Service Marketing Chapter 1
52 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What does service marketing primarily focus on the exchange of?

  • Customer information
  • Intangible services (correct)
  • Tangible goods
  • Physical products

How is marketing defined in the context of service marketing?

  • A method of production management
  • A sales-focused transaction process
  • A social and managerial process for exchanging value (correct)
  • Creating products exclusively for sale

Which of the following is not a characteristic of service marketing?

  • Intangibility
  • Inseparability
  • Perishability
  • Standardization (correct)

What is a primary focus of service management in the context of service marketing?

<p>Solving marketing problems associated with services (A)</p> Signup and view all the answers

What does Philip Kotler emphasize in his definition of marketing?

<p>Creating genuine customer value (D)</p> Signup and view all the answers

Which term best explains the nature of the service marketing exchange process?

<p>Service-centric (C)</p> Signup and view all the answers

Which approach can be used to classify services?

<p>By the degree of customer contact (A)</p> Signup and view all the answers

What is a significant problem associated with the intangible nature of services?

<p>Inconsistency in service delivery (D)</p> Signup and view all the answers

What is essential for an organization to succeed in competitive markets?

<p>Scanning the environment (D)</p> Signup and view all the answers

Which aspect is included in the micro environment analysis?

<p>Vision and mission statements (D)</p> Signup and view all the answers

Which of the following can negatively impact the value for money offering?

<p>High interest rates (A)</p> Signup and view all the answers

What does SWOT analysis primarily focus on?

<p>Internal strengths and weaknesses, and external opportunities and threats (D)</p> Signup and view all the answers

How does the market environment analysis contribute to an organization's strategy?

<p>It provides insights into customers, competitors, suppliers, and intermediaries. (D)</p> Signup and view all the answers

What are strengths in a SWOT analysis classified as?

<p>Internal capabilities that assist in achieving objectives (A)</p> Signup and view all the answers

What should be a focus area in analyzing the macro environment?

<p>Overall economic conditions and societal trends (C)</p> Signup and view all the answers

What might cause an increase in customer demand?

<p>Lower interest rates (B)</p> Signup and view all the answers

Which category does a toothpaste fall under in the goods-versus-service continuum?

<p>Pure tangible good (B)</p> Signup and view all the answers

What is an example of a core service with accompanying minor goods and services?

<p>Airlines (D)</p> Signup and view all the answers

What characteristic distinguishes equipment-based services from people-based services?

<p>Automation capabilities (B)</p> Signup and view all the answers

In which level of service classification does consumer presence play a critical role?

<p>Level 2: Degree of dependence on consumer presence (B)</p> Signup and view all the answers

What type of service is provided by law firms?

<p>People-based service (B)</p> Signup and view all the answers

Which of the following best describes hybrid service offers?

<p>A combination of tangible goods with accompanying services (C)</p> Signup and view all the answers

Which of the following is an example of a pure service?

<p>Medical services (D)</p> Signup and view all the answers

What does personal versus business use classification refer to?

<p>The primary audience of the service (B)</p> Signup and view all the answers

What role do the staff of an organization play in service delivery?

<p>Their actions directly affect the quality of the service. (A)</p> Signup and view all the answers

Which of the following describes the 'Process' aspect of service delivery?

<p>It determines how customer needs are satisfied in real time. (A)</p> Signup and view all the answers

What is one of the purposes of the various terms used for pricing in services?

<p>To cover costs and generate profits. (A)</p> Signup and view all the answers

In what way does 'Promotion' function within a service organization?

<p>It effectively communicates benefits to the target audience. (A)</p> Signup and view all the answers

How is the nature of the service defined?

<p>It is the performance that can be offered by one party to another. (B)</p> Signup and view all the answers

What does the 'Place' component of services depend on?

<p>The nature of the service and customer preferences. (D)</p> Signup and view all the answers

Which of the following best describes 'Tangible evidence' of a service?

<p>Brochures and other materials that showcase the service. (B)</p> Signup and view all the answers

What does the 'Service delivery exchange process' consist of?

<p>Interactions between the service provider and customers on two levels. (C)</p> Signup and view all the answers

What is considered a weakness in the company's SWOT analysis?

<p>Relatively low advertising and promotions budget (A)</p> Signup and view all the answers

Which of the following factors is categorized as an opportunity for the company?

<p>Economic climate (D)</p> Signup and view all the answers

Identify the threat that could potentially impact the company's performance.

<p>Channel pressure (D)</p> Signup and view all the answers

What does the term 'product' refer to in the context of service marketing?

<p>The technical outcome of the service (A)</p> Signup and view all the answers

What is a common limitation associated with the internal capabilities of a company?

<p>Need for diverse manufacturing skills (D)</p> Signup and view all the answers

Which characteristic of services emphasizes that they cannot be physically experienced?

<p>Intangibility (D)</p> Signup and view all the answers

Which of the following elements is not part of the 7Ps of service marketing?

<p>Planning (D)</p> Signup and view all the answers

How can changes in the macro environment affect a company?

<p>Due to shifts in technology, economics, and politics (B)</p> Signup and view all the answers

What is a common problem associated with inseparability in service delivery?

<p>Physical connection to the service (D)</p> Signup and view all the answers

What is a significant characteristic of service that distinguishes it from products?

<p>Intangibility (B)</p> Signup and view all the answers

Which solution is suggested for addressing the perishability of services?

<p>Utilize part-time employees during peak demand (B)</p> Signup and view all the answers

What issue does heterogeneity primarily present in service delivery?

<p>Difficulty in standardising service delivery (B)</p> Signup and view all the answers

Which aspect of the 7Ps relates to how customers perceive the delivery of a service?

<p>Physical evidence (C)</p> Signup and view all the answers

What is a key external factor threatening a company's performance?

<p>Emerging competitors (B)</p> Signup and view all the answers

Which of the following is NOT a solution for addressing the issues of intangibility?

<p>Ensure effective customer management (A)</p> Signup and view all the answers

What is a common solution for problems arising from high demand in perishability?

<p>Offering differential pricing (C)</p> Signup and view all the answers

In terms of customer involvement, where does the challenge of inseparability lie?

<p>Interaction levels vary among customers (C)</p> Signup and view all the answers

Which of the following best describes a strategy associated with heterogeneity?

<p>Customisation of services (B)</p> Signup and view all the answers

What complication arises from the perishability of services?

<p>Difficulties in inventory management (A)</p> Signup and view all the answers

Which of these characteristics means that services are produced and consumed simultaneously?

<p>Inseparability (A)</p> Signup and view all the answers

Flashcards

Service Marketing Exchange

The process of obtaining what is needed or wanted through creating and exchanging value with others.

Service

Intangible offerings designed to satisfy needs and wants, unlike physical goods.

Marketing of Services vs. Goods

Marketing of intangible services differs significantly from marketing tangible products due to factors like intangibility and perishability.

Service Classification

Different ways of categorizing services by type or attributes.

Signup and view all the flashcards

Service Characteristics

Unique features of services, different from products.

Signup and view all the flashcards

Marketing Problems in Services

Challenges associated with unique service characteristics, such as difficulty in measuring quality.

Signup and view all the flashcards

Marketing Solutions for Services

Strategies to overcome problems associated with distinctive service characteristics.

Signup and view all the flashcards

Marketing Definition (Kotler)

Creating genuine customer value by helping customers become better off through quality, service, and value.

Signup and view all the flashcards

Marketing Exchange Process

A process where an organization understands its target market's needs and finds creative ways to meet them.

Signup and view all the flashcards

Value for money offering

The perceived value of an offering related to its price. It can be impacted by external factors.

Signup and view all the flashcards

Micro-environment

The internal factors of an organization, including its vision, mission, skills, and resources.

Signup and view all the flashcards

Macro-environment

External factors an organization should analyze, including the market itself, competitors, suppliers, etc.

Signup and view all the flashcards

Market Environment

The outside factors that organizations encounter to serve their customers: customers, competitors, suppliers, and intermediaries.

Signup and view all the flashcards

SWOT Analysis

A strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats impacting a business.

Signup and view all the flashcards

Strengths (SWOT)

Internal capabilities helping the organization achieve goals.

Signup and view all the flashcards

Threats (SWOT)

External factors that could negatively impact the organization's goals.

Signup and view all the flashcards

Tangible Evidence

Physical representation of a service used to communicate its value and quality. Examples include brochures, websites, and physical spaces.

Signup and view all the flashcards

People (Service Marketing Mix)

The staff involved in delivering a service. Their actions directly influence service quality.

Signup and view all the flashcards

Process (Service Marketing Mix)

How the service is delivered in real time. It focuses on satisfying customer needs effectively.

Signup and view all the flashcards

Place (Service Marketing Mix)

Where and how the service is delivered. It considers customer value and distribution channels.

Signup and view all the flashcards

Pricing (Service Marketing Mix)

The cost of the service. It covers expenses and aims to generate profits.

Signup and view all the flashcards

Promotion (Service Marketing Mix)

Communication methods used to inform and persuade target audiences about the service.

Signup and view all the flashcards

Service Delivery Interaction

The relationship between service provider and customer during the service delivery. It involves technical skills, experience, and know-how.

Signup and view all the flashcards

Defining Services

Activities or performances offered to others, often intangible and not resulting in ownership. Production might or might not be tied to physical products.

Signup and view all the flashcards

SWOT Analysis Weaknesses

Internal company limitations hindering objective achievement.

Signup and view all the flashcards

SWOT Analysis Opportunities

External factors the company can use to their benefit.

Signup and view all the flashcards

SWOT Analysis Threats

External factors negatively affecting a company's performance.

Signup and view all the flashcards

Service Marketing Mix

7Ps: product, physical evidence, people, process, place, pricing, promotion, used in service marketing.

Signup and view all the flashcards

Service Product

The intangible or tangible outcome of a service, the 'what'.

Signup and view all the flashcards

Physical Evidence (service)

Tangible aspects of a service that help customers judge it prior to use.

Signup and view all the flashcards

Excessive Product Range

Having too many products, especially with low sales.

Signup and view all the flashcards

Low Advertising Budget

Limited funds dedicated to promoting products or services.

Signup and view all the flashcards

Poor Store Presence

Lack of a strong and visible presence in retail locations.

Signup and view all the flashcards

Goods-Service Continuum

A spectrum that ranges from purely tangible goods (like toothpaste) to purely intangible services (like medical services), with hybrids in between (e.g., a car with a maintenance plan).

Signup and view all the flashcards

Tangible Goods

Physical products that can be touched and owned, such as toothpaste, cars, or furniture.

Signup and view all the flashcards

Intangible Services

Services that cannot be physically touched or owned, such as medical services, financial advice, or entertainment.

Signup and view all the flashcards

Hybrid Service Offers

Combinations of tangible goods and intangible services, offering a combination of both. Examples include a meal at a restaurant or a car with a maintenance plan.

Signup and view all the flashcards

Equipment-Based Services

Services delivered using equipment, often automated or provided by unskilled or skilled workers. Examples include movie theaters, airlines, and vending machines.

Signup and view all the flashcards

People-Based Services

Services provided by people, ranging from unskilled labor to highly skilled professionals. Examples include law firms, restaurants, and hair salons.

Signup and view all the flashcards

Consumer Presence in Services

The degree to which a customer needs to be physically present to receive a service. Some services require the customer's presence (e.g., surgery), while others do not (e.g., car repair).

Signup and view all the flashcards

Personal vs Business Use

Services can be classified based on whether they meet personal or business needs. For instance, a personal trainer caters to individual fitness goals, while a consulting firm addresses business challenges.

Signup and view all the flashcards

Intangibility

A service's lack of physical form, making it difficult to touch, see, smell, or hear.

Signup and view all the flashcards

Problems with Intangibility

Services are hard to store, patent, and communicate their value due to their intangible nature.

Signup and view all the flashcards

Solutions for Intangibility

Stress tangible cues (like brochures), use positive word-of-mouth, and build a strong brand image to overcome the intangible nature of services.

Signup and view all the flashcards

Inseparability

Services are often produced, delivered, and consumed simultaneously.

Signup and view all the flashcards

Problems with Inseparability

Direct customer involvement, interaction, and mass production are challenges with services due to their inseparability.

Signup and view all the flashcards

Solutions for Inseparability

Select the right staff, manage customer interactions effectively, and explore opportunities for mass production to address inseparability in services.

Signup and view all the flashcards

Heterogeneity

The inconsistency of service delivery makes it hard to standardize.

Signup and view all the flashcards

Problems with Heterogeneity

Quality control and service standardization are challenging due to the variability inherent in service delivery.

Signup and view all the flashcards

Solutions for Heterogeneity

Customize services for individual needs and strive for standardization where possible to address variability in service delivery.

Signup and view all the flashcards

Perishability

Services cannot be stored or saved for later consumption.

Signup and view all the flashcards

Study Notes

Chapter 1: Service Marketing in Perspective

  • Learning Outcomes:
    • Explain service marketing exchange processes and their relationship with information needs.
    • Define the concept of "service."
    • Differentiate between marketing physical goods and intangible services.
    • Discuss various service classification approaches.
    • Identify unique characteristics of services.
    • Explain the marketing problems and solutions associated with service characteristics.
    • Provide practical examples and solutions to marketing problems discussed in the chapter.

Introduction

  • Marketing is the art of creating genuine customer value and helping customers become better off.
    • Key watchwords are quality, service, and value.

Overview: Basic Concepts of Service Marketing

  • Service Marketing Exchange Process: A complex process where organizations identify customer expectations and find innovative ways to meet their needs.
    • Factors affecting value proposition: Rising petrol prices, high interest rates, lower disposable income, and more demanding customers.

Three Environments

  • Micro-environment: Organization's vision, mission, competencies, and capabilities.
  • Market environment: Focus on customers, competitors, suppliers, and intermediaries.
  • Macro-environment: Economic, political, legal, social, and technological factors.

SWOT Analysis

  • Strengths:
    • Market leadership in specific segments (e.g., dry cat food, luxury pet food).
    • Strong brand recognition and global position in food technology.
    • Extensive global grocery distribution networks.
    • Strong market leadership in several regions (e.g. France, Italy, Spain).
  • Weaknesses:
    • Excessive product range with brands of varied volume.
    • Limited marketing budget.
    • Manufacturing capabilities related to product range.
    • Limited retail presence in some key markets.
    • Weak profit performance.
  • Opportunities:
    • Economic conditions.
    • Demographic shifts.
    • Market trends.
    • Technological advancements.
  • Threats:
    • Competitive pressures.
    • Pressure on distribution channels.
    • Demographic shift.
    • Political factors.

Service Marketing Mix (7Ps)

  • Product: The technical outcome of the service, the "what" of the service (tangible or intangible).
  • Physical Evidence: Tangible cues reflecting service quality (e.g., brochures, facilities). Hard to assess before consumption.
  • People: Staff involved in service delivery directly impacting quality.
  • Process: Customer experience, how the service satisfies needs (real-time).
  • Place: Service distribution channels. Dependent on service nature and customer value.
  • Pricing: Different terms related to pricing (e.g., charges, rents, commissions). Designed to cover costs and make a profit.
  • Promotion: Communication to the target audience on the benefits of the service and how to influence knowledge, attitudes, and behaviour.

Defining Services

  • Services are acts or performances offering intangible value.
    • Their production may or may not be tied to a physical product.

Goods-Versus-Service Continuum

  • Pure Goods: Tangible products with minimal service.
  • Hybrid: Offers some combination of goods and services.
  • Pure Services: Primarily intangible, focusing on service delivery.

Classification of Services

  • Level 1: Means of delivery (equipment or people-based).
  • Level 2: Degree of dependence on consumer presence.
  • Level 3: Personal vs. business use.

Distinguishing Features of Services

  • Intangibility: Services are not physical products, making it hard to store or patent them.
  • Inseparability: Services are often produced and consumed simultaneously, making staff critical.
  • Heterogeneity: Service quality varies based on provider and circumstances.
  • Perishability: Services cannot be stored for later use.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

BEM 120 Chapter 1 PDF

Description

This quiz covers the key concepts of service marketing as outlined in Chapter 1. You will explore the unique characteristics of services, the differences between marketing physical goods and services, and the challenges faced in service marketing. Practical examples will help solidify your understanding of the theoretical concepts discussed in this chapter.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser