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Chapter 13 - Services: The Intangible Product M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
1
Instructor’s Manual: Implementation
Guide
This improved Instructor’s Manual (IM) contains more than just summaries of key concepts and features from the
sixth edition of M: Marketing that can be used as springboards for class discussion; it also provides best practices for
how to utilize the full product suite (from the textbook to SmartBook® to Connect®). In addition, this manual
includes a variety of supplemental teaching resources to enhance your ability to create an engaging learning
experience for your students. Regardless of whether you teach in face-to-face traditional classrooms, blended
(flipped) classrooms, online environments, or hybrid formats, you’ll find everything you need in this improved
resource.
The IM follows the order of the textbook outline for each chapter and is divided into sections for each learning
objective. To ease your class preparation time, we’ve included references to relevant PowerPoint slides that can be
shown during class. Note that you can adjust slides as needed to ensure your students stay actively engaged
throughout each session.
AVAILABLE INSTRUCTOR RESOURCES
Within the Instructor Resources Tab, located in the Connect® Library, you will find the following Instructor
Resources:
▪ Instructor’s Manual
▪ PowerPoint Presentations (Accessible)
▪ Test Bank
▪ Author Newsletter Blog
▪ Video Library
▪ Connect Content Matrix
Instructor’s Manual
This Instructor’s Manual is posted by chapter. Within each section of the IM you will find an assortment of feature
summaries, examples, exercises, and Connect® Integration assignments intended to enhance your students’ learning
and engagement.
Chapter 13 - Services: The Intangible Product M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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PowerPoint Presentations
A set of ADA-accessible PowerPoints is available with each chapter and covers:
▪ Chapter Learning Objectives
▪ Key examples
▪ Key exhibits
▪ Key concepts and frameworks
▪ Progress checks
▪ Glossary terms
Some slides include teaching notes to guide your discussion of the content that appears on each slide.
Test Bank
Test Bank questions are posted by chapter. You will find a variety of question types within the test bank such as
Matching, Ranking, Multiple Choice, Select-All-That-Apply, True/False, Short Answer, and Essay to test student
mastery across Bloom’s Taxonomy (i.e., Understand, Apply, and Analyze). Due to the evolving needs around
generating high-quality print test experiences, McGraw-Hill Education provides a free copy of the industry-leading
test generation software TestGen® to users (more details can be found within the Instructor Resources tab under
“Test Bank”). Furthermore, due to its limitations to function with the latest browsers and operating systems,
McGraw-Hill Education has discontinued EZ-Test Online. Some of the robust new features present in TestGen®,
include:
▪ Cross-platform software compatibility with Windows and Mac
▪ Multiple LMS export formats, including Blackboard, Moodle, Desire2Learn, and Sakai
▪ Highly customizable formatting and editing option
Video Library
The Video Library provides links to all the assignable videos in Connect®, as well as legacy videos that are no
longer available as assignments, but that remain available as an additional resource. These videos can be directly
streamed from within the library that is located in the Instructor’s Resource tab. Accompanying each video is a brief
video guide that summarizes the key concepts of the video.
Chapter 13 - Services: The Intangible Product M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
3
Connect Content Matrix
The Connect Content Matrix provides a brief overview of all the application exercises available in the course. It
lists the Learning Objectives, topic tags, Bloom’s levels, and difficulty levels associated with each exercise.
Connect®, McGraw-Hill’s online assignment and assessment system, offers a wealth of content for both students
and instructors. Assignable activities include the following:
USING SMARTBOOK® TO ENHANCE STUDENTS’
PERFORMANCE
The LearnSmart®-powered SmartBook® is assignable through Connect. One of the first fully adaptive and
individualized study tools designed for students, it creates for them a personalized learning experience, giving them
the opportunity to practice and challenge their understanding of core marketing concepts. The reporting tools within
SmartBook® show where students are struggling to understand specific concepts.
Typically, SmartBook® is assigned by module (chapter), and you can set which learning objectives to cover as well
as the number of probes the student will see for each assignment. You can also set the number of points a
SmartBook® module is worth in the course. Usually, applying a minimal number of points for completion of each
module is enough to encourage students to read the chapter. Many instructors assign these modules to be completed
before the class or online session.
SmartBook® provides several diagnostic tools for you to gauge which concepts your students struggle to understand.
Below is the set of adaptive assignment reports available in SmartBook®:
▪ Progress Overview: View student progress broken down by module
▪ Student Details: View student progress details plus completion level breakdown for each module
▪ Module Details: View information on how your class performed on each section of their assigned modules
▪ Practice Quiz: This gives you a quick overview of the quizzes results for your students
▪ Missed Questions
▪ Metacognitive Skills
The Module Details report shows you the results for the students in the class overall. These details reveal where in
the chapters students might be struggling. The module gives the chapter section, average time spent, average
questions per student correct/total, and the percentage of correctness (based in number of assigned items).
Information about the most challenging sections for students can help you refine the focus of the next face-to-face,
hybrid, or online session.
The Metacognitive Skills report captures students’ confidence in their competency of the materials. Below you will
find a recreation of the Metacognitive Skills report. In it, you can see that the second student is confident and mostly
Chapter 13 - Services: The Intangible Product M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
4
correct (see the 91% in the Correct and Aware column) while the first student “doesn’t know what she doesn’t
know” (see the 39% in the Incorrect and Unaware column).
STUDENT
CORRECT
and
AWARE
CORRECT and
UNAWARE
INCORRECT
and
AWARE
INCORRECT and
UNAWARE
Student 1
61%
0%
0%
39%
Student 2
91%
0%
3%
5%
Student 3
81%
0%
0%
19%
Student 4
83%
0%
0%
17%
Student 5
76%
0%
3%
21%
Student 6
66%
0%
9%
25%
Student 7
77%
0%
3%
12%
Student 8
91%
0%
2%
7%
Student 9
93%
0%
2%
5%
Student 10
70%
0%
6%%
25%
APPLICATION EXERCISES, QUIZZES, AND TEST BANK
Book-level Resources
Application Exercises require students to apply key concepts to close the knowing and doing gap; they provide
instant feedback for the student and progress tracking for the instructor. Before getting into chapter-level
assignments, let’s first look at the book-level assignments available.
Three exercise types are available for instructors to assign beyond the chapter materials. These are 1) Marketing
Plan Prep Exercises, 2) Marketing Analytics Exercises, and 3) Marketing Mini Simulation.
1) Marketing Plan Prep exercises use guided activities and examples to help students understand and
differentiate the various elements of a marketing plan.
2) Marketing Analytics exercises are data analytics activities that challenge students to make decisions using
3) Marketing Mini Simulation helps students apply and understand the interconnections of elements in the
marketing mix by having them take on the role of Marketing Manager for a backpack manufacturing
company. The simulation can be assigned by topic or in its entirety.
Chapter-level Resources
Chapter-level Application Exercises are built around chapter learning objectives, so you can choose which ones to
assign based on your focus for each specific chapter. Several types of Application Exercises are available in each
chapter. These are 1) iSeeit! Animated Video Cases, 2) Case Analyses, 3) Video Cases, and 4) Click-and-Drag
exercises.
1) The iSeeit! Video series comprises short, contemporary animated videos that provide engaging
introductions to key course concepts. These are perfect for launching lectures and assigning as either pre-
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McGraw-Hill Education.
5
2) Case Analyses and Video Cases each feature real-world firms and industries different than those discussed
3) Click-and-Drag exercises help students actively demonstrate their understanding of the associated learning
objectives. Some require students to match examples to concepts, to place series of steps in the correct
sequence, or to group examples together under their correct categories.
Application Exercises can be assigned as preparatory exercises due before class (this is especially good for flipped
classrooms), or after class as concept comprehension checks. Consider assigning two or three Application Exercises
per chapter.
Applications Exercises will generally be assigned as homework or practice as part of the overall class grade. A
general rule of thumb would be to make application exercises worth 5 to 10 points each, since these require more
time and thought than a test bank question might.
To find the Applications in Connect®, go to “Add Assignment” and select “Question Bank.” Within this question
bank will find a drop-down menu of all the book-level assignments and chapter-level assignments. You can then
select the ones you wish to assign.
Chapter-level quizzes and full chapter test banks are also found in the Question Bank’s drop-down menu. Apply a
relatively low value to each question—for example, 1 or 2 points each—since numerous questions are typically
assigned for each chapter. You can decide when to surface the feedback to students. Selecting to display feedback
after the assignment due date helps to prevent cheating; that is, it keeps students from sharing the correct answers
with other students while the questions are still open and available. For this reason, it is suggested that no feedback
to quizzes and test bank exams be made available until after the assignment is due.
ASSIGNING EXERCISES AND GRADING POLICIES: BEST
PRACTICES
To fully utilize the power of the digital components, it is recommended that you assign the SmartBook® reading and
adaptive learning probes before class meets. Application Exercises can be completed either before or after class; if
they are completed before class, they can sometimes serve as good springboards for class discussions. The chapter
quiz makes a good check on comprehension of the material and may work best if assigned after each class period.
The test bank serves as a good resource for building mid-term or final exams.
More detailed information on SmartBook® and Connect® is available through several resources at McGraw-Hill. A
good starting point is your local Learning Technology Representative, who can be found here:
http://www.mheducation.com/highered/platforms/connect/features-educators.html
Connect® gives instructors a wide array of flexibility in making assignments and creating grading policies.
Instructors may choose to:
• assign as many assignments as appropriate given the level and time commitment expected for the class,
• determine point values for each question/application that works within the total course percentages,
Chapter 13 - Services: The Intangible Product M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
6
• make available multiple attempts per assignment with options of accepting the highest score or averaging all the
attempts together (several attempts are particularly good for homework assignments),
• deduct points for late assignment submissions (percentage deduction per hour/day/week/etc.) or create hard
deadlines thus accepting no late submissions,
• show feedback on application/questions immediately upon submission or at the time the assignment is due for
the whole class, create new assignments or questions from scratch, or edited versions from a variety of provided
resources.
Throughout the IM for each chapter, we integrate materials from the PowerPoint slides and provide summaries for
each of the Connect® Application Exercises at the end of each chapter. These summaries are intended to give you a
sense of the learning goal behind each exercise. We hope this integration of resources will help you to convey core
principles of marketing topics holistically, effectively, and efficiently to your students.
Chapter 13 - Services: The Intangible Product M: Marketing 6th
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Chapter 13
Services: The Intangible Product
Tools for Instructors
• Chapter Overview
• Brief Chapter Outline
• Learning Objectives
• Extended Chapter Outline
• PowerPoint Slides
• Additional Resources
• Connect Application Exercises
Chapter Overview
In this chapter, students learn the difference between marketing a product vs. marketing a service.
Students find that since a service can’t be “seen” or measured with a quantifiable outcome, that the
marketing strategy must be different in marketing services. The building blocks of service quality are the
foundation of the chapter, which then dovetails into how to improve customer service through the
methods to reduce delivery gaps.
Brief Chapter Outline
Services Marketing Differs from Product Marketing
Providing Great Service: The Gaps Model
Service Recovery
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
enhance service delivery with tangible attributes, like a nice atmosphere or price benefits. Services get
produced and consumed at the same time, so marketers must work quickly, and they are more variable
than products, though service providers attempt to reduce this variability as much as possible. Finally,
because consumers cannot stockpile perishable services, marketers often provide incentives to stagger
demand.
Chapter 13 - Services: The Intangible Product M: Marketing 6th
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9
✓
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 (PPT 13-13)
A. The Knowledge Gap: Understanding Customer Expectations (PPT 13-14)
1. Evaluating Service Quality Using Well-Established Marketing Metrics (PPT 13-17)
Marketing Analytics 13.1: Using Analytics to Reduce Wait Time at Kroger describes how Kroger
uses data to learn about customers’ expectations. If there is a Kroger store in the area, have students
ever been there and seen the QueVision system in action? What other aspects of the grocery shopping
experience do students think could be improved?
B. The Standards Gap: Setting Service Standards (PPT 13-21)
C. The Delivery Gap: Delivering Service Quality (PPT 13-22)
1. Empowering Service Providers (PPT 13-23)
2. Support and Incentives for Employees (PPT 13-24)
3. Use of Technology (PPT 13-25)
Social & Mobile Marketing 13.1: When Getting It Right Isn’t Quite as Fun as Getting It Wrong: The
Starbucks Ordering App and the Names on Cups discusses an unexpected outcome of customers
using the Starbucks mobile app to place their orders: Customers found they missed the “good old days”
of baristas misspelling their names on handwritten cups. Which do students think is preferable: the
efficiency provided by mobile ordering or personalized service? Is there a way Starbucks could provide
both?
D. The Communications Gap: Communicating the Service Promise (PPT 13-26)
Adding Value 13.2: Luxury Resorts Partner with Auto Manufacturers to Provide a Ride to
Remember details how when customers’ expectations are exceeded, it can lead to benefits for everyone
involved. Ask students for examples of the last time they received service that exceeded their
expectations.
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.
Chapter 13 - Services: The Intangible Product M: Marketing 6th
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10
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.
III. Service Recovery (PPT 13-28)
A. Listening to the Customers and Involving Them in the Service Recovery (PPT 13-29)
B. Finding a Fair Solution (PPT 13-30)
1. Distributive Fairness
2. Procedural Fairness
C. Resolving Problems Quickly (PPT 13-31)
✓
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?
Additional Resources
The Broadmoor Hotel example in the text is strongly recommended to allow students to apply the five
service quality areas. A good way to do this is to divide the class into 4 or 5 groups and have them
tackle the case. Then open classroom discussion by dialogue in comparing/contrasting the responses
from each of the groups. Of course, a good understanding of the five service qualities is needed before
assigning the case. One good way to do this after discussion/lecture on the topic is to divide the class into
groups. Have each group develop a role-play skit on (1) good customer service incorporating the five
service quality areas and an alternate skit on (2) bad customer service.
Students have fun with the skit exercise and it often brings out some humorous acting moments.
Instructors will want to assign different topics (popular food chain, hotel, college bookstore, retail chain,
etc.) to each group to get them focused on the skit and not thinking up “what” to complete the skit on.
Each group presents the “good” skit first in which the audience (the rest of the class) takes notes and
Chapter 13 - Services: The Intangible Product M: Marketing 6th
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discussion takes place on how the five service qualities were present. The group then performs their “bad
service skit” in which discussion follows on how to incorporate good service techniques and improve the
service gaps.
Online teaching tip: Instructors can have students complete this same exercise by having students
record individual skits/scenarios and uploading them to the online platform. Other learners in the online
environment can then post their analysis on the five service qualities and either their suggestions on
improving the delivery gaps or write a paper outlining the same concepts (meanwhile the other learners
are also preparing their own skits). Instructors may want to pair students on the responses in the online
forum. For fun, instructors may want to have the class use online voting to vote on the best
“performance.”
Slide 9 of the Instructor PowerPoints for this chapter provides a link to a humorous FedEx commercial
(http://www.youtube.com/watch?v=Set-r53xvBI). How do students evaluate delivery services? Is prompt
delivery the only criteria? If a delivery service has a service failure, how can they recover? Another video
in the PowerPoints is a commercial for Trigon, in which a little girl talks about a snotty doctor she recently
visited. What did the company learn from the research they used in these ads?
(http://www.youtube.com/watch?v=adLqv-gQv7w).
Chapter 13 - Services: The Intangible Product M: Marketing 6th
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12
Connect Application Exercises
This section summarizes each Application Exercise available with this chapter. Each summary comprises
an introduction to the exercise, concept review, and follow-up activity. Associated details related to the
learning objectives, activity type, AASCB category, and difficulty levels are also included. These
summaries are intended to guide your course planning; perhaps you want to assign these exercises as
homework or practice, before or after class. For best practices on how and when to assign these
exercises, see the IM Implementation Guide at the beginning of this chapter.
Activity
Type
Learning Objectives 13-
01
02
03
04
05
Wegmans Services Its Employees and Its Customers
Case Analysis
X
X
Services Marketing Differs from Product Marketing
Click & Drag
X
Understanding Service Gaps
Click & Drag
X
Netflix: Service Excellence 24/7
Video Case
X
Sweetwater
Video Case
X
X
X
FedEx: Excellence in Customer Service
Video Case
X
X
X
Transportation Network Services: Uber vs. Lyft vs.
Taxis
Case Analysis
X
X
X
X
ISeeIt Video Case: Service Quality
Video Case
X
X
Wegmans Services Its Employees and Its Customers
▪ Activity Type: Case Analysis
▪ Learning Objectives: 13-01, 13-03
▪ Difficulty: Hard
▪ Activity Summary: This case describes the unique customer service approach of Wegmans, a
supermarket chain. Students answer questions applying chapter concepts to the case.
Activity
▪ Introduction: Many grocery stores strive to meet customers' needs. However, for Wegmans, that is
not enough. Wegmans works to exceed customers' needs and expectations on a daily basis. In an
industry where over three-fourths of consumers do not believe that traditional supermarkets can
provide anything different from nontraditional markets such as Walmart, Wegmans has been able to
develop a strong and loyal customer base.
▪ Concept Review: Providing good customer service can add value to a firm's products. Even firms
that primarily sell tangible goods (such as clothing stores) view service as a way to establish a
sustainable competitive advantage. Firms can be pure services-based businesses or they can use
service as a differentiating tool to help them sell physical products. The marketing of services differs
from product marketing, however, in four fundamental ways: services are intangible, inseparable,
variable, and perishable.
Chapter 13 - Services: The Intangible Product M: Marketing 6th
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Follow-Up Activity
For another, photo-intensive view of what’s good about Wegmans, show the following in class:
http://www.buzzfeed.com/rachelysanders/why-wegmans-is-the-greatest-supermarket-ever
You can ask students to note the following:
▪ Which items on the list are related to products, and which to services? The list points out that grocery
stores are somewhere in the middle of the product/service continuum. And note that Wegmans is
exemplary in both areas. The case talks mostly about services, but the product assortment is equally
attractive.
▪ The Wegmans formula truly creates loyal customers and fantastic word of mouth. Skim the
comments—when was the last time you saw such unanimously glowing comments on the Internet?
▪ Note the number of items that have to do with the Tangibles component of service quality.
Services Marketing Differs from Product Marketing
▪ Activity Type: Click & Drag
▪ Learning Objectives: 13-01
▪ Difficulty: Medium
▪ Activity Summary: Students are presented with eight statements about services—four related to a
health club and four related to a hotel. They must classify each of them in two ways: (a) by the
difference between products and services the statement represents, and (b) whether the statement
represents a customer experience or a marketing activity.
Activity
▪ Introduction: Two national firms, the Prestige Hotel and Pro Fitness chains, strive to deliver quality
service to their customers. To do so, they address the four core differences between services and
goods. In the following scenario, you will be asked to categorize statements about the customer's
experiences and the firm's marketing efforts by the core difference they represent.
▪ Concept Review: Economies of developed countries like the United States have become
increasingly dependent on services. For example, service industries like retail and information
services account for about two-thirds of the U.S. gross domestic product (GDP) and the lion's share
of U.S. jobs. The marketing of services differs from goods marketing because of the four fundamental
ways in which services differ from goods: They are intangible, inseparable, variable, and perishable.
Follow-Up Activity
In small groups, have students discuss how the four characteristics of services apply to university
education. Some ideas:
▪ Intangibility: Although education has tangible elements, the actual learning process is intangible, and
it can sometimes be difficult to assess its long-term value until much later.
▪ Inseparability: The instructor and the student both have important roles in the delivery of educational
services. Classroom education is “more inseparable” than asynchronous online classes since the
student can, at least up to a point, set his/her own schedule for learning.
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▪ Perishability: If a class ends up having two or three empty spaces in the fall, those spaces can’t be
“saved” until the spring, when the class may have a waiting list.
▪ Variability: Many factors can contribute to variability in the educational experience. Obviously,
variability can come from differences in instructors’ approaches, or in differences in mood or alertness
of the instructor from one day to the next. An old, broken-down classroom with uncomfortable desks
may lead to a different experience from one in a comfortable, bright, attractive room. Different
students may experience the same class in different ways because of variation in their knowledge,
experience, interest level, and degree of effort.
Understanding Service Gaps
▪ Activity Type: Click & Drag
▪ Learning Objectives: 13-02
▪ Difficulty: Medium
▪ Activity Summary: The student is presented with four examples of problems caused by service
gaps, and four possible solutions for problems related to gaps, and must classify these items
according to the related gap.
Activity
▪ Introduction: Apartment complexes often look for ways to recruit new tenants and retain current
tenants. Although apartment complexes offer the tangible benefit of shelter to their tenants, many
apartment complexes also offer additional services to tenants to encourage tenants to stay or to
support the rent prices. The following scenario identifies the several service gaps of a company that
runs an apartment complex as well as solutions for reducing these service gaps.
▪ Concept Review: Customers have certain expectations about how a service should be delivered. A
service gap occurs when the delivery of a service fails to meet customer expectations. There are four
types of service gaps: knowledge gap, standards gap, delivery gap, and the communications gap. It is
important for marketers to identify these gaps and develop strategies for minimizing them.
Follow-Up Activity
Divide the students into groups and have one student in each group briefly describe a service failure s/he
experienced (either as the customer or as the provider). Ask the group to decide which gap(s) caused the
problem, and identify what could have been done differently to prevent the problem. Then share the
stories and analysis.
This topic could also be assigned as an individual writing prompt.
Netflix: Service Excellence 24/7
▪ Activity Type: Video Case
▪ Learning Objectives: 13-02
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15
▪ Difficulty: Medium
▪ Activity Summary: This case explains how Netflix delivers quality service to its customers. After the
video ends, students are asked questions about the video and related course concepts.
Activity
▪ Introduction: Netflix is an online movie rental service that distributes more than two million DVDs per
day. Customers are offered a variety of experiences as part of the service at the Netflix.com website:
They can rate movies, create a personalized movie queue, and watch previews customized to their
tastes.
▪ Concept Review: A knowledge gap occurs when marketers don't understand what their customers
want. They may not be providing customers enough service or the right kind of service, in which case
customers will be disappointed. To understand customer expectations, marketers analyze service
quality through comprehensive studies and by interacting with customers.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
Class discussion: What new challenges does Netflix face in delivering quality service, now that so much
of its business involves streaming video instead of DVD shipments? What gap(s) do these challenges fall
into? (For this discussion to work, you need to have some Netflix customers in your class; it’s a popular
enough service that you will probably have at least a few.)
Some possible answers:
▪ The streaming service has fewer movies available than does the DVD service; this is especially true
for the newest and oldest titles. A DVD customer who switches to streaming might be disappointed if
they were expecting a comparable selection. This is a communication gap, not a knowledge gap:
Netflix certainly understands that customers want more movies, but they have contractual issues to
work out with movie studios.
▪ With the DVD service, Netflix’s service quality is dependent on good performance by the US Postal
Service. The company has worked closely with the USPS to ensure fast delivery, and located
distribution centers close to as many customers as possible.
But with streaming, Netflix’s performance depends on every Internet provider that sits between its
servers and its customers’ computers, creating major potential for delivery gaps. (You may also want
to discuss the net neutrality debate if you’re up to date on it.)
Sweetwater
▪ Activity Type: Video Case
▪ Learning Objectives: 13-02, 13-03, 13-05
▪ Difficulty: Medium
▪ Activity Summary: This case discusses Sweetwater Sound, an online retailer of audio equipment
and music-related products. After the video ends, students are asked questions about the video and
related course concepts.
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16
Activity
▪ Introduction: Sweetwater Sound was started in 1979 as a professional recording studio. Now named
simply Sweetwater, it has evolved into one of the leading online retailers of recording and audio
equipment, musical instruments, and accessories. Central to its success is the company's passion for
exceptional customer service. Sweetwater offers free shipping and a free 2-year warranty on all items
sold. It hires staff with real-world experience in music and recording and then extensively trains them
on delivering exceptional service. Sweetwater's sales engineers personally follow up on all customer
orders. Sweetwater also offers extensive post-sales support. By fully understanding customer service
quality, Sweetwater is among the best at actually delivering it.
▪ Concept Review: Today, services account for almost 80% of U.S. GDP. Beyond this economic
impact, providing exceptional customer service is a critical component in delivering value to
customers. Marketing services has some fundamental differences from marketing tangible goods. To
deliver exceptional service, marketers need to understand and reduce various service gaps. They
also need to understand the five dimensions of service quality. If things go wrong with the service
delivery, prompt and fair service recovery is imperative. In this activity, you will be applying your
knowledge of marketing services to the specific case of Sweetwater.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
FedEx: Excellence in Customer Service
▪ Activity Type: Video Case
▪ Learning Objectives: 13-02, 13-03, 13-05
▪ Difficulty: Medium
▪ Activity Summary: FedEx prides itself on excellent customer service. This video case describes
some of its initiatives. After the video ends, students are asked questions about the video and related
course concepts.
Activity
▪ Introduction: Delivering high-quality service is a top priority at FedEx. The company seeks to offer
excellent, consistent service across all communication channels and through the entire customer
experience. This philosophy permeates the entire organization. Attention to service quality helps to
generate customer loyalty and repeat business, which is one key to FedEx’s success.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
With an operation as large and complex as FedEx’s it is important to design and operate their services
efficiently and effectively. Have the students work in groups, with each group choosing one of the gaps in
the Gaps Model. If they were managers at FedEx responsible for closing that gap, what problems would
they look out for, and what actions would they take?
Chapter 13 - Services: The Intangible Product M: Marketing 6th
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17
Transportation Network Services: Uber vs. Lyft vs. Taxis
▪ Activity Type: Case Analysis
▪ Learning Objectives: 13-01, 13-02, 13-03, 13-04
▪ Difficulty: Medium
▪ Activity Summary: This case discusses how Uber and Lyft operate, how they compare to taxi
services, and the challenges they face. Students answer questions applying chapter concepts to the
case.
Activity
▪ Introduction: Local transportation options have expanded recently due to the launch of Uber and
Lyft; these services seek to address some of the problems with taxi services. The goal of this
exercise is to check your understanding of services marketing and management frameworks by
applying these frameworks to the services offered by Uber and Lyft. This activity is important because
services represent a large portion of our economy, and effective management and marketing of
services is crucial to the success of many businesses.
Follow-Up Activity
Ask the class if anyone has used Uber or Lyft, and how the service experienced performed on the five
building blocks of service quality (reliability, responsiveness, assurance, empathy, and tangibles). Also,
ask if any students have driven for Uber or Lyft, or have considered doing so, and to discuss the
challenges of driving for the companies in terms of the gaps model. Although both companies enforce
some standards to try to standardize service quality, the rating system is probably the most powerful tool
for closing any delivery gap, since drivers know that low ratings will cause them to be dropped by the
service.
ISeeIt Video Case: Service Quality
▪ Activity Type: Video Case
▪ Learning Objectives: 13-01, 13-03
▪ Difficulty: Easy
▪ Activity Summary: This video case explores different aspects of service quality for a coffee shop.
Activity
▪ Introduction: Service quality is difficult to measure given that each customer has a different
expectation about a service experience. While the service gap, which is the difference between
customers' expectations and the service experienced, can be difficult to analyze, Martha can still
focus on ensuring that every customer has a similar quality experience. To do this, she focuses on
the tangibles—making sure dirty tables are cleaned, and ensuring the reliability of the Coffee
Collective’s coffee by training her baristas on how to make each cup of coffee taste the same. Martha
makes sure her servers are responsive to the needs of the customer by making sure that they know
their jobs well. She also encourages employees to have empathy for their customers so that
Chapter 13 - Services: The Intangible Product M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
18
employees can put themselves in the customer’s shoes. By focusing on these service quality
attributes, she hopes to ensure that every customer leaves satisfied and becomes a loyal customer
who talks positively about their experiences.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
