University of Johannesburg_College of Business and Economics: School of Consumer Intelligence & Information Systems, Marketing Management_ Sick Test 1 Memorandum

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College of Business and Economics: School of Consumer Intelligence & Information Systems, Marketing Management_ Sick Test 1 Memorandum QUESTION 1 15 MARKS 2.1 One of the main distinguishing chara... cteristics of services is intangibility. Discuss the characteristics of intangibility (2 marks) and the marketing implications applicable to customers (4 marks) and management response (4 marks). (10) Model answer: Chapter 1, pages 7 – 9 Characteristics • Pure services cannot be assessed by senses - sight, feel, smell, taste etc.  • Emphasis on processes rather than outcomes.  • Can only assess a service after it has been consumed.  • Services purchases may be perceived riskier than goods.  Marketing Implications: Customers  Difficulty comparing services.   High perceived risk.   Use personal information sources.   Use price as quality indicator.  Management  Reduce complexity.   Stress tangible cues.   Word of mouth.   Focus on service quality.  Award 1 mark for each explained characteristic of intangibility (1 X 2 = 2) Award 1 mark for each explained marketing implication of intangibility applicable to customers (1 X 4 = 4) Award 1 mark for each explained marketing implication of intangibility applicable to management (1 X 4 = 4) 2.2 Services are said to be “perishable” which means that because they are fixed in time and space, and service capacity may be lost if it is not used. Explain what causes this perishability (2 marks) and what the result is in the marketing of services (3 marks). (5) Model Answer: Chapter 1, page 13 Cause • Cannot store • Fluctuating demand • Short term supply inelasticity Result • Problems if demand difficult to predict • Just-in-time production • Congestion and unused capacity  Award 1 mark for explaining what causes perishability (1 X 2 = 2) Award 1 mark for explaining what the result of perishability is in the marketing of services (1 X 3 = 3) QUESTION 2 15 MARKS 3.1 Describe ANY SEVEN (7) ways in which computer-mediated encounter can have an impact on traditional face to face encounter. (7) Model answer: Chapter 2 Page 69 • Computer mediation can completely replace the need for a face-to-face encounter. For example, online banking.  • Computer mediation may facilitate face to face encounter. For example, PSL sell soccer match tickets through their website for collection at the entrance where the soccer match will take place.  • Sometimes, website can be used to ‘educate’ a customer prior to a face-to-face encounter. For example, a customer may learn about the Gautrain schedule and routes online before going to the train station to buy a ticket.  • The service provider may be able to offer a much wider range of service of encounter possibilities. For example, internet banking allows many bank transactions to take place at a convenient time…such as sending money, applying for a personal loan, home loan, and credit card. Etc.  • It is often possible to program machinery to provide a range of service reliable in a manner that would not have been possible if the encounter was based on a [Show More]

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