Services Marketing Cases in Emerging Markets

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1 Services Marketing Cases in Emerging Markets

2 ThiS is a FM Blank Page

3 Sanjit Kumar Roy Dilip S. Mutum Bang Nguyen Editors Services Marketing Cases in Emerging Markets An Asian Perspective

4 Editors Sanjit Kumar Roy Department of Marketing (M263) The University of Western Australia Perth, Australia Dilip S. Mutum Department of Marketing and Advertising Coventry University Business School Coventry, United Kingdom Bang Nguyen Department of Marketing East China University of Science and Technology Shanghai, China ISBN ISBN (ebook) DOI / Library of Congress Control Number: # Springer International Publishing Switzerland 2017 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer International Publishing AG Switzerland

5 Preface Many countries in Asia are making a shift from being the world s manufacturer and transforming into a more service-oriented economy. Service industries in these emerging Asian markets are witnessing rapid growth, and services have become a key value creator in the region. Experts recognize a higher contribution of services from Asia (about 64 %) to the overall world s GDP (The World Fact Book, 2015), and the importance of services to create more differentiation in the firms offerings has been acknowledged. However, the shift to a service economy does not come easy and is fraught with difficulties and challenges. Despite its importance, growing interest, and increased opportunity, along with the challenges and difficulties that come with managing services in an emerging market, there is a lack of real case studies on the issues related to service business in general and of those facing services marketers in particular, especially from Asia. Services Marketing Cases in Emerging Markets intends to fill this void and aims to provide students and academics in business management and marketing with a collection of case studies on contemporary topics in the realms of services marketing and service operations in emerging economies. It explores current issues and practices in Asia, across different areas, countries, and commercial and noncommercial sectors. The case study book is believed to be important and timely in providing a framework for instructors, researchers, and students to understand the service dynamics occurring in these countries. The book serves as an invaluable resource for marketing and business management students requiring insights into the operationalization of services across different geographical areas in Asia. Students will find it interesting to compare and contrast different markets covering important aspects related to services. The book includes long and short real cases with varying complexity in different services sectors. As it would have been difficult to cover all emerging countries due to limited time and resources, the editors of this book selected cases that provide an ongoing dialogue on the three themes of (1) service experience and co-creation, (2) service branding and servicescapes, and (3) transformative services. In combination, these cases cover, among others, banking services, retail, hospitality, social v

6 vi Preface media, airlines, and so on. Common across these cases is the coverage of issues that are unique to the emerging markets in Asia and comprise an interesting mix of theory, research findings, and practices that stimulates academics and students of both marketing and management alike. This case study book is a standalone volume targeted at a general audience but may be used by students, especially targeted at final year undergraduate marketing and MBA students, taking services marketing modules. The book is particularly relevant for modules such as Global Marketing Strategy, International Business, Marketing Management, and other Services Marketing modules at Universities, both in emerging markets and elsewhere. It appeals to a broad audience internationally. Experts, lecturers, researchers, and practitioners have contributed and written fourteen case studies for this book. We are grateful for the contributors insights and for their time and effort in developing these highly interesting, informative, and educational cases. We hope the reader will enjoy the book and that these interesting cases will encourage further discourse in this ever-interesting field of service business in Asia. Perth, Australia Coventry, United Kingdom Shanghai, China Sanjit Kumar Roy Dilip S. Mutum Bang Nguyen

7 Endorsements Services are the foundation of human civilizations. Every market has different needs that must be met with different service solutions. This case book provides an invaluable collection of service cases on emerging markets in Asia. These cases cover the very established topics of service experience, co-creation, branding, and servicescapes and add the very forwardthinking topic of transformative services. Services faculty and service students will be well served by this book. Professor Raymond P. Fisk, Department of Marketing, McCoy College of Business Administration, Texas State University, San Marcos, Texas, USA Asia has experienced tremendous growth of the service sector. This case book is timely to help educate tomorrow s leaders in Asia on service marketing and management. If offers valuable insights and case examples on the management of three contemporary themes service experience and co-creation, branding and servicescapes, and transformative services. Students, academics, and practitioners alike will find this book highly insightful. Professor Jochen Wirtz, Department of Marketing, NUS Business School, National University of Singapore, Singapore This is a timely book. We need real-world cases that make new concepts and theory come alive. Ideas and conceptual models are often difficult to grasp as they go against the mainstream. Service-Dominant (S-D) Logic and IBM s Service Science service are leading the way, but I see them constantly being misinterpreted. More cases can cure this. Dr. Evert Gummesson, Emeritus Professor, Stockholm Business School, Stockholm University, Sweden This book is a direct response to the emerging need for a quality case book on services marketing in Asia which has been witnessing tremendous growth in services arena in recent times. The cases have addressed the contemporary issues of services marketing, are relevant, and are well written. I am sure students and academics interested in services marketing will find the book to be useful. Professor Ali Quazi, School of Management, University of Canberra, ACT, Australia vii

8 viii Endorsements This book on services marketing is timely as businesses are grappling with the what and how of an effective strategy to win the competition in service industries. Lessons from case studies would provide the much needed learning for a richer class room experience for final year undergraduates and MBA students, giving them an early start on dealing with the complexities of managing service businesses. Professor Fon Sim Ong, Faculty of Arts and Social Sciences, The University of Nottingham Malaysia Campus, Nottingham University Business School, Selangor Darul Ehsan, Malaysia

9 Contents Part I Service Experience and Co-creation Introduction to Service Experience and Co-creation... 3 Sanjit Kumar Roy Case Study 1: Co-creating Value with Online Banking Services: The Case of Maybank... 5 Nurul Shahnaz Mahdzan, Amrul Asraf Mohd-Any, and Zalfa Laili Hamzah Case Study 2: Starbucks Philippines: Brewing a Filipino-American Experience Monali Hota and David Newlands Case Study 3: Co-create a Smart Phone Brand with Consumers via Social Media: A Case Study of Xiaomi in China Sophie Yang and Anna Wos Case Study 4: Managing Customer Complaints: The Case of Imperial Orchid Hotels in Thailand Jaywant Singh and Benedetta Crisafulli Case Study 5: Amazon.in: Surviving in a Jungle Sanjit Kumar Roy and Rajdeep Charaborti Part II Service Branding and Servicescapes Introduction to Service Branding and Servicescapes Dilip S. Mutum Case Study 6: Malaysian Airlines Versus AirAsia: Customer Satisfaction, Service Quality and Service Branding Sujana Adapa and Sanjit Kumar Roy Case Study 7: Häagen-Dazs China: The Luxury Icing on the Cream David Newlands and Monali Hota ix

10 x Contents Case Study 8: igaranti: Expanding the Frontiers of Mobile Banking Innovation Selcen Ozturkcan and Deniz Tuncalp Case Study 9: Happy Textile: Is Store Atmosphere Still A Priority? Tjong Budisantoso, Johnny Jermias, and Adrian Bradshaw Case Study 10: Social Media and Customer Engagement at Makemytrip.com Bidyanand Jha and Anita Kshetri Part III Transformative Services Introduction to Transformative Services Sanjit Kumar Roy Case Study 11: Prince Court Medical Centre (PCMC): The Hospital with a 5-Star Hotel-Like Experience and Beyond Amrul Asraf Mohd-Any and Nurul Shahnaz Mahdzan Case Study 12: Indian Armed Forces Disaster Management Services in Kashmir Floods 2014: Operation Megh Rahat A Case of Transformative Service Dipanjan Kumar Dey Case Study 13: Wellbeing Through Travel: High Value-Low Impact Tourism in the Developing Country, Bhutan Raechel Johns and Thinley Namgyal Case Study 14: Reliance Indian Limited (RIL): Growth Through Innovation? Sudeepta Pradhan and Sanjit Kumar Roy Conclusion Sanjit Kumar Roy

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