ASSIGNMENT KMB MK-04

MBA 4th SEM

Name- Sahitya Prakash Singh
Roll No.-1900940700091

Ques 1: What are the main characteristics of services. Explain the

differences between goods and services.

Ans. Characteristics of Services:

1. Perishability :
Service is highly perishable and time element has great significance in service
marketing. Service if not used in time is lost forever. Service cannot stored.

2. Fluctuating Demand:
Service demand has high degree of fluctuations. The changes in demand can be
seasonal or by weeks, days or even hours. Most of the services have peak demand
in peak hours, normal demand and low demand on off-period time.

3. Intangibility:
Unlike product, service cannot be touched or sensed, tested or felt before they are
availed. A service is an abstract phenomenon.

4. Inseparability:
Personal service cannot be separated from the individual and some personalised
services are created and consumed simultaneously.

For example hair cut is not possible without the presence of an individual. A doctor
can only treat when his patient is present.

5. Heterogeneity:
The features of service by a provider cannot be uniform or standardised. A Doctor
can charge much higher fee to a rich client and take much low from a poor patient.

6. Pricing of Services:
Pricing decision about services are influenced by perishability, fluctuation in demand
and inseparability. Quality of a service cannot be carefully standardised. Pricing of
services is dependent on demand and competition where variable pricing may be
used.

7. Service quality is not statistically measurable:

It is defined in form of reliability, responsiveness, empathy and assurance all of
which are in control of employee’s direction interacting with customers. For service,
customers satisfaction and delight are very important. Employees directly interacting
with customers are to be very special and important. People include internal
marketing, external marketing and interactive marketing.

⮚ DIFFERENCE BETWEEN GOODS AND SERVICES.

BASIS FOR
GOODS SERVICES
COMPARISON

Meaning Goods are the material items Services are amenities, facilities,
that can be seen, touched or felt benefits or help provided by other
and are ready for sale to the people.
customers.

Nature Tangible Intangible

Transfer of Yes No
ownership

Evaluation Very simple and easy Complicated

Return Goods can be returned. Services cannot be returned back

once they are provided.

Separable Yes, goods can be separated No, services cannot be separated

from the seller. from the service provider.

Variability Identical Diversified

Storage Goods can be stored for use in Services cannot be stored.

future or multiple use.

Production and There is a time lag between Production and Consumption of

Consumption production and consumption of services occurs simultaneously.
goods.

Ques 2: Write a detailed note on the role of CRM and the Gaps
Model of Service Quality.
Ans. CRM
CRM (Customer Relationship Management) is the newest and the most innovative
innovations of recent time in order to provide better service to customer. CRM is
always a helpful tool for the management and customer service stuffs which cope up
with customer concerns and issues. CRM involves accumulating a lot of data about
the customer. And when all the data of customer are being captured, it is then used
to facilitate customer service transaction by making the information needed to
resolve the issue or concern readily available in order to deal with the customers.
Thus, it results in satisfying more customers, which means more profitable business
and more resources available to the support stuff. In addition, customer relationship
management system is a great help to the management in deciding on the future
course of the company.
CRM review  is also vital and the most important to help out the top management
because it provides crucial data like customer satisfaction efficiency service by the
frontline crews. A piece of customer relationship management software will also be
able to generate the needed reports for product development or new concepts.
CRM system’s generated reports are also invaluable to your advertising and
marketing planners, as they will be able to pinpoint which ideas and which don’t.
CRM system is the main reason where you will be able to release to release
advertisements or plan marketing campaigns more in tune with your target market as
well as the target audiences. CRM also leads to more responses to your
advertisement and a more effective marketing campaign.

⮚ The Gap Model Of Services Quality

The GAP Model of Service quality helps to identify the gaps between the perceived
service and the expected service. Five Gaps occur in the Service Delivery Process.
They are:
GAP 1: Gap between Management Perception and Customer Expectation
This gap arises when the management or service provider does not correctly
analyze what the customer wants or needs. It also arises due to insufficient
communication between contact employees and managers. There is a lack of market
segmentation. This Gap occurs due to insufficient market research.

GAP 2: Gap between Service Quality Specification and Management

Perception 
This gap arises when the management or service provider might correctly
comprehend what the customer requires, but may not set a performance standard. It
can be due to poor service design, Inappropriate Physical evidence, Unsystematic
new service Development process.

GAP 3: Gap between Service Quality Specification and Service Delivery

This gap may arise in situations existing to the service personnel. It may occur due
to improper training, incapability or unwillingness to meet the set service standards.
It can be due to inappropriate evaluation and compensation systems. Ineffective
Recruitment is the main cause of this gap.

GAP 4: Gap between External Communication and Service Delivery

Consumer Expectations are highly influenced by the statements made by the
company representatives and advertisements. This gap arises when these assumed
expectations are not fulfilled at the time of Delivery of Service. 

GAP 5: Gap between Experienced Service and Expected Service

This gap arises when the consumer misunderstands the service quality. For
Instance, A Restaurant Manager may keep visiting their consumer to ensure quality
check and consumer satisfaction, but the consumer may interpret this as an
indication that something is fishy or there is something wrong in the service provided
by the restaurant staff.

Ques 3: Explain the New Service Development Process.

Ans.
I. Front End Planning:
a. Business Strategy Development:
The first Step is to review the vision and mission of the company.
 
b. New Service Strategy Development:
 The product portfolio strategy and a defined organizational structure for new product
/ service development are critical for the foundation of success. (Possibility in terms
of markets, types of services, time horizon, profit criteria).

 
The framework allows an organization to identify possible directions for
growth.
Offerings are some of the most common approaches.
● There should be formal mechanism for ensuring an ongoing stream of
new service possibilities.
● The mechanism may include a formal new service development
department with responsibility for generating new ideas, suggestion
boxes for employees, customers, new service development teams to
identify new services.
 
c. Idea Generation:
Formal brainstorming, solicitation of ideas from employees and customers,
lead-users researchers and learning about competitors.
 
d. Service Concept development and evaluation:
After clear definition of the concept, it is important to produce a description of
the service that represents its specific features and then to determine initial
customer and employee responses to the concept.
 
e. Business Analysis:
● Assuming the service concept is favourably evaluated by customers and
employees at the concept development stage, the next step is to
determine its feasibility and potential profit implications.
 
● This stage will involve preliminary assumptions about the costs of hiring
and training personnel delivery system enhancements, facility changes.
 
 ● The organization will pass the results of the business analysis through its
profitability and feasibility screen to determine whether the new service
idea meets the minimum requirements.

II IMPLEMENTATION:
 
f. Service development and testing:
It involves construction of product prototype and testing for consumer
acceptance.
During this phase, the concept is refined to the point where a detailed service
blueprint representing the implementation plan for the service can be produced.
 
g. Market testing:
The new service may be offered to employees of the organization and their
families for a time to assess their responses to variations in marketing mix.
At this stage, pilot study has to be done for the service, to be sure that the
operational details are functioning smoothly.
 
h. Commercialization:
At this stage, the service goes live and introduced to the market place.
● The first is to build and maintain acceptance of the new service among
large numbers of service delivery personnel who will be responsibility
day-to-day for service quality.
● To monitor all aspects of the service during introduction and through the
complete service cycle.
 
i. Post introduction evaluation:
At this stage, the information gathered during commercialization of the service
can be viewed and changes made to the delivery process, staffing or marketing
–mix variables on the basis of actual offering to the market response.