ASSIGNMENT KMB MK04

MBA IVTH Sem

NAME- Shubhendu Shekhar Pandey
Roll no.- 1900940700113

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
COMPARISO GOODS SERVICES
N

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 There is a time lag between Production and Consumption of

and production and consumption of services occurs simultaneously.
Consumption 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.