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 Sixth Sixth Edition
Edition

SERVICES

SERVICES MARKETING
Integrating Customer Focus Across the Firm
Services Marketing introduces readers to the vital role that services play in the
economy and its future. Services dominate the advanced economies of the world,

MARKETING
and virtually all companies view services as critical to retaining their customers
today and in the future. The sixth edition continues the strong conceptual approach
by integrating new research into every chapter. The foundation of the text is the
recognition that the provision of service presents special challenges that must be
identified and addressed. The framework of the book is managerially focused, with
every chapter presenting company examples and strategies for addressing issues
in the chapter. The book’s content focuses on the knowledge needed to implement Integrating Customer Focus Across the Firm
service strategies for competitive advantage across industries.

KEY FEATURES AND BENEFITS:

Increase coverage of business-to-business (B2B) services and the trends toward Valarie A. Zeithaml
service infusion in goods-dominant companies.

Four new cases: Zappos.com; United Breaks Guitars; Michelin Fleet Solutions;
Mary Jo Bitner
and ISS Iceland. Dwayne D. Gremler

MD DALIM #1177746 01/22/12 CYAN MAG YELO BLK

Streamlined coverage of key topics to eliminate redundancies.

A new framework of service recovery that includes strategies for “fixing the
customer” and “fixing the problem.”

Valuable resources for both instructors and students are available at the textbook website:
www.mhhe.com/zeithaml6e

Zeithaml
Bitner
Gremler
 Confirming Pages

Preface
This text is for students and businesspeople who recognize the vital role that services
play in the economy and its future. The advanced economies of the world are now
dominated by services, and virtually all companies view service as critical to retaining
their customers today and in the future. Manufacturing and product-dominant compa-
nies that, in the past, have depended on their physical products for their livelihood now
recognize that service provides one of their few sustainable competitive advantages.
We wrote this book in recognition of the ever-growing importance of services and
the unique challenges faced by service managers.

WHY A SERVICES MARKETING TEXT?

Since the beginning of our academic careers in marketing, we have devoted our
research and teaching efforts to topics in services marketing. We strongly believe that
services marketing is different from goods marketing in significant ways and that it
requires strategies and tactics that traditional marketing texts do not fully reflect. This
text is unique in both content and structure, and we hope that you will learn as much
from it as we have in writing and revising it now for almost 20 years. Over this time
period we have incorporated major changes and developments in the field, keeping
the book up to date with new knowledge, changes in management practice, and the
global economic trend toward services.

Content Overview
The foundation of the text is the recognition that services present special chal-
lenges that must be identified and addressed. Issues commonly encountered in ser-
vice organizations—the inability to inventory, difficulty in synchronizing demand
and supply, challenges in controlling the performance quality of human interactions,
and customer participation as cocreators of value—need to be articulated and tackled
by managers. Many of the strategies include information and approaches that are
new to managers across industries. We wrote the text to help students and managers
understand and address these special challenges of services marketing.
The development of strong customer relationships through quality service (and
services) are at the heart of the book’s content. The topics covered are equally appli-
cable to organizations whose core product is service (such as banks, transportation
companies, hotels, hospitals, educational institutions, professional services, telecom-
munication) and to organizations that depend on service excellence for competitive
advantage (high-technology manufacturers, automotive and industrial products, and
so on). Rarely do we repeat material from marketing principles or marketing strategy
texts. Instead, we adjust, when necessary, standard content on topics such as distribu-
tion, pricing, and promotion to account for service characteristics.
The book’s content focuses on knowledge needed to implement service strategies
for competitive advantage across industries. Included are frameworks for customer-
focused management and strategies for increasing customer satisfaction and reten-
tion through service. In addition to standard marketing topics (such as pricing), this
text introduces students to entirely new topics that include management and mea-
surement of service quality, service recovery, the linking of customer measurement
to performance measurement, service blueprinting, customer cocreation, and
cross-functional treatment of issues through integration of marketing with disciplines
vii

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viii Preface

such as operations and human resources. Each of these topics represents pivotal
content for tomorrow’s businesses as they structure around process rather than task,
engage in one-to-one marketing, mass customize their offerings, cocreate value with
their customers, and attempt to build strong relationships with their customers.

New Features
This edition contains the following new features:
1. Streamlined coverage of key topics to eliminate redundancies.
2. Elimination of two chapters—“Consumer Behavior in Services” and “Delivering
Service through Intermediaries”—based on feedback from reviewers. These
chapters will still be available in the Instructor’s Manual for those professors who
wish to continue to teach the material.
3. Four New cases: Zappos.com; United Breaks Guitars; Michelin Fleet Solutions;
and ISS Iceland.
4. New research references and examples in every chapter.
5. Updated data for key charts and examples.
6. A new model of service recovery strategies and a significantly revised organization of
the chapter, which includes strategies for “fixing the customer” and “fixing the problem.”
7. Significant new material and revised framework in the chapter on service innova-
tion and design.
8. Increased coverage throughout of business-to-business (B2B) services and the
trends toward service infusion in goods-dominant companies.
9. Updated focus on globalization, technology, and strategic service issues through
new or improved features in every chapter.
10. Focus on digital and social marketing in the chapter “Integrated Service Marketing
Communication,” as well as examples on these topics throughout the book.

Distinguishing Content Features

The distinguishing features of our text include the following:
1. The only services marketing textbook based on the Gaps Model of Service
Quality framework, which departs significantly from other marketing and
services marketing textbooks.
2. Greater emphasis on the topic of service quality than existing marketing and
service marketing texts.
3. Introduction of three service Ps to the traditional marketing mix and increased
focus on customer relationships and relationship marketing strategies.
4. Significant focus on customer expectations and perceptions and what they imply
for marketers.
5. A feature called “Strategy Insight” in each chapter—a feature that focuses on
emerging or existing strategic initiatives involving services.
6. Increased coverage of business-to-business service applications.
7. Two original cases written specifically for this textbook, one on JetBlue’s service
disaster in 2007 and one on Caterpillar’s decision to become an integrated solution
provider.
8. Increased technology and Internet coverage, including updated “Technology Spot-
light” boxes in each chapter.

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Preface ix

9. A chapter on service recovery that includes a conceptual framework for under-

standing the topic.
10. A chapter on the financial and economic impact of service quality.
11. A chapter on customer-defined service standards.
12. Cross-functional treatment of issues through integration of marketing with other
disciplines such as operations and human resource management.
13. Consumer-based pricing and value pricing strategies.
14. Description of a set of tools that must be added to basic marketing techniques
when dealing with services rather than goods.
15. An entire chapter that recognizes human resource challenges and human resource
strategies for delivering customer-focused services.
16. Coverage of service innovation with a detailed and complete introduction to ser-
vice blueprinting—a technique for describing, designing, and positioning services.
17. Coverage of the customer’s role in service delivery and strategies for making cus-
tomers productive partners in service and value creation.
18. A chapter on the role of physical evidence, particularly the physical environment,
or “servicescape.”
19. “Global Feature” boxes in each chapter and expanded examples of global services
marketing.

Conceptual and Research Foundations

We synthesized research and conceptual material from many talented academics
and practitioners to create this text. We rely on the work of researchers and busi-
nesspeople from diverse disciplines such as marketing, human resources, opera-
tions, and management. Because the field of services marketing is international
in its roots, we also have drawn from work originating around the globe. We have
continued this strong conceptual grounding in the sixth edition by integrating new
research into every chapter. The framework of the book is managerially focused,
with every chapter presenting company examples and strategies for addressing
issues in the chapter.
Conceptual Frameworks in Chapters
We developed integrating frameworks in most chapters. For example, we created new
frameworks for understanding service recovery strategies, service pricing, integrated
marketing communications, customer relationships, customer roles, and internal
marketing.

Unique Structure
The text features a structure completely different from the standard 4P (market-
ing mix) structure of most marketing texts. The text is organized around the gaps
model of service quality, which is described fully in Chapter 2. Beginning with
Chapter 3, the text is organized into parts around the gaps model. For example,
Chapters 3 and 4 each deal with an aspect of the customer gap—customer expec-
tations and perceptions, respectively—to form the focus for services marketing
strategies. The managerial content in the rest of the chapters is framed by the gaps
model using part openers that build the model gap by gap. Each part of the book
includes multiple chapters with strategies for understanding and closing these
critical gaps.

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x Preface

WHAT COURSES AND STUDENTS CAN USE THE TEXT?

In our years of experience teaching services marketing, we have found that a broad
cross section of students is drawn to learning about services marketing. Students
with career interests in service industries as well as goods industries with high
service components (such as industrial products, high-tech products, and durable
products) want and need to understand these topics. Students who wish to become
consultants and entrepreneurs want to learn the strategic view of marketing, which
involves not just physical goods but also the myriad services that envelop and add
value to these goods. Virtually all students—even those who will work for pack-
aged goods firms—will face employers needing to understand the basics of services
marketing and management.
Although services marketing courses are usually designated as marketing electives, a
large number of enrollees in our classes have been finance students seeking to broaden
their knowledge and career opportunities. Business students with human resource,
information technology, accounting, and operations majors also enroll, as do nonbusi-
ness students from such diverse disciplines as health administration, recreation and
parks, public and nonprofit administration, law, sports management, and library science.
Students need only a basic marketing course as a prerequisite for a services
marketing course and this text. The primary target audience for the text is services
marketing classes at the undergraduate (junior or senior elective courses), graduate
(both masters and doctoral courses), and executive student levels. Other target audi-
ences are (1) service management classes at both the undergraduate and graduate lev-
els and (2) marketing management classes at the graduate level in which a professor
wishes to provide more comprehensive teaching of services than is possible with a
standard marketing management text. A subset of chapters would also provide a more
concise text for use in a quarter-length or mini-semester course. A further reduced set
of chapters may be used to supplement undergraduate and graduate basic marketing
courses to enhance the treatment of services.

WHAT CAN WE PROVIDE EDUCATORS TO TEACH SERVICES

MARKETING?
As a team, we have accumulated more than 65 years of experience teaching the sub-
ject of services marketing. We set out to create a text that represents the approaches
we have found most effective. We incorporated all that we have learned in our many
years of teaching services marketing—teaching materials, student exercises, case
analyses, research, and PowerPoint slides, which you can find online at www.mhhe.
com/Zeithaml6e, along with a comprehensive instructor’s manual and test bank.

HOW MANY PARTS AND CHAPTERS ARE INCLUDED, AND WHAT DO

THEY COVER?
The text material includes 16 chapters divided into seven parts. Part 1 includes an
introduction in Chapter 1 and an overview of the gaps model in Chapter 2. Part 2 con-
siders the customer gap by examining customer expectations and perceptions. Part 3
focuses on listening to customer requirements, including chapters covering market-
ing research for services, building customer relationships, and service recovery. Part 4
involves aligning service strategy through design and standards and includes chapters
on service innovation and design, customer-defined service standards, and physical
evidence and the servicescape. Part 5 concerns the delivery and performance of service
and has chapters on employees’ and customers’ roles in service delivery, as well as

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Preface xi

managing demand and capacity. Part 6 focuses on managing services promises and
includes chapters on integrated services marketing communications and pricing of
services. Finally, Part 7 examines the financial and economic effect of service quality.

THE SUPPLEMENTARY MATERIALS

Instructor’s Manual
The Instructor’s Manual includes sample syllabi, suggestions for in-class exercises
and projects, teaching notes for each of the cases included in the text, and answers to
end-of-chapter discussion questions and exercises. The Instructor’s Manual uses the
“active learning” educational paradigm, which involves students in constructing their
own learning experiences and exposes them to the collegial patterns present in work
situations. Active learning offers an educational underpinning for the pivotal work-
force skills required in business, among them oral and written communication skills,
listening skills, and critical thinking and problem solving.
PowerPoint
We have provided PowerPoint slides online for each chapter and case, including figures
and tables from the text that are useful for instructors in class. The full-color PowerPoint
slides were created to present a coordinated look for course presentation.
Test Bank
We have also provided test bank files and a computerized test bank, which are avail-
able on this text’s website. Instructors can easily formulate quizzes and tests from this
trusted source.

ACKNOWLEDGMENTS
We owe a great deal to the pioneering service researchers and scholars who devel-
oped the field of services marketing. They include John Bateson, Leonard Berry,
Bernard Booms, David Bowen, Steve Brown, Larry Crosby, John Czepiel, Ray Fisk,
William George, Christian Gronroos, Steve Grove, Evert Gummesson, Chuck Lamb,
the late Christopher Lovelock, Parsu Parasuraman, Ben Schneider, Lynn Shostack,
and Carol Surprenant. We also owe gratitude to the second generation of service
researchers who broadened and enriched the services marketing field. When we
attempted to compile a list of those researchers, we realized that it was too extensive
to include here. The length of that list is testament to the influence of the early pio-
neers and to the importance that services marketing has achieved both in academia
and in practice.
We remain indebted to Parsu Parasuraman and Len Berry, who have been research
partners of Dr. Zeithaml’s since 1982. The gaps model around which the text is structured
was developed in collaboration with them, as was the model of customer expectations
used in Chapter 3. Much of the research and measurement content in this text was shaped
by what the team found in a 15-year program of research on service quality.
Dr. Zeithaml is particularly indebted to her long-time colleague A. “Parsu”
Parasuraman, who has been her continuing collaborator over the 30 years she has
been in academia. An inspiring and creative talent, Parsu has always been willing to
work with her—and many other colleagues—as a mentor and partner. He is also her
treasured friend. She also thanks the W. P. Carey School of Business at Arizona State
University and the Center for Services Leadership. For three decades, ASU has been
her second academic home, and she has grown through her continued and intensified

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xii Preface

involvement with the faculty and the center in recent years. She is grateful to Holger
“HoPi” Pietzsch of the Latin American Division of Caterpillar Inc. Working with
Caterpillar Inc. to provide integrated solutions with products and services led to one
of the original cases in this textbook. She also thanks her colleagues and MBA stu-
dents at the University of North Carolina. The students’ interest in the topic of services
marketing, their creativity in approaching the papers and assignments, and their con-
tinuing contact are appreciated. As always, she credits the Marketing Science Institute
(MSI), of which she was a researcher and an academic trustee, for the support and
ongoing inspiration from its many executive members, conferences, and working
papers. She is especially indebted to David Reibstein and Leigh McAllister, both of
whom served as MSI academic directors, for their leadership and talent in bridging the
gap between academia and practice.
Dr. Bitner expresses special thanks to the W. P. Carey School of Business at
Arizona State University, in particular to Stephen W. Brown and the Center for
Services Leadership staff. Their support and encouragement have been invalu-
able throughout the multiple editions of this book. Dr. Bitner also acknowledges the
many ideas and examples provided by the 50 member companies of the Center for
Services Leadership that are committed to service excellence and from which she
has the opportunity to continually learn. For this edition, Dr. Bitner wants to again
acknowledge the continued leadership of the IBM Corporation through its research
divisions, in particular James Spohrer, for inspiring academics, government employ-
ees, and businesspeople around the world to begin focusing on the science of ser-
vice. She is also grateful to Buck Pei, Associate Dean for Asia Programs at the W.
P. Carey School, for providing the opportunity to teach a course on service excel-
lence in ASU’s China EMBA. The experience has enriched this book and provided
tremendous learning. She also acknowledges and thanks her colleague Amy Ostrom
for her support and invaluable assistance in sharing examples, new research, and cre-
ative teaching innovations. Finally, Dr. Bitner is grateful to the fine group of Arizona
State services doctoral students she has worked with, who have shaped her thinking
and supported the text: Lois Mohr, Bill Faranda, Amy Rodie, Kevin Gwinner, Matt
Meuter, Steve Tax, Dwayne Gremler, Lance Bettencourt, Susan Cadwallader, Felicia
Morgan, Thomas Hollmann, Andrew Gallan, Martin Mende, Mei Li, Shruti Saxena,
and Nancy Sirianni.
Dr. Gremler expresses thanks to several people, beginning with his mentor, Steve
Brown, for his advice and encouragement. He thanks other Arizona State University
faculty who served as role models and encouragers, including John Schlacter,
Michael Mokwa, and David Altheide. Dr. Gremler acknowledges the support of fel-
low doctoral student colleagues from Arizona State University who have gone on to
successful careers and who continue to serve as role models and encouragers, includ-
ing Kevin Gwinner, Mark Houston, John Eaton, and Lance Bettencourt. Dr. Gremler
also expresses thanks to colleagues at various universities who have invited him to
speak in their countries in recent years and who have provided insight into services
marketing issues internationally, including Jos Lemmink, Ko de Ruyter, Hans Kasper,
Chiara Orsingher, Stefan Michel, Thorsten Hennig-Thurau, Silke Michalski, Brigitte
Auriacombe, David Martin Ruiz, Caroline Wiertz, Vince Mitchell, Sina Fichtel, Nina
Specht, Kathy Tyler, Bo Edvardsson, Patrik Larsson, Tor Andreassen, Jens Hogreve,
Andreas Eggert, Andreas Bausch, Javier Reynoso, Thorsten Gruber, Lia Patrício,
Lisa Brüggen, Jeroen Bleijerveld, Marcel van Birgelen, Josée Bloemer, and Cécile
Delcourt. Finally, a special thanks to Candy Gremler for her unending willingness to
serve as copy editor, encourager, wife, and friend.

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Preface xiii

The panel of academics who helped us by completing a survey include Dan

Gossett, The University of Texas–Arlington; William Edward Steiger, University of
Central Florida; Julie Anna Guidry, Louisiana State University; Mark Rosenbaum,
Northern Illinois University; and Troy A. Festervand, Middle Tennessee State
University.
Finally, we would like to acknowledge the professional efforts of the McGraw-Hill
Higher Education staff. Our sincere thanks to Brent Gordon, Paul Ducham, Daryl
Bruflodt, Lorraine Buczek, Joyce Watters, Brenda Rolwes, and Colleen Havens.
Valarie A. Zeithaml
Mary Jo Bitner
Dwayne D. Gremler

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Brief Contents
About the Authors iv 9 Customer-Defined Service
Preface vii Standards 250
10 Physical Evidence and the
PART 1 Servicescape 276
Foundations for Services Marketing 1
1 Introduction to Services 2 PART 5
Delivering and Performing Service 309
2 Conceptual Framework of the
Book: The Gaps Model of Service 11 Employees’ Roles in Service
Quality 33 Delivery 311
12 Customers’ Roles in Service
Delivery 345
PART 2
Focus on the Customer 49 13 Managing Demand and Capacity 375
3 Customer Expectations of
Service 50 PART 6
Managing Service Promises 409
4 Customer Perceptions of Service 76
14 Integrated Service Marketing
Communications 411
PART 3 15 Pricing of Services 440
Understanding Customer
Requirements 111
PART 7
5 Listening to Customers through Service and the Bottom Line 469
Research 113
16 The Financial and Economic Impact of
6 Building Customer Service 470
Relationships 145
7 Service Recovery 179 CASES 495

PART 4 PHOTO CREDITS 620

Aligning Service Design and
Standards 215
INDEX 622
8 Service Innovation and Design 216

xiv

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Detailed Contents
About the Authors iv Simultaneous Production and
Consumption 21
Preface vii Perishability 22
Search, Experience, and Credence
PART 1 Qualities 23
FOUNDATIONS FOR SERVICES Challenges and Questions for Service
Marketers 24
MARKETING 1
Service Marketing Mix 24
Traditional Marketing Mix 25
Chapter 1
Expanded Mix for Services 26
Introduction to Services 2 Staying Focused on the Customer 27
What are Services? 3 Exhibit 1.2: Southwest Airlines:
Service Industries, Service as a Aligning People, Processes, and Physical
Product, Customer Service, and Derived Evidence 28
Service 4 Summary 29
Tangibility Spectrum 5 Discussion Questions 29
Trends in the Service Sector 5 Exercises 29
Why Service Marketing? 6 Notes 30
Service-Based Economies 6
Service as a Business Imperative in Chapter 2
Goods-Focused Businesses 8
Conceptual Framework of the Book:
Deregulated Industries and Professional
Service Needs 9
The Gaps Model of Service Quality 33
Service Marketing Is Different 10 The Customer Gap 35
Service Equals Profits 10 The Provider Gaps 36
Exhibit 1.1: Is the Marketing of Services Provider Gap 1: the Listening Gap 36
Different? A Historical Perspective 11 Provider Gap 2: the Service Design and
But “Service Stinks” 12 Standards Gap 37
Strategy Insight: Competing Strategically Global Feature: An International Retailer
through Service 13 Puts Customers in the Wish Mode to Begin
Service and Technology 14 Closing the Gaps 38
New Service Offerings 14 Provider Gap 3: the Service
New Ways to Deliver Service 15 Performance Gap 40
Enabling Both Customers and Employees 15 Technology Spotlight: Technology’s Critical
Technology Spotlight: The Changing Face of Impact on the Gaps Model of Service
Customer Service 16 Quality 42
Extending the Global Reach of Services 16 Provider Gap 4: the Communication Gap 44
The Internet Is a Service 16 Putting It All Together: Closing the Gaps 45
The Paradoxes and Dark Side of Technology Strategy Insight: Using the Gaps Model
and Service 17 to Assess an Organization’s Service
Global Feature: The Migration of Service Strategy 46
Jobs 18 Summary 48
Characteristics of Services 19 Discussion Questions 48
Intangibility 20 Exercises 48
Heterogeneity 21 Notes 48

xv

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xvi Detailed Contents
PART 2
FOCUS ON THE CUSTOMER 49
Chapter 3
Customer Expectations of Service 50
Service Expectations 52
Types of Expectations 53
Global Feature: Global Outsourcing of
Personal Services: What Are Customers’
Expectations? 54
The Zone of Tolerance 54
Factors That Influence Customer Expectations of
Service 57
Sources of Desired Service Expectations 57
Sources of Adequate Service Expectations 59
Technology Spotlight: Customer
Expectations of Airport Services Using
Technology 60
Sources of Both Desired and Predicted Service
Expectations 63
Strategy Insight: How Service Marketers
Can Influence Customers’ Expectations 65
Issues Involving Customers’ Service
Expectations 66
What Does a Service Marketer
Do if Customer Expectations Are
“Unrealistic”? 66
Exhibit 3.1: Service Customers Want the
Basics 67
Should a Company Try to Delight the
Customer? 68
How Does a Company Exceed Customer
Service Expectations? 69
Do Customers’ Service Expectations
Continually Escalate? 71
How Does a Service Company Stay Ahead
of Competition in Meeting Customer
Expectations? 71
Summary 72
Discussion Questions 72
Exercises 73
Notes 73
Chapter 4
Customer Perceptions of Service 76
Customer Perceptions 78
Satisfaction versus Service Quality 79
Transaction versus Cumulative Perceptions
zei12052_fm_i-xxviii.indd xvi
Confirming Pages
Customer Satisfaction 80
What is Customer Satisfaction? 80
What Determines Customer Satisfaction? 81
National Customer Satisfaction Indexes 83
The American Customer Satisfaction Index 83
Outcomes of Customer Satisfaction 85
Service Quality 87
Outcome, Interaction, and Physical
Environment Quality 87
Service Quality Dimensions 87
Global Feature: Importance of Service
Quality Dimensions
across Cultures 88
E-Service Quality 91
Service Encounters: The Building Blocks For
Customer Perceptions 93
Service Encounters or Moments of Truth 93
Strategy Insight: Customer Satisfaction,
Loyalty, and Service as Corporate
Strategies 94
The Importance of Encounters 95
Exhibit 4.1: One Critical Encounter Destroys
30-Year Relationship 97
Types of Service Encounters 98
Sources of Pleasure and Displeawsure in
Service Encounters 99
Technology Spotlight: Customers Love
Amazon 100
Exhibit 4.2: Service Encounter Themes 102
Technology-Based Service Encounters 103
Summary 105
Discussion Questions 105
Exercises 106
Notes 106
PART 3
UNDERSTANDING CUSTOMER
REQUIREMENTS 111
Chapter 5
Listening to Customers through
Research 113
Using Customer Research to Understand Customer
Expectations 115
Research Objectives for Services 115
Criteria for an Effective Service Research
Program 116
Exhibit 5.1: Elements in an Effective Customer
79 Research Program for Services 118
2/8/12 1:07 PM

Elements in an Effective Service Marketing
Research Program 121
Complaint Solicitation 121
Technology Spotlight: Conducting Customer
Research on the Web 122
Critical Incident Studies 123
Requirements Research 124
Relationship and SERVQUAL Surveys 125
Exhibit 5.2: SERVQUAL: A
Multidimensional Scale to Capture
Customer Perceptions and Expectations of
Service Quality 126
Trailer Calls or Posttransaction Surveys 128
Service Expectation Meetings and Reviews 129
Process Checkpoint Evaluations 130
Market-Oriented Ethnography 130
Mystery Shopping 131
Customer Panels 132
Lost Customer Research 132
Future Expectations Research 132
Analyzing and Interpreting Customer Research
Findings 133
Zones of Tolerance Charts 133
Strategy Insight: From Greeting Cards to
Gambling, Companies Bet on Database
Customer Research 134
Global Feature: Conducting Customer
Research in Emerging Markets 136
Importance/Performance Matrices 136
Using Marketing Research Information 138
Upward Communication 138
Objectives for Upward Communication 138
Exhibit 5.3: Elements in an Effective
Program of Upward Communication 139
Research for Upward Communication 139
Exhibit 5.4: Employees Provide Upward
Communication at Cabela’s, “World’s
Foremost Outfitter” 141
Benefits of Upward Communication 142
Summary 142
Discussion Questions 142
Exercises 143
Notes 143
Chapter 6
Building Customer Relationships 145
Relationship Marketing 147
The Evolution of Customer Relationships 147
Exhibit 6.1: A Typology of Exchange
Relationships 149
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Detailed Contents xvii
Technology Spotlight: Customer
Information Systems Help Enhance the
Customer Relationship 150
The Goal of Relationship Marketing 152
Benefits for Customers and Firms 153
Relationship Value of Customers 156
Exhibit 6.2: Calculating the Relationship
Value of a Quicken Customer 157
Customer Profitability Segments 157
Profitability Tiers—the Customer
Pyramid 158
The Customer’s View of Profitability Tiers 159
Making Business Decisions Using Profitability
Tiers 160
Relationship Development Strategies 160
Core Service Provision 160
Switching Barriers 161
Relationship Bonds 162
Global Feature: Developing Loyal
Customers at Alliance Boots 166
Relationship Challenges 166
The Customer Is Not Always Right 166
Ending Business Relationships 169
Strategy Insight: “The Customer Is Always
Right”: Rethinking an Old Tenet 170
Summary 172
Discussion Questions 173
Exercises 173
Notes 174
Chapter 7
Service Recovery 179
The Impact of Service Failure and Recovery 180
Service Recovery Effects 181
Exhibit 7.1: The Internet Spreads the Story
of Poor Service Recovery: “Yours is a Very
Bad Hotel” 182
The Service Recovery Paradox 184
How Customers Respond to Service Failures 185
Why People Do (and Do Not) Complain 185
Types of Customer Complaint Actions 187
Types of Complainers 187
Service Recovery Strategies: Fixing the
Customer 188
Respond Quickly 189
Exhibit 7.2: Story of a Service Hero 190
Provide Appropriate Communication 191
Technology Spotlight: Cisco Systems—
Customers Recover for Themselves 192
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xviii Detailed Contents
Treat Customers Fairly 194
Exhibit 7.3: Fairness Themes in Service
Recovery 195
Global Feature: Service Recovery across
Cultures 196
Cultivate Relationships with Customers 197
Strategy Insight: Eliciting Complaints 198
Service Recovery Strategies: Fixing the
Problem 198
Encourage and Track Complaints 198
Learn from Recovery Experiences 199
Learn from Lost Customers 200
Make the Service Fail-Safe—Do It Right the
First Time! 201
Service Guarantees 201
Characteristics of Effective Guarantees 202
Types of Service Guarantees 202
Benefits of Service Guarantees 204
Exhibit 7.4: Questions to Consider in
Implementing a Service Guarantee 205
When to Use (or Not Use) a Guarantee 205
Switching Versus Staying Following Service
Recovery 206
Summary 208
Discussion Questions 208
Exercises 209
Notes 209
PART 4
ALIGNING SERVICE DESIGN AND
STANDARDS 215
Chapter 8
Service Innovation and Design 216
Challenges of Service Innovation
and Design 218
Important Considerations for Service
Innovation 219
Involve Customers and Employees 219
Global Feature: The Global Service
Innovation Imperative 220
Employ Service Design Thinking and
Techniques 220
Technology Spotlight: Facebook: A Radical
Service Innovation 222
Types of Service Innovation 224
Service Offering Innovation 224
Innovating around Customer Roles 225
Innovation through Service Solutions 225
zei12052_fm_i-xxviii.indd xviii
Confirming Pages
Stages in Service Innovation and
Development 226
Front-End Planning 227
Strategy Insight: Strategic Growth through
Services 230
Implementation 231
Exhibit 8.1: Service Innovation at the Mayo
Clinic 232
Service Blueprinting: A Technique for Service
Innovation and Design 234
What Is a Service Blueprint? 235
Blueprint Components 235
Service Blueprint Examples 237
Blueprints for Technology-Delivered Self-
Service 239
Reading and Using Service Blueprints 240
Building a Blueprint 241
Exhibit 8.2: Blueprinting in Action at
ARAMARK Parks and Destinations 242
Exhibit 8.3: Frequently Asked Questions
about Service Blueprinting 244
Summary 244
Discussion Questions 245
Exercises 245
Notes 246
Chapter 9
Customer-Defined Service
Standards 250
Factors Necessary for Appropriate Service
Standards 252
Standardization of Service Behaviors and
Actions 252
Formal Service Targets and Goals 253
Customer-, Not Company-, Defined
Standards 253
Strategy Insight: When Is the Strategy
of Customization Better Than
Standardization? 254
Types of Customer-Defined Service Standards 256
Hard Customer-Defined Standards 256
Exhibit 9.1: Examples of Hard Customer-
Defined Standards 257
Technology Spotlight: The Power of Good
Responsiveness Standards 258
Soft Customer-Defined Standards 259
Global Feature: Adjusting Service Standards
around the Globe 260
Exhibit 9.2: Examples of Soft Customer-
Defined Standards 262
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 Confirming Pages

Detailed Contents xix

Exhibit 9.3: Hard and Soft Standards for
Service at Ford Motor Company 263
One-Time Fixes 264
Development of Customer-Defined Service
Standards 264
Turning Customer Requirements into Specific
Behaviors and Actions 264
Exhibit 9.4: Expected Behaviors for Service
Encounters at John Robert’s Spa 268
Developing Service Performance Indexes 273
Summary 273
Discussion Questions 274
Exercises 274
Notes 275
Chapter 10
Physical Evidence and the
Servicescape 276
Physical Evidence 278
What Is Physical Evidence? 278
How Does Physical Evidence Affect the
Customer Experience? 279
Technology Spotlight: Virtual Servicescapes:
Experiencing Services through the
Internet 280
Types of Servicescapes 282
Servicescape Usage 282
Servicescape Complexity 283
Strategic Roles of the Servicescape 283
Strategy Insight: Strategic Positioning
through Architectural Design 284
Package 284
Exhibit 10.1: Using Physical Evidence to
Position a New Service 286
Facilitator 287
Socializer 287
Differentiator 288
Framework for Understanding Servicescape Effects
on Behavior 288
The Underlying Framework 288
Exhibit 10.2: Servicescapes and Well-being
in Health Care 289
Behaviors in the Servicescape 291
Internal Responses to the Servicescape 292
Exhibit 10.3: Social Support in “Third
Places” 294
Environmental Dimensions of the
Servicescape 296
Exhibit 10.4: Designing the Mayo Clinic
Hospital 298
Guidelines for Physical Evidence Strategy 298
Recognize the Strategic Impact of Physical
Evidence 298
Blueprint the Physical Evidence
of Service 299
Global Feature: McDonald’s Adapts
Servicescapes to Fit the Culture 300
Clarify Strategic Roles of the
Servicescape 302
Assess and Identify Physical Evidence
Opportunities 302
Update and Modernize the Evidence 302
Work Cross-Functionally 303
Summary 303
Discussion Questions 304
Exercises 304
Notes 305
PART 5
DELIVERING AND PERFORMING
SERVICE 309
Chapter 11
Employees’ Roles in Service Delivery 311
Service Culture 312
Exhibiting Service Leadership 313
Developing a Service Culture 313
Global Feature: How Well Does a
Company’s Service Culture Travel? 314
Transporting a Service Culture 314
The Critical Role of Service Employees 315
The Service Triangle 317
Employee Satisfaction, Customer Satisfaction,
and Profits 318
The Effect of Employee Behaviors on Service
Quality Dimensions 319
Boundary-Spanning Roles 319
Emotional Labor 320
Sources of Conflict 321
Strategy Insight: Strategies for Managing
Emotional Labor 322
Quality/Productivity Trade-Offs 324
Strategies for Delivering Service Quality through
People 324
Hire the Right People 325
Technology Spotlight: How Technology Is
Helping Employees Serve Customers More
Effectively and Efficiently 326
Exhibit 11.1: Google Quickly Becomes a
Preferred Employer in Its Industry 328

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xx Detailed Contents
Develop People to Deliver Service
Quality 330
Exhibit 11.2: Potential Benefits and Costs of
Empowerment 332
Provide Needed Support Systems 333
Retain the Best People 334
Customer-Oriented Service Delivery 336
Summary 338
Discussion Questions 338
Exercises 339
Notes 339
Chapter 12
Customers’ Roles in Service Delivery 345
The Importance of Customers in Service
Cocreation and Delivery 347
Customer Receiving the Service 347
Strategy Insight: Customer Cocreation of
Value: The New Strategy Frontier 348
Fellow Customers 349
Customers’ Roles 351
Customers as Productive Resources 351
Exhibit 12.1: Client Coproduction in
Business-to-Business Services 352
Customers as Contributors to Service Quality
and Satisfaction 354
Exhibit 12.2: Which Customer (A or B) Will
Be Most Satisfied? 355
Customers as Competitors 356
Global Feature: At Sweden’s IKEA,
Global Customers Cocreate Customized
Value 357
Self-Service Technologies—The Ultimate in
Customer Participation 358
A Proliferation of New SSTs 358
Customer Usage of SSTs 359
Success with SSTs 360
Strategies for Enhancing Customer
Participation 360
Define Customers’ Roles 360
Technology Spotlight: Technology Facilitates
Customer Participation in Health Care 362
Exhibit 12.3: Working Together, U.S.
Utility Companies and Customers Conserve
Energy 365
Recruit, Educate, and Reward Customers 365
Exhibit 12.4: Weight Watchers Educates and
Orients New Members 367
Manage the Customer Mix 368
zei12052_fm_i-xxviii.indd xx
Confirming Pages
Summary 370
Discussion Questions 370
Exercises 371
Notes 371
Chapter 13
Managing Demand and Capacity 375
The Underlying Issue: Lack of Inventory
Capability 377
Capacity Constraints 379
Time, Labor, Equipment, and Facilities 380
Optimal versus Maximum Use of
Capacity 380
Demand Patterns 381
The Charting of Demand Patterns 381
Predictable Cycles 382
Random Demand Fluctuations 382
Demand Patterns by Market Segment 383
Strategies For Matching Capacity and Demand 383
Shifting Demand to Match Capacity 383
Global Feature: Cemex Creatively Manages
Chaotic Demand for Its Services 384
Adjusting Capacity to Meet Demand 387
Strategy Insight: Combining Demand
(Marketing) and Capacity (Operations)
Strategies to Increase Profits 390
Combining Demand and Capacity
Strategies 392
Yield Management: Balancing Capacity Utilization,
Pricing, Market Segmentation, and Financial
Return 392
Exhibit 13.1: Simple Yield Calculations:
Examples from Hotel and Legal
Services 393
Technology Spotlight: Information and
Technology Drive Yield Management
Systems 394
Implementing a Yield Management System 394
Challenges and Risks in Using Yield
Management 396
Waiting Line Strategies: When Demand and
Capacity Cannot Be Matched 397
Employ Operational Logic 397
Exhibit 13.2: Overflow in the ED: Managing
Capacity Constraints and Excess Demand in
Hospital Emergency Departments 398
Establish a Reservation Process 400
Differentiate Waiting Customers 401
Make Waiting More Pleasurable 402
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Detailed Contents xxi

Summary 404 The Role of Nonmonetary Costs 445

Discussion Questions 404
Exercises 405
Notes 405
PART 6
MANAGING SERVICE PROMISES 409
Chapter 14
Integrated Service Marketing
Communications 411
The Need for Coordination in Marketing
Communication 413
Key Service Communication Challenges 415
Service Intangibility 415
Management of Service Promises 416
Management of Customer Expectations 416
Customer Education 417
Internal Marketing Communication 417
Five Categories of Strategies to Match Service
Promises with Delivery 418
Address Service Intangibility 418
Strategy Insight: Google’s Strategy Dominates
Web Advertising and Communication 421
Exhibit 14.1: Service Advertising
Strategies Matched with Properties of
Intangibility 422
Manage Service Promises 425
Global Feature: Virgin Atlantic
Airways 428
Manage Customer Expectations 429
Technology Spotlight: Grouping Customers
Based on Online Activities 430
Manage Customer Education 432
Manage Internal Marketing
Communication 434
Summary 437
Discussion Questions 437
Exercises 438
Notes 438
Chapter 15
Pricing of Services 440
Three Key Ways That Service Prices Are Different
for Customers 442
Customer Knowledge of Service Prices 442
Exhibit 15.1: What Do You Know about the
Prices of Services? 443
Price as an Indicator of Service Quality 447
Approaches to Pricing Services 447
Cost-Based Pricing 448
Competition-Based Pricing 449
Strategy Insight: “Congestion Pricing” as a
Strategy to Change Driving Behavior in Big
Cities 450
Demand-Based Pricing 451
Global Feature: Unique Pricing around the
World 452
Pricing Strategies That Link to the Four Value
Definitions 455
Technology Spotlight: Dynamic Pricing on
the Internet Allows Price Adjustments Based
on Supply and Demand 456
Exhibit 15.2: Pricing for Customer-
Perceived Value with Modular Service
Pricing and Service Tiering 458
Pricing Strategies When the Customer Means
“Value Is Low Price” 460
Pricing Strategies When the Customer Means
“Value Is Everything I Want in a Service” 462
Pricing Strategies When the Customer Means
“Value Is the Quality I Get for the Price I
Pay” 462
Pricing Strategies When the Customer
Means “Value Is All That I Get for All That I
Give” 464
Summary 466
Discussion Questions 466
Exercises 467
Notes 467
PART 7
SERVICE AND THE BOTTOM
LINE 469
Chapter 16
The Financial and Economic Impact of
Service 470
Service and Profitability: The Direct
Relationship 472
Offensive Marketing Effects of Service: Attracting
More and Better Customers 473
Exhibit 16.1: Customer Satisfaction,
Service Quality, and Firm
Performance 474

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 Confirming Pages

xxii Detailed Contents

Defensive Marketing Effects of Service: Customer Cases 495

Retention 476
Lower Costs 476 Case 1
Volume of Purchases 477 Zappos.com 2009: Clothing, Customer Service, and
Price Premium 477 Company Culture 495
Word-of-Mouth Communication 477 By Frances X. Frei, Robin J. Ely, Laura Winig
Exhibit 16.2: Word-of-Mouth
Communication and Customer Measurement: Case 2
The Net Promoter Score 478 Merrill Lynch: Supernova 516
Customer Perceptions of Service Quality and By Rogelio Oliva, Roger Hallowell, Gabriel R. Bitran
Purchase Intentions 478
Exhibit 16.3: Questions That Managers Want Case 3
Answered about Defensive Marketing 480 United Breaks Guitars 537
Exhibit 16.4: Service Quality and the By John Deighton, Leora Kornfeld
Economic Worth of Customers: Businesses
Still Need to Know More 482 Case 4
The Key Drivers of Service Quality, Customer Michelin Fleet Solutions: From Selling Tires to Selling
Retention, And Profits 483 Kilometers 549
Strategy Insight: Customer Equity and
Return on Marketing: Metrics to Match a Case 5
Strategic Customer-Centered View of the ISS Iceland 563
Firm 484
Company Performance Measurement: The Case 6
Balanced Performance Scorecard 484 People, Service, and Profit at Jyske Bank 572
Technology Spotlight: Cost-
Effective Service Excellence through Case 7
Technology 487 JetBlue: High-Flying Airline Melts Down in Ice
Global Feature: Measurement of Customer Storm 591
Satisfaction Worldwide 488 By Joe Brennan, Felicia Morgan
Changes to Financial Measurement 488
Customer Perceptual Measures 489 Case 8
Operational Measures 489 Using Services Marketing to Develop and Deliver
Innovation and Learning 489 Integrated Solutions at Caterpillar in Latin
Effective Nonfinancial Performance America 607
Measurements 489 By Holger Pietzsch, Valarie A. Zeithaml
Summary 491
Discussion Questions 492 Photo Credits 620
Exercises 492
Notes 492 Index 622

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 Confirming Pages

List of Boxes
PART 1 Global Feature
Foundations for Services Marketing 1 Global Outsourcing of Personal Services: What Are
Customers’ Expectations? 54
Chapter 1
Introduction to Services 2 Technology Spotlight
Customer Expectations of Airport Services Using
Technology 60
Exhibit 1.1
Is the Marketing of Services Different? A Historical Strategy Insight
Perspective 11 How Service Marketers Can Influence Customers’
Expectations 65
Strategy Insight
Competing Strategically through Service 13 Exhibit 3.1
Service Customers Want the Basics 67
Technology Spotlight
The Changing Face of Customer Service 16
Chapter 4
Global Feature Customer Perceptions of Service 76
The Migration of Service Jobs 18
Global Feature
Exhibit 1.2 Importance of Service Quality Dimensions across
Southwest Airlines: Aligning People, Processes, and Cultures 88
Physical Evidence 28
Strategy Insight
Chapter 2 Customer Satisfaction, Loyalty, and Service as
Conceptual Framework of the Book: The Corporate Strategies 94
Gaps Model of Service Quality 33
Exhibit 4.1
Global Feature One Critical Encounter Destroys 30-Year
Relationship 97
An International Retailer Puts Customers in the
Wish Mode to Begin the Closing Gaps 38
Technology Spotlight
Technology Spotlight Customers Love Amazon 100
Technology’s Critical Impact on the Gaps Model of
Service Quality 42 Exhibit 4.2
Service Encounter Themes 102
Strategy Insight
Using the Gaps Model to Assess an Organization’s
Service Strategy 46 PART 3
Understanding Customer
PART 2 Requirements 111
Focus on the Customer 49
Chapter 5
Chapter 3 Listening to Customers through
Customer Expectations of Service 50 Research 113
xxiii

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 Confirming Pages

xxiv List of Boxes

Exhibit 5.1 Chapter 7

Elements in an Effective Customer Research Service Recovery 179
Program for Services 118
Exhibit 7.1
Technology Spotlight
The Internet Spreads the Story of Poor Service
Conducting Customer Research on the Web 122 Recovery: “Yours is a Very Bad Hotel” 182
Exhibit 5.2 Exhibit 7.2
SERVQUAL: A Multidimensional Scale to Capture Story of a Service Hero 189
Customer Perceptions and Expectations of Service
Quality 126 Technology Spotlight
Cisco Systems—Customers Recover for
Strategy Insight Themselves 192
From Greeting Cards to Gambling, Companies Bet
on Database Customer Research 134 Exhibit 7.3
Fairness Themes in Service Recovery 195
Global Feature
Conducting Customer Research in Emerging Global Feature
Markets 136 Service Recovery across Cultures 196

Exhibit 5.3 Strategy Insight

Elements in an Effective Program of Upward Eliciting Complaints 198
Communication 139
Exhibit 7.4
Exhibit 5.4 Questions to Consider in Implementing a Service
Employees Provide Upward Communications at Guarantee 205
Cabela’s, “World’s Foremost Outfitter” 141
PART 4
Chapter 6 Aligning Service Design and
Building Customer Relationships 145 Standards 215

Exhibit 6.1 Chapter 8

A Typology of Exchange Relationships 149 Service Innovation and Design 216

Technology Spotlight Global Feature

Customer Information Systems Help Enhance the The Global Service Innovation Imperative 220
Customer Relationship 150
Technology Spotlight
Exhibit 6.2 Facebook: A Radical Service Innovation 222
Calculating the Relationship Value of a Quicken
Customer 157 Strategy Insight
Strategic Growth through Services 230
Global Feature
Developing Loyal Customers at Alliance Exhibit 8.1
Boots 166 Service Innovation at the Mayo Clinic 232

Strategy Insight Exhibit 8.2

“The Customer Is Always Right”: Rethinking an Blueprinting in Action at ARAMARK Parks and
Old Tenet 170 Destinations 242

zei12052_fm_i-xxviii.indd xxiv 1/25/12 6:42 PM

Another random document with
no related content on Scribd:
 XII.
In Peril of Indians.

The return journey was for the most part uneventful, but with
empty wagons we could travel more rapidly.
On our reaching the crossing of the Arkansas we found there a
company of dragoons, and the officers informed us that they had
been fighting and chasing the Cheyennes all summer, having just
halted there in following one band of these Indians to the Arkansas
river. They had been forced to abandon their provision wagons some
days before we saw them, and were almost entirely out of food. The
artillery had also been left behind two or three days’ march down the
Arkansas river. These troops, a part of Colonel Sumner’s regiment,
had had several brushes with the Cheyennes, and captured a lot of
horses from the Indians. The soldiers, their horses and equipments,
gave every evidence of having undergone a severe campaign, and
they came around our camp begging for something to eat, tobacco
and whisky, much as the Indians were in the habit of doing. But our
ability to relieve their wants was very limited, having with us only
supplies enough for our own party back to the settlements.
The officers said that it would be hazardous for us to proceed
further, advising our captain to remain until the trains in our rear
could get up, until they had accumulated to at least one hundred
wagons and men, when we would be strong enough to resist any
attack that we were likely to be subjected to.
Acting on this advice, we remained in camp several days, until
five or six trains had arrived and camped in our immediate vicinity.
The journey was then resumed, our train taking the lead, all our
weapons of defense being put in as good order as possible. After the
trains were under way the wagonmasters of those behind us, to the
number of ten or a dozen, mounted on horses and mules, would ride
ahead to join Captain Chiles, Reece and myself, thus forming a lively
and agreeable company of companionable men.
As we were thus riding along down the level bottom of the
Arkansas, some distance in advance of the trains away to our right a
mile or more, out near the bank of the river, where we could see
some scattering cottonwood trees, we observed a smoke rising from
a camp fire. Some one of the party suggested that it was the smoke
of the camp of the artillery company, of which we had been told, so
we rode forward, giving little more attention to the smoke of the
camp fire that went curling upward among the cottonwood. When we
had reached a point about opposite the smoke there suddenly
appeared in our view a company of some fifty horsemen, riding pell-
mell in a fast gallop towards us. They were yet too far off to be
distinctly seen or for us to tell what manner of men they were. In
another moment, Captain Chiles exclaimed:
“Men, they are Indians! Soldiers don’t ride in that disorderly
manner. Form a line and get out your guns. We are in for it!”
Instantly all hands obeyed his command, forming a line, facing
the enemy, each of us drawing a pistol. The lead wagons of our train
were just barely visible, probably two miles from us. When the
approaching horsemen saw that we had formed a line of battle, they
instantly drew rein, slackening their speed to a walk, but kept
steadily drawing nearer us.
 “MEN, THEY ARE INDIANS!”

In a few minutes our anxiety was relieved when these horsemen

came near enough for us to see that they were white men, not
Indians, and, after all, they proved to be the company of artillery,
mounted on some Indian horses that had lately been captured from
the Cheyennes. Under the circumstances it was not at all strange
that we had mistaken them for hostile Indians.
The next morning after this the wagonmasters of these several
trains came forward as usual, and we set out to travel in advance of
the trains, hoping to find buffalo as we had again reached their
accustomed range.
I had the only real good buffalo horse in the company, but his
speed and strength we found considerably lessened and impaired by
the long journey. In discussing the prospects of finding buffalo, and
of killing one for a supply of fresh meat, which we were all very eager
again to get, Hines, an assistant wagonmaster of one of the trains,
suggested to me that I should use his pair of heavy Colt’s army
revolvers, which, he said, carried a heavier ball and were more
effective in killing buffalo than mine. Although I was somewhat
doubtful, I exchanged with him. We had ridden forward but a few
miles when we descried a herd of some twenty buffalo, in the
distance. The understanding being that I was to lead off in this
chase, I put spurs to my horse, the others following. There were
several young cows in the band, one of which I selected, and
pressed my horse forwards. In a few moments we were going at a
furious rate of speed, and my prospect of success was good, but just
as I was leaning forward, with pistol in my right hand, in the act of
shooting the cow, the stirrup leather of my saddle suddenly broke,
almost precipitating me headlong to the ground, but I escaped falling
by catching around the horse’s neck with my left arm; the heavy
pistol fell to the ground. While I was preparing to mend the stirrup
leather, having dismounted for that purpose, the other men of the
party rode up, the buffalo, meanwhile, having run entirely out of
sight.
When I had gotten the stirrup repaired, Captain Chiles, noticing
that I was a good deal shaken up and unnerved by the occurrence,
said that I would better let him have my horse and pistols, which I
readily gave up to him, knowing that there was no man on the plains
who excelled him in a buffalo chase or one more sure to provide
fresh meat. So he mounted my horse, and I got upon his mule, and
we all started off in the direction the buffalo had gone. We had by
that time reached a section of rolling country on the “cut-off” across
the bend of the Arkansas, lying in great ridges, with valleys
intervening. As we got to the top of one of these ridges Captain
Chiles, who was in front, exclaimed: “Look yonder at that band of
elk!”
There they were, perhaps two hundred of them, grazing in a
valley a mile distant. I immediately claimed my horse, for I did not
want to miss the opportunity of killing an elk, but the captain merely
laughed at me and started down toward the elk in a gallop. The elk,
seeing him, were soon all in motion, running in a great mass, stirring
up a cloud of dust, soon passing from our view around the point of
the ridge on the farther side of the valley, Captain Chiles following
them closely, the horse at full speed. After they had gotten out of
sight of us we heard the report of his pistol, two or three times, and
our entire party followed in his wake until we had reached the point,
where we thought the firing had occurred. Finding neither Chiles nor
any dead or wounded elk the men all, except Reece and I, refused to
go further, and turned about towards the road. Reece, who was
riding his big gray horse, and I, on the mule, continued riding in the
direction we supposed Chiles had gone, until we had ridden perhaps
four miles, when I began to feel a little uneasy, expressing a
disinclination to go further, as I was riding a worn-out, leg-weary
mule, with nothing but a belt pistol in the way of arms, and being in
the neighborhood of hostile Indians. Reece said to me: “You remain
here while I ride to the top of that high mound yonder,” pointing to a
hill a mile farther on. “When I get there,” he said, “if then I can neither
hear nor see anything of Chiles or the elk I will return here for you.”
Reece rode away. I remained alone for an hour or more—the
danger of the situation made it appear much longer than it really
was, no doubt—and finally I saw Reece and Chiles coming, greatly
to my relief. They were in good spirits, and as they rode up Chiles
said they had killed the biggest elk that ever ran on the plains, giving
me an account of his capture in detail as we rode back.
 XIII.
Captain Chiles’ Chase.

When Reece had got to the top of the mound he saw Captain
Chiles, sitting on a horse, holding by a rope a huge bull elk. The elk
stood in the bottom of a deep, narrow ditch, ten feet deep, with
banks almost perpendicular, so steep that he was unable to get up
them or out of the ditch to assail his captor. Captain Chiles, when he
first caught up with the band of elk, had made an effort to kill one
with the pistols, but for some reason he could only get the pistols to
fire two of the charges, and with these two he only wounded a cow
slightly, not enough to stop her from running. He kept after the band,
all the while trying to get the revolver to fire, trying every chamber,
but with no success. After he had kept up the chase for two or three
miles the large bull elk, being very fat, got too tired to keep up with
the band, but trotted along behind, in fact, so far exhausted that
Chiles could keep up with him with his horse in a trot. The captain
despaired of being able to stop one with the pistols, and, finding a
small lariat I had brought from the Kiowas as we went out, on my
saddle, used for picketing my horse, resolved to try the plan of
lassoing the big fellow.
Being an expert in rope throwing, he had little difficulty in
preparing the noose or getting a fastening around the top prong of
one branch of the elk’s great antlers. As soon as the elk found he
was restrained by the rope he turned about and charged on Captain
Chiles with all the power and fury he could command, and twice or
thrice the captain was forced to cut loose from him in order to
escape his assaults. The rope was long enough to drag on the
ground some distance behind him, so that the captain could recover
hold of it without dismounting, reaching down and picking it up as the
bull trotted away from him. He kept on after him for some distance,
occasionally jerking him back, and worrying him until he could hardly
walk. Coming to the lower end of the ditch, washed out to a depth of
ten feet, at a point a few yards above, he managed to guide the
animal, bewildered as he was by the heat, together with the violent
and prolonged exercise, into it, leading or driving him along up the
ditch until he got him in between the high banks of it to a place
where the animal could not get at him however anxious he was to do
so.
When Reece arrived, as above related, he found Chiles sitting
there on the horse holding the end of the rope, but having nothing
with which to kill the animal, not even a pocket pistol. Reece had
with him a belt revolver, and, under the directions of Chiles, he
carefully crawled to the edge of the ditch to within a few feet of the
elk’s head and killed him with a couple of shots in the forehead.
The bull had not been wounded by Chiles, and no one but a
veritable daredevil as he was would have undertaken the job of
lassoing an elk under such circumstances as he did. But Chiles was
a stranger to fear.
Chiles, Reece and I got to the camp about 2 o’clock, near six
miles from where the elk was killed. After dinner we went out with
pack mules and the necessary hatchets and butcher knives, and two
of the drivers, to butcher the elk. The animal was a splendid
specimen of his kind, supporting a magnificent pair of antlers, fully
hardened and developed, and was fatter than any other animal of
the deer kind I have seen, before or since. We butchered and
brought to camp on the pack mules every part of his carcass,
including the antlers. The latter were brought home to Jackson
county. We feasted on the flesh of the fat elk for several days, and
my recollection is that I never tasted better meat.
The remaining part of the journey was uneventful, the entire
party remaining with the train until we were within eighty miles of the
state line of Missouri. Then, in company with Captain Chiles, I
started, before daylight, to make a forced march to Westport. We
rode forty miles before we halted for breakfast, obtaining it at a
settler’s cabin in the vicinity of Black Jack, arriving in Westport late in
the evening, in the latter part of September, feeling very willing to
rest once more in a comfortable house and bed.
I saw my friend Reece about a year after he had returned to his
home in Missouri still making a fight for life, but during the second
year he struck his flag and made a final surrender.
At Westport the drivers were paid off and disbanded, but I was
not present to witness the separation of the company that had
formed a companionship, offensive and defensive, during this long
and tiresome journey across the plains. Doubtless nearly all of them,
in the vernacular of the Western mountains, have “crossed over the
range.”
 Lewis & Clark’s Route
Retraveled.

The Upper Missouri in 1858.

BY
W. B. NAPTON.
 CHAPTER I.
In 1858, under existing treaties with the western Indian tribes,
the national Government sent out to them annually large
consignments of merchandise. The superintendent of Indian affairs,
whose office was in St. Louis, chartered a steamboat to transport
these annuities to all the tribes in the country drained by the Missouri
—beginning with the Omahas and Winnebagoes in Nebraska and
ending with the Blackfoot, at the base of the Rocky Mountains,
around the sources of the Missouri. Nearly one-half of the cargo of
this boat, however, consisted of the trading merchandise of Frost,
Todd & Company, a fur-trading concern, whose headquarters were
at St. Louis, and whose trading posts were established along the
Missouri from Yankton to Fort Benton. The whole of the territory of
the United States then north of Nebraska was without any legal
name or designation; at least there were no such territories as
Dakota or Montana shown on the maps. At that time, and for many
years before, a steamboat load of merchandise was sent up as far
as Fort Benton by the American Fur Company, having its
headquarters also in St. Louis, and controlled mainly by the
Chouteaus, to replenish the stocks of their trading posts along the
river. The trade of these companies was exclusively with the Indians,
the exchange being for buffalo robes, furs of the beaver, otter, mink,
etc., used for making clothes, gloves, etc.
Colonel Redfield, of New York, was the agent for the Indian
tribes along the river from the Omahas in Nebraska to Fort Union at
the mouth of the Yellowstone. Colonel Vaughn, of St. Joseph, Mo.,
was agent for the Blackfoot tribe, and that year had special orders to
take up to his agency, on Sun River, forty miles above Fort Benton
(now Montana), farming implements, horses and oxen, and to make
an effort to teach the tribe the peaceful art of agriculture. These
Blackfoot Indians, however, regarded agriculture a good deal as it is
defined by our humorous friend, Josh Billings, who defined it as “an
honest way of making a d—md poor living.” The Indians fully
sanctioned and concurred in this definition. I had received at the
hands of Colonel Vaughn the appointment of attaché to his agency,
pretty nearly a sinecure, but affording transportation from St. Louis to
Fort Benton and back, if I choose to come back.
The boat was a medium-sized Missouri River packet, nearly
new, with side wheels and powerful engines. Steamboating on the
Missouri had then reached the highest stage of prosperity. A line of
splendidly furnished and equipped passenger boats ran from St.
Louis to St. Joseph, providing almost every comfort and luxury a
traveler could ask. The table was elegant and the cuisine excellent,
the cabin and state-rooms sumptuously furnished, and last but not
least, there was always a bar where any kind of liquor could be
found by those who preferred it to Missouri River water. There were
good facilities for card-playing either with or without money, and no
restraint in either case. There was usually a piano in the cabin, and
frequently a fair band of musicians among the waiters and cabin-
boys. These great passenger-boats ran all night, up and down the
most treacherous and changeable of all the navigable streams. To
be a first-class pilot on the Missouri River was equivalent to earning
the highest wages paid in the West at that time. The chief pilot of our
boat, R. B—, was of that class. Just before he took service on this
boat he had forfeited a contract for the season at $1,000 a month
with the “Morning Star,” a large passenger-packet, running from St.
Louis to St. Joseph, from the fact that he was on one of his
periodical sprees when she was ready to embark from St. Louis.
After the boat got under way, I spent a great deal of time in the
pilot-house with R. B—, who I found a man of fair education and
considerable culture, a devotee of Shakespeare, quoting or reciting
page after page of his “Tragedies” without interruption of his duties at
the helm of the boat, a position requiring great courage and steady
nerves. R. B— knew every twist and turn of the channel of the
Missouri from St. Louis to St. Joseph, knew every bar where the river
was either cutting out its bed or filling it up, knew precisely the
location of every snag protruding above water, and of many that
were invisible except at a low stage of water—in short, knew at all
times, night or day, exactly the position of the boat and its bearings.
The passengers formed a motley congregation. The two Indian
agents, their clerks and attachés, the agents, trappers and
voyageurs of the fur companies, mostly Canadian Frenchmen
intermixed with Indians; a few, however, were native Americans, a
young English sportsman, Lace, and his traveling companion from
Liverpool, going up to the mountains to kill big game. A young
gentleman, Mr. Holbrook from New England, who had just graduated
at Harvard and was traveling for health, Carl Wimar, an artist of St.
Louis whose object was to get pictures of the Indians, and a young
man of great genius and promise in his profession, a captain, two
pilots, two engineers, two cooks, cabin-boys, etc., twenty regular
deck hands and, in addition to these, about seventy-five stout
laboring men to cut wood to supply fuel for the boat’s furnaces after
we had gotten up above the settlements.
We commenced cutting wood soon after passing Omaha,
although we found occasional piles of wood already cut on the river
bank above Sioux City, Iowa.
There were no female passengers and the boat had been
stripped of carpets, mirrors, etc.
Colonel Redfield was a staid, straight-laced gentleman from the
East, while Colonel Vaughn was a jolly frolicsome fellow of sixty-five
years, who had been thoroughly enjoying western life among the
Indians on the upper Missouri for many years, and no matter how
late at night the bar was patronized, the following morning, when one
would enquire as to the state of his health, he would answer with
inimitable gusto, “Erect on my pasterns, bold and vigorous.”
The fur company men were nearly all Canadian Frenchmen,
some of them having a greater or less degree of Indian blood in their
veins. These people had come down from their trading posts,
starting just as soon as the ice broke up in the river, on keel or flat-
boats, bringing along some furs and peltries, and had reached St.
Louis in time to spend a week or two there. Having settled with the
fur companies at headquarters in the city, the remainder of their
limited contact with civilization would be spent in seeing the sights of
the city.
These fur traders, trappers and voyageurs formed a class now
extinct in the United States, a remnant of them yet remaining
perhaps in British America. The boat made no landings except for
fuel, until we reached the reservations of the Omahas and
Winnebagoes in Nebraska.
Not long after embarking from St. Louis, a game of poker was
arranged and started among these trappers and played on a good-
sized round table made especially for this purpose, such a one as
every passenger-boat on the Missouri River was then provided with.
The game was kept going a great part of the time, until we reached
Fort Union at the mouth of the Yellowstone, the players having then
been thinned out by departure from the boat at the different forts as
we passed up. These men were all friends or acquaintances of long
standing, and while they played with money, no one seemed to care
particularly about his losses or winnings, in other words, there were
no real gamblers in the party, the stakes being only such as they
could loose without repining, or which is still more difficult, such as
they could gain without undue exultation. The conversation between
them was really more interesting than the game. They could all
speak English and French and a half-dozen Indian tongues, making
their conversation and dialect in the poker game singularly
interesting.
Pappineau was one of the poker players, and his station was
Fort Berthold. He was a good-natured, vivacious, volatile Canadian
Frenchman, a general favorite, but not possessing the required level-
headedness to play a good game of poker. His finances were
running low even before he left St. Louis, and in consequence of
this, he found it necessary every few days to withdraw from the
game. His presence and talk were highly appreciated by the other
players, and on these occasions it was quite in keeping with the
existing state of good fellowship among them to notice someone
“stake” Pappineau with five or ten dollars, without any embarrassing
stipulations for its return, in order that he might resume his place in
the game. On reaching Fort Berthold Pappineau took pride in
bringing his squaw on board the boat, presenting her to those among
us who were strangers, and he had no reason to be ashamed of her,
as she was one of the best-looking and neatest Indian women we
saw on this journey.
Carl F. Wimar, the gifted St. Louis painter, was making his first
trip up the Missouri to get a look at the Indians. He was a tall, slim,
lithe man of thirty, a swarthy complexion resembling a Spaniard
rather than a German, quick, active and indefatigable in the
prosecution of his work. When we got to the Indians he was always
on the alert for the striking figures among them. On reaching the
Indians the agent would invite them to a council, held in the cabin of
the boat. On these occasions Wimar would make pencil sketches of
the assembled Indians, and he did this work with great rapidity and
dexterity. He was also equipped with a camera and ambrotype
materials, and could sometimes induce the Indians to let him get
pictures of this sort, but usually they were averse to being looked at
through the camera. On one occasion above Fort Pierre while the
boat was tied up swinging around against a bluff bank about the
same height with the guards of the boat, a great big Indian came
creeping up through the willows, squatting down on the bank within a
few yards of the boat. He was most ornately and elaborately
dressed, completely covered from head to foot with garments of
dressed skins, profusely ornamented with garniture of beads, fringe,
etc., and, as we afterwards ascertained, was a famous “medicine
man.” On his head an immense bonnet ornamented with feathers,
beads, etc., with a leather strap forming a sort of tail to the bonnet,
strung with circular plates of silver, reaching down behind almost to
the ground when standing erect. Wimar began preparations for
taking his ambrotype, thinking he might get it unobserved, but as
soon as he began looking through the camera at him the Indian
jumped up, evincing immediately his opposition to the process, at
once drawing an arrow from his quiver, and by his hostile
demonstrations and talk made Wimar understand that he would not
submit. Then Wimar undertook to show him that he meant no harm
whatever, exhibiting some pictures he had taken of other Indians, but
he seemed unable to understand him and soon disappeared from
view through the willow bushes lining the river bank.
 Carl Frederick Wimar was born in Germany, but brought to this
country by his parents in infancy, and, at an early age, disclosed his
artistic temperament and talent. Returning to Germany, he studied
under the great painter Luetze, the painter of the celebrated picture
at Washington, of Washington crossing the Delaware, copies of
which are familiar to the public. Wimar afterwards painted the fresco
pictures in the dome of the rotunda of the St. Louis Court House. I
saw him paint a portrait of Captain Atkinson, a son of General
Atkinson, as we were ascending the river, in the cabin of the boat,
which I thought denoted marked artistic skill as well as being a
faithful likeness of the man. Poor Wimar died with consumption five
years later at the age of thirty-four, ending all hopes of his attaining
the highest eminence of fame as an artist, that I believe he must
surely have reached had he lived to mature age. He was naturally an
amiable gentleman as well as a great artist.
Along the Missouri above Omaha, the country is mostly prairie,
with extensive bottoms on one side or the other, beyond the bottoms
rising gradually as it recedes to the general altitude of perhaps a
hundred and fifty feet back a mile or two from the river, the absence
of timber and gently undulating topography affording a good
panoramic view from the deck of the boat as she battled upwards
against the strong current.
Just below Sioux City, a small town at that time, our pilot pointed
out Floyd’s Bluff, an oval-shaped hill lying at right angles to the river,
its base washed by it, and into which the river seemed to be cutting
and undermining. On the summit of this bluff we could see a post
and a pile of loose stones, as we supposed placed there to mark the
grave of Sergeant Floyd, the first American soldier to lose his life in
our then newly-acquired Louisiana Purchase. Sergeant Floyd was
one of the soldiers accompanying Lewis and Clark’s exploring
expedition, who died and was buried on this bluff as they passed up
in 1804, and here in this solitary grave he had rested more than half
a century. Even then, in 1858, there was no house or settlement in
sight, and I remember to this day the melancholy impression in my
youthful mind, from his dying and being buried in the wilderness so
far from friends and relatives. A late Congress did justice to his
memory, performing a graceful and becoming act in authorizing the
erection by the Secretary of War of a monument at the grave of
Sergeant Floyd, appropriating $5,000 for the purpose.
When the Indians were reached, the boat being landed, the
chiefs would assemble in the main cabin and a council be held with
their agent. The agent would first address them, his speech being
conveyed through an interpreter connected with the agency.
Following we would have many speeches from the Indians, many of
whom were great speakers, if not orators, forcible and fluent,
speaking without embarrassment. While these discussions were in
progress, the artist Wimar would avail himself of the opportunity to
make pencil sketches of the most prominent among them.
 CHAPTER II.
Fort Randall was the extreme frontier post occupied by troops.
The fort was located on a beautiful site on the left bank. The boat
landing and remaining here awaited the preparations of an officer,
Captain Wessells, and a squad of soldiers to accompany the Indian
agents as a guard.
The officers’ quarters and barracks occupied two sides of a
quadrangle of about ten acres, forming a level parade ground of
prairie sod, in the center of which stood a flag-staff and bandstand.
In the afternoon a fine regimental band regaled us with delightful
music that seemed to be enjoyed even by the Indians loafing around
the fort. The officers were exceeding courteous, showing us
everything of interest to be seen about the post, and when Captain
Wessells and his squad of men, twenty soldiers, were ready to come
on board on our departure, we were heartily and boisterously
cheered by a multitude of officers and soldiers assembled on the
river bank. A lieutenant who had perhaps imbibed too freely at the
bar shouted at the top of his voice, throwing his hat into the river as
the boat floated away.
Our next prominent landing was Fort Pierre, the main trading
post of the great Sioux nation. Here we found them assembled in
force, the entire tribe being present except one band, that of “Big
Head,” awaiting the arrival of Colonel Redfield, their agent. The river
bottom above the fort was dotted with their lodges as far as we could
see from the hurricane deck of the boat. The cabin would not
accommodate even the chiefs of this vast assemblage, so the
council was held in the open plain a short distance from the landing.
The chiefs were splendid-looking fellows when they got together,
hardly one among them less than six feet high. The Sioux then
mustered a larger number of stalwart, fine-looking, bronze-colored
men than could be assembled elsewhere on the continent. They
were then subdivided into eight bands, all present on that occasion
except the band of “Big Head,” the most unfriendly and hostile of the
Sioux. The previous year when Colonel Vaughn was their agent, Big
Head got mad at him, and while he was speaking, jerked the
spectacles off his nose, declaring that he allowed no man “to look at
him with two pair of eyes.”
The council with the Sioux continued the greater part of the day
with a great flow of Indian eloquence. A large quantity of goods was
brought from the boats and piled in heaps—enough, it seemed, to
stock a large wholesale house, but, in accepting the goods, the
Indians did not seem to show any pleasure, much less gratitude; on
the contrary, they looked about with their usual indifference as if they
felt they were being put under obligations not easily discharged. But
in truth little of their talk was understood by me, and less of their
actions.
The fur trade at Fort Pierre was more extensive than at any other
point on the river, and both the trading companies had many
employees residing there, and kept large stocks of goods. Here I
made the acquaintance of two young gentlemen, natives of St.
Louis, members of the forty or four hundred porcelain of that town,
now, however, on duty at the fort directing the Indian trade, and each
supporting two squaws, the mothers of several children. They
seemed in fine health and spirits, and enjoying life in spite of
isolation from refined society.
As the boat was leaving Fort Pierre, we gained a passenger that
would be a conspicuous person in any crowd from his unusual good
looks. Soon after coming on board he joined in the poker game,
being well known to all the upper river men. A man of twenty-five
years, tall, well built and remarkably handsome, a quarter-blood
Sioux, his mother being a half-blood, his father a Frenchman long a
resident of the Indian country, and who had given this son all the
advantages of a good education at some eastern college. He was
affable, agreeable and gentlemanly in his conduct, and I shall never
forget the man although I do not recall his name. He remained with
us only a few days, stopping off at a trading post some distance
above Fort Pierre.
At Fort Pierre we had another addition to our passengers in the
person of Colonel Vaughn’s Indian wife and children. The colonel,
being a widower when appointed by President Pierce agent for the
Sioux, married (according to the custom of the Indians) a member of
that tribe, and in the early spring she had accompanied the colonel
from the Blackfoot Agency, down the river on a keel-boat, to Fort
Pierre, where she had remained with some relatives awaiting the
colonel’s return. Being thus identified, Colonel Vaughn’s influence
and popularity with the Indians was greatly increased, and in fact so
thoroughly established that he remained at the agency on Sun River,
Montana, surrounded by Indians, without a guard and with perfect
safety.
A day or two after leaving Fort Pierre the boat was signalled by
Big Head and his band who came approaching the river from the
northeast, across a vast bottom prairie, and who were conspicuous
on account of their absence at the council at Fort Pierre, and this fact
was construed by the agent and others connected with the Indians
as an indication of his continued unfriendliness or possible open
hostility. The boat was steaming along against a strong current, but
near the shore, when this band was seen approaching, giving
signals for the boat to land, which the agent immediately ordered.
While the landing was being made, the band, several hundred in
number, had approached within two hundred yards of the river bank,
when they formed an irregular line and halting, fired towards us a
number of guns, the bullets from which went whistling through the air
above us. For a while it was thought they had attacked us, but in a
few moments it was discovered that this demonstration of fire arms
was intended as a salute for the agent. The boat having landed, Big
Head and his sub-chiefs and warriors came on board, assembled in
the cabin, where a council was duly organized. Big Head made a
great speech, in which he gave some excuse for not attending the
general council at Fort Pierre, claiming to be altogether peaceful and
friendly, and anxious to accept the annuities from the great father at
Washington. Big Head was a heavy built ugly Indian unlike most of
his tribe, who were generally tall, well proportioned, fine-looking
fellows.
Singularly enough, no buffalo were seen by us while ascending
the river in 1858. Several years later, in 1865, going up the river to
the mines in Montana, we saw great herds of them along the river for
more than a thousand miles, and killed as many as were needful to
supply the boats with meat. They were frequently found crossing the
river in such numbers as to prevent navigation of the boat.
Occasionally we would approach them massed under a bluff-bank,
after swimming the river, too steep to allow exit from the water, and
here they would stand or swim around in the water (accumulated
here from the opposite side of the river) exhausted and apparently
bewildered.
Under these circumstances, if we were in need of meat, the
captain would land the boat below them, the yawl-boat would be
lowered, manned with oarsmen, and a man provided with a rope and
butcher-knife, and rowed up to the heads of the animals as they
swam around. The rope would be tied around the horns, the buffalo
killed with the butcher-knife, the carcass floated down to the boat,
when the hoisting tackle would be attached to it and lifted aboard,
where it was handily skinned and quartered.
After we passed above that part of the river with which the pilots
were thoroughly acquainted, it was necessary to tie up at night, and
much time was consumed in cutting wood. The boat was also
delayed some time at Cedar Island, an island covered with a dense
grove of cedar, growing so thick that the trees were void of branches
or knots, forming excellent smooth poles that were used for various
purposes at the trading posts, and a great quantity of these poles
were cut and brought on board. This was the only island in the river
on which the growth was entirely cedar, and on this island the
Indians procured their lodge-poles.
On this part of the river one could sit on the deck of the boat and
enjoy the vast expanse of country, gradually sloping from the river to
the hills, miles in extent, generally monotonous to be sure, but
sublime in its vastness and simplicity. Here and there herds of deer