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  • 1. SERVICES MARKETING Module 1 Introduction to Services Marketing Faculty : Kerena AnandA] TWO MARKS QUESTIONS1. Define Service.Answer: A service is any act or performance that one party offers to another, which isessentially intangible and does not result in the ownership of anything. Philip Kotler2. What is consumer gap? (Jan 2010, 2006)3. Is it possible to have pure tangibility in case of services? (Jan 2009)4. Does the meaning of product include services or not? (Jan 2009)5. What are provider gaps? (Jan 2009, 2007)6. What is GATS? (Jan 2011, 2007)7. What is SERVQUAL? (Jan 2007)Answer: SERVQUAL is a theory of measuring service quality as taken by customers. TheSERVQUAL questionnaire is used to help service organisations better understand the serviceexpectations and perceptions of their customers and it operates and measures service quality alongfive dimensions which are: tangibles, reliability, responsiveness, assurance and empathy.7. What is the difference between reliability and assurance dimensions ofservice quality? (Jan 2006)
  • 2. Answer: Reliability: Ability to perform the promised service dependably and accurately (example: flights depart and arrive on schedule). Assurance: Employee’s knowledge and courtesy and their ability to inspire trust and confidence. (example : knowledgeable mechanics at auto service centre).B] FIVE MARKS QUESTIONS1. Explain briefly the significance of service sector in the Indian economy.(Jan 2008)2. What are the reasons for the growth of service sector? Demography :Study of population, increase in life expectancy: leisure, health care, tourism, fast food , entertainment, infrastructure and support services are some of the services that have developed with respect to demographic factors. Economic: Changes in the spending and purchasing patterns Political and Legal: Government has liberalized policies which has strengthened the relationships and growth and development of tourism and hotel industry. Social: The increase in the single person household, smaller families and working women means that there is more time for travel, entertainment and emergence of child care services. Technological : the influence of internet, computer science, information technology has bought a paradigm shift in services industry like travel, banking and educationC] EIGHT MARKS QUESTIONS1. Distinguish between product and services marketing? (Jan 2010, 2009,2003)Answer: Marketing involves convincing the customers to buy the product or service of acompany by the sales people. Both product and service sales involves the same thing that is
  • 3. convincing the customer to consume the product or service. However there are somedifferences between the two, given below is the list of differences between the two – While product marketing involves marketing for tangible goods, tangible goods are those goods which can be seen. While service marketing in intangible because it involves services and services cannot be seen and that is why they are intangible. While product marketing is same for all the persons, but services marketing differs from person to person. Examples of product sales can be sales for goods such as soap, electronic items, industrial products etc….., while examples of service sales are insurance selling, banks relationship marketing etc….. It can be done in bulk while service marketing cannot be done in bulk rather it is done on individualistic basis. Product sales does not require maintaining the continuous relations with customers rather it requires great effort at the time of selling while service sales requires maintaining continuous relations with the customers, because services are to be provided continuously which is not the case with products.2. Explain the gaps model of service quality? (Jan 2011, 2009, 2003)- (canbe asked as 2 marks or 8 marks question)3. What are the characteristics of services that differentiate it from goods?Answer using suitable examples. (Jan 2011)Answer: Services have a number of unique characteristics that make them so differentfrom products. Some of the most commonly accepted characteristics are:a) Intangibilityb) Inseparabilityc) Heterogeneityd) Perishabilitye) OwnershipIntangibilityWhen you buy a cake of soap, you can see, feel, touch, smell and use it to check its effectivenessin cleaning. But when you pay fees for a term in college, you are paying for the benefit of derivingknowledge and education which is delivered to you by teachers. In contrast to the soap where youcan immediately check its benefits, there is no way you can do so in case of the teachers who are
  • 4. providing you the benefits. Teaching is an intangible service. When you travel by an aeroplane,the benefit which you are deriving is a service (transaction) but it has some tangible aspects suchas the particular plane in which you fly (and the food and drink which is served). In this casethe service has both a tangible and intangible aspect as compared to teaching which has hardly anytangible aspect.The distinguishing feature of a service is that its intangible aspect is dominant.J. Bateson has described the intangible characteristics of services which makethem distinct from products4. These intangible features are:� A service cannot be touched� Precise strandardisation is not possible� There is no ownership transfer� A service cannot be patented� Production and consumption are inseparable� There are no inventories of the service� Middlemen roles are different� The consumer is part of the production process so the delivery system mustgo to the market or the customer must come to the delivery system.InseparabilityIn most cases a service cannot be separated from the person or firm providing it. A service isprovided by a person who possesses a particular skill (singer), by using equipment to handle atangible product (dry cleaning) or by allowing access to or use of physical infrastructure (hotel,train). A plumber has to be physically present to provide the service, the beautician has to beavailable to perform the massage. This is in direct contrast to products which can be produced inthe factory today, stocked for the next two, three or more months and sold when an order isprocured.HeterogeneityThe human element is very much involved in providing and rendering services and this makesstandardisation a very difficult task to achieve. The doctor who gave you his complete attention inyour last visit may behave a little differently the next time. The new bank clerk who cashed yourcheques may not be as efficient as the previous one and you have to spend more time for the sameactivity. This is despite the fact that rules and procedures have been laid down to reduce the roleof the human element and ensure maximum efficiency.Airlines, restaurants, banks, hotels have large number of standardised procedures. You have toreserve a room in a hotel and this is a straight forward procedure for which all the steps are clearlydefined. Human contact is minimal in the computerised reservation systems, but when you go tothe hotel there will be a person at the reception to hand over the key of your room. The way thisperson interacts with you will be an important factor in your overall assessment of the serviceprovided by the hotel. The rooms, the food, the facilities may be all perfect, but it is the peopleinteracting with you who make all the difference between a favourable and unfavourableperception of the hotel.
  • 5. PerishabilityServices cannot be stored and are perishable. A car mechanic who has no cars to repair today,spare berths on a train, or unsold seats in a cinema hall represent a service capacity which is lostforever. Apart from the fact that a service not fully utilised represents a total loss, the otherdimension of this perishability aspect is that most services may face a fluctuating demand. Thereis a peak demand time for buses in the morning and evening (office hours). Certain train routes arealways more heavily booked than others. This fluctuating demand pattern aggravates theperishability characteristic of services.OwnershipWhen you buy a product you become its owner-be it a pencil, book, shirt, refrigerator or car. Inthe case of a service, you may pay for its use but you never own it. By buying a ticket you can seethe evening film show in the local cinema theater; by paying wages you can hire the services of achauffeur who will drive your car; by paying the required charges you can have a marketingresearch firm survey into the reasons for you product’s poor sales performance, etc. In case of aservice, the payment is not for purchase, but only for the use or access to or for hire of items orfacilities.A service is purchased for the benefits it provides. If we closely examine the reasons whyproducts are purchased, we find that they are bought because they provide certain intangiblebenefits and satisfactions. Detergent powder provides the primary benefit of cleanliness, air-conditioners provide the benefit of a cool, comfortable environment, a mixer-cum-grinderprovides convenience.The only difference between products and services is that in the latter, the intangible component isgreater than in the former. Thus, services can be treated as a special kind of product. From amarketing view-point, the same concepts and techniques are applicable for both products andservices. The successful marketing of both requires market research, product design, productplanning and development, pricing, promotion and distribution. However, for marketing services,the marketing manager must understand the nature of the five characteristics of services andthe manner in which they impinge on the marketing strategy4. What is GATS? Discuss its emergence? (Jan 2011)D] TEN MARKS QUESTIONS1. How are services different from goods? Discuss the implication of thesedifferences for service marketers?(Jan 2008)