Mktg 358 10-13 T/F

false

A good example of inventorying demand is a haircut that can be set up and prepared for one day and executed the next

true

A jaycustomer is defined in the book as one who acts in a thoughtless or abusive way, causing problems for the firm, its employees, and other customers

true

A spa environment should be designed with low arousal and high pleasantness.

true

A subway can increase the capacity on a route after all seats have been occupied

false

According to John Wooden, "Too often, the big talkers are the big doers."

false

According to the Mehrabian-Russell Stimulus-Response Model, people avoid crowded environments because there of the number of people rather than being deterred by the unpleasant feeling of crowding, people being in the way, or lacking perceived control.

false

Airlines place restrictive conditions on fares for tourists to prevent business travelers from traveling on economy class

false

All employees are eager to be empowered

true

Ambient conditions refer to those characteristics of the environment pertaining to our five senses.

true

Boundary spanners work in some of the most demanding jobs in service firms

true

Compensation should be based on the positioning of the firm, the severity of the failure, and who the specific affected customer is.

true

Complaining behavior can be influenced by role perceptions and social norms

false

Conditional guarantees are more effective

false

Customer contact personnel have to attend to both operational and marketing goals and this causes person/role conflict.

true

Customer satisfaction (based on the ACSI) is highly related to the stock price of individual firms

true

Customers remain loyal to a firm because they experience relational benefits

true

Customers who complain are more likely to be white-collar workers than blue-collar workers.

false

DHL's less powerful accounts generate significantly lower profitability than their major accounts

false

Defection describes customers who stop buying from a company and transfer their brand affinity to another supplier

false

Demand patterns are usually random

false

During the SARS period when travel and tourism was affected, staff were sent for training or encouraged to resign

true

E-mail and telephone service interactions are just as visible as face-to-face interactions.

false

Employee satisfaction typically has little impact on customer satisfaction.

false

Empowerment is suitable for all situations

true

Facing competition from numerous casinos in other locations, Las Vegas has been trying to reposition itself away from being an adult destination to a somewhat more wholesome family fun resort.

false

Fast music environments have been shown to generate more revenue and get customers to spend longer amounts of time in an environment than slow music environments.

true

Financial success in businesses with limited capacity depends largely on how capacity is used

false

Functionality refers to the floor plan, size and shape of furnishings, counters, and potential machinery and equipment, and the ways in which they are arranged

true

Good records of a firm's transactions can help one to understand demand patterns

true

Good relationships start with a good fit between customer needs and company capabilities

false

Great references from past employers are not a form of behavioral observation.

true

Hampton Inn has developed a way to identify guests who appear to be cheating and give them a lot of personalized attention and follow-up from the company

true

ING Direct could be called the fast-food model of consumer banking because it is about as no-frills as it gets

false

In practice, the large majority of service encounters are routine, involving a high level cognitive processing and little affect.

false

In the B2B context, the smaller firms as a group have a lot of bargaining power

true

Interactional justice involves the employees of the firm who provide the service recovery and their behavior toward the customer

false

Interpersonal skills include visual communication, attentive listening, and body language and tend to be specific to each service setting

false

L. L. Bean's 100 percent satisfaction guarantee is a good example of a service guarantee that goes wrong and hurts a firm's financial performance

false

Many service firms put too much emphasis on value without enough consideration of the number of customers they will serve.

false

Marketing communications attempt not to attract customers who will enhance the ambiance with their presence because of potential legal ramifications.

false

Medical clinics, hotels, and passenger aircrafts are all examples of physical facilities designed to contain goods and services

false

Most people can think of dozens of service firms they truly like and where they are committed to going back to.

true

One of the most direct ways for a hotel to reduce excess demand at peak periods is to charge customers more money to use the service during those periods

false

One way to stretch capacity is to ensure slack time is encountered

false

Optimum and maximum capacities are never one and the same (e.g. a sport performance

true

Part of British Airways' strategy is that customers can earn BA points and air miles on other airlines

false

People in lower socioeconomic levels are more likely to complain than those in higher levels

false

Procedural justice concerns the compensation that a customer receives as a result of the losses and inconveniences incurred because of a service failure

true

Proper service recovery can be accomplished by making it easy for customers to give feedback, enabling effective service recovery, and establishing appropriate compensation levels.

true

Service consumers use service environment as an important quality proxy.

false

Service guarantees are always appropriate

false

Service recovery efforts should be fairly rigid to makes sure the same recovery is achieved each time

true

Service recovery is an umbrella term for systematic efforts by a firm to correct a problem following a service failure and retain a customer's goodwill

true

Servicescapes help to shape the desired feelings and reactions in customers and employees.

true

Signs are frequently used to teach and reinforce behavioral rules in service settings.

true

Southwest Airlines illustrates a high-involvement company

false

Spatial layout refers to the ability of items to facilitate the performance of service transactions.

false

Special treatment benefits include being known by name by the service provider

true

Staff acting as Cinderella, or seven drawfs at Disney theme parks are part of the service environment

false

Successful customer relationships cannot be built if a firm is selective about the segments they target

true

Suggestion involvement empowers employees to make recommendations through formalized channels.

true

Technical skills encompass all the required knowledge related to processes

true

The "Cycle of Mediocrity" is most often found in large, bureaucratic organizations like regulated oligopolies.

false

The Cheat is the kind of jaycustomer who delays payments

true

The Ritz-Carlton uses personality profiles to select the best applicants

true

The appearance of both service personnel and customers can reinforce or detract from the impression created by the service environment

false

The lead customer tier tends to generate moderate revenue, but only a small amount of business

true

The term "productive capacity" refers to the resources or assets that a firm can employ to create goods and services

true

The two ends of the customer satisfaction/loyalty relationship are terrorist and apostle

true

The use of orange is commonly associated with its ability to encourage verbal expression

true

Training at Apple includes how to phrase words in a positive rather than negative way.

true

Vanguard Group is very careful about acquiring the right type of customers

true

We need to have queuing or reservations systems because demand cannot be inventoried

false

When a firm wants to inventory demand via a reservation system and has insufficient capacity it should lower prices selectively

true

Yield analysis forces managers to recognize the opportunity cost of selling capacity for a given date to a customer from one market segment when another might subsequently yield a higher rate