SM

Question 1

what are the most important service marketing characteristics and internal and external implication

Answer 1

Intangibility
Heterogenity
inseparability
perishability

Question 2

discuss service triangle . what different types of marketing exist and who are the actors?

Answer 2

internal : company employees
exrernal : company customer
interactive : employee customer

Question 3

describe service dominant logic and link to value in use creation model

Answer 3

service dominant logic is when we have
1 production
2 customer value creation
1+2= interaction

value in use : value is created when customer integrate with producer of service ( barber)
value in use by customer : driving skills
value in use by time and place: government restrictions

Question 4

elaborate on traditional marketing mix for services and what extra marketing mix for services

Answer 4

marketing mix (4p)

product : quality management
price : depend on quality, demand and cost
promotion : WOM
place : decentralized

extra :
participants : customer and employee
physical evidence: furniture
process : the sequence of steps

Question 5

explain Gap model

Answer 5

external and internal gap

external related to : conflict between customer expectation and customer perception

internal gaps need to solve external :
GAP 1 : Knowledge gap
GAP 2: Not translated to proper design or standard
GAP 3 : delivery gap
GAP 4: Communication gap

Question 6

what type of qualities exist to distinguish products from services.. give example

Answer 6

1. search qualities ( furniture vs insurance)
2. experience qualities ( jewlery vs vacation)
3. credence qualities ( haircut vs lawyer)

Question 7

Discuss the service quality model according to Gronroos

Answer 7

Perceived service quality is comparison between :

1. expected
2. experienced

the perceiption is influenced by several factors ( company image )

also 2 aspects influence service quality

1. Technical quality ( what is delivered)
2. functional quality ( how is delivered)

Question 8

provide the model that approaches services from a relationship marketing perspective what are the critical components

Answer 8

the overall satisfaction has a relationship with :

1. trust
2. commitment

these two determines :

3. Loyalty

Question 9

what variables measure loyalty in service context ?

Answer 9

1. repurchase
2. WOM
3. lower price sensitivity

Question 10

what different types of services expectations exist . give examples

Answer 10

from high to low

1. ideal expectation
2. normative expectation ( should )
3. based on experience
4. acceptable expectation
5. minimum tolerable expectation

Question 11

what variables influence expectations patterns within service context ? clearly distinguish between different expectation level that exist for services

Answer 11

_ reliability ( high expectation level )
_tangibility ( low expectation level)

there are 2 expectation bounderies : upper level and low level

upper : desired service
middle : tolerence zone ( nothing goes wrong)
low: minimum adequate service

Question 12

discuss different stages of consumer decision process , what are typical criteria that play important role within a service context

Answer 12

_ customer recognize the need
_ customer look for information
_evaluate alternatives
_ purchase and consume
_ postpurchase evaluation

Question 13

how do satisfaction and service quality relate to one another ? how do they relate to profitability and what is major antecedentes

Answer 13

_ satisfaction is much broader concept
_ service quality dimensions are just elements that impact satisfaction :
tangible
empathy
assurance
responsivness
reliability

so service quality have an impact on customer satisfaction which influence customer loyalty which has huge effect on profitability.

Question 14

what are the main service quality dimensions for e-service?

Answer 14

core service evaluation / recovery service evaluation

core : efficiency
fullfillment
reliability
privacy

recovery :
responsiveness
compensation
contact

Question 15

discuss major determinants of customer satisfaction for services ? what are sources of dissatisfaction ?

Answer 15

satisfaction : 
product or service feature
consumer emotion
attribution to service
perception of equity and fairness
consumer and family members

dissatisfaction
recovery
adaptability
coping
spontanueity

Question 16

what are the 5 quality dimensions found by zeithaml

Answer 16

quality dimensions :

Reliability : providing service as promissed
Assurance : employee inspire trust and confidence
tangible: furniture . building and so
empathy : giving customer attention
responsivness : providing necessary information

Question 17

what questions need to be asked to guarantee a successful implementation of critical incident technique. discuss the type of service enqouters

Answer 17

the critical incident technique is a qualitative method that allows customers and employees reconstruct enqounters of satisfaction and dissatisfaction

questions :
_when have you had a satisfying or dissatisfying interaction with ..
_when did incident happen
_what did employee say or do
_what could be done differently? 

service enquonters: recovery / adaptability / coping / spontaneuity

Question 18

Discuss the 3 problems suggested by groonros on the disconfirmation paradigm

Answer 18

1_ timing for measuring expectation : after experience it will be measuring experience not expectation
2impact of experience on expectation: even if you measure expectation before ,it is different from factors that you use to evaluate the service
3 impact of previos expectation on current expectafion : customer experience will be influenced by previous expectation

Question 19

what are the main research objectives in the case of services and what type of methods can be used ?

Answer 19

_ discover customer expectation
_ monitor and track performance
_ asses overall company performance compared to competitors
_asses gaps between customer expectation and perception

methods to use : critical incident technique / survey / complains

Question 20

explain the concept of net promoter score

Answer 20

it is a simple measurement through questionnaire

_ how likely you recomment to friend
1 …… 10
we destinguish 3 profiles
detractors / passive / promoters

NPS = % PROMOTERS - % DETRACTORS

Question 21

discuss how development of relationships within service context evolve over time.
what major benefits of relationships both from a firm and customer perspective?

Answer 21

evolution of customer 
_ customer is stranger
_customer as acquaintances
_ customer as friend
_ customer as partner

benefits on customer :
_confidencs benefits
_social benefits
_ special treatment benefits

benefits for firm:
_ economic benefit
_customer behavior benefit (WOM)
_ HR benefit ( easy job for employees)

Question 22

when building a relationship with customers, different type of bonds are important , explain what type of bond exist

Answer 22

_ financial bond
_social bond
_ customization bond
_structural bond

Question 23

what types of innovations can be distinguished in case of services ? example

Answer 23

_major and radical innovation ( ebay)
_ start up business ( online banking)
_ new service for currently served market ( COMIN selling insurance online)
_ service line extention ( proximus extra netflix offer on package)
_ service improvement ( hotel hyat)
_style change ( Fedex change logo)

Question 24

discuss the concept of blueprinting: what process dimension and strategic orientation exist?

Answer 24

blueprinting is a tool that let us visualize the complexity of innovation and visualize the process from customer perspective

it is divided into 3 lines : customer interaction/ on stage contact / backstage contact

process dimensions are : Complexity / divergence

strategic orientation :
more divergence = more costumization ( creative services)
less divergence = standard ( hotel service)

more complexity = market penetration (professional service)
less complexity = specialization ( gas)

Question 25

what type of strategy does company like ryanair apply? explain in term of blueprinting dimension

Answer 25

ryanair has a strategy that is very low in divergence and low in complexity since there is less interaction betwern customer and onstage contact but more online reservation which reduce the cost for ryanair. unlike the hotels where there are lot of interactions and higher complexity

Question 26

discuss the model of bitner in which the impact of servicecape on customer and employee behavior is visualized . what type of variable determine the enviroment user relationships within service organizations

Answer 26

model variables are : ``` _physical enviroment ( tempreture, music, lightning, furniture) _internal response ( congitive, emotional, physcological) _behavior : employee( commitment, exploration) _ customer ( stay long and spend more) ```

Question 27

what types of servicescape can be distinguished within service context ? explain and give examples?

Answer 27

servicescapes are elements that customer and employees engage during the journey can be divided into 2 : physical : (external: parking and building / internal ( furniture and lightning / other tangible: business cards ) virtual : Web page / AR and VR

Question 28

why are service blueprints so important ? how can service/company managers use them?

Answer 28

blue printing is a tool that visualize the complexity of the process from a customer perspective going through 3 lines : ( line of interaction / line of visibility "on stage" / line of internal interaction " back stage") ``` blue printing is important because : _it provide a platform for innovation _recognize roles and function _facilitate strategic innovation _helps understand ideal customer experiencd ``` service marketers can use : designing servicd system and promotions managers can use: quality control/ training system/ manage fail points

Question 29

discuss the framework of service profit chain and its integrating elements? what is the main philosophy underlying this framework ?

Answer 29

service framework link the internal enviroment with external enviroment ``` internal= satisfied employees ( more productive) external= satisfied customer (loyalty) ``` both lead to profitability components of framework: quality/relationships/value/ loyalty they are all linked together

Question 30

what different role of services employees can be performed? | what are the major challenges ?

Answer 30

the role of employees is linked to service culture ( corporate culture) which is the way we do things here . culture that exist inside organization ( shared values and employees behavior inside organization) there are 3 concepts related to service culture: exhibiting: CEO should demonstrate same values as employees Developing : through trainings and programs Transporting: transporting the culture ( disney and Macdo) challenges : _when a service is provided through franchise the service would face so many issues _ the service is intangible and therefore you cannot store it. this lead to difficulties in supply and demand management.

Question 30

what different roles can service customers perform during service delivery?

Answer 30

3 levels of roles : _ productive resources : customers are partial employees because they take over some of employees roles ( transporting furniture) _ contribute to quality satisfaction: by asking questions and complaining _ competitors : they can compete with service provider ( cooking at home instead of restaurant)

Question 31

in what way can service customers increase the service performance gap ?

Answer 31

1. lack of understanding their role ( not able to install an ikea product) 2. not willing or being able to perform their role ( at fitness some customer dont know how to excersise) 3. no rewards for good performance ( no one will reward you for doing great job installing ikea product) 4. interfering with another customer ( making queue at shops)

Question 32

what types of customer involvement exist within service context

Answer 32

levels of participation: Low: low cost airline and motels ( only the presence of customer is required) moderate : haircut ( some participation is required) high: marriage consultation or personal training ( require high engagement )

Question 33

discuss the overall strategies service firms can adopt to align capacity and demand

Answer 33

there are 2 types _shift demand : used by airlines and hotels they will shit demand to match capacity (low price when no demand / full price on high demand) _adjust capacity : when hospitals use maximum capacity a lot of organization can join by sharing facilities and person / or hire extra persons temporarily.. while when there is no demand , they can send employees on trainings .

Question 34

explain the concept of revenue management, under what circumstances it is appropriate to implement revenue management? provide examples

Answer 34

revenue management is the process of allocating the right type of capacity to the right kind of customer at the right time at the right price ... so as to maximize revenue ``` it profitable when : _ fixed capacity _different market segments _low marginal cost ( extra booking cost is very low) _product sold in advance ```

Question 35

what is the impact of service recovery and what factors determine switching behavior customers within a service enviroment?

Answer 35

impact of service recovery: service recovery effects: WOM/loyalty/satisfaction recovery paradox: dissatisfaction / complain switching behavior : high prices/ found better service with competitors/ inconviniece hour or location/ ethical problem like cheating / no response to business failure.

Question 36

in what ways can customer complain and what type of complainers exist?

Answer 36

2 ways customer do not complain : ( exit / stay) customer comlain: ( negative WOM and eWOM/ third party action/ call service provider) 》 exit / stay type of complainers : passives: dont complain, dont believe in outcome voices: contact service provider and not engage in negative WOM Irates : frustrated people , they spread negative WOM Activists: firm believer of complaining , they go all the way , spread negative WOM and complain to third party

Question 37

provide a couple of characteristics of effective advertising in the case of services

Answer 37

_address service intangibility : ( tripadvisor use image to focus on tangibles and enhance WOM) _Manage service promises : ( create strong service brand ) _ managing customer expectations ( make realistic promises and offer service guarantee) _managing customer education ( improve customer education clarifying expectation after sale) _Manage internal marketing communication ( vertical and horizontal communication/blueprinting)

Question 38

what are the major challenges for developing an integrated communication plan for services marketeers ? explain in detail the diverse components of an integrated communication strategy in the case of services

Answer 38

to develop integrated communication plan the goal is to have a service delivery greater or equal to promises : _address service intangibility : ( tripadvisor use image to focus on tangibles and enhance WOM) _Manage service promises : ( create strong service brand ) _ managing customer expectations ( make realistic promises and offer service guarantee) _managing customer education ( improve customer education clarifying expectation after sale) _Manage internal marketing communication ( vertical and horizontal communication/blueprinting) communication tools : website /SEO/ Social media/ viral marketing

Question 39

explain the three basic marketing price structures and challenges for servies

Answer 39

pricing types 1. cost based pricing (minimely covering cost) . challenges : difficult to make estimation of cost / cost is not equal 2. competition based pricing ( based on competitors) . challenges: extremely difficult to compare 3. demand based pricing (based on the value that customer percieve). challenges (monetary price must be adjusted to reflect value of non monetary cost)

Question 40

what different aspects regarding pricing illustrate the typical differences between products and services

Answer 40

_dynamic pricing: flights and hotels _adapting the price: launching at low price / attracting hunters looking for discount

Question 41

what is the critical incident technique, under what circumstances and what type of problems can this method be used the best?

Answer 41

it is a typical qualitative method that learn us about the satisfaction and dissatisfaction of customers ( mention service enqounters) regarding circumstances , it can be used whenever there is a dissatisfied customer and to identify common service failure points