FACULTY OF BUSINESS ADMINISTRATION-EASTERN UNIVERSITY

Mid Term Examination

Course Title: Service Marketing,Mkt.565 Course Teacher: Ms. Parisa Islam
Student: Meheroze Al Hassan Student No: 193700006

Q.1.A.1) How does the traditional marketing mix differ from service mix?

Ans.1.A.1): The Traditional Marketing Mix, based on the 4Ps — product, price, place and
promotion, arguably discounts the breadth and complexity of current-day marketing. Therefore,
three Ps were added to the Service Mix — People, Physical Evidence & Process which sharely
differ & effectively respond to crucial changes in all forms of Service marketing including
customer service, e-commerce and social media etc. Let us briefly know about Service Mix as
follows:
People: People or all human actors who play a part in service delivery and thus influence the
buyers‘ perceptions; namely, the firm‘s personnel, the customer, and other customers in the
service environment. Another way, People are the most important element of any service or
experience. Services tend to be produced and consumed at the same moment, and aspects of the
customer experience are altered to meet the individual needs of the person consuming it.
Process: Process is the actual procedures, mechanisms, and flow of activities by which the
service is delivered – this service delivery and operating systems. There are a number of
perceptions of the concept of process within the business and marketing literature. Some see
processes as a means to achieve an outcome, for example – to achieve a 30% market share a
company implements a marketing planning process. However in reality it is more about the
customer interface between the business and consumer and how they deal with each other in a
series of steps in stages, i.e. throughout the process.
Physical Evidence: Physical evidence is the environment in which the service is delivered, and
where the firm and customer interact, and any tangible components that facilitate performance or
communication of the service. In other word it is the material part of a service. Strictly speaking
there are no physical attributes to a service, so a consumer tends to rely on material cues. There
are many examples of physical evidence, including some of the following buildings, equipment,
signs and logos, annual accounts and business reports, brochures, your website, and even your
business cards.

Q.1.A.2): In this Case, how does Southwest Airlines use the three elements of extended service
mix? Discuss in details.

Ans.1.A.2): Southwest Airlines has very successfully made its high-value position through using
the Three Elements of Extended Services Marketing Mix that significantly reinforces the
unique image in the customer‘s mind and US Airline Industry as well. It has maintained
consistently for more than 30 years unchallenged while making money every year.
People: Southwest Airlines very effectively uses its Employees and its Customers to hold its
position while believing Employees come first, then Customers.
To them Employees are:
 Employees are unionized.
 People are trained to have fun, allowed to define what ―fun‖ means, and given authority to do what it
takes to make flights light-hearted and enjoyable.
 Employees are hired for their attitudes; technical skills can be and are trained.
 Staffs are thus the most productive workforce in the U.S. airline industry

Customers are:
 Customers also are allowed & included in the atmosphere of fun.
 Many of them get into the act by joking with the Crews/Staffs and each other
 Thus Customers express their Satisfaction by flooding the airline with letters.

Process: Southwest also reinforces its position through the effective Service delivery process.
 No assigned seats on the aircraft.
 Passengers line up and are ―herded‖ by assigned group‘s numbers onto the plane, where they jockey for
seats.
 The airline almost does not transfer baggage to connecting flights on other airlines.
 No inflight Food is served.
 In all, the process is very efficient, standardized, and low-cost.
 It allows for quick turnaround and low fares.
 Customers are very much part of the service process, taking on their roles willingly.

Physical Evidence: Southwest eventually reinforces the market position with using all the tangibles
efficiently. Such as:
 Employees dress casually, with shorts in the summer to reinforce the ―fun‖ and further emphasize the
airline‘s commitment to its employees‘ comfort.
 No in-flight meal service confirms the low-price image through the absence of tangibles—no food.
 Because many people joke about airline food, its absence for many is not viewed as a value detractor.
 Southwest‘s simple, easy-to-use website is yet another form of consistent, tangible evidence that
supports the airline‘s strong positioning and reinforces its image.

Q.1.A.3): Do you think they have effectively done that, or what Suggestion would you give
them for improvement?
Ans.1.A.3): Southwest Airlines has almost effectively & successfully done the Three Elements of
Extended Services Marketing Mix to hold the High-Value Position in US Airlines Industry.
Yet, in my opinion, few suggestions can be thought for further improvement to make it the most
Low cost as well as affordable Service providing Carrier, are given below:
People:
 Pilots may be recruited when they are young as pilot cadets. They work hard and take early promotions
and then move on after 10-years or so to further their careers.
 Cabin crews may pay for their uniforms to be cleaned. They may even invest in their own training.
 Few Souvenirs, Gift items etc. may be sold by the demand of the customer on board.
 Crews are mainly responsible for passenger safety as well as ancillary revenues on board.

Process:
 No check in. Simply show your passport and supply your reference number.
 No preferred/Priority Seat. It is first come, first served. This aids speed.
 There are no air bridges (the tunnel that connects to the side of the aircraft when to board it). You walk
or are bused to the aircraft.
 Baggage is deposited directly onto the terminal – it‘s quick.

Physical Evidence:
 Planes- the most expensive asset, may be bought when other Airlines do not buy them & thus get big
discounts on purchase.
 They may use Secondary Airports to curtail cost.
 They may use less busy Airports as Costs are lower and aircraft can be turned around faster.
 Keeping aircraft in the air as much as possible is another important part of the low cost jigsaw.

Q.1.B) In the context of Bangladesh, how might the three new elements of service mix (process,
people, and physical evidence) help to satisfy the customers of a medical service providing firm
like – Square Hospital?

Ans.1.B): The three new elements of Service Mix (process, people, and physical evidence) can
bring significant & positive change in medical & healthcare service providing firm like Square
Hospital (In the context of Bangladesh) , are mentioned below:

People:
 Under Square Hospital, the marketing mix variable people includes all the different people involved in
the service providing process (internal customers) which includes doctors, nurses, supporting staff etc.
 The earliest and the best way of having control on the quality of people will be by approving
professionally sound doctors and other staff.
 Hospital is a place where small activity undertaken can be a matter of life and death, so the people factor
is very important.
 In the Square Hospital the people factor has to be specially taken care of, for their behavioural
dimensions & Attitude to provide right service to the patients.
 It is against this background that even if the users get the quality medical aid they are found dissatisfied
with the rough and indecent behaviour of the doctors.
 Under hospital marketing a right person for the right job has to be appointed and they should be
adaptable and possess versatility.
 The patients in the hospitals are already suffering from trauma, which has to be understood by the
doctors and other staff & they should be constantly motivated to give the best of their effort.

Process:
 Process generally forms the different tasks that are performed by the hospital.
 The process factor is mainly dependent on the size of the hospital and kind of service it is offering.
 A typical process involved in a medium sized hospital can be as follows: Admission, Diagnosis,
Treatment & Discharge.
 Apart from this flow there are other allied activities like record keeping administration at services
etc which fall under the process factor. These stages do not exist separately but are interlinked.
 The most important elements are lines of communication within the setup.
 The experience of the patient depends on the final interplay of all these factors.

Physical Evidence:
 It does play an important role in health care services, as the core benefit a customer seeks is proper
diagnosis and cure of the problem. For a local small time dispensary or hospital physical evidence may
not be of much help. In recent days some major super speciality hospitals are using physical evidence for
distinguishing itself as something unique.
 Physical evidence can be in the form of smart buildings, logos, mascots etc. a smart building
infrastructure indicates that the hospital can take care of all the needs of the patient.
 Examples -
 1. Apollo/United hospital has got a smart building, which helps, in developing in the minds of the
people, the impression that it is the safest option among the different hospitals available to the people.
 2. Fortis and Apollo hospitals have a unique logo, which can be easily identified.
 Physical evidence also helps in beating the intangibility factor.
Q.2.A) In the above case, how HP Gas predict the possible issues of Customer GAP and what
are those issues? Describe how HP Gas addresses the Four Provider’s GAP. Mention each
GAP and discuss their steps in details? 5
Ans.2.A.1): Theoretically we know that the most important CUSTOMER GAP is the gap or
difference between Customer Expectations and Perceptions & these are identical where
Consumers like to receive what they thought, they would & they should. Expectations are the
result of background, lifestyle, personality, demographics and advertising, while Perceptions
are subjective that rely on a customer's experience with a product or service.
HP Gas , the second largest LPG market Leader in India, has effectively predicted the issues of
Customer GAP Based on extensive marketing research to understand as well as build brand
image by increasing focus on the Needs and Expectations of their customers. Needs are not
merely limited to receiving Refills in time, but Expectations also cover Value Added Services
including the cylinders to carry the right quantity of gas.

Ans.2.A.2): HP Gas addresses the Four Provider‘s GAP …..embarked upon a new initiative to
build brand image by increasing focus on consumers‘ needs and expectations.Customer
expectations are not merely limited to receiving refills in time, but also cover value added services
& research to understand the needs and expectations of the customers to provide totally hassle-
free experience to the consumers.This is how HP Gas addresses the Four Provider‘s GAP……..
1. Provider’s GAP-1/ Listening Gap: It is the difference between customer expectation of
services and company understanding of those expectation. A primary cause in many firms for not
meeting customers‘ expectations — that is, the customer gap — is that the firm lacks accurate
understanding of exactly what those expectations are. Many reasons exist for managers not being
aware of what customers expect: They may not interact directly with customers, they may be
unwilling to ask about expectations, or they may be unprepared to address them. Closing the
listening gap requires that management or empowered employees acquire accurate information
about customers‘ expectations. Customer expectations must be assessed accurately before new
services are developed, and they must be tracked after the services are introduced service and
company understanding of those expectations.
 Cause of Listening Gap:
 The Top Management members are almost unavailable to listen to the Problems/Challenges encountered
by the customers
 The Mid & Lower Managements & Admin Staffs are too busy to reach & preoccupied to listen to the
expectations and perceptions of the Customers.
 Lack of upward communication
 Inadequate Customer Reseach, Service Recovery
Reducing Listening Gap:
 Upward Communication between HP Gas & Customers through a network of over 2897 distributors.

 Continuous Communication between HP Gas Customer Service Staffs & over 36 million Customers.
 By Adequate Customer Research, Service Recovery they understood the needs and expectations of
the customers
 Adopted fast changing market dynamics and shifts from seller‘s market to buyer‘s market
 HP Gas offered value added services along with timely refills

2. Provider’s GAP-2/ Service Design & Standards Gap:

This gap reflects management‘s incorrect translation of the service policy into rules and guidelines for
employees. Some companies experience difficulties translating consumer expectation into specific
service quality delivery. This can include poor service design, failure to maintain and continually update
their provision of good customer service or simply a lack of standardization. This gap may see
consumers seek a similar product with better service elsewhere. Service design and standard gap exists
in service organizations for variety of reasons. Those people responsible for setting standard, typically
management, sometimes believe that customers‘ expectations are unreasonable or unrealistic.
Cause of Service Design & Standards Gap:
 Weak or Traditional Service Design
 Poor Customers Driven Standards
 The Physical Evidence are Backdated or not very modern.
Reducing Service Design & Standards Gap:
 Establishing Strong & Advanced Service Design with totally hassle-free experience to the consumers
 HP Gas has taken several measures to design, standardized
 Robust & Smart Customers Driven Standards & benchmark its marketing activities
 The Physical Evidence must be updated &/or highly modern.
 HP Gas offers distinct set of value-added services To effectively manage customer expectations
 HP Gas, for the first time in India, provided the checking option of weight of gas cylinder right at the
doorstep of the customers.
 HP Gas launch the concept ‗Jee Haan‘ along with ―promise Yahi, Weight Sahi‖ campaign reinforcing
a strong positive service orientation
 thereby building a stronger market share through greater customer satisfaction.
3. Provider’s GAP-3/ Service Performance Gap: This gap exposes the weakness in employee
performance. Organizations with a Delivery Gap may specify the service required to support consumers
 but have subsequently failed to train their employees, put good processes and guidelines in action. As a
result, employees are ill equipped to manage consumer‘s needs.

Cause of Service Performance Gap:

 Weak or Deficient Human Resource Policy.
 Poor Response to match Supply-Demand.
 Customers not playing roles appropriately
 Service Intermediaries Problem
Reducing Service Performance Gap:
 Making Strong or Efficient Human Resource Policy.
 Doing Correct Response to match Supply-Demand.
 Customers must be playing their roles appropriately
 Removing Service Intermediaries Problem throughout.
 Every delivery man carries a weighing scale for checking the right weight of gas.
 HP Gas provides customers with the pilfer-proof seal guaranteeing cylinder carries the right weight.
 Special training is being provided to distributors under the program ―Millennium Distributor‖
 More than 1000 distributor have been provided softer skills to help them change their mindset to meet
challenges of the competitive environment.

4. Provider’s GAP-4/ Communication Gap: When promises made by companies through advertising
media and communication raise customer expectations & if over-promising in advertising does not match
the actual service delivery, it creates a communication gap. Consumers are disappointed because the
promised service does not match the expected service and consequently may seek alternative product
sources.
Cause of Communication Gap:
 Poor integrated Service Marketing Communications
 Less effective Management of Customers Expectations
 Overpromising
 Weak Horizontal Connection
 Unreasonable Pricing/Costing
Reducing Communication Gap:
 Creating Strong integrated Service Marketing Communications
 Making Much more Effective Management in accordance with Customers Expectations
 Balancing between Overpromising & under promising
 Preparing Robust Horizontal Connection
  Establishing Reasonable Pricing/Costing
 Delivery of cylinders is assured within 24 hours and delivery timings have been extended from 8 am
to 8 pm on all seven days in a week.
 Installation of a new connection is done within 24 hours
 A single contact for cylinder refill booking, customer service enquiries and emergency services have
been provided through a 4-digit single number, which is valid all over the country.
 HP Gas computerized the entire distributor network making it convenient for consumers to book
refills thru internet etc.

Q.2.B) As a student of Eastern University, can you think about any gap between your
expectations and perceptions of this institution? What are those expectations that are not
fulfilled? How could Eastern University reduce the Four Provider’s GAP? 5
Ans.2.B.1): As a student of Eastern University I think all Four Provider‘s GAP remain between
the expectations and perceptions, can be said as follows:
2. Listening Gap:
 The Top Management /Trustee Board members are almost unavailable to listen to the
Problems/Challenges encountered by the Students(Main Stakeholders of EU.BD)
 The Mid Management, Teachers & Admin Staffs are too busy to reach & preoccupied to listen to the
expectations and perceptions of the Students sometime.
 Lack of upward communication
 Inadequate Customer Reseach, Service Recovery

2. Service Design & Standards Gap:

 Weak or Traditional Service Design
 Poor Student Driven Standards
 The Physical Evidence are Backdated or not very modern.

3. Service Performance Gap:

 Weak or Deficient Human Resource Policy.
 Poor Response to match Supply-Demand.
 Students not playing roles appropriately
 Service Intermediaries Problem
4. Communication Gap :
 Poor integrated Service Marketing Communications
 Less effective Management of Students Expectations
 Overpromising & sometimes under promising
 Weak Horizontal Connection
 Unreasonable Pricing/Costing

Ans.2.B.1): The expectations that are not fulfilled as given below:

Overall, the current situation of Eastern University that students‘ expectations were not fully met.
This might affect student‘s enrolment to the university. Due to this situation, students may choose
to live outside campus which may possibly affect their commitment to academic and co-curricular
activities. It would be more possible negative implication when the students‘ expectations were
not met. In order to minimize those gaps, improvement of the Teaching Staffs, Admin &
Management is vital. As students are the most important stakeholders for the university survival,
their voice should be heard. In fact, their feedback should be treated in a very positive manner.
There are few Gaps as follows:
 The biggest gap exists in terms of Campus Facilities
 Learning Environment
 Student Support Services
 Student Accommodations inside or near the Campus
 improvement of the Teaching Staffs(more fulltime faculties needed), Admin & Management

Ans.2.B.3): Eastern University still can reduce the Four Provider‘s GAP , as mentioned:
1. Removing Listening Gap:
 Upward Communication between Top Management /Trustee Board members & Students.
 Continuous Communication between Teachers & Admin Staffs & Students.
 Adequate Customer Research, Service Recovery
2. Correcting Service Design & Standards Gap:
 Establishing Strong & Advanced Service Design
 Robust & Smart Student Driven Standards
 The Physical Evidence must be updated &/or highly modern.
3. Solving Service Performance Gap:
 Making Strong or Efficient Human Resource Policy.
 Doing Correct Response to match Supply-Demand.
 Students must be playing their roles appropriately
 Removing Service Intermediaries Problem throughout.
4. Reducing Communication Gap :
 Creating Strong integrated Service Marketing Communications
 Making Much more Effective Management in accordance with Students Expectations
 Balancing between Overpromising & under promising
 Preparing Robust Horizontal Connection
 Establishing Reasonable Pricing/Costing

The key recommendations to bridge the gap between students’ expectations and their actual
experiences are as follows:
 appointing qualified and well experienced personnel in the relevant areas and fields,
 increasing budget and recognising the need to put more emphasis on co-curricular and sports activities,
 providing adequate training to staff and personnel who are required to handle and provide student
support and counselling services, and
 making the university staff realise that the university is responsible for producing well-rounded,
qualified and healthy individuals who have close relationship with the community

Q.3.A) Read the above case of Virgin Trains. Describe how their Customer’s expectations
have changed over time? What are the factors do you think might impact their Adequate
level and Desired Level of Service Expectations? How their Zone of Tolerance might shift?

Ans.3.A.1): The Virgin Train Customer‘s Expectations have significantly changed over the
period of time due to several issues including the advent of Technology, Quality Services,
availability of numerous choices, Competitive Market etc. Even many passengers have now had
the experience of travelling on airlines or on overseas railways and as a result their expectations
from long-distance train travel have increased and it has raised level of the Customer Service
Expectation from Adequate Service to Desired Service Level.

Ans.3.A.2): There are few important factors, I think, that might impact the Adequate level and
Desired Level of Service Expectations are as follows:
 Personal Needs: Some customer‘s expectations are based on personal needs which can be physical/
social/ physiological and Functional. Proper understanding of these expectations is vital. For example,
a customer with high social & dependency needs may have relatively high expectations for this
train for having Café or Meal with Music Channels.
 Personal Service Philosophy: It talks about the proper conduct of service providers. Personal service
philosophies and derived service expectations elevate the level of desired service. Personal philosophy is
shaped by previous experience of customer. Corporation Bank Fixed deposit in 15 minutes
 Derived Service Expectation: Enduring Service Intensifiers Individual stable factors that lead the
customer to a heightened sensitivity to service. Customer‘s expectations driven by other persons or
groups, these are derived service expectations. Vacation – The family members have a say in the matter.
 Perceived Service Alternatives: Other service providers from whom customer can obtain service
Consumers having multiple service providers, then their levels of adequate service are higher than those
customers who believe it is not possible to get better service elsewhere.
 Situational Factors: Service performance conditions that the customers view as beyond the control of
the service provider Internet café … power outage Catastrophes/ earthquakes/ strike, there will be lower
service expectations

Ans.3.A.3): The Virgin Train Customer‘s Zone of Tolerance might shift in positive/narrower & smaller
way. As we know that customer‘s Zones of Tolerance vary with different service attributes or dimension.
Customers are generally less tolerant about unreliable services(broken promises or service error).ZOT
varies across customers. It expands or contracts with same customer ( Moods , Emotions, Competition)

Q.3.B) What is your overall impression regarding the Service of Bangladesh railways? As
per your answer, what are the factors that shape up your desired and predicted level of
expectation regarding Bangladesh Railways?

Ans.3.B.1): The Service of Bangladesh Railway is far away from Desired Service Expectations.
The Gap between Desired & Adequate Service Expectation is alarmingly greater i.e. the Zone of
Tolerance is clearly much wider or at its maximum. So it very important to reshape the ZOT so as
to make it narrower for the better Desired Service Expectation.

Ans.3.B.2): There are few important factors, that may shape up the Desired level and
Predicted Level of Service Expectations in Bangladesh Railway are as follows:

 Explicit Service Promises: Explicit Service Promises Personal commitments by sales / marketing Non
personal – Brochures, Advertisements.
 Implicit Service Promises: Implicit Service Promises Service Related Cues, Higher the price, more
impressive the tangibles, the more a customer will expect from the service because a service is charged
at a premium, customers will expect that service will be good. In case delivery is poor, customer feels
cheated.
 Word of mouth Communication: Word of Mouth More powerful in shaping expectations of services
Unbiased Important in case of services that are difficult to evaluate before purchase.
 Past Experiences: It is the customer‘s previous exposure to service that is relevant to focal service &
acts as another shaping tool of predictions & desires.