Note : Question No. 1 is of short answer type and is compulsory for all the students.
It carries 5 Marks. (Word limits 50-100)
Q.1 Answer all the questions.
(I) Define services.
Ans. A service is an act or performance offered by one party to another. They are economic activities that create value and provide benefits for customers at specific times and places as a result of bringing desired change.
According to Sir William B “Service refers to social efforts which includes the Govt. to fight five giant evils – wants, disease, ignorance, squalor and illness in the society”.
(II) What do you mean by lasting service intensifier?
Ans. Lasting service intensifier s are individual stable factors that lead the customer to a heightened sensitivity to service. Most important of these factors is derived service expectations which means expectations driven by another person or group of people and.personal service philosophy which means customers underlying generic attitude about the meaning of service and the proper conduct of service providers.
(III) What is the meaning of derived service and customer service.
Ans. Derived services are the value derived from physical goods is really the service provided by the goods, not the good itself. All products and physical goods are valued for the service they provide.
Customer service is the service provided in support of the company’s core product. These services are not usually charged.
(IV) What is meant by emotional labour?
Ans. Arlie Hochschild created the term ’emotional labor’ in 1983 to describe the things that service workers do that goes beyond physical or mental duties. Showing a genuine concern for customers’ needs, smiling, and making positive eye contact are all critical to a customer’s perception of service quality. These types of activities, when they’re essential to worker performance, are emotional labor.
When you face angry clients, or people who are generally unpleasant, emotional labor can be particularly challenging. A large part of that challenge comes from the need to hide your real emotions, and continue to ‘smile and nod your head,’ even when receiving negative or critical feedback.
(V) Enlist any four challenges faced by service organizations as compared to goods producer.
Ans. Challenges faced by service organizations as compared to goods producer are:-
· No Inventory
· Difficult Valuation
· Demand Cutback
Note: Answer any two questions. Each question carries 5 marks (Word limits 500)
Q.2 Discuss the GAP’s model of service quality.
Ans. The gap model (also known as the “5 gaps model”) of service quality is an important customer-satisfaction framework. In “A conceptual model of service quality and its implications for future research” , A. Parasuraman, VA Zeitham and LL Berry identify five major gaps that face organizations seeking to meet customer’s expectations of the customer experience.
The five gaps that organizations should measure, manage and minimize:
- Gap 1 is the distance between what customers expect and what managers think they expect – Clearly survey researchis a key way to narrow this gap.
- Gap 2 is between management perception and the actual specification of the customer experience– Managers need to make sure the organization is defining the level of service they believe is needed.
- Gap 3 is from the experience specification to the delivery of the experience – Managers need to audit the customer experience that their organization currently delivers in order to make sure it lives up to the spec.
- Gap 4 is the gap between the delivery of the customer experience and what is communicated to customers – All too often organizations exaggerate what will be provided to customers, or discuss the best case rather than the likely case, raising customer expectations and harming customer perceptions.
- Finally, Gap 5 is the gap between a customer’s perception of the experience and the customer’s expectation of the service – Customers’ expectations have been shaped by word of mouth, their personal needs and their own past experiences. Routine transactional surveysafter delivering the customer experience are important for an organization to measure customer perceptions of service.
Each gap in the customer experience can be closed through diligent attention from management. Survey software can be key to assisting management with this crucial task.
Q.4 “Market segmentation is important for target markets and target markets are important for product positioning.” Elaborate this statement with examples.
Ans. Market segmentation is important for target markets and target markets are important for product positioning because it: –
- Facilitates consumer-oriented marketing: Market segmentation facilitates formation of marketing-mix which is more specific and useful for achieving marketing objectives. Segment-wise approach is better and effective as compared to integrated approach for the whole market.
- Facilitates introduction of suitable marketing mix: Market segmentation enables a producer to understand the needs of consumers, their behavior and expectations as information is collected segment-wise in an accurate manner. Such information is purposefully usable. Decisions regarding Four Ps based on such information are always effective and beneficial to consumers and the producers.
- Facilitates introduction of effective product strategy: Due to market segmentation, product development is compatible with consumer needs as there is effective crystallisation of the specific needs of the buyers in the target market. Market segmentation facilitates the matching of products with consumer needs. This gives satisfaction to consumers and higher sales and profit to the marketing firm.
- Facilitates the selection of promising markets: Market segmentation facilitates the identification of those sub-markets which can be served best with limited resources by the firm. A firm can concentrate efforts on most productive/ profitable segments of the total market due to segmentation technique. Thus market segmentation facilitates the selection of the most suitable market.
- Facilitates exploitation of better marketing opportunities: Market segmentation helps to identify promising market opportunities. It helps the marketing man to distinguish one customer group from another within a given market. This enables him to decide his target market. It also enables the marketer to utilise the available marketing resources effectively as the exact target group is identified at the initial stage only.
- Facilitates selection of proper marketing programme- Market segmentation helps the marketing man to develop his marketing mix programme on a reliable base as adequate information about the needs of consumers in the target market is available. The buyers are introduced to marketing programme which is as per their needs and expectations.
- Provides proper direction to marketing efforts: Market segmentation is rightly described as the strategy of “dividing the markets in order to conquer them”. Due to segmentation, a firm can avoid the markets which are unprofitable and irrelevant for its marketing purpose and concentrate on certain promising segments only. Thus due to market segmentation, marketing efforts are given one clear direction for achieving marketing objectives.
- Facilitates effective advertising: Advertising media can be more effectively used because only the media that reach the segments can be employed. It makes advertising result oriented.
- Provides special benefits to small firms: Market segmentation offers special benefits to small firms. The resources available with them are limited as they are comparatively new in the market. Such firms can select only suitable market segment and concentrate all efforts within that segment only for better marketing performance. Such firms can compete even with large firms by offering personal services to customers within the segment selected.
- Facilitates optimum use of resources: Market segmentation facilitates efficient use of available resources. It enables a marketing firm to use its marketing resources in the most efficient manner in the selected target market. The marketing firm selects the most promising market segment and concentrates all attention on that segment only. This offers best results to the firm in terms of sale, profit and consumer support as compared to the results available from spending such resources on the total market.