MKT 4280 Test 1

Business travelers today are more likely to order room service than ever before. A tired piece of chicken in a congealed sauce kept company by a heap of wilted lettuce will likely cause the customer to think negatively about his or her hotel stay. This is an example of how _____ influences customer satisfaction. A. The salesperson's emotional state B. Problems with perceived equity C. A product feature D. Service validity E. Service attribution

A product feature

The new owner of the Atlanta Falcons football team had research conducted to learn why game attendance was low. The research revealed several reasons, including shortage of toilet paper and straws, high prices for bad seats and inadequate parking. Once all the problems were fixed, the team owner did not want to have any future attendance problems. He set up kiosks in the football stadium where attendees could give the team and the arena a "report card". This would be an example of: A. A trailer call B. A critical incident study C. Market-oriented ethnography D. Requirements research E. A SERVQUAL survey

A trailer call

WedSafe is the name of one of several companies that provide wedding insurance. For example, in the event that a wedding is called off, the couple can insure themselves against loss of their nonrefundable deposits. If WedSafe's primary marketing effort is satisfying its customers, the company is in which stage of the customer relationship evolution? A. Prospects B. Leads C. Friends D. Associate E. Acquaintances

Acquaintances

What are four customer goals for organizations that engage in relationship marketing?

Acquiring customers, satisfying customers, retaining customers, and enhancing customers.

When Marcus Ross arrived at the airport Enterprise Rent-A-Car to pick up a reserved SUV, he was told the agency had no such car on the lot and that it had no record of him making a reservation. The rental agency's customer service representative Gene Lowery apologized profusely and called other agencies until he located an SUV at an agency several miles away. Lowery personally drove him to the other agency, knocked 20 percent off the rental fee, handed Ross $2 to pay a toll that he would now have to pay to get to his destination and gave him a free tank of gas. Ross's experience at Enterprise is an example of which type of service encounter incident? A. Recovery B. Adaptability C. Spontaneity D. Functionality E. Coping

Adaptability

Leonard has been commuting to New York City on the Long Island Railroad for ten years. Every morning he takes the 7:00 a.m. train that is scheduled to arrive in New York at 8:15 a.m. from Huntington, a suburb of New York. Although Leonard would like the train to arrive in New York on time, he knows from his experience as a commuter that it is more likely the train will be 5 minutes late. Leonard's expectation that his train will be 5 minutes late reflects his _________ level of service for the Long Island Railroad.

Adequate

_____ service represents the minimum tolerable expectation, the bottom level of performance acceptable to the customer

Adequate

If customers believe they have multiple service providers to choose from, or if they can provide the service for themselves, their levels of _____________ are higher than those of customer who believe it is not possible to get better service elsewhere.

Adequate service

The fluctuation in a customer's zone of tolerance is more a function of changes in the _____________, which moves readily up and down because of situational circumstances than of the _______________, which tends to move upward incrementally because of accumulated experiences.

Adequate service level; desired service level

Provider gap 3 of the gaps model of service quality is caused by:

Advertising that over-promised

Customers often cannot accurately evaluate the technical qualities of legal work like that provided when a homeowner refinances his or her property. Which of the following cues would the homeowner be likely to use to evaluate the legal services? A. Courtesy of the lawyer and staff B. Diplomas on wall C. How the lawyer dresses D. The lawyer's use of humor and empathy E. All of the above

All of the above

Which of the following are determinants of service quality in a face-to-face service encounter? A. Verbal behavior of employees B. Decor of physical environment C. Verbal behavior of customers D. Appearance of employees E. All of the above

All of the above

Which of the following can influence how satisfied a customer is with a service? A. Customers' emotions B. Product features C. Customers' perception of service quality D. Uncontrollable situational factor E. All of the above

All of the above

Which of the following incidents is likely to influence a customer's perception of service quality of an appliance store? A. A late night call to the store's service department B. The relationship the customer has established with the store after buying several different appliances C. A salesperson's explanation of extended warranty service D. The welcoming atmosphere of the store E. All of the above

All of the above

Which of the following is an example of the people element of an airline company's services marketing mix?

All of the above

Which of the following statements describes a marketing implication that results from the intangibility of services?

All of the above

Which of the following is NOT a benefit of conducting research on the Internet? A. Higher response rate B. Control of data quality C. Ability to target hard to reach populations D. Opportunity to use multimedia to present video and audio E. All of the above are benefits of conducting research on the Internet.

All of the above are benefits of conducting research on the internet

Which of the following statements about how technology has positively influenced service is true?

All of the above statements about how technology has influenced services are not true.

For years, Allstate Insurance has used the slogan, "You're in good hands with Allstate." Which dimension of service quality is this Allstate promotional campaign emphasizing? A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

Assurance

When customers feel uncertain about their ability to evaluate services with high levels of credence qualities such as banking and insurance, the ________ dimension of service quality is likely to be particularly important. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

Assurance

The development of strong customer relationships is strongly influenced by: A. Legal barriers to loyalty programs B. The composition of the buying center C. Barriers the customer faces in leaving a relationship D. Differences in organizational cultures E. All of the above

Barriers is the customer faces in leaving a relationship

Why would a blood bank, which pays people for their blood donations and then sells this blood to hospitals, use the name Blood Assurance? A. Because the assurance dimension of service quality guarantees customer satisfaction B. Because the assurance dimension of service quality means that the blood donation will be done accurately C. Because the assurance dimension of service quality emphasizes the knowledge of the employees D. Because the assurance dimension of service quality negates concerns about tangibles E. Because the assurance dimension of service quality inspires trust and confidence

Because the assurance dimension of service quality inspires trust and confidence.

One of the most frequently measured _________ is willingness to recommend the service. A. Behavioral intentions B. Customer priorities C. Preferences D. Future expectations E. Individual requirements

Behavioral intentions

According to the _______, while advertising, sales and promotions pour profits into your company, there will always be some customer defection, which has the potential to grow larger. A. Bucket theory of marketing B. Iceberg principle of relationships C. 80/20 principle D. Service paradigm shift E. Echo principle of marketing

Bucket theory of marketing

Retention strategies based on social bonds: A. Build long-term relationships through social and interpersonal as well as financial bonds B. Use a strategy of mass customization C. Are concerned about maintaining customer intimacy D. Are the most difficult of the retention strategies to initiate E. Create high opportunity costs

Build long term relationships through social and interpersonal as well as financial bonds

Service companies can close provider gap 4 by doing all of the following EXCEPT:

Conducting market research

Kayla has been having her haircut by Duncan, a hairstylist at Studio 21 Salon, for five years. She has continued to use the same hairstylist even though the price of a haircut at Studio 21 Salon is $10 higher than at competing hair salons. Duncan stays up to date on the latest hairstyles and hair care products and Kayla always leaves the salon with a haircut she loves. Kayla realizes _____ benefits from her relationship with Duncan. A. Reliability B. Confidence C. Transactional D. Self-actualization E. Transformational

Confidence

What are the three types of benefits customers enjoy through relationship marketing?

Confidence benefits, social benefits and special treatments benefits

Beyond the specific inherent benefits of receiving service value, customers also benefit in other ways from long-term associations with firms. The three types of relational benefits for customers are: A. Confidence benefits; economic benefits; behavior benefits B. Management benefits; confidence benefits; economic benefits C. Confidence benefits; social benefits; special treatment benefits D. Confidence benefits; special treatment benefits; economic benefits E. Social benefits; management benefits; behavior benefits

Confidence benefits, social benefits, special treatment benefits

All of the following are among the criteria for an effective service research program EXCEPT: A. Includes perceptions and expectations B. Includes measures of loyalty or behavioral intentions C. Measures priorities or importance D. Considers only qualitative research E. Occurs with appropriate frequency

Considers only qualitative research

____ arise(s) when the customer is required to pay a penalty to switch providers. A. Fixed costs B. Legal inertia C. Financial inertia D. Contractual costs E. Opportunity costs

Contractual costs

A man who became intoxicated on a flight started speaking loudly, annoying the other passengers. The flight attendant asked the passenger if he would be driving when the plane landed and offered him coffee. He accepted the coffee and became quieter and friendlier. This is an example of which type of service encounter incident? A. Reliability B. Adaptability C. Spontaneity D. Functionality E. Coping

Coping

Creating a memorable service experience is important to service providers. Restaurants and hotels on the beach have to train their employees to deal with students who flood the regions during spring break and who oftentimes have had too much to drink. Which common theme of service are they involved with in this example?

Coping

Which of the following service encounter themes reflects employees' responding to problem customers, i.e., customers who are unwilling to cooperate with the service provider, other customers, industry regulations and/or laws? A. Recovery B. Adaptability C. Spontaneity D. Credibility E. Coping

Coping

Salespeople for college texts call on college instructors to sell them on using a particular text for their classes. Improvements in efficiency have led some publishers to stop making sales calls altogether on smaller colleges. It is a much better use of the sales force's time to call on schools with large classes and big adoption rates. From the customer's point of view, this application of the profitability tier: A. Could cause resentment B. Will not cause any problems C. Simply increases the importance of word-of-mouth communication D. Is not profitable E. Creates across-the-board customer enhancement

Could cause resentment

Which of the following factors does NOT lead to provider gap 4?

Creating clear standards

_______ qualities are characteristics of a product consumers may find impossible to evaluate even after purchase and consumption.

Credence (belief, faith)

Which of the following themes is NOT a source of customer satisfaction/dissatisfaction in service encounters? A. Recovery B. Adaptability C. Spontaneity D. Credibility E. Coping

Credibility

Clark participated in a research study conducted by Red Lobster restaurants in which he was asked to provide a verbatim story about a satisfying and dissatisfying service encounter he had at Red Lobster. Which of the following types of research studies did Clark participate in? A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Trailer calls E. Customer panels

Critical incident studies

George was asked by an employee of a local do-it-yourself store to describe in detail his experiences in the store as he bought house paint, caulk and brushes. He later learned several of his acquaintances had been asked to do the same thing. What research method was being used by the do-it-yourself store?

Critical incident studies

SwissAir made some unwise investments to pay for a planned expansion. As a result, the company had to make some cost-cutting moves that alienated its customers. Eventually the company declared bankruptcy, regrouped and found itself able to resume business. Its board of directors announced the company would resume flying within the next two years if it could prove the airline could regain at least 75 percent of its lost customers. It decided to allot $50,000 to determine the probability that its former customers would fly on the airline again and what methods requiring little or no money could be used to increase that probability. Which of the following two methods are low-cost research methods SwissAir could use to reach its research objectives? A. Critical incident studies and lost customer research B. Future expectations research and lost customer research C. Complaint solicitation and service expectation meetings and reviews D. Database marketing research and customer panels E. Customer panels and complaint solicitation

Critical incident studies and lost customer research

To determine the source of customers' favorable and unfavorable perceptions in service encounters, researchers use which of the following research methods? A. Trailer calls B. Mall intercept interviews C. Role-playing experiments D. Critical incident technique E. Thematic apperception tests

Critical incident technique

Allstate changed its insurance billing procedure after research revealed customers wanted flexible payment plans and billing information presented in an easy-to-read format. What type of research would Allstate most likely have used to discover how customers perceived Allstate's billing procedure? A. Trailer calls B. Mall intercept interviews C. Role-playing experiments D. Critical incident technique E. Thematic apperception tests

Critical incident techniques

The new owner of the Atlanta Falcons football team wanted to know why game attendance was low. Former purchasers of season tickets were asked to provide an anecdote about a satisfying and a dissatisfying experience at a Falcon game. The researchers used: A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Trailer calls E. Customer panels

Critical incidents studies

Since service companies have found that customers differ in their relationship value and that it may be neither practical nor profitable to meet or exceed all customers' expectations, they have divided their target markets according to: A. Current and/or future profitability B. Behavior C. Usage D. Volume E. User characteristics

Current and/or future profitability

The _____ gap is the difference between customer expectations and perceptions

Customer

_____ standards are operations standards set by a service firm to correspond to customer expectations.

Customer driven

Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining?

Customer expectations are higher because of the excellent service they receive from some companies.

Every month the pest exterminator does a monthly spraying at Jean Poole's house. Every month Jean gripes that she is being ripped off by the exterminating company and that she's going to find a new one. But she never does change service providers due to: A. The iteration principle B. Customer inertia C. Service standardization D. Switching costs E. Process reciprocity

Customer inertia

Which of the following is NOT a reason why a service firm may avoid a customer relationship with a particular customer? A. Customer is in the wrong segment B. Customer is not divisible C. Customer is not always right D. Customer is not profitable in the long run E. Customer is difficult

Customer is not divisible

What type of qualitative research is used to monitor changes in customer expectations and to provide a forum for customers to suggest and evaluate new service ideas?

Customer panels

A primary goal of firms at the friendship stage of the relationship is: A. Customer retention B. The creation of a unique product C. Creating a competitive advantage through their marketing mix D. Gaining a familiarity of how the customer creates its service offerings E. The enhancement of customer relationships

Customer retention

Moonlight Catering has increased the deposit it requires before agreeing to cater an event to $300. This amount is nonrefundable and must be paid when Moonlight Catering is hired for the job. This increase in deposit will help Moonlight Catering achieve its goal of: A. Customer enhancement B. Prospecting C. Increasing its value-added service D. Customer satisfaction E. Customer retention

Customer retention

Which of the following statements about customer satisfaction and service quality is true?

Customer satisfaction is influenced by perceptions of service quality.

The transition from the _____ stage to the _____ stage of the customer relationship requires the development of trust. A. Customers as acquaintances; customers as friends B. Customers as strangers; Customers as acquaintances C. Customers as partners; customers as acquaintances D. Customers as acquaintances; customers as strangers E. Customers as friends; customers as strangers

Customers as acquaintances; customers as friends

The term customer intimacy is most closely related to the establishment of _____ bonds. A. Financial B. Social C. Customization D. Structural E. Security

Customization

Regency Dry Cleaners operates in a medium-sized community. Its customers all live within a 20-mile radius of the cleaners. Regency provides its regular customers with several alternative pickup and delivery schedules rather than a single weekly pickup and delivery. Regency's driver will pickup clothes in the morning and deliver them back clean in the afternoon if that is what a customer needs. Regency has found the increase in its total number of customers because of this service more than pays its additional operation expenses. Regency has built its customer retention strategy around: A. Customization bonds B. Social bonds C. Niche marketing D. Focused marketing E. Structural bonds

Customization Bonds

Pandora is an Internet-based music discovery service that helps its customers find and enjoy music that they like. A customer can create up to 100 unique "stations" by identifying favorite songs or artists and then Pandora's expert systems analyzes what they like and provides suggestions based on this analysis. Pandora is using ____________ to develop and maintain customer relationships. A. Customization bonds B. Social bonds C. Niche marketing D. Focused marketing E. Structural bonds

Customization bonds

Step-by-Step day care center offers parents several other services not normally offered by day by day care centers. A caterer is present every morning when the children are dropped off to take orders for supper. When the parents pick up their children in the evening, their supper is ready for them to take home, too. A hair stylist comes to the center once a week and cuts the hair of any child whose parents request this service. A photographer comes to the center every three months to take updated pictures of children whose parents don't have the time to take their children to the photography studio. In this way, Step-by-Step is using _____ to support its customer retention strategy. A. Financial bonds B. Social bonds C. Customization bonds D. Structural bonds E. Security bonds

Customization bonds

In the first stage in the service marketing research process, the researcher: A. Implements the research program B. Reports his or her findings C. Defines the problem and research objectives D. Collects and tabulates data E. Develops a services measurement strategy

Defines the problem and research objectives

The most critical stage in the service marketing research process is when the marketing researcher: A. Implements the research program B. Reports his or her findings C. Defines the problem and research objectives D. Collects and tabulates data E. Develops a services measurement strategy

Defines the problem and research objectives

What is the first step in designing service marketing research?

Defining the problem and research objectives

Product and service features that are unexpected and surprisingly enjoyable are known as ___________.

Delights

A human resources manager who is hiring a sales trainer to improve the company's sales close rate will be concerned whether the trainer will provide the needed tools and motivation to perform his or her job. The human resources manager wants the company's top management and its sales force managers to approve of his selection of trainer. This is an example of a(n) _____ expectation.

Derived service

A(n) _____ expectation occurs when customer expectations are driven by another person or group of people.

Derived service

Hildy's children are giving her a weekend trip to a Lake Tahoe resort. Their expectations of the amenities and services the resort will provide are much higher because they are planning the trip for their mother's approval rather than for their own use. This is an example of a(n) _____ expectation.

Derived service

After his home was burglarized, Rich became concerned about the safety of his wife and three children since he often traveled out-of-town on business. To prevent further burglaries and ensure his families safety, Rich decided to purchase a home security system from ADT Security Systems. Rich's expectation that an ADT home security system will protect his family and prevent future burglaries is influenced by his ____________.

Derived service expectations

Last week, Francine bought a 6-month membership package at Planet Fitness. She plans to exercise at Planet Fitness four days a week by participating in an aerobics class, using the nautilus equipment and having a personal trainer. By the time her 6-month membership expires, Francine hopes to lose 20 pounds, tone and strengthen her muscles, improve her cardiovascular fitness and look and feel more attractive. Francine's expectations for her health and physical appearance reflect her _________ level of service for Planet Fitness.

Desired

_____ service is the level of service the customer hopes to receive.

Desired

What is a consumer's "wished for" level of performance?

Desired service.

Service companies can close provider gap 3 by doing any of the following EXCEPT

Developing customer-defined service standards

The central focus of the gaps model of service quality is the:

Difference between customer expectations and perceptions.

Sometimes firms have service encounters that fail because of ___________, who intentionally or unintentionally act in a way that is disruptive, rude, or aggressive.

Dysfunctional customers

What are the three of benefits firms enjoy through relationship marketing?

Economic benefits, customer behavior benefits and human resource management benefits

The three types of benefits to organizations of maintaining and developing a loyal customer base are: A. Economic benefits; customer behavior benefits; human resource management benefits B. Economic benefits; confidence benefits; social benefits C. Customer behavior benefits; human resource management benefits; social benefits D. Special treatment benefits; economic benefits; customer behavior benefits E. Confidence benefits; social benefits; customer behavior benefits

Economic benefits, customer behavior benefits, human resource management benefits

Research indicates that if an individual has to wait longer than eight seconds for an Internet site to download, then he or she will likely abandon plans to visit the site and move on to another site. In terms of the service quality dimensions that are used to evaluate web sites, a site that took longer than eight seconds to download would be lacking in _________. A. Assurance B. Reliability C. Fulfillment D. Empathy E. Efficiency

Efficiency

List the four core dimensions consumers use to evaluate Web sites.

Efficiency, fulfillment, reliability, and privacy.

The growth of e-tailing has led to the identification of four core dimensions that consumers use to evaluate Web sites at which they experience no questions or problems. They are: A. Efficiency, fulfillment, system availability and privacy B. Responsiveness, reliability, assurance and empathy C. Context, content, community and connectivity D. Content, reliability, privacy and download speed E. Efficiency, effectiveness, maneuverability and attractiveness

Efficiency, fulfillment, system availability, and privacy

Which of the following factors does NOT cause provider gap 3?

Efficient marketing reserach systems

Which of the following industries would be ranked highest by the American Customer Satisfaction Index (ACSI)? A. Internet retailers B. Electronics C. Hotels D. Supermarkets E. Internet social media

Electronics

Ally Bank advertises "24/7 live customer care" which means that customer can call by telephone and speak with a human being about their banking matters any time of day or night. Ally Bank customers never have to talk to a machine. With this service feature, Ally Bank is emphasizing the _________ dimension of service quality. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

Empathy

Even though it was unusual, the retailer wanted the sign painter to do reverse painting on her store windows. (Paint the glass and leave the letters clear.) The retailer felt that this would make her store stand out as a unique place to shop. She had to talk to four sign painters before she found one that was agreeable to her plan. Which service dimension were the first three sign painters lacking?

Empathy

The _____ dimension of service quality is the caring, individualized attention given to customers. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

Empathy

Which of the following is one of the ways an organization benefits from maintaining and developing a loyal customer base? A. Employee retention B. Customers' increasing expectations of more personalized service C. A reactive market-growth strategy D. The ability to engage in guerilla marketing E. Competitor entrenchment

Employee retention

Which of the following types of interaction activities in a service organization is used to obtain ideas for service improvement? A. Employee suggestions B. Employee internal satisfaction surveys C. Research on intermediate customers D. Executive listening approaches E. Executive visits to customers

Employee suggestions

Which of the following statements describes a marketing implication that results from the simultaneous production and consumption of services?

Employees affect the service outcome

Which of the following statements describes how consumers and employees are responding to technology-based services?

Employees are often reluctant to integrate technology is a certainty.

From the customer's point of view, the most vivid impression of service occurs in the service _____ when the customer interacts with the service firm. A. Event B. Socialization C. Encounter D. Arrangement E. Linkage

Encounter

Century Business Systems, Inc. offers all of the non-technical support a business would need to operate successfully-everything from auditing to management consultant to financing to marketing advice. Which of the following types of interaction activities is it likely to use to gain information about its business customers and still be able to have only a minimal investment of time and money in the research? A. Employee suggestions B. Employee internal satisfaction surveys C. Research on intermediate customers D. Executive listening approaches E. Executive visits to customers

Executive listening approaches

US Franchise System, Inc. (USFS) franchises its brand names such as Microtel Inns & Suites, Hawthorn Suites and Best Inns to independent hotel owners and operators. Every three months, employees from a different franchise overseen by USFS conduct customer satisfaction telephone surveys. Among the employees who regularly participate in the survey process are senior managers, who are trained and certified to conduct survey interviews. Which type of interaction activity is USFS using to improve upward communication? A. Employee suggestions B. Employee internal satisfaction surveys C. Research on intermediate customers D. Executive listening approaches E. Executive visits to customers

Executive listening approaches

Customer _____ are beliefs about service delivery that function as standards against which performance is judged.

Expectations

Tom Grantham, a U.S. citizen, decided to outsource the preparation of his personal income taxes to a company in India. After he emailed his earnings and scanned receipts, his tax return was completed in two days at a cost of $50 - about one-third of what a U.S. firm like H&R Block charges. However, he had to file his return as "self-prepared," since it was not prepared by a U.S. accountant. Using a foreign service provider may require customers to reset their:

Expectations

J C. Penney recently instituted a new policy for returns that states, "Happy returns. Any item, anytime, anywhere. It's that simple." J. C. Penney's return policy is an example of a(n):

Explicit service promise

Oakley Millwork is a supplier of products used in the construction industry. It has a published policy that if a customer places an order from its catalog and the product is not available for immediate delivery, the customer gets the item free. Oakley Millwork's policy is an example of a(n):

Explicit service promise

_____ are personal and nonpersonal statements about a service made by an organization to customers.

Explicit service promises

What two factors influencing customers' desired and predicted expectations can the service provider control?

Explicit service promises and implicit service promises

The greatest potential variability in the interaction between a customer and a service firm occurs in a(n) _____ service encounter. A. Detached B. Phone C. Face-to-face D. Public E. Integrated communication

Face to Face

In a __________ encounter, both verbal and non-verbal behaviors are determinants of quality, as are tangible cues such as employee appearance and informational brochures. A. Face-to-face B. Public C. Personal D. Symbiotic E. Customer-controlled

Face to face

A customer's perceived service alternatives are a source of desired expectations.

False

A customer's personal service philosophy is an influence on his/her adequate service expectations.

False

A primary issue that marketers face in relation to service perishability is ensuring service quality over time.

False

Because a product is tangible, it cannot be inventoried.

False

Explicit service promises are defined as any non-personal, paid-for communication between the customer and the seller.

False

How a customer defines desired levels of service is more likely to change than how adequate levels of service are defined.

False

Level 1 retention strategies are very useful in creating a long-term competitive advantage.

False

Once a company has entered into a relationship with a customer, that relationship should never end.

False

Pricing is easier when marketing services than when marketing goods.

False

Service marketing researches all agree that the terms satisfaction and quality are interchangeable.

False

The deregulation of industries has actually lessened the demand for services marketing skills.

False

The four-tiered system for measuring customer profitability uses usage segmentation.

False

The seven elements of the marketing mix for services are product, promotion, place, price, process, progress and people.

False

There is no way to calculate the relationship value of a customer

False

To be successful, a service provider must accept the fact that the customer is a

False

Well-implemented retention strategies will have long-term success even if there is no solid base of service quality and customer satisfaction to build on.

False

When customers and firms reach the friend level of their customer relationship, firms generally focus on providing value comparable to the competition.

False

While the zones of tolerance may vary because of differing personality types, they are stable with relation to the importance of the service dimensions.

False

With relationship marketing, customers receive the specific inherent benefits of receiving service value and nothing more.

False

Zones of tolerance are a source of desired expectations.

False

Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Marriott is using _____ to implement its retention strategy. A. Financial bonds B. Social bonds C. Customization bonds D. Structural bonds E. Security bonds

Financial bonds

Participants in the Coffee Café's loyalty program get a free large cup of coffee after every 10th cup of coffee purchased. After purchasing 100 cups of coffee from the Coffee Café, loyalty program participants receive a $10 gift certificate good for food and beverage items or merchandise. Coffee Café's uses _____ to encourage its customers to remain loyal A. Financial bonds B. Social bonds C. Customization bonds D. Structural bonds E. Security bonds

Financial bonds

Following the acquaintance relationship in the evolution of customer relationships is the customers as _____ stage. A. Allies B. Associates C. Friends D. Partners E. Supporters

Friends

Anika belongs to an Internet library, which lets her trade books she no longer wants for like-valued items she does want. Most members follow the rules of the Web site, but a few unscrupulous members do not mail requested books because they are more interested in acquiring books than sharing them with others. Anika has the potential to experience problems with which e-service quality dimension as she trades books? A. Assurance B. Reliability C. Fulfillment D. Empathy E. Efficiency

Fulfillment

Features research and lead user research are both categorized as types of: A. Post transaction surveys B. Database marketing research C. Process checkpoint surveys D. Future expectations research E. Relationship surveys

Future expectations research

If you own a small advertising agency and have limited funding and even less time to spend on service marketing research, which of the following types of research would you be LEAST likely to use? A. Process checkpoint evaluations B. Future expectations research C. Trailer calls D. Critical incidents studies E. Complaint solicitations

Future expectations research

Which of the following types of research has a high monetary cost? A. Complaint solicitation B. Critical incident studies C. Mystery shopping D. Lost customer research E. Future expectations research

Future expectations research

Which of the following is NOT a research objective for improving upward communication in a service organization? A. Gain first-hand knowledge about customers B. Improve internal service quality C. Gain first-hand knowledge of employees D. Obtain ideas for service improvement E. Gain first-hand knowledge about competitors

Gain first hand knowledge about competitors

Enterprise Rent-A-Car closely ties customer service to employee success. With a tracking system called the Enterprise Service Quality Index (ESQi), the company routinely follows up with customers by phone to determine their level of satisfaction with the company. Only completely satisfied customers count toward an employee ESQi score, which is used to measure employee's potential for promotion. Enterprise closes provider _____ by using marketing research.

Gap 1

Frequent travelers on airlines know one of the costs of traveling is damaged baggage, but they also know that each airline will either repair or replace any luggage damaged by its baggage handlers. The ability to count on this service in the event a handle is torn off or the side of a bag is gashed helps the airlines narrow provider _____ of the gaps model of service quality.

Gap 1

Provider _____ is the difference between customer expectations of service and company understanding of those expectations.

Gap 1

Service providers like insurance companies that emphasize acquiring new customers rather than retaining current customers are broadening provider _____ of the gaps model of service quality.

Gap 1

Telepizza S.A. Is a Spanish pizza restaurant chain that offers children membership in its magic club. The magic club gives its members small prizes, usually simple magic tricks, with each order their parents place. Telpizza's use of a frequency marketing program has allowed it to narrow provider _____ of the gaps model of service quality.

Gap 1

The 25th Hour Inc. is a business that runs errands for people. Its employees have been called in to care for a toddler when her mother went into labor, to buying groceries for a mother who wanted to attend her child' soccer game and to decorate for parties. If any customer is not completely happy with the service The 25th Hour provides, its employees are told to immediately refund the customer's money (less any expenses) as soon as the complaint is made known. This sort of service recovery policy helps to narrow provider _____ of the gaps model of service quality.

Gap 1

The Oaks at Ojai is an award-winning destination spa in California. Two thirds of The Oaks' guests are repeat visitors who return to the spa for a fun and relaxing service experience unsurpassed by other spas. Just before heading home, each guest is asked to complete a questionnaire and provide feedback about his or her experience. Questions are specific and management meets weekly to review and discuss the improvements suggested by guests. Each guest who completed a questionnaire receives a letter of thanks with a promise to follow up on any issues mentioned. By conducting research and focusing on customer relationships, The Oaks is closing provider _________ of the gaps model of service quality.

Gap 1

The Ritz-Carlton Hotel trains each employee to note the likes and dislikes of regular customers and record this information into a computerized guest history profile that provides information on the preferences of 240,000 repeat Ritz-Carlton customers. Through the use of this customer database, the Ritz-Carlton is able to provide more personalized service to its guests. If, for example, a guest prefers a feather pillow or always orders a glass of sherry before retiring, this information can be entered in the database and these needs can be anticipated and met. By providing more personalized service, the Ritz-Carlton is narrowing provider _____ of the gaps model of service quality.

Gap 1

When IKEA, the world's largest furniture retailer, wanted to open a store in Chicago, the company asked groups of customers to dream up their ideal shopping experience and draw a design for a store that would satisfy their needs. IKEA subsequently incorporated the customers' ideas into the service design for the store. Instead of simply conducting surveys to determine customer expectations, IKEA put customers in a "wish mode" and successfully used an innovative approach to close provider _________ of the gaps model of service quality.

Gap 1

FedEx developed a 12-item statistical Service Quality Indicator to measure customer satisfaction and service quality. The index is comprised of customer-defined performance standards such as number of missed pick-ups, number of lost packages and number of late deliveries. Each of the performance standards is weighted based on the relative importance of each standard to customers. By developing a Service Quality Indicator that incorporates customer-defined performance standards, FedEx is closing provider _____ of the gaps model of service quality.

Gap 2

Historically, the Japanese have had poor dental care. As part of their beauty regimen, the Japanese do have a habit of lightening and whitening their skin. Teethart has developed "tooth manicure" salons, which allow Japanese to match their teeth coloration to their skin. Each treatment takes place in a private booth, which contains an ergonomically-designed chair, muted lights and New Age-style music. The walls are painted calming shade of blues and greens. By using physical evidence to reduce anxiety, Teethart is narrowing provider _____ of the gaps model of service quality.

Gap 2

Home Design is a reasonably priced source for home decorating items like bronze bookends and silver candlesticks. Until its recent remodeling, customers who happened into the store were often disappointed because they expected the store to be a discount store. The front of the store had some masonry damage. Its parking lot needed repaving. Its store windows were stained and one was cracked. Now customers who enter the store expect to find unique decorating items because the outside of the store is so tastefully done. This change in servicescape was a way to narrow provider _____ of the gaps model of service quality.

Gap 2

Provider ______ is the difference between company understanding of customer expectations and the development of customer-driven service designs and standards

Gap 2

The Oaks at Ojai is an award-winning destination spa in California. Two thirds of The Oaks' guests are repeat visitors who return to the spa for a fun and relaxing service experience unsurpassed by other spas. The owner and staff of The Oaks are committed to delivering the best service possible. Each employee is carefully selected and trained, every event happens with precision, guest questionnaires are thoroughly reviewed, and improvements suggested by guests are implemented. By having service standards that reflect what customers expect, The Oaks at Ojai is closing provider _________ of the gaps model of service quality.

Gap 2

When the toddler's ball rolled under the motel bed, his mother was surprised to find a dirty sock and used crumbled tissues under the bed also. This physical evidence of service was not what the mother expected to find in this luxury hotel and served to broaden the provider _____ of the gaps model of service quality.

Gap 2

In India weddings are timed to occur when Venus is in the ascendant and Jupiter is strong. This day is deemed lucky. In 2005, almost 15, 000 couples in New Delhi had their wedding on December 25, the day astrologers announced would be the best day for a wedding. It is very likely that wedding planners in New Delhi have difficulty narrowing provider ______ of the gaps model of service quality due to their inability to match supply and demand.

Gap 3

Jiffy Lube, a franchiser of 10-minute oil and lubrication services, has been plagued by a lack of consistency across franchise outlets. The lack of consistency has resulted from Jiffy Lube's failure to require franchisees to adhere to common service standards as it rapidly expanded its franchise business across the U.S. Jiffy Lube's failure to require franchisees to adhere to common service standards has led to provider _____ of the gaps model of service quality.

Gap 3

Provider _____ is the discrepancy between the development of customer-driven service standards and actual service performance by company employees

Gap 3

The owner of a small but growing business, Terry Franklin was becoming overwhelmed with requests from his outside customer service representatives for decisions about solutions to customer problems. Noting the mountain of his own work that was piling up, he instituted a policy change and informed the representatives. "Keep the customers happy," he said. "f it's a problem that takes less than $100.00 to fix, there's no need to call me. Use your judgment and go ahead and fix it." Terry Franklin is using empowerment to narrow provider __________ of the gaps model of service quality.

Gap 3

he New York Palace, an upscale hotel in New York City, synchronizes demand and hotel capacity by offering an attractively priced weekend package during the fall when demand for its rooms slows down. In addition to having a luxury-filled weekend at the New York Palace for $219 per night, guests enjoy very select privileges from Saks Fifth Avenue. Its weekend package provides a personal shopping coordinator, complimentary gift wrap and package delivery to the hotel, individual beauty consultation and a 10 percent Saks discount. The New York Palace's weekend package closes provider ____ of the gaps model of service quality.

Gap 3

American Airlines pilots and crews are trained to inform customers immediately when flight delays occur and to keep customers advised at regular intervals about the changes in a flight's schedule. By keeping customers informed during a flight, American Airlines is closing provider _____ of the gaps model of service quality

Gap 4

Extron Electronics sells coaxial cables for connecting computers to all types of peripheral devices like printers, modems and fax machines. For the benefit of its customers, Extron provides a laminated card with pictures of all the possible cable connections that a customer could need. With this card, a customer can order from one to any number of connectors with as many feet of cable as is needed. Orders can be placed by calling a toll-free, number, sending an email, or using the company's website. Company reps are also available 24-hours a day in case the customer is not sure which drawing on the card matches his or her needs. By integrating its services marketing communications, Extron is closing provider _____ of the gaps model of service quality.

Gap 4

In order to get an accurate cholesterol reading, an individual must fast for at least eight hours before the test. When you schedule a cholesterol test at your doctor's office, you will receive a brochure that will explain the fasting and why it is so very necessary. Providing this sort of educational literature to patients is one way doctors try to narrow provider _____ of the gaps model of service quality.

Gap 4

Marriott had an advertising campaign with the following theme: "You can't be late for business appointments and neither can we. At Marriott, if your breakfast doesn't show up on time, it won't show up on your bill. That's because we take our business just as seriously as you take yours. And our business is service. The commitment is what makes Marriott the business traveler's first choice". If a business traveler, who saw this advertisement, stayed at a Marriott hotel and did not receive breakfast on time and was charged for that breakfast, Provider _____ of the gaps model of service quality would have occurred.

Gap 4

Olivia and Ian were due to be wed last March when a tornado blew down the church where the wedding was to be held. Even though the wedding was postponed and they risked losing over one thousand dollars in deposits, they were not worried because they had purchased wedding insurance. The salesperson had guaranteed they would have a perfect wedding no matter what happened. When Ian called the insurance agent, he learned that the policy did not provide coverage if the wedding was postponed due to an act of nature such as a tornado. In this case, provider _____ of the gaps model of service quality was apparent as their "perfect wedding" did not happen as promised

Gap 4

Provider _____ is the difference between service delivery and the service provider's external communications

Gap 4

The ads for a weight loss program that promised the program would change an individual's eating habits through hypnosis is probably overstating its usefulness because there are some people in the world that cannot be hypnotized. This sort of misleading advertising broadens provider _____ of the gaps model of service quality.

Gap 4

How would you describe the sustainability of competitive advantage in the acquaintance stage of the customer relationship evolution? A. Non-existent because the company's primary goal is to induce trial B. Generally low with some variation on how the competition creates unique value C. High even though it depends on how unique the service offering is D. Medium because customer are heterogeneous E. Generally low because of the expense associated with mass customization

Generally low with some variation on how the competition creates unique value

Which of the following is an example of a tangible component provided by a hotel?

Guest rooms

Customer panels: A. Are conducted on an annual basis B. Have moderate time costs C. Have high monetary costs D. Are statistically valid E. Cannot be used to monitor changing customer expectations

Have moderate time costs

Benford Bank hired marketing researchers when it noticed many people who had savings accounts with the bank did not have checking accounts and credit cards with it. The first task of the market researchers was to learn if the bank wanted to know how its customers perceived the bank as a service provider, if it were more interested in what customers thought was superior about its savings account, if the bank thought some customer expectations were not being met or if what the bank really wanted to know was how it could change its service to better meet customer expectations. The first thing the research company did was to: A. Help Benford Bank define the problem and establish research objectives B. Determine with the bank's help who should be surveyed C. Use data mining to see if there were any connections between customers who used all three services and those who used only one of the services the bank offered D. Determine what research methodology it would use E. Decide how data analysis techniques

Help Benford Bank define the problem and establish research objectives

Because Virginia's brother died while he was cashing a check at the local bank, Virginia has always hated any type of banking. When it became necessary for her to go to the bank to empty her brother's safe deposit box, she complained the whole time about the inept service, the too-cold air conditioning and the poor parking. Virginia's customer satisfaction was adversely influenced by: A. Poor service quality B. Her perception of service quality C. Her emotional state D. Her attributions for service success E. Her perception of equity

Her emotional state

Gwen's first trip to an amusement park was as a chaperone for a class of first grade students who were allowed to fill up on sugar on the bus trip to the park. By the end of the day, Gwen was very frustrated and very tired. Later when she revisited the amusement park, Gwen could not enjoy the experience because she kept remembering how miserable she had been acting as a chaperone. Gwen's satisfaction with amusement parks was adversely influenced by: A. Poor service quality B. Her perception of service quality C. Her emotional state D. Her attributions for service

Her emotional state

Based on her experience as a waitress, Belle believes that a server in a restaurant should keep the customers' drink glasses full. When she goes to a restaurant where she has to ask to have her drink glass refilled, she automatically assumes that the restaurant has bad service. What is the concept that describes her attitude about the proper conduct for the servers?

Her personal service philosophy

A tax accountant may provide a different service experience to two different customers on the same day depending on their individual needs and personalities and on whether she is meeting with them when she is fresh in the morning or tired at the end of the day. This is an example of service _____________.

Heterogeneity

Parents everywhere are very busy and often cannot spend time with their children. In the Netherlands, children who want a bedtime story can call the telephone service and request to listen to one of twenty prerecorded fairy tales. The phone company charges $7 per story. Because of the prerecording of the stories, this bedtime service reduces the problems typically associated with the _____ characteristic of services

Heterogeneity

The characteristic of a service that refers to differences in employees' performances is:

Heterogeneity

The first time Alexis went to take golf lessons, she had a golf pro who was very patient with her and who was able to pinpoint what she was doing wrong without making her feel uncoordinated. Her second golf lesson was not nearly as helpful. The golf pro who gave the lesson wanted Alexis to watch what he was doing and imitate his swing. He was unable to verbalize his instructions. Alexis's experience with the two golf instructors illustrates the _____ of service.

Heterogeneity

The first time Barry brought his car to Auto Lube to have the oil changed he was very satisfied with the service. The service manager consulted him several times while his car was being serviced, asked him if there were any problems with the car, recommended when additional services should be performed and answered questions directly and politely. However, when Barry went back to Auto Lube after three months to have his oil changed again, he was not satisfied with the service. The manager spoke to him only when he arrived and when he paid his bill. In addition, the manager was impatient and unfriendly during the interaction. Barry's experience at Auto Lube illustrates the _____ of services.

Heterogeneity

Which characteristic of services best explains the existence of zones of tolerance?

Heterogeneity

If customers believe they have multiple service providers to choose from for a particular service, or if they can provide the service for themselves, their levels of adequate service are _________ those of customers who believe it is not possible to get better service elsewhere.

Higher than

Jack and Luke used the same mechanic to fix their cars. Both were unhappy with recent repairs. Luke who complained because his car was improperly repaired will have a ______ level of adequate service and a _____ zone of tolerance than Jack who did not complain about how poorly his car was running after the mechanic put in new spark plugs and did other maintenance.

Higher;narrower

Raul took his dog Buffy to dog training school to stop Buffy from barking. As soon as the dog returned home, she started her same pattern of barking. Raul was highly critical of the trainers for not teaching Buffy not to bark even though he had not continued the reinforcement technique he was supposed to use to encourage Buffy's good behavior. Raul customer satisfaction was adversely affected by: A. Poor service quality B. His perception of service quality C. His emotional state D. His attribution for service failure E. His perception of equity

His attribution for service failure

Drew had his house professionally sprayed for cockroaches last week. Yesterday he found a roach in his kitchen sink. He has requested the company that did the initial spraying to return to his house and spray again. Briefly describe Drew's zone of tolerance and his expectations for this second spraying.

His zone of tolerance will be narrower and his expectations will be higher.

The highest customer expectations are referred to as _____ expectations.

Ideal

A company that uses a four-tier scheme to segment is customers by profitability: A. Is using usage segmentation B. Identifies customers who need different sorts of attention C. Can increase profitability by increasing sales to lower-level customers D. Cannot use relationship marketing effectively E. Is accurately described by all of the above

Identifies customers who need different sorts of attention

Which of the following statements about service encounters is true? A. When a customer has multiple service encounters with a firm, the only important encounter in terms of the customer's perception is the first one B. If a customer is interacting with a firm for the first time, that initial encounter will create a first impression of the organization C. All encounters are equally important in building customer relationships D. A customer will remember only negative service encounters and will forget any and all positive ones E. All services have on average about the same number of service encounters

If a customer is interacting with a . firm for the first time, that initial encounter will create a first impression of the organization.

Which of the following statements about predicted service is true?

If the consumer predicts good service, the level of adequate service is likely to be higher than if he or she predicted poor service.

April wants to get her ears pierced. In the community in which she lives, she can get them pierced at a jewelry store in a strip mall. She can get them pierced at the local tattoo parlor or have them pierced by a friend's mother who happens to be a nurse. Avril's mother has threatened her with dire punishment if she has them pierced and then gets an infection because the person who pierces them was inept or unsanitary. Avril chose the nurse because of a(n) _____, which makes her believe it is the method her mother will most approve of.

Implicit service promise

When a customer chooses between a restaurant in a pricy suburb of Atlanta and a restaurant in a small farming community 45 miles away, there is a(n) _____ made by the locations that the customer will be more likely to find exotic cuisine and better trained servers at the downtown Atlanta restaurant.

Implicit service promise

Zoë was looking for a kennel to board her cocker spaniel for two weeks while she goes on vacation. There are two kennels close to her home. One charges $50 per week and the other charges $125 per week. Zoë chose the higher priced service because her dog is like a member of the family and she wanted it to have the best possible care while she was away. Zoë's service expectation level was determined by a(n):

Implicit service promise

One of the most useful forms of analysis in marketing research is the _____, which combines information about customer perceptions and importance ratings. A. Zone of tolerance chart B. Hierarchical needs matrix C. Importance/performance matrix D. Perception/expectation hierarchy E. Quality/satisfaction chart

Importance/ performance matrix

Service companies can close provider gap 2 by doing all of the following EXCEPT:

Improving communication between the marketing and operations departments

Service companies can close provider gap 4 by:

Improving communications between sales and operations departments

Which of the following factors leads to provider gap 2?

Inappropriate physical evidence and servicescape

On his way to work today, Terry saw a billboard for a physician's group that specialized in vascular surgery. In his local newspaper there was a full-page ad for a medical clinic that performed similar surgery. Then in his mail, he got a brochure from yet another medical clinic asking him if he wanted to get rid of ugly varicose veins. Which trend that influenced the development of services marketing concepts and strategies is illustrated here?

Increased competition in professional services

As the number of perceived service alternatives increases, the level of adequate service _____ and the zone of tolerance _____.

Increases; narrows

Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining?

Increasing use of technology is perceived by many customers as less service because there is no human interaction.

The primary goal of businesses that are in the first stage of their relationship with a customer is to: A. Create financial bonds B. Develop a long-lasting relational time horizon C. Qualify the prospect as a customer D. Initiate communications in order to attract them E. Engage in problem solving sales

Initiate communication in order to attract them

In India weddings are timed to occur when Venus is in the ascendant and Jupiter is strong. This day is deemed lucky. In 2005, almost 15, 000 couples in New Delhi had their wedding on December 25, the day astrologers announced would be the best day for a wedding. The service provided by the astrologers is an excellent illustration of the _____ of services.

Intangibility

On a recent visit to The Home Depot store, a sales associate greeted Madison when she entered the store, helped her locate the items she needed to repair her gutters and suggested how she could prevent gutter problems in the future. The assistance provided by the sales associate illustrates the ______ of services.

Intangibility

The characteristic of a service that means that it cannot be seen, felt, tasted or touched is:

Intangibility

The most distinguishing characteristic of services is:

Intangibility

_____ is a key determinant of whether an offering should be classified as a product or a service.

Intangibility

_____ quality refers to how a service is delivered to the customer. A. Output B. Interaction C. Experiential D. Technical outcome E. Interactive

Interaction

The marketing that goes on between an insurance agent and a current customer that is buying car insurance for a new teenage driver is an example of _____ marketing

Interactive

List the two types of future expectations research.

Lead user research and features research

Karen owns a cottage on Martha's Vineyard, a popular island destination for tourists from about April to October. When Karen visits the island in March to dine at her favorite pizza restaurant, she expects great service because the tourists are not there. Because she predicts she will receive great service, her _____ than it is during the tourist season.

Level of adequate service will be higher.

Boston Symphony Orchestra realized the classic music market was generally becoming older and needed to learn how to appeal to younger concert-goers. It hired a research agency to identify the positive and negative attributes of going to concerts. One type of research conducted by the agency was to interview former symphony season ticket holders who were not longer attending the concerts. In other words, the agency used: A. Complaint solicitation B. Critical incidents studies C. Relationship survey D. Trailer calls E. Lost customer research

Lost customer research

Even thought she was not moving, Katherine dropped her membership at a local church. She received a call from one of the church's representatives wanting to know why she had quit. She was asked to describe the moment in which she decided she no longer wanted to be a member of the church. What type of research is being conducted in this example?

Lost customer research

One benefit of _____ is that it identifies failure points and common problems in the service and can help establish an early-warning system for future defectors. A. Failure ethnography B. A survey of buyers' intentions C. Focus groups D. Lost customer research E. Future expectations research

Lost customer research

Extron Electronics makes coaxial cables for connecting computers to all types of peripheral devices like printers, modems and fax machines. For the benefit of its customers, Extron provides a laminated card with pictures of all the possible cable connections that a customer could need. With this card, a customer can order from one to any number of connectors with as many feet of cable as is needed. Orders can be placed using a toll-free number, a fax number or an e-mail address. Company reps are also available 24-hours a day in case the customer is not sure which drawing on the card matches his or her needs. Orders are shipped within 48-hours of receipt. If a customer is not completely satisfied with his or her order, Extron has a 100 percent satisfaction guaranteed return policy. Which of the following trends that has influenced the development of services marketing concepts and strategies as illustrated by Extron's focus on customer service?

Manufacturing firms are placing increased emphasis on providing services

One significant difference between the U.S. and Japanese culture is the love and respect the Japanese give their elders. A service provider who is trying to cater to the needs of the elderly might talk to some Japanese-Americans to gather some ideas on how to improve service quality. The cultural difference should make the service provider view providing service to the elderly from a different perspective. This sort of service research is called: A. Multicultural surveys B. Market-oriented ethnography C. Process checkpoint evaluations D. Requirements research E. Diversity studies

Market oriented ethnography

The University of Leeds in the U.K. released findings of its study of television viewing behaviors. Seventeen families had permission for cameras with sound to be placed in the main living areas of their homes for two three-week periods over two years to watch them watch television. The University of Leeds used _____ to determine that people who have specifically chosen to watch a program are more likely to remain present for the commercial breaks within it. A. Multicultural surveys B. Market-oriented ethnography C. Process checkpoint evaluations D. Requirements research E. Diversity studies

Market-oriented ethnography

Which of the following statements about services is true?

Marketing and managing services presents issues and challenges not face in manufacturing and packaged good companies.

Customer retention strategies based on customization bonds: A. Do not exist in business-to-business marketing B. Create tying contracts, refusals to deal, exclusive dealing and areas of gray marketing C. Are not concerned with the pricing element of the marketing mix D. May include the customer intimacy approach E. Support transactional marketing as well as relationship marketing

May include the customer intimacy approach

Denise said all she expected from the day care at the gym she belonged to was to get her children back at the end of an hour and learn the police had not been called because of something they did. She uses this particular gym because the day care will let her unruly children stay even though it provides only the nominal supervision. Denise has _____ expectations about the day care.

Minimum tolerable

Customers' tolerance zones vary for different service attributes or dimensions. The_______________ the factor, the __________ the zone of tolerance is likely to be.

More important; narrower

Sunoco is readying a chain-wide set of marketing initiatives designed to improve its image with women drivers and win more return business to its service station outlets throughout Ontario. It refurbished all of its restrooms and tried to hire friendly personalities and real customer service skills instead of "just who was available". It hired an outside research organization to send people to Sunoco service stations twice monthly to grade staff on their customer interaction skills. What research method did Sunoco use to make sure that each station was implementing the new service strategy? A. Market-oriented ethnography B. Trailer calls C. Mystery shoppers D. Requirements research E. Customer panels

Mystery shoppers

The Limited recognizes sales associates who provide excellent customer service by rewarding them with a "Hero Award," which is displayed in the store where the sales associate is employed. To measure a sales associate's service performance, which type of research should The Limited use? A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Mystery shopping E. Lost customer research

Mystery shopping

Which of the following types of research is unique to services? A. Trailer calls B. Market-oriented ethnography C. Mystery shopping D. Database marketing research E. Critical incident studies

Mystery shopping

As a service dimension increases in importance, a customer's zone of tolerance _____ and his or her desired and adequate service levels _____.

Narrows; increase

The weekend cruise cost Jason Riggs $800 dollars. Before leaving on the cruise, Riggs told his neighbor, "With the money this trip is costing me, the food better be good and plentiful". What kind of expectations did Roux have?

Normative

United Jersey Bank offers customers, who have a combined balance of $3000 or more in a United Jersey Checking Account and Preferred Money Market Account, a service called United Jersey Preferred Banking. This service is designed to make banking more convenient and profitable for customers. United Jersey Preferred Banking eliminates monthly maintenance fees, provides unlimited free transactions at ATMs, preferred rates on personal loans, higher interest rates on savings with higher balances and a consolidated monthly statement. United Jersey Bank does not offer United Jersey Preferred banking to customers with a combined balance of less than $3000 in a United Jersey Checking Account and Preferred Money Market Account since these customers are:

Not profitable in the long run

The University of Central Florida's Incentive/Efficiency Program encourages employees to submit tangible ideas or suggestions that will result in savings or generate additional revenue for the University of Central Florida. The person who suggests an adopted proposal receives a cash reward equal to 10 percent of the first year's net savings or generated revenues. The University of Central Florida's Incentive/Efficiency Program is designed to achieve which of the following research objectives? A. Gain first-hand knowledge about customers B. Improve internal service quality C. Gain first-hand knowledge of employees D. Obtain ideas for service improvement E. Gain first-hand knowledge about competitors

Obtain ideas for service improvement

Which of the following factors is NOT a factor leading to provider gap 1?

Over-promising

Which of the following is NOT an example of a service business?

Paper Mill

The key to success in the _____ stage of the customer relationship is the firm's ability to use customer knowledge and information systems to deliver highly personalized and customized offerings. A. Friendship B. Ally C. Colleague D. Comrade E. Partnership

Partnership

Velma was preparing to take her first airplane trip in more than 20 years. One of the primary reasons why she has not flown is because she is over six feet tall and the closeness of the seats made her extremely uncomfortable. Just prior to making plane reservations, she saw an article in a travel magazine congratulating United and American Airlines for increasing the room between passenger seats. She did not have time to read the whole article—just the first paragraph. She made her reservations on United Airlines with the expectation that she would not have to feel like she was "shoe horned" into her seat. When she boarded the plane, she was struck with how close the seats appeared. It wasn't long before she learned that United had only increased the room for the first six rows and American had made sure that every seat had extra room. Velma's service expectation levels were shaped by:

Past experience and explicit service promises

In addition to the elements of the traditional marketing mix, the expanded mix for services includes:

People, physical evidence and process

Instead of cooking dinner themselves, Jenna and her roommate Sheryl decided to order pizza and have it delivered to their apartment. Although Jenna and Sheryl usually order pizza from Pizza Hut, they had recently received coupons in the mail from two other neighborhood pizza restaurants, JoJi's Gourmet Pizza and Angelo's Pizzeria, for discounts on the purchase of two medium pizzas. JoJi's Gourmet Pizza and Angelo's Pizzeria are providing the roommates with:

Perceived service alternatives

List the three factors that influence adequate service.

Perceived service alternatives, situational factors, and predicted service

An attorney who charges a client for a missed appointment is taking into account the _____ characteristic of services.

Perishability

Bob Wilson owns and operates Flashdance Skating Rink. Last Monday afternoon, he had rented the rink out for a birthday party that was cancelled at the last minute due to a flu epidemic that had sickened three-fourths of the children who were invited. While Wilson kept the deposit, he did not get the skate rental fees or the snack food money he had anticipated from the rental. Wilson lost money as a result of the _____ characteristic of services.

Perishability

In many cultures, weddings are timed to occur on lucky days. In 2011, wedding planners from Las Vegas, Nevada to Mumbai, India knew long before the auspicious date of November 11th (11/11/11) that this would be one of their busiest days of the year, if not the century. Because other dates would just not be as lucky for the blushing brides and grooms, and simply would not suffice, the wedding planners had to prepare all year for more weddings on this one date than on any other day throughout the year. This example illustrates the _____ characteristic of services.

Perishability

_____ refers to the fact that services cannot be saved, stored, resold or returned.

Perishability

States or conditions essential to the physical or psychological well-being of a customer that are pivotal factors that shape what customers desire in a service are known as __________.

Personal needs

Steve, a baseball fan who regularly goes to games right after work, is thirsty and hungry by the time he gets to the ballpark. He hopes and desires that the food and drink vendors will visit his section of the stands frequently. Another fan, Bart, who regularly has dinner elsewhere before he attends games, has a lower level of desired service from the food and drink vendors at the ballpark. In this example, Steve and Bart have different ____________ that shape their desired level of service.

Personal needs

List the three major determinants of desired service levels.

Personal needs, and personal service philosophy, and derived service expectations

An important influence in desired service expectations is ____________, the customer's underlying generic attitude about the meaning of service and the proper conduct of service providers.

Personal service philosophy

As a teenager, Louis spent his summers as a lifeguard. When he and his children went to swim at a public swimming pool, he noticed its lifeguards seemed to spend all of their time flirting with each other and not watching for swimmers in distress as Louis had been taught to do. Because of his __________, Louis had his children pack up their belongings and leave the pool.

Personal service philosophy

Lillie worked as a caterer when she was in college. She was highly critical of the caterer and its staff that her parents selected for their 50th anniversary party. Lillie's attitude about how a caterer should act reflects her:

Personal service philosophy

Historically, the Japanese have had poor dental care. As part of their beauty regimen, the Japanese do have a habit of lightening and whitening their skin. Teethart has developed "tooth manicure" salons, which allow Japanese to match their teeth coloration to their skin. Each treatment takes place in a small booth, which contains an ergonomically-designed chair, muted lights and New Age-style music. The walls are painted calming shade of blues and greens. Teethart uses the _____ element of its service to reduce stress associated with dental procedures. A. Product

Physical Evidence

Ruth recently visited a day care center that is convenient to her work. Ruth is thinking of letting the day care workers care for her infant son while she is at work. The first thing Ruth noticed when she walked in the door of the facility was the smell of urine. There was a dead plant in the window. Toys were strewn about the floor and Ruth almost tripped over a tricycle. In this example, Ruth experienced negative aspects of the _____ element of the day care center's services marketing mix.

Physical Evidence

When Alicia and Jordan dined at Formia Ristorante, a contemporary Italian restaurant in New Jersey, they both enjoyed Formia's coy, smart and embracing atmosphere. Formia creates this atmosphere with a single large dining room that measures 20 by 60 feet and contains 14 roomy tables. Ceiling fans slowly swirl as candlelight dances across the tables that are attentively cared for by servers. Vertical pink and white florid patterns emerge from old wainscoting. Finally, Formia's two-page menu offers guests a range of pasta, chicken, veal and seafood entrees, in addition to nightly specials that are handwritten and presented on large index cards. Alicia and Jordan experienced the _____ element of Formia Ristorante's services marketing mix.

Physical evidence

Which of the following would lead to dissatisfying SSTs? A. Stakeholder-driven failure B. Poor Internet linkage C. Management failure D. Poor design E. Innovation failure

Poor Design

Trailer calls are also called: A. Prospecting calls B. Post transaction surveys C. Buyers' intentions surveys D. Lost customer calls E. Follow-up surveys

Post transaction surveys

One factor that influences adequate service is _____, the level of service that customers believe they are likely to get.

Predicted service

What kind of service was Miriam talking about when she said, "We should have no trouble getting good seats on the bus because few people ride at 10:30 a.m. on a weekday"?

Predicted service

________ is the level of service that customers believe they are likely to get during an impending transaction or exchange. A. Adequate service

Predicted service

Historically, the Japanese have had poor dental care. As part of their beauty regimen, the Japanese do have a habit of lightening and whitening their skin. Teethart has developed "tooth manicure" salons, which allow Japanese to match their teeth coloration to their skin. A personalized whitening mouthpiece is developed for each patient. The mouthpiece is placed around the teeth and a cleaning solution is added. The patient listens to soothing music and sits in a comfortable chair while his or her teeth are whitened. Monthly treatments in this spa-like environment reflect the _____ element of Teethart's service mix.

Process

Yesterday, Mike went to the dentist for his 6-month check-up. Two weeks before he went to the dentist, he called the office to make an appointment. The day before his check-up, the office's receptionist called him to confirm his appointment. When Mike arrived at the office, he checked in with the receptionist and then waited in the waiting room for 15 minutes, reading a magazine, before being greeted by the dental hygienist, who escorted him to an examination room. The dentist entered the room, greeted Mike, examined Mike's teeth, took a set of x-rays and asked the dental hygienist to clean Mike's teeth. When his teeth were cleaned, the hygienist told Mike he should return in 6 months for another check-up. Mike experienced the _____ element of the dental office's services marketing mix.

Process

The Canfields want to landscape their 15-acre yard. The couple plans an herb garden in back that will lead to an English cottage garden. In the west side yard, they are planning on a Japanese garden and a rose garden will be located in the east side yard. They have hired a landscaper to draw the design and to do the actual planning. The Canfields want input on the landscaping. They have asked the landscaper to set up several points where they can give their inputs, correct anything they do not like and make changes before the plan is finalized. Most landscapers would be bothered with this seeming interference, but the landscaper the Canfields chose has used this method for years as a way to measure his company's customer service performance. The landscaper is using a method of gathering customer information most similar to which of the following methods? A. Trailer calls B. Market-oriented ethnography C. Process checkpoint evaluations D. Requirements research E. Critical incidents studies

Process checkpoint evaluations

Which of the following is NOT a form of qualitative research? A. Process checkpoint evaluations B. Mystery shopping C. Trailer calls D. Requirements research E. Relationship surveys

Process checkpoint evaluations

Which of the following is NOT an element of the traditional marketing mix?

Production

Rather than treating all of its customers the same, FedEx categorized its customers internally as "the good, the bad, and the ugly" based on their ___________. A. Loyalty B. Profitability C. Attitude D. Volume E. User characteristics

Profitability

To close the customer gap, the gaps model of service quality suggests that the _______ gaps need to be closed.

Provider

In acquaintance relationships, firms generally focus on: A. Creating service offering awareness B. Inducing product trial and adoption C. Gaining specific knowledge of customer's needs D. Providing value comparable to the competition E. Creating clear and easily comprehended communications

Providing value comparable to the competition

The health industry in the U.S. is an $840 trillion business. Adam.com is trying to cash in on some of that money by providing an Internet service that will answer health-related questions for customers. After a year in operation, Adam.com did an informal survey of its customers. It used open-ended questions to determine what people like and dislike about its service. Adam.com was conducting _____ research. A. Qualitative B. Functional C. Inferential D. Secondary E. Quantitative

Qualitative

What kind of research is being used when an insurance company representative sits down with people who have lost their homes to tornadoes and asks, "What could have been done to better handle your needs immediately after the storm"?

Qualitative

_____ research is conducted to clarify problem definition and prepare for more formal empirical research. A. Functional B. Quantitative C. Primary D. Secondary E. Qualitative

Qualitative

Benford Bank hired marketing researchers when it noticed many people who had savings accounts with the bank did not have checking accounts and credit cards with it. The researchers would conduct _____ research if they wanted to test the hypothesis that customers do not like the checking account and credit card services of Benford Bank. A. Functional B. Exploratory C. Quantitative D. Secondary E. Qualitative

Quantitative

Imagine you are a consultant and you have been asked to give a seminar to bank employees on how they can use the five dimensions of service to improve customers' perceptions about the quality of the bank's service. What ideas would you give them to better customers' perception of each of the bank's service dimensions?

RELIABILITY: The customer's new checks were ready when the bank said they would be ready and they are correct. The loan papers were ready to be signed when they were supposed to be ready. Appointments with bank personnel are kept on schedule. The bank provides needed information about its services when requested. RESPONSIVENESS: The waiting lines are either short or non-existent. Phone calls are returned as soon as possible. Requests are answered on a personalized basis rather than in a bureaucratic manner. ASSURANCE: The staff is knowledgeable and well-trained and where possible have credentials to indicate their training. The bank has a reputation as a financially strong institution. The bank and its employees are seen as trustworthy. EMPATHY: The bank employees acknowledge customers by name and remember previous problems and preferences. The bank understands some people have special needs and tries to anticipate those customer needs. The bank employees practice good listening. TANGIBLES: The bank is decorated with furniture that is perceived as solid, long-lasting, traditional and not ostentatious and a good value. Awards or articles about the bank could be posted in the lobby or entry hall. Brochures and pamphlets are well-designed and user-friendly.

Last Thursday Dylan and Tori had dinner at Pig Pete's, a new restaurant they had a heard about from friends. When they received their order of buffalo wings, Dylan noticed the wings were cold and dried out instead of being hot and moist. Dylan complained to their waitress, who apologized, brought out a plate of freshly cooked buffalo wings and told Dylan and Tori that they would not be charged for the buffalo wings. The couple's experience at Pig Pete's is an example of which type of service encounter incident? A. Recovery B. Adaptability C. Spontaneity D. Credibility E. Coping

Recovery

Hertz Car Rental has a customer loyalty program called Gold Plus Rewards that rewards members with one point per dollar spent on qualifying rentals. Free weekend rentals can be earned for as few as 500 points. By having a customer loyalty program, Hertz is using __________ marketing.

Relationship

Telepizza S.A. Is a Spanish pizza restaurant chain that offers children membership in its magic club. The magic club gives its members small prizes, usually simple magic tricks, with each order their parents place. Telepizza has 65 percent of the Spanish market as a result of using _____ marketing.

Relationship

_____ marketing focuses on keeping and improving current customers, rather than concentrating on acquiring new customers. A. Transaction B. Expansion C. Relationship D. Strategic E. Benefit

Relationship

The Learning Academy provides tutoring for children who are having trouble mastering some skill in school-whether it is math, reading, studying or something else. It wants to monitor and determine the strengths and weaknesses of The Learning Academy's curriculum. Which of the following types of research should The Learning Academy use to realize this objective? A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Key client studies E. Trailer calls

Relationship surveys

Which of the following types of research is NOT done on a continuous basis? A. Complaint solicitation B. Relationship surveys C. Social media D. Customer panels E. Lost customer research

Relationship surveys

The _____ of a customer is a concept that looks at customers from the perspective of their lifetime revenue or profit contributions to a company. A. Relationship value B. Attractiveness index C. Profit performance quotient D. Calculated risk E. Loyalty factor

Relationship value

Southwest Airlines has consistently had one of the best on-time performance records in the airline industry. A critical factor in Southwest's success has been its use of second tier airports such as Midway in Chicago, Hobby in Houston, City in Detroit and Ontario in Los Angeles. These lower traffic airports allow Southwest to have a faster turnaround for its airplanes so they spend a greater percentage of their time in the air. Seventy percent of Southwest's flights have a turnaround time of 15 minutes. Southwest Airline's on-time performance reflects the _____ dimension of service quality. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

Reliability

_____ has consistently proven to be the most important determinant of service quality. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibility

Reliability

List the five dimensions U.S. customers use to determine service quality

Reliability, responsiveness, assurance, empathy, and tangibles.

A service encounter that occurs without any direct human contact is a(n) _____ encounter. A. Remote B. Technology-mediated C. Detached D. Public E. Impersonal

Remote

In ___________ encounters, the tangible evidence of the service and the quality of the technical processes and systems are the primary bases for judging quality. A. Technology-mediated B. Detached C. Public D. Collective E. Remote

Remote

What type of service encounter occurs when Raphael uses his computer to order and pay for concert tickets?

Remote encounter.

Boston Symphony Orchestra realized the classic music market was generally becoming older and needed to learn how to appeal to younger concert-goers. It hired a research agency to identify the positive and negative attributes of going to concerts. In other words, the research agency conducted a: A. Complaint solicitation B. Requirements research C. Relationship surveys D. Trailer call E. Process checkpoint evaluation

Requirements research

Which type of qualitative research has as its primary objective to identify customer requirements as input for quantitative research?

Requirements research

_____ involves identifying the benefits and the attributes that customers expect in a service. A. Complaint solicitation B. Requirements research C. A relationship survey D. A key client study E. A customer panel

Requirements research

Which of the following statements about complaint solicitation is true? A. Customer complaints provide an adequate source of information about customers' perceptions and expectations of services B. The technique of soliciting customer complaints is only used for services C. Research on customer complaints is one of the most difficult research techniques to use D. Research on customer complaints allows companies to improve failure points and to improve or correct the performance of contact personnel E. No major companies would depend on customer complaints as its only source of information on its customers' perceptions and expectations of its services

Research on customer complaints allows companies to improve failure points and to improve or correct the performance or contact personnel.

Betina had a group of checks that she needed to deposit and another that she needed to cash for a trip she was leaving on the next day. When she got to her bank on Saturday, she was very disappointed to see it was closed. There was one car in the parking lot and a man was walking toward it. She pulled into a place to decide what to do. The man she had seen walked up to her car and asked if he could help. When she explained her problem, the man introduced himself as the bank's vice president and offered to cash her checks with the money he had in his wallet. Betina has since learned that this kind of service is commonplace at her bank. She knows the bank focuses on the _____ dimension of service quality. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

Responsiveness

The _____ dimension of service quality refers to the willingness to help customers and provide prompt service. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

Responsiveness

A catalog retailer that sells boxed fruit would like its customers to think of the operation as a gift provider. Its operators are trained to help customers pick out just the right customized gift for family members and friends. Which two dimensions of service quality are most evident in this example?

Responsiveness and empathy

When consumers have problems with a Web site, they use _____ dimensions to evaluate e-service quality. A. Tangibility, efficiency and fulfillment B. Responsiveness, compensation and contact C. Empathy, efficiency and expectations D. Reliability, privacy and assurance E. Efficiency, fulfillment, reliability and privacy

Responsiveness, compensation, and contact

To be effective, complaint solicitations requires: A. The same complaint be mentioned at least ten times before any action is taken B. An individual complainer to have no more than one complaint C. The company to treat the complaint as a snapshot of its service D. Valid and reliable service questions E. Rigorous recording of numbers and types of complaints through many channels

Rigorous recording of numbers and types of complaints through many channels

Which of the following statements about relationship surveys is true? A. Relationship surveys are not statistically valid even though they are very useful to service providers B. Relationship surveys should be conducted weekly C. SERVQUAL is a type of relationship survey D. With relationship surveys, the same respondents should be used each time the survey is administered E. To be reliable and valid, the relationship survey should be administered to all of the service provider's customers

SERVQUAL is a type of relationship survey

PSE&G, a utility company located in New Jersey is conducting a service marketing research study to assess its service performance. It will measure the gaps between customer expectations and perceptions along the five dimensions of service quality. Which of the following types of research should PSE&G use? A. Critical incident studies B. Requirements research C. SERVQUAL surveys D. Trailer calls E. Customer panels

SERVQUAL surveys

The sources of customer expectations are market-controlled factors such as:

Sales promises

Which of the following statements about customer satisfaction is true? A. Satisfaction cannot be defined quantitatively B. Customer satisfaction can only be analyzed if it is considered to be a static occurrence C. Customer satisfaction can only be determined through anecdotal evidence D. Satisfaction may be associated with feelings of ambivalence when there is a mix of positive and negative experiences E. Customer satisfaction is not influenced by price

Satisfaction may be associated with feelings of ambivalence when there is a mix of positive and negative experiences.

Because the customer essentially provides his/her own service, Internet-based services, automated phone services and services delivered via DVD or video technology are often referred to as _______________. A. Virtual service technologies B. Superficial services C. Subtle deficiencies D. Service amplification tendencies E. Self-service technologies

Self service technologies

The maintenance contract offered by Sears on its Kennemore refrigerators, dishwashers, and microwaves is an example of an ________

Service

When customers have been surprised by a service outcome that is much better or worse than expected, they tend to look for reasons and their assessments of the reasons can influence their satisfaction. These perceived causes of service success or failure are known as: A. Blame states B. Fairness assessments C. Perceived disadvantages D. Service advantages E. Service attributions

Service attributions

Which of the following is a marketing implication that results from the heterogeneity of services?

Service delivery and customer satisfaction depend on employee and customer actions.

On a recent trip to Disneyland, Rose had her picture taken with Minnie Mouse. After the picture was taken, Minnie Mouse signed Rose's autograph book. Rose's interaction with Minnie Mouse was actually a(n) _______ with Disneyland. A. Advertising event B. Socialization C. Service encounter D. Service arrangement E. Acculturation

Service encounter

Key Energy was a company that provided quality oilfield construction, drilling and other services. The company's top management felt stakeholders did not have a clear image of the company and were considering changing the name to clarify the organization's position in the market. The company conducted an hour long interview with four of its largest customers. Only 25 questions were asked and much probing was done to find out exactly what the participants meant. This is an example of a: A. Research requirement survey B. Ethnographic survey C. Critical incident study D. Trailer call E. Service expectation meeting and review

Service expectation meeting and review

In the simplest terms, _________ are deeds processes and performances.

Services

When they go away on vacation, some dog owners choose to leave their dogs in posh pet resorts that offer a variety of activities for the dogs, such as swimming pool frolics, nature walks and hayrides. The dog owners pay around $17 per night for basic boarding at the pet resorts and up to an additional $20 for the other activities, which would be collectively classified as:

Services

Which of the following statements describes a marketing implication that results from the intangibility of services?

Services cannot be inventoried

The romantic mountain getaway seemed like the perfect Valentine's Day gift. The pictures in the brochure showed couples enjoying the amenities in their cabins. When the couple arrived, they found a cold, uninviting cabin with a shortage of creature comforts--no down-filled blankets, no wood for the fireplace, paper plates and cups and a broken chair. In this service example, the _____ was not what the customers expected.

Servicescape

New Bedford College has a two-year masters degree program designed for special education teachers. Thirty-five students enter the program each fall. The education department requires that the 35 students take the same classes. Classes are made available in sequence. If Beth wanted to take only one special education class to get her a teaching certificate in learning disabilities (LD), she would be unable to because she would not be able to participate in any carry-over projects from previous classes (This is a common teaching tool for the New Bedford education department faculty.). New Bedford College will avoid setting up a relationship with Beth because:

She is in the wrong segment

The factors that influence adequate service expectations are _____ in nature and fluctuate _____ than the factors that influenced desired service expectations.

Short term; more

Because of the _____ of services, service producers find themselves playing a role as part of the product itself and an essential ingredient in the service experience for the consumer.

Simultaneous production and consumption

Due to the _____ characteristic of services, customers will frequently interact with each other during the service production process and may affect each other's experiences.

Simultaneous production and consumption

For their wedding anniversary, Beth and Rick wanted to go skydiving. They enrolled in a skydiving class at the local airport at a cost of $260. After a 30-minute training course in which everything that was going to happen to them was carefully explained, Beth and Rick were sent up in an airplane with two skydiving experts. Each was placed in a harness arrangement with one of the experts and did what is called a tandem dive. With a tandem dive, Beth and Rick get to enjoy the experience without having to worry about when to open the parachute. The skydiving expert does that for them. This tandem jump illustrates the _____ characteristic of services.

Simultaneous production and consumption

The Offshore Sailing School in Jersey City, New Jersey offers a basic sailing course, which takes place in three days over two weekends, for $495. Students enrolled in the course attend classroom sessions that cover the theory and technology of sailing and receive hands-on sailing instructions in the water that introduces them to all fundamental sailing skills. Student participation in the Offshore Sailing School's classroom sessions and hands-on sailing instructions illustrates the _____ characteristic of services.

Simultaneous production and consumption

Which of the following is NOT a source of desired service and predicted service?

Situational factors

Elmer Jennings is a government auditor and works for the Bracken and Leach firm. He is the one who checks to see that city and county governments have complied with accounting principles. As an auditor, Jennings sometimes will spend six weeks in one office while he checks its accounting records. The closeness of the relationship that Jennings builds with the government employees he works with was realized by Bracken and Leach when Jennings left the firm, went to work for another one and took his clients with him. This is an example of how _____ benefits can be both helpful and harmful. A. Confidence B. Reliability C. Social D. Transactional E. Economic

Social

Every Thursday afternoon for almost twenty years, Jasmine and Tanya have gotten a manicure at the same location. The manicure salon has changed ownership three times and has had two different names during that same period, but Jasmine and Tanya still find it a convenient place to meet and share news about friends and relatives. Jasmine and Tanya's relationship with the manicure salon exemplifies how a service provider uses _____ to support its customer retention strategy. A. Economic bonds B. Social bonds C. Customization bonds D. Structural bonds E. Security bonds

Social bonds

Miller & Sons Funeral Home has handled all of the funeral needs for the Atwater family since 1957. The family believes that Miller & Sons offers them good value for their dollar and the Miller sons and the Atwater boys played on the same high school football team. Miller & Sons Funeral Home is using _____ to implement its customer retention strategy. A. Economic bonds B. Social bonds C. Customization bonds D. Structural bonds E. Security bonds

Social bonds

In some long-term customer-firm relationships, a service provider may become part of a customer's __________ , such as when a hairdresser serves as a personal confidant, or a proprietor of a local retail store is known a central figure in the neighborhood network. A. Esteem benefits B. Self-actualization C. Social support system D. Utility transfer E. Assurance group

Social support system

The three themes that underlie customer evaluation of satisfying SSTs are: A. Solved an intensified need; did its job; context B. Solved an intensified need; better than the alternative; did its job C. Color correctness; content; context D. Variability; heterogeneity; solved an intensified need E. Better than the alternative; color correctness; content

Solved an intensified need; better than the alternative; did it's job

A hotel porter overhears a guest crying because she left a pair of newly purchased shoes at the counter of a retail store some blocks away. The porter volunteers to pick up and deliver the guest's new shoes in time for her to wear them to the banquet at 7 p.m. The porter is trying to make the service encounter memorable. This type of action is in response to what service theme?

Spontaneity

The last time Lia went shopping at Nordstrom's department store she had a very pleasant experience. When she entered Nordstrom's, she asked a sales associate named Sarah for assistance finding a pair of jeans, a pair of shorts, a skirt and matching tops. Sarah enthusiastically agreed to help and treated Lia like royalty throughout her two-hour shopping trip. Sarah stayed with Lia the entire time she was in Nordstrom's and showed her a number of different styles of jeans, shorts, skirts and tops. Sarah brought Lia additional items while she was in the fitting room and offered her advice on accessorizing her outfits. After the sale, Sarah thanked Lia for her purchases. Lia's experience at Nordstrom's is an example of which type of service encounter incident? A. Recovery B. Adaptability C. Spontaneity D. Believability E. Coping

Spontaneity

List the four stages in the evolution of customer relationships.

Stranger, acquaintances, friend and partner.

According to the text, the relationships between businesses and their customers have the ability to evolve. In the first step of this evolution process, customers are identified as: A. Acquaintances B. Prospects C. Strangers D. Friends E. Allies

Strangers

WedSafe is the name of a company that provides wedding insurance. For example, in the event that a wedding is called off, the couple can insure themselves against loss of their nonrefundable deposits. If WedSafe's primary marketing effort is to make engaged couples aware of its services, the company is in which stage of the customer relationship evolution? A. Acquaintances B. Leads C. Strangers D. Allies E. Friends

Strangers

_________ are created by providing services to the client that are designed right into the service delivery system. A. Financial bonds B. Customization bonds C. Individualization bonds D. Structural E. Social bonds

Structural

Aramark is a food service company that supplies meals to more than 200,000 hospital patients daily. To improve its service, it created a database that tracks patient preferences individually by hospitals, regionally and nationally. The accumulated database is used to provide better menus. Aramark's kitchen staff deliver the food and are referred to as hosts. All hosts have a minimum of 40 hours of training to teach them how to be courteous, efficient and quick. These trained hosts deliver customized meals from carts preloaded according to room number. According to patient surveys, Aramark has boosted patient satisfaction by almost 10 percent by providing customized meals. Aramark is using _____ in its customer retention strategy. A. Financial bonds B. Social bonds C. Customization bonds D. Structural bonds E. Heterogeneity

Structural bonds

Often, _____ are created by providing customized services to the client that are technology based and make the customer more productive. A. Financial bonds B. Social bonds C. Customization bonds D. Structural bonds E. Heterogeneity

Structural bonds

In many instances, customers develop loyalty to an organization in part because of costs involved in changing to and purchasing from a different firm. These costs are called: A. Financial inertia B. Opportunity costs C. Switching costs D. Fixed costs E. Retained costs

Switching costs

Molly and Tom are getting married. Last month they hired a caterer for the wedding reception. This month they attended a wedding for which their chosen caterer had provided food, dishes and flowers. Neither thought the food was good and Molly worried that the dishes looked cheap. However, they feel they cannot change caterers at this date due to the large deposit required by the catering company when it took the job. Molly and Tom do not want to pay: A. Extraneous expenses B. Opportunity costs C. Switching costs D. Fixed costs E. Retained costs

Switching costs

What are the two types of switching barriers that oftentimes prevent dissatisfied customers from switching providers?

Switching costs and customer inertia

The Walt Disney Company dress code requires male cast members with mustaches or beards to trim their facial hair to no longer than one-quarter of an inch and be well-groomed. Male cast members without mustaches and beards must be clean shaven every day. All cast members must keep their nametags visible at all times, have no visible tattoos and be professional in appearance. The Walt Disney Company's dress code reflects the _____ dimension of service quality. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

Tangibles

Which of the following is NOT a source of customer expectations?

Target Market

Phone encounters are a type of ___________ in which tone of voice, employee knowledge and effectiveness of handling customer issues are important criteria for judging quality. A. Remote encounter B. Technology-mediated encounter C. Detached conversation D. Public discourse E. Collective encounter

Technology-mediated encounter

What type of service encounter occurs when Sam uses inbound telemarketing to order greeting cards from the Current catalog?

Technology-mediated/ phone encounter

Two roommates both registered for an introduction to business class. At midterm, one roommate found his instructor so boring that he was thinking of changing his major to history. The other roommate had a charismatic teacher and looked forward to going to class. This heterogeneity of instruction demonstrates:

That customer service depends on employee actions

What organization is represented by the abbreviation ACSI?

The ACSI

Which of the following statements about the American Customer Satisfaction Index (ACSI) is true? A. The ACSI demonstrates to service providers that there is much room for improvement in customer satisfaction B. The ACSI was developed by the federal government as a way to include customer satisfaction measurements in census data C. In spite of the name, the ACSI also measures customer satisfaction levels for countries with which the U.S. has a greater than average level of trade D. The only country that is currently studying customer satisfaction and creating an index is the United States E. The ACSI tracks customer perceptions of the level of satisfaction provided by sole proprietorships as well as by large corporations

The ACSI demonstrates to service providers that there is much room for improvement in customer satisfaction.

When Allyn and Baylee received the catalog from the antique auction, they assumed the auction would be of the highest quality antiques because the 32-page catalog was filled with attractive color photos on slick high-quality paper and cost $2.50 to mail. Categorize this catalog as a source of Allyn's and Baylee's desired and predicted service expectations.

The catalog is an implicit service promise

According to the text, the relationship value of a customer is not influenced by: A. The average revenues generated per relevant time period over the lifetime B. Sales of additional products and services over time C. Referrals generated by the customer over time D. The length of the average customer "lifetime" E. The communication strategy

The communication strategy

At the partnership stage of the customer relationship, the firm is most concerned with: A. Creating a competitive advantage B. Customer satisfaction C. The enhancement of its relationship with the customer D. Creating service loyalty E. Customer retention

The enhancement of its relationship with the customer

Which of the following trends has directly influenced the development of services marketing concepts and strategies?

The fact that manufacturing firms are placing increased emphasis on providing services

Gina and Henry were having breakfast when they decided they wanted to have pizza and watch a movie that night. When she got home from work, Gina turned on her computer, logged on to the Netflix site, and chose the movie Moneyball to view via online video streaming. Next she logged on to her favorite pizza restaurant's Web site and ordered a large pepperoni pizza and a bottle of soda to be delivered at 6:45 p.m. Gina and Henry enjoyed their evening. Which trend that influenced the development of services marketing is illustrated here?

The growth in the use of technology based services

Without good mailing lists, businesses cannot engage in effective direct-marketing advertising. On average 20 percent of the U.S. population moves annually. Return Path is a company that provides changes of addresses to businesses. It takes a business's mailing list, compares it to address changes that it gathers daily in its database and makes any necessary corrections. Return Path is a part of which trend in the services marketing industry?

The growth in the use of technology based services

Heather Lui wants a lawn maintenance company that will pull all the dandelions and other weeds out of her lawn and that will keep her bushes shapely, but she'll settle for a company that will mow her lawn every ten days. According to the text what are the two expectations at the upper and lower boundaries.

The highest expectations are desired service which is the wished for level of performance. Adequate service is a blend of what the customer believes can be and should be.

Which of the following would result in a broadening of provider gap 1?

The marketing research done by the motel chain includes insufficient research about what its target market wants

What does the text state is another appropriate name for a service encounter?

The moment of truth.

How would a day care center operator benefit from the implementation of relationship marketing with the parents of three preschool children? A. The children would benefit from socialization skills B. The parents wouldn't have to go looking for a new facility to keep their children C. The parents would ask for a reduced monthly rate D. The parents would get to socialize with the other parents of children at their center E. The parents would spread the word about their happiness with the services provided by the day care center

The parents would spread the word about their happiness with the services provided by the day care center

Imagine a bereaved family at a funeral home discovering dirty restrooms, a disco ball in the chapel and loud heavy metal music on the sound system. You would be correct in saying: A. The physical environment quality led the family to think less of the overall service quality B. The technical outcome quality of the facility needed fine tuning C. The inappropriateness of the service quality was due to poor technical qualities D. Interaction qualities led to perceived inequities E. The overall service quality is not influenced by tangibles

The physical environment quality led the family to think less of the overall service quality

Which of the following statements describes a benefit of critical incident studies? A. The method provides abstract data B. The method provides data that is readily quantifiable C. The research method is especially useful when the service is new D. The research method is especially useful for services in the maturity stage of their product life cycle E. All of the above statements describe a benefit of critical incident studies

The research method is especially useful when the service is new

Which of the following in NOT an example of technical outcome quality? A. The taste of a meal at a restaurant B. An airplane arriving on time at an airport C. A pest control company eradicating termites in a townhouse D. The sales associate greeting a customer in a specialty clothing store E. A utility company connecting electricity for a customer's new home

The sales associate greeting a customer in a specialty clothing store

Which of the following is an intangible component of a car repair shop?

The training the mechanic has recieved

Henri, Brad and Wesley are all studying to be dog groomers at a local Petsmart training academy. Henri and Brad believe they received inadequate training because they could not get a job when the course concluded. Wesley thinks the academy was a great experience and really enjoys grooming the pets at Pet Heaven Kennels. In this example, satisfaction levels were influenced by:

Their perception of equity

The radio ads for the Kia automobile dealership promises that the prices on its cars is lowest in the Memphis area. Categorize these ads as a source of customers' desired and predicted service expectations.

They are explicit service promises.

What is the primary goal of relationship marketing?

To build and maintain a base of committed customers who are profitable for the organization.

When Tom and Ruth checked out of the Marriott Hilton Head Resort, they were each given a brief postage paid survey to complete and return through the mail. The survey asked 15 questions about their stay at the Marriott Resort. It covered such attributes as overall satisfaction, check-in speed/efficiency, cleanliness, decor and comfort of their room, friendliness and efficiency of the staff, quality of dining experience, quality of merchandise/gift shop, intention to return and willingness to recommend to friends. Which of the following types of research did Marriott conduct? A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Trailer calls E. Lost customer research

Trailer Calls

What is another name for post transaction surveys?

Trailer calls

Which of the following is NOT a form of qualitative research? A. Complaint solicitation B. Critical incident studies C. Requirements research D. Trailer calls E. Customer panels

Trailer calls

Companies that emphasize acquiring new customers rather than retaining current customers are using _____ marketing.

Transactional

According to the concept of derived services, the value derived from physical goods is really the service provided by the good, not the good itself.

True

All businesses and organizations that operate on the Internet are essentially providing a service.

True

Because the production and consumption of services is simultaneous, the mass production of services is difficult.

True

Bundling and cross-selling are ways to implement a Level 1 retention strategy.

True

Customers assess service performance on the basis of what they desire and what they deem acceptable.

True

Customers typically notice service when it falls outside the zone of tolerance.

True

Derived service expectations occur when customer expectations are driven by another person or a group of people.

True

Despite the importance of services and the bottom-line profit potential for services, consumers perceive that overall the quality of service they are receiving is declining.

True

For the organization, relationship marketing increases customer purchases, lowers costs and creates free word-of-mouth advertising.

True

Improved upward communication can be used to narrow provider gap 1.

True

Relationship marketing essentially represents a paradigm shift within marketing-away from an acquisitions/transaction focus toward a retention/relationship focus.

True

Salt, bricks and paper clips are three examples of tangible dominant products.

True

Social bonds alone may not tie the customer permanently to the firm, but they are much more difficult to imitate than financial incentives.

True

The ability to segment customers narrowly based on profitability implications may raise questions of privacy for customers.

True

The development of services marketing concepts has been strongly influenced by professional services like doctors and attorneys.

True

The primary goal of relationship marketing is to build and maintain a base of profitable and committed customers through attraction, retention and customer enhance

True

With relationship marketing, customers can develop social relationships with their service providers, which makes it less likely that they will switch to a competitor.

True

A wildcat strike by garbage collectors in a large metropolitan city during prime tourist season will most likely cause tourists to cut short their visit and have a poor image of the city. The wildcat garbage strike is an example of a(n):

Uncontrollable situational factor

Kelly dined in a family-style restaurant in Mobile, Alabama, shortly after a hurricane had brushed the coastal area. The server apologized because there were no iced drinks available. The water supply had been contaminated by the storm's high tides. The water system was fine now, but after repairing other minor damages, the workers had not yet had a chance to clean the ice machine. Kelly, a long-time resident of Mobile, understood that _____ meant she would need to modify her service expectations.

Uncontrollable situational factor

Because they are viewed as _____________ by customers, natural disasters such as tornadoes or hurricanes may lower service expectations for services such as insurance, telephone, and the Internet.

Uncontrollable situational factors

During the days following Hurricane Katrina, telephone and Internet service was poor across a wide area because so many people were trying to get in touch with friends and relatives. Customers of these services soon realized that they should not expect the level of service they were accustomed to prior to the hurricane. These customers were quite forgiving during this time because they recognized that service performance was being affected by:

Uncontrollable situational factors

John's flight on United Airlines from Chicago to San Francisco departed two hours late because of a snowstorm in Chicago. The snowstorm that delayed John's flight is a(n):

Uncontrollable situational factors

Key Energy Co. provides quality oilfield construction, drilling and other services. The company's top management feels that stakeholders do not have a clear image of the company and are considering changing the name to clarify the organization's position in the market. Senior management is interviewing the company's salespeople to learn how they feel about selling Key Energy's services. As part of examining the corporate image, the company is using: A. Upward communication B. Market-oriented ethnography C. Lead user research D. SERVQUAL surveys E. Relationship surveys

Upward communication

Retention strategies built around financial bonds: A. Provide long-term profit increases B. Use price as the primary marketing mix element C. Are difficult to initiate D. Provide long-term competitive advantage E. Have a high degree of service customization

Use price as the primary marketing mix element

Which of the following products is LEAST high in experience qualities?

Wedding Dress

When is a customer for a janitorial service most likely to notice the cleaning done by the service and make some comment about it?

When the service is outside the zone of tolerance

Johanna wants to learn self-defense and has signed up for a class at her local YMCA. She chose this particular class because her sister took it last year and told her it was a great class. While Johanna has never had a need to defend herself, everyone tells her it is a good idea to learn how. Johanna's service expectation for the class was shaped by:

Word of moth communication

Before going out to dinner with her husband at Formia Ristorante, a contemporary Italian restaurant in New Jersey, Jennifer read a review of Formia in the local newspaper. The review indicated Formia is an unpretentious and unassuming, but exceptionally fine, contemporary Italian restaurant. Five servers who are under the owner's watchful eye attentively care for the fourteen roomy tables in the single large dining room. What the servers may lack in experience is more than compensated for by tempered enthusiasm and sincere desire to ensure guests are comfortable. The review of Formia that Jennifer read is a(n):

Word of mouth communication

Jamie's desires a haircut that will look just as attractive when she awakens in the morning as it does when she is going out on a date. With the desired haircut, all she has to do to fix her hair is to shake her head. A haircut is adequate when it doesn't have any stray long hairs and it hides her cowlick. Jamie's recent haircut was in her _________ because while it didn't look great all the time, a quick brushing was all that was needed to fix it.

Zone of tolerance

The extent to which customers recognize and are willing to accept variation in service performance is called the ____________:

Zone of tolerance

A(n) _____ is a composite of the perceptual satisfaction or service quality measures collected in an organization. A. Zone of tolerance chart B. Salience of dimensions and attributes graph C. Gap scores tracking tool D. Importance/performance matrix E. Customer satisfaction index

Zone of tolerance chart

_____ are used to report the findings from a service marketing research study that collected data on the two levels of customer expectations-desired service and adequate service-along with customer perceptions of company performance. A. Zone of tolerance charts B. Salience of dimensions and attributes graphs C. Gap scores tracking graphs D. Importance/performance matrices E. Customer satisfaction indices

Zone of tolerance charts

Gap 1:

difference between customer expectations of service and company understanding of those expectations.

Gap 3:

discrepancy between the development of customer-driven service standards and actual service performance by company employees.

Customer _____ are the standards for performance against which service experiences are compared.

expectations

A company that wants to excel at responsiveness should view service delivery and the handling of requests from the company's point of view.

false

A customer's refusal to comply with park regulations when riding a roller coaster in an amusement park will have no effect on his or her level of satisfaction

false

All service encounters are equally important in building good customer relationships.

false

All services have about the same number of service encounters.

false

Companies that ask customers about their service expectations raise the customers' levels of expectations.

false

Hurricanes and tornadoes that affect a large number of people are examples of personal situational factors.

false

Inadequate vertical communications will broaden provider gap 4.

false

Provider gap 1 is widened when the service provider promises delivery on Monday when in fact there is no way the service provider can deliver until the following Thursday.

false

Provider gap 2 exists in service companies because of a failure of horizontal communication.

false

Service encounters that occur without any human contact are referred to as impersonal encounters.

false

Technology is creating a demand for ethnocentric services.

false

The letters ACSI are an acronym for the Association of Customer Service Institute, which measures customers' perceptions of service quality around the world.

false

The sources of customer expectations are all controlled by the service provider

false

The synchronizing of supply and demand will narrow provider gap 4

false

The use of transactional marketing will tend to narrow provider gap 1.

false

Word-of-mouth communication about a service may be either personal or nonpersonal, but it is always verbal.

false

Gap 2:

is the difference between company understanding of customer expectations and the development of customer-driven service designs and standards.

When Maria woke up this morning, she felt terrible. She had a headache, sore throat and upset stomach. She called her doctor's office, explained her condition to the receptionist and asked if she could make an appointment to see the doctor as soon as possible that day since she was going on vacation tomorrow. Maria's desired expectation to see her doctor the same day she became sick resulted from a(n):

personal need

The core offerings of hospitals, hotels, and banks are primarily deeds and performances, and therefore, are _______________.

services

Gap 4:

the difference between service delivery and the service provider's external communications.

In terms of service success or failure, what is an attribution?

the perceived cause of events.

A service provider that wants to be perceived as empathetic should allow its employees to customize the services to meet the specific needs of each individual customer.

true

Ad puffery such as "The Best Pizza in the State" could lead to provider gap 4

true

Although consumer satisfaction tends to be measured at a particular point in time as if it were static, satisfaction is a dynamic, moving target.

true

Attributions influence perceptions of satisfaction with services.

true

Customers' adequate service levels are less stable than their desired levels.

true

Deficiencies in human resources management policies will broaden provider gap 3.

true

Every service encounter is an opportunity to build satisfaction and quality.

true

Inappropriate physical evidence can result in provider gap 2.

true

It is very difficult to surprise or delight customers by consistently delivering reliable service.

true

One of the major difficulties associated with provider gap 4 is that communications to consumers typically involve issues that cross organizational boundaries.

true

Perceptions of equitable treatment by the service provider will affect customers' perceptions of service.

true

Provider gap 2 is the difference between development of customer-driven service standards and actual service performance by company employees.

true

Service researchers have suggested that consumers judge the quality of services based on their perceptions of the technical outcome provided, the process by which that outcome was delivered and the quality of the physical surroundings in which the service was delivered.

true

Services marketing bridges the gap between what customers expect to get and what they perceive they actually got. TRUE

true

The absence of customer-defined standards will broaden provider gap 2.

true

The central focus of the gaps model of service quality is to close the gap between customer expectations and perceptions. TRUE

true

The most important determinant of perceptions of service quality among U.S. customers is reliability.

true

When considering customer satisfaction/dissatisfaction, the ability of the service providers to correct service delivery system failures is very important.

true