1. 1 2 Marketing Management SECTION 1 7th Edition Marketing of Services
menu
SECTION 1
Chapter Twelve
Services
Service Features
Unconditional Guarantees
Client Value Perception
Determinants of Service Quality
Customers Satisfaction Measurement
Quality Elements
Internal Marketing
Marketplace Obstacles
The Service Challenge
The Authors
C H A P T E R T W E L V E
Marketing
Management
7th Edition
J. Paul Peter
James H. Donnelly, Jr. 1 2
Marketing
of Services
McGraw-Hill/Irwin
© 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

2. 1 2 SECTION 1 Services Service Products
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SECTION 1
Chapter Twelve
Services
Service Features
Unconditional Guarantees
Client Value Perception
Determinants of Service Quality
Customers Satisfaction Measurement
Quality Elements
Internal Marketing
Marketplace Obstacles
The Service Challenge
The Authors
Services
Service Products
> Such as a bank loan or home security, they are intangible or at least substantially so
Services
> Activities by sellers and others that accompany the sale of a product and that aid in its exhange or its utilization 1 2

3. 1 2 SECTION 1 Service Features
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SECTION 1
Chapter Twelve
Services
Service Features
Unconditional Guarantees
Client Value Perception
Determinants of Service Quality
Customers Satisfaction Measurement
Quality Elements
Internal Marketing
Marketplace Obstacles
The Service Challenge
The Authors
Service Features
Intangibility– without physical dimensions or characteristics
Inseparability- service and seller are inseparable
Perishability and Fluctuating Demand – seasonal, days, time of day, vacant seats, waiting time on phone, etc.
Highly Differentiated Marketing Systems – varies highly depending on business
Client Relationship – Similar to customer relationship but typically more intense 1 2

4. 1 2 SECTION 1 Unconditional Guarantees Effective when: Prices are high
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SECTION 1
Chapter Twelve
Services
Service Features
Unconditional Guarantees
Client Value Perception
Determinants of Service Quality
Customers Satisfaction Measurement
Quality Elements
Internal Marketing
Marketplace Obstacles
The Service Challenge
The Authors
Unconditional Guarantees
Effective when:
Prices are high
The negative consequences of unsolved problems are high
Services are highly customized
Brand name recognition not achieved by conventional means
Buyer resistance/caution is high 1 2
from Hart, Schlessinger and Maher

5. 1 2 SECTION 1 Client Value Perception Observe the gap between . . .
menu
SECTION 1
Chapter Twelve
Services
Service Features
Unconditional Guarantees
Client Value Perception
Determinants of Service Quality
Customers Satisfaction Measurement
Quality Elements
Internal Marketing
Marketplace Obstacles
The Service Challenge
The Authors
Client Value Perception
Observe the gap between . . .
. . . consumer expectations and management perception of consumer expectations
. . . management perceptions of consumer expectations and the firm’s service quality specifications
. . . service quality specifications and actual service quality
. . . actual service delivery and external communications about the service 1 2

6. 1 2 SECTION 1 Determinants of Service Quality
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SECTION 1
Chapter Twelve
Services
Service Features
Unconditional Guarantees
Client Value Perception
Determinants of Service Quality
Customers Satisfaction Measurement
Quality Elements
Internal Marketing
Marketplace Obstacles
The Service Challenge
The Authors
Determinants of Service Quality
Service quality rises or falls based on . . .
Tangibles
Reliability
Responsiveness
Assurance
Empathy 1 2

7. 1 2 SECTION 1 Measure Customer Satisfaction
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SECTION 1
Chapter Twelve
Services
Service Features
Unconditional Guarantees
Client Value Perception
Determinants of Service Quality
Customers Satisfaction Measurement
Quality Elements
Internal Marketing
Marketplace Obstacles
The Service Challenge
The Authors
Measure Customer Satisfaction
How will you measure customer satisfaction?
Understand the expectations and requirements of the customer and your firm’s ability to meet them.
Determine how well your company and its major competitors are succeeding in satisfying these expectations and requirements. 1 2

8. menu
SECTION 1
Chapter Twelve
Services
Service Features
Unconditional Guarantees
Client Value Perception
Determinants of Service Quality
Customers Satisfaction Measurement
Quality Elements
Internal Marketing
Marketplace Obstacles
The Service Challenge
The Authors
Quality
Marketing and sales employees were primarily responsible for designing CSM programs and questionnaires.
Top management and the marketing function championed the programs.
Management involved a combination of qualitative and quantitative research methods.
Evaluations included both the company’s and competitors’ satisfaction performance. 1 2

9. menu
SECTION 1
Chapter Twelve
Services
Service Features
Unconditional Guarantees
Client Value Perception
Determinants of Service Quality
Customers Satisfaction Measurement
Quality Elements
Internal Marketing
Marketplace Obstacles
The Service Challenge
The Authors
Quality
5. Results of all research were made available to all employees.
6. Research was performed on a consistent basis.
7. Customer satisfaction was incorporated into the strategic focus of the company via the mission statement.
8. There was a commitment to increasing service quality and customer satisfaction from employees at all levels within the organization. 1 2

10. 1 2 SECTION 1 Internal Marketing
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SECTION 1
Chapter Twelve
Services
Service Features
Unconditional Guarantees
Client Value Perception
Determinants of Service Quality
Customers Satisfaction Measurement
Quality Elements
Internal Marketing
Marketplace Obstacles
The Service Challenge
The Authors
Internal Marketing
Consider the need to involve insiders in the marketing program by . . .
Careful selection process in hiring frontline employees
A clear, concrete message that conveys a particular strategy
Significant modeling by managers
An energetic follow-through process
An emphasis on teaching employees to have good attitudes 1 2

11. 1 2 SECTION 1 Marketplace Obstacles
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SECTION 1
Chapter Twelve
Services
Service Features
Unconditional Guarantees
Client Value Perception
Determinants of Service Quality
Customers Satisfaction Measurement
Quality Elements
Internal Marketing
Marketplace Obstacles
The Service Challenge
The Authors
Marketplace Obstacles
Marketplace dimensions include a variety of obstacles. Consider these . . .
A limited view of marketing
A lack of strong competition
A lack of creative management
No obsolescence 1 2

12. 1 2 SECTION 1 The Service Challenge A quest to:
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SECTION 1
Chapter Twelve
Services
Service Features
Unconditional Guarantees
Client Value Perception
Determinants of Service Quality
Customers Satisfaction Measurement
Quality Elements
Internal Marketing
Marketplace Obstacles
The Service Challenge
The Authors
The Service Challenge
A quest to:
constantly develop new services that will better meet customer needs
improve on the quality and variety of existing services
provide and distribute these services in a manner that best serves the customer 1 2

13. 1 2 SECTION 1 The Authors menu J. Paul Peter, Ph.D.
Chapter Twelve
Services
Service Features
Unconditional Guarantees
Client Value Perception
Determinants of Service Quality
Customers Satisfaction Measurement
Quality Elements
Internal Marketing
Marketplace Obstacles
The Service Challenge
The Authors
The Authors
J. Paul Peter, Ph.D.
University of Wisconsin – Madison
3Click image to go to author’s web site
James H. Donnelly, Jr., Ph.D.
University of Kentucky – Lexington
3Click image to go to author’s web site 1 2
Marketing Management
7th Edition – McGraw-Hill
3Click on the book to go to the book site
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Keller Graduate School of Management of DeVry University