Hoffman Services Marketing Ch. 1-10

Two-sided Blueprint

a blueprint that takes into account both employee and customer perceptions of how the sequence of events actually occurs

Inseparability

a distinguishing characteristic of services that reflects the INTERCONNECTIONS among the SERVICE PROVIDER, the CUSTOMER involved in receiving the service, and other customers sharing the service experience

Heterogeneity:

a distinguishing characteristic of services that reflects the variation in consistency from one service transaction to the next

cross price elasticity:

a measure of the responsiveness of demand for a service relative to a change in price for another service

Consumer management:

a strategy service personnel can implement that MINIMIZE THE IMPACT of other customers on each individual customer's service experience

Which of the following would be considered a subordinate service role? a. Server in a restaurant b. Insurance claims adjuster c. Airline pilot d. Investment advisor e. Physician

a. Server in a restaurant

Hoffman and Bateson state that effective reward systems (for service employees) must pass seven tests. One of these is the __________ test. Basically, this test is meant to guarantee that the motivating effects of a reward will last for a long time. Plaques and trophies, for example, last longer than a company-sponsored night on the town. Thus, a plaque or a trophy will pass this test, but a paid night on the town will not. a. durability b. visibility c. flexibility d. reversibility e. timeliness

a. durability

when selecting a target market the service firm must first.... then....

analyze the needs of consumers & categorize consumers with similar needs into market segments

Primary mission

avoid mistakes

As is the case within all service organizations, employees at Wegmans develop a perception of the company's service practices and procedures, and they develop a perception of the kind of employee behaviors that Wegmans rewards. Hoffman and Bateson refer to this "shared perception" as the company's __________. a. employer brand b. climate for service c. received view d. technical core e. bill of employee rights

b. climate for service

When we say that contact service employees are boundary spanners, we are referring to the boundary between __________ and __________. a. the firm's policies and procedures; the legal environment of the industry b. the firm's external environment, especially its customers; the firm's internal organization and structure c. what is ethical; what is not d. the firm's managers; the firm's nonmanagerial employees, including front-line service personnel e. the firm's marketing department; the firm's human resource department

b. the firm's external environment, especially its customers; the firm's internal organization and structure

Materialismo snobbery:

belief that without manufacturing there will be less for people to service and so more people available to do less work

In Plant-within-a-plant concept, organizations seek to ______.

buffer

Process time:

calculated by DIVIDING THE ACTIVITY TIME BY THE NUMBER OF LOCATIONS at which the activity is performed

Communication strategy

communicates the firm's positioning strategy to its target markets, including consumers, employees, stockholders, and suppliers for the purpose of achieving organizational objectives

Self Service is a viable

competitive alternative

Which of the following is NOT a main issue with inseparability?Other customers Customers Complimentary goods Contact personnel

complimentary goods

This interaction between customer and service provider defines a _________ ___________ and represents the ____________ __________ for both ________ _____ ________ in regard to customer satisfaction and retention.

critical incident, greatest opportunity, gains and losses

According to Hoffman and Bateson, "__________ is the reverse of 'doing things by the book.' __________ carries this logic even further by first __________ individuals and then coupling this with a reward system that recognizes people for their performance." a. Improvising; Extemporizing; training b. Anarchy; Pandemonium; liberating c. Amalgamating; Synthesizing; selecting d. Empowerment; Enfranchisement; empowering e. Creativity; Empowerment; energizing

d. Empowerment; Enfranchisement; empowering

Which of the following would be considered a professional service role? a. Stable hand at a horse farm b. Mail clerk at a movie studio c. Receptionist at a tax accountant's office d. Veterinarian at a twelve-person equine facility e. Custodian at an elementary school

d. Veterinarian at a twelve-person equine facility

As Hoffman and Bateson state, "Customers should not ask for services that the system cannot provide." But let's face it; they do. And when they do, they put the service provider in an awkward situation. Customers may make unreasonable requests because they themselves are not reasonable people; when this is the case, it is the fault of the customer. On the other hand, they may be otherwise-reasonable people whose expectations have been inflated by __________. In the latter case, marketers are at fault. a. exaggerated reviews by other customers b. substance abuse c. their own desire to get more for their money d. advertising e. their own lack of technological literacy

d. advertising

When Howard Schultz was CEO of Starbucks, he often said that he saw his company as being "in the people business, serving coffee." As an extension of this positioning strategy, Starbucks' front-line service employees are taught that their job is, first and foremost, to "help the customer have a better day." By articulating the job of customer contact personnel in this fashion, Starbucks is __________. a. tightly constraining the employee role b. disenfranchising the front-line service personnel c. establishing its technological infrastructure d. defining the company's service benefit concept e. implementing the industrialized model

d. defining the company's service benefit concept

Hoffman and Bateson state that effective reward systems (for service employees) must pass seven tests. One of these is the __________ test. Basically, this test is meant to guarantee that if rewards are given to the wrong people for the wrong reason, those rewards will not be lifelong. Bonuses, for example, are single occurrences whereas a salary increase tends to be forever. Thus, a bonus will pass this test, but a salary increase will not. a. durability b. visibility c. flexibility d. reversibility e. timeliness

d. reversibility

Services:

deeds, efforts, or performances (intangible)

Operations

deliver the service as specified

Cognitive dissonance:

doubt in the consumer's mind regarding the correctness of the purchase decision

Which of the following is NOT a potential solution to the challenges caused by intangibility? a. Use physical evidence c. Create a strong organizational image b. Utilize personal sources of information d. Use cost-based accounting versus activity-based accounting e. All of the above are potential solution

e. All of the above are potential solution

Which of the following would be considered a subordinate service role? a. Sommelier (wine director) at Ruth's Chris Steak House b. Staff lawyer at the Office of the Fayette County District Attorney c. Customer success manager at Adobe Systems d. Air traffic control specialist in the O'Hare tower e. Nurse's aide at St, Joseph Hospital

e. Nurse's aide at St, Joseph Hospital

Bank teller Cassie Massey has come to the conclusion that the customer who is currently at her window—Floyd Boyd—may very well be the least intelligent person she has ever met. For the past 25 minutes, Cassie has been trying to explain to Mr. Boyd exactly why he was charged an overdraft fee. Cassie has rephrased her explanation numerous times and has even employed visual aids in the form of pencil-and-paper calculations. Mr. Boyd appears to be just as perplexed as he was when he approached Cassie's window, and he is beginning to get frustrated. At this point, Cassie is way beyond frustrated. She wants to shout, "I can't make it any simpler. It's your job to keep a running total and update it every time you write a check or withdraw cash at an ATM. If you don't do that, you end up trying to spend money you don't have. Then, it becomes our job to charge you a fee for being careless and stupid!" However, Cassie continues to explain in her "patient" voice, knowing she could damage the bank's reputation and lose her job if she were to say what she really thinks. Cassie is experiencing __________. a. inter-client conflict b. organization/client conflict c. an unleashing of service d. DILLIGAD syndrome e. person/role conflict

e. person/role conflict

Hoffman and Bateson state that effective reward systems (for service employees) must pass seven tests. One of these is the __________ test. Basically, this test is meant to guarantee that the relationship between the cause and the effect is obvious. For example, a bonus in the form of cash or a check passes the test if the employee receives it immediately after the supervisor sees the desired behavior. A bonus processed through the payroll system, which the employee might not receive until the end of the month (or even in the next pay period) does not pass this test. a. durability b. visibility c. flexibility d. reversibility e. timeliness

e. timeliness

Southwest Airlines appeals to economically minded consumers who are looking for the best price by flying shorter, more direct routes to less congested, less expensive airports. This is an example of:

efficiency pricing.

Contact personnel

employees other than the primary service provider who briefly interact with the customer

The science of using physical evidence to create service environments—and its influence on the perceptions and behaviors of individuals—is called environmental psychology. buy-o-genics. consumer neuropathy. servometrics. servitecture.

environmental psychology

Stakeholders

everyone who is involved in the company, employees, consumers, investors, ect.

Tangible dominant:

goods that possess physical properties that can be felt, tasted, and seen prior to the consumer's purchase decision

The __________ portion of the servicescape model (Fig. 8.3) is "a perceived overview or image of the firm based on the physical evidence," and is "a composite of mental images of the service firm's physical facilities." holistic environment ambient conditions technical core space/function objectively-cognitive

holistic environment

Pursuing sustainable business practices allows companies to find areas of....

improvement and competitive advantages in four areas.

in its broadest level communication objectives seek to do what?

inform, persuade, and remind customers about the firms service offerings

In Stage 4: World-Class Service Delivery, the company's name....

is similar with SERVICE EXCELLENCE

When using a new version of a software package, consumers are required to learn new steps. This represents which type of switching costs?

learning costs

Service consumers tend to be....

less certain about reservation prices

price bundling

marketing two or more products in a single package for a special price

sales promotions are good for...

new products, to bring them into the market.

Goods:

objects, devices, or things (tangible)

Long term contracts:

offer prospective customers incentives for dealing with same provider over a number of years

Servicescape

physical environment in which consumer services are performed (Atmosphere,ambiance)

fail points

points in the system at which the POTENTIAL MALFUNCTION IS HIGH and at which a FAILURE WOULD BE VISIBLE to the customer and REGARDED AS SIGNIFICANT

Service customers are more likely to use......

price as a cue to quality

mixed bundling

price-bundling technique that allows consumers to either buy Service A and Service B together or purchase one service separately

Relationship pricing:

pricing strategies that encourage customers to ENHANCE AND EXPAND THEIR DEALINGS with the service provider

An automatic teller machine (ATM) is an example of:

production-lining

Market segments should be considered based on....

profit and growth potential

The mental energy spent by customers to acquire a service is referred to as:

psychic costs

Many E-services have become more commonly known as

self service Technologies Ex: Auto rental chains, banks, insurance companies

Blueprinting consists of:

service cost per meal, process time, activity time, stations, maximum output per hour

type 2 service staff

service staff who deal with numerous, often repeat customers in restricted interactions of somewhat longer duration

Intangible dominant

services that lack the physical properties that can be sensed by consumers prior to the purchase decision

Physical evidence serves all of the following purposes except: socializing customers and employees in terms of their roles, behaviors, and relationships. showcasing the good, the bad, and the ugly of the technical core. packaging the service. differentiating the firm from its competitors. facilitating the flow of the service delivery process.

showcasing the good, the bad, and the ugly of the technical core.

communication objectives

specific goals related to the retail communication mix's effect on the customer's decision-making process

The three components of the SOR model are: satisfaction, obfuscation, and remorse. stimulus, organism, and response. service, observation, and review. sales, optimization, and revenue. shopping, obtaining, and remitting.

stimulus, organism, and response.

If the cross-price elasticity is such that increasing the price of one service results in increased demand for another service, the two services are:

substitutes

Focus segments =

target markets

The place within an organization where its primary operations are conducted is called the:

technical core

Sustainability:

the ability to meet current needs without hindering the ability to meet the needs of future generations in terms of economic, environmental, and social challenges

complements:

the effect of cross-price elasticity in which an increase in the price of Product A decreases the demand for Product B

Substitutes:

the effect of cross-price elasticity in which the increase in the price of Product A increases the demand for Product B

Perishability

the inability of services to be stored, warehoused, or inventoried (think of food perishability, same as services)

Stage 2: Journeyman, this stage is characterized by...

the introduction of technologically based systems for the purpose of cost savings

The strategy of breaking up large, unfocused plants into smaller units buffered from one another so that each can be focused separately is referred to as:

the plant-within-a-plant concept.

adaptive pricing

the practice of offering discounts without conceding margins on a permanent basis

Product-line pricing:

the practice of pricing multiple versions of the same product or grouping similar products together Ex: beginner, intermediate, and expert level pricing to reflect the different levels of buyer and seller expertise

Service providers

the primary providers of a core service -Waiter or waitress -Dentist -Physician -College instructor

The objectives of a firm's communication mix often relate directly to

the service offering's stage within the product life cycle

Consumer decision process:

the three-step process consumers use to make purchase decisions; includes the prepurchase stage, the consumption stage, and the postpurchase evaluation stage

inelastic demand

the type of market demand when a change in price of a service is > greater than > a change in quantity demanded

top-down budgeting

top management prepares the budget with little or no input from middle and supervisory managers

A buyer's perception of value is considered a trade-off between:

total customer value and total customer cost.

Communication Mix:

trying to communicate what the company has to offer, the firm's positioning strategy

Forward buying:

when retailers purchase enough product on deal to carry over until the product is being sold on deal again (buy cheap, sell cheap)

Flowcharts are used to

•Identify directions in which processes flow •Identify the time it takes to move from one process to the next •Identify the costs involved with each process step •Identify the amount of inventory buildup at each step •Identify bottlenecks in the system

Solutions to challenges caused by heterogenity

•Pursue a customization strategy •Pursue a standardization strategy

there are challenges to perishability, what're the solutions to these challenges for demand?

•Utilize creative pricing strategies to smooth demand •Implement a reservation system •Shift demand to complimentary services

there are challenges to perishability, what're the solutions to these challenges for supply?

•Utilize part-time employees •Share capacity •Prepare in advance for expansion •Utilize third parties •Increase customer participation

With regard to developing a servicescape with the target market in mind, with which of the following would the authors of your text likely agree? "Personalized customers" tend to seek convenience above all else. "Cosmopolitan customers" tend to support smaller or local service providers as opposed to larger or national. "Ethical customers" want to be pampered and attended to. "Economic customers" will avoid service establishments that appear too fancy or elaborate. "Apathetic customers" make purchase decisions based on price.

"Economic customers" will avoid service establishments that appear too fancy or elaborate.

Shannon Bohannon and her friend are visiting Chipotle Mexican Grill for the first time. While the "assembly line" service employees are making her burrito in accordance with her instructions, Shannon says to her friend, "This place is a lot like Qdoba." Hoffman and Bateson would refer to Shannon's cognitive response as an "inference of symbolic meaning." a "belief." "categorization." an "avoidance behavior." a "physiological response."

"categorization."

J.D. Thompson's perfect world model:

"perfect efficiency is possible only if inputs, outputs, and quality happen at a constant rate and remain known and certain"

Hotels and other accommodations

-Account for two-thirds of all leisure and hospitality employment

What are two reasons why consumers are especially vulnerable to business that provide services versus goods?

-Few search options; technical/specialized services; time lapses between performance/evaluation; no guarantees/warranties; expected variability; outcome-based rewards; consumer participation

What are the largest nonprofit sectors (revenue)?

-Health services ($385B) -Education ($175B)

creating flexible capacity includes:

-Hiring part time employees -Cross-train employees -Sharing capacity with other firms

What is unique about the Information subsector?

-IT companies are frequently rated as great places to work -The sector is growing incredibly fast (due to large global potential)

Why are wages often relatively lower in the Leisure and Hospitality subsector? Other similar subsector/s?

-Lower educational requirements and younger workers -Wholesale and Retail Trade

Professional and Business Sector consist of several subsectors including:

-Management, scientific, and technical consulting services (+78%) -Computer systems design and related services (+38%) -Advertising and public relations services -Employment services -Scientific research and development services

Targeting nonusers, the choice of communications channel is reduced to...

-Media advertising -Selling performed by a sales force rather than a service provider -Public relationships -Sponsorships

Arts, Entertainment, & Recreation Subsector

-More than 40 percent of the workforce in this sector has no formal education beyond high school -Wages are inconsistent

Food Service & Drinking Places

-One in five (20%) employees is between the ages of 16 and 19 -Two out of five (40%) employees work part time -High turnover Wages are not generally high

Why do we talk about business ethics?

-Public interest in business ethics is at an all-time high due to numerous scandals in the last 20 years -People want to understand the ethics of a company

The new " global services era " is characterized by:

-Service Sector Domination -The development of technologies -Market differentiation in service industries

Prepurchase stage includes:

-Stimulus -problem awareness -information search -evaluation of alternatives

What are the major reasons to study services?

-That's where the economic growth is (and will be) happening -It's where the jobs will be!

What is the goal of services marketing?

-To delight the customer (or provide a remarkable experience)

Marketing Challenges Created by Heterogeneity

-Variations in employees -Variations in same employee •Mood changes •Wellness/tiredness •"Bad day"/"good day"

Financial Activities

-banking -insurance -securities, commodities, and other investments

Large Investment Banks

1. Goldman Sachs ($9.01 EPS) 2. JP Morgan Chase ($6.31 EPS) 3. Barclays

Operations Solutions for Service Firms

1. Isolating the technical core 2. Production-lining the whole system 3. Creating flexible capacity 4. Increasing customer participation 5. Moving the time of demand

Top consulting firms:

1. Mckinsey & Company 2. Bain & Company (best ratings) 3. The Boston Consulting group

5 types of perceived risk

1. Monetary/ Financial Risk 2. Functional/ Performance Risk 3. Physical Risk 4. Social Risk 5. Psychological Risk

Three government subsectors:

1. Not- for- profit (advocacy, grant making) 2. Federal Government 3. State and local government

The Four areas of improvement and competitive advantages in sustainability are:

1.Eco-efficiency 2.Environmental cost leadership 3.Beyond compliance leadership 4.Eco-branding strategies

Services in the USA make up approximately....

80% of GDP today (this hasn't always been)

Servuction Model:

A framework for understanding the consumer's experience

Success in service marketing requires ....

A much GREATER UNDERSTANDING of the CONSTRAINTS and OPPORTUNITIES posed by the firm's operations

Flat-rate pricing:

A pricing strategy in which the customer pays a fixed price and the provider assumes the risk of price increases and cost overruns

Benefit-driven pricing:

A pricing strategy that charges customers for services actually used as opposed to overall "membership" fees

To a consumer, time spent waiting can seem longer or shorter than the actual number of hours or minutes spent. That is, perceived wait time is often unequal to actual wait time. To help service providers and managers manage customer perception of wait times, the authors of your textbook outline the eight principles of waiting, which they have borrowed from Maister's (1984) book The Psychology of Waiting in Lines. Which of the following is one of the eight principles of waiting? A. The more valuable the service, the longer the customer will be willing to wait. B. In-process waits feel longer than preprocess waits. C. Explained waits feel longer than unexplained waits. D. Group waits feel longer than solo waits. E. Preprocess waits feel longer than post-process waits.

A. The more valuable the service, the longer the customer will be willing to wait.

"The management of a diverse group of customers with different needs within the same service setting" is Hoffman and Bateson's definition of __________. A. compatibility management B. consumer onboarding C. buffering the technical core D. consumer socialization E. user self-selection

A. compatibility management

If a service environment can be described as a "high contact system," that means __________. A. the quality of outcomes depends heavily on the quality of a consumer's performance B. in order to perform the service, the provider has to physically touch the customer C. consumers frequently bump into each other or brush against each other D. all of the above are true E. both A and B are true

A. the quality of outcomes depends heavily on the quality of a consumer's performance

In Stage 4: World Class Service Delivery, the operations become....

ADAPTIVE AND INNOVATIVE, competition cannot easily duplicate at this stage

E-Service:

An electronic service available via the Net that completes tasks, solves problems, or conducts transactions.

Focused Factory Concept

An operation that concentrates on performing ONE PARTICULAR TASK in ONE PARTICULAR LOCATION ex: Dry cleaning operation

one-sided blueprint

An unbalanced blueprint based on management's perception of how the sequence of events should occur

Over 40% of the workforce in this subsector has no formal education beyond high school.

Arts, entertainment, and recreation

Regarding "consumer performance," which of the following service production processes would be considered a "high contact system"? A. Xbox 360 console repair at CPR of Lexington B. A guided horseback trail ride at the Red River Gorge C. Carpet cleaning by Stanley Steemer D. All of the above. E. None of the above.

B. A guided horseback trail ride at the Red River Gorge

Hoffman and Bateson cite a classic article in Journal of Marketing (Rathmell, 1966) when they state, "In essence, a service is __________ in which consumers are often physically present and active participants." A. a ritual B. a performance C. a three-ring circus D. an exchange E. a community event

B. a performance

Plant-within-a-plant concept: the strategy of _________ __ ________, unfocused plants into smaller units buffered from one another so that each can be __________ ____________ .

BREAKING UP LARGE, FOCUSED SEPERATELY

The pricing strategy that charges customers for services actually used as opposed to overall "membership" fees is:

Benefit-driven pricing

Name a product that likely balances both concepts best? (Tangible Dominant, Intangible Dominant)

Big Mac (The Burger and Fast food service)

Regarding "consumer performance," which of the following service production processes would be considered a "high contact system"? A. Automobile maintenance and repair at Don Jacobs BMW/Honda/VW B. Lawn fertilization and pest control by TruGreen C. A double sleeve tattoo at Bleed Blue Tattoo & Piercing D. All of the above. E. None of the above.

C. A double sleeve tattoo at Bleed Blue Tattoo & Piercing

Skye Frye has an appointment to have two cavities filled by her dentist, Dr. Randall Crandall. According to the authors of your textbook, which of the following will seem "longest" to Skye? A. After Skye checks in with the receptionist, she waits 15 minutes in the reception area before the dental assistant ushers her to the examining room. (Magazines are provided; Skye also has her iPhone with her.) B. After Skye receives two lidocaine injections, she waits 15 minutes in the examining chair Dr. Crandall to return to the room and begin working on her teeth. (Skye took a magazine to the room with her; she also has her iPhone.) C. When Dr. Crandall completes the work and dismisses Skye from the room, Brooke Cooke—she's the office employee who will complete the insurance paperwork and print Skye's receipt—is at lunch. Skye waits 15 minutes in the reception area while Brooke finishes her lunch break and returns to the office. (Skye still has the magazine and her iPhone.) D. The authors do not provide any information that would help determine which wait will seem longest to Skye. E. None of the above. Since Skye was "occupied" during each wait, they will seem equal in duration to her.

C. When Dr. Crandall completes the work and dismisses Skye from the room, Brooke Cooke—she's the office employee who will complete the insurance paperwork and print Skye's receipt—is at lunch. Skye waits 15 minutes in the reception area while Brooke finishes her lunch break and returns to the office. (Skye still has the magazine and her iPhone.)

Consumption stage includes:

Choice (buying, using, disposing of the product)

Factors contributing to consumer vulnerability in purchasing services are:

Consumer participation in production

When you hit the local happy hour at Applebee's just before class, you are taking advantage of which strategy designed to combat a challenge created by perishability?

Creative pricing

Attributes that cannot be evaluated confidently, even immediately after receipt of the good or service, are called what?

Credence attributes

Jamba Juice begins to offer personalized service for every customer, providing an energetic "nutrition consultant" to help with the numerous breakfast options. They then raise their prices to $10 per smoothie to keep profits stable. This would be an example of which Chapter 3 concept?

Customization

To a consumer, time spent waiting can seem longer or shorter than the actual number of hours or minutes spent. That is, perceived wait time is often unequal to actual wait time. To help service providers and managers manage customer perception of wait times, the authors of your textbook outline the eight principles of waiting, which they have borrowed from Maister's (1984) book The Psychology of Waiting in Lines. A. Solo waits feel longer than group waits. B. Unfair waits feel longer than equitable waits. C. Uncertain waits (i.e., when you don't know how long you'll have to wait) feel longer than known waits (i.e., when you know how long you'll be waiting). D. All of the above. E. Both A and C.

D. All of the above.

With regard to "consumer performance" as part of the service production process, with which of the following would Hoffman and Bateson likely agree A. Expert consumers often are less costly to serve. B. In self-service situations, consumers tend to credit their own performance when service is satisfying, and blame technology when things go wrong. C. Expert performers tend to have scripts that are more rich and complicated than those of novice performers. D. All of the above. E. A and B only.

D. All of the above.

To a consumer, time spent waiting can seem longer or shorter than the actual number of hours or minutes spent. That is, perceived wait time is often unequal to actual wait time. To help service providers and managers manage customer perception of wait times, the authors of your textbook outline the eight principles of waiting, which they have borrowed from Maister's (1984) book The Psychology of Waiting in Lines. One of these rules (Principle 4) states: __________ feel longer than __________, but __________ feel longest of all. A. Solo waits; group waits; waits with in-laws B. Unexplained waits; explained waits; poorly explained C. Standing waits; seated waits; walking or pacing waits D. Preprocess waits; in-process waits; post-process waits E. Waits with country background music; waits with reggae background music; waits with bluegrass background music

D. Preprocess waits; in-process waits; post-process waits

According to Hoffman and Bateson, "The service performance will be efficient to the extent that both the service performer and the consumer follow the script," and "aligning consumers' scripts with the service operation . . . has the double benefit of improving efficiency and improving consumer satisfaction." Then, for managers of the service delivery process, the authors identify four key tasks that will help align consumers' scripts with the service operation. One of these key tasks is: "Change scripts carefully." By this, the authors mean that __________. A. a radically new script will usually reduce consumer performance and slow down service B. consumers value predictability and control. All other things being equal, they will gravitate toward a service experience where they know the script C. too big a change in scripts may force expert consumers backward on the learning curve. They may see this as a service failure and be dissatisfied D. all of the above are true E. both A and B are true

D. all of the above are true

To shorten the time that it takes a novice consumer performer to become an expert consumer performer, a service firm can __________. A. plant clues within the service experience B. give clues about analogous (i.e., similar) services with which consumers are familiar C. arrange the physical layout so that novice consumer performers can watch expert consumer performers D. do all of the above E. do A and B, but not C

D. do all of the above

When isolating the technical core, disassociating the technical core from the servuction system is called what?

DECOUPLING

Rationing:

DIRECT ALLOCATIONS OF INPUTS AND OUTPUTS

Which of the following conditions likely drove the birth of ATMs, salad bars, and self-serve fountain drinks? c. Demand exceeded the supply of service available a. Demand fell below optimal supply levels b. Demand and supply matched perfectly e. None of the above d. Supply exceeded optimal demand levels

Demand exceeded the supply of service available

In what major area is the services sector likely to grow over the next 20-30 years?

E-Services (internet)

To a consumer, time spent waiting can seem longer or shorter than the actual number of hours or minutes spent. That is, perceived wait time is often unequal to actual wait time. To help service providers and managers manage customer perception of wait times, the authors of your textbook outline the eight principles of waiting, which they have borrowed from Maister's (1984) book The Psychology of Waiting in Lines. Which of the following is one of the eight principles of waiting? A. Occupied waits (i.e., when you have something to keep you busy) feel longer than unoccupied waits (i.e., when you have nothing to do). B. Uncertain waits (i.e., when you don't know how long you'll have to wait) feel longer than known waits (i.e., when you know how long you'll be waiting). C. Solo waits feel longer than group waits. D. All of the above. E. Both B and C.

E. Both B and C.

"The service performance will be efficient to the extent that both the service performer and the consumer follow the script." Hoffman and Bateson go on to say that "aligning consumers' scripts with the service operation . . . has the double benefit of improving efficiency and improving consumer satisfaction." Then, for managers of the service delivery process, the authors identify four key tasks that will help align consumers' scripts with the service operation. One of these key tasks is: "Increase your share of consumers who are expert performers." According to the authors, how should a service marketer go about this? A. Create experts by teaching consumers the script. B. Find ways to make novice consumers feel incompetent and self-conscious. Hopefully, those consumers will not return. C. Segment the market to attract experts. D. By doing all of the above. E. By doing both A and C.

E. By doing both A and C.

In terms of jobs, the largest supersector is ____________________.

Education and Health Services

divergent scripts

Employee/consumer scripts that "MISMATCH" and point to areas in which consumer expectations are not being met

convergent scripts

Employee/consumer scripts that are MUTUALLY AGREEABLE and enhance the probability of customer satisfaction

During Stage 2: Journeyman, employees and management do what?

Employees are give procedure to follow Management emphasis shifts from controlling workers to managing processes.

Which of the following is one of the "three broad categories" of physical evidence that Hoffman and Bateson describe? Interstate highway access Facility exterior Regional demographics Headquarters location Proximity to competitors

Facility exterior

Researchers clearly understand how consumers make decisions.

False

The perceived-control perspective is a model in which consumers evaluate services by comparing expectations with perceptions.

False

The reason services have few search attributes is primarily attributed to inseparability.

False

True/False - Company's "identity" related to business strategy can easily be changed with the right strategies and execution.

False

True/False - Heterogeneity is considered the mother of all unique differences since there is no way to control variances in people.

False

True/False - Some simple strategies can be used to ensure that services are inventoried accurately even though they are generally intangible.

False

TRUE/FALSE: Companies that act unethically usually don't suffer financial consequences.

False; in the short term they might escape, but over time they are likely to lose dollars (or possibly their business)

Consulting is the _________ of the professional and business services and____________.

Fastest growing, highest paid

Name two of the largest investment banks in the US?

Goldman Sachs & JP Morgan Chase

Hard technologies:

HARDWARE that facilitates the production of a standardized product.

What are the largest two service supersectors (jobs)?

Health Services & Education

Which of the following represents the service characteristics that reflects the variation in consistency from one service transaction to the next?

Heterogeneity

Bottlenecks:

Identify what points in the system a customer has to wait the longest time

With regard to "high-contact" versus "low-contact" service firms, with which of the following would Hoffman and Bateson likely agree? In low-contact service operations, facility layouts should be designed to maximize employee expectations and production requirements. Typically, the customer is less involved in the production of high-contact services than in the production of low-contact services. Designing facilities for low-contact services is usually more expensive than designing facilities for high-contact services. Firms that offer low-contact services should choose locations that are convenient for customers, even if those locations are not convenient for employees or suppliers. In low-contact operations, each stage of the service process has a direct and immediate effect on the customer.

In low-contact service operations, facility layouts should be designed to maximize employee expectations and production requirements.

Demand for services tend to be more.....

Inelastic

When pricing a service, the service provider should consider all of the following except _____ considerations. demand intuitive cost customer product

Intuitive

At Stage 3: Distinctive Competencies Achieved, what has the firm accomplished?

It has MASTERED THE CORE SERVICE and understands the complexity of changing current operations

In the Professional and Business supersector, what is unique about the consulting profession?

It offers the highest-paid positions

Health Care and Social Assistance Subsectors are the...

Largest employment industry in the private sector with 14 million jobs

Anticipating:

MITIGATING the worst effects of supply and demand fluctuations BY PLANNING for them

Smoothing:

Managing the environment to REDUCE FLUCTUATIONS IN SUPPLY AND/OR DEMAND

Total Customer costs:

Monetary cost, Time cost, Energy cost, Psychic cost

Why is the service sector the largest sector in most developed countries?

Nations tend to grow in the services sector as they diminish in the agriculture and industry sectors; this naturally happens as countries become more developed

With regard to the "continuum of facility use" (Figure 8.4), which of the following would Hoffman and Bateson not classify as an "interpersonal service"? Netflix Regis Hair Salons Curves Health Club and Fitness Center Sandals Resorts Southwest Airlines

Netflix

What are the three government subsectors?

Not-for-profit, Federal, and State & Local

Communications Mix

Personal Selling, Advertising, Publicity, Sales Promotion, Sponsorships

Postpurchase stage:

Postpurchase evaluation

Satisfaction-based pricing

Pricing strategies that are designed to REDUCE THE AMOUNT OF PERCEIVED RISK associated with a purchase

efficiency pricing

Pricing strategy that appeal to economically minded consumers by DELIVERING THE BEST AND MOST COST EFFECTIVE SERVICE FOR THE PRICE

J.D. Thompson's Technical core is the place with an organization where its __________ _____________ are conducted. Ex: Kitchens in restaurants

Primary Operations

Which of the following activities occur during the prepurchase stage of the consumer decision process?

Problem awareness

4 different approaches to effective positioning:

Product differentiation, Personnel, Image, and Service (SIPP)

total customer value

Product value, Service value, Personnel value, Image value

script norms

Proposed scripts developed by grouping together events commonly mentioned by both employees and customers, and then ordering those events in their sequence of occurrence

Soft technologies:

RULES, REGULATIONS, AND PROCEDURES that facilitate the production of a standardized product

What does the script perspective argue?

Rules, mostly determined by social and cultural variables, exist to facilitate interactions in daily repetitive events, including a variety of service experiences

when developing communication objectives, each objective should be stated in what?

SMART terms

In the production-line approach, the application of hard and soft technologies in a service operation is to produce what?

STANDARDIZED SERVICE PRODUCT

Educational Services Subsector is the...

Second Largest employment industry (public and Private) with 13.3 million jobs

The maintenance contract offered by Sears on its Kenmore refrigerators, dishwashers and microwaves is an example of a(n) _______.

Service

type 3 service staff

Service staff required to have more highly developed communication skills because of more extended and complex interactions with customers

Type 1 service staff:

Service staff who are required to deal with customers quickly and effectively in "once only" situations where large numbers of customers are present

From Stage 2 to Stage 3, how has the view of technology changed?

Shifts from "cost savings" to "enhancing the effectiveness of service to customers"

Alternatives to buffering:

Smoothing, Anticipating, & Rationing

S.M.A.R.T. terms

Specific Measurable Achievable Relevant Time-bound

Service Delivery System

Stage 1: Available for service Stage 2: Journeyman Stage 3: Distinctive Competencies Achieved Stage 4: World Class Service Delivery

A solution to challenges created by inseparability....

Strategic selection and training of public contact personnel

Which of the following is a multi-attribute choice model used by so-called "lazy decision makers" in the evaluation of alternatives phase of the pre-purchase stage of the consumer decision process?

Systematic approach

While the difference between goods and services is not always clear, goods tend to be ___________, while services tend to be _____________.

Tangible Dominant, Intangible Dominant

Costs that are minimized....

Technological investment, investment in training, and personnel costs Ex: A person who sells concert tickets

Invisible organization and systems

That part of a firm that reflects the rules, regulations, and processes upon which the organization is based

With regard to a service firm's physical evidence, which of the following would Hoffman and Bateson most likely not categorize as "other tangibles"? The company's business cards The company's reputation in the community The invoices that the company sends to its clients The company's billboard advertisement beside a major highway Employees' uniforms

The company's reputation in the community

Blueprinting

The flowcharting of a service operation

Positioning Strategy

The key themes or concepts an organization features for communicating the distinctiveness of its product or service to the target segment.

reservation prices:

The maximum price the customer is willing to pay for a product or service.

Ethics:

The principles of moral conduct governing an individual or group.

1.What might be surprising about the top 10 list of airlines?

There are no U.S. Airlines on the list

The Goal of customer service:

To delight your customers and give them an experience they never forget!

Consumers are aware of fewer alternatives because less pre-purchase information is available

True

Perceived risk is proposed to consist of two dimensions: consequences and uncertainty.

True

True/False - A good definition for inseparability is that the service provider cannot be disassociated from the service.

True