Chapter 11-16

50. (p.564) It is difficult to measure non-financial performance measures. Managers tend to make mistakes in this area by assuming: A. Leading and lagging variables do not influence time utility B. Qualitative metrics are more telling than quantitative metrics C. 100 percent customer satisfaction is the only important goal D. Statistical reliability and statistical validity are always important E. The improvement of non-financial measures leads to offensive marketing

100 percent customer satisfaction is the only important goal

38. (p. 458) A hotel that has 300 rooms charges a rate of $150 per night Monday through Thursday. During this period of peak demand, the hotel operates at 100 percent capacity. On weekends (Friday through Sunday), the hotel discounts half of its rooms at a rate of $100 per night while the remaining rooms are still priced at $150 per night. Calculate the hotel's yield for a Saturday night, if it fills 50 percent of the $150 rooms and sells all of the $100 rooms. A. 58 percent B. 63 percent C. 78 percent D. 93 percent E. 171 percent

58 percent

16. (p. 393-395) On the military base where Micah is stationed, there is a large, well-stocked garage where he can take his car to do necessary maintenance. The garage charges modest space and tool rental fees. Micah really enjoys tinkering with the engine, but he's not very knowledgeable. That's why he's glad that there is a trained mechanic on duty at the garage. The mechanic will answer Micah's questions and check his work to make sure that he has done nothing to damage his car's engine. Micah was especially proud of himself when he replaced his carburetor recently. Which of the following service delivery roles is Micah, the customer, performing? A. A customer mix manager and recruiter B. A competitor and productive resource C. A productive resource and contributor to quality and satisfaction D. A contributor to quality and satisfaction and competitor E. A recruiter and competitor

A contributor to quality and satisfaction and competitor

45. (p. 503-504) Service providers sometimes need to tell customers that services have been performed for them. To get credit for their actions, service providers need to reinforce their actions with appropriate communication about their accomplishment of the service. Which of the following services would need to educate its customers by telling them about the services provided in user friendly terms? A. Pet grooming B. A fluoride treatment given to a child C. A full-body massage D. Car insurance E. Gas station

A fluoride treatment given to a child

8. (p. 392-393) For which of the following services does successful service delivery depend on consumers having a moderate level of participation by providing information, effort or physical possessions? A. A weight-reduction program B. Airline travel C. Pest control D. A haircut E. Marriage counseling

A haircut

2. (p. 388) Provider gap 3 would be created when: A. A fast-food restaurant uses a frequency marketing program B. An advertisement that promises a full-body massage for $5 C. Employees refund customer's money if they complain about the service they received D. A patient receiving an x-ray neglects to tell the technician she was pregnant E. Any of the above occurred

A patient receiving an x-ray neglects to tell the technician she was pregnant

42. (p. 367) For which of the following service providers is an employee empowerment strategy most suited? A. A service provider that relies on mass production/consumption B. A service provider with a static business environment C. A service provider that builds long-term relationships with its customers D. A service provider that relies on routine, simple technology E. A service provider that specializes in transactional relationships

A service provider that builds long-term relationships with its customers

7. (p. 392-393) Bob and Tiffany have been busy this week seeing all kinds of service providers. In which of the following service situations would Bob and Tiffany have had the lowest level of participation? A. A visit to McDonald's for breakfast B. A session with their marriage counselor C. The hauling of a grand piano from their home in Nashville to their parents' home in Brentwood in a truck they rented for that purpose D. Tiffany's annual physical examination E. Bob's weekly visit with his personal trainer

A visit to McDonald's for breakfast

37. (p. 456-458) Convention hotels provide meeting rooms and banquet hotels to convention participants. Sometimes a specific convention may involve 2,000 members or only 75 members. To take care of both sizes of groups, convention hotels have movable walls that allow them to expand or contract a facility as needed by the group. By modifying its facility, the convention hotels are able to: A. Adjust capacity to match demand B. Create optimal supply C. Optimize its demand pattern D. Outsource its requirements E. Smooth peaks and valleys of demand

Adjust capacity to match demand

36. (p. 455) 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: A. Adjusting capacity to match demand B. Creating optimal supply C. Optimizing its demand pattern D. Outsourcing E. Smoothing peaks and valleys of demand

Adjusting capacity to match demand

14. (p. 546-548) Which of the following statements about service quality and market share is NOT true? A. When service is good, a company can charge more for its services than its competitors can and still maintain or even increase its market share B. The implementation of superior service yields higher-than-normal market share growth C. The relationship between service quality and market share is hard to discern because it happens over time D. Advertising that an organization offers service excellence without sufficient service quality to back it up will NOT increase market share E. Advertising that an organization offers service excellence without sufficient service quality to back it up will increase market share

Advertising that an organization offers service excellence without sufficient service quality to back it up will increase market share

3. (p. 543) To use the return on service quality (ROSQ) methodology for making decisions about service quality investments, a CEO must NOT assume: A. Quality is an investment B. Quality efforts are financially accountable C. It is possible to spend too much on quality D. Not all quality expenditures are equally valid E. All quality investments are a good investment

All quality investments are a good investment

30. (p. 525) In talking to a travel agent, T. J. Matthews learned that he could get a three-day/two night package near Disneyworld for his family of four or for the same amount of money, he could have a five-day/four-night stay at a hotel that was about fifty miles away from Disneyworld. Matthews decided the farther hotel was a much better value. Matthews defined value as: A. All that I get for all that I give B. Whatever I want in a service C. Low price D. Reliable service E. The quality I get for the price I pay

All that I get for all that I give

44. (p. 536) Price framing would be used when the customer defines value as: A. All that is received for all that is given B. Superior quality C. Quality for the price paid D. Everything wanted in a service E. Low price

All that is received for all that is given

27. (p. 398) Which of the following is an example of an SST? A. A haircut B. Mowing your own grass C. An x-ray D. A car repair E. An electronic hotel checkout

An electronic hotel checkout

41. (p. 368) Which of the following organizations is NOT suited for using employee empowerment strategies? A. An organization where the business strategy is one of mass marketing B. An organization in which managers and employees have high growth and social needs C. An organization that establishes long-term relationships with its customers D. An organization that uses non-routine technology to provide its services E. An organization that operates in an unpredictable environment

An organization where the business strategy is one of mass marketing

50. (p. 468-470) Waiting time feels longer when customers: A. Are relaxed while waiting B. Are reading or drinking a beverage while waiting C. Are alone while waiting D. Know how long they will have to wait E. Understand why they are waiting

Are alone while waiting

31. (p. 489) The four strategies of tangibilization are: A. Documentation, visualization, verification and illustration B. Illustration, verification, documentation and intimation C. Association, physical representation, documentation and visualization D. Association, internalization, testimonials and imitation E. Intimation, allusion, association and documentation

Association, physical representation, documentation and visualization

20. (p. 355) The _____ dimension of service quality is highly dependent on employees' ability to communicate their credibility and to inspire trust and confidence. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

Assurance

18. (p. 446) When a service firm's resources are fully employed, but not overused; and customers are receiving quality service in a timely manner, the firm is operating _____ capacity. A. Above maximum B. At maximum C. Above optimum D. At optimum E. Below optimum

At optimum

32. (p. 559-561) The _____ is a set of measures that gives top managers a fast, but comprehensive view of the business. It complements financial measures with operational measures of customer satisfaction, internal processes and the organization's innovation and improvement activities. A. Lifetime value of a customer B. Multi-measure quality indicator C. Balanced performance scorecard D. FOCI satisfaction ratio E. Benchmark of augmented success

Balanced performance scorecard

37. (p. 364-365) A service firm in a particular industry or in a particular location can use which of the following human resource strategies to attract the best people? A. Become a preferred employer B. Providing needed outsourcing C. Using benchmarking D. Limiting the number of service encounters E. Designing efficient servicescapes

Become a preferred employer

22. (p. 355-356) The frontline service employees are referred to as: A. Gatekeepers B. Control centers C. Boundary spanners D. Service encounter experts E. External service providers

Boundary spanners

23. (p. 355-356) Which of the following hotel employees is NOT a boundary spanner? A. Chef B. Front desk clerk C. Housekeeping employee D. Concierge E. Room service operator

Chef

34. (p. 364) All of the following are service inclination skills EXCEPT: A. Clerical speed and accuracy B. Social sensitivity C. Helpfulness D. Courtesy E. Thoughtfulness

Clerical speed and accuracy

28. (p. 451) The busiest time for tax preparers is the week prior to April 15th. 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? A. Differentiate on price B. Modify timing and location of service delivery C. Vary the service offering D. Stretch capacity E. Communicate with customers

Communicate with customers

41. (p. 408) The process of managing multiple customer segments is called _____ management. A. Relationship B. Compatibility C. Demand mix D. Position E. Targeted

Compatibility

33. (p. 363-364) During Chemical Bank's annual "Stellar Teller" contest, tellers match their skills in the areas of money counting, knowledge of bank policy and ability to make customers feel like royalty. To assess money counting skills, tellers are required to sort a mishmash of ones, fives, 10s and 20s by denomination, arrange the bills so that they all face the same way, then tally the cash on an adding machine and put it back into a deposit bag. Time and accuracy count. A bank teller's money-counting skills are a service: A. Competency B. Competitiveness C. Inclination D. Responsibility E. Accountability

Competency

16. (p. 521-522) _____-based pricing is used when there are a small number of large service providers. A. Demand B. Profit C. Competition D. Supply E. Cost

Competition

18. (p. 521) _____-based occurs when services are standardized across providers. A. Demand B. Profit C. Competition D. Supply E. Cost

Competition

19. (p. 521) Pizza Hut, Uncle Sam's, Domino's and Papa John's all deliver pizza in Cartersville, Georgia, a town of about 30,000. As a result, one would expect all of the pizza delivery services to use _____-based pricing. A. Standardized B. Simultaneous C. Competition D. Supply E. Cost

Competition

17. (p. 394-395) Amber and Joyce are both new mothers who are concerned about child-proofing their homes to keep their toddlers safe. Amber went on the Internet and found a Web site that told her exactly what she should do to make her house 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. Which of the service delivery roles did Amber perform? A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

Competitor

18. (p. 394-395) Lois Kay is an experienced baker. She has decided to bake and decorate her daughter's wedding cake instead of ordering one at the bakery. What service delivery role is Kay performing? A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

Competitor

20. (p. 394-397) Instead of having a hair stylist color her hair, Chandris prefers to dye her own hair. Which of the following roles is Chandris performing? A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

Competitor

33. (p. 559) All of the following are measurement areas contained in a balanced performance scorecard EXCEPT: A. Competitor measures B. Customer perceptual measures C. Financial measures D. Innovation and learning E. Operational measures

Competitor measures

19. (p. 394-395) Customers are viewed as _____ when they produce a service for themselves. A. Customer mix managers B. Competitors C. Productive resources D. Contributors to quality and satisfaction E. Recruiters

Competitors

50. (p. 536) 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: A. Synchro-pricing B. Two-part pricing C. Mixed bundling D. Contribution margin pricing E. Contingency pricing

Contingency pricing

46. (p. 535) The price for an all-day trip to the Alpine Spa is $175 and includes an hour-long massage, a facial, a manicure and pedicure and a hair styling and make-up application. Any of these services can be purchased individually for the total cost of almost $300. What kind of pricing strategy is Alpine Spa using? A. Synchro-pricing B. Complementary pricing C. Mixed bundling D. Contribution margin pricing E. Contingency pricing

Contribution margin pricing

12. (p. 393-394) 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: A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

Contributor to quality and satisfaction

13. (p. 393-394) After Japonica and DeShawn returned home from a vacation in California, Japonica noticed that her new luggage had a five-inch tear in it. Rather than assume 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. Japonica and DeShawn were pleased with the repair when the suitcase was shipped home about a month later. In this scenario, Japonica and DeShawn played the role of: A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

Contributor to quality and satisfaction

14. (p. 393-394) A consumer who complains that the stain was not removed from her suit jacket is performing which of the following service delivery roles? A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

Contributor to quality and satisfaction

15. (p. 393-394) Customers who enjoy participating in the service delivery process are performing which of the following service delivery roles? A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

Contributor to quality and satisfaction

8. (p. 517) After moving to Orlando, Florida, Kaori opened both a savings and a checking account at Barnett Bank. Although Barnett had a higher minimum balance requirement for free checking than the other two banks she considered, Kaori chose Barnett because it was located closer to her home than the other banks. Kaori would rather expend other costs than _____ costs. A. Convenience B. Monetary C. Psychological D. Time E. Search

Convenience

32. (p. 497-499) The reason Kente chose to stay at a particular a chain of bed & breakfast inns was because its website promises free breakfast ay any inn that did not offer a wake-up service. Yet when Kente 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 seven when she checked in. 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 Kente swore never to stay at the inns again. The chain of inns needs to: A. Underpromise and overdeliver more services B. Coordinate its external communications C. Create more functional internal marketing channels D. Use more centralization of service definition E. Use transformational advertising

Coordinate its external communications

12. (p. 519-520) To calculate what it charges a client, a detective agency charges $200 a day direct costs plus an additional $50 per day to pay for office expenses, licenses and other fixed costs and fifteen percent of full costs for the profit margin. What type of pricing strategy is being used by the detective agency? A. Contingency B. Cost-based C. Perceived value D. Fee for service E. Going-rate

Cost-based

11. (p. 519) The basic formula for _____ is Price = Direct costs + Overhead + Profit margin. A. Contribution margin B. Return on investment C. Cost-based pricing D. ABC costing E. Net profit

Cost-based pricing

13. (p. 520) In _____ pricing, a service firm determines price by calculating component costs of the service and adding a mark-up. A. Contingency B. Fee for service C. Perceived value D. Cost-plus E. Going-rate

Cost-plus

38. (p. 502) Cable TV companies that offer subscribers different programming packages are: A. Managing service promises B. Creating tiered-value service offerings C. Communicating with customers D. Managing horizontal communications E. Exceeding customer expectations

Creating tiered-value service offerings

39. (p. 502) Internet service providers that offer subscribers their choice of hook-up speed and type of spam blockers are: A. Managing service promises B. Creating tiered-value service offerings C. Communicating with customers D. Managing horizontal communications E. Exceeding customer expectations

Creating tiered-value service offerings

44. (p. 559) Guests who stay at a Walt Disney resort hotels are asked to complete a comment card when they checkout. In one section of the comment card, guests are asked if they would recommend the hotel they stayed at to a friend and if they would return to the same hotel. These two behavioral intention questions are focusing on the _____ perspective of its balanced performance scorecard. A. Competitive B. Customer C. Financial D. Innovation and learning E. Operational

Customer

13. (p. 546-548) Which of the following is NOT likely to occur when a company uses an offensive marketing effect? A. Higher market share B. Increased price premium C. Customer churn D. Customer acquisition E. Improved word-of-mouth communication

Customer churn

16. (p. 548) The owner of Fiori Flower and Gift Shop has noticed a gradual decline in its number of customers over the last three years. The owner suspects that it is experiencing _____ due to the recent opening of a Kroger supermarket in the community. A. Customer churn B. Customer empowerment C. An ethical dilemma D. Customer autonomizing E. Customerization

Customer churn

19. (p. 548-552) The increased profits a service firm realizes from customer retention result from all of the following EXCEPT: A. Lower costs B. Increased volume of purchases C. The ability to charge a price premium D. Customer churn E. Increased word-of-mouth communication

Customer churn

20. (p. 548) Which of the following has the strongest effect on a service provider's profits? A. Market share B. Unit costs C. Location D. Employee salaries E. Customer defection

Customer defection

30. (p. 556) _____ is the total of the discounted lifetime value summed over all the firm's customers. A. The customer equilibrium B. Customer equity C. Customer empowerment D. Fiscal value E. Service blueprint value

Customer equity

31. (p. 556) The customer equity model illustrates how: A. Customer equity is influenced by value equity, brand equity and relationship equity B. Interactive marketing, external marketing and internal marketing are interrelated C. To identify unexpected service encounters D. Customer equity leads to more efficient defensive marketing E. Organizations can more effectively monitor customer churn

Customer equity is influenced by value equity, brand equity and relationship equity

24. (p. 553-554) Which of the following statements about customer perceptions of service and consumer purchase intentions are true? A. There is no relationship between customer perceptions of service and any consumer intentions B. While there is no relationship between customer perceptions of service and purchase intentions, there is a strong relationship between perceptions of superior service and increased word-of-mouth communications C. Researchers suspect there is a strong relationship between a customer perception of service and his or her intent to buy D. Customer perceptions of service affect consumer intentions in several positive ways-including the purchase intention E. Customer experiences-not perceptions-affect consumer behavioral intentions

Customer perceptions of service affect consumer intentions in several positive ways-including the purchase intention

45. (p. 560) The comment card that is often found on the tables at a Wendy's fast-food restaurant asks about the customer's perceptions of the quality of the food, its cleanliness and the friendliness of the employees. These questions are focusing on _____ in Wendy's balanced performance scorecard. A. Competitive measures B. Customer perceptual measures C. Financial measures D. Innovation and learning E. Operational measures

Customer perceptual measures

29. (p. 399) Ravela does not want to use the self-checkout lane at the supermarket because it "just seems too complicated". What factor primarily has determined her reluctance to try the new self-service technology? A. Customer readiness B. Capability management C. Emotional resources D. The empowerment of technology E. Personal autonomy

Customer readiness

34. (p. 558) Which of the following is an example of a soft measure of a company's success? A. Return on investment B. Customer satisfaction C. Sales volume D. Gross margin E. Inventory turnover

Customer satisfaction

42. (p. 559) All of the following are financial measures used in the balanced performance scorecard EXCEPT: A. Value of price premiums B. Customer satisfaction C. Volume increases D. Long-term value of customers E. Cross sales

Customer satisfaction

38. (p. 561) The operational measures used within the balanced performance scorecard should be: A. Customer-defined B. Cost-driven C. Competitively sensitive D. Front-line employee defined E. Environmentally derived

Customer-defined

15. (p. 548) _____ marketing is used by companies to prevent customer defection. A. Vertical integration B. Guerilla C. Defensive D. Flank-movement E. Offensive

Defensive

17. (p. 548) The owner of Fiori Flower and Gift Shop has noticed a gradual decline in its number of customers over the last three years. The owner suspects that many of its regular customers are now buying flowers at the newly opened Kroger supermarket. It would be appropriate for the owner to institute _____ marketing. A. Guerrilla B. Flanking-movement C. Vertical integration D. Defensive E. Offensive

Defensive

22. (p. 549) A Marriott hotel is able to charge four times as much as an Econo-Lodge for a room because of the amenities the Marriott offers. These amenities include a swimming pool, room service, exercise equipment, in-room iron, hair dryer and coffee maker and more. The Econo-Lodge provides guests with a clean room to sleep in and little else. Marriott's ability to charge a premium price is the result of its _____ strategy. A. Defensive B. Price skimming C. Neutral D. Guerrilla E. Flanking

Defensive

47. (p. 370) The first step in conducting an internal customer service audit is to: A. Define customers B. Engage in brainstorming and other forms of idea generation C. Create a new servicescape D. Define employee quality E. Eliminate all conflict

Define customers

32. (p. 401) 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. By increasing customer participation in the service process with its automated inquiry system, Discover Card is: A. Recruiting customers B. Positioning customers C. Managing the customer mix D. Defining customers' jobs E. Educating customers

Defining customers' jobs

11. (p. 444) A service firm is underutilizing its labor, equipment and facilities when: A. Demand exceeds maximum capacity B. Demand exceeds optimum capacity C. Supply and demand are balanced at the level of optimum capacity D. Demand is below optimum capacity E. Demand is below minimum capacity

Demand is below optimum capacity

7. (p. 443) At any given time, the lack of inventory capability in service firms can result in all of the following scenarios EXCEPT: A. Demand that exceeds maximum capacity B. Demand that exceeds optimum capacity C. Supply and demand balanced at the level of optimum capacity D. Demand that is below optimum E. Demand that is below minimum capacity

Demand that is below minimum capacity

24. (p. 524) Which of the following approaches to pricing considers that customers may judge quality on the basis of pace? A. Demand-based pricing B. Profit-based pricing C. Competition based pricing D. Supply-based pricing E. Cost-based pricing

Demand-based pricing

12. (p. 546) PIMS (profit impact of marketing strategy) research: A. Is used for determining the short-term effect of service quality on company profits B. Shows that companies offering superior service achieve the same market share growth as those who offer average service C. Demonstrates the advantages of offensive marketing D. Relies on executives' opinions to predict how services will affect profit E. Is accurately described by all of the above

Demonstrates the advantages of offensive marketing

36. (p. 363-364) Service firms use work simulation exercises to: A. Make their job offers more attractive to prospective employees B. Empower their employees C. Compete proactively for the best people D. Determine potential employees' service competencies and service inclinations E. Promote teamwork

Determine potential employees' service competencies and service inclinations

38. (p. 366) During two-day orientation and extensive on-the-job training, each Ritz-Carlton Hotel employee learns the Ritz-Carlton Gold Standards, which contain a credo, 20 basics of service, knowledge of one's work area, answering the telephone with a smile, wearing immaculate uniforms and the three steps of service. The three steps of service are comprised of a warm and sincere greeting, anticipation and compliance with guests' needs and a fond farewell using the guest's name, if possible. The Ritz-Carlton Hotel is using which of the following human resource strategies? A. Hiring the right people B. Providing needed support systems C. Eliminating employee churn D. Developing people to deliver service quality E. Creating supportive servicescapes

Developing people to deliver service quality

16. (p. 486) Vernon has a used Nordic Track he wants to sell. He has been told to take it to Play It Again Sports. The retail outlet buys used athletic equipment and resells it. Vernon took his Nordic Track to a store near his house and was given $60 for the machine. Later he learned that other Play It Again Sports stores would have paid him at least $100 for the exercise machine and as much as $120. Vernon's dissatisfaction with Play It Again Sports is the result of: A. Inadequate management of service promises B. Over-promising in advertising and personal selling C. Inadequate customer education D. Inadequate management of customer perceptions E. Differences in policies and procedures across distribution outlets

Differences in policies and procedures across distribution outlets

30. (p. 451, 453) Peak demand for rooms at the Ritz-Carlton Hotel, an upscale hotel in Phoenix, Arizona, occurs during the tourist season from November through mid-April. During the summer slow season when demand for rooms drops considerably, the Ritz-Carlton encourages local Phoenix and Tucson residents to experience the beauty of the hotel on weekends by offering attractively priced weekend packages. The Ritz-Carlton uses which of the following strategies for shifting demand to match capacity? A. Differentiate on price B. Modify timing and location of service delivery C. Vary the service offering D. Stretch capacity E. Communicate with customers

Differentiate on price

31. (p. 451, 453) 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? A. Differentiate on price B. Modify timing and location of service delivery C. Vary the service offering D. Stretch capacity E. Communicate with customers

Differentiate on price

44. (p. 467-468) Supermarkets with express checkout lanes for customers purchasing 10 items or less are using which of the following waiting line strategies? A. Establishing a reservation process B. Making waiting fun or at least tolerable C. Expanding waiting room capacity D. Differentiating waiting customers E. Employing operational logic

Differentiating waiting customers

22. (p. 484) Which of the following is NOT one of the properties of intangibility that has been identified by the research of Banwari Mittal? A. Nonsearchability B. Abstractness C. Incorporeal existence D. Dynamic vs. static E. Mental impalpability

Dynamic vs. static

30. (p. 399-400) Which of the following companies has had the greatest success with SSTs? A. Old Navy stores B. Domino's pizza C. Ford Motor Company D. EBay.com E. A landscaping company

EBay.com

49. (p. 410) Each year representatives of college activities boards throughout the U.S. gather at regional National Association of College Activities (NACA) conventions to listen, talk to and hire acts for the upcoming school year. Auburn Moon from Philadelphia is one of the agencies that attends the NACA conventions. The owner of this agency prepares a CD that contains two or three songs by each of the acts she represents and gives them out to students at the conventions. Students can listen to the CDs at their leisure and share the music with other decision makers on campus. With the CDs, Auburn Moon is _____ about its entertainers and their abilities. A. Motivating its customers B. Positioning its customers C. Managing the customer mix D. Defining its customers' jobs E. Educating its customers

Educating its customers

24. (p. 356) _____ labor entails delivering smiles, making eye contact, showing sincere interest and engaging in friendly conversations with customers who are essentially strangers and who may not ever be seen again. A. Physical B. Mental C. Personal D. Accountable E. Emotional

Emotional

25. (p. 356) While being trained at Disney University in Orlando, Florida, Disneyworld employees are told they are not just employees but pivotal "cast members" in a "show". From street sweepers to monorail pilots, each cast member must go out of his or her way to make the resort seem unreal. No matter how tired employees are or how deeply guests may try their patience, employees must never lose composure. _____ labor is required from Disneyworld employees to always maintain composure. A. Physical B. Mental C. Personal D. Accountable E. Emotional

Emotional

21. (p. 355) Sales associates at Nordstrom are given a "personal" book to keep track of customers' names, telephone numbers, height and weight, likes and dislikes (e.g., color, style and texture preferences) and charge account numbers to help them become a personal shopper for the customer. In addition, sales associates have an open account to send thank-you notes or flowers to customers. By having a personal book and sending thank-you notes or flowers to customers, Nordstrom's sales associates are showing they care by emphasizing the _____ dimension to influence customer perceptions of Nordstrom's service quality. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

Empathy

21. (p. 394-395, 397) 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: A. Psychic rewards B. Trust C. Empathy D. Resource capacity E. Control

Empathy

40. (p. 462-463) Which of the following is a risk associated with the use of yield management? A. Excessive customer loyalty B. Too much focus on competition C. Employee morale problems D. Misuse of company-driven service blueprints E. Overreliance on salaries

Employee morale problems

41. (p. 463-470) 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? A. Establishing a reservation process B. Making waiting fun or at least tolerable C. Expanding waiting room capacity D. Differentiating waiting customers E. Employing operational logic to reduce wait

Employing operational logic to reduce wait

39. (p. 367) AT&T Universal Card Services (USC) gives its employees the right to grant credit lines to customers and adjust customers' bills without management approval. By giving its employees the authority to make decisions that will benefit its customers, USC is: A. Including employees in the company's vision B. Empowering employees C. Measuring and rewarding strong service performers D. Promoting teamwork E. Enveloping service-oriented internal processes

Empowering employees

40. (p. 367) At Target, a discount store chain, if the shelf price is not on an item, checkout clerks can take the customer's word for prices up to $20. The customer does not have to wait for the clerk to check the price with someone on the floor. By giving its employees the authority to make decisions on the customer's behalf, Target is: A. Including employees in the company vision B. Empowering employees C. Measuring and rewarding strong service performers D. Promoting teamwork E. Developing service-oriented internal processes

Empowering employees

48. (p. 408-409) 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: A. Enhance customer compatibility B. Decrease customer participation C. Turn the customers of the pub into productive resources D. Allow the customer to co-create the service E. Maintain the drama metaphor

Enhance customer compatibility

35. (p. 558) The development of _____ allows service companies to create, automate and integrate measurements in all parts of the company in a balanced performance scorecard. A. Relationship marketing B. Search engines C. Data mining D. Integrative marketing E. Enterprise software

Enterprise software

15. (p. 445) The primary constraint on service production for an air freight delivery service is: A. Equipment B. Labor C. Money D. Facilities E. Time

Equipment

43. (p. 467) The appliance store told the home owner that it would deliver her new stove on Monday between 4 p.m. and 5 p.m. Obviously, the store is uses which of the following waiting line strategies? A. Establishing a reservation process B. Making waiting fun or at least tolerable C. Expanding waiting room capacity D. Differentiating waiting customers E. Employing operational logic

Establishing a reservation process

39. (p. 532-533) A prestige pricing strategy is appropriate when customers define value as: A. All that I get for all that I give B. Everything I want in a service C. Low price D. Reliable service E. The quality I get for the price I pay

Everything I want in a service

23. (p. 395, 397) Lois Kay is an experienced baker. She has decided to bake and decorate her daughter's wedding cake instead of ordering one at the bakery. Her decision to bake her daughter's cake herself was based on this knowledge and the joy of seeing her daughter's face as she first looks at the wedding cake made by her mother. Kay's decision to produce the service herself was primarily guided by: A. Expertise capacity and psychic rewards B. Economic rewards and trust C. Control and empathy D. Resource capacity and economic rewards E. Economic rewards and psychic rewards

Expertise capacity and psychic rewards

10. (p. 353) _____ customers are those individuals and businesses who buy goods and services from an organization. A. Internal B. External C. Critical D. Functional E. Interactive

External

11. (p. 353) There is a sign next to the door that you can see as you leave Mildred's Restaurant. It reads, "If you enjoyed your meal, please tell a friend". In terms of the services marketing triangle, this sign is a part of Mildred's _____ marketing. A. Internal B. Interactive C. Integrated D. External E. Transactional

External

6. (p. 353) In the services marketing triangle, _____ marketing refers to communications a firm uses to make promises to customers regarding service delivery. A. Internal B. Interactive C. Relationship D. External E. Integrated

External

7. (p. 353) According to the services marketing triangle, an advertisement for Randonner Tours that describes the agency's customized bicycle tours through Europe is a form of _____ marketing. A. Internal B. Interactive C. Integrated D. External E. Relational

External

9. (p. 353) Flying across the Pacific Ocean is an eight-hour trip that could be dreadful if you did not fly Singapore Airlines. An ad that featured a customer saying, "The cabin crew makes flying with Singapore Airlines a pleasure" and announcing Singapore had won top honors for international travel in Business Traveler's magazine annual contest would be an example of _____ marketing. A. Internal B. Interactive C. Integrated D. External E. Relationship

External

3. (p. 480) Which of the following statements about communications and the services marketing triangle is true? A. External marketing communications include advertising, public relations, personal selling and sales promotions B. The apexes of the services marketing triangle are customers, employees and the company C. Interactive marketing communications are exemplified by vertical and horizontal communications D. All communications methods that relate to the services marketing triangle are either verbal or print E. Service encounters are an example of internal marketing

External marketing communications include advertising, public relations, personal selling and sales promotions

5. (p. 353) According to the services marketing triangle, which of the following lists the types of marketing that must be successfully carried out in order for a service organization to succeed? A. External, internal and interactive marketing B. Strategic, tactical and operational marketing C. Lower-level, middle-level and top-level marketing D. Functional, hierarchical and, relationship marketing E. Relationship, interactive and transactional marketing

External, internal and interactive marketing

51. Rewarding customers has no effect on their likelihood of performing their roles effectively. TRUE OR FALSE

FALSE

52. Firms can train employees to develop technical skills by teaching them to engage in pleasant conversation, ask questions or use humor as they interact with customers. TRUE OR FALSE

FALSE

52. In order to increase efficiency, business-to-business service providers have eliminated customer participation in service delivery. TRUE OR FALSE

FALSE

53. The first step in enhancing customer participation in service delivery is to manage the customer mix, beginning with an assessment of the compatibility of segments. TRUE OR FALSE

FALSE

54. Customers do not contribute to quality service delivery when they ask questions. TRUE OR FALSE

FALSE

17. (p. 442) The primary constraint on service production for a popular, well-established theater company that annually presents a series of musical comedies is: A. Equipment B. Labor C. Money D. Facilities E. Time

Facilities

34. (p. 454) The Baltimore Orioles, a professional baseball team, offer standing room only seats to fans when a home game at The Ballpark at Camden Yards is sold out. The Baltimore Orioles are stretching _____ to flex the capacity of The Ballpark at Camden Yards to meet fan demand. A. Time B. Labor C. Facilities D. Equipment E. Customers

Facilities

15. (p. 520-521) Accountants, architects, interior decorators, marriage counselors and lawyers typically use a _____ pricing strategy. A. Going-rate B. Perceived value C. Fee for service D. Price signaling E. Cost-plus

Fee for service

22. (p. 394-395, 397) A consumer's decision to produce a service for himself or herself or contract externally for the service depends on a variety of factors. Which of the following is an example of a psychic reward a homeowner might receive if he decides to landscape his own yard instead of hiring a landscape design expert? A. Control over the landscaping process and the final results B. Feelings of pride and pleasure as he looks at the final results C. A high degree of confidence and trust in his own ability to landscape D. The skills and knowledge of a landscape artist E. Less expensive process than a professional landscaper would offer

Feelings of pride and pleasure as he looks at the final results

43. (p. 559) A service firm that calculates the long-term value of a customer is looking at the _____ in its balanced performance scorecard. A. Competitor perspective B. Customer perspective C. Financial measures D. Innovation and learning perspective E. Operational measures

Financial measures

39. (p. 407) 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. A. Place B. Cultural C. Promotable D. Physical evidence E. Function

Function

37. (p. 407) On site, customers require two kinds of orientation. They are place orientation and: A. Time orientation B. Function orientation C. Social orientation D. Cultural orientation E. Promotable orientation

Function orientation

1. (p. 348) A service provider that has an inappropriate employee evaluation and compensation system will experience provider: A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4

Gap 3

2. (p. 442) In order to increase usage of the family-oriented ski resort, its owner sent letters to several college fraternities inviting them to spend their winter vacation at the resort. By inviting college students, the resort more than likely widened provider: A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4 E. Gap 5

Gap 3

3. (p. 388) When a customer does not understand his or her role in the service delivery process, he or she is contributing to provider: A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4

Gap 3

4. (p. 388) 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 descendents 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. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4 E. Gap 5

Gap 3

20. (p. 523) Which of the following is an example of competition-based pricing strategy? A. Cost-plus pricing B. Going-rate pricing C. Fee for service D. Synchronized pricing E. Simultaneous pricing

Going-rate pricing

23. (p. 523) _____ is a form of competition-based pricing that involves charging the most prevalent price on the market for a service. A. Value pricing B. Price signaling C. Fee for service pricing D. Going-rate pricing E. Price trimming

Going-rate pricing

6. (p. 542) Executives most frequent questions about how to improve service quality are concerned with: A. Cost reduction and environmental impact B. Good investment and high return C. Following federal regulations and employee satisfaction D. Operating in the most economic environments and maintaining a satisfactory level of customer retention E. Cost reduction and downsizing

Good investment and high return

2. (p. 348-349) Flying across the Pacific Ocean is an eight-hour trip that could be dreadful if you did not fly Singapore Airlines. One frequent flyer between the U.S. and Japan noted the Singapore cabin crew does not give the usual impression of doing passengers a favor by taking care of them. Free champagne and beer service is available to all classes. Seating has been designed to provide comfort in the airline's wide body planes. In first class, the seats are referred to as sky suites because they are so roomy. Every meal is carefully planned and served. The commitment to making the long flight as pleasant as possible indicates Singapore Airlines: A. Does not rely on physical evidence B. Considers reliability more important than empathy C. Has a service culture D. Does not use internal marketing E. Wants to increase the number of service encounters it has with a customer

Has a service culture

29. (p. 558) Traditional measures of company performance: A. Have relied on financial indicators such as profit, sales and return on investment B. Predict the future performance of companies as well as the results of yesterday's decisions C. Measure operational process and customer satisfaction as well as other quantitative factors D. Are useful in measuring the effect of a short-term increase of service quality on a company's bottom line E. Have used the soft measures primarily

Have relied on financial indicators such as profit, sales and return on investment

34. (p. 403-404) Private schools that have mentoring programs for new minority students are encouraging experienced students to perform which of the following customer jobs? A. Helping himself or herself B. Positioning the company C. Promoting the company D. Recruiting customers E. Helping others

Helping others

43. (p. 368) One of the potential costs in employee empowerment is: A. Higher labor costs B. Slower online responses to dissatisfied customers during service recovery C. Slower online responses to customers during service delivery D. Increased employee dissatisfaction E. Increased customer dissatisfaction

Higher labor costs

12. (p. 445) Which of the following organizations is more likely to experience wide fluctuations in demand? A. Dentist B. Hospital C. Carwash D. Stockbroker E. Interior decorator

Hospital

43. (p. 503-504) Preparing customers for the service process is a strategy for: A. Managing service promises B. Resetting customer expectations C. Improving customer education D. Managing horizontal communications E. Exceeding customer expectations

Improving customer education

47. (p. 504) Clarifying expectations after the sale is a strategy for: A. Managing service promises B. Resetting customer expectations C. Improving customer education D. Managing horizontal communications E. Exceeding customer expectations

Improving customer education

44. (p. 499-504) Emory Vision Center has a packet of information that it sends to people who are interested in LASIK surgery as well as a doctor who will come speak to your organization 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 integrated communications with potential patients and patients, Emory Vision Center is: A. Managing service promises and managing internal marketing communications B. Resetting customer expectations and educating customers C. Improving customer education and managing service promises D. Managing both vertical and horizontal marketing communications E. Exceeding customer expectations and educating customers

Improving customer education and managing service promises

15. (p. 486) ______ 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. A. Inadequate management of service promises B. Over-promising in advertising and personal selling C. Inadequate customer communication D. Inadequate horizontal communication E. Differences in policies and procedures across distribution units

Inadequate horizontal communication

17. (p. 486) Last summer, Kenta and Sawako spent part of their vacation in St. Louis and Boston, staying at the St. Louis Hilton and the Boston Hilton. When they checked in at the St. Louis Hilton the front desk clerk was very friendly and helpful. However, when they checked in at the Boston Hilton, the front desk clerk was cold and indifferent. The inconsistent front desk clerk behaviors experienced by Kenta and Sawako resulted from: A. Inadequate management of service promises B. Over-promising in advertising and personal selling C. Inadequate external marketing communication D. Inadequate interactive marketing communications E. Inadequate internal marketing communications

Inadequate internal marketing communications

18. (p. 486) 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: A. Inadequate management of service promises B. Over-promising in advertising and personal selling C. Inadequate external marketing communication D. Inadequate interactive marketing communications E. Inadequate internal marketing communications

Inadequate internal marketing communications

10. (p. 484-485) 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: A. Inadequate management of customer expectations B. Under-promising and over-delivering C. Improper vertical communication D. Differences in policies and procedures in internal marketing E. Inadequate customer empowerment

Inadequate management of customer expectations

9. (p. 484-485) The ad guaranteed that you would be skydiving after only a couple of hours of lessons. Megan was excited at the prospect. After enrolling in the class, she learned that rather than skydiving by herself, which is what the ad implied, she would be skydiving in tandem (belted to another experienced sky diver) due to safety requirements. Megan's disappointment was the result of: A. Inadequate management of customer expectations B. Under-promising and overdelivering C. Improper vertical communication D. Differences in policies and procedures across departments E. Inadequate customer empowerment

Inadequate management of customer expectations

7. (p. 484-485) Variations in the supply and demand of services result in: A. Inadequate management of service promises B. Over-promising in advertising and personal selling C. Insufficient word-of-mouth communication D. Inadequate horizontal communication E. Differences in policies and procedures across distribution units

Inadequate management of service promises

8. (p. 484-485) When Santina purchased a new refrigerator from Sears, she was told by the salesperson that the refrigerator would be delivered to her apartment 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 Santina to be dissatisfied with Sears's delivery service. Santina's dissatisfaction with Sears' delivery service resulted from: A. Inadequate management of service promises B. Over-promising and over-delivering C. Inadequate customer education D. Excessive horizontal communication E. Differences in policies and procedures across distribution units

Inadequate management of service promises

35. (p. 363-364) A regional chain of travel agencies uses role-playing to determine how courteously and efficiently a potential employee will handle difficult customers who keep changing their minds. The travel agency is assessing service: A. Competency B. Empathy C. Assurance D. Inclination E. Accountability

Inclination

31. (p. 400-401) The overall goal of a customer participation strategy is to: A. Determine optimal production levels B. Increase customer satisfaction and productivity C. Eliminate uncertainty due to customer actions D. Maximize word-of-mouth advertising E. Act socially responsible

Increase customer satisfaction and productivity

19. (p. 447) Keith-McCoy is a government auditing firm that specializes in auditing public transportation systems. The firm was operating at maximum capacity when it was asked to submit a bid on a very lucrative account in Chicago. If the firm were to win this account and keep all of its current accounts, it will more than likely: A. Decrease employee turnover potential B. Increase customer satisfaction through a work focus C. Increase employee burnout D. Increase service quality E. Create a narrower window of opportunity for meeting deadlines

Increase employee burnout

7. (p. 545) In 1991 when the US. General Accounting Office (GAO) studied the financial effect of service quality on companies that had won the Malcolm Baldrige National Quality Award, it determined improved service did NOT: A. Increased the market share of these firms B. Improved the return on sales for these firms C. Improved the sales per employees for these firms D. Increased these firms' returns on assets E. Increased advertising

Increased advertising

32. (p. 453) Which of the following is NOT a risk associated with the use of price differentiation to smooth demand? A. Increased price competition B. Attracting undesired market segments C. Increased capacity utilization D. Customers becoming accustomed to low price E. Whole industry suffers from price wars

Increased capacity utilization

18. (p. 548) Which of the following is NOT likely to be a source of money when a company uses a defensive marketing effect? A. Increased market share B. Customer retention C. Lower costs D. Increased word-of-mouth communication E. Increased price premium

Increased market share

40. (p. 561) Which of the measurement areas in the balanced performance scorecard is the most difficult to capture quantitatively? A. Operations measures B. Financial measures C. Customer measures D. Sales measures E. Innovation and learning measures

Innovation and learning measures

20. (p. 490) Which of the following is NOT a category of strategy that service providers can use to match service promises with service delivery? A. Integrate the service dimensions B. Improve customer education C. Manage service promises D. Manage customer expectations E. Manage internal marketing communications

Integrate the service dimensions

29. (p. 357-360) At the restaurant last night, the restaurant owner asked the server to turn the television on the Braves game and to turn up the sound so he could hear it. A group at a nearby table asked the server to turn down the sound so they could hold a conversation. Yet another group of patrons asked that the television be turned to another channel that was showing a Clint Eastwood movie. The server had to deal with both _____ conflicts. A. Person/role and Inter client B. Heterogeneous and person/role C. Organization/client and person/role D. Inter-client and organization/client E. Escalating and organization/client

Inter-client and organization/client

12. (p. 353) In the services marketing triangle, _____ marketing refers to the service promise being delivered. A. Internal B. Interactive C. Strategic D. External E. Integrated

Interactive

13. (p. 353) When Abu went to open a bank account at First National Bank, he was greeted by a friendly account representative who explained the different types of savings and checking accounts, as well as other banking services (e.g., ATM, direct deposit, credit cards and consumer loans) that were available. According to the services marketing triangle, the actions by the account representative are a form of _____ marketing. A. Internal B. Interactive C. Integrated D. Strategic E. External

Interactive

8. (p. 353) Flying across the Pacific Ocean is an eight-hour trip that could be dreadful if you did not fly Singapore Airlines. One frequent flyer between the U.S. and Japan noted its "cabin crew do not give the usual impression of doing passengers a favor by taking care of them. In short, they make flying with Singapore Airlines a pleasure". In terms of the services marketing triangle, the cabin crew engages in _____ marketing. A. Internal B. Interactive C. Integrated D. External E. Transactional

Interactive

30. (p. 359-360) On a recent concert tour, Aerosmith sang a number of classic songs from its past albums, in addition to playing songs from its newest album. By singing both old songs to satisfy older audience members and songs from its more recent album to satisfy younger fans, Aerosmith was trying to reduce _____ conflict. A. Person/role B. Heterogeneous C. Organization/client D. Interclient E. Demographic

Interclient

14. (p. 353) In the services marketing triangle, _____ marketing refers to all the activities the firm must carry out to train, motivate and reward its employees to enable the service promise to be delivered. A. Interactive B. Hierarchical C. Tactical D. External E. Internal

Internal

16. (p. 353) Cadet Uniform Services, a Canadian company that rents uniforms to major corporations, requires its new delivery drivers to go through a year-long training regimen before they receive their own delivery routes. First, new drivers go through three months of training to learn the whole scope of the business before setting foot in a delivery truck. Then they ride with experienced delivery drivers for nine months to watch how they interact with customers. According to the services marketing triangle, Cadet's training program is a form of _____ marketing. A. Internal B. Hierarchical C. Interactive D. Integrated E. External

Internal

5. (p. 543) When service quality first emerged as a pivotal competitive strategy what method did managers use to determine the effect of improved service quality on financial success? A. Intuition B. Return on service quality (ROSQ) C. Trend analysis D. Experiential research E. Focus groups

Intuition

3. (p. 443) The fundamental issue underlying supply and demand management in services is the lack of _____ capability. A. Inventory B. Customization C. Automation D. Standardization E. Transportation

Inventory

42. (p. 408) Compatibility management: A. Is unrelated to the implementation of customer participation strategies B. Does not coalesce well with the drama metaphor used to describe services C. Is a process for managing the customer mix D. Is only of value in internal marketing E. Creates a homogeneous employee pool

Is a process for managing the customer mix

16. (p. 445) 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: A. Equipment B. Labor C. Money D. Facilities E. Time

Labor

10. (p. 519) Which of the following statements describes a problem in cost-based pricing for services? A. Monetary price must be adjusted to reflect the value of non-monetary costs B. Heterogeneity of services limits comparability C. Prices may not reflect customer value D. Labor is more difficult to price than materials E. Information on service costs is not available to customers

Labor is more difficult to price than materials

1. (p. 442) Which of the following factors in managing demand and capacity does NOT lead to provider gap 3, failure to deliver what was designed and specified? A. Lack of communication between contact personnel and company management B. Under use of service capacity C. Failure to smooth the peaks and valleys of demand D. Overuse of service capacity E. The attraction of an inappropriate customer mix in an effort to build demand

Lack of communication between contact personnel and company management

4. (p. 443) Harris Woodard has purchased a franchise business called Like New Windshields, a company that repairs cracked and pitted vehicle windshields. As a franchisee, he will come to your home or office to repair a damaged windshield. His goal is to make sure that he has enough customers without having more than he can handle efficiently. Which of the following is going to make it difficult for him to accomplish his goal? A. Lack of inventory capability B. Compatibility management C. Customer heterogeneity D. Franchise empowerment E. Fluctuating equilibrium points

Lack of inventory capability

8. (p. 444) Which of the following service businesses is LEAST likely to experience wide fluctuations in demand over time? A. Baptist Hospital emergency room B. Landmark Trust Bank C. McDonald's restaurants D. Houston Police Department E. Becker and Rosen Accounting Services

Landmark Trust Bank

26. (p. 553) Which of the following statements about providing customers with service quality is true? A. All customers must be provided the same superior quality of service B. All customers are worth attracting and keeping through the use of service quality C. The same services marketing strategy should be used with all customers D. All customers will be profitable in the long run; therefore, each is deserving of quality service E. Links exist among customer satisfaction, service quality and increased purchases

Links exist among customer satisfaction, service quality and increased purchases

44. (p. 408-410) Compatibility management is LEAST important in which of the following services? A. Airplane flights B. Movie theater C. College basketball game D. Theme park E. Long distance telephone service

Long distance telephone service

36. (p. 559) All of the following are customer perceptual measures within the balanced performance scorecard EXCEPT: A. Number of defections B. Number of cross sales C. Service perceptions D. Long-term value of customer E. Service expectations

Long-term value of customer

2. (p. 513-515) Which of the following statements does NOT contain a reason why consumers lack accurate reference prices for services? A. Individual customer needs vary within the same service provider B. Collection of price information is overwhelming in services C. Many service providers are unable or unwilling to estimate price in advance D. Low degree of variability exists across providers of the same service E. Prices are not visible

Low degree of variability exists across providers of the same service

27. (p. 525) 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: A. All that I get for all that I give B. Everything I want in a service C. Low price D. Reliable service E. The quality I get for the pace I pay

Low price

48. (p. 468) A dental office that provides patients a variety of magazines to read and TV to watch while they are waiting is using which of the following waiting line strategies? A. Establishing a reservation process B. Making waiting fun or at least tolerable C. Expanding waiting room capacity D. Differentiating waiting customers E. Employing operational logic

Making waiting fun or at least tolerable

27. (p. 485) 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 use of this narrative is one way the chiropractor as a service provider can: A. Avoid having to educate customers B. Manage its service promises C. Encourage horizontal communications D. Avoid over-promising and under-delivering E. Manage its internal marketing communications

Manage its service promises

24. (p. 484) Which of the following services is highest in incorporeal evidence? A. Event planning B. A movie theater C. Vacation cruise D. Management consulting E. A drive-through liquor store

Management consulting

14. (p. 520-521) In which of the following service industries are you most likely to find the service provider using fee for service pricing? A. Apartment rental business B. Management consulting business C. Cleaning service industry D. Airline industry E. Internet service providers

Management consulting business

35. (p. 500-502) Offering choices to the customer is a strategy for: A. Avoiding the perception of service inconsistency B. Managing service promises C. Managing customer expectations D. Managing horizontal communications E. Improving customer education

Managing customer expectations

37. (p. 500-502) 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: A. Making multilevel service promises B. Managing service promises C. Managing customer expectations D. Managing horizontal communications E. Exceeding customer expectations

Managing customer expectations

40. (p. 500-502) Creating tiered value service offerings is a strategy for: A. Managing service promises B. Managing customer expectations C. Communicating with customers D. Managing horizontal communications E. Exceeding customer expectations

Managing customer expectations

41. (p. 500-502) Because he has a busy practice, new patients for dentist Dr. Kirby Brown are told 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: A. Managing service promises B. Managing customer expectations C. Communicating with customers D. Managing horizontal communications E. Exceeding customer expectations

Managing customer expectations

19. (p. 486) _____ means transmitting information across functional boundaries in an organization to align all functions with customer expectations. A. Managing service promises B. Resetting customer expectations C. Communicating with customers D. Managing horizontal communications E. Exceeding customer expectations

Managing horizontal communications

48. (p. 504) When Sarah opened her savings and checking accounts at First National Bank of Chicago, she was given a brochure entitled "How to Lose Wait" that gave her advice on how to avoid delays at the bank and listed her branch's busiest and slowest times. By giving Sarah the "How to Lose Wait" brochure, First National Bank of Chicago is: A. Managing service promises B. Resetting customer expectations C. Improving customer education D. Managing horizontal communications E. Exceeding customer expectations

Managing horizontal communications

50. (p. 507-508) By creating cross-functional teams, a service firm is: A. Managing service promises B. Resetting customer expectations C. Communicating with customers D. Managing internal marketing communications E. Exceeding customer expectations

Managing internal marketing communications

28. (p. 492) An advertisement for the Four Seasons Hotel featured Marlene Wei, a housekeeper at the Four Seasons Hotel in Chicago. Copy for the advertisement noted that "Marlene is the soul of concern. She cannot sleep well at night unless she is certain you will. Her mission is to enhance your personal comfort and, in turn your professional efficiency the following day". By featuring Marlene Wei in an advertisement, the Four Seasons Hotel is: A. Managing its service promises B. Resetting customer expectations C. Improving customer education D. Managing horizontal communications E. Educating the customer

Managing its service promises

33. (p. 495-499) 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: A. Managing its service promises B. Resetting customer expectations C. Precisely matching service delivery with service promise D. Managing its horizontal communications E. Under-promising and over-delivering

Managing its service promises

34. (p. 495-499) Parking for travelers flying out of Hartsfield-Jackson International Airport in Atlanta is difficult for those who have the time to look. For those who arrive at the airport with only time enough to catch their flight, parking has been a nightmare until the development of the GoldParker System, which guarantees a convenient parking place to its members. The system is extremely popular among business travelers and works just as advertised. By instituting the GoldParker System, Hartsfield's management is: A. Managing service promises B. Lowering customer expectations C. Communicating with low-involvement customers D. Managing horizontal communications E. Managing interactive marketing communications

Managing service promises

46. (p. 408) Nude bathing is the norm at the Tagoona lakefront beach. By prohibiting the wearing of clothes on weekdays, the Tagoona lakefront beach is: A. Rewarding customers B. Positioning customers C. Managing the customer mix D. Defining customers' jobs E. Educating customers

Managing the customer mix

47. (p. 408) 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: A. Rewarding customers B. Positioning customers C. Managing the customer mix D. Defining customers' jobs E. Educating customers

Managing the customer mix

42. (p. 534) The New York Yankees, a major league baseball team, offer half-price tickets for high school and college students every Wednesday home game at Yankee Stadium. The New York Yankees are using a(n) _____ pricing strategy. A. EDLP B. Value C. Penetration D. Market segmentation E. Cost-based

Market segmentation

41. (p. 533-534) What two pricing strategies are most commonly used when the customer defines value as quality for the price paid? A. Market segmentation pricing and value pricing B. Psychological pricing and value pricing C. Penetration pricing and value pricing D. Discounting and value pricing E. Market segmentation pricing and price skimming

Market segmentation pricing and value pricing

25. (p. 450) The Kingston Little Theater is a semi-professional troupe that presents six productions annually. It knows that if it presents a musical from the 1950s or the 1960s it will attract a large audience from the gay community to see the production. It could chart its demand pattern by looking at: A. How it acquires prospects B. Geographical influences on demand C. Audience empowerment D. Market segments E. Seasonal fluctuations

Market segments

4. (p. 480) Rangu read in the newspaper that he could receive a free month's cable television service if he would agree to use the service for three years. The ad had no other stated restrictions and appeared to apply to the entire county in which Jackson lived. When Rangu went by the cable television office, the salesperson there told Rangu that his area of the community was not eligible for the free month offer. If he wanted cable, he had to pay $400 to have the cable service brought to his house. Rangu experienced a problem with: A. Under-promising and over-delivering B. Marketing communications that were not integrated C. A lack of interactive marketing communications D. Poor vertical communications E. Ignorance of the services marketing mix

Marketing communications that were not integrated

25. (p. 484) Which of the following products has the highest degree of nonsearchability? A. Motor oil B. Fresh doughnuts C. A wedding veil D. Theater performance E. Massage therapy

Massage therapy

45. (p. 408-410) Compatibility management is most important in which of the following services? A. An Internet service provider B. A home correspondence course C. A do-it-yourself house cleaning D. Mental health support group E. Long distance telephone service

Mental health support group

26. (p. 484) 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. A. Nonsearchability B. Abstractness C. Incorporeal existence D. Generality vs. specificity E. Mental impalpability

Mental impalpability

29. (p. 451) The business program at Kennesaw State University offers classes that start as early as 6:30 a.m. and as late as 9:30 p.m. for its undergraduates. It also has Saturday and Sunday undergraduate classes in addition to its regular daytime program. KSU is using which of the following strategies for shifting demand to match capacity? A. Differentiate on price B. Modify timing and location of service delivery C. Vary the service offering D. Stretch capacity E. Communicate with customers

Modify timing and location of service delivery

25. (p. 524) Which of the following statements describes a problem with demand-based pricing for services? A. Prices may not reflect customer value B. Costs are difficult to trace C. Heterogeneity of services limits comparability D. Monetary price must be adjusted to reflect the value of non-monetary costs E. Labor is more difficult to price than materials

Monetary price must be adjusted to reflect the value of non-monetary costs

13. (p. 445) Which of the following is NOT considered a capacity constraint for a service provider? A. Equipment B. Labor C. Money D. Facilities E. Time

Money

49. (p. 469) New Bedford College is a small institution that has not yet adopted online registrations. When it's time to pay for classes, its students can pick from one of three lines. Some lines seem to move faster than others, but all allow the students to accomplish the same goal-paying their tuition and fees. Which of the following queue configurations does New Bedford College use? A. Multiple queue B. Double queue C. Take-a-number queue D. Queue with barriers E. Roundabout queue

Multiple queue

4. (p. 516) _____ costs represent other sources of sacrifice perceived by consumers when buying and using a service. A. Penalty B. Forfeit C. Opportunity D. Nonmonetary E. Psychological

Nonmonetary

47. (p. 564) Many companies do not identify and act on the correct non-financial measures. One mistake the companies make is _______ that involves not laying out the cause-and-effect relationships between drivers and strategic success. A. Not linking measures to strategy B. Not validating the links C. Not setting the right performance targets D. Measuring incorrectly E. Not creating a balanced scorecard

Not linking measures to strategy

49. (p. 565) Many companies do not identify and act on the correct non-financial measures. One mistake the companies make is _______ that involves measuring complex phenomenon with one or two simple measures or using quantitative metrics to capture qualitative results for factors such as leadership. A. Not linking measures to strategy B. Not validating the links C. Not setting the right performance targets D. Measuring incorrectly E. Not creating a balanced scorecard

Not setting the right performance targets

48. (p. 564) Many companies do not identify and act on the correct non-financial measures. One mistake the companies make is _______ that involves not verifying that the non-financial measures lead to financial performance. They do not analyze the relationships to validate the linkages. A. Not linking measures to strategy B. Not validating the links C. Not setting the right performance targets D. Measuring incorrectly E. Not creating a balanced scorecard

Not validating the links

37. (p. 559) All of the following are examples of operational measures within the balanced performance scorecard EXCEPT: A. Process quality B. Throughput time C. Number of cross sales D. Reduction in waste E. Transaction time

Number of cross sales

33. (p. 529) Bell Atlantic NYNEX Mobile introduced its Talk Along portable phone service at a price of $14.99 a month. Bell Atlantic is using a(n) _____ pricing strategy. A. Odd B. Synchro C. Discounting D. Prestige E. Complementary

Odd

11. (p. 545-548) There are several auto repair shops in a three-block area on King Street. One of the shop owners decided to extend her shop's operating hours until 10 p.m. Monday-Thursday and provide a pick-up and delivery service with bonded drivers as well as guarantee all repairs for six months. This job owner is engaged in _____ marketing. A. Defensive B. Churn C. Guerilla D. Flank-movement E. Offensive

Offensive

8. (p. 545) Service quality can help companies attract more and better customers to the business through _____ marketing. A. Insurgent B. Offensive C. Flank movement D. Defensive E. Guerilla

Offensive

21. (p. 499-500) 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: A. Creating tiered-value offerings to improve customer education B. Preparing customers for the service process through customer education C. Offering service guarantees to manage service promises D. Featuring the servicescape as a tool for integrating its marketing communications E. Confirming that performance equals performance standards to manage customer expectations

Offering service guarantees to manage service promises

46. (p. 560-561) FedEx measures customer satisfaction and service quality with a 12-item statistical measure called the Service Quality Indicator. One of the items measured by FedEx is the number of missed pickups per day. In a balanced performance scorecard, the number of missed pickups per day would represent a(n) _____ measure. A. Competitor B. Customer C. Financial D. Innovation and learning E. Operational

Operational

28. (p. 358) Service employees who depend on tips or commissions for income are likely to face greater levels of _____ conflict than employees who receive a straight salary. A. Person/role B. Vertical C. Organization/client D. Inter-client E. Horizontal

Organization/client

35. (p. 455) 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 long-term solution to problems with distribution capacity that HP experienced prior to the implementation of this arrangement. Which strategy is HP using to flex demand to meet capacity? A. Aligning its capacity with demand fluctuations B. Stretching its existing capacity C. Shifting demand to match its capacity D. Smoothing peaks and valleys of demand E. Outsourcing

Outsourcing

10. (p. 546-548) The benefits of offensive marketing have been documented through the use of: A. PIMS (profit impact of marketing strategy) B. Multiple regression analysis C. Return on investment (ROI) analysis D. Financial ratios E. All of the above

PIMS (profit impact of marketing strategy

15. (p. 353) All of the following could be classified as internal customers of a hospital EXCEPT: A. Patients B. Doctors C. Nurses D. Bookkeepers who work in the hospital's billing office E. Anesthesiologists

Patients

5. (p. 387) Patients sitting in dental chairs are part of the _____ element of the services marketing mix. A. People B. Product C. Place D. Promotion E. Physical evidence

People

41. (p. 561) An organization that wanted to create quantitative measures of its innovation and learning should use: A. Rate of customer defection B. The 80/20 principle C. Long-term value of innovation to customers D. The operating efficiencies continuum E. Performance-to-goal percentages

Performance-to-goal percentages

6. (p. 443) 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. A. Intangibility B. Simultaneous production and consumption C. Heterogeneity D. Perishability E. Divisibility

Perishability

5. (p. 443) The lack of inventory capability in services is due to which of the following characteristics of services? A. Heterogeneity and perishability B. Simultaneous production and consumption and intangibility C. Perishability and simultaneous production and consumption D. Heterogeneity, perishability and intangibility E. Simultaneous production and consumption and heterogeneity

Perishability and simultaneous production and consumption

26. (p. 357) When a lawyer feels a conflict between what she is asked to do and her own personality, orientation or values she is experiencing _____ conflict. A. Person/role B. Vertical C. Organization/client D. Inter-client E. Horizontal

Person/role

27. (p. 357) Which type of conflict results from the fact that Sullins Cleaning requires its employees to wear uniforms? A. Person/role B. Vertical C. Organization/client D. Inter client E. Horizontal

Person/role

4. (p. 352) Flying across the Pacific Ocean is an eight-hour trip that could be dreadful if you did not fly Singapore Airlines. One frequent flyer between the U.S. and Japan noted its "cabin crew do not give the usual impression of doing passengers a favor by taking care of them. In short, they make flying with Singapore Airlines a pleasure". What role does this passenger have the cabin crew playing? A. Embodying the service B. Marketing the organization C. Personifying the service in the customer's eyes D. Engaged in capacity management E. Eliminating the need for differential advantages

Personifying the service in the customer's eyes

13. (p. 485-486) In which of the following services is inadequate customer communication most likely to result in customer dissatisfaction? A. Fast food restaurant B. Animal boarding C. Movie theater D. Physical rehabilitation therapy E. Overnight package delivery

Physical rehabilitation therapy

29. (p. 489-490) An advertisement for the Four Seasons Hotel featured Marlene Wei, a housekeeper at the Four Seasons Hotel in Chicago. Copy for the advertisement noted that "Marlene is the soul of concern. She cannot sleep well at night unless she is certain you will. Her mission is to enhance your personal comfort and, in turn your professional efficiency the following day". Which strategy for tangibilization is the Four Seasons Hotel using in this ad? A. Association B. Physical representation C. Intimidation D. Documentation E. Visualization

Physical representation

38. (p. 407) An airport with large, easily read signage and well-designed foot traffic patterns that allow travelers to perform their roles with ease is providing travelers with _____ orientation. A. Place B. Cultural C. Promotable D. Physical evidence E. Function

Place

1. (p. 479) A major cause of _____ is the difference between what a firm promises about a service and what it actually delivers. A. Customer empowerment B. Poorly perceived service C. Service downsizing D. Service autonomy E. Originator ambiguity

Poorly perceived service

33. (p. 405) Which of the following is NOT a strategy for enhancing customer participation in the service process? A. Recruit customers B. Position customers C. Manage the customer mix D. Define customers' roles E. Educate customers

Position customers

21. (p. 448) Mass transit train and bus service has peak periods of demand Monday through Friday during morning and evening rush hours. Demand for mass transit service is a(n): A. Random demand fluctuation B. Relative demand shift C. Predictable demand cycle D. Vertical demand configuration E. Organized demand pattern

Predictable demand cycle

22. (p. 448) For those people who think they need some sort of psychological counseling but don't feel they have the time, the Internet offers www.hear2listen.com, which allows users to communicate with a licensed therapist at a cost of $1 per minute. 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 Internet service at these times. A. Random demand fluctuation B. Relative demand shift C. Predictable demand cycle D. Vertical demand configuration E. Organized demand pattern

Predictable demand cycle

42. (p. 503-504) Which of the following is a strategy used for improving customer education? A. Teach customers to avoid peak demand periods and see slow periods B. Clarify expectations after the sale C. Prepare customers for the service process D. Conform performance to standards E. Create tiered-value offerings

Prepare customers for the service process

45. (p. 535) Deana and Rod Li went on a one-week vacation at the Club Med Turkoise village, located in Turks and Caicos, a chain of islands in the Caribbean. Club Med's per person price of $1199 included round-trip air travel from New York, one-week accommodations, all meals, sports, activities and nightly entertainment. Club Med is using a _____ strategy. A. Market segmentation pacing B. Price framing C. Complementary pricing D. Price bundling E. Contingency pricing

Price bundling

9. (p. 546, 548) Offensive marketing effects involve market, reputation and: A. Word-of-mouth communication B. Vertical integration C. Price premiums D. High purchase volumes E. Geodemographic segmentation

Price premiums

21. (p. 523) _____ 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. A. Cost-plus pricing B. Price signaling C. Value pricing D. Price lining E. Price standardization

Price signaling

22. (p. 523) A day after Continental Airlines announced its new low fares for the autumn on travel from New York (i.e., Newark and LaGuardia Airports) to selected cities in the U.S., Canada, the Caribbean and Latin America, USAir and American Airlines matched Continental's fares. USAir and American Airlines are using a _____ strategy. A. Value pricing B. Price signaling C. Demand-based pricing D. Going-rate pricing E. Price trimming

Price signaling

43. (p. 532-536) Which of the following is NOT an example of an effective pricing strategy to use when the target market defines value as all that is received is all that is given? A. Price framing B. Price skimming C. Complementary pricing D. Results-based pricing E. Price bundling

Price skimming

10. (p. 392) To save resources, hotels are asking guests to hang up their towels and reuse them if they are staying multiple nights. A guest who hangs up his towels is playing the role of a: A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

Productive resource

11. (p. 392) Continental Airlines has installed automated ticket machines in its major airport terminals that enable passengers to purchase tickets, obtain boarding passes and get seat assignments by inserting a credit card into the machine. A passenger using a Continental Airlines' automated ticket machine is playing the role of a: A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

Productive resource

9. (p. 392) Hyatt Hotels has installed automated check-in machines at hotels in Atlanta and Chicago. 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: A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

Productive resource

44. (p. 368-369) Domino's Pizza uses its Team/Individual/Performance/Objectives (TIPO) system to relate employee bonuses to individual and team performance for a given time period. Domino's Pizza's TIPO system is: A. Including employees in the company's vision B. Empowering employees C. Creating employees as customers D. Promoting teamwork E. Developing service oriented internal processes

Promoting teamwork

35. (p. 404) Chatham Landing, an apartment complex in Orlando, Florida, 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? A. Helping oneself B. Positioning the company C. Promoting the company D. Recruiting customers E. Helping others

Promoting the company

36. (p. 404) After having a positive service experience at Lens Crafters when she had her eyes examined and purchased new contact lenses, Diane recommended Lens Crafters to two of her friends who were planning to get new eyeglasses. Diane is performing which of the following customer jobs? A. Helping himself or herself B. Positioning the company C. Promoting the company D. Recruiting customers E. Helping others

Promoting the company

45. (p. 369) At AT&T Universal Card's Customer-Service Center in Jacksonville, Florida, customer service representatives are given immediate access via their computer screen to information and tools they need to serve the customer efficiently. When a customer calls, the representative can view the customer's account records and any notes from previous telephone calls from the customer. The representatives also have information on commonly asked questions. By providing immediate access to customer files, AT&T Universal Card is using which of the following human resource strategies for closing provider gap 3? A. Hire the right people B. Provide needed support systems C. Retain the best people D. Develop people to deliver service quality E. Set service standards

Provide needed support systems

11. (p. 485-486) 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: A. Inadequate internal marketing communications B. Inappropriate external marketing communications C. Providing inadequate customer education D. Under-promising and over-delivering E. Inadequate management of customer expectations

Providing inadequate customer education

46. (p. 369) A service firm that conducts periodic internal marketing research to assess employee satisfaction and needs is using which of the following human resource strategies for closing provider gap 3? A. Hiring the right people B. Providing needed support systems C. Using a control system to eliminate unnecessary service encounters D. Training teams to deliver service quality E. Establishing effective servicescapes

Providing needed support systems

24. (p. 397) Whether a household or a firm chooses to produce a particular service for itself or contract externally for the service depends upon a non-economic factor that is referred to as: A. Intuitive bonuses B. Extraordinary incentives C. Incentives for amelioration D. Psychic rewards E. Altruism

Psychic rewards

9. (p. 517) Initial consumer resistance to online bill paying resulted from a _____ cost in using a new service. A. Convenience B. Monetary C. Psychological D. Time E. Search

Psychological

31. (p. 360) A state auditor who is expected to deliver quality, individualized service to state offices and departments while at the same time finishing jobs as quickly as possible is experiencing a(n) _____ tradeoff: A. Demand/supply B. Client/organization C. Customization/standardization D. Inclina tion/competency E. Quality/productivity

Quality/productivity

32. (p. 360) 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. A. Demand/supply B. Client/organization C. Customization/standardization D. Inclina tion/competency E. Quality/productivity

Quality/productivity

37. (p. 531) If a family has one child enrolled in Kid's Corral day care center, it costs $75 per week. If a family has two children enrolled in Kid's Corral, it costs $135. Step-by-Step is using a(n) _____ differential. A. Place B. Time C. Quality D. Incentive E. Quantity

Quantity

23. (p. 448) 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): A. Random demand fluctuation B. Relative demand shift C. Predictable demand cycle D. Vertical demand configuration E. Organized demand pattern

Random demand fluctuation

24. (p. 448) The 2005 tsunami in Southeast Asia caused: A. Random demand fluctuations B. Relative demand shifts C. Predictable demand cycles D. Vertical demand configurations E. Organized demand patterns

Random demand fluctuations

28. (p. 554) The research exploring the relative importance of service dimensions on overall service quality or customer satisfaction has confirmed _____ as the most critical dimension. A. Assurance B. Tangibles C. Empathy D. Responsiveness E. Reliability

Reliability

4. (p. 543) Return on service quality (ROSQ): A. Is based on the assumption that it is impossible to spend too much money on quality B. Replaces intuition as a guide for service quality investments C. Is an intuitive approach to determining whether a company should implement specific service quality strategies D. Is based on the assumption that all quality expenditures are valid E. Is accurately described by all of the above

Replaces intuition as a guide for service quality investments

18. (p. 355) Domino's instructs its telephone pizza order takers to pick up the telephone on the first ring and not to put customers on hold. When answering the telephone, an order taker must be energetic, friendly and let the customer hear the smile on his or her face. Domino's guidelines for order takers' telephone answering behavior will influence which of the following service quality dimensions for Domino's? A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

Responsiveness

19. (p. 355) Progressive Insurance looked at insurance from the customer's viewpoint and saw how difficult it was to get an auto claim processed and paid by insurance companies. Then the company crafted its service strategy around solving that problem. The company has fleets of claim adjustors on the road every day, ready to rush to the scene of an accident in their territory and provide fast claims processing-sometimes on the spot. The ability of the insurance company to have an adjustor at accident sites so quickly is an example of which of the following service quality dimensions? A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

Responsiveness

49. (p. 536) Kendra teaches swimming lessons at the YWCA pool. She will charge $75 per child for four weeks worth of lessons. Payment is not due until the child can swim the length of the pool. If the child cannot accomplish this task, he or she will be automatically enrolled in the next swimming lesson session until the child can swim the length of the pool. At that time, the parents will be expected to pay the $75. The YWCA is using a(n) _____ pricing strategy. A. Price framing B. Complementary pricing C. Price bundling D. Results-based E. Value-based

Results-based

17. (p. 521-522) In which of the following service industries would you most likely find the service provider using competition-based pricing? A. Banking industry B. Hospital industry C. Legal services D. Tax accounting business E. Retail book industry

Retail book industry

48. (p. 371) FedEx honors a handful of non-management employees with its Golden Falcon award each month, recognizing efforts that are "above and beyond their customary line of duty". This award includes a gold pin with the gold falcon emblem and ten shares of FedEx stock. By giving deserving employees the Golden Falcon award, FedEx is using which of the following human resources management strategies for closing provider gap 3? A. Hire the right people B. Provide needed support systems C. Retain the best people D. Develop servicescapes to deliver service quality E. Creating an employee-oriented culture

Retain the best people

49. (p. 371) The Ritz-Carlton Hotel recognizes and rewards employees who perform feats of outstanding service. Under its 5-Star Awards program, peers and managers nominate outstanding performers. Winners receive plaques at dinners celebrating their achievements. For on-the-spot recognition, managers award Gold Standard Coupons to outstanding employees, redeemable for items in the gift shop and free weekend stays at the hotel. The Ritz-Carlton Hotel is using which of the following human resources management strategies for closing provider gap 3? A. Hire the right people B. Provide needed benchmarks C. Retain the best people D. Develop servicescapes to deliver service quality E. Set service standards

Retain the best people

53. At Harrah's casinos and hotels, a portion of employee compensation is linked to customer satisfaction scores, so employees have an investment in achieving excellent service levels. Employees also have a vested interest in the performance of the entire team in serving customers exceptionally well. Outstanding employees are recognized with special Chairman's Awards, and their names are published in Harrah's annual report. Harrah's is using which of the following human resource management strategies for closing provider gap 3? A. Provide needed benchmarks B. Retain the best people C. Set service standards D. Develop servicescapes to deliver service quality E. Hire the right people

Retain the best people

2. (p. 543) The best known and most widely respected approach that executives use for making decisions about service quality investments is: A. Total quality management returns B. Observational research C. Focus groups D. Return on service quality E. Ethnographic research

Return on service quality

40. (p. 407) 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: A. Rewarding customers B. Positioning customers C. Managing the customer mix D. Defining customers' jobs E. Educating customers

Rewarding customers

50. (p. 413) A service station that offers customers lower gasoline prices at a self-service pump compared to the prices at a full-service pump is: A. Rewarding customers B. Positioning customers C. Managing the customer mix D. Defining customers' jobs E. Educating customers

Rewarding customers

25. (p. 397) When Tim got in line to pay for his groceries, he picked the line in which he was required to scan the prices of his groceries and bag them himself. He was pleased with the use of ____ because it would allow him to get his eggs home unbroken without some store bagger dropping a melon on top of them. A. A promotable differentiator B. An ergonomic layout C. SSTs D. ISPs E. Robotics

SSTs

7. (p. 517) _____ cost refers to the effort invested in identifying and selecting a service from your consideration set. A. Convenience B. Monetary C. Psychological D. Time E. Search

Search

26. (p. 397) _____ are services produced entirely by the customer without any direct involvement or interaction with the firm's employees. A. Actor-oriented services B. Drama monologues C. Self-service technologies D. Frequency marketing programs E. Competitive differentiators

Self-service technologies

28. (p. 398) Hyatt Hotels has installed automated check-in machines at hotels in Atlanta and Chicago. To check in and get a room key, guests insert a credit card into the machine. Hyatt is experimenting with the use of: A. Self-service technologies B. Functional symbols C. Robotics D. Compatibility management E. Output dimensions

Self-service technologies

6. (p. 486) The primary goal of integrated services marketing communications (ISMC) is: A. Service delivery equal to or greater than promised B. Lowered customer expectations and higher customer perceptions C. Servicescape omniscience D. Homogeneous services E. Functional internal marketing channels

Service delivery equal to or greater than promised

27. (p. 555) The key drivers of service quality, customer retention and profits are: A. The servicescape B. The five dimensions of service C. External marketing communications D. Service encounters E. All of the above

Service encounters

39. (p. 559) All of the following are measures within the innovation and learning perspective of the balanced performance scorecard EXCEPT: A. Employee skills B. Return on innovation C. Number of new products D. Time spent talking to customers E. Service expectations

Service expectations

23. (p. 484) Which of the following statements about the Banwari Mittal's properties ofintangibility is true? A. Services such as dental care have less nonsearchability than babysitting B. An ATM is high in incorporeal existence C. Service benefits such as fun and excitement are concrete terms D. Services like doctors, amusement parks and health clubs are typically described in specific terms E. Services such as an MRI or a cat scan have a high level of mental impalpability

Services such as an MRI or a cat scan have a high level of mental impalpability

40. (p. 533) In a _____ pricing strategy, new services are introduced at high prices with large promotional expenditures. A. Penetration B. Skimming C. Prestige D. Contingency E. Visible

Skimming

26. (p. 458) Which of the following is NOT an example of a strategy used to shift demand to match capacity? A. Differentiate on price B. Modify timing and location of service delivery C. Vary the service offering D. Stretch capacity E. Communicate with customers

Stretch capacity

33. (p. 454-455) Which of the following is NOT a long-term strategy for adjusting capacity with demand fluctuations? A. Cross-training employees B. Scheduling down time during periods of low demand C. Renting additional facilities or equipment D. Using part-time employees E. Stretching existing labor

Stretching existing labor

6. (p. 392-393) In which of the following service situations would customers have the highest level of participation? A. Eating at a local barbecue restaurant B. Surgery to remove the gall bladder C. Staying at a Marriott resort hotel D. Traveling on an American airplane E. Attending a symphonic orchestra concert

Surgery to remove the gall bladder

34. (p. 529) Because most people like to get tattoos and body piercings on the weekends, a tattoo parlor in Portland, Maine, offers a reduced rate Monday to Thursday for all of its services. Prices on Friday and Saturday are 45 percent higher than they are during the rest of the week. The tattoo parlor is using a(n) _____ pricing strategy. A. Odd B. Synchro C. Discounting D. Prestige E. Complementary

Synchro

51. A potential benefit of empowerment is quicker response to dissatisfied customers during service recovery. TRUE OR FALSE

TRUE

55. Restaurants with salad bars view customers as productive resources. TRUE OR FALSE

TRUE

42. (p. 466-467) Which of the following queue configurations is designed to ensure fairness of waiting time? A. Multiple queue B. Double queue C. Take-a-number queue D. Queue with barriers E. Roundabout queue

Take-a-number queue

36. (p. 500-502) Which of the following is NOT a strategy a service provider would use if its goal were to manage customer expectations? A. Create tiered-value service offerings B. Negotiate unrealistic expectations C. Communicate criteria for service effectiveness D. Teach customers to avoid peak demand periods and see slow periods E. Offer choices

Teach customers to avoid peak demand periods and see slow periods

1. (p. 512) One of the reasons used to explain why customers evaluate goods and services differently is: A. The degree of customer empowerment used to sell services B. How services and goods influence opportunity costs C. That customers often have limited reference prices for services D. The increased customer autonomy in the pricing of goods E. The cost of maintaining inventory

That customers often have limited reference prices for services

1. (p. 542) The ROSQ approach would be appropriate for a service provider: A. That used service blueprints B. That terminated relationships with its least profitable customers C. Deciding to purchase employee dental insurance D. That was thinking of developing a home delivery service in addition to offering products at a central location E. Deciding to increase prices for basic services by ten percent

That was thinking of developing a home delivery service in addition to offering products at a central location

46. (p. 467) On certain days during the week, Disneyworld allows guests who stay at a Disney Resort hotel to enter the Magic Kingdom, Epcot Center or Disney-MGM Studios one hour before the parks are open to the public. Walt Disney World is minimizing waiting time by differentiating customers on the basis of: A. Their willingness to perform the service role B. The importance of the customer C. The duration of their stay in the amusement park D. Their need to have fun E. The payment of a premium price

The importance of the customer

3. (p. 350-351) Progressive Insurance looked at insurance from the customers' viewpoint and saw how difficult it was to get an auto claim processed and paid by insurance companies. Then the company crafted its service strategy around solving that problem. The company has fleets of claim adjustors on the road every day, ready to rush to the scene of an accident in their territory and provide fast claims processing—sometimes on the spot. What advice would you give Progressive Insurance if it wanted to expand its market to include China, where there is a rapidly growing middle class? A. Use the same service model the company uses in the U.S. and success is guaranteed B. It is impossible because service excellence is not appreciated in other countries C. Values are the same worldwide so Progressive should have no problem D. Other than some language differences, Progressive should have no difficulty because its service is based on human interaction E. The many legal, cultural and language barriers will make it very challenging

The many legal, cultural and language barriers will make it very challenging

29. (p. 525) 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: A. All that I get for all that I give B. Whatever I want in a service C. Low price D. Reliable service E. The quality I get for the price I pay

The quality I get for the price I pay

43. (p. 408) In which of the following situations will compatibility management be of little or no importance? A. The service environment attracts a homogeneous customer mix B. Customers are in close proximity to each other C. The core service is compatibility D. Customers must wait for the service E. Customers engage in numerous and varied activities

The service environment attracts a homogeneous customer mix

38. (p. 532) In which of the following situations would a penetration pricing strategy be inappropriate? A. Sales volume of the service is very sensitive to price B. Economies in unit costs can be achieved by operating at large volumes C. A service faces threats of strong potential competition very soon after introduction D. There is no class of buyers willing to pay a higher price to obtain the service E. The service is a major improvement over past services

The service is a major improvement over past services

12. (p. 485-486) Inadequate customer communication occurs when: A. The services have synchronized supply and demand B. Customers are experienced users of the service C. The services are low in credence qualities D. The service is difficult for the customer to evaluate t even after it has been delivered E. The services are high priced

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

46. (p. 503-504) Service providers sometimes need to tell customers that services have been performed for them. To get credit for their actions, service providers need to reinforce their actions with appropriate communication about their accomplishment of the service. Services for which customers must be told that the service has been performed have which of the following characteristics? A. The service is invisible B. No part of the service offering is outsourced C. The customer can easily evaluate the effectiveness of the service D. The user of the service and the decision maker for the service are the same individual E. The service is visible

The service is invisible

14. (p. 486) Customer education is beneficial for closing provider gap 4 when: A. The supply and demand of the service are not synchronized B. Customers are experienced users of the service C. The services are low in credence qualities D. The services are classified as low involvement E. The services are high priced

The supply and demand of the service are not synchronized

17. (p. 354) According to the service profit chain: A. There is a direct relationship between employee satisfaction and customer loyalty B. Internal marketing is more important than either interactive or external marketing C. The strategies for internal, external and interactive marketing are equally important D. Customer loyalty is unrelated to internal marketing E. Reliability is the most important of all the desired service characteristics

There is a direct relationship between employee satisfaction and customer loyalty

39. (p. 462) Traditional yield management strategies are most profitable when: A. The service provider has a homogeneous target market B. Its target market is not price sensitive C. All members of the target market arrive at basically the same time D. Those who arrive early or reserve early are more price sensitive than those who reserve or arrive late E. All of the target market is equally price sensitive

Those who arrive early or reserve early are more price sensitive than those who reserve or arrive late

14. (p. 445) The primary constraint on service production for a lawyer is: A. Equipment B. Utility C. Money D. Facilities E. Time

Time

36. (p. 530-531) American Airlines BreakAway fares offer travelers substantial savings on nonstop flights from Newark, New Jersey to Los Angeles from mid-August to mid-October. The round-trip airfare is $299 for customers who depart on Friday and return the following Monday or Tuesday. American Airlines is using a(n) _____ differential. A. Place B. Time C. Quality D. Incentive E. Quantity

Time

5. (p. 516) 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. A. Convenience B. Monetary C. Psychological D. Time E. Search

Time

6. (p. 516) The process for installing Leo's new CD player took almost four hours, which Leo spent sitting in the Circuit City store waiting room. Leo paid _____ costs for the installation of his new CD player. A. Convenience B. Fiscal C. Physiological D. Time E. Search

Time

50. (p. 373-374) Barnett Bank opened a school with kindergarten through fifth grade classes run by the Duval County school system and a child-care center at its headquarters office park in Jacksonville, Florida, to provide "work-and-family" benefits designed to help employees balance the stresses of a demanding job and family life. Barnett Bank is: A. Promoting teamwork B. Treating employees as customers C. Measuring and rewarding strong service performers D. Including employees in the company vision E. Empowering employees

Treating employees as customers

48. (p. 536) 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 is using: A. Synchro-pricing B. Two-part pricing C. Mixed bundling D. Contribution margin pricing E. Contingency pricing

Two-part pricing

47. (p. 535-536) The three types of complementary pricing are: A. Substitute pricing, price bundling and leader pricing B. Leader pricing, value pricing and price lining C. Leader pricing, penetration pricing and captive pricing D. Two-part pricing, results-based pricing and bundling E. Two-part pricing, captive pricing and loss leadership pricing

Two-part pricing, captive pricing and loss leadership pricing

9. (p. 444) Peak demand regularly exceeds capacity in all of the following service businesses EXCEPT: A. Marriott hotels B. Rome's public transportation system C. Wendy's restaurants D. USA insurance company E. H&R Block tax preparers

USA insurance company

47. (p. 468) If you've ever watched the television show ER, you should have noticed how the emergency room staff selects patients on the basis of their need for treatment. Victims who have life-threatening injuries are seen ahead of those with minor complaints like an ingrown toenail or a case of poison ivy. Emergency rooms differentiate their waiting customers on the basis of: A. Willingness to perform service role B. Importance of the customer C. Duration of the service transaction D. Urgency of the job E. Payment of a premium price

Urgency of the job

35. (p. 530-531) Which of the following is NOT a type of differential used by service providers to synchronize demand and supply? A. Time B. Quantity C. Place D. Utility E. Incentive

Utility

3. (p. 516-518) All of the following examples are nonmonetary costs EXCEPT: A. Time costs B. Search costs C. Convenience costs D. Psychological costs E. Utility costs

Utility costs

1. (p. 387) By participating in the service delivery process, customers create _____ for themselves. A. Value B. Needs C. Economic order D. Loyalty E. Economies of scale

Value

32. (p. 529) American Woman Fitness Centers offer first-time customers a 3-month membership for $59, 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? A. Value is all that I get for all that I give B. Value is everything I want in a service C. Value is low price D. Value is reliable service E. Value is the quality I get for the pace I pay

Value is low price

26. (p. 524) Which of the following statements does NOT describe how consumers typically define value? A. Value is all that I get for all that I give B. Value is everything I want in a service C. Value is low price D. Value is reliable service E. Value is the quality I get for the price I pay

Value is reliable service

31. (p. 529-532) Which of the following is NOT an effective pricing strategy to use when customers define value as "low price"? A. Odd pricing B. Synchronized pricing C. Value pricing D. Penetration pricing E. Discounting

Value pricing

5. (p. 481) Which of the following describes a reason why integrated marketing communications have not been the norm in many companies? A. Employees circumvent interactive communication norms B. Communication autonomy often leads to employee ambiguity C. Customer empowerment is short-term D. Various parts of the company are responsible for different aspects of communication E. The servicescape is designed to impede external communication

Various parts of the company are responsible for different aspects of communication

27. (p. 451-452) 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? A. Differentiate on price B. Modify timing and location of service delivery C. Vary the service offering D. Stretch capacity E. Communicate with customers

Vary the service offering

49. (p. 505) The Atlanta Kroger Marketing Area (KMA) publishes a monthly newsletter, Hot Off the Press, to provide information to its employees about food safety and preparation, changes in store policy and exceptional service encounters and the employees who were involved in these encounters. This newsletter is an example of: A. Vertical communications B. Vertical integration C. Horizontal integration D. Informal communication E. Interactive marketing

Vertical communications

20. (p. 447-450) In order to manage fluctuating demand in a service business, an organization must understand all of the following EXCEPT: A. How to chart demand patterns B. Random demand fluctuations C. Demand patterns by market segment D. Predictable demand cycles E. Vertical demand configurations

Vertical demand configurations

30. (p. 489) 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? A. Illumination B. Physical representation C. Allusion D. Documentation E. Visualization

Visualization

25. (p. 552) Which of the following is NOT a question managers want researchers to answer about defensive marketing? A. What is a loyal customer? B. How can defect-prone customers be identified? C. What is the role of service in defensive marketing? D. What aspects of service are most important for customer retention? E. What aspects of service are most important for increasing market share?

What aspects of service are most important for increasing market share?

28. (p. 525) When comparing the value of health clubs, Shaundra believes value comes from having a "women's only" nautilus room and "women's only" aerobic classes. Shaundra defines value as: A. All that I get for all that I give B. Whatever I want in a service C. Low price D. Reliable service E. The quality I get for the price I pay

Whatever I want in a service

10. (p. 444) Vacation-destination resorts experience _____ fluctuations in demand over time and have peak demand that _____. A. Wide; can usually be met without a major delay B. Wide; regularly exceeds capacity C. Narrow; can usually be met without a major delay D. Narrow; regularly exceeds capacity E. Wide, can never be met

Wide; regularly exceeds capacity

45. (p. 467-468) Which of the following is NOT a base for differentiating waiting customers? A. Willingness to perform service role B. Importance of the customer C. Duration of the service transaction D. Urgency of the job E. Payment of a premium price

Willingness to perform service role

21. (p. 549) Which type of promotion has more credibility than other sources of information about a service? A. Word-of-mouth B. Personalized direct mail C. Network television advertising D. Publicity E. Advertising in prestige magazines

Word-of-mouth

23. (p. 549-552) If given a choice, a service company that has adopted a customer retention strategy would prefer to use which of the following promotional tools? A. Word-of-mouth B. Personalized direct mail C. Network television advertising D. Publicity E. Advertising in prestige magazines

Word-of-mouth

2. (p. 496) Which of the following is NOT a company-controlled factor that influences customer expectations? A. Advertising B. Personal selling C. Employee appearance D. Word-of-mouth communication E. Pricing strategy

Word-of-mouth communication