Mktg 470 Exam 2 Study Guide

Mktg 470 Exam 2 Study Guide - Marketing 470 Exam 2 Study...

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Unformatted text preview: Marketing 470 - Exam 2 Study Guide Chapters 5, 6, 7, & 8 Chapter 5: T/F – Core products are always surrounded by supplementary services.- False (?) Self-Service Channels versus Personal Channels (Pg. 116)- Personal channels – are for complex and high perceived risk services- Example: customers are happy to apply for credit cards using remote channels, but prefer to talk to the service provider face-to-face when obtaining a mortgage.- Self-service channels – for customers who are more technology savvy (have a greater likelihood to accept and use new technology) will view service quality more positively when using self-service technologies.- Customers who look for the functional aspects of a transaction often use impersonal and self-service channels; customers with social motives tend to use personal channels. Franchising (slide 9, Pg. 130)- Franchising is frequently used to distribute the core service. - Expand an effective service concept- Franchising can be a fast growth strategy: resources, commitment, local knowledge, fast growth- Significant attrition rate Cyber Space (slide 5)- Customers and suppliers do business electronically in virtual environment created by phone/internet linkages.- Ideal for info-based services- Saves time- Facilitates information gathering- May use express logistics service to deliver physical core products- Can be used for five supplementary services High and Low Perceived Risks (Pg. 116 or 130)- Customer preferences drive channel choice. Customers often prefer remote channels because of their convenience, and when they have high confidence and knowledge about the product (low perceived risk), and are technology savvy.- However, consumers rely more on personnel channels when the perceived risk is high and when there are social motives behind the transaction. Mini Store (Pg. 118)- Small service factories to maximize geographic coverage. - Automated kiosks (ATMs), separation of the front and back stages of the operation. Problems with Franchising (Pg. 126)- Loss of control over the customer’s service experience when losing control over the delivery system by letting franchisees take over delivery service- Making sure an intermediary adopts exactly the same priorities and procedures as laid down by franchisor can be difficult. - As they gain experience, franchisees might start to think they shouldn’t have to pay franchisor the various fees Chapter 6: Different Objectives for Service Pricing (slide 1, Pg. 136)- Revenue and Profit objectives 1. Seek profit 2. Cover Costs- Patronage and user base-related objectives 1. Build demand: demand maximization, full capacity utilization 2. Build a user base: stimulate trial and adoption of new service, build market share/large user base Is it more difficult or easy for setting price on a service versus a good (Pg. 137)- It is usually harder to find out the costs involved in producing an intangible performance, than it is to trace the costs of producing a physical good....
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This note was uploaded on 10/17/2011 for the course MKTG 470 taught by Professor Dr.valenti during the Spring '11 term at Nicholls State.

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Mktg 470 Exam 2 Study Guide - Marketing 470 Exam 2 Study...

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