TABLE OF CONTENTS

PREFACE..................................................................................................................................................v

SECTION 1 – ACTIVE LEARNING IN SERVICES MARKETING CLASSES............................1-1

Using Active Learning to Deliver Services Marketing Content....................................................

Experiential Learning Exercises in Services Marketing Courses...................................................

SECTION 2 – SYLLABUS DESIGN...................................................................................................2-1

Managing the Physical Evidence..............................................................................................2-1

Sample Undergraduate Services Marketing Syllabi.................................................................2-2
Sample Graduate Services Marketing Syllabi..........................................................................2-3

SECTION 3 – INSTRUCTION AIDS..................................................................................................3-1

Developing a Learner-Centered Course....................................................................................3-1

Additional Instructional Resources..........................................................................................3-5
Recommended Services Books................................................................................................3-7
Supplemental Readings for Services Marketing Courses.........................................................3-9
Chapter 1 – Introduction to Services......................................................................................3-13
Chapter 2 – Conceptual Framework of the Book: The Gaps Model of Service Quality.........3-20
Chapter 3 – Consumer Behavior in Services..........................................................................3-24
Chapter 4 – Customer Expectations of Service......................................................................3-30
Chapter 5 – Customer Perceptions of Service........................................................................3-37
Chapter 6 – Listening to Customers Through Research.........................................................3-44
Chapter 7 – Building Customer Relationships.......................................................................3-50
Chapter 8 – Service Recovery................................................................................................3-59
Chapter 9 – Service Innovation and Design...........................................................................3-67
Chapter 10 – Customer-Defined Service Standards...............................................................3-77
Chapter 11 – Physical Evidence and the Servicescape...........................................................3-82
Chapter 12 – Employees’ Roles in Service Delivery..............................................................3-91
Chapter 13 – Customers’ Roles in Service Delivery............................................................3-101
Chapter 14 – Delivering Service Through Intermediaries and Electronic Channels.............3-109
Chapter 15 – Managing Demand and Capacity....................................................................3-115
Chapter 16 – Integrated Services Marketing Communications............................................3-123
Chapter 17 – Pricing of Services..........................................................................................3-128
Chapter 18 – The Financial and Economic Impact of Service..............................................3-133

iii
SECTION 4 – SUPPLEMENTARY MATERIALS FOR CASES.....................................................4-1

Introduction to Case Methodology...........................................................................................4-1

Matching Cases with Appropriate Chapters in the Textbook...................................................4-2
Case 1 – People, Service, and Profit at Jyske Bank.................................................................4-3
Case 2 – Merrill Lynch: Supernova........................................................................................4-12
Case 3 – JetBlue: High Flying Airline Melts Down in Ice Storm...........................................4-18
Case 4 – Giordano: Positioning For International Expansion.........................................4-31
Case 5 – Shouldice Hospital Limited (Abridged)...................................................................4-48
Case 6 – Hong Kong Disneyland...........................................................................................4-59
Case 7 – Virgin Mobile USA: Pricing for the Very First Time..............................................4-67
Case 8 – Using Services Marketing…at Caterpillar in Latin America...................................4-70

SECTION 5 – POWERPOINT SLIDES...........................................................................................5-1

Chapter 1 – Introduction to Services.............................................................................................

Chapter 2 – Conceptual Framework of the Book: The Gaps Model of Service Quality................
Chapter 3 – Consumer Behavior in Services.................................................................................
Chapter 4 – Customer Expectations of Service.............................................................................
Chapter 5 – Customer Perceptions of Service...............................................................................
Chapter 6 – Listening to Customers Through Research................................................................
Chapter 7 – Building Customer Relationships..............................................................................
Chapter 8 – Service Recovery.......................................................................................................
Chapter 9 – Service Innovation and Design..................................................................................
Chapter 10 – Customer-Defined Service Standards.......................................................................
Chapter 11 – Physical Evidence and the Servicescape..................................................................
Chapter 12 – Employees’ Roles in Service Delivery.....................................................................
Chapter 13 – Customers’ Roles in Service Delivery.....................................................................
Chapter 14 – Delivering Service Through Intermediaries and Electronic Channels......................
Chapter 15 – Managing Demand and Capacity.............................................................................
Chapter 16 – Integrated Services Marketing Communications......................................................
Chapter 17 – Pricing of Services...................................................................................................
Chapter 18 – The Financial and Economic Impact of Service.......................................................
Case 1 – People, Service, and Profit at Jyske Bank.......................................................................
Case 2 – Merrill Lynch: Supernova...............................................................................................
Case 3 – JetBlue: High Flying Airline Melts Down in Ice Storm..................................................
Case 4 – Giordano: Positioning For International Expansion................................................
Case 5 – Shouldice Hospital Limited (Abridged)..........................................................................
Case 6 – Hong Kong Disneyland..................................................................................................
Case 7 – Virgin Mobile USA: Pricing for the Very First Time.....................................................
Case 8 – Using Services Marketing…at Caterpillar in Latin America..........................................

iv
 PREFACE

“Education is not the filing of a pail, but the lighting of a fret"

-- William Butler Yeats

How to light the educational “fire” is a constant challenge for faculty in any discipline. For virtually
everyone, teaching is a process of experimentation, successes, failures, and revisions as we attempt to
create optimal learning experiences for our students. Fortunately, the “fuel” for those of us who teach
courses in services marketing is particularly abundant. Students bring into the class a wealth of
experiences as both service consumers and providers, and they are eager to learn about the unique
marketing aspects of the services they encounter. Our task as faculty is to design and deliver courses that
provide the spark so that students are motivated to actively participate in producing a satisfying
educational experience.

This resource guide is based on a collegial model of teaching. The model views students as “Colleagues”
or partners in their educational experiences who, as such, are expected to become actively involved and
take greater responsibility for their own learning outcomes. As defined by Robert Audi in his article “On
the Ethics of Teaching and the Ideals of Learning,” the collegial approach “uses a variety of teaching
methods, many of which focus on drawing students out, treating their ideas as worthy of study, and
offering correction with constructive commentary” (in Academe, September-October 1994). Since
teaching is by definition a highly customized activity, there is no “right” way to structure a class. Your
course will be uniquely matched to you, your students, and your particular academic environment.

This resource manual contains a variety of materials to help you construct a services marketing course
that will actively involve your students in the learning process. The following pages include ideas on
course and syllabus design, active learning exercises and comprehensive student projects, answers to the
end-of-chapter discussion questions, teaching notes for cases, and a set of PowerPoint slides. A test bank
is also available through your Irwin/McGraw-Hill book representative. We would like to acknowledge
Jim Barnes, Mike Brady, Mark Colgate, Kevin Gwinner, Michael Hartline, Thomas Hollmann, Matt
Meuter, and Amy Ostrom for providing us with undergraduate syllabi to use. We would also like to
acknowlede Mike Bowers, Susan Keaveney, Carolyn Massian, Mark Rosenbaum, and Janet Wagner for
providing us with graduate syllabi. These services marketing syllabi are referenced in Section 2. We
also appreciate the editing assistance provided by Candy Gremler.

Please share your feedback on this resource guide or any suggestions for future editions with us—we are
interested in your thoughts! You can send comments to Dwayne Gremler’s email address at:

gremler@bgsu.edu

We hope these materials are helpful to you in creating a learning community that is highly rewarding for
both you and your students.

Dwayne D. Gremler
Mary Jo Bitner
Valarie A. Zeithaml

v
 SECTION 1
ACTIVE LEARNING IN SERVICES MARKETING CLASSES

“Much research exists documenting that real understanding is a case of active restructuring on the part
of the learner. Restructuring occurs through engagement in problem posing as well as problem solving,
inference making and investigation, resolving of contradictions, and reflecting. These processes all
mandate for more active learners as well as a different model of education...students need to be
empowered to think and learn for themselves. Thus learning needs to be conceived of as something a
learner does, not something that is done to a learner.”
-- from Active Learning: Cooperation in the Classroom (Johnson, Johnson, and Smith [1991] p. 1-20)

As you might guess, we are strong advocates for including active learning activities in marketing classes.
Therefore, you will find several examples of such activities in this Active Learning Resource Guide. In
order to prepare the reader, the material in the first section of this Active Learning Resource Guide
includes links to PDF files of two articles originally published in the Journal of Marketing Education.

The first article was initially published as the lead article in the Fall 1994 Special Issue on Services of the
Journal of Marketing Education. [Lauren K. Wright, Mary Jo Bitner, and Valarie A. Zeithaml (1994),
‘Paradigm Shifts in Business Education: Using Active Learning to Deliver Services Marketing Content,”
Journal of Marketing Education, 16 (3): 5-19.] This article offers an overview of what is meant by
active learning and provides a rationale for integrating this type of pedagogy into services marketing
courses. A number of examples of active learning exercises are shown in Table 2 of the article.

The second article appeared in the Spring 2000 Special Issue on Experiential Learning in Marketing
Courses in the Journal of Marketing Education. [Gremler, Dwayne D., K. Douglas Hoffman, Susan M.
Keaveney, and Lauren K. Wright (2000), “Experiential Learning Exercises in Services Marketing
Courses,” Journal of Marketing Education , 22 (1), 35-44.] This manuscript presents a portfolio of
experiential learning exercises that can be used in services marketing courses to facilitate the integration
of course concepts, teamwork and team building, communication and listening skills, and critical
thinking and problem solving.

Both articles are included as part of the Instructor’s Manual set of materials with the permission of the
Journal of Marketing Education.

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