Services Management – Integrating Marketing and Operations Management

Perspectives

PGP Term: V, Academic Year 2019-20

Instructors: Dr. Somnath Chakrabarti and Faculty from Operations Area (Prof S.P.
Singh tentatively – faculty for operations part will be decided by Operations Area)

Total Credit: 1.0 (Dr. Somnath Chakrabarti: 0.50; Chosen Faculty from Operations
Area: 0.50)

Session Duration: 90 min

Prerequisite: The student must have taken at least one of the marketing electives
floated in PGP term IV. The student must not have received any “D” grade either in
any marketing or any operations area core courses in first year

Course Objectives
In recent times, service sector has become a thriving area of activity both
internationally and in India. The primary objective of this course is to expose students
to issues involved in service management. This course has been designed keeping in
mind the fact that that the integration of marketing, operations and human behavior is
recognized as central to effective service management. In this course, key
International and Indian examples of service excellence will be looked at through the
text, lectures and cases. Based on the discussion of the relevant frameworks and in
depth examples, students should be able to apply this knowledge to the different
service sectors.

Class Textbook (Marketing part): Services Marketing: Zeithaml, Bitner, Gremler and
Pandit, Tata McGraw Hill, Latest Edition (for Marketing module)

Course Outline
Session Topics

MARKETING PERSPECTIVE: 10 sessions (Pre Mid Term Part sessions)

01 – Introduction to Services

What are services, Role of services in the economy, The nature of services,
Characteristics of Goods vs. Services

02 - The Gaps Model of Service Quality

The customer gap, The provider gaps, Closing the gaps

03-Consumer Behavior in Services

Search, experience and credence properties; Consumer choice; Consumer

experience; Post experience evaluation; The role of culture

04-Customer Expectation of Services

Meaning and types of service expectations; Factors that influence customer

expectations of service; Issues influencing customers’ service expectations

05– Customer perceptions of Service

Customer perceptions; Customer satisfaction; Service quality; Service encounters

06 – Listening to customers through Research and Building customer relationships

Using marketing research to understand customer expectations; Elements in an

effective services marketing research program; Using marketing research
information; Relationship marketing; Role of Social media

07 - Service recovery

The impact of service failure and recovery; How customers respond to service
failures; Customers’ recovery expectations; Switching versus staying following
service recovery; Service recovery strategies; Service guarantees

08, 09 - Physical Evidence and the Servicescape

Physical Evidence; Types of Servicescapes, Strategic roles of the Servicescape,

Guidelines for physical evidence strategy

10 - Employees’ Role in Service Delivery and Customers’ Role in Service Delivery,

Create a Strong Services Brand

Service culture, The critical role of service employees, Boundary spanning roles,
customer oriented service delivery, The importance of customers in service
cocreation and delivery, Customers’ roles, Strategies for enhancing customer
participation
Marketing Focused Cases (A few of them will be discussed in class and the rest for
reference of students)

Case: The Ritz Carlton Hotel Company (Harvard Business School Case), Source
Code: HBS 9-601-163
Case: Southwest Airlines: In a Different World (Harvard Business School Case),
Source Code: HBS 9-910-419
Case: Starbucks: Delivering Customer Service (Harvard Business School Case),
Source Code: HBS 9-504-016
Case: Exploring Category Benefits for Brand Building: Kaya and the Beauty Care
Market (Indian Institute of Management Bangalore IMB 357)
Case: ICICI Bank’s Credit Card: Journey to Asian Leadership (The University of
Hong Kong-MDI HKU 935)
Case: Motor Cafe: Scaling Up (IVEY case)
Case: Delhi Metro Rail Corporation (A): Delivering Customer Satisfaction (IVEY
case)

Suggested Readings

A Service lens on Value Creation: Marketing’s Role in Achieving Strategic Advantage

– Bettencourt, Lusch and Vargo, California Management Review (Fall 2014)

Building a strong service brand: Lessons from Mayo Clinic, Business Horizons
(2007), Source Code: BH 230

Winning the race of talent in emerging markets (Harvard Business Review, November
2008), Source Code: HBS R0811C

Bringing Open Innovation to Services, MIT Sloan Management Review, 2011, Source
Code: SMR377

Inverting the Organizational Pyramid: Building a Structure of Change, Harvard

Business Press, 2010, ISBN-13:978-1-4221-6005-3, 6001BC

A. Parasuraman, V.A. Zeithaml and L.L. Berry, “SERVQUAL: A Multiple Item Scale
for Measuring Consumer Perceptions of Service Quality,” Journal of Retailing 64
(Spring 1988), pp.12-40

M.J. Bitner, “Servicescapes: The Impact of Physical Surroundings on Customers and

Employees”, Journal of Marketing 56 (April 1992), pp.57-71

M.J. Bitner, “Evaluating Service Encounters: The Effects of Physical Surroundings

and Employee Responses”, Journal of Marketing 54 (April 1990), pp.69-82
D.D. Gremler and K.P. Gwinner, “Customer-Employee Rapport in Service
Relationships”, Journal of Service Rearch 3 (August 2000), pp.82-104

N. Bendapudi and R.P. Leone, “Psychological Implications of Customer Participation

in Co-Production”, Journal of Marketing 67 (January 2003), pp.14-28

S.K. Jain and G. Gupta “Measuring Service Quality: SERVQUAL vs. SERVPERF
Scales”, Vikalpa, Vol. 29, No.2, (April – June 2004)

Nadiri, H., J. Kandampully and K. Hussain “Zone of Tolerance for Banks: A

Diagnostic Model of Service Quality,” The Service Industries Journal, 21 (2009),
pp.1547-564, Vol.29, No.11

F.V. Morgeson, S. Mithas, T.L. Keiningham and L. Aksoy, “An Investigation of the
Cross National Determinants of Customer Satisfaction,” Journal of the Academy of
Marketing Science 39 (April 2011), pp.198-215

Sylvie E. Rolland and G. Parmentier, “The Benefit of Social Media: Bulletin Board
Focus Group as a Tool for Co-Creation”, International Journal of Market Research,
55(6), 2013, pp.809-827

Journals for Reference

Journal of Service Research

Journal of Services Marketing

Additional Textbook for Student Reference

1. Services Marketing: Lovelock, Wirtz and Chatterjee, Pearson Education,

Latest Edition
2. Understanding Services Management: Integrating Marketing, Organizational
Behavior, Operations and Human Resource Management – Edited by William J.
Glynn and James G. Barnes, Latest Edition

Evaluation Parameters for Marketing Part (for Prof Chakrabarti for 50

marks)
Quiz: 12.5 Marks (n-1 quiz marks to be taken) (No provision for make-up quiz)
Mid Term: 15 Marks
Case study: 12.5 Marks (specific cases from this list will be allocated by faculty
for class presentation)
Class Participation: 10 Marks

* Evaluation parameter for Operations area faculty for 50 marks will be provided by
him separately
** End term exam will be handled by Operations area faculty
*** Grade will be determined based out of total 100 marks
 Faculty Credit

Dr. Somnath Chakrabarti : 50%

Faculty Chosen by Operations Area: 50%

Course Policies
1. Responsibility for Course Materials:You are responsible for all material covered
in class. If you are absent, you are responsible for obtaining the information you
missed.
2. Classroom Behavior: We expect you to participate in class activities in a mature
and appropriate manner. Disruptive or otherwise unacceptable behavior will not be
tolerated.
3. Mobile and Laptop Use: Mobiles and laptops are not permitted in the classroom.
I will let you know beforehand if laptop is required for a class. In the class, you
must keep your laptop down unless asked by the instructor.
4. Academic Conduct:All members of the academic community at IIM Kashipur are
expected to practice and uphold standards of academic integrity and honesty.
Academic integrity means representing oneself and one’s work honestly.
Misrepresentation is cheating since it means students are claiming credit for ideas
or work not actually theirs and are thereby seeking a grade that is not actually
earned. Following are some examples of academic dishonesty:
i. Cheating on quizzes and examinations. This includes using materials
such as books and/or notes when not authorized by the instructor, copying
from someone else’s paper, helping someone else copy work, substituting
another’s work as one’s own, theft of exam copies, or other forms of
misconduct on exams.
ii. Plagiarizing the work of others. Plagiarism is using someone else’s work
or ideas without giving that person credit; by doing this students are, in
effect, claiming credit for someone else’s thinking. Whether students have
read or heard the information used, they must document the source of
information. When dealing with written sources, a clear distinction should
be made between quotations (which reproduce information from the source
word-for-word within quotation marks) and paraphrases (which digest the
source of information and produce it in the student’s own words). Both
direct quotations and paraphrases must be documented. Even if students
rephrase, condense or select from another person’s work, the ideas are still
the other person’s, and failure to give credit constitutes misrepresentation
of the student’s actual work and plagiarism of another’s ideas. Buying a
paper or using information from the World Wide Web or Internet without
attribution and handing it in as one’s own work is plagiarism.
iii. Falsifying records or providing misinformation regarding one’s
credentials.
iv. Unauthorized collaboration on computer assignments and
unauthorized access to and use of computer programs, including
 modifying computer files created by others and representing that work as
one’s own.
v. Unless they specifically indicate otherwise, instructors expect individual,
unaided work on homework assignments, exams, lab reports and computer
exercises, and documentation of sources when used. If instructors assign a
special project other than or in addition to exams, such as a research paper,
or original essay or a book review, they intend that work to be completed
for that course only. Students must not submit work completed for a course
taken in the past or for a concurrent course unless they have explicit
permission to do so from both faculty members.

Any academic misconduct will automatically result in a failing grade for the
class and the student will be reported to the committee on academic
misconduct for further disciplinary action.

4. Attendance:As far as I am concerned, you are an adult and it is your decision

whether or not you attend class. However, your decision not to attend a class may
have negative consequences for your class grade. (Please consult PGP Participants’
Handbook for this purpose).
If you decide to attend a class, you must come to the class and take your seat
sufficiently before the beginning of the class time. Under no circumstances you
would be allowed in once the class has started. You are expected to sit through the
class unless you have a prior permission from the instructor to leave the classroom
before the end of the class.
5. Late submission: Any late submission beyond the deadline (even by few
seconds) will result in 0 point. Except in case of emergencies, with a doctor's
note, any questions about late submission will not be entertained.
6. Missed exam: There is no make-up for the missed exams unless the student has
discussed and made an arrangement with the instructor for a valid reason
beforehand. In all other instances, the student must produce a valid doctor's note
for the day the student missed the exam. Such doctor's note must be produced in
the same week the student missed the exam.

Learning Accommodations
To provide equal access to the educational programs and opportunities, IIM Kashipur
is dedicated to providing appropriate accommodations to students with documented
disabilities such as attention deficit-hyperactivity disorders, physical disabilities,
sensory impairments, and psychiatric disorders in order to help them achieve their
academic and personal potential. These academic accommodations are provided to
students at no cost.
Inclusivity Statement
IIM Kashipur believes that diversity and inclusiveness are essential to excellence in
education and innovation. Our community represents a rich variety of backgrounds,
experiences, demographics, and perspectives. IIM Kashipur is committed to fostering
a learning environment where every individual is respected and engaged. To facilitate
 a dynamic and inclusive educational experience, we ask all members of our
community to:
• be open to the perspectives of others
• appreciate the uniqueness of their colleagues
• take advantage of the opportunities to learn from each other
• exchange experiences, values, and beliefs
• communicate in a respectful manner

Instructors: Dr. S P Singh tentatively (Operations part – 50% weightage)

Session Duration: 90 min

Prerequisite: The existing norms of IIM Kashipur

Course Objectives
In recent times, service sector has become a thriving area of activity both internationally and
in India. The primary objective of this course is to expose students to issues involved in
service management. This course has been designed keeping in mind the fact that that the
integration of marketing, operations and human behavior is recognized as central to effective
service management. In this course, key International and Indian examples of service
excellence will be looked at through the text, lectures and cases. Based on the discussion of
the relevant frameworks and in depth examples, students should be able to apply this
knowledge to the different service sectors.

Class Textbook (Operations module): Service Management, J A Fitzsimmons & M J

Fitzsimmons, TMH, ISBN 9780070615667, Latest edition

OPERATIONS PERSPECTIVE

DETAILED COURSE OUTLINE

Session #1: The Role of Services in an Economy
Textbook Readings: Related chapter from the book.

Session #1: L.P. & DEA Models in Services

Textbook Readings: Related chapter from the book.

Session #2 & 3: Service Facility Location

Textbook Readings: Related chapter from the book.

Session #4: Multi Criteria Analysis for Services

Textbook Readings: Related chapter from the book.

Session #5 & 6: Service Facility Layout

Textbook Readings: Related chapter from the book.
Session # 7: Service Supply Relationship & Vehicle Routing
Textbook Readings: Related chapter from the book.

Session #8: Service maintenance

Textbook Readings: Related chapter from the book.

Session #9 & 10: Case study discussion and presentations

Textbook Readings: Related chapter from the book.

Journals for Reference

Journal of Service Research

Course Policies:
The existing policy of IIM Kashipur