Chapter 13 SmartBook

True

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

Personnel Presentation Process

In addition to the traditional four Ps of marketing (product, price, place, and promotion), what are the additional three marketing Ps necessary for services? Personnel Practice Presentation Process

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

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 manager on duty should have taken control of the situation and given the customer a store credit to make them happy. The store needs to only have one manager in order to adhere to all company policies. The manager should have praised Jane for dealing with a difficult customer. The support that managers provide must be consistent and coherent throughout the organization.

Place

A convenient location and a presence on the Internet are both important characteristics of which of the marketing Ps for services? Presentation Processes Personnel Place

the longer it takes to get an answer from the firm

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 ______. as the compensation becomes more tangible the longer the service provider listens to his or her complaint the longer it takes to get an answer from the firm as the perceived fairness of the process increases

the longer it takes to get an answer from the firm

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 the longer the service provider listens to his or her complaint as the perceived fairness of the process increases as the compensation becomes more tangible

fairness

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.

empowered

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. incentivized rewarded empowered supported

complaint

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

avoid punishing them

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 encourage the customer to be upset encourage the employee not to be supportive let them talk back to the customer

Rewards and incentives

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? Use of technology to facilitate service delivery Rewards and incentives Emotional support Instrumental support

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

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 mandates that all customer needs must be met ensures that customers become lifelong customers defines the task of marketing an intangible or primarily intangible item

provides support and incentives to motivate quality service

Despite having to deal with difficult guests, the service provider can be motivated to provide "service with a smile" when the firm ______. does not deal with unruly customers and removes them from the service list establishes a policy for the firm that the customer is NOT always right provides frequent training programs for employees provides support and incentives to motivate quality service

provides support and incentives to motivate quality service

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 does not deal with unruly customers and removes them from the service list establishes a policy for the firm that the customer is NOT always right provides frequent training programs for employees

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

Drag each approach for achieving closure to the type of service gap it corresponds to.

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

Drag each definition to its corresponding type of service gap.

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

Drag each definition to the corresponding dimension of service quality.

research

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

research

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

measurable goals that are based on customer expectations

For the marketing manager to be able to deliver consistent quality service, it is imperative to set ______. high employee-to-customer ratios high prices to impart high quality measurable goals that are based on customer expectations general goals based on employee feedback

distributive fairness

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 ______. the zone of tolerance tangible restitution procedural fairness distributive fairness

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 for the hotel to close the _____ gap.

be consistent and predictable in their support

In addition to empowering and rewarding service providers, as well as offering instrumental support, service managers are advised to ______. remind the provider that the customer is always right be consistent and predictable in their support employ part-time providers so it is easier to fire them in the event of a problem support the customer publicly and the service provider privately

incentives

In addition to providing service employees with emotional and instrumental support, management should offer the staff ______ that reward them for providing customers with good service. pensions better benefits incentives more hours

consumer expectations

In delivery of a service, one of the most important early steps is addressing the knowledge gap, or the ability to understand ______. demand for the service costs and profitability how to handle a service failure consumer expectations

Intangibility

In its marketing, Singapore Airlines might present the airline's new seats and emphasize their size in order to address which issue that is unique to services? Inconsistency Inventory High cost Intangibility

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

Is providing rewards to employees for excellent services a key part of customer service program? Why or why not? No, employees should provide excellent service regardless of rewards. Employers are already paying for them to provide services. Yes, but it depends on whether or not the company culture calls for employees to receive rewards. Yes, rewards reinforce behavior that encourages employees to continually give great service. No, rewards make the provider perform only in order to get the reward and do not really encourage employees to provide good continuous service.

heterogeneity

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. price differential heterogeneity intangibility perishability

heterogeneity

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. price differential intangibility heterogeneity perishability

emotional

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. instrumental financial emotional physical

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

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 ask others in the industry what they know about customers' expectations. Joe should primarily use information gathered through the Internet on his industry. Joe needs to engage in structured market research on his industry and brand. Joe should choose a time to watch his customers interact with services and workers in the store and make his best educated guess.

Reliability

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 Empathy Assurance Tangibles

Emotional

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? Instrumental Emotional Financial Institutional

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

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. Customers will wait for a server who is wearing the star pin and avoid those who are not "starred." The star pin allows employees to individualize their service. The star pin will help increase restaurant sales and will help Marissa make more tips, since it shows she knows what she is doing.

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

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 did not find a parking spot that was as close as she wanted to the store. Mary had trouble finding the coffee aisle because the signs were unclear. It took Mary a little longer to find what she needed since they recently remodeled the store. Mary had to wait a long time in the checkout line because the clerk kept making errors using the cash register.

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 knowledge delivery communication

inseparability

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 ______. intangibility perishability heterogeneity inseparability

distributive

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. pricing consumer procedural distributive

inseparable

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. intangible perishable infinite inseparable

knowledge

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. delivery knowledge communication standards

listen to

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 reduce prices for reward ignore

Service Gaps

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. Intangibility Service Recovery Knowledge Service Gaps

Service Gaps

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 Intangibility Knowledge Service Recovery

respond to the customer and resolve the problem quickly

One of the most important factors for adequate service recovery is for the provider to ______. find a solution that costs the company the least amount of money possible allow the customer to solve the problem on his or her own respond to the customer and resolve the problem quickly guarantee that all problems will eventually be resolved in the order in which they occur

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 delivery standards knowledge

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

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? (Choose every correct answer.) Empower employees to work in the customer's best interest Ask each customer what level of service he or she expects when he or she enters the business Implement self-service technologies Provide incentives and support for service providers

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

Select all that apply What are some common problems caused by the use of technology in a service setting? The technology does not perform adequately. Customers do not understand how to use the technology. The technology is less efficient than a human. Customers dislike replacing humans with machines.

Perishability Intangibility Heterogeneity

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

perishability

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 ______. infinity perishability intangibility inseparability

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

Service quality is defined as ______. customers' expectations for the service customers' perceptions of how well a service meets or exceeds their expectations the ways in which a service communicates its value despite its intangibility managers' perceptions of how well a service matches the standards it was designed to meet

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.

The Service Gaps Model can be very useful to improve the delivery of services. Drag each example to the type of gap it exemplifies.

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 communications standards delivery

intangible

The most fundamental difference between services and goods is that services are _____. homogeneous cheaper incentives intangible

human inputs generate differences

The primary reason there is greater heterogeneity in services than in products is because ______. cost inequities generate differences of unknown outcomes on the buyer's part human inputs generate differences of the increasing use of technology in delivering services

offer cues to customers, such as comfortable waiting rooms and sparkling clean examination rooms with diplomas on the wall

To address the intangible nature of services provided and allow patients to compare them to the services provided by others, a medical provider may ______. increase the price to convey an aura of quality to reduce buyers' anxiety standardize the service as much as possible by using increasingly fewer employees and more automated services and measurements offer cues to customers, such as comfortable waiting rooms and sparkling clean examination rooms with diplomas on the wall reduce the price of services offered through special promotions and deals to reduce buyers' anxiety

perishability

United Airlines flies a plane from LA to NY at 8 o'clock on Tuesday morning only 25 percent full. On Friday, the same flight is overbooked by 15 percent. United is unable to capture and save the unused seats from the previous flight, and instead has to pay passengers to fly on future flights. This is an example of the ______ of services. variability intangibility perishability self-service

Presentation, personnel, and process

What are the three Ps that specifically address the greater complexities needed for providing services? Presentation, personnel, and process Process, planning, prediction Personnel, practice, prediction Practice, planning, Presentation

The technology will be too challenging for some customers.

What problem might occur if a grocery store decides to install self-checkout devices? The technology will be too challenging for some customers. The technology will be less accurate in counting money than human employees. The technology will be more expensive in the long run than paying human employees The technology will lead to customers purchasing fewer items.

empowerment

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 _____.

find a solution that seems fair to all customers

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 ______. offer the customers who complain the most an equivalent number of nights free on a future stay ask each customer who complains what they feel would be equitable find a solution that seems fair to all customers offer the most frequent customers an equivalent number of nights free on a future stay

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

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 ______. inform students that the problem cannot be fixed during the current term but their complaints will be used to address the issue in the next semester reduce the price of courses to all students in order to overcome the anger and anxiety many students are experiencing honestly listen to students' complaints and use their messages to build a committed relationship record the complaints and analyze all data in the future after all parties involved have subdued their emotions

Improved word of mouth Increased purchase intention

Which of the following are benefits that a service provider receives from engaging in effective service recovery? (Check all that apply.) Lower service costs Improved word of mouth Increased purchase intention Higher levels of customer satisfaction than prior to the service failure

Volatility

Which of the following characteristics is NOT one that distinguishes services from products? Intangibility Perishability Inseparability Heterogeneity Volatility

Providing technology and instrumental support at the facility

Which of the following is NOT a method by which managers can provide rewards and incentives to employees? Recognizing them in company newsletters Providing bonuses based on performance Designating an employee of the month parking spot Providing technology and instrumental support at the facility

Threaten to terminate employees

Which of the following is NOT a method to reduce delivery gaps? Empower employees Use technology to minimize errors Provide support and incentives Threaten to terminate employees

High customer satisfaction ratings

Which of the following is most likely to lead to high levels of customer loyalty? High levels of customer dissonance High customer satisfaction ratings Low prices Intangible compensation for service failures

A dental exam

Which of the following products or services is considered perishable in the sense that it cannot be stockpiled? A box of candles A package of gum A dental exam A pair of shoes

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

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. At a picture framing store, employees are told to ignore unruly, dissatisfied customers and wait on other buyers first. At the return desk at a large home repair store, employees are taught not to accept any item that is no longer in an unopened package. At a dry cleaning store, employees are told not to charge unhappy customers but to enter their name on a "black list" of clients.

distributive

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

Blank 1: service

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

respond to the customer and resolve the problem quickly

One of the most important factors for adequate service recovery is for the provider to ______. find a solution that costs the company the least amount of money possible respond to the customer and resolve the problem quickly allow the customer to solve the problem on his or her own guarantee that all problems will eventually be resolved in the order in which they occur

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

One of the problems in using customer complaint behavior to assess buyers' service expectations is that ______. it is very costly to collect and process given the value of the information it is extremely time consuming and is essentially dated by the time it is processed managers often are more concerned with resolving the complaint than analyzing the essence of the problem managers usually do not respond to customer complaints so there is no record of the information

perishability

One of the traits of service marketing is ______, meaning the service must be delivered at a specific time or it is lost. intangibility variability perishability self-service

recovery

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. repetition recovery recognition repositioning

Blank 1: intangible or intagible

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

a process

Services are deeds or performances done for and with customers. They typically are ______ involving a sequence of steps or actions. an event a phenomenon an activity a process

a process

Services are deeds or performances done for and with customers. They typically are ______ involving a sequence of steps or actions. an event an activity a phenomenon a process

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.

True

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

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

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 ______. reduce the price of courses to all students in order to overcome the anger and anxiety many students are experiencing record the complaints and analyze all data in the future after all parties involved have subdued their emotions honestly listen to students' complaints and use their messages to build a committed relationship inform students that the problem cannot be fixed during the current term but their complaints will be used to address the issue in the next semester

Services are actions or performances carried out for and with customers and typically involve a sequence of steps, actions and activities.

Which of the following statements best describes services? Services are actions or performances carried out for and with customers without involving a sequence of steps, actions and activities. Services are actions or performances carried out for the benefit of the organization, typically involving a sequence of steps, actions and activities. Services are actions or performances carried out for and with customers and typically involve a sequence of steps, actions and activities. Services are actions performed for customers and typically involve only ideas. Services are activities or deeds carried out for the benefit of the organization and typically involve training and follow-up.

A presence on the Internet

Which two of the following are important considerations for place in the marketing of services? A presence on the Internet A convenient location The intangible nature of services The concept of services as processes

Distributive fairness

______ is a customer's perception of the benefits received compared to the costs. The standards gap Procedural fairness Price expectation Distributive fairness