Australian National University · S2 2026 · FACULTY OF MARKETING

MKTG2023 Services Marketing

- one subject, every graph, every model, every mark
12 Chapters54-page Bible
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The Complete Study & Assessment Guide · S2 2026

MKTG2023 Overview

Services Marketing
— From the rental view of services to a recommendation you can defend in person.
  • Level 2 undergraduate course
  • Semester 2, 2026
  • Research School of Management
  • Flipped lectures, in-person seminars
  • Six assessment tasks

What the course is about

Services Marketing at the Australian National University asks how value is designed, delivered and judged when the product is a performance rather than a thing.

  • Assessed by Three reading critiques, an AI-augmented service audit, a group blueprint lab, a consulting capstone, a peer review and a community improvement sprint with an individual oral defence.
  • Hardest step Moving from summary to judgement: the convener asks critiques to spend most of their words evaluating, not retelling, the article.
  • How to prepare Watch the lecture and do the readings before each seminar, keep the workshop templates for the group tasks, and log every AI prompt verbatim as you go.
Why read this guide

What you get in the full MKTG2023 Study & Assessment Guide

  1. 12 chapters, 54 pages — every assessed topic, week by week
  2. 31 original practice questions, most with model answers
  3. 12 worked examples, solved the way MKTG2023 marks
  4. 18 computed figures, redrawn from the course’s own numbers
  5. Before-you-submit checklist for the Evidence-Based reading critiques (20%) — what markers reward, what costs marks

Free on this page: assessment table, chapter map, one worked example, key terms, FAQ. The rest is in the full study & assessment guide.

MKTG2023 · Australian National University
An independent, AskSia-authored study guide. AskSia is not affiliated with, endorsed by, or sponsored by Australian National University; the course code and name are used for identification only.
Assessment

How MKTG2023 is assessed

ComponentWeightFormat
Evidence-Based reading critiques20%Task 1; Individual; three 500-word critiques of assigned journal articles, Weeks 3, 5 and 8, via Turnitin; AI rated Green
AI-augmented service audit20%Task 2; Individual; report of up to 1,500 words on at least 200 customer reviews, Friday of Week 7, via Turnitin; AI rated Green
Service Blueprint + Servicescape Lab15%Task 3; Group of 4; 10-minute narrated recording plus handout after a two-hour field observation, Friday of Week 10, via Canvas
Simulated Consulting Capstone20%Task 4; Pair or team of up to 4; 15% for a 3,000-word report and 5% for a 500-word individual reflective post-review, Friday of Week 12, via Turnitin
Peer Review Assessment5%Task 5; Individual; linked to Task 4, 22:00 Friday of Week 12, via Canvas
Community Service - Improvement Sprint - Group Presentation & Oral Defence20%Task 6; 10% group presentation and 10% individual oral defence, Week 13 or 14; the defence is rated Red for AI

All six weights come from the assessment summary in the Semester 2, 2026 Class Summary and total 100%. Task 4 splits 15% for the report and 5% for the reflective post-review, and Task 6 splits 10% for the group presentation and 10% for the individual oral defence. The course has no final examination. For the Task 1 critiques, the Class Summary gives 23:59 on Wednesdays, Canvas announcements gave 23:00 for the first two, and the instruction sheet gave 10:00 am on Tuesdays, so the Canvas assignment page is the one to follow. Rubrics are released on Canvas at least two weeks before each due date.

Assessment structure

20%20%15%20%Peer 5%20%CritiquesAuditLabCapstoneSprint and defence
Other students are asking · MKTG2023

What other students are asking about MKTG2023

Where can I find lecture notes or study guides for MKTG2023 at ANU?
The MKTG2023 study guide in AskSia Library covers Services Marketing in 12 chapters, with the assessment table, a chapter-by-chapter topic map, key terms and a worked example, free to read on this page.
Is there a final exam in MKTG2023?
No final exam is listed in the offering this AskSia Library guide is built from; MKTG2023 is assessed by Evidence-Based reading critiques 20%, AI-augmented service audit 20%, Service Blueprint + Servicescape Lab 15%, Simulated Consulting Capstone 20%, Peer Review Assessment 5%, Community Service - Improvement Sprint - Group.
What does MKTG2023 cover on productisation and service-dominant logic?
In AskSia Library's MKTG2023 guide, the Productisation and Service-Dominant Logic chapter explains the productisation continuum, goods-dominant versus service-dominant logic, the foundational premises, institutions and service ecosystems.
What does MKTG2023 cover on service consumers and the customer journey?
In AskSia Library's MKTG2023 guide, the Service Consumers and the Customer Journey chapter explains prepurchase risk, search, experience and credence attributes, moments of truth, satisfaction and quality, and journey touchpoints.
What does MKTG2023 cover on positioning services and value propositions?
In AskSia Library's MKTG2023 guide, the Positioning Services and Value Propositions chapter explains the 3 Cs, segmentation and focus strategies, positioning maps on determinant attributes, value propositions and two-sided platforms.
Weights, dates and every chapter are set out with their sources further down this page.
Current dates · verify in LMS

Current MKTG2023 dates

DateItemControl
30 October 2026, 22:00Task 5 Peer Review AssessmentIndividual peer review linked to the capstone, submitted through Canvas.
30 October 2026, 23:59Task 4 Simulated Consulting CapstoneReport and reflective post-reviews through Turnitin, with the consolidated AI disclosure and statement of contribution.
Weeks 13 and 14Task 6 presentation and oral defenceTen-minute group talk, then two to three minutes of individual questions for each member.
13 November 2026Tasks 4 and 5 returnedReturn of assessment date in the Class Summary.
9 December 2026Task 6 returnedReturn of assessment date in the Class Summary.

Dates are as published in the assessment summary and task descriptions in the Semester 2, 2026 Class Summary. Confirm exact deadlines and submission settings in the live LMS.

Contents · every chapter, one map

What MKTG2023 covers

Ten chapters follow the first six weeks of teaching, from services and service-dominant logic to frontline technology, and two more cover the reading critiques and the group projects.

01

Services, IHIP and the Extended Marketing Mix

Rental instead of ownership, the four processing categories, the IHIP characteristics, the 7 Ps and the flower of service

A service is rented, not owned

The first week of MKTG2023 starts by asking what customers actually pay for when they buy a service.

  • Services in the economy and servitisation
  • The non-ownership definition of a service
  • People, possession, mental stimulus and information processing
  • Intangibility, heterogeneity, inseparability and perishability
  • Marketing implications of the IHIP characteristics
  • The extended marketing mix and the service-profit chain
In the full guide: 3 pages · 2 practice questions · 1 figure
02

Productisation and Service-Dominant Logic

The productisation continuum, goods-dominant versus service-dominant logic, the foundational premises, institutions and service ecosystems

Making a service behave like a product

Productisation packages a service with a clear scope, a standard process and a defined price and set of deliverables. Fixed-fee legal packages and tiered software plans are typical.

  • Productisation and its five benefits
  • The productisation continuum and servitisation
  • Goods-dominant versus service-dominant logic
  • Foundational premises FP1 to FP10
  • FP11: institutions and institutional arrangements
  • Service ecosystems and the actor-to-actor view
In the full guide: 4 pages · 2 practice questions · 1 figure
03

Service Consumers and the Customer Journey

Prepurchase risk, search, experience and credence attributes, moments of truth, satisfaction and quality, and journey touchpoints

Three stages of one purchase

Week 2 organises service consumer behaviour into prepurchase, the service encounter and post-encounter.

  • Need arousal and the six perceived risks
  • Search, experience and credence attributes
  • Evoked, consideration and inept sets
  • The servuction system and service as theatre
  • Expectancy-disconfirmation and SERVQUAL
  • Customer experience and the four touchpoint types
In the full guide: 4 pages · 2 practice questions · 1 figure
04

Positioning Services and Value Propositions

The 3 Cs, segmentation and focus strategies, positioning maps on determinant attributes, value propositions and two-sided platforms

From analysis to a place in the customer’s mind

Positioning creates a distinctive place for a service relative to competitors, and it must be meaningful to the target, defensible against rivals and based on real differences in delivery.

  • The 3 Cs and the STP sequence
  • Service-relevant segmentation bases
  • Fully focused, market focused, service focused and unfocused
  • Important versus determinant attributes
  • Building and reading a positioning map
  • Value propositions and two-sided platform positioning
In the full guide: 4 pages · 2 practice questions · 1 figure
05

Service Products, Brands and New Service Development

Core and supplementary services, brand architecture, tiering, the brand equity chain and the stages of new service development

The product is a core plus petals

Week 3 defines a service product as a core benefit bundled with supplementary elements and delivered through processes in real time.

  • Core product, supplementary services and delivery processes
  • The eight petals of the flower of service
  • Four brand architecture strategies
  • Tiering service products
  • The service brand equity chain
  • The five stages of new service development
In the full guide: 3 pages · 2 practice questions · 1 figure
06

AI Personalisation and Service Script Prompts

Mechanical, thinking and feeling AI, personalisation versus relationalisation, the eight-element service-script prompt and Australian AI governance

Three intelligences, three benefits

Huang and Rust order AI by difficulty.

  • Mechanical, thinking and feeling AI
  • Standardisation, personalisation and relationalisation
  • The research, strategy and action cycle
  • Matching AI to the petals of the flower
  • The eight-element service-script prompt
  • The National AI Plan and AI Ethics Principles
In the full guide: 4 pages · 2 practice questions · 2 figures
07

Distribution Channels and International Entry

Information, negotiation and product flows, physical and electronic channels, franchising and international entry modes

Where and when are part of what is sold

A service that is hard to reach has little value however good it is.

  • Information, negotiation and product flows
  • Customer visits, provider visits or remote delivery
  • Decisions about place and time
  • Physical versus electronic channels
  • Intermediaries and franchising
  • Drivers of globalisation and the five entry modes
In the full guide: 3 pages · 2 practice questions · 1 figure
08

Platforms and the Sharing Economy

The defining characteristics, prosumers, distribution without ownership, reputation systems, quality, trust and regulation

Access instead of ownership

Eckhardt and colleagues define the sharing economy as a scalable system in which technology-enabled platforms let users reach physical or intangible resources for a limited time, often supplied by a crowd.

  • Defining the sharing economy
  • The five defining characteristics
  • Typical but not defining traits
  • Prosumers and crowdsourced capacity
  • Traditional channels versus platform channels
  • Quality, trust, leakage and regulation
In the full guide: 4 pages · 2 practice questions · 1 figure
09

Service Pricing and Revenue Management

The pricing tripod, contribution and break-even, customer net value, RevPAST, rate fences, price fairness and cost-effective service excellence

Price has three jobs

Week 5 treats price as a revenue engine, a signal of quality when outcomes are hard to judge, and a lever that shifts demand across times and segments.

  • Pricing objectives and the pricing tripod
  • Fixed, variable and semi-variable costs
  • Contribution and break-even volume
  • Customer net value and nonmonetary costs
  • Revenue management, elasticity and RevPAST
  • Rate fences, fairness and cost-effective service excellence
In the full guide: 4 pages · 2 practice questions · 2 figures
10

Communications and Frontline Service Technology

The 5 Ws, intangibility and message strategy, three sources of messages, frontline technology archetypes and frontline triage

Why service messages are harder

Service communication has six jobs: informing, persuading, educating, lowering risk, coordinating and recovering.

  • The six jobs of service communications
  • The 5 Ws planning frame and the funnel
  • Four intangibility challenges and message strategies
  • Three sources of service messages
  • Frontline service technology archetypes A to H
  • Frontline triage, word of mouth and integration
In the full guide: 5 pages · 2 practice questions · 2 figures
11

Writing the Evidence-Based Reading Critiques

Summarise, appraise and evaluate, the word budget, Australian generalisability and the convener feedback on the first critique

What Task 1 asks

Task 1 is three individual 500-word critiques, worth 20% together, of assigned articles from four service journals.

  • Summarise, appraise and evaluate
  • What counts as theory and as methodology
  • Generalisability to Australian service contexts
  • The 500-word budget
  • Disclosure and the prompts log
  • Convener feedback on the first critique
In the full guide: 3 pages · 2 practice questions · 1 figure
12

The Service Audit, Blueprint Lab and Capstone

The AI-augmented audit, the blueprint and servicescape lab, the consulting capstone, the peer review and the improvement sprint

The audit and the lab

Task 2, the AI-augmented service audit, is an individual report of up to 1,500 words built on at least 200 customer reviews of a publicly reviewed brand, analysed for sentiment and topics, benchmarked against your own reading and turned into improvements supported by at least five peer-reviewed sources.

  • The AI-augmented service audit
  • Benchmarking AI insights against your own reading
  • Blueprint, servicescape and fail-points
  • The consulting capstone and client meetings
  • Peer review and statements of contribution
  • The improvement sprint and the oral defence
In the full guide: 3 pages · 2 practice questions · 1 figure

The course description says it builds your ability to design, run, judge and improve services in an economy where AI, data and platforms increasingly sit between firms and customers.

It starts from the idea that buying a service is renting access to skills, space or systems, then works through the IHIP characteristics, the extended marketing mix and Vargo and Lusch’s service-dominant logic, in which value is co-created in use.

How the weeks build

Week 2 follows the customer from prepurchase through the encounter to post-encounter evaluation and the wider customer journey, then turns to segmentation, focus, positioning maps and value propositions.

Week 3 covers service products, brands and new service development, then AI personalisation and the design of service-script prompts under Australia’s AI ethics principles. Week 4 covers distribution through physical, digital and platform channels and the sharing economy, Week 5 pricing and revenue management, and Week 6 communications and frontline service technology.

Later weeks cover servicescape, service processes, people, relationships, recovery and service excellence.

How it is taught and assessed

Lectures are pre-recorded and seminars run as interactive, Socratic problem-solving sessions, with AI treated as both a tool and something to interrogate. There is no final examination.

Assessment is six tasks: three evidence-based reading critiques, an AI-augmented service audit, a group blueprint and servicescape lab, a simulated consulting capstone, a peer review, and a community improvement sprint presented by the group and defended by each member in person. Every task carries a Green, Amber or Red rating for generative AI, and disclosure is compulsory wherever AI is allowed.

Worked example · free

Compare utilisation and RevPAST for two clinic pricing options

Q [5 marks]. AskSia-authored practice. A clinic has ten appointment slots in a day. Option A sells all ten at $60. Option B charges $90 for five after-work slots and $70 for three daytime slots, leaving two empty. Which option earns more from the day’s capacity, and why is utilisation the wrong yardstick here? The marks shown are an AskSia study allocation, not an official University marking scheme.
Utilisation against RevPAST for an invented ten-slot clinic day.Utilisation against RevPAST for an invented ten-slot clinic day. Option A sells all ten slots at $60, Option B sells five at $90 and three at $70; B is less full at 80% yet earns $66 per available slot against $60, which is why capacity is judged by revenue, not fullness.100%80%$60$66UtilisationRevPAST per slotABAB
Utilisation against RevPAST for an invented ten-slot clinic day. Option A sells all ten slots at $60, Option B sells five at $90 and three at $70; B is less full at 80% yet earns $66 per available slot against $60, which is why capacity is judged by revenue, not fullness.
  • 1Option A revenue: 10 × $60 = $600, with utilisation of 10 ÷ 10 = 100%.
  • 1Option B revenue: 5 × $90 + 3 × $70 = $450 + $210 = $660, with utilisation of 8 ÷ 10 = 80%.
  • 1RevPAST divides revenue by the slots available, not the slots sold: A earns $600 ÷ 10 = $60 and B earns $660 ÷ 10 = $66 per available slot.
  • 1Option B earns $6 more per available slot despite lower utilisation, because the after-work segment accepts a higher, fenced rate.
  • 1Check fairness before recommending B: the price difference must be shown before booking and tied to a real trade-off, here the time of day.
Option B earns more: $660 against $600, which is $66 against $60 per available slot, even though it fills only 80% of capacity. Revenue management judges capacity by revenue per available space and time unit, not by how full the day looks.
Sia tip — Divide by available slots, never by sold slots; a figure computed on sold slots is just an average price and hides the empty capacity.
Glossary

Key terms

IHIP Characteristics
Intangibility, heterogeneity, inseparability and perishability, the four features most often used to explain why services are harder to market than goods.
Non-Ownership View
Definition of a service as rental: the customer buys temporary access to labour, skills, space, objects or systems rather than taking ownership of anything.
Service-Dominant Logic
Vargo and Lusch’s view that all exchange is service exchange and that value is co-created by the beneficiary in use, coordinated through institutions.
Productisation
Systematic packaging of a service with a defined scope, standard process, fixed price and stated deliverables so that it behaves more like a product.
Operant Resources
Knowledge and skills that act on other resources; service-dominant logic treats them as the fundamental source of strategic benefit.
Credence Attributes
Qualities of a service that customers find hard to judge even after consumption, such as the soundness of legal advice or surgery.
Determinant Attributes
Attributes on which customers see real differences between competitors and which therefore decide the purchase, unlike merely important ones.
Positioning Map
Chart that plots competing services on two determinant attributes to show crowded positions, direct rivals and unoccupied white space.
Flower of Service
Model of a service product as a core benefit surrounded by four facilitating and four enhancing supplementary services.
Relationalisation
Personalising the relationship rather than the output, responding to emotion and building rapport over time; Huang and Rust link it to feeling AI.
Sharing Economy
Scalable system in which technology-enabled platforms give users temporary access to resources, often crowdsourced from many independent providers.
Rate Fence
Rule or physical difference, such as advance purchase or seat class, that lets customers self-select into different prices for the same capacity.
RevPAST
Revenue earned for each unit of space and time on offer, the revenue management measure that judges capacity by money earned rather than by fullness.
Frontline Service Technology
Hardware, software, information or networks that support value co-creation between provider and customer at the frontline, either augmenting or substituting people.
FAQ

MKTG2023 FAQ

How is the grade made up in this services marketing course?

Six tasks make up the mark: three evidence-based reading critiques worth 20%, an individual AI-augmented service audit worth 20%, a group blueprint and servicescape lab worth 15%, a consulting capstone worth 20%, a peer review worth 5% and a community improvement sprint worth 20%, split between a group presentation and an individual oral defence.

Does the course have a final examination?

No. The Class Summary rules out a final examination for this course. Instead, the group presentation and the individual oral defence for the improvement sprint take place in Weeks 13 and 14, with slots booked through the course, so the last assessed moment is a live conversation rather than a written paper.

Can I use ChatGPT or other generative AI on the assignments?

Yes for most tasks, under rules. Every task carries a traffic-light rating. The critiques, audit, blueprint lab, capstone and sprint presentation are Green, which permits AI but requires the RSM disclosure statement and a log of your actual prompts. The live oral defence is Red, meaning no AI at all at that point.

What does a strong reading critique look like?

It spends its 500 words judging, not retelling. The instruction sheet asks you to summarise the theoretical contribution, appraise the methodology and evaluate whether the findings would hold in Australian services, and the convener later asked for roughly three quarters evaluation, page-cited claims and an Australian primary source behind any local argument.

How do the group tasks and contribution statements work?

Groups of four were formed before the mid-semester break and carry through the group work. The blueprint lab and the sprint use the same group, while the capstone can be a pair or a team of up to four. Each group submission includes a statement of contribution agreed and signed by every member.

How is the oral defence in Task 6 marked?

Straight after the ten-minute group presentation, each member answers two to three minutes of viva-style questions from the convener. That half of the task is worth 10%, it is recorded, and the mark rests solely on your own answers, which removes any benefit from a teammate’s work. Prepare to explain parts of the project you did not lead.

Which textbook is prescribed, and where do I get it?

The prescribed text is Services Marketing: People, Technology, Strategy by Jochen Wirtz and Christopher Lovelock, ninth edition. The Class Summary says an online copy is available through the ANU library, and each week also sets a journal article, from Vargo and Lusch on service-dominant logic to De Keyser and colleagues on frontline technology.

Chapter questions

Questions students ask in each MKTG2023 chapter

What does it mean that a service is a form of rental?
It means the customer pays for temporary access rather than ownership. You hire people’s labour and expertise, use a physical object or space, or reach shared facilities and networks for a time. Because nothing changes hands, what you judge is the performance itself, which is why services are described as performances rather than things. Chapter 01 · Services, IHIP and the Extended Marketing Mix
Is productisation the same thing as servitisation?
No. Productisation moves a service toward a standardised, packaged offer, such as a fixed-fee audit. Servitisation goes the other way: a goods firm wraps its product in ongoing service, such as engine maintenance sold by the hour. The lecture treats them as two sides of the same convergence between goods and services. Chapter 02 · Productisation and Service-Dominant Logic
Why do service customers rely so much on reviews and word of mouth?
Because many service qualities cannot be inspected before purchase. Experience attributes are only known during or after use, and credence attributes may never be judged with confidence, so customers reduce perceived risk by borrowing other people’s experience. The more credence a service carries, the heavier that reliance becomes. Chapter 03 · Service Consumers and the Customer Journey
What is the difference between important and determinant attributes?
Important attributes matter to customers but may not separate the options, because every provider offers them. Determinant attributes are those on which customers see real differences and which decide the purchase. Segmentation and positioning maps should use determinant attributes; the workshop handout calls confusing the two the most common error. Chapter 04 · Positioning Services and Value Propositions
What is the difference between facilitating and enhancing petals?
Facilitating petals, information, order-taking, billing and payment, are needed for the core service to be delivered at all. Enhancing petals, consultation, hospitality, safekeeping and exceptions, add value and appeal. Both matter, because the lecture stresses that a wilted or missing petal damages how customers see the whole flower. Chapter 05 · Service Products, Brands and New Service Development
Which AI intelligence suits the hospitality petal?
Feeling AI, or a person. Hospitality is an emotional petal, and the lecture warns that current tools only imitate empathy by running thinking AI on emotional data. Customers pull back once a bot seems to lack empathy, so the course recommends humans or feeling-augmented tools for high-emotion, high-lifetime-value moments. Chapter 06 · AI Personalisation and Service Script Prompts
What are the three ways services reach customers?
The customer can visit the service site, as with clinics and restaurants, where location and hours matter most. The provider can come to the customer, as with plumbing or home care, which costs more. Or the transaction can be remote, through mail, phone or mostly the internet, when nothing tangible needs to move. Chapter 07 · Distribution Channels and International Entry
Is every company with customer ratings part of the sharing economy?
No. Reputation systems are typical of sharing-economy firms but do not define them, and the lecture’s example is an online auction marketplace that uses ratings yet is not part of the sharing economy. Classification depends on the five defining characteristics, tested one at a time. Chapter 08 · Platforms and the Sharing Economy
How do you calculate break-even volume for a service?
Work out contribution per unit, which is price minus variable cost, then divide fixed plus semi-variable costs by that contribution. The lecture’s example divides $2 million of annual costs by a $100 contribution per room-night to give 20,000 room-nights. Any discount lowers contribution and pushes break-even volume up. Chapter 09 · Service Pricing and Revenue Management
Why is communicating a service harder than communicating a product?
You cannot photograph a promise. Services are intangible, customers co-produce them, their attributes are hard to judge before purchase, capacity cannot be stored, and the frontline employee is part of the product. Each feature needs a response, from tangible cues and testimonials to education and messages that shift demand across time. Chapter 10 · Communications and Frontline Service Technology
How should a 500-word critique be divided?
The instruction sheet suggests about 120 to 150 words on the theoretical contribution, 150 to 180 on methodology, 150 to 180 on generalisability to Australian contexts, and 20 to 40 words for a concluding judgement. The convener later asked that no more than 20 to 25% of the words be summary. Chapter 11 · Writing the Evidence-Based Reading Critiques
What does benchmarking AI insights against human interpretation mean in Task 2?
It means comparing what your sentiment and topic analysis tool reports with what you conclude from reading the reviews yourself, and explaining where they agree and differ. The task rates AI Green because it is the analytical engine, but the prompts log must show iterative refinement and checks for accuracy, bias and hallucination. Chapter 12 · The Service Audit, Blueprint Lab and Capstone
Study strategy

How to prepare for the assessments

Treat each week as a loop: watch the pre-recorded lecture, read the chapter and the article, then use the seminar to apply them, because the seminar activities assume you have done all three. After each seminar, write one paragraph naming the framework you used, the case facts it explained and the judgement it led to; that paragraph is the raw material for every written task.

For the critiques, read your assigned article yourself first, note its claims, method and limits, and only then draft, keeping summary to a quarter of the words. For the group tasks, keep the Week 4 workshop templates, observe your provider for the full two hours, and tie each fail-point to a theory.

Keep a running prompts log from the first time you use AI, with the prompts copied exactly, because reconstructing it later is what the convener flagged. Before the oral defence, make sure you can explain every part of the group project in your own words.

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