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Services Marketing
Dec 2025 Examination
Q1. A leading retail bank has noticed a significant decline in customer retention among its millennial segment. Market research reveals that these customers are dissatisfied with the bank’s digital services, perceive the physical branches as outdated, and feel that staff interactions lack personalization. The bank’s leadership wants to revamp its service offering to better meet the expectations of this demographic. The marketing manager is tasked with developing a comprehensive strategy that leverages the 7 Ps of services marketing to enhance the overall customer experience and improve loyalty. Based on the scenario, how should the marketing manager apply the 7 Ps of services marketing to redesign the customer experience and address the challenges faced by the bank in retaining its millennial customers? (10 Marks)
Q2. A global hotel chain has recently experienced a surge in online complaints regarding inconsistent service quality across its properties. In response, the company introduced a service guarantee and empowered frontline staff to resolve issues on the spot. However, customer satisfaction scores remain stagnant, and negative reviews persist. Senior management is concerned about the impact on loyalty and profitability, and seeks a critical evaluation of their current complaint handling and service recovery strategies. Evaluate the effectiveness of a hotel chain’s approach to managing customer complaints and service recovery, particularly in the context of building long-term loyalty and positive word-of-mouth. Critique their use of service guarantees and frontline empowerment, and recommend improvements based on the service–profit chain framework. (10 Marks)
Q3(A). As a CRM strategist, design a customer relationship management (CRM) program tailored for a subscription-based online education platform facing high churn and low engagement. Your plan should address the entire customer journey: pre-purchase, service encounter, and post-purchase stages. (5 Marks)
Q3(B). Based on the CRM program designed in Q3.(a)., create a campaign that fosters long-term loyalty and encourages existing users to become brand advocates. Explain how this campaign will utilize platform features like community forums, support services, and personalized communications. (5 Marks)
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