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Services Marketing People, Technology, Strategy 8th Edition Christopher H Lovelock, Jochen Wirtz - Solutions
1.. From the customer perspective, what serves to define value in the following services: (a) a hair salon, (b) a legal firm specializing in business and taxation law, and (c) a nightclub?
1.. Select a service organization of your choice and find out what its pricing policies and methods are. In what respects are they similar to or different from what has been discussed in this chapter?
1.. What are the six key decisions managers need to make when designing an effective pricing schedule?
1.. How can we charge different prices to different segments without customers feeling cheated? How can we even charge the same customer different prices at different times, contexts, and/or occasions, and at the same time, be seen as fair?
1.. Why are ethical concerns important issues when designing service pricing and revenue management strategies? What are potential consumer responses to service pricing or policies that are perceived as unfair?
1.. Explain the difference between physical and non-physical rate fences using suitable examples.
1.. What is revenue management, how does it work, and what type of service operations benefit most from good revenue management systems and why?
1.. Why can’t we compare competitor prices dollar-for-dollar in a service context?
1.. What is the role of nonmonetary costs in a business model, and how do they relate to the consumer’s value perceptions?
1.. How can a service firm compute its unit costs for pricing purposes? How does predicted and actual capacity utilization affect unit costs and profitability?
1.. How can the pricing tripod approach to service pricing be useful to come to a good pricing point for a particular service?
1.. Why is the pricing of services more difficult as compared to the pricing of goods?
1.. Which market entry strategy into a new international market should (1) an architectural design firm, (2) an online discount broker, and (3) a satellite TV channel consider and why?
1.. Why do consumer’s perceptions of risk play an important role in choosing between alternative service offers? How can firms reduce consumer risk perceptions?
1.. Visit the websites of the following national statistical bureaus: U.S. Bureau of Economic Analysis (www.bea.gov); Eurostat(http://ec.europa.eu/eurostat/web/national-accounts/data/database); and the respective websites for your country if they are not covered here. In each instance, obtain
1.. What are the key elements in the framework for developing effective service marketing strategies?
In what ways can you, as a consumer, help to improve productivity for at least three service organizations that you patronize? What distinctive characteristics of each service make some of these actions possible?
1.. Explain the relationships between service quality, productivity, and profitability.
1.. Why are loyalty programs often important of a customer loyalty strategy?
1.. What are the key barriers for firms to break the Cycle of Failure and move into the Cycle of Success? How should an organization trapped in the Cycle of Mediocrity proceed?
1.. Take a camera and conduct a photo audit of a specific servicescape. Photograph examples of excellent and very poor design features. Develop concrete suggestions how this environment could be improved.
1.. Visit a self-service environment and analyze how the design dimensions guide you through the service process. What do you find most effective for you, and what seems least effective? How could that environment be improved to further ease the‘way-finding’ for self-service customers?
1.. Select a bad and a good waiting experience and contrast the two situations with respect to the service environment and other people waiting.
1.. Visit a service environment, and have a detailed look around. Experience the environment and try and feel how the various design elements shape what you feel and how you behave in that setting.
1.. Identify firms from three different service industries where the service environment is a crucial part of the overall value proposition. Analyze and explain in detail the value that is being delivered by the service environment in each of the three industries.
1.. What tools are available for aiding our understanding of customer responses, and for guiding the design and improvement of service environments?
1.. What are the implications of the fact that environments are perceived holistically?
1.. What are the roles of signs, symbols, and artifacts?
1.. Explain the dimensions of ambient conditions and how each can influence customer responses to the service environment.
1.. Why can it happen that different customers and service staff respond vastly different to the same service environment?
1.. What is the relationship or link between Russell’s Model of Affect and the servicescape model?
1.. Describe how the Mehrabian–Russell Stimulus– Response Model and Russell’s Model of Affect explain consumer responses to a service environment.
1.. What are the four main purposes service environments fulfill?
1.. Give examples, based on your own experience, of a reservation system that worked really well and of one that worked really badly. Identify and examine the reasons for the success and failure of these two systems. What recommendations would you make to both firms to improve (or further
1.. Review the 10 suggestions on the psychology of waiting. Which are the most relevant in (a) a supermarket; (b) a city bus stop on a rainy, dark evening; (c) a doctor’s office; and (d) a ticket line for a football game expected to be a sell-out?
1.. Select a service organization of your choice, and identify its particular patterns of demand with reference to the checklist provided in Table 9.1 and answer: (a) What is the nature of this service organization’s approach to capacity and demand management? (b) What changes would you
1.. Identify some specific examples of firms in your community (or region) that significantly change their product and/or marketing mix in order to increase patronage during low demand periods.
1.. Explain how flexible capacity can be created in each of the following situations:(a) a local library, (b) an office-cleaning service, (c) a technical support helpdesk,(d) an Interflora franchise.
1.. How can service firms use residual service capacity after all strategies of matching supply and demand have been exhausted?
1.. What are the benefits of having an effective reservation system?
1.. How can firms make waiting more pleasant for their customers?
1.. What do you see as the advantages and disadvantages of the different types of queues for an organization serving large numbers of customers? For which type of service might each of the queuing types be more suitable?
1.. How can marketing mix elements be used to reshape demand patterns?
1.. What actions can firms take to adjust demand to match capacity more closely?
1.. How can firms identify the factors that affect demand for their services?
1.. What actions can firms take to adjust capacity to be more closely matched to demand?
1.. Why is capacity management particularly important for service firms?
1.. What is meant by productive capacity in services?
1.. Describe the building blocks for managing capacity and demand.
1.. What is the difference between ideal capacity and maximum capacity? Provide examples of a situation where (a) the two might be the same and (b) the two are different.
1.. Identify one website that is exceptionally user-friendly and another that is not.What are the factors that make for a satisfying user experience in the first instance, and a frustrating one in the second? Specify recommendations for improvements in the second website.
1.. What actions could a bank take to encourage more customers to bank by the Internet, through apps and the ATMs rather than visiting a branch?
1.. Identify three situations in which you use self-service delivery. For each situation, what is your motivation for using self-service delivery, rather than having service personnel do it for you?
1.. Observe supermarket shoppers who use self-service checkout lanes, and compare them to those who use the services of a checker. What differences do you observe?How many of those conducting self-service scanning appear to run into difficulties, and how do they resolve their problems?
1.. Review the tools and templates Coleman Associates used to redesign healthcare clinics at www.patientvisitredesign.com. How do these tools and templates map against the key learnings from this chapter. What additional insights can you gain for service process redesign in general?
1.. Think about what happens in a doctor’s office when a patient comes for a physical examination. How much participation is needed from the patient in order for the process to work smoothly? If a patient refuses to cooperate, how can that affect the process? What can the doctor do in advance
1.. Prepare a blueprint for a service you are familiar with. On completion, consider(a) the tangible cues or indicators of quality from the customers perspective, considering the line of visibility; (b) whether all steps in the process are necessary;(c) the extent to which standardization is
1.. Review the blueprint of the restaurant visit in Figure 8.6. Identify several possible“OTSUs” (“opportunity to screw up”) for each step in the front-stage process.Consider possible causes underlying each potential failure and suggest ways to eliminate or minimize these problems.
1.. How can you test whether an SST has the potential to be successful, and what can a firm do to increase its chances of customer adoption?
1.. Explain what factors make customers like and dislike self-service technologies(SSTs).
1.. Why does the customer’s role as a cocreator need to be designed into service processes?
1.. What efforts are typically involved in service process redesign?
1.. What are the four key objectives of service process redesign?
1.. Why is it necessary to periodically redesign service processes, and what are the typical symptoms of a service process that is not working well?
1.. How can consumer perceptions and emotions be considered in the design of service processes?
1.. Why is it important to develop service standards and targets?
1.. How can fail-safe methods be used to reduce service failures?
1.. What are the typical design elements of a service blueprint?
1.. How does blueprinting help us to better understand the service process from the perspective of the key actors (i.e., customers and the employees from different service departments and functional areas) in a serviced process?
1.. Conduct a Google search for (a) MBA programs and (b) vacation (holiday) resorts.Examine two or three contextual ads triggered by your searches. What are they doing right, and what can be improved?
1.. Register at Amazon.com and Hallmark.com and analyze their permission-based communications strategy. What are their marketing objectives? Evaluate their permission-based marketing for a specific customer segment of your choice —what is excellent, what is good, and what could be further
1.. Explore the websites of a management consulting firm, an Internet retailer, and an insurance company. Assess them for ease of navigation, quality of content, and visual design. What, if anything, would you change about each site?
1.. What tangible cues could a diving school or a dentistry clinic use to position itself as appealing to upscale customers?
1.. Describe and evaluate recent public relations efforts made by service organizations in connection to three or more of the following: (1) launching a new offering, (2) opening a new facility, (3) promoting an expansion of existing services, (4) announcing an upcoming event, or (5) responding
1.. Identify an advertisement that runs the risk of attracting mixed segments to a service business. Explain why this may happen, and state any negative consequences that could result.
1.. If you were explaining your current university or researching the degree program you are now in, what could you learn from blogs and any other online WOM you can find? How would that information influence the decision of a prospective applicant to your university? Given that you are an expert
1.. Discuss the significance of search, experience, and credence attributes for the communications strategy of a service provider. Assume the objective of the communications strategy is to attract new customers.
1.. Legal and accounting firms now advertise their services in many countries. Search for a few advertisements and review the following: What do these firms do to cope with the intangibility of their services? What could they do better? How do they deal with consumer quality and risk perceptions,
1.. Identify one advertisement (or other means of communications) aimed mainly at managing consumer behavior in the (a) choice, (b) service encounter, and (c) postconsumption stage. Explain how they try to achieve their objectives and discuss how effective they may be.
1.. Which elements of the marketing communications mix would you use for each of the following scenarios? Explain your answers.• A newly established hair salon in a suburban shopping center.• An established restaurant facing declining patronage because of new competitors.• A large,
1.. What are the potential ways to implement IMC?
1.. How can companies use corporate design to differentiate themselves?
1.. Why is WOM important for the marketing of services? How can a service firm that is the quality leader in its industry induce and manage word-of-mouth?
1.. Why is permission-based marketing gaining so much focus in service firms’communications strategies?
1.. What are the different forms of online marketing? Which do you think would be the most effective online marketing strategies for (a) an online broker and (b) a new high-end club in Los Angeles?
1.. What roles do personal selling, advertising, and public relations play in (a)attracting new customers to visit a service outlet and (b) retaining existing customers?
1.. Why is the marketing communications mix larger for service firms compared to firms that market goods?
1.. What are some challenges in service communications and how can they be overcome?
1.. What can you learn from the Service Marketing Communications Funnel?
1.. In what ways do the objectives of services communications differ substantially from those of goods marketing? Describe four common educational and promotional objectives in service settings, and provide a specific example for each of the objectives you list.
1.. Who are the three broad target audiences of service communications?
1.. What are the 5 Ws along which the Integrated Service Communications Model is structured?
1.. Consider a service of your choice, and develop a comprehensive pricing schedule.Apply the six questions marketers need to answer for designing an effective pricing schedule.
1.. Explore two highly successful business models that are based on innovative service pricing and/or revenue management strategies, and identify two business models that failed due to major issues in their pricing strategy. What general lessons can you learn from your analysis?
1.. Collect the pricing schedules of three leading cell phone service providers.Identify all the pricing dimensions (e.g., airtime, subscription fees, free minutes, per second/6 seconds/minute billing, airtime and data rollover plans) and pricing levels for each dimension (i.e., the range offered
1.. How might revenue management be applied to (a) a professional service firm (e.g., a law firm), (b) a restaurant, and (c) a golf course? What rate fences would you use and why?
1.. Review recent bills you have received from service businesses, such as those for telephone, car repair, cable TV, and credit cards. Evaluate each one against the following criteria: (a) general appearance and clarity of presentation, (b) easily understood terms of payment, (c) avoidance of
1.. From the customer perspective, what serves to define value in the following services: (a) a hair salon, (b) a legal firm specializing in business and taxation law, and (c) a nightclub?
1.. Select a service organization of your choice and find out what its pricing policies and methods are. In what respects are they similar to or different from what has been discussed in this chapter?
1.. What are the six key decisions managers need to make when designing an effective pricing schedule?
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