Due On Oct. 25

Questions to Answer
1. What makes pricing intangible services challenging compared to tangible products?

Answer: Essentially the difficulty with an intangible product in general is that it can’t be
sampled, inspected, or tested in advance. One thing that makes it seem easier to sell tangible
goods is the ability of a seller to give the buyer a sensory experience. You can touch, feel,
experience the product and begin to sell yourself on it.
2. How does the lack of tangibility affect customers' evaluation of service quality?
Answer: This lack of tangibility can lead to uncertainty and hesitation among customers
when making purchasing decisions. This dimension encompasses the physical aspects of
service delivery, such as the appearance of facilities, equipment, personnel, and communication
materials.
3. Why is it important to quantify and communicate the value of intangible services to
customers?
Answer: Gaining a deeper understanding of the value you offer clients can help you
draw in new business and improve customer service for current clients. Offering a more
expensive product could drive away customers who, for instance, only appreciate your low
costs.
4. What are the key factors considered when making pricing decisions for services?
Answer: These are the key factors considered when making pricing decisions for
services. Cost, Value, Customer’s Perceptions, Competitive Environment and Regulatory
compliance.
5. How does customer perception of value influence pricing strategies?
Answer: In order to shape pricing tactics, customer perception is essential. Customers
may be more receptive to a premium price if they believe a product is of superior quality. On the
other hand, a lower price point can be required if there is an impression of inferior quality. Price
can also influence the perceived value of a product. For example, if a product has a lower price
compared to similar products on the market, consumers may perceive it as an attractive offer.
This can drive purchases, as consumers feel they are getting good value for their money.
6. Why is it important for businesses to consider both cost and value when determining
service prices?
Answer: Knowing the difference between cost and value can increase profitability. The
cost of your product or service is the amount you spend to produce it. The price is your financial
reward for providing the product or service. The value is what your customer believes the
product or service is worth to them.
7. What is value-based pricing, and how does it differ from cost-plus pricing?
Answer: The cost a customer must pay to get a good or service is known as the price.
Cost is the sum of money a seller must spend in order to manufacture and market the good or
service. Value, which can be impacted by elements like quality, brand, and customer
experience, is the buyer's perception of the product or service's worth. Businesses that utilize
value-based pricing base their prices on what customers think a product is worth. This approach
is customer-focused. Cost-plus pricing, which accounts for manufacturing costs in the pricing
process, is not the same as value-based pricing.
8. How does dynamic pricing adjust prices based on market conditions?

Answer: Dynamic pricing is based on real-time changes in supply and demand. It
considers market price fluctuations and monitors competitor’s activity. You get the right data and
information to set optimal product prices and stay profitable despite fluctuations. You save
money in the long run with dynamic pricing. Dynamic pricing, also known as surge pricing or
demand-based pricing, is a strategy where businesses adjust the price of their products or
services in real time based on various factors such as demand, competition, time of day, and
customer behavior.
9. Why is it important for businesses to choose the pricing strategy that best aligns with their
service offering and target market?
10. How can businesses build transparency in pricing to manage customer expectations?
Answer: Transparency builds trust and credibility with customers and reduces the
likelihood of misunderstandings or dissatisfaction. Avoid hidden fees or charges that can
surprise customers and lead to negative perceptions of the service.
11. Why is it essential to highlight the benefits and unique selling points of a service?
Answer: Showing rather than telling helps customers visualize the benefits and
understand the value proposition more effectively. Whether it's superior quality, innovative
features, or exceptional customer service, highlighting what sets the service apart helps justify
premium pricing and attracts customers seeking value.
12. What role does customer education play in managing price perceptions and communicating
value effectively?
Answer: Empowering customers with knowledge enable them to make informed
decisions and appreciate the value proposition more effectively. Proactively address common
objections or concerns related to pricing through informative content, customer support, or
FAQs. Clarifying misconceptions or alleviating fears about pricing helps build trust and
confidence in the service offering.
Questions to Answer
1. What is the focus of Module 9 in the Service Culture course?
Answer: This module will examine these important trends and concerns, examining how
they affect service culture and provide advice on how businesses can adjust and prosper
in a constantly shifting environment.
2. Name one current trend shaping service culture globally.
Answer: Sample trend today is hiring virtual assistant - is a self-employed worker who
specializes in offering administrative services to clients from a remote location, usually a
home office. Typical tasks a virtual assistant might perform include scheduling
appointments, making phone calls, making travel arrangements, and managing email
accounts. And also, in Tiktok affiliates there is a trend today.
3. How does digital transformation impact service delivery?
Answer: The digitization of services has become a ubiquitous trend across industries. .
From online platforms and mobile apps to self-service kiosks and virtual assistants,
digital transformation is reshaping the way customers interact with businesses and
access services.
4. What does personalization in service delivery aim to achieve?
Answer: Personalization in service delivery aims to achieve or to enhance customer
satisfaction, fosters loyalty, and drives repeat business.
5. What is omnichannel service delivery?
Answer: Omnichannel customer service is assistance and advice for customers across a
seamless and integrated network of devices and touchpoints. Businesses with robust
omnichannel customer service can maintain consistently great experiences for their
customers regardless of the communication channel. Organizations are adopting
omnichannel strategies to integrate their service offerings and provide unified experience
across multiple channels. This requires organizations to align their systems, processes,
and communication channels to ensure a cohesive and frictionless customer journey.
6. How did the COVID-19 pandemic influence service delivery models?
Answer: Shift towards Remote and Virtual Services. The COVID-19 pandemic
accelerated the adoption of remote and virtual service delivery models, as organizations
sought to adapt to social distancing measures and remote work arrangements. Virtual
consultations, telemedicine, remote learning, and online shopping surged in popularity,
prompting organizations to invest in technology infrastructure and digital capabilities to
support remote service delivery.
7. Why are health and safety considerations important in service culture?
Answer: In the wake of the pandemic, health and safety considerations have become
paramount for both customers and service providers. Organizations are implementing
stringent hygiene protocols, contactless payment options, and social distancing
measures to ensure the safety of their customers and employees. Demonstrating a
commitment to health and safety builds trust and confidence among customers,
enhancing brand reputation and loyalty.
8. What type of business model is gaining popularity for its convenience and flexibility?
Answer: Mobile companies are gaining popularity due to their convenience, flexibility,
and time-saving benefits for consumers and companies. With the ability to bring services
directly to customers, this approach is a practical and efficient model.
9. Why is sustainability important for service organizations?
Answer: Sustainability initiatives not only benefit the environment but also enhance
brand reputation and appeal to socially conscious consumers.
10. What does DEI stand for in the context of service culture?
Answer: DEI stands for Diversity, Equity, and Inclusion (DEI) in Service Culture

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Questions to Answer

1. What makes pricing intangible services challenging compared to tangible products?

8. How does dynamic pricing adjust prices based on market conditions?

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