Services Marketing Exam 1 7th Edition

Which of the following types of interaction activities in a service organization is used to obtain ideas for service improvement? A. Employee suggestions B. Employee internal satisfaction surveys C. Research on intermediate customers D. Executive listening approaches E. Executive visits to customers

A

Which of the following statements about relationship surveys is true? A. Relationship surveys are not statistically valid B. Relationship surveys should be conducted weekly C. SERVQUAL is a type of relationship survey

C

Which of the following trends has directly influenced the development of services marketing concepts and strategies? A. The decreasing importance of service industries to the U.S. and world economies B. The growth in information-based technology C. Decreased competition in professional services D. The fact that manufacturing firms are placing increased emphasis on providing services E. None of the above

D

_____ service is the level of service the customer hopes to receive.

Desired

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

Which of the following statements describes a marketing implication that results from intangibility of services? A. Services cannot be invented B. Services cannot be easily patented C. Services cannot be readily displayed D. The actual costs of a "unit of service" are hard to determine E. All of the Above

E

Ally Bank advertises "24/7" customer care which mens that customer can call by telephone and speak with a human being about their banking matters any time of day or night. Ally Bank customers never have to talk to a machine. With this service feature, Ally Bank is emphasizing the _____ dimension of service quality.

Empathy

For years, Allstate Insurance has used the slogan, "You're in good hands with Allstate". Which dimension of service quality is this Allstate promotional campaign emphasizing?

assurance

The central focus of the gaps model of service quality is the:

difference between customer expectations and perceptions

The _______ dimension of service quality is the caring, individualized attention given to customers.

empathy

Gina and Henry were having breakfast when they decided they wanted to have pizza and watch a movie that night. When she got home from work, Gina turned on her computer, logged on to the Netflix site, and chose the movie Moneyball to view via online video streaming. Next she logged on to her favorite pizza restaurant's web site and ordered a large pizza and a bottle of soda to be delivered at 6:45pm. Gina and Henry enjoyed their evening. Which trend that influenced the development of services marketing is illustrated here? A. The increasing importance of service industries to the U.S. and world economies B. The decrease in human interaction as a result of widespread use of technology-based services C. The growth in the use of technology-based services D. Increased competition in the entertainment industry E. The fact that manufacturing firms are placing increased emphasis on providing services

C

All of the following are among the criteria for an effective service research program EXCEPT: A. Includes perceptions and expectations B. Includes measures of loyalty o behavioral intentions C. Measures priorities or importance D. Considers only qualitative research E. Occurs with appropriate frequency

D

On his way to work today, Terry saw a billboard for a physician's group that specialized in vascular surgery. In the local newspaper there was a full-page ad for a medical clinic that performed similar surgery. Then in his mail, he got a brochure from yet another medical clinic asking him if he wanted to get rid of ugly vascular veins. Which trend that influenced the development of services marketing concepts and strategies is illustrated here? A. The increasing importance of service industries to the U.S. and world economies B. The increase of government regulation of professional service industries C. The growth in database marketing D. Increased competition in professional services E. Professional firms are placing increased emphasis on providing services

D

Which of the following is an intangible component of a car repair shop? A. Replacement Parts B. Employee Uniforms C. Barrel for storing recyclable motor oil D. The training the mechanic has received E. Customer waiting area

D

Which of the following statements about customer satisfaction and service quality is true? A. Customer satisfaction is a focused evaluation that reflects the customer's perception of specific dimensions of service like reliability and responsiveness B. Service quality is more inclusive than customer service C. It is correct to use the terms of customer service and service quality interchangeably D. Customer satisfaction is influenced by perceptions of service quality E. None of the Above

D

Which of the following incidents is likely to influence a customer's perception of service quality of an appliance store? A. A late night call to the store's service department B. The relationship the customer has established with the store after buying several different appliances C. a salespersons explanation of extended warranty service D. the welcoming atmosphere of the store E. All of the above

E

From the customer's point of the view, the most vivid impression of service occurs in the service _____ when the customer interacts with the service firm.

Encounter

Lillie worked as a caterer when she was in college. She was highly critical of the caterer and its staff that her parents selected for their 50th anniversary party. Lillie's attitude about how a caterer should act reflects her:

personal service philosophy

Telepizza S.A. is a Spanish pizza restaurant chain that offers children membership in its magic club. The magic club gives its members small prizes, usually simple magic tricks, with each order their parents place. Telepizza's has 65 percent of the Spanish market as a result of using ______ marketing.

relationship

Southwest airlines has consistently had one of the best on-time performance records in the airline industry. A critical factor in their success has been its use of second tier airports such as Midway in Chicago. These lower traffic airports allow Southwest to have a faster turnaround for its airplanes so they spend a greater percentage of their time in the air. Seventy percent of Southwest's flights have a turnaround time of 15 mins. Southwest airlines on-time performance reflects the _____ dimension of service quality.

reliability

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

At the partnership stage of a customer relationship, the firm is most concerned with:

the enhancement of its relationship with the customer

Jamie desires a haircut that will look just as attractive when she wakes up in the morning as it does when she is going out on a date. With the desired haircut, all she has to do to fix her hair is to shake her head. A haircut is adequate when it doesn't have any stray long hairs and it hides her cowlick. Jamie's recent haircut was in her _________ because while it didn't look great all the time, a quick brushing was all that was needed to fix it.

zone of tolerance

Leonard has been commuting to New York City on the Long Island railroad for 10 years. Every morning he takes the 7 am train that is scheduled to arrive in NY at 8:15am from Huntington, a suburb of NY. Although Leonard would like the train to arrive in NY on time, he knows from experience as a commuter that it is more likely the train will be 5 minutes late. Leonard's expectation that his train will be 5 minutes late reflects his _____ level of service for the Long Island railroad.

Adequate

The _______ gap is the difference between customer expectations and perceptions.

Customer

In the first stage in the services marketing research process, the researcher:

Defines the problem and research objectives

Provider _____ is the difference between customer expectations of service and company understanding of those expectations.

Gap 1 (Listening Gap)

Provider ______ is the difference between company understanding of customer expectations and development of customer-driven service designs and standards.

Gap 2 (Service and Design)

_________ is a key determinant of whether an offering should be classified as a product or service.

Intangibility

In the simplest terms, ________, are deeds, processes, and performances.

Services

Companies that emphasize acquiring new customers rather than retaining current customers are using _______ marketing.

Transactional

_____ are used to report the findings from a service marketing research study that collected data on the two levels of customer expectations - desired service and adequate service - along with customer perceptions of company performance.

Zone of Tolerance Charts

A primary goal of firms at the friendship stage of a relationship is:

customer retention

The ______ dimension of service quality refers to the willingness to help customers and provide prompt service.

responsiveness

To close the customer gap, the gaps model of service quality suggests that the _______ gaps need to be closed.

Provider

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 is interviewing the company's salespeople to learn how they feel about selling Energy's services. As part of examining the corporate image, the company is using:

upward communication

Which of the following is an example of a tangible component provided by a hotel? A.Wake-up call B. Guest Rooms C. Room service D. Express check-out E. Guaranteed reservations

B

Retention strategies based on social bonds:

Build long-term relationships through social and interpersonal as well as financial bonds

The transition from the _____ stage to the _____ stage of the customer relationship requires the development of trust.

Customers as acquaintances; customers as friends

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:

Current and/or future profitability

Which of the following is NOT a source of customer expectations? A. Word-of-mouth B. Advertising C. Pricing D. Sales promises E. Target Market

E

Customer _____ are beliefs about service delivery that function as standards against which performance is judged.

Expectations

Provider _____ is the discrepancy between the development of customer-driven service standards and actual service performance by company employees.

Gap 3 (performance)

The first time Barry brought his car to auto lube to have the oil changed he was very satisfied with the service. The service manager consulted him several times while his car was being serviced, asked him if there were any problems with the car, recommended when additional services should be performed and answered questions directly and politely. However, when Barry went back to Auto Lube after three months to have his oil changed again, he was not satisfied with the service. The manager spoke to him only when he arrived and when he paid his bill. In addition, the manager was impatient and unfriendly during the interaction. Barry's experience at Auto Lube illustrates the ___________ of service.

Heterogeneity

If customers believe they have multiple service providers to choose from for a particular service, or if they can provide the service for themselves, their levels of adequate service are _________ those of customers who believe it is not possible to get better service elsewhere.

Higher than

Jack and Luke used the same mechanic to fix their cars. Both were unhappy with recent repairs. Luke who complained because his car was improperly repaired will have a ______ level of adequate service and a _____ zone of tolerance than Jack who did not complain about how poorly his car was running after the mechanic put in new spark plugs and did other maintenance.

Higher; narrower

Karen owns a cottage on Martha's Vineyard, a popular island destination for tourists from about April to October. When Karen visits the island in March to dine at her favorite pizza restaurant, she expects great service because the tourists are not there. Because she predicts she will receive great service, her _____ than it is during the tourist season.

Level of adequate service will be higher

Customers' tolerance zones vary for different service attributes or dimensions. The _______________ the factor, the __________ the zone of tolerance is likely to be.

More important; narrower

Sunoco is readying a chain-wide set of marketing initiatives designed to improve its image with women drivers and win more return business to its service station outlets throughout Ontario. It refurbished all of its restrooms and tried to hire friendly personalities and real customer service skills instead of "just who was available". It hired an outside research organization to send people to Sunoco service stations twice monthly to grade staff on their customer interaction skills. What research method did Sunoco use to make sure that each station was implementing the new service strategy?

Mystery Shoppers

Due to the _______ characteristics of services, customers will frequently interact with each other during the service performance process and may affect each other's experiences.

Perishability

In acquaintance relationships, firms generally focus on:

Providing value comparable to competitions

________ research is conducted to clarify problem definition and prepare for more formal empirical research

Qualitative

______ marketing focuses on keeping and improving current customers, rather than concentrating on acquiring new customers.

Relationship

When customers have been surprised by a service outcome that is much better or worse than expected, they tend to look for reasons and their assessments of the reasons. can influence their satisfaction. These perceived causes of service success or failure are known as:

Service attributions

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

The romantic mountain getaway seemed like the perfect Valentine's Day gift. The pictures in the brochure showed couples enjoying the amenities in their cabins. When the couple arrived, they found a cold, uninviting cabin with a shortage of creature comforts--no down-filled blankets, no wood for the fireplace, paper plates and cups and a broken chair. In this service example, the _____ was not what the customers expected.

Servicescape

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

The Walt Disney Company dress code requires male cast members with mustaches or beards to trim their facial hair to no longer than one-quarter of an inch and be well-groomed. Male cast members without mustaches and beards must be clean shaven every day. All cast members must keep their name tags visible at all times, have no visible tattoos, and be professional in appearance. The Walt Disney Company's dress code reflects the _____ dimension of service quality.

Tangible

Every time Tom and Betty stay at a Marriot Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Mariott is using ______ to implement its retention strategy.

customization bonds

After his home was burglarized, Rich became concerned about the safety of his wife and three children since he often traveled out-of-town on business. To prevent further burglaries and ensure his families safety, Rich decided to purchase a home security system from ADT Security Systems. Rich's expectation that an ADT home security system will prevent further burglaries and protect his family is influenced by his

derived service expectations