BA 370: Marketing - Chapter 13

How much time should a service provider give to a customer who wants to file a complaint?

As long as it takes for the customer to say everything he or she has to say

A cosmetics store has a list of service goals for its employees. One of the goals is to "give every customer as much attention as they need." What is the problem with this goal?

It is neither specific nor measurable.

A tire store finds that its business is heavily skewed to the weekend, and few customers arrive on Monday through Wednesday. Since rotating, balancing, and replacing tires is a service that cannot be stockpiled, one of the dilemmas facing the firm is ______.

balancing supply and demand

Three of the dermatologist's patients have very different skin problems. Because of the ______ of services, the doctor needs to customize each patient's diagnosis and treatment.

heterogeneity

Service providers cannot inventory or stockpile things like haircuts during slow times to "sell" later when the facility is busy. This characteristic of services is called ______.

perishability

Which of the following characteristics is NOT one that distinguishes services from products?

Volatility

Which of the following situations best illustrates how a firm can offer employees emotional support and stand behind the employees' actions?

At a copy center, part-time employees are encouraged to turn over any unhappy customer to the supervisor immediately.

Match each explanation (on the right) with the marketing metric or approach to gathering customer feedback that it explains (on the left).

Customer complaint behavior ---> Analyzes the unfulfilled needs of customers in regards to their perceptions of the performed service used to modify future performance. Point-of-purchase surveys ---> Inexpensively collects customer's service perceptions in the process of exchange. Zone of tolerance ---> Identifies the area between the desired and minimum standard of acceptable service based on five service dimensions. Voice-of-customer program ---> Systematically collects customer inputs and integrates them into managerial decisions.

What should a manager keep in mind while managing customer expectations?

Customers tend to respond negatively to surprises.

______ is a customer's perception of the benefits s/he received compared with the costs.

Distributive fairness

True or False: It is easier to fix bad service experiences than it is to fix bad product experiences.

False

True or False: Service providers that have high customer satisfaction ratings this year are unlikely to achieve the same level of satisfaction next year.

False

First Local Bank customers have raised a number of complaints about the amount of time and effort it takes to receive certain services from the bank's tellers and customer service representatives. Which of the following is a method First Local Bank could use to give customers greater control over the bank's services?

Incorporate technology such as automated teller machines or online banking

What type of support is provided by retailers who feature in-store computer displays for their customer service employees?

Instrumental

Susie decided to try a weight-loss program by Extreme Fit Foods that promised she could lose 15 pounds her first week. Susie followed the guidelines exactly and only lost 1 pound the first week. She is planning on canceling her membership and telling her other friends not to try Extreme Fit Foods. What mistake did Extreme Fit Foods make?

It needs to communicate accurate results information to meet customers' expectations.

Joe owns a large retail company and wants to find out more about his customers' service expectations. Which one of the following is the best way for Joe to gain this insight?

Joe needs to engage in structured market research on his industry and brand.

The self-checkout counter at a local grocery store is which type of technological service interaction?

Low technology, low human effort

Which of the following best illustrates a specific service standard that is directly measurable?

Make eye contact with every customer and greet them with a smile.

An athletic equipment store offers customers a free shoe-fitting service in which the customer's foot size, stride length, and gait are analyzed to determine the best athletic shoe for his or her needs. Recognizing that not all customers will be happy with their results, the store offers a 30-day trial period, during which the customer can return the shoes and receive a 10% discount on his or her next purchase. What is this an example of?

Procedural fairness

During the busy holiday shopping season, a cashier accidentally under charges the customer $1. The customer offers to wait while the cashier rings the item again. With many customers waiting in line, the cashier forgoes company guidelines and lets the customer keep the item at the price she was charged. What is this an example of?

Procedural fairness

True or False: To assess service quality, it is necessary to understand both customers' perceptions and their expectations.

True

Which of the following is NOT a method by which managers can provide rewards and incentives to employees?

Providing technology and instrumental support at the facility

In which one of the following examples has the service provider worked to fairly successfully close the communications gap?

Target store advertises no more than three people waiting in line or additional registers will be opened immediately.

Which of the following would most likely cause the delivery gap to negatively impact service quality?

The company doesn't understand what the customer wants.

What problem might occur if a grocery store decides to install self-checkout devices?

The technology will be too challenging for some customers.

Which of the following is NOT a method to reduce delivery gaps?

Threaten to terminate employees

True or False: Delivery gaps always result in a service failure.

True

When is empowering employees most important?

When the service is individualized

In addition to empowering and rewarding service providers, as well as offering instrumental support, service managers are advised to ______.

be consistent and predictable in their support

One way for a firm to reduce the ______ gap is to ensure that the sales force does not make promises the firm cannot keep.

communication

Ryanair advertised the lowest rates in Europe with fares of $12 between Paris and Munich. However, when Bill arrived at the airport, he had to pay $28 in taxes, $25 for one small carry-on bag, $6 for a non-alcoholic beverage, and $2.50 to use the restroom on the plane. Between Ryanair and the customer there is a ______ gap.

communication

If the Americana Hotel has successfully closed the standards gap, the knowledge gap, and the delivery gap in providing customers with service, it is still necessary to close the ______ gap.

communications

Service quality is defined as ______.

customers' perceptions of how well a service meets or exceeds their expectations

Customers' expectations of the type of service they will receive is primarily based on their knowledge and ______.

experiences

When many students are complaining about a problem at an online university, one of the best things the university can do to better serve its students is to ______.

honestly listen to students' complaints and use their messages to build a committed relationship

The primary reason there is greater heterogeneity in services than in products is because ______.

human inputs generate differences

Sally is having trouble deciding which college to attend. While the physical aspects of the schools—their buildings, classrooms, and libraries—are easy to judge, the quality of learning they offer is much more difficult to evaluate. It is this ______ of the purchase that makes marketing the service, a college education, complicated.

intangibility

Consumers can see and touch a product, such as a laptop computer, but cannot touch the financing program used to purchase the laptop. Services cannot be touched, tasted, or seen; they are ______.

intangible

For the marketing manager to be able to deliver consistent quality service, it is imperative to set ______.

measurable goals that are based on customer expectations

United Airlines flies a plane from Los Angeles to New York at 8 o'clock on Tuesday morning only 25% full. On Friday, the same flight is overbooked by 15%. One of the traits of service marketing is this quality of _____, in which the flights must be delivered on the day scheduled or it is lost.

perishability

After waiting in line over 2 hours to experience a new ride at an amusement park, the ride breaks. If everyone waiting is given a "rain check" with the sequential order of their line location enabling them to return in 4 hours and re-queue in order. Most guests will be satisfied, as they are experiencing ______.

procedural fairness

The perceived equity of the process used to resolve complaints is called ______ ______.

procedural fairness

The employees at the Ritz-Carlton are renowned for delivering good-quality service to hotel guests. Their behavior is probably due to ______.

seeing management treating customers well and following the behavior

A deed, performance, or effort that cannot be physically possessed is called a(n) ______

service

When there is a service failure, customers typically want some sort of material compensation that offsets their inconvenience or loss. In other words, they want ______.

tangible restitution

The marketing metric used to evaluate if a firm is performing on the five service quality dimensions by finding the minimum level of acceptable service is ______.

the Zone of Tolerance

The zone of tolerance refers to ______.

the area between customers' desired expectations and the minimum level of acceptable service

Select all that apply One of the best methods to ensure that guests at Hilton Hotels receive quality service is to solicit suggestions and feedback from whom? (Choose every correct answer.)

- Employees - Guests

Select all that apply A business that experiences service delivery gaps can use which of the following methods to improve the quality of its service? (Check all that apply.)

- Implement self-service technologies - Empower employees to work in the customer's best interest - Provide incentives and support for service providers

Select all that apply Which of the following are benefits that a service provider receives from engaging in effective service recovery? (Check all that apply.)

- Increased purchase intention - Improved word of mouth

Which of the following is an example of a high tech, high human effort service interaction?

A brain surgeon using a minuscule robot to make microscopic incisions.

Empowerment of employees would be most important in which of the following service situations?

A bride is unhappy with the hair style the stylist has created on the morning of her wedding.

Which of the following products or services is considered perishable in the sense that it cannot be stockpiled?

A dental exam

Which of the following is an example of tangible restitution?

A voucher for a free night in a hotel

Lisa is a manager at a customer service call center for a footwear manufacturer. One of the customer service representatives, Mark, is upset because he just finished a call in which the customer berated him for the poor quality of a pair of shoes. Mark is worried that he may be punished for offering the customer a refund and a 20% discount on her next pair of shoes, but Lisa reassures him that he made the right decision and tells a few jokes to get his spirits up. What type of support has Lisa provided?

Emotional

True or False: The zone of tolerance is a program that collects customer inputs and integrates them into managerial decisions.

False

According to the Service Gaps Model, which of the following is NOT one of the gaps that might be encountered by a service provider in meeting the customer's needs?

Financial

Which of the following is most likely to lead to high levels of customer loyalty?

High customer satisfaction ratings

The Service Gaps Model can be very useful to improve the delivery of services. Match each of the following gaps with an example of that gap.

Knowledge ---> Diners at a restaurant think the portions are too small, but the manager is unaware of this complaint. Standards ---> Management believes that customers in a restaurant think the service is very slow, however, management allows servers to stand around and chat. Delivery --> A restaurant usually serves fresh bread made on the premises, but at the end of the day the ovens are shut down early and only cold loaves are available. Communication --> A restaurant advertises they are open for breakfast, but when guests arrive on Sunday morning, there is a sign on the door indicating they only open for brunch at 11:00.

Match each type of service gap (on the left) with the corresponding way of achieving closure (on the right).

Knowledge gap ---> Conduct research to better understand what customers want. Standards gap ---> Set appropriate service goals and measure service performance. Delivery gap ---> Improve employee performance through support, incentives, and the use of technology. Communications gap ---> Be realistic in telling potential buyers about the services that can be provided and manage those customer expectations effectively.

Which of the following is an example of a service?

Massage

Mike is the manager of a sandwich shop and received a complaint from a customer unhappy because it took too long to get his food. Mike apologized to the customer and sent him a coupon for a free sandwich for the next time he visited. Why is it important for Mike to listen to the customer and provide feedback?

Mike is able to identify a way to improve service; he can schedule labor appropriately and set benchmarks.

Match each of the five dimensions of service quality (on the left) with its definition (on the right).

Reliability ---> Ability to perform the service dependably and accurately. Responsiveness ---> Willingness to help customers and provide prompt service. Assurance ---> Knowledge and courtesy by employees and their ability to convey trust and confidence. Empathy ---> Caring, individualized attention provided to customers. Tangibles ---> Appearance of physical facilities, equipment, personnel, and communication materials.

An interior design consulting firm offers a $100 gift card to the employee with the highest customer satisfaction scores at the end of each month. Which method of eliminating the delivery gap is this an example of?

Rewards and incentives

A golf course manager is concerned about the quality of service the staff is providing to guests and wants to implement some changes. What is the best way to ensure that employees buy into the plan?

Seek employee input when setting goals

One of the most effective methods to assess how well a firm is delivering adequate service to consumers is to employ the ______ Model to evaluate their service provision.

Service Gaps

Which of the following usually leads to the best outcome for a service failure?

The company works with the customers to find a solution.

Marissa works for a local restaurant. Each time a customer reports a compliment to a manager about an employee, the employee receives a star pin to wear. What is the advantage of the "star pin" to the restaurant and Marissa?

The star pin is a reward that reinforces the provision of excellent customer service and makes the employee feel recognized.

Jane has multiple managers at her retail job. It is company policy that customers cannot return items without a receipt, but sometimes managers will allow customers to receive store credit for their returns. One day a customer was irate that Jane would not allow a return for store credit because the manager on duty adhered to the company policy. The customer wrote a complaint about Jane to the corporate office. What needs to change about this situation?

The support that managers provide must be consistent and coherent throughout the organization.

Is providing rewards to employees for excellent services a key part of customer service program? Why or why not?

Yes, rewards reinforce behavior that encourages employees to continually give great service.

A firm wants to understand both the customer's expectations for service and the minimal level of service he or she will accept before going elsewhere. Which marketing metric should the firm study?

Zone of tolerance

Heterogeneity in service delivery at a restaurant can result from all of the following EXCEPT ______.

a manager who designs a specific way for all hostesses to accept reservations over the phone

Customer service is best represented by which of the following statements? Customer service ______.

adds to marketing efforts by helping to meet the customers' needs and wants

One of the side benefits of listening to customers' complaints is that ______.

airing the complaint can be very therapeutic for the buyer

Since service delivery is not always uniform, it is important for the provider to be sure to close the ______ gap and not promise more in their messages to buyers than they can deliver on a regular basis.

communications

An effective method to assess customer service expectations is to analyze customer ______ behavior in which management is told by buyers what dissatisfies them.

complaint

In delivery of a service, one of the most important early steps is addressing the knowledge gap, or the ability to understand ______.

consumer expectations

Under normal conditions, the hotel never runs out of towels, but during Christmas vacation when the hotel is filled with families, there is a ______ gap and the hotel laundry cannot keep up with the linen usage.

delivery

______ fairness refers to customers' desire to be compensated a fair amount to correct a perceived loss that resulted from a service failure.

distributive

Janet had to deal with a very difficult customer who wanted to be given complimentary services such as free flights and upgrades on future flights when he very vocally complained in the airport about delays and lost luggage. He screamed at Janet and was very offensive. Her supervisor made Janet feel a little better about the unsettling experience by offering ______ support and commending her on how she handled the difficult passenger.

emotional

An airline employee is able to make a decision at the moment of assigning a passenger a seat at the gate when it is obvious the flier is in a wheel chair. The firm has _____ the employee by allowing him to move the passenger to first-class seating.

empowered

When a firm such as Ruth's Chris Steak House tells servers to "use your best judgment" in serving a customer who is not satisfied with his or her $40 steak, it is allowing the server to make decisions at the point of delivery. This is called ______.

empowerment

A continuing dilemma for marketers of services is to understand buyers' ______, which means to understand in advance what they think will be delivered based on their previous experiences and knowledge.

expectations

A restaurant is facing a problem in service delivery on a night when there are twice as many customers dining as usual. An integral part of recovery of the service dilemma is to provide both distributive and procedural ______ in resolving the delays in getting all customers served.

fairness

When a hotel has a service delivery problem such as a broken air conditioning system on a very hot weekend, one critical element of service recovery is to ______.

find a solution that seems fair to all customers

One difference between products and services is demonstrated by a hair salon, where the stylist delivers the service at the same time the customer receives it. This is called ______.

inseparability

One of the basic ways in which services differ from products is that production and consumption are ______ from each other. Consequently, service providers often include options for the customer to become more involved in the production of the service, which usually results in greater customer satisfaction.

inseparable

Services are ______, which means that they cannot be touched, tasted, or seen.

intangible

The most fundamental difference between services and goods is that services are ______.

intangible

A service provider offers many amenities that he believes the customer desires, but the delivered services are not what is expected by the customer. This is an example of a ______ gap.

knowledge

The marketing manager needs to communicate with customers and employees on an ongoing basis in order to understand buyers' expectations and to reduce the ______ gap.

knowledge

One of the first steps in service recovery is that the firm needs to allow the customer to air his grievance and for the firm to ______ him.

listen to

The delivery of quality service is the task of everyone in the firm, but the commitment to quality service is established and illustrated best by _____, which establishes policy and sets examples for the entire company.

management

Previously, retailers offered no-questions-asked returns but have changed policies in recent years due to customers who took advantage of the policy. Since most buyers appreciate ______, some stores have instead instituted a 90-day limit on returns, as that is a reasonable amount of time for a consumer to decide whether to keep the item.

procedural fairness

Despite having to deal with difficult guests, the service provider can be motivated to provide "service with a smile" when the firm ______.

provides support and incentives to motivate quality service

Service providers provide instrumental support to their staff by ______.

providing systems and equipment to do the job properly

Poor service delivery can be converted into a positive interaction through service ______, an effort that resolves the problem fairly and shows the buyer that the firm is listening to the complaint.

recovery

Firms are able to gain a better understanding of customers' service expectations by using quantitative and qualitative market ______, which can be extensive and expensive.

research

One of the most important factors for adequate service recovery is for the provider to ______.

respond to the customer and resolve the problem quickly

Customer ______ refers to human or mechanical activities undertaken by firms to help satisfy their customers' needs and wants.

service

When setting and explaining service goals during employee training, it is most important that the goals be ______.

specific

Involving employees in setting service performance goals can be very instructive in helping a firm reduce the ______ gap as it increases their input into systematizing the expected output.

standards

McDonald's has a policy that, in addition to ketchup, mustard, and onions, all burgers must have two pickles. This contributes to efforts to reduce the ______ gap and provide measurable service quality based on expectations.

standards

A restaurant delivers particularly bad service at lunch one Tuesday. One of the biggest problems with the marketing of such services is that the restaurant service providers cannot ______.

undo "bad" service and often are unaware of the extent of the problem until the buyer complains

A financial advisement company knows that it takes approximately six months to improve a customer's credit score. Whereas some customers improve their score in as little as three months, others take up to a year. Which of the following promises will help attract customers while also reducing the firm's communications gap?

"Improve your credit score in one year or less!"

Select all that apply What are some ways in which customers' expectations can be managed when a service is delivered? (Choose every correct answer.)

- Automated messages telling customers calling customer service how long they will be on hold - Retailers warning customers when supplies of sale items are limited - Notifications informing online customers when items are out of stock

Select all that apply A customer who is dissatisfied with a restaurant's service delivery and finds it to be quite different from what was promised in the advertising is very likely to do which of the following? (Choose every correct answer.)

- Communicate the negative experience via the Internet - Communicate the negative experience via word of mouth - Not return to the restaurant

Select all that apply Which of the following are examples of problems associated with collecting customers' perceptions of service at the time of sale? (Choose every correct answer.)

- Customers may need more time to accurately evaluate the service. - Customers may not want to share negative feedback directly. - Information may not filter up to key decision makers.

Select all that apply What are the benefits for service providers of using technology? (Choose every correct answer.)

- It creates less heterogeneity than human service providers do. - It offers customers access to a wider variety of services and information. - It gives customers increased control over the service.

Select all that apply Which of the following are characteristics that make marketing services different from product marketing? (Choose every correct answer.)

- Perishability - Intangibility - Heterogeneity

Select all that apply Which statements about dealing with service failures are true? (Choose every correct answer.)

- The proper approach can create a somewhat positive outcome from a negative experience. - Teamwork between the company and customers usually gives the best result. - The company should find a way to involve customers in the actual resolution process.

Select all that apply Which of the following are potential sources of heterogeneity of service quality at a hair salon? (Choose every correct answer.)

- The same hair stylist working at different times of the day, week, or month. -Two different hair stylists working at the same location.

Select all that apply What are some common problems caused by the use of technology in a service setting? (Choose every correct answer.)

- The technology does not perform adequately. - Customers dislike replacing humans with machines. - Customers do not understand how to use the technology.

Select all that apply What is the purpose of the "management by walking around" strategy? (Choose every correct answer.)

- To have managers understand what their service providers face each day - To provide opportunities for managers to interact with customers directly

Select all that apply Which of the following actions are associated with voice-of-customer programs? (Choose every correct answer.)

- Using customer input to make management decisions. - Assessing the degree to which customer needs are being met. - Gathering customer feedback

Match each type of service gap (on the left) with its definition (on the right).

Knowledge gap ---> The difference between customer expectations and what the firm perceives the customer to expect. Standards gap ---> The difference between the firm's perceptions of customers expectations and the service standards it sets. Delivery gap ---> The difference between the firm's service standards and the actual service it provides to customers. Communications gap ---> The difference between actual service provided to customers and the service that the firm's promotion program promises.

Mary went to the local supermarket, where she shopped regularly, to purchase her groceries for the week. Which of the following was a delivery gap that resulted in a service failure by the grocery store?

Mary had to wait a long time in the checkout line because the clerk kept making errors using the cash register.

Lilly went to the Yummy Fork for lunch, and when her food arrived, it was not what she ordered. She later posted a negative comment about the Yummy Fork on a blog. Which one of the five service dimensions was used by Lilly to determine she did not like the service by the Yummy Fork?

Reliability

An important element of offering emotional support to employees is to ______ when they have been empowered to make decisions in dealing with the customer.

avoid punishing them

A straightforward and inexpensive method that marketing managers can employ to collect information about buyers' service quality perceptions is to ask them at the point of sale. A problem with this method, however, is that ______.

customers are often reluctant to provide negative feedback to the employee who provided the service

One of the distinct advantages of heterogeneity of services is that it enables the provider to ______ the service and not deliver a standardized, cookie-cutter approach uniformly to every buyer.

customize

The _____ gap is the difference between a company's standards and the actual service it provides to customers.

delivery

One method to recover from a service delivery problem is to provide ______ fairness, by which customers perceive they are getting an equivalent return for the inconvenience they suffered when the service was not delivered as expected.

distributive

If a customer issues a complaint about poor service but is compensated in a way that he or she feels offsets the inconvenience of the service failure, the customer has received ______.

distributive fairness

The failure of a service to meet the customer's expectations is known as a service ______.

gap

Jane has realized that she does not enjoy taking a taxi to work because there is substantial ______ in the delivery of the service depending on who is driving her cab that day.

heterogeneity

One of the characteristics that makes services different from product marketing is the fact there is tremendous ______ in delivery based on how the provider is performing the task at different times. The same waiter, for example, might provide excellent service one day, and the next day, when he is not feeling well, his delivered service might be terrible.

heterogeneity

Since humans' work output cannot be standardized to the same degree as the output of a machine, one substantial difference between the marketing of services and products is the ______ of service delivery.

heterogeneity

One of the best ways for managers to reduce the ______ gap is to conduct ongoing research and regularly talk with employees to explain what customers expect to get from the brand and the firm.

knowledge

The ______ gap shows the difference between a customer's expectations and what the company thinks the customer expects.

knowledge

One of the problems in using customer complaint behavior to assess buyers' service expectations is that ______.

managers often are more concerned with resolving the complaint than analyzing the essence of the problem

A customer's expectations for a single service provider might vary substantially based on the ______.

specific situation

The _____ gap is the difference between the company's perceptions of the customer's expectations and the service standards it sets.

standards

The manager of a four-star hotel learns that the bathrooms in the hotel are receiving complaints for being dirty. He believes that hotel guests are being too picky and he decides not to instruct housekeeping to clean the bathrooms more thoroughly. Because the hotel does not change the cleaning policy, there is a ______ gap.

standards

A customer with a complaint about the way in which a washing machine repair was made will become increasingly more annoyed with the service provider ______.

the longer it takes to get an answer from the firm

Procedural fairness is defined as ______.

the perceived fairness of the process used to solve complaints