SECTION A [25 Marks]

Read the following and Answer the questions that follow:

a) It is said that in the case of goods, production and consumption do not happen at the same time. However, in the case of service these do happen at the same time and there is need to manage this very carefully. Therefore, in managing simultaneity the Web allows service marketers to use the following features:

Customization; Managing the customer as a part time employee; Innovation as part of customer participation; Service industrialization; and Reducing customer errors.

Discuss any four (4) of the features as given above, that the Web allows service marketers to use. (20 marks).

b) Briefly explain what electronic commerce mean. (5 marks)

SECTION B [25 Marks]

a) Discuss the three (3) major effects that electronic commerce has on distribution. (15 marks)

b) Service is often differentiated from products, and the four (4) distinct service features that distinguish service from products are: intangibility; simultaneity; heterogeneity; and perishability.

Explain what service is and briefly discuss the four (4) features given above that differentiate service from product. (10 marks