MARK 3000 - Ch. 13 Practice Problems

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

High customer satisfaction ratings

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

standards

Service quality is defined as...

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

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

delivery

What are the three Ps that specifically address the greater complexities needed for providing services?

Presentation, personnel, and process

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

volatility

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

Drag each definition to its corresponding type of service gap. Standards Gap

The difference between the firm's perceptions of customers expectations and the service standards it sets

Drag each definition to its corresponding type of service gap. Delivery Gap

The difference between the firm's service standards and the actual service it provides to customers

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.)

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

Drag each definition to the corresponding dimension of service quality. reliability responsiveness assurance empathy tanigibles

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

Drag each example to the correct trait of services that affect price. Instructions Heterogeneous

On Fridays and Saturdays, the staff is different from the staff on weekdays, and the normal process is shortened from 55 to 45 minutes per customer.

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 ...

Standards Gap

Drag each example to the correct trait of services that affect price. Instructions Perishable

There is a queue on Friday and Saturday afternoons, but those time slots cannot be inventoried for when there is no demand.

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

Threaten to terminate employees

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

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...

communication

______ gap refers to the difference between the service a company provides to customers and the service that it promises to provide in its advertisements.

communication

A hotel advertises package deals that include tickets to a nearby theme park. When the customer asks for this offer, he is informed they are sold out as only a limited number of tickets were available. The customer experiences a ______ gap and is very unhappy. Multiple choice question.

communications

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.

communications

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

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

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

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

gaps

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

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?

intangibility

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 ....

listen to him

To address the intangible nature of services provided and allow patients to compare them to the services provided by others, a medical provider may ...

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

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

place

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

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

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

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

Drag each approach for achieving closure to the type of service gap it corresponds to. Instructions Knowledge Gap Standards Gap Delivery Gap Communication Gap

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

Drag each example to the correct trait of services that affect price. Instructions Intangible

It is difficult for the salon to convey the benefits of a new type of hand treatment.

Drag each definition to its corresponding type of service gap. Knowledge Gap

The difference between customer expectations and what the firm perceives the customer to expect

Which of the following statements best describes services?

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

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.

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.

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

a dental exam

Services are deeds or performances done for and with customers. They typically are ... involving a sequence of steps or actions.

a process

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

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

customer service

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

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

knowledge gap

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 ... in resolving the delays in getting all customers served.

procedural fairness

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 important consideration for place in the marketing of services?

A presence on the Internet

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

Diners at a restaurant think the portions are too small, but the manager is unaware of this complaint. Management believes that customers in a restaurant think the service is very slow, however, management allows servers to stand around and chat. 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. 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.

Communication Gap

The difference between actual service provided to customers and the service that the firm's promotion program promises

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. Multiple choice question.

delivery

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

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

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

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

true

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

intangible

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

- heterogeneity - intangibility - perishability

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.

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

distributive fairness

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

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

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 ...

perishability of services

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

presentation process personnel

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

respond to the customer and resolve the problem quickly

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

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

specific