Exam One (Ch. 1-5)

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

The factors that influence adequate service expectations are ________ in nature and fluctuate ________ than the factors that influence desired service expectations.

short-term; more. Adequate service is influenced by perceived service alterations & situational factors.

Customers often cannot accurately evaluate the technical qualities of legal work like that provided when a homeowner refinances his or her property. Which of the following cues would the homeowner be likely to use to evaluate the legal services?

-Courtesy of the lawyer and staff -How the lawyer dresses -The lawyer's use of humor and empathy -Diplomas on wall

For technology-based service encounters, which of the following is NOT a form of failure to deliver on the core promise?

-Poor website design -Technology system failure -Errors on the part of the customer -Process failures in follow-up

Which of the following can influence how satisfied a customer is with a service?

-Product features -Customers' perception of service quality -Customers' emotions -Uncontrollable situational factor

Business travelers today are more likely to order room service than ever before. A tired piece of chicken in a congealed sauce kept company by a heap of wilted lettuce will likely cause the customer to think negatively about his or her hotel stay. This is an example of how ________ influences customer satisfaction.

A product feature

The most critical stage in the service marketing research process is when the marketing researcher:

Defines the problem and research objectives

The greatest potential variability in the interaction between a customer and a service firm occurs in a(n) ________ service encounter.

Face-to-Face: Direct personal contact between an employee and a customer; bases for quality are verbal and non-verbal cues, symbols.

The use of transactional marketing will tend to narrow provider gap 1.

False

Word-of-mouth communication about a service may be either personal or nonpersonal, but it is always verbal.

False

Features research and lead user research are both categorized as types of:

Future expectations research

Which of the following is NOT a research objective for improving upward communication in a service organization?

Gain first-hand knowledge about competitors

Historically, the Japanese have had poor dental care. As part of their beauty regimen, the Japanese do have a habit of lightening and whitening their skin. Teethart has developed "tooth manicure" salons, which allow Japanese to match their teeth coloration to their skin. Each treatment takes place in a private booth, which contains an ergonomically-designed chair, muted lights and New Age-style music. The walls are painted calming shade of blues and greens. By using physical evidence to reduce anxiety, Teethart is narrowing provider ________ of the gaps model of service quality.

Gap 2. The Service Design and Standards Gap: Customer-driven service designs and standards & Company perceptions of customer expectations

The owner of a small but growing business, Terry Franklin was becoming overwhelmed with requests from his outside customer service representatives for decisions about solutions to customer problems. Noting the mountain of his own work that was piling up, he instituted a policy change and informed the representatives. "Keep the customers happy," he said. "If it's a problem that takes less than $100.00 to fix, there's no need to call me. Use your judgment and go ahead and fix it." Terry Franklin is using empowerment to narrow provider ________ of the gaps model of service quality.

Gap 3. The Service Performance Gap

Jiffy Lube, a franchiser of 10-minute oil and lubrication services, has been plagued by a lack of consistency across franchise outlets. The lack of consistency has resulted from Jiffy Lube's failure to require franchisees to adhere to common service standards as it rapidly expanded its franchise business across the U.S. Jiffy Lube's failure to require franchisees to adhere to common service standards has led to provider ________ of the gaps model of service quality.

Gap 3. The Service Performance Gap: Service delivery & customer-driven service designs and standards

Which of the following statements about predicted service is true?

If the consumer predicts good service, the level of adequate service is likely to be higher than if he or she predicted poor service

One of the most useful forms of analysis in marketing research is the ________, which combines information about customer perceptions and importance ratings.

Importance/performance matrix

Denise said all she expected from the day care at the gym she belonged to was to get her children back at the end of an hour and learn the police had not been called because of something they did. She uses this particular gym because the day care will let her unruly children stay even though it provides only the nominal supervision. Denise has ________ expectations about the day care.

Minimum tolerable

Horatio's Hardware Stores recognizes sales associates who provide excellent customer service by rewarding them with a "Hero Award," which is displayed in the store where the sales associate is employed. To measure a sales associate's service performance, which type of research should Horatio's Hardware Stores use?

Mystery shopping

The health industry in the U.S. is an $840 trillion business. Adam.com is trying to cash in on some of that money by providing an Internet service that will help hospitals answer their patients' health-related questions. Every year, Adam.com does an informal survey of its customers. It uses open-ended questions to determine what people like and dislike about its service. Adam.com is conducting ________ research.

Qualitative

________ has consistently proven to be the most important determinant of service quality.

Reliability

When consumers have problems with a Web site, they use ________ dimensions to evaluate e-service quality.

Responsiveness, compensation, and contact

The seven elements of the marketing mix for services are product, promotion, place, price, process, progress, and people.

True

The extent to which customers recognize and are willing to accept variation in service performance is called the ________:

Zone of tolerance

Which of the following service encounter themes reflects employees' responding to problem customers, i.e., customers who are unwilling to cooperate with the service provider, other customers, industry regulations, and/or laws?

Coping

A human resources manager who is hiring a sales trainer to improve the company's sales close rate will be concerned whether the trainer will provide the needed tools and motivation to perform his or her job. The human resources manager wants the company's top management and its sales force managers to approve of his selection of trainer. This is an example of a(n) ________ expectation.

Derived service

US Franchise System, Inc. (USFS) franchises its brand names such as Microtel Inns & Suites, Hawthorn Suites and Best Inns to independent hotel owners and operators. Every three months, employees from a different franchise overseen by USFS conduct customer satisfaction telephone surveys. Among the employees who regularly participate in the survey process are senior managers, who are trained and certified to conduct survey interviews. Which type of interaction activity is USFS using to improve upward communication?

Executive listening approaches

Tom Grantham, a U.S. citizen, decided to outsource the preparation of his personal income taxes to a company in India. After he emailed his earnings and scanned receipts, his tax return was completed in 2 days at a cost of $50 - about one-third of what a U.S. firm like H&R Block charges. However, he had to file his return as "self-prepared," since it was not prepared by a U.S. accountant. Using a foreign service provider may require customers to reset their:

Expectations

Because a product is tangible, it cannot be involved.

False

One of the benefits of conducting marketing research on the Internet is the composition of the survey samples.

False

Service providers like insurance companies that emphasize acquiring new customers rather than retaining current customers are broadening provider ________ of the gaps model of service quality.

Gap 1. The Listening Gap. Not knowing what customers expect

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 1. The Listening Gap: Customer expectations & Company perception of customer expectations

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 4. The Communication Gap: Service delivery & External communications to customers

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 services.

Heterogeneity. Implications of Heterogeneity: Service delivery & customer satisfaction depend on employee and customer actions, Service quality depends on many uncontrollable factors, & there is no sure knowledge that the service delivered matches what was planned and promoted.

On a recent visit to The Home Depot store, a sales associate greeted Madison when she entered the store, helped her locate the items she needed to repair her gutters and suggested how she could prevent gutter problems in the future. The assistance provided by the sales associate illustrates the ________ of services.

Intangibility

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. The service provided by the astrologers is an excellent illustration of the ________ of services.

Intangibility. Implications of intangibility: services cannot be inventoried, services cannot be easily patented, services cannot be readily displayed or communicated, & pricing is difficult.

________ quality refers to how a service is delivered to the customer.

Interaction

Extron Electronics makes 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 using a toll-free number, a fax number or an e-mail address. 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. Orders are shipped within 48-hours of receipt. If a customer is not completely satisfied with his or her order, Extron has a 100 percent satisfaction guaranteed return policy. Which of the following trends that has influenced the development of services marketing concepts and strategies as illustrated by Extron's focus on customer service?

Manufacturing films are placing increased emphasis on providing services

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

Which of the following is NOT an example of a service business?

Paper Mill

Historically, the Japanese have had poor dental care. As part of their beauty regimen, the Japanese do have a habit of lightening and whitening their skin. Teethart has developed "tooth manicure" salons, which allow Japanese to match their teeth coloration to their skin. Each treatment takes place in a small booth, which contains an ergonomically-designed chair, muted lights, and New Age-style music. The walls are painted calming shade of blues and greens. Teethart uses the ________ element of its service to reduce stress associated with dental procedures.

Physical evidence

Trailer calls are also called:

Post transaction surveys

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.

Relationship

The Offshore Sailing School in Jersey City, New Jersey, offers a basic sailing course, which takes place in three days over two weekends, for $495. Students enrolled in the course attend classroom sessions that cover the theory and technology of sailing and receive hands-on sailing instructions in the water that introduces them to all fundamental sailing skills. Student participation in the Offshore Sailing School's classroom sessions and hands-on sailing instructions illustrates the ________ characteristic of services.

Simultaneous production and consumption: customers participate in and affect the transaction, customers affect each other, employees affect the service outcome, decentralization may be essential, & mass production is difficult.

The last time Lia went shopping at Nordstrom's department store she had a very pleasant experience. When she entered Nordstrom's, she asked a sales associate named Sarah for assistance finding a pair of jeans, a pair of shorts, a skirt, and matching tops. Sarah enthusiastically agreed to help and treated Lia like royalty throughout her two-hour shopping trip. Sarah stayed with Lia the entire time she was in Nordstrom's and showed her a number of different styles of jeans, shorts, skirts, and tops. Sarah brought Lia additional items while she was in the fitting room and offered her advice on accessorizing her outfits. After the sale, Sarah thanked Lia for her purchases. Lia's experience at Nordstrom's is an example of which type of service encounter incident?

Spontaneity

All businesses and organizations that operate on the Internet are essentially providing a service.

True

The absence of customer-defined standards will broaden provider gap 2.

True. Not having the right service designs and standards.

Ad puffery such as "The Best Pizza in the State" could lead to provider gap 4.

True. Not matching performance to promises.

Customers typically notice service when it falls outside the zone of tolerance.

True. The range of expectations between desired and adequate can be wide or narrow, can change over time, can vary among individuals, may vary with the type of product/service.

Before going out to dinner with her husband at Formia Ristorante, a contemporary Italian restaurant in New Jersey, Jennifer read a review of Formia in the local newspaper. The review indicated Formia is an unpretentious and unassuming, but exceptionally fine, contemporary Italian restaurant. Five servers who are under the owner's watchful eye attentively care for the 14 roomy tables in the single large dining room. What the servers may lack in experience is more than compensated for by tempered enthusiasm and sincere desire to ensure guests are comfortable. The review of Formia that Jennifer read is a(n):

Word-of-mouth communication