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April 29, 2025

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Learning Goal: I’m working on a management multi-part question and need support to help me learn.

Students are advised to make their work clear and well presented; marks may be reduced for poor presentation. This includes filling your information on the cover page.

Students must mention question number clearly in their answer.

Late submission will NOT be accepted.

Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Submissions without this cover page will NOT be accepted.

Copying, plagiarism or theft is prohibited

And it will be from his own book

Citation is very important in every paragraph

Because learning changes everything. ®

Chapter 13
Services: The Intangible
Product

Learning Objectives
Learning Objective 13.1 Describe how the marketing of
services differs from the marketing of products.
Learning Objective 13.2 Discuss the four gaps in the
Service Gaps Model.

Learning Objective 13.3 Examine the five service quality
dimensions.
Learning Objective 13.4 Explain the zone of tolerance.
Learning Objective 13.5 Identify three service recovery
strategies.

Service
Any intangible offering
that involves a deed,
performance, or effort
that cannot be
physically possessed.
By providing good
customer service, firms
add value to their
products and services.

Pro Ipad on display at the Apple Store in Bologna, Spain.

Shutterstock / PriceM

The Service-Product Continuum

Doctor

Dry cleaner

Restaurant

These photos illustrate the continuum from
a pure service to a pure good. Most
offerings lie somewhere in the middle and
include some service and some good (i.e.,
a hybrid of the two).
Grocery store
© McGraw Hill LLC

Left: Viacheslav Iakobchuk/Alamy Stock Photo; Middle: McGraw-Hill Global Education Holdings, LLC; Right: Jacob Lund/Shutterstock; Bottom: Jeff Greenough/Blend Images/Getty Images

Economic Importance of Service

Access the text alternative for slide images.
© McGraw Hill LLC

Services Marketing Differs from Product
Marketing
EXHIBIT 13.2 Core Differences between Services and Goods

Intangible
Services cannot be
touched, tasted, or
seen.

Requires using cues to
aid customers.
Atmosphere is important
to convey value.
Images are used to
convey benefit of value.
© McGraw Hill LLC

Because it is difficult to show a service, Amusement
park owners evoke images in their advertising of
happy families and friends enjoying a ride at one of
their parks.

Shutterstock / bom

Inseparable Production and Consumption
Production and
consumption are
simultaneous.

Little opportunity for a
consumer to test a
service before use.
Lower risk by offering
guarantees or
warranties.
© McGraw Hill LLC

Heterogeneous
The more humans are
needed to provide a
service, the more likely
there is to be
heterogeneity or
variability in the service’s
quality.
Solutions
• Technology.
• Training.
• Automation.
© McGraw Hill LLC

sonya etchison/Shutterstock

Perishable
Services are perishable
in that they cannot be
stored for use in the
future.
Ski areas, airlines,
cruise ships, movie
theaters, and
restaurants must find
ways to deal with the
challenges of
perishability.
© McGraw Hill LLC

spinout/Getty Images

PROGRESS CHECK (1 of 3)
1. What are the four marketing elements that
distinguish services from products?
2. Why can’t we separate firms into just service or
just product sellers?

Providing Great Service:
The Service Gaps Model
EXHIBIT 13.3 Service Gaps Model for Improving Retail Service Quality

Sources: Valarie Zeithaml, A. Parasuraman, and Leonard Berry, Delivering Quality Customer Service. (New York: Free Press, 1990);
Valarie Zeithaml, Leonard Berry, and A. Parasuraman, “Communication and Control Processes in the Delivery of Service Quality,”
Journal of Marketing 52, no. 2 (April 1988), 35-48.

Access the text alternative for slide images.
© McGraw Hill LLC

Knowledge Gap:
Understanding Customer Expectations

Access the text alternative for slide images.
© McGraw Hill LLC

Understanding Customer Expectations
Expectations are based
on knowledge and
experience.

Expectations vary
according to type of
service.
Expectations vary
depending on the
situation.
© McGraw Hill LLC

Nikada/Getty Images

Evaluating Service Quality Using WellEstablished Marketing Metrics
EXHIBIT 13.4 Dimensions of Service Quality

Access the text alternative for slide images.
© McGraw Hill LLC

Marketing Research:
Understanding Customers
Voice-of-customer (VOC) program: Collects
customer inputs and integrates them into
managerial decisions.
Zone of tolerance: Refers to the area between
customers’ expectations regarding their desired
service and the minimum level of acceptable
service.

Zone of Tolerance
Used to Measure How Well Firms Perform on the Five Service Quality Dimensions

Access the text alternative for slide images.
© McGraw Hill LLC

Exhibit 13.5: Customers’ Evaluation of
Service Quality for Lou’s Local Diner
EXHIBIT 13.5 Customers’ Evaluation of Service Quality

Access the text alternative for slide images.
© McGraw Hill LLC

The Standards Gap: Setting Service
Standards
Difference between the firm’s perceptions of
customer expectations and the service standards
it sets.

Need to set standards for quality.
Develop systems to ensure the standards are
met.

UpperCut Images/SuperStock

The Delivery Gap: Delivering Service Quality

Empowering Service Providers

Allowing employees to make decisions
about how service is provided to customers.

Purestock/SuperStock

Support and Incentives for Employees

Access the text alternative for slide images.
© McGraw Hill LLC

Use of Technology
EXHIBIT 13.6 How Technology Is Augmenting the Human Effort

Access the text alternative for slide images.
© McGraw Hill LLC

McGraw-Hill Global Education Holdings, LLC

Communications Gap
Difference between the Actual Service Provided and
the Service the Firm Promises
Manage customer
expectations.
Promise only what you
can deliver.
Communicate service
expectations.

Shutterstock/ALPA PROD

Service Quality, Customer Satisfaction, and
Loyalty
Good service quality leads to satisfied and loyal
customers.
Post-purchase Evaluation leads to satisfaction,
dissonance, or loyalty.

PROGRESS CHECK (2 of 3)
1. Explain the four service gaps identified by the
Service Gaps Model.
2. List at least two ways to overcome each of the
four service gaps.

Service Recovery

Listening to the Customers and Involving
Them in Service Recovery

Customers can get
emotional over a service
failure.
Often customers just
want someone to listen.

leaf/123RF

Finding a Fair Solution
Distributive fairness.
Procedural fairness.

Andriy Popov/123RF

Resolving Problems Quickly
The longer it takes to resolve service failure, the
more irritated the customer will become and the
more people the customer will tell.
It is in the firm’s best interest to solve problems
quickly.

PROGRESS CHECK (3 of 3)
1. Why is service recovery so important to
companies?
2. What can companies do to recover from a
service failure?

Because learning changes everything.

www.mheducation.com

Because learning changes everything. ®

Chapter 15
Strategic Pricing Methods
and Tactics

Learning Objectives
Learning Objective 15.1 Identify three methods that firms use to set their
prices.
Learning Objective 15.2 Describe the difference between an everyday
low pricing (EDLP) strategy and a high/low strategy.
Learning Objective 15.3 Explain the difference between a price
skimming and a market penetration pricing strategy.
Learning Objective 15.4 Identify tactics used to reduce prices to
consumers.
Learning Objective 15.5 Identify tactics used to reduce prices to
businesses.
Learning Objective 15.6 List the pricing practices that are illegal or
unethical.
© McGraw Hill LLC

Considerations for Setting Price Strategies
EXHIBIT 15.1: Pricing Strategies

Value-Based Methods
Setting prices that focus on the overall value of the
product offering as perceived by the consumer:

Improvement Value
Method

Cost of Ownership Method

These methods require a great deal of research to
be implemented successfully.

Value-Based Methods:
Improvement Value
EXHIBIT 15.2 Improvement Value

Incremental Benefits

Improved Value

Benefit Weight

Weighted Factor

Clarity

20%

0.40

Range

40%

0.20

Security

10%

0.10

Battery life

0.20

Ease of use

30%

0.10

1.00

21%

Overall

PROGRESS CHECK (1 of 3)
1. What are the three different considerations for
setting prices?
2. How can you use value-based methods for
setting prices?

Pricing Strategies

Everyday low
pricing (EDLP)

High/Low Pricing

Everyday Low Pricing (EDLP) vs.
High/Low Pricing

Create value for consumers in different ways.

EDLP reduces consumers’ search costs.

High/low provides the thrill of the chase for the lowest price.

In High/Low Pricing Consumers Use

New Product Pricing Strategies

Market Penetration Pricing

Price Skimming
Price skimming is often used for high-demand video
games like Far Cry 6 because fans will pay a higher
price to be one of the first to own the newest version.

Source: Ubisoft Entertainment

Pricing Tactics Aimed at Consumers (1 of 2)

Pricing Tactics Aimed at Consumers (2 of 2)

Leasing/Rentals

Price Bundling

Leader Pricing

Price Lining

Business Pricing Tactics and Discounts
EXHIBIT 15.3 Business-to-Business Pricing Tactics
Tactic

Description

Seasonal
discounts

An additional reduction offered as an incentive to retailers to order
merchandise in advance of the normal buying season.

Cash discounts

An additional reduction that reduces the invoice cost if the buyer pays
the invoice prior to the end of the discount period.

Allowances

Advertising or slotting allowances (additional price reductions) offered
in return for specific behaviors. Advertising allowances are offered to
retailers if they agree to feature the manufacturer’s product in their
advertising and promotional efforts. Slotting allowances are offered to
get new products into stores or to gain more or better shelf space.

Quantity discounts

Providing a reduced price according to the amount purchased

Uniform delivered
versus zone
pricing

Uniform delivered price: shipper charges one rate, no matter where
the buyer is located. Zone price: different prices depending on the
geographic delivery area.

PROGRESS CHECK (2 of 3)
1. What are some consumer-oriented pricing
tactics?
2. What are some B2B-oriented pricing tactics?

Legal and Ethical Aspects of Pricing

Deceptive or Illegal Price Advertising

Deceptive reference
prices
Loss-leader pricing

Bait and switch

©Alex Segre/Alamy Stock Photo

Predatory Pricing

Price Discrimination

Is this price discrimination illegal?

Evelyn Nicole Kirksey/McGraw-Hill

Price Fixing

Horizontal price fixing

Vertical price fixing

Gray Market Pricing
Uses irregular but not
necessarily illegal
methods.

Gray market for luxury
goods.

Stefano Rellandini/Alamy Stock Photo

PROGRESS CHECK (3 of 3)
1. What common pricing practices are considered
to be illegal or unethical?

Because learning changes everything.

www.mheducation.com

Because learning changes everything. ®

Chapter 17
Retailing and Omnichannel
Marketing

Learning Objectives
Learning Objective 17.1 Discuss the four factors manufacturers
should consider as they develop their strategies for working
with retailers.
Learning Objective 17.2 Outline the considerations associated with
choosing retail partners.
Learning Objective 17.3 List the three levels of distribution intensity.
Learning Objective 17.4 Describe the various types of retailers.
Learning Objective 17.5 Describe the components of a retail strategy.
Learning Objective 17.6 Identify the benefits and challenges of
omnichannel retailing.

What is Retailing?
The set of business
activities that add value
to products and services
sold to consumers for
their personal or family
use.

Estée Lauder’s
subsidiary brand M·A·C
is introducing a new line
of mascara.
© McGraw Hill LLC

Ingram Publishing

Exhibit 17.1: Factors for Establishing a
Relationship with Retailers

Access the text alternative for slide images.
© McGraw Hill LLC

Choosing Retailing Partners
Channel Structure.
Customer Expectations.

Channel Member
Characteristics.
Distribution Intensity.
Most manufacturers like Coach use retailers
such as Macy’s.

Shutterstock/Creative Lab

Channel Structure
Degree of vertical
integration.
Strength of
manufacturers’ brand.
Relative power of
manufacturer and
retailer.

Because M·A·C is made by Estée
Lauder, when the new mascara is
introduced, the stores receive the new
line automatically.

Getty Images/iStockphoto

Exhibit 17.2: Coach and Cole Haan Distribution

Access the text alternative for slide images.
© McGraw Hill LLC

Channel Member Characteristics
Larger firms:
• Can gain more
control, be more
efficient, and save
money.
• Because Walmart is
the world’s largest
grocer, it buys direct
from the
manufacturer.
© McGraw Hill LLC

Distribution Intensity
Intensive: outs products in
as many places as
possible.

Selective: relies on a few
selected retail customers
in a territory.
Exclusive: grants
exclusive geographic
territories.
© McGraw Hill LLC

Sheila Fitzgerald/Shutterstock

PROGRESS CHECK (1 of 3)
1. What issues should manufacturers consider
when choosing retail partners?
2. What are the differences among intensive,
exclusive, and selective levels of distribution
intensity?

Exhibit 17.3 Types of Retailers

Access the text alternative for slide images.
© McGraw Hill LLC

Food Retailers
Online
Grocery
Retailers

Warehouse
Clubs

Convenience
Stores

Limited
nonfood

Supermarket
combined with
a full-line
discount store

Limited
assortment
and little
service, low
prices

Customers
Limited
willing to pay
variety
more to order
Speedy check online and
out
have groceries
delivered

Differentiated
by number of
SKUs

Walmart,
Meijer,
K-Mart, Target

Costco,
Sams, BJ’s

Good
locations

Supermarkets

Supercenters

Instacart,
Amazon Prime
Fresh

Online Grocery Retailers
The set of retailers
providing online
capabilities continues to
expand.
Companies seek to add
value to the grocery
channel by providing
delivery.

Shutterstock/RossHelen

General Merchandise Retailers
Department Stores

Broad variety and deep assortment

Full-line Discount

Broad variety at low prices

Specialty

Limited merchandise with service in small store

Drugstores

Specialty for pharmaceutical and health

Category Specialists
Extreme-value
Off-price

Big-box or category killers with narrow but deep
assortment
Full line, limited, very low prices
Inconsistent assortment of brand-name
merchandise at low prices

Services Retailers

Firms that primarily sell services rather than
merchandise are a large and growing part of
the retail industry.

PROGRESS CHECK (2 of 3)
1. What strategies distinguish the different types of
food retailers?
2. What strategies distinguish the different types of
general merchandise retailers?
3. Are organizations that provide services to
consumers retailers?

Developing a Retail Strategy
Using the Six Ps: Product
Providing the right mix
of merchandise and
services that satisfies
the needs of the target
market.
Private-label or store
brands help retailers
distinguish themselves
from competition.

Target has about one dozen private-label lines in
its stores.

Jonathan Weiss/Shutterstock

Developing a Retail Strategy
Using the Six Ps: Price

Shutterstock / Pearl Winchester

Developing a Retail Strategy
Using the Six Ps: Promotion

Retailers use a wide variety
of promotions, both within
their retail environment and
through mass and social
media.

kaisorn/Getty Images

Developing a Retail Strategy
Using the Six Ps: Place
Convenient location is a
key ingredient to
success.

Many customers choose
stores on the basis of
where they are located.
Great locations can
create a competitive
advantage.
© McGraw Hill LLC

Shutterstock/Lester Balajadia

Developing a Retail Strategy Using Two
Additional Ps: Presentation and Personnel
Presentation: Lighting, color, and music are used
to highlight merchandise and create a mood that will
attract the store’s target markets.
Personnel: Well-trained sales personnel can
influence the sale at the point of purchase.

Benefits of the Internet and Omni channel
Retailing
• Deeper and broader selection.

• Personalization.
• Expanded market presence.

• Integrated CRM.
• Brand Image.
• Pricing.
• Supply Chain.

PROGRESS CHECK (3 of 3)
1. What are the components of a retail strategy?
2. What are the advantages of traditional stores
versus Internet-only stores?

3. What challenges do retailers face when
marketing their products through multiple
channels?

Because learning changes everything.

www.mheducation.com

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

Department of Business Administration

College of Administrative and Financial Sciences

Assignment 3
Due Date: 26th April 2025 @ 23:59
Course Name: Marketing Management

Student’s Name:

Course Code: MGT 201

Student’s ID Number:

Semester: 2nd

CRN:
Academic Year: 2024-25

For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/Out of 10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•

The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented; marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Learning Outcomes:
1. Recognize an understanding of the overall marketing concepts, goals and strategies within the context of
organizations goals and strategies. CLO-1
2. Demonstrate the ability to formulate marketing strategies that incorporate psychological and sociological
factors which influence consumer’s decision. CLO-03
3. Develop critical and analytical thinking necessary to overcome challenges and issues of marketing in the
changing global environment. CLO-04

Assignment Question(s):

Part-A:

Case Study

(6 Marks)

Read the Chapter Case Study “Understanding Grubhub’s Service Quality” from Chapter No- 13
“Overview of Marketing” Page: – 442 and 443 given in your textbook/E-book – “Marketing” (8th ed.) by
Dhruv. Grewal and Michael Levy (2022) and answer the following Questions:
1. Discuss which service gaps is GrubHub currently addressing?
2. Evaluate how GrubHub meets customer expectations using the five service quality dimensions.
3. Assess how GrubHub is set up to recover from service failures.

Part-B:

Critical thinking

(4 Marks)

1. Imagine you are the product manager for Neutrogena’s sun protection product line and your team
developed a new type of sunscreen. Which kind of B2B pricing tactics would you use to promote
it? Why? Ch-15 (2 Marks)
2. Assume you have been given some money but told that it must be invested in a retailer’s stock. In
which specific type of retailer would you choose to invest? Why? Ch-17 (2 Marks)
Important Note:
1. Answers must be submitted without plagiarism. If more than 20% it will be marked zero.
2. Support your answers with references.
3. Minimum word limit is 150 words for each Answer.

Answers
Case Study
1. Answer Q12. Answer Q23. Answer Q3-

Critical thinking
4. Answer Q15. Answer Q2-

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Saudi Electronic University Homework Help

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