Marketing Management

yazeed1321

Grewal_8e_Ch13.pdf

Home >Business & Finance homework help >Management homework help >Marketing Management

Because learning changes everything.®

Chapter 13

Services: The Intangible

Product

Learning Objectives

Learning Objective 13.1 Describe how the marketing of

services differs from the marketing of products.

Learning Objective 13.2 Discuss the four gaps in the

Service Gaps Model.

Learning Objective 13.3 Examine the five service quality

dimensions.

Learning Objective 13.4 Explain the zone of tolerance.

Learning Objective 13.5 Identify three service recovery

strategies.

Service

Any intangible offering

that involves a deed,

performance, or effort

that cannot be

physically possessed.

By providing good

customer service, firms

add value to their

products and services.

Pro Ipad on display at the Apple Store in Bologna, Spain.

Shutterstock / PriceM 4

The Service-Product Continuum

Doctor Dry cleaner Restaurant

Grocery store

These photos illustrate the continuum from

a pure service to a pure good. Most

offerings lie somewhere in the middle and

include some service and some good (i.e.,

a hybrid of the two).

Left: Viacheslav Iakobchuk/Alamy Stock Photo; Middle: McGraw-Hill Global Education Holdings, LLC; Right: Jacob Lund/Shutterstock; Bottom: Jeff Greenough/Blend Images/Getty Images 5

Economic Importance of Service

Access the text alternative for slide images.

Services Marketing Differs from Product Marketing

EXHIBIT 13.2 Core Differences between Services and Goods

Intangible

Services cannot be

touched, tasted, or

seen.

Requires using cues to

aid customers.

Atmosphere is important

to convey value.

Images are used to

convey benefit of value.

Because it is difficult to show a service, Amusement

park owners evoke images in their advertising of

happy families and friends enjoying a ride at one of

their parks.

Shutterstock / bom 8

Inseparable Production and Consumption

Production and

consumption are

simultaneous.

Little opportunity for a

consumer to test a

service before use.

Lower risk by offering

guarantees or

warranties.

Heterogeneous

The more humans are needed to provide a service, the more likely there is to be heterogeneity or variability in the service’s quality.

Solutions

• Technology.

• Training.

• Automation.

sonya etchison/Shutterstock 10

Perishable

Services are perishable

in that they cannot be

stored for use in the

future.

Ski areas, airlines,

cruise ships, movie

theaters, and

restaurants must find

ways to deal with the

challenges of

perishability.

spinout/Getty Images 11

PROGRESS CHECK (1 of 3)

1.What are the four marketing elements that

distinguish services from products?

2.Why can’t we separate firms into just service or

just product sellers?

Providing Great Service: The Service Gaps Model EXHIBIT 13.3 Service Gaps Model for Improving Retail Service Quality

Sources: Valarie Zeithaml, A. Parasuraman, and Leonard Berry, Delivering Quality Customer Service. (New York: Free Press, 1990);

Valarie Zeithaml, Leonard Berry, and A. Parasuraman, “Communication and Control Processes in the Delivery of Service Quality,”

Journal of Marketing 52, no. 2 (April 1988), 35-48.

Access the text alternative for slide images.

Knowledge Gap: Understanding Customer Expectations

Access the text alternative for slide images.

Understanding Customer Expectations

Expectations are based

on knowledge and

experience.

Expectations vary

according to type of

service.

Expectations vary

depending on the

situation.

Nikada/Getty Images 15

Evaluating Service Quality Using Well- Established Marketing Metrics

EXHIBIT 13.4 Dimensions of Service Quality

Access the text alternative for slide images.

Marketing Research: Understanding Customers

Voice-of-customer (VOC) program: Collects

customer inputs and integrates them into

managerial decisions.

Zone of tolerance: Refers to the area between

customers’ expectations regarding their desired

service and the minimum level of acceptable

service.

Zone of Tolerance Used to Measure How Well Firms Perform on the Five Service Quality Dimensions

Access the text alternative for slide images.

Exhibit 13.5: Customers’ Evaluation of Service Quality for Lou’s Local Diner

EXHIBIT 13.5 Customers’ Evaluation of Service Quality

Access the text alternative for slide images.

The Standards Gap: Setting Service Standards

Difference between the

firm’s perceptions of

customer expectations

and the service

standards it sets.

Need to set standards

for quality.

Develop systems to

ensure the standards

are met.

UpperCut Images/SuperStock 20

The Delivery Gap: Delivering Service Quality

Empowering Service Providers

Allowing employees to

make decisions about

how service is provided

to customers.

Purestock/SuperStock 22

Support and Incentives for Employees

Access the text alternative for slide images.

Use of Technology

EXHIBIT 13.6 How Technology Is Augmenting the Human Effort

Access the text alternative for slide images.

McGraw-Hill Global Education Holdings, LLC 24

Communications Gap Difference between the Actual Service Provided and

the Service the Firm Promises

Manage customer

expectations.

Promise only what you

can deliver.

Communicate service

expectations.

Shutterstock/ALPA PROD 25

Service Quality, Customer Satisfaction, and Loyalty

Good service quality leads to satisfied and loyal

customers.

Postpurchase Evaluation leads to satisfaction,

dissonance, or loyalty.

PROGRESS CHECK (2 of 3)

1.Explain the four service gaps identified by the

Service Gaps Model.

2.List at least two ways to overcome each of the

four service gaps.

Service Recovery

Listening to the Customers and Involving Them in Service Recovery

Customers can get

emotional over a service

failure.

Often customers just

want someone to listen.

leaf/123RF 29

Finding a Fair Solution

Distributive fairness.

Procedural fairness.

Andriy Popov/123RF 30

Resolving Problems Quickly

The longer it takes to resolve service failure, the

more irritated the customer will become and the

more people the customer will tell.

It is in the firm’s best interest to solve problems

quickly.

PROGRESS CHECK (3 of 3)

1.Why is service recovery so important to

companies?

2.What can companies do to recover from a

service failure?

Because learning changes everything.®

www.mheducation.com