Question bank for Marketing of Services
Paper code-MBA-Mk01
By Sachin Chauhan
(100)Objective Questions:
Q.1. Services are:
(a) Deeds (b) Acts
(c) Performance (d) All the above
Q.2. an economy is called a service economy when the contribution of service sector to the GDP is more than:
(a) 45% (b) 50%
(c) 60% (d) 75%
Q.3. Name of the country which has been declared as first service economy is:
(a)
(c)
Q.4. Which one is not the characteristic of services:
(a) Intangible (b) Inseparability
(c) Ownership (d) Variability
Q.5. Reasons for growth of services in
(a) Economic Affluence (b) Cultural changes
(c) Development of markets (d) All the above
Q.6. which one is incorrect:
(a) Service Quality includes access, reliability and responsiveness
(b) Service Quality is the delivery of excellent or superior service relative to customer expectation
(c) Service Quality may be judge through satisfaction of customer’s need
(d) Service Quality means better than best
Q.7. Factors influencing consumer behaviour:
(a) Cultural and Social (b) Personal and Physical
(c) Psychological (d) All the above
Q.8. How do consumer develop expectations:
Match the following:
Levels of Service Performance Customer Response
Exceeding maximum expected level Satisfied
Maximum service level Delighted
Adequate service level Highly dissatisfied
Minimum service level Indifferent
Below minimum level Dissatisfied
Q.9. Stages of market segmentation does not include:
(a) Search (b) Selection
(c) Organizing (d) Strategy
Q.10. Targeting depends upon:
(a) Positioning (b) Segmentation
(c) Quality (d) Price
Q.11. Positioning is :
(a) Mental image (b) Picture in consumer’s mind
(c) Integral part of strategy (d) All the above
Q.12. Augmented mix involves:
(a) Product, Price, Place & Promotion (b) People
(c) Process (d) Physical evidence
(e) All the above (f) None of the above
Q.13. Service Product Development stages:
Arrange these stages in correct form
(a) Screening (b) Testing the concept
(c) Practical Development (d) Launch
(e) Market Testing (f) Generation of ideas
(g) Business Analysis/evaluation
Q.14. Approaches to pricing of services are:
(a) Cost based pricing (b) Competition based pricing
(c) Demand based pricing (d) All the above
Q.15. The service provider needs to have :
(a) Direct contact with customer (b) Contact with Distributor
(c) Contact with Retailer (d) Contact with Wholesaler
Q.16. The popularly used channels for distribution of services :
(a) Franchising (b) Agents and Brokers
(c) Electronic channels (d) All the above
Q.17. Components of the communication program:
(a) Identify the target audience
(b) Determine the promotion objectives
(c) Develop the messages
(d) Select the media vehicle
(e) Set up system for feedback and feed forward
(f) All the above
(g) None of the above
Q.18. The service interaction process includes the phases:
Which one is correct?
(a) The joining phase: Marketing personnel interact with the customers and persuade sometimes to sell the service
(b) The intensive consumption phase: A critical phase wherein the service process aims at solving consumer problems
(c) Detachment phase: Payment and registration for next visit
(d) All the above
Q.19. Technology occurs in services in the form:
(a) Delivery (b) On line marketing
(c) Performance (d) All the above
Q.20. People in services augmented mix involves:
(a) Customer (b) Employee
(c) Both (a) & (b)
Q.21. Classification of products into goods, services and ideas is determined by the:
(a) degree of labour intensiveness. (b) type of markets
(c) dominant component (d) skills of the service provider
Q-22- Services can be meaningfully analysed by using a five category classification scheme including type of market, degree of labour intensiveness, degree of customer contact, skills of service provider, and
(a) degree of competition within the service industry
(b) goal of the service provider
(c) market share of the service provider
(d) employee structure of the service provider
Q-23- The appearance of the production facilities and the interpersonal skills of actual service providers are critical in ---------------- services
(a) low-contact (b) equipment-based
(c) industrial (d) high contact
Q-24- In service marketing , the most important link to the customer is:
(a) effective advertising (b) well trained contact employees
(c) good word of mouth communication (d) the tangible aspects of services
Q-25- Legal and general insurance uses “the umbrella” to communicate protection to its customers. This illustrates the company’s attempt to help customers understand the service by:
(a) emphasizing tangible clues in promoting the service
(b) personal selling of the service
(c) utilizing publicity techniques to enhance the service
(d) distributing the service directly through television
Q-26- Because of a service’s --------------- , standardization and quality are extremely difficult to control
(a) intangibility (b) inseparability
(c) homogeneity (d) heterogeneity
Q-27- The necessary interaction between service provider and customer that allows a service to be delivered is called
(a) customer contact (b) service exchange
(c) marketing (d) relationship marketing
Q-28- Which one of the following group of people would be considered client publics for a hospital?
(a) patients (b) insurance companies
(c) doctors (d) nurses
Q-29- The system in which an industrial seller sets a price for a product and the customer pays that price is known as –
(a) bid (b) negotiated
(c) administered (d) fixed
Q-30- Of the following media, which one is used LEAST frequently by business to business marketers?
(a) direct mail (b) trade publications
(c) personal selling (d) television
Q-31- Classification of products into goods, services, and ideas is determined by the:
A)degree of labour intensiveness.
B)type of markets.
C)dominant component.
D)skill of the service provider.
E)degree of consumer contact.
Q-32- Which of the following is generally viewed as a business or industrial service?
A)Hair care services
B)Marketing research
C)Dry cleaning
D)Therapeutic massages
E)Chimney cleaning
Q-33- Of the following alternatives which service is the most people-based?
A)Dry cleaning
B)Carpet cleaning
C)Swimming instruction
D)Airline flight
E)Hotel accommodations
Q-34- Services can be meaningfully analysed by using a five-category classification scheme including type of market, degree of labour-intensiveness, degree of customer contact, skill of service provider, and
A)degree of competition within the service industry.
B)goal of the service provider.
C)market share of the service provider.
D)employee structure of the service provider.
E)production environments.
Q-35- The appearance of the production facilities and the interpersonal skills of actual service providers are critical in __________ services.
A)low-contact
B)equipment-based
C)industrial
D)high-contact
E)nonprofessional
Q-36- In service marketing, the most important link to the customer is
A)effective advertising.
B)good word-of-mouth communication.
C)well-trained contact employees.
D)the tangible aspects of the service.
E)exceptional service quality.
Q-37- A Bank supplies products that fall primarily at which of the following points on the tangibility continuum?
A) Totally tangible
B) Tangibly dominant
C) Neutral
D) Intangibly dominant
E) Totally intangible
Q-38- As Bob and Sarah Wallace meet with the account representative at Midland Bank, they are shown a sample of what their monthly statement will look like. Providing such sample documents allows Midland
A)experience
B)credence
C)search
D)perishability
Q-39- Alex Knox, a young dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot he is seeing an existing patient. Alex's problems with expanding his practice deal with the aspect of service called:
A)perishability.
B)credence.
C)inseparability.
D)heterogeneity.
Q-40- Legal and General Insurance uses "the umbrella" to communicate protection to its customers. This illustrates the company's attempt to help customers understand the service by:
A)emphasising tangible cues in promoting the service.
B)personal selling of the service.
C)utilising publicity techniques to enhance the service.
D)distributing the service directly through television.
Q-41- Marketers for the airline industry sometimes find it difficult to promote their product because unused aeroplane seats cannot be stored. This problem illustrates which one of the following unique features of services?
A)Intangibility
B)Inseparability
C)Perishability
D)Heterogeneity
Q-42- The owner of the Beauty Spot beauty salon has difficulty in standardising and controlling the quality of service the customers in her salon receive. This problem illustrates which one of the following unique features of services?
A)Intangibility
B)Inseparability
C)Perishability
D)Heterogeneity
Q-43- Which one of the following can be considered a high-contact service?
A)Postal service
B)Car repair
C)Health care
D)Banking
E)Dry cleaning
Q-44- Delta Airlines runs a series of television commercials that show its personnel going out of their way to help customers. An important secondary audience for these ads is:
A)the Civil Aviation Authority.
B)competitors.
C)customers.
D)Delta employees.
E)all air travelers.
Q-45- Adam's Pool Service charges £50 for swimming pool cleaning performed prior to May 15 and £75 for jobs performed after that date. This pricing structure provides the benefits to Adam's of:
A)price leaders.
B)smoothing demand fluctuations.
C)increasing service tangibility.
D)tying prices to service costs.
Q-46- Marketing activities conducted by individuals and organisations to achieve some goal other than ordinary business goals such as profit is:
A)nonbusiness marketing.
B)organisational marketing.
C)individual marketing.
D)enterprise marketing.
Q-47- An advertising campaign that tries to persuade people to avoid drinking and driving is an example of:
A)service advertising
B)social marketing
C)campaign marketing
D)product advertising
Q-48- A group of individuals who have an interest in or concern about an organisation, a product, or a social cause is an:
A)direct consumer.
B)client consumer.
C)target public.
D)general public.
E)indirect consumer.
Q-49- A university's student body would be considered its __________ public, and parents, alumni, and trustees would be included as its __________ public.
A)client; general
B)specialised; general
C)target; simple
D)general; client
E)target; market
Q-50- According to the text, the direct consumers of a nonprofit organisation are its
A)general public.
B)consumer public.
C)member public.
D)client public.
E)nonbusiness public.
Q-51-Because of a service's __________, standardisation and quality are extremely difficult to control.
A)intangibility
B)inseparability
C)homogeneity
D)heterogeneity
E)perishability
Q-52- The necessary interaction between service provider and customer that allows a service to be delivered is called
A)customer contact.
B)service exchange.
C)marketing.
D)relationship marketing.
E)service contact.
Q-53- A problem encountered by service companies that change high-contact services into low-contact services is that the
A)service becomes more expensive to deliver.
B)quality of the service usually declines.
C)service becomes less personalised.
D)time required to deliver the service increases.
Q-54- High-contact services include which of the following examples?
A)Photo developing
B)Cinemas
C)Car repairs
D)Garden landscaping
E)Medical services
Q-55- Consumers look closely at service quality when comparing competing services because
A)they perceive all services to be essentially the same.
B)all services are priced about the same.
C)quality is the only relevant service characteristic.
D)services are very difficult to evaluate.
Q-56- Consumers' service expectations are influenced by advertising, word-of-mouth communication, and
A)recommendations from friends.
B)past experiences with the service.
C)news stories about the service.
D)the tangibles of the service.
E)credence qualities.
Q-57- Which one of the following is an intangible dominant product?
A)Flowers
B)Perfume
C)Food
D)Mortgage
E)Car
Q-58- Beauticians find it difficult to market their product because the customer must be involved in the production of the product (i.e., the facial). This problem illustrates which one of the following unique features of services?
A)Intangibility
B)Inseparability
C)Perishability
D)Heterogeneity
Q-59- Kregger Rug Cleaning Service offers potential customers one room of carpet cleaned free. Kregger makes this offer in an effort to satisfy which one of the following quality areas for service?
A)value
B)experience
C)credence
D)search
Q-60- After returning from a consultation with her accountant, Janice determined that the service she received was poor because the accountant was rude and abrupt. The aspects of the product that Janice assessed are called ------- qualities.
A)search
B)experience
C)credence
D)tangible
Q-61- Which one of the following services is NOT labour intensive?
A)Education
B)Hair care
C)Insurance
D)Fitness centre
E)Legal counsel
Q-62- Which one of the promotion elements is probably the most powerful for services?
A)Publicity
B)Advertising
C)Personal selling
D)Sales promotion
Q-63- A high-contact service is one in which
A)the customer and service provider must meet frequently.
B)the customer must be physically present to receive the service.
C)the service provider must be present when the service is provided.
D)a great deal of physical touching is required.
Q-64- Which marketing activity does NOT occur in nonbusiness marketing?
A) Distribution
B) Exchange
C) Profits
D) Negotiation
E) Persuasion
Q-65- Combat Cancer Society engages in activities designed to influence attitudes toward smoking. This type of activity is called ---------marketing.
A)services
B)product
C)social
D)business
Q-66- What is the marketing objective of nonbusiness organisations?
A)To provide an idea or service to the public
B)To obtain a desired response from a target market or public
C)To obtain a return on social investment
D)To determine the target market and to create and maintain a satisfying marketing mix
Q-67- Which one of the following groups of people would be considered client publics for a hospital?
A) Patients
B) Insurance companies
C) Doctors
D) Nurses
E) Pharmaceutical sales representatives
Q-68- The first sign that a nonbusiness organisation has become aware that it is performing marketing activities is through ----- decisions:
A)target-public
B)distribution
C)promotional
D)price
E)competitive
Q-69- Children with muscular dystrophy who receive treatments developed through research programs funded by MDA would represent __________ for this charitable organisation.
A)target publics
B)target population
C)general publics
D)focus groups
E)client publics
Q-70- __________ is the value of the benefit that is given up by selecting one alternative rather than another.
A)Benefit loss
B)
C)Privileged cost
D)Selection cost
E)Exchange loss
Q-71-Which one of the following is an example of low contact service?
(a) Health contrast (b) Hotels
(c) Beautician (d) Repairs
Q-72-Demographic segmentation covers which factor for dividing the market?
(a) Climate (b) Age of people
(c) Quantity used (d) Social Class
Q-73-What do you understand by the term inseparability of services.
(a) products and services are inseparable
(b) services cannot be separated from the seller of services
(c) Services are inseparable from price
(d) None of these
Q-74-Which one is not the example of business to business services.
(a) Printing (b) Accountancy (c) Package Holidays (d) None of these
Q-75-Which one of the following creates a problem in service marketing?
(a) Irregular service quality (b) Lack of resources
(c) After sales service (d) All of them
Q-76-Variation between desired service and adequate service is called?
(a) Zone of tolerance (b) Danger Zone
(c) Safe zone (d) Zone of incompatibility
Q-77-Which term is used for pricing insurance services?
(a) Commission (b) Fee
(c) Tool (d) Premium
Q-78-Discriminating pricing is also known as:
(a) Flexible pricing (b) Backward pricing
(c) Forward pricing (d) None of these
Q-79-A market based method of pricing which focuses on the consumer is willing to pay is known as:
(a) Skimming (b) Penetration
(c) Backward pricing (d) None of these
Q-80-Personal selling uses which of the following as its effective tool.
(a) Oral communication (b) Internet
(c) Written communication (d) All of these
Q-81-Which of the following is non paid form of communication?
(a) Sales promotion (b) internet
(c) Advertising (d) word of mouth
Q-82-Marketers tangibles the intangible services by providing:
(a) Physical Evidence (b) Smiling Employer
(c) Creative Advertisements (d) None of these
Q-83- Liberalization was introduced to Indian economy in the year-----------------
(1991)
Q-84- ------------------- is a method of financing in the form of equity participation
(Venture capital)
Q-85- A---------------------- is an agreement under which a firm acquires a right to made use of a capital asset
(Lease)
Q-86- A------------------ refers to to find raised by a financial service company by pooling the savings of the public
(Mutual fund)
Q-87- Market of treasury bills is controlled by the -----------------
(Central government)
Q-88- Prestige pricing means pricing above the---------------------
(Market price)
Q-89- ---------------- is concerned with process of services.
(Quality management)
Q-90- --------------- is an example of “All service less goods”
(Consoling)
Q-91- -------------- involves a personal touch
(Personal selling)
Q-92- ----------------- is necessary to convert suspect into a prospect
(Persuasion)
Q-93- One of the vitally important self driven vehicle of communication is ------------
(Word of mouth)
Q-94- ------------------ involved is the biggest disadvantage of electronic media.
(Cost)
Q-95- ----------------- has become a popular media of communication due to globalization
(Internet)
Q-96- --------------- is the ultimate goal of services marketing.
(Customer satisfaction)
Q-97- ------------------- is a popular base for market segmentation in services marketing.
(Demographic variable)
Q-98- Psychographic segmentation considers--------------------- as the base for dividing the market
(Life style)
Q-99- Services are of-------------------- nature.
(variable/heterogeneous)
Q-100- Proper------------------ of services is necessary for branding.
(Positioning)
(20) Long questions:
Q-1- What do you understand by service? Give characteristics of services.
Q-2- What is the difference between Product and Services?
Q-3-What are the basis for service classification? Give examples of services for
different basis.
Q-4- What are customer expectations for service? How zone of tolerance is more
important in service marketing?
Q-5- What do you understand by Positioning of services also define marketing
Segmentation approach in services.
Q-6- How Service marketing mix differs from Product marketing mix?
Q-7- What are the main objectives of Service Pricing? Explain strategies/
approaches in Service pricing.
Q-8- Explain various types of intermediaries for service delivery along with their role and importance.
Q-9- What is the role and importance of communication in service marketing?
Explain different types of communication.
Q-10- Discuss various determinants of service quality with suitable examples.
Q-11- Explain marketing mix decisions of Banking Industry. How you can do
Market Segmentation in Banking Industry?
Q-12- Explain marketing mix decisions of Insurance Industry. How market
Segmentation can be done in Insurance Industry?
Q-13- Give the marketing strategy which is adopted in Telecom Industry. How
market Segmentation can be done in Telecom Industry?
Q-14- What are the major issues before any Housing Finance Institution?
Q-15- With special reference to Credit Cards, suggest an appropriate marketing
mix for Financial services.
Q-16- Explain marketing of services in global perspective. What are the factors
Influencing globalization of services?
Q-17- Explain what key decisions are taken in global marketing of services? What
Strategies are adopted for global market entry in service industry?
Q-18- What are the reasons that service organization going global?
Q-19- “The emergence of global customers is giving an opportunity to several
companies to propagate common brand values across several nations.”
Discuss.
Q-20- Discuss the benefits and pitfalls of globalization.
CASE STUDY:
CASE –I-
Target
Sushil booked a table in a restaurant for 12 people at the beginning of the Diwali period to celebrate the festive season with his family and friends. He had been a regular visitor to Moti Restaurant and had developed loyalty for this place famous for South Indian food. Most of his friends were from the south so he preferred to treat them at Moti.
Another reason for his selection was that the parton of Moti, Raj Kumar knew him well. Since he was regular visitor, he was quite confident that this dinner would be a success.
Three days before the scheduled get-together dinner Sushil spoke to Raj Kumar and asked him to increase the booking to 16. He looked busy but informed Sushil it would be quite in order and he looked forward to seeing Sushil and party later that week.
As per programme, all sushil’s friends met at his residence at 7 p.m. on the appointed day and after having a cup of coffee left for Moti to be there at the scheduled time of 8.30 p.m. They were all relaxed exchanged jokes on their way and reached the restaurant at 8.20 p.m. with slight difficulty, they located parking place at three different locations for the four cars in which they were traveling.
The guests arrived at the restaurant on time and Sushil was taken aback to find that the table has been set only for 12 persons. Raj Kumar came over seeing a large group gathered around the small table laid in one corner of the dining room. Sushil remained Raj Kumar of his earlier conversation which he had with him three day ago He asked him to recollect that the booking had been increased from 12 to 16, and suggested that it may be an oversight that he had forgotten to set the table for 16 people. Sushil then asked him to reset the table immediately for 16 people to avoid any embarrassment to him and and his guests.
To Sushil’s great amazement and embarrassment Raj Kumar denied that Sushil had asked for a booking for 16 people. He,rather, told Sushil that he had not phoned him at all this week to make amendments in the booking. “You must have been mistaken” said Raj Kumar.
Sushil tried to make him admit his mistake but Raj Kumar was too rigid and continued to take a stand that he had not received any such call and that the booking was for 12 people only. The restaurant was full and sushil asked Raj Kumar to resolve the matter as his guests had been standing for more than ten minutes. Raj Kumar expressed his helplessness and said there was nothing he could do at the moment.
At such time, Sushil knew that there was no where else they could go at this time. Sushil and his wife along with another couple opted to wait and let 12 members of the group seat themselves. It was after a long wait that they could be accommodated with the group. This could happen only when the guests sitting next to them left after their meal.
All of them settled for the dinner but discussions mostly centered around the service provided by the restaurant. At the end of the dinner Sushil checked the bill and did not leave any tip for waiters. Before leaving the restaurant Sushil met Raj Kumar in private and explained him that he would not be visiting him again. Raj Kumar admitted that he may have been hasty but thought Sushil was being unreasonable as it was his busiest evening and he should make allowances.
Sushil never visited the restaurant again and his friends too stayed away. They narrated this incident to many people.
Questions for Discussion
- What were the pitfalls in the service delivery?
- How would you react to the behaviour of Raj Kumar?
- Had you been Raj Kumar, what could you have done to turn this problem into a situation which would have won the customers for ever?
- What are the problems and issues which cause such situations and such behaviour of service providers?
CASE-II-
Bouleau & Huntley
Cross-Selling Professional Services into the
A professional firm specializing in pension fund audits seeks to extend the firm s relationships with
existing clients in the
Juan Miguel Duavit, a new partner and co-director in the-Manila office of Bouleau & Huntley, pondered over what had gone wrong earlier in the day at his meeting 'with National Metals Corporation, a major metals manufacturer, where his carefully prepared consulting presentation had been greeted by a bewildered silence.
THE FIRM
Duavit, 42, had joined Bouleau & Huntley three months earlier, in March 2004. Bouleau & Huntley was a multinational corporation with headquarters in New York, that specialized in pension funds auditing and human resources management. Its Manila office had been serving clients in the
Expansion into the
The
professional . activities that could be adopted worldwide throughout Bouleau & Huntley.
Duavit Changes Jobs
Juan Miguel Duavit graduated from the prestigious
two-year stint With Sun Corporation as a brand manager, he spent two years in the
attended by their children and had come to know each other socially. Over dinner one evening, Arellano suggested that his friend think seriously about joining Bouleau & Huntley. "Our strategy committee in
The synergies with our own main line of activity . are obvious. With someone like you on board, and with the team we will help you build up, it should be possible to generate additional cash flow from existing clients, as well as gain new clients for the firm.
Further conversations during the subsequent months explored these opportunities and confirmed their mutual interest. Both men agreed that a vast potential existed in the Philippine~ among leading Filipino companies, as well as with the Asian affiliates of multinational groups headquartered in
Working at Bouleau 8«,Huntley
So Duavit joined the
the end of each year, with a prepared space for the :company to sign. It seemed so easy! One Friday. afternoon, just before 5 p.m., Duavit was beginning to check a 50-page report due at the client's the following Monday an~ he still had to write a proposal before goirig home for the weekend. Two of his partner colleagues poked their heads in at his open doorway. They were carrying raincoats and umbrellas and were evidently leaving for h ome. Quickly sizing up the situation, one of them, Victor Vasquez, remarked cheerily:
"My dear pare [the Filipino equivalent of "pal" or "chap"], you're obviously in the wrong business! You should have gotten an actuarial degree like us, instead of wasting your time at Wharton! See you on Monday! Cheers!"
A PRESENTATIONAT NATIONAL
METALSCORPORATION
Two weeks later, Duavit felt he was finally beginning to make progress. After much lobbying,' Vasquez had agreed to open the door to his largest client, National Metals Corporation, a company involved in refining and marketing copper, chromium, and nickel. Since Duavit had led an ASC consulting team for Amix in
morning of the third day. How much time do you need?"
Study Questions
1. What do you see as the key differences between pension fund auditing and management consulting? How good is the fit between the two?
2. Evaluate the visit to National Metals Corporation. What happened?
3. What are the lessons of this experience?
4. What actions should Bouleau & Huntley take now?
CASE-III-
Four Customers in Search of Solutions
Segmenting
Four residential line subscribers call their telephone company to complain about a variety of different problems. How should the company respond in each case?
Among the many residential customers of the telephone company are four individuals living in a middle-class suburb, Sha Tin, in Kowloon, Hong Kong.Each of them has a telephone-relatedproblem and decides to call the company about it.
Leung Yew Wah
Leung grumbles constantly about the amount of his home telephone bill, which is, in fact, in the top two percent of all residential phone bills in
Sherry Tanaka
Tanaka has missed several important calls recently, because her line was busy. Her two teenage children surf the Internet for several hours almost every day. She phones the telephone company to determine possible solutions to this problem. Tanaka's' telephone bill is at the median level for a household subscriber. Most of the calls from her house are local, but there are occasional international calls to
Chong Siew Lam
During the past several weeks, Chong has been distressed to receive a series of obscene telephone calls. It sounds like the same person each time. She .calls the telephone company to see if they can put a stop to this harassment: Her phone bill is in the bottom ten percent of all household subscriber bills and virtually all her calls are local.
Victor Hung
For more than a week the phone line at Hung's house has been making strange humming and crackling noises, making it difficult to hear What the other person is saying. After two of his friends" comment on these distracting noises, Hung calls the telephone company and reports the problem. His guess is that it . is being caused by the answering machine, which is getting old and sometimes loses messages. Hung's phone bill is at the 75th percentile for a household subscriber. Most of the calls are local, usually on evenings and weekends, although there are a few calls
to Shenzhen, too.
Study Questions
1. Based strictly on the information in the case, how many possibilities do you-see to segment the residential telephone market?
2. As a customer service representative at the telephone company, how. would you address
each of the problems and complaints reported?
3. Review the product line of your local telephone company. Then, examine whether there would be any marketing opportunities for your telephone company relative to the types of complaints reported.:
CASE-IV-
RESTAURANT SERVICE
Subash, after going through an article about the good South Indian food at Southend was tempted to try it out with his family last Saturday. The contents of the coverage were too tempting and he could almost taste the food while going through the article. They all were looking forward to having dinner there. Subash tried to contact the manager on phone but couldn't reach him as the telephone was busy. So he could not book the table for his family. He opted to drive out without any reservation and reached the area in which this restaurant was located. After great difficulty and enquiring from many people he reached the building in which the restaurant was located. He looked around for directions or signboards but could not find anything that could lead him to the restaurant. He looked for parking space but could not locate any. He found about 2S to.30 cars parked outside residential apartments. There was no authorised parking and no one from the restaurant was able to guide the cars. After parking the car, they entered the building which was poorly lit. .No signs were up to direct customers. On enquiring from one of the visitors, they found out the entrance gate. It was difficult to enter the gate as many two wheelers were parked in front of this gate and they had to practically jump over a few to reach the steps
leading to the restaurant. The passage to the restaurant was through a stairway and more than 50 people were standing shoulder to shoulder and there was lot of push and pull on account of the to and fro movement of the people. Some young boys were in a hurry to get out and some young couples were standing in the middle of the corridor. It looked like a scene from a movie interval. With great resistance, Subash asked about the restaurant from one of the persons in the crowd and h~ was told to proceed straight and turn left.
H:e was relieved to see the board carrying the sign "Dining Hall" on a 12" x 6" wooden plate. He was quite relieved and proceeded to the dining hall.. Another surprise was in store for him when he was stopped by a restaurant boy Sundram who was compiling the waiting list. Sundram was as5jgned the job of registering the guests, locating empty tables and directing people to the dining table. The restaurant did not accept advance reservations. Even the serial number of the waiting list was not adhered to. Ha table for four was vacated, four guests were seated ignoring the groups who had been waiting for longer. The principle of first come
first served basis was not followed. It was already 8 p.m. At this time it was too late to go somewhere else. So he registered himself and got the waiting slip. After getting the waiting slip Subash asked Sundram, how long they would be required to wait? Hit is too long, they would prefer to try another South Indian restaurant a kilometer away. Sundram replied that compared to other restaurants in the vicinity, it should not take that long and they may have to wait not more than fifteen minutes. During the waiting period Subash started talking to another guest, Ramesh standing next to him. Ramesh was a regular customer of this restaurant and told Subash that Southend is a South Indian restaurant most popular for South Indian food. Being moderately priced it is very popular with ,people of middle income groups. In spite of long waits, good food and its affordability is the factor urging the people to wait around standing
in the open. Still no waiting area is available for the customers. An open space and staircase near the restaurant serves as the waiting area. In the rainy season there is no shelter and people take shelter under the stairways. In the summer people use their own umbrellas or trees in the courtyard of the building in which this restaurant is located. Parking is a problem here. Hyou are a first timer, it will take ten minutes from the parking to the restaurant gate. There is no authorised parking. You have to create parking space for yourself and then ask at least twice or thrice about the location and directions to reach the place. This place is poorly lit and occasionally people are found sleeping on the stairs. The toilets are located about fifty yards from the restaurant and to find them you must enquire from the waiter inside or a person assigned at the gate who registers your name for the waiting slips. He enquires about the number
of people accompanying the guest. As soon as a table gets vacated, he announces the guests by shouting at the top of his voice and gestures them with his hand. He always looks in a hurry. People who are waiting for the turn, make repeat enquiries from him. He is always answering the enquiries of many customers simultaneously. His poor knowledge of the local language and English creates confusion among the customers. Half.of them do not understand and some of them misunderstand. Southend has good public relations. Many times, favourable articles have appeared in the supplements of national dailies of repute having very large circulations. . Subash and his family was eagerly waiting for their call but even after half an hour their name was not announced. They were getting anxious and restless and felt they have made a wrong decision. It was only after one hour that they were seated inside the dining hall. By this time everybody had lost their patience, and tempers were high. Subash ordered the food. It was undoubtedly tasty. They had their fill. To express their anger of a long wait and unorganised customer handling they paid the bill but did not leave any tip. Tips from the cUstomer was the yardstick for measuring the restaurant's performance and this matter w~ reported by the waiter to the restaurant manager. The manager called Sundram to find out the details about this transaction.
QUESTIONS:
1. Comment upon the elements of physical evidence at Southend. How are these inputs likely to affect the consumers of Southend?
2 What are the steps you would take to improve the service process at Southend ?
CASE-V
Raman Raghavan, the recently appointed area manager of Total Assurance Ltd., was discussing the matter of area office performance with his assistant, Ganesh Moorthy, Ganesh Moorthy. The company had come into being after the liberalization of the life insurance sector. The company had received technical experience from one of the leading insurance companies of
The following organizational structure existed in the area office of the company.
Area Manager
---------------------------
The Selection of Agents and Salespersons
In the past, the company had advertised for the admission of the agents. The overwhelming response had made the job of selection nearly impossible. Therefore, after the initial recruitment, the company relied mainly on the word-of-mouth recommendations of the existing agents for further recruitment for both expansion and replacement. The company application form, in addition to the details of name, address, age, height, weight, marital status, education, and previous employment details, demanded to know about previous insurance selling experience, present employment, current earnings, personal property details, amount of life insurance, membership details of clubs/associations, and names and addresses of three referees. The candidate also had to state the reasons for joining an insurance company and, in particular, Total Assurance Ltd, and the reasons why the candidate thinks he will be successful.
Current Employment Statistic
The present agents age wise distribution was as follows:
Age Group Total no of Agents
1.8to 20 5
21 to 25 26
26 to 30 34
31 to 36 10
36 to 40 8
40+ 5
Total 88
The mean age of the area office agents was 27 years. The marital status of the agents is as
shown below:
Marital Status Total Percent
Single 55 63
Married 33 37
Total 88 100
Similarly, the statistics regarding the period of employment with the company were as
follows:
Below 1 year 46%
1 to 2 years 28%
Over 2 years 23%
[The company began operations only three years ago.]
Eighty per cent of the agents had changed the job at least once in the last three years (whether with the company or not), and 57% had changed their job more than once.
The majority (70%) of the agents had completed 12 standard , 18% of the agents had
studied beyond this level with 12% of the agents having an education of 10th standard or
equivalent. They all could speak the local language and English.
The Situation at Present
There was overwhelming pressure for the company to grow at a substantial rate to achieve the breakeven point. The longer it took to achieve the breakeven point, harder would be the long term struggle. During .the initial meeting with the General Manager before taking up the present assignment, the General Manager had mentioned the performance of the sales force as an area of concern. The company also needed to establish and publicize the achievements of high efficiency agents and reward them to motivate other employees. Objectivity in the performance measurement vis-a-vis industry benchmarking was also considered to be an option. The area of job changes and loss of trained agents to other upcoming companies was also considered to be an area of grave concern. The time for putting the house in order had arrived.
Question
1. What in your opinion are the main impediments to the good performance of the
agents?
2. What should be the main criteria for evaluation of a candidate for recruitment?
3. Are there any special personality characteristics essential for selling of insurance?
4. Are there any motivational drawbacks amongst the present agents?
5. What criteria should be used for performance evaluation?
CASE-VI
City Bank .
Historically was a private sector bank floated in the pre-independence days of
Despite nationalization, the conservative lending policies historically practiced by the bank remained in place, and it continued to lend with relative prudence and 'wisdom. It was also publicity shy and operated quietly. Consequently, it did not become involved with any of the lending scandals or notorious stock market swindles like some other banks. In the meantime, privatization of nationalized companies and banks became an important agenda for the union government. The United Indian Bank, with due regards to asset and capital adequacy norms
decided to raise capital funds for expansion by way of public issue at a small premium to the face value of the shares. This would also have an effect of diluting the shareholding of the union government. .
Despite the depressed state of the capital market, the issue was .oversubscribed many times partly due to the bank's reputation and the reasonable amount of the share premium demanded. While the prospectus for the issue and other communications had stated that the proceeds from the issue were to be used for improvement of bank's operations, the board of directors of the bank still had to decide on the methods for expansion. One of the ideas floating around was expansion in the ATM network. .
The bank currently had a very small network of around 25 ATM locations in a few major
town. Ironically, while the ATM machines located at branches continued to remain idle, there
were long queues formed at the cashier's counter. Most of those in the queue were retail customers.
The types of transactions available via the bank's ATM card are very limited. However, it is participating in a joint ATM card scheme floated by a number of other nationalized banks. In addition, the bank has been contemplating the introduction of telebanking with remote access via Internet. At present the bank operations are not fully computerized, which also had to be looked into. The bank is, contemplating expansion into the non-life general insurance sector in collaboration with a non-life insurance company. It has also launched a depository services scheme.
Question
1. Describe the aspects of consumer behavior that may affect the use of ATMs.
2. Describe the ways and means by which the bank could popularize the use of ATMs.
3 By popularizing the use of ATM cards, apart from the reduction in the cost of retail
banking operations, what other opportunities to earn higher margins arise ?
5 Can retail banking continue to remain a profitable basis for the bank operations ?
CASE-VII
KeepYourPromises
Sunny and his wife Rekha both had degrees in Hotel Management with specialisation in catering and hospitality respectively. Both were working at Host, a restaurant located in the midst of the busy business locality. Just hundred meters away was the stock-exchange where hundreds of people gathered everyday to exchange business transactions. The one kilometer of market had offices of many prestigious companies of
and Rekha supervised the dinning area and handled the billing and cash register. The restaurant having space limitations had no scope of expanding its operations. So, for the past ten years they were doing same routine work. . Sunny and Rekha were keen on starting a enterprise of their own and were looking for the right type of business and opportunity. Rekha being in the dinning area was always observing the guests coming to the Host. She observed that most of the guests coming for lunch were people belonging to the financial trade like investors, stock brokers, bankers and their business operations were concentrated at the stock exchange. Since the lunch break was only for half an hour. Half of the break time went in the to and fro movement to the eating place. They were always found to be intent. on finishing their lunch rather than enjoying it. Many of the guests were seen talking on their cellular phones even while eating. Sunny and Rekha once visited the stock exchange to know the work place of their guests and realised how hard pressed for time they were. They were convinced that if they could offer these customers an appealing lunch at their workplace, they can certainly develop a clientele. Moreover, the customers will be able to relish the lunch as they will be able to utilise the to and fro movement to the. ------------
They started talking to a select list of potential customers about the service they wanted to introduce. They found that their concept ~as acceptable to most of them. A demand for onsite food service was established. Sunny and Rekha worked on the economies of this service and established that they could build a very profitable business.
Questions for Discussion
1. How could Sunny and Rekha create a market niche for their service offerings ? What
are the characteristics of the niche? What is the customer base?
2. What value-added services did they start offering the clients ? Explain at least three of
them.
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