Marketing of Services-2


SKU: AMSEQ-178 Category:

Assignment – A

Question 1. Define ‘Services’. Distinguish between services with goods/products. What are the different challenges for services marketing? Discuss briefly the characteristics of Services.

Question 2. What do you mean by marketing-mix in terms of services? Explain the marketing-mix elements in Services Marketing with suitable examples.

Question 3. How can service quality be used in a manufacturing context for competitive advantage? Think of your answer in the context of automobiles or computers or some other manufactured product you have actually purchased.

Question 4. What is the difference between desired service and adequate service? Why would a services marketer need to understand both types of service expectations?

Question 5. Write short notes on any three of the following:
(a) Intangibility.
(b) Service Delivery System.
(c) Perceived Service Quality.
(d) Relationship Marketing.
(e) Process of service recovery.

Assignment – B

Question 1. Define service culture. Why is service culture so important? Can a manufacturing firm have a service culture? Why or why not?

Question 2. a) In what specific ways does the distribution of services differ from the distribution of goods? What are the main differences between agents and brokers? Explain with suitable examples.
b) Which form of internal marketing communication – vertical or horizontal would you invest in if you had to select between them as an organization’s CEO? Why? Justify your answer with suitable examples.

Question 3. Describe the non-monetary costs involved in the following services:
(a) Getting an automobile loan
(b) Belonging to a health club
(c) Having allergies diagnosed and treated
(d) Attending an executive education class

Case Study

World Gym

World Gym began operations in 1995 in a large city. The company’s objective was to meet the fitness needs of a diverse clientele, from the professional body builder to the overweight person, World Gym’s principal plan was to have a fitness facility that targeted the common person – a fitness facility that was not on the high end or the low end, but in the middle price range. At the beginning, it planned to challenge the price of the top-of-the-line facilities. It offered its services in a big spacious centre in a high-traffic area, a part of the city that was becoming gentrified. There was little competition in the area. The establishment’s large space, with natural light coming in, set it apart from competitors.

The company expected its members to come join other clubs and facilities not only in the immediate neighborhoods. But all around the city, it saw its trade area as the neighborhoods within an 8-10 minute drive.

The company decided to begin by marketing its product to people who were already working out but wanted something unique. When the company opened its fitness facility, consumers readily accepted it. World Gym membership far exceeded expectations. It now has 3,000 members. As many as 2,000 people come on a given day.

For years World Gym had few serious competitors. In the city, permits are required to open a gym and thus are an obstacle to potential competitors. And the cost of opening a 35,000-square-foot facility is an additional barrier to entry,

(a) Was World Gym’s pricing plan appropriate in a market where there was a relatively low supply of services?
(b) Over time World Gym’s membership exceeded expectations. Demand was strong and constant. What impact might this situation have on the company’s pricing strategy? Also, which might impact this situation on the company’s product strategy?
(c) Suppose the company learns that two new competitors plan to open fitness facilities within a mile of World Gym. How might the increased supply of services effect World Gym’s pricing policy?

Assignment – C

1. Services are primarily–
(a) Tangibles.
(b) Intangibles.
(c) Category of products.
(d) None of these.

2. From the Indian point of view _____% of GDP is from the service sector:
(a) 50%
(b) 61%
(c) 71%
(d) 41%

3. Intangibility, Inseparability, Perishability, Heterogeneity and Ownership are the–
(a) Characteristics of services.
(b) Characteristics of products.
(c) Characteristics of the markets.
(d) Characteristics of the consumers.

4. Three additional elements in the services marketing-mix are–
(a) Promotion, Place and People.
(b) People, Process and Physical Evidence.
(c) Price, Promotion and Physical Evidence.
(d) None of the above.

5. For price determination of services, _______ factor plays a key role.
(a) Inseparability factor.
(b) Tangibility factor.
(c) Perishability factor.
(d) None of these.

6. In services __________ factors relate to the competition and its depth etc.:
(a) Extrinsic factors.
(b) Intrinsic factors.
(c) Common factors.
(d) None of the above.

7. __________ factors are attributes specific to the service –
(a) Intrinsic factors.
(b) Extrinsic factors.
(c) Common factors.
(d) None of the above.

8. The unpaid form of advertising which is derived by getting coverage as news or an editorial item is called–
(a) Advertising.
(b) Publicity.
(c) Sales promotion.
(d) Personal selling.

9. In services ________ kinds of physical evidences are there.
(a) Three
(b) Two
(c) Four
(d) Five

10. The facade and exteriors, logo are the essential components of _____________ evidence.
(a) Peripheral evidence.
(b) Essential evidence.
(c) Normal evidence.
(d) None of the above.

11. Service personnel are parts of–
(a) People.
(b) Process.
(c) Physical evidence.
(d) Product.

12. ________________ is capable of creating situations like, natural disasters, to which service firms must respond.
(a) Technological environment.
(b) Natural environment.
(c) Physical environment.
(d) None of the above.

13. ____________ is external to the marketing organization but is related to its marketing efforts.
(a) Micro environment.
(b) Macro environment.
(c) Physical environment.
(d) None of these.

14. STP stands for–
(a) Segmenting, Targeting and Profits.
(b) Segmenting, Targeting and Positioning.
(c) Sales, Targeting and Positioning.
(d) None of the above.

15. Perceived Service Quality is–
(a) A customer’s judgment.
(b) An organization’s judgment.
(c) A market judgment.
(d) None of the above.

16. Quality of the service has _______ different components.
(a) Three
(b) Four
(c) Two
(d) None

17. _______gap represents the difference between the actual task completed and the customer’s perception of the service.
(a) First
(b) Second
(c) Fifth
(d) Fourth

18. In gap 4, the service delivery does not match up to the service provider’s ____________.
(a) Internal communication.
(b) External communication.
(c) Understanding.
(d) None of these.

19. Desired and Adequate services are–
(a) Customer expectations.
(b) Organization expectations.
(c) Competitor’s expectations.
(d) None of the above.

20. __________ is the level of service the customer will accept.
(a) Derived service
(b) Adequate service
(c) Common service
(d) None of these

21. The extent to which customers are willing to accept variation in service performance is called–
(a) Desired service
(b) Adequate service
(c) Zone of tolerance
(d) None of the above

22. ________________ intensifiers are temporary individual factors that make a customer aware of the need of the service.
(a) Transitory service.
(b) Perceived service.
(c) Total service.
(d) None of the above.

23. ______________ is the level of service the customers believe they would get.
(a) Transitory service.
(b) Perceived service.
(c) Total service.
(d) None of the above.

24. Personal and non-personal statements made by people other than those with the service provider to the customers about the quality of service are called–
(a) Word of mouth communication.
(b) Explicit service promise.
(c) Implicit service promise.
(d) None of these.

25. There are ________factors that influence customer perception.
(a) Three.
(b) Four.
(c) Two.
(d) Five.

26. _________ is also called moments of truth.
(a) Service Encounters
(b) Image
(c) Evidence of service
(d) Price

27. There are __________ common themes of customer satisfaction/dissatisfaction.
(a) Three.
(b) Four.
(c) Two.
(d) None.

28. _______ is the response of employee to problem customers or uncooperative customers.
(a) Coping.
(b) Spontaneity.
(c) Adaptability.
(d) None of these.

29. __________ encounters are a direct human contact.
(a) Phone encounters.
(b) Face to face encounters.
(c) Remote encounters.
(d) None of the above.

30. Image is the __________ the firm has for the reaching effect and also influences the customer perception.
(a) Recognition.
(b) Reputation.
(c) Reward.
(d) None of the above.

31. There are _________ stages in the marketing research process for understanding customer expectations.
(a) Five
(b) Four
(c) Three
(d) Two

32. __________ deals with developing a service measurement strategy.
(a) Developing the research plan.
(b) Defining the problem.
(c) Collecting the information.
(d) None of the above.

33. CRM stands for–
(a) Customer retainer ship management.
(b) Customer relationship management.
(c) Customer rewarding management.
(d) None of the above.

34. To be able to impact on the customer’s mind, services should be constantly maintaining _________ service standards.
(a) Very low.
(b) Very high.
(c) Very poor.
(d) None of the above.

35. Telemarketing is an important component of–
(a) Promotion-mix.
(b) Marketing-mix.
(c) Product-mix.
(d) None of the above.

36. _________ helps in activating the process of advertisement.
(a) Rural marketing.
(b) Telemarketing.
(c) General marketing.
(d) None of the above.

37. The services in hospitals are classified in three heads such as–
(a) Line services, basic services and important services.
(b) Line services, supportive services and auxiliary services.
(c) Line services, auxiliary services and important services.
(d) None of the above

38. NAAC stands for–
(a) National Assessment and Customers.
(b) National Assessment and Accreditation Council.
(c) National Awareness of Air Components.
(d) None of the above.

39. From the Hotel Marketing point of view, the definition given by Melvyn Greene concentrates on the _____________ process.
(a) Transformation
(b) Marketing
(c) Meeting
(d) None of the above

40. Services from an international perspective can be categorized into _______ clusters.
(a) Four
(b) Two
(c) Three
(d) One