wat
66. (p. 20) Luke Roche has developed a great new massage therapy that can completely alleviate the pain produced by the typical migraine headache. He wants to patent his massages. What is wrong with this plan?
A massage is a service. Services are by definition intangible. Intangibles cannot be easily patented.
10. (p. 36-37) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
A. Gap 1
11. (p. 36-37) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
A. Gap 1
12. (p. 36-37) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
A. Gap 1
16. (p. 36-37) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
A. Gap 1
19. (p. 37) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
A. Gap 1
20. (p. 37) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
A. Gap 1
7. (p. 36) Provider _____ is the difference between customer expectations of service and company understanding of those expectations. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
A. Gap 1
23. (p. 39) Which of the following factors leads to provider gap 2? A. Inappropriate physical evidence and servicescape B. Inadequate marketing research C. Lack of integrated services marketing communications D. Failure to match supply and demand E. Inadequate horizontal communications
A. Inappropriate physical evidence and servicescape
20. (p. 20) The characteristic of a service that means that it cannot be seen, felt, tasted or touched is: A. Intangibility B. Heterogeneity C. Divisibility D. Perishability E. Compatibility
A. Intangibility
43. (p. 25) Which of the following is NOT an element of the traditional marketing mix? A. Production B. Place C. Product D. Price E. Promotion
A. Production
2. (p. 3) The maintenance contract offered by Sears on its Kenmore 2. (p. 3) The maintenance contract offered by Sears on its Kenmore refrigerators, dishwashers and microwaves is an example of a(n) _______. A. Service B. Experience C. Attribute D. Good
A. Service
3. (p. 3) The core offerings of hospitals, hotels, and banks are primarily deeds and performances and therefore, are_________________. A. Services B. Experiences C. Attributes D. Goods E. Benefits
A. Services
15. (p. 36-37) Companies that emphasize acquiring new customers rather than retaining current customers are using _____ marketing. A. Transactional B. Developmental C. Proactive D. Relationship E. Acquisition
A. Transactional
80. (p. 26-27) Describe the three new elements of the service marketing mix. People:
All the human actors who play a part in service delivery and thus influence the buyer's perceptions: namely, the firm's personnel, the customer, and other customers in the service environment
Describe the three new elements of the service marketing mix People:
All the human actors who play a part in service delivery and thus influence the buyer's perceptions: namely, the firm's personnel, the customer, and other customers in the service environment.
45. (p. 44) Service companies can close provider gap 4 by doing all of the following EXCEPT: A. Avoiding over-promising in advertising B. Conducting market research C. Adequately educating customers to use service appropriately D. Viewing all of its external communications as interdependent E. Including interactive marketing in communications plans
B. Conducting market research
21. (p. 37,39) Provider ______ is the difference between company understanding of customer expectations and the development of customer-driven service designs and standards. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
B. Gap 2
25. (p. 39-40) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
B. Gap 2
28. (p. 39-40) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
B. Gap 2
8. (p. 37) Which of the following factors is NOT a factor leading to provider gap 1? A. Inadequate marketing research orientation B. Over-promising C. Lack of upward communication D. Insufficient relationship focus E. Inadequate service recovery
B. Over-promising
44. (p. 26-27) In addition to the elements of the traditional marketing mix, the expanded mix for services includes: A. Positioning, personalization and process B. People, physical evidence and process C. Personalization, procurement and people D. Profit, production and psychology E. People, partnerships and positioning
B. People, physical evidence and process
28. (p. 21) 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: A. How difficult it is to synchronize supply and demand with service B. That customer service depends on employee actions C. How customers affect each other D. The fact services cannot be readily communicated or displayed E. Why services cannot be inventoried
B. That customer service depends on employee actions
1. (p. 35) The central focus of the gaps model of service quality is the: A. Constant need to provide value for dollars spent B. Four dimensions of service C. Difference between customer expectations and perceptions D. Temptation to handle services as if they were tangibles E. Customer-employee-supplier triumvirate
C. Difference between customer expectations and perceptions
32. (p. 41) Which of the following factors does NOT cause provider gap 3? A. Ineffective employee recruitment B. Failure to match supply and demand C. Efficient marketing research systems D. Channel conflict over objectives and performance E. Lack of employee empowerment, perceived control and teamwork
C. Efficient marketing research systems
31. (p. 40) Provider _____ is the discrepancy between the development of customer-driven service standards and actual service performance by company employees. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
C. Gap 3
35. (p. 40-41) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
C. Gap 3
36. (p. 41) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
C. Gap 3
49. (p. 27) 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. A. Product B. Production C. Process D. Place E. Promotion
C. Process
50. (p. 26) 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. A. Product B. Personalization C. Process D. Place E. Physical evidence
C. Process
9. (p. 36-37) Which of the following would result in a broadening of provider gap 1? A. The service intermediary for a cruise line wants to only sell those cruises on which it would receive the highest commissions B. The ski resort has an over-reliance on price to smooth demand for its resort facilities C. The marketing research done by the motel chain includes insufficient research about what its target market wants D. The ads for the language program over-promise how quickly the average person will be able to learn a foreign language E. All of the above would result in a broadening of provider gap 1
C. The marketing research done by the motel chain includes insufficient research about what its target market wants
76. (p. 45) What is the key to closing the customer gap?
Close provider gaps 1 through 4 and keep them closed.
40. (p. 44) Provider _____ is the difference between service delivery and the service provider's external communications. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
D. Gap 4
11. (p. 8) 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? A. The increasing importance of service industries to the U.S. and world economies B. The increase of government regulation of professional service industries C. The growth in database marketing D. Increased competition in professional services E. Professional firms are placing increased emphasis on providing services
D. Increased competition in professional services
37. (p. 22) _____ refers to the fact that services cannot be saved, stored, resold or returned. A. Intangibility B. Heterogeneity C. Simultaneous production and consumption D. Perishability E. Incompatibility
D. Perishability
39. (p. 22) An attorney who charges a client for a missed appointment is taking into account the _____ characteristic of services. A. Heterogeneity B. Simultaneous production and consumption C. Incomparability D. Perishability E. Intangibility
D. Perishability
2. (p. 35) The sources of customer expectations are market-controlled factors such as: A. The individual's innate needs B. The individual's previous experiences C. Word-of-mouth communication D. Sales promises E. What the competition is offering
D. Sales promises
31. (p. 21) Which of the following is a marketing implication that results from the heterogeneity of services? A. Services cannot be returned or resold B. Services cannot be patented C. Services cannot be inventoried D. Service delivery and customer satisfaction depend on employee and customer actions E. All of the above are marketing implications resulting from the heterogeneity of services
D. Service delivery and customer satisfaction depend on employee and customer actions
32. (p. 22) 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. A. Comparability B. Intangibility C. Heterogeneity D. Simultaneous production and consumption E. Perishability
D. Simultaneous production and consumption
45. (p. 26) Which of the following is an example of the people element of an airline company's services marketing mix? A. Pilots B. Baggage handlers C. Customers D. Flight attendants E. All of the above
E. All of the above
17. (p. 15) Which of the following statements about how technology has positively influenced service is true? A. Technology provides approaches for delivering existing services in more accessible, convenient, productive ways B. Technology facilitates basic customer service functions C. Technology facilitates transactions by offering a direct vehicle for making purchases D. Technology provides an easy way for customers to learn and do research about products and companies E. All of the above statements about how technology has influenced service are true
E. All of the above statements about how technology has influenced service are true
23. (p. 21) Which of the following statements describes a marketing implication that results from the intangibility of services? A. Services cannot be inventoried. B. Services cannot be easily patented. C. Services cannot be readily displayed. D. The actual costs of a "unit of service" are hard to determine. E. All of the above.
E. All of the above.
41. (p. 44) Which of the following factors does NOT lead to provider gap 4? A. Absence of strong internal marketing program B. Over-promising in advertising C. Insufficient communication between advertising and operations D. Differences in policies and procedures across company branches E. Creating clear standards
E. Creating clear standards
41. (p. 23) _______ qualities are characteristics of a product consumers may find impossible to evaluate even after purchase and consumption. A. Search B. Cognitive C. Perceptual D. Experience E. Credence
E. Credence
46. (p. 26) 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. A. Product B. Production C. Process D. Place E. Physical evidence
E. Physical evidence
51. (p. 35) The sources of customer expectations are all controlled by the service provider. True or False
False
53. (p. 36) 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. True or False
False
55. (p. 10) The deregulation of industries has actually lessened the demand for services marketing skills. True or False
False
55. (p. 37) The use of transactional marketing will tend to narrow provider gap 1. True or False
False
56. (p. 16) Technology is creating a demand for ethnocentric services. True or False
False
56. (p. 39) Provider gap 2 exists in service companies because of a failure of horizontal communication. True or False
False
58. (p. 20) Because a product is tangible, it cannot be inventoried. True or False
False
60. (p. 23) A primary issue that marketers face in relation to service perishability is ensuring service quality over time. True or False
False
61. (p. 21) Pricing is easier when marketing services than when marketing goods. True or False
False
61. (p. 44) The synchronizing of supply and demand will narrow provider gap 4. True or False
False
62. (p. 25) The seven elements of the marketing mix for services are product, promotion, place, price, process, progress and people. True or False
False
64. (p. 44) Inadequate vertical communications will broaden provider gap 4. True or False
False
65. (p. 5) What is the key determinant of whether a product is a good or a service?
Its intangibility.
74. (p. 26-27) Which elements of the services marketing mix are influenced by the techniques used to recruit and train new employees as telemarketers?
People and process
71. (p. 22) Maria Kingsley is a fortune teller. She is concerned because today two of her clients missed their appointments to have her read their Tarot cards and she had plans for the money she would have earned. With which characteristic of services is Kingsley most concerned?
Perishability.
75. (p. 25) Which element of the services marketing mix is influenced by the health inspector's report that is prominently displayed in all restaurants?
Physical evidence.
On which of the provider gaps does an inappropriate servicescape have the greatest impact?
Provider gap 2.
73. (p. 41) On which of the provider gaps are deficiencies in human resources management policies most likely to have the greatest impact?
Provider gap 3.
74. (p. 41) On which of the provider gaps do the actions of retailers, franchisees, agents and brokers have the greatest impact?
Provider gap 3.
69. (p. 35) Briefly define customer expectations for a service.
Standards or reference points against which service experiences are compared
65. (p. 35) What is the central focus of the gaps model of service quality? .
The customer gap
75. (p. 44) What is provider gap 4 of the gaps model of service quality?
The difference between service delivery and the service provider's external communications.
72. (p. 40) What is provider gap 3 of the gaps model of service quality? The difference between the development of customer-driven service standards and actual service performance by company employees.
The difference between the development of customer-driven service standards and actual service performance by company employees.
80. (p. 26-27) Describe the three new elements of the service marketing mix. Physical Evidence:
The environment in which the service is delivered and where the firm and customer interact, as well as any tangible components that facilitate performance or communication of the service.
80. (p. 26-27) Describe the three new elements of the service marketing mix. Process:
The procedures, mechanisms, and flow of activities by which the service is delivered - the service delivery and operating systems.
63. (p. 3) What do deeds, processes and performances have in common?
Those words together define what a service is.
52. (p. 35) Services marketing bridges the gap between what customers expect to get and what they perceive they actually got. True or False
True
53. (p. 10) The development of services marketing concepts has been strongly influenced by professional services like doctors and attorneys. True or False
True
58. (p. 39) The absence of customer-defined standards will broaden provider gap 2. True or False
True
62. (p. 44) One of the major difficulties associated with provider gap 4 is that communications to consumers typically involve issues that cross organizational boundaries. True or False
True
63. (p. 44) Ad puffery such as "The Best Pizza in the State" could lead to provider gap 4. True or False
True.
The central focus of the gaps model is the...
customer gap--the difference between customer expectations and perceptions
68. (p. 35) Give a brief generalized definition of a customer's perception of service.
A subjective assessment of an actual service experience.
4. (p. 35) The _____ gap is the difference between customer expectations and perceptions. A. Customer B. Service C. Value D. Quality E. Delivery
A. Customer
. (p. 36-37) 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 18immediately 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
A. Gap 1
14. (p. 36-37) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
A. Gap 1
42. (p. 44) Service companies can close provider gap 4 by: A. Improving communications between sales and operations departments B. Using a systematic new-service development process C. Eliminating employee role ambiguity and role conflict D. Creating customer-defined standards E. Making sure customers understand their roles and responsibilities
A. Improving communications between sales and operations departments
16. (p. 12) Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining? A. Increasing use of technology is perceived by many customers as less service because there is no human interaction B. Companies provide unclear tactics for customers to follow when dealing with service providers C. Delivering consistent, high-quality service becomes routine D. Customers have no concept of what conditions produce to quality service E. Too many talented employees are left mired in front-end jobs that do not challenge them
A. Increasing use of technology is perceived by many customers as less service because there is no human interaction
21. (p. 20) 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. A. Intangibility B. Comparability C. Divisibility D. Perishability E. Compatibility
A. Intangibility
22. (p. 20) 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. A. Intangibility B. Comparability C. Divisibility D. Perishability E. Compatibility
A. Intangibility
5. (p. 35) Customer _____ are the standards for performance against which service experiences are compared. A. Perceptions B. Expectations C. Attitudes D. Judgments E. Wants
B. Expectations
26. (p. 40) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
B. Gap 2
29. (p. 40) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
B. Gap 2
30. (p. 39-40) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
B. Gap 2
7. (p. 5) Which of the following is an example of a tangible component provided by a hotel? A. Wake-up call B. Guest rooms C. Room service D. Express check-out E. Guaranteed reservations
B. Guest rooms
25. (p. 21) The characteristic of a service that refers to differences in employees' performances is: A. Intangibility B. Heterogeneity C. Divisibility D. Perishability E. Simultaneous production and consumption
B. Heterogeneity
26. (p. 21) 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. A. Intangibility B. Heterogeneity C. Simultaneous production and consumption D. Perishability E. Divisibility
B. Heterogeneity
27. (p. 21) 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. A. Intangibility B. Heterogeneity C. Simultaneous production and consumption D. Perishability E. Divisibility
B. Heterogeneity
29. (p. 21) 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 _____________. A. Versatility B. Heterogeneity C. Simultaneous production and consumption D. Perishability E. Intangibility
B. Heterogeneity
30. (p. 21) 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. A. Versatility B. Heterogeneity C. Simultaneous production and consumption D. Perishability E. Intangibility
B. Heterogeneity
36. (p. 20, 22) Which of the following statements describes a marketing implication that results from the simultaneous production and consumption of services? A. Services cannot be returned or resold B. Service quality depends on many uncontrollable factors C. Employees affect the service outcome D. Services cannot be readily displayed or communicated E. There is no sure knowledge that the service delivered matches what was planned and promoted
C. Employees affect the service outcome
37. (p. 41) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
C. Gap 3
38. (p. 41) The 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
C. Gap 3
19. (p. 20) The most distinguishing characteristic of services is: A. Heterogeneity B. Perishability C. Intangibility D. Comparability E. Divisibility
C. Intangibility
5. (p. 5) _____ is a key determinant of whether an offering should be classified as a product or a service. A. Physicality B. Audience passivity C. Intangibility D. Perception E. Abstraction
C. Intangibility
49. (p. 44) 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. A. Formal B. External C. Interactive D. Controlled
C. Interactive
1. (p. 3) In the simplest terms, _____ are deeds, processes and performances. A. Attributes B. Experiences C. Services D. Goods E. Benefits
C. Services
4. (p. 3) 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: A. Goods B. Values C. Services D. Satisficers E. Attributes
C. Services
34. (p. 21) 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. A. Versatility B. Heterogeneity C. Simultaneous production and consumption D. Perishability E. Intangibility
C. Simultaneous production and consumption
35. (p. 21) 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. A. Versatility B. Heterogeneity C. Simultaneous production and consumption D. Perishability E. Intangibility
C. Simultaneous production and consumption
13. (p. 14-15) 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? A. The increasing importance of service industries to the U.S. and world economies B. The decrease of human interaction as a result of widespread use of technology-based services C. The growth in the use of technology-based services D. Increased competition in the direct-mail industry E. The fact that direct marketing firms are placing increased emphasis on providing services
C. The growth in the use of technology-based services
14. (p. 14-15) 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? A. The increasing importance of service industries to the U.S. and world economies B. The decrease of human interaction as a result of widespread use of technology-based services C. The growth in the use of technology-based services D. Increased competition in the entertainment industry E. The fact that manufacturing firms are placing increased emphasis on providing services
C. The growth in the use of technology-based services
33. (p. 41) Provider gap 3 of the gaps model of service quality is caused by: A. Failure to match supply and demand B. Advertising that over-promised C. Failure to connect service design to service positioning D. Inadequate maintenance of servicescape E. A tendency to view each external communication as independent
D.
15. (p. 12) Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining? A. Technology-based services, which are superior to human-based services, are not being implemented enough B. Services are leveling the playing field and consistently trying to offer the same level of service to every customer C. Companies are decreasing their reliance on self-service and increasing the use of human interaction in the performance of services D. Customer expectations are higher because of the excellent service they receive from some companies E. Even though it is Easy to provide consistent, high-quality service, many companies do not want to do it
D. Customer expectations are higher because of the excellent service they receive from some companies
22. (p. 39) _____ standards are operations standards set by a service firm to correspond to customer expectations. A. Company-driven B. Competitor-driven C. Contact employee-driven D. Customer-driven E. Management-defined
D. Customer-driven
18. (p. 17, 19) Which of the following statements describes how consumers and employees are responding to technology-based services? A. Services can readily calm fears that privacy may be sacrificed if technology is used B. An infusion of technology can lead to an increase in human interaction C. The payback for investments in technology is a certainty D. Employees are often reluctant to integrate technology into their work lives E. All of the above statements describe how consumers and employees are responding to technology-based services
D. Employees are often reluctant to integrate technology into their work lives
39. (p. 44) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
D. Gap 4
43. (p. 44) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
D. Gap 4
44. (p. 44) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
D. Gap 4
46. (p. 44) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
D. Gap 4
47. (p. 44) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
D. Gap 4
48. (p. 42) 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4
D. Gap 4
24. (p. 39) Service companies can close provider gap 2 by doing all of the following EXCEPT: A. Using a systematic new-service development process B. Developing customer-defined service standards C. Designing and using an appropriate servicescape D. Improving communication between the marketing and operations departments E. Creating formal process for setting service quality standards
D. Improving communication between the marketing and operations departments
38. (p. 22) 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. A. Versatility B. Heterogeneity C. Simultaneous production and consumption D. Perishability E. Intangibility
D. Perishability
40. (p. 22) 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. A. Heterogeneity B. Simultaneous production and consumption C. Incomparability D. Perishability E. Intangibility
D. Perishability
3. (p. 36) To close the customer gap, the gaps model of service quality suggests that the _______ gaps need to be closed. A. Services marketing B. Service dimensions C. 4 Ps D. Provider E. Value
D. Provider
13. (p. 36-37) 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. A. Transactional B. Developmental C. Proactive D. Relationship E. Acquisition
D. Relationship
17. (p. 36-37) 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. A. Transactional B. Developmental C. Proactive D. Relationship E. Acquisition
D. Relationship
33. (p. 21) 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. A. Comparability B. Intangibility C. Heterogeneity D. Simultaneous production and consumption E. Perishability
D. Simultaneous production and consumption
10. (p. 8) Which of the following trends has directly influenced the development of services marketing concepts and strategies? A. The decreasing importance of service industries to the U.S. and world economies B. The growth in information-based technology C. Decreased competition in professional services D. The fact that manufacturing firms are placing increased emphasis on providing services E. None of the above
D. The fact that manufacturing firms are placing increased emphasis on providing services
6. (p. 5) Which of the following is an intangible component of a car repair shop? A. Replacement parts B. Employee uniforms C. Barrel for storing recyclable motor oil D. The training the mechanic has received E. Customer waiting area
D. The training the mechanic has received
42. (p. 23) Which of the following products is LEAST high in experience qualities? A. Plastic surgery B. A prom band C. Catered banquet D. Wedding dress E. Pet grooming
D. Wedding dress
34. (p. 41) Service companies can close provider gap 3 by doing any of the following EXCEPT: A. Teaching customers to perform their roles appropriately B. Synchronizing supply and demand C. Motivating intermediaries to meet company service goals D. Empowering employees E. Developing customer-defined service standards
E. Developing customer-defined service standards
9. (p. 8) 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? A. The increasing importance of service industries to the U.S. and world economies B. The increase of government regulation of service industries C. The growth in information-based technology D. Increased competition in professional services E. Manufacturing firms are placing increased emphasis on providing services
E. Manufacturing firms are placing increased emphasis on providing
12. (p. 10) Which of the following statements about services is true? A. A service economy produces services at the expense of other sectors. B. Service jobs are low paying and menial. C. Service production is labor intensive and low in productivity. D. Service is a necessary evil for manufacturing firms. E. Marketing and managing services presents issues and challenges not faced in manufacturing and packaged goods companies.
E. Marketing and managing services presents issues and challenges not faced in manufacturing and packaged goods companies.
8. (p. 4, 11) Which of the following is NOT an example of a service business? A. Amusement park B. Hotel C. Bank D. Department store E. Paper mill
E. Paper mill
47. (p. 26) 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. A. Product B. Production C. Process D. Place E. Physical evidence
E. Physical evidence
48. (p. 26) 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 B. Production C. Process D. Place E. Physical evidence
E. Physical evidence
24. (p. 21) Which of the following statements describes a marketing implication that results from the intangibility of services? A. Customers participate in and affect the transaction B. Service quality depends on many uncontrollable factors C. Services can be readily communicated D. There is no sure knowledge that the service delivered matches what was planned and promoted E. Services cannot be inventoried
E. Services cannot be inventoried
27. (p. 40) 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. A. Internal marketing B. Management-driven service C. Interactive communication D. Relationship marketing E. Servicescape
E. Servicescape
6. (p. 35) Which of the following is NOT a source of customer expectations? A. Word-of-mouth communications B. Advertising C. Pricing D. Sales promises E. Target market
E. Target market
68. (p. 20) Keith overheard two women comparing the way the dog groomer clipped their poodles. One claimed the groomer did not cut the hair between her dog's toes as was advertised, but that everything else about the cut was perfect. The other groused that the groomer left the hair on her dog's tail too long, but at least the hair on his feet had been cut. Which characteristic of service were the two women discussing?
Heterogeneity.
67. (p. 35) List two examples of sources of customer expectations over which the marketer has limited control.
Innate personal needs, word-of-mouth communication, competitive offerings.
67. (p. 20) Weight loss centers provide moral support and weight-loss aids to those who believe they need to diet. The centers often use before and after pictures of their most successful cases to overcome problems associated with which service characteristic?
Intangibility
Closing Customer Service Gap (3) Provider gap 3:
Not delivering to service standards.
Customer Service Gap (1) Provider gap 1:
Not knowing what customers expect
Closing Customer Service Gap (4) Provider gap 4:
Not matching performance to promises.
Closing Customer Service Gap (2) Provider gap 2:
Not selecting the right service designs and standards.
73. (p. 26) A hotel manager is studying other hotels to see how they achieve and maintain service quality. The manager has spent some time paying attention to the actions, interactions, and appearance of front desk clerks, housekeepers, spa attendants and restaurant staff. With which element of the services marketing mix is the hotel manager concerned?
People.
66. (p. 35) List three sources of customer expectations that are market-controlled factors.
Pricing, advertising, sales promises
76. (p. 27) An airline is concerned with whether its passengers are satisfied with how their luggage is handled before, during and after a flight. With which element of the services marketing mix is the airline concerned?
Process.
70. (p. 37) Which provider gap is a company trying to narrow when it concentrates on developing a service recovery strategy?
Provider Gap 1
69. (p. 21, 22) Briefly explain why it is difficult to mass produce a service.
Services are typically produced and consumed at the same time.
70. (p. 23) What is the primary issue that marketers face in relation to service perishability?
The inability to create an inventory when demand for your service is low.
64. (p. 4) What do tax preparation services, law offices, dental practices and architects have in common?
They are all industries classified as part of the service sector.
72. (p. 23) What do a vacation to Jamaica and a haircut have in common besides the fact that they are both services?
They are both high in experience qualities; their attributes cannot be known until they are purchased and consumed.
52. (p. 5) 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 or False.
Tru
50. (p. 35) The central focus of the gaps model of service quality is to close the gap between customer expectations and perceptions. True or False
True
51. (p. 6) Salt, bricks and paper clips are three examples of tangible dominant products. True or False
True
54. (p. 12) 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 or False
True
54. (p. 36) Improved upward communication can be used to narrow provider gap 1. True or False
True
57. (p. 16) All businesses and organizations that operate on the Internet are essentially providing a service. True or False
True
57. (p. 39) Inappropriate physical evidence can result in provider gap 2. True or False
True
59. (p. 22) Because the production and consumption of services is simultaneous, the mass production of services is difficult True or False
True
59. (p. 39) Provider gap 2 is the difference between development of customer-driven service standards and actual service performance by company employees. True or False
True
60. (p. 40-41) Deficiencies in human resources management policies will broaden provider gap 3. True or False
True