Services Marketing

Question 1

Managing Service Quality

Type 1 vs. Type 2 Error

Answer 1

Null Hypothesis: The customer makes an honest request

Type I error: Deny an honest request

Type II error: Satisfy a fraudulent request

Question 2

Managing Service Quality

Employees freedom

Answer 2

• Service quality is all about policy, to be carried out by employees
• How much do we want to empower employees?

More freedom: Riskier

Less freedom: Less flexibility

Depends on the level of qualification of the employee and the standardization vs. customization of goals

Question 3

Types of customer value

Answer 3

• Functional value
• Monetary value
• Psychological value

Question 4

7Ps of services marketing

Answer 4

• Price
• Product
• Place
• Promotion
• Process
• People
• Physical evidence

Question 5

Levels of products and services

Answer 5

Core customer value:

What is the customer really buying? (core benefit)

The core product:

Consists of the real core benefit or service

• May be a functional benefit
• or may be an emotional benefit in terms of how the product or service will make you feel

Question 6

Customer lifetime value

Answer 6

AC: Acquisition cost

Mg: Profit margin from customer

C: Marketing costs associated with customer

i: Discount rate
r: Retention rate

CLV = -AC + (Mg - C)/(1 + i - r)