1) Give an example of an advertisement for a service offering that you think is particularly effective. Explain why you think it is effective. You can include the ad in your response. Please ensure that the content of the ad does not contain any inappropriate materials. Failure to do so will result in a zero grade on this assignment and a report to the upper-level administration at the University.

2.)Why are social media platforms such as Facebook, LinkedIn, Twitter, Instagram, YouTube, and TikTok so important for service firms? 

3.)Name three services that you purchased in which price was used as an indicator of service quality. Explain why you relied on price as a quality indicator for each purchase situation.

4.)Discuss the concept of value based pricing in the service context. Use real-life examples to support your discussion.

 

Question 1

            Most effective campaigns or advertising include an attractive tagline that sums up the distinguishing characteristics of items. Effective campaigns and advertising also need to demonstrate behavioral improvements or modifications per se for revenue gains. This makes the advertising efficient. The YouTube ad for Spotify Premium Duo is particularly effective due to several reasons. First, the advertisement is clear on the market targeted by the product which is duo relationships (Spotify, 2020). Also, the description of the scenarios, types, and reasons people listen to music in the ad is a clear representation of the market and as such helps in delivering the message. The advertisement clearly understands the market because it presents different situations of people discussing music. Therefore, most of the audience orientations are presented which helps to better deliver the message and attracting positive responses from the targeted market.

Question 2

            The commonly used social media platforms are very important to service firms for varying reasons. Social media enables firms to identify the social trends of their key audience. To understand and target clients, technological behavior is more valuable than traditional demographics or psychographics. Social media effectively handles and interacts with customers. It is a technique to leverage the technology to establish connections and promote the company. It means that buyers might be attracted by sharing it with friends and others.   It is a good approach to communicate on a personalized basis with customers. By conducting easy market research, one may discover the social networks that the target group utilizes most. The businesses can also get customers' awareness and deliver the brand message by talking and connecting through social media. This allows the companies to reach more people in real-time and become recognized on the market. Another key aspect of social media marketing is customer support. A comprehensive customer service system is essential for all service providers since the services directly influence the satisfaction and usability of the service.

Question 3

            The service quality is perceived from various factors but price plays an essential role. First, I opted for Meadowlands Hospital Medical Center tests which were 10 times for expensive than other good hospitals in the country. During the purchase process, I needed the best and accurate diagnosis, and as such price was a key element for consideration. Secondly, I pay for Apple music for the family plan which a few dollars more than Spotify. In this case, since Apple is a premium brand, its premium pricing for its services, the higher pricing acted as an indicator for better services even considering Spotify has more than 5 million more songs. Another example is for business class for flights. On one occasion while traveling with potential organization clients, I opted for the higher prices since the current situation demanded such.

Question 4

Value-based pricing is a price determination technique focused largely on the perceived value of a customer product or service. Consumer-focused price pricing is value pricing, meaning that firms are based on the amount the client feels a service is worth. This pricing strategy varies from "cost-plus," which influences business costs in the price calculation. Firms offering unique or valued customer benefits are more capable of benefiting from the paradigm of value pricing than organizations that mostly sell commodities. Although pricing value an imprecise methodology, marketing strategies can affect pricing (Kienzler, 2018). For instance, premium health providers requested input from consumers that efficiently quantify the perceived worth of their experience of extreme medical solutions. Sellers can thus utilize the value-oriented pricing technique to determine the future value for such service.