Commercial Services Note Web
-
Upload
severinosonia -
Category
Documents
-
view
214 -
download
0
Transcript of Commercial Services Note Web
-
8/14/2019 Commercial Services Note Web
1/12
BocconiUniversity MasterofScienceinMarketingManagement______________________________________________________________________________________________
_______________________________________________________________________________________Course8009 ChannelMarketing
1
COMMERCIALSERVICES
bySandroCastaldo,SimonaBotti1
NoteoutlineThedynamicmanagementofcustomerservicesprovidedby internationalretailershasstimulated
inmostcountriesafurtherreflectionontheissueofcommercialservices.Thisnote,therefore,aims
at delving into the strategies, features and consequences of the development of commercial
services on the entrepreneurial activity. Hence, commercial services are analyzed commencing
from the conceptsfound in the literatureof servicesmarketingand, especially,ofmarketing in
distributioncompanies.
Theoriginalityofretailproposals,analyzedinthisnotebymeansofInternationalexamples,points
outsome
of
the
limitations
in
the
traditional
services
models
in
literature.
Such
models,
in
fact,
do
notalwaysgrasp thedistinctivefeaturesoftheservicesmixofferedby innovativecompanies,as
they do not include two important dimensions of the analysis, and namely, the degree of
independenceofserviceswithrespecttothecompanyscoreservice,typicallyrepresentedbythe
logisticservicerelatedtotheassortment,andtheir informativeorhedonisticnature. Inourview,
considering these two other dimensions, not only provides a more accurate description of
commercial services, but helps understanding the strategic motivations underlying decisions
regardingthedevelopmentofservicesproper.
Ourassumptionisthat,throughservices,retailcompanieswillnotonlymakethefeaturesoftheir
offer more abstract thus promoting retailers strategies based on companycustomer value
relationshipsbut
they
will
also
better
manage
the
store
environment
in
order
to
positively
influence the customers affective structure and, consequently, behaviour. Services may be
interpreted, infact,asfacilitationtools inthe individualenvironmentrelationship,astheyenable
the individualtoestablishan interactiverelationshipwiththebasicelementsofthepointofsale.
Themodelthatwillbedevelopedinthisnoteaimsatmakingretailersevermoreawareofthefact
thatthechoiceofhowmanyandwhichservicesshouldbeproposedtotheircustomersaffectsthe
features of the store environment, the relationshipwith customers themselves and, eventually,
theirpurchasingbehaviour.
1Thisnoterepresentsapartialtranslationofthechapter2ofthebookRetail&ChannelManagement,byS.Castaldo(ed.),
Egea,
Milano,
2009.
It
has
ben
revised
and
edited
by
Katia
Premazzi.
It
is
intended
only
for
personal
use
by
the
thestudents(attendingandnotattending)thecourseChannelMarketing(code8009),class9,atBocconiUniversityduringtheAcademicYear20092010.ItcannotbediffusedorcitedwithouttheexplicitconsentofboththeAuthors.
-
8/14/2019 Commercial Services Note Web
2/12
BocconiUniversity MasterofScienceinMarketingManagement______________________________________________________________________________________________
_______________________________________________________________________________________Course8009 ChannelMarketing
2
SERVICESANDCOMMERCIALSERVICESServicesServices
marketing
is
connoted
as
an
independent
study
area
characterized
by
the
peculiar
nature
of the researched subject (Car1996a;Cherubini1981;Gronroos1994;Parasuraman,ZeithamlandBerry1988;Podest1983;Sabbadin1997;Vicari1980).Servicesare, in fact,different fromgoods, due to some fundamental features in their production system, which finds its mostsignificant trait in the interaction between the provider and the receiver. An immaterialinteractionbetweensupplyanddemandwhich,actually,determinesthenonrepeatabilityoftheserviceduetothenumerouspersonalandenvironmentalvariablescontributingeverytimetoitsdefinition.Theimpossibilityofreiteratingexactlythefeaturesoftheinteractionistheconstituentoftheheterogeneityandperishabilityofservices.Stillanotheraspect,originallydiscussedbyShostack (1977), refers to the lackofdifferentiation
betweengoods
and
services.
There
is,
instead,
acontinuum
defined
according
to
the
immaterial
degree of products; at their poles there are pure goods and services. Such immateriabilitydegreedependson theabstraction levelofbothcentralandperipheral servicesnecessaryoraccessory (Car 1996a; Car 1996b).Central services are theoneswhichmeet the need for aservicedirectly;peripheralservicessupportthemainactivity,thusenablingaccesstotheserviceitself (necessaryperipheral services)ormaking fruitionmore comfortable (accessoryperipheralservices).Peripheral services,especially theaccessoryones,are important inmarketingas theyenablecompetingcompaniestodifferentiatetheiroffer.
CommercialservicesServicesmarketing literature isa foundation for studieson retailingas thecommercial servicesoldisamixofbasicfeaturesandservicesindifferentproportions(Pellegrini1990,p.32).Thereisstillanongoingdebateonthetypologyofsuchbasicservices.(CastaldoandPremazzi2000).
Afirstgroupofcontributionsfocusesonthecoreservice,carriedoutbyretailcompanies,i.e.thelogisticserviceentailingproximity,stockingandassortment,placingtheremainingactivities inaresidual category. Another group of contributions tends to delve into the issue of residualservices such as catering, product information, advertising, supply credits. Pellegrinis outlook(1990)ishalfwaybetweentheprevioustwo.AccordingtoPellegrini(Table1)servicesfeaturedby
retailersare
logistic,
informative
and
other.
The
basic
components
of
logistic
services
include
proximity,stocking,theextensionoftheopeninghoursandassortmentwidth.Componentsoftheinformative services are, instead, preselection, depth of assortment and direct information.Other services include components such as, for example, aftersale, speed of service andcomfort.
-
8/14/2019 Commercial Services Note Web
3/12
BocconiUniversity MasterofScienceinMarketingManagement______________________________________________________________________________________________
_______________________________________________________________________________________Course8009 ChannelMarketing
3
Table1.Theelementary/basiccomponentsofcommercialserviceinbrick&mortarretailing
Elementary/Basicattributesofcommercialservices Relatedcostsforconsumers
Logistic proximity stockpiling openinghours assortmentwidth
transportcostandtime stockingcost subjectivecostoftime stockingcost
Informative preselection assortmentdepth directinformation
searchingcost
searching
cost
informationcost
Other postsale servicespeedwaitingtime comfort etc.
costsforanalternativemanagement subjectivecostoftime subjectivecostoftime
Source:Pellegrini(1990,p.41,inItalian)
Generallyspeaking,logisticservicesaretheraisondtreofretailcompanies.Inotherwords,theycreate a connection in time and space between the concentrated production and thefragmentedconsumption.Theresidualactivitieshaveagrowingimportanceinmarketing,albeittheydonot represent theoriginalandbasic functionassigned to retailers (Pellegrini1990,p.38).
Inthesubsequentparagraphsaclassificationofcommercialserviceswillbeproposed,stemmingfrom Tordjimans (1982) contribution. The author differentiates services according to the
connectionthey
have
with
the
products
sale,
into
endogenous
and
exogenous
services.
The
former are directly functional to the products commercialization; the latter, instead, generateadditionalconveniencefortheclient(CastaldoandPremazzi2000,p.9).Inourview, servicesshallbedivided into internalandexternal, the formerbeingmoredirectlylinkedtoassortmentandincludingtraditionalservices,someinformativeservicesandother.Thelatterareprovided inamoreautonomous fashionand refermostly to informativeservicesandother(Figure1).
-
8/14/2019 Commercial Services Note Web
4/12
BocconiUniversity MasterofScienceinMarketingManagement______________________________________________________________________________________________
_______________________________________________________________________________________Course8009 ChannelMarketing
4
Figure1. Internalandexternalcommercialservices
Theclassificationofservices into internalandexternal facilitates theunderstandingof themostinnovative trends in retailing, i.e. theextensionof thecoreserviceand thedemand foramoreemotionalshopping.Extensionof thecoreservice (BottiandSoscia1999)has, infact,producedincreasing investments in activities that traditionallywere not performed by retailers, such as
catering,credit,
recreational
services
and
fuel
distribution.
The
attention
to
emotional
shopping
(CastaldoandBotti1999)hasconversely, impliedagradualtransformationofpointsofsale intoplaceswhereonecanexperienceemotions.Assortment,merchandisingandrecreationalservicesareincreasinglybeingusedbyretailersasmeanstomakebrowsingandvisitingstoresapleasantexperience.
EXTERNALSERVICES
=CoreService
INTERNALSERVICES
-
8/14/2019 Commercial Services Note Web
5/12
BocconiUniversity MasterofScienceinMarketingManagement______________________________________________________________________________________________
_______________________________________________________________________________________Course8009 ChannelMarketing
5
InternationalCasesToExemplifyInternalAndExternalCommercialServicesInternalservicesTheprogramknownasfrequentriderspromotedbyCopsHarleyDavidsonanauthorized retailer of Harley Davidsons motorbikes and accessories is anexampleofaninternalservice.Thestoreoffersamotorbikerentalservice.Customerswhoresorttothisservicemorefrequentlyareknownasfrequentriders,andenjoysomeprivilegessuchasbeingexemptedfrommaking aguaranteepaymentandbegrantedlowerrates.In the grocery store, an example of internal service is the catering servicenowadays quite common amongmost retailers.An interesting case is that of
TescoExtra,
where
cakes
can
be
customized,
after
the
purchase,
with
pictures
selectedby the customer.Thesemaybe considered internal servicesbecausethey could not exist independently from the core service, i.e. the sale ofmotorbikesandfoodproducts.
ExternalservicesRecreationalactivitiesofferedinshoppingcentersare,instead,externalservicesas they could well be offered independently from the core logistics orassortmentactivities.
Meadowhall(UK)
runs
aclosed
circuit
TV
station
and
aradio
station
to
entertain
customersastheyshopandrelax.
Baricentro(Spain)staffofferfreedancingclasses.ParqueCorredor(Spain)offerscircussessionsforchildren.AlsocreditservicesofferedbyMigros (Switzerland)andMarks&Spencer (UK)are to be considered as external services. Besides having a bank for coopmembers,Migros runs also an insurance company.Marks & Spencer placesfidelitycardsbeforecreditservices.
Finally,
WalMart
(US)
offers
the
possibility
of
having
a
medical
check
up
and
rent
carsasexternalservices.
Recreationalservices:
theCocaColaOasisin
Meadowhallshoppingcenter
inSheffield,England
-
8/14/2019 Commercial Services Note Web
6/12
BocconiUniversity MasterofScienceinMarketingManagement______________________________________________________________________________________________
_______________________________________________________________________________________Course8009 ChannelMarketing
6
THESTRATEGICIMPORTANCEOFSERVICESINRETAILCOMPANIES
Competition among retailers is increasingly shifting from the level of assortment and internal
servicesto
that
of
external
services.
The increase in the number and range of external services is especially due to intersectorexpansionand toemotionalshoppingand implies findingnewcriteria forformatdefinition.Thetraditionaldefinition identifies the formataspointsofsaleadopting thesamesales technique,thusofferingthesameservice(Spranzi1985,p.31).Actually,theconceptofformatinmodernretailingismuchmorecomplex,asmaybeseeninthecasesdescribedintheboxCommercialservicesandformats.Formatscanactuallyincludestoreswhichareverydifferent,basedonthetypesofservicesoffered.
CommercialServicesandFormatsInternationalCasesTescoExtra isthebannerofachainofEnglishsuperstoresthat,besideshavingthe typical assortment of supermarkets, offers also clothing, stationery andhouseholdgoods ina largesellingsurface. Inthepremisestherearealsoagasstation,afastfoodstore,abankbranchandapostoffice.
This format differs from Kaisers Charlies Farm which is a supermarket, butfocuses mainly on internal services and assortment in the fresh productsdepartment.ThetraditionalformatofaclothingstoredoesnotcoincidewithBoxsoffer.Thisis a store in Zurich where, besides clothing, it is also possible to purchasebicycles,snowboards,skateboardsandhiphopconcerttickets.
-
8/14/2019 Commercial Services Note Web
7/12
BocconiUniversity MasterofScienceinMarketingManagement______________________________________________________________________________________________
_______________________________________________________________________________________Course8009 ChannelMarketing
7
TheexamplesmentionedintheCommercialservicesandformatsboxshowthatanunusualmixofservicesandproductcategories,basedoncustomersneeds,generatestheseformatsandevennewones.Hence,Boxsclienteledoesnotlookforonlyonegarment,butratherseekstomeettheneedsofanumberofrequirementsthatcorrespondtoaspecificlifestyle,i.e.theteenstreetculture.
Anexample
of
definition
of
format
following
asimilar
logic
is
that
of
the
so
called
convenience
stores(seebox).
-
8/14/2019 Commercial Services Note Web
8/12
BocconiUniversity MasterofScienceinMarketingManagement______________________________________________________________________________________________
_______________________________________________________________________________________Course8009 ChannelMarketing
8
FormatsTheExampleofConvenienceStoresConvenience stores should include both Tesco Express and StarMarket
respectivelystores
of
the
Tesco
and
Texaco
stations
and
GB
Express,
the
formatoftheBelgiangroupGB.Actually, inspiteof the fact thatsuchstoreshavequitedifferentassortments,especially in terms of breadth,GB focusesmainly on grocery,whereas TescoExpressandStarMarketofferalsoproductsusefulfortravellers.The latter deliver to the same type of customers, i.e. the timebuyers (Berry1979)whobecauseof timeconstraints resort toemergency smallamountpurchases.GBExpressoffersproductssimilartothoseofTescoMetro,locatedindowntownareas,whosecustomersaremostlysingle,careerconscious individualswithno
timeto
cook
and
often
to
eat.
AssortmentsproposedbyGBExpressandTescoMetroaremainlymadeupofsingle readytoeatportions.Also smallappliancesare sold tobeusedeven inoffices,aswellasproductsnecessarytosolveurgentproblems (i.e.papercupsandplates,candles,lampbulbs,etc.)
Retailersseemorientedtoinvestinginthedevelopmentofexternalservices,andthismightbetheresultofa strategyaimingatgeneratinga storeenvironmentbehaviour fora specific targetofcustomersinordertoinfluencetheirpurchasebehaviours.Accordingtoenvironmentalpsychology(DonovanandRossiter1982;MehrabianandRussell1974)apositiveattitude (approach)oranegativeattitude (avoidance)visvisthestore isdueto theextent in which environmental stimuli act on the affective sphere of the potentialshopper/purchaser.The environment inwhich this behaviour occurs is notmerely the background of purchasersactions,but rather an active elementparticipating in thedefinitionof such actions (Babin and
Darden1995).
Due
to
their
interactive
nature,
services
are,
therefore,
basic
in
ensuring
and
SingleportionproductsproposedbyGBExpress
inBrussels
-
8/14/2019 Commercial Services Note Web
9/12
BocconiUniversity MasterofScienceinMarketingManagement______________________________________________________________________________________________
_______________________________________________________________________________________Course8009 ChannelMarketing
9
conveyingtherelationshipbetweentheenvironmentandthe individual.Purchasersactivatethesurroundingenvironmentthroughservices,anddeterminetowhatextentandhowtheyaretobeexposed to environmental stimuli. In other words, retailers investing in services will providepurchasers with opportunities to generate their own sales environment, customizing therelationshipwiththeofferandincreasingcontroloverpurchasebehaviours.
-
8/14/2019 Commercial Services Note Web
10/12
BocconiUniversity MasterofScienceinMarketingManagement______________________________________________________________________________________________
_______________________________________________________________________________________Course8009 ChannelMarketing
10
IncreasingthearrayofcommercialservicesTheexampleofAmericanGirlPlace
AmericanGirlPlace isachainofstoresatthemomentpresentinmajorNorthAmerican cities, i.e. Chicago, New York and Los Angeles. It sells dolls andaccessories that promote personality development, intellectual interest andimagination inyounggirls.Themain lineofproductsofferedbyAmericanGirlPlace ismadeupofeightdifferentdollsrepresentinggirlsatavariuosimportantmoment of American history. Each dolls has a range of accessories (clothing,furniture,objects,books).Otherproduct lineshavebeen added in 1992. Twonew series of dolls and accessories: one representing different lifestyles and
modernAmerican
girls
favourites;
the
other
one
for
smaller
girls
offers
books,educationalplaysetsandtoysaswellasthenewdancingmouse.The realpeculiarityofAmericanGirlPlaceconsists in thewide rangeof itemsand innovative services. In 1992 the company launched the American GirlMagazine,whoseaimwasthatofenhancinggirlsselfesteem,celebratesuccessstoriesandpromotecreativity.Themagazinedoesnotincludeadvertisements.Ithasapproximately650,000subscribersandisamongthetoptenU.S.magazinesfor children.AmericanGirlPlace alsooffers a lineofbody careproducts andclothingandaccessoriesjustlikethedolls.Insidethestores,fashionshowsareorganized,sothatgirlscanwalkdownthecatwalkandtheirdollsdressedalike.
Otherevents
promoted
by
AmericanGirlPlacearecookingclasses,moviesandshows given in their own theatres, aswell as customized theme parties. The
mostinterestingservicesofferedarethedollshospitalandthehairsalon.Inthedollhospitalbrokendollsordollsrequiringamakeoverare takencareofandafter a couple ofweeks are sent back homewith a hospital gown and an IDbracelet,attimesonawheelchair,withagetwellballoon. Inthehairsalon,specialized stylists treat dolls and girls to new hairdos. And, finally,grandmothers,mothersandgirlscanenjoy lunchorhave tea in therestaurantinsidethestores,obviouslyseatingthedollsonahighchair.
-
8/14/2019 Commercial Services Note Web
11/12
BocconiUniversity MasterofScienceinMarketingManagement______________________________________________________________________________________________
_______________________________________________________________________________________Course8009 ChannelMarketing
11
REFERENCES(mainlyinItalian)BABINB.J.,DARDENW.R.(1995),ConsumerSelfRegulationinaRetailEnvironment,JournalofRetailing,vol.71,n.1,pp.4770.
BERRYL.L.(1979),TheTimebuyingConsumer,JournalofRetailing,vol.55,n.4,pp.5869.
BOTTIS.,SOSCIAI.(1999),Linnovazionedelladistribuzioneeuropea,inValdani,E.,CastaldoS.(acuradi),Euromanagement.ScenaricompetitiviepoliticheaziendaliinunEuropaquasicompiuta,Milano,Egea.
CARA.(1996a),Marketingeprogettazionedeiservizi,Torino,Utet.
CARA.(1996b),Ilcontributodelmarketingdeiserviziallevoluzionedeglistudidimarketing,
Sinergie,n.
40,
maggio
agosto,
pp.
69
93.
CASTALDOS.,BOTTIS.(1999),Ladimensioneemozionaledelloshopping.Unaricercaesplorativasulruolodelpuntodivendita,Economia&Management,n.1,pp.1737.
CASTALDOS.,PREMAZZIK.(2000),Lacreazionedivaloredellintermediazionevirtuale:iservizigeneratidalcommercioelettronico,WorkingPaper,Milano,OsservatoriodiMarketingSDABocconi,Inverno,n.55.
CHERUBINIS.(1981),Ilmarketingdeiservizi,Milano,FrancoAngeli.
DONOVANR.J.,ROSSITERJ.R.(1982),StoreAtmosphere:AnEnvironmentalPsychologyApproach,JournalofRetailing,vol.58,Spring,pp.3457.
GRONROOSC.(1994),Managementemarketingdeiservizi,Isedi,Torino.
MEHRABIANA.,RUSSELJ.A.(1974),AnApproachtoEnvironmentalPsychology,Cambridge(Ma),MITPress.
PARASURAMANA.,ZEITHAMLV.A.,BERRYL.L.(1988),Servqual:AMultipleItemScalefor
MeasuringConsumer
Perceptions
of
Service
Quality,
Journal
of
Retailing,
vol.
64,
n.
1,
pp.
12
40.
PELLEGRINIL.(1988),Servizicommercialieinnovazione:unanotametodologica,Commercio,n.30,pp.625.
PELLEGRINIL.(1990),Economiadelladistribuzionecommerciale,Milano,Egea.
PODESTS.(1983),Ilmarketingdeiservizi:unanalisicritica,Finanza,MarketingeProduzione,n.2,pp.99115.
SABBADINE.
(1997),
Marketing
della
distribuzione
emarketing
integrato,
Milano,
Egea
-
8/14/2019 Commercial Services Note Web
12/12
BocconiUniversity MasterofScienceinMarketingManagement______________________________________________________________________________________________
_______________________________________________________________________________________Course8009 ChannelMarketing
12
SHOSTACKG.L.(1977),BreakingFreefromProductMarketing,JournalofMarketing,vol.41,n.2,pp.7380.
SPRANZIA.(1985),Economiadelcommercioepoliticacommerciale,Milano,FrancoAngeli.
TORDJMANA.
(1982),
Les
services
de
la
distribution,
Fondation
Turner
pour
la
recherche
en
distribution.
VICARIS.(1980),Lestrategiedisviluppodellimpresacommerciale,Giuffr,Milano.