CH. 13 - Services

Which statements about dealing with service failures are true? (Choose every correct answer.) The company should have a preapproved set of resolutions ready to apply. Teamwork between the company and customers usually gives the best result. Customers are happiest if the company listens to their complaints and then tells them what to do. The proper approach can create a somewhat positive outcome from a negative experience. The company should find a way to involve customers in the actual resolution process.

Teamwork between the company and customers usually gives the best result. The proper approach can create a somewhat positive outcome from a negative experience. The company should find a way to involve customers in the actual resolution process.

Which of the following would most likely cause the delivery gap to negatively impact service quality? The company doesn't understand what the customer wants. The company uses too many ads in its advertising campaign. The company encourages an upward flow of information from customers. The company fails to accurately forecast supply and demand.

The company doesn't understand what the customer wants.

McDonald's has a policy that, in addition to ketchup, mustard, and onions, all burgers must have two pickles. This contributes to efforts to reduce the ______ gap and provide measurable service quality based on expectations. delivery standards knowledge communication

standards

Which of the following characteristics is NOT one that distinguishes services from products? Volatility Perishability Intangibility Heterogeneity Inseparability

volatility

True or False: Delivery gaps always result in a service failure.

True

The most fundamental difference between services and goods is that services are ______. incentives intangible cheaper homogeneous

intangible

True or False: Service providers that have high customer satisfaction ratings this year are unlikely to achieve the same level of satisfaction next year.

False

Which of the following are benefits that a service provider receives from engaging in effective service recovery? (Check all that apply.) Increased purchase intention Improved word of mouth Higher levels of customer satisfaction than prior to the service failure Lower service costs

Increased purchase intention Improved word of mouth

Mary went to the local supermarket, where she shopped regularly, to purchase her groceries for the week. Which of the following was a delivery gap that resulted in a service failure by the grocery store? Mary had to wait a long time in the checkout line because the clerk kept making errors using the cash register. Mary did not find a parking spot that was as close as she wanted to the store. It took Mary a little longer to find what she needed since they recently remodeled the store. Mary had trouble finding the coffee aisle because the signs were unclear.

Mary had to wait a long time in the checkout line because the clerk kept making errors using the cash register.

One of the most effective methods to assess how well a firm is delivering adequate service to consumers is to employ the ______ Model to evaluate their service provision. Intangibility Knowledge Service Gaps Service Recovery

Service gaps

What are some common problems caused by the use of technology in a service setting? (Choose every correct answer.) The technology is less efficient than a human. The technology does not perform adequately. Customers dislike replacing humans with machines. Customers do not understand how to use the technology.

The technology does not perform adequately. Customers dislike replacing humans with machines. Customers do not understand how to use the technology.

What problem might occur if a grocery store decides to install self-checkout devices? The technology will be more expensive in the long run than paying human employees The technology will lead to customers purchasing fewer items. The technology will be less accurate in counting money than human employees. The technology will be too challenging for some customers.

The technology will be too challenging for some customers.

Which of the following products or services is considered perishable in the sense that it cannot be stockpiled? A pair of shoes A box of candles A dental exam A package of gum

a dental exam

Ryanair advertised the lowest rates in Europe with fares of $12 between Paris and Munich. However, when Bill arrived at the airport, he had to pay $28 in taxes, $25 for one small carry-on bag, $6 for a non-alcoholic beverage, and $2.50 to use the restroom on the plane. Between Ryanair and the customer there is a ______ gap. delivery standards knowledge communication

communication

A restaurant is facing a problem in service delivery on a night when there are twice as many customers dining as usual. An integral part of recovery of the service dilemma is to provide both distributive and procedural _______________ in resolving the delays in getting all customers served.

fairness

When a hotel has a service delivery problem such as a broken air conditioning system on a very hot weekend, one critical element of service recovery is to ______. offer the customers who complain the most an equivalent number of nights free on a future stay ask each customer who complains what they feel would be equitable find a solution that seems fair to all customers offer the most frequent customers an equivalent number of nights free on a future stay

find a solution that seems fair to all customers

Which of the following are characteristics that make marketing services different from product marketing? (Choose every correct answer.) Intangibility Perishability Heterogeneity Profitability

heterogeneity, intangibility, perishability

Which of the following is most likely to lead to high levels of customer loyalty? Low prices Intangible compensation for service failures High levels of customer dissonance High customer satisfaction ratings

high customer satisfaction ratings

One difference between products and services is demonstrated by a hair salon, where the stylist delivers the service at the same time the customer receives it. This is called ______. perishability intangibility inseparability heterogeneity

inseparability

One of the basic ways in which services differ from products is that production and consumption are ______ from each other. Consequently, service providers often include options for the customer to become more involved in the production of the service, which usually results in greater customer satisfaction. infinite intangible perishable inseparable

inseparable

For the marketing manager to be able to deliver consistent quality service, it is imperative to set ______. high employee-to-customer ratios high prices to impart high quality measurable goals that are based on customer expectations general goals based on employee feedback

measurable goals based on customer expectations

Despite having to deal with difficult guests, the service provider can be motivated to provide "service with a smile" when the firm ______. provides frequent training programs for employees provides support and incentives to motivate quality service does not deal with unruly customers and removes them from the service list establishes a policy for the firm that the customer is NOT always right

provides support and incentives to motivate quality service

One of the most important factors for adequate service recovery is for the provider to ______. find a solution that costs the company the least amount of money possible allow the customer to solve the problem on his or her own guarantee that all problems will eventually be resolved in the order in which they occur respond to the customer and resolve the problem quickly

respond to the customer and resolve the problem quickly

Customer _______ refers to human or mechanical activities undertaken by firms to help satisfy their customers' needs and wants

service

Which of the following usually leads to the best outcome for a service failure? A third party finds a solution and imposes it on the company and customers. The company works with the customers to find a solution. Customers find their own solution. A company works to find its own solution.

the company works with the customers to find a solution

A customer with a complaint about the way in which a washing machine repair was made will become increasingly more annoyed with the service provider ______. the longer the service provider listens to his or her complaint the longer it takes to get an answer from the firm as the compensation becomes more tangible as the perceived fairness of the process increases

the longer it takes to get an answer from the firm

Which of the following is NOT a method to reduce delivery gaps? Provide support and incentives Threaten to terminate employees Use technology to minimize errors Empower employees

threaten to terminate employees

A business that experiences service delivery gaps can use which of the following methods to improve the quality of its service? (Choose every correct answer.) Ask each customer what level of service he or she expects when he or she enters the business Empower employees to work in the customer's best interest Implement self-service technologies Provide incentives and support for service providers

Empower employees to work in the customer's best interest Implement self-service technologies Provide incentives and support for service providers

Customer service is best represented by which of the following statements? Customer service ______. mandates that all customer needs must be met adds to marketing efforts by helping to meet the customers' needs and wants defines the task of marketing an intangible or primarily intangible item ensures that customers become lifelong customers

adds to marketing efforts by helping to meet customers' needs and wants

Jane has realized that she does not enjoy taking a taxi to work because there is substantial ______ in the delivery of the service depending on who is driving her cab that day. heterogeneity intangibility perishability price differential

heterogeneity

The primary reason there is greater heterogeneity in services than in products is because _____. human inputs generate differences of the increasing use of technology in delivering services cost inequities generate differences of unknown outcomes on the buyer's part

human inputs generate differences

How the marketing of services differs from the marketing of products

intangibility, perishability, inseparable, and heterogeneous

Poor service delivery can be converted into a positive interaction through service ______ an effort that resolves the problem fairly and shows the buyer that the firm is listening to the complaint. recognition repositioning repetition recovery

recovery

Lilly went to the Yummy Fork for lunch, and when her food arrived, it was not what she ordered. She later posted a negative comment about the Yummy Fork on a blog. Which one of the five service dimensions was used by Lilly to determine she did not like the service by the Yummy Fork? Assurance Tangibles Empathy Reliability

reliability