Overview. There are four possible exercises listed below -- two from Chapter 15 and two from Chapter 16 (or at least related to chapter 16). If you are taking the course for 1 credit, please choose two exercises, one from each chapter. If you are taking the course for .5 credits, chose any one of the exercises. These exercises are due July 25.

Exercises from Chapter 15 - Integrating Services Marketing Communication

1. One strategy to "match service promises with delivery" involves creating effective service communication. Select five websites from silimar organizations (for example, all public libraries). Evaluate all five as to whether (and how effectively) they use the suggestions provided on pp. 409-412 of your textbook.

2. Develop a plan to improve customer education for an organization of your choice. Write your specific suggestions in the form of a memo to the director of the organization.

   
    

   Exercises from Chapter 16 on Pricing of Services (and Managing Perceived Costs)

   • For an organization of your choice, consider an actual or potential fee-based service. Assume your opinion has been sought re setting the fee (that is, the price) for this service. Setting the price will depend on the organization's objectives. Some of the possible price-based objectives include: to maximize the return ("what the market will bear"), cost recovery, to generate the highest number of users, social equity, or market disincentive (to discourage people from purchasing the service). Once you determine an objective, consider what will be the best way to set a specific price. Typical pricing strategies are cost-oriented (cost to the organization plus a small amount), demand-oriented (based on perceived value to customers), or competition-oriented (what's the going rate). Describe what you would recommend and why. Again present your report in the form of a memo to the director.

   • Using an information service involves a number of costs to the customer. Some of them are non-monetary (psychic); others are either directly monetary or can be translated to monetary terms (as in time). For an organization of your choice and a particular customer segment, identify what you think all the costs are to individuals in this group. Exchange theory suggests that people accept costs in order to derive benefits that they perceive to be equal or greater than the costs. In marketing terms, the manager can try to minimize the costs or maximize the benefits. For the target segment you have identified, describe some ways you can do either or both.

   Post the URL(s) for your exercises on the Webboard.

   Criteria for Grading. This assignment counts for 20% of your grade. I am looking for thorough and detailed analyses and application of the principles in the text. Creativity in solution or argument is always a plus.

   
   

                      

   Revised 7/12/2000.