Service Marketing (MKTC2210)
Higher Institute of Commerce and Management (HICM)
Semester: Second Semester
Level: 200
Year: 2014
REPUBLIC OF CAMEROON THE UNIVERSITY OF BAMENDA
Peace-Work-Fatherland
P. O. BOX 39 Bambili
MARKETING DEPARTMENT
MKTC 110: SERVICE MARKETING
SECOND SEMESTER EXAMINATION 2013/2014 LE VEL 103 Venue: CCAST Bambili
14
th
July 2014 Time allowed: 03H Lecturer: Tiambou ApoIIin
INSTRUCTION: ATTEMPT ALL QUESTIONS
A/DISCUSSION QUESTIONS
1) A) Identify and discuss the four characteristics of service.(2 marks)
b) What actions could you take to overcome those characteristics? (2 marks)
2) a) Identify and discuss the five components of service quality. (2.5 marks)
b) How do customers evaluate these components? (2.5 marks)
3) a) Think of a company in your community that should not offer a guarantee. Why not? b) What would they have to
do before a guarantee became plausible? (3 marks)
4) When you win the customers back, they enter a “second life cycle” (the recovered customer) with you. Outline four
ways in which this “second life cycle? differs from the “first life cycle.” (4 marks)
5) What are the three important steps needed to handle the occasional customer from Hell. (Give two characteristics
or provide two actions to take in each step). (3 marks)
6) Service organizations can develop strategies to accomplish' its pricing objectives by approaching price
determination. Identify and explain three, approaches to this price determination. (3 marks)
B/ APPLICATION QUESTION
7) Delivering consistently liigh-quality service is difficult for service marketers. Describe an instance when you
received high-quality service and an instance when you experienced low-quality service. What contributed to your
perception of high-quality? Of low quality? (4 marks)
C/ EXERCISES
8) Service Guarantee Evaluation (5 Marks)
Suppose you collect the following data about Hotel Sawa Restaurant in Douala, a restaurant’s 100% satisfaction
guarantee: There are 30,000 dinners per year; the average bill is 8,000FCFA, with a contribution of 3,000 FCFA; 3% of
the customers of the restaurant came because of the guarantee; 2% of all customers invoke the guarantee and of those
who invoke the guarantee, 35% return who otherwise would not have; the lifetime value of a returning customer
averages 30,000FCFA; and each customer who invokes the guarantee on average persuades 0.5 people to come to the
restaurant who would not have come otherwise. Is the guarantee profitable for Hotel Sawa Restaurant?
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9) Calculating Service Costs (4 Marks)
Take the hypothetical example of Montfebe, a-hundred-room Hotel in Yaounde that must calculate costs and set
the price for a room for one night. If the mortgage payment for the entire facility is 25,000,000 FCFA per month, the
daily allocation for a single room is 16,500FCFA. The Hotel has 05 full-time front desk managers, 05 daily
housekeepers, and 02 weekly groundskeepers, and the total staff pay comes to 2,500,000 FCFA per month.
a)
What are the shared fixed costs per day for the whole Hotel and per room? (1 mark)
b)
The variable cost of laundry and room supplies for Montfebe is estimated at 3,500 FCFA per room per day;
20% of the total cost is added to each room, as a profit margin per day. Calculate the room rate at Montfebe per
night. (1.5 marks)
c)
How many nights accommodation (rooms) does Montfebe Hotel need to sell to cover costs? (1.5 marks)
NB: Confine yourself to the relevant facts
GOOD LUCK.
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