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Marketing Of Services(Ft) (Mktg 333:) Question Paper
Marketing Of Services(Ft) (Mktg 333:)
Course:Marketing Of Services
Institution: Kenya Methodist University question papers
Exam Year:2011
INSTRUCTIONS: Answer question 1 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: YOU”, so runs an ABC Airline ad.
A decade ago, this airline 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 by doing what the customer wants is the key to customer satisfaction.
In the early 1990s ABC conducted one of the most comprehensive passenger surveys ever carried out. It surveyed some 3000 business travelers who fly with them or other airlines. It is not so much the survey results that are noteworthy, 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 the 3rd and 4th places by designated lounges and non-smoking aircraft. Separate check-ins and passport control were the top two most important 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 A320 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 were equipped with modern communication systems, and a credit card operated telephone was installed.
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 this story shows, a customer focus can benefit businesses. To improve quality, the firm must listen to what consumers want and then commit resources to deliver precisely that. Marketing initially developed 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 constitutes the ‘service offering’? (8mks)
b) Identify the tangible and intangible aspects of the service. (10mks)
c) What are the main aspects of the service that distinguish it from a physical product? (12mks)
Question 2
a) Using the service marketing triangle, describe how companies carry out their marketing activities. (8marks)
b) Describe the consumer decision making process for a service. (12mks)
Question 3
a) Explain the meaning of Price Discrimination in relation to service marketing. (5mks)
b) Discuss the various bases of price discrimination that can be used by a service provider. (15mks)
Question 4
a) When making service location decisions, marketers must consider “flexibility in production and flexibility in consumption”. Explain this statement. (8mks)
b) Discuss the functions performed by service marketing intermediaries. (12mks)
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