Services Marketing: Integrating Customer Focus Across the Firm 7th Edition

CHAPTER 1: INTRODUCTION TO SERVICES CHAPTER TOPICS What are Services? Why Service Marketing? Service and Technology Characteristics of Services Service Marketing Mix Staying Focused on the Customer Technology Spotlight: The Changing Face of Customer Service Global Feature: The Migration of Service Jobs Strategy Insight: Competing Strategically through Service CHAPTER OBJECTIVES 1. Explain what

DISCUSSION QUESTIONS 1. What distinguishes service offerings from customer service? Provide specific examples. Service offerings are intangible products offered for sale to customers. These can be services sold to business customers (e.g., consulting services, shipping services, maintenance services) or to end consumers (e.g., restaurant services, transportation, health care). Service offerings can be sold

CHAPTER 10: PHYSICAL EVIDENCE AND THE SERVICESCAPE CHAPTER TOPICS Physical Evidence Types of Servicescapes Strategic Roles of the Servicescape Framework for Understanding Servicescape Effects on Behavior Guidelines for Physical Evidence Strategy Technology Spotlight: Virtual Servicescapes: Experiencing Services through the Internet Global Feature: McDonalds Adapts Servicescapes to Fit the Culture Strategy Insight: Strategic

DISCUSSION QUESTIONS 1. What is physical evidence, and why have we devoted an entire chapter to it in a marketing text? Physical evidence is the environment in which the service is delivered and where the firm and the customer interact and any tangible commodities that facilitate performance or communication of the service. Physical

CHAPTER 11: EMPLOYEES ROLES IN SERVICE DELIVERY CHAPTER TOPICS Service Culture The Critical Importance of Service Employees Boundary-Spanning Roles Strategies for Delivering Service Quality Through People Customer-Oriented Service Delivery Technology Spotlight: How Technology Is Helping Employees Serve Customers More Effectively and Efficiently Global Feature: How Well Does a Companys Service Culture Travel? Strategy Insight:

DISCUSSION QUESTIONS 1. Define service culture. Why is service culture so important? Can a manufacturing firm have a service culture? Why or why not? As defined by Christian Grnroos and cited in the text, a service culture is a culture where an appreciation for good service exists, and where giving good service to

CHAPTER 12: CUSTOMERS ROLES IN SERVICE DELIVERY CHAPTER TOPICS The Importance of Customers in Service Cocreation Customers Roles Self-Service TechnologiesThe Ultimate in Customer Participation Strategies for Enhancing Customer Participation Technology Spotlight: Technology Facilitates Customer Participation in Health Care Global Feature: At Swedens IKEA, Customers Around the World Cocreate Customized Value Strategy Insight: Customer

DISCUSSION QUESTIONS 1. Using your own personal examples, discuss the general importance of customers in the successful creation and delivery of service experiences. This question focuses on understanding the importance of both the customer him/herself as well as other customers in the successful delivery of service. This topic is novel and can result

CHAPTER 13: MANAGING DEMAND AND CAPACITY CHAPTER TOPICS The Underlying Issue: Lack of Inventory Capability Capacity Constraints Demand Patterns Strategies for Matching Capacity and Demand Yield Management: Balancing Capacity Utilization, Pricing, Market Segmentation, and Financial Return Waiting Line Strategies: When Demand and Capacity Cannot Be Matched Technology Spotlight: Information and Technology Drive Yield

DISCUSSION QUESTIONS 1. Why do service organizations lack the capability to inventory their services? Compare a car repair and maintenance service with an automobile manufacturer/dealer in terms of inventory capability. In general, service organizations lack the capability to inventory their services because of two basic characteristics: simultaneous production and consumption; and perishability. Because

CHAPTER 14: INTEGRATED SERVICE MARKETING COMMUNICATIONS CHAPTER TOPICS The Need for Coordination in Marketing Communication Key Service Communication Challenges Five Categories of Strategies to Match Service Promises with Delivery Technology Spotlight: Internet Expert Mary Meeker Predicts What Companies Most Need to Know Global Feature: Virgin Atlantic Airways Strategy Insight: Mobile AdvertisingThe Key

DISCUSSION QUESTIONS 1. Think of a service company that provides integrated service marketing communications. Go to the services companys website and find the section where it posts its advertising and communication. Is the Companys campaign as comprehensive and as integrated as those described in the opening vignette? Why or why not? What should

CHAPTER 15: PRICING OF SERVICES CHAPTER TOPICS Three Key Ways that Service Prices Are Different for Consumers Approaches to Pricing Services Pricing Strategies that Link to the Four Value Definitions Technology Spotlight: Dynamic Pricing on the Internet Allows Price Adjustments Based on Supply and Demand Global Feature: Unique Tipping and Pricing Practices Around the

DISCUSSION QUESTIONS 1. Which approach to pricing (cost-based, competition-based, or demand-based) is the most fair to customers? Why? Cost-based pricing is likely to be the fairest approach to customers. Costs are based on the direct and labor costs to provide the service, which should be fairly similar across providers. If all service suppliers in

CHAPTER 16: THE FINANCIAL AND ECONOMIC IMPACT OF SERVICE CHAPTER TOPICS Service and Profitability: The Direct Relationship Offensive Marketing Effects of Service: Attracting More and Better Customers Defensive Marketing Effects of Service: Customer Retention Customer Perceptions of Service Quality and Purchase Intentions The Key Drivers of Service Quality, Customer Retention, and Profits Technology

DISCUSSION QUESTIONS 1. Why has it been difficult for executives to understand the relationship between service improvements and profitability in their companies? One of the main reason it has been difficult for executives to understand the relationship between service improvements and profitability is that expenditures on service do not have an immediate, evident impact.

DISCUSSION QUESTIONS 1. Think about a service you receive. Is there a gap between your expectations and perceptions of that service? What do you expect that you do not receive? If students understand the concept of the customer gapthat is, expectations of service not matching actual perceptions of the service receivedthen there should

CHAPTER 2: CONCEPTUAL FRAMEWORK OF THE BOOK: THE GAPS MODEL OF SERVICE QUALITY CHAPTER TOPICS The Customer Gap The Provider Gaps Putting It All Together: Closing the Gaps Technology Spotlight: Technologys Critical Impact on the Gaps Model of Service Quality Global Feature: An International Retailer Puts Customers in the Wish Mode to

CHAPTER 3: CUSTOMER EXPECTATIONS OF SERVICE CHAPTER TOPICS Service Expectations Factors that Influence Customer Expectations of Service Issues Involving Customers Service Expectations Technology Spotlight: Customer Expectations of Airport Services Using Technology Global Feature: Global Outsourcing of Personal Services: What Are Customers Expectations? Strategy Insight: How Services Marketers Can Influence Factors CHAPTER OBJECTIVES 1.

DISCUSSION QUESTIONS 1. What is the difference between desired service and adequate service? Why would a services marketer need to understand both types of service expectations? Desired service expectations are the upper bound on customer expectationsthe level of service the customer hopes to receive, a blend of what the customer believes can be

CHAPTER 4: CUSTOMER PERCEPTIONS OF SERVICE CHAPTER TOPICS Customer Perceptions Customer Satisfaction Service Quality Service Encounters: The Building Blocks for Customer Perceptions Technology Spotlight: Customers Love Amazon Global Feature: Differences In Service Quality Perceptions and Rage Across Cultures Strategy Insight: Customer Satisfaction and the Bottom Line CHAPTER OBJECTIVES 1. Provide a solid basis

DISCUSSION QUESTIONS 1. What is customer satisfaction, and why is it so important? Discuss how customer satisfaction can be influenced by each of the following: product attributes and features; customer emotions; attributions for success or failure; perceptions of fairness; and family members or other customers. According to the chapter, satisfaction is the customers

CHAPTER 5: LISTENING TO CUSTOMERS THROUGH RESEARCH CHAPTER TOPICS Using Customer Research to Understand Customer Expectations Elements in an Effective Service Marketing Research Program Analyzing and Interpreting Customer Research Findings Using Marketing Research Information Upward Communication Technology Spotlight: Conducting Customer Research on the Web Global Feature: Conducting Customer Research in Emerging Markets

DISCUSSION QUESTIONS 1. Give five reasons research objectives must be established before marketing research is conducted. Research objectives must be established in order to: avoid spending inefficiently make certain that the implicit questions that led to the research are answered assure that the appropriate form of research is conducted (because the appropriate

CHAPTER 6: BUILDING CUSTOMER RELATIONSHIPS CHAPTER TOPICS Relationship Marketing Relationship Value of Customers Customer Profitability Segments Relationship Development Strategies Relationship Challenges Technology Spotlight: Customer Information Systems Help Enhance the Customer Relationship Global Feature: Developing Loyal Customers at Airbnb Strategy Insight: The Customer Is Always Right: Rethinking an Old Tenet CHAPTER OBJECTIVES 1. Explain

DISCUSSION QUESTIONS 1. Discuss how relationship marketing or retention marketing is different from the traditional emphasis in marketing. The traditional focus in marketing has been on getting new customers and building the customer base through adding more first-time customers. While it is still important to attract new customers, the costs of customer churn and

CHAPTER 7: SERVICE RECOVERY CHAPTER TOPICS The Impact of Service Failure and Recovery How Customers Respond to Service Failures Service Recovery Strategies: Fixing the Customer Service Recovery Strategies: Fixing the Problem Service Guarantees Switching versus Staying Following Service Recovery Technology Spotlight: Cisco SystemsCustomers Recover for Themselves Global Feature: Service Recovery across Cultures Strategy

DISCUSSION QUESTIONS 1. Why is it important for a service firm to have a strong recovery strategy? Think of a time when you received less-than-desirable service from a particular service organization. Was any effort made to recover? What should/could have been done differently? Do you still buy services from the organization? Why or

CHAPTER 8: SERVICE INNOVATION AND DESIGN CHAPTER TOPICS Challenges of Service Innovation and Design Important Considerations for Service Innovation Types of Service Innovations Stages in Service Innovation and Development Service Blueprinting: A Technique for Service Innovation and Design Technology Spotlight: Facebook: A Radical Service Innovation Global Feature: The Global Service Innovation Imperative

DISCUSSION QUESTIONS 1. Why is it challenging to innovate, design, and develop services? A primary objective of this chapter is to have students understand the complexities and challenges of innovating, designing and developing services. The inherent challenges in so doing relate back to several of the basic characteristics of services (as discussed in

CHAPTER 9: CUSTOMER-DEFINED SERVICE STANDARDS CHAPTER TOPICS Factors Necessary for Appropriate Service Standards Types of Customer-Defined Service Standards Development of Customer-Defined Service Standards Technology Spotlight: The Power of Good Responsiveness Standards Global Feature: Adjusting Service Standards around the Globe Strategy Insight: Using Big Data to Define Service Standards and Improve Customer Experience

DISCUSSION QUESTIONS 1. How does the service measurement that we describe in this chapter differ from the service measurement in chapter 5? Which of the two types do you think is most important? Why? The measurement in this chapter is largely operational whereas the measurement in Chapter 5 was perceptual. Both types of

Which of the following factors is NOT a factor leading to provider gap 1? A. Inadequate marketing research orientation B. Over-promising C. Lack of upward communication D. Insufficient relationship focus E. Inadequate service recovery B. B. B. The maintenance contract offered by Sears on its Kenmore refrigerators, dishwashers, and microwaves is an example of a(n) _______. A. Service B. Experience C. Attribute D.

A trucking company that has a toll free number to call if the driver of the truck does not follow the rules of the road is using a service recovery tool. TRUE TRUE TRUE Service quality can help companies attract more and better customers to the business through offensive marketing. TRUE TRUE

Landis was pleasantly surprised to find a "No Smoking" sign at his favorite pub. He had to limit his visits because he is allergic to cigarette smoke. Now he can visit as often and for as long as he likes. Landis was afraid the sign might hurt the pub's business, but

_____ concerns the results that customers receive from their complaints. A. Functional fairness B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness E. E. E. Kate recently learned to play golf. Last week, she decided to try a new golf course. She signed in to play and was given the keys to an electric golf cart

The Net Promoter Score is based on the idea that word-of-mouth communication, rather than any of the other metric, is the best predictor of growth and financial performance. TRUE TRUE TRUE A dry cleaning establishment is more likely to experience a wide demand fluctuation over time than a cleaning company that specializes

Which of the following is NOT a risk associated with the use of yield management? A. Incompatible incentive and reward systems B. Overbooking C. Customer alienation D. Loss of competitive focus E. All of the above are risks associated with the use of yield management. E. E. E. Jamie desires a haircut that will look just as attractive when

To reach business travelers (its largest market) Canadian Airline has installed continuous "power to the seat" and Internet service for those who need to work on their laptops for the entire plane trip. By adding these amenities, Canadian Airline has improved the __________ of the service environment: A. Spatial input B. Symbolic

Mass transit train and bus service has peak periods of demand Monday through Friday during morning and evening rush hours. Demand for mass transit service: A. Fluctuates randomly B. Follows no discernible pattern C. Follows a predictable demand cycle D. Follows a vertical demand configuration E. Is dissatisfactory C. C. C. Whether a household or a firm chooses to

The Net Promoter Score is embraced by virtually all executives, researchers and loyalty experts as the single most reliable indicator of a companys ability to grow. FALSE FALSE FALSE SERVQUAL is a type of requirements research. FALSE FALSE FALSE The reliability dimension of service quality delivering the service as promised is often totally

_______________ is the percentage of a customers spending within a category that is captured by a given service. A. Share of spending B. Share of market C. Share of customer D. Share of wallet E. Share of budget D. D. D. Which of the following statements does NOT describe how consumers typically define value? A. Value is all that I

In order to manage fluctuating demand in a service business, an organization must understand all of the following EXCEPT: A. How to chart demand patterns B. Random demand fluctuations C. Demand patterns by market segment D. Predictable demand cycles E. Vertical demand configurations E. E. E. The type of complainer that is called a(n) _____ has an above average

Waiting time feels longer when customers: A. Are relaxed while waiting B. Are reading or drinking a beverage while waiting C. Are alone while waiting D. Know how long they will have to wait E. Understand why they are waiting C. C. C. The _______ suggests an initially disappointed customer who has experienced good service recovery might be even

Research indicates that if an individual has to wait longer than eight seconds for an Internet site to download, then he or she will likely abandon plans to visit the site and move on to another site. In terms of the service quality dimensions that are used to evaluate web

Traditional thinking has defined _____________ as bundles of goods and services that companies offer to customers, but customers think of them as sets of customer-facing processes. A. Mobile applications B. Start-ups C. Style changes D. Solutions E. Innovations D. D. D. Which of the following statements about providing customers with service quality is true? A. All customers must be provided the

The four strategies of tangibilization are documentation, illustration, intimation and physical representation. FALSE FALSE FALSE "Improving skills among contact employees" is an effective customer-defined service standard. FALSE FALSE FALSE The central focus of the gaps model of service quality is to close the gap between customer expectations and perceptions. TRUE TRUE TRUE Despite

A commercial for Carnival Cruises shows a group of friends scuba diving, rock climbing, dancing and having a really great time. Which strategy for tangibilization is Carnival using in this commercial? A. Illumination B. Physical representation C. Allusion D. Documentation E. Visualization E. E. E. Which of the following is NOT a source of desired service and predicted service? A.

In a __________ encounter, both verbal and non-verbal behaviors are determinants of quality, as are tangible cues such as employee appearance and informational brochures. A. Face-to-face B. Public C. Personal D. Symbiotic E. Customer-controlled A. A. A. Service providers like insurance companies that emphasize acquiring new customers rather than retaining current customers are broadening provider _____ of the gaps

Whether a customer assumes the role of competitor is unaffected by trust, control or time. FALSE FALSE FALSE The use of transactional marketing will tend to narrow provider gap 1. FALSE FALSE FALSE Even though some service providers would like to reduce customer participation in the service delivery, it cannot be done. FALSE

Search costs are the costs invested to identify and choose from services you desire. TRUE TRUE TRUE A primary issue that marketers face in relation to service perishability is ensuring service quality over time. FALSE FALSE FALSE The first rule of service quality is to do it right the first time. TRUE TRUE

The Hilton Hawaiian Village offers its guests mattresses that adjust to body contours and weight. The bed designed with air baffles and wooden slats is good for people with bad backs and those with varicose veins. These mattresses use _____ to create positive responses to the hotel's servicescape. A. Bioengineering B. Physiological

An airport with large, easily read signage and well-designed foot traffic patterns that allow travelers to perform their roles with ease is providing travelers with _____ orientation. A. Place B. Cultural C. Promotable D. Physical evidence E. Function A. A. A. To be effective, complaint solicitation requires: A. The same complaint be mentioned at least ten times before any action

_____ cost refers to the effort invested in identifying and selecting a service from your consideration set. A. Convenience B. Monetary C. Psychological D. Time E. Search E. E. E. Clarifying expectations after the sale is a strategy for: A. Conducting market research B. Resetting customer expectations C. Managing customer education D. Managing horizontal communications E. Exceeding customer expectations C. C. C. Many frequent flyers have missed their

Which of the following is NOT a soft customer-defined standard? A. Uniforms are to be immaculate B. Avoid other tasks while on the telephone with customers C. Deliver orders on the date promised D. Thank the customer at the end of the call E. Listen to customers attentively C. C. C. The openings of new fast-food franchises are typically

Sunoco is readying a chain-wide set of marketing initiatives designed to improve its image with women drivers and win more return business to its service station outlets throughout Ontario. It refurbished all of its restrooms and tried to hire friendly personalities and real customer service skills instead of "just who

Provider gap 2 exists in service companies because of a failure of horizontal communication. FALSE FALSE FALSE How a customer defines desired levels of service is more likely to change than how adequate levels of service are defined. FALSE FALSE FALSE Research by TARP Worldwide, Inc. found that only 7 percent of