978-0077729028 Chapter 13 Slides

Type

Quiz

Book Title

Marketing 5th Edition

ISBN 13

978-0077729028

April 8, 2019

Powerpoint Slides With Teaching Notes

Power Point Slide Teaching Notes

13-1: Services: The Intangible Product

13-2: Learning Objectives These are the learning objectives for this

chapter.

13-3: Zappos The United Kingdom food delivery service

Seamless makes sure that employees are

monitoring Twitter at all hours of the day. This

is in order to be better about responding

through social media to deal with more

demanding customer.

Ask students – what would be your

expectations when buying online groceries and

food?

13-4: Service In a service economy, firms compete on how

well they provide service to their customers.

This web link is to the “live” customer service

rep at landsend.com

Ask students: Describe your last outstanding

and horrible customer service experiences.

How did it affect your attitude toward the firm?

How did it affect your purchase behavior?

13-5: The Service Product Continuum According to Theodore Levitt, all products are

services.

Ask students: What does this statement mean?

When you purchase products, do you also

purchase the services associated with the

product?

Like what?

13-6: Offering a service with your

products

This is one of the oldest cause marketing

campaigns.

In addition to buying Betty Crocker products,

consumers are buying financial support for

their schools

13-7: Economic Importance of Service Remind students about how environments

influence marketing.

As economic, technological, and sociocultural

environments change, so do demands for

services.

Group activity: Examine some key changes in

each of these environments that have led to

greater demands for service.

Some potential responses include automation,

women in the workplace, new trade realities, or

shipping and transportation improvements.

13-8: Services Marketing Differs from

Product Marketing

This graph sets up the following discussion; if

you wish to shorten this presentation, simply

review these differences.

The next slides go into greater detail.

13-9: Intangible Consumers use cues to judge the service

quality of dentists, including the quality of the

furnishings, whether magazines are current,

and diplomas on the wall.

Group activity: Think about the cues you use

to assess the quality of a service.

Choose a particular service (e.g., auto repair,

medical care, insurance) and list several cues

the provider could use to indicate quality.

13-10: Inseparable Production and

Consumption

When staying at a hotel, you can’t test it out

before you stay.

Some hotels offer satisfaction guarantees to

lower risk.

Ask students what other kinds of products can

they not test before?

Some of them might say delivery in which case

it is funny to show this YouTube ad.

The ad (always check before class) is for

FedEx and was one of their best Superbowl ads

ever.

13-11: Variable Many students work in service professions.

Ask students: How have your employers

attempted to reduce service variability?

Do these programs work?

What else could your employer do to reduce

variability?

13-12: Perishable Each of the pictured services are perishable,

because as soon as the plane/ship departs, the

date ends, or the meal is served, there is no

possibility of changing.

Unsold seats or rooms are lost revenue.

13-13: Check Yourself 1 Services are intangible, inseparable,

variable, and perishable.

2 Many of them are a blend and fall within

the product-service continuum

13-14: Providing Great Service: The Gaps

Model

This slide sets up the discussion that follows

and can be used as the basis for a shorter

discussion.

13-15: The Knowledge Gap: Knowing What

Customers Want

Many doctors believe they should be evaluated

on the basis of their credentials and find

consumers’ interest in wait times, friendliness

of staff, and waiting room décor frustrating.

Ask students: What can doctors do to close

this knowledge gap?

13-16: McDonald’s 24/7 In this video clip, the flagship restaurant in

Time Square is featured.

Open 24/7 as a way of beefing up profits

especially with the offering of breakfast.

Reduced costs are blended into a 24/7

operation which is a key part of the resurgence

of McDonald’s.

Note: Please make sure that the video file is

located in the same folder as the PowerPoint

slides.

13-17: Filling the Knowledge Gap Higher education often gets accused of being

customer unfriendly.

How can a university close the knowledge gap

and thus improve service quality and

outcomes?

13-18: Understanding Customer

Expectations

Ask students: What are your expectations of

the service provided by these two businesses.

Will there be price differences?

In what circumstances would you stay at each

property?

13-19: Evaluating Service Quality Class activity. Tell students: Assume you are

expecting an important package from UPS.

A delivery attempt was made, but you didn't

hear the door bell, and missed it.

You call the customer service line and they tell

you not to worry, and that one of your options

is to pick up the package at the terminal that

evening.

You tell them that you need the package before

noon.

So, they arrange for you to meet the delivery

truck close to your house.

You are delighted when you spot the clean

brown UPS truck exactly where it is supposed

to be.

The friendly driver greets you by name, gets

your package and you are on your way.

Ask the students: which of the service

building blocks of customer service applies to

each aspect of this scenario

13-20: Marketing Research: Understanding

Customers

This is a funny YouTube (always check before

class) that has a little girl talking about a snotty

doctor she recently visited.

Ask students what the company learned from

their research that they used in these ads.

13-21: Zone of Tolerance Consumers often have a range of acceptable

outcomes.

Discuss the example of a hotel room: You

prefer a king bed but will accept two queen

beds; you will not, however, accept a room

without towels or a lumpy mattress.

Therefore, you have defined your zone of

tolerance for hotels.

13-22: Customer Evaluation of Service

Quality

Class exercise: Have students evaluate the

zone of tolerance for the food service options

on campus.

This exercise forces students to think about the

five service quality dimensions.

It will also reinforce the idea that if a firm is

above the zone, particularly on an unimportant

dimension, they are probably spending too

much.

At the same time, if it is below the zone, its

service is substandard.

Being substandard on an important dimension

is potentially a devastating problem.

13-23: The Standards Gap: Setting Service

Standards

Quality service requires constant investments

in training and monitoring.

Similar to any other strategic element, service

quality flows from the top down.

Rewards and incentives must be in place to

support service quality commitments.

Ask students: What types of incentives work

best to make service employees buy in to their

firm’s service standards?

Some will say good working conditions and

salaries and others might mention contests and

prizes.

13-24: The Delivery Gap: Delivering

Service Quality

This slide again sets up the following

discussion, which you may omit if you prefer

to focus just on these dimensions.

13-25: What Airline Workers Learn from

NASCAR

Race against the clock as members of United

Airlines ground crew learn techniques of

precision from the NASCAR crew to turn

planes around quickly and keep the airline out

of the red.

Note: Please make sure that the video file is

located in the same folder as the PowerPoint

slides.

13-26: Empowering Service Providers Frontline employees must be able to solve

customer problems.

Ask students: The last time you returned

something to a store, did the person waiting on

you process the return, or did he or she need to

get a manager’s approval?

Which do you prefer?

13-27: Providing Support and Incentives If the firm has just a paper commitment to

service quality, it will not happen.

Systems must support the service providers

and allow them to do their job and exceed

customer expectations.

Ask students: What types of incentives do

you believe would best motivate UPS delivery

drivers?

Of course they will say money.

This could lead to an interesting discussion

about how intrinsic rewards like recognition

plaques can mean as much or more than money

13-28: Use of Technology Technology has become an increasingly

important method for facilitating the delivery

of services. RFIDs (radio frequency

identification devices) are tiny computer chips

that automatically transmit to a special scanner

all the information about a container’s contents

or individual products.

Another way to use technology in the service

delivery process is with a retail store assistant

(RSA).

An RSA can be a kiosk or a device attached to

the customer’s shopping cart. Instead of

bringing a shopping list to the store, a customer

can swipe a loyalty card or enter a phone

number at an RSA.

Any information the customer has entered

online from home will show up on the

customer’s profile.

Ask Students what new technologies they

have seen at retailers?

13-29: The Communications Gap:

Communicating the Service Promise

Many people have never stayed in a five-star

hotel, but they know what level of service

quality they expect.

Often, such expectations develop in response

to the promises made in promotional materials

provided by the firm.

Many firms over promise and under deliver;

Southwest Airlines attributes its success to

under promising and over delivering instead.

This web link is for J.D. Power and Associates.

Clicking through will show you the different

industries that they rate, many of them service

industries.

Ask students what it means for a company to

win this? How should they use this in their

communication?

13-30: Check Yourself Answer to both questions:

1 The knowledge gap reflects the difference

between customers’ expectations and the

firm’s perception of those customer

expectations. Firms can understand

consumer expectations and evaluate service

quality

2 The standards gap pertains to the difference

between the firm’s perceptions of

customers’ expectations and the service

standards it sets. Firms can set appropriate

service standards and measure service

performance

3 The delivery gap is the difference between

the firm’s service standards and the actual

service it provides to customers. This gap

can be closed by getting employees to meet

or exceed service standards by providing

incentives and support.

4 The communication gap refers to the

difference between the actual service

provided to customers and the service that

the firm’s promotion program promises. If

firms are more realistic about the services

they can provide and manage customer

expectations effectively, they generally can

close this gap.

13-31: Service Recovery This slide sets up the following discussion and

can be used instead of the more detailed

discussion that follows.

13-32: Listening to the Customer Group activity: Think about the last time you

called a firm about a service issue. How were

you treated?

What determined your level of satisfaction

with the result?

Sometimes, just having someone who listens

and tries to understand the issue is sufficient.

According to a recent airline study, if the

airline provides a reason for delays, travelers

are less annoyed by the service interruption.

13-33: Finding a Fair Solution Even if they eventually receive a solution that

seems fair, when consumers must work hard to

achieve it, their low procedural fairness

perceptions may cause them to believe that

they are being punished for receiving bad

service.

Ask students: How can service firms enhance

both distributive and procedural fairness

simultaneously?

By establishing firm policies, such as the

“Customer Bill of Rights” adopted by Jet Blue.

This statement details what type of service the

firm should provide as well as the remedies

that will be offered in case of service failure.

This statement allows consumers to understand

how and when they will be compensated for

service failures.

13-34: Resolving Problems Quickly By compounding a service failure with long

delays in correcting it, the firm creates a hostile

customer.

Remind students about the strong influence of

negative word of mouth.

13-35: Check Yourself 1 Despite a firm’s best efforts, sometimes

service providers fail to meet customer

expectations. Effective service recovery

efforts can significantly increase customer

satisfaction, purchase intentions, and

positive word of mouth, though customers’

post recovery satisfaction levels usually fall

lower than their satisfaction level prior to

the service failure.

2 Distributive Fairness and Procedural

Fairness