Competition in Service Marketing Discussion Order Instructions: 2 page assessment due for discussion: Select a service industry from theme parks, banks, and airlines.
What types of market research would you use to explore customers perceptions of the service and why?
Competition in Service Marketing Discussion Sample Answer
Service Marketing
Competition in service industry has gained momentum over the years a situation that has prompted many service industries to adopt appropriate strategies to have a competitive edge. In this wave of competition, it has also become prudent to conduct a market research to understand the perception of customers about services they offer (Skalen, 2009). The paper therefore, deliberates on the types of market research to employ to explore customer perceptions of the services the bank offers and reasons of selecting these kinds of market research.
The two type of market survey appropriate for the bank is secondary and primary research. Secondary research enables the company to analyze information already gathered for other purpose (Bradley, 2010). The bank provides a range of services such as money transfers, deposits, withdrawal, and loan facilities among many others. The bank can use information from other agencies such as Consumers watchdog bodies to get data on the level of income of the customers and the use of bank facilities among the customers to understand the dynamics in the banking industry. This information is very important as it allows the bank to find insights on the customer trends and the general market conditions. For instance, the bank can have an insight on how customers perceive their services in relation to other related services provided by other agencies or institutions.
Primary research is the most recommended type of research that the bank can use to gain a deeper understanding about the perception of customers on the service they provide (Bradley, 2010). Primary research is the gathering of new information/data to meet specific needs (Bradley, 2010). The bank can use either qualitative or quantitative design in evaluating the perception of customers. Quantitative allows collection of numerical information that is analyzed statistically through surveys. Using surveys is cost effective method (Duguleană & Nicolae, 2013). It takes less time to complete as excellent information is gathered if the questions are constructed well.
Qualitative research as well is appropriate method to collect descriptive information. The bank can use open-ended interviews and focus groups to gather this information about customer perception (Bradley, 2010). Using open-ended questions will allow the bank to collect a lot of information on the perception of customers. The bank can gain insights on what the target customers think about the service they provide hence enable them to make adjustments to attract them. Through open-ended interviews, the bank as well can know the trends, likes, dislikes, and emotional motivators of the target customers (Skalen, 2009). Focus groups on the other hand include interviewing people in small groups of betweens six to 12 people. These sessions may last up to four hours. Even though they may be expensive form of market research because they require trained professionals, they provide valuable information on the perception of the services that the bank may be providing.
Using the above methods will require the bank to reach to its customers in various branches and present the questions. The bank should adopt the methods that is appropriate and which they are able to meet the costs. The other consideration when using the method is the urgency or the time it would take to complete the research among many other reasons. Whichever the method selected, the bank will be in a position to understand the perception of its customers towards its services. This will enable the bank to adopt suitable strategies to ensure that it remains competitive in the market.
Competition in Service Marketing Discussion Reference list
Bradley, N 2010, Marketing Research. Tools and Techniques. Oxford University Press, Oxford.
Duguleană, L., & Nicolae, C 2013, ‘Quantitative marketing research on behavior of the small and medium companies on financial advisory services’, Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences, Vol. 6 no. 2, pp. 25-30.
Skalen, P 2009, ‘Service marketing and subjectivity: the shaping of customer-oriented employees’, Journal of Marketing Management, Vol. 25 no. 7/8, pp. 795-809.
