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Marketing Of Services(Mktg 333) Question Paper
Marketing Of Services(Mktg 333)
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2011
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions
ABC LTD: LISTENING TO CUSTOMERS
When an airline has a young fleet, experienced pilots, attentive cabin crew and the pickiest ground technicians in the world, it is free to concentrate on what is really important:
So runs an ABC Airline ad.
A decade ago, this airline company could never make such claims to offering the customer its undivided attention and care. Today, it is taking great pride in its newly earned reputation – not just quality, but also for being a good listener! It has learnt that superior quality service pays off and most importantly, that doing what the customer wants is the key to customer attention.
In the early 1990s ABC conducted on of the most comprehensive passenger surveys ever carried out. It surveyed some 3000 business travellers who fly with them or other airlines. It is not so much the survey results that are not worthy, but ABC’s response to what business customers want.
Top of the list of wants for a better flight for business customers was more leg-room and elbow-room, followed in 3rd and 4th places by designated lounges and non-smoking aircraft. Separate check-ins and passport control were the top two most important convenience factors stressed by the business customers surveyed.
ABC took note and carried out tests on wider seating arrangements for business – class passengers on selected domestic and international flights. Responses were very positive. It redesigned business – class seats to make them wider. The new seats were installed in its fleet of Boeing 737, Airbus A320 and A321 jets. Wide body Airbus A300 and A310 aircraft were also equipped with modified seat versions.
To ensure ABC got things right first time, the design of the new seats was carefully thought out. The airline seat manufacturer commissioned to do the redesign was brought in to work with ABC’s marketing and technical staff. Other conveniences were also incorporated into the new seats. For example they are equipped with modern communication systems, and a credit – card operated telephone is installed in each arm-rest.
Finding out what target customers desire or require is one thing. Responding to these demands and to the satisfaction of customers is another. ABC ran an ad campaign to thank respondents. As the story above shows a customer, focus can benefit businesses. To improve quality, the firm must listen to what customers want and then commit resources to deliver precisely that. Marketing developed initially for selling physical products, such as toothpaste, cars and other equipment. However, marketing principles can also be applied to organizations that offer services, such as ABC.
Question 1
a) For a traveller flying with ABC, what exactly constitutes the service offering? (8marks)
b) Identify the tangible and intangible aspects of the service (8marks)
c) What are the main aspects of the service that distinguish it from physical products (14marks)
Question 2
a) What has been the impact of the emergence of internet in promotion of services (6marks)
b) Discuss factors favouring the increase of international trade of services (14marks)
Question 3
a) When making service location decisions, marketers must consider flexibility in production and flexibility in consumption. Explain the above statement. (8marks)
b) Discuss the functions performed by service marketing intermediaries (12marks)
Question 4
a) What do you understand by the term price discrimination in relation to service marketing (5marks) b) Discuss the various bases of price discrimination that can be used by a service provider (15marks)
Question 5
a) Identify a service company that you are familiar with using the service marketing triangle, describe how the company carry out their marketing activities (8marks)
b) Before making a decision whether to buy a service or not, consumer go through a decision making process. Describe this process identifying the challenges facing service marketers at each stage of these stages (12marks)
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