Chapter 13 - Services: the intangible product. In this chapter you will learn: 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.
CHAPTER 13 SERVICES: THE INTANGIBLE PRODUCT Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-1 Services: The Intangible Product LEARNING OBJECTIVES § Describe how the marketing of services differs from the marketing of products LO1 Discuss the four gaps in the Service Gap Model § LO2 Examine the five service quality dimensions § LO3 Explain the zone of tolerance § LO4 Identify three service recovery strategies § LO5 Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-2 Services Marketing Differs from Product Marketing Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-3 Intangible § § § Requires using cues to aid customers Atmosphere is important to convey value Images are used to convey benefit of value ©Mark Richards/PhotoEdit Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-4 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 Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-5 Heterogeneous Courtesy Geek Housecalls, Inc Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-6 Perishable How are each of these perishable services? John Foxx/Getty Images PhotoLink/Getty Images Courtesy Geek Housecalls, Inc Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-7 CHECK YOURSELF What are the four marketing elements that distinguish services from products? Why can’t we separate firms into just service or just product sellers? Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-8 The Knowledge Gap: Understanding Customer Expectations The Knowledge Gap Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-9 Understanding Customer Expectations versus Mel Curtis/Getty Images Kim Steele/Getty Images Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-10 Evaluating Service Quality RELIABILITY RESPONSIVENESS ASSURANCE The ability to perform the service dependably and accurately The willingness to help customers and provide prompt service The knowledge of and courtesy by employees and their ability to convey trust and confidence EMPATHY The caring, individualized attention provided to customers TANGIBLES The appearance of physical facilities, equipment, personnel, and communication materials Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-11 The Standards Gap: Setting Service Standards Royalty-Free/CORBIS Setting standards for quality Developing systems to ensure high-quality service Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-12 The Delivery Gap: Delivering Service Quality Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-13 The Communications Gap: Communicating the Service Promise Getty Images Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education J.D Power & Associate 13-14 CHECK YOURSELF Explain the four service gaps identified by the Gaps Model List at least two ways to overcome each of the four service gaps Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-15 Service Recovery Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-16 CHECK YOURSELF Why is service recovery so important to companies? What can companies to recover from a service failure? Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-17 Glossary The communications gap refers to the difference between the actual service provided to customers and the service that the firm’s promotion program promises Return to slide Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-18 Glossary The delivery gap is the difference between the firm’s service standards and the actual service it provides to customers Return to slide Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-19 Glossary The knowledge gap reflects the difference between customers’ expectations and the firm’s perception of those customer expectations Return to slide Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-20 Glossary A service is any intangible offering that involves a deed, performance, or effort that cannot be physically possessed Return to slide Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-21 Glossary Service quality is the customers’ perceptions of how well a service meets or exceeds their expectations Return to slide Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-22 Glossary The standards gap is the difference between the firm’s perceptions of customers’ expectations and the service standards it sets Return to slide Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-23 Glossary A voice-of-customer (VOC) program collects customer inputs and integrates them into managerial decisions Return to slide Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-24 Glossary A zone of tolerance is the area between customers’ expectations regarding their desired service and the minimum level of acceptable service Return to slide Copyright © 2016 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13-25 .. .Services: The Intangible Product LEARNING OBJECTIVES § Describe how the marketing of services differs from the marketing of products LO1 Discuss the four gaps in the Service Gap... reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 1 3-2 Services Marketing Differs from Product Marketing Copyright © 2016 McGraw-Hill Education... McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 1 3-2 2 Glossary The standards gap is the difference between the