Book Title
Marketing 5th Edition

978-0077729028 Chapter 13 Slides

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
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
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
Ask students: What does this statement mean?
When you purchase products, do you also
purchase the services associated with the
Like what?
13-6: Offering a service with your
This is one of the oldest cause marketing
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
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
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
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
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
This slide sets up the discussion that follows
and can be used as the basis for a shorter
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
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
13-18: Understanding Customer
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
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
You tell them that you need the package before
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
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
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
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
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
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
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
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
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 managers 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
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 containers contents
or individual products.
Another way to use technology in the service
delivery process is with a retail store assistant
An RSA can be a kiosk or a device attached to
the customers 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
customers 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
Ask students what it means for a company to
win this? How should they use this in their
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
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
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
Ask students: How can service firms enhance
both distributive and procedural fairness
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
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