Exam 1 - Services Marketing

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

Adequate

The fluctuations in a customer's zone of tolerance is more a function of changes in the _____, which moves readily up and down because of situational circumstances than of the _____, which tends to move upward incrementally because of accumulated experiences.

Adequate service level; desired service level

Rich's expectations that an ADT home security system will protect his family and prevent future burglaries is influenced by his ______.

Derived service expectations

Customer ____ are beliefs about service delivery that function as standards against which performance is judged.

Expectations

Customer ______ are the standards for performance against which service experiences are compared

Expectations

Tom Grantham, a U.S. citizen decided to outsource the preparation of his personal income taxes to a company in India...using a foreign service provider may require customers to reset their:

Expectations

The extent to which customers recognize and are willing to accept variation in service performance is called the

Extent of indifference

Service providers like insurance companies that emphasize acquiring new customers rather than retaining current customer are broadening provider _____ of the gaps model of service quality.

Gap 1

The Ritz-Carlton Hotel trains each employee to note the likes and dislikes of regular customers and record this information into a computerized guest history profile that provides information on the preferences of 240,000 repeat Ritz-Carlton customers. Through the use of this customer database, the Ritz-Carlton is able to provide more personalized service to its guests. If, for example, a guest prefers a feather pillow or always orders a glass of sherry before retiring, this information can be entered in the database and these needs can be anticipated and met. By providing more personalized service, the Ritz-Carlton is narrowing provider _____ of the gaps model of service quality.

Gap 1

Provider Gap 1

Gap 1: The Listening Gap -research, customer focus, recovery

FedEx developed a 12-item statistical Service Quality Indicator to measure customer satisfaction and service quality. The index is comprised of customer-defined performance standards such as number of missed pick-ups, number of lost packages and number of late deliveries. Each of the performance standards is weighted based on the relative importance of each standard to customers. By developing a Service Quality Indicator that incorporates customer-defined performance standards, FedEx is closing provider _____ of the gaps model of service quality.

Gap 2

Provider Gap 2

Gap 2: Design and Standards Gap -physical evidence, servicescape

The New York Palace, an upscale hotel in NYC, synchronizes demand and hotel capacity by offering an attractively priced weekend package during the fall when demand for its rooms slows down. In addition to having a luxury-filled weekend at the New York Palace for $219 per night, guests enjoy very select privileges from Saks Fifth Avenue. Its weekend package provides a personal shopping coordinator, complimentary gift wrap and package delivery to the hotel, individual beauty consultation and a 10 percent Saks discount. The New York Palace's weekend package closes provider _____ of the gaps model of service quality.

Gap 3

The owner of a small but growing business, Terry Franklin was becoming overwhelmed with requests from his outside customer service representatives for decisions about solutions to customer problems. Noting the mountain of his own work that was piling up, he instituted a policy change and informed the representatives. "Keep the customers happy," he said. "If it's a problem that takes less than $100 to fix, there's no need to call me. Use your judgment and go ahead and fix it." Terry Franklin is using empowerment to narrow provider ______ of the gaps model of service quality.

Gap 3

Provider Gap 3

Gap 3: Performance Gap -people, HR, capacity and demand

Extron Electronics sells coaxial cables for connecting computers to all types of peripheral devices like printers, modems and fax machines. For the benefit of its customers, Extron provides a laminated card with pictures of all the possible cable connections that a customer could need. With this card, a customer can order from one to any of connectors with as many feet of cable as is needed. Orders can be placed by calling a toll-free number, sending an email, or using the company's website. Company reps are also available 24-hours a day in case the customer is not sure which drawing on the card matches his or her needs. By integrating its services marketing communications, Extron is closing provider _______ of the gaps model of service quality.

Gap 4

Provider Gap 4

Gap 4: Communication Gap -price is a way to communicate

The first time Barry brought his car to have the oil changed, he was very satisfied...Barry's experience at Auto Lube illustrates the ______ of services

Heterogenity

Denise said all she expected from the day care at the gym she belonged to was to get her children back at the end of an hour and learn the police had not been called because of something they did. She uses this particular gym because the day care will let her unruly children stay even though it provides only the nominal supervision. Denise has _____ expectations about the day care.

Minimum tolerable

In addition to the elements of the traditional marketing mix, the expanded mix for services includes:

People, physical evidence, and process

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

Perishability

When Alicia and Jordan dined at Formia Ristorante, a contemporary Italian restaurant in New Jersey, they both enjoyed Formia's coy, smart and embracing atmosphere. Formia creates this atmosphere with a single large dining room that measures 20 by 60 feet and contains 14 roomy tables. Ceiling fans slowly swirl as candlelight dances across the tables that are attentively cared for by servers. Vertical pink and white florid patterns emerge from old wainscoting. Finally, Formia's two-page menu offers guests a range of pasta, chicken, veal and seafood entrees, in addition to nightly specials that are handwritten and presented on large index cards. Alicia and Jordan experienced the _______ element of Formia Ristorante's services marketing mix.

Physical evidence

Mike experienced the ______ element of the dental office's services marketing mix.

Process

To close the customer gap, the gaps model of service quality suggests that the ____ gaps need to be closed.

Provider

The maitenance contract offered by Sears on its Kenmore refrigerators, dishwashers, and microwaves is an example of a

Service

In the simplest terms, __________ are deeds, processes, and performances

Services

The Offshore Sailing School in Jersey City, NJ...student participation in the Offshore Sailing School's classroom sessions and hands-on sailing instructions illustrates the ____ characteristic of services

Simultaneous production and consumption

Which of the following would result in the broadening of provider gap 1?

The marketing research done by the motel chain includes insufficient research about what its target market wants

Which of the following products is LEAST high in experience qualities?

Wedding dress

which of the following statements describes a marketing implication that results from intangibility of services?

all of the above

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

difference between customer expectations and perceptions

which of the following is an example of a tangible component provided by a hotel?

guest rooms

Extron Electronics...which of the following trends has influenced the development of services marketing concepts and strategies as illustrated by Extron's focus on customer service?

manufacturing firms are placing increased emphasis on providing services

Two roommates both registered for an intro to business class...the heterogeneity of instruction demonstates:

the fact services cannot be readily communicated or displayed

Which of the following is an intangible component of a car repair shop?

the training the mechanic has received