Page 100 - DMGT522_SERVICES MANAGEMENT

Unit 4: Service Strategies

The marketing objectives should be prioritised by urgency and importance. Each objective then Notes
should be assessed for its impact on the respective marketing area and the service firm’s
competitiveness. It is only after this exercise that resources should be allocated to each plan and
objective.

Self Assessment

Multiple Choice Questions:
1. Which of the following decisions is most likely to be taken at the corporate level?
(i) Marketing strategy to launch a product

(ii) Hire new front line employees
(iii) Designing the mission and vision of the service organisation
(iv) Testing the service delivery process
2. ……………… are SBUs that are in low growth or mature industries but have relatively
high market shares.
(i) Stars
(ii) Cash cows

(iii) Questions marks
(iv) Dogs
3. In ………………… strategy, the products or SBUs are disposed off from the portfolio of the
service organisation if they are not performing well.
(i) Invest
(ii) Protect
(iii) Harvest

(iv) Divest
4. ………………… strategy is adopted by a service firm or the SBU when it concentrates its
entire attention on a very specific customer segment and their needs.

(i) Cost leadership
(ii) Differentiation
(iii) Focus
(iv) Invest

4.2 Service Recovery Strategies

As per Tax and Brown, “Service recovery is a process that identifies service failures, effectively
resolves customer problems, classifies their root cause, and yields data that can be integrated
with other measures of performance to assess and improve the service system”.
By adopting a service recovery system, service organisations get another opportunity or a
second chance to correct any mistake that occurred during the delivery of service in the first
instance. If the problem is resolved and the customer is satisfied, he may give up his attempts to
switch to competitors. If the company continues to provide high quality service, it might –

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