This document discusses customer satisfaction and loyalty levels. It describes three zones: the defection zone with low satisfaction levels where customers will easily switch, the affection zone with intermediate satisfaction where customers may switch for a better option, and the indifference zone with very high satisfaction where customers are fiercely loyal. It also discusses the importance of integrated marketing communications and delivering consistent messaging across all channels to avoid confusing customers. Positioning strategies are discussed as distinguishing a brand from competitors through clear messaging about the company's value proposition.

1. Ref : Christopher Lovelock

3. The satisfaction – loyalty relation falls into 3
zones :
Defection Zone
Affection Zone
Indifference Zone

4. Zone of defection occurs at lower satisfaction
levels. Customers will switch unless switching
costs are high or there are no viable
alternatives. Extreme dissatisfaction can
make customers terrorists who will provide
abundant negative word of mouth publicity.

5. This is for intermediate satisfaction levels.
Customers are willing to switch if a better
alternative is found.

6. Very high satisfaction levels
Customers fiercely loyal
Customers who praise the firm in public and
refer others to the firm and are most loyal are
called as Apostles.

8. Website + on line marketing activities were
divorced from other marketing activities.
This led to conflicting messages to consumer.
Consumer is confused – no clear idea about
the firm’s positioning strategy and value
proposition.

9. Newspaper brochure
Actual experience at store – unaware staff

10. Have you ever seen a new, exciting service
promotion being touted at a firm’s website
only to find when you visited the branch
office that the counter staff are unaware of
the promotion and could not sell.
With so many channels delivering messages to
customers & prospects, the firms have to
adopt Integrated Marketing Communications
Strategy.

11. A firm’s various media should deliver the
same messages.
Communications from different media and
communication approaches – all become part
of a single message about the services.
New positions – Marketing Communications

12. Ambient conditions – Music, scents, colors
Spatial layout
Functionality
Signs, symbols, artifacts'
Each dimension can influence customer
responses.

13. In service industries, most explicit form of
positioning strategy based on several price-based
classes of service concept, each will
have a distinctive level of service
performance.
Eg. Airlines - Business Class, Economy Class.
Positioning distinguishes a brand from its
competitors.

14. He has distilled the essence of positioning as
Company must establish a position in the minds of its
targeted customers.
Position must give a single and consistent message.
Position must set a company apart from its competitors.
Company must focus on efforts – a company cannot be all
things to all people.

15. See Figure
Pricing Strategy

16. Service environments
Relate to style and appearance of physical
surroundings and other experiences of
customers at service delivery sites.
Once they are designed & built, service
environments are not easy to change.
Physical environments shape feelings, emotions
and reactions in customers and employees.
For Resort Hotels, servicescapes form a core part
of value proposition.
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