Services Chapter 14

Internet service providers that offer subscribers their choice of hook-up speed and type of spam blockers are: A. Making realistic promises B. Creating tiered-value service offerings C. Communicating with customers D. Managing horizontal communications E. Exceeding customer expectations

b

Service providers sometimes need to tell customers that services have been performed for them. To get credit for their actions, service providers need to reinforce their actions with appropriate communication about their accomplishment of the service. After which of the following services customers most likely require further information? A. Pet grooming B. A fluoride treatment given to a child C. A full-body massage D. Car insurance E. Gas station

b

Offering choices to the customer is a strategy for: A. Avoiding the perception of service inconsistency B. Managing service promises C. Managing customer expectations D. Managing horizontal communications E. Improving customer education

c

Which of the following products has the highest degree of nonsearchability? A. Motor oil B. Fresh doughnuts C. A wedding veil D. Fast food E. Massage therapy

e

An advertisement for the Four Seasons Hotel featured Marlene Wei, a housekeeper at the Four Seasons Hotel in Chicago. Copy for the advertisement noted that "Marlene is the soul of concern. She cannot sleep well at night unless she is certain you will. Her mission is to enhance your personal comfort and, in turn your professional efficiency the following day". By featuring Marlene Wei in an advertisement, the Four Seasons Hotel is _______ to address service intangibility. A. Featuring service employees in advertising B. Using brand icons C. Using documentation D. Using viral marketing E. Leveraging social media

a

By guaranteeing that all participants in its dance classes will be able to do the foxtrot by the end of their first lesson or their money will be refunded, the Fred Astaire Dance Studio is: A. Managing customer expectations B. Engaging in public relations C. Precisely matching service delivery with service promise D. Managing its horizontal communications E. Under-promising and over-delivering

a

Cookies is a retail store where customers host parties for guests to bake and decorate cookies. Children attending a party staged at Cookies were upset when the adult owners of the store did all of the baking while they watched. The store owner's insurance provider had told her that she was not covered if a minor was injured on her premises. The children's disappointment was a result of: A. Inadequate management of customer expectations B. Under-promising and over-delivering C. Improper vertical communication D. Differences in policies and procedures in internal marketing E. Inadequate customer empowerment

a

Customer education is beneficial for closing provider gap 4 when: A. The supply and demand of the service are not synchronized B. Customers are experienced users of the service C. The services are low in credence qualities D. The services are classified as low-involvement E. The services are high priced

a

The Atlanta Kroger Marketing Area (KMA) publishes a monthly newsletter, Hot Off the Press, to provide information to its employees about food safety and preparation, changes in store policy and exceptional service encounters and the employees who were involved in these encounters. This newsletter is an example of: A. Vertical communications B. Vertical integration C. Horizontal integration D. Informal communication E. Interactive marketing

a

The ad guaranteed that you would be skydiving after only a couple of hours of lessons. Megan was excited at the prospect. After enrolling in the class, she learned that rather than skydiving by herself, which is what the ad implied, she would be skydiving in tandem (belted to another experienced sky diver) due to safety requirements. Megan's disappointment was the result of: A. Inadequate management of customer expectations B. Under-promising and over-delivering C. Improper vertical communication D. Differences in policies and procedures across departments E. Inadequate customer empowerment

a

Variations in the supply and demand of services result in: A. Inadequate management of service promises B. Over-promising in advertising and personal selling C. Insufficient word-of-mouth-communication D. Inadequate horizontal communication E. Differences in policies and procedures across distribution units

a

When Selena purchased a new refrigerator from Sears, she was told by the salesperson that the refrigerator would be delivered to her apartment Thursday between the hours of 1:00 p.m. and 3:00 p.m. However, the refrigerator was not delivered until 4:00 p.m. on Friday. The late delivery caused Selena to be dissatisfied with Sears's delivery service. Selena's dissatisfaction with Sears' delivery service resulted from: A. Inadequate management of service promises B. Over-promising and over-delivering C. Inadequate customer education D. Excessive horizontal communication E. Differences in policies and procedures across distribution units

a

Which of the following is NOT a category of strategy that service providers can use to match service promises with service delivery? A. Integrate the service dimensions B. Improve customer education C. Manage service promises D. Manage customer expectations E. Manage internal marketing communications

a

Which of the following is NOT a factor that contributes to service communication challenges? A. Servicescape omniscience B. Management of service promises C. Service intangibility D. Management of customer expectations E. Customer education

a

Which of the following statements about communications and the service marketing triangle is true? A. External marketing communications include advertising, public relations, personal selling and sales promotions B. The sides of the service marketing triangle are customers, providers and the company C. Interactive marketing communications are exemplified by vertical and horizontal communications D. All communications methods that relate to the service marketing triangle are either verbal or print E. Service encounters are an example of internal marketing

a

) Rangu read in the newspaper that he could receive a free month's cable television service if he would agree to use the service for two years. The ad had no other stated restrictions and appeared to apply to the entire county in which Jackson lived. When Rangu went by the cable television office, the salesperson there told Rangu that his area of the community was not eligible for the free month offer. If he wanted cable, he had to pay $400 to have the cable service brought to his house. Rangu experienced a problem with: A. Under-promising and over-delivering B. Marketing communications that were not integrated C. A lack of interactive marketing communications D. Poor vertical communications E. Ignorance of the service marketing mix

b

A chiropractor published a newspaper insert ad that contains almost 1,000 words and described in detail how he has helped patients who have been diagnosed with rheumatoid arthritis and other debilitating diseases to the point where they no longer have to rely on medication and no longer need to have any assistance when walking. The chiropractor is __________ to address service intangibility. A. Presenting vivid information B. Using narrative C. Using viral marketing D. Using brand icons E. Focusing on the tangibles

b

A major cause of _____ is the difference between what a firm promises about a service and what it actually delivers. A. Customer empowerment B. Poorly perceived service C. Service downsizing D. Service autonomy E. Originator ambiguity

b

Because a service is a performance, it often cannot be previewed or inspected in advance. This property of intangibility is known as: A. Incorporeal existence B. Nonsearchability C. Generality D. Abstractness E. Multidimensionality

b

Because he has a busy practice, new patients for dentist Dr. Kirby Brown are informed that, unless there is an emergency, the first available appointment will be in three months. If they accept the appointment, they will be reminded of their appointment by a courtesy call. This first visit will take about an hour. On this visit, their teeth will be cleaned and x-rayed, their gums will be examined and the dentist will talk to them about future dental treatment needs. Dr. Brown is _____________ to manage customer expectations. A. Managing horizontal communications B. Making realistic promises C. Offering a service guarantee D. Offering choices E. Coordinating external communication

b

Cable TV companies that offer subscribers different programming packages are: A. Outsourcing B. Creating tiered-value service offerings C. Communicating with customers D. Managing horizontal communications E. Exceeding customer expectations

b

Creating tiered value service offerings is a strategy for: A. Personal selling B. Managing customer expectations C. Communicating with customers D. Managing horizontal communications E. Exceeding customer expectations

b

The reason Kente chose to stay at a particular a chain of bed & breakfast inns was because its website promises free breakfast ay any inn that did not offer a wake-up service. Yet when Kente stayed at one of the chain's inns, she was allowed to oversleep and missed an important sales call even though she had asked to be awakened at seven when she checked in. The inn manager told her that his hotel did not offer a wake-up service and apologized for her inconvenience. He did not offer her a free breakfast and Kente swore never to stay at the inns again. The chain of inns needs to: A. Underpromise and overdeliver more services B. Coordinate its external communications C. Create more functional internal marketing channels D. Use more centralization of service definition E. Use transformational advertising

b

Clarifying expectations after the sale is a strategy for: A. Conducting market research B. Resetting customer expectations C. Managing customer education D. Managing horizontal communications E. Exceeding customer expectations

c

Cookies is a retail store where customers host parties for guests to bake and decorate cookies. The store offers customers their money back if the party experience is boring. Cookie's is: A. Creating tiered-value offerings to improve customer education B. Preparing customers for the service process through customer education C. Offering a service guarantee to manage customer expectations D. Featuring the servicescape as a tool for integrating its marketing communications E. Confirming that performance equals performance standards to manage customer expectations

c

Eddie Bauer, a catalog retailer, offers customers three different delivery options: 5 to 7 days via standard delivery; 3 to 4 days via express delivery; or 2 days via express plus delivery. The delivery rates are higher for faster service. For example, on orders over $75 standard delivery is $9.95, express delivery is $15.95 and express plus delivery is S18.95. By offering different delivery options, Eddie Bauer is: A. Making multilevel service promises B. Communicating criteria for service effectiveness C. Managing customer expectations D. Managing horizontal communications E. Exceeding customer expectations

c

Emory Vision Center has a packet of information that it sends to people who are interested in LASIK surgery. The center also has a doctor available to speak to organizations about how vision can be corrected. In addition, it publishes a newsletter called The Visionary in which it offers family discounts, clarifies patient expectations and notes awards and honors the center receives. The center also manages a web site that contains news on the latest innovative research techniques. Through its communications with current and potential patients, Emory Vision Center is: A. Managing internal marketing communications B. Resetting customer stamdards C. Managing customer education D. Leveraging social media E. Creating effective upward communication

c

Mike hurt his back and has to go to physical therapy every other day. He has a series of exercises he is supposed to do on the days he does not see the therapist. After two months, Mike was not feeling any better and complained to the therapist who at that point realized Mike was not performing all of the stretching exercises that he should be at this point in his rehabilitation. Mike had been handed a booklet when he started his therapy. Because he had only been instructed in how to perform some of the exercises in the booklet but not all of them, he had thought he was not to do the others. Mike feels like he has been wasting his time. The service provider has erred by: A. Inadequate internal marketing communications B. Inappropriate external marketing communications C. Providing inadequate customer education D. Under-promising and over-delivering E. Inadequate management of customer expectations

c

Preparing customers for the service process is a strategy for: A. Managing service promises B. Resetting customer expectations C. Managing customer education D. Managing horizontal communications E. Exceeding customer expectations

c

The four strategies of tangibilization proposed by researchers Leonard Berry and Terry Clark are: A. Documentation, visualization, verification and illustration B. Illustration, verification, documentation and intimation C. Association, physical representation, documentation and visualization D. Association, internalization, testimonials and imitation E. Intimation, allusion, association and documentation

c

When Sarah opened her savings and checking accounts at First National Bank of Chicago, she was given a brochure entitled "How to Lose Wait" that gave her advice on how to avoid delays at the bank and listed her branch's busiest and slowest times. By giving Sarah the "How to Lose Wait" brochure, First National Bank of Chicago is ________ to match service promises with delivery. A. Offering a service guarantee B. Leveraging social media C. Managing customer education D. Managing horizontal communications E. Using viral marketing

c

Which of the following is a strategy used for managing customer education? A. Teach customers to avoid peak demand periods and see slow periods B. Clarify expectations after the sale C. Prepare customers for the service process D. Conform performance to standards E. Create tiered-value offerings

c

By involving employees in cross-functional teams to align their jobs with end customer requirements, a service firm is: A. Managing service promises B. Resetting customer expectations C. Communicating with customers D. Managing internal marketing communications E. Exceeding customer expectations

d

In which of the following services is inadequate customer communication most likely to result in customer dissatisfaction? A. Fast food restaurant B. Animal boarding C. Movie theater D. Physical rehabilitation therapy E. Overnight package delivery

d

Inadequate customer communication occurs when: A. The services have synchronized supply and demand B. Customers are experienced users of the service C. The services are low in credence qualities D. The service is difficult for the customer to evaluate even after it has been delivered E. The services are high priced

d

Which of the following describes a reason why integrated marketing communications have not been the norm in many companies? A. Employees circumvent interactive communication norms B. Communication autonomy often leads to employee ambiguity C. Customer empowerment is short-term D. Various parts of the company are responsible for different aspects of communication E. The servicescape is designed to impede external communication

d

Which of the following is NOT a company-controlled factor that influences customer expectations? A. Advertising B. Personal selling C. Employee appearance D. Word-of-mouth communication E. Pricing strategy

d

Which of the following is NOT a strategy a service provider would use if its goal were to manage customer expectations? A. Create tiered-value service offerings B. Negotiate unrealistic expectations C. Communicate criteria for service effectiveness D. Teach customers to avoid peak demand periods and see slow periods E. Offer choices

d

Which of the following is NOT one of the properties of intangibility that has been identified by the research of Banwari Mittal? A. Nonsearchability B. Abstractness C. Incorporeal existence D. Dynamic vs. static E. Mental impalpabilit

d

Which of the following services is highest in incorporeal evidence? A. An ATM B. A movie theater C. A vacation cruise D. Management consulting E. A drive-through liquor store

d

_____ means transmitting information across functional boundaries in an organization to align all functions with customer expectations. A. Managing service promises B. Resetting customer expectations C. Communicating with customers D. Managing horizontal communications E. Exceeding customer expectations

d

______ occurs when a service firm develops an advertising campaign without input from operations and contact personnel are not able to deliver service that matches the image portrayed in the advertising. A. Inadequate management of service promises B. Over-promising in advertising and personal selling C. Inadequate customer communication D. Inadequate horizontal communication E. Differences in policies and procedures across distribution units

d

A commercial for Carnival Cruises shows a group of friends scuba diving, rock climbing, dancing and having a really great time. Which strategy for tangibilization is Carnival using in this commercial? A. Illumination B. Physical representation C. Allusion D. Documentation E. Visualization

e

Every functional area in a Marriott Hotel operates under standard operating procedure manuals where all processes and services are carefully documented. Housekeepers, for example, must perform 64 required steps in cleaning a room. These specific guidelines result in uniformly clean rooms anywhere in the Marriott Hotel chain. By having specific guidelines for cleaning a room, Marriott is avoiding one of the problems associated with: A. Inadequate management of service promises B. Over-promising in advertising and personal selling C. Inadequate external marketing communication D. Inadequate interactive marketing communications E. Inadequate internal marketing communications

e

Josh's teachers describe him as a mathematical genius. His parents did not get any education after high school. They have hired Josh a tutor even though they do not understand why Josh needs to understand string theory and quantum physics. The tutoring that Josh receives has a high degree of _____ for Josh's parents. A. Nonsearchability B. Abstractness C. Incorporeal existence D. Generality vs. specificity E. Mental impalpability

e

Last summer, Kenta and Sawako spent part of their vacation in St. Louis and Boston, staying at the St. Louis Hilton and the Boston Hilton. When they checked in at the St. Louis Hilton the front desk clerk was very friendly and helpful. However, when they checked in at the Boston Hilton, the front desk clerk was cold and indifferent. The inconsistent front desk clerk behaviors experienced by Kenta and Sawako resulted from: A. Inadequate management of service promises B. Over-promising in advertising and personal selling C. Inadequate external marketing communication D. Inadequate interactive marketing communications E. Inadequate internal marketing communications

e

Parking for travelers flying out of Hartsfield-Jackson International Airport in Atlanta is difficult, even for those who have the time to look. For those arriving at the airport with only time enough to catch their flight, parking was truly a nightmare until the development of the GoldParker System, which guarantees a convenient parking place to its members. The system is extremely popular among business travelers and works just as advertised. By instituting the GoldParker System, Hartsfield's management has_______ to manage customer expectations: A. Made realistic promises B. Created effective horizontal communication C. Offered a service guarantee D. Engaged in public relations E. Created a tiered-value service offering

e

Under which of the following conditions should a service provider confirm performance to standards and expectations? A. The customer cannot evaluate the effectiveness of the service. B. The decision maker in the service purchase is different from users of the service. C. The service is performed out of sight of the customer. D. Answers A and C above E. Answers A, B, and C above

e

Vernon has a used Nordic Track he wants to sell. He has been told to take it to Play It Again Sports. The retail outlet buys used athletic equipment and resells it. Vernon took his Nordic Track to a store near his house and was given $60 for the machine. Later he learned that other Play It Again Sports stores would have paid him at least $100 for the exercise machine and as much as $120. Vernon's dissatisfaction with Play It Again Sports is the result of: A. Inadequate management of service promises B. Over-promising in advertising and personal selling C. Inadequate customer education D. Inadequate management of customer perceptions E. Differences in policies and procedures across distribution outlets

e

Which of the following statements about the Banwari Mittal's properties of intangibility is true? A. Services such as dental care have less nonsearchability than babysitting B. An ATM is high in incorporeal existence C. Service benefits such as fun and excitement are concrete terms D. Services like doctors, amusement parks and health clubs are typically described in specific terms E. Services such as an MRI or a cat scan have a high level of mental impalpability

e

A more complex type of integrated marketing communications is needed for goods than for services.

f

In most companies, it is significantly easier to improve horizontal communications than vertical communications.

f

It is impossible to manage customer expectations in a business-to-busines

f

Just as all service providers must advertise, all need integration across departments to be able to deliver quality services.

f

One way to address service intangibility is to offer the customer a variety of choices.

f

Service providers should never encourage word-of-mouth communication.

f

The four strategies of tangibilization are documentation, illustration, intimation and physical representation.

f

There is no way to improve the education of the customer after the sale is made.

f

An airline that sells first-class, business-class and tourist-class seats on its planes has created tiered-value service offerings.

t

An insurance company that used advertising showing satisfied customers thanking the company for their prompt payment after a flood would be addressing service intangibility.

t

Any company that disseminates information through different communications channels needs to be concerned with integrating this information so that customers receive unified messages and promises about its offering.

t

Interaction and measurement are tools used to manage internal marketing communications.

t

Many companies find themselves in the position of having to manage expectations downward.

t

Once the sale is made, service provider can manage customer education by clarifying expectations after the sale.

t