MGT 201 SEU Service Quality Customer Satisfaction and Customer Loyalty Questions

Description


Review Chapter 13: Services: The Intangible Products, then
give an answer:
Assume you were hired by the local grocery store to help assess
its service quality. How would you go about undertaking this
project?
What mobile apps do you use that help facilitates your
transactions with a specific retailer or service provider? Would
you rather use the apps or engage in a face-to-face relationship
with a person? How, if at all would your parents’ answers to
these two questions differ?
Because learning changes everything.®
Chapter 13
Services: The Intangible
Product
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Learning Objectives
Learning Objective 13.1 Describe how the marketing of
services differs from the marketing of products.
Learning Objective 13.2 Discuss the four gaps in the
Service Gaps Model.
Learning Objective 13.3 Examine the five service quality
dimensions.
Learning Objective 13.4 Explain the zone of tolerance.
Learning Objective 13.5 Identify three service recovery
strategies.
© McGraw Hill LLC
3
Service
Any intangible offering
that involves a deed,
performance, or effort
that cannot be
physically possessed.
By providing good
customer service, firms
add value to their
products and services.
© McGraw Hill LLC
Pro Ipad on display at the Apple Store in Bologna, Spain.
Shutterstock / PriceM
4
The Service-Product Continuum
Doctor
Dry cleaner
Restaurant
These photos illustrate the continuum from
a pure service to a pure good. Most
offerings lie somewhere in the middle and
include some service and some good (i.e.,
a hybrid of the two).
Grocery store
© McGraw Hill LLC
Left: Viacheslav Iakobchuk/Alamy Stock Photo; Middle: McGraw-Hill Global Education Holdings, LLC; Right: Jacob Lund/Shutterstock; Bottom: Jeff Greenough/Blend Images/Getty Images
5
Economic Importance of Service
Access the text alternative for slide images.
© McGraw Hill LLC
6
Services Marketing Differs from Product
Marketing
EXHIBIT 13.2 Core Differences between Services and Goods
© McGraw Hill LLC
7
Intangible
Services cannot be
touched, tasted, or
seen.
Requires using cues to
aid customers.
Atmosphere is important
to convey value.
Images are used to
convey benefit of value.
© McGraw Hill LLC
Because it is difficult to show a service, Amusement
park owners evoke images in their advertising of
happy families and friends enjoying a ride at one of
their parks.
Shutterstock / bom
8
Inseparable Production and Consumption
Production and
consumption are
simultaneous.
Little opportunity for a
consumer to test a
service before use.
Lower risk by offering
guarantees or
warranties.
© McGraw Hill LLC
© McGraw-Hill Education
9
Heterogeneous
The more humans are
needed to provide a
service, the more likely
there is to be
heterogeneity or
variability in the service’s
quality.
Solutions
• Technology.
• Training.
• Automation.
© McGraw Hill LLC
sonya etchison/Shutterstock
10
Perishable
Services are perishable
in that they cannot be
stored for use in the
future.
Ski areas, airlines,
cruise ships, movie
theaters, and
restaurants must find
ways to deal with the
challenges of
perishability.
© McGraw Hill LLC
spinout/Getty Images
11
PROGRESS CHECK (1 of 3)
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?
© McGraw Hill LLC
12
Providing Great Service:
The Service Gaps Model
EXHIBIT 13.3 Service Gaps Model for Improving Retail Service Quality
Sources: Valarie Zeithaml, A. Parasuraman, and Leonard Berry, Delivering Quality Customer Service. (New York: Free Press, 1990);
Valarie Zeithaml, Leonard Berry, and A. Parasuraman, “Communication and Control Processes in the Delivery of Service Quality,”
Journal of Marketing 52, no. 2 (April 1988), 35-48.
Access the text alternative for slide images.
© McGraw Hill LLC
13
Knowledge Gap:
Understanding Customer Expectations
Access the text alternative for slide images.
© McGraw Hill LLC
14
Understanding Customer Expectations
Expectations are based
on knowledge and
experience.
Expectations vary
according to type of
service.
Expectations vary
depending on the
situation.
© McGraw Hill LLC
Nikada/Getty Images
15
Evaluating Service Quality Using WellEstablished Marketing Metrics
EXHIBIT 13.4 Dimensions of Service Quality
Access the text alternative for slide images.
© McGraw Hill LLC
16
Marketing Research:
Understanding Customers
Voice-of-customer (VOC) program: Collects
customer inputs and integrates them into
managerial decisions.
Zone of tolerance: Refers to the area between
customers’ expectations regarding their desired
service and the minimum level of acceptable
service.
© McGraw Hill LLC
17
Zone of Tolerance
Used to Measure How Well Firms Perform on the Five Service Quality Dimensions
Access the text alternative for slide images.
© McGraw Hill LLC
18
Exhibit 13.5: Customers’ Evaluation of
Service Quality for Lou’s Local Diner
EXHIBIT 13.5 Customers’ Evaluation of Service Quality
Access the text alternative for slide images.
© McGraw Hill LLC
19
The Standards Gap: Setting Service
Standards
Difference between the
firm’s perceptions of
customer expectations
and the service
standards it sets.
Need to set standards
for quality.
Develop systems to
ensure the standards
are met.
© McGraw Hill LLC
UpperCut Images/SuperStock
20
The Delivery Gap:
Delivering Service Quality
© McGraw Hill LLC
21
Empowering Service Providers
Allowing employees to
make decisions about
how service is provided
to customers.
© McGraw Hill LLC
Purestock/SuperStock
22
Support and Incentives for Employees
Access the text alternative for slide images.
© McGraw Hill LLC
23
Use of Technology
EXHIBIT 13.6 How Technology Is Augmenting the Human Effort
Access the text alternative for slide images.
© McGraw Hill LLC
McGraw-Hill Global Education Holdings, LLC
24
Communications Gap
Difference between the Actual Service Provided and
the Service the Firm Promises
Manage customer
expectations.
Promise only what you
can deliver.
Communicate service
expectations.
© McGraw Hill LLC
Shutterstock/ALPA PROD
25
Service Quality, Customer Satisfaction, and
Loyalty
Good service quality leads to satisfied and loyal
customers.
Postpurchase Evaluation leads to satisfaction,
dissonance, or loyalty.
© McGraw Hill LLC
26
PROGRESS CHECK (2 of 3)
1. Explain the four service gaps identified by the
Service Gaps Model.
2. List at least two ways to overcome each of the
four service gaps.
© McGraw Hill LLC
27
Service Recovery
© McGraw Hill LLC
28
Listening to the Customers and Involving
Them in Service Recovery
Customers can get
emotional over a service
failure.
Often customers just
want someone to listen.
© McGraw Hill LLC
leaf/123RF
29
Finding a Fair Solution
Distributive fairness.
Procedural fairness.
© McGraw Hill LLC
Andriy Popov/123RF
30
Resolving Problems Quickly
The longer it takes to resolve service failure, the
more irritated the customer will become and the
more people the customer will tell.
It is in the firm’s best interest to solve problems
quickly.
© McGraw Hill LLC
31
PROGRESS CHECK (3 of 3)
1. Why is service recovery so important to
companies?
2. What can companies do to recover from a
service failure?
© McGraw Hill LLC
32
Because learning changes everything.
®
www.mheducation.com
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Because learning changes everything.®
Chapter 13
Services: The Intangible
Product
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Learning Objectives
Learning Objective 13.1 Describe how the marketing of
services differs from the marketing of products.
Learning Objective 13.2 Discuss the four gaps in the
Service Gaps Model.
Learning Objective 13.3 Examine the five service quality
dimensions.
Learning Objective 13.4 Explain the zone of tolerance.
Learning Objective 13.5 Identify three service recovery
strategies.
© McGraw Hill LLC
3
Service
Any intangible offering
that involves a deed,
performance, or effort
that cannot be
physically possessed.
By providing good
customer service, firms
add value to their
products and services.
© McGraw Hill LLC
Pro Ipad on display at the Apple Store in Bologna, Spain.
Shutterstock / PriceM
4
The Service-Product Continuum
Doctor
Dry cleaner
Restaurant
These photos illustrate the continuum from
a pure service to a pure good. Most
offerings lie somewhere in the middle and
include some service and some good (i.e.,
a hybrid of the two).
Grocery store
© McGraw Hill LLC
Left: Viacheslav Iakobchuk/Alamy Stock Photo; Middle: McGraw-Hill Global Education Holdings, LLC; Right: Jacob Lund/Shutterstock; Bottom: Jeff Greenough/Blend Images/Getty Images
5
Economic Importance of Service
Access the text alternative for slide images.
© McGraw Hill LLC
6
Services Marketing Differs from Product
Marketing
EXHIBIT 13.2 Core Differences between Services and Goods
© McGraw Hill LLC
7
Intangible
Services cannot be
touched, tasted, or
seen.
Requires using cues to
aid customers.
Atmosphere is important
to convey value.
Images are used to
convey benefit of value.
© McGraw Hill LLC
Because it is difficult to show a service, Amusement
park owners evoke images in their advertising of
happy families and friends enjoying a ride at one of
their parks.
Shutterstock / bom
8
Inseparable Production and Consumption
Production and
consumption are
simultaneous.
Little opportunity for a
consumer to test a
service before use.
Lower risk by offering
guarantees or
warranties.
© McGraw Hill LLC
© McGraw-Hill Education
9
Heterogeneous
The more humans are
needed to provide a
service, the more likely
there is to be
heterogeneity or
variability in the service’s
quality.
Solutions
• Technology.
• Training.
• Automation.
© McGraw Hill LLC
sonya etchison/Shutterstock
10
Perishable
Services are perishable
in that they cannot be
stored for use in the
future.
Ski areas, airlines,
cruise ships, movie
theaters, and
restaurants must find
ways to deal with the
challenges of
perishability.
© McGraw Hill LLC
spinout/Getty Images
11
PROGRESS CHECK (1 of 3)
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?
© McGraw Hill LLC
12
Providing Great Service:
The Service Gaps Model
EXHIBIT 13.3 Service Gaps Model for Improving Retail Service Quality
Sources: Valarie Zeithaml, A. Parasuraman, and Leonard Berry, Delivering Quality Customer Service. (New York: Free Press, 1990);
Valarie Zeithaml, Leonard Berry, and A. Parasuraman, “Communication and Control Processes in the Delivery of Service Quality,”
Journal of Marketing 52, no. 2 (April 1988), 35-48.
Access the text alternative for slide images.
© McGraw Hill LLC
13
Knowledge Gap:
Understanding Customer Expectations
Access the text alternative for slide images.
© McGraw Hill LLC
14
Understanding Customer Expectations
Expectations are based
on knowledge and
experience.
Expectations vary
according to type of
service.
Expectations vary
depending on the
situation.
© McGraw Hill LLC
Nikada/Getty Images
15
Evaluating Service Quality Using WellEstablished Marketing Metrics
EXHIBIT 13.4 Dimensions of Service Quality
Access the text alternative for slide images.
© McGraw Hill LLC
16
Marketing Research:
Understanding Customers
Voice-of-customer (VOC) program: Collects
customer inputs and integrates them into
managerial decisions.
Zone of tolerance: Refers to the area between
customers’ expectations regarding their desired
service and the minimum level of acceptable
service.
© McGraw Hill LLC
17
Zone of Tolerance
Used to Measure How Well Firms Perform on the Five Service Quality Dimensions
Access the text alternative for slide images.
© McGraw Hill LLC
18
Exhibit 13.5: Customers’ Evaluation of
Service Quality for Lou’s Local Diner
EXHIBIT 13.5 Customers’ Evaluation of Service Quality
Access the text alternative for slide images.
© McGraw Hill LLC
19
The Standards Gap: Setting Service
Standards
Difference between the
firm’s perceptions of
customer expectations
and the service
standards it sets.
Need to set standards
for quality.
Develop systems to
ensure the standards
are met.
© McGraw Hill LLC
UpperCut Images/SuperStock
20
The Delivery Gap:
Delivering Service Quality
© McGraw Hill LLC
21
Empowering Service Providers
Allowing employees to
make decisions about
how service is provided
to customers.
© McGraw Hill LLC
Purestock/SuperStock
22
Support and Incentives for Employees
Access the text alternative for slide images.
© McGraw Hill LLC
23
Use of Technology
EXHIBIT 13.6 How Technology Is Augmenting the Human Effort
Access the text alternative for slide images.
© McGraw Hill LLC
McGraw-Hill Global Education Holdings, LLC
24
Communications Gap
Difference between the Actual Service Provided and
the Service the Firm Promises
Manage customer
expectations.
Promise only what you
can deliver.
Communicate service
expectations.
© McGraw Hill LLC
Shutterstock/ALPA PROD
25
Service Quality, Customer Satisfaction, and
Loyalty
Good service quality leads to satisfied and loyal
customers.
Postpurchase Evaluation leads to satisfaction,
dissonance, or loyalty.
© McGraw Hill LLC
26
PROGRESS CHECK (2 of 3)
1. Explain the four service gaps identified by the
Service Gaps Model.
2. List at least two ways to overcome each of the
four service gaps.
© McGraw Hill LLC
27
Service Recovery
© McGraw Hill LLC
28
Listening to the Customers and Involving
Them in Service Recovery
Customers can get
emotional over a service
failure.
Often customers just
want someone to listen.
© McGraw Hill LLC
leaf/123RF
29
Finding a Fair Solution
Distributive fairness.
Procedural fairness.
© McGraw Hill LLC
Andriy Popov/123RF
30
Resolving Problems Quickly
The longer it takes to resolve service failure, the
more irritated the customer will become and the
more people the customer will tell.
It is in the firm’s best interest to solve problems
quickly.
© McGraw Hill LLC
31
PROGRESS CHECK (3 of 3)
1. Why is service recovery so important to
companies?
2. What can companies do to recover from a
service failure?
© McGraw Hill LLC
32
Because learning changes everything.
®
www.mheducation.com
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.

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