Final: Test 1 Services MKTG, Test 2 (chapter 6-9), Test 3 (Ch12), Test 3 (Ch13), Test 3 (Ch11), Test 3 (Ch10), Test4 Ch16, test 4 - chapter 14, Test 4 - Chapter 15, Test 4 - Chapter 17 (missing most of test 1)

24. (p. 189-190) A company that uses a four-tiered system to rank the profitability of its customers is:

A. Expanding the 80/20 customer pyramid

19. (p. 20) The most basic and universally cited, difference between goods and services is:

C. Intangibility

13. (p. 445) Which of the following is NOT considered a capacity constraint for a service provider? A. Equipment B. Labor C. Money D. Facilities E. Time

C. Money

23. (p. 424) A retail travel agent is a _____ agent. A. Facilitating B. Leading C. Selling D. Purchasing E. Mediating

C. Selling

21. Sales associates at Nordstrom are given a "personal" book to keep track of customers' names, telephone numbers, height and weight, likes and dislikes (e.g., color, style and texture preferences) and charge account numbers to help them become a personal shopper for the customer. In addition, sales associates have an open account to send thank-you notes or flowers to customers. By having a personal book and sending thank-you notes or flowers to customers, Nordstrom's sales associates are showing they care by emphasizing the _____ dimension to influence customer perceptions of Nordstrom's service quality. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

.D. Empathy

31. (p. 22) Which of the following is a marketing implication that results from the heterogeneity of services?

D. Mass production of services is difficult

45. (p. 197) Customer retention strategies based on customization bonds:

D. May include the customer intimacy approach

1. (p. 387) By participating in the service delivery process, customers create _____ for themselves. A. Value B. Needs C. Economic order D. Loyalty E. Economies of scale

A. Value

28. (p. 192) Every month the pest exterminator does a monthly spraying at Mike Wade's house. Every month Wade gripes that he is being ripped off by the exterminating company and how he's going to find a new one. But he never does change service providers due to:

B. Customer inertia

8. (p. 392-393) For which of the following services does successful service delivery depend on consumers having a moderate level of participation by providing information, effort or physical possessions? A. A weight-reduction program B. Airline travel C. Pest control D. A haircut E. Marriage counseling

B. Airline travel

48. (p. 198-201) Which of the following is NOT a reason why a service firm may avoid a customer relationship with a particular customer? A. Customer is in the wrong segment B. Customer is not divisible C. Customer is not always right D. Customer is not profitable in the long run E. Customer is difficult

B. Customer is not divisible

49. (p. 439) Which of the following is an example of a partnering strategy? A. Ongoing measurement programs B. Alignment of company and intermediary goals C. Developing intermediaries to deliver service quality D. Changing to a cooperative management structure E. Providing needed support systems

B. Alignment of company and intermediary goals

32. (p. 228) What are poka-yokes?

B. Automatic warnings or controls to ensure mistakes don't happen

42. (p. 266) In a service blueprint, the line of internal interaction separates:

B. Backstage contact employee actions from support processes

43. (p. 24) In addition to the elements of the traditional marketing mix, the expanded mix for services includes:

B. People, physical evidence and process

The ability to connect to the Internet through a modem using the same wires that transmit cable television was an example of a _____ when it was first introduced.

A. Major innovation

30. (p. 227) L. L. Bean, the catalog retailer, promises its customers, "100 percent satisfaction in every way, forever". Which service recovery strategy does L. L. Bean use?

A. Make the service fail safe

31. (p. 227) With which service recovery strategy is total quality management (TQM) most closely associated?

A. Make the service fail safe

38. (p. 407) An airport with large, easily read signage and well-designed foot traffic patterns that allow travelers to perform their roles with ease is providing travelers with _____ orientation. A. Place B. Cultural C. Promotable D. Physical evidence E. Function

A. Place

48. (p. 275) _____ is very useful in helping companies choose the right new service innovations in the first place.

A. Portfolio management for new products

38. (p. 458) A hotel that has 300 rooms charges a rate of $150 per night Monday through Thursday. During this period of peak demand, the hotel operates at 100 percent capacity. On weekends (Friday through Sunday), the hotel discounts half of its rooms at a rate of $100 per night while the remaining rooms are still priced at $150 per night. Calculate the hotel's yield for a Saturday night, if it fills 50 percent of the $150 rooms and sells all of the $100 rooms. A. 58 percent B. 63 percent C. 78 percent D. 93 percent E. 171 percent

A. 58 percent

49. (p. 238-239) For which of the following service providers would a guarantee be inappropriate?

A. A child care provider who has a reputation for providing the best and most responsible child care in a community

7. (p. 392-393) Bob and Tiffany have been busy this week seeing all kinds of service providers. In which of the following service situations would Bob and Tiffany have had the lowest level of participation? A. A visit to McDonald's for breakfast B. A session with their marriage counselor C. The hauling of a grand piano from their home in Nashville to their parents' home in Brentwood in a truck they rented for that purpose D. Tiffany's annual physical examination E. Bob's weekly visit with his personal trainer

A. A visit to McDonald's for breakfast

12. In terms of servicescape complexity, which of the following is a lean service environment? A. ATM machine B. Fred Astaire Dance Studio C. Vanderbilt University Hospital D. Microtel Inns & Suites E. Delta Air Lines

A. ATM machine

37. (p. 456-458) Convention hotels provide meeting rooms and banquet hotels to convention participants. Sometimes a specific convention may involve 2,000 members or only 75 members. To take care of both sizes of groups, convention hotels have movable walls that allow them to expand or contract a facility as needed by the group. By modifying its facility, the convention hotels are able to: A. Adjust capacity to match demand B. Create optimal supply C. Optimize its demand pattern D. Outsource its requirements E. Smooth peaks and valleys of demand

A. Adjust capacity to match demand

36. (p. 455) Shelton Elementary School only needs its gymnasium from Monday through Friday. On the weekends it rents the facilities to an Upward Bound basketball program sponsored by a local church. By renting its facilities, the elementary school is: A. Adjusting capacity to match demand B. Creating optimal supply C. Optimizing its demand pattern D. Outsourcing E. Smoothing peaks and valleys of demand

A. Adjusting capacity to match demand

30. (p. 525) In talking to a travel agent, T. J. Matthews learned that he could get a three-day/two night package near Disneyworld for his family of four or for the same amount of money, he could have a five-day/four-night stay at a hotel that was about fifty miles away from Disneyworld. Matthews decided the farther hotel was a much better value. Matthews defined value as: A. All that I get for all that I give B. Whatever I want in a service C. Low price D. Reliable service E. The quality I get for the price I pay

A. All that I get for all that I give

44. (p. 536) Price framing would be used when the customer defines value as: A. All that is received for all that is given B. Superior quality C. Quality for the price paid D. Everything wanted in a service E. Low price

A. All that is received for all that is given

41. Which of the following organizations is NOT suited for using employee empowerment strategies? A. An organization where the business strategy is one of mass marketing B. An organization in which managers and employees have high growth and social needs C. An organization that establishes long-term relationships with its customers D. An organization that uses non-routine technology to provide its services E. An organization that operates in an unpredictable environment

A. An organization where the business strategy is one of mass marketing

37. A service firm in a particular industry or in a particular location can use which of the following human resource strategies to attract the best people? A. Become a preferred employer B. Providing needed outsourcing C. Using benchmarking D. Limiting the number of service encounters E. Designing efficient servicescapes

A. Become a preferred employer

15. (p. 423) A _____ of franchising to the _____ is that franchising leverages the business format to gain wider distribution. A. Benefit; franchiser B. Challenge; franchiser C. Benefit; franchisee D. Challenge; franchisee

A. Benefit; franchiser

According to the _____, while advertising, sales and promotions pour profits into your company, there will always be some customer defection, which has the potential to grow larger.

A. Bucket theory

36. (p. 195) Retention strategies based on social bonds:

A. Build long-term relationships through social and interpersonal as well as financial bonds

23. Which of the following hotel employees is NOT a boundary spanner? A. Chef B. Front desk clerk C. Housekeeping employee D. Concierge E. Room service operator

A. Chef

34. All of the following are service inclination skills EXCEPT: A. Clerical speed and accuracy B. Social sensitivity C. Helpfulness D. Courtesy E. Thoughtfulness

A. Clerical speed and accuracy

6. When you visit the web site for Hyatt hotels, you can look at pictures of its newest hotels, register for its continuity programs and make reservations quickly. Because the site is inviting, attractive and fun to browse, customers perceive the Hyatt hotels to also be this way. By designing it this way, Hyatt has used: A. Clue management B. Customer-driven cues C. Company-oriented tangibles D. A visual enhancement strategy E. A virtual enhancement strategy

A. Clue management

33. During Chemical Bank's annual "Stellar Teller" contest, tellers match their skills in the areas of money counting, knowledge of bank policy and ability to make customers feel like royalty. To assess money counting skills, tellers are required to sort a mishmash of ones, fives, 10s and 20s by denomination, arrange the bills so that they all face the same way, then tally the cash on an adding machine and put it back into a deposit bag. Time and accuracy count. A bank teller's money-counting skills are a service: A. Competency B. Competitiveness C. Inclination D. Responsibility E. Accountability

A. Competency

2. Delta Airlines was dissatisfied with customer reactions to its attempt to offer passengers their choice of cold deli sandwiches instead of the more traditional airplane meal. Its intent was to provide passengers with better food. Passengers saw the move as another way Delta was trying to skimp on service and save money. When trying to deliver service quality, Delta forgot to: A. Consider customer requirements B. Create a service blueprint C. Offer relevant employee training D. Consider the services marketing triangle E. Estimate production/quality tradeoffs

A. Consider customer requirements

In order to have a greater likelihood for ultimate success, who should be involved in the new service development process?

A. Contact employees and customers

8. (p. 517) After moving to Orlando, Florida, Kaori opened both a savings and a checking account at Barnett Bank. Although Barnett had a higher minimum balance requirement for free checking than the other two banks she considered, Kaori chose Barnett because it was located closer to her home than the other banks. Kaori would rather expend other costs than _____ costs. A. Convenience B. Monetary C. Psychological D. Time E. Search

A. Convenience

26. (p. 191) Salespeople for college texts call on college instructors to sell them on using a particular text for their classes. Improvements in efficiency have led some publishers to stop making sales calls altogether on smaller colleges. It is a much better use of the sales force's time to call on schools with large classes and big adoption rates. From the customer's point of view, this application of the profitability tier:

A. Could be seen as demeaning

21. (p. 189) Since service companies have determined they need not serve all customers equally well, they have divided their target markets according to:

A. Current and/or future profitability

3. (p. 265-266) Simone called the Puppy Heaven Kennel to reserve a kennel for her German shepherd while she went on vacation. In terms of the service blueprint, Simone's telephone call is an example of a(n):

A. Customer action

38. (p. 265-266) A company that was involved in event planning noted how many couples had a wedding catastrophe of some kind. As a result, it abandoned event planning and began offering wedding insurance to protect couples from financial losses due to weather emergencies, stolen wedding rings, damaged wedding dresses, etc. In terms of the service blueprint, the couple that decided to buy insurance to protect themselves if the guests at their reception got food poisoning is part of which section of the service blueprint?

A. Customer actions

32. (p. 429) Heffner Funeral Homes uses the Internet to sell some 300 different products including jewelry, urns, coffins and funeral memorabilia as well as a complete line of funeral services. How would the company benefit from using electronic channels? A. Customer convenience B. The ability to ignore changes in consumer behavior C. The absence of price competition D. A high degree of consistency due to low customer involvement E. Guaranteed privacy

A. Customer convenience

29. (p. 399) Ravela does not want to use the self-checkout lane at the supermarket because it "just seems too complicated". What factor primarily has determined her reluctance to try the new self-service technology? A. Customer readiness B. Capability management C. Emotional resources D. The empowerment of technology E. Personal autonomy

A. Customer readiness

11. (p. 179) A primary goal of firms at the friendship stage of the relationship is:

A. Customer retention

44. Which of the following statements is a criterion for selecting behaviors and actions for customer-defined service standards? A. Customer-defined standards should be based on behaviors and actions that are very important to customers B. Customer-defined standards should be challenging even if that means they are unrealistic C. Customer-defined standards should be reactive rather than predictive D. Customer-defined standards should be established for behaviors and actions that at the present time cannot be improved E. All of the above are criteria for selecting behaviors and actions for customer-defined service standards

A. Customer-defined standards should be based on behaviors and actions that are very important to customers

47. The first step in conducting an internal customer service audit is to: A. Define customers B. Engage in brainstorming and other forms of idea generation C. Create a new servicescape D. Define employee quality E. Eliminate all conflict

A. Define customers

11. Which of the following is NOT an example of an effective formal service goal? A. Deliver products quickly B. Call the customer back within 2 hours C. Replace lost credit cards within 48 hours 98 percent of the time D. Answer phones within 3 rings E. Connect new cable service on the date promised

A. Deliver products quickly

24. (p. 524) Which of the following approaches to pricing considers that customers may judge quality on the basis of pace? A. Demand-based pricing B. Profit-based pricing C. Competition-based pricing D. Supply-based pricing E. Cost-based pricing

A. Demand-based pricing

30. (p. 451, 453) Peak demand for rooms at the Ritz-Carlton Hotel, an upscale hotel in Phoenix, Arizona, occurs during the tourist season from November through mid-April. During the summer slow season when demand for rooms drops considerably, the Ritz-Carlton encourages local Phoenix and Tucson residents to experience the beauty of the hotel on weekends by offering attractively priced weekend packages. The Ritz-Carlton uses which of the following strategies for shifting demand to match capacity? A. Differentiate on price B. Modify timing and location of service delivery C. Vary the service offering D. Stretch capacity E. Communicate with customers

A. Differentiate on price

31. (p. 451, 453) If you buy your tickets early for a live theater production in Rome, you'll pay about 30 percent less, than if you buy them on the day of the show. The lower price helps the early sale of tickets and guarantees the audience will be large enough to justify the cost and effort put into the production. What strategy does the theater company use to shift demand for theater tickets? A. Differentiate on price B. Modify timing and location of service delivery C. Vary the service offering D. Stretch capacity E. Communicate with customers

A. Differentiate on price

45. (p. 266) After a service firm maps the service process from the customer's point of view, the next step in building a service blueprint is to:

A. Draw the lines of interaction and visibility

43. (p. 236) When Shealah hired the housecleaning service, she asked them to use her hypoallergenic cleaning supplies. Instead the workers used their own and Shealah had to lose a day from work because of her allergic reaction to the smell of the cleaners. When Shealah looked at the service guarantee that the workers had left, she found that she could get a reimbursement for all of her out-of-pocket expenses if she had a notarized letter from her doctor describing her condition and her reaction, an affidavit from the workers that they had used the wrong cleaners and another notarized statement that she would not have become ill if the workers had used the right cleaners. This service guarantee is ineffective because it is NOT:

A. Easy to invoke and collect

17. (p. 186) Which of the following is one of the ways an organization benefits from maintaining and developing a loyal customer base?

A. Employee retention

Landis was pleasantly surprised to find a "No Smoking" sign at his favorite pub. He had to limit his visits because he is allergic to cigarette smoke. Now he can visit as often and for as long as he likes. Landis was afraid the sign might hurt the pub's business, but he was pleased to discover how many of the pub's regulars felt the same way he did. The "No Smoking" sign served to: A. Enhance customer compatibility B. Decrease customer participation C. Turn the customers of the pub into productive resources D. Allow the customer to co-create the service E. Maintain the drama metaphor

A. Enhance customer compatibility

15. (p. 445) The primary constraint on service production for an air freight delivery service is: A. Equipment B. Labor C. Money D. Facilities E. Time

A. Equipment

43. (p. 467) The appliance store told the home owner that it would deliver her new stove on Monday between 4 p.m. and 5 p.m. Obviously, the store is uses which of the following waiting line strategies? A. Establishing a reservation process B. Making waiting fun or at least tolerable C. Expanding waiting room capacity D. Differentiating waiting customers E. Employing operational logic

A. Establishing a reservation process

23. (p. 395, 397) Lois Kay is an experienced baker. She has decided to bake and decorate her daughter's wedding cake instead of ordering one at the bakery. Her decision to bake her daughter's cake herself was based on this knowledge and the joy of seeing her daughter's face as she first looks at the wedding cake made by her mother. Kay's decision to produce the service herself was primarily guided by: A. Expertise capacity and psychic rewards B. Economic rewards and trust C. Control and empathy D. Resource capacity and economic rewards E. Economic rewards and psychic rewards

A. Expertise capacity and psychic rewards

3. (p. 480) Which of the following statements about communications and the services marketing triangle is true? A. External marketing communications include advertising, public relations, personal selling and sales promotions B. The apexes of the services marketing triangle are customers, employees and the company C. Interactive marketing communications are exemplified by vertical and horizontal communications D. All communications methods that relate to the services marketing triangle are either verbal or print E. Service encounters are an example of internal marketing

A. External marketing communications include advertising, public relations, personal selling and sales promotions

5. According to the services marketing triangle, which of the following lists the types of marketing that must be successfully carried out in order for a service organization to succeed? A. External, internal and interactive marketing B. Strategic, tactical and operational marketing C. Lower-level, middle-level and top-level marketing D. Functional, hierarchical and, relationship marketing E. Relationship, interactive and transactional marketing

A. External, internal and interactive marketing

34. (p. 194) Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Marriott is using _____ to implement its retention strategy.

A. Financial bonds

Members of Sam Goody's Replay Frequent Buyer Program receive a $15 gift certificate for every $150 in purchases made at Sam Goody, as well as a coupon each month for a 20-25 percent discount on the purchase of an unlimited number of CDs and/or cassettes from a specific music category. Sam Goody's Replay Frequent Buyer Program uses _____ to implement its retention strategy.

A. Financial bonds

6. (p. 219) A consumer is more likely to complain when the:

A. Flowers he ordered for his wife's birthday are not delivered

10. (p. 179) In which evolutionary stage of customer relationships is customer retention fostered by a service provider consistently provides customers with quality goods and services as well as good value over time?

A. Friendship

29. First National Bank of Chicago tracks 650 service quality measures relating to timely, accurate and responsive service. The measures include speed of telephone answering, number of abandoned calls, turnaround time on inquiries and the speed at which the bank transfers securities. The measures used by First Bank of Chicago are _____ measurements. A. Hard B. Basic C. Formal D. Tangible E. Informal

A. Hard

43. One of the potential costs in employee empowerment is: A. Higher labor costs B. Slower online responses to dissatisfied customers during service recovery C. Slower online responses to customers during service delivery D. Increased employee dissatisfaction E. Increased customer dissatisfaction

A. Higher labor costs

10. (p. 484-485) 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. Inadequate management of customer expectations

34. (p. 429) Heffner Funeral Homes uses the Internet to sell some 300 different products including jewelry, urns, coffins and funeral memorabilia as well as a complete line of funeral services. How would the use of electronic channels challenge the funeral home chain? A. Price competition B. Low customer involvement C. Slow customer feedback D. High costs E. Inability to customize services

A. Price competition

9. (p. 484-485) 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. Inadequate management of customer expectations

7. (p. 484-485) 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. Inadequate management of service promises

8. (p. 484-485) When Santina 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 Santina to be dissatisfied with Sears's delivery service. Santina'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. Inadequate management of service promises

16. (p. 30) Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining?

A. Increasing use of technology is perceived by many customers as less service because there is no human interaction

20. (p. 20) The characteristic of a service that means that it cannot be seen, felt, tasted or touched is:

A. Intangibility

21. (p. 20) On a recent visit to The Home Depot store, a sales associate greeted Gigi when she entered the store, helped her locate the items she needed to repair her gutters and suggested how she could prevent gutter problems in the future. The assistance provided by the sales associate illustrates the ______ of services.

A. Intangibility

22. (p. 20) In India weddings are timed to occur when Venus is in the ascendant and Jupiter is strong. This day is deemed lucky. In 2005, almost 15, 000 couples in New Delhi had their wedding on December 25, the day astrologers announced would be the best day for a wedding. The service provided by the astrologers is an excellent illustration of the _____ of services.

A. Intangibility

23. (p. 20) Last November, Andrew and Jana went to talk to a wedding consultant about planning their June wedding. The consultant congratulated them on thinking ahead and then began to ask them questions about what kind of wedding they wanted. She gave them a book that contained all the information they needed to plan a memorable wedding. They met with the consultant regularly to talk about how the plans were coming and made more decisions with her help. The consultant helped them with everything from invitations to wedding reception favors. She even went with Jana to select her wedding gown and her bridesmaids' gowns. The sort of assistance provided by the wedding consultant illustrates the _____ of services.

A. Intangibility

20. (p. 490) 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. Integrate the service dimensions

16. Cadet Uniform Services, a Canadian company that rents uniforms to major corporations, requires its new delivery drivers to go through a year-long training regimen before they receive their own delivery routes. First, new drivers go through three months of training to learn the whole scope of the business before setting foot in a delivery truck. Then they ride with experienced delivery drivers for nine months to watch how they interact with customers. According to the services marketing triangle, Cadet's training program is a form of _____ marketing. A. Internal B. Hierarchical C. Interactive D. Integrated E. External

A. Internal

3. (p. 443) The fundamental issue underlying supply and demand management in services is the lack of _____ capability. A. Inventory B. Customization C. Automation D. Standardization E. Transportation

A. Inventory

14. (p. 221) A consumer who is more likely to engage in negative word-of-mouth than any other type of consumer is called a(n):

A. Irate

3. Which of the following is an element of the servicescape for the Fred Astaire Dance Studio? A. Its parquet dance floor B. Its ad in the Atlanta Journal-Constitution C. How experienced its dance instructors are D. Business cards handed out by instructors E. A brochure describing its dance lessons and its various payment plans

A. Its parquet dance floor

1. (p. 442) Which of the following factors in managing demand and capacity does NOT lead to provider gap 3, failure to deliver what was designed and specified? A. Lack of communication between contact personnel and company management B. Under use of service capacity C. Failure to smooth the peaks and valleys of demand D. Overuse of service capacity E. The attraction of an inappropriate customer mix in an effort to build demand

A. Lack of communication between contact personnel and company management

4. (p. 443) Harris Woodard has purchased a franchise business called Like New Windshields, a company that repairs cracked and pitted vehicle windshields. As a franchisee, he will come to your home or office to repair a damaged windshield. His goal is to make sure that he has enough customers without having more than he can handle efficiently. Which of the following is going to make it difficult for him to accomplish his goal? A. Lack of inventory capability B. Compatibility management C. Customer heterogeneity D. Franchise empowerment E. Fluctuating equilibrium points

A. Lack of inventory capability

19. (p. 187) The _____ of a customer is the increased value or profit that accrues for each additional customer who remains loyal to a company rather than defecting to the competition.

A. Lifetime value

28. (p. 492) 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: A. Managing its service promises B. Resetting customer expectations C. Improving customer education D. Managing horizontal communications E. Educating the customer

A. Managing its service promises

33. (p. 495-499) 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 its service promises B. Resetting customer expectations C. Precisely matching service delivery with service promise D. Managing its horizontal communications E. Under-promising and over-delivering

A. Managing its service promises

34. (p. 495-499) Parking for travelers flying out of Hartsfield-Jackson International Airport in Atlanta is difficult for those who have the time to look. For those who arrive at the airport with only time enough to catch their flight, parking has been 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 is: A. Managing service promises B. Lowering customer expectations C. Communicating with low-involvement customers D. Managing horizontal communications E. Managing interactive marketing communications

A. Managing service promises

41. (p. 533-534) What two pricing strategies are most commonly used when the customer defines value as quality for the price paid? A. Market segmentation pricing and value pricing B. Psychological pricing and value pricing C. Penetration pricing and value pricing D. Discounting and value pricing E. Market segmentation pricing and price skimming

A. Market segmentation pricing and value pricing

41. (p. 266) When a guest staying at the Marriott Marquis in New York calls room service to order dinner, which of the following is an example of a backstage contact employee action?

A. Marriott food service order clerk takes guest's order

42. (p. 196) Moran Dry Cleaners operates in a medium-sized community. Its customers all live within a 20-mile radius of the cleaners. Moran provides its regular customers with several alternative pickup and delivery schedules rather than a single weekly pickup and delivery. It will pickup clothes in the morning and deliver them back clean in the afternoon if that is what a customer needs. Moran has found the increase in its total number of customers because of this service more than pays its additional operation expenses. This pickup and delivery system is an example of:

A. Mass customization

43. (p. 196) The Marriott Hotel introduced Express Check-Out service in response to customer frustration at waiting in long checkout lines. A guest's credit card receipt and hotel bill is left under his or her room door the morning of his or her scheduled departure. After checking the accuracy of the bill the guest simply leaves his or her room key in the room or in one of the key drop boxes at the front desk before leaving the hotel. Marriott's Express Check-Out allows the hotel to engage in:

A. Mass customization

49. (p. 469) New Bedford College is a small institution that has not yet adopted online registrations. When it's time to pay for classes, its students can pick from one of three lines. Some lines seem to move faster than others, but all allow the students to accomplish the same goal-paying their tuition and fees. Which of the following queue configurations does New Bedford College use? A. Multiple queue B. Double queue C. Take-a-number queue D. Queue with barriers E. Roundabout queue

A. Multiple queue

33. (p. 529) Bell Atlantic NYNEX Mobile introduced its Talk Along portable phone service at a price of $14.99 a month. Bell Atlantic is using a(n) _____ pricing strategy. A. Odd B. Synchro- C. Discounting D. Prestige E. Complementary

A. Odd

42. (p. 235) Kelso Massage Therapy promises its clients that there wait for a massage will be less than fifteen minutes or the massage is free. Which service recovery strategy does Kelso Massage Therapy use?

A. Offering a guarantee

17. The restrooms at the Merritt Coliseum, a venue for Shania Twain, Seal and Chris Rock concerts, serve what servicescape role? A. Package B. Boundary spanner C. Differentiator D. Facilitator E. Socializer

A. Package

50. (p. 439) A(n) _____ strategy capitalizes on the skills and strengths of both service principal and service intermediary and engenders a sense of trust that improves the relationship. A. Partnering B. Venture C. Control D. Empowerment E. Proactive

A. Partnering

48. (p. 438) Which of the following intermediary-management strategies has the highest potential to be effective? A. Partnering strategy B. Venture strategy C. Control strategy D. Empowerment strategy E. Proactive strategy

A. Partnering strategy

15. All of the following could be classified as internal customers of a hospital EXCEPT: A. Patients B. Doctors C. Nurses D. Bookkeepers who work in the hospital's billing office E. Anesthesiologists

A. Patients

5. (p. 387) Patients sitting in dental chairs are part of the _____ element of the services marketing mix. A. People B. Product C. Place D. Promotion E. Physical evidence

A. People

26. When a lawyer feels a conflict between what she is asked to do and her own personality, orientation or values she is experiencing _____ conflict. A. Person/role B. Vertical C. Organization/client D. Inter-client E. Horizontal

A. Person/role

27. Which type of conflict results from the fact that Sullins Cleaning requires its employees to wear uniforms? A. Person/role B. Vertical C. Organization/client D. Inter-client E. Horizontal

A. Person/role

44. (p. 24) Which of the following is an example of the people element of an airline company's services marketing mix?

A. Pilots B. Baggage handlers C. Customers D. Flight attendants E. All of the above E

41. After determining that reliability was a major concern for its customers, a pest control company translated customer expectations into behaviors and actions for its monthly sprayings of homes and businesses. Having accomplished that, the pest control company needs next to: A. Prioritize the behaviors and actions for which customer-defined standards will be set B. Develop feedback mechanisms for measurement of standards C. Decide whether hard or soft standards are appropriate D. Establish measures and target levels for standards E. Track behaviors and actions against existing standards

A. Prioritize the behaviors and actions for which customer-defined standards will be set

46. (p. 24) When Alicia and Jordan dined at Formia Ristorante, a contemporary Italian restaurant in New Jersey, they both enjoyed Formia's coy, smart and embracing atmosphere. Formia creates this atmosphere with a single large dining room that measures 20 by 60 feet and contains 14 roomy tables. Ceiling fans slowly swirl as candlelight dances across the tables that are attentively cared for by servers. Vertical pink and white florid patterns emerge from old wainscoting. Finally, Formia's two-page menu offers guests a range of pasta, chicken, veal and seafood entrees, in addition to nightly specials that are handwritten and presented on large index cards. Alicia and Jordan experienced the _____ element of Formia Ristorante's services marketing mix.

A. Product B. Production C. Process D. Place E. Physical evidence E

42. (p. 23) Which of the following is NOT an element of the traditional marketing mix?

A. Production

5. (p. 419) Which of the following functions do service intermediaries typically perform for service principal? A. Provide time and place convenience for the customer B. Co-produce the service C. Make services locally available D. As a link between the brand and the customer E. All of the above

A. Provide time and place convenience for the customer

18. (p. 423) Which of the following is NOT a franchising challenge that a franchiser might have to cope with? A. Providing financing for franchisees B. The motivation of franchisees C. The control of customer relationships by the intermediary rather than the service principal D. Inconsistent quality which can undermine the company name E. Highly publicized disputes between franchisees and franchisers

A. Providing financing for franchisees

23. (p. 448) Nine months after the terrorists' attacks on the World Trade Center and the Pentagon, maternity hospitals were filled to capacity as people who had been waiting for the right time to have children decided that there was no time like the present. The maternity hospitals experienced a(n): A. Random demand fluctuation B. Relative demand shift C. Predictable demand cycle D. Vertical demand configuration E. Organized demand pattern

A. Random demand fluctuation

24. (p. 448) The 2005 tsunami in Southeast Asia caused: A. Random demand fluctuations B. Relative demand shifts C. Predictable demand cycles D. Vertical demand configurations E. Organized demand patterns

A. Random demand fluctuations

28. (p. 425) Which of the following is a challenge experienced by service providers when delivering services through agents and brokers? A. Representation of multiple service providers B. High selling and distribution costs C. Limited knowledge of local markets D. Narrow geographical representation E. All of the above

A. Representation of multiple service providers

40. (p. 407) When Alicia went to talk to a cleaning service about having the carpets in her apartment shampooed, she was told that if she would rent the service's equipment and do it herself, it would cost her 50 percent less and be done much sooner because the service's personnel were booked solid for the next two weeks. The cleaning service is: A. Rewarding customers B. Positioning customers C. Managing the customer mix D. Defining customers' jobs E. Educating customers

A. Rewarding customers

50. (p. 413) A service station that offers customers lower gasoline prices at a self-service pump compared to the prices at a full-service pump is: A. Rewarding customers B. Positioning customers C. Managing the customer mix D. Defining customers' jobs E. Educating customers

A. Rewarding customers

39. (p. 429) Many companies send important proprietary data to their various subsidiaries through the Internet. Someone who wanted to capture this data as it moves through electronic channels can use sniffing software. This is only one of many means through which unauthorized people can get access to data. This unauthorized interception of data is an example of which of the following challenges associated with electronic distribution of services? A. Security concerns B. The passivity of online users C. Slow customer feedback D. The inability to customize highly standardized electronic services E. The need to change consumer behavior

A. Security concerns

7. A convenience store is a(n) _____ environment. A. Self-service B. Vertical service C. Remote service D. Flexible service E. Interpersonal services

A. Self-service

28. (p. 398) Hyatt Hotels has installed automated check-in machines at hotels in Atlanta and Chicago. To check in and get a room key, guests insert a credit card into the machine. Hyatt is experimenting with the use of: A. Self-service technologies B. Functional symbols C. Robotics D. Compatibility management E. Output dimensions

A. Self-service technologies

2. (p. 4) The maintenance contract offered by Sears on its Kenmore refrigerators, dishwashers and microwaves is an example of a(n) _______.

A. Service

3. (p. 4) When Heather goes to the local gym, she has a personal trainer who helps make sure she is using the equipment correctly. The personal trainer is an example of a(n):

A. Service

6. (p. 486) The primary goal of integrated services marketing communications (ISMC) is: A. Service delivery equal to or greater than promised B. Lowered customer expectations and higher customer perceptions C. Servicescape omniscience D. Homogeneous services E. Functional internal marketing channels

A. Service delivery equal to or greater than promised

17. According to the service profit chain: A. There is a direct relationship between employee satisfaction and customer loyalty B. Internal marketing is more important than either interactive or external marketing C. The strategies for internal, external and interactive marketing are equally important D. Customer loyalty is unrelated to internal marketing E. Reliability is the most important of all the desired service characteristics

A. There is a direct relationship between employee satisfaction and customer loyalty

24. Canadian Airline did market research to determine the expectations of business travelers-its target market. It learned business travelers don't view air travel as a simple product but as a inconsistently performed sequential process that includes making reservations, checking-in, waiting, boarding, in-flight time and baggage pick-up. Canadian Airline diagnosed that a problem existed with its: A. Service encounter sequence B. Internal performance requirement C. Diagnostic capabilities D. Overall service quality perception E. Service dimension gap

A. Service encounter sequence

39. Spatial layout and functionality increase in importance when: A. Service is provided in a self-service environment B. Customers are under no time pressure C. Service is provided in a remote environment D. Photographic blueprints are used to assess the service process E. Service is provided in an interpersonal services environment

A. Service is provided in a self-service environment

50. American Express's "Service Tracking Report" systematically measures both customer satisfaction and employee performance worldwide. Compiled on a monthly basis, the document uses statistics to measure the performance of business units throughout the world against more than 100 service quality factors related to their customers' three major service dimensions-responsiveness, timeliness and accuracy. American Express's "Service Tracking Report" is a(n): A. Service performance index B. Quality improvement measure C. Total quality management assessment D. Customer service indicator E. Internal-external service control benchmark

A. Service performance index

1. (p. 214) _____ describes what the owner of the rehabilitation center did when he gave a customer who was complaining that his therapist was an hour late for their appointment a credit for one free hour of therapy.

A. Service recovery

2. (p. 213) ________ refers to the actions taken by an organization in response to a service failure.

A. Service recovery

An ad in a dental journal noted that if dentists would bulk buy a flowable composite used to build bridges and caps, the dentist purchasing the composite would receive Delta Air Lines Sky Miles to add to his or her existing Sky Miles. Both companies, the composite marketer and Delta, benefit from this offer. By allowing the composite marketer to offer free Sky Miles to customers, Delta Air Lines is further implementing its _____ growth strategy.

A. Share building

49. (p. 199) New Bedford College has a two-year masters degree program designed for special education teachers. Thirty-five students enter the program each fall. The education department requires that the 35 students take the same classes. Classes are made available in sequence. If Beth wanted to take only one special education class to get her a teaching certificate in learning disabilities (LD), she would be unable to because she would not be able to participate in any carry-over projects from previous classes (This is a common teaching tool for the New Bedford education department faculty.). New Bedford College will avoid setting up a relationship with Beth because:

A. She is in the wrong segment

29. Addison White is an event planner who specializes in family reunions. He creates situations in which family members can visit, share memories and get to know each other more intimately. He may rent the family a large house in the mountains or schedule them for a picnic in a national forest. White relies on ______ behavior to make the reunions a success. A. Social interaction B. Cognitive C. Avoidance D. Ergonomic E. Holistic

A. Social interaction

30. Some retailers have feared that their customers will like the convenience of Internet shopping and quit shopping at their stores. To combat this, many mall retailers have tried to create a shopping experience that is entertaining because they believe that Internet retail sites are not designed to be fun. That's why you'll see fashion shows, magic acts, local singers and children's art exhibits at malls. The malls are encouraging _____ behavior. A. Social interaction B. Cognitive C. Avoidance D. Ergonomic E. Holistic

A. Social interaction

15. Which of the following service providers faces the most complex servicescape decisions? A. St Jude's Children's Hospital B. Six Flags over Texas C. Carolina Power, an electricity provider D. Ann's Fabric Store E. A touring theater company

A. St Jude's Children's Hospital

24. At Chessmen, an upscale men's clothing store, classical music plays softly in the background, while the store's fragrance-a blend of oak, leather and fine tobacco wafts from carefully placed heat-sensitive pellets. The music and fragrance at the Chessmen correspond to the _____ in the stimulus-organism-response model. A. Stimulus B. Service motivator C. Response D. Referent E. Organism

A. Stimulus

6. Standardization of services occurs through: A. Substitution of technology for personal contact and human effort B. Organizational flattening C. Employee encroachment D. Division of labor and specialization E. Autonomous management

A. Substitution of technology for personal contact and human effort

30. (p. 265) A service blueprint depicts:

A. The process of service delivery

43. (p. 408) In which of the following situations will compatibility management be of little or no importance? A. The service environment attracts a homogeneous customer mix B. Customers are in close proximity to each other C. The core service is compatibility D. Customers must wait for the service E. Customers engage in numerous and varied activities

A. The service environment attracts a homogeneous customer mix

46. (p. 503-504) 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. Services for which customers must be told that the service has been performed have which of the following characteristics? A. The service is invisible B. No part of the service offering is outsourced C. The customer can easily evaluate the effectiveness of the service D. The user of the service and the decision maker for the service are the same individual E. The service is visible

A. The service is invisible

14. (p. 486) 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 supply and demand of the service are not synchronized

49. (p. 505) 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. Vertical communications

10. (p. 425) How do company-owned service providers like Waffle House restaurants differ from franchise-owned service providers like Wendy's restaurants? A. Waffle House has complete control over customer relationships and Wendy's does not B. Waffle House is able to create completely homogeneous services and Wendy's cannot C. Inventory control is more efficient at Waffle Houses than at Wendy's D. Product intangibility is less acute at Waffle House than at Wendy's E. Employee empowerment is easier at Wendy's than at Waffle House

A. Waffle House has complete control over customer relationships and Wendy's does not

37. (p. 429) Wal-Mart developed a web site (walmart.com) that most consumers were unaware of. To entice customers to visit its web site, Wal-Mart sold roses for $29 a dozen the weeks prior to Mother's Day. This price included delivery and was considerably less than what was offered by most other flower retailers. Why did Wal-Mart offer this great deal? A. Wal-Mart realized customers are active and need a reason to visit a web site B. Wal-Mart did not want to engage in price competition at its traditional stores C. Wal-Mart wanted quick customer feedback on how people rated its web site D. Wal-Mart wanted to take advantage of how consistent service offerings become with customer involvement E. Customers are passive and will always locate the best deals

A. Wal-Mart realized customers are active and need a reason to visit a web site

45. (p. 467-468) Which of the following is NOT a base for differentiating waiting customers? A. Willingness to perform service role B. Importance of the customer C. Duration of the service transaction D. Urgency of the job E. Payment of a premium price

A. Willingness to perform service role

22. (p. 189) According to the 80/20 rule:

B. 20 percent of a company's customers produce 80 percent of the company's profit

45. (p. 503-504) 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. Which of the following services would need to educate its customers by telling them about the services provided in user friendly terms? A. Pet grooming B. A fluoride treatment given to a child C. A full-body massage D. Car insurance E. Gas station

B. A fluoride treatment given to a child

46. (p. 238) Which of the following statements about the benefits of service guarantees is true?

B. A good guarantee forces the company to focus on its customers

22. (p. 424) Which of the following statements about agents is true? A. Agents can be classified as either facilitating agents or end-user agents B. Agents work for their principals continuously, rather that just for a single deal C. Agents take title to the goods they sell D. Agents perform the same services as brokers E. Agents are accurately described by all of the above

B. Agents work for their principals continuously, rather that just for a single deal

26. Allstate changed its insurance billing procedure after research revealed customers wanted flexible payment plans and billing information presented in an easy-to-read format. The procedure, called the Allstate Flexible Billing Option, provides three different payment options: 1) pay in full, 2) pay the minimum amount due or 3) pay less than the full amount, but more than the minimum. Customers can choose a plan to best meet their budget. The customer requirement for a flexible payment plan is an example of a(n) _____ that is relevant to customer-defined standards. A. Attribute B. Behavior and action C. General concept D. Measure E. Value dimension

B. Behavior and action

27. The Boston Symphony Orchestra wanted to determine why its number of season ticket holders was declining. It asked patrons not only about the concerts themselves but also about each step in the purchasing process. As a result of customer input, it greatly simplified its online ticket sales site and season ticket sales have increased. Customers' request for a simplified web site where tickets could be easily purchased is an example of a(n) _____ that is relevant to customer-defined standards. A. Attribute B. Behavior and action C. General concept D. Measure E. Value dimension

B. Behavior and action

16. The servicescape plays all of the following roles EXCEPT: A. Package B. Boundary spanner C. Differentiator D. Facilitator E. Socializer

B. Boundary spanner

During which stage of the new-service development process are demand analysis, revenue projections, cost analyses and operational feasibility assessed?

B. Business analysis

41. (p. 408) The process of managing multiple customer segments is called _____ management. A. Relationship B. Compatibility C. Demand mix D. Position E. Targeted

B. Compatibility

17. (p. 394-395) Amber and Joyce are both new mothers who are concerned about child-proofing their homes to keep their toddlers safe. Amber went on the Internet and found a Web site that told her exactly what she should do to make her house safe. Joyce called Baby Safe, an agency that will send an expert in childcare to her home to conduct an individualized survey of the home and advise on dangerous situations. Which of the service delivery roles did Amber perform? A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

B. Competitor

18. (p. 394-395) Lois Kay is an experienced baker. She has decided to bake and decorate her daughter's wedding cake instead of ordering one at the bakery. What service delivery role is Kay performing? A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

B. Competitor

19. (p. 394-395) Customers are viewed as _____ when they produce a service for themselves. A. Customer mix managers B. Competitors C. Productive resources D. Contributors to quality and satisfaction E. Recruiters

B. Competitor

20. (p. 394-397) Instead of having a hair stylist color her hair, Chandris prefers to dye her own hair. Which of the following roles is Chandris performing? A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

B. Competitor

15. (p. 183) Sondra has been having her haircut by Logan, a hairstylist at Dazzles, for five years. She has continued to use the same hairstylist even though the price of a haircut at Dazzles is $10 higher than at competing hair salons. Logan does an excellent job cutting her hair and staying up to date on the latest hairstyles and hair care products. Sondra realizes _____ benefits from her relationship with Logan.

B. Confidence

32. (p. 497-499) 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. Coordinate its external communications

12. (p. 519-520) To calculate what it charges a client, a detective agency charges $200 a day direct costs plus an additional $50 per day to pay for office expenses, licenses and other fixed costs and fifteen percent of full costs for the profit margin. What type of pricing strategy is being used by the detective agency? A. Contingency B. Cost-based C. Perceived value D. Fee for service E. Going-rate

B. Cost-based

38. (p. 502) Cable TV companies that offer subscribers different programming packages are: A. Managing service promises B. Creating tiered-value service offerings C. Communicating with customers D. Managing horizontal communications E. Exceeding customer expectations

B. Creating tiered-value service offerings

39. (p. 502) Internet service providers that offer subscribers their choice of hook-up speed and type of spam blockers are: A. Managing service promises B. Creating tiered-value service offerings C. Communicating with customers D. Managing horizontal communications E. Exceeding customer expectations

B. Creating tiered-value service offerings

37. (p. 231-232) Roger Pack is a breeder of Pomeranian dogs. He has used the same grooming salon for his dogs for the last 10 years. When a new groomer accidentally trimmed too much off of one of his show dog's hind quarters, he was upset. He decided not to make a big deal of the event because of his long-term dealings with the salon owner. Which service recovery strategy is being used in this example?

B. Cultivate relationships with customers

27. (p. 425) There are many sites on the Internet where consumers can buy plane tickets at a reduced rate. Travelocity is the only Internet site where consumers can go to purchase airplane tickets, hotel reservations, amusement park tickets and admission to other tourist places. Consumers get to pick from a wide array of services. What benefit does Travelocity offer to travelers? A. Knowledge of local markets B. Customer choice C. Pricing control D. Narrow representation E. All of the above

B. Customer choice

39. AT&T Universal Card Services (USC) gives its employees the right to grant credit lines to customers and adjust customers' bills without management approval. By giving its employees the authority to make decisions that will benefit its customers, USC is: A. Including employees in the company's vision B. Empowering employees C. Measuring and rewarding strong service performers D. Promoting teamwork E. Enveloping service-oriented internal processes

B. Empowering employees

40. At Target, a discount store chain, if the shelf price is not on an item, checkout clerks can take the customer's word for prices up to $20. The customer does not have to wait for the clerk to check the price with someone on the floor. By giving its employees the authority to make decisions on the customer's behalf, Target is: A. Including employees in the company vision B. Empowering employees C. Measuring and rewarding strong service performers D. Promoting teamwork E. Developing service-oriented internal processes

B. Empowering employees

39. (p. 532-533) A prestige pricing strategy is appropriate when customers define value as: A. All that I get for all that I give B. Everything I want in a service C. Low price D. Reliable service E. The quality I get for the price I pay

B. Everything I want in a service

10. _____ customers are those individuals and businesses who buy goods and services from an organization. A. Internal B. External C. Critical D. Functional E. Interactive

B. External

18. Within the servicescape, the clearly displayed ENTRANCE and EXIT signs at a Jiffy-Lube 10-minute oil and lubrication service act as a: A. Package B. Facilitator C. Differentiator D. Boundary spanner E. Socializer

B. Facilitator

19. The receptionist at Dr. Smith's office is shut off from the waiting area by a glass partition. She opens a small door to communicate with patients. At times, it is difficult to get her attention. In this example, the servicescape plays a role as a negative. A. Package B. Facilitator C. Differentiator D. Boundary spanner E. Socializer

B. Facilitator

40. (p. 266) In a Federal Express overnight delivery service blueprint, which of the following is an example of an onstage contact employee action?

B. Federal Express driver picks up package from customer

22. (p. 394-395, 397) A consumer's decision to produce a service for himself or herself or contract externally for the service depends on a variety of factors. Which of the following is an example of a psychic reward a homeowner might receive if he decides to landscape his own yard instead of hiring a landscape design expert? A. Control over the landscaping process and the final results B. Feelings of pride and pleasure as he looks at the final results C. A high degree of confidence and trust in his own ability to landscape D. The skills and knowledge of a landscape artist E. Less expensive process than a professional landscaper would offer

B. Feelings of pride and pleasure as he looks at the final results

37. (p. 407) On site, customers require two kinds of orientation. They are place orientation and: A. Time orientation B. Function orientation C. Social orientation D. Cultural orientation E. Promotable orientation

B. Function orientation

8. (p. 177) How would you describe the sustainability of competitive advantage in the acquaintance stage of the customer relationship evolution?

B. Generally low with some variation on how the competition creates unique value

20. (p. 523) Which of the following is an example of competition-based pricing strategy? A. Cost-plus pricing B. Going-rate pricing C. Fee for service D. Synchronized pricing E. Simultaneous pricing

B. Going-rate pricing

7. (p. 4) Which of the following is an example of a tangible component provided by a hotel?

B. Guest rooms

13. Things that can be counted, timed or observed through audits are _____ customer-defined service standards. A. Formal B. Hard C. Informal D. Qualitative E. Responsive

B. Hard

14. One of the customer-defined standards at Delta Airlines is "the number of pieces of luggage damaged per day". "The number of pieces of luggage damaged per day" is a _____ customer-defined service standard. A. Formal B. Hard C. Informal D. Measurable E. Soft

B. Hard

25. (p. 21) The characteristic of a service that refers to differences in employees' performances is:

B. Heterogeneity

26. (p. 21) The first time Terry brought his car to Auto Lube to have the oil changed he was very satisfied with the service. The service manager consulted him several times while his car was being serviced, asked him if there were any problems with the car, recommended when additional services should be performed and answered questions directly and politely. However, when Terry went back to Auto Lube after three months to have his oil changed again, he was not satisfied with the service. The manager spoke to him only when he arrived and when he paid his bill. In addition, the manager was impatient and unfriendly during the interaction. Terry's experience at Auto Lube illustrates the _____ of services.

B. Heterogeneity

27. (p. 21) The first time Alexis went to take golf lessons, she had a golf pro who was very patient with her and who was able to pinpoint what she was doing wrong without making her feel uncoordinated. Her second golf lesson was not nearly as helpful. The golf pro who gave the lesson wanted Alexis to watch what he was doing and imitate his swing. He was unable to verbalize his instructions. Alexis's experience with the two golf instructors illustrates the _____ of service.

B. Heterogeneity

29. (p. 21) Weddings have always been lavish in India. Vandana Mohan is New Delhi's most successful wedding planner. The average New Delhi middle-class wedding in 2005 cost $20,000 with one recent wedding costing more than $10 million. Because budgets vary as do the desires to show off one's ability to engage in conspicuous consumption, Vandana Mohan sometimes finds it difficult to maintain his reputation for lavish and beautiful weddings. The problems associated with the planning of weddings illustrate the _____ characteristic

B. Heterogeneity

12. (p. 445) Which of the following organizations is more likely to experience wide fluctuations in demand? A. Dentist B. Hospital C. Carwash D. Stockbroker E. Interior decorator

B. Hospital

47. To make car maintenance service more tangible to consumers, Speedi-Lube has added a large diagram on one of the waiting room walls of its service centers that shows the underside of an automobile and identifies all of the lubrication points and exactly what work is being done to the car. As part of its physical evidence strategy, Speedi-Lube has: A. Mapped the physical evidence of the service B. Identified physical evidence opportunities C. Clarified the roles of the servicescape D. Recognized the strategic impact of physical evidence E. Updated and modernized its ambient evidence

B. Identified physical evidence opportunities

25. (p. 190-192) A company that uses a four-tier scheme to segment is customers by profitability:

B. Identifies customers who need different sorts of attention

The supervisor of a hotel housekeeping staff instructed a new housekeeper in the 45 ways a room must be cleaned if its tenant is leaving and not staying on for another night while inferring that a less thorough method was used if the guest were staying additional nights. The next month the supervisor wonders why this housekeeper is using many more packets of toiletries than the other housekeepers are. Also, it seems that it is taking the cleaner the same amount of time to clean a recently vacated room as it does to clean a room that will be housing the same people for another night. The best explanation for the supervisor's concern is _____, a risk incurred when services are described in words alone.

B. Incompleteness

31. (p. 400-401) The overall goal of a customer participation strategy is to: A. Determine optimal production levels B. Increase customer satisfaction and productivity C. Eliminate uncertainty due to customer actions D. Maximize word-of-mouth advertising E. Act socially responsible

B. Increase customer satisfaction and productivity

26. Browsing in a retail store is a(n): A. Internal response moderator B. Individual behavior C. Cognitive response D. Servicescape dimension E. Internal response

B. Individual behavior

12. In the services marketing triangle, _____ marketing refers to the service promise being delivered. A. Internal B. Interactive C. Strategic D. External E. Integrated

B. Interactive

13. When Abu went to open a bank account at First National Bank, he was greeted by a friendly account representative who explained the different types of savings and checking accounts, as well as other banking services (e.g., ATM, direct deposit, credit cards and consumer loans) that were available. According to the services marketing triangle, the actions by the account representative are a form of _____ marketing. A. Internal B. Interactive C. Integrated D. Strategic E. External

B. Interactive

8. Flying across the Pacific Ocean is an eight-hour trip that could be dreadful if you did not fly Singapore Airlines. One frequent flyer between the U.S. and Japan noted its "cabin crew do not give the usual impression of doing passengers a favor by taking care of them. In short, they make flying with Singapore Airlines a pleasure". In terms of the services marketing triangle, the cabin crew engages in _____ marketing. A. Internal B. Interactive C. Integrated D. External E. Transactional

B. Interactive

45. When customers complained employees at Safeway Stores were unfriendly, Safeway instituted its Superior Service program, which required all employees to greet and make eye contact with every customer, always smile and offer help whenever the customer appeared to need any. Employees were counseled, sent to training courses and terminated if they failed to follow these instructions. What mistake did Safeway make when it instituted this program? A. It did not want to use audits or operating data to see how well the new program was being implemented B. It chose a hard standard without seeing if a soft standard would be more appropriate C. It selected behavior/actions for service standards instead of attributes D. It did not establish a means of measuring performance against standards E. It chose a soft standard without seeing if a hard standard was more appropriate

B. It chose a hard standard without seeing if a soft standard would be more appropriate

16. (p. 445) The marketing department at a well-known university has 11 full-time faculty members and 3 part-time faculty members. There are more than 400 marketing majors at this university. The primary constraint for offering a course in direct mail marketing would more than likely be: A. Equipment B. Labor C. Money D. Facilities E. Time

B. Labor

8. (p. 444) Which of the following service businesses is LEAST likely to experience wide fluctuations in demand over time? A. Baptist Hospital emergency room B. Landmark Trust Bank C. McDonald's restaurants D. Houston Police Department E. Becker and Rosen Accounting Services

B. Landmark Trust Bank

14. Coinstar is a self-service coin-counter found in many supermarkets. You pour your coins in and the machine counts the coins and gives you bills for an 8.9 percent fee. In terms of servicescape complexity, a Coinstar machine is a(n) _____ service environment. A. Tangible B. Lean C. Flexible D. Open E. Elaborate

B. Lean

40. (p. 235) Kate recently learned to play golf. Last week, she decided to try a new golf course. She signed in to play and was given the keys to an electric golf cart without any instructions on how to operate it. After she drove the cart into a lake, she swore never to play golf again. According to Kate, "There was just too many things you had to know before you could become a real golfer". Two months later, the golf course manager called Kate and asked why she had not returned to play another game. Which service recovery strategy is being used in this example?

B. Learn from lost customers

39. (p. 232-233) When its sales were declining, Canadian Airline conducted a marketing survey to understand the expectations of the business traveler, its target market. It learned business travelers resent they are bosses in their own offices but are totally controlled by the airlines when they travel. Canadian Airline instituted gate-side business centers, shower facilities and massage chairs as well as continuous "power to the seat" for those who want to work on their laptops. By listening to its business travelers and providing the services they want, Canadian Airline's sales started increasing. What service recovery strategy did Canadian Airline use?

B. Learn from recovery experience

49. The final step in the process for developing customer-defined standards is to: A. Provide feedback about performance to employees B. Periodically update target levels and measures C. Track measures against standards D. Provide feedback about performance to customers E. Establish measures and target levels

B. Periodically update target levels and measures

38. (p. 232-233) By noting that a number of customers had complained about late bus arrivals at one particular stop, the bus line rerouted the bus away from a heavy traffic area. By increasing its miles traveled slightly, the bus was able to improve its arrival time substantially at the stop where it had formerly been perpetually late. Which service recovery strategy did the bus line use?

B. Learn from recovery experiences

48. (p. 468) A dental office that provides patients a variety of magazines to read and TV to watch while they are waiting is using which of the following waiting line strategies? A. Establishing a reservation process B. Making waiting fun or at least tolerable C. Expanding waiting room capacity D. Differentiating waiting customers E. Employing operational logic

B. Making waiting fun or at least tolerable

27. (p. 485) 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 use of this narrative is one way the chiropractor as a service provider can: A. Avoid having to educate customers B. Manage its service promises C. Encourage horizontal communications D. Avoid over-promising and under-delivering E. Manage its internal marketing communications

B. Manage its service promises

14. (p. 520-521) In which of the following service industries are you most likely to find the service provider using fee for service pricing? A. Apartment rental business B. Management consulting business C. Cleaning service industry D. Airline industry E. Internet service providers

B. Management consulting business

40. (p. 500-502) Creating tiered value service offerings is a strategy for: A. Managing service promises B. Managing customer expectations C. Communicating with customers D. Managing horizontal communications E. Exceeding customer expectations

B. Managing customer expectations

41. (p. 500-502) Because he has a busy practice, new patients for dentist Dr. Kirby Brown are told 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: A. Managing service promises B. Managing customer expectations C. Communicating with customers D. Managing horizontal communications E. Exceeding customer expectations

B. Managing customer expectations

In light of mounting competitive and cost-cutting pressures in the U.S., the need for health care services in Mexico and the potential of the Mexican economy, many U.S. hospitals are expanding their services to Mexico. For example, University Medical Center in Tucson, Arizona, provides continuing education classes for Mexican physicians, a toll-free telephone consultation line into Mexico and air transport service into Mexico. By expanding its services into Mexico, University Medical Center is using a _____ grown strategy

B. Market development

4. (p. 480) 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 three 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 services marketing mix

B. Marketing communications that were not integrated

29. (p. 451) The business program at Kennesaw State University offers classes that start as early as 6:30 a.m. and as late as 9:30 p.m. for its undergraduates. It also has Saturday and Sunday undergraduate classes in addition to its regular daytime program. KSU is using which of the following strategies for shifting demand to match capacity? A. Differentiate on price B. Modify timing and location of service delivery C. Vary the service offering D. Stretch capacity E. Communicate with customers

B. Modify timing and location of service delivery

To better target its business travelers, Canadian Airline has set up gate-side business centers for last-minute faxes and phone calls and massage chairs to knead out knotted muscles after a long commute. These gate-side business centers are an example of a:

B. New service for the currently served market

34. (p. 266) When Jessie wanted to talk to a therapist to learn how she could improve her relationship with her mother, she went to www.here2listen.com, an online counseling service that charges $1 per minute of counseling. The therapist she communicated with online is an example of a(n) _____ in the service blueprints for the web site.

B. Onstage contact employee action

When the character playing Alice in Wonderland signed autographs and had her picture taken with guests at Disneyworld, it was an example of a(n):

B. Onstage contact employee action

32. (p. 266) _____ are those steps and activities that contact employees, like desk clerks and receptionists, perform that are visible to customers.

B. Onstage contact employee actions

44. (p. 236) PSE&G is a utility company. One of its service guarantees is to keep all appointments. If PSE&G fails to keep an appointment mutually agreed upon by the customer and the company, PSE&G will credit residential customers' accounts by $25 and business customers' accounts by $100. The guarantee only applies to appointments for meter readings, account investigation, gas service, gas appliance repair and both electric and gas meter work scheduled three days in advance. Which of the following statements about PSE&G's service guarantee is FALSE? A. PSE&G's guarantee is easy to understand and communicate B. PSE&G's guarantee is unconditional C. PSE&G's guarantee is meaningful D. PSE&G's guarantee is easy to invoke E. PSE&G's guarantee is qualitative

B. PSE&G's guarantee is unconditional

9. (p. 220) A person who is a(n) _____ is a type of complainer who is unlikely to say anything to the service provider. This type of complainer often doubts the effectiveness of complaining because of a belief that the consequences will not merit the time and effort they will expend complaining.

B. Passive

29. (p. 489-490) 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". Which strategy for tangibilization is the Four Seasons Hotel using in this ad? A. Association B. Physical representation C. Intimidation D. Documentation E. Visualization

B. Physical representation

1. (p. 479) 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. Poorly perceived service

33. (p. 405) Which of the following is NOT a strategy for enhancing customer participation in the service process? A. Recruit customers B. Position customers C. Manage the customer mix D. Define customers' roles E. Educate customers

B. Position customers

In order to have a greater likelihood for ultimate success, who should be involved in the new service development process?

B. Precise

21. (p. 523) _____ occurs in markets with a high concentration of sellers. Any price offered by one company will be matched by its competitors in order to avoid giving the low-price seller a distinct advantage. A. Cost-plus pricing B. Price signaling C. Value pricing D. Price lining E. Price standardization

B. Price signaling

22. (p. 523) A day after Continental Airlines announced its new low fares for the autumn on travel from New York (i.e., Newark and LaGuardia Airports) to selected cities in the U.S., Canada, the Caribbean and Latin America, USAir and American Airlines matched Continental's fares. USAir and American Airlines are using a _____ strategy. A. Value pricing B. Price signaling C. Demand-based pricing D. Going-rate pricing E. Price trimming

B. Price signaling

43. (p. 532-536) Which of the following is NOT an example of an effective pricing strategy to use when the target market defines value as all that is received is all that is given? A. Price framing B. Price skimming C. Complementary pricing D. Results-based pricing E. Price bundling

B. Price skimming

1. (p. 417-418) The counterpart of the service _____ is the manufacturer of physical goods. A. Collaborator B. Principal C. Collaborator D. Creator E. Originator

B. Principal

2. (p. 417) Maaco Auto Painting and Bodyworks, a franchise business that specializes in repainting cars aged three to seven years old, restoring rust-damaged cars and repairing cars that have been involved in accidents, was founded in 1972 by Anthony A. Martino. Martino devised the methods, manuals and systems for Maaco via a pilot shop he opened in Wilmington, Delaware. Today, there are over 450 independently owned and operated Maaco franchises in 43 states and Canada. Anthony A. Martino, the founder of Maaco is the service: A. Contractor B. Principal C. Intermediary D. Collaborator E. Deliverer

B. Principal

19. (p. 223) In addition to compensation, customers expect _____. In other words, they expect fairness in terms of policies, rules and timeliness of complaint process.

B. Procedural fairness

20. (p. 224) Many frequent flyers have missed their flights due to long, slow security checks before being allowed to enter the airline's terminal. This policy designed to ensure safe flights has resulted in problems associated with perceived:

B. Procedural fairness

22. (p. 224) When the dentist's office bills the patient who had an appointment but did not show up for it and did not cancel the appointed, it is an example of _____ because the patient was made aware of the policy before making the appointment.

B. Procedural fairness

23. (p. 224) Adam was working late in his hotel room when the light bulb in the lamp at his desk burned out. He called the front desk and asked for a replacement bulb. The desk manager told Adam that a new one would be provided tomorrow morning and that he did not have the key to the stockroom. Adam tried to explain how much he needed the light to finish his sales report, but the manager was polite but adamant that he could not help. This is an example of:

B. Procedural unfairness

45. At AT&T Universal Card's Customer-Service Center in Jacksonville, Florida, customer service representatives are given immediate access via their computer screen to information and tools they need to serve the customer efficiently. When a customer calls, the representative can view the customer's account records and any notes from previous telephone calls from the customer. The representatives also have information on commonly asked questions. By providing immediate access to customer files, AT&T Universal Card is using which of the following human resource strategies for closing provider gap 3? A. Hire the right people B. Provide needed support systems C. Retain the best people D. Develop people to deliver service quality E. Set service standards

B. Provide needed support systems

46. A service firm that conducts periodic internal marketing research to assess employee satisfaction and needs is using which of the following human resource strategies for closing provider gap 3? A. Hiring the right people B. Providing needed support systems C. Using a control system to eliminate unnecessary service encounters D. Training teams to deliver service quality E. Establishing effective servicescapes

B. Providing needed support systems

36. (p. 429) A company that sells children's clothing at its web site learns shortly after opening its electronic store that it has many customers who are making selections of items they would like to buy, but abandoning their selections before purchasing due to a complex checkout process. This is an example of how electronic channels can benefit service providers by: A. Protecting customer privacy B. Providing quick customer feedback C. Giving intermediaries control of the electronic environment D. Increasing awareness of price competitors E. Increasing customers' abilities to customize

B. Providing quick customer feedback

31. (p. 489) The four strategies of tangibilization 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. Association, physical representation, documentation and visualization

4. (p. 215) A florist had promised to have the bridal flowers delivered to the wedding rehearsal dinner by 6 p.m. Because of vehicle problems, the flowers did not arrive until the meal was nearly over and the bride and her mother were very upset. To show how sorry he was for the poor service, the florist put extra flowers in the bridal bouquet and gave each mother and grandmother a free orchid corsage. The bride and her mother were extremely pleased with the extra flowers and have recommended the florist to a number of their friends. The florist is wondering if he shouldn't deliberately underdeliver other jobs, compensate the consumer with some upgrade and benefit from even more positive feedback. The florist is responding to the:

B. Recovery paradox

5. (p. 215) The _______ suggests an initially disappointed customer who has experienced good service recovery might be even more satisfied and loyal as a result.

B. Recovery paradox

36. Which of the following measurement research methods can document customers' opinions about whether performance met the standards established? A. Structured brainstorming B. Relationship surveys C. Customer panels D. In-depth interviews E. Critical incident studies

B. Relationship surveys

3. (p. 214) Which of the following statements about service failure and service recovery is true?

B. Resolving customer problems effectively has a strong impact on customer satisfaction and loyalty

18. Domino's instructs its telephone pizza order takers to pick up the telephone on the first ring and not to put customers on hold. When answering the telephone, an order taker must be energetic, friendly and let the customer hear the smile on his or her face. Domino's guidelines for order takers' telephone answering behavior will influence which of the following service quality dimensions for Domino's? A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

B. Responsiveness

19. Progressive Insurance looked at insurance from the customer's viewpoint and saw how difficult it was to get an auto claim processed and paid by insurance companies. Then the company crafted its service strategy around solving that problem. The company has fleets of claim adjustors on the road every day, ready to rush to the scene of an accident in their territory and provide fast claims processing-sometimes on the spot. The ability of the insurance company to have an adjustor at accident sites so quickly is an example of which of the following service quality dimensions? A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

B. Responsiveness

7. Which of the following is NOT a technology substitution for personal contact and human effort? A. On-line services B. Restaurant salad bar C. Voice mail D. Automatic teller machines E. Automatic car wash

B. Restaurant salad bar

8. Which of the following is NOT a technology substitution for personal contact and human effort? A. On-line services B. Restaurant salad bar C. Voice mail D. Automatic teller machines E. Automatic car wash

B. Restaurant salad bar

13. (p. 422) When two or more service companies want to offer a service and neither has the financial capability or expertise, they often undertake: A. Horizontal service systems B. Service partnerships C. Service integration D. Service mentoring E. Vertical service systems

B. Service partnerships

40. (p. 533) In a _____ pricing strategy, new services are introduced at high prices with large promotional expenditures. A. Penetration B. Skimming C. Prestige D. Contingency E. Visible

B. Skimming

37. (p. 195) Miller & Sons Funeral Home has handled all of the funeral needs for the Atwater family since 1957. The family believes that Miller & Sons offers them good value for their dollar and the Miller sons and the Atwater boys played on the same high school football team. Miller & Sons Funeral Home is using _____ to implement its customer retention strategy.

B. Social bonds

38. (p. 195) Every Thursday afternoon for almost thirty years, Margaret and Lillie have gotten a manicure at the same location. The manicure salon has changed ownership three times and has had two different names during that same period, but Margaret and Lillie still find it a convenient place to meet and share news about friends and relatives. Margaret's and Lillie's relationship with the manicure salon exemplifies how a service provider uses _____ to support its customer retention strategy.

B. Social bonds

6. (p. 392-393) In which of the following service situations would customers have the highest level of participation? A. Eating at a local barbecue restaurant B. Surgery to remove the gall bladder C. Staying at a Marriott resort hotel D. Traveling on an American airplane E. Attending a symphonic orchestra concert

B. Surgery to remove the gall bladder

34. (p. 529) Because most people like to get tattoos and body piercings on the weekends, a tattoo parlor in Portland, Maine, offers a reduced rate Monday to Thursday for all of its services. Prices on Friday and Saturday are 45 percent higher than they are during the rest of the week. The tattoo parlor is using a(n) _____ pricing strategy. A. Odd B. Synchro- C. Discounting D. Prestige E. Complementary

B. Synchro-

10. (p. 220) The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is a passive type when it comes to complaining would react to this by:

B. Taking no action whatsoever

28. (p. 21) Two roommates both registered for an introduction to business class. At midterm, one roommate found his instructor so boring that he was thinking of changing his major to history. The other roommate had a charismatic teacher and looked forward to going to class. This heterogeneity of instruction demonstrates:

B. That customer service depends on employee actions

9. (p. 425) The major benefit of distributing through company-owned channels is that: A. Time and place utilities are created as efficiently as possible B. The company has complete control over the outlets C. The company bears all of the financial risks D. Customers receive homogeneous service E. Customer empowerment can be readily achieved

B. The company has complete control over the outlets

27. (p. 225) A pseudo-relationship occurs when

B. The customer interacts many times with the same company, but with different service providers

46. (p. 467) On certain days during the week, Disneyworld allows guests who stay at a Disney Resort hotel to enter the Magic Kingdom, Epcot Center or Disney-MGM Studios one hour before the parks are open to the public. Walt Disney World is minimizing waiting time by differentiating customers on the basis of: A. Their willingness to perform the service role B. The importance of the customer C. The duration of their stay in the amusement park D. Their need to have fun E. The payment of a premium price

B. The importance of the customer

50. (p. 276-277) New-service success depends on:

B. The integration of the service within existing processes

7. (p. 219) A consumer is more likely to complain when:

B. The level of ego involvement in the purchase is high

23. Which of the following acts as the stimulus in the stimulus-organism-response model? A. Employees B. The multidimensional service environment C. Customer emotions D. Customer E. Customer purchase behavio

B. The multidimensional service environment

36. (p. 530-531) American Airlines BreakAway fares offer travelers substantial savings on nonstop flights from Newark, New Jersey to Los Angeles from mid-August to mid-October. The round-trip airfare is $299 for customers who depart on Friday and return the following Monday or Tuesday. American Airlines is using a(n) _____ differential. A. Place B. Time C. Quality D. Incentive E. Quantity

B. Time

48. Federal Express distributes a weekly Service Quality Indicator report showing performance to goals on 12 different items. Upon receipt of the report, managers and contact personnel investigate root causes of service failures. By distributing a weekly Service Quality Indicator report and investigating service failures, Federal Express is addressing which of the following steps in the process for developing customer-defined standards? A. Translating customer expectations into behaviors and actions for each service B. Tracking measures against standards C. Electing behaviors and actions for standards D. Establishing measures and target levels for standards E. Deciding whether hard or sod measures are appropriate

B. Tracking measures against standards

50. Barnett Bank opened a school with kindergarten through fifth grade classes run by the Duval County school system and a child-care center at its headquarters office park in Jacksonville, Florida, to provide "work-and-family" benefits designed to help employees balance the stresses of a demanding job and family life. Barnett Bank is: A. Promoting teamwork B. Treating employees as customers C. Measuring and rewarding strong service performers D. Including employees in the company vision E. Empowering employees

B. Treating employees as customers

48. (p. 536) If you visit a county or state fair, you will pay a basic admission fee plus other fees if you want to enjoy any of the amusement rides. County and state fairs that price this way is using: A. Synchro-pricing B. Two-part pricing C. Mixed bundling D. Contribution margin pricing E. Contingency pricing

B. Two-part pricing

1. The first step in delivering high service quality is: A. Hiring the right people B. Understanding customer requirements C. Innovation D. A service blueprint E. Employee training

B. Understanding customer requirements

33. (p. 194) Retention strategies built around financial bonds:

B. Use price as the primary marketing mix element

44. (p. 270) If the purpose of the service blueprint is to understand the integration of the various elements of the service process, the blueprint should be examined:

B. Vertically

28. (p. 525) When comparing the value of health clubs, Shaundra believes value comes from having a "women's only" nautilus room and "women's only" aerobic classes. Shaundra defines value as: A. All that I get for all that I give B. Whatever I want in a service C. Low price D. Reliable service E. The quality I get for the price I pay

B. Whatever I want in a service

33. (p. 429) Which of the following is a benefit enjoyed by service providers who use electronic distribution? A. No security concerns as with other channels B. Wide distribution C. Absence of customer involvement in service delivery D. Absence of price competition E. All of the above

B. Wide distribution

10. (p. 444) Vacation-destination resorts experience _____ fluctuations in demand over time and have peak demand that _____. A. Wide; can usually be met without a major delay B. Wide; regularly exceeds capacity C. Narrow; can usually be met without a major delay D. Narrow; regularly exceeds capacity E. Wide, can never be met

B. Wide; regularly exceeds capacity

23. (p. 189) The 80/20 two-tier scheme:

C. Assumes all customers within each tier are homogeneous

20. The _____ dimension of service quality is highly dependent on employees' ability to communicate their credibility and to inspire trust and confidence. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

C. Assurance

21. A hair salon designed to appeal to children does not use the standard salon furniture. Instead, children sit on carousel horses to get their haircuts. Large TV monitors strategically located throughout the salon show kid-targeted videos and cartoons are there to entertain the children. The child-friendly hair salon's servicescape services in what two capacities? A. A package and as a facilitator B. A facilitator and as a boundary spanner C. A differentiator and as a facilitator D. A boundary spanner and as a differentiator E. A socializer and as a facilitator

C. A differentiator and as a facilitator

42. For which of the following service providers is an employee empowerment strategy most suited? A. A service provider that relies on mass production/consumption B. A service provider with a static business environment C. A service provider that builds long-term relationships with its customers D. A service provider that relies on routine, simple technology E. A service provider that specializes in transactional relationships

C. A service provider that builds long-term relationships with its customers

36. Sunoco in Canada realizes the importance of physical evidence to determining the value of the service being provided. As a result, it has refurbished its restrooms and committed its station operators to maintaining hygienic restrooms. A clean-smelling restroom is an example of a positive: A. Artifact B. Functional form C. Ambient condition D. Spatial format E. Service symbol

C. Ambient condition

37. Every time Beth takes her three-year-old daughter shopping, the child complains about unpleasant smells. A sharp olfactory sense would make _____ in retail situations extremely important to Beth and her daughter. A. Natural environments B. Functional forms C. Ambient conditions D. Spatial formats E. Sensory symbols

C. Ambient conditions

38. Ambient conditions will have the least effect on customer behavior in which of the following servicescapes? A. A bakery shop B. An air-conditioned hotel on a hot July day C. An open five-story parking garage D. Bookstore with an in-store coffee cart E. A movie theater

C. An open five-story parking garage

50. (p. 468-470) Waiting time feels longer when customers: A. Are relaxed while waiting B. Are reading or drinking a beverage while waiting C. Are alone while waiting D. Know how long they will have to wait E. Understand why they are waiting

C. Are alone while waiting

27. Many customers will not shop at traditional retail stores the day after Thanksgiving due to the crowds. This refusal to shop is an example of how the servicescape creates _____ behavior. A. Interaction B. Elimination C. Avoidance D. Approach E. Cognitive

C. Avoidance

28. If Maeve has to go on a business trip, she will not fly out of the airport in Atlanta, Georgia, because it is so large and has so many people who are in a hurry to get somewhere. Instead she chooses one of the smaller airports a couple of hours away. Maeve's reaction to the airport in Atlanta creates _____ behavior. A. Social interaction B. Elimination C. Avoidance D. Approach E. Cognitive

C. Avoidance

36. (p. 266) When Jessie wanted to talk to a therapist to learn how she could improve her relationship with her mother, she went to www.here2listen.com, an online counseling service that charges $1 per minute of counseling. The people who maintain the web site and who make it possible for Jessie to engage in an online chat with a therapist are examples of:

C. Backstage contact employee actions

27. (p. 192) The development of strong customer relationships is strongly influenced by:

C. Barriers the customer faces in leaving a relationship

45. For a physical evidence strategy to be effective, it must: A. Offer customization capabilities B. Create departmental integration C. Be linked clearly to the organization's overall goals and vision D. Be blueprinted E. Avoid creating negative ambient conditions

C. Be linked clearly to the organization's overall goals and vision

22. The frontline service employees are referred to as: A. Gatekeepers B. Control centers C. Boundary spanners D. Service encounter experts E. External service providers

C. Boundary spanners

16. (p. 521-522) _____-based pricing is used when there are a small number of large service providers. A. Demand B. Profit C. Competition D. Supply E. Cost

C. Competition

19. (p. 521) Pizza Hut, Uncle Sam's, Domino's and Papa John's all deliver pizza in Cartersville, Georgia, a town of about 30,000. As a result, one would expect all of the pizza delivery services to use _____-based pricing. A. Standardized B. Simultaneous C. Competition D. Supply E. Cost

C. Competition

14. (p. 183) As a result of relationship marketing, customers experience specific relational benefits. These include:

C. Confidence benefits, special treatment benefits and social benefits

42. (p. 437) Measurement programs are used by franchisers as a(n) _____ strategy. A. Partnering B. Venture C. Control D. Empowerment E. Proactive

C. Control

43. (p. 437) Mike Leven is the president and co-founder of US Franchise Systems (USFS), one of the nation's fastest growing hotel companies. Its franchises include Microtel Inn & Suites, Hawthorne Suites and Best Inns and Suites. Its franchise owners are held to the highest standards of cleanliness and property maintenance. Monthly mystery shoppers visit each hotel and a franchisee can lose his or her franchise if the hotel does not meet minimum standards. USFS uses a(n) _____ strategy. A. Partnering B. Venture C. Control D. Empowerment E. Proactive

C. Control

11. (p. 519) The basic formula for _____ is Price = Direct costs + Overhead + Profit margin. A. Contribution margin B. Return on investment C. Cost-based pricing D. ABC costing E. Net profit

C. Cost-based pricing

12. Progressive Insurance looked at insurance from the customers' viewpoint and saw how difficult it was to get an auto claim processed and paid by insurance companies. Then the company crafted its service strategy around solving that problem. The company has fleets of claim adjustors on the road every day, ready to rush to the scene of an accident in their territory and provide fast claims processing-sometimes on the spot. Progressive Insurance relies on _____ defined service standards. A. Company-defined B. Competitor-focused C. Customer-defined D. Cost-focused E. Service provider-defined

C. Customer-defined

41. (p. 196) The term customer intimacy is most closely related to the establishment of _____ bonds.

C. Customization

40. (p. 196) Step-by-Step day care center offers parents several other services not normally offered by day by day care centers. A caterer is present every morning when the children are dropped off to take orders for supper. When the parents pick up their children in the evening, their supper is ready for them to take home, too. A hair stylist comes to the center once a week and cuts the hair of any child whose parents request this service. A photographer comes to the center every three months to take updated pictures of children whose parents don't have the time to take their children to the photography studio. In this way, Step-by-Step is using _____ to support its customer retention strategy.

C. Customization bonds

22. While most KFC restaurants look alike, there is one in Marietta, Georgia, that is in the base of a 56-foot tall chicken replica with rolling eyes and a moving beak. In this example, the servicescape is act as a: A. Package B. Facilitator C. Differentiator D. Boundary spanner E. Socializer

C. Differentiator

31. (p. 265) Service blueprinting is grounded in all of the following disciplines EXCEPT:

C. Economics

30. (p. 429) Heffner Funeral Homes uses the Internet to sell some 300 different products including jewelry, urns, coffins and funeral memorabilia as well as a complete line of funeral services. Heffner Funeral Homes uses a(n): A. Agent B. Broker C. Electronic channel D. Franchise E. Retail cooperative

C. Electronic channel

29. (p. 428) _____ are the only service distributors that do not require direct human interaction. A. Agents B. Brokers C. Electronic channels D. Franchises E. Retail cooperatives

C. Electronic channels

21. (p. 394-395, 397) Whether a household or a firm chooses to produce a particular service for itself or contract externally for the service depends upon all of the following EXCEPT: A. Psychic rewards B. Trust C. Empathy D. Resource capacity E. Control

C. Empathy

40. (p. 462-463) Which of the following is a risk associated with the use of yield management? A. Excessive customer loyalty B. Too much focus on competition C. Employee morale problems D. Misuse of company-driven service blueprints E. Overreliance on salaries

C. Employee morale problems

Which of the following statements describes a marketing implication that results from the simultaneous production and consumption of services?

C. Employees affect the service outcome

20. A regional chain of discount stores had narrow aisles that were often blocked by partially unpacked boxes. Even though the chain provided shopping carts, it was impossible to maneuver one in the store unless you were willing to park it at the end of each aisle and carry selections back to it. In this example, the servicescape played a role as a negative: A. Boundary spanner B. Socializer C. Facilitator D. Defender E. Package

C. Facilitator

34. (p. 454) The Baltimore Orioles, a professional baseball team, offer standing room only seats to fans when a home game at The Ballpark at Camden Yards is sold out. The Baltimore Orioles are stretching _____ to flex the capacity of The Ballpark at Camden Yards to meet fan demand. A. Time B. Labor C. Facilities D. Equipment E. Customers

C. Facilities

15. (p. 520-521) Accountants, architects, interior decorators, marriage counselors and lawyers typically use a _____ pricing strategy. A. Going-rate B. Perceived value C. Fee for service D. Price signaling E. Cost-plus

C. Fee for service

12. (p. 427) How do company-owned service providers like Waffle House restaurants differ from franchise-owned service providers like Wendy's restaurants? A. Situation analyses are more revealing when they are comparing the environments of several outlets using the same operating procedures B. Secondary research data can be more readily obtained by Waffle House local managers than by Wendy's local franchisees C. Franchise owners of Wendy's are more likely to understand the local markets than Waffle House, especially in international markets D. Heterogeneous services is more of a problem for Waffle House than for Wendy's E. Waffle House has more opportunities to create employee-customer relationships than Wendy's does

C. Franchise owners of Wendy's are more likely to understand the local markets than Waffle House, especially in international markets

14. (p. 422) _____ are the most common type of intermediary for services. A. Agents and brokers B. Vertical outlets C. Franchises D. Electronic channels E. Retailer cooperatives

C. Franchises

9. (p. 179) Following the acquaintance relationship in the evolution of customer relationships is the customers as _____ stage.

C. Friends

1. A service provider that has an inappropriate employee evaluation and compensation system will experience provider: A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4

C. Gap 3

2. (p. 442) In order to increase usage of the family-oriented ski resort, its owner sent letters to several college fraternities inviting them to spend their winter vacation at the resort. By inviting college students, the resort more than likely widened provider: A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4 E. Gap 5

C. Gap 3

3. (p. 388) When a customer does not understand his or her role in the service delivery process, he or she is contributing to provider: A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4

C. Gap 3

4. (p. 388) Roger Simpson is an event planner who specializes in planning family reunions. He typically works with one or two members of the family who provide him with all the family-related information. If a family reunion planner refuses to provide Simpson information about Uncle George and his descendents because he did not like Uncle George, that family member will have contributed to the widening of provider _____ by preventing Simpson from doing his job to the best of his ability. A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4 E. Gap 5

C. Gap 3

2. Flying across the Pacific Ocean is an eight-hour trip that could be dreadful if you did not fly Singapore Airlines. One frequent flyer between the U.S. and Japan noted the Singapore cabin crew does not give the usual impression of doing passengers a favor by taking care of them. Free champagne and beer service is available to all classes. Seating has been designed to provide comfort in the airline's wide body planes. In first class, the seats are referred to as sky suites because they are so roomy. Every meal is carefully planned and served. The commitment to making the long flight as pleasant as possible indicates Singapore Airlines: A. Does not rely on physical evidence B. Considers reliability more important than empathy C. Has a service culture D. Does not use internal marketing E. Wants to increase the number of service encounters it has with a customer

C. Has a service culture

37. The first step in the process of developing customer-defined standards is to: A. Develop feedback mechanisms for measurement of standards B. Establish measures and target levels for standards C. Identify existing or desired service encounter sequence D. Decide whether hard or soft standards are appropriate E. Translate customer expectations into behaviors and actions for each service

C. Identify existing or desired service encounter sequence

38. New owners of the Atlanta Falcons wanted to increase attendance by giving customers want they wanted, such as an online site to purchase tickets, clean restrooms, more opportunities to interact with the players and family-oriented halftime shows. The first step to developing these customer-defined standards was to: A. Translate customer requirements into hard measures B. Create an action program that contained every possible service encounter C. Identify the current service encounter sequence D. Develop continual feedback mechanisms E. Brainstorm

C. Identify the current service encounter sequence

43. (p. 503-504) Preparing customers for the service process is a strategy for: A. Managing service promises B. Resetting customer expectations C. Improving customer education D. Managing horizontal communications E. Exceeding customer expectations

C. Improving customer education

47. (p. 504) Clarifying expectations after the sale is a strategy for: A. Managing service promises B. Resetting customer expectations C. Improving customer education D. Managing horizontal communications E. Exceeding customer expectations

C. Improving customer education

48. (p. 504) 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: A. Managing service promises B. Resetting customer expectations C. Improving customer education D. Managing horizontal communications E. Exceeding customer expectations

C. Improving customer education

44. (p. 499-504) Emory Vision Center has a packet of information that it sends to people who are interested in LASIK surgery as well as a doctor who will come speak to your organization 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 integrated communications with potential patients and patients, Emory Vision Center is: A. Managing service promises and managing internal marketing communications B. Resetting customer expectations and educating customers C. Improving customer education and managing service promises D. Managing both vertical and horizontal marketing communications E. Exceeding customer expectations and educating customers

C. Improving customer education and managing service promises

19. (p. 447) Keith-McCoy is a government auditing firm that specializes in auditing public transportation systems. The firm was operating at maximum capacity when it was asked to submit a bid on a very lucrative account in Chicago. If the firm were to win this account and keep all of its current accounts, it will more than likely: A. Decrease employee turnover potential B. Increase customer satisfaction through a work focus C. Increase employee burnout D. Increase service quality E. Create a narrower window of opportunity for meeting deadlines

C. Increase employee burnout

32. (p. 453) Which of the following is NOT a risk associated with the use of price differentiation to smooth demand? A. Increased price competition B. Attracting undesired market segments C. Increased capacity utilization D. Customers becoming accustomed to low price E. Whole industry suffers from price wars

C. Increased capacity utilization

17. (p. 223) _____ focuses on the interpersonal treatment received by the consumer during the complaint process.

C. Interactional fairness

25. (p. 224-225) As the flight attendant listened to the business traveler complain about having to sit in the plane and wait for two hours before the plane took off, the attendant sorted through some magazines, got a blanket for another passenger and clearly ignored the legitimate complaints of the businessperson. This is clearly a problem with:

C. Interactional fairness

26. (p. 224-225) ________ refers to the fact that a complaining customer expects to be treated fairly, with care and honesty.

C. Interactional fairness

24. (p. 224-225) Once Mariko had carried her dry cleaning to the car, she took a minute to see if the cleaners had removed the stain from her wool skirt. The stain was still there, so Mariko took the skirt back inside to the cleaner. When Mariko showed the stained skirt to the cleaner employee, she shrugged and said, "I guess you want us to reclean the skirt"? Mariko responded, "Yes, please". The employee took the skirt, gave Mariko a dirty look and began sorting some items on the counter. Mariko experienced:

C. Interactional unfairness

42. (p. 408) Compatibility management: A. Is unrelated to the implementation of customer participation strategies B. Does not coalesce well with the drama metaphor used to describe services C. Is a process for managing the customer mix D. Is only of value in internal marketing E. Creates a homogeneous employee pool

C. Is a process for managing the customer mix

9. What is wrong with the following service goal posted in a restaurant: "Do not keep customers waiting too long to be served"? A. It is too formal B. It is not actionable C. It is not specific enough D. It does not reflect the goal of the restaurant, which is to provide service quality E. It is not responsive to customer needs

C. It is not specific enough

27. (p. 525) Derrick saves coupons from 10-minute oil and lubrication services (e.g., Jiffy Lube, Quick Lube and Speedi-Lube) and when he needs to have his car's oil changed, he chooses the oil and lubrication service that offers the best deal on a 10-minute oil change. For 10-minute oil and lubrication services, Derrick defines value as: A. All that I get for all that I give B. Everything I want in a service C. Low price D. Reliable service E. The quality I get for the pace I pay

C. Low price

35. (p. 500-502) 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. Managing customer expectations

37. (p. 500-502) 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. Managing service promises C. Managing customer expectations D. Managing horizontal communications E. Exceeding customer expectations

C. Managing customer expectations

46. (p. 408) Nude bathing is the norm at the Tagoona lakefront beach. By prohibiting the wearing of clothes on weekdays, the Tagoona lakefront beach is: A. Rewarding customers B. Positioning customers C. Managing the customer mix D. Defining customers' jobs E. Educating customers

C. Managing the customer mix

The Detroit Tigers, a professional baseball team, prohibits the sale and consumption of alcohol in the "Family Section" of Tiger Stadium. The Detroit Tigers are: A. Rewarding customers B. Positioning customers C. Managing the customer mix D. Defining customers' jobs E. Educating customers

C. Managing the customer mix

At the _____ stage of the new service development process, the new service is made available to a limited number of its potential customers.

C. Market testing

The openings of new fast-food franchises are typically highly promoted events-especially when the franchise is new to a geographic area. Special food promotions are offered on the day of the grand opening and sometimes guest appearances. Often if a grand opening event is scheduled for the first of the month, the business will actually start serving customers who happen to notice that it is open during the week prior to the first. In this way, employees can familiarize themselves with their jobs and minor problems can be handled before they become major. This pre-opening practice is most closely related to which stage of the new service-development process?

C. Market testing

46. (p. 535) The price for an all-day trip to the Alpine Spa is $175 and includes an hour-long massage, a facial, a manicure and pedicure and a hair styling and make-up application. Any of these services can be purchased individually for the total cost of almost $300. What kind of pricing strategy is Alpine Spa using? A. Synchro-pricing B. Complementary pricing C. Mixed bundling D. Contribution margin pricing E. Contingency pricing

C. Mixed bundling

50. (p. 200) United Jersey Bank offers customers, who have a combined balance of $3000 or more in a United Jersey Checking Account and Preferred Money Market Account, a service called United Jersey Preferred Banking. This service is designed to make banking more convenient and profitable for customers. United Jersey Preferred Banking eliminates monthly maintenance fees, provides unlimited free transactions at ATMs, preferred rates on personal loans, higher interest rates on savings with higher balances and a consolidated monthly statement. United Jersey Bank does not offer United Jersey Preferred banking to customers with a combined balance of less than $3000 in a United Jersey Checking Account and Preferred Money Market Account since these customers are:

C. Not profitable in the long run

21. (p. 499-500) Cookies is a retail store where customers host parties for guests to bake and decorate cookies. If the retailer offers a money back guarantee if the party experience is boring. In this way, the retailer is: A. Creating tiered-value offerings to improve customer education B. Preparing customers for the service process through customer education C. Offering service guarantees to manage service promises D. Featuring the servicescape as a tool for integrating its marketing communications E. Confirming that performance equals performance standards to manage customer expectations

C. Offering service guarantees to manage service promises

43. (p. 266) In a service blueprint, the line of visibility separates:

C. Onstage contact employee actions from backstage contact employee actions

19. Which of the following is NOT a soft customer-defined standard? A. Uniforms are to be immaculate B. Avoid other tasks while on the telephone with customers C. Orders delivered when promised D. Thank the customer at the end of the call E. Listen to customers attentively

C. Orders delivered when promised

25. The employees at Franklin Credit Union correspond to the _____ in the stimulus-organism-response model. A. Organic motivator B. Stimulus C. Organism D. Referent E. Role players

C. Organism

28. Service employees who depend on tips or commissions for income are likely to face greater levels of _____ conflict than employees who receive a straight salary. A. Person/role B. Vertical C. Organization/client D. Inter-client E. Horizontal

C. Organization/client

5. (p. 443) The lack of inventory capability in services is due to which of the following characteristics of services? A. Heterogeneity and perishability B. Simultaneous production and consumption and intangibility C. Perishability and simultaneous production and consumption D. Heterogeneity, perishability and intangibility E. Simultaneous production and consumption and heterogeneity

C. Perishability and simultaneous production and consumption

4. Flying across the Pacific Ocean is an eight-hour trip that could be dreadful if you did not fly Singapore Airlines. One frequent flyer between the U.S. and Japan noted its "cabin crew do not give the usual impression of doing passengers a favor by taking care of them. In short, they make flying with Singapore Airlines a pleasure". What role does this passenger have the cabin crew playing? A. Embodying the service B. Marketing the organization C. Personifying the service in the customer's eyes D. Engaged in capacity management E. Eliminating the need for differential advantages

C. Personifying the service in the customer's eyes

21. (p. 448) Mass transit train and bus service has peak periods of demand Monday through Friday during morning and evening rush hours. Demand for mass transit service is a(n): A. Random demand fluctuation B. Relative demand shift C. Predictable demand cycle D. Vertical demand configuration E. Organized demand pattern

C. Predictable demand cycle

22. (p. 448) For those people who think they need some sort of psychological counseling but don't feel they have the time, the Internet offers www.hear2listen.com, which allows users to communicate with a licensed therapist at a cost of $1 per minute. Due to a(n) _____, the web site's owners know most of their business comes in the evenings and on weekends, so they have hired therapists to work for the Internet service at these times. A. Random demand fluctuation B. Relative demand shift C. Predictable demand cycle D. Vertical demand configuration E. Organized demand pattern

C. Predictable demand cycle

42. (p. 503-504) Which of the following is a strategy used for improving 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. Prepare customers for the service process

38. (p. 429) If you want to buy a vacation cruise to the Bahamas and you'd like to buy on the Internet, there are several ways to shop. One of the most efficient methods is to use a shopping bot, which is an electronic agent that will comb web sites for you and then present you with a list of sites where vacation cruises are available, descriptions of each cruise and how they are priced. Shopping bots encourage: A. Customization B. Homogeneity in commodity products C. Price competition D. Electronic saturation E. Overlapping merchandising

C. Price competition

49. (p. 24) Historically, the Japanese have had poor dental care. As part of their beauty regimen, the Japanese do have a habit of lightening and whitening their skin. Teethart has developed "tooth manicure" salons, which allow Japanese to match their teeth coloration to their skin. A personalized whitening mouthpiece is developed for each patient. The mouthpiece is placed around the teeth and a cleaning solution is added. The patient listens to soothing music and sits in a comfortable chair while his or her teeth are whitened. Monthly treatments in this spa-like environment reflect the _____ element of Teethart's service mix.

C. Process

42. An importance/performance matrix is used to: A. Translate customer expectations into behaviors and actions for each service B. Track measures against standards C. Select behaviors and actions for standards D. Establish measures and target levels for standards E. Identify existing or desired service encounter sequences

C. Select behaviors and actions for standards

50. (p. 24) Yesterday, Mike went to the dentist for his 6-month check-up. Two weeks before he went to the dentist, he called the office to make an appointment. The day before his check-up, the office's receptionist called him to confirm his appointment. When Mike arrived at the office, he checked in with the receptionist and then waited in the waiting room for 15 minutes, reading a magazine, before being greeted by the dental hygienist, who escorted him to an examination room. The dentist entered the room, greeted Mike, examined Mike's teeth, took a set of x-rays and asked the dental hygienist to clean Mike's teeth. When his teeth were cleaned, the hygienist told Mike he should return in 6 months for another check-up. Mike experienced the _____ element of the dental office's services marketing mix

C. Process

10. (p. 392) To save resources, hotels are asking guests to hang up their towels and reuse them if they are staying multiple nights. A guest who hangs up his towels is playing the role of a: A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

C. Productive resource

11. (p. 392) Continental Airlines has installed automated ticket machines in its major airport terminals that enable passengers to purchase tickets, obtain boarding passes and get seat assignments by inserting a credit card into the machine. A passenger using a Continental Airlines' automated ticket machine is playing the role of a: A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

C. Productive resource

9. (p. 392) Hyatt Hotels has installed automated check-in machines at hotels in Atlanta and Chicago. To check in and get a room key, guests insert a credit card into the machine. A guest using Hyatt Hotel's automated check-in machine is playing the role of a: A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

C. Productive resource

35. (p. 404) Chatham Landing, an apartment complex in Orlando, Florida, offers tenants $200 off one month's rent for each new tenant referral. By rewarding tenants for making a tenant referral, Chatham Landing is encouraging tenants to perform which of the following customer jobs? A. Helping oneself B. Positioning the company C. Promoting the company D. Recruiting customers E. Helping others

C. Promoting the company

36. (p. 404) After having a positive service experience at Lens Crafters when she had her eyes examined and purchased new contact lenses, Diane recommended Lens Crafters to two of her friends who were planning to get new eyeglasses. Diane is performing which of the following customer jobs? A. Helping himself or herself B. Positioning the company C. Promoting the company D. Recruiting customers E. Helping others

C. Promoting the company

11. (p. 485-486) 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. Providing inadequate customer education

9. (p. 517) Initial consumer resistance to online bill paying resulted from a _____ cost in using a new service. A. Convenience B. Monetary C. Psychological D. Time E. Search

C. Psychological

_____ marketing focuses on keeping and improving current customers, rather than concentrating on acquiring new customers.

C. Relationship

10. In a(n) _____ environment, the service facility can be designed to keep its employees motivated and to facilitate productivity, teamwork and operational efficiency without any consideration of customers. A. Self-service B. Vertical service C. Remote service D. Saleable service E. Interpersonal services

C. Remote service

48. FedEx honors a handful of non-management employees with its Golden Falcon award each month, recognizing efforts that are "above and beyond their customary line of duty". This award includes a gold pin with the gold falcon emblem and ten shares of FedEx stock. By giving deserving employees the Golden Falcon award, FedEx is using which of the following human resources management strategies for closing provider gap 3? A. Hire the right people B. Provide needed support systems C. Retain the best people D. Develop servicescapes to deliver service quality E. Creating an employee-oriented culture

C. Retain the best people

49. The Ritz-Carlton Hotel recognizes and rewards employees who perform feats of outstanding service. Under its 5-Star Awards program, peers and managers nominate outstanding performers. Winners receive plaques at dinners celebrating their achievements. For on-the-spot recognition, managers award Gold Standard Coupons to outstanding employees, redeemable for items in the gift shop and free weekend stays at the hotel. The Ritz-Carlton Hotel is using which of the following human resources management strategies for closing provider gap 3? A. Hire the right people B. Provide needed benchmarks C. Retain the best people D. Develop servicescapes to deliver service quality E. Set service standards

C. Retain the best people

25. (p. 397) When Tim got in line to pay for his groceries, he picked the line in which he was required to scan the prices of his groceries and bag them himself. He was pleased with the use of ____ because it would allow him to get his eggs home unbroken without some store bagger dropping a melon on top of them. A. A promotable differentiator B. An ergonomic layout C. SSTs D. ISPs E. Robotics

C. SSTs

28. Which of the following is NOT an example of a hard measurement? A. Number of times a service guarantee is invoked B. Length of time spent on service calls C. Satisfaction with reservation process D. Length of time it takes to resolve complaints E. Percentage of packages delivered after the promised date

C. Satisfaction with reservation process

31. (p. 529-532) Which of the following is NOT an effective pricing strategy to use when customers define value as "low price"? A. Odd pricing B. Synchronized pricing C. Value pricing D. Penetration pricing E. Discounting

C. Value pricing

26. (p. 397) _____ are services produced entirely by the customer without any direct involvement or interaction with the firm's employees. A. Actor-oriented services B. Drama monologues C. Self-service technologies D. Frequency marketing programs E. Competitive differentiators

C. Self-service technologies

24. (p. 424) An agent who negotiates commercial endorsements and speaking engagements for professional athletes is an example of a _____ agent. A. Facilitating B. Leading C. Selling D. Purchasing E. Mediating

C. Selling

A company that was involved in wedding planning noted how many couples had a wedding catastrophe of some kind. As a result, it abandoned wedding planning and began offering wedding insurance to protect couples from financial losses due to weather emergencies, stolen wedding rings, damaged wedding dresses, etc. The company is using a _____ growth strategy.

C. Service development

McDonald's offers home and office delivery service in selected markets in the U.S. and Canada. McDonald's delivery service is a _____ growth strategy.

C. Service development

Pret a Manger, a London-based sandwich shop, introduced restaurant-quality sandwiches with fast-food velocity. Pret a Manger's faster service is a _____ growth strategy

C. Service development

When a company offers new services to current customers, it is using a _____ growth strategy.

C. Service development

Dentists have to earn forty continuing education (C.E.) hours every two years to stay licensed. Dental Learning Systems Co. (DLSC) prepared and presented dental seminars around the U.S. to help provide dentists with the access to continuing education courses. During the 1990s, DLSC introduced a journal that could be used like a correspondence course for earning C. E. Hours. A dentist gets a list of upcoming articles/lessons, registers for one that meets his or her need, studies the information provided in the journal and fills out paperwork for DLSC, which then sends notification of completion and the C.E. hour(s) earned to the accrediting bureau. The Dental Learning Systems journal is a:

C. Service line extension

The augmentation of an existing service line is a:

C. Service line extension

1. (p. 4) In the simplest terms, _____ are deed s, processes and performances.

C. Services

4. (p. 4) Many people when they go on vacation are choosing to leave their dogs in posh pet resorts that offer a variety of activities for the dogs, such as swimming pool frolics, nature walks and hayrides. Dog owners are paying $17 per night for basic boarding at the pet resorts and up to an additional $20 for the other activities, which would be collectively classified as:

C. Services

1. All aspects of the organization's physical facility are collectively referred to as the: A. Servicespan B. Service encounter arena C. Servicescape D. Service encounter place E. Service ground

C. Servicescape

2. The patient examination room in a doctor's office is a: A. Servicespan B. Service encounter arena C. Servicescape D. Service encounter place E. Service ground

C. Servicescape

34. (p. 22) The Offshore Sailing School in Jersey City, New Jersey offers a basic sailing course, which takes place in three days over two weekends, for $495. Students enrolled in the course attend classroom sessions that cover the theory and technology of sailing and receive hands-on sailing instructions in the water that introduces them to all fundamental sailing skills. Student participation in the Offshore Sailing School's classroom sessions and hands-on sailing instructions illustrates the _____ characteristic of services.

C. Simultaneous production and consumption

35. (p. 22) For their wedding anniversary, Beth and Rick wanted to go skydiving. They enrolled in a skydiving class at the local airport at a cost of $260. After a 30-minute training course in which everything that was going to happen to them was carefully explained, Beth and Rick were sent up in an airplane with two skydiving experts. Each was placed in a harness arrangement with one of the experts and did what is called a tandem dive. With a tandem dive, Beth and Rick get to enjoy the experience without having to worry about when to open the parachute. The skydiving expert does that for them. This tandem jump illustrates the _____ characteristic of services.

C. Simultaneous production and consumption

16. (p. 183) Marlon Johnson is a government auditor and works for Taylor & Litford firm. He is the one who checks to see that city and county governments have complied with accounting principles. As an auditor, Johnson sometimes will spend six weeks in one office while he checks its accounting records. The closeness of the relationship that Johnson builds with the government employees he works with was realized by Taylor & Litford when Johnson left the firm, went to work for another one and took his clients with him. This is an example of how _____ benefits can be both helpful and harmful.

C. Social

4. A land surveyor will come out to your home, survey your property and draw you a plat showing you the shape of your land and how it looks in relation to land around it. The work is routine unless the deed for the property is over one hundred years old. One of the ways a surveyor determines what land belongs to you is by using old deeds. This becomes a complicated practice when the deed says "west from live oak tree" and "northeast 30 feet from Gray family cemetery". Often these landmarks, which were there 100 years ago, are long gone and no one remembers where exactly they were. Surveyors may differ by a couple of feet in their determination of where these landmarks used to be. This is an example of the difficulty involved in: A. Relying on the tangibles dimension of services B. Integrating service functions C. Standardizing services D. Changing customers' perceptions E. Modifying customers' expectations

C. Standardize its services

27. (p. 451-452) New York City rents a number of its public school facilities to local flea markets on weekends during the school year and summer months. New York City is using which of the following strategies for shifting demand to match capacity in its public schools? A. Differentiate on price B. Modify timing and location of service delivery C. Vary the service offering D. Stretch capacity E. Communicate with customers

C. Vary the service offering

5. Canadian Airline did market research to determine the expectations of business travelers-its target market. It learned business travelers don't view air travel as a simple product any more but as a sequential process with a series of customer service interactions which to them seemed at times arbitrary. A traveler could not estimate how much time it would take to make reservations, to check-in, to board or any of the other interactions-the time spent on these activities was typically directly related to the experience and training of the airline's employees. Canadian Airline could provide better service to its highest-yield customers if it could: A. Change customers' perceptions of flying B. Integrate all service functions C. Standardize its services D. Rely more on the tangible dimensions of service E. Modify customers' expectations

C. Standardize its services

48. (p. 238) An effective service guarantee would NEVER be described as:

C. Standardized and/or generic

3. (p. 177) According to the text, the relationships between businesses and their customers have the ability to evolve. In the first step of this evolution process, customers are identified as:

C. Strangers

WedSafe is the name of a company that provides wedding insurance. For example, in the event that the wedding is called off, the couple can insure themselves against lose of their nonrefundable deposits. When its primary marketing effort is to make engaged couples aware of its services, it is in which stage of the customer relationship evolution?

C. Strangers

29. (p. 193) In many instances, customers develop loyalty to an organization in part because of costs involved in changing to and purchasing from a different firm. These costs are called:

C. Switching costs

31. (p. 193) Molly and Tom are getting married. Last month they hired a caterer for the wedding reception. This month they attended a wedding for which their chosen caterer had provided food, dishes and flowers. Neither thought the food was good and Molly worried that the dishes looked cheap. However, they feel they cannot change caterers at this date due to the large deposit required by the catering company when it took the job. Molly and Tom do not want to pay:

C. Switching costs

41. (p. 20) Which of the following is a marketing implication that results from the perishability of services?

C. Synchronizing supply and demand is difficult

42. (p. 466-467) Which of the following queue configurations is designed to ensure fairness of waiting time? A. Multiple queue B. Double queue C. Take-a-number queue D. Queue with barriers E. Roundabout queue

C. Take-a-number queue

5. (p. 6) _____ is a key determinant of whether a product offering should be classified as a product or a service.

C. Tangibility

1. (p. 512) One of the reasons used to explain why customers evaluate goods and services differently is: A. The degree of customer empowerment used to sell services B. How services and goods influence opportunity costs C. That customers often have limited reference prices for services D. The increased customer autonomy in the pricing of goods E. The cost of maintaining inventory

C. That customers often have limited reference prices for services

17. (p. 423) Which of the following is NOT a franchising benefit to the franchiser? A. The opportunity to gain knowledge of local markets B. The maintenance of consistency in service outlets C. The control of customer relationships by the intermediary rather than the service principal D. The sharing of financial risk E. Leverage for the business to gain expansion and revenues

C. The control of customer relationships by the intermediary rather than the service principal

33. (p. 228) Which of the following is an example of poka-yokes?

C. The day care center has carefully labeled bins for each parent to fill with food, diapers, clothes and toys so that one child's stuff will not confused with another's

13. (p. 179) At the partnership stage of the customer relationship, the firm is most concerned with:

C. The enhancement of its relationship with the customer

13. (p. 14) Without good mailing lists, businesses cannot engage in effective direct-marketing advertising. On average 20 percent of the U.S. population moves annually. Return Path is a company that provides changes of addresses to businesses. It takes a business's mailing list, compares it to address changes that it gathers daily in its database and makes any necessary corrections. Return Path is a part of which trend in the services marketing industry?

C. The growth in the use of technology-based services

14. (p. 14) Garrett and Hugh were having breakfast when they decided they wanted to have pizza and watch a video that night. Garrett turned on her computer, brought up the site of a local video store and ordered the movie Cold Mountain to be delivered to her doorstep at 7 p.m. Next she logged on to her favorite pizza restaurant's Web site and ordered a large pepperoni pizza and a bottle of her favorite soda to be delivered at 6:45 p.m. Garrett and Hugh enjoyed their evening. The next morning the video store had someone pick up their tape at Hugh's office. Which trend that influenced the development of services marketing is illustrated here?

C. The growth in the use of technology-based services

32. Which of the following research methods provides feedback on soft measures? A. Complaint solicitation B. Lost customer research C. Trailer calls D. Customer panels E. Critical incident studies

C. Trailer calls

33. Enterprise Rent-A-Car closely ties customer service to employee success. With a tracking system called the Enterprise Service Quality Index (ESQi), the company routinely follows up with customers by phone to determine their level of satisfaction with the company. Only completely satisfied customers count toward an employee ESQi score, which is used to measure employee's potential for promotion. Enterprise is using: A. Complaint solicitation B. Lost customer research C. Trailer calls D. Customer panels E. Critical incident studies

C. Trailer calls

32. (p. 529) American Woman Fitness Centers offer first-time customers a 3-month membership for $59, a saving of $20 off the regular 3-month membership price. American Woman Fitness Centers' pricing strategy is aligned with which of the following customer definitions of value? A. Value is all that I get for all that I give B. Value is everything I want in a service C. Value is low price D. Value is reliable service E. Value is the quality I get for the pace I pay

C. Value is low price

12. (p. 220-221) A business traveler checked into a Hyatt hotel and was given a room next to the elevator. When he turned on the television, he was greeted with a Hyatt customer service survey. He immediately took advantage of having the survey to let Hyatt know how unhappy he was with his room location. The business traveler would most likely be classed as a(n) _____ type.

C. Voicer

21. (p. 224) Which of the following is the BEST example of procedural fairness?

C. When Tia walked into the salon and asked to have her hair cut, the receptionist pointed to the sign that read, "To keep from inconveniencing our customers, this hair salon will not fix the hair of anyone who does not have an appointment"

When is a biased interpretation likely to occur during a discussion of a new restaurant?

C. When one party uses words like nice and different to describe the restaurant

50. (p. 239) When is a service guarantee inappropriate?

C. When service quality is truly uncontrollable

31. (p. 429) Which of the following is NOT a benefit of electronic channels? A. Low costs B. Wide distribution C. Customer convenience D. Buyer confidence about security of information E. Quick customer feedback

D. Buyer confidence about security of information

18. (p. 446) When a service firm's resources are fully employed, but not overused; and customers are receiving quality service in a timely manner, the firm is operating _____ capacity. A. Above maximum B. At maximum C. Above optimum D. At optimum E. Below optimum

D. At optimum

21. (p. 423) Encroachment and lack of perceived control are _____ of franchising to the _____. A. Benefits; franchiser B. Challenges; franchiser C. Benefits; franchisee D. Challenges; franchisee

D. Challenges; franchisee

29. (p. 226-235) Which of the following is NOT an example of a commonly used service recovery strategy?

D. Implement the service paradox

45. (p. 408-410) Compatibility management is most important in which of the following services? A. An Internet service provider B. A home correspondence course C. A do-it-yourself house cleaning D. Mental health support group E. Long distance telephone service

D. Mental health support group

47. (p. 238) Which of the following is NOT a benefit provided by a service guarantee? A. The ability to generate meaningful and relevant feedback from customers B. The ability to set clear standards for the organization C. Away to improve employee morale D. Away to increase a customer's sense of risk E. Away to create useful feedback that can be integrated into continuous improvement efforts

D. Away to increase a customer's sense of risk

A retail store manager instructed two new sales associates to greet customers quickly when they enter the store. On the first day the sales associates are working on the selling floor, one sales associate greets customers immediately after they enter the store, while the other associate greets customers after they have looked around for a minute or two. Which of the following risks incurred by describing services in words alone has led to the sales associates greeting customers at different time intervals?

D. Biased interpretation

46. Once an organization that is developing a physical evidence strategy has recognized the strategic impact of physical evidence, it must next: A. Update and modernize this physical evidence B. Clarify the tactical roles of the servicescape C. Create a cross-functional work team D. Blueprint the physical evidence of service E. Map the service encounter points

D. Blueprint the physical evidence of service

The first step in the new service-development process is:

D. Business strategy development or review

28. (p. 226) All of the following are causes for customer's brand switching EXCEPT:

D. A service paradox

15. (p. 221) The type of complainer that is called a(n) _____ has an above average propensity to complain. They have a very optimistic sense of the potential positive consequences of all types of complaining.

D. Activist

34. _____ conditions include background characteristics of the environment such as temperature and lighting. A. Ergonomic B. Holistic C. Physiological D. Ambient E. Environmentally-driven

D. Ambient

35. To reach business travelers (its largest market) Canadian Airline has installed gate-side business centers where tired business travelers can enjoy a hot shower or sit in massage chairs and listen to soothing music. These amenities are examples of which composite dimension of servicescapes? A. Spatial layout B. Signs C. Artifacts D. Ambient conditions E. Functional forms

D. Ambient conditions

2. (p. 388) Provider gap 3 would be created when: A. A fast-food restaurant uses a frequency marketing program B. An advertisement that promises a full-body massage for $5 C. Employees refund customer's money if they complain about the service they received D. A patient receiving an x-ray neglects to tell the technician she was pregnant E. Any of the above occurred

D. A patient receiving an x-ray neglects to tell the technician she was pregnant

41. (p. 435) Mike Leven is the president and co-founder of US Franchise Systems (USFS), one of the nation's fastest growing hotel companies. Its franchises include Microtel Inn & Suites, Hawthorne Suites and Best Inns and Suites. If a franchisee were to conduct market research on the motel preferences of a frequent business traveler, conflict could arise as the franchisee and USFS decide who own the research results. This would be an example of: A. Channel conflict over span of control B. Difficulty controlling quality and consistency across hotels C. Channel autonomy D. Channel ambiguity E. Tension between control and empowerment

D. Channel ambiguity

11. (p. 220-221) The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the sub flooring. He has not been back. A person who is a voicer type when it comes to complaining would react to this by:

D. Confronting the carpenter at another job site and demanding to know when he would be back to finish the floor

30. (p. 193) _____ arise(s) when the customer is required to pay a penalty to switch providers.

D. Contractual costs

12. (p. 393-394) When Roberta gets her hair cut, she carefully explains to the hair stylist how she expects it to look once the haircut is finished. Roberta is playing the role of a: A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

D. Contributor to quality and satisfaction

13. (p. 393-394) After Japonica and DeShawn returned home from a vacation in California, Japonica noticed that her new luggage had a five-inch tear in it. Rather than assume that the damaged luggage was a cost of flying and there was nothing to be done about it, she called the airline's customer service center. The person answering the phone at the center mailed her the instructions for getting her suitcase repaired at the airline's expense. Japonica and DeShawn were pleased with the repair when the suitcase was shipped home about a month later. In this scenario, Japonica and DeShawn played the role of: A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

D. Contributor to quality and satisfaction

14. (p. 393-394) A consumer who complains that the stain was not removed from her suit jacket is performing which of the following service delivery roles? A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

D. Contributor to quality and satisfaction

15. (p. 393-394) Customers who enjoy participating in the service delivery process are performing which of the following service delivery roles? A. Customer mix manager B. Competitor C. Productive resource D. Contributor to quality and satisfaction E. Recruiter

D. Contributor to quality and satisfaction

16. (p. 393-395) On the military base where Micah is stationed, there is a large, well-stocked garage where he can take his car to do necessary maintenance. The garage charges modest space and tool rental fees. Micah really enjoys tinkering with the engine, but he's not very knowledgeable. That's why he's glad that there is a trained mechanic on duty at the garage. The mechanic will answer Micah's questions and check his work to make sure that he has done nothing to damage his car's engine. Micah was especially proud of himself when he replaced his carburetor recently. Which of the following service delivery roles is Micah, the customer, performing? A. A customer mix manager and recruiter B. A competitor and productive resource C. A productive resource and contributor to quality and satisfaction D. A contributor to quality and satisfaction and competitor E. A recruiter and competitor

D. Contributor to quality and satisfaction

13. (p. 520) In _____ pricing, a service firm determines price by calculating component costs of the service and adding a mark-up. A. Contingency B. Fee for service C. Perceived value D. Cost-plus E. Going-rate

D. Cost-plus

15. (p. 30) Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining?

D. Customer expectations are higher because of the excellent service they receive from some companies

43. Which of the following statements does NOT describe a criterion for selecting behaviors and actions for customer-defined service standards? A. Customer-defined standards should be based on behaviors and actions that are very important to customers B. Customer-defined standards should be established for behaviors and actions that need to be improved or maintained C. Customer-defined standards should be accepted by employees D. Customer-defined standards should be reactive rather than predictive E. Customer-defined standards should be challenging, but realistic

D. Customer-defined standards should be reactive rather than predictive

44. (p. 196) Mass _____ entails designing products and services to fit each customer's individual needs.

D. Customization

32. (p. 401) Discover Card has an automated inquiry system that enables card members to obtain their current balance, available credit and payment information via telephone without speaking to an account representative. By increasing customer participation in the service process with its automated inquiry system, Discover Card is: A. Recruiting customers B. Positioning customers C. Managing the customer mix D. Defining customers' jobs E. Educating customers

D. Defining customers' jobs

11. (p. 444) A service firm is underutilizing its labor, equipment and facilities when: A. Demand exceeds maximum capacity B. Demand exceeds optimum capacity C. Supply and demand are balanced at the level of optimum capacity D. Demand is below optimum capacity E. Demand is below minimum capacity

D. Demand is below optimum capacity

36. Service firms use work simulation exercises to: A. Make their job offers more attractive to prospective employees B. Empower their employees C. Compete proactively for the best people D. Determine potential employees' service competencies and service inclinations E. Promote teamwork

D. Determine potential employees' service competencies and service inclinations

25. (p. 450) The Kingston Little Theater is a semi-professional troupe that presents six productions annually. It knows that if it presents a musical from the 1950s or the 1960s it will attract a large audience from the gay community to see the production. It could chart its demand pattern by looking at: A. How it acquires prospects B. Geographical influences on demand C. Audience empowerment D. Market segments E. Seasonal fluctuations

D. Market segments

38. During two-day orientation and extensive on-the-job training, each Ritz-Carlton Hotel employee learns the Ritz-Carlton Gold Standards, which contain a credo, 20 basics of service, knowledge of one's work area, answering the telephone with a smile, wearing immaculate uniforms and the three steps of service. The three steps of service are comprised of a warm and sincere greeting, anticipation and compliance with guests' needs and a fond farewell using the guest's name, if possible. The Ritz-Carlton Hotel is using which of the following human resource strategies? A. Hiring the right people B. Providing needed support systems C. Eliminating employee churn D. Developing people to deliver service quality E. Creating supportive servicescapes

D. Developing people to deliver service quality

44. (p. 467-468) Supermarkets with express checkout lanes for customers purchasing 10 items or less are using which of the following waiting line strategies? A. Establishing a reservation process B. Making waiting fun or at least tolerable C. Expanding waiting room capacity D. Differentiating waiting customers E. Employing operational logic

D. Differentiating waiting customers

22. (p. 484) 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 impalpability

D. Dynamic vs. static

30. (p. 399-400) Which of the following companies has had the greatest success with SSTs? A. Old Navy stores B. Domino's pizza C. Ford Motor Company D. EBay.com E. A landscaping company

D. EBay.com

18. (p. 14) Which of the following statements describes how consumers and employees are responding to technology-based services?

D. Employees are often reluctant to integrate technology into their work lives

44. (p. 437) By having a worldwide reservation system and allowing each agency to develop its own customer-oriented service processes, Hertz Rent A Car is using a(n) _____ strategy. A. Partnering B. Venture C. Control D. Empowerment E. Proactive

D. Empowerment

46. (p. 437) With _____ strategies, the service principal allows greater flexibility to intermediaries based on the belief that their talents are best revealed in participation rather than acquiescence. A. Autonomous B. Venture C. Control D. Empowerment E. Proactive

D. Empowerment

47. (p. 437) There are a number of Fantastic Sam's hair salons around the U.S. Assume Fantastic Sam's developed worker teams in its franchised salons to hire, discipline and handle financial tasks such as deposits and audits. The result has been improved revenues, profits and employee morale. Fantastic Sam's would be using a(n) _____ strategy. A. Partnering B. Venture C. Control D. Empowerment E. Proactive

D. Empowerment

34. (p. 229) Bruce was driving to work yesterday when he was nearly run off the road by a speeding furniture delivery truck. On the back of the truck was a phone number to call if you believed the driver was not handling the truck safely. Rather than deciding to never buy furniture from this furniture company, Bruce called the company and complained about the truck driver. The person who took his call thanked Bruce for his concern, apologized for the driver and promised to reprimand him. Which service recovery strategy was the furniture store using?

D. Encourage and track complaints

11. There is a sign next to the door that you can see as you leave Mildred's Restaurant. It reads, "If you enjoyed your meal, please tell a friend". In terms of the services marketing triangle, this sign is a part of Mildred's _____ marketing. A. Internal B. Interactive C. Integrated D. External E. Transactional

D. External

6. In the services marketing triangle, _____ marketing refers to communications a firm uses to make promises to customers regarding service delivery. A. Internal B. Interactive C. Relationship D. External E. Integrated

D. External

7. According to the services marketing triangle, an advertisement for Randonner Tours that describes the agency's customized bicycle tours through Europe is a form of _____ marketing. A. Internal B. Interactive C. Integrated D. External E. Relational

D. External

9. Flying across the Pacific Ocean is an eight-hour trip that could be dreadful if you did not fly Singapore Airlines. An ad that featured a customer saying, "The cabin crew makes flying with Singapore Airlines a pleasure" and announcing Singapore had won top honors for international travel in Business Traveler's magazine annual contest would be an example of _____ marketing. A. Internal B. Interactive C. Integrated D. External E. Relationship

D. External

17. (p. 442) The primary constraint on service production for a popular, well-established theater company that annually presents a series of musical comedies is: A. Equipment B. Labor C. Money D. Facilities E. Time

D. Facilities

46. When customers complained employees at Safeway Stores were unfriendly, Safeway instituted its Superior Service program, which required all employees to greet and make eye contact with every customer, always smile and offer help whenever the customer appeared to need any. Mystery shoppers were used extensively to make sure the employees were adhering to the program. In terms of the process for developing service standards, the mystery shoppers were an example of: A. Benchmarking B. Trailer surveys C. Relationship research D. Feedback mechanisms E. Experiential research

D. Feedback mechanisms

39. (p. 196) Retention strategies built around customization bonds:

D. Focus on mass customization and customer intimacy

7. (p. 419) _____ are service outlets licensed by a principal to deliver a unique service concept it has created or popularized. A. Agents B. Brokers C. Horizontal marketing systems D. Franchises E. Cooperatives

D. Franchises

3. Service companies experience difficulty in setting standards to match or exceed customer expectations because of a lack of: A. Simultaneous organization and presentation B. Vertical communication C. Employee partnering D. Functional integration E. Operational benchmarking

D. Functional integration

23. (p. 523) _____ is a form of competition-based pricing that involves charging the most prevalent price on the market for a service. A. Value pricing B. Price signaling C. Fee for service pricing D. Going-rate pricing E. Price trimming

D. Going-rate pricing

15. (p. 486) ______ 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. Inadequate horizontal communication

35. A regional chain of travel agencies uses role-playing to determine how courteously and efficiently a potential employee will handle difficult customers who keep changing their minds. The travel agency is assessing service: A. Competency B. Empathy C. Assurance D. Inclination E. Accountability

D. Inclination

11. (p. 8) On his way to work today, Terry saw a billboard for a physician's group that specialized in vascular surgery. In his local newspaper there was a full-page ad for a medical clinic that performed similar surgery. Then in his mail, he got a brochure from yet another medical clinic asking him if he wanted to get rid of ugly varicose veins. Which trend that influenced the development of services marketing concepts and strategies is illustrated here?

D. Increased competition in professional services

The primary goal of businesses that are in the first stage of their relationship with a customer is to:

D. Initiate communications in order to attract them

30. On a recent concert tour, Aerosmith sang a number of classic songs from its past albums, in addition to playing songs from its newest album. By singing both old songs to satisfy older audience members and songs from its more recent album to satisfy younger fans, Aerosmith was trying to reduce _____ conflict. A. Person/role B. Heterogeneous C. Organization/client D. Inter-client E. Demographic

D. Inter-client

29. At the restaurant last night, the restaurant owner asked the server to turn the television on the Braves game and to turn up the sound so he could hear it. A group at a nearby table asked the server to turn down the sound so they could hold a conversation. Yet another group of patrons asked that the television be turned to another channel that was showing a Clint Eastwood movie. The server had to deal with both _____ conflicts. A. Person/role and Inter-client B. Heterogeneous and person/role C. Organization/client and person/role D. Inter-client and organization/client E. Escalating and organization/client

D. Inter-client and organization/client

11. In a(n) _____ environment, the servicescape must be planned to attract, satisfy and facilitate the activities of both customers and employees simultaneously. A. Saleable service B. Self-service C. Customized services D. Interpersonal services E. Remote service

D. Interpersonal services

25. (p. 424) A broker: A. Typically becomes involved in financing B. Is a long-term representative of buyers and sellers C. Does not engage in negotiations D. Is paid by the party who hired them E. Is accurately described by all of the above

D. Is paid by the party who hired them

45. (p. 236) Many carwashes offer free replacement washes to car owners if it rains or snows within 24 hours of when they had their cars cleaned at the carwash. Because people who would take advantage of this service guarantee are the ones that are concerned about the appearance of their car, this service guarantee:

D. Is very meaningful

10. (p. 519) Which of the following statements describes a problem in cost-based pricing for services? A. Monetary price must be adjusted to reflect the value of non-monetary costs B. Heterogeneity of services limits comparability C. Prices may not reflect customer value D. Labor is more difficult to price than materials E. Information on service costs is not available to customers

D. Labor is more difficult to price than materials

41. (p. 235) When its sales were declining, Canadian Airline conducted a marketing survey to understand the expectations of the business traveler, its target market. It learned business travelers resent that they are bosses in their own offices but are totally controlled by the whims of the airlines when they travel. If Canadian Airline had only surveyed former customers who were still in their database, it would have used which service recovery strategy?

D. Learn from lost customers

2. (p. 513-515) Which of the following statements does NOT contain a reason why consumers lack accurate reference prices for services? A. Individual customer needs vary within the same service provider B. Collection of price information is overwhelming in services C. Many service providers are unable or unwilling to estimate price in advance D. Low degree of variability exists across providers of the same service E. Prices are not visible

D. Low degree of variability exists across providers of the same service

24. (p. 484) Which of the following services is highest in incorporeal evidence? A. Event planning B. A movie theater C. Vacation cruise D. Management consulting E. A drive-through liquor store

D. Management consulting

19. (p. 486) _____ 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. Managing horizontal communications

50. (p. 507-508) By creating cross-functional teams, 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. Managing internal marketing communications

4. (p. 418) Which of the following statements about service distribution is true? A. Intermediaries provide the same services for goods and services B. In service distribution, rights and/or titles to the service are passed through the distribution channel C. Channels for goods are more likely to be direct than channels for services D. Many of the primary functions that distribution channels serve have no meaning in services E. Warehousing is an important function in services marketing

D. Many of the primary functions that distribution channels serve have no meaning in services

42. (p. 534) The New York Yankees, a major league baseball team, offer half-price tickets for high school and college students every Wednesday home game at Yankee Stadium. The New York Yankees are using a(n) _____ pricing strategy. A. EDLP B. Value C. Penetration D. Market segmentation E. Cost-based

D. Market segmentation

25. (p. 524) Which of the following statements describes a problem with demand-based pricing for services? A. Prices may not reflect customer value B. Costs are difficult to trace C. Heterogeneity of services limits comparability D. Monetary price must be adjusted to reflect the value of non-monetary costs E. Labor is more difficult to price than materials

D. Monetary price must be adjusted to reflect the value of non-monetary costs

4. (p. 516) _____ costs represent other sources of sacrifice perceived by consumers when buying and using a service. A. Penalty B. Forfeit C. Opportunity D. Nonmonetary E. Psychological

D. Nonmonetary

21. When a local Taco Bell extended its operating hours on Friday and Saturday nights to 24-hour service to satisfy its college market, it was instituting a(n): A. Compliant standard B. Concrete substitution C. Internal anchor D. One-time fix E. Quick solution

D. One-time fix

22. Parisian, a specialty department store chain in the southeastern U.S., instituted a policy change allowing sales associates to accept personal checks up to $5000 without department manager approval. Before this policy change, sales associates could not accept checks over $250 without approval. Parisian's new check approval policy is an example of a(n): A. Compliant standard B. Concrete substitution C. Internal anchor D. One-time fix E. Quick solution

D. One-time fix

23. Nike's introduction of women-only boutiques called Nike Goddess to satisfy the needs of a growing number of women athletes is an example of a(n): A. Compliant standard B. Concrete substitution C. Internal anchor D. One-time fix E. Quick solution

D. One-time fix

45. (p. 24) Andreason Removal Company removes asbestos from old houses and buildings. Which of the following is an example of the people element of services marketing mix?

D. People who hire the company to remove the asbestos from their property

37. (p. 22) _____ refers to the fact that services cannot be saved, stored, resold or returned

D. Perishability

38. (p22) In India weddings are timed to occur when the stars and planets are in certain positions, which are deemed lucky. In 2005, almost 15,000 couples in New Delhi had their wedding on December 25, the day astrologers announced would be the best day for a wedding. Wedding planners had to prepare all year for this one date instead of planning lots of weddings throughout the year. The service provided by the Indian wedding planners illustrates the _____ characteristic of services.

D. Perishability

39. (p. 22) An attorney who charges a client for a missed appointment is taking into account the _____ characteristic of services.

D. Perishability

40. (p. 22) Bob Wilson owns and operates Flashdance Skating Rink. Last Monday afternoon, he had rented the rink out for a birthday party that was cancelled at the last minute due to a flu epidemic that had sickened three-fourths of the children who were invited. While Wilson kept the deposit, he did not get the skate rental fees or the snack food money he had anticipated from the rental. Wilson lost money as a result of the _____ characteristic of services.

D. Perishability

6. (p. 443) A professional baseball team that has unsold tickets for a Friday night game cannot resell those tickets for a game the following afternoon due to the _____ characteristic of services. A. Intangibility B. Simultaneous production and consumption C. Heterogeneity D. Perishability E. Divisibility

D. Perishability

5. When you visit the web site for Hyatt hotels, you can look at pictures of its newest hotels, register for its continuity programs and make reservations quickly. These elements of its web site are all examples of: A. Service encounter arena B. Technological intangibility C. Responsiveness D. Physical evidence E. A technological service arena

D. Physical evidence

13. (p. 485-486) 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. Physical rehabilitation therapy

45. (p. 535) Deana and Rod Li went on a one-week vacation at the Club Med Turkoise village, located in Turks and Caicos, a chain of islands in the Caribbean. Club Med's per person price of $1199 included round-trip air travel from New York, one-week accommodations, all meals, sports, activities and nightly entertainment. Club Med is using a _____ strategy. A. Market segmentation pacing B. Price framing C. Complementary pricing D. Price bundling E. Contingency pricing

D. Price bundling

44. Domino's Pizza uses its Team/Individual/Performance/Objectives (TIPO) system to relate employee bonuses to individual and team performance for a given time period. Domino's Pizza's TIPO system is: A. Including employees in the company's vision B. Empowering employees C. Creating employees as customers D. Promoting teamwork E. Developing service-oriented internal processes

D. Promoting teamwork

7. (p. 177) In acquaintance relationships, firms generally focus on:

D. Providing value comparable to the competition

24. (p. 397) Whether a household or a firm chooses to produce a particular service for itself or contract externally for the service depends upon a non-economic factor that is referred to as: A. Intuitive bonuses B. Extraordinary incentives C. Incentives for amelioration D. Psychic rewards E. Altruism

D. Psychic rewards

43. The first step in developing an effective physical evidence strategy is to: A. Map the physical evidence of the service B. Assess and identify physical evidence opportunities C. Clarify roles of the servicescape D. Recognize the strategic impact of physical evidence E. Update and modernize the physical evidence

D. Recognize the strategic impact of physical evidence

After an airplane arrives at its gate and passengers disembark, it is cleaned, restocked with food and beverages and refueled by maintenance workers before the next set of passengers board and the airplane departs on its next flight. The activities performed by maintenance workers to prepare the airplane for its next flight is part of which section of the service blueprint?

D. Support processes

44. Two decades ago, travelers who were looking for a place to rest for the night looked for the large, multi-colored Holiday Inn signs. Eventually, the signs started looking dated and seemed to remind people of early times even though the motel chain knew travelers wanted to stay in modern rooms with all the latest amenities. Holiday Inn recognized the signs were sending the wrong message during which stage of the physical evidence strategy? A. Map the physical evidence of the service B. Assess and identify physical evidence opportunities C. Clarify roles of the servicescape D. Recognize the strategic impact of physical evidence E. Update and modernize the physical evidence

D. Recognize the strategic impact of physical evidence

49. (p. 536) Kendra teaches swimming lessons at the YWCA pool. She will charge $75 per child for four weeks worth of lessons. Payment is not due until the child can swim the length of the pool. If the child cannot accomplish this task, he or she will be automatically enrolled in the next swimming lesson session until the child can swim the length of the pool. At that time, the parents will be expected to pay the $75. The YWCA is using a(n) _____ pricing strategy. A. Price framing B. Complementary pricing C. Price bundling D. Results-based E. Value-based

D. Results-based

A service blueprint is developed during which stage of the new service-development process?

D. Service development and evaluation

Pret a Manger, a London-based sandwich shop, introduced restaurant-quality sandwiches with fast-food velocity. This would be an example of a

D. Service improvement

When Madyson returned to her oncologist's office for a checkup. She was pleased to find the waiting room had been remodeled and it now contained a large aquarium. There was even a sign that said watching fish is an excellent stress reducer. Since Madyson did not feel nearly as anxious before going to the oncologist's examination room, she decided the addition of the swimming fish was a good:

D. Service improvement

are the most common types of new services.

D. Service improvements

41. The McDonald's arches and the Toys 'R' Us mascot Geoffrey Giraffe are both examples of which composite dimension? A. Ambient conditions B. Functional forms C. Spatial shapes D. Signs, symbols and artifacts E. Holistic icons

D. Signs, symbols and artifacts

42. Many people expected-checkered tablecloths and bottles of Chianti wine at Italian restaurants and fortune cookies at Chinese restaurants. These are both examples of which composite dimension? A. Ambient conditions B. Functional forms C. Spatial shapes D. Signs, symbols and artifacts E. Holistic icons

D. Signs, symbols and artifacts

32. (p. 22) Because of the _____ of services, service producers find themselves playing a role as part of the product itself and an essential ingredient in the service experience for the consumer.

D. Simultaneous production and consumption

33. (p. 22) Due to the _____ characteristic of services, customers can affect the transaction and how others perceive the transaction.

D. Simultaneous production and consumption

30. When students at Fairleigh Dickinson University complete a student evaluation of faculty questionnaire at the end of a semester, one of the items they are asked to evaluate on a five-point scale is, "The instructor presented the material clearly and summarized major points". This statement evaluation is a _____ measurement. A. Tangible B. Basic C. Formal D. Soft E. Informal

D. Soft

31. New owners of the Atlanta Falcons football team were concerned about declining attendance figures. As a result, Falcons staff set up kiosks at arena exits and asked attendees what would make the gameday experience more fun. The management was gathering _____ measurements. A. Tangible B. Basic C. Formal D. Soft E. Informal

D. Soft

34. American Airlines conducts ongoing in-flight surveys to assess passengers' perceptions of the ticket buying process, gate agents, flight attendants, food and beverage service, condition/comfort of airplanes and adherence to departure/arrival schedules. American Airline's research provides feedback on _____ measurements. A. Hard B. Basic C. Formal D. Soft E. Informal

D. Soft

35. A vacuum cleaner repair shop that called recent customers to ask if the people who waited on them were friendly and courteous, if the cleaner had been clean when it was returned to them and if they had any trouble finding the new store is collecting feedback on _____ measurements. A. Hard B. Basic C. Formal D. Soft E. Informal

D. Soft

26. (p. 458) Which of the following is NOT an example of a strategy used to shift demand to match capacity? A. Differentiate on price B. Modify timing and location of service delivery C. Vary the service offering D. Stretch capacity E. Communicate with customers

D. Stretch capacity

46. (p. 197) Aramark is a food service company that supplies meals to more than 200,000 hospital patients daily. To improve its service, it created a database that tracks patient preferences individually by hospitals, regionally and nationally. The accumulated database is used to provide better menus. Aramark's kitchen staff deliver the food and are referred to as hosts. All hosts have a minimum of 40 hours of training to teach them how to be courteous, efficient and quick. These trained hosts deliver customized meals from carts preloaded according to room number. According to patient surveys, Aramark has boosted patient satisfaction by almost 10 percent by providing customized meals. Aramark is using _____ in its customer retention strategy.

D. Structural bonds

47. (p. 197) Often, _____ are created by providing customized services to the client that are technology based and make the customer more productive.

D. Structural bonds

A company that was involved in event planning noted how many couples had a wedding catastrophe of some kind. As a result, it abandoned event planning and began offering wedding insurance to protect couples from financial losses due to weather emergencies, stolen wedding rings, damaged wedding dresses, etc. In terms of the service blueprint, the insurance underwriting company that makes it possible for them to offer the insurance cheaply is part of which section of the service blueprint?

D. Support processes

36. (p. 500-502) 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. Teach customers to avoid peak demand periods and see slow periods

10. (p. 7) Which of the following trends has directly influenced the development of services marketing concepts and strategies?

D. The fact that manufacturing firms are placing increased emphasis on providing services

19. (p. 423) Which of the following is a franchising benefit to the franchisee? A. More control than anticipated B. Low failure rates C. Low start-up costs D. The minimizing of the risks of starting a business E. All of the above

D. The minimizing of the risks of starting a business

12. (p. 485-486) 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 t even after it has been delivered E. The services are high priced

D. The service is difficult for the customer to evaluate t even after it has been delivered

18. (p. 223) Which of the following is the BEST example of outcome fairness?

D. The small movie theater gave all patrons two-free movie tickets for the night of their choice when the movie projector broke halfway through showing the newest Brad Pitt movie

6. (p. 4) Which of the following is an intangible component of a car repair shop?

D. The training the mechanic has received

48. Two decades ago, travelers who were looking for a place to rest for the night looked for the large, multi-colored Holiday Inn signs. Eventually, the signs started looking dated and seemed to remind people of early times even though the motel chain knew travelers wanted to stay in modern rooms with all the latest amenities. Because the signs were sending the wrong message, Holiday Inn used physical evidence strategy to create more modern signage. During which step of the physical evidence strategy would this change have occurred? A. The blueprinting of the physical evidence of service B. Updating and modernizing of ambient evidence C. The creation of a cross-functional service artifact D. The updating and modernizing of physical evidence E. Mapped the service encounter points

D. The updating and modernizing of physical evidence

10. Which of the following statements about service standardization and employee empowerment is true? A. For every service standardized, some degree of employee empowerment is always eliminated B. Any service standardization makes employee empowerment impossible C. Service standardization is not necessary when the organization empowers its employees D. The use of service standardization is compatible with employee empowerment E. There is no overlapping relationship between service standardization and employee empowerment

D. The use of service standardization is compatible with employee empowerment

39. (p. 462) Traditional yield management strategies are most profitable when: A. The service provider has a homogeneous target market B. Its target market is not price sensitive C. All members of the target market arrive at basically the same time D. Those who arrive early or reserve early are more price sensitive than those who reserve or arrive late E. All of the target market is equally price sensitive

D. Those who arrive early or reserve early are more price sensitive than those who reserve or arrive late

5. (p. 516) Many white-collar workers have heard the story about the busy executive who billed the doctor for keeping him waiting when the patient showed up promptly at his appointment time or has dreamed of doing it themselves. This is an example of the _____ costs of services. A. Convenience B. Monetary C. Psychological D. Time E. Search

D. Time

6. (p. 516) The process for installing Leo's new CD player took almost four hours, which Leo spent sitting in the Circuit City store waiting room. Leo paid _____ costs for the installation of his new CD player. A. Convenience B. Fiscal C. Physiological D. Time E. Search

D. Time

9. (p. 444) Peak demand regularly exceeds capacity in all of the following service businesses EXCEPT: A. Marriott hotels B. Rome's public transportation system C. Wendy's restaurants D. USA insurance company E. H&R Block tax preparers

D. USA insurance company

47. (p. 468) If you've ever watched the television show ER, you should have noticed how the emergency room staff selects patients on the basis of their need for treatment. Victims who have life-threatening injuries are seen ahead of those with minor complaints like an ingrown toenail or a case of poison ivy. Emergency rooms differentiate their waiting customers on the basis of: A. Willingness to perform service role B. Importance of the customer C. Duration of the service transaction D. Urgency of the job E. Payment of a premium price

D. Urgency of the job

35. (p. 530-531) Which of the following is NOT a type of differential used by service providers to synchronize demand and supply? A. Time B. Quantity C. Place D. Utility E. Incentive

D. Utility

26. (p. 524) Which of the following statements does NOT describe how consumers typically define value? A. Value is all that I get for all that I give B. Value is everything I want in a service C. Value is low price D. Value is reliable service E. Value is the quality I get for the price I pay

D. Value is reliable service

5. (p. 481) 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. Various parts of the company are responsible for different

8. (p. 220-221) People who complain can be categorized as:

D. Voicers, irates, activists and passives

2. (p. 496) 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. Word-of-mouth communication

6. (p. 177) WedSafe is the name of one of several companies that provide wedding insurance. For example, in the event that the wedding is called off, the couple can insure themselves against lose of their nonrefundable deposits. When its primary marketing effort is to satisfying its customers, it is in which stage of the customer relationship evolution?

E. Acquaintances

35. (p. 230) When DeWayne complained out loud that the hotel restaurant did not serve breakfast late enough in the morning, a hotel worker overheard him and went to the kitchen. When the hotel worker returned, he presented DeWayne with a plate of sweet rolls, a cup of coffee and the hotel's apology for having to close down the breakfast service early. Which service recovery strategy is being used in this example?

E. Act quickly

36. (p. 231) The empowerment of employees makes which of the following service recovery strategies easier to implement?

E. Act quickly

46. (p. 268, 273) The last step in building a service blueprint is to:

E. Add evidence of service at each customer step

8. (p. 424) Nancy Love represents several different mystery book authors to publishers and potential publishers. She operates as a sole proprietorship and is an example of a(n): A. Franchisee B. Cooperative C. Franchiser D. Retailer E. Agent

E. Agent

16. (p. 423) Mike Leven is the president and co-founder of US Franchise Systems, one of the nation's fastest growing hotel companies. Its franchises include Microtel Inn & Suites, Hawthorne Suites and Best Inns and Suites. Which of the following is a problem US Franchise Systems is likely to experience with one of its franchisees? A. Difficulty in maintaining and motivating franchisees B. Difficulty controlling quality and consistency across hotels C. Control of customer relationships by intermediary D. Highly publicized disputes and conflicts E. All of the above

E. All of the above

25. Which of the following is an example of a behavior and action that defines the performance expected by customers? A. Cost estimate is price customer pays B. Fixes the product right the first time C. Delivers the product on the promised date D. Greets customers within 5 minutes of entering the store E. All of the above

E. All of the above

40. (p. 429) Mike Leven is the president and co-founder of US Franchise Systems, one of the nation's fastest growing hotel companies. Its franchises include Microtel Inn & Suites, Hawthorne Suites and Best Inns and Suites. Which of the following is a problem US Franchise Systems is likely to experience with one of its franchisees? A. Channel conflict over objectives and performance B. Difficulty controlling quality and consistency across hotels C. Channel ambiguity D. Tension between control and empowerment E. All of the above

E. All of the above

49. (p. 276-277) New-service success depends on: A. Market-driven, customer-focused new-product processes B. The integration of the service within existing processes C. The emphasis on planning for and executing the new service process D. Strong external and internal marketing communications

E. All of the above

17. (p. 15) Which of the following statements about how technology has positively influenced service is true?

E. All of the above statements about how technology has influenced service are true

27. (p. 398) Which of the following is an example of an SST? A. A haircut B. Mowing your own grass C. An x-ray D. A car repair E. An electronic hotel checkout

E. An electronic hotel checkout

47. (p. 275) The Pet Palace washes, clips and grooms dogs. The owner and employees of the Pet Palace developed a mobile grooming vehicle. The new service allows them to go to the dog's home to wash, clip and groom it. How can Pet Palace NOT measure the success of its new service?

E. By looking at the commercials

9. Which of the following is an example of a remote service environment? A. Scarlett O'Haira hair salon B. First National Bank of Polk County C. The Home Depot D. Pizza Hut restaurant E. Carolina Power, an electricity provider

E. Carolina Power, an electricity provider

6. (p. 418-419) Which of the following is NOT an example of a service intermediary? A. Agents B. Brokers C. Electronic channels D. Franchises E. Co-operatives

E. Co-operatives

28. (p. 451) The busiest time for tax preparers is the week prior to April 15th. Many tax preparers send out mailings to their regular customers asking the customers to bring their tax information in to the tax preparer's office in January and February. The mailings explain how they will receive their tax refunds much quicker if they bring their information in now rather than wait till the last minute. Tax preparers are using which of the following strategies for shifting demand to match capacity? A. Differentiate on price B. Modify timing and location of service delivery C. Vary the service offering D. Stretch capacity E. Communicate with customers

E. Communicate with customers

35. (p. 429) Which of the following is a challenge faced by service providers who use electronic distribution? A. High costs B. Slow customer feedback C. Inconsistent delivery for standardized services D. Inability to customize E. Competition from widening geography

E. Competition from widening geography

50. (p. 536) The ad for legal services that Marla saw indicated the lawyers would receive no money unless their client did. To Marla, this statement indicated the legal firm offering this service was using: A. Synchro-pricing B. Two-part pricing C. Mixed bundling D. Contribution margin pricing E. Contingency pricing

E. Contingency pricing

26. (p. 425) Which of the following is NOT a benefit offered by agents and brokers to service principals? A. Possession of special skills and knowledge B. Customer choice C. Reduced selling and distribution costs D. Wide geographical representation E. Control over pricing

E. Control over pricing

32. (p. 193) Moonlight Catering has increased the deposit it requires before agreeing to cater an event to $300. This amount is nonrefundable and must be paid when Moonlight Catering is hired for the job. This increase in deposit will help Moonlight Catering achieve its goal of:

E. Customer retention

3. (p. 418) Terri Franciosa owns and operates a McDonald's restaurant franchise in New Jersey. Franciosa is the service: A. Contractor B. Principal C. Originator D. Collaborator E. Deliverer

E. Deliverer

7. (p. 443) At any given time, the lack of inventory capability in service firms can result in all of the following scenarios EXCEPT: A. Demand that exceeds maximum capacity B. Demand that exceeds optimum capacity C. Supply and demand balanced at the level of optimum capacity D. Demand that is below optimum E. Demand that is below minimum capacity

E. Demand that is below minimum capacity

16. (p. 486) 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. Differences in policies and procedures across distribution outlets

45. (p. 437) A service principal that wanted to adopt an empowerment strategy should: A. Help intermediaries develop customer-oriented service processes B. Develop intermediaries to deliver service quality C. Adopt a cooperative management structure D. Provide needed support systems E. Do all of the above

E. Do all of the above

49. (p. 410) Each year representatives of college activities boards throughout the U.S. gather at regional National Association of College Activities (NACA) conventions to listen, talk to and hire acts for the upcoming school year. Auburn Moon from Philadelphia is one of the agencies that attends the NACA conventions. The owner of this agency prepares a CD that contains two or three songs by each of the acts she represents and gives them out to students at the conventions. Students can listen to the CDs at their leisure and share the music with other decision makers on campus. With the CDs, Auburn Moon is _____ about its entertainers and their abilities. A. Motivating its customers B. Positioning its customers C. Managing the customer mix D. Defining its customers' jobs E. Educating its customers

E. Educating its customers

13. In terms of its servicescape complexity, The White Elephant, a restaurant that specializes in traditional Thai cooking is an example of a(n) _____ service environment. A. Tangible B. Lean C. Flexible D. Open E. Elaborate

E. Elaborate

24. _____ labor entails delivering smiles, making eye contact, showing sincere interest and engaging in friendly conversations with customers who are essentially strangers and who may not ever be seen again. A. Physical B. Mental C. Personal D. Accountable E. Emotional

E. Emotional

25. While being trained at Disney University in Orlando, Florida, Disneyworld employees are told they are not just employees but pivotal "cast members" in a "show". From street sweepers to monorail pilots, each cast member must go out of his or her way to make the resort seem unreal. No matter how tired employees are or how deeply guests may try their patience, employees must never lose composure. _____ labor is required from Disneyworld employees to always maintain composure. A. Physical B. Mental C. Personal D. Accountable E. Emotional

E. Emotional

41. (p. 463-470) The Long Island Railroad installed ticket vending machines in train stations to expedite the purchase of train tickets during periods of peak demand. The Long Island Railroad is using which of the following waiting line strategies? A. Establishing a reservation process B. Making waiting fun or at least tolerable C. Expanding waiting room capacity D. Differentiating waiting customers E. Employing operational logic to reduce wait

E. Employing operational logic to reduce wait

32. Another name for human factors design is _____, which could lead to the creation of airline passenger seats that provide adequate back support and leg room. A. Bioengineering B. Physiological tooling C. Physical factors design D. Holistic design E. Ergonomics

E. Ergonomics

33. The Hilton Hawaiian Village offers its guests mattresses that adjust to body contours and weight. The bed designed with air baffles and wooden slats is good for people with bad backs and those with varicose veins. These mattresses use _____ to create positive responses to the hotel's servicescape. A. Bioengineering B. Physiological tooling C. Physical factors design D. Holistic design E. Ergonomics

E. Ergonomics

13. (p. 221) The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is an irate type when it comes to complaining would react to this by:

E. Firing the first carpenter and hiring another one who is willing to complete the job

39. (p. 407) A sign at the entrance to the children's hospital contained the hospital's mission statement and explained its vision. This sign provided patients and their families with _____ orientation. A. Place B. Cultural C. Promotable D. Physical evidence E. Function

E. Function

40. To reach business travelers (its largest market) Canadian Airline has installed gate-side business centers where travelers can send last-minute faxes and e-mails. It has also installed continuous "power to the seat" for those who need to work on their laptops for the entire plane trip. These amenities are an example of: A. Spatial input B. Symbolic design C. Ambient conditions D. Targeted artifacts E. Functionality

E. Functionality

34. (p. 403-404) Private schools that have mentoring programs for new minority students are encouraging experienced students to perform which of the following customer jobs? A. Helping himself or herself B. Positioning the company C. Promoting the company D. Recruiting customers E. Helping others

E. Helping others

4. All of the following are elements of a hotel's servicescape EXCEPT: A. Business center for checking e-mail and sending faxes B. Lobby C. Convention facilities D. Swimming pool E. Housekeeping staff

E. Housekeeping staff

20. (p. 423) Which of the following is NOT a franchising challenge to the franchisee? A. Disappointing profits and revenues B. Lack of perceived control C. High fees and rigid contracts D. Encroachment and franchise saturation E. Inability to build brand awareness

E. Inability to build brand awareness

17. (p. 486) 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. Inadequate internal marketing communications

18. (p. 486) 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. Inadequate internal marketing communications

14. In the services marketing triangle, _____ marketing refers to all the activities the firm must carry out to train, motivate and reward its employees to enable the service promise to be delivered. A. Interactive B. Hierarchical C. Tactical D. External E. Internal

E. Internal

8. A dance studio is a(n) _____ environment. A. Self-service B. Vertical service C. Remote service D. Flexible service E. Interpersonal services

E. Interpersonal services

44. (p. 408-410) Compatibility management is LEAST important in which of the following services? A. Airplane flights B. Movie theater C. College basketball game D. Theme park E. Long distance telephone service

E. Long distance telephone service

9. (p. 17) Extron Electronics makes coaxial cables for connecting computers to all types of peripheral devices like printers, modems and fax machines. For the benefit of its customers, Extron provides a laminated card with pictures of all the possible cable connections that a customer could need. With this card, a customer can order from one to any number of connectors with as many feet of cable as is needed. Orders can be placed using a toll-free number, a fax number or an e-mail address. Company reps are also available 24-hours a day in case the customer is not sure which drawing on the card matches his or her needs. Orders are shipped within 48-hours of receipt. If a customer is not completely satisfied with his or her order, Extron has a 100 percent satisfaction guaranteed return policy. Which of the following trends that has influenced the development of services marketing concepts and strategies as illustrated by Extron's focus on customer service?

E. Manufacturing firms are placing increased emphasis on providing services

25. (p. 484) Which of the following products has the highest degree of nonsearchability? A. Motor oil B. Fresh doughnuts C. A wedding veil D. Theater performance E. Massage therapy

E. Massage therapy

26. (p. 484) 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. Mental impalpability

16. (p. 223) _____ concerns the results that customers receive from their complaints.

E. Outcome fairness

35. (p. 455) Hewlett-Packard uses FedEx to handle all of its fulfillment orders from its retail web site. Once an order is placed at the HP web site, it is automatically transmitted to FedEx's Memphis headquarters. Orders are packaged at FedEx's warehouse and shipped by FedEx to the HP customer. This arrangement was set up as a long-term solution to problems with distribution capacity that HP experienced prior to the implementation of this arrangement. Which strategy is HP using to flex demand to meet capacity? A. Aligning its capacity with demand fluctuations B. Stretching its existing capacity C. Shifting demand to match its capacity D. Smoothing peaks and valleys of demand E. Outsourcing

E. Outsourcing

12. (p. 179) The key to success in the _____ stage of the customer relationship is the firm's ability to organize and use information about individual customers more effectively than its competitors.

E. Partnership

47. (p. 24) Ruth recently visited a day care center that is convenient to her work. Ruth is thinking of letting the day care workers care for her infant son while she is at work. The first thing Ruth noticed when she walked in the door of the facility was the smell of urine. There was a dead plant in the window. Three babies were crying and no one was paying them any attention. Other children that Ruth could see looked listless. In this example, Ruth experienced the negative side of the _____ element of the day care center's services marketing mix.

E. Physical evidence

48. (p. 24) Historically, the Japanese have had poor dental care. As part of their beauty regimen, the Japanese do have a habit of lightening and whitening their skin. Teethart has developed "tooth manicure" salons, which allow Japanese to match their teeth coloration to their skin. Each treatment takes place in a small booth, which contains an ergonomically-designed chair, muted lights and New Age-style music. The walls are painted calming shade of blues and greens. Teethart uses the _____ element of its service to reduce stress associated with dental procedures.

E. Physical evidence

31. The last time Dominique traveled on an airplane she took an antihistamine before her flight to keep her ears unclogged and prevent an earache. Dominique took an antihistamine to prevent a(n) ____ response to the airplane's environment. A. Perceptual B. Emotional C. Cognitive D. Tensional E. Physiological

E. Physiological

31. A state auditor who is expected to deliver quality, individualized service to state offices and departments while at the same time finishing jobs as quickly as possible is experiencing a(n) _____ tradeoff: A. Demand/supply B. Client/organization C. Customization/standardization D. Inclination/competency E. Quality/productivity

E. Quality/productivity

32. A telephone order taker for a catalog retailer is expected to treat each customer with concern and courtesy and be willing to spend as much time as needed to get the order taken, while not leaving other customers waiting on hold for too long. The telephone order taker is likely to experience _____ tradeoff. A. Demand/supply B. Client/organization C. Customization/standardization D. Inclination/competency E. Quality/productivity

E. Quality/productivity

37. (p. 531) If a family has one child enrolled in Kid's Corral day care center, it costs $75 per week. If a family has two children enrolled in Kid's Corral, it costs $135. Step-by-Step is using a(n) _____ differential. A. Place B. Time C. Quality D. Incentive E. Quantity

E. Quantity

17. (p. 521-522) In which of the following service industries would you most likely find the service provider using competition-based pricing? A. Banking industry B. Hospital industry C. Legal services D. Tax accounting business E. Retail book industry

E. Retail book industry

7. (p. 517) _____ cost refers to the effort invested in identifying and selecting a service from your consideration set. A. Convenience B. Monetary C. Psychological D. Time E. Search

E. Search

In which of the new-services development processes does a service firm produce a description of the service that represents its specific characteristics and features?

E. Service concept development and evaluation

24. (p. 21) Which of the following statements describes a marketing implication that results from the intangibility of services?

E. Services cannot be inventoried

23. (p. 484) 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. Services such as an MRI or a cat scan have a high level of mental impalpability

47. A medical clinic conducted a research study to determine the standard for patients' wait times in the reception area by having the patients note the time when they arrived on a sign-in sheet. As each patient went back to the examining room, the office manager noted the time on another sheet and then asked the patient five questions about his or her perceptions of the wait. The medical clinic conducted a _____ study to establish measures and target levels for wait time standards. A. Critical incident benchmarking B. Event-triggered requirements C. Hypothetical satisfaction-performance D. Participant observation tracking E. Simple perception-action correlation

E. Simple perception-action correlation

16. One of Florida Power & Light's customer-defined standards is "Do not put customers on hold or transfer them". "Do not put customers on hold or transfer them" is a _____ customer-defined standard. A. Responsive B. Intangible C. Informal D. Measurable E. Soft

E. Soft

17. The _____ customer-defined standards are opinion-based measures and cannot be directly observed. A. Responsive B. Intangible C. Informal D. Measurable E. Soft

E. Soft

18. New management of the Falcons football team surveyed former season ticket holder to determine why they were no longer attending the games. As a result, it set "Clean and well-stocked restrooms" as one of its _____ customer-defined standards. A. Responsive B. Hard C. Informal D. Measurable E. Soft

E. Soft

20. Enterprise Rent-A-Car closely ties customer service to employee success. With a tracking system called the Enterprise Service Quality Index (ESQi), the company routinely follows up with customers by phone to determine their level of satisfaction with the company. Only completely satisfied customers count toward an employee ESQi score, which is used to measure employee's potential for promotion. Enterprise uses a _____ customer-defined standard. A. Reactive B. Proactive C. Informal D. Hard E. Soft

E. Soft

8. (p. 3, 11) Which of the following is NOT an example of a service business?

E. Soft drink bottler

33. (p. 454-455) Which of the following is NOT a long-term strategy for adjusting capacity with demand fluctuations? A. Cross-training employees B. Scheduling down time during periods of low demand C. Renting additional facilities or equipment D. Using part-time employees E. Stretching existing labor

E. Stretching existing labor

Rama thought the light blue paint on the walls of the hospital waiting area was a vast improvement over the old brown paint. The repainting of the walls of the service provider is an example of a:

E. Style change

20. (p. 187-188) According to the text, the lifetime value of a customer is not influenced by:

E. The communication strategy

11. (p. 428) The largest impediment for company-owned service chains is: A. The maintenance of perishable inventories B. Customer empowerment C. The creation of store autonomy D. Controlling customer relationships E. The company must bear all of the financial risks

E. The company must bear all of the financial risks

3. Progressive Insurance looked at insurance from the customers' viewpoint and saw how difficult it was to get an auto claim processed and paid by insurance companies. Then the company crafted its service strategy around solving that problem. The company has fleets of claim adjustors on the road every day, ready to rush to the scene of an accident in their territory and provide fast claims processing—sometimes on the spot. What advice would you give Progressive Insurance if it wanted to expand its market to include China, where there is a rapidly growing middle class? A. Use the same service model the company uses in the U.S. and success is guaranteed B. It is impossible because service excellence is not appreciated in other countries C. Values are the same worldwide so Progressive should have no problem D. Other than some language differences, Progressive should have no difficulty because its service is based on human interaction E. The many legal, cultural and language barriers will make it very challenging

E. The many legal, cultural and language barriers will make it very challenging

18. (p. 185) How would a day care center operator benefit from the implementation of relationship marketing with the parents of three preschool children?

E. The parents would spread the word about their happiness with the services provided by the day care center

29. (p. 525) Salespeople are often on the road three nights every week. They cannot afford to stay in the most luxurious of hotels, but they do appreciate amenities like a good mattress, a firm pillow and a comfortable work area. They want the price they pay to be commensurate with the amenities provided by the hotels. They tend to define value as: A. All that I get for all that I give B. Whatever I want in a service C. Low price D. Reliable service E. The quality I get for the price I pay

E. The quality I get for the price I pay

38. (p. 532) In which of the following situations would a penetration pricing strategy be inappropriate? A. Sales volume of the service is very sensitive to price B. Economies in unit costs can be achieved by operating at large volumes C. A service faces threats of strong potential competition very soon after introduction D. There is no class of buyers willing to pay a higher price to obtain the service E. The service is a major improvement over past services

E. The service is a major improvement over past services

12. (p. 10) Which of the following statements about services is true?

E. The skills needed for managing services differ from those used for managing manufacturing businesses

14. (p. 445) The primary constraint on service production for a lawyer is: A. Equipment B. Utility C. Money D. Facilities E. Time

E. Time

39. After determining that responsiveness was a major concern of customers, American Express conducted additional research to establish the exact number of days customers defined as responsive for the various company processes (e.g., 2 days for reissuing lost cards and 15 days for deciding on an application). By conducting additional research, American Express was addressing which of the following steps in the process for developing customer-defined standards? A. Developing feedback mechanisms for measurement of standards B. Identifying existing or desired service encounter sequences C. Establishing measures and target levels for standards D. Deciding whether hard or soft standards are appropriate E. Translating customer expectations into behaviors and actions for each service

E. Translating customer expectations into behaviors and actions for each service

40. New owners of the Atlanta Falcons wanted to increase attendance by giving customers want they wanted. After determining that family-oriented halftime shows was an important consideration for a large portion of its target market, the Falcons researched specific ideas such as fireworks displays, a battle of the bands featuring local high school bands, drawings for prizes and musical concerts. The additional research would have been done during which step of the developing customer-defined standards? A. Developing feedback mechanisms for measurement of standards B. Identifying existing or desired service encounter sequences C. Establishing measures and target levels for standards D. Deciding whether hard or soft standards are appropriate E. Translating customer expectations into behaviors and actions for each service

E. Translating customer expectations into behaviors and actions for each service

47. (p. 535-536) The three types of complementary pricing are: A. Substitute pricing, price bundling and leader pricing B. Leader pricing, value pricing and price lining C. Leader pricing, penetration pricing and captive pricing D. Two-part pricing, results-based pricing and bundling E. Two-part pricing, captive pricing and loss leadership pricing

E. Two-part pricing, captive pricing and loss leadership pricing

15. Which of the following is NOT an example of a hard customer-defined service standard? A. On-time delivery B. 36-hour response time C. Number of missed pickups D. Orders entered the same day they are received E. Understand the customer's question or request

E. Understand the customer's question or request

3. (p. 516-518) All of the following examples are nonmonetary costs EXCEPT: A. Time costs B. Search costs C. Convenience costs D. Psychological costs E. Utility costs

E. Utility costs

20. (p. 447-450) In order to manage fluctuating demand in a service business, an organization must understand all of the following EXCEPT: A. How to chart demand patterns B. Random demand fluctuations C. Demand patterns by market segment D. Predictable demand cycles E. Vertical demand configurations

E. Vertical demand configurations

30. (p. 489) 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. Visualization

30. (p. 21) Parents everywhere are very busy and often cannot spend time with their children. In the Netherlands, children who want a bedtime story can call the telephone service and request to listen to one of twenty prerecorded fairy tales. The phone company charges $7 per story. Because of the prerecording of the stories, this bedtime service reduces the problems typically associated with the _____ characteristic of services.

Heterogeneity

During the commercialization stage, the service goes live and is introduced to the marketplace. This stage has two primary objectives. One is to build and maintain acceptance of the new service among large numbers of service delivery personnel who will be responsible for day to day service quality. The other is to:

Monitor all aspects of the service during introduction and through the complete service cycle

The Cirque du Soleil fused elements of theater with traditional circus skills to create a whole new form of entertainment. Cirque du is an example of a:

New service for the currently served market

29. (p. 264) The final stage of the new service development process is:

Post introduction evaluation

Which of the following is NOT a risk incurred by describing services in words alone? A. Oversimplification B. Incompleteness C. Subjectivity D. Biased interpretation E. Transformation

Transformation