HM 442 FINAL

What is a risk associated with the use of yield management?

employee morale problems

One of the potential costs in employee empowerment is:

higher labor costs

By guaranteeing that all participants in its dance classes will be able to do the foxtrot by the end of their first lesson or their money will be refunded, the Fred Astaire Dance Studio is:

managing its service promises

What is customer satisfaction influenced by?

perceptions of service quality

Which type of conflict results from the fact that Sullins Cleaning requires its employees to wear uniforms?

person/role

When Joan woke up this morning, she felt terrible. She had a headache, sore throat and upset stomach. She called her doctor's office, explained her condition to the receptionist and asked if she could make an appointment to see the doctor as soon as possible that day since she was going on vacation tomorrow. Joan desired expectation to see her doctor the same day she became sick resulted from a(n):

personal need

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

The first step in developing an effective physical evidence strategy is to:

recognize the strategic impact of physical evidence

________ 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

Southwest Airlines has consistently had one of the best on-time performance records in the airline industry. A critical factor in Southwest's success has been its use of second tier airports such as Midway in Chicago, Hobby in Houston, City in Detroit, and Ontario in Los Angeles. 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 minutes. Southwest Airline's on-time performance reflects the ________ dimension of service quality.

reliability

A service station that offers customers lower gasoline prices at a self-service pump compared to the prices at a full-service pump is:

rewarding customers

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

When Marilyn returned to her oncologist's office for a checkup, she was pleased to find the waiting room had been remodeled and it now contained a large aquarium. There was even a sign that said watching fish is an excellent stress reducer. Since Marilyn did not feel nearly as anxious before going to the oncologist's examination room, she decided the addition of the swimming fish was a good:

service improvement

Dentists have to earn 40 continuing education (C.E.) hours every two years to stay licensed. Dental Learning Systems Co. (DLSC) prepared and presented dental seminars around the United States 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

All aspects of the organization's physical facility are collectively referred to as the

servicescape

By participating in the service delivery process, customers create _____ for themselves

value

When is a consumer more likely to complain?

when the service pertains to something personally EX. Flowers he ordered for his wife's birthday are not delivered

What are examples of low cost research methods?

critical incident studies & Lost customer research

The marketing research done by the motel chain includes insufficient research about what its target market wants would broaden which provider gap?

Gap 1

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 2

Give an 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

Shelton Elementary School only needs its gymnasium from Monday through Friday. On the weekends it rents the facilities to an Upward Bound basketball program sponsored by a local church. By renting its facilities, the elementary school is

adjusting capacity to match demand

What are customer expectations?

beliefs about service delivery that function as standards against which performance is judged

The frontline service employees are referred to as

boundary spanners

Kayla has been having her haircut by Duncan, a hairstylist at Studio 21 Salon, for five years. She has continued to use the same hairstylist even though the price of a haircut at Studio 21 Salon is $10 higher than at competing hair salons. Duncan stays up to date on the latest hairstyles and hair care products and Kayla always leaves the salon with a haircut she loves. Kayla realizes ________ benefits from her relationship with Duncan.

confidence

When Roberta gets her hair cut, she carefully explains to the hair stylist how she expects it to look once the haircut is finished. Roberta is playing the role of a:

contributor to quality and satisfaction

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 cause resentment

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

customers as acquaintances; customers as friends

give an example of a behavior and action that defines the performance expected by customers?

delivers the product on the promised date greets customer within 5 mins of entering the store fixes the product right the first time cost estimate is price customer pays

At any given time, the lack of inventory capability in service firms can result in all of the following scenarios

demand that exceeds max capacity demand that is below optimum supply and demand balanced at the level of optimum capacity demand that exceeds optimum capacity

Hildy's children are giving her a weekend trip to a Lake Tahoe resort. Their expectations of the amenities and services the resort will provide are much higher because they are planning the trip for their mother's approval rather than for their own use. This is an example of a(n) ________ expectation.

derived service

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

difference between customer expectations and perceptions

The servicescapre plays the roles of...

differentiator package socializer facilitator

Give examples of internal customers of a hospital

doctors nurses anesthesiologists bookkeepers who work in the hospital billing office

One of the customer-defined standards at Delta Airlines is "the number of pieces of luggage damaged per day." "The number of pieces of luggage damaged per day" is a _____ customer-defined service standard.

hard

Benford Bank hired marketing researchers when it noticed many people who had savings accounts with the bank did not have checking accounts and credit cards with it. The first task of the market researchers was to learn if the bank wanted to know how its customers perceived the bank as a service provider, if it were more interested in what customers thought was superior about its savings account, if the bank thought some customer expectations were not being met, or if what the bank really wanted to know was how it could change its service to better meet customer expectations. The first thing the research company did was to:

help Benford Bank define the problem and establish research objectives

what occurs when a service firm develops an advertising campaign without input from operations, and contact personnel are not able to deliver service that matches the image portrayed in the advertising?

inadequate horizontal communication

give an example of a hard measurement?

percentage of packages delivered after the promised date number of times a service guarantee is involved length of time it takes to resolve complaints length of time spent on service calls

In many cultures, weddings are timed to occur on lucky days. In 2011, wedding planners from Las Vegas, Nevada, to Mumbai, India, knew long before the auspicious date of November 11th (11/11/11) that this would be one of their busiest days of the year, if not the century. Because other dates would just not be as lucky for the blushing brides and grooms, and simply would not suffice, the wedding planners had to prepare all year for more weddings on this one date than on any other day throughout the year. This example illustrates the ________ characteristic of services.

pershability

A major cause of _____ is the difference between what a firm promises about a service and what it actually delivers.

poorly perceived service

Nine months after the terrorists' attacks on the World Trade Center and the Pentagon, maternity hospitals were filled to capacity as people who had been waiting for the right time to have children decided that there was no time like the present. The maternity hospitals experienced a(n):

random demand fluctuation

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

Boston Symphony Orchestra realized the classic music market was generally becoming older and needed to learn how to appeal to younger concert-goers. It hired a research agency to identify the positive and negative attributes of going to concerts. In other words, the research agency conducted a:

requirements research

Betina had a group of checks that she needed to deposit and another that she needed to cash for a trip she was leaving on the next day. When she got to her bank on Saturday, she was very disappointed to see it was closed. There was one car in the parking lot and a man was walking toward it. She pulled into a place to decide what to do. The man she had seen walked up to her car and asked if he could help. When she explained her problem, the man introduced himself as the bank's vice president and offered to cash her checks with the money he had in his wallet. Betina has since learned that this kind of service is commonplace at her bank. She knows the bank focuses on the ________ dimension of service quality.

responsiveness

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

A florist had promised to have the bridal flowers delivered to the wedding rehearsal dinner by 6 p.m. Because of vehicle problems, the flowers did not arrive until the meal was nearly over and the bride and her mother were very upset. To show how sorry he was for the poor service, the florist put extra flowers in the bridal bouquet and gave each mother and grandmother a free orchid corsage. The bride and her mother were extremely pleased with the extra flowers and have recommended the florist to a number of their friends. The florist is wondering if he shouldn't deliberately underdeliver other jobs, compensate the consumer with some upgrade and benefit from even more positive feedback. The florist is responding to the:

service recovery paradox

When they go away on vacation, some dog owners choose to leave their dogs in posh pet resorts that offer a variety of activities for the dogs, such as swimming pool frolics, nature walks, and hayrides. The dog owners pay around $17 per night for basic boarding at the pet resorts and up to an additional $20 for the other activities, which would be collectively classified as

services

Because of the ________ of services, service producers find themselves playing a role as part of the product itself and an essential ingredient in the service experience for the consumer.

simultaneous production and consumption

For their wedding anniversary, Beth and Rick wanted to go skydiving. They enrolled in a skydiving class at the local airport at a cost of $260. After a 30-minute training course in which everything that was going to happen to them was carefully explained, Beth and Rick were sent up in an airplane with two skydiving experts. Each was placed in a harness arrangement with one of the experts and did what is called a tandem dive. With a tandem dive, Beth and Rick get to enjoy the experience without having to worry about when to open the parachute. The skydiving expert does that for them. This tandem jump illustrates the ________ characteristic of services.

simultaneous production and consumption

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

Enterprise Rent-A-Car closely ties customer service to employee success. With a tracking system called the Enterprise Service Quality Index (ESQi), the company routinely follows up with customers by phone to determine their level of satisfaction with the company. Only completely satisfied customers count toward an employee ESQi score, which is used to measure employee's potential for promotion. Enterprise uses a _____ customer-defined standard.

soft

The employees at Franklin Credit Union correspond to the _____ in the stimulus-organism-response model

stimulus

Standardization of services occurs through:

substitution of technology for personal contact and human effort

Henry, Brad, and Carlos are all studying to be dog groomers at a local Petsmart training academy. Henry and Brad believe they received inadequate training because they could not get a job when the course concluded. Carlos thinks the academy was a great experience and really enjoys grooming the pets at Pet Heaven Kennels. In this example, satisfaction levels were influenced by:

their perception of equity

According to the service profit chain:

there is a direct relationship between employee satisfaction and customer loyalty

What does the American Customer Satisfaction Index (ACSI) demonstrate to service providers?

there is much room for improvement in customer satisfaction

give examples of service inclination skills

thoughtfulness helpfulness courtesy social sensitivity

Federal Express distributes a weekly Service Quality Indicator report showing performance to goals on 12 different items. Upon receipt of the report, managers and contact personnel investigate root causes of service failures. By distributing a weekly Service Quality Indicator report and investigating service failures, Federal Express is addressing which of the following steps in the process for developing customer-defined standards?

tracking measures against standards

A commercial for Carnival Cruises shows a group of friends scuba diving, rock climbing, dancing, and having a really great time. Which strategy for tangibilization is Carnival using in this commercial?

visualization

Last week, Francine bought a 6-month membership package at Planet Fitness. She plans to exercise at Planet Fitness four days a week by participating in an aerobics class, using the nautilus equipment and having a personal trainer. By the time her 6-month membership expires, Francine hopes to lose 20 pounds, tone and strengthen her muscles, improve her cardiovascular fitness and look and feel more attractive. Francine's expectations for her health and physical appearance reflect her ________ level of service for Planet Fitness.

Desired

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

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 number of missed pick-ups, number of lost packages, and 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 2

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 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 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

Benford Bank hired marketing researchers when it noticed many people who had savings accounts with the bank did not have checking accounts and credit cards with it. The researchers would conduct ________ research if they wanted to test the hypothesis that customers do not like the checking account and credit card services of Benford Bank.

Quantitative

Give an 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"

Leonard has been commuting to New York City on the Long Island Railroad for 10 years. Every morning he takes the 7:00 a.m. train that is scheduled to arrive in New York at 8:15 a.m. from Huntington, a suburb of New York. Although Leonard would like the train to arrive in New York on time, he knows from his 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

A clean-smelling restroom is an example of a positive:

ambient condition

What do customer complaints provide?

an adequate source of information about customers' perceptions and expectations of services

Waiting time feels longer when customers:

are alone while waiting

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 must next

blueprint the physical evidence of service

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

Customers are viewed as _____when they produce a service for themselves.

competitors

The new owner of the Atlanta Falcons football team wanted to know why game attendance was low. Former purchasers of season tickets were asked to provide an anecdote about a satisfying and a dissatisfying experience at a Falcon game. The researchers used:

critical incidents studies

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

defines the problem and research objectives

If you buy your tickets early for a live theater production in Rome, you'll pay about 30 percent less, than if you buy them on the day of the show. The lower price helps the early sale of tickets and guarantees the audience will be large enough to justify the cost and effort put into the production. What strategy does the theater company use to shift demand for theater tickets?

differentiate on price

What are some strategies for enhancing customer participation in the service process?

educate customers manage the customer mix recruit customers define customer roles

what is important to consider when innovating or developing a new service?

employ service and design thinking and techniques

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

What causes provider gap 3?

failure to match supply and demand ineffective employee recruitment Lack of employee empowerment perceived control and teamwork Channel conflict over objectives and performance

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

On site, customers require two kinds of orientation. They are place orientation and

function orientation

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

Because Virginia's brother died while he was cashing a check at the local bank, Virginia has always hated any type of banking. When it became necessary for her to go to the bank to empty her brother's safe deposit box, she complained the whole time about the inept service, the too-cold air conditioning and the poor parking. Virginia's customer satisfaction was adversely influenced by:

her emotional state

A tax accountant may provide a different service experience to two different customers on the same day depending on their individual needs and personalities and on whether she is meeting with them when she is fresh in the morning or tired at the end of the day. This is an example of service ________.

heterogeneity

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

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

On his way to work today, Terry saw a billboard for a physician's group that specialized in vascular surgery. In his 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 varicose veins. Which trend that influenced the development of services marketing concepts and strategies is illustrated here?

increased competition in professional 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

The fundamental issue underlying supply and demand management in services is the lack of _____ capability.

inventory

What is wrong with the following service goal posted in a restaurant: "Do not keep customers waiting too long to be served?

it is not specific enough

The marketing department at a well-known university has 11 full-time faculty members and 3 part-time faculty members. There are more than 400 marketing majors at this university. The primary constraint for offering a course in direct mail marketing would more than likely be:

labor

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

The Detroit Tigers, a professional baseball team, prohibits the sale and consumption of alcohol in the "Family Section" of Tiger Stadium. The Detroit Tigers are:

managing the customer mix

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 firms are placing increased emphasis on providing services

external marketing is...

marketing that refers to communications a firm uses to make promises to customers regarding service delivery.

what product has a high degree of nonsearchability?

massage therapy

Cookies is a retail store where customers host parties for guests to bake and decorate cookies. If the retailer offers a money back guarantee if the party experience is boring. In this way, the retailer is:

offering service guarantees to manage service promises

After determining that reliability was a major concern for its customers, a pest control company translated customer expectations into behaviors and actions for its monthly sprayings of homes and businesses. Having accomplished that, the pest control company needs next to:

prioritize the behaviors and actions for which customer-defined standards will be set

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:

procedural fairness

A telephone order taker for a catalog retailer is expected to treat each customer with concern and courtesy and be willing to spend as much time as needed to get the order taken, while not leaving other customers waiting on hold for too long. The telephone order taker is likely to experience _____ tradeoff.

quality/productivity

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:

take no action whatsoever

Why would a blood bank, which pays people for their blood donations and then sells this blood to hospitals, use the name Blood Assurance?

the assurance dimension of service quality inspires trust and confidence

Inadequate customer communication occurs when:

the service is difficult for the customer to evaluate even after it has been delivered

Jamie desires a haircut that will look just as attractive when she awakens 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

The process of managing multiple customer segments is called _____ management.

compatibilty