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Service Marketing III


Assignment 1
Q1. List the four characteristics of service and discuss how each
would impact the marketing of a chain of fitness centers that is
being started by six former Olympic athletes.
Answer: Services are very different from the products and so as their
marketing elements. Because of their unique features it is important to
understand the type and different elements of that service before going
into market.
The four important characteristics of services are following:


For marketing any service these points are taken into consideration. In the
following section how these points are considered for marketing a chain of
fitness center
a) Intangibility: Intangibility is a characteristic of service indicating that
it is has no physical attributes & as a result impossible for a
customer to test, feel or smell before buying it thus in most
cases services are bought on trust. So in this case the trust factor
will be the founders accomplishments. The image of Olympic
athletes should be highlighted in the marketing campaigns. Other
points are relation with some tangible evidence. In this case the
health benefits that the consumers will receive after joining the
fitness center will provide the tangible evidence mentioned above.
b) Inseparability: Inseparability is characteristic of services.
Including that it cannot be separated from the creator seller of the
product. Many services are created delivered & consumed
simultaneously through interaction between customer and services
product e.g. - dental care by a dentist. In most of the case the
customer receives and consumes the services at the service
producer premises, so called the services factory. In this case the
equipments and the consultancy will be provided the gym itself
means the service production and consumption will be at the same
place. So presence of good and latest machines along with the
skilled trainers will lead to good image of the center. The
expectation of the customers is high in this case because of the

founders image. So meeting those expectations is necessary for the

c) Perishability: Services cant be stored for the future use. They cant
be inventoried. For example, a vacant seat in the plane for Delhi to
Lucknow cant be used after the departure of the plane. Similarly in
the above mentioned case the trainers time and the consultancy
provided are perishable. If one day the trainer has no consumers his
time cant be recovered. It is a loss for the center. The revenues will
be affected because of not utilization of services.
d) Variability: Variability is attached with the services more than the
products. For different customers services may be customized but in
case of products it is not possible. In this above case for example
the trainer will teach different exercises to the customers based on
their needs. But the pattern should be same in cases of chains. For
standalone stores it is good but for store chains it is harmful. The
best example is McDonalds. They have standardized their service in
all stores using production line approach. For the above case the
founders should deliver same type of services in all centers so that
the expectation of the customers is met and they are not
Q2. An airline is concerned with whether its passengers are
satisfied with how their luggage is handled before, during and
after a flight. With which element of the services marketing mix is
the airline concerned? Explain
The marketing mix of the services is different than the products. There are
four Ps of product marketing but in case of services 3 more Ps are added.
The 7 Ps of service marketing are following:

Physical evidence

In the above mentioned case the Process element is under

consideration. The airline is concerned about the satisfaction level of the
customers for luggage handling process. If the customers luggage is
mishandled then this will affect the image of the airline.

Q3. How should you explain to a friend that there is more

perceived risk with the purchase of a wedding reception caterer
for your wedding than for the diamond engagement ring?
Both the above mentioned things have different aspects to look for. For
the diamond ring it is important that the beauty of ring should stay for a
longer period. At the time of purchase the customer can analyze the
quality and designs of the ring on the store and accordingly buy that so
the risk in purchase is low but in case of caterer it is impossible to check
the quality and taste of the food at the time of booking. It all depends on
the image of that caterer in the market. So the risk is very high. In ring
purchase the risk is the diamond may not stay shinier for a longer period
as promised but in the case of caterer hiring the risk associated is more.
There is no 100% surety that the food prepared will have the same level of
taste and quality as promised. Anything can happen in on the wedding

Q4. Jazz wants to have her near-sightedness corrected through

laser surgery. She has consulted with two physicians that
specialize in the field. Both seem to be highly qualified and
respected in the medical profession. The first one she saw had a
cluttered waiting room with plastic covered furniture, tile
flooring, striped paper on the walls and music broadcast from a
local soft rock station. The second waiting area was painted a
soft, muted green colour, had three large aquariums with
gorgeous fish swimming in each, comfortable furniture and soft
background music. Given the laser surgeons have equal abilities,
which do you think Jazz will use. Why?
In the case of service industry presentation and external factors plays
very important role. These are teamed up in Physical evidence. Jazz
will chose the second surgeon as the environment of his clinic is much
more attractive and in terms of hygiene much more hygienic than the first
one. Neat and clean hospitals are considered good than the others so with
the same mentality Jazz will chose the second clinic as the physical
evidences suggest that he will get a quality treatment there.

Q5. Provide an example of a service industry where customers are

involved in co-production and explain the implications and
marketing-related tasks that would be associated with that
We can take example of education industry. Co production means the
provider and the consumers are at the same place and time and service is

delivered and consumed simultaneously. In the example the teachers

delivers the lecture and students gain knowledge from that. For this
knowledge they pay the fee to the teacher.
In this case if the consumer is unaware of his role then the purpose will
not be satisfied. If student is unwilling to learn and not paying attention in
the class he wont be able to grasp the knowledge given by the lecturer.
So market-related tasks are to make aware the customer about the quality
of the services provided and make the consumers aware about their roles
in the co-production.

Q6. Explain how the core product, supplementary services, and

delivery processes are integrated in the context of an overnight
hotel stay.
In context of an overnight hotel stay the core product, supplementary
services and delivery processes will be following:
Core product: A private room with bathroom for the stay
Supplementary services: the additional services that consumers get when
they consume the core service. In this case

Special parking area

Room service
Wake up call service
Luggage service
Free Breakfast
Cable TV

Delivery process: the process used to deliver the core product. In this case
booking the room online, greeting with customers with a smile etc.
Q7. Discuss the impacts of the competition globalization driver on
people processing, possession processing, and information-based
service categories. Give at least one example of a firm that falls
into each category.
People processing: These involve the consumers participation as a part
of production process. For example Dells Direct system where consumers
are encouraged to customize systems that fit to their needs. The impact
of globalization is that the companies have learned from one market and
applied to the other. This way they have created the consistency in
service industry also like the products. Example: The service centers of
Apple Company have the same interior design all over the globe.
Possession Processing Services: Possession processing don not
require customer participation in the production process itself but that
services are enhanced at the time of delivery. For example Automobile

services can pick the customers at the designated time and place. For
these services, the lead role of technology creates the driver for
competitors with a technical edge. The impact is the extension in the
services for example; Dell used parts produced in different countries and
assembles them in one place.
Information-based service: These kinds of services involve collecting,
interpreting, transmitting data and information on behalf of the target
customers. The best example for this is our NEWS channels. Due to
globalization they have connected the world and the consumer base has
increased many folds.