Service Marketing Strategies for Small and Medium Enterprises - Advances in Business Strategy and Competitive Advantage
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9781522578918, 9781522578925

This chapter aims to describe relationships strategies that manager need to practice in order to establish customer-oriented service system. Therefore, the chapter provides a structural model derived from literature review and depth interview from depth interview of 10 customers and 5 managers of 5 auto repair shops. In line with that, the current chapter proposes four propositions in regards to effective relationship developing strategies for the SME. The findings revealed that ethical practice, customer's orientation, length of relationship, customer's support services are significantly influence firm's relationship strategies. In addition, trust factor play a mediating role among the relationships. The chapter can help to predict the quality of service perceived by the customers by using relationship strategies, which may be similar in other markets with similar characteristics.


Interactions between customers and service providers are apparent phenomena. For service enterprise in context of SME, the front-line employee role is an important source of differentiation between the service and achieved competitive advantage. The process of employee behavior towards customers significantly influences the firm's profitability. Some of these encounters are routine, but many have not been explored previously, particularly those in service settings. This chapter introduces various theories and propositions of successful service encounters that aim to interpret the process through which service encounters may seem most appropriate and affect customers and employees.


This chapter explores the concept and planning of integrated marketing communication (IMC) in the context of the SME environment. The chapter explains the communication process in SME context along with above-the-line, below-the-line, through-the-line channels and different communication tools. Relevant examples and empirical study are addressed in this chapter, and a proper guideline of IMC in the field of SME for the very first time in the area of service marketing is developed. Policymakers, entrepreneurs, and even academicians will get the insights and impactful ideas from this SME context IMC study.


Despite their importance as the largest contributor to the economic growth of a country, many SMEs fall behind in attaining customer satisfaction. This can be as a result of the gap that exists between expectations of customers and the deliverables by the SME providers. In the previous chapter, the authors explained the role of service quality via SERVQUAL and the GAP model. This chapter will, therefore, extend the argument by providing insights into the importance of qualitative research to enhance the services provided by SMEs in order to minimize this “GAP.” The chapter first illustrates the service blueprint to highlight the importance of service design to carry out the business. Later, various qualitative studies undertaken in service marketing discipline are highlighted. Using a qualitative approach, two separate studies (i.e., focus group studies) were conducted involving 10 SME providers and 10 SME consumers in the automotive industry (i.e., used car sales showroom). The FGDs provided insights into identifying the critical incidents of success (and or failure) of these SMEs.


In previous chapters, the authors explained small and medium size enterprises (SMEs) services and customer expectations in the context of a developing country. In this chapter, they focus on service quality, customer satisfaction and marketing implication especially in the context of SME. In order to address the service quality and customer satisfaction appropriately, qualitative research is conducted along with an extensive literature review. The study shows perceived service quality depends on functional and technical quality whereas service quality leads to customer satisfaction, and sometimes this relation is mediated through emotion. The study also reveals the value innovation factor as a moderator which strengthens the relationship between service quality and customer satisfaction in the context of SME. Details of the marketing implication have also been addressed appropriately in this chapter.


The chapter seeks to provide insight into service quality by illustrating influential models in service marketing discipline: SERVQUAL and GAP model. Moreover, the authors provide literature support of both SERVQUAL and GAP model by inducing their evolution, usage, and limitations. The authors undertook qualitative research on 10 SMEs to understand the gap between consumers' expectations and service delivery. The finding indicates experience economy as a mediating factor in minimizing gaps between expectations and behavior intention on consumers. Moreover, after conducting 30 documented observations of provider-customer interactions, it was also revealed that the role of empathy plays a vital part in moderating the components (dimensions) of service quality. The authors then provide a conceptual framework based on the results revealed. As the research was conducted via qualitative approach, the limitations of the study center around the small sample size used and lack of empirical procedure, which the authors suggest be conducted as avenues of future study.


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