Introduction to Service Marketing

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Questions and Answers

What is a key characteristic of services that differentiates them from products?

Services can be returned or exchanged.

Services are tangible and have physical attributes.

Services are intangible and cannot be stored. (correct)

Services can be mass produced.

Why is heterogeneity a significant aspect of service marketing?

Services always meet the same standard of quality.

Services can be replicated accurately by various providers.

Services are always uniform across different industries.

Services often differ from one delivery to another. (correct)

How does perishability affect service marketing?

Services have a stable inventory level.

Services must be marketed on a limited time basis. (correct)

Services can be resold after consumption.

Services can be stored for future use.

In the context of service marketing, what role does the customer play during service delivery?

The customer actively participates in the production process. Signup and view all the answers

Which of the following statements best defines services as per the content?

Services are intangible economic activities offering satisfaction. Signup and view all the answers

What challenge do marketers face due to the intangibility of services?

They must attach tangible attributes to their offerings. Signup and view all the answers

What is meant by the statement that services are produced and consumed simultaneously?

Service delivery and customer interaction happen at the same time. Signup and view all the answers

According to Regan's suggestion in 1963, which of the following describes how services yield satisfaction?

Services may yield satisfaction either directly or in combination with other services or products. Signup and view all the answers

What does the term 'Inseparability' in services refer to?

The simultaneous production and consumption of a service Signup and view all the answers

Which of the following correctly describes Core Services?

The primary service provided in a transaction, like haircuts Signup and view all the answers

What is a key characteristic of Relationship Marketing?

It emphasizes customer retention and long-term relationships Signup and view all the answers

How does a company determine pricing in Relationship Marketing?

By pricing according to the relationship and features ordered Signup and view all the answers

What differentiates supplementary services from core services?

They are offered as a secondary addition to a core service Signup and view all the answers

What is an example of remote service in the retail sector?

Online shopping through e-commerce platforms Signup and view all the answers

What best describes 'Periodical transaction volume' in service industries?

The amount of transactions processed within a set timeframe Signup and view all the answers

What aspect does the Relationship Marketing Mix emphasize in product development?

Customization based on customer preferences and collaboration Signup and view all the answers

Study Notes

Introduction To Service Marketing

Service marketing is an organizational function and a set of processes for identifying, creating, communicating and delivering value to customers.
Service marketing also manages customer relationships for a business' benefit and the benefit of stakeholders.
Services are intangible economic activities offered by one party to another.
Services can be both tangible (transportation, housing) and intangible (credit, delivery)
Services are marketed like tangible products but generally require more creative approaches because they cannot be touched, held, tasted, or smelled.

Characteristics Of Services

Services are activities rather than tangible things, meaning they are intangible.
Services are produced and consumed simultaneously meaning the customer is actively involved in the creation of the service.
Services are heterogeneous, which means that no two services will be exactly alike, because they are customized to the customer's needs, even if they are delivered by the same provider.
Services are perishable, meaning that once they are consumed they cannot be saved for future use.

Types Of Services

Core Services: A service that is the primary purpose of a transaction (e.g., the services of a lawyer or teacher).
Supplementary Services: Additional services that are rendered in conjunction with the sale of a tangible product (e.g., delivery options offered by restaurants).

Relationship Marketing

Focus: Partners and customers (not company products).
Emphasize: Customer retention and growth (not just acquisition).
Utilize: Cross-functional teams (not department-specific teams).
Key Characteristic: Listening and learning, rather than just talking.

Relationship Marketing Mix

Product: Customized to customer preferences and designed with suppliers, not just internal teams.
Price: Set based on the customer relationship, the value-added features and services provided. Pricing strategies are often negotiated in business-to-business relationships.
Distribution: More direct marketing to the customer, reducing the intermediary's role. More options for customers to choose how they order, pay, receive, install, and repair products.

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Description

Explore the fundamentals of service marketing in this quiz. Understand how services are marketed differently from tangible products and learn about the unique characteristics of services. Test your knowledge on how value is created and delivered to customers.