MKT430 exam 2

According to Frei and Morriss, the goal of an excellent service organization is to deliver outstanding results with __________ employees.

average

Frei and Morriss state that "the number one obstacle to great service—number one by a long shot—is __________."

b- the emotional unwillingness to embrace weakness

Regarding loyalty programs, which of the following statements is not consistent with information presented by Frei and Morriss?

b. The frequent-flyer program of a typical airline (e.g., Delta, American, United) is an excellent example of a "true loyalty program."

On an internal attribute map, __________ is represented on the X axis; __________ are arranged on the Y axis in descending order based on __________.

b. how well you're doing (from the perspective of the customer); distinct elements of the service offering; what customers think is most important

According to Frei and Morriss, __________ segments tell us how to identify and communicate with different kinds of customers; __________ segments tell us how to serve customers differently.

c. marketing; operating

Frei and Morriss state that "the primary obstacle to service excellence is not the ambition to be great, but the __________."

c. stomach to be bad

During the growth stage of a service offering's product life cycle, one of the service firm's communication objectives is to

create a positive attitude toward the service offering, relative to competitive offerings.

During the introduction stage of a service offering's product life cycle, one of the service firm's communication objectives is to

create brand awareness.

According to Frei and Morriss, " . . . __________ doesn't just tell you what to do; it shows you how to think."

culture

Regarding price, which of the following statements is consistent with information presented by the authors of your textbook?a. It is one of the least researched areas of marketing. b. In general, marketers of services lack expertise in the area of pricing. c. It is the most easily controlled element of the marketing mix. d. All of the above.

d. All of the above.

Mustafa Hoffa doesn't particularly like paying a lawn service to mow his front and back lawns, trim shrubbery, and remove weeds. However, as a hardworking young attorney who would like to be a partner in his firm someday, Mustafa works 70 or so hours per week. With leisure time so scarce, Mustafa really doesn't like the idea of having to do yard work when he could be at his son's little league game or his daughter's dance recital. So, he bites the bullet and pays a local landscape maintenance company—PrecisionScape Unlimited—to take care of his yard, in spite of his distaste for the monthly fee. On a personal level Mustafa isn't particularly fond of the workers who are sent by the company to maintain his yard, but he appreciates the fact that they show up each week on the scheduled day, and he rarely has to call the company's office to complain that a particular task has been neglected or completed in an unacceptable manner. For Mustafa, PrecisionScape's _________ exceeds its __________. a. personnel value; image cost b. service value; monetary cost c. total value; total cost d. All of the above. e. Both B and C.

e. Both B and C.

In the book Uncommon Service: How to Win by Putting Customers at the Core of Your Business, authors Frei and Morriss introduce The Four Service Truths: 1) You can't be good at everything, 2) _______________, 3) It's not your employees' fault, and 4) You must manage your customers.

e. Someone has to pay for it

Frei and Morriss use the label "__________" to describe a meaningful advantage that your company has over competitors.

e. wedge

Authors Hoffman and Bateson use Southwest Airlines' Bags Fly Free™ promotion as an example of

efficiency pricing.

Demand is said to be __________ if a change in price results in a significant change in demand. This effect is generally of __________ magnitude for services than for tangible goods.

elastic; lesser

During the maturity and decline stages of a service offering's product life cycle, one of the service firm's communication objectives is to

encourage repeat purchases

Frei and Morriss state that the concepts in their book Uncommon Service are "rooted in __________ principles." However, they go on to say that "__________ is where we find some of the largest obstacles to excellence."

engineering; psychology

During the growth stage of a service offering's product life cycle, one of the service firm's communication objectives is to

enhance the firm's image.

The science of using physical evidence to create service environments—and its influence on the perceptions and behaviors of individuals—is called

environmental psychology.

The second step of developing a service firm's communication strategy is to

establish communication objectives

The fifth step of developing a service firm's communication strategy is to

establish message and media strategies.

During the maturity and decline stages of a service offering's product life cycle, one of the service firm's communication objectives is to

express gratitude to the existing customer base.

In their book Uncommon Service, Frei and Morriss frequently refer to Commerce Bank. When discussing the employee selection process, the authors state that "Commerce Bank literally needed __________ in an interview to know if someone would be a good fit."

fifteen minutes

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

The primary reason for using sales promotions is to

increase short-term sales

During the introduction stage of a service offering's product life cycle, one of the service firm's communication objectives is to

introduce the service offering and create brand awareness.

An effective employee management system integrates and aligns four elements: selection, training, __________, and performance management.

job design

Frei and Morriss state that "the real trick to [employee] selection is to __________—and then to ________."

know exactly which traits you're looking for; design a process that reliably uncovers them

The sixth step of developing a service firm's communication strategy is to

monitor, evaluate, and control the communication strategy.

Frei and Morriss state: "Leadership, at its core, is about making __________—and making sure that __________."

other people better as a result of your presence; the impact lasts in your absence

A service firm's __________ is a carefully thought-out plan to shape consumers' perceptions of the firm, relative to its competitors.

positioning strategy

During the introduction stage of a service offering's product life cycle, one of the service firm's communication objectives is to

prepare the way for personal selling efforts to be conducted later.

The authors of your textbook describe __________ as "the practice of marketing two or more services in a single package at a single price."

price bundling

At Visions Day Spa, a client can purchase a "Day at the Spa" for $165. Included are a haircut, manicure, pedicure, and 60-minute massage. With its "Day at the Spa" service offering, Visions is engaging in

price bundling.

Raleigh Pauley rarely carries cash, but today she wants to have lunch at an out-of-the-way home-style cafe that doesn't accept credit cards, debit cards, or checks. She plans to get cash from a drive-up ATM on her way to the restaurant. f Raleigh uses the ATM at the bank where her account is located, she will not be charged any service fee for the withdrawal. Raleigh's bank is only a few blocks out of the way, but to get there she'll have to drive on a very busy street, and she expects traffic to be so heavy that she may have to sit through one or two traffic lights. Being stuck in traffic is something that Raleigh does not handle well; it usually takes only about 45 seconds of waiting for the car ahead to move or waiting for a light to change before her pulse begins to quicken and her general level of irritation begins to rise. Instead of driving to her bank, Raleigh chooses to withdraw cash from a competing bank that is located on a quiet side street, knowing that she will be charged a $3.99 service fee for doing so. In this scenario, the __________ of doing business with her own bank is too high, so Raleigh chooses to pay the higher __________ by doing business with one of its competitors.

psychic cost; monetary cost

Economic theory suggests that consumers have a price in mind (let's call it $X) that reflects the value of the combined benefits of a product or service. As long as the total cost of purchasing the product or service is lower than $X, they will be willing to buy. The authors' name for "$X" is __________.

reservation price

The first step of developing a service firm's communication strategy is to

select a target market.

The third step of developing a service firm's communication strategy is to

set the communication budget

Physical evidence serves all of the following purposes except:

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

The three components of the SOR model are

stimulus, organism, and response.

Dale Hale has owned a small-engine repair shop for four years. Dale's wife, Gail, maintains the shop's financial records and pays the bills. Two full-time mechanics work for Dale. In his role as owner and general manager, Dale makes all decisions regarding the shop's marketing communications. Periodically, Dale will ask Gail how much "unspoken for" money is in the company checking account, and—if the amount is more than a couple hundred dollars—he'll decide how much of it he can spend on advertising and other marketing communications while still maintaining a cushion for minor emergencies. Hoffman and Bateson would say that Dale's method of budgeting for marketing communications is an example of

the all-you-can-afford approach

When Frei and Morriss spell out the service-excellence equation (Service Excellence = Design x Culture), by "design" they mean design of __________.

the blueprint of the business model

As a communication tool, advertising is

the fastest way to create overall awareness.

Rainey Haney owns a service that does sewing and alterations. She employs two full-time seamstresses and a cashier. When the shop has excess business or one of the employees is out, Rainey jumps in and helps with whatever work needs to be done. Rainey believes that her shop is as busy—and as lucrative—as it is for two reasons: they do excellent work and they advertise heavily. Each year, Rainey sets aside an amount of money that is equal to five percent of the previous year's revenues. She then spends roughly half of that money to advertise on local radio stations. Another one-fourth of the money pays for advertising in the printed programs of the local opera, symphony, and ballet. The remaining fourth is used for print advertising in a monthly special-interest magazine that is published locally. The authors of your textbook would say that Rainey's method of budgeting for marketing communications is an example of

the percentage-of-sales technique

Frei and Morris state that "psychology is where we find some of the largest obstacles to [service] excellence." As the authors go on to clarify what they mean by this statement, they explain that __________

those who design and manage service processes deny reality and resist necessary trade-offs.

Service providers who are successful in the long run

try to establish a price that represents value to the customer.

The fourth step of developing a service firm's communication strategy is to

work out a positioning strategy

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?

"Economic customers" make purchase decisions based on price.

With regard to developing a servicescape with the target market in mind, with which of the following would Hoffman and Bateson likely agree?

"Economic customers" tend to be attracted to service facilities that are clean and modern.

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?

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

Frei and Morriss present four alternative sources of funds to cover the cost of providing great service. One of these is "Charge customers extra for it—in a palatable way." What does the word palatable mean, exactly?

"Tasteful," meaning acceptable or satisfactory

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

"categorization."

Allstate's "Mayhem Man" and the Travelers Insurance mutt (his name is "Chopper") both represent service advertisers' attempts to

"tangibilize the intangible."

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?

Apathetic customers" seek convenience.

With regard to price sensitivity, which of the following statements is consistent with information presented by Hoffman and Bateson?

As switching costs for a particular service increase, consumers' price sensitivity toward that service will tend to decrease.

With regard to pricing strategy in the service sector, which of the following statements is not consistent with information presented by Hoffman and Bateson?

Compared to purchasers of tangible goods, service customers are less likely to use price to determine quality.

Regarding publicity, which of the following is consistent with what the authors say? A. Publicity is free. B. Publicity is usually reported by a third party. C. Publicity is the most credible source of information. D. All of the above. E. Both A and B.

D. All of the above.

Regarding the unique challenges of designing marketing communications for service firms, with which of the following would Hoffman and Bateson likely agree? A. Poorly-targeted marketing communications can attract customers who are not part of the target market, which can result in significant negative consequences. B. New customers can be expected to base their expectations on the firm's marketing communications. Therefore, the service providers need to be capable of delivering what the customer believes has been promised. C. Marketing communications are not only a means of informing, persuading, and reminding customers; they can also motivate and educate employees. D. All of the above. E. None of the above.

D. All of the above.

The authors of your textbook (i.e., Hoffman and Bateson) give several specific guidelines for developing service communications, including the following. -Develop a Word-of-Mouth Communications Network -Tangibilize the Intangible -Feature the Working Relationship between Customer and Provider -Determine and Focus on Relevant Service Quality -----Dimensions -Differentiate the Service Product via the Service -------Delivery Process What other specific advice is included in the authors' guidelines for developing service communications? A. Make the service more easily understood B. Reduce customer fears about variation in performance C. Promise what is possible D. All of the above. E. Both A and B.

D. All of the above.

Regarding personal selling, which of the following is consistent with what the authors say? A. Personal selling is the same thing as word-of-mouth (WOM) advertising. B. Personal selling is the only communication tool that enables two-way communication between the service provider and the customer. C. Personal selling allows service providers to tailor their message to each customer. D. All of the above. E. Both B and C.

E. Both B and C.

As a communication tool, sponsorships A. provide a way of reaching consumers who skip through commercials. B. allow the service firm to target narrow, but highly desirable target audiences. C. are the best device for stimulating short-term sales. D. do all of the above. E. do both A and B.

E. do both A and B.

Which of the following is one of the "three broad categories" of physical evidence that Hoffman and Bateson describe?

Facility exterior

Frei and Morriss explain four ways that service companies can recover the cost of providing great service. Which of these do they say is the simplest, from a design perspective?

Funding source 1: Get customers to pay you extra for it

Frei and Morriss explain four ways that service companies can recover the cost of providing great service. Which of these do they say is the most reliable?

Funding source 2 (reduce costs in ways that also improve service) and funding source 3 (improve service in ways that also reduce costs)

Frei and Morriss explain four ways that service companies can recover the cost of providing great service. Which of these do they say gets the most attention?

Funding source 4: Get customers to enjoy doing some of the work for you

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.

With which of the following statements would Frei and Morriss likely disagree?

In the typical company, complexity of systems and jobs will naturally decrease over time.

Which of the following statements is not consistent with information presented by Hoffman and Bateson?

Just like the price of a tangible good, the price of a service should be determined by the cost of production.

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

Which of the following companies do Frei and Morriss present as an example of funding great service by reducing the company's cost of providing it?

Progressive

The authors of your text present an easy-to-remember acronym to help you learn the characteristics of well-conceived communication objectives: SMART. Which of the following characteristics of an objective is part of this acronym?

The A stands for "achievable"

The authors of your text present an easy-to-remember acronym to help you learn the characteristics of well-conceived communication objectives: SMART. Which of the following characteristics of an objective is part of this acronym?

The M stands for "measurable."

The authors of your text present an easy-to-remember acronym to help you learn the characteristics of well-conceived communication objectives: SMART. Which of the following characteristics of an objective is part of this acronym?

The R stands for "relevant."

The authors of your text present an easy-to-remember acronym to help you learn the characteristics of well-conceived communication objectives: SMART. Which of the following characteristics of an objective is part of this acronym?

The S stands for "specific."

The authors of your text present an easy-to-remember acronym to help you learn the characteristics of well-conceived communication objectives: SMART. Which of the following characteristics of an objective is part of this acronym?

The T stands for "time bound."

With regard to the "communications mix," with which of the following would Hoffman and Bateson likely agree?

The communications mix consists of five categories of tools: personal selling, advertising, publicity, sales promotion, and sponsorships.

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 reputation in the community