test 4

Question 1

Services marketing triangle communication activities (3)

Answer 1

Internal Marketing Communications
Interactive Marketing
External Marketing Communications

Question 2

Internal Marketing

Answer 2

Vertical/Horizontal communications within the business

Question 3

Interactive Marketing

Answer 3

Involves personal selling, Service encounters, social media, servicescapes

Question 4

External Marketing Communicaitons

Answer 4

Involves advertising, sales promotion, public relations

Question 5

Five approaching to overcoming service communication channels

Answer 5

1. Address service intangibility
2. Manage service promises
3. Manage customer expectations
4. Manage customer education
5. Manage internal marketing communications

Question 6

How to manage service intangibility

Answer 6

x

Question 7

How to manage customer expectations

Answer 7

Make realistic promises
Offer service guarantees
Offer choices
Create tiered value service offerings (car companies)
Communicate the criteria and levels of service effectiveness

Question 8

How to manage service promises

Answer 8

1. Create a strong service brand

2. Coordinate external communication

Question 9

Managing customer education

Answer 9

1. Prepare customers for the service process
2. Confirm performance to standards and expectations
3. Clarify expectations after the sale

Question 10

Managing internal marketing communcations

Answer 10

Promote the brand inside the company
Create effective upward communication
Create cross functional teams
Create effective vertical/horizontal communications

Question 11

Best ways to close communication gap

Answer 11

1. Employing integrated service marketing communication strategies around everything and everyone that sends a message or signal.
2. Manage customer expectations effectively throughout the experience.
3. Make sure to avoid over-promising and ensure successful delivery.

Question 12

Strategies for managing customer expectations?

Answer 12

1. Make realistic promises
2. Offer service guarantees
3. Offer choices
4. Teired value service offerings (Cars offering better features for more money) j8u

Question 13

Why do customers often lack knowledge of service prices?

Answer 13

1. Service variability
2. Providers unwilling to provide prices
3. Individual customer needs vary
4. Collection of price information by customers is difficult
5. Prices are not visible

Question 14

What are four nonmonetary costs involved in pricing

Answer 14

Time costs, Search costs, Convivence costs, psychological costs

Question 15

Role between price and service quality?

Answer 15

The higher the price, the higher quality that is inferred

Question 16

What are three basic marketing price structures?

Answer 16

Competition based, Cost based, demand based

Question 17

cost based price structures and challenges

Answer 17

Widely used by contracting, wholesaling, and advertising firms. Direct costs + overhead costs + Profit margin is how they arrive at price.

Challenges: 350 suit jacket and 20 dollar pants are both $10 because both jobs require the same amount of time. This does not make sense to a consumer who may even be happy if the cost wasn’t 10 and was instead 30

Question 18

How do consumers define value?

Answer 18

Mental tradeoff of perceived quality and perceptions of sacrifice

Question 19

What are the four customer definitions of value?

Answer 19

1. Value is low price
2. Value is everything I want in a product or service
3. Value is the quality I get for the price I pay
4. Value is what I get for what I give

Question 20

Relationship between service quality and profitability?

Answer 20

Commitment to quality service increases profitability

Question 21

ACSI scores for service industries? other industries?

Answer 21

Average for all industries - 74.4

Service industries - mid to low 60s

Question 22

Reasons customer satisfaction has declined?

Answer 22

Increasing use of self service
Complexity of self use services
Cost cutting leads to understaffed services
quality service isn’t easy
-Talented people get promoted and less talented are frontline workers
Promises of quality service, but workers aren’t paid what they deserve

Question 23

What are the positive effects of offensive marketing?

Answer 23

Higher market share, reputation and charging price premiums. (need to have a very good service for this to work)

Question 24

What is defensive marketing?

Answer 24

Keeping customers that a firm already has

Question 25

Competition based pricing and challenges

Answer 25

This focuses on the prices charged by other firms in the same industry. (Dry cleaning, rental cars)

Challenges: Some smaller firms cannot charge the same as bigger services and stay in business. Prices may not reflect customer value either.

Question 26

Demand based pricing and challenges

Answer 26

This involves setting prices based on what customers will pay for the services (willing to pay however much for a surgery if a loved one needs it)

Challenges: 1. Monetary prices must be adjusted to reflect value of nonmonetary prices
2. Information on service costs is less available to customers so price may not be a central factor

Question 27

“Value is low price” pricing strategy

Answer 27

Discounting,
Odd pricing (charging just below exact dollar amount 19.99, 10.98, etc)
Synchro-pricing
Penetration pricing (new services introduced at low price)

Question 28

“Value is everything I want in a service” pricing strategy

Answer 28

Prestige pricing (high quality or status services) 
Skimming (introducing new service at high prices)

Question 29

“Value is the quality I get for the price I pay” pricing strategy

Answer 29

Value Pricing (giving more for less) (southwest airlines)
Market Segmentation pricing (A service market charges different prices to groups of customers for what are perceived to be different levels of service)