C13) Pow are compeLlng for employees and compeLlng for cusLomers slmllar?

Ans 1o geL Lhe besL people an organlzaLlon needs Lo ldenLlfy Lhem and compeLe wlLh oLher
organlzaLlon Lo hlre Lhem Leonard 8erry and A parasuraman approach as compeLlng for LalenL
markeL share 1hey suggesL LhaL flrms acL as markeLers ln Lhelr pursulL of Lhe besL employees [usL as
Lhey use Lhelr markeLlng experLlse Lo compeLe for cusLomersllrms LhaL Lhlnk of recrulLlng as a
markeLlng acLlvlLy wlll address lssues of markeL (employ) segmenLaLlon producL ([ob) deslgn and
promoLlon of [ob avallablllLy ln ways LhaL aLLracL poLenLlal long Lerm employesmany company as
adopLed Lhe ldea LhaL employees are also cusLomers of Lhe organlzaLlon and LhaL baslc markeLlng
sLraLegles can be dlrecLed aL Lhem 1he producLs LhaL Lhe organlzaLlon has Lo offer lLs employees are
a [ob (wlLh assorLed beneflLs) and quallLy of work llfe 1o deLermlne wheLher Lhe [ob and work llfe
needs of employees are belng meL organlzaLlons conducL perlodlc lnLernal markeLlng research Lo
assess employee saLlsfacLlon and needs

C17 ulscuss how servlce flrms can mlnlmlze nonmoneLary purchase cosLs
ln recenL years economlsLs have recognlzed LhaL moneLary prlce ls noL Lhe only sacrlflce
consumers make Lo obLaln producLs and servlces uemand Lherefore ls noL [usL a funcLlon of
moneLary prlce buL ls lnfluenced by oLher cosLs as well nonmoneLary cosLs represenL oLher
sources of sacrlflce percelved by consumers when buylng and uslng a servlce 1lme cosLs
search cosLs and psychologlcal cosLs ofLen enLer lnLo Lhe evaluaLlon of wheLher Lo buy or
rebuy a servlce and may aL Llmes be more lmporLanL concerns Lhan moneLary prlce
Ways Lo reduce nonmoneLary cosLs
llrsL a servlce flrm may be able Lo lncrease moneLary prlce by reduclng Llme and oLher cosLs
Lg a servlces markeLer can reduce Lhe percepLlons of Llme and convenlence cosLs when use of
Lhe servlce ls embedded ln oLher acLlvlLles (such as when a convenlence sLore cashes checks
sells sLamps and serves coffee along wlLh selllng producLs)
Second cusLomers may be wllllng Lo pay Lo avold Lhe oLher cosLs Many cusLomers wllllngly pay
exLra Lo have lLems dellvered Lo Lhelr homelncludlng resLauranL mealsraLher Lhan
LransporLlng Lhe servlces and producLs Lhemselves lor reduced walLlng Llme ln a professlonal's
offlce (as ln socalled execuLlve appolnLmenLs where for a premlum prlce a busy execuLlve
comes early ln Lhe mornlng and does noL have Lo walL)
Many oLher servlces save Llme Lhus acLually allowlng Lhe cusLomer Lo buy" Llme Pousehold
cleanlng servlces lawn care babyslLLlng lnLeracLlve cable shopplng personal shopper servlce
home banklng home dellvery of grocerles palnLlng and car peL c1eanlng of Lhese represenL
neL galns ln Lhe dlscreLlonary Llme of consumers and could effecLl vely be markeLed LhaL a LhaL
allow Lhe cusLomer Lo buy Llme are llkely Lo have moneLary value for busy consumers

C18 uescrlbe how alrllnes uLlllze revenue managemenL Lo enhance proflLablllLy
ln Lhe passenger alrllne case capaclLy ls regarded as flxed because changlng whaL alrcrafL flles a
cerLaln servlce based on Lhe demand ls Lhe excepLlon raLher Lhan Lhe rule When Lhe alrcrafL
deparLs Lhe unsold seaLs cannoL generaLe any revenue and Lhus can be sald Lo have perlshed
Alrllnes use speclal sofLware Lo monlLor how seaLs are belng reserved and reacL accordlngly for
example by offerlng dlscounLs when lL appears LhaL seaLs wlll remaln unsold
AnoLher way of capLurlng varylng wllllngness Lo pay ls Lo aLLempL markeL segmenLaLlon A flrm may
repackage lLs baslc lnvenLory lnLo dlfferenL producLs Lo Lhls end ln Lhe passenger alrllne case Lhls
means lmplemenLlng purchase resLrlcLlons lengLh of sLay requlremenLs and requlrlng fees for
changlng or cancellng LlckeLs
1he alrllne needs Lo keep a speclflc number of seaLs ln reserve Lo caLer Lo Lhe probable demand for
hlghfare seaLs 1he prlce of each seaL varles lnversely wlLh Lhe number of seaLs reserved LhaL ls Lhe
fewer seaLs LhaL are reserved for a parLlcular caLegory Lhe lower Lhe prlce of each seaL 1hls wlll
conLlnue Llll Lhe prlce of seaL ln Lhe premlum class equals LhaL of Lhose ln Lhe concesslon class
uependlng on Lhls a floor prlce (lower prlce) for Lhe nexL seaL Lo be sold ls seL
C16 ueflne LoLal relaLlonshlp MarkeLlng? Lxplaln wlLh an example
Ars Tola| re|al|orsr|p rar|el|rg |s rar|el|rg oased or re|al|orsr|ps,relWor| ard |rleracl|or |l recogr|ses lral
rar|el|rg |s eroedded |r lre lola| raragererl ol lre relWor| ol lrese se|||rg orgar|sal|ors lre rar|el ard
soc|ely |l |s de|ecled lo |org lerr W|r W|r re|al|orsr|p W|lr |rd|v|uda| cuslorers va|ues |s jo|rl crealed oelWeer
lre parl|es |rvo|ved.ll lrarscerd lre oourdar|es oelWeer spec|a||sl lurcal|ors ard d|scp||res.ll rade larg|o|e
lrrougr lre lr|rly rar|el, rega ard raro re|al|orsr|ps lo rs 30.
C10 Ans uenLlsL mosLly glve servlce aLLrlbuLe guaranLeesln such Lype of guaranLees parLlcular
aLLrlbuLes of Lhe servlce LhaL are lmporLanL Lo cusLomers are offred
C9 Ans CuaranLee means assurance LhaL a producL offered by a flrm wlll perform as promlsedand
lf noL Lhen some form of reparaLlon wlll be underLaken by Lhe flrm guarnLees should be
uncondlLlonal meanlngful easy Lo undersLand and should be easy Lo lnvoke
AlLhrough servlce guarnLees can allay uncerLalnlLles and help Lo reduced perslved rlsk buL lL ls noL
always correcL llke ln glven slLuaLlon servlce quallLles ls Lruly unconLrollableln such Lype of
lnsLlLuLes one can noL guaranLee abouL Lhe poslLlve resulLslL depends upon so many facLorsSo
acoordlng Lo meshe should noL offer servlce guaranLee

C11 Ans Servlce blue prlnL ls a plcLure or map LhaL accureLly porLrays Lhe servlce sysLemlL
provldes a way Lo break Lhe servlce ln Lo loglcal componenLs and Lo deplcL Lhe sLeps or Lask ln Lhe
processes Lhe mean by whlch Lhey are execuLed and evldence of Lhe servlce as consumer
experlences lL

C12 Ans lL ls Lhe gap beLween company percepLlons of consumer expecLaLlons and cusLomer
drlven servlce sLandards and deslgns CusLomer ueflned 8equlremenLs are vlslble and
assessed/ measured by consumers
Malnly 2 Lypes of cusLomer deflned servlce sLandered are Lhere ln markeL

1)Pard cusLomer deflned sLandards Lhlngs LhaL can be counLed Llmed or observed Lhrough
audlLsLg uell Lracks lLs performance Lo Lhese sLandards and rewards employees on Lhe basls of
Lhelr meL promlses" or rellablllLy whlch ls ofLen greaLer Lhan 98
2) Soft customerdef|ned standards
Cplnlonbased measures LhaL cannoL be observed and musL be collecLed by Lalklng Lo cusLomers
(percepLlons and bellefs)Lg general elecLrlc phone operaLors undersLandlng cusLomer
quesLlons followlng Lhrough on promlces belng courLeous belng knowledgeable

Q13. Human behavior is inIluenced by the physical setting in which it occurs. How does the
servicescape inIluence the individual behavior oI consumers and employees? Give examples
Ans) Servicescape can have a proIound eIIect on the customer experience. This is true
whether the experience is mundane (e.g bus ride), personally meaningIul (e.g church
wedding) or spectacular (e.g a week long travel adventure). In all cases the physical evidence
oI the service will inIluence the Ilow oI the experience, the meaning customer attach to it,
their satisIaction and their emotional connection with the company delivering the experience.
There are three types oI servicescapes. At one extreme is the selI-service environment, in
which the customer perIorms most oI the activities and Iew iI any employee are involved. E.g
oI selI service environment include ATMs, movie theatres, selI service entertainment such
as golI and theme parks and online internet serviced. The organization can plan the
servicescape to Iocus exclusively on marketing goals such as attracting the right market
segment, making Iacility pleasing and easy to use and creating the desired service experience.
At the other extreme oI the use dimension is remote service, which has little or no customer
involvement with the servicescape. Telecommunication, utilities, Iinancial consultants,
editorial and mail order service are examples oI services that can be provided without the
customer ever seeing the service Iacility. In remote services the Iacility can be set up to keep
employees motivated and to Iacilitate productivity, teamwork, operational eIIiciency or
whatever organizational behaviour goal is desired without any consideration oI customers
because they will never see the servicescape.
Interpersonal services are placed between the two extreme and represent situation in which
both the customer and the employee are present and active in the servicesacpe. Eg hotels,
restaurants, hospitals, educational settings and banks. In these situations the serviceescape
must be planned to attract, satisIy and Iacilitate the activities oI both customers and
employees simultaneously.