Service Marketing – Semester 4 – Solved Question Paper 2017 – Dibrugarh University

SERVICE MARKETING (New Course)

4^th Semester

SOLVED QUESTION PAPER

2017

1. State weather the following statements are true or false:               1*8=8
2. Affluence in a society and growth in services are not correlated: true.
3. Service are homogeneous when goods are heterogeneous: true.
4. When a service company offers only one package across its market it is called differentiated  marketing: false.
5. The service product is a bundle of features and benefits:…………
6. The price of stock broking service is salary: false.
7. Quality is a key element in the service business: true.
8. A modified marketing mix consisting of four PS can be used as comprehensive marketing strategy: false.
9. Marketing segmentation is to divide the homogeneous market into heterogeneous market: true.
10. Write short notes on any four of the following :                                        4*4=16
    1. Service marketing segment
    2. Physical evidence
    3. Expanded marketing mix
    4. Marketing of education
    5. Microenvironment for service
    6. Non monetary cost

Ans: 1) Service marketing segment :-

Marketing segmentation is the process of identifying and targeting groups of individual who are similar to one another. Markets can be segmented in many different ways by product or service needs, by sensitivity to price by geographic area, by demographic segment or by psychographics and life style. The importance of market segmentation is that it allows a business to precisely reach a consumer with specific needs and wants in the long run, this benefits the company because they are able to use their corporate resources more effectively and make better strategies marketing decisions.

         2)Physical evidence:- 

Services being intangible, customers often rely on tangible clues on physical evidence to evaluate the service before its purchase and to assess their satisfaction with the service during an after consumption. Elements of the service that affect customers includes both exterior attributes such as design, layout. Equipment and decor. It is apparent that some service communicates heavily through physical evidence eg:- hospitals resorts etc while other provide limited physical evidence like insurance express mail etc. a distinction is made in service marketing between two kinds of physical evidence.

1. Peripherical evidence:-

It is actually possessed on part of the purchase of a service. It has however little or no independent value. Thus a bank checkbook is of no value unless backed by the funds transfer and storage service its represents.

• Essential evidence:-

Essential evidence unlike peripheral evidence cannot be possessed by the customers. Nevertheless essential evidence may be so important in its influence on service purchase. It may be considered as an element in its own right. 

• Expanded marketing mix:-

{Same as 2016 5(a)}

• Marketing of education:-

Education is a pure service section which is characterized by intangibility, inseparability, heterogeneity and parishability. Here the offers are intangible and the service may be based on the reputation of an individual. It is difficult to compare the quality of similar services and the buyer cannot return the service once it is availed.

Marketing education is a program designed to prepare secondary and post secondary functions association with directing the how of products and services from the producer to the consumers. A fundamental understanding of the marketing concept and basic marketing skills are essential not only to students entering the field of marketing but for everyone entering the work force marketing education course provide students with knowledge and skill that are highly transferable and will last a lifetime.

• Microenvironment for service:-

[ Same as 3(a) 2^nd part of 2016]

• Non monetary cost:-

When a customer buys a product, he is not spending money, he is spending other things as well. These things are called non monetary cost and they are spent in the form of time, convenience, effort and psychology. In recent years economists have recognized that monitory price is not just determined by monetary price but is influenced by other costs as well. Non-monetary costs has become an important concept in social marketing.

Non monetary caste represent other sources of sacrifice perceived by consumers when buying and using a service. Time costs, search costs and psychological costs often enter into the evaluation of weather to buy or rebury a service and may at times be more important concerns than monetary price. Customers will trade money for these other costs as mentioned below:-

1. Time costs:- Most service require direct participation of the consumer and thus consume real time.
2. Search costs:- When a consumer decides to buy a product/ service, he make effort in searching for the best one among all the choices. This effort is called “search cost” .
3. Convenience costs:- The inconvenience a person undergoes to avail a product or service is called convenience costs.
4. Psychological costs:- Often the most painful non monetary costs are the psychological costs incurred in receiving some services.

3(a) Explain the different components of service marketing triangle.                             11

Ans: {same as 2016 2(e)}

                                              or

(b) Define service . Explain the reasons for the growth of service sector.      (4+7=11)

Ans: Service refers to social efforts which generates the satisfaction of an individual services by nature are those economic activities that brings a desired change in the consumer in terms of creating value, distribution and image in the mind set.

Services that contribute the so called buyout service sector and considered to be the driving force for economics well being of any nation as shown tremendous growth. Mani force increase in the consumption of the different services in fuelling the economics globally.

Organization today are of offering a range of services to desire a competitive edge in the market. Service and their marketing has gained importance over the last decade to an extent that it has emerged to be the most debated topic of discussion.

Phenomenal growth has been witnessed in the service sector in the past one decade. Some of the potential reasons that have encouraged the growth of the service sector are:

1. Increased disposable income:-

Over the years as the Indian economy has grown the disposable income of mosses has also shown an upward trend. Such a trend is also found in the developed as well as the developing countries. Developing countries like ours where the development oriented sector has opened new job opportunities and the liberalization of economy is opening new vistas, service marketing has become ever more pertinent.

• Specialization:-

Speciation is the end result of the Division of labor. Where individuals specialize in their  respective fields. The in-depth it is the specialization and perfection that is driving the global economy.

• Upcoming fashion trends:-

New development in the corporate culture and the emergence of a well established services sector has influenced and changed the lifestyles of masses. People are receptive towards the new trends in the fashion that has resulted in the emergence of new tailor made service sectors such as hair dressing saloons,  beauty parlous, jogging and fitness centre.

• Information boom:-

Recent inventions and innovations in the field of communication has bridged the gap in the global markets. It is the developed countries that are making effort to build a superhighway for communications.

• Market sophistication:-

Changes in the information sector is driving the sophisticated changes in the market where customer expirations are all time high. Changing westernized life styles has changed the hierarchy of needs and requirements of the individual.

• Professionalism in Education:-

Success of any organization more or less depends on the human assets which that organization has, hence the concept of employee reliability and performance orientation is gaining ground.

 4(a) What are the various customer groups? What are their distinctive characteristics? 6+5=11

Ans: A customer group is a very of aggregating customer that are similar in some way. For example, you may use them to distinguish between retail and wholesale customers or between employees and external customers etc.

The various customer groups are:-

1. Loyal customers:- these types of customer are less in numbers but promote more sales and profit as compared to other customers as those are the ones which are completely satisfied. Loyal customer want individual attention and that demands polite and respectful responses from supplier.
2. Discount customers:- discount customers are also frequent visitors but they are only a part of business when offered with discounts on regular products and brands or they buy only low cost products.
3. Impulsive customers:–  These customers are difficult to convince as they want to do the business in urge or caprice. They don’t have any specific item into their product list but urge to buy what they find good productive as that point of time.
4. Need based customers:- These customers are product specific and only tend to buy items only to which they are habitual or have a specific need for them.
5. Wandering customers:- These are the least profitable customers as sometimes they themselves are not sure what to buy. These customers are normally new in industry and most of the time visit supplies only for confirming their needs on products.

Their distinctive characteristics of consumer are:-

1. Patience:- patience is one of the most important characteristics of customers. Only a patience customer service representative can give each client the time they need for their issue resolution.
2. Good listening:– A customer must listen carefully to understand what someone is trying to put across.
3. Attentiveness:- Candidates who pay attention to the detail learn everything they can prom the client’s message and ask only for the information that’s needed and not already present with the company.
4. Time management:– It is another of the key characteristics of customer service employees who are excellent at their joy. When hiring customer service professionals, look for candidates who are good at time management planning and use their time much more responsible than those who work in adhoc ways.

(b) Discuss the important of the study of consumer behavior in service marketing.    11

Ans: The important of the study of consumer behavior in service marketing are:-

1. Production policies:- The study of consumer behavior efforts production policies of the enterprise. Consumer behaviors discovers the habits, tastes and enterprise to plan and develop its product according to these specifications.

• Price policies:- The buyer behavior is equally important in having price policies. The buyers of some products purchase only because particulars articles are cheaper than the competitive articles available in the market.

• Decision regarding sales promotion:- Study of consumes behaviors is also vital in marketing decision regarding sales promotion. It enables the producers to know what motive prompt consumer to made  purchase and the same are utilized is promotional campaigns to awaken desire to purchase.

• Increase revenue:- The important of consumer buying behavior lie in the fact that we can improve our sales figure when we study the customers. We can alter the way we sell our product or service depending on the way that customers buy them.

• Brand equity:- It is with the consumer insight that the brand decides it needs to restructure itself, to change its perception in the mind of people, thereby getting higher turnovers. This too happen when you analyze consumer behavior. 

• Consumer do not always act or react predictably:- The consumers of the past use to react to price levels as if price and quality had positive relation. Today, week value for money, lesser price but with superior feature. The consumers response indicates that the shift had occurred.

• Exploiting marketing opportunities:-study of consumer behavior helps the marketers to understand the consumers needs, aspirations, expectations, problems etc. This knowledge will be useful to the marketers in exploiting marketing opportunities and meeting the challenges of the market.

• Highly diversified consumer preferences:-The shift has occurred due to availability of more choice now. The study of consumer behavior is important to understand the change.

• Competition:- one of the most important reasons to study consumer behavior is to find out which customers is going to buy.  

5(a) What are the determinants of service quality? How do they influence service business?

Ans: The determinants of service quality consist of :-

1. Understanding:- It involves knowing customer by marking more efforts to understand the customer’s requirements and wants.
2. Tangibles:- It encompasses the physical evidence of service.
3. Security:- It is the liberty from doubted on danger risk.
4. Credibility:- It is nothing but honesty, believality, and trust worthiness.
5. Communication:- It is the process where customerare informed in their own understandable language as well as it encompasses listening to customers. Communication means that the business has to be make several adjustments for various customers that in turn results in increasing the sophistication level with a well educated customer as well as speaking.
6. Country:– It involves friendly attitude as well as the nature of personal politeness.
7. Access:– It involves availability as well as easy method of contact.
8. Completer:– It means possessing the needed skills and knowledge for the purpose of performing the services.
9. Reliability:- It involves depend ability and performance consistency. Reliability means that the service is done correctly the vary initial time by the business and it also means that the business owners its premises.
10. Responsiveness:- It means the willingness of a worker for the sake of providing service. Responsiveness encompasses timeliness of services.

The conceptual aspect of service quality thus makes it clear that we cannot draw a line between the two as the expectation of customers/ users of services and the offering by the providers are influenced by a number of developing taking place in the society each and everyday. It is also be made clear that we find service quality influenced by knowledge of the customers/ user of service the quality of technology used for adding value to the service and the professionalism of marketing people engaged in the process. In addition, attitudes of people, their appearance and facial expression and service environment also inflame the service quality. The conceptualization of service quality begins by addressing the abstract expectations perceptual by customers/ users in respect of quality. Quality can be split into technical quality and factional quality and if we synchronies both of them optimally, the desired results are achieved. It is in this context that service quality assumes a place of outstanding significance amongst the key elements in the services business. 

                                 OR

(b) What are the tool of the promotion? Explain with example for any two service.

7+4=11

Ans: The tool of the promotion are:-

1. Sample :- Sample are one of the most important of the sale promotion. It is defined  as offers to consumers of a small amount of a product for trial
2. Coupons:- A coupon is a certificate that fetches buyers a saving when they purchase a specified product. Coupons are generally issued along with the product.
3. Demonstration:- Demonstration is required when products are complex and of a technical nature. Demonstration of products induces customers to buy. Customers are educated as to how to make proper use of the product.
4. Contests:- Contests are the promotion events that give consumers the chance to win something such as cash, trips or goods. Contested are conducted to attract new customer.
5. Cash refund offer:- Cash refund offers are rebates allowed from the price of the product. It is an offer to refund part of the purchase price of a product to consumers who send a proof of purchase to the manufacturer.
6. Premium:- Premium refers to goods offered either free or at low cost as an incentive to buy a product. A premium may by inside to package, outside it on received through mail.
7. Price off offer:- Goods are sold at reduced prices during seem seasons. Reduction in prices stimulates sale of goods.
8. Consumer sweepstakes:- A sweepstakes call for consumers to submit their names for a draw. Names of consumers are included in a list of prize mining contest. The lots are drawn and the winners get prices.
9. Buy back allowances :- Allowances are granted to buyers on the basis of their previous purchase. In order words, buy back allowances are given for new purchase, based on the quantity of goods bought previously.

Example for any two services is given below:-

1. Cash refund offer:-

For example- If a customer bought cloth from the cloth store and he ask the store for their money backs if it didn’t fit, then we called it as cash refined offer.

6(a) What is market segmentation? Describe how market segmentation can be used for services.                                                  4+7=11

Ans: Market segmentation refers to dividing the heterogeneous markets into smaller customer division having certain homogeneous characteristics that can be satisfied by the firm.

The concept of market segmentation is based on the assumption that the markets are not homogeneous but are heterogeneous. For example- two customer of a same product are newer common but are different in their nature, qualities, habits, hobbies, income and purchasing techniques. They also differ in their behaviors and buying decisions. Therefore on the basis of these characteristics, customers having similar qualities and characterizers are grouped in segments.

Market segmentation is a division on subdivision of market of course we agree with the view that in all service we don’t find  market segmentation essential. To be more specific in the service where we need to maintain uniformity, the market segmentation becomes in effective. The instrumentality of market segmentation is involved in the essence of making available to the customers the right goods and the quality services.

The segmentation reflects reality in the market situations, ensures higher customer satisfaction and brings qualitative improvement in the effectiveness of the marketing  programmers. It is a customer oriented marketing philosophy that sensitizes the marketing policies, strategies and programmer.

For market segmentation we use a numbers of bases like geographic, demographic and psychographic.

The geographic consideration becomes significant since the need and requirements of customers are also influenced by the geographical incidence. The market is divided into different territories and regions and the needs and requirements of customers can’t  be uniform in different segments.

Demographics’ are the most frequently used base for market segmentations. This is mainly due to the fact that the process of measurement is easy and the market differentiation is simple. Income, age, education, social class, sex, occupation, religion also influence the needs and requirements and therefore while segmenting a market we should also consider different related components.

Psychographic bases are also required to be taken into consideration while segmenting the market. Personality influences the use of a number of services, the status, profession, position influence the taste and temperament. An aggressive personality may be reflected in the choice of ostentatious clothing, furniture and automobiles. Lifestyle is another important segmentation basis.

                                  Or

(b) What are the components of service marketing mix?

Ans: {Same as 2016 5(a)}

7(a) How do you understand tourism offer? Explain the marketing components of a tourism service.                                                                                5+7=12

Ans: A tourism offer and tourist offer would mean the same thing if an offer is made to tourists. Tourism marketing has changed a great deal over the last few years. Among these changes we have seen a trend towards depersonalization and diverse fixation  of supply, with the aim of increasing demand. The tourist industry offers a wide range of holidays than ever before and is continually seeking out newly emerging or potential consumer group such as-

1.  Amusement and Theme park related tourism.
2. Rural tourism
3. Adventure tourism
4. Health or relaxation tourism
5. Gastronomic tourism
6. LGST tourism
7. Sports tourism

The marketing components of tourism service are:-

1. Product:- The principal products that recreation and tourism business provides are recreational experience and hospitality. The factors that create a quality recreational experience often differ among people.

Recreation and tourism business should also view their service/ product in generic terms

• Price:- Price is one of the most important and visible elements of the marketing mix. When establishing prices organizations should give attention to pricing strategies which may encourage off season and nonpeak period sales, longer stays, group business and the sales of package plan.
  • Place:-  Many tourism business fail to recognize their role in improving travel to and from their areas. They focus instead on serving the customer once they arrive at the site/community.
  • Promoters:- Promotion provides target audience with accurate and timely information to help them to decide whether to visit the tourist spot or not. The information should be of importance and practical use to the potential or existing visitor and also accurate.

                                                or

(b) Explain the marketing practices of hospitality services in India.                    12

Ans: Marketing is the process for getting a company’s product  service out to consumers . Hospitality marketing takes a look at how segments of the hospitality industry, such as hostels, restaurants, resorts and amusement parks, utilize marketing techniques to promote their product or service.

A hospitality services also known as accommodation sharing, hospitality exchange, home stay network or home hospitality network, is a centrally organized social networking service of travelers who offer or seek home stays for money. It is a broad category of fields within service industry that includes lodging, event planning, theme parks, transportation, cruise line and additional fields within the tourism industry. Usage rate, or its inverse vacancies rate is an important variable for the hospitality industry. Just as a factor owner would wish a productive asset to be in use as much as possible, like restaurants, hotels and theme parks seek to maximize the numbers of customers they process in all sectors.

The hospitality industries backbone is comprised of customers service, a concern shared by all segments of the industry- however, though cost and challenges will increase, owning at managing several facts of hospitality can provide with many more opportunities. Generate success. Few of the hospitality services which they provide are:-

1. Food and beverage:- In hospitality, food and beverage refine supreme. It is the largest element of the hospitality industry and can take the from of high and restaurants fast food eateries, entering establishment and many other manifestations. The food and beverage trade can symbiotically function as part of other business such as in bowling alley or movie theaters.
2. Accommodation:-Hotels, bed breakfast enterprises and others places offering lodging represent a broad segment of the hospitality industry. Business focus’s on providing lodging should integrate comfort, efficiency and attentive customer service and the simple amenities.
3. Travel and tourism:- Another chief segment of the hospitality business encompasses transportation. This includes airlines, trains, Creve ships and the staffs for each. Travel and tourism technology and there also co suffered a part of hospitality.
4. Economics:- The three for most categories of the hospitality industry are driven by and department on a strong economy. Converted when economic times are challenging, it may decide to blaster the basics of the business.