Chapter Two Service Marketing

Which of the following factors does NOT lead to provider gap 4? -Creating clear standards -Over-promising in advertising -Insufficient communication between advertising and operations -Absence of strong internal marketing program -Differences in policies and procedures across company branches

-Creating clear standards

The _____ gap is the difference between customer expectations and perceptions. -Value -Service -Quality -Customer -Delivery

-Customer

Provider _____ is the difference between customer expectations of service and company understanding of those expectations. -Gap 3 -Gap 4 -Gap 2 -Gap 1

-Gap 1

The Oaks at Ojai is an award-winning destination spa in California. Two-thirds of The Oaks' guests are repeat visitors who return to the spa for a fun and relaxing service experience unsurpassed by other spas. Just before heading home, each guest is asked to complete a questionnaire and provide feedback about his or her experience. Questions are specific and management meets weekly to review and discuss the improvements suggested by guests. Each guest who completed a questionnaire receives a letter of thanks with a promise to follow up on any issues mentioned. By conducting research and focusing on customer relationships, The Oaks is closing provider _________ of the gaps model of service quality. Gap 2 Gap 3 Gap 1 Gap 4

-Gap 1

FedEx developed a 12-item statistical Service Quality Indicator to measure customer satisfaction and service quality. The index is comprised of customer-defined performance standards such as the number of missed pick-ups, number of lost packages, and the number of late deliveries. Each of the performance standards is weighted based on the relative importance of each standard to customers. By developing a Service Quality Indicator that incorporates customer-defined performance standards, FedEx is closing provider _____ of the gaps model of service quality. Gap 3 Gap 4 Gap 1 Gap 2

-Gap 2

Home Design is a reasonably priced source for home decorating items like bronze bookends and silver candlesticks. Until its recent remodeling, customers who happened into the store were often disappointed because they expected the store to be a discount store. The front of the store had some masonry damage. Its parking lot needed repaving. Its store windows were stained and one was cracked. Now customers who enter the store expect to find unique decorating items because the outside of the store is so tastefully done. This change in servicescape was a way to narrow provider _____ of the gaps model of service quality. Gap 4 Gap 2 Gap 1 Gap 3

-Gap 2

Provider ______ is the difference between company understanding of customer expectations and the development of customer-driven service designs and standards. Gap 3 Gap 4 Gap 1 Gap 2

-Gap 2

In India, weddings are timed to occur when Venus is in the ascendant and Jupiter is strong. This day is deemed lucky. In 2005, almost 15, 000 couples in New Delhi had their wedding on December 25, the day astrologers announced would be the best day for a wedding. It is very likely that wedding planners in New Delhi have difficulty narrowing provider ______ of the gaps model of service quality due to their inability to match supply and demand. Gap 1 Gap 3 Gap 2 Gap 4

-Gap 3

Provider _____ is the discrepancy between the development of customer-driven service standards and actual service performance by company employees. -Gap 3 -Gap 2 -Gap 4 -Gap 1

-Gap 3

The New York Palace, an upscale hotel in New York City, synchronizes demand and hotel capacity by offering an attractively priced weekend package during the fall when demand for its rooms slows down. In addition to having a luxury-filled weekend at the New York Palace for $219 per night, guests enjoy very select privileges from Saks Fifth Avenue. Its weekend package provides a personal shopping coordinator, complimentary gift wrap and package delivery to the hotel, individual beauty consultation, and a 10 percent Saks discount. The New York Palace's weekend package closes provider ____ of the gaps model of service quality. Gap 3 Gap 2 Gap 4 Gap 1

-Gap 3

American Airlines pilots and crews are trained to inform customers immediately when flight delays occur and to keep customers advised at regular intervals about the changes in a flight's schedule. By keeping customers informed during a flight, American Airlines is closing provider _____ of the gaps model of service quality. Gap 4 Gap 3 Gap 1 Gap 2

-Gap 4

Extron Electronics sells coaxial cables for connecting computers to all types of peripheral devices like printers, modems, and fax machines. For the benefit of its customers, Extron provides a laminated card with pictures of all the possible cable connections that a customer could need. With this card, a customer can order from one to any number of connectors with as many feet of cable as is needed. Orders can be placed by calling a toll-free number, sending an email, or using the company's website. Company reps are also available 24-hours a day in case the customer is not sure which drawing on the card matches his or her needs. By integrating its services marketing communications, Extron is closing provider _____ of the gaps model of service quality. Gap 3 Gap 1 Gap 4 Gap 2

-Gap 4

Provider _____ is the difference between service delivery and the service provider's external communications. Gap 4 Gap 3 Gap 2 Gap 1

-Gap 4

The Customer Gap Provider Gap: Gap 1- The _____ Gap: not knowing what customers expect Gap 2- The _____ Design and ______ Gap: not having the right service designs and standards Gap 3- The Service ______ Gap: not delivering to service standards Gap 4- The ______ Gap: not matching performance to promises

-Listening -Service; Standards -Performance -Communication

Which of the following factors is NOT a factor leading to provider gap 1? -Lack of upward communication -Insufficient relationship focus -Inadequate marketing research orientation -Inadequate service recovery -Over-promising

-Over-promising

Hertz Car Rental has a customer loyalty program called Gold Plus Rewards that rewards members with one point per dollar spent on qualifying rentals. Free weekend rentals can be earned for as few as 500 points. By having a customer loyalty program, Hertz is using __________ marketing. -Proactive -Transactional -Relationship -Acquisition -Developmental

-Relationship

Which of the following is NOT a source of customer expectations? -Word-of-mouth communications -Target market -Sales promises -Pricing -Advertising

-Target market

Companies that emphasize acquiring new customers rather than retaining current customers are using _____ marketing. -Acquisition -Relationship -Proactive -Transactional -Developmental

-Transactional

The gap between the service delivery and the external communications to customers is called the ______ ___.

-communication gap

Key Factors Leading to Provider Gap 4: -Lack of integrated services marketing _____ -Ineffective _______ of customer expectations -_________ -Inadequate _______ communications -Inappropriate __________

-communications -management -overpromising -horizontal -pricing

The gap between the customers' expectation of service and their perception of the service is called the ________ ____.

-customer gap

_________-_______ ________: different from the conventional performance standards that companies establish for service in that they are based on pivotal customer requirements that are visible to and measured by customer -they are operations standards set to correspond to customer expectations and priorities rather than to company concerns such as productivity or efficiency

-customer-driven standards

Gaps Model of Service: six interrelated factors -_______ service -_______ service -_________ delivery -________-driven service designs and standards -______ perceptions of consumer expectations -_____ communications to customers

-expected -perceived -service -customer -company -external

Key Factors Leading to Provider Gap 3: -Deficiencies in ______ _____ policies -Failure to match _____ and ______ -Customers not ______ roles -Problems with service ________

-human resources -supply; demand -fulfilling roles -intermediaries

Finally, the large gap between customers' expectation of service and company's perceptions of consumer expectations results in a ______ ____.

-listening gap

The sources of customer expectations: -__________- controlled factors: pricing, advertising and sales promises -factors the marketer has limited ability to affect: innate personal needs, word-of-mouth communications, and competitive offerings

-marketer

The gap between the service delivery function and the customer driven service designs and standards is called the ______ ____.

-performance gap

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

-provider

______ marketing: related to the listening gap is a lack of company strategies to retain customers and strengthen relationships with them -recognize that clients have the potential to spend more with them if they provide excellent service

-relationship

Key Factors Leading to Provider Gap 1: -Inadequate customer ____ orientation *insufficient customer research, research not focused on service quality, inadequate use of market research -Lack of _____ communication *lack of interaction between management and customers, insufficient communication between contact employees and managers, too many layers between contact personnel and top management -Insufficient _______ focus *lack of market segmentation, focus on transactions rather than relationships, focus on new customers rather than relationship customers -Inadequate service _______ *lack of encouragement to listen to customer complaints, failure to make amends when things go wrong, no appropriate recovery mechanisms in place for service

-research -upward -relationship -recovery

Key Factors Leading to Provider Gap 2 -Poor _____ design -Absence of customer-driven ______ -Inappropriate _____ evidence and servicescape

-service -standards -physical

The gap between the customer driven service designs and standards function and the company's perceptions of consumer expectations is called the ______ ______ _____ ______ ____.

-service design and standards gap

_________: the physical setting where the service is delivered

-servicescape

________ marketing: more conventional emphasis on acquiring new customers rather than retaining them

-transactional