Ch 9 Questions

A service is a product in the sense that it represents a bundle of benefits that can satisfy customer wants and needs with physical forms.

FALSE

An ethical debate exists that doctors should send their patients to China for treatment because the cost is lower than in the United States.

FALSE

Caesars has found that customers who are in the zone of indifference make the best potential targets for their promotions. They respond and change from being indifferent to becoming advocates.

FALSE

Empathy means that when a customer has a problem that the service provider relates with, the company does what is best for the company.

FALSE

In the Gap Model of Service Quality, there are five main gaps that may occur. The frequency of gap occurrence is approximately the same for each gap, making them all equally important.

FALSE

The main cause of switching behavior is price. People leave companies because of high price and this drives out most other reasons for leaving.

FALSE

The service-profit chain identifies that increases in service through the cultivation of employees leads to higher customer costs and the potential erosion of profits.

FALSE

The shift in focus from services to goods is a shift from the means and the producer perspective to the utilization and the customer perspective.

FALSE

The zone of defection is where satisfied customers reside when they are not really thrilled with the service provided. This leads them to not be committed to the company and they defect.

FALSE

There is a big debate that today we operate in an economy that is increasingly focused on intangible offerings—services—instead of just physical goods.

FALSE

Trust in the ability of a service provider to do a difficult job is called reliability.

FALSE

The service sector accounts for ____________ of the gross domestic product of the United States. A. 25 percent B. 50 percent C. 75 percent D. 100 percent E. None of these

C. 75 percent

Intangibility means _________. A. A service cannot be seen, heard, tasted, or felt by a customer B. You can carry a service out with you from the retailer C. You cannot see the product or feel it D. You can sense the service through the seven senses of the body E. None of these

A. A service cannot be seen, heard, tasted, or felt by a customer

A negative gap between _________ and ________ nearly always points to management and employees simply not getting the job done. This could be due to vague performance standards, poor training, or ineffective monitoring by management. A. Actual service quality specifications; actual service delivery B. Management's perception of customer service expectations; actual service quality specifications developed C. Management's perceptions of customer service expectations; actual customer expectations of service D. Actual service delivery; what the firm communicates it delivers E. Perceived service by customers; actual customer expectations of service

A. Actual service quality specifications; actual service delivery

In the service-profit chain, customer satisfaction leads to customer loyalty and then revenue growth and profitability. This in turn leads to ____________. A. Greater employee satisfaction and investment in employees B. Changes in the organizational structure C. Competitive intelligence for future growth D. Competitive retaliation based on service strategy E. None of these

A. Greater employee satisfaction and investment in employees

The __________ of performance and consumption of services heightens the role of human service providers in the customer's experience. A. Inseparability B. Intangibility C. Variability D. Perishability E. All of these

A. Inseparability

A service blueprint is a concept borrowed from manufacturing that allows a service firm to ___________. A. Map out a complete design and flow of all the activities related to customer service B. Map out the route that service people follow when they leave in the mornings (i.e., truck delivery service) C. Tell who in the organization is performing beyond expectations and is used for bonuses D. Measure customers' perceptions of service expectations E. None of these

A. Map out a complete design and flow of all the activities related to customer service

One of the strategies of a service company is to take its intangible service and make it __________. A. More tangible B. More like other companies in the industry C. Less understandable D. Look like a brand that people like E. All of these

A. More tangible

_____________ is the period during which a customer interacts in any way with a service provider. A. Service encounter B. Moment of truth C. Service period D. Service quality E. None of these

A. Service encounter

Benihana restaurants have the tag line, "an experience at every table." This conveys that _________. A. Service is a drama to get customers to new heights of involvement B. Service is a lot of rote memory by the workers at the restaurant C. Service is a combination of product excellence combined with some unique product features D. Service is not repeatable, so get used to differences at every table of the restaurant E. Service is easy to create

A. Service is a drama to get customers to new heights of involvement

Sometimes marketers are prone to overzealous sales pitches, coupon promotions with too little stock to handle the demand, and deceptive advertisements. These create a gap in the service that can be described as __________. A. Setting expectations that are too high and unachievable B. Creating an impression that matches the image of the company C. Using recall, which is important no matter what the results D. Using communication to generate word of mouth E. None of these

A. Setting expectations that are too high and unachievable

When Outback built differentiation on service rather than just the Australian theme, it found the results beneficial that led to ________. A. Setting industry standards in turns per table and revenue per square foot B. High turnover in employees C. Management receiving higher than average salaries D. Exceeding customer expectations in the all-important statistic of low cost per serving E. None of these

A. Setting industry standards in turns per table and revenue per square foot

Reliability when referring to service quality means that _________. A. The service is performed right the first time and every time B. The service is variable and has different outcomes due to employee variation C. Each time a service is performed the customer is asked about his or her perception of the service quality D. The automobile service department should show you the broken parts when they fix your car E. None of these

A. The service is performed right the first time and every time

The Outback Steakhouse management team added pickup service because _________. A. The team found dissatisfaction among customers with traditional fast food B. It was easy to do C. The ROI on pickup is better than providing service with a seat attached to it D. The restaurants' revenues were declining and they needed a boost in sales E. None of these

A. The team found dissatisfaction among customers with traditional fast food

When it is said that a service cannot be separated from the provider, and that a service's quality can only be as good as that of the provider himself or herself, the service is said to have __________. A. Variability B. Creativity C. Nonvalence reward for returns D. Nordstrom's concept E. All of these

A. Variability

José, an employee of a company that has worked hard to have a customer mind-set, understands that ______. A. Whether internal or external to the firm, satisfying customers is central to doing his job well B. All members of the firm must get to work on time and start their computers by 8:30 a.m. C. Management must tell them when to give rebates to customers D. All employees should have equal access to parking alongside managers or even the CEO E. All of these

A. Whether internal or external to the firm, satisfying customers is central to doing his job well

Perishability of a service means that ________. A. A service can spoil if it is not used in a particular period of time B. A service cannot be stored or saved up for future use C. A service is sensitive to the day of the week, month, and year D. A service must be handled and stored with care E. None of these

B. A service cannot be stored or saved up for future use

____ is(are) the knowledge and courtesy of employees, and the ability to convey trust and build a customer's confidence in the quality of the service. A. Tangibles B. Assurance C. Reliability D. Responsiveness E. Empathy

B. Assurance

Gap 5 in the Gap Model of Service Quality is unique in that it is the only gap that occurs _______________. A. Between management's and customers' expectations B. Between consumers' expectations and the perception of the service they receive C. Without research to back it up D. In small businesses but not in larger ones E. None of these

B. Between consumers' expectations and the perception of the service they receive

One of the central concepts of the service-profit chain is to _______. A. Have all members of the firm memorize the mission of the firm and be able to recite it from memory B. Create an environment in which all employees can be successful C. Allow employees to play computer games at their work station when they are tired D. Create elements of change within people to do things above what their capabilities are E. None of these

B. Create an environment in which all employees can be successful

The traditional division between goods and services is outdated. The shift in focus to services is a shift from the means and the producer perspective to the __________________ perspective. A. Necessary and income B. Utilization and customer C. Time and union D. Social and employee E. None of these

B. Utilization and customer

When nonregulated services (which exclude the professional services of doctors, lawyers, accountants, and so on) are credence services, they often self-regulate by ____________. A. Forming local groups to coordinate their image B. Creating industry trade groups that regulate quality and serve as a clearinghouse for information and referrals C. Opening an office in Washington, DC, to lobby for their interests D. Creating advertisements that local companies can use to advertise their individual service E. None of these

B. Creating industry trade groups that regulate quality and serve as a clearinghouse for information and referrals

When a customer cannot make a reasonable evaluation of the quality of a service even after use, it is said that the service possesses ______________ attributes. A. Experience B. Credence C. Search D. Focused E. None of these

B. Credence

JetBlue developed a(n) __________ in response to the service meltdown from a severe snowstorm in New York. A. Customer contact information form B. Customer bill of rights C. New complaint form D. Employee training program aimed at disasters and how to not lose bags E. None of these

B. Customer bill of rights

Once a customer begins to have a positive experience with a service provider and builds a relationship with the firm, _______________. A. Customer loyalty tends to be less than for products B. Customer loyalty tends to be greater for services than for products C. Customer loyalty is the same between services and products D. Customer loyalty is an upward sloping curve that accelerates as it hits the zone of indifference E. None of these

B. Customer loyalty tends to be greater for services than for products

One way to make a service more tangible is to have customers ______. A. Read about it on a website B. Experience the service through a trial period of time C. Receive a brochure that highlights the advantages and disadvantages of the service D. Google the service and see who provides the services in their area E. None of these

B. Experience the service through a trial period of time

The zone of defection describes the area where ______________ reside and are prone to leaving a business and defect to competitors. A. Slightly satisfied and satisfied customers B. Extremely dissatisfied and somewhat dissatisfied customers C. Customers who have one bad experience with the firm D. Satisfaction is no longer an issue and customers become terrorists against the company E. None of these

B. Extremely dissatisfied and somewhat dissatisfied customers

When a company feels it is following a customer-centric philosophy with a high degree of customer orientation, it may ________________. A. Keep everyone up-to-date on the progress of the current legislation B. Generate an understanding of the marketplace and disseminate that knowledge to everyone in the firm C. Instill a team spirit for the company baseball team D. Create a customer database E. None of these

B. Generate an understanding of the marketplace and disseminate that knowledge to everyone in the firm

Service jobs have _________ in the United States over the last 30 to 40 years. A. Decreased B. Increased C. Stayed the same D. Been in decline E. None of these

B. Increased

External service value does not lead to _______________. A. Customer satisfaction B. Internal service quality C. Customer loyalty D. Revenue growth E. None of these

B. Internal service quality

The face-to-face time between customer and service provider is often called the ________. Most customer judgments take place at this time. A. Goal line stand B. Moment of truth C. Moment of momentum D. Service ROI E. None of these

B. Moment of truth

It is said that customers do not buy goods or services: They buy _______. A. Products that come with some services B. Offerings that render services that create value C. Services that come in a variety of sizes and shapes D. Technology that is a service orientation E. All of these

B. Offerings that render services that create value

Goods, in general, tend to be much more ___________ than services because once a firm has invested in continuous process improvement and quality control in operations, products flow off the line. A. Flexible B. Standardized C. Homogenized D. Durable E. All of these

B. Standardized

One of the search difficulties for consumers with respect to evaluating one service offering from another is ________. A. Services are not offered in a store B. The customer does not truly know how the service performs until after the sale C. It is difficult to compare services online D. A service may be inseparable from its price E. None of these

B. The customer does not truly know how the service performs until after the sale

The service-profit chain is designed to help managers better understand ____________. A. The relationship between profit and production B. The relationship between customer loyalty, revenue growth, and higher profits C. The relationship between all the service employers and customer wants and needs D. The relationship that exists between managers and employees E. None of these

B. The relationship between customer loyalty, revenue growth, and higher profits

Caesars Entertainment has found that it is best to invest in customers who fall into the _________ because they yield more return on investment. A. Zone of defection B. Zone of affection C. Zone of indifference D. Zone of leaving E. None of these

B. Zone of affection

Asok, a college student, tells his friends about a new bar and grill in town and tells them they need to try it. Asok is known as ________. A. A satisfied customer B. A loyal customer C. A customer advocate D. Marketing-centric E. None of these

C. A customer advocate

SERVQUAL is __________. A. An instrument to measure employees in a service environment B. A questionnaire that can be used to track packages as they cross the United States and the world C. A questionnaire that compares the importance and performance of a firm in service quality D. An instrument to measure the deviations of quality from the norm on a scale from 1 to 10 E. None of these

C. A questionnaire that compares the importance and performance of a firm in service quality

The role of human service providers in the customer service experience allows the service provider to __________. A. Allow for new products to be promoted B. Stimulate the formation of the same experience for all people C. Allow considerable customization in delivering the service D. Create profit pockets by encouraging the ordering of more expensive options E. None of these

C. Allow considerable customization in delivering the service

_________ is not a distinct characteristic of services that is different from physical goods. A. Variability B. Perishability C. Assurance D. Intangibility E. Inseparability

C. Assurance

One way that Intuit handles the ______ of its TurboTax and other financial software is through its websites. The site includes multiple forums to facilitate discussion between users and bloggers alike and solicits customers for text and video content. This helps potential customers and users understand the software. A. Inseparability B. Variability C. Intangibility D. Perishability E. All of these

C. Intangibility

Caesars Entertainment points with pride to the fact that everyone in the firm understands and can articulate its branding and values. This would be an indication that Caesars is devoted to __________. A. Self-actualization for management B. Work-focused training for valued employees C. Internal marketing to achieve the goals in the service-profit chain D. Internal marketing to achieve the goals of stress-relief ergonomics E. All of these

C. Internal marketing to achieve the goals in the service-profit chain

Big investments made in continuous training, retraining, and good management of employees leads to ______________. A. Practical service delivery B. Impartial service delivery C. Less variability in service delivery D. World-class technology E. None of these

C. Less variability in service delivery

Great service occurs when processes are engineered both above and below the _____________ for the customer. A. Line of motivation B. Line of demarcation C. Line of visibility D. Line of distinction E. None of these

C. Line of visibility

It is said that services are _________ rather than produced. A. Separable B. Intangible C. Performed D. Rationed E. All of these

C. Performed

If a firm is considered customer-centric, it implies that the company _________. A. Does marketing research on all the market segments and creates ads that focus on individual market segments B. Develops products and services that sell well in both large and small markets including some international markets C. Places the customer at the center of everything that takes place both inside and outside the firm D. Places the employee and the customer at the top of the organizational chart E. None of these

C. Places the customer at the center of everything that takes place both inside and outside the firm

Schools face a dilemma with respect to students. They have a difficult time determining whether students are ________. A. To be serviced with good service B. Professionals that deserve respect C. Products or customers D. Prospects or suspects E. None of these

C. Products or customers

When a service provider is willing and able to provide service quickly, it is said that the service has the characteristic of __________. A. Reliability B. Tangibility C. Responsiveness D. Assurance E. All of these

C. Responsiveness

Firms that employ service as a marketing strategy must plan ahead for _____________ and train employees to properly execute service recovery. A. Service differentiation B. Service success C. Service failure D. Service orientation E. All of these

C. Service failure

___________ represents a formalization of the measurement of customer expectations of a service compared to perceptions of actual service performance. A. Customer delight B. Service encounter C. Service quality D. Service excellence E. All of these

C. Service quality

When you talk about the service encounter, you are talking about ______________. A. The period in which the service provider is trying to obtain information about the customer B. The period of time between ordering the service and delivery of the service C. The period during which a customer interacts in any way with a service provider D. The experience of the employee with the customer E. None of these

C. The period during which a customer interacts in any way with a service provider

When someone buys a car insurance policy, he or she buys _______. A. The written policy that comes from the agent B. The office staff, agent, and brand of the insurance company C. The promise that if something happens to the car, the insurance company will fix it or replace it D. The agreement to be there at the site of the accident E. None of these

C. The promise that if something happens to the car, the insurance company will fix it or replace it

A service is a product in a sense that it represents a bundle of benefits that can satisfy customer wants and needs, yet it does so __________. A. Without people B. Without price perceptions C. Without physical form D. Without time utility E. None of these

C. Without physical form

The percentage of jobs in the United States that are service-related equal about __________. A. 20 percent of all jobs B. 40 percent of all jobs C. 60 percent of all jobs D. 80 percent of all jobs E. 100 percent of all jobs

D. 80 percent of all jobs

Those who are higher satisfied and fiercely loyal are called _______________. A. Responsive customers B. Terrorists C. Violators D. Apostles E. Pioneers

D. Apostles

In the service-profit chain, customer loyalty leads to _________. A. Revenue growth B. Customer satisfaction C. Profitability D. Both Revenue growth and Profitability E. Revenue growth, Customer satisfaction , and Profitability

D. Both Revenue growth and Profitability

Some schools take the approach that the primary customers for their business are ___________. A. Students B. Graduate schools C. Parents D. Companies that hire the students E. None of these

D. Companies that hire the students

Exceeding customer expectations is often referred to as ___________. A. Customer excellence B. Customer loyalty C. Customer essence D. Customer delight E. None of these

D. Customer delight

When a company underpromises but overdelivers with respect to its services, it is said to be practicing ___________. A. Inferior service management B. Sandbagging C. Customer salience management D. Customer expectations management E. None of these

D. Customer expectations management

Sometimes customers can tell if they received good service. For example, vacations, haircuts, and restaurants all have _________ attributes that allow customers to decide whether they will repeat the purchase another time. A. Purchasable B. Simultaneous C. Focused D. Experiential E. All of these

D. Experiential

Most services are not _________. A. High in credence qualities B. High in experience qualities C. Difficult to evaluate D. High in search qualities E. None of these

D. High in search qualities

Services are produced and consumed at the same time and cannot be separated from their provider. This is the characteristic of _______. A. Intangibility B. Perishability C. Variability D. Inseparability E. All of these

D. Inseparability

When a product is produced and consumed at the same time and cannot be separated from its provider, it is called ___________. A. Separability B. Timing C. Intangibility D. Inseparability E. Partial consumption F. None of these

D. Inseparability

Treating employees as customers and developing systems and benefits that satisfy their needs is called ________. A. Marketing for profit B. Internal consistency C. Market orientation D. Internal marketing E. All of these

D. Internal marketing

Firms are sometimes reluctant to invest in great service, largely because ___________. A. It is frustrating to change employees' actions B. It is difficult to have consumers be aware that they are receiving great service C. It is difficult to sell Wall Street on the idea D. It takes time and patience before a return on the investment is noticeable E. None of these

D. It takes time and patience before a return on the investment is noticeable

In services marketing there is a Gap Model of Service Quality. The gap refers to __________. A. Distance between the understanding of management and employees B. Employees' perception of the customer experience C. Management's mismanagement of resources to achieve better service quality D. Misunderstandings between the provider of the service and the customer's experience of the service E. None of these

D. Misunderstandings between the provider of the service and the customer's experience of the service

Employees in the service-profit chain are given training, recognition, and tools to serve the customer. This leads to employee ______________. A. Satisfaction B. Retention C. Productivity D. Satisfaction, Retention, and Productivity E. None of these

D. Satisfaction, Retention, and Productivity

When discussing service quality, tangibles refer to _________. A. The elements of communication that differentiate one service firm from another B. The handsomeness and/or beauty of the employees C. The combination of price and quality of the service D. The physical evidence of a service or observable aspects E. None of these

D. The physical evidence of a service or observable aspects

The basis of the gap model is the identification and measurement of differences in ____ key areas of the service delivery process. A. One B. Two C. Three D. Four E. Five

E. Five

Firms that are customer-centric exhibit a high degree of customer orientation. This means that they _______________. A. Instill an organization-wide focus on understanding customers' requirements B. Generate an understanding of the marketplace and disseminate that knowledge to everyone in the firm C. Align system capability internally so that the organization can respond effectively with innovative, competitively differentiated, satisfaction-generating foods and services D. Both instill an organization-wide focus on understanding customers' requirements and Generate an understanding of the marketplace and disseminate that knowledge to everyone in the firm E. Instill an organization-wide focus on understanding customers' requirements, Generate an understanding of the marketplace and disseminate that knowledge to everyone in the firm, and Align system capability internally so that the organization can respond effectively with innovative, competitively differentiated, satisfaction-generating foods and services

E. Instill an organization-wide focus on understanding customers' requirements, Generate an understanding of the marketplace and disseminate that knowledge to everyone in the firm, and Align system capability internally so that the organization can respond effectively with innovative, competitively differentiated, satisfaction-generating foods and services

In the service-profit chain, customer satisfaction leads to customer ___________ that carries with it retention, repeat business, and referral business. A. Feedback B. Profundity C. Legality D. Ethics E. Loyalty

E. Loyalty

A fundamental rule in marketing is to not set customer expectations so high that they cannot be effectively met on a consistent basis.

TRUE

A service-centered perspective is very consistent with a customer-centric approach in which people, processes, systems, and other resources are to be aligned to best serve customers.

TRUE

In today's workplace everyone is involved in service in some way; everyone has customers either outside or inside the firm, or both.

TRUE

Investing in customers who fall into the zone of indifference is a good strategy because the company can often prevent them from sliding into the zone of defection, thereby increasing ROI.

TRUE

Most airlines will not let a customer change a super-low-fare ticket because once the plane backs away from the gate, the value of the empty seat is zero.

TRUE

Professional services providers like doctors, lawyers, and accountants use their degrees and designations to convey a level of trust to the purchaser. This is because a customer cannot tell if the service is going to be good until after the service has been delivered.

TRUE

Service failure, when properly handled through service recovery, does not necessarily impact customer satisfaction.

TRUE

Services possess several distinct characteristics different from physical goods, including intangibility, inseparability, variability, and perishability.

TRUE

There is a debate among professors in educational services on whether students are "customers" or products that need to be branded.

TRUE