Service Marketing – Semester 4 – Solved Question Paper 2018 – Dibrugarh University

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SERVICE MARKETING

SOLVED QUESTION PAPER

Semester 4

2018

1) State whether the following statements are True or False

 a) Intangibility and perish ability are the unique characteristics of series. True

b) Goods services continuum explains the differences between goods and services on the basis of dominance of tangibility / intangibility element ….

c) Pre purchase stage is the last step of consumer purchase division process. False

d) Psychographic segmentation refers to the consumer groups in terms of demographic similarities .

e) The services marketing mix comprises of 4P’s . True

f) Domestic tourism involves resident travelling in another country ………..

g) Financial services do not include financial intermediaries. …….

2) Write short notes on any four of the following :

A) Services marketing triangle –[written in 2016 (c)]

B) Goods v S . Services – [written in 2016 3(b)]

C) Psychographic Segmentation: Psychographic segmentation is the market segmentation strategy in which the total market is divided on the basis of psychology ,personality of people ,characteristics ,lifestyles , attitude etc . It helps to identify people based on the way they think and the kind of the they want to live . This segmentation method focuses on the psychology of the customer which can be focused upon by the company for their marketing activities.

Companies make products in order to fulfill the needs and wants of a customer .There is a constant requirement for a customer for buying a new products or services and these wants keeps on evolving and changing with age , income etc . This is directly related to human psychology on psychographics of a customer . Thus of a company is able to understand the customers psychology there can target them better with the products and services . In these cases ,psychographic segmentation is extremely critical for a company

D) Market Positing : [written in 2016 2.(d)]

E) Services quality dimension: The service quality may be determined through various interrelated factors called the dimension of service quality. According to David Garmin , service quality can be assessed on eight dimension .

1)Performance : These are the core on the primary characteristics that the service is bound to provide

2)Features : All those characteristics on features that add values to the services .

3) Reliability : It refers to the ability to provide the same levels of services quality over a extended time period time and again.

3) Conformance: Ability to conform to certain predefined quality standards .

4) Durability: It refer to the value addition that is done by the services .

5) Services ability : Ability to absorb and rectify the clause that exist within the services.

6) Aesthetes : The overall appeal image of the service in Mind set of the consumer.

7) Perceived Quality : The perception image and the feelings that customer have regarding the services.

F) Banking Financial Service: [ 2016 6(a)]

G) Higher education scenario in Assam: The higher education scenario has definitely changed a lot in the past 10 years in Assam. The education system in Assam is categorized into school education and college on university education . The Government of Assam handle the major part of the education however there are schools and colleges that are run by private concerns and famous educationists in the Assam.

Assam has an impressive track record with education. As per the Census Report of 2011 its literacy rate is 73.18% with the urban area showing a higher percentage at 88.88% and rural area with 70.44% . Statically males and females a discrepancy in their literacy rates but still the urban females at 67.27% are much higher than the all Indian females literacy rates (65.46%).

3(a). Discuss in detail the reasons for growth of services sector in Indian . Also mention the services sector and its contribution to Indian economy . [7+7=14]

Ans: [ written in 3(b) 2nd part 2017]

In Indian contact the study of service sector is important as the contribution of service towards the Indian economy has shown as substantial increase . Services that comprise the tertiary sector in Indian economy has contributed upto 47.90% of the GOP (2000) . Its contribution to GOP is poised to grow at a tremendous rate

Statistically the contribution of each sector to GOP in Indian can be shown as given below: YearPrimary Sector Secondary Sector   Tertiary Sector Growth services over previous year
        
1950-5155.4 16.1 28.5 
        
1960-6150.9 20.0 29.1 +2.1%
        
1970-7144.5 23.6 39.9 +9.6%
        
1980-8138.1 25.9 36.0 +12.6
        
1990-9130.9 30.0 39.1 +8.6
        
200027.5 24.6 47.9 +22.5

From the above table it can be interpreted that the growth of the primary sector has been declining whereas that of service (Tertiary) sector has been increasing phenomenally.

Service sector has contributed to a large extent towards the generation of employment on global fronts.

The statistics given below highlight the % of population employed in service sector

 Country Population employed in service (1996)
   
 USA 78%
   
 Canada 15%
   
 Australia 74%
   
 UK 73%
   
 Spain 59%
   
 Bangladesh 28%
   
 Mexico 3%
   
 India 2%
   
 Ethiopia 8%
   
 

The above mentioned facts and figures clearly indicates that service sector has been a major contributor towards the Indian Economy , both in

terms of percentage share in the GOP and the percentage share towards generating the employment .

                                                                    Or

b) What do you mean by ‘ service environment ‘? Explain the board classification of service [ 2+12=14 ]

Ans: The service environment includes all aspects of the organizations physical facility (service scope) as well as other tangible aspects of tangible communication . The service environment is used as a criteria in evaluating service by consumers service scope is often used to a positioning tool for service organizations .

Classification Of Service

Classification is defined as the act of distributing the similar hind of things into classes or categories Classification in case of services is done on the basis of certain attributes shown by the service . The most common approach of classifying the service is –

1) Classification on basis of market segmentation : On the basis of market segmentation service are classified into two segments.

a) Final Consumer : When the service is being availed by the final consumer himself . E.g.- Life insurance , coaching etc. .

b) Organizational Consumer: When a particular group of individuals avail the service . E.g.- Group insurance schemes, corporate legal services.

2) Classification on degree of tangibility: On the degree of tangibility the service are classified as-

 a) Non good service : These are the pure service that do not have any kind of product associated with them E.g. Legal services, teaching.

b) Owned good service : The service that are offered with the products owned by the customer E.g.- Free service that are offered with the purchase of any vehicle.

c) Rental goods service : The goods are not owned but the service provided by that commodity is purchased by the customer for an definite time period E.g. Service of a taxi operator , dentist

a) Professional / Highly skilled services: Deserve that requires the highest degree of skills and are specialized in nature are called the professional service. E.g. Management consultancy,

b) Non professional / semi skilled services – Those services which do not include the high degree of professional .E.g. Baby sitting , janitorial services etc.

3) Classification on the basis of skills of service provides: On the basis of skills of service provides , Service is classified as – Interior designing.

4) Classification on the basis of goals of service provider : On the basis of goods of service provider services is classified as-

 a) Profit organization : All those Organizations that have profit as the ultimate motive are included in the profit organization. E.g. Consultancy service .

b) Non profit organization: All those organizations that do not have profit as the ultimate motive are included in the Non profit organizations. E.g. Indian postal services, museums.

5) Classification on the basis of government regulations : On the basis of government regulations , Service is classified as –

 a) Highly regulated services:- Government shows strict regulations towards these services E.g. Airlines, insurance , Banking etc.

b) Limited regulated services :- Government shows limited intervention and regulations towards these services .E.g. Fast food, Themes parks.

c) Deregulated service:- Government shows least intervention and regulations towards these services . E.g. Leisure time management, personal fund management .

6) Classification on the basis of labor intensitive :-On the basis of labor intensintensiv service is classified as:-

a) Equipment based service: on the basis of the basis of use of equipment  service can be categorized into 3 types

ʉۢ Automated service :- The role of human beings in delivering the service is minimum. E.g. ATM machines.

• Unskilled automated:- The role of the human beings in delivering the service is limited to on extent that unskilled work force can handle the task easily.Eg Dry cleaning, Taxi driving, Janitorial services etc.

• Skilled automated :- The role of the human beings in delivering the service is limited to on extent that only skilled workforce can handle the task e.g. Airlines pilots etc.

b) People based services: – On the basis of people based services can be categorized into 3 types.

   • Professional :- Highly specialized person are required to perform this job. E.g. Lawyers ,      Accountant etc.

• Skilled labor : Service can be delivered only by the skilled individuals. E.g. Car servicing, Appeals repairing etc.

• Unskilled labor:- Service can be delivered even by the unskilled individuals E.g. Household cleaning , car washing etc.

4) Classification on the basis of consumer contact :- On the basis of customer contact service are classified as:-

1) High contact service:- Service in which the contact time of the customer with the customer with the service powder is considerably high. E.g. Teaching , medical services etc.

2) Low contact service :- Services in which the contact time of the customer with the service provider is quite less. E.g. e-banking automated service, medical services.

4)(a) Define the concept of consumer behavior in service. Explain in detail the consumer purchase division process (2+12=14)

Ans:- Consumer behavior in services includes the processes and motives that drive consumer buying activities. Consumer typically make purchases in a systematic way with the time frame and nature of the process dependent on the type of purchase . The standard consumer buying process with a service has some specific differences from a product based purchase situation.

The consumer purchase decision process are:-

1) Problem Identification :- This step is also known as recognizing of unmet need. The need is a source on force of buying behavior . Buying problem arises only when there is unmet need on problem is recognized. Need on problem impels an individual to act on to buy a product . Buyer senses a difference between his actual state and a desire state. This needs can be triggered by internal or external stimuli.

2) Information search:- Once there is recognition of problems there is a need for search of information. Interested customer will try to seen information. Now the customer will read newspapers and magazines , watch television , discuss with friends an relatives and they all the possible source of information. Mostly the consumer can try one or more of following source of information :-

1) Personal source

2) Commercial source

3) Public source

4) Experimental source

3) Evaluation of alternatives:- In the former stage, the consumer has collected information about certain brands. Now he undergoes evaluation of brand. He cannot buy all of them. Normally he select the bests one the brands that offer maximum satisfaction . Here he evaluates competitive brands to judge which one is the but, the most attractive. Evaluation calls for evaluating various alternative with certain choice criteria.

4) Purchase division :- This is the stage when the consumer prefers one of the most Promising brand out of the several brand. The former stage helps consumers evaluate various brand in the choice set. The brand that offer maximum benefit or satisfaction is preferred simply the most attractive brand that offers more benefit in relation to price paid is selected by comparing one brand with the other. Comparison shows superiority / inferiority of the brands.

5) Post purchase decision :- Consumer buy the product with certain expectation. Though he decides very systematically there is no guarantee of a complete satisfaction . There is always possibility of variation between the expected level of satisfaction and the actual satisfaction . His subsequent behavior is influenced by degree of satisfaction / dissatisfaction.

B) Discuss in detail the common bases for segmenting the consumer market. Give your reasoning favoring service market segmentation in India. [10+4=14]

Ans:- The common bases for segmenting the consumer market are:-

1) Geographic segmentation :- Here the segmentation is done on the basis of the geographical location of the customers. The geographical segmentation is based on the premises that people living in one area have different purchasing or buying habits than those living in other areas of the country. For example – the banking needs of people living in rural and urban areas are different and therefore different banking products and services are designed keeping in mind the difference preference of each customer group. Also the factor like climate zone, state, region constitute geographic segmentation.

2) Demographic segmentation :- The demographic segmentation means dividing the customer market on the basis of several variable such as age, sex, gender, occupation, income, education, martial status, family size, community, social status etc. Such segmentation in based on the premises that customer buying behavior is very much influenced by his demographic , and moreover these variable can be measured easily as compared to the other factors.

3) Psychographic segmentation :- The Psychographic segmentation relates to the personality , lifestyles and attitude of the individual . It is believed that the consumer buying behavior determined by his personality and lifestyle . The personality refers to the traits, attitude and habits of an individual and the market is segmented according to the personal traits such as introvert, ambitious aggressive etc.

4) Behavioral segmentation :- Here the marketer segment the market on the basis of the individual knowledge about the product and his attitude towards the wages of the products. Several behavioral variable are the lifestyle means the way a person lairs his life and do the expenditure . Here the companies segment the market on the basis of interest , activities , beliefs and opinions of the individual. occasion, benefit , users status, usage rate, buyer readiness stage, loyalty status and the attitude. The buyer can be classified as those who buy the product or service occasionally or who buy only those products from which they drier same sort of benefits .

5(a) Define ‘ service marketing mia’. Also discuss the new service development process                 4+10=14

Ans: – The service marketing mix is an extension of the traditional 4-P’s framework . The essential elements of product promotion , price and place remain but there additional variable – people , physical evidence and process are included to 7-P’s mix . These there additional P’s of service marketing are called Extended P’s of service marketing . The need for the extension is due to the high degree of direct contact between the service provider and the customers, the highly visible nature of the service process and the simultaneous production and consumption. The service marketing mix is a combination of the different elements of service marketing that companies use to communicate their organizational and brand message to customer . The service marketing mix is also referred to as the extended marketing mix. The new service development process are decision are :-

1) Idea Generation:- Idea can be generated from within an organization and also from outside, either formally or informally in other words it can come from both internal and external sources.

2) Screaming:- A number of ideas generated in the first stage must be screened to ensure

• Their Consistency with the organization existing strategy

• The extent to which they fit the image of the organisations and its capability their appeal to particular segment and

• Their cost and profitability implications.

3) Testing the concept :- Concept testing is usually done through marketing research . It involve presenting the idea or concept to the target market and studying their reaction to make necessary modification to the products before it is launched.

4) Business Analysis:- At this stage , ideas which have been selected to be developed further require in depth exploration and evaluation . The business analysis focuses on defining the market, market size and structure , consumer trends in the market, levels of demand current and future, external environment factor likely to affect performance, competitive, market share forecast , financial forecasts, costing, break-even analysis etc.

5) Practical Development :- At this stage preparation are made for developing and launching the service. The service providers undertake the work of designing and supply of literature and supporting materials.

6) Market Testing:- Marketing research is carried to test the concept it is necessary to test the market to reduce the risk. The test marketing can help organization to blind the elements of marketing mix to optimize the chances of success and also be a strong indications of likely performance in the rider market.

7) Service launch :- The service launch is the final stage and the organization new can make decision on when to introduce the new service where to introduce the new service . It is at this stage that the life style is said to commerce and the new service moves from being purely cost to bringing in revenue.

B) Discuss the role of advertising in service marketing

Ans:- [2016 7(a)]

6(a) Elaborate the health care services industry. Also discuss the factors responsible for the growth of health care services in India (4+10=14)

Ans:- The health care services industry is an aggregation and integration of sector within the economic system that provides goods and services to treat patient with curatives preventive, rehabilitative and palliative care. Health care worker interact with different people everyday , including patient , doctor , medical staff . There are lots of opportunities for advancement in healthcare. Health care Industry comprises of providers of diagnostic, preventive , remedial and therapeutic service such as doctor, nurses, hospitals and other private ,public and voluntary Organizations . It also includes medical equipment and pharmaceutical manufacturers and health insurance firms. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, Service and increasing expenditure by public as well as private players. The factors responsible for the growth of health care services in India are:-

1) Growing population :- One drew on growth in the health care sector is Indian becoming population currently 1.1 billion and increasing at a 2% annual rate. By 20 50, the population is projected to reach 1.6 billion .

2) Growing economy :-The Indian economy, estimated at roughly 1 billion, is growing in tandem with the population. The Indian economy will expand by at least 5% annually for the next 45 years and that it will be the only emerging economy to maintain such a robust pace of growth.

3) Expanding middle class :- Indian traditionally has been a rural , agrarian economy .Nearly, there quarters of the population still in rural areas and as of 2004 an estimated 27.5% of Indians were living below the national poverty line

4) Rise of desire:- Another factor driving the growth of Indian healthcare sector is a rise in both infection and chronic degenerative disease . While ailments such as polio recycles , leprosy and neonate tetanus will soon be eliminated some communicable diseases . Once thought to be under control , such as dengue fever, viral hepatitis , tuber colossi , malaria and pneumonia, have returned in force or have developed a stubborn resistance to drugs.

5)  Pharmaceuticals:- Though there has been rise in the diseases this has led to the parallel rise of the robust pharmaceutical industry in Indian. The Indian pharmaceuticals market is one of the fastest growing markets is the world; sales increased by 17.5% to 7.3 billion in 2006 according to 1Ms Wealth. Many factors including a strong economy and the country’s growing health care needs have contributed to the accelerated growth, which is especially strong in the over the counter (OTC) market.

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