Deck 12 - Services - Lecture 13

Question 1

what are two types of service

Answer 1

producer services,

consumer services

Question 2

what is a producer

Answer 2

help a country by providing inputs to production processes

Question 3

characteristics of services *

Answer 3

intangibility,
inseparability,
variability,
perishability,
impossibility of being owned

Question 4

how are services inseparable

Answer 4

consumption of services is inseparable from its means of production

Question 5

explain feature of services variability

Answer 5

manufactured goods - consistent,

services - high levels of variability

Question 6

explain feature of services perishability

Answer 6

unlike most goods, services cannot be stored

Question 7

example perishability

Answer 7

spare seats on a train cannot be transferred

Question 8

explain feature of services impossibility of being owned

Answer 8

no ownership transferred from seller to buyer

Question 9

what is the goods services continuum

Answer 9

continuum with pure services at one end and pure goods at the other with products falling between these two extremes

Question 10

example of two different fast food services

Answer 10

pret a manger, mcdonalds

Question 11

can the price of a service fluctuate

Answer 11

price of service can change quite a lot due to nature (plumber in winter compared to summer)

Question 12

what are the three new ps added on for services

Answer 12

people,
processes,
physical evidence
(price, place, promotion, product)

Question 13

explain people (ps for services)

Answer 13

people are a vital element of the marketing mix, direct contact between producer and consumer

Question 14

explain processes (ps for services)

Answer 14

processes are of critical concern to consumers of high contact services

Question 15

explain physical evidence (ps for services)

Answer 15

intangible nature means potential customers unable to judge a service before it is consumed, increasing risk of purchase decision

Question 16

what is affordability budgeting

Answer 16

budgeting what the organisation believes it can afford

Question 17

what is % of sales budgeting

Answer 17

sets aside certain percentage of sales to fund marketing programmes

Question 18

how much does the service sector account for in terms of employment

Answer 18

75%

Question 19

what does intangibility mean

Answer 19

a pure service cannot be assessed using any of the physical senses

Question 20

examples of some common types of service

Answer 20

haircut,
surgery,
financial and banking services,
lawyer services

Question 21

what do very few services face

Answer 21

very few services face a constant pattern of demand through time

Question 22

what are the 7 ps for services *

Answer 22

product price promotion place,
people,
processes,
physical evidence

Question 23

what is different about place for services

Answer 23

more appropriate to talk about accessibility,

inseparability implies that services are consumed at the point of production

Question 24

talk about 7ps people

Answer 24

for most services people are a vital element of the marketing mix,
most services involve direct contact between the producer and the consumer

Question 25

what is different about price and promotion for services

Answer 25

price discrimination greater due to inseparable nature of services, price of a service very important indicator of quality,
promotion, intangible nature often results in higher risk perception

Question 26

talk about 7ps processes

Answer 26

production processes can be of critical concern to consumers of high contact services,
many service organisations pass on greater part of the production process to customers

Question 27

talk about 7 ps physical evidence

Answer 27

intangible nature means that potential customers are unable to judge service before it is consumed increasing risk of a purchase decision,
important to try and be transparent to reduce the level of risk