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UNIT IV---Marketing Research

                                   UNIT - 4
Q.1- Discuss the SERVQUAL Model of service quality?
Ans. “SERVQUAL is an empirically derived method that may be used by a services organization to improve service quality. The method involves the development of an understanding of the perceived service needs of target customers. These measured perceptions of service quality for the organization in question, are then compared against an organization that is "excellent". The resulting gap analysis may then be used as a driver for service quality improvement”
SERVQUAL takes into account the perceptions of customers of the relative importance of service attributes. This allows an organization to prioritize. And to use its resources to improve the most critical service attributes.
The data are collected via surveys of a sample of customers. In these surveys, these customers respond to a series of questions based around a number of key service dimensions.
The methodology was originally based around 5 key dimensions:-
1.Tangibles. Appearance of physical facilities, equipment, personnel, and communication materials.
2.Reliability. Ability to perform the promised service dependably and accurately.
3.Responsiveness. Willingness to help customers and provide prompt service.
4.Assurance. Knowledge and courtesy of employees and their ability to convey trust and confidence.
5.Empathy. The firm provides care and individualized attention to its customers.

This has been adapted later by some to cover:
1.Tangibles. Appearance of physical facilities, equipment, personnel, and communication materials.
2.Reliability. Ability to perform the promised service dependably and accurately.
3.Responsiveness. Willingness to help customers and provide prompt service.
4.Competence. Possession of required skill and knowledge to perform service.
5.Courtesy. Politeness, respect, consideration and friendliness of contact personnel.
6.Credibility. Trustworthiness, believability, honesty of the service provider.
7.Feel secure. Freedom from danger, risk, or doubt.
8.Access. Approachable and easy of contact.
9.Communication. Listens to its customers and acknowledges their comments. Keeps customers informed. In a language which they can understand.
10.Understanding the customer. Making the effort to know customers and their needs.

ORIGIN OF SERVQUAL. HISTORY
The authors conducted a qualitative study, from which they concluded that customers ranked the importance of two SERVQUAL dimensions consistently. Regardless of service industry. Reliability is the most important contributing factor to service quality and tangibles is the least important.

USAGE OF SERVQUAL. APPLICATIONS
SERVQUAL is widely used within service industries to understand the perceptions of target customers regarding their service needs. And to provide a measurement of the service quality of the organization.
SERVQUAL may also be applied internally to understand employees' perceptions of service quality. With the objective of achieving service improvement.
STEPS IN SERVQUAL. PROCESS
The method essentially involves conducting a sample survey of customers so that their perceived service needs are understood. And for measuring their perceptions of service quality for the organization in question.
Customers are asked to answer numerous questions within each dimension that determines:
The relative importance of each attribute.
A measurement of performance expectations that would relate to an "excellent" company.
A measurement of performance for the company in question.
This provides an assessment of the gap between desired and actual performance, together with a ranking of the importance of service criteria. This allows an organization to focus its resources. To maximize service quality whilst costs are controlled.

STRENGTHS OF SERVQUALBENEFITS
Most users would agree that a comprehensive and thorough examination of service needs and service quality provides an invaluable approach to improving service quality. SERVQUAL provides detailed information about:
Customer perceptions of service (a benchmark established by your own customers)
Performance levels as perceived by customers
Customer comments and suggestions
Impressions from employees with respect to customers expectations and satisfaction
LIMITATIONS OF SERVQUAL. DISADVANTAGES
There have been a number of studies that doubt the validity of the 5 dimensions. And of the uniform applicability of the method for all service sectors. According to an analysis by Thomas P. Van Dyke, Victor R. Prybutok, and Leon A. Kappelman, it appears that the use of difference scores in calculating SERVQUAL contributes to problems with the reliability, discriminant validity, convergent validity, and predictive validity of the measurement. These findings suggest that caution should be exercised in the use of SERVQUAL scores and that further work is needed in the development of measures for assessing the quality of information services.





Q.2- What are the different types of cabs found in providing better service to the customer? Discuss with the help of GAP Model.
Ans.A national household survey was carried out to establish cab usage levels by private individuals and to assess consumer satisfaction with the levels of service provided. Conducted during September 2008, the survey took the form of a personal interview with a target representative sample of 1,022 adults across all four provinces.
• A telephone survey was carried out in September 2008 across a random sample of 250 Irish businesses within Ireland. Issues discussed included usage levels of cab companies, the type of company used, the type and level of service demanded, as well as the level of service delivered.
Types of Cabs
1.TOYOTA PRIUS (PETROL / HYBRID)
2.HYUNDAI AZERA (PETROL / CNG)
3.CHEVROLET EPICA
4.SSANGYONG Radius
5.LONDON CAB
6.STAREX
7.CHRYSLER
8.Ola cab
9.Meru cab
10.Radio taxi
Reform of the Cab Market
During 2005, the Commission engaged in extensive consultations with stakeholders and undertook a comprehensive review of taxi, hackney and limousines services in Ireland. This resulted in the publication of National Review of Taxis, Hackneys and Limousine Services9. The Review identified a number of regulatory changes, which were encompassed in a Roadmap Towards a New National Code of Regulation for Taxis, Hackneys and Limousines. This set out the changes which the Commission proposed to make in response to the findings of the National Review and sought feedback on these changes. Following this, in Autumn 2005, the Commission published a strategy statement setting out its proposed actions during the period 2005–2009. This statement of strategy identified seven goals for the Commission for the period 2005–2009. These were:
Quality of Service
The delivery of quality services by all SPSVs to the highest standard of comfort and safety for passengers and drivers.
Accessibility
A first class taxi, hackney and limousine service which provides accessibility for all, including passengers with disabilities and others with particular accessibility requirements.
Fares
A new, simplified and unified fare structure with all taxi fares subject to maximum fares and charged on the meter.
Licensing and Administrative Procedures
A more streamlined licensing process with enhanced security features.
Vehicle Standards
Enhanced vehicle standards and improved accessibility that balance overall quality and safety improvements with cost and other practical implications for drivers and operators.
The Service Quality Model, also known as the GAP Model, was developed in 1985. It highlights the main requirements for delivering a high level of service quality by identifying five ‘gaps' that can lead to unsuccessful delivery of service.
Customers generally have a tendency to compare the service they 'experience' with the service they 'expect' to receive; thus, when the experience does not match the expectation, a gap arises.

GAP 1:
Gap between consumer expectation and management perception: This gap arises when the management or service provider does not correctly perceive what the customer wants or needs. For instance – hotel administrators may think guests want better food or in-house restaurant facilities, but guests may be more concerned with the responsiveness of the staff or the cleanliness of their rooms.

Consumer Expectations
Hotel administrators may think guests want better food or in-house restaurant facilities, but guests may be more concerned with the responsiveness of the staff.
Factors that affect the size of the knowledge gap include:

Market research
Before introducing a new product or service into the market, a company must conduct market research to understand whether there would be any demand for the product, and what features should be incorporated. The better this process is conducted, the smaller the knowledge gap will be.
There are methods of ensuring that customer desires are taken on board. These include: comprehensive studies, gauging satisfaction after individual transactions (surveys immediately after a purchase is made), customer panels and interviews, and through customer complaints.

Communication channels
The fewer the layers between management and customer contact personnel, the more likely that customer preferences will be incorporated into higher-level decision making on the product.

GAP 2 :
Gap between management perception and service quality specification: This is when the management or service provider might correctly perceive what the customer wants, but may not set a performance standard. An example here would be that hospital administrators may tell the nurse to respond to a request ‘fast', but may not specify ‘how fast'.

GAP 3:
Gap between service quality specification and service delivery: This gap may arise in situations pertaining to the service personnel. It could happen due to poor training, incapability or unwillingness to meet the set service standard. An example would be when a doctor's office has very specific standards of hygiene communicated but the hired staff may have been poorly trained on the need to follow these strict protocols.

GAP 4 :
Gap between service delivery and external communication: Consumer expectations are highly influenced by statements made by company representatives and advertisements. The gap arises when these assumed expectations are not fulfilled at the time of delivery of the service. For example – a hospital printed on its brochure may have clean and furnished rooms but in reality, it may be poorly maintained – in this case the patient's expectations are not met.
GAP 5:
Gap between expected service and experienced service: This gap arises when the consumer misinterprets the service quality. The physician may keep visiting the patient to show and ensure care, but the patient may interpret this as an indication that something is really wrong.




Q.3- Explain the application of GRONROSS Model enhancing a quality of service offered by an organization?
Ans. GRONROSS PERCEIVED SERVICE QUALITY MODEL
In Gronross Perceived Service Quality model, expectations are a function of market communications, image, word of mouth, and consumer needs and learning, whereas experience is a product of a technical and functional quality, which is filtered through the image.
GronrossPerceived Service Quality model
Gronross more clearly shows the existence of a perception gap, although there is no suggestion of "delighting" only of narrowing the gap. However the model has more practical application as it shows factors that contribute to each side of the gap. It demonstrates that the supplier can affect both sides of the gap – most notably by managing customer expectations. In addition it illustrates that the customer experience is a product of the image of supplier quality, not just the actuality. Clearly marketing as well as process and technical quality has an effect on the perception gap.

What is Quality?
 There are two perspectives and lenses through which to view quality:  Tangible Product Orientation and Intangible Service Delivery Orientation.  Both are necessary, however, the latter is the most important since most tangible hospitality products are becoming Tangible Product Orientation. Here focus is on the product itself but from another two perspectives (Kotler, Bowen, and Makes, 1996):
Product/Service Features. The product/service is seen as a set of features that enhance customer satisfaction. While this may or may not be a customer focus (depending if the customer truly asked what product enhancements they wanted), in reality adding additional features in a hope that they will create customer satisfaction is the approach. This approach adds to the cost of the product.  Justification for these added features must be paid for by additional customer expenditure or the organization gaining a pay-off due to increased customer loyalty.
Freedom from Deficiencies. In the example above, the rooms at both the Ritz and Motel 6 must be clean and the beds made-up daily. NOTE: Is there a price level below which even these deficiencies ARE acceptable, for example, a low-end and run-down motel?
Seriously, products must work.  At a basic level, they must operate as they are supposed to or the customer will determine that the quality is inadequate.
Intangible Service Delivery Orientation. Here the focus is on the process of delivering the service. This involves two basic components: (a) Technical quality – the means of service delivery and (b) Functional quality – the how of service delivery.
Technical Quality. This includes the systems and infrastructure designed and created to organize delivery of the service.  For example: computerized systems, machines technical solutions, and know-how.
Functional Quality.  The hospitality customer goes through many interactions with employees in the creation and delivery of a hospitality experience.  A successful meeting is the result of all functional areas of a hotel being synchronized and focused on creating a beautiful symphony. Technical quality must be in place to facilitate such coordination and allow the employees to work together.  Functional quality includes employee: attitudes, behaviour, service mindedness, appearance, accessibility internal relations and customer contacts.
Quality Models
Models help us understand the complexity of service quality. First, we will discuss an early foundational model:  The Perceived Service Quality Model developed by Christian Gronross in 1982.  Second, we will discuss an evolutionary form of the Gronross model, the Gap Analysis Model developed by V. A. Zeithaml, A. Parasuraman, and L. L. Berry in 1988.  This last model, currently packaged as the SERVQUAL Model, is widely used in the hospitality industry to understand and improve the quality of hospitality service.
Q.4- what are the factor responsible for Global Marketing of service?
Ans. Global Marketing
For many years, marketing managers just had to be concerned with learning the intricacies of marketing in a domestic environment. They had to determine if a customer in Texas bought and consumed products differently than a consumer in Maine. Today, the marketplace has expanded in a global nature. For companies to continue to grow successfully, marketing teams must eventually learn to tackle the global marketplace.
Global marketing occurs when marketing managers use a global plan to effectively market their goods and services on an international basis.
There are many reasons why global marketing is very important to U.S. companies. Most companies realize that their target market is limited if they just concentrate on a U.S. market. When a company thinks globally, it looks for overseas opportunities to increase its market share and customer base. Lots of companies have caught on to this; in the past 20 years, global trade has gone from a few hundred billion dollars a year to 18 trillion dollars.
But the global marketplace is very competitive, and the shrinking of the world through technology has made it easier for companies to reach global markets. U.S. companies now have to deal with not just domestic, but also international, firms for control of a global market share. In this lesson, we will examine how a diaper company called Diaper Sponge Pants has learned how to identify international opportunity via the global marketing world.

1 External Factors:

i) Market Size:- Market size of the market is one of the key factors an international marketer has to keep in mind when selecting an entry mode. Countries with a large market size justify the modes of entry with long-term commitment requiring higher level of investment, such as wholly owned subsidiaries or equity participation.
ii) Market Growth:- Most of the large, established markets, such as the US, Europe, and Japan, has more or less reached a point of saturation for consumer goods such as automobiles, consumer electronics. Therefore, the growth of markets in these countries is showing a declining trend. Therefore, from the perspective of long-term growth, firms invest more resources in markets with high growth potential.

iii) Government Regulations:- The selection of a market entry mode is to a great extent affected by the legislative framework of the overseas market. The governments of most of the Gulf countries have made it mandatory for foreign firms to have a local partner. For example, the UAE is a lucrative market for Indian firms but most firms operate there with a local partner.

iv) Level of Competition:- Presence of competitors and their level of involvement in an overseas market is another crucial factor in deciding on an entry mode so as to effectively respond to competitive market forces. This is one of the major reasons behind auto companies setting up their operations in India and other emerging markets so as to effectively respond to global competition.

v) Physical Infrastructure:- The level of development of physical infrastructure such as roads, railways, telecommunications, financial institutions, and marketing channels is a pre-condition for a company to commit more resources to an overseas market. The level of infrastructure development (both physical and institutional) has been responsible for major investments in Singapore, Dubai, and Hong Kong. As a result, these places have developed as international marketing hubs in the Asian region.

vi) Level of Risk:- From the point of view of entry mode selection, a firm should evaluate the following risks:
a) Political Risk:- Political instability and turmoil dissuades firms from committing more resources to a market.
b) Economic Risk:- Economic risk may arise due to volatility of exchange rates of the target market’s currency, upheavals in balance of payments situations that may affect the cost of other inputs for production, and marketing activities in foreign markets. International companies find it difficult to manage their operations in markets wherein the inflation rate is extremely high.

c) Operational Risk:- In case the marketing system in an overseas country is similar to that of the firm’s home country, the firm has a better understanding of operational problems in the foreign market in question.

vii) Production and Shipping Costs:- Markets with substantial cost of shipping as in the case of low-value high-volume goods may increase the logistics cost.

viii) Lower Cost of Production:- It may also be one of the key factors in firms deciding to establish manufacturing operations in foreign countries.

2) Internal Factors:

i) Company Objectives:- Companies operating in domestic markets with limited aspirations generally enter foreign markets as a result of a reactive approach to international marketing opportunities. In such cases, companies receive unsolicited orders from acquaintances, firms, and relatives based abroad, and they attempt to fulfill these export orders.

ii) Availability of Company Resources:- Venturing into international markets needs substantial commitment of financial and human resources and therefore choice of an entry mode depends upon the financial strength of a firm. It may be observed that Indian firms with good financial strength have entered international markets by way of wholly owned subsidiaries or equity participation.

iii) Level of Commitment:- In view of the market potential, the willingness of the company to commit resources in a particular market also determines the entry mode choice. Companies need to evaluate various investment alternatives for allocating scarce resources. However, the commitment of resources in a particular market also depends upon the way the company is willing to perceive and respond to competitive forces.

iv) International Experience:- A company well exposed to the dynamics of the international marketing environment would be at ease when making a decision regarding entering into international markets with a highly intensive mode of entry such as Joint ventures and wholly owned subsidiaries.

v) Flexibility:- Companies should also keep in mind exit barriers when entering international markets. A market which presently appears attractive may not necessarily continue to be so, say over the next 10 years. It could be due to changes in the political and legal structure, changes in the customer preferences, emergence of new market segments, or changes in the competitive intensity of the market.
Importance of Global Marketing: Opportunity
Did you know that only 10% of all manufacturing companies in the United States take part in actually exporting their products? There is a huge opportunity for any U.S. company looking to participate in global marketing. Diaper Sponge Pants has realized that the U.S. market has a shrinking need for diapers as U.S. couples are having kids in smaller amounts or delaying kids altogether.
Through extensive marketing research, the diaper company has realized that there is a growing middle class in China and India. This market has the money for disposable diapers, and they are also still having children at a growing rate. This opportunity will create a huge profit for the company.

Benefits of Global Marketing
Traditional economists support the idea of global business and marketing. The theory is that globalization creates even more competition, which in turn will produce higher quality products at an affordable price for consumers. Global marketing of products also improves the living standards of international countries. For example, Diaper Sponge Pants now provides disposable, high-quality diapers to countries like India and China, which before did not have such a product even available to them.
Advantages
The advantages of global market include:
•Economies of scale in production and distribution
•Lower marketing costs
•Power and scope
•Consistency in brand image
•Ability to leverage good ideas quickly and efficiently
•Uniformity of marketing practices
•Helps to establish relationships outside of the "political arena"
•Helps to encourage ancillary industries to be set up to cater for the needs of the global player
•Benefits of marketing over traditional marketing

Disadvantages
•Differences in consumer needs, wants, and usage patterns for products
•Differences in consumer response to marketing mix elements
•Differences in brand and product development and the competitive environment
•Differences in the legal environment, some of which may conflict with those of the home market
•Differences in the institutions available, some of which may call for the creation of entirely new ones (e.g. infrastructure)
•Differences in administrative procedures
•Differences in product placement.
•Differences in the administrative procedures and product placement can occur.



Q.5- Explain 10-P Model of Global strategic Management?
Ans. 10-P Model:- The Ten p’s framework for globalization symbolizesaspirations and the need of employees and the organizations the new competitive setting. The Ten p’s framework integrates the theory of strategic management and practices of business policy and provide shape, structure for the practicing manager to evaluatecompetitiveness at regular intervals. It is the framework the ten p framework which explore a find fit between the soft and hard strategic choices.
The Ten p’s framework consist of :-
1. People
2. Purpose
3.Perspective
4. Positioning
5. Plans
6. Partnership
7. Products
8.Productivity
9. Politics &
10. Performance &profits
1.PEOPLE
Organization is people: An organization is created by the people, it exists for the people, and continuously draws sanction from the people. From this humane perspective, the primary objective of an organization can only be to add value to the society by serving it with value ­augmented products. The people-focus implies that the primary purpose of an organization can never be to provide employment at the expense of customers or society in general-a drill routinely exercised. Similarly, retrenchment of people (hire and fire) cannot be accepted as a no-holds-barred practice for maximizing organizational profits! Retrenchment is a myopic and non-creative response to the problem of cutting costs and improving productivity. The corporate manager role of maximizing `people orientation’ as well as `task orientation’. In these emerging work values, each employee is empowered to take decisions under certain norms. For instance, under Just-in-Time culture, an ordinary shop-floor worker is empowered to stop the whole machine assembly line if he finds that the product quality has gone out of control.

2.PURPOSE
Organizational purpose as used in strategy-making sense is interchangeable with mission, vision, core competence, strategic intent, and basic values. It is important not merely to produce and sell products, but to produce and sell quality products, without fail. Not only from the production side, but also from the distribution side, we must constantly review whether our customers are satisfied with our products and whether customers are satisfied with our service. We must be perfect in satisfying. Organizational purpose must be explicitly stated. An organization must enjoy social sanction by serving socially useful purpose. Purposeless organizations are liable to drift and become marginal in the course of time. A sense of purpose is important for other organizational reasons, including facilitating inter­personal processes and formalization of relationships. Globalization connotes dynamic human will for achieving larger social and human purposes.
3. PERSPECTIVE
Strategic management begins with a statement of clear perspective. Top-management perspective is not a bunch of hunches. Organizational perspective must be well-researched. In facing global competitive challenges, it is important that the firm possesses a global perspective, even though it might be competing and managing locally. Failure to develop an in-depth perspective results in missed opportunities. Polemical debates arise from lack of appreciation of multiple perspectives.
Some of the techniques for improving the perspective horizon and thereby quality of decisions are: scenario-building, process consultation, in-house training programmes, job rotation, and cross-functional teams.

4.POSITIONING
An important dimension in achieving world-class competitiveness relates to the positioning of the firm. This dimension has high interface with organizational purpose, planning and perspective, resulting in definitional confusion. Positioning of the firm is distinct from positioning of products in marketing. The term has remained mostly confined to abstract strategic management literature despite its obvious criticality to practice. An important dimension in strategy is to understand `where am I’, `why am I here’, `where do I want to be’, and `how do I reach there’. In other words, the strategic manager has to ascertain the existing position and future positioning of the firm. Positioning means the place in the industry which the firm would like to occupy in relation to its competitors from the perspective of the consumers. Does the firm compete on lowest-cost, mass-production, high-technology basis? Does it differentiate itself from otherson the basis of superior and value-augmented products, or on high-ethic practices, employee policies, etc. Once `positioning’ choice is made, many process and product related decisions flow.

5. PLANS
The thrust of the 10-P framework is to integrate people’s personal growth and development with organizational objectives through excellent all-round quality. The premise is that the tasks are executed with finesse by satisfied and motivated people. To ensure that people remain aligned with the common sense of purpose and do not drift, the organization must have a clear, documented statement of objectives and broad plans. A firm’s `plan’ must contain a clear mission statement on the way it proposes to serve the customer.

6. PARTNERSHIPS
The partnership approach suggests a sense of belief and trust in other person’s capabilities and skills. It opens the doors for people to look beyond the usual routine responses, and create an environment where people voluntarily come up with innovative solutions for seemingly intractable problems. Partnership is a ‘perspective’ as well as a ‘position’. Partnership has softer (intangible) and harder (tangible) dimensions. Going beyond the softer side of partnership-approach, development of long-term partners for weak competitors is essential for deriving sustainable advantages. Suppliers, bankers and other investors, employees, government, technology collaborators, transporters, and distributors do have a stake in the firm’s well-being (and vice versa) and therefore have to be treated as key resources. In this approach, the perspective is that there can be no profits at the expense of any resource.

7. PRODUCT
A product is a package of information which the customer interprets in his mind while going through the process of consumption. Therefore, the concept of any product must start with the customer in mind, and end with his total satisfaction. In this definition all products are ultimately services converted into information. Beyond quality, products must offer customers a satisfaction to a level where they become the best salesmen for the company forever.

8.PRODUCTIVITY
Global competitiveness is largely an expression of firm’s relative productive efficiency. A country’s prosperity is indicated by the amount of value-added goods that are produced/made available for consumption. Labor productivity is generally the accepted measure of value­ addition with the assumption that the same individual would have different capacities in different technological environments and organizational contexts. A key managerial decision that vitally effects the firm’s overall productivity pertains to capital intensity of the project in terms of investments in land, building and machinery. This decision also affects leverage position of firms.

9. POLITICS
Organizational politics is a reality; it provides dynamism to individuals, groups and total organi­zation. The orthodox organizational behaviour school holds that politics is an attempt to bypass the official channels or to influence outcomes for personal gains (impliedly, at the cost of organizational efficiency). Hence, this school holds that, politics being a negative power-bearing agent should be discouraged. This cannot be true in a larger perspective. Political behaviour, in the positive sense of the word, is a highly democratic and peaceful form of conflict resolution process especially useful in high-uncertainty environments.

10.PERFORMANCE & PROFITS
Companies today are under intense pressure to rebuild public trust and be competitive in a global economy. To do this, they must act with greater accountability, transparency and integrity, while remaining profitable and innovative. They must engage with activists as well as analysts, cooperate as well as compete, manage social and environmental risks as well as market risks, and leverage their intangible assets as well as their financial and physical assets. Today, CEOs, directors and managers alike are faced with a complex, unprecedented challenge.
expectations of society requires the articulation and adoption of clear business principles, and the design and successful use of new tools and management competencies.
1. Harness innovation for the public good.
2. Put people at the centre.
3. Spread economic opportunity.
4.Engage in new alliances.
5. Be performance-driven in everything.
6. Practice superior governance.

7. Pursue purpose beyond profit

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