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business
services marketing concepts
Services Marketing People Technology Strategy 8th Edition Wirtz, Jochen;Lovelock, Christopher - Solutions
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, single-offi ce
What are the potential ways to implement IMC?
How can companies use corporate design to diff erentiate themselves?
Why is WOM important for the marketing of services? How can a service fi rm that is the quality leader in its industry induce and manage word-ofmouth?
Why is permission-based marketing gaining so much focus in service firms’ communications strategies?
What are the diff erent forms of online marketing?Which do you think would be the most eff ective online marketing strategies for (a) an online broker and (b) a new high-end club in Los Angeles?
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?
Why is the marketing communications mix larger for service fi rms compared to fi rms that market goods?
What are some challenges in service communications and how can they be overcome?
What can you learn from the Service Marketing Communications Funnel?
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 specifi c example for each of the objectives you list.
Who are the three broad target audiences of service communications?
What are the 5 Ws along which the Integrated Service Communications Model is structured?
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.
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?
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 by
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?
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
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?
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?
What are the six key decisions managers need to make when designing an eff ective pricing schedule?
How can we charge diff erent prices to diff erent segments without customers feeling cheated? How can we even charge the same customer diff erent prices at diff erent times, contexts, and/or occasions, and at the same time, be seen as fair?
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?
Explain the diff erence between physical and nonphysical rate fences using suitable examples.
What is revenue management, how does it work, and what type of service operations benefi t most from good revenue management systems and why?
Why can’t we compare competitor prices dollarfor-dollar in a service context?
What is the role of nonmonetary costs in a business model, and how do they relate to the consumer’s value perceptions?
How can a service fi rm compute its unit costs for pricing purposes? How does predicted and actual capacity utilization aff ect unit costs and profi tability?
How can the pricing tripod approach to service pricing be useful to come to a good pricing point for a particular service?
Why is the pricing of services more diffi cult as compared to the pricing of goods?
Select a service brand you consider to be outstanding.Explain why you think it is outstanding. Also explore any weaknesses of this brand. You should select an organization you are very familiar with.LO1 What? How? Where? When? Responses to these four questions form the foundation of any service
Identify two failed new service developments.Analyze the causes for their failure.
Using a fi rm you are familiar with, analyze what opportunities it might have to create product line extensions for its current and/or new markets. What impact might these extensions have on its present services?
Select a service fi rm you believe is highly successful and has strong brand equity. Conduct a few interviews to fi nd out how consumers experience its service.From the fi ndings, identify the factors that helped that service fi rm to build strong brand equity.
Identify two examples of branding in financial services (e.g., specifi c types of retail bank accounts or insurance policies), and defi ne their characteristics.How meaningful are these brands likely to be to customers?
Select a specifi c service product you are familiar with and identify its core product and supplementary services. Then, select a competing service and analyze the diff erences in terms of core product and supplementary services between the two services.
Why do new services often fail? What factors are associated with successful development of new services?
What are the approaches fi rms can take to create new services?
What is meant by using brands to tier service products?
How can service fi rms build brand equity?
How is branding used in services marketing? What is the distinction between a corporate brand such as Marriott and the names of its various inn and hotel chains?
What is the difference between enhancing and facilitating supplementary services? Give several examples of each, relative to services you have used recently.
Explain the Flower of Service concept and identify each of its petals. What insights does this concept provide for service marketers?
Explain what is meant by core product and supplementary services.
Choose an industry you are familiar with (such as cell phone service, credit cards, or online music stores), and create a perceptual map showing the competitive positions of diff erent service providers in that industry. Use attributes you believe are determinant attributes. Identify gaps in the
Imagine you have been hired as a consultant to give advice to The Palace Hotel. Consider the options for the hotel based on the four attributes in the positioning charts (Figures 3.8). What actions do you recommend The Palace take? Explain your recommendations.
Travel agencies are losing business to passengers booking their fl ights directly on airline websites.Identify possible focus options open to travel agencies wishing to develop new lines of business that would make up for the loss of airline ticket sales.
Find examples of companies that illustrate the four focus strategies discussed in this chapter.
Provide two examples of service firms that use service levels (other than airlines, hotels, and car rentals) to diff erentiate their products. Explain the determinant attributes and service levels used to diff erentiate the positioning of one service from another?
Select a company of your choice. Identify the variables that the company has used to segment their customers. Support your answers with examples from the company.
Describe what is meant by positioning strategy and how do the market, customer, internal, and competitive analyses relate to positioning strategy?
How can positioning maps help managers better understand and respond to competitive dynamics?
What are the six questions for developing an eff ective positioning strategy?
Why should service firms focus their efforts?Describe the basic focus strategies, and give examples of how these work.
How are service levels of determinant attributes related to positioning services?
What is the distinction between important and determinant attributes in consumer purchase decisions?
In segmentation, what are the most common bases to use? Provide examples for each of these bases.
What are the elements of a customer-driven services marketing strategy?
Describe an unsatisfactory encounter you experienced recently with (a) a low-contact service provider via email, mail, or phone and (b) a high–contact, face-to-face service provider. What were the key drivers of your dissatisfaction with these encounters? In each instance, what could the service
Describe a low-contact service encounter respectively via email and via phone, and a highcontact, face-to-face encounter that you had recently. How satisfi ed were you with each of the encounters? What were the key drivers of your overall satisfaction with these encounters? In each instance, what
How can a fi rm design perceived control into a service encounter? Apply it to one face-to-face encounter and one online encounter.
Apply the script and role theories to a service of your choice. What insights can you gain that would be useful for management?
Visit the facilities of two competing service fi rms in the same industry (e.g., banks, restaurants, or gas stations) that you believe have diff erent approaches to service. Compare their approaches using suitable frameworks from this chapter.
What roles are played by front-stage service employees in low-contact organizations? Are these roles more or less important to customer satisfaction than in high-contact services?
What are the back-stage elements of (a) a car repair facility, (b) an airline, (c) a university, and(d) a consulting fi rm? Under what circumstances would it be appropriate or even desirable to allow customers to see some of these back-stage elements, and how would you do it?
Develop a simple questionnaire designed to measure the key components of customer expectations (i.e., desired, adequate and predicted service, and the zone of tolerance). Conduct 10 interviews with key target customers of a service of your choice to understand the structure of their
Select three services: one high in search attributes, one high in experience attributes, and one high in credence attributes. Specify what product characteristics make them easy or difficult for consumers to evaluate, and suggest specifi c strategies that marketers can adopt in each case to
Construct a multi-attribute model to compare three diff erent restaurants for an important celebration in your family. Apply the two diff erent decision rules and determine the choices that arise from that.
How can you measure service quality?
What are the fi ve dimensions of service quality?
What is service quality? How is it diff erent from customer satisfaction?
Describe the relationship between customer expectations and customer satisfaction.
How do the concepts of theater, role theory, and script theory help to provide insights into consumer behavior during the service encounter?
Choose a service you are familiar with, and create a diagram that represents the servuction system.Defi ne the “front-stage” and “back-stage” activities.
Describe the diff erence between high-contact and low-contact services, and explain how the nature of a customer’s experience may diff er between the two.
What are “moments of truth”?
How are customers’ expectations formed? Explain the diff erence between desired service and adequate service with reference to a service experience you’ve had recently.
Why do consumer’s perceptions of risk play an important role in choosing between alternative service off ers? How can fi rms reduce consumer risk perceptions?
Explain why services tend to be harder for customers to evaluate than goods.
Describe search, experience, and credence attributes, and give examples of each.
What is the difference between the linear compensatory rule and the conjunctive rule?
How can customer choice between services in their consideration set be modeled?
Explain the three-stage model of service consumption.
Explain how concepts in Chapter 1 are relevant to the marketing of a religious institution, or a nonprofi t organization such as World Wildlife Fund.
Choose a service company you are familiar with, and show how each of the 7 Ps of services marketing applies to one of its service products.
Give exampl e s of how Int e r ne t and telecommunications technologies (e.g., mobile commerce (M-Commerce) and apps) have changed some of the services you use.
Review IBM’s annual report, www.ibm.com/annualreport, recent quarterly reports, www.ibm.com/investor, and other information on its website describing its diff erent businesses. What conclusions do you draw about future opportunities in diff erent markets? What do you see as competitive threats?
Legal and accounting firms now advertise their services in many countries. Search for a few advertisements and review the following: What do these fi rms do to cope with the intangibility of their services? What could they do better? How do they deal with consumer quality and risk perceptions,and
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 data on
What are the key elements in the framework for developing eff ective service marketing strategies?
What are the implications of the Service–Profi t Chain for service management?
Why do the marketing, operations, HR management, and IT functions need to be closely coordinated in service organizations?
What types of services do you think are (a) most aff ected and (b) least aff ected by the problem of variable inputs and outputs? Why?
“The 4 Ps are all a marketing manager needs to create a marketing strategy for a service business.”Prepare a response that argues against this, and support it with examples.
What is so special about services marketing that it needs a special approach?
Describe the four broad “processing” categories of services, and provide examples for each.
“A service is rented rather than owned.” Explain what this statement means, and use examples to support your explanation.
Why would growth in business services help individual fi rms and entire economies become more productive?
Is it possible for an economy to be almost entirely based on services? Is it a sign of weakness when a national economy manufactures few of the goods that it consumes?
What are the fi ve powerful forces transforming the service landscape, and what impact do they have on the service economy?
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