“Describe how the three-stage model of service consumption could explain consumer behavior in a low-

contact service like investing.”

The three-stage model of service consumption is a customer decision making process of the service
purchasing. There are three stages of the purchase process for service which are as follows: pre-
purchase stage, service encounter stage and post-encounter stage.
A pre-purchase stage is a stage before making decision. In this stage, customers try to find solutions from
service providers in order to fulfill their existing needs. They try to search information and evaluate which
service provider can deliver the best solution for them in order to come up with the right decision. In this
process, marketers have to be able to identify the needs of people, what are their expectations, what
benefits or value they are looking for, in order to deliver what they need. Moreover, marketers can use
external sources to stimulate customers’ needs. Therefore, it is necessary for marketers to do the
research from time to time in order to monitor the change of consumer attitudes and behavior in each
service.
The next stage is a service encounter stage which happens when the customer uses the service. Service
encounters range from high contact to low contact according to the industry of each company. The level
of contact refers to the difference of servuction system or service marketing system. It is very important
for service providers to observe or notice consumers at this stage in order to understand and arrange
pleasant market offerings to customers during encounters.
The last stage is a post-encounter stage, a stage after consumers use the service. Customers will
compare service performance from their experience with their expectations. If service performance equals
customer expectations, it means customers are satisfied with the service. If service performance exceeds
than customers are delighted and if service performance is less than customers are dissatisfied.

Definition, Characteristics and Classification of Services,

Difference between Product and Services Marketing,
Paradigms in Services Marketing, Present Marketing Environment,
Services Marketing Mix: Understanding the 7 P’s,
Strategies for Services Marketing: Segmentation, Targeting & Positioning, Differentiation.
Consumer Behavior in Services,
Customer Expectations and
Perceptions of Services – Evaluation of services.
Service Development Design & Standards: New Service Development Process – Basic service to
potential service,
Customer Defined Service Standards,
Demand and Capacity Management.
The Gaps Model Of Service Quality

Q.1 Attempt any TWO from the following. (2X 4 = 8)

A Define services and its characteristics and distinguish them from products.
B Define what is meant by positioning strategy and Explain the need for positioning of services.
C Defining tolerance zones. Do marketers always prefer their customers to have a wider
tolerance zones for a service? Why or why not?
Q.2 Attempt any TWO from the following. (2X 4 = 8)
A What are the steps involved in development of new services ? Explain with suitable example.
B Distinguish between the following giving suitable examples (Attempt any two)
Core services and Supplementary services
Facilitating services and Enhancing services
Service characteristics of Inseparability and Heterogeneity
High contact and Low contact services
C What are the components of augmented marketing mix ? Explain with examples.

Q.3 Attempt any TWO from the following. (2X 6 = 12)

A How are the services marketing-mix. Different from the product marketing-mix ? Explain why
the other three elements are required to be included in the service marketing-mix.
B What are the main reasons for the growing share of the service sector in all major economies
of the world?
C What are the customer's expectation related to the Home loan services ?

Q.4 Attempt any TWO from the following. (2X 6 = 12)

A Discuss the evolution and growth of service sector in India.
B Write short notes on any two of the following:
What is difference between hard and soft standards? Which do you think would be more readily
accepted by employees? By management? Why?
What is customer expectation and customer perception.
Recent trends in Marketing of Services
“The practice of segmenting, targeting and positioning is a must for marketing of financial
services.” Explain.

C what is external marketing environment? Throw some light upon the micro and macro
environment.

Q.5 Attempt any ONE from the following. (1 X 10 = 10)

A If you were the manager of a service organization and wanted to apply the gaps model to
improve service, which gap would you start with? In what order would you proceed to close the
gaps?
B Discuss the steps involved in

Q.6 Attempt any ONE from the following. (1 X 10 = 10)

A Briefly describe how the unique service characteristics of intangibility, inseprability, heterogeneity,
and perishability apply to your educational experience in your services marketing class
B “The practice of segmenting, targeting and positioning is a must for marketing of financial
services.” Explain.