3. • Apple Incorporate, is an American
multinational company that manufactures,
designs, markets and retails consumer
electronics, appliances and personal
computers.
• Entered the retail industry in 2001
• First retail outlets set in Virginia and
California.
• To date, Apple retail industry has more
than 300 outlets worldwide.

4. • Summary of Issues
-Poor customer services practiced in electronic
consumers retail outlets
-Customer’s perceptions of the brand are formed
through services.
-Apple as the prime example of retail customer service.
-Apple’s physical environment, operations and
supporting services.
• Service Marketing theories:
- Service Marketing Mix & Servicescape

5. The Service Marketing Mix is an expansion of the 4Ps in the marketing mix which includes
People, Physical evidence and Processes.
(Kotler,2000)
-In order to succeed in retail, Apple cannot rely on the 4Ps of alone. Top quality services
requires consideration and research on the additional Ps of the service marketing mix .
-Apple has effectively executed strategies based on the Service Marketing Mix.

6. All human actors that play a part in the service delivery
including customers and employees.
(Boom and Bitner,1981)
Apple trains its retail staff to be customer oriented and
are passionate fans of its products.
The physical surroundings where the service is delivered and
customers and employees interact.
(Boom and Bitner,1981)
Apple stores interior incorporate an open, clean and spacious
concept.
The operations, procedures, mechanisms and flow of activities
where the service is delivered. It is also known as service delivery
and operating systems.
(Boom and Bitner,1981)
Apple incorporates a standardise training operation for all retail staff
and paid close attention to the flow of experience while designing
its stores.

7. pproch customers with a personalised warm welcome
robe politely to understand all the customer’s needs
resent a solution for the customer to take home today
isten for and resolve any issues or concerns.
end with a fond farewell and invitation to return

8. •Out of all the service marketing mixes, Apple ‘s strength lies in the
People element.
•Retailers regardless of industry will eventually evolve their
recruitment methods and instil the values of good customer service
to its retail staff as Apple has done.
•Retail industries will now have to rethink of ways to improve on the
flow of customer experiences which would mean a paradigm shift in
processes and standard operating features and inclusion of new
technology.

9. • The complete physical
Servicescape Framework surroundings where the service is
delivered and customer and
service provider interacts.
Booms and Bitner (1981)
• Influences the perception of the
company before the purchase and
the customer’s response while
experiencing the service.

10. • The 4 Generic Strategic Roles of Servicescape

11. • Servicecape can influence the approach and avoidance behaviour
of customers (Boom and Bitner,1981)
• The 3 important aspects of servicescape includes, include
ambient conditions, layout and functionality; signs, symbols and
artifacts. (Bitner, 1982)

12. •Apple’s approach to its retail servicescape has redefine new standards
for the electronic retail industry.
•In order to compete, other competitors will need to emulate Apple’s
servicescape model.
• In the long-run, Apple’s model may become a standard feature for all
electronic retailers meaning competitors will undergo a paradigm shift
in service strategy planning with customers as the priority
• Industries will change is perception and strategy to include the
general consumers including children and families.

13. • Customers derive more lasting value from
positive experiences than products alone.
•Passionate fans as retail assistants may not be
as effective.
• Apple’s retail service strategy be as effective
once competitors catches up.
• The success of Apple retail stores is not solely
attributed to its services alone.
•Apple’s type of retail model may not appeal to
all market segments.

14. • Apple is willing to invest and innovate in services to
differentiate itself from competitors
•The 2 service theories explored is the services marketing mix
and servicescape. Apple has executed both successfully.
•Apple has set a new retail model and standard for others to
emulate.
•It is an unusual company and unlike other retailers, hence
other retailers should not imitate it blindly.
•The author disagrees with training operations and hiring of
Apple fans.

16. Booms, B.H, and Bitner, M.J (1981), Marketing strategies and organization structures for service firms, in Donnelly, J
and Goerge, W.R (eds), Marketing of Services, Chicago : American Marketing Association, pp. 36
Bitner, Gremler and Zeithaml. (2009) Services Marketing: Integrating Customer Focus Across the Firm. International
Edition. Singapore. McGraw-Hills Company Inc.
Dennings, Steve. Apple’s Retail Success is More than Magic. Retrieved on the 17th of December 2011 from url:
http://www.forbes.com/sites/stevedenning/2011/06/17/apples-retail-stores-more-than-magic/
Fortt, Jon. 6th of December 2011. Positive Signs for Apple Retail. Retrieved on the 17th of December 2011 from
http://www.cnbc.com/id/45569241
Gross, Doug. 18th March 2011. 10 years later, Apple's 'crazy' retail gamble is a hit. Retrieved on 17th of Dcember 2011
fromhttp://articles.cnn.com/2011-05-18/tech/apple.store.anniversary_1_apple-stores-ipad-iphone?_s=PM:TECH
Hodgkins, Kelly. 15th of June 2011. The secrets of Apple's retail success. Retrieved on the 17th of November 2011 from
http://www.tuaw.com/2011/06/15/the-secrets-of-apples-retail-success/
Kotler, P, (2000), Marketing Management Millennium, Edition 10th, New Jersey, Prentice Hall, Inc
Lee, Jennifer (2011) “Apple’s Retail Secrets” SME (November), pp 44 - 46
Martin Scott. 19th of Mary 2011. How Apple Stores Rewrote the Rules of Retailing. Retrieved on the 17th of December
2011 from http://www.usatoday.com/tech/news/2011-05-18-apple-retail-stores_n.htm
Morse, Gardiner. December 2011. Retail Isn’t Broken. Stores Are. An Interview With Ron Johnson. Retrieved on 17th of
December 2011 from http://hbr.org/2011/12/retail-isnt-broken-stores-are/
Useem, Jerry. 8th of March 2007. Apple: America’s Best Retailer. Retrieved on the 17th of December 2011 from
http://money.cnn.com/magazines/fortune/fortune_archive/2007/03/19/8402321/
Weintraub, Arlene. 26th August 2002. High Tech’s Future is in the Toy Chest. Retrieved on 28th of May 2010 from
http://www.businessweek.com/magazine/content/02_34/b3796632.htm