Service Marketing Strategies at Shapes Active Lifestyle

This assignment delves into the service marketing strategies used by Shapes Active Lifestyle. Despite its intangible nature, the organization has employed various tangible elements such as high-tech equipment and a jogging track to establish credibility. To deal with consumer risk perception, Shapes uses techniques like pre-exercise forms for new members, personal training options, and trainers on the floor to guide workouts accurately. The assignment also discusses how Shapes facilitates evaluation through search, experience, and credence attributes. Suggestions for changes in delivery processes include style changes, service improvements, supplementary service innovations, and product line extensions.

Miss Mehwish Jawaid
SECTION-H
Abeera Nauman 17U00495
Khawaja Ameer Hamza Tayyab 17U00401
Minahil Adil 17U00134
Minel Amjad 17U00552
Numra Zaheer 17U00123
2019
Services Marketing
Submission No.3

Shapes Active Lifestyle
Q4) What does the organization do to cope up with the intangibility of the service it is
offering? How do they deal with consumer quality and risk perception and expectations?
Ans) The feature of service intangibility is one of the most prominent and main factor that
differentiates products and services. Therefore, intangibility of service plays a crucial role in how
service producing firms are managed and how its strategies are formed.
To cope up with the intangibility factor Shapes has several tangible elements such as top
quality Cybex equipment which includes treadmills, arc trainers, cycles, weight training
equipment etc. other than this high tech equipment Shapes also has a jogging track. Due to this
Shapes have maintained its reputation in market of providing a wide range of luxurious facilities.
Although the offering or the service Shapes itself is providing is intangible, post usage benefits
of the service they are offering can be tangible. Through social media the organization gives
examples along with the pictures of those members who have achieved their goals, which helps
in building an organizational credibility.
While a tangible product offers comfort by its mere presence, an intangible good or
service cannot do the same. To provide excellent customer service, you first need understand
their needs, experiences, and pain points. To deal with this Shapes uses various techniques. On
the main reception the management has placed a diary on which the members can give certain
suggestions and can even complain if there is any issue. Customers can even write their reviews
on facebook page. The management takes drastic steps to solve customer problem. To deal with
risk perception new members have to fill a pre exercise form the first day they step in the gym.
In the form they have to tell about any health issues such as blood pressure, back injury etc.
People with different health issues are trained differently as compared to those who are
completely fit and have no such health issue. Other than that there are several trainers available
on the floor to guide the members about accurate workout angles in order to minimize the risk of
injury.

There are some people who expect a trainer to be on their head throughout when they are
working out. For such people Shapes offers the facility of personal training. However, they have
to pay an additional personal training fee. Each and every person in the gym has different goals.
Therefore, members are welcomed to discuss their goals with the trainers.
Q5) Specify what product characteristics make them easy or difficult to evaluate and
suggest specific strategies that marketers adopt to facilitate evaluation (in terms of Search,
Experience, and Credence Attributes) and reduce Perceived Risk.
Ans) Due to the intangibility factor, services can be hard to evaluate. To add definition and a hint
of realism to a service, companies come up with supplementary products or physical
characteristics like buildings or equipment to show the existence of a service.
Shapes have maintained its reputation of providing a wide array of services in lavish and
luxurious facilities. Because it’s a people processing service, customers physically consume the
service by using advance, high tech equipment provided by Shapes. Machines such as treadmills,
ab8 coasters, mountain bikes, stretching machines, stair master, suspension trainer, dragging sled
and etc. are physical characteristics of the gym. Other than the equipment, Shapes has jogging
tracks, sportswear shops, café’s and car parking which puts emphasis on the size of the facility.
In this case, the more, the merrier is a way to describe the tangibility of services in Shapes.
In the service business, it’s important to have attributes, which make it easier to judge
and evaluate a specific service. Attributes are divided into three classes, search, experience and
credence attributes. In this case, Shapes has a range of search attributes, which would give the
buyer a great amount of information before the purchase of a membership. Because the world
runs on social media today, majority of the information is provided through digital platforms.
Shapes shares transformation pictures, discounts, events, and other basic information on their
Shapes Active Lifestyle pages on Instagram and Facebook. They also allow consumers to visit
and tour their gyms located in Gulberg and DHA. Other than that, they have a receptionist at
both the locations to answer all queries.
Experience attributes can be evaluated only after the purchase of the service. Service
facilities such as gyms and diet centers require the buyers to bring a change from within them to
be satisfied with their purchase. A Shapes membership can bring the change if he/she works for
it internally. However, one can judge this service by strictly following meal plans given by the
nutritionists and by following workouts conducted by personal trainers at Shapes. An example of
this is the transformation one goes through from their starting weight to their current weight. If
they are satisfied with the results, their experience is the factor, which led them to this decision.

Lastly, credence attributes can’t be evaluated even after the purchase of the service.
Therefore the buyer tends to rely on brand name, testimonials from someone they know, service
quality, and price. Such services have high, perceived risks and consumers are less price
sensitive since they’re judging a service by its reputation. If a consumer were to judge Shapes on
the basis of its repute amongst other gyms in the country, there are relatively low chances to find
substitutes. This is because the core and supplementary services offered by Shapes have a
standard and size, which other gyms and health centers can’t match. Shapes also charges higher
prices for their memberships but the prices are justified since they provide a range of services,
other than just a gym. Shapes also manages to maintain a high, stable position since its launch,
which makes it easier to rely on them.
Shapes has built a positive brand image and position across the country, and this reduces
perceived risks among buyers. Reviews, feedbacks and recommendations shared on digital
platforms and by word-of-mouth play a huge role in decision-making. Therefore, if a firm’s
quality of service can be judged by its outlook, it has relatively low risks compared to those firms
who have an unstable position in the market and can’t be judged by its stature.
Q6) Suggestions of Changes in Delivery Process
1) Style changes: Interior design can be changed by repainting and changing
color schemes, Trainers could be provided with better training suits.
2) Service Improvements: Repair and maintenance of current machines can be
done. Updating the machines and upgrading Gym’s Cardio.
3) Supplementary Service Innovations: Offering high speed Internet facilities. Keeping the
members entertained with music.
4) Product Line Extensions: Adding latest and updated machinery to attract
more customers and have a competitive advantage over your competitors.