CHAPTER 13
Services Marketing
TEACHING RESOURCES QUICK REFERENCE GUIDE
Resource
Location
Purpose and Perspective
IRM, p. 255
Lecture Outline
IRM, p. 256
Discussion Starters
IRM, p. 264
Class Exercises
IRM, p. 266
Semester Project
IRM, p. 269
Answers to Developing Your Marketing Plan
IRM, p. 270
Answers to Discussion and Review Questions
IRM, p. 271
Comments on the Cases
IRM, p. 274
Video Case 13.1
IRM, p. 274
Case 13.2
IRM, p. 275
Strategic Case 5
IRM, p. 276
Examination Questions: Essay
Cognero
Examination Questions: Multiple-Choice
Cognero
Examination Questions: True-False
Cognero
PowerPoint Slides
Instructor’s website
Note: Additional resources may be found on the accompanying student and instructor websites at
www.cengagebrain.com.
PURPOSE AND PERSPECTIVE
This chapter explores concepts that apply specifically to products that are services. The organizations that
market services include for-profit firms (e.g., those offering financial, personal, and professional services)
and nonprofit organizations (e.g., educational institutions, churches, charities, and governments). This
chapter begins with a discussion of the huge importance of service industries in economies, particularly in
developed countries like the United States. We then address the unique characteristics of services. Next,
we deal with the challenges these characteristics pose in developing and managing marketing mixes for
services. We then discuss customers’ judgment of service quality and the importance of delivering high–
quality services. Finally, we define nonprofit marketing and examine the development of nonprofit
marketing strategies.
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3. Because of the intangibility of services, customers rely more heavily on price as an indicator
of quality.
a. If customers perceive the services in a category as being similar in quality, and if the
quality of the services is difficult to judge even after purchase, customers may seek the
lowest-priced provider.
b. If quality varies, customers may rely on the price-quality association.
4. Under certain conditions, such as when the service is perceived as generic in nature,
marketers may be limited with respect to setting prices.
a. Market conditions may limit prices for certain services.
1. Service quality is difficult to evaluate because services have few search qualities—tangible
attributes that can be evaluated before the purchase (such as color, style, size, feel, or fit).
2. Service quality must instead be judged on experience and credence qualities.
a. Experience qualities are attributes that can be judged only during purchase or
consumption of a service.
b. Credence qualities are attributes consumers are unable to evaluate even after purchasing
and consuming a service because of lack of knowledge or skill.
c. Evaluation of a good is much easier because all goods possess search qualities, tangible
attributes such as color, style, size, feel, or fit that can be evaluated prior to purchase.
3. In spite of the difficulties in evaluating quality, service quality may be the only way that
customers can choose one service over another.
4. Marketers must learn how customers evaluate service quality (see Table 13.2).
a. Tangible elements, such as the appearance of facilities and employees, are often the only
aspects of a service which can be viewed before purchase and consumption.
