Services Marketing

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Course TypeCourse CodeNo. Of Credits
Foundation ElectiveSBP2MB6142

Semester and Year Offered:

Course Coordinator and Team: Prof. Kartik Dave

Email of course coordinator: kartik[at]aud[dot]ac[dot]in


Course Objective: The objective of this course is to explain the special need for services marketing discipline, the challenges for services marketing, and how to deal with them. It also aims at understanding of marketing practices in service organisations, and the recent trends in the service sector.

Course Outcomes:

  1. At the end of the course the students will be able to:
  2. Demonstrate an extended understanding of the similarities and differences in service-based and tangible product based marketing activities
  3. Demonstrate knowledge of the extended marketing mix for services and explaining the unique challenges of services marketing, including the elements of product, price, place, promotion, processes, physical evidence, and people.
  4. Develop and justify marketing planning and control systems appropriate to service-based activities
  5. Conduct an investigation of service delivery systems, collecting, analyzing data, and synthesizing information to provide valid conclusions.

Brief description of modules/ Main modules:

Unit 1: Introduction to Services Marketing (4 hours)

Services marketing concepts and practices; Differences between goods and services and the resulting challenges, ‘Services marketing myopia’; Service marketing triangle, Services marketing strategies

Unit 2: Understanding Consumers and Service Quality (4 hours)

Service expectations, perceptions of service; Service quality, SERVQUAL tool, Service quality research

Unit 3: Service as a Product and Delivery Process (6 hours)

Creating Services and Managing Service Delivery Process: Core, facilitating, and support services; Customer participation in service production and delivery; Service blueprinting; Customer defined service standards; Demand and supply of services; Service delivery intermediaries

Unit 4: Service Pricing (4 hours)

Pricing of Services and Revenue Management; Costs, perceived value, and competition; Yield management and price bundling; Pricing strategies

Unit 5: Service Communication and Branding (3 hours)

Service promises and delivery; advertising for services, Role of promotion in marketing of services

Unit 6: Managing Physical Evidence of Service (4 hours)

Servicescape, Design for high-contact and low-contact services; physical evidence strategy

Unit 7: Managing People in Services (4 hours)

Customer satisfaction, Service oriented organizational structure, service failures and recovery strategies

Unit 8: Managing Customer Relationships (3 hours)

Building loyalty, Relationship marketing, Customer lifetime value (CLV) and customer equity

Assessment Details with weights:



Case analysis and presentations

20 %

Mid Term

20 %



End Term



Reading List:

  • Anderson, J. C., & Narus, J. A. (1998). Business marketing: understand what customers value. Harvard business review, 76, 53-67.
  • Berry, L. L., & Parasuraman, A. (2004). Marketing services: Competing through quality. Simon and Schuster.
  • Grönroos, C. (1984). A service quality model and its marketing implications. European Journal of marketing, 18(4), 36-44.
  • Grönroos, C. (2007) Service Management and Marketing – A Customer Relationship Management Approach, Second Edition, London: John Wiley.
  • Hart, C. W., Heskett, J. L., & Sasser Jr, W. E. (1989). The profitable art of service recovery. Harvard business review, 68(4), 148-156.
  • Heskett, J. L., & Schlesinger, L. A. (1994). Putting the service-profit chain to work. Harvard business review, 72(2), 164-174.
  • Hoffman, K.D., Bateson, J.E.G., Wood, E.H., and Kenyon, A.J. (2010). Services Marketing: Concepts, Strategies and Cases, Cengage Learning India Pvt. Ltd.
  • Kurtz, D. L., & Clow, K. E. (1998). Services marketing. Wiley.
  • Lovelock, C. H. (1983). Classifying services to gain strategic marketing insights. The Journal of Marketing, 9-20.
  • Lovelock, C., Chatterjee, J., and Wirtz, J. (2011). Services Marketing-people, technology, strategy (7th Edition), Pearson
  • Reichheld, F. F., & Sasser, W. E. (1990). Zero Defeofions: Quoliiy Comes To Services.
  • Shanker, R. (2002). Services marketing. Excel Books India.
  • Srinivasan, R. (2014). Services marketing: the Indian context. PHI Learning Pvt. Ltd.
  • Tripathi, G., & Dave, K. (2014). Exploration of service quality factors in restaurant industry: A study of selected restaurants in New Delhi region. Journal of Services Research, 14(1), 9.
  • Wilson, A., Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2012). Services marketing: Integrating customer focus across the firm. McGraw Hill.
  • Wirtz, J., & Lovelock, C. (2016). Services marketing: people, technology, strategy. World Scientific Publishing Co Inc.
  • Zeithaml, V. A., Bitner, M. T., Gremler, D. D., and Pandit, A. (2013). Service marketing, 6th edition, Special Indian edition.