This document discusses services marketing and the key differences between marketing services versus products. It identifies four factors that distinguish services: they are intangible, production and consumption are simultaneous, they are heterogeneous, and they are perishable. It then explains the service gaps model and the four gaps: the knowledge gap regarding customer expectations, the standards gap in setting service quality standards, the delivery gap in meeting those standards, and the communications gap in clearly promising the service. Finally, it discusses the importance of service recovery when failures occur and strategies like listening, resolving problems quickly, and providing fair solutions.

1. 13-1
CHAPTER
SERVICES:
THE INTANGIBLE
PRODUCT
13

2. 13-2
L E A R N I N G O B J E C T I V E S
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
Services Marketing Differs
from Product Marketing
Factors
differentiating
services
from goods
Inseparable
Heterogeneous
Perishable
Intangible

4. 13-4
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
Inseparable Production and Consumption
 Production and
consumption are
simultaneous
 Little opportunity to
test a service
before use
 Lower risk by
offering guarantees
or warranties
http://www.youtube.com/watch?v=Set-r53xvBI

6. 13-6
Heterogeneous
Technology
Training
Automation
Courtesy Geek Housecalls, Inc.

7. 13-7
Perishable
How are each of these perishable services?
John Foxx/Getty Images PhotoLink/Getty Images Courtesy Geek Housecalls, Inc.

8. 13-8
CHECK YOURSELF
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?

9. 13-9
The Knowledge Gap:
Understanding Customer Expectations
Marketing
research:
understanding
customers
Evaluating
service quality
Understanding
customer
expectations
The Knowledge
Gap

10. 13-10
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
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
The Standards Gap:
Setting Service Standards
Developing systems to
ensure high-quality service
Setting standards for quality
Royalty-Free/CORBIS

13. 13-13
The Delivery Gap:
Delivering Service Quality
Reduce
delivery
gaps
Empowering
employees
Provide
support &
incentives
Use of
technology

14. 13-14
The Communications Gap:
Communicating the Service Promise
Manage customer
expectations
Promise only what you
can deliver
Communicate service
expectations
J.D. Power &
Associate
Getty Images

15. 13-15
CHECK YOURSELF
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.

16. 13-16
Service Recovery
Increase
Service
Recovery
Listen to the
customer
Resolve
problems
quickly
Provide a
fair solution

17. 13-17
CHECK YOURSELF
1. Why is service recovery so important to
companies?
2. What can companies do to recover from a
service failure?