Service Marketing Important Questions: 2 Mark:: Zone of Tolerance
Service Marketing Important Questions: 2 Mark:: Zone of Tolerance
2 mark:
1. Zone of Tolerance: This refers to the range within which customers are
willing to accept variations in service quality. If a service falls within this
range, customers will generally be satisfied.
2. Service Standard: These are specific performance benchmarks or rules
that guide the delivery of services, ensuring consistent and expected
levels of service quality.
3. Service scape: This is the physical environment in which a service
process takes place, including all the visible and ambient factors that can
influence customer perceptions, like layout, lighting, and atmosphere.
4. Service Culture: It refers to the organizational culture that emphasizes
providing high-quality service and ensuring a positive customer
experience. Employees are encouraged and empowered to put the
customer first.
5. Role of Service Employees: Service employees are vital because they
interact directly with customers. Their performance, attitude, and
behavior significantly affect the service experience and overall customer
satisfaction.
6. Capacity Constraints: These refer to limitations in resources (staff,
equipment, space) that prevent an organization from meeting demand at
certain times, leading to potential service delays or quality issues
7. Yield Management: A pricing strategy aimed at maximizing revenue
through dynamic pricing, where prices are adjusted based on demand
and customer behavior to fill capacity.
8. Synchro Pricing: This involves setting prices to align with demand
patterns, using strategies like peak-time pricing to balance demand with
available service capacity.
9. Waiting Line Strategies: These are methods for managing customer wait
times, such as by providing entertainment, transparency about wait
durations, or offering alternatives like virtual queues to reduce perceived
waiting times.
10.Service Blueprint: A detailed map or flowchart showing each step in the
service delivery process, highlighting interactions between customers
and employees, as well as support processes behind the scenes.
11.Customer - Role as Competitor: In some services, customers can
perform tasks themselves instead of relying on service providers,
essentially competing with the service firm (e.g., self-checkout in stores).
12.Radical Innovation vs Incremental Innovation: Radical innovation
involves creating entirely new services or service delivery methods, while
incremental innovation refers to small, ongoing improvements in existing
services.
13.Consumer Research: This involves studying consumer behavior,
preferences, and satisfaction to better tailor services to meet their
needs. It can include analyzing service expectations and perceptions.
14.People and Process: In services, "people" refers to employees involved
in the service delivery, while "process" encompasses the procedures and
flow of activities that ensure the service is provided efficiently and
effectively.
8 mark:
1.services marketing mix
Product
• Intangibility: Services are experiences, not physical objects. They are consumed rather than
owned.
• Inseparability: Services are typically produced and consumed simultaneously. The quality of
the service depends on the interaction between the service provider and the customer.
• Variability: Services can vary in quality, depending on the service provider, the customer, and
other factors. Consistency is a challenge in service marketing.
• Perishability: Services cannot be stored for later consumption. Once a service is delivered,
it's gone.
Example: A hotel's service includes accommodation, dining, and amenities. The quality of
the service depends on factors like the cleanliness of the rooms, the friendliness of the staff,
and the variety of food options.
Price
• Value Perception: Customers are willing to pay more for services they perceive as valuable.
• Pricing Strategies: Various pricing strategies can be used, such as cost-plus pricing, value-
based pricing, and competitive pricing.
• Psychological Pricing: Techniques like odd pricing (e.g., $9.99 instead of $10) can influence
customer perceptions of value.
Example: A luxury spa might charge a premium price for its services, emphasizing the
exclusivity and high-quality experience.
Place (Distribution)
Promotion
People
• Employee Training: Well-trained and motivated employees are essential for delivering high-
quality service.
• Customer Service: Excellent customer service is crucial for building customer loyalty and
satisfaction.
Example: A customer service representative at a hotel can make or break a customer's
experience by being helpful, friendly, and efficient.
Process
Physical Evidence
• Tangible Cues: Physical evidence can help customers perceive the quality of a service.
• Branding: Consistent branding can create a strong impression and build trust.
Example: A luxury hotel might use high-quality linens, elegant decor, and branded amenities
to create a luxurious atmosphere.
6.service encounters
Remote Encounters
• Definition: These encounters occur without direct human contact, often mediated by
technology.
• Examples: ATMs, online banking, mail-order services, automated phone systems, billing
statements.
• Quality Factors: Tangible evidence (e.g., website design, packaging) and the quality of the
technical process (e.g., system reliability, ease of use).
Example: A customer orders a product online from a retailer. The quality of the encounter is
influenced by the website's user-friendliness, the accuracy of product information, and the
speed of delivery.
Phone Encounters
Face-to-Face Encounters
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1. Facilitating Transactions:
o Intermediaries such as agents, brokers, and wholesalers help facilitate
transactions between service providers and customers, making the
distribution process more efficient.
2. Market Access:
o Intermediaries provide service providers access to broader markets and
customer segments. They leverage their networks and expertise to reach
customers that may be difficult for service providers to access directly.
3. Specialization:
o Intermediaries often have specialized knowledge and skills in their areas,
allowing them to offer expertise that enhances the distribution process. For
example, travel agents have in-depth knowledge of travel options and can
provide tailored recommendations.
4. Risk Reduction:
o By acting as a buffer between service providers and customers,
intermediaries help reduce risk for both parties. They can manage
uncertainties related to demand fluctuations, pricing, and service delivery.
5. Efficiency in Logistics:
o Intermediaries can streamline logistics and distribution by managing the
storage, transportation, and inventory of services. This can lead to cost
savings and improved service delivery times.
Role of Electronic Channels:
24/7 Availability:
• Electronic channels, like websites and mobile apps, provide customers with the
ability to access services anytime and from anywhere, enhancing convenience.
Cost-Effectiveness:
• Utilizing electronic channels can reduce operational costs by minimizing the need
for physical infrastructure and personnel, making it a cost-effective solution for
service providers.
Direct Customer Interaction:
• These channels facilitate direct communication between service providers and
customers, allowing for real-time support, feedback, and engagement.
Personalization:
• Electronic platforms enable the collection of customer data, which can be used to
personalize services and improve customer experiences.
Wider Reach:
• Electronic channels break down geographical barriers, allowing service providers to
expand their market reach and engage with customers globally(unit 4.pptx).
Employees are the cornerstone of service delivery. They are the face of the organization, the brand,
and the marketers. Their interactions with customers directly influence the customer experience and
satisfaction.
• They are the service: Employees are the primary actors in delivering the service. Their
behavior, knowledge, and skills directly impact the quality of the service.
• They are the organization in the customers’ eyes: Customers form their perceptions of the
organization based on their interactions with employees.
• They are the brand: Employees represent the brand and contribute to its reputation.
• They are the marketers: Employees can market the service through their interactions with
customers, building relationships and promoting the organization.
Employee satisfaction and customer satisfaction: There is a strong correlation between employee
satisfaction and customer satisfaction. Satisfied employees are more likely to provide excellent
customer service, leading to higher customer satisfaction and loyalty.
• Hire the right people: Select employees who are passionate about customer service and
align with the organization's values.
• Retain the best people: Offer competitive compensation, benefits, and a positive work
environment to retain top talent.
• Provide a support system: Ensure employees have the necessary resources, tools, and
support to perform their jobs effectively.
Customers are not passive recipients of services; they actively participate in the service delivery
process. Their behavior and actions can significantly influence the quality of the service.
2. Customer as a Contributor to Quality: Customers can contribute to the quality of the service
by providing feedback, suggestions, and participating in co-production activities. For
example, a customer suggesting improvements to a product or service.
3. Customer as a Competitor: In some cases, customers may have the ability to produce the
service themselves, either partially or completely. This can make them potential competitors
to the service provider.