Chapter 13 – Services: The Intangible Product Marketing 6th
Chapter 13
Services: The Intangible Product
Tools for Instructors
Brief Chapter Outline
Learning Objectives
Extended Chapter Outline with Teaching Tips
Answers to End of Chapter Learning Aids
Chapter Case Study
Additional Teaching Tips
Connect Activities
Brief Chapter Outline
Services Marketing Differs from Product Marketing
Providing Great Service: The Gaps Model
Service Recovery
End of Chapter Learning Aids
Chapter Case Study: Transportation Network Services: Uber vs. Lyft vs. Taxis
Learning Objectives
LO 13-1 Describe how the marketing of services differs from the marketing of products.
Unlike products, services are intangible, inseparable, variable, and perishable. They cannot be seen or
touched, which makes it difficult to describe their benefits or promote them. Service providers therefore
LO 13-2 Discuss the four gaps in the Service Gap Model.
The knowledge gap reflects the difference between customers’ expectations and the firm’s perception of
those customer expectations. Firms need to match customer expectations with actual service through
research. The standards gap is the difference between the firm’s perceptions of customers’ expectations
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Chapter 13 – Services: The Intangible Product Marketing 6th
LO 13-3 Examine the five service quality dimensions.
First, reliability refers to whether the provider consistently provides an expected level of service. Second,
responsiveness means that the provider notes consumers’ desires and requests and then addresses
LO 13-4 Explain the zone of tolerance.
The area between customers’ desired service and the minimum level of service they will accept is the
zone of tolerance. It is the difference between what the customer really wants and what he or she will
LO 13-5 Identify three service recovery strategies.
In a best-case scenario, the service never fails. But some failures are inevitable and require the firm to
Extended Chapter Outline with Teaching Tips
I Services Marketing Differs from Product Marketing
A Intangible
B Inseparable Production and Consumption
A. Heterogeneous
C Perishable
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
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?
II Providing Great Service: The Gaps Model
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Chapter 13 – Services: The Intangible Product Marketing 6th
A The Knowledge Gap: Understanding Customer Expectations
1 Evaluating Service Quality Using Well-Established Marketing Metrics
B The Standards Gap: Setting Service Standards
C The Delivery Gap: Delivering Service Quality
1 Empowering Service Providers
2 Support and Incentives for Employees
3 Use of Technology
D The Communications Gap: Communicating the Service Promise
E Service Quality and Customer Satisfaction and Loyalty
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. Explain the four service gaps identified by the Service Gaps Model.
2. List at least two ways to overcome each of the four service gaps.
Answer: To overcome the knowledge gap, firms must understand the customers’ expectations. To
understand those expectations, firms undertake customer research and increase the interaction
III Service Recovery
A Listening to the Customers and Involving Them in the Service Recovery
B Finding a Fair Solution
1 Distributive Fairness
2 Procedural Fairness
C Resolving Problems Quickly
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. Why is service recovery so important to companies?
2. What can companies do to recover from a service failure?
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McGraw-Hill Education. 3
Chapter 13 – Services: The Intangible Product Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education. 4