Chp. 13 SmartBook

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

False

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

High customer satisfaction ratings

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

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

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

Threaten to terminate employees

Which of the following characteristics is not one that discriminates services from products? Multiple choice question. Volatility Heterogeneity Inseparability Intangibility Perishability

Volatility

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

Increased purchase intention Improved word of mouth

Susie decided to try a weight-loss program by Extreme Fit Foods that promised she could lose 15 pounds her first week. Susie followed the guidelines exactly and only lost 1 pound the first week. She is planning on canceling her membership and telling her other friends not to try Extreme Fit Foods. What mistake did Extreme Fit Foods make? Multiple choice question. It needed to perform the CREST method before letting her cancel the membership. It needed to provide more support systems for their customers to meet weight loss goals. It needs to communicate accurate results information to meet customers' expectations. It did nothing wrong; Susie most likely did not follow the guidelines.

It needs to communicate accurate results information to meet customers' expectations.

Joe owns a large retail company and wants to find out more about his customers' service expectations. Which one of the following is the best way for Joe to gain this insight? Multiple choice question. Joe should primarily use information gathered through the Internet on his industry. Joe needs to ask others in the industry what they know about customers' expectations. Joe should choose a time to watch his customers interact with services and workers in the store and make his best educated guess. Joe needs to engage in structured market research on his industry and brand.

Joe needs to engage in structured market research on his industry and brand.

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

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

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

Reliability

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

Service Gaps

True or false: To assess service quality, it is necessary to understand both customers' perceptions and their expectations.

True

Since service delivery is not always uniform, it is important for the provider to be sure to close the ______ gap and not promise more in their messages to buyers than they can deliver on a regular basis. Multiple choice question. knowledge expectations communications delivery

communications

In delivery of a service, one of the most important early steps is addressing the knowledge gap, or the ability to understand ______. Multiple choice question. demand for the service how to handle a service failure consumer expectations costs and profitability

consumer expectations

An airline employee is able to make a decision at the moment of assigning a passenger a seat at the gate when it is obvious the flier is in a wheel chair. The firm has _____ the employee by allowing him to move the passenger to first-class seating. Multiple choice question. incentivized rewarded supported empowered

empowered

When a firm such as Ruth's Chris Steak House tells servers to "use your best judgment" in serving a customer who is not satisfied with his or her $40 steak, it is allowing the server to make decisions at the point of delivery. This is called ____________.

empowerment

A continuing dilemma for marketers of services is to understand buyers' ______________ , which means to understand in advance what they think will be delivered based on their previous experiences and knowledge.

expectations

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

fairness

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

find a solution that seems fair to all customers

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

heterogeneity

Consumers can see and touch a product, such as a laptop computer, but cannot touch the financing program used to purchase the laptop. Services cannot be touched, tasted, or seen; they are ______. Multiple choice question. intangible inseparable heterogeneous perishable

intangible

One of the best ways for managers to reduce the ______ gap is to conduct ongoing research and regularly talk with employees to explain what customers expect to get from the brand and the firm. Multiple choice question. delivery standards knowledge communication

knowledge

The marketing manager needs to communicate with customers and employees on an ongoing basis in order to understand buyers' expectations and to reduce the ______ gap. Multiple choice question. communications delivery knowledge standards

knowledge

One of the first steps in service recovery is that the firm needs to allow the customer to air his grievance and for the firm to ______ him. Multiple choice question. reward reduce the price for listen to ignore

listen to

Firms are able to gain a better understanding of customers' service expectations by using quantitative and qualitative market ______, which can be extensive and expensive. Multiple choice question. guesses forces experiences research

research

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

respond to the customer and resolve the problem quickly

A deed, performance, or effort that cannot be physically possessed is called a(n) ______. Multiple choice question. package service item product

service

In addition to providing service employees with emotional and instrumental support, management should offer the staff ______ that reward them for providing customers with good service. Multiple choice question. better benefits incentives pensions more hours

incentives

The Service Gaps Model can be very useful to improve the delivery of services. Match each of the following gaps with an example of that gap. A) Knowledge B) Standards C) Delivery D) Communication 1) A restaurant advertises they are open for breakfast, but when guests arrive on Sunday morning, there is a sign on the door indicating they only open for brunch at 11:00. 2) A restaurant usually serves fresh bread made on the premises, but at the end of the day the ovens are shut down early and only cold loaves are available. 3) Management believes that customers in a restaurant think the service is very slow, however, management allows servers to stand around and chat. 4) Diners at a restaurant think the portions are too small, but the manager is unaware of this complaint.

A > 4 B > 3 C > 2 D > 1

Match each of the five dimensions of service quality with its definition. A) Reliability B) Responsiveness C) Assurance D) Empathy E) Tangibles 1) Appearance of physical facilities, equipment, personnel and communication materials 2) Caring, individualized attention provided to customers 3) Knowledge and courtesy of employees and their ability to convey trust and confidence 4) Ability to perform the service dependably and accurately 5) Willingness to help customers and provide prompt service

A > 4 B > 5 C > 3 D > 2 E > 1

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

A dental exam

Which of the following is an example of a service? Multiple choice question. A book A pair of boots A massage A cup of coffee

A massage

Which of the following situations best evidences how a firm can offer employees emotional support and stand behind the employees' actions? Multiple choice question. At a copy center, part-time employees are encouraged to turn over any unhappy customer to the supervisor immediately. At the return desk at a large home repair store, employees are taught not to accept any item that is no longer in an unopened package. At a dry cleaning store, employees are told not to charge unhappy customers but to enter their name on a "black list" of clients. At a picture framing store, employees are told to ignore unruly, dissatisfied customers and wait on other buyers first.

At a copy center, part-time employees are encouraged to turn over any unhappy customer to the supervisor immediately.

Lisa is a manager at a customer service call center for a footwear manufacturer. One of the customer service representatives, Mark, is upset because he just finished a call in which the customer berated him for the poor quality of a pair of shoes. Mark is worried that he may be punished for offering the customer a refund and a 20% discount on her next pair of shoes, but Lisa reassures him that he made the right decision and tells a few jokes to get his spirits up. What type of support has Lisa provided? Multiple choice question. Institutional Emotional Financial Instrumental

Emotional

Which of the following are characteristics that make marketing services different from product marketing? (Select all that apply.) Multiple select question. Profitable Perishable Heterogeneous Intangible

Perishable Heterogeneous Intangible

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

True

Service quality is defined as ______. Multiple choice question. customers' perceptions of how well a service meets or exceeds their expectations managers' perceptions of how well a service matches the standards it was designed to meet customer expectations for the service the ways in which a service communicates its value despite its intangibility

customers' perceptions of how well a service meets or exceeds their expectations

Janet had to deal with a very difficult customer who wanted to be given complimentary services such as free flights and upgrades on future flights when he very vocally complained in the airport about delays and lost luggage. He screamed at Janet and was very offensive. Her supervisor made Janet feel a little better about the unsettling experience by offering ______ support and commending her on how she handled the difficult passenger. Multiple choice question. emotional financial instrumental physical

emotional

When many students are complaining about a problem at an online university, one of the best things the university can do to better serve its students is to ______. Multiple choice question. record the complaints and analyze all data in the future after all parties involved have subdued their emotions honestly listen to students' complaints and use their messages to build a committed relationship reduce the price of courses to all students in order to overcome the anger and anxiety many students are experiencing inform students that the problem cannot be fixed during the current term but their complaints will be used to address the issue in the next semester

honestly listen to students' complaints and use their messages to build a committed relationship

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

human inputs generate differences

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

inseparability

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

inseparable

Sally is having trouble deciding which college to attend. While there are buildings, classrooms, and libraries to evaluate, the actual learning is much more difficult to evaluate. It is this ______ of the purchase that makes marketing the service, a college education, complicated. Multiple choice question. volatility inseparability perishability intangibility

intangibility

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

measurable goals that are based on customer expectations

An important element of offering emotional support to employees is to ______ when they have been empowered to make decisions in dealing with the customer. Multiple choice question. encourage the customer to be upset let them talk back to the customer encourage the employee not to be supportive not punish them

not punish them

Service providers cannot inventory or stockpile things like haircuts during slow times to "sell" later when the facility is busy. This characteristic of services is called ______. Multiple choice question. infinity intangibility inseparability perishability

perishability

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

provides support and incentives to motivate quality service

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

recovery

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

standards

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

the longer it takes to get an answer from the firm