1. 13-1
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CHAPTER
Services: The
Intangible Product
13
McGraw-Hill/Irwin Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.

2. 13-2
L E A R N I N G O B J E C T I V E S
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Describe how the marketing of services
differs from the marketing of products.
Discuss the four gaps in the Service Gap
Model.
Examine the five service quality dimensions.
Explain the zone of tolerance.
Identify three service recovery strategies.
Services: The Intangible Product
LO1
LO2
LO3
LO4
LO5

3. 13-3
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Services Marketing Differs
from Product Marketing
Factors
differentiating
services from
goods
Intangible
Heterogeneous
Perishable
Inseparable

4. 13-4
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Intangible
 Requires using cues
to aid customers
 Atmosphere is
important to convey
value
 Images are used to
convey benefit of
value
©Mark Richards/PhotoEdit.

5. 13-5
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Inseparable Production and Consumption
 Production and
consumption are
simultaneous
 Little opportunity to
test a service before
use
 Lower risk by offering
guarantees or
warranties

6. 13-6
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Heterogeneous
Technology
Training
Automation
Courtesy Geek Housecalls, Inc.

7. 13-7
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Perishable
How are each of these perishable services?
John Foxx/Getty Images PhotoLink/Getty Images Courtesy Geek Housecalls, Inc.

8. 13-8
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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?
CHECK YOURSELF

9. 13-9
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The Knowledge Gap:
Understanding Customer Expectations
Marketing
research:
understanding
customers
Evaluating
service quality
Understanding
customer
expectations
The Knowledge
Gap

10. 13-10
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Understanding Customer Expectations
Expectations are based on knowledge and experience
Expectations vary according to type of service
Expectations vary depending on the situation
versus
Mel Curtis/Getty Images Kim Steele/Getty Images

11. 13-11
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Evaluating Service Quality
The appearance
of physical
facilities,
equipment,
personnel, and
communication
materials.
TANGIBLES
The caring,
individualized
attention
provided to
customers.
EMPATHY
The knowledge
of and courtesy
by employees
and their ability
to convey trust
and confidence
ASSURANCE
The willingness
to help
customers and
provide prompt
service.
RESPONSIVENESS
The ability to
perform the
service
dependably and
accurately.
RELIABILITY

12. 13-12
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The Standards Gap:
Setting Service Standards
Developing systems to
ensure high-quality service
Setting standards for quality
Royalty-Free/CORBIS

13. 13-13
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The Delivery Gap:
Delivering Service Quality
Reduce
delivery
gaps
Empowering
employees
Provide
support &
incentives
Use of
technology

14. 13-14
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The Communications Gap:
Communicating the Service Promise
Manage customer
expectations
Promise only what you
can deliver
Communicate service
expectations
J.D. Power and Associates Website
Getty Images

15. 13-15
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1. Explain the four service gaps identified by the
Gaps Model.
2. List at least two ways to overcome each of the
four service gaps.
CHECK YOURSELF

16. 13-16
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Service Recovery
Increase
Service
Recovery
Listen to the
customer
Resolve
problems
quickly
Provide a
fair solution

17. 13-17
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHECK YOURSELF
1. Why is service recovery so important to
companies?
2. What can companies do to recover from a
service failure?

18. 13-18
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The communications gap refers to the
difference between the actual service provided
to customers and the service that the firm’s
promotion program promises.
Glossary

19. 13-19
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The delivery gap is the difference between the
firm’s service standards and the actual service it
provides to customers.
Glossary

20. 13-20
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The knowledge gap reflects the difference
between customers’ expectations and the firm’s
perception of those customer expectations.
Glossary

21. 13-21
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
A service is any intangible offering that involves a
deed, performance, or effort that cannot be
physically possessed.
Glossary

22. 13-22
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Service quality is the customers’ perceptions of
how well a service meets or exceeds their
expectations.
Glossary

23. 13-23
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The standards gap is the difference between the
firm’s service standards and the actual service it
provides to customers.
Glossary

24. 13-24
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
A voice-of-customer (VOC) program collects
customer inputs and integrates them into
managerial decisions.
Glossary

25. 13-25
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A zone of tolerance is the area between
customers’ expectations regarding their desired
service and the minimum level of acceptable
service.
Glossary