferral can be

refer to the University Guide and Regulations section F on Infringement of Assessment

Where a student is suspected of academic dishonesty the University Regulations on

An appeal is a request from a student that a decision of an Assessment Board or

6. TEACHING METHODS AND ATTENDANCE

Attendance Requirements & Seminar Allocation

Week 1 – Lecture, No Seminar

Lecture Objectives for this week

 Introduction to the Module

 Explain what we mean by services marketing management

 Explain the growth of the service sector

 Outline the service context

 Identify different types of service and service process