Services Marketing: Concepts, Cases and Strategies
Hoffman, Bateson, Wood & Kenyon
ISBN: 9781844808137
SHORT-ANSWER ESSAYS
Chapter 1: An Introduction to Services
1. What is a service?
ANS:
 The distinction between goods and services is not always perfectly clear.
 In general, services can be defined as deeds, efforts, or performances.
 The scale of Market Entities helps to distinguish goods from services based on their
tangibility and often highlights areas that are often overlooked that may be used as
sources of competitive advantage.
2. What are the seven categories of complaints that customers have toward service providers?
ANS:
• Apathy: What comedian George Carlin refers to as DILLIGAD—Do I look like I give a
damn?
• Brush-off: Attempts to get rid of the customer by dismissing the customer
completely...the “I want you to go away” syndrome
• Coldness: Indifferent service providers who could not care less what the customer really
wants
• Condescension: The “you are the client/patient, so you must be stupid” approach
• Robotism: When the customers are treated simply as inputs into a system that must be
processed
• Rulebook: Providers who live by the rules of the organization even when those rules do
not make good sense
• Runaround: Passing the customer off to another provider, who will simply pass them off
to yet another provider.
3. Discuss the components of the Servuction Model. What does the model attempt to explain?
ANS:
 The components of the Servuction Model include: other customers, contact
personnel/service providers, servicescape, and organization and systems (the rules,
regulations, schedules and all other behind the scenes activities that influence the
customer's service experience).
 The first three components are visible to the consumer, the invisible organization and
systems are not.
 The model attempts to explain that the bundle of benefits received by the customer is the
experience created for the customer by the service firm.
 Unlike goods customers, service customers are involved in the production process of the
service.
Services Marketing: Concepts, Cases and Strategies
Hoffman, Bateson, Wood & Kenyon
ISBN: 9781844808137
4. Why has the demand for services marketing knowledge increased in recent years?
ANS:
 The change in perspective from industrial management approaches to market-focused
approaches.
 The tremendous growth in service sector employment.
 Service sector contributions to the world economy
5. Discuss the service sector contributions to the world economy.
ANS:
 New technology has led to considerable changes in the nature of many services and in the
development of new services.
 Higher disposable incomes have led to a proliferation of personal services, particularly in
the entertainment sector.
 All developed economies now have large service sectors.
 Many service firms now operate internationally, and exports of services are increasing.
6. Compare and contrast the Industrial Management Model and the Market-focused Management
Model.
ANS:
 Organizations which follow the industrial model believe: (1) location strategies, sales
promotions, and advertising drives sales revenue; and (2) labor and other operating costs
should be kept as low as possible. In sum, the industrial model focuses on revenues and
operating costs and ignores or at least forgets the role personnel play in generating
customer satisfaction and sustainable profits.

In contrast to the industrial model, proponents of the new market-focused management
model believe that the purpose of the firm is to serve the customer. Consequently, logic
suggests that the firm should organize the firm in a manner which supports the people
who serve the customer. By following this approach, service delivery becomes the focus
of the system and the overall differential advantage in terms of competitive strategy.
7. Discuss the six key linkages of The Service Triangle.
ANS:




The firm's service strategy must be communicated to its customers.
The service strategy also needs to be communicated to employees.
The systems should flow logically from the firm's service strategy.
The systems should enhance the service experience for customers.
Services Marketing: Concepts, Cases and Strategies
Hoffman, Bateson, Wood & Kenyon
ISBN: 9781844808137


The systems should also facilitate employee efforts to do their jobs.
The critical incidents or moments of truth created by customer/employee
interactions.