MBA Semester III: Service Marketing Module I

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Questions and Answers

What is the primary focus of companies like Starbucks as mentioned in the content?

Expanding their product range

Improving technological advancements

Providing customers with a memorable experience (correct)

Selling products at a lower price

What principle does McDonald’s adhere to in its franchise operations?

Customization of services

Innovation and creativity

Quality, Service, Cleanliness, and Value (QSCV) (correct)

High employee turnover

How has advances in information technology benefited service firms?

By reducing the need for customer interaction

By increasing the number of employees

By enabling quicker and higher quality service delivery (correct)

By streamlining product manufacturing

Which of the following is a result of internationalization in the service sector?

Companies like Dell and IBM adopting global best practices Signup and view all the answers

What significant shift is noted in the purchasing behavior of consumers?

An emphasis on quality of experience over products Signup and view all the answers

What role has franchising played in service delivery according to the content?

It has improved and standardized service across locations. Signup and view all the answers

What does ICICI Bank utilize to enhance its customer service experience?

Tablets for instant account opening services Signup and view all the answers

Which factor has contributed to the growth of the service sector in India?

Globalization opening up international boundaries Signup and view all the answers

What primary function does a service blueprint serve?

It depicts the entire service process on a map. Signup and view all the answers

Which aspect is NOT covered under the customer role in a service blueprint?

Training of service employees. Signup and view all the answers

Onstage employee actions are characterized by which of the following?

Visible activities undertaken by service personnel. Signup and view all the answers

What is classified as a support process in service blueprinting?

Employee training for service delivery. Signup and view all the answers

Which type of employee actions are typically hidden from the customer?

Backstage actions. Signup and view all the answers

When analyzing technology needs in service blueprinting, what should a service provider primarily focus on?

Upgrading to meet service quality expectations. Signup and view all the answers

What does the term 'tangible evidence of the service' refer to in a service blueprint?

Physical items such as receipts and brochures. Signup and view all the answers

Which of the following is a key advantage of blueprinting in service design?

It helps in visualizing and streamlining the service process. Signup and view all the answers

What is the primary focus for management to build a loyal customer base?

Ensuring a dedicated employee base Signup and view all the answers

Which of the following is a key strategy for retaining valuable human assets in an organization?

Recognizing and rewarding performance Signup and view all the answers

How should employee performance be managed to ensure growth within an organization?

By providing periodic measurements and feedback Signup and view all the answers

What does the concept of quality in services primarily relate to?

An attitude towards service Signup and view all the answers

Which technology development factor enhances the link between service providers and customers?

Close link with customers Signup and view all the answers

What role do employees with successful careers play in an organization?

They become role models and inspire retention Signup and view all the answers

Which aspect should be highlighted in a service design blueprint for a barber shop?

Emphasizing the importance of service design Signup and view all the answers

In establishing a salon, what would be crucial for service marketing?

Considering a variety of service factors Signup and view all the answers

What is a key characteristic of services that distinguishes them from goods?

Inseparability Signup and view all the answers

Which factor has notably contributed to the growth of the service sector in India after 1991?

Economic reforms Signup and view all the answers

Which of the following refers to the lack of ownership in services?

Lack of ownership Signup and view all the answers

What is meant by 'evidencing' in service design?

Envisioning service experiences for consumers Signup and view all the answers

Which aspect of consumer behavior has significantly changed in India over the last two decades?

Increased affluence Signup and view all the answers

What does variability in services refer to?

Inconsistency in quality Signup and view all the answers

What is the primary purpose of training for service personnel in organizations?

To ensure customer satisfaction Signup and view all the answers

Which of the following best describes the concept of 'co-creative' in service design?

Involving all relevant parties in the design process Signup and view all the answers

Which of these is NOT a listed characteristic of services?

Standardization Signup and view all the answers

What duration does the training for software engineers at Infosys typically last?

Eight to twelve weeks Signup and view all the answers

What percentage of its revenues does Infosys spend on employee training and education?

5% Signup and view all the answers

Which of the following is NOT a major objective of the training programs conducted by Infosys?

Increasing employee salary Signup and view all the answers

How often do employees at Infosys undergo training apart from the initial program?

Twice a year Signup and view all the answers

What role do project leaders have in the training programs at Infosys?

They conduct training programs and workshops. Signup and view all the answers

Who staff the education and research group at Infosys responsible for training?

Masters and doctorates in relevant fields Signup and view all the answers

According to Infosys's training philosophy, how should service personnel treat customers?

In a way that mirrors how they are treated by management Signup and view all the answers

Study Notes

Overview of Service Marketing

Services are intangible activities or benefits offered by one party to another without resulting in ownership.
Example: OLA plans to expand to 200 cities and invest in the driver ecosystem, including training for drivers and adding women drivers.

Characteristics of Services

Intangibility: Services cannot be seen or touched.
Inseparability: Service production and consumption occur simultaneously.
Variability: Quality of service can vary from one provider to another.
Perishability: Services cannot be stored or saved.
Simultaneity: Service is produced and consumed at the same time.
Heterogeneity: Services are unique to each customer and experience.
Lack of ownership: Customers don't own the service.

Marketing of Services

Essential to understand differences between customer (who uses the service) and consumer (who purchases the service).

Factors Contributing to Growth in Service Sector

Government Policies: Support and initiatives, especially post-1991 reforms, have boosted the service sector.
Social Changes: Increasing consumer expectations for experiences, exemplified by Starbucks' focus on customer interaction.
Business Trends: Companies are emphasizing service quality, with franchises like McDonald’s maintaining standards through training.
Advances in Information Technology: Instant services enabled by tech improvements, e.g., ICICI Bank offering immediate account openings.
Internationalization: Global firms entering markets like India, raising service standards through best practices.

Service Design Principles

User-Centered: Focus on qualitative research for user needs.
Co-Creative: Involve stakeholders in design processes.
Sequencing: Breakdown of service into stages.
Evidencing: Create tangible representations of service experiences.
Holistic: Consider all touchpoints in the service experience.

Service Blueprinting

Visualization of the service process detailing customer interactions and service delivery.
Elements Include:
- Customer role: Steps customers take from selection to evaluation of service.
- Onstage and backstage actions: Observable activities and supporting functions of employees.
- Support Processes: Activities aiding service delivery, like employee training.
- Technology: Assessing and upgrading tech for service quality.

Employee Training

Vital for customer satisfaction and operational success.
Infosys invests 5% of revenues in training, focusing on both technical and managerial skills.
Continuous training helps employees grow and adapt to new challenges.

Retention Strategies

Employee welfare is linked to customer service quality; satisfied employees lead to satisfied customers.
Recognizing and rewarding employee performance fosters loyalty and engagement.

Building Service Aspirations

Organizations should focus on quality and creating demand through service excellence.
Quality service is defined as an attitude towards service delivery.

Technology in Service Development

Ensures easy access, new service delivery methods, closer customer relations, elevated service levels, global reach, and cost rationalization.

Class Activity Suggestions

Create a service blueprint for a one-man barber, emphasizing design importance and process modeling.

Assignment Directions

Consider services for a new salon, service marketing strategies, focus on human resources, unique selling proposition, and technology integration.

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Description

This quiz covers the fundamental concepts of service marketing, specifically focusing on the differences between customers and consumers, and the distinctions between goods and services. It draws on insights from key marketing theorists to explore the intangible nature of services. Test your understanding of these essential marketing principles.