HTM 2464 Midterm 1 Ch. 1-4 & 16 Smartbooks

In the context of the challenges faced by service marketers, which of the following are questions that service marketers find difficult to answer? (Check all that apply.) How should prices be set when customers may perceive price as an indication of quality? How should an organization ensure that customers are uninvolved in the delivery and cocreation of services? How can an organization motivate and choose service employees who will be a critical part of the product itself? How can an organization ensure that decisions taken in one functional area do not impact other functional areas?

How should prices be set when customers may perceive price as an indication of quality? How can an organization motivate and choose service employees who will be a critical part of the product itself?

_____ are best described as processes, performances, and deeds provided, cocreated, or coproduced by one person or entity for and/or with another person or entity. Operants Goals Services Jobs

Services

Kevin visits a gourmet food store. He believes that the store will have more choices and higher quality products than those available at a small grocery store. According to the gaps model of service quality, Kevin's beliefs can be best described as _____. Multiple choice question. customer expectations customer needs customer desires customer perceptions

customer expectations

The _____ is the difference between consumer perceptions and expectations. Multiple choice question. expectations gap listening gap customer gap communication gap

customer gap

In the context of the customer gap, _____ are subjective evaluations of actual service experiences. Multiple choice question. perception gaps productivity gaps customer expectations customer perceptions

customer perceptions

The advantage of the simultaneity of services is that service providers have opportunities to _____. inventory all their services accommodate fluctuating demand even when capacity is fixed customize services for individual customers create services that are identical

customize services for individual customers

Technology that gives employees immediate access to product and service information and customer details enables the employees to _____. convince customers that regulated industries are preferable to deregulated ones always meet customer expectations customize services to fit the needs of customers use skills and experiences that work well in the marketing of products

customize services to fit the needs of customers

Technology that gives employees immediate access to product and service information and customer details enables the employees to _____. use skills and experiences that work well in the marketing of products customize services to fit the needs of customers always meet customer expectations convince customers that regulated industries are preferable to deregulated ones

customize services to fit the needs of customers

Technology has influenced the service performance gap by _____. Multiple choice question. helping service providers to obtain information about their customers through interactive marketing enabling service providers to reach out to customers through different channels enabling customers to become involved in adding value to their service experiences helping service providers to synchronize demand and capacity

enabling customers to become involved in adding value to their service experiences

True or false: In the context of the tangibility spectrum, there are very few pure services or pure goods. TrueFalse

true

True or false: Many companies give lip service to customer focus and service quality, but they fail to provide the compensation, support, and training that employees need to actually deliver quality service. .TrueFalse

true

True or false: Providers of professional services have begun to use service marketing to better understand and segment their customers since their professional standards have been modified to permit advertising. TrueFalse

true

True or false: Steve Vargo and Bob Lusch have argued in favor of a logic for marketing that suggests that all physical goods and products are valued for the services they provide. .TrueFalse

true

True or false: The heterogeneity associated with services is largely the result of human interaction and human behavior. .TrueFalse

.True reason-Employees delivering a service frequently are seen as the service by customers.

Lack of customer-driven standards

A lack of formal processes for setting the goals of service quality

Which of the following could be effective service recovery strategies? (Check all that apply.) Multiple select question. A policy discouraging employees from reacting to customer complaints in real time A procedure dedicated to complaint handling A program teaching employees to manage time efficiently A compensation for unfulfilled promises

A procedure dedicated to complaint handling A compensation for unfulfilled promises

In the context of the expanded marketing mix for services, which of the following is true of the people element? All employees involved in the delivery of a service provide cues to customers about the nature of a service. Customers do not have any influence on their own service outcomes or on the service outcomes of other customers. Customers fail to improve or detract from other customers' service experiences. Contact persons play insignificant roles in service encounters.

All employees involved in the delivery of a service provide cues to customers about the nature of a service.

People

All individuals who play a part in service delivery and influence the perceptions of buyers

Unsatisfactory service design

An unsystematic process of new service development

Search qualities

Characteristics that a customer can identify before purchasing a product Style, fit, color, price, hardness, smell, and feel

Credence qualities

Characteristics that a customer may find impossible to assess even after purchase and consumption of a product Computer software updates, brake relinings on a car, and appendix operations

Experience qualities

Characteristics that can be identified only after a product is purchased or when it is being consumed Comfort, taste, and wearability

Identify the challenges faced by service marketers. (Check all that apply.) Designing and effectively testing new services that cannot be cocreated by customers Communicating a relevant and consistent image to customers Accommodating fluctuating demand when capacity is not fixed Defining and improving service quality even though products are intangible

Communicating a relevant and consistent image to customers Defining and improving service quality even though products are intangible

Identify a concern of customers about technology and service. Cognitive dissonance may arise. Technology may increase the prices of services. Confidentiality and privacy may be compromised. Industries may become government regulated.

Confidentiality and privacy may be compromised.

Identify the challenges faced by product companies that transition into services. (Check all that apply.) Lesser profit margins Culture change Channel and sales issues Inability to be a differentiator in a crowded market

Culture change Channel and sales issues

____ are points of reference or standards that consumers bring into the service experience. Multiple choice question. Perception gaps Standards gaps Customer expectations Customer perceptions

Customer expectations

Which of the following help employees deliver service effectively and efficiently? (Check all that apply.) Customer relationship management software Sales support software Applications that allow customers to learn, do research, and collaborate with each other Applications that allow people to track their personal expenses, create budgets, and receive bill reminders

Customer relationship management software Sales support software

____ refers to the service offered in support of a firm's main products. Derived service Philanthropic service Service as a product Customer service

Customer service

Identify an effect of technology on the service performance gap. Multiple choice question. The expectations of customers can be met only through technology-enabled services provided on the Web. Customers are no longer involved in co-creating the service experience. The number of ways in which customers learn about services has reduced drastically. Customer-contact employees have become more effective and efficient in assisting customers.

Customer-contact employees have become more effective and efficient in assisting customers.

In the context of the reasons for product companies to focus on services, which of the following is true? Customers expect their providers to create and deliver product-service solutions. Product companies need little expertise in the design and delivery of service offerings. Services have lower profit margins than physical goods. Engineering- and technology-driven companies rarely seek to grow through service.

Customers expect their providers to create and deliver product-service solutions.

In the context of the heterogeneity of services, what is service quality dependent on? (Check all that apply.) Customers' ability to articulate their needs The prices of similar services sold by competitors Employees' willingness and ability to satisfy customers' needs The educational qualification of the customers

Customers' ability to articulate their needs Employees' willingness and ability to satisfy customers' needs

In the context of the perishability of services, which of the following are important decision areas? (Check all that apply.) Benchmarking Gain-sharing Demand forecasting Creative planning

Demand forecasting Creative planning

Unsuitable servicescape and physical evidence

Failure to develop tangibles in accordance with customer expectations

True or false: When a service is offered by a third party, the potential heterogeneity of the offering decreases. .TrueFalse

False

Services often cannot be inventoried.

Fluctuations in demand are often difficult to manage.

Identify a critical factor responsible for the listening gap. Multiple choice question. Insufficient customer research orientation Ineffective human resource policy Poor role fulfillment by customers Nonalignment of demand and capacity

Insufficient customer research orientation

Identify a role played by the servicescape in service industries. (Check all that apply.) Multiple choice question. It acts as a visual metaphor of what the organization stands for. It ensures that employees are 100 percent consistent in their service delivery. It inventories services and synchronizes demand and capacity. It identifies the critical inhibitors to closing the service performance gap.

It acts as a visual metaphor of what the organization stands for.

Identify a true statement about customer service. It is a tangible product offering available in the marketplace. It is usually a paid service. It can be provided remotely, without any human interaction. It occurs only over the phone or via the Internet.

It can be provided remotely, without any human interaction.

Identify a true statement about a service. It is never perishable. It includes activities whose output is a physical construction. It is usually consumed at the time it is produced. It is never heterogeneous.

It is usually consumed at the time it is produced.

Services cannot be easily displayed or communicated to customers.

It may be difficult for consumers to assess quality.

In the context of the effects of technology infusion, which of the following is true of the payback in technology investments? It always results in cross-selling opportunities for firms and greater job security for employees. It is certain to yield benefits, though it is uncertain when the benefits will be realized. It may take a long time for an investment to yield productivity or customer satisfaction gains. It usually never yields any benefits and almost always results in losses due to low technology usage by customers.

It may take a long time for an investment to yield productivity or customer satisfaction gains.

Identify an effect of deregulation on service marketing. The expertise of industries like airlines and trucking lies in what they produce, so they do not seek to grow through service. The use of the word advertising is considered to be detrimental to customer loyalty and satisfaction. In airlines, all fares, routes, and commissions are now determined and monitored by the government. Marketing decisions that used to be fully controlled by the government are now within the control of individual firms.

Marketing decisions that used to be fully controlled by the government are now within the control of individual firms.

Services cannot be patented easily.

New service concepts can be easily copied by competitors.

Which of the following would result in the widening of the service design and standards gap in an organization? Multiple choice question. Not depending on franchisees to execute service delivery Not connecting service design to service positioning Using a formal process to set service quality goals Relying on operations strategies such as cross-training employees

Not connecting service design to service positioning

Identify the elements of the expanded marketing mix for services. (Check all that apply.) People Physical evidence Participation Process Privacy

People Physical evidence Process

Identify the elements of the expanded marketing mix for services. (Check all that apply.) Physical evidence Privacy Participation Process People

People Physical evidence Process

In the context of the customer gap and the goal of service marketing, identify the sources of customer expectations. (Check all that apply.) Multiple select question. competitive offerings Pricing Service quality Service delivery Sales promises

Pricing Sales promises competitive offerings

Identify the elements of the marketing mix. (Check all that apply.) Privacy Price Place Participation Promotion Product

Promotion Product Place Price

Insufficient customer research orientation

Research not targeting service quality

Identify the reasons for product companies to focus on services. (Check all that apply.) There is little need for expertise in the design and delivery of service offerings. Service offerings can be customized, so firms can offer more value to customers. There is an absence of price and margin pressures on many physical goods. Services can provide platforms for firm profitability because they have higher profit margins than products.

Service offerings can be customized, so firms can offer more value to customers. Services can provide platforms for firm profitability because they have higher profit margins than products.

In the context of the characteristics of services, what is meant by simultaneity? Services are sold and consumed at the same time. Services are produced and consumed at the same time. No service can justifiably be called a pure service. No two services can be precisely alike.

Services are produced and consumed at the same time.

In the context of the characteristics of services, identify the marketing implications of intangibility. (Check all that apply.) Services can be easily displayed to customers. Decisions about what to include in advertising are simple. Services often cannot be inventoried. Patenting of services is difficult.

Services often cannot be inventoried. Patenting of services is difficult.

In the context of the effects of technology advancements on the gaps in the gaps model, which of the following is true of services before the technological advancements occurred? Multiple choice question. Services could be consumed anytime. Services could be provided remotely. Services were a local function. Service recovery was unnecessary.

Services were a local function.

Identify the factors that make employees critical inhibitors to closing the service performance gap. (Check all that apply.) Multiple select question. Inadequate recognition and compensation A high degree of autonomy Substandard employee selection The use of modern technology

Substandard employee selection Inadequate recognition and compensation

____ are especially helpful in closing the service design and standards gap in organizations. Multiple choice question. Technology changes Functional conflicts Field experiments Self-managed teams

Technology changes

Inadequate focus on relationships

The absence of market segmentation

In the context of the marketing implications resulting from the simultaneity of services, on which of the following is the quality of service and customer satisfaction dependent? (Check all that apply.) Interactions among competitors Interactions between customers and employees Interactions between customers The actions of employees The tangibility of the services offered

The actions of employees Interactions between customers and employees Interactions between customers

Which of the following can influence customers' perceptions of a service? (Check all that apply.) The attitudes and behaviors of the employees of a service provider The personal appearance of employees involved in service delivery The number of individuals who purchase competing services The marketing strategies used for similar services

The attitudes and behaviors of the employees of a service provider The personal appearance of employees involved in service delivery

Physical evidence

The environment in which a service is delivered and where a customer and an organization interact

Insufficient service recovery

The lack of motivation to listen to customer complaints

___ is defined as the elements controlled by an organization that can be used to communicate with or satisfy consumers. The marketing mix The skunkworks Power illusion Person-organization fit

The marketing mix

Process

The mechanisms, flow of activities, and procedures by which a service is cocreated, delivered, and consumed

Which of the following are the provider gaps in service quality that exist in organizations? (Check all that apply.) Multiple select question. The service design and standards gap The service performance gap The comprehension gap The relationship gap

The service performance gap The service design and standards gap

In the context of the service design and standards gap, identify a true statement about customer-driven standards. Multiple choice question. They are operational standards set to correspond to company concerns like productivity. They are based on key customer requirements that are measured by and visible to customers. They enlighten organizations on the reasons why people complain and what people expect when they do complain. They ensure that the need for service recovery is increased.

They are based on key customer requirements that are measured by and visible to customers.

In the context of expanded marketing mix for services, identify the true statements about the new marketing mix elements that are included in the marketing mix as separate elements. (Check all that apply.) They do not influence repurchase decisions. They are within the control of service organizations. They can influence customers' initial buying decisions. They have no impact on customer satisfaction.

They can influence customers' initial buying decisions .They are within the control of service organizations.

Identify an effect of technology infusion on workers in organizations. They are less able to manage their time at work. They prefer to communicate electronically rather than face-to-face. They consistently go through psychological processes brought about by unrelieved work stress. They learn how to influence others based on the perceived power of their roles in their organizations.

They prefer to communicate electronically rather than face-to-face.

What is the overall goal of service marketing? Multiple choice question. To increase the degree of variability that is inherent in a service To close the gap between customer expectations and customer perceptions To create more situations in which service recovery becomes necessary To close the gaps in quality in the offerings of competitors

To close the gap between customer expectations and customer perceptions

Inadequate upward communication

Too many layers between top management and contact personnel

In the context of the tangibility spectrum, it is true that most services _____. are pure services are composed of some tangible components are more tangible than manufactured products are derived from physical goods

are composed of some tangible components

When people with the authority and the responsibility to set priorities do not fully understand customers' service expectations, the result could be that _____. Multiple choice question. resources are never allocated service recovery becomes unnecessary standards and communications gaps are closed chains of bad decisions are implemented

chains of bad decisions are implemented

In the context of the continuum of evaluation for different types of products, the most difficult to evaluate are products high in _____. credence qualities experience qualities search qualities automation qualities

credence qualities

A student avails himself of a coaching service at his school. Although he can see and touch the desk and other items in the room in which he is coached, he cannot physically touch or see the coaching service itself. This is an example of a characteristic of service known as _____. intangibility heterogeneity perishability simultaneity

intangibility

When companies have strong relationships with their existing customers, the listening gap _____. Multiple choice question. is less likely to exist widens disappears is more likely to occur

is less likely to exist

Employees are often reluctant to accept technology into their work lives when they feel that _____. it will increase human contact with customers it will substitute for human labor their workloads will increase customers are uninterested in technology

it will substitute for human labor

Technology has mainly influenced the listening gap by allowing service organizations to _____. Multiple choice question. avoid service recovery at all costs know their customers in ways that were impossible before ensure that customers fulfill all their roles gain complete control over intermediaries in the sales process

know their customers in ways that were impossible before

The listening gap is large when _____. Multiple choice question. customers do not have high expectations of a company techniques involving a variety of traditional research approaches are used to collect information informal methods are used to gather customer information management does not obtain accurate information about customers' expectations

management does not obtain accurate information about customers' expectations

One of the most effective facilitators of technology's influences on the listening gap is _____. Multiple choice question. customer-driven standards that differ from conventional standards an understanding of customers' perceptions marketing research that is conducted through social media the ways in which an organization is structured

marketing research that is conducted through social media

Heterogeneity is a characteristic of services in that _____. new service concepts can be copied by competitors customers always experience products in the same way employees delivering services perform consistently every day no two services can be exactly alike

no two services can be exactly alike

A seat on a bus that is not sold cannot be resold or used later. This is an example of a characteristic of services known as _____. intangibility simultaneity heterogeneity perishability

perishability

According to the gaps model of service quality, the gaps that need to be closed to eliminate the customer gap and that exist within an organization offering a service are called _____. Multiple choice question. perception gaps expectation gaps necessity gaps provider gaps

provider gaps

Organizational strategies used to retain customers and strengthen relationships with them are known as _____, the lack of which can result in the listening gap. Multiple choice question. appreciative inquiry cognitive dissonance relationship marketing affirmative action

relationship marketing

The difference between an organization's understanding of customer expectations and the development of customer-driven standards and service designs is referred to as the _____. Multiple choice question. service design and standards gap customer service performance gap communication gap listening gap

service design and standards gap

The _____ refers to the difference between the development of customer-driven service standards and actual service performance by company employees. Multiple choice question. service performance gap communication gap service design and standards gap listening gap

service performance gap

In the context of the characteristics of services, perishability refers to the fact that _____. services are identical when they are offered by the same provider services cannot be seen, felt, tasted, or touched services are produced first, then sold and consumed services cannot be stored, saved, returned, or resold

services cannot be stored, saved, returned, or resold

In the context of the roles of physical evidence in service design, the _____ is the physical setting in which a service is delivered. Multiple choice question . field extranet servicescape interservice

servicescape

An art workshop service is only provided after it is sold. The service is then produced and consumed at the same time. This is an example of the characteristic of services known as _____. simultaneity intangibility perishability heterogeneity

simultaneity

An art workshop service is only provided after it is sold. The service is then produced and consumed at the same time. This is an example of the characteristic of services known as _____. simultaneity perishability intangibility heterogeneity

simultaneity

A reason for the existence of the service design and standards gap in organizations is that those responsible for setting standards _____. Multiple choice question. sometimes believe that the expectations of customers are unrealistic sometimes believe that services should be designed without oversimplification believe that service offerings are conducive to standardization believe that services are easy to describe and communicate

sometimes believe that the expectations of customers are unrealistic

True or false: In the context of the listening gap, managers are sometimes unaware of the expectations of their customers because they do not always interact with their customers directly. True false question .TrueFalse

t

True or false: Technology has influenced how services are delivered and has impacted each of the gaps in the gaps model. True false question. TrueFalse

t

In the context of customers' dissatisfaction with the services they receive from companies and industries, less-skilled individuals work in frontline service jobs because _____. companies never hire qualified people to perform such jobs customers require less service than they did in the past talented workers get promoted quickly or leave for better opportunities customers prefer little or no human interaction in company service

talented workers get promoted quickly or leave for better opportunities

A primary problem that marketers face in connection with service perishability is _____. the fact that customers can affect each other's service experiences the growth of technology-delivered services the fact that it is impossible to inventory services the interactions between employees and customers

the fact that it is impossible to inventory services

According to Steve Vargo and Bob Lusch, the value derived from physical goods is _____. more than the selling price of the goods the same for all customers who purchase the goods the service rendered by the goods equal to the cost incurred to produce the goods

the service rendered by the goods

Engineering-, science-, and technology-driven companies need skills in designing and delivering services because _____. their services are less distinctive than their products their expertise lies in what they produce their services are not customizable their customers do not demand services

their expertise lies in what they produce

Engineering-, science-, and technology-driven companies need skills in designing and delivering services because _____. their services are not customizable their customers do not demand services their expertise lies in what they produce their services are less distinctive than their products

their expertise lies in what they produce

The elements of the expanded marketing mix for services are included in the marketing mix because _____. they play no role in the success of service organizations they have no influence on customers' initial buying decisions they are particularly important for services they are outside the control of service organizations

they are particularly important for services

In the context of the intangibility of services, a characteristic of services is that _____. they are sold and consumed simultaneously saving, storing, reselling, or returning services is possible they cannot be tasted, touched, seen, or felt like tangible goods all services are precisely alike

they cannot be tasted, touched, seen, or felt like tangible goods

In the context of the continuum of evaluation of the categories of properties of products, products that are high in experience qualities are difficult to evaluate because _____. they must be purchased and consumed before they are assessed customers may be unaware of whether the offerings satisfy given needs after usage they cannot be seen, touched, heard, smelled, or felt by customers few consumers possess medical, mechanical, or technical skills sufficient to conduct evaluations

they must be purchased and consumed before they are assessed

True or false: Providers of professional services have begun to use service marketing to better understand and segment their customers since their professional standards have been modified to permit advertising. .TrueFalse

true Reason: This is true. Professional standards have been modified to allow advertising. Whereas traditionally the providers of professional services avoided even using the word marketing, they now seek better ways to understand and segment their customers, to ensure the delivery of quality services, and to strengthen their positions amid a growing number of competitors.

Knowing the importance of service recovery in an organization is to attempt to understand _____. Multiple choice question. what people expect when they complain why competitors are as popular as they are how much people spend on certain products why people buy certain products

what people expect when they complain