MGT 430- 2

According to Frei and Morriss, " . . . __________ doesn't just tell you what to do; it shows you how to think." A) training B)new-employee orientation C) Culture D)a service manifesto E) Management

c) Culture

The second step of developing a service firm's communication strategy is to A)Establish communication objectives B)Set the communication budget C)Establish message and media strategies D)Select a target market E)Workout a positioning strategy

A) Establish communication objective

The authors of your textbook describe __________ as "the practice of marketing two or more services in a single package at a single price." A) price bundling B) flat-rate pricing C)efficiency pricing D)benefit-driven pricing E) cost-leader pricing

A) price bundling

Which of the following companies do Frei and Morriss present as an example of funding great service by reducing the company's cost of providing it? A)Progressive B)commerce bank C) spirit air D) starbucks E)piggly wiggly

A) progressive

With regard to a service firm's physical evidence, which of the following would Hoffman and Bateson most likely not categorize as "other tangibles"? A)The company's reputation in the community B)The company's billboard advertisement beside a major highway C)The invoices that the company sends to its clients D)Employees' uniforms E)The company's business cards

A) the company's reputation in the community

Frei and Morriss use the label "__________" to describe a meaningful advantage that your company has over competitors. A)wedge B)hammer C)hook D)salience E)anchor

A) wedge

Frei and Morriss explain four ways that service companies can recover the cost of providing great service. Which of these do they say is the most reliable A)Funding source 2 (reduce costs in ways that also improve service) and funding source 3 (improve service in ways that also reduce costs) B)Funding source 4: Get customers to enjoy doing some of the work for you C)Funding source 2: Reduce costs in ways that also improve service D)Funding source 3: Improve service in ways that also reduce cost E)Funding source 1: Get customers to pay you extra for it

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

With regard to the "communications mix," with which of the following would Hoffman and Bateson likely agree? A)The communications mix consists of five categories of tools: personal selling, advertising, publicity, sales promotion, and sponsorships. B)Advertising is the only communication tool that enables two-way communication. C)Of the available communication tools, personal selling is the fastest in creating overall awareness D)Using more than one communications tool to communicate the same message is known as "cannibalism. E)Personal selling is usually the most credible source of communication

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

Frei and Morriss state that the concepts in their book Uncommon Service are "rooted in __________ principles." However, they go on to say that "__________ is where we find some of the largest obstacles to excellence." A)engineering; psychology B)marketing; operations management C)mathematical; talent (or lack thereof) D)psychological; communication E)Human Resources; the environment

A)engineering; psychology

In the book Uncommon Service: How to Win by Putting Customers at the Core of Your Business, authors Frei and Morriss introduce The Four Service Truths: 1) You can't be good at everything, 2) _______________, 3) It's not your employees' fault, and 4) You must manage your customers. A)someone has to pay for it B)if at all possible, buy a franchise C)beware of "easy" venture capital D)traditional target marketing doesn't work anymore E)social media marketing is overrated

A)some one has to pay for it

When Frei and Morriss spell out the service-excellence equation (Service Excellence = Design x Culture), by "design" they mean design of __________. A)the blueprint of the business model B)the tangible elements in the service experience C) the uniforms worn by the employees D)the company logo E)the organization chart

A)the blueprint of the business model

Demand is said to be __________ if a change in price results in a significant change in demand. This effect is generally of __________ magnitude for services than for tangible goods. A)inelastic; greater B)elastic; lesser C)inelastic; lesser D)elastic; greater E)iconoclastic; lesser

B) elastic; lesser

The primary reason for using sales promotions is to A)Create overall awareness, and do so quickly B)Increase short-term sales C)Tailor the message to each customer D)Do all of the above E)Do both A and B

B) increase short-term sales

conomic theory suggests that consumers have a price in mind (let's call it $X) that reflects the value of the combined benefits of a product or service. As long as the total cost of purchasing the product or service is lower than $X, they will be willing to buy. The authors' name for "$X" is __________. A)point of diminishing returns B)reservation price C)sacrifice threshold D)reference price E)value benchmark

B) reservation price

The third step of developing a service firm's communication strategy is to A)Establish communication objectives B)Set the communication budget C)Establish messages and media strategies D)Select a target market E)Workout a positioning strategy

B) set the communication budget

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

B) the all-you-can-afford approach

With regard to developing a servicescape with the target market in mind, with which of the following would the authors of your text likely agree? A)"Apathetic customers" make purchase decisions based on price. B)"Economic customers" will avoid service establishments that appear too fancy or elaborate. C)Ethical customers" want to be pampered and attended to D)"Cosmopolitan customers" tend to support smaller or local service providers as opposed to larger or national E)"Personalized customers" tend to seek convenience above all else.

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

With regard to price sensitivity, which of the following statements is consistent with information presented by Hoffman and Bateson? A)The more consumers have to rely on the price of a particular type service as a "quality cue," the higher their price sensitivity for that type of service will be. B)As switching costs for a particular service increase, consumers' price sensitivity toward that service will tend to decrease. C)When price sensitivity is high, demand tends to be inelastic. D)Price sensitivity decreases as the difficulty in comparing substitutes decreases. E)As the availability of substitutes increases, price sensitivity generally decreases.

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

Frei and Morriss explain four ways that service companies can recover the cost of providing great service. Which of these do they say is the simplest, from a design perspective? A)Funding source 4: Get customers to enjoy doing some of the work for you B)Funding source 1: Get customers to pay you extra for it C)Funding source 2: Reduce costs in ways that also improve service D)Funding source 2 (reduce costs in ways that also improve service) and funding source 3 (improve service in ways that also reduce costs) E)Funding source 3: Improve service in ways that also reduce costs

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

During the growth stage of a service offering's product life cycle, one of the service firm's communication objectives is to A)Create brand awareness he way for personal selling efforts to be conducted later Encourage trial B)create a positive attitude toward the service offering, relative to competitive offerings C)Prepare the way for personal selling efforts to be conducted later D)Encourage trial E) Minimize clients' cognitive dissonance over past purchases

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

Frei and Morriss state: "Leadership, at its core, is about making __________—and making sure that __________." A)more profit with less investment; operating costs are kept to a minimum B)other people better as a result of your presence; the impact lasts in your absence C)your company run faster and harder than your competitors; every employee is a superstar D)the company excellent at everything that it does; excellent service does not cost customers any more than mediocre service E)employees think like you do; they respond appropriately to your charm and charisma

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

Frei and Morriss state that "the primary obstacle to service excellence is not the ambition to be great, but the __________." A)failure to benchmark performance B)stomach to be bad C)absence of actionable strategy D)will to be greatest E)proliferation of mediocre employees

B)stomach to be bad

During the maturity and decline stages of a service offering's product life cycle, one of the service firm's communication objectives is to A)Enhance the firm's image B)Provoke an immediate buying action C)Encourage repeat purchases D)Prepare the way for personal selling efforts to be conducted later E)Encourage trial

C) encourage repeat purchases

The science of using physical evidence to create service environments—and its influence on the perceptions and behaviors of individuals—is called A)Consumer neuropathy B)Servometrics C)Environmental psychology D)Servitecture E)Buy-o-genics

C) environmental psychology

The fifth step of developing a service firm's communication strategy is to A)Establish communication objectives B)Set the communication budget C)Establish message and media strategies D)Select a target market E)Monitor, evaluate, and control the communication strategy

C) establish message and media strategies

Which of the following is one of the "three broad categories" of physical evidence that Hoffman and Bateson describe? A)Interstate highway access B)Headquarters location C)Facility exterior D)Proximity to competitors E)Regional demographics

C) facility exterior

The __________ portion of the servicescape model (Fig. 8.3) is "a perceived overview or image of the firm based on the physical evidence," and is "a composite of mental images of the service firm's physical facilities." A)Ambient conditions B)space/functions C)Holistic environment D)Technical core E)Objectively-cognitive

C) holistic environment

During the introduction stage of a service offering's product life cycle, one of the service firm's communication objectives is to A)create a positive attitude toward the service offering, relative to competitive offerings. B)Provoke an immediate buying action C)Introduce the service offering and create brand awareness D)Influence existing customers to purchase again E)Minimize clients' cognitive dissonance over past purchases

C) introduce the service offering and create brand awareness

A service firm's __________ is a carefully thought-out plan to shape consumers' perceptions of the firm, relative to its competitors. A)Choice of a mascot B)Service blueprint C)Positioning strategy D)Mission statement E)Tangibility footprint

C) positioning strategy

The three components of the SOR model are A)satisfaction, obfuscation, and remorse. B)Shopping,obtaining, and remittin C)Stimulus, organism, and response D)Sales, optimization, and revenue E)Service, observation, and review

C) stimulus, organism, and response

Frei and Morriss state that "the number one obstacle to great service—number one by a long shot—is __________." A)customers' feeling of entitlement to customized services B)managers' desire to hire the least expensive employees C)the emotional unwillingness to embrace weakness D)management's failure to establish standards procedures E)the generation gap between managers and service workers

C) the emotional unwillingness to embrace weakness

As a communication tool, advertising is A)A way for service firms to adapt to consumers' changing media habits B)The only way to tailor the message to each customer C)The fastest way to create overall awareness D)Used primarily to increase short-term sales E)Usually free

C) the fastest way to create overall awareness

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

C) the percentage of sales technique

Frei and Morriss explain four ways that service companies can recover the cost of providing great service. Which of these do they say gets the most attention? A)Funding source 2: Reduce costs in ways that also improve service B)Funding source 1: Get customers to pay you extra for it C)Funding source 4: Get customers to enjoy doing some of the work for you D)Funding source 2 (reduce costs in ways that also improve service) and funding source 3 (improve service in ways that also reduce costs) E)Funding source 3: Improve service in ways that also reduce costs

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

Which of the following statements is not consistent with information presented by Hoffman and Bateson? A) Price is one of the least researched and mastered areas of marketing. B)Of all the marketing mix variables (i.e., product, distribution, price, promotion), price has the most direct effect on profitability. C)Just like the price of a tangible good, the price of a service should be determined by the cost of production D)In general, marketers of services lack expertise in the area of pricing E) Price is the most easily controlled element in the marketing mix

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

According to Frei and Morriss, __________ segments tell us how to identify and communicate with different kinds of customers; __________ segments tell us how to serve customers differently. A)measurable; accessible B)primary; secondary C)marketing; operating D)homogeneous; heterogeneous E)demographics; benefit

C)marketing; operating

At Visions Day Spa, a client can purchase a "Day at the Spa" for $165. Included are a haircut, manicure, pedicure, and 60-minute massage. With its "Day at the Spa" service offering, Visions is engaging in A)price skimming B)price fixing C)price bundling D)service stockpiling E)product-line pricing

C)price bundling

With regard to the "continuum of facility use" (Figure 8.4), which of the following would Hoffman and Bateson not classify as an "interpersonal service"? A)Sandals Resort B)Regis Hair Salons C)Southwest Airlines D)Netflix E)Curves Health Club and Fitness Center

D) Netflix

Regarding price, which of the following statements is consistent with information presented by the authors of your textbook? A)of all the marketing mix variables (i.e., product, distribution, price, promotion), price has the most direct effect on profitability. B) it is one of the least researched areas of marketing C)it is the most easily controlled element of the marketing mix D)all of the above E)Both B and C

D) all of the above

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

D) all of the above

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

D) all of the above

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

D) all of the above

During the introduction stage of a service offering's product life cycle, one of the service firm's communication objectives is to A)Enhance the firm's image B)Provoke an immediate buying action C)Influence existing customers to purchase again D)Prepare the way for personal selling efforts to be conducted later E)Create a positive attitude toward the service offering, relative to competitive offerings

D) prepare the way for personal selling efforts to be conducted later

The first step of developing a service firm's communication strategy is to A)Establish communication objectives B)Set the communication budget C)Establish message and media strategies D)Select a target market E)Work out a positioning strategy

D) select a target market

Question 2 Physical evidence serves all of the following purposes except: A)Differentiating the firm from its competitors B)Packaging the service C)socializing customers and employees in terms of their roles, behaviors, and relationships. D)showcasing the good, the bad, and the ugly of the technical core E)facilitating the flow of the service delivery process.

D) showcasing the good, the bad and the ugly of the technical core

Shannon Bohannon and her friend are visiting Chipotle Mexican Grill for the first time. While the "assembly line" service employees are making her burrito in accordance with her instructions, Shannon says to her friend, "This place is a lot like Qdoba." Hoffman and Bateson would refer to Shannon's cognitive response as A)An "inference of symbolic meaning" B)"Belief" C)"Psychological response" D)"Categorization" E)"Avoidance behavior"

D)"categorization"

With regard to pricing strategy in the service sector, which of the following statements is not consistent with information presented by Hoffman and Bateson? A)In the service sector, "price" may be called any of several different names, such as "fare," "rate," or "fee." B)For the consumer, it is more difficult to comparing the prices of competing services than it is to compare prices of tangible goods. C)A consumer who doesn't like the price of a tangible good often cannot make the product instead of buying it. A consumer who doesn't like the price of a service, on the other hand, may very well decide to perform the service himself or herself. D)Compared to purchasers of tangible goods, service customers are less likely to use price to determine quality. E)When the price of a tangible good is temporarily discounted, consumers will often buy large quantities and store the extras for future use. A discounted service price, on the other hand, tends not to result in such "stockpiling" by consumers.

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

During the growth stage of a service offering's product life cycle, one of the service firm's communication objectives is to A)Introduction to the service offering B)Prepare the way for personal selling efforts to be conducted later C)Minimize clients' cognitive dissonance over past purchases D)Provoke an immediate buying action E)Encourage repeat purchases

D)Provoke an immediate buying action

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

D)Psychic cost; monetary cost

Regarding loyalty programs, which of the following statements is not consistent with information presented by Frei and Morriss? A)When companies pay customers (through discounts) to remain customers, that's not a loyalty program. It's a customer retention program. B)With a true loyalty program, you provide additional service features to your best customers. They, in turn, become both committed to your brand and willing to spend more money for services C)When companies pay customers to try out their products and services, that's not a loyalty program. It's a customer acquisition program. D)The frequent-flyer program of a typical airline (e.g., Delta, American, United) is an excellent example of a "true loyalty program."

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

During the maturity and decline stages of a service offering's product life cycle, one of the service firm's communication objectives is to A)create a positive attitude toward the service offering, relative to competitive offerings. B)Encourage trail C)Prepare the way for personal selling efforts to be conducted later D)Express gratitude to the existing customer base E)Enhance the firm's image

D)express gratitude to the existing customer base

Service providers who are successful in the long run A)envision pricing as "price setting," as opposed to "strategic pricing." B)set their prices by calculating what it costs them to provide the service, then adding a predetermined markup percentage. C)try to match their competitors' prices. D)try to establish a price that represents value to the customer. E)do not take customers' time costs, energy costs, or psychic costs into consideration; rather, they use only monetary cost as a basis for setting their prices.

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

Frei and Morriss present four alternative sources of funds to cover the cost of providing great service. One of these is "Charge customers extra for it—in a palatable way." What does the word palatable mean, exactly? A)"Universal," meaning charge every customer, regardless of which ones use the great feature(s) of the service and which ones do not B)"Huge," meaning charge as much as you can, hopefully much more than it costs you to provide the great service feature(s) C)Sneaky," meaning do everything you can to hide the fact that you're charging more D)"Pulsing," meaning charge extra for a period of time, then remove the extra charge for an equivalent period of time, then return to charging extra for that same length of time, then remove the charge, and so on E)Tasteful," meaning acceptable or satisfactory

E) "tasteful", meaning acceptable or satisfactory

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

E) Both B and C

During the growth stage of a service offering's product life cycle, one of the service firm's communication objectives is to A)Encourage repeat purchases B)Minimize clients' cognitive dissonance over past purchases C)Enhance the firm's image D)Prepare the way for personal selling efforts to be conducted later E)Create brand awareness

E) Create brand awareness

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

E) Do both A and B

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

E) both B and C

During the introduction stage of a service offering's product life cycle, one of the service firm's communication objectives is to A)Enhance the firm's image B)Influence existing customers to purchase again C)Express gratitude to the existing customer base D)Provoke an immediate buying action E)Create brand awareness

E) create brand awareness

"Chopper") both represent service advertisers' attempts to A)"feature the working relationship between customer and provider." B)"determine and focus on relevant service quality dimensions." C)"develop a word-of-mouth communications network D)"balance service providers' selling and operating roles." E)"Tangibilize and intangible"

E)"tangibilize and intangible"

With regard to "high-contact" versus "low-contact" service firms, with which of the following would Hoffman and Bateson likely agree? A)Typically, the customer is less involved in the production of high-contact services than in the production of low-contact services B)Designing facilities for low-contact services is usually more expensive than designing facilities for high-contact services. C)In low-contact operations, each stage of the service process has a direct and immediate effect on the customer. D)Firms that offer low-contact services should choose locations that are convenient for customers, even if those locations are not convenient for employees or suppliers. E)In low-contact service operations, facility layouts should be designed to maximize employee expectations and production requirements

E)In low-contact service operations, facility layouts should be designed to maximize employee expectations and production requirements

The sixth step of developing a service firm's communication strategy is to A)Work out the positioning strategy B)Set the communication budget C)Establish message and media strategies D)Select the target market E)Monitor, evaluate, and control the communication strategy

E)Monitor, evaluate, and control the communication strategy

Authors Hoffman and Bateson use Southwest Airlines' Bags Fly Free™ promotion as an example of A)bundle pricing B)relationship pricing C)price discrimination D)product-line pricing E)efficiency pricing

E)efficiency pricing

On an internal attribute map, __________ is represented on the X axis; __________ are arranged on the Y axis in descending order based on __________. A)key product dimensions; your competitors; annual sales revenue B)time; service offerings; sales revenue from each offering C)total hours spent performing service; service offerings; proportion of tangibility to intangibility in service features D)projected sales; customer segments; estimated population of each segment E)how well you're doing (from the perspective of the customer); distinct elements of the service offering; what customers think is most important

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

Frei and Morris state that "psychology is where we find some of the largest obstacles to [service] excellence." As the authors go on to clarify what they mean by this statement, they explain that __________ A)even though we often speak of a "win/win mentality" in business, it is natural to want to win at the expense of others. B)service providers tend to be paranoid—they believe that if they are too helpful, customers will routinely try to take unfair advantage of them C)it is against human nature to want to serve others. D)service jobs pay poorly; therefore, they tend to be occupied by desperate employees who are resentful about their financial circumstances. Often, this attitude shows in the way the employees treat customers. E)those who design and manage service processes deny reality and resist necessary trade-offs.

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

The fourth step of developing a service firm's communication strategy is to A)Establish communication objectives B)Set the communication budget C)Monitor, evaluate, and control the communication strategy D)Select a target market E)Workout a positioning strategy

E)work out a positioning strategy