Describe how the marketing of services differs from the marketing of products.
Discuss the four gaps in the Service Gap Model.
Examine the five service quality dimensions.
Explain the zone of tolerance.
Identify three service recovery strategies.
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SERVICES: THE INTANGIBLE PRODUCT13Describe how the marketing of services differs from the marketing of products.Discuss the four gaps in the Service Gap Model.Examine the five service quality dimensions.Explain the zone of tolerance.Identify three service recovery strategies.Services: The Intangible ProductLO1LO2LO3LO4LO5Services Marketing Differs from Product MarketingIntangibleRequires using cues to aid customersAtmosphere is important to convey valueImages are used to convey benefit of value©Mark Richards/PhotoEdit.Inseparable Production and ConsumptionProduction and consumption are simultaneousLittle opportunity to test a service before useLower risk by offering guarantees or warranties Geek Housecalls, Inc.PerishableHow are each of these perishable services?John Foxx/Getty ImagesPhotoLink/Getty ImagesCourtesy Geek Housecalls, Inc.CHECK YOURSELFWhat are the four marketing elements that distinguish services from products?Why can’t we separate firms into just service or just product sellers?The Knowledge Gap: Understanding Customer ExpectationsThe Knowledge GapUnderstanding Customer ExpectationsversusMel Curtis/Getty ImagesKim Steele/Getty ImagesEvaluating Service QualityThe appearance of physical facilities, equipment, personnel, and communication materials.TANGIBLESThe caring, individualized attention provided to customers.EMPATHYThe knowledge of and courtesy by employees and their ability to convey trust and confidenceASSURANCEThe willingness to help customers and provide prompt service.RESPONSIVENESSThe ability to perform the service dependably and accurately.RELIABILITYThe Standards Gap: Setting Service StandardsDeveloping systems to ensure high-quality serviceSetting standards for qualityRoyalty-Free/CORBISThe Delivery Gap: Delivering Service QualityThe Communications Gap: Communicating the Service PromiseJ.D. Power & AssociateGetty ImagesCHECK YOURSELFExplain the four service gaps identified by the Gaps Model.List at least two ways to overcome each of the four service gaps.Service RecoveryCHECK YOURSELFWhy is service recovery so important to companies?What can companies do to recover from a service failure?The communications gap refers to the difference between the actual service provided to customers and the service that the firm’s promotion program promises.GlossaryThe delivery gap is the difference between the firm’s service standards and the actual service it provides to customers.GlossaryThe knowledge gap reflects the difference between customers’ expectations and the firm’s perception of those customer expectations. GlossaryA service is any intangible offering that involves a deed, performance, or effort that cannot be physically possessed.GlossaryService quality is the customers’ perceptions of how well a service meets or exceeds their expectations.GlossaryThe standards gap is the difference between the firm’s perceptions of customers’ expectations and the service standards it sets.GlossaryA voice-of-customer (VOC) program collects customer inputs and integrates them into managerial decisions.GlossaryA zone of tolerance is the area between customers’ expectations regarding their desired service and the minimum level of acceptable service.Glossary