AHMEDABAD UNIVERSITY

AMRUT MODY SCHOOL OF MANAGEMENT

UNDERGRADUATE PROGRAMMES
2021-2022 MONSOON SEMESTER
ASSIGNMENT CHAPTER 1 &2
MKT621 SERVICES MARKETING

Total Marks: 25 Time: 11.00 - 01.00 pm

Answer any Five from the following.

1. Describe the four broad “processing” categories of services, and provide examples for
each.

2. What are the five powerful forces transforming the service landscape, and what impact do
they have on the service economy?

3. What is so special about services marketing that it needs a special approach?

4. Describe the difference between high-contact and low-contact services, and explain how
the nature of a customer’s experience may differ between the two.

5. Why do consumer’s perceptions of risk play an important role in choosing between

alternative service offers? How can fi rms reduce consumer risk perceptions?

6. What are the five dimensions of service quality? How can you measure service quality?

Q1) The four broad processing categories of services are

1) People processing
2) Possession processing
3) Mental stimuli
4) Information processing

People processing-

The services which are directed at the people’s bodies is known as people processing service
where you find the high interaction of the customer at the service factory

Examples- Manicure, spa, Fitness,

Possession processing-
The services which are directed at the physical possession is known as possession processing
here the interaction of the customer is limited

Examples- laundry, Repair, warehousing

Mental stimuli processing-

The services which are directed at the people’s mind is known as Mental stimuli processing.
Where you don’t require any physical presence and the service is completely information based

Example- therapy, Movies,

Information processing-
The services which are directed at intangible assets is known as information processing.
Example- insurance, consulting, legal services, website development

Q2) The five powerful forces which are transforming the service economy are

1) Government policies
2) Social changes
3) Business trends
4) Advance IT
5) Globalization

Government policies, social changes, Business trends, Advance IT, Globalization are all major
factors affecting todays modern service economies. When it comes to government policies it
shows a good impact in the economy by changing the rules and regulations of the firm and by
making the privatization of the firm and also by adding new rules to protect customers and
employee of the firms and, in terms of effect, the expansion of information technology and
communications is undoubtedly the most significant impact shown in the economy. The service
industry is being influenced by big data, cloud storage, user-generated content,
telecommunications equipment, network technology, machine intelligence, these technology, in
fact, allow businesses to improve their connections with customers and deliver a variety of
services and also allowing companies to operate on international levels adding more branches to
the services globally.

Q4)
High contact services-
In high contact services the customer visits the service sector and stay there until the service is
delivered. In high contact services we can find the active participation between the service
provider and the customer. It’s a kind of people processing where you physically visit the service
sector.
Low contact services –
In low contact services there is no physical contact with The service provider. In low contact
services customer contact their service provider using different electronic mediums and through
physical distribution channels. For example-website, ATM,

The nature of customer experience differing in high contact and low contact services. In high-
contact services, client interaction includes humans; in low-contact services , customer
interactions are primarily conducted through electronic mediums and physical distribution
channels -> which might be more convenient for some services.

Q5)
Services are difficult to evaluate because to the high percentage of experience and credibility
attributes, and clients may be concerned about making the "incorrect" purchasing decision. 
whereas First-time users, in particular, experience additional confusion while purchasing and
evaluating the service.

Firms can reduce the risk perceptions through-

 Getting information from people you trust and respect, such as relatives, friends, and
neighbors
 Using the Internet to evaluate service offerings, look for reviews and ratings, and look
into social media debates
 Looking out for the warranties and guarantee of the service provider
 Encourage potential clients to preview the service via websites and videos, as well as
visiting the service facilities, before making a purchase.
 Choosing a reputable company for purchase
 Provide free trials for services that have a high level of experience.
 Show your credentials. Doctors, builders, and lawyers, for example, frequently show their
degrees and other credentials so that customers can “see” that they are certified to give
best services.
 For services with a high level of credibility and client involvement, advertising is critical.
It aids in the understanding of the service's advantages and utilisation, as well as the ways
in which customers may get the best outcomes.

Q6) The five dimensions of the service quality are

1) Tangibility
2) Reliability
3) Responsiveness
4) Assurance
5) Empathy
The service quality can be measured through SERVQUAL instrument based upon those 5
dimensions. This is the most often used way of measuring subjective aspects of service quality.
You invite your consumers to rate the service they received in comparison to their expectations
via a survey.