Service Marketing Strategies

Questions and Answers

What is essential for effective product differentiation among formally marketed products?

Feature and Styling (correct)

Price and Credit Terms

Warranty and Repairs

Core Functionality

What term describes the balance needed between service demand and service supply to avoid lost revenues?

Demand forecasting

Market Demand Analysis

Service Optimization

Capacity Management (correct)

Which of the following is NOT a characteristic of services?

Services result in ownership transfer (correct)

Services can vary in quality

Services are performed or delivered

Services are inherently intangible

Which type of demand refers specifically to consumer interest in a particular brand?

Selective Demand Signup and view all the answers

Which factor is associated with Augmented Products?

Credit Terms Signup and view all the answers

What does service intangibility imply about a service?

It cannot be stored or inventoried Signup and view all the answers

What is the main reason measuring market demand can be challenging?

Limited published statistics Signup and view all the answers

What type of demand exists when there is consumer interest but no product or service satisfies that desire?

Latent Demand Signup and view all the answers

Which of the following is an example of a core or generic product?

A cellphone Signup and view all the answers

What term is used to describe physiological necessities required for human survival?

Needs Signup and view all the answers

Which of the following elements could effectively differentiate a formal product from its competitors?

Unique Feature and Color Signup and view all the answers

Which of these options signifies the variability associated with services?

Process of Delivering Service Signup and view all the answers

Which of the following defines a market in the context of customer purchasing capabilities?

A group of potential customers with purchasing power Signup and view all the answers

Which of the following describes an augmented product offering effectively?

Credit and Service Terms Signup and view all the answers

Which type of management focuses on the appropriate level of services to meet customer demand?

Capacity Management Signup and view all the answers

What is the difference between wants and demands?

Demands are wants that are financially backed. Signup and view all the answers

What is one way to overcome the intangibility of services?

Showcase previous customers' success Signup and view all the answers

Which of the following describes service variability?

Inconsistency in service quality Signup and view all the answers

Why is inseparability significant in service delivery?

It highlights the role of customers in the service process Signup and view all the answers

Which method can help reduce service perishability?

Utilizing technology for reservations Signup and view all the answers

What is a common characteristic of services related to intangibility?

Their quality cannot be assessed before use Signup and view all the answers

Which of the following strategies is effective in managing service variability?

Establishing standard operating procedures Signup and view all the answers

What is the impact of service perishability on providers?

Providers face challenges in matching supply with demand Signup and view all the answers

How can service providers enhance their offerings to create a differentiated product?

Through the use of celebrity endorsements Signup and view all the answers

Study Notes

Service Characteristics

Intangibility: Services cannot be physically experienced or owned; buyers only understand them through use.
Examples: Plastic surgery and legal services highlight the experience-based nature of services.

Overcoming Intangibility

Taglines: Effective slogans can convey service essence.
Showcasing Previous Customers: Display testimonials and outcomes to visualize service benefits.
Customer Involvement: Let customers witness service delivery.
Visual Aids: Use infographics for appealing presentations.
Campaigns and Commercials: Promote services creatively through media.

Variability

Nature of Variability: Inconsistency in service delivery due to different personnel and circumstances.
Example: Airline service quality can differ based on crew and passenger interactions.

Strategies to Manage Variability

Employee Training: Equip staff with skills for consistent service delivery.
Automation: Implement technology to standardize services.
Standard Operating Procedures (SOPs): Use documented processes to maintain uniformity.

Inseparability

Concept: Services are produced and consumed simultaneously with customer participation.
Example: Quick service setups require the service provider's presence.

Managing Inseparability

Technology Utilization: Incorporate tech to ease service delivery.
Service Franchising: Establish a franchising model for standardized service across multiple locations.

Perishability

Definition: Services cannot be stored; once offered, they cannot be retrieved.
Market Adjustment: Adjust marketing tactics to balance supply and demand.

Levels of Product

Core Product: Refers to the primary purpose of a product; differentiation is crucial to marketing.
Formal Product: Encompasses features that distinguish offerings such as styling, price, and color.
Augmented Product: Involves added services to enhance customer experience for high-cost items, such as credit and warranty provisions.

Examples of Product Levels

Formal Products: Jackets, clothing, accessories.
Augmented Products: Luxuries like Prada, Burberry, Rolex.
Core Products: Essential goods like phones and bags.

Understanding Services

Definition: Services are activities or benefits provided to others, lacking ownership transfer.
Intangible Experience: Cannot be perceived like tangible goods.

Addressing Perishability

Capacity Management: Balance service availability with customer demand to avoid losses.

Market Concepts

Needs vs. Wants: Needs are essential for survival, while wants are psychological preferences.
Demands: Wants supported by purchasing capability drive market behavior.

Market Demand

Definition: Market consists of individuals or organizations willing and able to buy specific products.
Primary vs. Selective Demand: Primary demand refers to total demand for a product class; selective demand targets a specific brand.

Measuring Market Demand

Challenges in the Philippines: Lack of accurate industry data necessitates survey-based demand estimates.
Potential Demand: Exists when a market can afford a product but hasn't yet acquired it.
Latent Demand: Occurs when customer desires are unmet due to product unavailability or high prices.

Studying That Suits You

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

Description

Explore effective strategies to overcome the intangibility of services in marketing. This quiz covers methods such as taglines, customer showcases, and visual campaigns. Boost your understanding of how to enhance customer experience and trust in services like plastic surgery or legal advice.