Q1. Why is it difficult to distinguish between many goods and services? Use the scale of market entities and the molecular model concepts to explain your answer. (8 Marks)

Q2. Rank and discuss the projected growth rates of the nine service super sectors. What do you believe is driving the growth of the three most highly ranked super sectors? (10 Marks)

Q3. A number of supply and demand strategies were presented as possible solutions to offset the challenges created by the perishability of services.

(1) Discuss the major objective of demand strategies in comparison to supply strategies.

(2) To which group of strategies does “increasing consumer participation” belong?

(3) How does “increasing consumer participation” solve potential problems caused by the perishability of services? (12 Marks)

Q4. Choose any service you purchased recently and elaborate the stages of consumer decision process model to explain your purchase decision. (10 Marks)

Q5. Discuss some specific examples of how the customer’s involvement in the service encounter influences the operational efficiency of the average service firm. (10 Marks)

Q.6 Read the case study and answer the following questions.

Case Study

Developing an Orthodontic Servicescape: Dr Crane’ s Dilemma

In layman terms, orthodontics is a specialty of dentistry that addresses the treatment of improper bites that are the result of tooth irregularity, misalignment of the jaw, or both. The term, orthodontics, originates from the Greek words orthos (meaning straight or proper), and odons (meaning tooth). The majority of clients that seek out orthodontic services are looking to improve the general appearance of their teeth and/or to improve the functionality of their teeth by improving bite. Dentists seeking to become orthodontists typically engage in two- to three-year full-time postgraduate study. The typical orthodontist in the United States earns approximately $121,000 a year. As a young orthodontist, Dr Crane started in his practice in Fort Collins, Colorado. His office was quite small but accommodated the functional needs of his early practice. The vast majority of Dr Crane’s patients consisted of young clients between the ages of 8 and 16, but also included a growing practice of adult orthodontic patients. The typical fee for orthodontic services ranged from $3,000 to $5,000 per patient. Over the years, Dr Crane’s reputation as an orthodontist and the professional and friendly manner in which he and his staff treated patients spread quickly throughout the town. Within a handful of years, Dr Crane’s office was typically mentioned as the number one provider in terms of orthodontic care. In fact, Dr Crane’s services became so popular that his waiting room often overflowed onto a deck located outside the office. The deck offered comfortable seating during warmer months, but was not a practical solution during the snowy Colorado winters. As adding on to his office was not a viable option to increase space, Dr Crane considered building and designing a new office for his practice. Upon visiting fellow orthodontist offices for design ideas, Dr Crane sought additional innovative ideas from the Internet. A Google search of the phrase “orthodontic office design” generated over 96,000 search options, including floor plans, ideas to consider, and a growing list of companies that specialized in dental office design. As he pondered the intricacies of orthodontic office design, Dr Crane was feeling a little overwhelmed by all the decision he would soon face. Furthermore, realizing that his medical practice was indeed a service business, Dr Crane began to ponder how service marketing concepts, specifically servicescape design, should factor into his office design considerations.

1. When considering the servicescape design of an orthodontic office, discuss whether orthodontics is a self-service, an interpersonal service, or a remote service, and how this will impact the design of the office. (10 Marks)
2. Given that an orthodontics office is typically divided up into a number of rooms, specify the rooms you believe would be necessary for an orthodontics office. (10 Marks)
3. In addition to space allocation for the necessary rooms, what other factors should be considered when designing an orthodontic servicescape? (10 Marks)
4. Service firms often have to balance effectiveness and efficiency. Discuss what this trade-off means and how it impacts the design of an orthodontics office. (10 Marks)
5. If an orthodontist and his/her staff can serve six patients per hour, how many chairs need to be available in the waiting room? (10 Marks)