DISCUSSION STARTERS
Discussion Starter 1: Characteristics of Services
Services have a number of distinct characteristics (see list below) that create a unique set of marketing
challenges for services marketers. Your task in this exercise is to review the following statements to
identify its particular distinguishing service characteristic.
1. “I’m so disappointed with the restaurant last night. We went there for the first time a few weeks
ago and it was fantastic, but last night the food was overcooked and the service was very slow.”
2. “The plane back home was only half full – that’s a lot of lost income – they should work harder to
fill those seats”
3. “I offer a one hour free consultation first – for us both to see if I’m the right lawyer for you.”
4. “I want my hair cut long on one side, short on the other, and I want it to be colored purple.”
5. “Our (bank) customers, who have less than $50 in their accounts, really aren’t worth having!”
6. “It’s so hard to choose an accountant, it is so difficult to know what you’re really going to get”
7. “I’m never going back to that shop – all the staff are either rude or lazy.”
ASK:
Connect each of the above statements with a service characteristic (using the following list).
1. Services are harder to evaluate (before and after purchase)
2. Services are more variable
3. Services are more perishable
4. Services can be more customized
5. Services are sold before production
6. Services can be unprofitable
7. Services are people reliant
Why is it important that service marketers understand these characteristics? How does it affect their
marketing activities?
Discussion Starter 2: Making the Most of Intangibility
ASK: How many of you have ever heard of a town called Winslow, Arizona?
Arizona….”
ASK: How could Winslow Arizona capitalize on this brush with fame?
Winslow, which is about 100 miles from the Grand Canyon, was located on the main road to California,
Route 66. In the 1970s an interstate highway was built, which did not run through Winslow. Winslow
nearly became a ghost town, until 1997 when the city decided it was time to capitalize on its one
intangible asset: “Take It Easy.”
Chapter 13: Error! Unknown document property name. 256
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use.
suggested. Winslow was also lucky to be located on the now legendary Route 66, which recently has
experienced a resurgence of interest.
Travelers are now coming back to what was once a near ghost town, thanks to intangible features: a song
and nostalgia for Route 66 road-tripping culture.
Discussion Starter 3: Pricing the Intangible
ASK: When you are delivering a service which cannot be evaluated during or even immediately after
consumption, how do you set price?
ASK: Why is it important to have price set relative to your competition? How do consumers use price
when purchasing an unknown good?
Discussion Starter 4: Service Is Everything at the Four Seasons
At Four Seasons, guests expect more than top-quality facilities—they expect top-notch service. Four
Seasons has made its name by delivering services geared to each guest’s individual preferences. For
instance, the company offers a 15-minute room service menu for guests in a hurry. Customers can have
their orders brought to the checkout, to their rooms, and even to their cars! Prepared meals are provided
for guests to take with them through the airport. The company does much digital marketing, including
hosting virtual wine tastings. During these events, participants post comments on the company’s Twitter
account while trying out the wines either at Four Seasons hotels or on their own.
ASK:
Describe whether Four Seasons is a high customer contact or low customer contact business.
What are some unique ways that Four Seasons promotes its services?
Are guests more likely to use experience or credence qualities in assessing Four Season’s services?
CLASS EXERCISES
Class Exercise 1: Service Characteristics
This exercise focuses on how recognizing the characteristics of services can enhance services marketing
strategies.
Prompt for students and answers: The St. Louis Cardinals baseball organization is owned by Anheuser-
Busch, which also operates Busch Stadium, home of the Cardinals. Despite being located in a relatively
small market, the Cardinals have set attendance records. Much of this success is the result of effective
services marketing at the ballpark, which makes attending games an enjoyable experience for fans,
whether the Cardinals win or lose.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter 13: Error! Unknown document property name. 262
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use.
of a service. Intangibility makes experiencing a service prior to purchase difficult, making promotion
more difficult. Heterogeneity also can make promotion challenging.
Pricing of services is affected by the perishability of services. Because services cannot be stored,
pricing often fluctuates to account for lack of or too much demand. The inseparability of services is
products as having higher quality.
4. What is service quality? Why do customers find it difficult to judge service quality?
Service quality can be defined as customers’ perceptions of how well a service meets or exceeds their
expectations. Customers, not organizations, judge service quality; therefore, service marketers must
5. Identify and discuss the five components of service quality. How do customers evaluate these
components?
The five components of service quality are.
• The tangibles component includes the physical evidence of the service. Customers evaluate
these through the appearance of the facilities, the appearance of service personnel, and the
tools or equipment used to provide the service.
• The reliability component includes the consistency and dependability in performing the
service. Customers evaluate this through criteria such as accurate billing or recordkeeping
and on-time performance of services.
6. What is the significance of tangibles in service marketing?
Tangibles include the facilities, employees, or communications associated with a service. They help
to form a part of the product and are often the only aspects of a service that can be viewed prior to
