Page 88 - DMGT522_SERVICES MANAGEMENT

Unit 3: Nature/Characteristics of Services

3.4 Keywords Notes

Experience Goods: Goods (services) that need to be experienced before you can evaluate them.
High Contact Services: Service providers have high degree of contact with the customers.

Low Contact Services: Services characterised by very low contact with people.
Perishability: It refers to the fact that (in general) services cannot be produced and stockpiled
(inventoried) before consumption.

3.5 Review Questions

1. Define the concept service marketing and its characteristics.

2. Distinguish between goods and service.
3. What are the classifications of services?
4. Explain the paradigms in service marketing.

5. Mention any five services that have significant tangible elements attached to them and
five goods that have service element attached to them.

6. Services sector is playing the role of growth driver in many developed and developing
economies. Discuss.

7. Market has variety of offers ranging from pure goods to pure services. In light of this
statement explain the product-service continuum.

8. Do you think that classification of services can help in developing the marketing strategy
better? How?

9. With tangibility and intangibility on either ends of a continuum, can you identify services
which can be classified along this continuum? Select one of those services used by you as
an individual, as family and as an organisation.
10. On a product-service continuum place the following items: automobile, fast food meal,
pizza delivery, auto repair, and advertising agency, computer, counseling and installed
carpeting.
11. In which category would you put the following services? Give reasons also:
(a) A day care centre

(b) Chartered bus service
(c) Tele-shopping
12. Explain your answer.”Marketing is all about value creation for the customer”. Explain
this statement from the point of view of a new entrant like Kingfisher Airlines.
13. To what extent do you consider that purchasers of services have concern for the ethics of
how a service is produced? How would you assess firms’ responses to such concern?
14. Consider the statement of Toyota: “Know you is know-how”. Explain it in the context of
service marketing concepts and orientation.

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