M.B.A. DEGREE EXAMINATION, APRIL 2016
Fourth Semester
MARKETING OF SERVICES
(CBCS 2012 onwards)
Time 3 Hours Maximum 75 Marks
Section A 3 15)
Answer all questions.
All questions carry equal marks.
1. Define Services.
2. Define service blueprinting.
3. Define Service encounter.
4. What are perceived outlays?
5. Give any two current examples for service guarantee?
Section B 10 50)
Answer all questions, choosing either or
6. Discuss in detail the evolution and growth of service
sector in Indian context.
Or
Explain the challenges and issues in service
marketing with Indian service firm.
7. Describe the various classifications of services
according to Lovelock.
Or
Explain in detail importance of segmentation and
targeting in Services Marketing.
Sub. Code
641424
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8. Explain the Service quality gap analysis with
Flowchart.
Or
Explain the Parasuraman SERVQUAL dimensions
with examples.
9. Discuss in detail the importance of pricing of
services.
Or
Draw flowchart for integrated service marketing
communication and explain in detail.
10. Discuss the service marketing strategies for
healthcare sector.
Or
Take an example of highly successful service firm in
India and evaluate various dimensions of service
quality and give your impressions of the service
firm.
Section C 5 10)
Case study Compulsory
11. Full Planes Don't Always Mean Profits
A unique characteristic of services is Perishability. If
sercices are not consumed as they are produced, one
cannot inventory them for later consumption. This is one
reason why airlines want to pack their planes with as
many passengers as possible. Any seat left vacant is lost
forever once the plane takes off. But do full planes always
translate to profits? Not necessarily An important factor
that has a major impact on airline's bottom line is yield.
Yield is how much passengers pay to fly per mile. This
year, all six major airlines are likely to report huge
losses, in part because of weak yields.
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Airlines typically attract two types of customers: leisure
travelers and business travelers. Leisure travelers plan
far in advance and typically buy inexpensive tickets.
Business travelers buy tickets on short notice and may
pay up to four or five times the fare paid by leisure
travelers. Airlines need a significant percentage of
business travelers to make profits. By one estimate, up to
40 percent of airline revenues come from 15 percent of
such business travelers. Therefore, any decline in
business travelers market can hurt the airlines seriously.
Of late, corporate travelers have become more conscious
of their travel costs. In order to cut back on these costs,
corporations are negotiating harder for deeper discounts,
planning ahead to obtain lower fares, and using
alternatives to travel such as video conferencing.
If the load factor (how full the planes are) and yield factor
(how much an average passenger pays) do not improve
soon, airlines may have to look at cutting costs in order to
break even or make profits. Since September 11 attacks,
many airlines have seen revenue shortfalls of 35 percent
to 40 percent. Several airlines have also announcd job
cuts to reduce fixed costs. However, if these cost cuts are
not commensurate with revenue losses, airlines may have
a tough time financially. For example, Sahara airlines,
has cut back 20 percent of its flights; however, its layoffs
and other restucturing hasn't netted a 20 percent cost
reduction. This implies that Sahara would need near
capacity passenger loads just to break even on its fixed
costs.
What are the factors that determine an airline's
profitability?
Why has the yield factor been going down for major
airlines?