MKT 4050 Exam 2, Service Marketing Exam 2, Services marketing 5, Chapter 6: Building Customer Relationships, Chapter 7: Service Recovery, Chapter 10: Physical Evidence and the Servicescape, Chapter 8: Service Innovation and Design
Which of the following is an example of a remote service environment?
Carolina Power, an electricity provider
Importance/Performance Matrix
Chart with Importance on the Y axis and Performance on the X. The graph is now separated into 4 quadrants with attributes to improve, maintain, and de-emphasize (see ch. 5 notes)
When you visit the web site for Hyatt hotels, you can look at pictures of its newest hotels, register for its continuity programs, and make reservations quickly. Because the site is inviting, attractive and fun to browse, customers perceive the Hyatt hotels to also be this way. By designing it this way, Hyatt has used:
Clue management
-Elaborate -Lean
Complexity of the Servicescape can be described in 2 ways:
Sondra has been having her haircut by Logan, a hairstylist at Dazzles, for five years. She has continued to use the same hairstylist even though the price of a haircut at Dazzles is $10 higher than at competing hair salons. Logan does an excellent job cutting her hair and staying up to date on the latest hairstyles and hair care products. Sondra realizes _____ benefits from her relationship with Logan.
Confidence
Beyond the specific inherent benefits of receiving service value, customers also benefit in other ways from long-term associations with firms. The three types of relational benefits for customers are:
Confidence benefits; social benefits; special treatment benefits
The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is a voicer type when it comes to complaining would react to this by:
Confronting the carpenter at another job site and demanding to know when he would be back to finish the floor
_____ arise(s) when the customer is required to pay a penalty to switch providers.
Contractual costs
While most KFC restaurants look alike, there is one in Marietta, Georgia, that is in the base of a 56-foot tall chicken replica with rolling eyes and a moving beak. In this example, the servicescape is acting as a:
Differentiator
Qualitative Research
Discovery/identification of new ideas, thoughts, feelings - open ended questions
In a Federal Express overnight delivery service blueprint, which of the following is an example of an onstage contact employee action?
Federal Express driver picks up package from customer
Participants in the Coffee Café's loyalty program get a free large cup of coffee after every 10th cup of coffee purchased. After purchasing 100 cups of coffee from the Coffee Café, loyalty program participants receive a $10 gift certificate good for food and beverage items or merchandise. Coffee Café uses _____ to encourage its customers to remain loyal.
Financial Bonds
Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals, and other hotel amenities. Marriott is using _____ to implement its retention strategy.
Financial bonds
Members of Sam Goody's Replay Frequent Buyer Program receive a $15 gift certificate for every $150 in purchases made at Sam Goody, as well as a coupon each month for a 20-25 percent discount on the purchase of an unlimited number of CDs and/or cassettes from a specific music category. Sam Goody's Replay Frequent Buyer Program uses _____ to implement its retention strategy.
Financial bonds
The carpenter came to install the new flooring in the Stephenson's kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is an irate type when it comes to complaining would react to this by:
Firing the first carpenter and hiring another one who is willing to complete the job
A consumer is more likely to complain when the:
Flowers he ordered for his wife's birthday are not delivered
Lead user research
It asks opinion leaders/innovators about the requirements that are not being met by the current products or services
What is true of employee research?
It complements customer research during the investigation of servicequality
What is true of service research?
It focuses mainly o capturing human performance
What is a true statement about lost customer research in service research programs
It involves asking open ended questions to identify the reasons for defection
True statement about the critical incident technique
It provides accurate information about the behavior of a company and its employees
Features research
It scans the environment and queries customers about the features tehy desire in services
Which of the following is an element of the servicescape for the Fred Astaire Dance Studio?
Its parquet dance floor
Switching Barriers
Keep in the relationship b/c they HAVE to stay
Relationship Bonds
Keep in the relationship b/c they WANT to stay
Coinstar is a self-service coin-counter found in many supermarkets. You pour your coins in and the machine counts the coins and gives you bills for an 8.9 percent fee. In terms of servicescape complexity, a Coinstar machine is a(n) _____ service environment.
Lean
Kate recently learned to play golf. Last week, she decided to try a new golf course. She signed in to play and was given the keys to an electric golf cart without any instructions on how to operate it. After she drove the cart into a lake, she swore never to play golf again. According to Kate, "There are just too many things you have to know before you can become a real golfer". Two months later, the golf course manager called Kate and asked why she had not returned to play another game. Which service recovery strategy is being used in this example?
Learn from lost customers
When its sales were declining, Canadian Airline conducted a marketing survey to understand the expectations of the business traveler, its target market. It learned business travelers resent that they are bosses in their own offices but are totally controlled by the whims of the airlines when they travel. If Canadian Airline had only surveyed former customers who were still in their database, it would have used which service recovery strategy?
Learn from lost customers
A retail store manager instructed two new sales associates to greet customers quickly when they enter the store. On the first day the sales associates are working on the selling floor, one sales associate greets customers immediately after they enter the store, while the other associate greets customers after they have looked around for a minute or two. Which of the following risks incurred by describing services in words alone has led to the sales associates greeting customers at different time intervals?
Biased Interpretation
Once an organization that is developing a physical evidence strategy has recognized the strategic impact of physical evidence, it should next:
Blueprint the physical evidence of service
All of the following are strategic roles of the servicescape EXCEPT:
Boundary Spanner
According to the _______, while advertising, sales and promotions pour profits into your company, there will always be some customer defection, which has the potential to grow larger.
Bucket Theory of Marketing
Retention strategies based on social bonds:
Build long-term relationships through social and interpersonal as well as financial bonds
During which stage of the service innovation and development process are demand analysis, revenue projections, cost analyses and operational feasibility assessed?
Business analysis
The first step in the new service-development process is:
Business strategy development or review
New Bedford College has a two-year masters degree program designed for special education teachers. Thirty-five students enter the program each fall. The education department requires that the 35 students take the same classes. Classes are made available in sequence. If Beth wanted to take only one special education class to get her a teaching certificate in learning disabilities (LD), she would be unable to because she would not be able to participate in any carry-over projects from previous classes (This is a common teaching tool for the New Bedford education department faculty.). New Bedford College will avoid setting up a relationship with Beth because:
She is in the wrong segment
The McDonald's arches and the Toys "R" Us mascot Geoffrey Giraffe are both examples of which composite dimension?
Signs, symbols and artifacts
Many people expect checkered tablecloths and bottles of Chianti wine at Italian restaurants and fortune cookies at Chinese restaurants. These are both examples of which composite dimension?
Signs, symbols, artifacts
Which of the following service organizations has an elaborate environment?
Six Flags over Texas
Elmer Jennings is a government auditor and works for the Bracken and Leach firm. He is the one who checks to see that city and county governments have complied with accounting principles. As an auditor, Jennings sometimes will spend six weeks in one office while he checks its accounting records. The closeness of the relationship that Jennings builds with the government employees he works with was realized by Bracken and Leach when Jennings left the firm, went to work for another one and took his clients with him. This is an example of how _____ benefits can be both helpful and harmful.
Social
Every Thursday afternoon for almost twenty years, Jasmine and Tanya have gotten a manicure at the same location. The manicure salon has changed ownership three times and has had two different names during that same period, but Jasmine and Tanya still find it a convenient place to meet and share news about friends and relatives. Jasmine and Tanya's relationship with the manicure salon exemplifies how a service provider uses _____ to support its customer retention strategy.
Social bonds
Miller & Sons Funeral Home has handled all of the funeral needs for the Atwater family since 1957. The family believes that Miller & Sons offers them good value for their dollar and the Miller sons and the Atwater boys played on the same high school football team. Miller & Sons Funeral Home is using _____ to implement its customer retention strategy.
Social bonds
Some retailers have feared that their customers will like the convenience of Internet shopping and quit shopping at their stores. To combat this, many mall retailers have tried to create a shopping experience that is entertaining because they believe that Internet retail sites are not designed to be fun. That's why you'll see fashion shows, magic acts, local singers and children's art exhibits at malls. The malls are encouraging _____ behavior.
Social interaction
In some long-term customer-firm relationships, a service provider may become part of a customer's __________ , such as when a hairdresser serves as a personal confidant, or a proprietor of a local retail store is known a central figure in the neighborhood network.
Social support system
A vacuum cleaner repair shop that called recent customers to ask if the people who waited on them were friendly and courteous, if the cleaner had been clean when it was returned to them and if they had any trouble finding the new store is collecting feedback on _____ measurements.
Soft
Traditional thinking has defined _____________ as "bundles of goods and services that companies offer to customers", but customers think of them as sets of customer-facing processes.
Solutions
Canadian Airline did market research to determine the expectations of business travelers-its target market. It learned business travelers don't view air travel as a simple product any more but as a sequential process with a series of customer service interactions which to them seemed at times arbitrary. A traveler could not estimate how much time it would take to make reservations, to check-in, to board or any of the other interactions-the time spent on these activities was typically directly related to the experience and training of the airline's employees. Canadian Airline could provide better service to its highest-yield customers if it could:
Standardize its services
An effective service guarantee would never be described as:
Standardized and/or generic
Whatare customer expectations
Standards or reference points for customers
At Hawkes and Wellington, an upscale men's clothing store, classical music plays softly in the background, while the store's fragrance - a blend of oak, leather and fine tobacco - wafts from carefully placed heat-sensitive pellets. The music and fragrance at Hawkes and Wellington correspond to the _____ in the stimulus-organism-response model.
Stimulus
According to the text, the relationships between businesses and their customers have the ability to evolve. In the first step of this evolution process, customers are identified as:
Strangers
WedSafe is the name of a company that provides wedding insurance. For example, in the event that a wedding is called off, the couple can insure themselves against loss of their nonrefundable deposits. If WedSafe's primary marketing effort is to make engaged couples aware of its services, the company is in which stage of the customer relationship evolution?
Strangers
Often, _____ are created by providing customized services to the client that are technology based and make the customer more productive.
Structural bonds
_________ are created by providing services to the client that are designed right into the service delivery system.
Structural bonds
Rama thought the light blue paint on the walls of the hospital waiting area was a vast improvement over the old brown paint. The repainting of the walls of the service provider is an example of a:
Style change
After an airplane arrives at its gate and passengers disembark, it is cleaned, restocked with food and beverages and refueled by maintenance workers before the next set of passengers board and the airplane departs on its next flight. The activities performed by maintenance workers to prepare the airplane for its next flight is part of which section of the service blueprint?
Support Processes
Elysian Events, a wedding planning company, noted how many couples had a wedding catastrophe of some kind. As a result, it abandoned wedding planning and began offering wedding insurance to protect couples from financial losses due to weather emergencies, stolen wedding rings, damaged wedding dresses, etc. In terms of the service blueprint, preparation of documents to submit to the insurance underwriting company that makes it possible for Elysian Events to offer wedding insurance inexpensively is part of which section of the service blueprint?
Support processes
When Grace wanted to buy a new pair of shoes, she went to Zappos.com because she really likes the wide variety of styles they carry and the free shipping policy. The people at Zappos.com who maintain the company's website, manage the inventory, and ship the shoes are performing:
Support processes
In many instances, customers develop loyalty to an organization in part because of costs involved in changing to and purchasing from a different firm. These costs are called:
Switching costs
Molly and Tom are getting married. Last month they hired a caterer for the wedding reception. This month they attended a wedding for which their chosen caterer had provided food, dishes and flowers. Neither thought the food was good and Molly worried that the dishes looked cheap. However, they feel they cannot change caterers at this date due to the large deposit required by the catering company when it took the job. Molly and Tom do not want to pay:
Switching costs
Molly and Tom are getting married. Last month they hired a caterer for the wedding reception. This month they attended a wedding for which their chosen caterer had provided food, dishes, and flowers. Neither thought the food was good and Molly worried that the dishes looked cheap. However, they feel they cannot change caterers at this date due to the large deposit required by the catering company when it took the job. Molly and Tom do not want to pay:
Switching costs
The carpenter came to install the new flooring in the Stephenson's kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is a passive type when it comes to complaining would react to this by:
Taking no action whatsoever
According to the text, the relationship value of a customer is not influenced by:
The communication strategy
A pseudo-relationship occurs when
The customer interacts many times with the same company, but with different service providers
-Wrong customer segments -Unprofitable customers -Difficult customers
The customer is not always right when they are:
Which of the following is an example of a poka-yoke?
The day care center has carefully labeled bins for each parent to fill with food, diapers, clothes and toys so that one child's stuff will not confused with another's
The first step in delivering high service quality is:
Understanding customer requirements
The gap between customer expectations and management perceptions of customer expectations can be closed by
Understanding the ways to make the best use of research
Key Energy was a company that provided quality oilfield construction, drilling and other services. The company's top management felt stakeholders did not have a clear image of the company and were considering changing the name to clarify the organization's position in the market. Senior management interviewed the company's salespeople to learn how they felt about selling Key Energy's services. As part of examining the corporate image, the company used:
Upward communication
Retention strategies built around financial bonds:
Use price as the primary marketing mix element
Zone of Tolerance Charts
Used to report the findings from a service research study that has collected data on the two levels of customer expectations (i.e., desired service and adequate service) along with customer perceptions of company performance.
Quantitative Research
Validation of facts, estimates, relationships, and predictions - closed ended questions
If the purpose of the service blueprint is to understand the integration of the various elements of the service process, the blueprint should be examined:
Vertically
A business traveler checked into a Hyatt hotel and was given a room next to the elevator. When he turned on the television, he was greeted with a Hyatt customer service survey. He immediately took advantage of having the survey to let Hyatt know how unhappy he was with his room location. The business traveler would most likely be classed as a(n) _____ type.
Voicer
People who complain can be categorized as:
Voicers, irates, activists and passives
Example of market-oriented ethnography
Watching customers eat in resturants to understand their dining preference
-Package (conveys expectations, influence perception) -Facilitator (flow of the service delivery process) -Socializer (interaction btwn customer/employee or customer/customer) -Differentiator (apart from competition)
What are the 4 potential roles of the servicescape?
Which of the following is the BEST example of procedural fairness?
When Tia walked into the salon and asked to have her hair cut, the receptionist pointed to the sign that read, "To keep from inconveniencing our customers, this hair salon will not style the hair of anyone who does not have an appointment"
A(n) _____ is a composite of the perceptual satisfaction or service quality measures collected in an organization.
Zone of tolerance chart
When its sales were declining, Canadian Airline conducted a marketing survey to understand the expectations of the business traveler, its target market. It learned business travelers resent that they are bosses in their own offices but are totally controlled by the airlines when they travel. Canadian Airline instituted gate-side business centers, shower facilities and massage chairs as well as continuous "power to the seat" for those who want to work on their laptops. By listening to its business travelers and providing the services they want, Canadian Airline's sales started increasing. What service recovery strategy did Canadian Airline use?
Learn from recovery experience
By noting that a number of customers had complained about late bus arrivals at one particular stop, the bus line rerouted the bus away from a heavy traffic area. By increasing its miles traveled slightly, the bus was able to improve its arrival time substantially at the stop where it had formerly been perpetually late. Which service recovery strategy did the bus line use?
Learn from recovery experiences
Lifetime Value
Lifetime revenue stream only
The _____ of a customer is the increased value or profit that accrues for each additional customer who remains loyal to a company rather than defecting to the competition.
Lifetime value
One benefit of _____ is that it identifies failure points and common problems in the service and can help establish an early-warning system for future defectors.
Lost customer research
The Cirque du Soleil fused elements of theater with traditional circus skills to create a whole new form of entertainment. Cirque du is an example of a:
Major Innovation
The ability to connect to the Internet through a modem using the same wires that transmit cable television was an example of a _____ when it was first introduced.
Major Innovation
L. L. Bean, the catalog retailer, promises its customers, "100 percent satisfaction in every way, forever". Which service recovery strategy does L. L. Bean use?
Make the service fail safe
With which service recovery strategy is the reliability dimension of service quality most closely associated?
Make the service fail safe
What happens when the top management fails to interact with customer contact personnel?
Management may not understand the changing expectations of customers
For quite some time, Kentucky Fried Chicken (KFC) has grown through providing its service outside the United States. After over two decades of expansion in China, the company is now planning to explore Africa as a new market and expects to double its number of outlets in Africa by 2014. KFC has developed a growth strategy emphasizing:
Market Development
In light of mounting competitive and cost-cutting pressures in the U.S., the need for health care services in Mexico and the potential of the Mexican economy, many U.S. hospitals are expanding their services to Mexico. For example, University Medical Center in Tucson, Arizona, provides continuing education classes for Mexican physicians, a toll-free telephone consultation line into Mexico and air transport service into Mexico. By expanding its services into Mexico, University Medical Center is using a _____ grown strategy.
Market development
The openings of new fast-food franchises are typically highly promoted events-especially when the franchise is new to a geographic area. Special food promotions are offered on the day of the grand opening and sometimes guest appearances. Often if a grand opening event is scheduled for the first of the month, the business will actually start serving customers who happen to notice that it is open during the week prior to the first. In this way, employees can familiarize themselves with their jobs and minor problems can be handled before they become major. This pre-opening practice is most closely related to which stage of the new service-development process?
Market testing
When a guest staying at the Marriott Marquis in New York calls room service to order dinner, which of the following is an example of a backstage contact employee action?
Marriott food service order clerk takes guest's order
Customer retention strategies based on customization bonds:
May include the customer intimacy approach
During the commercialization stage, the service goes live and is introduced to the marketplace. This stage has two primary objectives. One is to build and maintain acceptance of the new service among large numbers of service delivery personnel who will be responsible for day to day service quality. The other is to:
Monitor all aspects of the service during introduction and through the complete service cycle
Since service companies have found that customers differ in their relationship value and that it may be neither practical nor profitable to meet or exceed all customers' expectations, they have divided their target markets according to:
NOT Behavior
The Apple Store's clean, open spaces and white walls create a modern feel and draw all of the customer's attention to relatively few products on display. The Apple Store's servicescape is playing what strategic role?
NOT Facilitator Possible answer: Ambient
To reach business travelers (its largest market) Canadian Airline has installed gate-side business centers where tired business travelers can enjoy a hot shower or sit in massage chairs and listen to soothing music. These amenities are examples of which composite dimension of servicescapes?
NOT Functional forms
Adam was working late in his hotel room when the light bulb in the lamp at his desk burned out. He called the front desk and asked for a replacement bulb. The desk manager told Adam that a new one would be provided tomorrow morning and that he did not have the key to the stockroom. Adam tried to explain how much he needed the light to finish his sales report, but the manager was polite but adamant that he could not help. This example illustrates lack of:
NOT Interactional fairness Possible answer: Outcome fairness
Based on servicescape usage, a convenience store is a(n) _____ environment.
NOT Interpersonal services
During which stage of the service innovation and development process does a service firm produce a description of the service that represents its specific characteristics and features?
NOT Service development and evaluation
Two decades ago, travelers needing a place to rest for the night looked for the large, multi-colored Holiday Inn signs. Eventually, the signs started looking dated and seemed to remind people of early times even though the motel chain knew travelers wanted to stay in modern rooms with all the latest amenities. Holiday Inn recognized the signs were sending the wrong message during which stage of the physical evidence strategy?
NOT Update and modernize the physical evidence or Assess and identify physical evidence opportunities
To make car maintenance service more tangible to consumers, Speedi-Lube has added a large diagram on one of the waiting room walls of its service centers that shows the underside of an automobile and identifies all of the lubrication points and exactly what work is being done to the car. As part of its physical evidence strategy, Speedi-Lube has:
NOT Updated and modernized its ambient evidence or Mapped the physical evidence of the service
In addition to compensation, customers expect _____. In other words, they expect fairness in terms of policies, rules and timeliness of complaint process.
Procedural fairness
Many frequent flyers have missed their flights due to long, slow security checks before being allowed to enter the airline's terminal. This policy designed to ensure safe flights has resulted in problems associated with perceived:
Procedural fairness
When the dentist's office bills the patient who had an appointment but did not show up for it and did not cancel the appointment, it is an example of _____ because the patient was made aware of the policy before making the appointment.
Procedural fairness
Rather than treating all of its customers the same, FedEx categorized its customers internally as "the good, the bad, and the ugly" based on their ___________.
Profitability
In acquaintance relationships, firms generally focus on:
Providing value comparable to the competition
_____ research is conducted to clarify problem definition and prepare for more formal empirical research.
Qualitative
What are critical incident studies?
Reasearch that asks customers to provide verbatim stories about service encounters that are both satisfying and dissatisfying
The first step in developing an effective physical evidence strategy is to:
Recognize the strategic impact of physical evidence
The _______ suggests an initially disappointed customer who has experienced good service recovery might be even more satisfied and loyal as a result.
Recovery paradox
_____ marketing focuses on keeping and improving current customers, rather than concentrating on acquiring new customers.
Relationship
The _____ of a customer is a concept that looks at customers from the perspective of their lifetime revenue or profit contributions to a company.
Relationship value
Service quality dimensions of serqual scale
Reliability Responsiveness Empathy Assurance Tangibles
In a(n) _____ environment, the service facility can be designed to keep its employees motivated and to facilitate productivity, teamwork and operational efficiency without any consideration of customers.
Remote service
_____ involves identifying the benefits and the attributes that customers expect in a service.
Requirements research
Drive change of service delivery by listening to customers (close the gap!)
Research Objectives for Service
What are service research programs?
Research objectives addressed through a portfolio of research studies and types
Which of the following statements about service failure and service recovery is true?
Resolving customer problems effectively has a strong impact on customer satisfaction and loyalty
The empowerment of employees makes which of the following service recovery strategies easier to implement?
Respond Quickly
When Theo complained out loud that the hotel restaurant did not serve breakfast late enough in the morning, a hotel worker overheard him and went to the kitchen. When the hotel worker returned, he presented Theo with a plate of sweet rolls, a cup of coffee and the hotel's apology for having to close down the breakfast service early. Which service recovery strategy is being used in this example?
Respond quickly
When a company offers new services to current customers, it is using a _____ growth strategy.
Service Development
______ are the most common types of new services.
Service Improvements
________ refers to the actions taken by an organization in response to a service failure.
Service Recovery
It is often useful to create a service blueprint at the ___________ stage of the service innovation and development process.
Service concept development and evaluation
Elysian Events, a wedding planning company, noted how many couples had a wedding catastrophe of some kind. As a result, it abandoned wedding planning and began offering wedding insurance to protect couples from financial losses due to weather emergencies, stolen wedding rings, damaged wedding dresses, etc. Elysian Events is using a _____ growth strategy.
Service development
McDonald's offers home and office delivery service in selected markets in the U.S. and Canada. McDonald's delivery service is a _____ growth strategy.
Service development
Pret a Manger, a London-based sandwich shop, introduced restaurant-quality sandwiches with fast-food velocity. Pret a Manger's faster service is a _____ growth strategy.
Service development
Key Energy was a company that provided quality oilfield construction, drilling and other services. The company's top management felt stakeholders did not have a clear image of the company and were considering changing the name to clarify the organization's position in the market. The company conducted an hour long interview with four of its largest customers. Only 25 questions were asked and much probing was done to find out exactly what the participants meant. This is an example of a:
Service expectation meeting and review
Core Service Provision
Service foundation is built upon delivery of excellent service - satisfaction, perceived service quality, perceived value (benefits vs costs)
Pret a Manger, a London-based sandwich shop, introduced restaurant-quality sandwiches with fast-food velocity. This would be an example of a
Service improvement
Spatial layout and functionality increase in importance when:
Service is provided in a self-service environment
Dentists have to earn forty continuing education (C.E.) hours every two years to stay licensed. Dental Learning Systems Co. (DLSC) prepared and presented dental seminars around the U.S. to help provide dentists with the access to continuing education courses. During the 1990s, DLSC introduced a journal that could be used like a correspondence course for earning C. E. hours. A dentist gets a list of upcoming articles/lessons, registers for one that meets his or her need, studies the information provided in the journal and fills out paperwork for DLSC, which then sends notification of completion and the C.E. hour(s) earned to the accrediting bureau. The Dental Learning Systems journal is a:
Service line extension
The augmentation of an existing service line is a:
Service line extension
Service Failure
Service performance falls below a customer's expectations in such a way that leads to customer dissatisfaction
When a customer of Twin Cities Rehabilitation Center complained that his therapist was one hour late for their appointment, the owner of the center gave the customer credit for one free hour of therapy. The action taken by the owner is an example of ___________.
Service recovery
________ refers to the actions taken by an organization in response to a service failure.
Service recovery
All aspects of the organization's physical facility are collectively referred to as the:
Servicescape
The patient examination room in a doctor's office is a:
Servicescape
In service marketing reasearch the first step involves
defining the research objectives
Measurement ofexpectations can be included in a research program by
identifying the service features that matter to customers
What is true about a transaction survey?
it functions as a tool for market research as well as customer service.
Lead Tier
(Customer Pyramid) Customers who are costing the firm money. Demand more attention then they are due and are sometimes problem customers
Iron Tier
(Customer Pyramid) Essential customers that provide volume but their spending levels, loyalty, and profitability are not substantial enough for special treatment
Platinum Tier
(Customer Pyramid) Most profitable customers, typically heavy users of the product and not overly price sensitive. Willing to try new things - committed to firm
Gold Tier
(Customer Pyramid) Profitability levels are not as high bc customers want discounts or simply aren't as loyal. May be heavy users who minimize risk by working w/ multiple vendors
Lost Customer Research
(Elements in Effective Service Research Program) Identify reasons for customer deflection. Assess gaps btwn customer expectations and perceptions
Critical Incident Technique
(Elements in Effective Service Research Program) Like the service encounter journal; Storytelling technique, memory dependent so its typically either of the 2 extremes ON EXAM!
Mystery Shopping
(Elements in Effective Service Research Program) Measure individual employee performance for eval, recognition, or rewards
Relationship Survey
(Elements in Effective Service Research Program) Monitor and track service performance, assess overall performance. Determine link btwn satisfaction and behavioral intentions
Customer Panels
(Elements in Effective Service Research Program) Monitor changing customer expectations. Provide a forum for customers to suggest and eval new service ideas
SERVQUAL
(Elements in Effective Service Research Program) This focuses on understanding service quality; it does not directly measure customer satisfaction.
Complaint Solicitation
(Elements in Effective Service Research Program) To identify/attend to dissatisfied customers. Identify common service failure points
Trailer Call (Posttransaction Survey)
(Elements in Effective Service Research Program)Obtain immediate feedback on performance. Use as input for process improvements and identify common service failpoints
Customers as Acquaintances
(Evolution of Customer Relationships) Customer awareness and trial are achieved, familiarity is established. Primary goal is to satisfy the customer
Customers as Strangers
(Evolution of Customer Relationships) Customers who have not yet had any transactions w/ a firm and may not even be aware of the firm
Customers as Friends
(Evolution of Customer Relationships) Firm acquires specific knowledge of customer's needs and are able to provide a unique offering
Customers as Partners
(Evolution of Customer Relationships) The creation of trust btwn firm and customer leads to the creation of commitment
Ambient Conditions
(Physical Environment Dimensions) Affect the 5 senses but may be imperceptible or affect us subconsciously - temp, lighting, noise, odor
Signs, Symbols, Artifact
(Physical Environment Dimensions) Explicit or implicit communication of meaning. Important in forming first impressions
Spatial Layout and Functionality
(Physical Environment Dimensions) Size, shape and arrangement of machinery, equipment, and furnishings
User-Centered
(Principle of Service Design thinking) Services should be experienced and designed through the customer's eyes
Cocreative
(Principle of Service Design thinking)All stakeholders should be included in the service design process
Holistic
(Principle of Service Design thinking)Entire environment of a service should be considered
Evidencing
(Principle of Service Design thinking)Intangible services should be visualized in terms of physical artifacts
Sequencing
(Principle of Service Design thinking)Service should be visualized as a sequence of interrelated actions
Special Treatment Benefits
(Relationship Marketing Benefits - Customer) Economic benefits, customization benefits, preferential treatment
Confidence Benefits
(Relationship Marketing Benefits - Customer) Increased trust in provider, reduced anxiety
Social Benefits
(Relationship Marketing Benefits - Customer) Personal relationships and social support
Human Resource Mngmnt Benefits
(Relationship Marketing Benefits - Firm) Easier work and social benefits for employees, employee retention
Economic Benefits
(Relationship Marketing Benefits - Firm) Increased revenues, reduced costs in mkting, promotional, setup, operating, relationship maintenance
Customer Behavior Benefits (what customers do)
(Relationship Marketing Benefits - Firm) WOM communication, customer voluntary performance, social benefits/mentors for other customers
Conditional Guarantee
(Type of Guarantee) Applies to specific steps or outputs, clearly spells out what is covered. Can focus customers' attention on an important benefit
Unconditional Guarantee
(Type of Guarantee) No specifications as to coverage, time period, or payout. Covers both what and how (offering and method); Perhaps the strongest type
For which of the following service providers would a guarantee be inappropriate?
A child care provider who has a reputation for providing the best and most responsible child care in a community
Which of the following is NOT a demonstrated benefit of service blueprinting?
All of the above are demonstrated benefits of blueprinting.
Sunoco in Canada realizes the importance of physical evidence to determining the value of the service being provided. As a result, it has refurbished its restrooms and committed its station operators to maintaining hygienic restrooms. A clean-smelling restroom is an example of a positive:
Ambient
Every time Beth takes her three-year-old daughter shopping, the child complains about unpleasant smells. A sharp olfactory sense makes _____ in retail situations extremely important to Beth and her daughter.
Ambient conditions
What are poka-yokes?
Automatic warnings or controls to ensure mistakes don't happen
-Business strategy dvlpmnt or review -New service strategy dvlpmnt -Idea Generation -Service concept development and eval -Business analysis
1st Stage in Service Innovation and Development: Front End Planning - 5 steps
-Customer Inertia (do what always done) -Switching costs
2 Switching Barriers
-Identify process -Identify the customer segment -Map the process for the customer POV -Map contact employee actions -Link contact activities to needed support -Add evidence of service at each customer action
6 Steps of Building a Service Blueprint
According to the 80/20 rule:
20 percent of a company's customers produce 80 percent of the company's profit
-Service prototype and testing -Market testing -Commercialization -Postintroduction eval
2nd Stage in Service Innovation and Development: Implementation - 4 steps
-Physical Environment Dimensions -Internal Responses -Behaviors
3 Frameworks for Understanding Servicescape Effects
-Interaction -Visibility -Internal Interaction
3 Lines of a Service Blueprint
-Increase customer satisfaction, loyalty, repurchase intentions -Positive WOM -Provide info for continuous improvement
3 Potential impacts of effective Service Recovery
-At odds w/ company image -Uncontrollable external variables -Fear of customer cheating
3 Reasons to NOT offer guarantees
-Core Service Provision -Switching Barriers -Relationship Bonds
3 Strategies/Drivers of Loyalty (Relationship Dvlpmnt Strategies)
-Outcome (what was done for the customer) -Procedural (what did the customer have to go thru to get it) -Interactional (how was the customer treated during the recovery)
3 Types of Fairness to consider when "Treating the Customer Fairly"
-Self: customer only -Interpersonal: both customer and employee -Remote: employee only
3 Types of Servicescape usage and who uses them:
-Respond Quickly -Provide Adequate Explanation -Treat customers fairly -Cultivate relationships with customers
4 Components of the Service Recovery Strategy of Fixing the Customer
-Encourage and track complaints -Learn from recovery experiences -Learn from lost customers -Make the service failsafe
4 Components of the Service Recovery Strategy of Fixing the Problem
-Customer Expectations -Customer Perceptions -Customer Loyalty -Behavioral Intentions
4 Types of Data to include when doing service research
-Financial (company puts in $ to make loyal) -Social (relationship w/ 1+ employee) -Customization -Structural (usually b2b)
4 Types of Relationship Bonds
-Major innovation -Start-up Business -New Services for the currently served mkt -Service Line Extensions -Service Improvements -Style Changes
6 Types of Service Innovations
-Easy to invoke -Easy to understand -Meaningful -Adequate compensation -Easy to collect on -Credible -Declaration of Trust
7 Characteristics of Effective Service Guarantees
-Customer actions -Onstage employee actions -Backstage employee actions -Support Processes -Physical Evidence
5 Actions of a Service Blueprint
-User-centered -Cocreative -Sequencing -Evidencing -Holistic
5 Principles of Service Design thinking
A hair salon designed to appeal to children does not use the standard salon furniture. Instead, children sit on carousel horses to get their haircuts. Large TV monitors strategically located throughout the salon show kid-targeted videos and cartoons are there to entertain the children. The child-friendly hair salon's servicescape services in what two capacities?
A differentiator and as a facilitator
Which of the following statements about the benefits of service guarantees is true?
A good guarantee forces the company to focus on its customers
What are relationship surveys?
A reasearch type that poses questions about all elements in the relationship between a customer and a company
All of the following are causes for customer's brand switching EXCEPT:
A service paradox
Which of the following is NOT a benefit provided by a service guarantee?
A way to increase a customer's sense of risk
In terms of servicescape complexity, which of the following is a lean service environment?
ATM machine
WedSafe is the name of one of several companies that provide wedding insurance. For example, in the event that a wedding is called off, the couple can insure themselves against loss of their nonrefundable deposits. If WedSafe's primary marketing effort is satisfying its customers, the company is in which stage of the customer relationship evolution?
Acquaintances
The empowerment of employees makes which of the following service recovery strategies easier to implement?
Act quickly
Service Recovery
Actions taken by a firm in response to the failure to try to resolve the situation for a customer
The type of complainer that is called a(n) _____ has an above average propensity to complain. They have a very optimistic sense of the potential positive consequences of all types of complaining.
Activist
The last step in building a service blueprint is to:
Add evidence of service at each customer step
Ambient conditions will have the least effect on customer behavior in which of the following servicescapes?
An open five-story parking garage
If Maeve has to go on a business trip, she will not fly out of the airport in Atlanta, Georgia, because it is so large and has so many people who are in a hurry to get somewhere. Instead she chooses one of the smaller airports a couple of hours away. Maeve's reaction to the airport in Atlanta is a(n) _____ behavior.
Avoidance
Many customers will not shop at traditional retail stores the day after Thanksgiving due to the crowds. This refusal to shop is an example of how a servicescape can create _____ behavior.
Avoidance
For a physical evidence strategy to be effective, it must:
Be linked clearly to the organization's overall goals and vision
What involves assembling a group of customers to provide attitudes and perceptions about a service over time?
Customer panels
A primary goal of firms at the friendship stage of the relationship is:
Customer retention
Moonlight Catering has increased the deposit it requires before agreeing to cater an event to $300. This amount is nonrefundable and must be paid when Moonlight Catering is hired for the job. This increase in deposit will help Moonlight Catering achieve its goal of:
Customer retention
Service Recovery Paradox
Customers are dissatisfied then they experience a high level of excellent service recovery - more satisfied and more likely to repurchase
The transition from the _____ stage to the _____ stage of the customer relationship requires the development of trust.
Customers as acquaintances; customers as friends
The term customer intimacy is most closely related to the establishment of _____ bonds.
Customization
If the purpose of the service blueprint is service redesign, the blueprint should be examined:
As a whole
In transaction serveys data can be gathered by
Asking customers a short list of questins immediately following a particular transaction
What is a customer panel?
Assembling a gorup of customers to provide attitudes and perceptions about a service over time.
When Jessie wanted to talk to a therapist to learn how she could improve her relationship with her mother, she went to Counseling Professionals, Inc., a counseling service that charges $1 per minute of counseling by phone. By providing counseling and advice by phone, the therapist Jessie spoke with is performing a(n):
Backstage contact employee action
In a service blueprint, the line of internal interaction separates:
Backstage contact employee actions from support processes
The development of strong customer relationships is strongly influenced by:
Barriers the customer faces in leaving a relationship
Many new commercial aircraft designed for long haul international flights now have business class seats that recline into "skybeds" making it much easier for passengers to sleep. The new skybeds represent an improvement to the aircraft servicescape with respect to its role as:
Facilitator
Pandora is an Internet-based music discovery service that helps its customers find and enjoy music that they like. A customer can create up to 100 unique "stations" by identifying favorite songs or artists and then Pandora's expert systems analyzes what they like and provides suggestions based on this analysis. Pandora is using ____________ to develop and maintain customer relationships.
Customization bonds
The clearly displayed ENTRANCE and EXIT signs at a Jiffy-Lube 10-minute oil and lubrication service indicate that the Jiffy-Lube servicescape is playing the strategic role of:
Facilitator
Regency Dry Cleaners operates in a medium-sized community. Its customers all live within a 20-mile radius of the cleaners. Regency provides its regular customers with several alternative pickup and delivery schedules rather than a single weekly pickup and delivery. Regency's driver will pickup clothes in the morning and deliver them back clean in the afternoon if that is what a customer needs. Regency has found the increase in its total number of customers because of this service more than pays its additional operation expenses. Regency has built its customer retention strategy around:
Customization Bonds
The receptionist at Dr. Smith's office is shut off from the waiting area by a glass partition. She must open a small door to communicate with patients and at times, it is difficult to get her attention. In this example, the servicescape could be improved with respect to its role as a:
Facilitator
Aramark is a food service company that supplies meals to more than 200,000 hospital patients daily. To improve its service, it created a database that tracks patient preferences individually by hospitals, regionally, and nationally. The accumulated database is used to provide better menus. Aramark's kitchen staff deliver the food and are referred to as hosts. All hosts have a minimum of 40 hours of training to teach them how to be courteous, efficient, and quick. These trained hosts deliver customized meals from carts preloaded according to room number. According to patient surveys, Aramark has boosted patient satisfaction by almost 10 percent by providing customized meals. Aramark is using _____ in its customer retention strategy.
Customization bonds
Salespeople for college texts call on college instructors to sell them on using a particular text for their classes. Improvements in efficiency have led some publishers to stop making sales calls altogether on smaller colleges. It is a much better use of the sales force's time to call on schools with large classes and big adoption rates. From the customer's point of view, this application of the profitability tier:
Could be seen as demeaning
Roger Pack is a breeder of Pomeranian dogs. He has used the same grooming salon for his dogs for the last 10 years. When a new groomer accidentally trimmed too much off of one of his show dog's hind quarters, he was upset. He decided not to make a big deal of the event because of his long-term dealings with the salon owner. Which service recovery strategy is being used in this example?
Cultivate relationships with customers
Simone called the Puppy Heaven Kennel to reserve a kennel for her German Shepherd while she went on vacation. In terms of the service blueprint, Simone's telephone call is an example of a(n):
Customer Action
Every month the pest exterminator does a monthly spraying at Jean Poole's house. Every month Jean gripes that she is being ripped off by the exterminating company and that she's going to find a new one. But she never does change service providers due to:
Customer inertia
Which of the following is NOT a reason why a service firm may avoid a customer relationship with a particular customer?
Customer is not Divisible
Step-by-Step day care center offers parents several other services not normally offered by day care centers. A caterer is present every morning when the children are dropped off to take orders for supper. When the parents pick up their children in the evening, their supper is ready for them to take home, too. A hair stylist comes to the center once a week and cuts the hair of any child whose parents request this service. A photographer comes to the center every three months to take updated pictures of children whose parents don't have the time to take their children to the photography studio. In this way, Step-by-Step is using _____ to support its customer retention strategy.
Customization bonds
What is a use of customer research findings?
Driving improvement in the way service is delivered
Sometimes firms have service encounters that fail because of ___________, who intentionally or unintentionally act in a way that is disruptive, rude, or aggressive.
Dysfunctional customers
When Shelly hired the housecleaning service, she asked them to use her hypoallergenic cleaning supplies. Instead the workers used their own supplies and Shelly had to lose a day from work because of her allergic reaction to the smell of the cleaners. When Shelly looked at the service guarantee that the workers had left, she found that she could get a reimbursement for all of her out-of-pocket expenses if she had a notarized letter from her doctor describing her condition and her reaction, an affidavit from the workers that they had used the wrong cleaners and another notarized statement that she would not have become ill if the workers had used the right cleaners. This service guarantee is ineffective because it is NOT:
Easy to invoke and collect
The three types of benefits to organizations of maintaining and developing a loyal customer base are:
Economic benefits; customer behavior benefits; human resource management benefits
Service blueprinting is grounded in all of the following disciplines EXCEPT:
Economics
In terms of its servicescape complexity, The White Elephant, a restaurant that specializes in traditional Thai cooking is an example of a(n) _____ service environment.
Elaborate
Which of the following is an important consideration for innovating or developing a new service?
Employ service and design thinking and techniques.
Which of the following is one of the ways an organization benefits from maintaining and developing a loyal customer base?
Employee retention
Bruce was driving to work yesterday when he was nearly run off the road by a speeding furniture delivery truck. On the back of the truck was a phone number to call if you believed the driver was not handling the truck safely. Rather than deciding to never buy furniture from this furniture company, Bruce called the company and complained about the truck driver. The person who took his call thanked Bruce for his concern, apologized for the driver and promised to reprimand him. Which service recovery strategy was the furniture store using?
Encourage and track complaints
Another name for human factors design is _____, which could lead to the creation of airline passenger seats that provide adequate back support and leg room.
Ergonomics
The Hilton Hawaiian Village offers its guests mattresses that adjust to body contours and weight. The bed designed with air baffles and wooden slats is good for people with bad backs and those with varicose veins. These mattresses use _____ to create positive responses to the hotel's servicescape.
Ergonomics
Example of future expectations research
Inviting users to test newly created prototypes
Following the acquaintance relationship in the evolution of customer relationships is the customers as _____ stage.
Friends
If the purpose of the service blueprint is to understand the customer's view of the process, the blueprint should be analyzed:
From left to right
To reach business travelers (its largest market) Canadian Airline has installed continuous "power to the seat" and Internet service for those who need to work on their laptops for the entire plane trip. By adding these amenities, Canadian Airline has improved the __________ of the service environment:
Functionality
Which of the following types of research has a high monetary cost?
Future expectations research
How would you describe the sustainability of competitive advantage in the acquaintance stage of the customer relationship evolution?
Generally low with some variation on how the competition creates unique value
Build and Maintain a base of committed customers who are profitable for the organization
Goal of Relationship Marketing:
All of the following are elements of a hotel's servicescape EXCEPT:
Housekeeping staff
-Attraction -Stay/explore -Spend $ -Return
How could the servicescape affect customer behavior? (4 ways)
-Affiliation -Exploration -Stay Longer -Commitment
How could the servicescape affect employee behavior? (4 ways)
A company that uses a four-tier scheme to segment is customers by profitability:
Identifies customers who need different sorts of attention
What is complaint solicitation?
Identifying dissatisfied customers through patterns of customer comments
Which of the following is NOT an example of a commonly used service recovery strategy?
Implement the service paradox
Objectives for upward communication in large organizations
Imporiving the quality of internal service Generating new ideas for service improvement
A consumer who is more likely to engage in negative word-of-mouth than any other type of consumer is called a(n):
Irate
Many carwashes offer free replacement washes to car owners if it rains or snows within 24 hours of when they had their cars cleaned at the carwash. Because people who would take advantage of this service guarantee are the ones that are concerned about the appearance of their car, this service guarantee:
Is very meaningful
The supervisor of a hotel housekeeping staff instructed a new housekeeper in the 45 ways a room must be cleaned if its guest has checked out but she forgot to mention that a less thorough method was to be used if the guest was staying additional nights. The next month the supervisor wonders why the new housekeeper is using many more packets of toiletries than the other housekeepers are. Also, it is taking the housekeeper the same amount of time to clean a recently vacated room as it does to clean a room that will be housing the same people for another night. The best explanation for the misunderstanding about the service to be provided by the housekeeper is _________, a risk incurred when services are described in words alone.
Incompleteness
The supervisor of a hotel housekeeping staff instructed a new housekeeper in the 45 ways a room must be cleaned if its tenant is leaving and not staying on for another night while inferring that a less thorough method was used if the guest were staying additional nights. The next month the supervisor wonders why this housekeeper is using many more packets of toiletries than the other housekeepers are. Also, it seems that it is taking the cleaner the same amount of time to clean a recently vacated room as it does to clean a room that will be housing the same people for another night. The best explanation for the supervisor's concern is _____, a risk incurred when services are described in words alone.
Incompleteness
_____ importance measures are estimated using the statistical procedures of correlation and regression analysis, which show the relative contribution of questionnaire items to overall service quality.
Indirect
Based on the Framework for Understanding Physical Environment-User Relationships, browsing in a retail store is a(n):
Individual behavior
The primary goal of businesses that are in the first stage of their relationship with a customer is to:
Initiate communications in order to attract them
As the flight attendant listened to the business traveler complain about having to sit in the plane and wait for two hours before the plane took off, the attendant sorted through some magazines, got a blanket for another passenger and clearly ignored the legitimate complaints of the businessperson. This is clearly a problem with:
Interactional fairness
_____ focuses on the interpersonal treatment received by the consumer during the complaint process.
Interactional fairness
________ refers to the fact that a complaining customer expects to be treated fairly, with care and honesty.
Interactional fairness
Based on the Framework for Understanding Physical Environment-User Relationships, a person's ___________ the servicescape is what influences his or her behavior in the service environment.
Internal response to
Based on servicescape usage, a dance studio is a(n) _____ environment.
Interpersonal services
In a(n) _____ environment, the servicescape must be planned to attract, satisfy and facilitate the activities of both customers and employees simultaneously.
Interpersonal services
United Jersey Bank offers customers, who have a combined balance of $3000 or more in a United Jersey Checking Account and Preferred Money Market Account, a service called United Jersey Preferred Banking. This service is designed to make banking more convenient and profitable for customers. United Jersey Preferred Banking eliminates monthly maintenance fees, provides unlimited free transactions at ATMs, preferred rates on personal loans, higher interest rates on savings with higher balances and a consolidated monthly statement. United Jersey Bank does not offer United Jersey Preferred banking to customers with a combined balance of less than $3000 in a United Jersey Checking Account and Preferred Money Market Account since these customers are:
Not profitable in the long run
United Jersey Bank offers customers, who have a combined balance of $3000 or more in a United Jersey Checking Account and Preferred Money Market Account, a service called United Jersey Preferred Banking. This service is designed to make banking more convenient and profitable for customers. United Jersey Preferred Banking eliminates monthly maintenance fees, provides unlimited free transactions at ATMs, preferred rates on personal loans, higher interest rates on savings with higher balances, and a consolidated monthly statement. United Jersey Bank does not offer United Jersey Preferred banking to customers with a combined balance of less than $3000 in a United Jersey Checking Account and Preferred Money Market Account since these customers are:
Not profitable in the long run
Kelso Massage Therapy promises its clients that their wait for a massage will be less than fifteen minutes or the massage is free. What type of service recovery tool is Kelso Massage Therapy using?
Offer a guarantee
Kelso Massage Therapy promises its clients that there wait for a massage will be less than fifteen minutes or the massage is free. Which service recovery strategy does Kelso Massage Therapy use?
Offering a guarantee
-Oversimplification -Incompleteness -Subjectivity -Biased
One challenge of Service Innovation and Design is the risk in describing in words alone (4 ways)
When creating a blueprint for a technology-delivered self service, a row labeled "onstage technology" can be added to the blueprint:
Only in addition to the onstage contact employee action row
In service blueprinting terms, _____ are those steps and activities that contact employees, like desk clerks and receptionists, perform that are visible to customers.
Onstage contact employee action
When the character playing Alice in Wonderland signed autographs and had her picture taken with guests at Disneyworld, it was an example of a(n):
Onstage contact employee action
_____ are those steps and activities that contact employees, like desk clerks and receptionists, perform that are visible to customers.
Onstage contact employee actions
In a service blueprint, the line of visibility separates:
Onstage contact employee actions from backstage contact employee actions
The employees at Franklin Credit Union correspond to the _____ in the stimulus-organism-response model.
Organism
_____ concerns the results that customers receive from their complaints.
Outcome fairness
PSE&G is a utility company. One of its service guarantees is to keep all appointments. If PSE&G fails to keep an appointment mutually agreed upon by the customer and the company, PSE&G will credit residential customers' accounts by $25 and business customers' accounts by $100. The guarantee only applies to appointments for meter readings, account investigation, gas service, gas appliance repair and both electric and gas meter work scheduled three days in advance. Which of the following statements about PSE&G's service guarantee is FALSE?
PSE&G's guarantee is unconditional
The key to success in the _____ stage of the customer relationship is the firm's ability to use customer knowledge and information systems to deliver highly personalized and customized offerings.
Partnership
A person who is a(n) _____ is a type of complainer who is unlikely to say anything to the service provider. This type of complainer often doubts the effectiveness of complaining because of a belief that the consequences will not merit the time and effort they will expend complaining.
Passive
Relationship Marketing
Philosophy of doing business that focuses on keeping current customers and improving relationships with them. Not necessarily emphasize acquiring new customers ("Plug holes in the bucket")
When Simone dropped off her German Shepherd at the Puppy Heaven Kennel before she went on vacation, she was pleased when she saw that the waiting room was brightly lit, it looked and smelled clean, and all of the employees were wearing neat uniforms. In service blueprinting terms, the condition of the waiting room and the employee uniforms are examples of:
Physical evidence
When you visit the web site for Hyatt hotels, you can look at pictures of its newest hotels, register for its continuity programs, and make reservations quickly. These elements of its web site are all examples of:
Physical evidence
-Servicescape -Tangible cues (employee dress, mementos, contracts, etc)
Physical evidence includes these 2 things:
The last time Dominique traveled on an airplane she took an antihistamine before her flight to keep her ears unclogged and prevent an earache. Dominique took an antihistamine to prevent a(n) ____ response to the airplane's environment.
Physiological
The final stage of the new service development process is:
Post introduction evaluation
Trailer calls are also called:
Post transaction surveys
At the partnership stage of the customer relationship, the firm is most concerned with:
The enhancement of its relationship with the customer
Servicescape
The environment where the service is performed and where the customer and the firm interact
A consumer is more likely to complain when:
The level of ego involvement in the purchase is high
Which of the following acts as the stimulus in the stimulus-organism-response model?
The multidimensional service environment
How would a day care center operator benefit from the implementation of relationship marketing with the parents of three preschool children?
The parents would spread the word about their happiness with the services provided by the day care center
A service blueprint depicts:
The process of service delivery
Which of the following statements describes a benefit of critical incident studies?
The research method is especially useful when the service is new
Which of the following is the BEST example of outcome fairness?
The small movie theater gave all patrons two-free movie tickets for the night of their choice when the movie projector broke halfway through showing the newest Brad Pitt movie
Two decades ago, travelers who were looking for a place to rest for the night looked for the large, multi-colored Holiday Inn signs. Eventually, the signs started looking dated and seemed to remind people of early times even though the motel chain knew travelers wanted to stay in modern rooms with all the latest amenities. Because the signs were sending the wrong message, Holiday Inn used physical evidence strategy to create more modern signage. During which step of the physical evidence strategy would this change have occurred?
The updating and modernizing of physical evidence
A true statement about customer panels
They can b used to represent large segments of end-customers
Upward Communication
This can consist of executive visits to customers, mngmt listening to customers, research on internal customers, mngmt listening to employees and employee suggestions
Service Blueprinting
Tool that helps address the challenges of delivering intangible processes. It depicts the 3 additional P's of the mkting mix
Which of the following is NOT a form of qualitative research?
Trailer calls
Which of the following research methods provides feedback on soft measures?
Trailer calls
Lifetime Profitability
When costs are considered when determining the average revenue generated, its more appropriate to use this term
When is a biased interpretation likely to occur during a discussion of a new restaurant?
When one party uses words like nice and different to describe the restaurant
When is a service guarantee inappropriate?
When service quality is truly uncontrollable
What is mystery shopping?
Where companies send outside researchers into their service establishments to experience the service as if they were customers.
