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FYBCOM Sem 2 Commerce Chapter 1 Notes | FYBAF | FYBMS | Mumbai University

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FYBCOM Sem 2 Commerce Chapter 1 Notes
FYBCOM Sem 2 Commerce Chapter 1 Notes

FYBCOM Sem 2 Commerce Chapter 1 Notes
(Concept of Services – I)

Q.1) Select the most appropriate word from the options given and rewrite the statements:

a) Currently in India, the services sector contributes about ___________percent of the employment in India.
i) 30%
ii) 25%
iii) 15%

b) Services are generally ____________.
i) tangible
ii) intangible
iii) demonstrable

c) The production and consumption of services may take place at ___________.
i) different times
ii) at all times
iii) same time

d) Services can be viewed as a ___________.
i) spectrum
ii) picture
iii) link

e) Services may be classified on the ____________ basis.
i) weekly
ii) intangibility
iii) quality

f) Currently in India, services sector contributes about ____________ percent of GDP.
i) 30%
ii) 40%
iii) 60%

g) Services sector provides revenue to Govt. by way of _____________.
i) Custom Duty
ii) Excise Duty
iii) Services Tax

h) _____________ is the primary level of service product.
i) Core Benefit
ii) Basic Service
iii) Augmented Service

i) Pre-purchase evaluation of services is ______________.
i) possible
ii) simple
iii) not possible

j) Services are highly ____________ in nature.
i) durable
ii) perishable
iii) storeable

k) When service performance is within the zone of tolerance, customers are likely to be ____________.
i) satisfied
ii) dissatisfied
iii) delighted

l) The more important the service dimension, the _____________ is the zone of tolerance.
i) greater
ii) equivalent
iii) smaller

m) The highest level of service expectations is termed as _____________ service.
i) adequate
ii) desired
iii) maximum

n) _____________ service represents the minimum tolerable expectation of a service.
i) adequate
ii) desired
iii) minimum

o) Levels of adequate service are influenced by _____________ factors.
i) situational
ii) scientific
iii) natural

p) The service process relates to _____________ a service product is delivered to the customers.
i) why
ii) when
iii) how

Q.2) State whether the following statements are true or false:

  1. The potential service product is the lowest level of a service product.
  2. Customers do not consider the service of the employees in judging the quality of services.
  3. Place and time does not play any importance in the services-mix.
  4. Service providers always visit the customer’s site to provide services.
  5. The corporate image of service provider does not influence pricing.|
  6. Promotion element does not have any impact on customer loyalty.
  7. Services can be produced in anticipation of demand.
  8. Physical evidence of the service plays an important role only at the pre-order stage.
  9. Services are generally tangible in nature.
  10. When the service performance is above the zone of tolerance, customers are mostly likely to be dissatisfied.
  11. Personal needs of customers do not influence desired social expectations.
  12. Only the personal needs of customers influence desired social expectations.
  13. The desired service expectations cannot be influenced by other persons other than the customer.
  14. The factors that influence adequate service expectations are long term in nature.
  15. Productivity and quality of service plays a limited role in the success of a service firm.
  16. Improvement in quality should be defined from the marketer’s perspective.

Answer: All Statements are False.
Note: Reverse statements of the above will lead to true statements.

Q.3) Match the Columns:

Group AGroup B
a) Producti) Sequence of actions
b) Priceii) Ambience
c) Placeiii) Channels
d) Physical Evidenceiv) Exchange Value
e) Process of Deliveryv) Core Benefit

Ans: (a)-(v), (b) -(iv), (c)- (iii), (d) – (ii), (e)- (i)

Group AGroup B
a) Intangibilityi) Customization of Product
b) Inventory-lessii) Variability
c) Inseparabilityiii) Physical presence
d) Inconsistencyiv) Perishability
e) Interactionv) Lack of Physical Form

Ans: (a)-(v), (b) -(iv), (c)- (iii), (d) – (ii), (e)- (i)

Q.4) Express the following terms in one or two sentences:

1) Service (Product).
Ans : In discussing products and services there is often confusion over terminology, so it may be useful to repeat a point made earlier. A product is an overall concept of objects or processes which provide some value to the consumer; goods and services are subcategories which describe two types of products. Thus the term ‘product’ is frequently used in a broad sense to denote either a manufactured good or product, and a service.

2) Desired Service.
Ans : When a consumer engages with a service provider, “desired service” usually refers to the qualities or degree of service that the customer expects or desires. It includes all of the particular attributes, qualities, and results that clients look for in a service to satisfy their requirements or tastes. Service providers must fulfill or exceed expected service standards in order to increase customer satisfaction, promote customer loyalty, and set themselves apart from competitors.

3) Adequate Service
Ans :
“Adequate service” describes a degree of service that satisfies the fundamental needs or expectations that clients or accepted conventions have put forth. It suggests that although the service may not always surpass or completely satisfy the clients’ preferences or desires, it is sufficient in meeting their immediate needs or expectations.

4) Zone of Tolerance
Ans : The “Zone of Tolerance” is the range of service quality variations that consumers will tolerate without significantly lowering their degree of satisfaction. It stands for the gap between clients’ lowest and highest expectations for the quality of the services they receive. Customers view service changes within this range as acceptable and reasonable, whereas differences outside of it can either cause them to be delighted or dissatisfied.

5) Service Intensifiers
Ans : Service intensifiers are methods, plans, or initiatives that service providers use to improve the caliber, efficacy, or significance of the services they deliver. These intensifiers are made to go above and beyond what customers anticipate, raising satisfaction and promoting steadfast loyalty.

6) Service Process
Ans : The sequence of actions or phases involved in providing a service to clients from start to finish is referred to as the service process. Throughout the course of the service delivery journey, it includes all exchanges, transactions, and touchpoints between the customer and the service provider. Creating and delivering product elements to customers requires the design and implementation of effective processes that describe the methods and sequence of actions in which service operating systems work.

7) Core Benefit
Ans : The underlying value or utility that consumers obtain from a good or service is referred to as the core benefit, sometimes known as the core product or core offering. It stands for the main justification given by consumers for using or buying the good or service in the first place. The fundamental need, issue, or desire that the product or service fulfills for the client is addressed in the core benefit. Take a look at a smartphone, for instance. The main advantages of a smartphone are its on-the-go connectivity, information access, and communication capabilities.

8) Augmented Service Product
Ans : This is the area which enables one product to be differentiated from another. For example, IBM has a reputation for excellent customer service although they may not have the most technologically advanced core product. They differentiate by adding value to their core product in terms of reliability and responsiveness.

9) Potential Service Product
Ans : This consists of all potential added features and benefits that are or may be of utility to buyers. It includes the potential for redefinition of the product to take advantage of new users and the extension of existing applications. This could involve building in switching costs which can make it difficult or expensive for customers to switch from their existing service provider.

10) Intangibility
Ans : When we talk about intangibility in relation to services, we mean the quality that sets them apart from material goods. It refers to the experiential, abstract character of services that are not tangible and cannot be handled, observed, or stored in the same way as tangible things. Services are essentially dependent on perceptions, experiences, and relationships instead.

11) Inventory-less
Ans : “Inventory-less” describes a business model or approach wherein an organization functions without keeping tangible inventory of products. Inventory-less companies utilize several strategies to complete client orders and deliver services rather than keeping goods on shelves or in warehouses. This strategy is gaining traction, especially in industries like e-commerce, digital services, and on-demand platforms.

12) Inseparability
Ans :
Services cannot be easily separated from the service provider. This characteristic of services creates certain problems such as: i) Restricts geographical reach. ii)Physical presence of the customer and service provider is essential. The term “inseparability” describes a crucial aspect of services, namely their simultaneous creation and use. Put another way, services are usually developed and consumed in real-time and entail direct communication between the client and the service provider.

13) Inconsistency
Ans :
Service performance may vary from one person to another within the same organization. This Characteristic
of services creates certain problems such as lack of standardization and quality control. In the workplace, inconsistent practices may result in erratic results, muddled procedures, or evolving standards.

14) Place
Ans : The location and channels used to supply services to target customers are two key decision areas. Location and channels decisions involve considering how to deliver the service to the customer and where this should take place. This has particular relevance to services as very often they cannot be stored and will be produced and consumed at the same point.

15) Physical Evidence
Ans :
The appearance of buildings, landscaping, vehicles, interior furnishing, equipment, staff members, printed materials, and other visible clues all provide tangible evidence of a firm’s service quality. Service firms need to manage physical evidence carefully, because it can have a profound impact on customers’ impressions. In
services with few tangible elements, such as insurance, advertising is often employed to create meaningful symbols.

16) Productivity of Services
Ans :
The ratio of outputs to inputs is used to quantify productivity in the services industry, which is the efficacy and efficiency with which services are provided. Because services are intangible, their productivity is more complicated to assess than in manufacturing, where outputs like units generated per hour can be used as a gauge. Nonetheless, a number of techniques exist for assessing and raising service productivity:

1. Define services. Describe its characteristics.
Ans :
The term services is not limited to personal services like auto servicing, beauty parlors, Medical Services, legal service, Consultancy services etc. On the contrary, it has other connotations according to management gurus. Services have been defined in several ways but there does not exist any universal definition.

For services marketing, the distinguishing features or characteristics of services are important in the design of an appropriate marketing mix. The core characteristics are defined below:

1. Intangibility:
Even though many services include tangible aspects such as an airline seat, a classroom, a restaurant table and food, the service performance leading to a customer’s experience is intangible. The benefits of buying a service are from the nature of the performance. In comparison to physical goods, services cannot be stored or readily displayed.

2. Inseparability :
Because services are processes, deeds or acts, customers are involved in the production of a service. Also other consumers may be involved in the production environment and centralized mass production is difficult, particularly if the service is more complex or customized. For most services both the buyer and the seller need to be at the same place at the same time for the service to occur.

3. Perishability:
Given the intangible nature of services, they cannot be inventoried, stored warehoused or re – used. A lawyer cannot store parts of his or her knowledge for others to use while the lawyer is in court or on holiday. The hairdresser cannot store haircuts so that when a rush occurs on a Sunday morning all customers can have their hair cut at once.

4. Customer participation:
Service production is not a one – sided activity. Customers are co – producers of service. The production quality of the service greatly depends upon the ability, skill and performance of the employees as well as the ability and performance of the customer. In the service interaction, although the employees and the customers do not play an equal part in production, the role of the customer cannot be overemphasized.

5. No Ownership:
Service consumers will have experiences but not ownership. Since the services are intangible and perishable, the question of ownership doesn’t arise. But this characteristic will add to the problems of the service marketer. Convincing the customer with tangible goods on which he will have ownership through transfer of title is much easier than selling an experience where nothing remains after consumption, except the memory of it.

6. Variability or Non – Standardization or Heterogeneity.
The service industry suffers from a curious characteristic – Variability – that greatly affects its offer. The service offer is never consistent in its quality and delivery. The same service product is never delivered in the same way to the same customer across two different time periods; a customer perceives the service transaction as having a different quality when delivered from two different places – or even on two different occasions at the same service outlet.

2. Explain the scope and classification of services.
Ans :
SCOPE OF SERVICES – When discussing strategies to market manufactured goods, marketers usually address four basic strategic elements; product, price, place (or distribution), and promotion (or communication). Collectively, these categories are often referred to as the 4 Ps of the marketing mix.

1. Product Elements:
Managers must select the features of both the core product (either a good or service) and the bundle of supplementary service elements surrounding it, with reference to the benefits desired by customers and how well competing products perform.

2. Price
This component addresses management of the expenditures and other outlays incurred by customers in obtaining benefits from the service product. Responsibilities are not limited to the traditional pricing tasks of establishing the selling price to customers, they also include seeking to minimize other burdens that customers may bear in purchasing and using a service, including time, mental and physical effort.

3. Place
Delivering product elements to customers involves decisions on the place and time of delivery as well as on the methods and channels employed. Delivery may involve physical or electronic distribution channels (or both), depending on the nature of the service being provided.

4. Promotion
No marketing programme can succeed without effective communications; this component plays three vital roles: providing needed information and advice, persuading target customers of the merits of a specific product, and encouraging them to take action at specific times. In services marketing, much communication is educational in nature, especially for new customers.

Classification of Services :
Classification of services helps service managers to cross their industry boundaries and gain experience from other service industries which share common problems and have similar characteristics. Solutions to problems and breakthroughs in similar service industries can then be applied by managers to their own service businesses.

A description of services typically includes the following industry sectors:
a) Retailing and wholesaling.
b) Transportation, distribution and storage.
c) Banking and insurance
d) Real Estate
e) Communications and information services.
f) Health Care.
g) Education.
h) Other non – profit organizations.

Many other approaches have been used to classify services. Classification schemes use a wide range of factors such as:
a) Type of service.
b) Type of seller.
c) Type of purchaser
d) Demand characteristics.
e) Buying motives.

3. Bring out the importance of services sector in the Indian context.
Ans : The Services Sector contributes the most to the Indian GDP. The Sector of Services in India has the biggest share in the country’s GDP for it accounted for around 53.8% in 2005. The contribution of the Services Sector in Indian GDP has increased a lot in the last few years.

India’s share in worldwide service exports is expected to almost triple itself from current the 2.3 % to 6 % by 2012. India ranks fifteenth in the services output and it provides employment to around 23% of the total workforce in the country. The Services Sector in India are construction, trade, hotels, transport, restaurant, communication and storage etc.

A major contributor to the GDP, creation of jobs, and general expansion of the Indian economy is the services sector. Here are some key points highlighting its importance:

1. Contribution to GDP :
At about 50% of the GDP, the services sector is the biggest contributor to India’s economy. This covers a wide range of sectors, including banking, tourism, hospitality, healthcare, IT, and education.

2. Employment Generation :
In India, the services sector employs millions of people in both urban and rural areas. It is one of the country’s largest employers. It provides a wide range of job opportunities, from unskilled laborers in retail and hospitality to highly qualified IT specialists.

3. Foreign Exchange Earning :
India offers a wide range of export-oriented services, including software development, business process outsourcing (BPO), IT services, and travel. These have a major impact on foreign exchange revenues and support the stabilization of the nation’s balance of payments.

4. Technology and Innovation :
In India, the services sector—especially IT and associated services—has led the way in technological innovation. It has stimulated the rise of new businesses and entrepreneurs, resulting in the development of innovative technology and business models.

5. Government Revenue :
Through a variety of taxes and levies, the services sector also makes a sizable contribution to government revenue. Public welfare programs, infrastructure development, and other social initiatives can be funded using the proceeds from this revenue.

6. Contribution to Urbanization :
Services like banking, healthcare, and education help to raise people’s standard of living in India as a whole. The population’s well-being is positively impacted by having access to improved financial services, healthcare, and educational opportunities.

4. Write a note on customer expectations of services.
Ans :
Customer expectations are beliefs about service delivery that function as standards or reference points against which performance is judged. Because customers compare their perceptions of performance with these reference points when evaluating service quality, thorough knowledge about customer expectations is critical to services marketers.

Among the aspects of expectations that need to be explored and understood for successful services marketing are the following:


As such, it is imperative that service providers understand and successfully meet the expectations of their clients. Here are some essential ideas to think about:

1. Personalization and Customization :
Clients anticipate services catered to their own requirements and tastes. Personalized service delivery entails being aware of each unique customer’s needs and meeting them. Customers like experiences that are in line with their individual preferences, whether that be through product modification options, personalized recommendations, or customized solutions.

2. Reliability and Consistency :
When providing services, consistency is essential. Clients anticipate dependable and constant performance from suppliers. This entails providing services on time, keeping to schedule, and continuously delivering work of a high caliber. Dependability in service cultivates enduring relationships with clients and increases trust.

3. Quality and Value :
Consumers expect to get value for their money from high-quality services. A number of factors are included in the definition of quality, such as the proficiency of service providers, the effectiveness of offered solutions, and the efficiency of service delivery. Service providers need to always work to raise the bar for quality and give clients outstanding value.

4. Feedback and Continuous Improvement :
For service providers, client feedback is priceless. Consumers value being listened to and having their opinions taken into consideration. Providers of services need to proactively solicit input from clients, via questionnaires, evaluations, or face-to-face interactions, and utilize this input to pinpoint opportunities for development and elevate the entire client experience.

5. What are the factors influencing customer expectations of service.
Ans :
Numerous factors affect the service expectations of customers. Positive interactions tend to raise expectations, while bad interactions tend to lower them, therefore prior experiences with the provider or similar offerings are important. Expectations are also influenced by the service provider’s reputation and image, as well as referrals from friends, family, and internet reviews. Customer expectations of services ae influenced by various factors including :

1. Previous Experiences :
Customers’ expectations are shaped by their prior experiences with the same service provider or similar providers. Expectations for future interactions can be raised by positive experiences while they can be lowered by unfavorable ones.

2. Brand Image and Reputation:
The reputation and image of a service provider have a considerable impact on consumer expectations. Strong brands associated with quality and dependability tend to raise expectations, whilst lesser-known firms may have fewer initial expectations to meet.

3. Economic conditions:
Economic considerations, such as disposable income and overall economic stability, can have an impact on customer expectations. During economic downturns, clients may have reduced expectations for luxury services, but increased expectations for value and dependability.

4. Technological Advancements :
Advances in technology can raise service expectations. Customers may anticipate flawless digital experiences, faster reaction times, and better convenience as technology becomes more prevalent in everyday life.

5. Personal Preferences and Needs :
Individual interests, requirements, and priorities all influence client expectations. What one client values in a service transaction may differ from what another customer expects according to their individual circumstances and preferences.

6. Explain in brief the elements of services mix.
Ans :
The parts of the services mix, often known as the 7Ps of service marketing, are critical components used by service organizations to effectively create and deliver their offers. These elements include:

1. Product :
In services, the “product” refers to the main offering or service, including its features, benefits, and performance. This could range from a haircut to financial consultation services. A product is an overall concept of objects or processes which provide some value to the consumer; goods and services are subcategories which describe two types of products.

2. Price :
Price plays a pivotal part in the marketing mix of a service because pricing attracts revenues to the business. Pricing decisions are significant in determining the value for the customer and play a role in the building of an image for the service. Price also gives a perception of quality. Pricing decisions are often made by adding a percentage mark up on cost.

3. Place :
The location and channels used to supply services to target customers are two key decision areas. Location and channels decisions involve considering how to deliver the service to the customer and where this should take place. This has particular relevance to services as very often they cannot be stored and will be produced and consumed at the same point.

4. Promotion :
The promotion element of the services marketing mix forms a vital role in helping to communicate the positioning of the service to customers and other key relationship markets. Promotion adds significance to services; it can also add tangibility and help the customer make a better evaluation of the service offer. The promotion of services encompasses a number of major areas.

5. People :
Many services depend on direct, personal interaction between customers and a firm’s employees (such as getting a haircut or eating at a restaurant). The nature of these interactions strongly influences the customer’s perceptions of service quality. Customers will often judge the quality of the service they receive based on their assessment of the people providing that service.

6. Process :
Creating and delivering product elements to customers requires the design and implementation of effective processes that describe the methods and sequence of actions in which service operating systems work. Badly designed processes are likely to annoy customers when the latter experience slow, bureaucratic, and ineffective service delivery.

7. Physical Evidence :
The appearance of buildings, landscaping, vehicles, interior furnishing, equipment, staff members, printed materials, and other visible clues all provide tangible evidence of a firm’s service quality. Service firms need to manage physical evidence carefully, because it can have a profound impact on customers’ impressions. In services with few tangible elements, such as insurance, advertising is often employed to create meaningful symbols.

7. Write short notes on:

a) Services Product
Ans : The term “service product” refers to the intangible offering that service organizations deliver to suit the demands and desires of their customers. Services, unlike real things, cannot be seen, handled, or kept, making them uniquely challenging to promote and administer. Key characteristics of services products include – Variability , Intangibility, Inseparability, Perishability.

Intangibility: Services lack a physical shape, rendering them intangible. Customers buy and use services based on promises, descriptions, and interactions rather than physical features.

Inseparability: Services are frequently created and consumed together. This means that services are often created and consumed in real time, with direct interaction between service providers and customers.

Variability: Human engagement, client preferences, and environmental factors all contribute to the great variability of services. This inconsistency might make it difficult to provide consistent service quality and consumer experiences.

Perishability: Services are perishable and cannot be kept for later use. This means that unused service capacity cannot be preserved or inventoried, posing issues for demand management and capacity utilization.

b) Place Element in Services
Ans :
In services marketing, the “Place” factor refers to the distribution channels and venues where clients can access or receive the services. It includes the many touchpoints at which customers interact with the service provider and engage with the service offering.

Key characteristics of the “Place” element in services are:

Physical locations : Include brick-and-mortar establishments that provide services, such as retail stores, offices, clinics, or service centers. The physical environment significantly influences the client experience and perception of the service.

Online Platforms : As the world has gotten more digital, online platforms have grown in importance in service distribution. These platforms include websites, smartphone apps, and social media channels that allow clients to access services, schedule appointments, and make purchases remotely.

Accessibility: Place evaluates how easily clients can reach service places or internet platforms. Accessibility considerations include proximity to customers, transportation alternatives, parking facilities, and the availability of online access.

c) Pricing of Services
Ans :
Pricing services is an important component of services marketing strategy, influencing consumer perceptions, profitability, and competitiveness. Unlike tangible objects, which have physical characteristics that contribute to their perceived value, pricing services can be more difficult due to their intangible nature.

Here are crucial factors when pricing services :

1. Value-Based Pricing: Because services are intangible, their value is frequently subjective and determined by perceived advantages rather than tangible attributes. worth-based pricing entails determining prices based on the perceived worth of the service to the client. To decide the best price, service providers must first understand their customers’ needs, preferences, and willingness to pay.

2. Competitive Pricing: When determining rates, service providers may take into account their competitors’ pricing methods. Competitive pricing entails pricing services at similar levels as competitors in order to avoid price wars and maintain market share. However, focusing entirely on competitive pricing may lower the perceived value of the service.

3. Dynamic pricing : is the process of modifying prices in real time in response to changes in demand, supply, or other market conditions. This method is widespread in industries with fluctuating demand, such as airlines, hotels, and ride-sharing services. Dynamic pricing techniques seek to maximize revenue and usage rates by modifying prices to reflect changing market conditions.

d) Promotion of Services
Ans :
Promotion of services is an important component of a services marketing strategy since it raises awareness, generates interest, and persuades target customers to engage with the service offering. Unlike tangible things, services are intangible and frequently necessitate various promotional strategies to successfully explain their value proposition.

Here are important factors while promoting services:

1. Identify the Target Audience: Understanding the qualities, needs, and preferences of the target audience is critical for creating effective promotional campaigns. Service providers should segment their target market based on demographics, psychographics, and behavioral characteristics in order to adapt their messages and channels.

2. Highlight Benefits and Solutions: Because services are frequently intangible, promotional efforts should center on articulating the benefits and solutions that the service provides to clients’ requirements or issues. In promotional communications, it can be effective to emphasize how the service can improve customers’ lives, alleviate their issues, or satisfy their wishes.

3. Monitor and Measure Results: To determine the return on investment (ROI), key performance indicators (KPIs) must be measured and the effectiveness of promotional efforts monitored. Service providers should monitor indicators such as website traffic, social media engagement, leads produced, conversion rates, and customer feedback to evaluate the effectiveness of promotional efforts and make data-driven optimization decisions.

e) Process of Services Delivery
Ans :
The service delivery process refers to the actions and activities involved in providing a service to customers, beginning with initial contact and ending with fulfillment. Effective management of the service delivery process is critical for providing high-quality service experiences and customer satisfaction.

The following are the essential components of the service delivery process:

1. Service Delivery: The core step of the process entails providing the service to the customer in accordance with their requirements and expectations. This could involve providing a service (e.g., haircut, consultancy), delivering a product (e.g., meal, package), or facilitating an experience (e.g., organizing an event, directing a trip).

2. Feedback and Follow-Up: After the service is completed, it is critical to solicit feedback from the consumer in order to assess their satisfaction and find areas for improvement. This feedback can be gathered through surveys, reviews, or direct engagement with the customer. Furthermore, follow-up communication may be used to show gratitude, resolve any outstanding concerns, or provide additional assistance.

3. Continuous Improvement: Finally, the service delivery process should be monitored, assessed, and improved over time. Analyzing performance measurements, detecting bottlenecks or inefficiencies, and adopting adjustments based on customer input and industry best practices can help service providers improve the quality and efficiency of their service delivery process.

f) Physical Evidence
Ans :
The appearance of buildings, landscaping, vehicles, interior furnishing, equipment, staff members, printed materials, and other visible clues all provide tangible evidence of a firm’s service quality. Service firms need to manage physical evidence carefully, because it can have a profound impact on customers’ impressions.

1. Physical evidence: Contributes to clients’ perceptions of credibility and assurance. Tangible features such as well-maintained premises, contemporary equipment, professional attire, and branded materials communicate professionalism and competence, ensuring customers about the level of service they will receive.

2. Visual depiction of the Service: Physical evidence offers clients a visual depiction of the service offering. For example, in a restaurant, the ambiance, decor, table arrangements, and food and beverage presentation all add to the entire dining experience.

3. Differentiation and Branding: Physical evidence can be utilized to distinguish a service offering from competitors and strengthen brand identity. Unique design features, distinctive logos, colors, and signs all contribute to creating a memorable and identifiable brand image that distinguishes the service in the minds of clients.

g) People Element in Services
Ans :
In services marketing, the “People” factor refers to the employees who are actively involved in providing the service and interacting with clients. Unlike physical objects, which only require transactions, services frequently involve personal relationships between service providers and customers.

Here are important features of the People component in services:

1. Frontline staff: are the face of the service provider, and they play an important role in delivering the service and influencing the customer experience. They work directly with consumers, offering support, answering inquiries, and resolving problems. Frontline personnel’ demeanor, attitude, and communication skills have a substantial impact on customer satisfaction and loyalty.

2. Training and Development: Effective training and development programs are critical for providing frontline personnel with the skills, information, and resources they need to provide excellent service experiences. Topics covered in training may include product knowledge, customer service abilities, communication approaches, and problem-solving methodologies.

3. Teamwork and Collaboration: Collaboration among staff from several departments or functional areas is critical for providing consistent service experiences. Service providers should develop a culture of collaboration and teamwork, encouraging staff to work together to solve problems, exchange knowledge, and coordinate efforts to meet client needs.

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