MKT 5364 QUIZ 4

Managing customer expectations

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 internal marketing communications

By involving employees in cross-functional teams to align their jobs with end customer requirements, a service firm is:

Created tiered-value service offerings

Cable TV companies that offer subscribers different programming packages are:

Inadequate management of customer expectations

Cookies is a retail store where customers host parties for guests to bake and decorate cookies. Children attending a party staged at Cookies were upset when the adult owners of the store did all of the baking while they watched. The store owner's insurance provider had told her that she was not covered if a minor was injured on her premises. The children's disappointment was a result of:

Low price

Derrick saves coupons from 10-minute oil and lubrication services (e.g., Jiffy Lube, Quick Lube and Speedi-Lube) and when he needs to have his car's oil changed, he chooses the oil and lubrication service that offers the best deal on a 10-minute oil change. For 10-minute oil and lubrication services, Derrick defines value as:

Defining customers' roles

Discover Card has an automated inquiry system that enables card members to obtain their current balance, available credit and payment information via telephone without speaking to an account representative. With its automated inquiry system, Discover Card is enhancing customer participation in the service process by:

educating its customers

Each year representatives of college activities boards throughout the United States gather at regional National Association of College Activities (NACA) conventions to listen, talk to and hire acts for the upcoming school year. Auburn Moon, a talent agency from Philadelphia, is one of the vendors at the NACA conventions. The owner of this agency offers attendees at the conventions a free download of two or three songs by each of the acts she represents. Students can listen to the songs at their leisure and share the music with other decision makers on campus. With the free downloads, Auburn Moon is ________ about its entertainers.

Managing customer expectations

Eddie Bauer, a catalog retailer, offers customers three different delivery options: 5 to 7 days via standard delivery; 3 to 4 days via express delivery; or 2 days via express plus delivery. The delivery rates are higher for faster service. For example, on orders over $75 standard delivery is $9.95, express delivery is $15.95 and express plus delivery is S18.95. By offering different delivery options, Eddie Bauer is:

Managing customer education

Emory Vision Center has a packet of information that it sends to people who are interested in LASIK surgery. The center also has a doctor available to speak to organizations about how vision can be corrected. In addition, it publishes a newsletter called The Visionary in which it offers family discounts, clarifies patient expectations and notes awards and honors the center receives. The center also manages a web site that contains news on the latest innovative research techniques. Through its communications with current and potential patients, Emory Vision Center is:

inadequate internal marketing communicators

Every functional area in a Marriott Hotel operates under standard operating procedure manuals where all processes and services are carefully documented. Housekeepers, for example, must perform 64 required steps in cleaning a room. These specific guidelines result in uniformly clean rooms anywhere in the Marriott Hotel chain. By having specific guidelines for cleaning a room, Marriott is avoiding one of the problems associated with:

Predictable demand cycle

For those people who think they need some sort of psychological counseling but don't feel they have the time, talkspace.com allows users to communicate with a licensed therapist online. Due to a(n) ________, the web site's owners know most of their business comes in the evenings and on weekends, so they have hired therapists to work for the online service at these times.

outsourcing activities

Hewlett-Packard uses FedEx to handle all of its fulfillment orders from its retail web site. Once an order is placed at the HP web site, it is automatically transmitted to FedEx's Memphis headquarters. Orders are packaged at FedEx's warehouse and shipped by FedEx to the HP customer. This arrangement was set up as a solution to problems with distribution capacity that HP experienced prior to the implementation of this arrangement. Which strategy is HP using to adjust capacity to match demand?

Productive resource

Hyatt Hotels has installed automated check-in machines at some of its hotels. To check in and get a room key, guests insert a credit card into the machine. A guest using Hyatt Hotel's automated check-in machine is playing the role of a:

self-service techniques

Hyatt Hotels has installed automated check-in machines at some of its hotels. To check in and get a room key, guests insert a credit card into the machine. Hyatt is experimenting with the use of:

Providing inadequate customer education

Mike hurt his back and has to go to physical therapy every other day. He has a series of exercises he is supposed to do on the days he does not see the therapist. After two months, Mike was not feeling any better and complained to the therapist who at that point realized Mike was not performing all of the stretching exercises that he should be at this point in his rehabilitation. Mike had been handed a booklet when he started his therapy. Because he had only been instructed in how to perform some of the exercises in the booklet but not all of them, he had thought he was not to do the others. Mike feels like he has been wasting his time. The service provider has erred by:

Vary the service offering

New York City rents a number of its public school facilities to local flea markets on weekends during the school year and summer months. New York City is using which of the following strategies for shifting demand to match capacity in its public schools?

Differentiate on price

Peak demand for rooms at the Phoenician, an upscale hotel in Scottsdale, Arizona, occurs during the tourist season from November through mid-April. During the summer slow season when demand for rooms drops considerably, the Phoenician encourages local residents to experience the beauty of the hotel on weekends by offering attractively priced weekend packages. The Phoenician uses which of the following strategies for shifting demand to match capacity?

Gap 3

Roger Simpson is an event planner who specializes in planning family reunions. He typically works with one or two members of the family who provide him with all the family-related information. If a family reunion planner refuses to provide Simpson information about Uncle George and his descendants because he did not like Uncle George, that family member will have contributed to the widening of provider ________ by preventing Simpson from doing his job to the best of his ability.

The quality I get for the price I pay

Salespeople are often on the road three nights every week. They cannot afford to stay in the most luxurious of hotels, but they do appreciate amenities like a good mattress, a firm pillow and a comfortable work area. They want the price they pay to be commensurate with the amenities provided by the hotels. They tend to define value as:

Adjusting capacity to match demand

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:

time

The process for installing a new in-dash audio system in Leo's car took almost four hours, which Leo spent sitting in the waiting room of J.J.'s Auto Sound. Leo paid ________ costs for the installation of his new audio system.

coordinate its external communications

The reason Sophia chose to stay at a particular chain of bed & breakfast inns was because its web site promises free breakfast at any inn that did not offer a wake-up service. When Sophia stayed at one of the chain's inns, she was allowed to oversleep and missed an important sales call even though she had asked to be awakened at 7:00 AM. The inn manager told her that his hotel did not offer a wake-up service and apologized for her inconvenience. He did not offer her a free breakfast and Sophia swore never to stay at the inns again. The chain of inns needs to:

Market segmentation pricing and value pricing

What two pricing strategies are most commonly used when the customer defines value as quality for the price paid?

Rewarding customers

When Alicia went to talk to a cleaning service about having the carpets in her apartment shampooed, she was told that if she would rent the service's equipment and do it herself, it would cost her 50 percent less and be done much sooner because the service's personnel were booked solid for the next two weeks. The cleaning service is:

Inadequate management of service promises

When Selena purchased a new refrigerator from Sears, she was told by the salesperson that the refrigerator would be delivered to her apartment on Thursday between the hours of 1:00 p.m. and 3:00 p.m. However, the refrigerator was not delivered until 4:00 p.m. on Friday. The late delivery caused Selena to be dissatisfied with Sears's delivery service. Selena's dissatisfaction with Sears' delivery service resulted from:

Empathy

Whether a household or a firm chooses to produce a particular service for itself or contract externally for the service depends upon all of the following EXCEPT:

Price skimming

Which of the following is NOT an example of an effective pricing strategy to use when the customer defines value as "all that I get for all that I give?" Price bundling? Price skimming? Results-based pricing? Price framing? Complementary pricing?

Money

Which of the following is NOT considered a capacity for constraint for a service provider? Labor? Time? Money? Facilities? Equipment?

price signaling

________ occurs in markets with a high concentration of sellers. Any price offered by one company will be matched by its competitors in order to avoid giving the low-price seller a distinct advantage.

Using narrative

A chiropractor published a newspaper insert ad that contains almost 1,000 words and described in detail how he has helped patients who have been diagnosed with rheumatoid arthritis and other debilitating diseases to the point where they no longer have to rely on medication and no longer need to have any assistance when walking. The chiropractor is ________ to address service intangibility.

price signaling

A day after US Airways announced its new low fares for the autumn on travel from New York (i.e., Newark and LaGuardia Airports) to selected cities in the United States and Canada, American Airlines matched their fares. American Airlines is using a ________ strategy.

perishability

A professional baseball team that has unsold tickets for a Friday night game cannot resell those tickets for a game the following afternoon due to the ________ characteristic of services.

Function

A sign at the entrance to the children's hospital contained the hospital's mission statement and explained its vision. This sign provided patients and their families with ________ orientation.

contributor to quality and satisfaction

After Janine returned home from a vacation in California, she noticed that her new luggage had a five-inch tear in it. Rather than assuming that the damaged luggage was a cost of flying and there was nothing to be done about it, she called the airline's customer service center. The person answering the phone at the center mailed her the instructions for getting her suitcase repaired at the airline's expense. Janine was pleased with the repair when the suitcase was shipped home about a month later. In this scenario, Janine played the role of:

Value is low price

American Woman Fitness Centers offer first-time customers a 3-month membership for $79, a saving of $20 off the regular 3-month membership price. American Woman Fitness Centers' pricing strategy is aligned with which of the following customer definitions of value?

Multiple queue

At Benford Bank, all customers opting for the drive-thru can pick from one of three lanes. One line may seem to move faster than the others, but all allow customers to accomplish any type of transaction. Which of the following queue configurations does Benford Bank use?

Making realistic promises

Because he has a busy practice, new patients for dentist Dr. Kirby Brown are informed that, unless there is an emergency, the first available appointment will be in three months. If they accept the appointment, they will be reminded of their appointment by a courtesy call. This first visit will take about an hour. On this visit, their teeth will be cleaned and x-rayed, their gums will be examined and the dentist will talk to them about future dental treatment needs. Dr. Brown is ________ to manage customer expectations.

Quantity

If a family has one child enrolled in Diane's Day Care Center, it costs $75 per week. If a family has two children enrolled at Diane's, it costs $135. Diane's is using a(n) ________ differential.

Two-part pricing

If you visit a county or state fair, you will pay a basic admission fee plus other fees if you want to enjoy any of the amusement rides. County and state fairs that price this way are using:

All that I get for all that I give

In talking to a travel agent, T. J. Matthews learned that he would have to pay the same amount of money for a three-day/two-night package right outside the gates of Walt Disney World for his family of four as he would for a five-day/four-night stay at a hotel that was about 50 miles away from Walt Disney World. Matthews decided the farther hotel was a much better value. Matthews defined value as:

Mental impalpability

Josh's teachers describe him as a mathematical genius. His parents did not get any education after high school. They have hired Josh a tutor even though they do not understand why Josh needs to understand string theory and quantum physics. The tutoring that Josh receives has a high degree of ________ for Josh's parents.

Competitor

Joyce and Amber are both new mothers who are concerned about child-proofing their homes to keep their babies safe. Joyce called Baby Safe, an agency that will send an expert in childcare to her home to conduct an individualized survey of the home and advise on dangerous situations. Amber went on the Internet and found a Web site that told her exactly what she should do to make her house safe. Which of the service delivery roles did Amber perform?

Enhance customer compatibility

Landis was pleasantly surprised to find a "No Smoking" sign at his favorite pub. He had to limit his visits because he is allergic to cigarette smoke. Now he can visit as often and for as long as he likes. Landis was afraid the sign might hurt the pub's business, but he was pleased to discover how many of the pub's regulars felt the same way he did. The "No Smoking" sign served to:

Time

Many white-collar workers have heard the story about the busy executive who billed the doctor for keeping him waiting when the patient showed up promptly at his appointment time or has dreamed of doing it themselves. This is an example of the ________ costs of services.

Differentiating waiting customers

Supermarkets with express checkout lanes for customers purchasing 10 times or less using which of the following waiting line strategies?

promoting the company

The Chatham Landing apartment complex offers tenants $200 off one month's rent for each new tenant referral. By rewarding tenants for making a tenant referral, Chatham Landing is encouraging tenants to perform which of the following customer jobs?

Employing operational logic to reduce wait

The Long Island Railroad installed ticket vending machines in train stations to expedite the purchase of train tickets during periods of peak demand. The Long Island Railroad is using which of the following waiting line strategies?

Contingency pricing

The ad for legal services that Marla saw indicated the lawyers would receive no money unless their client did. To Marla, this statement indicated the legal firm offering this service was using:

Establishing a reservation process

The appliance store told the home owner that it would deliver her new stove on Monday between 4 p.m. and 5 p.m. The appliance store is using which of the following waiting line strategies?

Communicate with customers

The busiest time for tax preparers is the week prior to April 15. Many tax preparers send out mailings to their regular customers asking the customers to bring their tax information in to the tax preparer's office in January and February. The mailings explain how they will receive their tax refunds much quicker if they bring their information in now rather than wait till the last minute. Tax preparers are using which of the following strategies for shifting demand to match capacity?