Test Bank Questions with Answers for Services and Retail Marketing Exam Solution Manual 7th
Edition
Service - Answers A service is any activity or benefit that one party can offer to another, which is
essentially intangible and does not result in the ownership of anything. Its production may or may not
be tide to a physical product. - Kotler et al. 2002
The UK is one of the most service driven economies in the world. 80% of the economic output comes
from services.
Lovelock's 4 broad categories of services - Answers People processing. For example, the barbers.
Possession processing, for example, a mechanic. Mental stimulus processing, for example, education.
Finally, Information processing, for example, accounting or banking.
Types of Services - Answers There are five main types of services. Service industries and companies
(Hilton Hotels), Services as products (Microsoft Office), services as experiences (Disney Land), Customer
services (Service desk in a shop), and transformative services (refugee services).
The four characteristics of services - Answers Intangibility means a service is difficult to display and
communicate, you cannot protect through a patent, it is difficult to justify prices, and it is important to
make the intangible tangible through creating a presence.
Inseparability is simultaneous consumption, customer care must be real and there should be a service
quality, as well as word of mouth being very important.
Heterogenity relates to human service, process management, expectation management, the factor that
services can vary due to people.
Perishability relates to a service as it cannot be saved, stored, resold, and returned. there can be
difficulties in synchronizing supply and demand for services, as well as demand forecasting and creative
planning for capacity utilization being important.
Doyle, C. (2016a). A dictionary of marketing. 4th ed. Oxford ; New York: Oxford University Press, pp.419-
422.
Delivery of services (servuction model) - Answers The servuction model illustrates the different areas
that make up a service and impact service delivery. There is invisible organization and processes, which
,cannot be seen by the customer but have an impact on service delivery as they interact with the
inanimate environment and contact personnel e.g., chef. The inanimate environment is the
surroundings in which the customer is in contact with during the service delivery e.g., tables,
atmosphere, and toilets. The contact personnel are those that are delivering the service e.g., waiter.
Also, all the customers can impact the delivery process, for example in a restaurant, a loud and rude
customer may negatively impact the experience of surrounding customers, this may reflect on the entire
service experience.
Langeard, E., Bateson, J., Lovecock, C. and Eiglier, P. (1981). Services Marketing : new insights from
consumers and managers. Cambridge: Cambridge: MA Marketing Sciences Institute.
Gap model of service quality - Answers The Gap Model of Service Quality (aka the Customer Service Gap
Model or the 5 Gap Model) is a framework which can help us to understand customer satisfaction.
The model shows the five major satisfaction gaps that organizations must address when seeking to meet
customer expectations. The model was first proposed by A. Parasuraman, Valarie Zeithaml, and Leonard
L. Berry in 1985.
In the Gap Model of Service Quality, customer satisfaction is largely a function of perception. If the
customer perceives that the service meets their expectations then they will be satisfied. If not, they'll be
dissatisfied. If they are dissatisfied then it will be because of one of the five customerterm-6 service
"gaps" shown below.
Doyle, C. (2016b). A dictionary of marketing. Oxford ; New York: Oxford University Press, pp.423-424.
Service encounter - Answers The actual interaction between the customer and the service provider.
A moment of truth (MOT) is marketing lingo for any opportunity a customer (or potential customer) has
to form an impression about a company, brand, product or service. Marketers strive to use moments of
truth to create positive, customer-centric outcomes.
Doyle, C. (2016a). A dictionary of marketing. 4th ed. Oxford ; New York: Oxford University Press, pp.419-
422.
,Moment of Truth (MOT) - Answers In marketing, the moment when a customer/user interacts with a
brand, product, or service in a way that serves to form or change an impression about that brand,
product, or service.
JOURNAL - https://www.emerald.com/insight/content/doi/10.1108/10610420810916362/full/pdf?
title=customer-satisfaction-in-the-first-and-second-moments-of-truth
At the point of purchase, or the first moment of truth, the purpose of the package is to get the
customers' attention and function as a silent salesman that helps sell the product. This is a difficult task
because customers make choices among products within seconds when they are shopping (Judd et al.,
1989).
This second moment of truth is a process that deals with use, handling, and actual consumption post
purchase.
BOOK -
Normann, R. (1991). Service management : strategy and leadership in service business. Chichester ; New
York: Wiley.
Service Dominant Logic - Answers An approach to business that recognizes that customers do not
distinguish between the tangible and the intangible aspects of a good or service, but rather see a
product in terms of its total value.
"People don't want to buy a quarter-inch drill, they want a quarter-inch hole" - Theodore Levitt
The customer is the co-creator of value and value is unique to the beneficiary.
BOOK -
Vargo, S.L. and Lusch, R.F. (2019). The SAGE handbook of service-dominant logic. Los Angeles: Sage.
VLE Books - SuPrimo
, https://r4.vlereader.com/Reader?ean=9781526455482
The foundational proposition of S-D logic is that organizations, markets, and society are fundamentally
concerned with exchange of service—the applications of competences (knowledge and skills) for the
benefit of a party. That is, service is exchanged for service; all firms are service firms; all markets are
centered on the exchange of service, and all economies and societies are service based.
Historical Perspectives on S-D Logic -
The great economic law is this: services are exchanged for services...it is trivial, very commonplace; it is
nonetheless, the beginning, the middle, and the end of economic science.- Fredric Bastiat 1848
What is needed is not an interpretation of the utility created by marketing, but a marketing
interpretation of the whole process of creating utility.- Wroe Alderson 1957
The importance of physical products lies not so much in owning them as in obtaining the services they
render.- Philip Kotler 1977
Customers do not buy goods or services. They buy offerings that render services, which create
value...activities render services, things render services.- Evert Gummesson 1995
The focus is not on products, but on the consumers' value-creating processes, where value emerges for
consumers and is perceived by them...the focus of marketing is value cr
Value Co-Creation - Answers Customers act as collaborators with a manufacturer or retailer to create
the product or service
EXAMPLE -
Lego Ideas
https://ideas.lego.com/
Lego fans submit their ideas and if it is good enough and gets enough votes then it will be created as a
product for customers to buy.
