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CHAPTER
SERVICES: THE INTANGIBLE PRODUCT
12
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
12-2
LEARNING OBJECTIVES
Services: The Intangible Product
LO1 Describe how the marketing of services differs from the marketing of products.
LO2Discuss the four gaps in the Service Gap Model.
LO3 Examine the five service quality dimensions.
LO4Explain the zone of tolerance concept.LO5Identify three service recovery
strategies.
12-3
Apple Genius Bar
“90 percent of Apple customers report they are very satisfied with its customer service.”
©Andy Kropa 2006/Redux
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Service
Lands’ End Website
PhotoLink/Getty Images
12-5
The Service Product Continuum
Most offerings lie somewhere in the middleMost offerings lie somewhere in the middle
1. Dynamic Graphics/Jupiter Images2. ©Jose Fuste Raga/CORBIS
3. The McGraw-Hill Companies, Inc/Andrew esek, Photographer4. John A Rizzo/Getty Images
5. ©Charles Bowman/Alamy6. ©Photodisc
12 3
4 5 6
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Offering a service with your products
©General Mills
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Economic Importance of Service
Developed economies are
increasingly service oriented economies
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Services Marketing Differs from Product Marketing
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Intangible
• Requires using cues to aid customers
• Atmosphere is important to convey value
• Images are used to convey benefit of value
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Inseparable Production and Consumption
• Production and consumption are simultaneous
• Little opportunity to test a service before use
• Lower risk by offering guarantees or warranties
FedEx Commercial
Ryan McVay/Getty Images
12-11
Variable
Courtesy Geek Housecalls, Inc.
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Perishable
How are each of these perishable services?How are each of these perishable services?
John Foxx/Getty Images PhotoLink/Getty Images Courtesy Geek Housecalls, Inc.
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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?
Check Yourself
12-14
Providing Great Service: The Gaps Model
12-15
The Knowledge Gap: Knowing What Customers Want
The Knowledge Gap
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McDonald’s 24/7
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Filling the Knowledge Gap
Photodisc Collection/Getty Images
12-18
Understanding Customer Expectations
versus
Mel Curtis/Getty Images Kim Steele/Getty Images
12-19
Evaluating Service Quality
12-20
Royalty-Free/CORBIS
Marketing Research: Understanding Customers
Voice-of-customer program
Voice-of-customer program YouTube
Commercial
The McGraw-Hill Companies, Inc/Andrew Resek, photographer
Liq
uid
libra
ry/D
yn
am
ic
Gra
ph
ics/
Jup
iter
Imag
es
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Zone of Tolerance
12-22
Customer Evaluation of Service Quality
12-23
The Standards Gap: Setting Service Standards
Developing systems to ensure high-quality service
Developing systems to ensure high-quality service
Setting standards for qualitySetting standards for quality
Royalt
y-F
ree/C
OR
BIS
12-24
The Delivery Gap: Delivering Service Quality
12-25
What Airline Workers Learn from NASCAR
12-26
Empowering Service Providers
Don Bishop/Getty Images
12-27
Providing Support and Incentives
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Use of Technology
• RFID (radio frequency identification device)
• Retail store assistant (RSA)
Courtesy IBM Corporation
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The Communications Gap: Communicating the Service Promise
J.D. Power and Associates Website
Getty Images
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1. Explain the four service gaps identified by the Gaps Model.
2. List at least two ways to overcome each of the four service gaps.
Check Yourself
12-31
Service Recovery
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Listening to the Customer
©Digital Vision
©Digital Vision/Punchstock
12-33
Finding a Fair Solution
Royalty-Free/CORBIS
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Resolving Problems Quickly
• The longer it takes to resolve service failure the more irritated the customers
• It is in the firms best interest to solve problems quickly
©M
ich
ael N
ew
man
/Ph
oto
Ed
it,
Inc
12-35
Check Yourself
1. Why is service recovery so important to companies?
2. What can companies do to recover from a service failure?
