HFT 3240 Exam 2
According to "Design Thinking and Innovation at Apple," in which market did Apple have virtually zero penetration?
Business
Which of the following statements is true?
C and D only: Service guarantees and service recovery are complimentary strategies which reinforce each other Guarantees, recovery and empowerment are highly dependent on the integral service system
According to the article, "Four Seasons Goes to Paris: '53 Properties, 24 Countries, 1 Philosophy,'" what was one of the Four Seasons' " greatest challenges and triumphs" according to executive vice president of human resources, John Young?
Opening its first French property by renovating and operating the Hotel George V, a historic Parisian landmark
It is said that service marketing and management holds a relationship-building role between
Operations, marketing and human function
A couple having a romantic dinner in a restaurant but being interrupted by a loud laugh from the table nearby refers to a failure originated by
Other customers
Which of the elements were added to marketing mix due to the unique nature and growing importance of service?
People
After service failure, a truly customer-centric company should
Perceive the failure as an opportunity to learn and improve
Price of the service offering
Pricing is more influenced by cost than by the customers perceptions of overall value
A significant paradigm shift in thinking by service firms emphasizes that
Profit comes from customer satisfation
By applying the Pareto principle to identify the inbuilt flaws in the service system, which of the following statements is true?
80% of quality problems come from a few key causes (20%)
What is the direct antecedent for customer loyalty?
A and C only: Service loyalty Company's commitment to consistent superior quality
Which statement about service product is true?
A and C only: Service product can be defined as a process One of the challenges of service product is the high reliance on customers personal experience
Service guarantee leads to
A and D only: A more efficient way of gaining customer feedback An opportunity to take immediate correction action
The service process is defined as
A and D only: The series of acts that ensure a positive experience of each customer A service delivery system which some scholars label as an essence of service
According to "Design Thinking and Innovation at Apple," although Apple's success is attributed to their clever strategic moves and an innate sense of market timing, their success also came from:
A deep commitment to understanding how people use computing devices and a desire to develop "insanely good products"
Which statement is true about relationship marketing?
A firm needs to go beyond its core relationships to establish a more holistic view of relationships in which all stakeholders are involved
What is a service strategy?
A plan of action which defines the practical meaning of the word service
Service strategy is defined as
A unique recipe for delivering the service vision
In the SPR case study, why were the McKenzies' privileged customer cards declined?
Because they booked through third party
Service vision from a business perspective is
A, c and d only: A depiction of how the ultimate success looks like Often includes a list of long-term goals An inspiring statement
According to the article, "Four Seasons Goes to Paris: '53 Properties, 24 Countries, 1 Philosophy,'" which of the following is NOT one of the seven Four Seasons "Service Cultural Standards?"
Accomodate
Service design refers to
All of the above: An operationalized version of the service vision The supporting systems and processes The factors which affect customers experience and satisfaction Human interactions which underlie the service encounter
Customers of a successful service firm can become their
All of the above: Brand ambassadors Best advocates Lifetime consumers Loyal customers
The main reason why service firms fail customers is
All of the above: Breaking the basic service promise Lack of reliability Offering a poor quality of core service
The success of service marketing strategies depends on
All of the above: Building and maintaining relationship with the customers A careful management of all critical moments of truth Effective recruitment, training and motivation of service front-line staff Ensuring every element in moments of truth cascade is positive
During-consumption marketing stage offers some unique opportunities, such as
All of the above: Building relationships with the customers Utilizing moments-of-truth to provide superior service Creating positive customer experience through the customer interactions
It is said that service process as well as design process are not static due to
All of the above: Customers involvement and participation Customer being a cocreator of the experience Interactive environment during service provision
While managing a service encounter, there are a few crucial stressors managers have to consider, including
All of the above: Emotional labor, Jay customers, Employee stress, Customer variability
Internal marketing refers to the idea that
All of the above: Employees are recognized as the most valued asset of an organization The aim is to create a trustful relationship and engagement with employees Employees should be service-minded and have a clear understanding of companies objectives and philosophies Attraction and retention of highly-motivated service-oriented employees is pivotal to service organizations
Successful service companies recognize that the marketing function needs to be
All of the above: Focused on people Focused on relationship development Focused on value enhancement Built in into organization as an integrated concepts
A service blueprint
All of the above: Identifies processes and activities of production and delivery Is a detailed planning and diagnostic document Helps the manager get a birds eye view of the service operation and delivery Provides specific answers to what and how the services are offered
The dual role of service guarantees derives from
All of the above: Internal marketing External marketing Operating competency
What is the uniqueness of service blueprinting?
All of the above: It allows company to stay customer-centric A dynamic and practical technique used for service improvement and innovation It offers the identification of the cause of recurrent service problems It provides specific snapshot of the production, consumption and quality of the overall service
The service system is comprised of
All of the above: Organizational Structure, Information flows, Management systems, Technology
Which statement about the people factor in marketing of service is true?
All of the above: People is often a critical factor in service provision For some services people can be a service itself People can serve as cues to customers perceptions of service quality Other customers are included in people factor of service marketing mix
Which statement about the service process is true?
All of the above: Services are made up of a number of sequential processes Due to high degree of customers participation or involvement, the ease of the service process is crucial All processes should be designed in a customer-centric way Customization, personalization and cocreation concepts are all of a primary importance to service quality
Online co-innovation community platform contribute to
All of the above: Sustaining long-term relationships with the customers Opportunities for engaging and nurturing customers Active engagement of customers as co-owners and cocreators of value Enabling both the firm and customers to reach a larger, global audience
An effective service guarantee system benefits
All of the above: The customer The employee The whole service-delivery system (the firm as a whole)
The major shift in management focus of leading service firms emphasized that
All of the above: The quality of customer experience as a whole The importance of service personnel The implementation of cross-departmental strategies The integrated approach to marketing, operations and human resources
Customers choose not to complain because
All of the above: They feel sorry for the staff It was too late when they realized It is easier to switch to another provider than fight for truth They do not believe in any value or outcome from complaining They do not feel like it worth it their time or effort
By putting service recovery and service guarantee strategies into place managers try
All of the above: To avoid a decline in customer confidence To eliminate negative word-of-mouth To add competitive advantage To preserve the firms reputaiton
The argumentation of a guarantee of service is based on the fact that service cannot be
All of the above: Tried and tested in advance Exchanged after being purchased Reworked
Within the scope of relationship marketing, the successful service firm will have a number of friends including
All of the abovwe
Who are the part-time marketers in the context of service marketing?
All service staff members
Which of the following statements best explains the line of visibility in blueprinting?
An elusive division of functions which are visible to customers and which are not
In the SPR case study, which of the following insects cause the McKenzie's the most trouble during their trip?
Ants
Which of the following recovery strategies will be the most efficient?
Apology, correction and managerial follow-up
Referring to SERVQUAL, which of the process dimensions are most likely to exceed expectations?
Assurance, responsiveness, and empathy
Which features of the place are important for service?
B and C only: Physical location has to be accessible and customer-friendly In cases where service gets to customer, the speed and proximity of service are important
Which statement about post-consumption marketing is true?
B and C only: The purpose of this stage is to ensure a positive WOM Post-consumption marketing aims to engage customers as brand ambassadors
Some of the characteristics essential for a good service guarantee are
B and D only: It should be unconditional and meaningful It should be easy to understand and communicate to customers and employees
Which of the statements about service promotion is true?
B and D only: The production process being a selling point itself makes service promotions challenging yet distinctive The organizations favorable image has a positive impact on internal service quality which has ability of self-reinforcing
The service recovery paradox refers to the situation when
Customer satisfaction exceeds pre-failure satisfaction
Which statement is most true?
None of the above
Which statement is true
None of the above
The most effective stage of marketing a service is
During consumption
What is important to take into consideration when designing a service?
Ensuring that employee management system enables and motivates employees to perform service excellence
According to the article, "Four Seasons Goes to Paris: '53 Properties, 24 Countries, 1 Philosophy,'" the Four Seasons' revenue per room in 2001 was 5% higher than that of its primary US competitors and 10% higher than that of its European Competitors.
False
In the SPR case study, although the McKenzie's experienced a number of service failures, the hotel was able to correct these issues through effective complaint resolution.
False
When speaking with Sally she tells the Area Manager, "When you decide what you want, you must create a vision of perfection centered on the business."
False
According to Corinthios, the most important quality in a good applicant is:
Having the right attitude
Four Seasons diverted from their normal practice by:
Hiring a non-Four Seasons chef
Which statement is true?
It is important that service staff understand the complexity of their roles and this training is recommended
Which statement is true about 'pre-consumption' marketing?
It relies heavily on word of mouth
Empowering employees to break the rules means that
Management recognizes the need for service staff to respond quickly and think outside the box in order to guarantee superior service
What does a blueprint not show?
Managerial Hierarchy
What does the line of interaction depict in a service blueprint?
Moments-of-truth
What is the biggest challenge for service failure recognition
Most customers do not complain
According to "Design Thinking and Innovation at Apple," problems were viewed as:
Moving targets
According to "Design Thinking and Innovation at Apple," what two business endeavors did Steve Jobs both found and cofound after leaving Apple in 1985
NeXt and Pixar
According to the article, "Four Seasons Goes to Paris: '53 Properties, 24 Countries, 1 Philosophy,'" what did "consistently exceptional service" mean to the Four Seasons?
Providing high-quality, truly personalized service to enable guests to maximize the value of their time, however the guest defined doing so
The "R" in SERVICE in Four Seasons' service culture standards stands for
Recognition
According to "Design Thinking and Innovation at Apple," which of the following is NOT a principle of the "Apple Way?"
Safe and calculated business decisions
The service marketing paradigm suggests that in order to stay in business firms need to
Satisfy the customer which will ultimately mean making a return on investment (ROI)
Relationship marketing is largely about
Securing and retaining trust and loyalty of people inside and outside the organization
Which statement is true?
Service vision defines the firms strategy, process and system
Which statement about physical evidence is true?
Services cannot be completely intangible
According to the case study on Four Seasons, why did the "direct line" communication and problem solving meetings occur for 3 consecutive months?
So that the issues that were raised in the meetings could be addressed and the results then delivered to the group
In the SPR case study, what nickname did Mr. McKenzie give this hotel
The We Are So Sorry Hotel
The four types of service failures are based on the possible sources of service failures including
The customers, things outside the firms control, the service provider and the service itself
It is said that service failure is unavoidable due to
The human element in both production and consumption
The service encounter triad aims to illustrate
The importance of harmonious relationships between each of the three parties
In the SPR case study, the McKenzie's first indication that they may have problem at the hotel occurred when:
The note on the room safe stated the hotel bore no responsibility for the items placed in the safe
Service vision can be defined by
The results produced by customers
A couple who ordered two medium-rare steaks in the restaurant but one of them was found to be blue (uncooked) refers to a failure originated by
The technical offer
According to the case study on Four Seasons, when opening the F.S. George V, how did Four Seasons go about spreading the company culture and portraying the United States in a positive way to employees?
They recruited staff with prior United States and/or Four Seasons experience to serve as ambassadors
A couple who made a reservation in a restaurant which was canceled at the last moment due to severe storm in the area refers to a failure originated by
Things outside the control of the service provider
What is the primary purpose of a service guarantee offer
To communicate firms commitment to its service promise
Service system design aims to
To make it customer friendly and add value to the customer
What is a fish bone diagram used for?
To represent the relationship between cause and effect
According to "Design Thinking and Innovation at Apple," Apple's competitors often think that their popularity us the result of their ability to tap into a zeitgeist.
True
According to "Design Thinking and Innovation at Apple," distinct from organizations whose idea of "detail" is often viewed as being synonymous with "features, " Apple products are often noteworthy for what they do not contain
True
According to the SPR case study, it is a mistake too simply assume that higher prices lead to better service.
True
According to the article, "Four Seasons Goes to Paris: '53 Properties, 24 Countries, 1 Philosophy,'" Four Seasons managers emphasized that standards set minimum expectations
True
According to the case study on Four Seasons, when taking over a hotel, Four Seasons approaches transforming the culture of the organization by hiring and promoting employees with what the company views as the right culture and attitudes
True
In the SPR case study, Mr. McKenzie noticed a distinct "us versus them" mentality among the SPR employees
True
In the SPR case study, many of the problems occurred because the hotel promised one level of service and then underdelivered on that promise.
True
The "V" in SERVICE in Four Seasons' service culture standards stands for
Voice
It is said that there are a number of steps in designing an effective service system which include: a. Establishing procedures to be followed in case of service failure. b. Identifying failure-prone areas can be enabled by a service blueprint technique c. Obtaining a feedback from the customers and continuous review of service delivery d. Defining and incorporating service standards and explicitly communicating them to customers e. Empowering enabled through training and other HR practices. List them in the right order
b, d, e, a, c
Jan Carlzon says Our customers give us 50,000 opportunities to create a relationship with them. What service concept does this relate to?
moments of truth