Marketing of Services (EDL 421)-Semester IV
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1st Module Assessment
Case Study
The case study approach of Max New York Life (MNYL) to become a leading player in the life insurance segment of India. It talks about the training methodologies and process improvements undertaken by the company. The distribution system developed by MNYL has been discussed both in rural and urban markets. The product differentiation strategies followed by MNYL also form a part of this caselet. the company was established in 1999 during the privatization of Life Insurance sector when other players were also being given license. In a short span of 5 years the company was able to open 28 offices and employ thousands of employees across pan India. the company has built a service name for itself through developing the right marketing mix through developing tangibility for the insurance services. Insurance are on the higher side of intangibility but the company has built a strong nam for itself through developing good features products which are their policies along with making a strong employee oriented company. the extended marketing mix has been worked upon through product differentiation and customer services.
Question 1 : A complete new service like Multiplex needs to be seen as
a. Service disruption
b. Incremental service
c. New usage of service
d. None of these
Question 2. Among the extended marketing mix options, which is the most difficult to build
a. Physical Evidence
b. People
c. Process
d. None of these
Question 3. Credence quality for any new service like a multiplex is based on
a. Word of Mouth
b. Prior experience
c. Reputation and Brand name
d. None of these
Question 4. Customers can complaint to the company through many ways
a. Irrants
b. Active voicers
c. Switchers
d. All of these
Question 5. Moment of Truth can be understood as
a. Interaction between customer and employee
b. Service being delivered
c. Promises being fulfilled
d. All of these
Question 6. Service failure through encounter can be easily managed through
a. Phone call
b. Face to face counselling
c. Email reponse
d. None of these
Question 7. The most important consumer buying behaviour for services is
a. Attributes
b. Quality
c. Trust
d. Price
Question 8. The service quality dimensions for services comprise of all except
a. Responsiveness
b. Tangibles
c. Confidence
d. Assurance
Question 9. The services are different from products due to
a. Nature
b. Size
c. Purpose
d. None of these
Question 10. What is the term for technology use for services
a. SET
b. SST
c. STS
d. None of these
Score: 10 on 10
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2nd Module Assessment
Case Study
McDonalds is the world’s largest chain of fast food chain originating from USA. The modest beginnings of McDonald’s at Illinois in USA, turned out to be among the main brand names in the international scene. It has been synonymous to what is widely-accepted the fast-food concept. The company operates over thirty one thousand stores all over the world to date. It was one of the first to perfect the concept of fast service in the food industry in its early days of operations in 1955. Given that the products of the company are mainly western in character; its operations have also expanded to the Asian region. The first Indian McDonald’s outlet opened in Mumbai in 1996. In the rest of the globe, it operates thousands of store franchises that functions autonomously.
Around the world, McDonald’s traditionally operates with local partners or local management. In India too, McDonald’s purchases from local suppliers. McDonald’s constructs its restaurants using local architects, contractors, labour and – where possible – local materials. McDonald’s hires local personnel for all positions within the restaurants and contributes a portion of its success to communities in the form of municipal taxes and reinvestment.
The McDonald’s philosophy of Quality, Service, Cleanliness and Value (QSC&V) is the guiding force behind its service to the customers. McDonald’s India serves only the highest quality products. All McDonald’s suppliers adhere to Indian Government regulations on food, health and hygiene while continuously maintaining their own recognized standards. All McDonald’s products are prepared using the most current state-of-the-art cooking equipment to ensure quality and safety. At McDonald’s, the customer always comes first. McDonald’s India provides fast friendly service- the hallmark of McDonald’s that sets its restaurants apart from others. McDonald’s restaurants provide a clean, comfortable environment especially suited for families. This is achieved through McDonald’s stringent cleaning standards, carefully adhered to McDonald’s menu is priced at a value that the largest segment of the Indian consumers can afford. McDonald’s does not sacrifice quality for value – rather McDonald’s leverages economies to minimize costs while maximizing value to customers. The company has invested Rs 450 crore so far in its India operations out of its total planned investment of Rs 850 crore till 2007.
Question 1 : Any service failure at McDonalds may be evaluated through which aspect of Zone of Tolerance
a. Personal Service Philosophy
b. Benchmarks in mindset of the consumer
c. Urgency of the service
d. None of these
Question 2. For McDonalds the adequate service level is based on
a. Company Philosophy
b. Customer’s Expectations
c. Marketing & Advertising
d. All of these
Question 3. For such a fast food service, the most critical service quality dimension is
a. Reliability
b. Tangibles
c. Responsiveness
d. Assurance
Question 4. How can service failure happen at McDonalds
a. Employee’s mistake
b. Unrealistic Customer expectation
c. Service producers
d. All of these
Question 5. How can service guarantees be promised at a food joint
a. Time and Quality parameters
b. Money back
c. Courteous employees
d. Internal Marketing
Question 6. McDonalds has developed which service quality dimensions
a. RATER
b. SERVQUAL
c. QSCV
d. None of these
Question 7. The difference between customer expectation and customer perceptions is due to
a. Service Delivery
b. Service Quality
c. Wrong Marketing
d. Internal Marketing
Question 8. The dissatisfied customers can undertake what kinds of complaints
a. Irates
b. Switchers
c. Terrorists
d. All of these
Question 9. What service recovery methods can be adopted as a fast food chain
a. Responding to complaints immediately
b. Fail Safe
c. Being Emphatetic
d. None of these
Question 10. Which factor is the most important contributor for the Desired Service level for McDonalds
a. Marketing
b. Brand Name
c. Customer Word of Mouth
d. None of these
Score: 10 on 10
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3rd Module Assessment
Case Study
The Taj hotels the part of TATA industries are one of the renowned business houses of India started Indian Hotels Company Ltd. (IHCL) their first property was the Taj Mahal Palace hotel in Mumbai in 1903 the first five star hotel in India. The company started a long-term geographic expansion of its brand to increase its global presence and from 1970 till today it is the leading hotel chain in the Indian hospitality market. “Offering very advanced and innovative air transport catering and other associated services, Taj SATS works in the 4 major cities in the Indian sub-continent, they are Kolkata, Chennai, Mumbai and Delhi. Currently, Taj SATS supplies to more than 26 international and domestic airlines, and is the leader in the Indian flight catering market” (hotels.com, 2010).”Offering very advanced and innovative air transport catering and other associated services, Taj SATS works in the 4 major cities in the Indian sub-continent, they are Kolkata, Chennai, Mumbai and Delhi. Currently, Taj SATS supplies to more than 26 international and domestic airlines, and is the leader in the Indian flight catering market” (hotels.com, 2010).The vision in strategic management can be referred as the forward thinking of the organization which includes the company’s objectives for its future without considering the particular timeframe to achieve its desired goals. The vision statement helps in describing where the company wants to be in future.The mission always expose the exact type of the business, mostly regarding why it was established, the nature and kind of the industry it is operating, and the different type of consumers it is serving.The Taj hotels mission is to embrace the capacity and proficiency of its staff to improve the quality and standards of the hospitality industry and raise their global presence as one and also want to be the leader in its domestic market.The main objective of Taj is to endorse its corporate citizenship through the different conglomerates which help in the construction of the livelihood for the less-advantaged youth and women. It his undertaking different steps which boost the service levels of the people to be in line with the best when compared to its competitors. The service excellence attitude of Taj has its basic fundamental, delivering services and products through the staff working in its properties.Being the number one in the Indian hospitality industry the Taj hotels are trying to increase their presence globally and there up and downs in the market of Taj hotels which is seen in the market analysis, the difference was clearly seen in the balance scorecards. It is launching different new hotel brands in the Indian market, built on the requirements f the tourists who visit India for variouys purposes. By introducing new projects every year it is protecting its share value without losing fath in its stakeholders. It is seen from thew financial data available because of the recession theTaj hotels suffered financially.
Question 1 Delivery Gap can be closed through
a. Service improvement
b. Training people
c. Improving Standards
d. All of these
Question 2. For a Hotel setup service blueprint is
a. Process
b. Physical Evidence
c. Customer Service
d. None of these
Question 3. In hotels service evidence can be understood as
a. In room service
b. Restaurant
c. Tangibles in the hotel
d. All of these
Question 4. In the hotel service design value can be added through
a. Providing more services
b. Understanding customer requirements
c. Setting High standards
d. Doing Marketing
Question 5. Operational service design at Taj consist of
a. Steps in service delivery process
b. People management
c. Error free service
d. None of these
Question 6. Servicescape relates to
a. The detailed service
b. The environment is which service is delivered
c. Ambience of the hotel
d. Escaping the service
Question 7. The most critical aspect of service triangle for Taj is
a. Internal marketing
b. External marketing
c. Interactive marketing
d. None of these
Question 8. What corporate level decision helps Taj deliver highest quality service
a. Vision
b. Mission
c. Goals
d. Service Culture
Question 9. What is most important in developing a service culture
a. Corporate Strategy
b. Property
c. Management
d. None of these
Question 10. Which is not boundary spanning roles at Taj
a. Chef
b. Reception
c. Housekeeping
d. Security
Score: 10 on 10
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4th Module Assessment
Case Study
Collaboration brings bigger gains than competition, and the leading players in the domestic online travel space seem to have understood this. When in October 2015, MakeMyTrip, Goibibo and Yatra jointly decided to de-list budding budget hotel room aggregator Oyo from their platforms, the stage was set for an Oyo versus OTAs (online travel agencies) showdown. Oyo, however, decided to ignore this unfair practice, which could well have become a matter of investigation at the Competition Commission of India. Instead, it turned its focus on improving its business proposition and expanding its reach. The hotel aggregator moved from a simple distributor model — where it sold some of the inventory of a hotel as Oyo Rooms, while the hotel sold individually on OTAs — to an exclusive model where all rooms were Oyo-branded. That helped it have better control on the systems and processes at the partner hotels. The growing scale of Oyo made Cyrus Mistry, former chairman of Indian Hotels Company, which runs the Taj group of hotels, refer to the startup as a ‘threat’. While Oyo might not have turned a threat for the luxury hotel chain, its expanding dominance in the budget hotel space did take away some of the business from OTAs. The aggregator, started by Ritesh Agarwal in 2013, emerged with a network of over 7,000 hotels — more than 70 per cent (or 5,000) of which Oyo has exclusive tie-ups with. Since OTAs had de-listed Oyo, it meant that these 5,000 exclusive hotels were not available for the customers of these OTAs, limiting their offering severely. Further, because these hotels were in the budget segment, which has a significant share of the market, the OTAs were missing out on a big chunk of the customers.We believe Oyo poses meaningful competition for MakeMyTrip and is not being priced in by the market. Its recent fundraising , ability to grow with low cash burn, and aggressive business plans can further heighten the competitive intensity in India’s online travel market,” global financial firm UBS said in an October report.“We believe Oyo poses meaningful competition for MakeMyTrip and is not being priced in by the market. Its recent fundraising , ability to grow with low cash burn, and aggressive business plans can further heighten the competitive intensity in India’s online travel market,” global financial firm UBS said in an October report.
No surprise, then, OTAs are turning their attention on hotels. MakeMyTrip, which now also owns Goibibo, decided to change its stance on Oyo, welcoming it back on board two weeks ago. The Nasdaq-listed firm’s decision follows a similar move by Yatra in October last year. Explaining the rationale behind this decision, Dhruv Shringi, co-founder and CEO at Yatra, said the customer needs and preferences are constantly evolving. “They seek newer and more interesting ways to make their travel bookings seamless and cost effective”. In one sweep, the tie-up with Oyo has expanded MakeMyTrip’s room inventory from 50,000 to about 53,500. However, not all of Oyo’s exclusive hotels are part of MakeMytrip. To start with, the partnership is only for 3,500 hotels. Rajesh Magow, co-founder and India CEO, MakeMyTrip, had said in 2016 that the decision to de-list Oyo was guided by quality issues. “They were becoming a competition in the budget space. They wanted to aggregate properties and then leverage our platform. It did not make sense for us,” he said. With the evolution of Oyo as a full-scale hospitality company, Magow said, those problems are now a thing of the past, adding that the the business model of an OTA and Oyo is different and there should be no longer be any conflict over dual listing of the same hotels.
Question 1. Capacity constraints in online business can be managed by
a. Combining capacities
b. Not giving service
c. Closing down the business
d. Not being able to serve the customer
Question 2. Channel Conflict between two distribution partners can arise from
a. Cost problem
b. Contradictory Objectives
c. Same Territory
d. Profit earning of both partners
Question 3. Demand and Capacity constraints in services mean
a. Price problem
b. Demand and Supply management
c. Employees issues
d. None of these
Question 4. Developing partnerships lead to
a. Dilution of core service
b. Collaboration to deliver better
c. Competitive problems
d. No problem at all
Question 5. How can MMT manage excess capacity of hotel rooms during off season
a. Selling at low price
b. Changing methods to sell
c. Yield Management
d. Competing fiercely
Question 6. MMT plays the most important role in distribution of airline and hotel services as their
a. Distribution Partner
b. Online Partner
c. Channel Partner
d. All of these
Question 7. Problems beigng faced by online delivery partners
a. Technical issues
b. Mismatch between promises and final delivery
c. Wrong service
d. None of these
Question 8. Service Delivery through distribution partner is difficult because of
a. Intangibility
b. Partners different from company
c. Company Brand image at stake
d. All of these
Question 9. What is the most important role of distribution partner in services
a. To sell
b. To maintain the service and promise
c. To provide customer service
d. None of these
Question 10. Which is not a pricing method for services
a. Penetration pricing
b. Skimming Pricing
c. Customer Pricing
d. Competitive pricing
Score: 10 on 10
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5th Module Assessment
Case Study
Cox and Kings (CKS), one of the prominent tour operators of the world, was established way back in 1758 by Richard Cox when he was appointed regimental agent to the footguards of India. By early 20th century, the company was acting as an agent and banker for the armed forces. In 1922, the company merged with the Henry S. King Bank, subsequent to which the banking business was sold. The travel business grew by leaps and bounds and in the early 21st century, CKS was operating various individual and group tours throughout India as well as abroad.
CKS offices abroad were known as Indian tour specialists in their respective markets and had destinations from the Indian sub-continent (amongst other destinations) in their product portfolio. The current sceanrio of the travel busines is changing and leading towads more of online space that would build into better customer services and overall experience. different travel packages are now being floated that attract different kinds of customers. hence overall service differentiation is needed in order to build upon the right kind of offer for consumers. Services have changed a lot over the years to not be limited to only the service but many related aspects of it that have lead to other companies also taking up many nw marketing methods so that an image can be built that would be positive.
Question 1 : A travel company like Cox and Kings is evaluated more on
a. Physical Evidence
b. People
c. Process
d. Price
Question 2. Competition can be better handled through
a. Service offer differentiation
b. Pricing and after sales service
c. Employee training and improvement
d. All of these
Question 3. Service industry most challenging problem is
a. Maintaning consistency
b. People quality
c. Pricing
d. All of these
Question 4. The new service offer by Cox & Kings lead to
a. Better product
b. Improved services
c. Ideal pricing
d. None of these
Question 5. The service Gapsmodel has what number of gaps
a. 3
b. 4
c. 5
d. 2
Question 6. The sevice blueprint for travel industry would comprise of
a. Front end employees
b. Interaction based employees
c. Back end employees
d. Technology based working
Question 7. What can be understood as changes in travel industry
a. Service offering
b. technology development
c. Employee focus
d. All of these
Question 8. What mistake Cox and Kings have done in providing service
a. New service offer
b. Poor technology adoption
c. International expansion
d. Customer Service improvement
Question 9. Which are the differentiating factors of services from products
a. Intangibility
b. Perishability
c. Variability
d. All of these
Question 10. Which can be categorized as pure service
a. Travel
b. Fast Food
c. Hospital
d. Hotels
Score: 10 on 10
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Assignment 2
Case Study
India is witnessing the growth of multiplexes that offer better viewing experience to the customers. The growth prompted many players such as PVR, INOX, Satyam Cineplexes, and Shringar Films to enter this segment. The caselet provides details about the features of INOX multiplexes that set them apart from the competition. It outlines the expansion strategy of INOX which wants to become a national player in this segment.The Rs 25bn Indian film industry has come a long way from being a regional and proprietary industry to becoming a professional and corporatized industry with global ambitions. However, the Indian film exhibition industry, i.e., movie theaters did not change much — until recently. A majority of the theatres lacked modern equipment that could screen movies with good pictures and sound quality. Apart from this, their dull ambience and poorly planned seating arrangements killed the pleasure of viewing a movie. However, the traditional Indian theatres are now facing tough competition from newly developed multiplexes that are providing the customers with a better movie viewing experience. India’s first multiplex, PVR Anupam, was set up in South Delhi in 1997 as a joint venture between Priya Exhibitors and Australian company Village Roadshow.
Question 1. Capacity constraints in online business can be managed by
a. Combining capacities
b. Not giving service
c. Closing down the business
d. Not being able to serve the customer
Question 2. Channel Conflict between two distribution partners can arise from
a. Cost problem
b. Contradictory Objectives
c. Same Territory
d. Profit earning of both partners
Question 3. Demand and Capacity constraints in services mean
a. Price problem
b. Demand and Supply management
c. Employees issues
d. None of these
Question 4. Developing partnerships lead to
a. Dilution of core service
b. Collaboration to deliver better
c. Competitive problems
d. No problem at all
Question 5. How can MMT manage excess capacity of hotel rooms during off season
a. Selling at low price
b. Changing methods to sell
c. Yield Management
d. Competing fiercely
Question 6. MMT plays the most important role in distribution of airline and hotel services as their
a. Distribution Partner
b. Online Partner
c. Channel Partner
d. All of these
Question 7. Problems beigng faced by online delivery partners
a. Technical issues
b. Mismatch between promises and final delivery
c. Wrong service
d. None of these
Question 8. Service Delivery through distribution partner is difficult because of
a. Intangibility
b. Partners different from company
c. Company Brand image at stake
d. All of these
Question 9. What is the most important role of distribution partner in services
a. To sell
b. To maintain the service and promise
c. To provide customer service
d. None of these
Question 10. Which is not a pricing method for services
a. Penetration pricing
b. Skimming Pricing
c. Customer Pricing
d. Competitive pricing
Score: 10 on 10
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