Chapter 13 MARK
One of the reasons service failures need to be addressed quickly is to
avoid negative word-of-mouth from upset customers.
Marketers can take advantage of the variable nature of services by
customizing services to meet customers' needs.
A __________ gap can be closed by getting employees to meet or exceed service standards.
delivery
Along the service-product continuum, which of the following would be considered the most service dominant?
doctor
The old cliché, "Service with a smile," recognizes the fact that
service providers need to be pleasant even if the customer is not.
Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call
service quality.
Medical services, assisted living care, and active senior travel are all examples of
services an aging population will increase their demand for.
Which of the following is NOT a recommended strategy for service recovery?
silencing an irate customer before the individual makes any angry outbursts
Effective service recovery entails all of the following EXCEPT
estimating the damage.
Food preparation, lawn maintenance, and house cleaning services are all examples of
household maintenance activities that people increasingly pay others to perform.
Although firms such as restaurants have difficulty controlling service quality from day to day, they do have control over
how they communicate the services they promise.
When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time.
inseparable
Rob was complaining to another member of the lawn crew, "I don't know how they expect me to do an adequate job. The mower doesn't work right, the trimmers are so dull they don't cut anything, and the rest of the equipment is so old we can't get parts." Rob's company lacks the __________ workers need to be able to do a good job.
instrumental support
Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of
instrumental support.
Because services are __________, it is often difficult for marketers to convey the benefits to consumers.
intangible
Colin has been directed by his boss to determine whether their company is meeting customers' service quality expectations. One of Colin's problems is that services are __________, making evaluation of service quality difficult.
intangible
When marketers say that services are __________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can.
intangible
_________ means allowing employees to make decisions about how service is provided to customers.
Empowerment
__________ represents the systems and equipment resources that service providers need to be able to close the delivery gap.
Instrumental support
__________ refers to the perceived fairness of the process with which a firm handles customer complaints.
Procedural fairness
Most customers want to achieve a fair solution following a service failure. Which of the following is NOT a factor that affects a person's perceptions of fairness in these kinds of situations?
The firm's policy on service recovery.
What is the problem associated with service quality standards such as "be nice" or "do what the customers want"?
They are not specific.
Which of the following is NOT one of the five dimensions used by consumers to determine overall service quality?
acceptability The five dimensions of service quality are reliability, assurance, responsiveness, empathy, and tangibles
In countries like the United States, services
account for an increasing share of jobs.
By providing good customer service, firms __________ their products or services.
add value to
Students regularly seek out Professor Guillory to advise them. She has an exceptional manner, and students are confident in her and trust her advice. For these students, __________ is the most important of the five service quality dimensions.
assurance
The service dimension called __________ refers to the ability of the firm's employees to convey trust and confidence.
assurance
A service is any intangible offering that involves a deed, performance, or effort that
cannot be physically possessed.
Dopson's Hardware was in bad financial shape. It owed so much money that vendors put the store on a cash-only delivery basis. As a result, the store had a dwindling inventory of goods to sell. Whenever a customer asked about an unavailable item, the owner directed the sales staff to say that it was on backorder and would be in stock next week. When the customer returned, the item was still unavailable. The owner's policy created a(n) __________ gap.
communication
Firms can close a __________ gap by being more realistic about the services they can provide and managing customer expectations.
communication
If there is a difference between the actual service provided to customers and the service the firm has promoted, a __________ gap exists.
communication
Physicians regularly overstate the expected recovery time from surgery, knowing that managing patients' expectations will reduce the __________ gap associated with their service.
communication
The __________ gap can be reduced by managing consumers' expectations.
communication
When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a
communications gap.
An excellent, inexpensive, and readily accessible method for assessing customers' service expectations is
customer complaints.
The Gaps model is designed to highlight those areas where
customers believe they are getting less or poorer service than they should.
A __________ gap is the difference between the firm's service standards and the service it provides to customers.
delivery
A(n) __________ gap exists when a firm knows what it needs to do to meet customers' service expectations but sometimes fails to do it.
delivery
In services marketing, the saying, "where the rubber meets the road" refers to whether a(n) __________ gap exists.
delivery
Saltdust Grill is known as the premier restaurant in town. With their elegant dining area, extensive wine list, and gourmet chef, residents and tourists flock to the restaurant. Recently, Trey took a large group to the Saltdust Grill and almost every diner sent their entrée back to the kitchen. The Saltdust Grill was experiencing a(n) __________ gap in service quality.
delivery
The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a
delivery gap.
To meet or exceed customers' expectations, marketers must
determine what those expectations are.
When travelers are bumped from overbooked flights, they are frequently offered vouchers good for future travel. The dollar value of the voucher is the airline's estimate of
distributive fairness.
Empowerment of employees helps to address the delivery gap because
employees directly involved with the customer can respond effectively at the moment the problem occurs.
Using technology and __________ are two ways a delivery gap can be reduced in size.
empowering employees
When Dr. Horton checked in at the Ritz-Carlton, it was 3 a.m. He had been traveling for over twelve hours and was exhausted. His suit, which he needed for a speech that morning, looked like he had slept in it. Karen, the night clerk, offered to find a 24-hour dry cleaner and have the suit cleaned while Dr. Horton got a few hours of sleep. Karen's actions are an example of
empowering employees to meet customers' needs.
When __________ are authorized to make decisions to help their customers, service quality generally improves.
frontline employees
Today, almost every sales rep can immediately check the company's inventory and production scheduling electronically. This allows sales reps to sell what is available and make promises to customers that they can keep. This technology has improved service delivery through
greater ability to obtain information.
Along the service-product continuum, which of the following would be considered the most product dominant?
grocery store
When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another.
heterogeneous
Because of __________, many companies have altered their "no questions asked" return policies to include time limits, restocking fees, and store-credit-only refunds.
high costs
For many professionals offering intangible services, an ethical marketing dilemma exists. The dilemma centers on
how to gain clients while retaining an image of professionalism and integrity.
Sam was called in to meet with his boss, Tricia. He was afraid he was going to be fired for the mistake he had made dealing with an important customer of the store. Instead, Tricia explained that he had handled the situation well, listening to the customer and finding a fair solution. Tricia commented, "Even more importantly, working the way you did to correct the error could result in __________."
increased customer purchases and positive word of mouth
Effective service recovery efforts can lead to all of the following EXCEPT
increased dependence on technology to prevent future service failures.
Empowerment becomes more important when the service is
individualized.
Sean moved to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn't like the one he had chosen, and he knew he'd never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as
inseparability.
If a firm promises more than it can deliver,
it creates a communication gap.
A __________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations.
knowledge
David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) ________ gap.
knowledge
Firms can close the __________ gap by matching customer expectations with actual service through use of marketing metrics.
knowledge
For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a __________ gap in services marketing.
knowledge
Jackson manages an upscale French restaurant in the Washington, D.C. area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his waiters and waitresses to report comments and requests for items that have previously only been offered as specials. Jackson uses this information to reduce the __________ gap in services marketing.
knowledge
When confronted with an angry and emotional customer, the best first step toward service recovery is to
listen carefully and with empathy until the customer feels he or she has been heard.
Because customers have different needs and expectations, the key to distributive fairness in service recovery is to
listen to the customer.
Service employees at the airlines' flight cancellation desks frequently encounter travelers who get emotional about canceled or delayed flights. The first thing these employees should do is to
listen to the customer.
By changing a standard from "be nice to customers" to "greet every customer, and if possible by name," a services marketing manager has created a(n) __________ goal.
measurable
Because services like airline flights and hotel beds are _________, many marketers attempt to match demand with supply using pricing strategies.
perishable
When marketers state that services are __________, they are referring to the fact that services cannot be stored for use in the future.
perishable
Yolanda manages a Best Sleep Inn along an interstate highway. She knows from experience that five to ten last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Yolanda has empowered her staff to offer discounts when the motel is largely vacant and to quote the standard price when the motel is close to full. She knows her service is __________, meaning that if no one stays in the room, it generates no revenue that evening.
perishable
Because services like cruises and car rentals are perishable, many marketers use
pricing strategies to match supply with demand.
One afternoon, the clerk at the customer service desk of a large retail store got bored and started stating different return policies to each customer. Customers waiting in line and overhearing the different policies would probably feel that the store's handling of returns lacked
procedural fairness.
Managers of fast food restaurants struggle with a rapid turnover of personnel. Employee turnover rates of 100 to 200 percent annually are common. The work environment is difficult and customers can often be demanding. One of the first steps managers can take to help workers deliver quality service is to
provide emotional support and concern for their employees.
After observing a customer verbally abuse a waiter, the first thing a manager can do to ensure quality service is to
provide emotional support to the waiter.
Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by
providing support and incentives for their employees.
Cheryl will only let Martiné cut her hair. She has tried other hairdressers, but she knows from experience that Martiné cuts her hair well every time. For Cheryl, __________ is the most important of the five service quality dimensions.
reliability
The new hotel manager asked the chef, "Are you sure you know how to cook a beef Wellington?" Which of the service dimensions was the hotel manager expressing concern about?
reliability
The marketing of services differs from product marketing because services are all of these EXCEPT
renewable.
When choosing where to eat lunch, Veronica's major service criterion is speed: being seated promptly and served her meal quickly. For Veronica, __________ is the most important of the five service quality dimensions.
responsiveness
The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services.
satisfaction guarantees
When the delivery of a service fails to meet customers' expectations, a __________ gap exists.
service
Kayla is the new manager of a resort hotel. She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers' expectations, and she believes that the biggest problem is that her employees are not sure what is expected of them. To improve service quality, Kayla will
set specific, measurable goals based on customers' expectations.
By setting appropriate service standards and measuring service performance, firms can attempt to close a __________ gap.
standards
If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a __________ gap exists.
standards
Training service providers to know exactly what a good job entails is setting service
standards
Which service gap is the Ritz-Carlton Hotel trying to address when it takes time and spends up to $1,700 to train a new employee?
standards gap
Gerald's Tire Service provides each employee with a clean, sharp-looking uniform. It also instructs employees to put all tools back where they belong and keep the work area clean and uncluttered. Gerald's Tire Service emphasizes __________ in the five service quality dimensions.
tangibles
Monique was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landscaping was not complete, and there was stained carpet in the lobby. Which of the service quality building blocks caused Monique to select an alternative venue?
tangibles
The concept of __________ refers to the area between customers' expectations regarding desired service and their minimum levels of acceptable service.
the zone of tolerance
Services marketing managers have learned that more employees will support a quality-oriented process if
they are involved in setting the goals.
When corporate headquarters announced new service quality standards for pizza franchise owners, Roland knew he would have trouble gaining employees' support because
they were not involved in setting the goals.
Many product-dominant firms use quality service
to maintain a sustainable competitive advantage.
One approach marketers are using to reduce service __________ is to replace people with machines whenever appropriate.
variability
Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. The employees—when she could find them—rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. The store had found a technological solution to the services marketing issue of
variability.
The old restaurant saying, "You are only as good as the last meal served," reflects the fact that services are
variable.
A systematic ____________ program collects customer inputs and integrates them into managerial decisions.
voice-of-customer
Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers' responses to new products and services. Bank of America is using a(n) __________ program to improve service quality and service offerings.
voice-of-customer
Customers have a defined __________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers are willing to wait varies with the type of store.
zone of tolerance
Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers' __________, the difference between what her customers want and what they will accept before going elsewhere.
zone of tolerance
When Jaime arrived at her hotel room and saw that the bed sheets had not been changed from the last hotel guest and there were cockroaches in the bathroom, she chose to go elsewhere. An undone, bug-infested room was not in Jaime's __________, which is the difference between what she really wants and what she will accept before looking for another hotel.
zone of tolerance
When John checked into his Orlando hotel, the front desk clerk informed John that his room would not be ready for another twenty minutes. John decided he didn't mind waiting, because he had arrived well ahead of the standard check-in time. John didn't mind waiting twenty minutes because this wait fell within his __________, the area between his expectations regarding desired service and the minimum level of service he will accept.
zone of tolerance
