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"Exceptions" involve supplementary services that fall outside the routine of normal service delivery a. True b.False

"Failure" points in the restaurant service blueprint provided in the chapter only occur in the backstage processes. a. True b. False

"Management by walking around" is an approach that exemplifies unsuccessful managers. a. True b. False

"Risk of excessive wait" points in a restaurant service blueprint provided in the chapter occur mainly in the backstage processes. a. True b. False

. Customers who visit Giordano outlets are greeted with a cheerful "Hello" and "Thank you" when they enter and leave the store. That is an example of ____________ . a. consultation b. hospitality c. exceptions d. courtesy e. safekeeping

. ____________ facilitate use of the core product and add value and differentiation to the customer's overall experience. a. Fixed services b. Value-added provisions c. Marketing theories d. Supplementary services Service providers

. ____________ supply the central, problem-solving benefit that customers seek. a. Core products b. Supplementary services c. Delivery processes d. Sustaining processes e. Conditional services

A ____________ is composed of a group of buyers who share common characteristics, needs, purchasing behavior, or consumption patterns. a. target class b. class c. focal segment d. market segment e. target segment

A blueprint specifies in some detail how a service process should be constructed. a.True b.False

A company's ____________ helps to determine which supplementary services should be included. a. location b. delivery system c. key service representative d. service atmosphere e. market positioning strategy

A dental hygienist confirming needs and setting appointment dates with patients is part of the service script for teeth cleaning. a. True b. False

A drawback of service blueprints is that they cannot give managers the opportunity to identify potential fail points in the process where there is a significant risk of things going wrong and diminishing service quality a.True b.False

A fully-focused organization concentrates on a narrow market segment, but has a wide range of services. a. True b. False

A good example of a service poka-yoke is a surgeon whose surgical instrument trays have indentations for each instrument. a. True b. False

A good example of inventorying demand is a haircut that can be set up and prepared for one day and executed the next. a. True b. False

A jaycustomer is defined in the book as one who acts in a thoughtless or abusive way, causing problems for the firm, its employees, and other customers. a. True b. False

A key characteristic of service blueprinting is that it makes little or no distinction between what customers experience "front-stage" and the activities of employees and support processes "backstage." a.True b.False

A key problem with self-service technologies is that so few of them incorporate service recovery systems. a.True b.False

A local presence may be necessary when exporting information-based services for which of the following reasons? a. Appeasing local citizens. b. Conducting secondary research. c. Building personal relationships. d. Bargaining for cheaper facilities. e. Restructuring out of date systems.

A ministore is a single-site service business that involves creating an innovative service factory. a. True b. False

A movie theater seat is an example of _____________. a. renting durable goods b. closely engaging customers in the service process c. renting portions of a larger physical entity d. the centrality of time to services differences in customer choice criteri

A service encounter is a period of time during which you, as a customer, interact with a service provider. a. True b. False

A service-focused firm offers a narrow range of services to a fairly broad market. a. True b. False

A spa environment should be designed with low arousal and high pleasantness. a. True b. False

A strategy of empowerment is most likely to be appropriate when which of the following factors are present within the organization and its environment? a. The business strategy is not too customized b. The organization uses routine technology. c. The business environment is stable. d. Customer interactions are relational as opposed to transactional. e. All of the above.

A study by Holiday Inn actually showed that as the number of defects per hotel increase, the amount of revenue per room increases. a. True b. False

A subway can increase the capacity on a route after all seats have been occupied. a. True b. False

A target segment should only be selected on the basis of their sales and profit potential. a. True b. False

A truck stop is a good example of a ____________. a. centralized control center b. single-source facility c. k-minus strategy d. multi-purpose facility e. cash cow

A useful way to distinguish between goods and services is to place them on a continuum from ____________ to ____________. a. practical; impractical b. tangible-dominant; intangible-dominant c. low; high d. reliable; unreliable e. prepared; unprepared

A(n) ____________ is one that a firm has selected from among those in the broader market and may be defined on the basis of several variables. a. general segment b. segmentation field c. target segment d. holistic segment mass customization

Accenture is a good example of a firm that helps it clients achieve high performance. a. True b. False

According to Adrian North, the key to driving unwanted people away is ____________. a. unfamiliarity b. laws c. direct recourse d. indirect recourse e. segmentation

According to John Wooden, "Too often, the big talkers are the big doers." a. True b. False

According to Ms Spiers-Lopez, all of the following are characteristics of effective leadership EXCEPT ____________. a. being authentic b. not being afraid to make mistakes c. trusting the people around d. being an effective communicator e. not being afraid to change one's mind

According to the Mehrabian-Russell Stimulus-Response Model, people avoid crowded environments because there of the number of people rather than being deterred by the unpleasant feeling of crowding, people being in the way, or lacking perceived control. a. True b. False

Ads based on ____________ strategies are often perceived as more informative than ____________ ads. a. visualization; text-only b. expert; power c. visualization; affective d. utilitarian; text-only e. visualization; expert

Advertising and promotions do little to help change the timing of customer usage. a. True b. False

Advertising serves to build awareness, inform, persuade, and remind. a. True b. False

Airlines are considered a low-contact service when compared to auto repair. a. True b. False

Airlines place restrictive conditions on fares for tourists to prevent business travelers from traveling on economy class. a. True b. False

Airlines, hotels, and car rental firms are not very good at varying prices in response to the price sensitivity and needs of different market segments. a. True b. False

All EXCEPT which of the following are reasons that service guarantees are powerful tools for both promoting and achieving service quality? a. Guarantees reduce consumer complaining, increasing customer satisfaction and information from customers. b. Guarantees force firms to focus on what their customers want and expect in each element of the service. c. Guarantees set clear standards, telling customers and employees alike what the company stands for. d. Guarantees building "market muscle" by reducing the risk of the purchase decision and developing long-term loyalty. e. Guarantees force service organizations understand why they fail and encourage them to identify and overcome potential fail points.

All customers will eventually voluntarily shift from high-contact delivery environments to new electronic channels. a. True b. False

All employees are eager to be empowered. a. True b. False

All of the factors below are luring customers into virtual stores EXCEPT ____________. a. potential for better prices b. ease of search c. broader selection d. opportunities for networking e. 24-hour service with prompt delivery

All of the following are jaycustomers EXCEPT ___________. a. The Cheat b. The Rule Breaker c. The Belligerent d. The Deadbeat e. The Hooligan

All of the following are qualities that effective leaders in service organizations should have EXCEPT ___________. a. love for the business b. ways of communicating that is easily understood c. see service quality as foundation for competing d. recognize the part played by employees in delivering service e. diplomatic

All of the following are questions to ask about demand patterns and their underlying causes EXCEPT ____________. a. Do demand levels follow a predictable cycle? b. What are the underlying causes of these cyclical variations? c. How much demand are competitors receiving? d. Do demand levels seem to change randomly? Can demand for a particular service over time be disaggregated by market

All of the following are ways to make waits more bearable EXCEPT ____________. a. encourage group waits b. keep customers occupied while waiting c. make customers feel comfortable during waits d. let customers know how long they are expected to wait e. provide the customers with no explanation for the wait

All service leaders have a strong focus on their customers only. a. True b. False

Amazon.com is a good example of a firm that aggravated its customers with dynamic pricing. a. True b. False

Ambient conditions refer to those characteristics of the environment pertaining to our five senses. a. True b. False

An example of a service high in credence attribute is _____________. a. Extreme sports b. vacation c. spa d. musical performance e. surgery

An ongoing problem of franchising is that when franchisees gain experience, they may start to feel that they should not be paying the various fees to the franchisor. a. True b. False

At its simplest, ____________ consists of immediate advice from a knowledgeable service person in response to the request: "What do you suggest?" a. billing b. payment c. consultation d. hospitality e. selling

Banks ensure eye contact by requiring tellers to record ____________ on a checklist at the start of a transaction. a. the customer's eye color b. the customer's bank account number c. the customer's shirt size d. the customer's account type e. the customer's nationality

Because customers are often involved in service production, operations managers need to low at how customer outputs can be more productive. a. True b. False

Because quality is subjective, all customers have the expertise to assess the quality and value they receive. a. True b. False

Blogs (Web logs) are frequently modified Web pages in which entries are listed in chronological sequence. a. True b. False

Blueprinting is a more complex form of ____________. a. linear graphing b. flow charting c. Cox & Snell analysis d. non-linear graphing e. cluster analysis

Blueprints can pinpoint the stages in the process where customers commonly have to wait. a.True b.False

Boundary spanners work in some of the most demanding jobs in service firms. a. True b. False

Brand positioning can do all of the following except ____________. a. generate interest in a service b. create awareness for a service c. meet customers' needs for a service d. differentiate a service e. increase adoption of a service

Branding can only be used at the company level for service businesses. a. True b.False

Bright Horizons used low-cost strategies to achieve their competitive advantage. a. True b. False

Business owners often fail to recognize the fixed costs that need to be recouped when providing service. a. True b. False

Characteristics that customers find hard to evaluate even after consumption are termed ____________. a. search attributes b. experience attributes c. credence attributes d. satisfaction attributes e. capital attributes

China is experiencing rapid economic growth and this stimulates demand for production and business services. a. True b. False

Cirque Du Soleil claims that they didn't reinvent the circus, they simply repackaged a way of presenting the circus show in a much more modern way.a. True b. False

Common CRM applications include all of the following EXCEPT _____________. a. Data collection b. Marketing automation c. Data entry d. Sales force automation e. Finance automation

Common failures in CRM implementation include all of the following EXCEPT _____________. a. employee enthusiasm about CRM b. inadequate support from top management. c. inadequate understanding of customer lifetime value d. lack of coordination e. failure to reengineer business processes

Communication messages originate only from the marketing and service delivery channels of the firm. a. True b. False

Communications is more than just advertising, public relations and professional salespeople. It is also where marketers explain and promote the value proposition of their offering. a. True b. False

Companies that engage in a "Cycle of Success" are more likely to have which of the following? a. Happier employees b. More loyal customers c. Higher profit margins d. Better wages e. All of the above

Companies who work for years building a loyal workforce with a strong service ethic may find that such a culture can easily be destroyed through change in leadership. a. True b. False

Compensation should be based on the positioning of the firm, the severity of the failure, and who the specific affected customer is. a. True b. False

Competitive analysis addresses all of the following factors EXCEPT ____________. a. examines competitors' strengths b. identifies competitors' future positioning c. examines competitors' current positioning d. examines competitors' weaknesses e. suggests opportunities for differentiation

Complaining behavior can be influenced by role perceptions and social norms. a. True b. False

Conditional guarantees are more effective. a. True b. False

Consistently meeting or exceeding customer expectations across multiple dimensions is a practice most likely seen in the "service leader" category of service performance. a. True b. False

Consumer preferences for involvement in the service process may reflect which of the following factors? a. Variability in price structures. b. Willingness to travel to a service facility. c. Desire to be served by employee's face-to-face. d. A and C only. e. B and C only.

Consumers will desire a particular level of service, but are willing to accept an adequate level of service and the gap between the two levels is called the zone of acceptance. a. True b. False

Control charts offer a simple method of displaying performance on hard measures over time against specific quality standards. a. True b. False

Controlling workers is a practice most likely seen in the "service losers" category of service performance. a. True b. False

Cora Griffth has nine rules of success for excellent service as a waitress. They include all of the following EXCEPT ____________. a. getting things right the first time b. listening first c. anticipating customers' wants d. treating customers like family e. taking pride in one's work

Core products are surrounded by supplementary elements from each of the eight clusters of supplementary services. a. True b.False

Credence attributes are the characteristics that can only be assessed after customers have gone through the service. a. True b. False

Customer contact personnel have to attend to both operational and marketing goals and this causes person/role conflict. a. True b. False

Customer participation refers to the actions and resources supplied by customers during the service production and/or delivery process, including all but emotional inputs a.True b.False

Customer satisfaction (based on the ACSI) is highly related to the stock price of individual firms. a. True b. False

Customers being turned away or having to wait is an implication of which aspect of services? a. People may be a part of the service experience. b. Intangible elements usually dominate value creation. c. Services are often difficult to visualize and understand. d. Customers may be involved in co-production. e. Most services cannot be inventoried.

Customers do not need training to help them perform well because they already know what they want. a. True b. False

Customers often incur significant financial costs in searching for, purchasing, and using a service, above and beyond the purchase price paid to the supplier. a. True b. False

Customers remain loyal to a firm because they experience relational benefits. a. True b. False

Customers that have no relevant prior experience with a firm may base pre-purchase expectations on word-of-mouth comments, news stories, or the firm's own marketing efforts. a. True b. False

Customers who complain are more likely to be white-collar workers than blue-collar workers. a. True b. False

Customers will often pay more for services than they think they are worth. a. True b. False

DHL gained significant favorable publicity when it safely transported two giant pandas from Chengdu, China to the National Zoo in Washington, D.C. a. True b. False

DHL offers customers the opportunity to track the movements of their packages, which have been assigned a unique identification number. This is an example of ____________. a. order-taking b. safekeeping c. information d. consultation e. exceptions

DHL's less powerful accounts generate significantly lower profitability than their major accounts. a. True b. False

Defection describes customers who stop buying from a company and transfer their brand affinity to another supplier a. True b. False

Demand patterns are usually random. a. True b. False

Dental customers ____________ to avoid delays and ensure effective use of dental professionals' time. a. sit quietly in the waiting room b. commit positive word-of-mouth c. confirm and honor appointments d. should get to know hygienists e. provide accurate histories

Direct marketing involves efforts to stimulate positive interest in an organization and its products by sending out news releases, holding press conferences, staging special events, and sponsoring newsworthy activities put on by third parties. a. True b. False

During the SARS period when travel and tourism was affected, staff were sent for training or encouraged to resign. a. True b. False

During the post-purchase stage, consumers may make satisfaction judgments that ___________ their experience. a. negatively confirm, positively confirm, disconfirm b. positively disconfirm, confirm, negatively disconfirm c. disconfirm, positively confirm, negatively disconfirm d. negatively disconfirm, positively disconfirm, positively confirm e. positively confirm, negatively confirm, negatively disconfirm

E-mail and telephone service interactions are just as visible as face-to-face interactions. a. True b. False

Education is an example of a/an _____________ service. a. people-processing b. information processing c. mental stimulus processing d. possession-processing e. physical processing

Effective service recovery procedures should be ____________, ____________, ____________, and ____________. a. proactive, engaged, universal, empowered b. planned, engaged, universal, trained c. proactive, planned, trained, empowered d. trained, engaged, flexible, spontaneous trained, engaged, universal, empowered

Elaborate statistical analysis, in the form of ____________, is sometimes used to aid decisions on where to locate supermarkets and similar large stores relative to prospective customers' homes and workplaces. a. binary regression b. cluster analysis c. structural equation models d. gravity models e. predictive models

Emotional labor is when employees ____________. a. find it hard to be emotional because they are too overworked b. have a gap between what they feel inside, and what management expects them to display to their customers c. have to keep their emotions under control at the work place d. feel happy all the time because they enjoy their jobs e. are emotionally stressed by all the demands of their jobs

Employee satisfaction typically has little impact on customer satisfaction. a. True b. False

Employees should be trained in all these areas EXCEPT ____________. a. organizational culture b. organizational revenue c. service knowledge d. interpersonal skills e. product knowledge

Empowerment is suitable for all situations. a. True b. False

Everything else being equal, when customers are risk-averse, they will choose the service with the lowest risk perception. a. True b. False

Evidence management is a somewhat disorganized approach to presenting customers with coherent evidence of a firm's abilities, like employee dress and furnishings. a. True b. False

Examples of preparing customers for service encounters include all of the following EXCEPT ____________. a. printing dress code requests on invitations b. sending reminders of dental appointments c. printing guidelines on customer cards d. billing customers for services rendered e. all of the above are examples of preparing customers for service encounters

Excellent service firms use all of the following to identify the best job candidates EXCEPT ____________. a. observing behavior b. conducting personality tests c. interviewing applicants d. viewing transcripts e. providing applicants with realistic job previews

Experience shows that successful personal relationships, built on trust, cannot be created and maintained simply through telephone and e-mail contact. a. True b. False

Facing competition from numerous casinos in other locations, Las Vegas has been trying to reposition itself away from being an adult destination to a somewhat more wholesome family fun resort. a. True b. False

Failures are inevitable in service industries. a. True b. False

Fast music environments have been shown to generate more revenue and get customers to spend longer amounts of time in an environment than slow music environments. a. True b. False

FedEx approaches quality management from which of the following perspectives? a. Percent of packages on time b. Percent of flights arriving safely c. Baseline of zero failures d. Low turnover e. High Turnover

FedEx was one of the first company's to understand the need for a firm-wide index of service quality that embraced all the key activities that had an impact on customers. a. True b. False

Fedex's Service Quality Indicator is a 10-item measure of satisfaction and service quality from the customers' viewpoint. a. True b. False

Financial success in businesses with limited capacity depends largely on how capacity is used. a. True b. False

Firms do not need to consider post-purchase costs, as they occur after the firm has already secured a purchase. a. True b. False

Firms like Dunkin' Donuts and Subway sharing space with quick service restaurants is an example of a(n) ____________. a. single source market b. economy of scale c. ministore d. economy of scope e. multi-brand strategy

Firms should not assume that the "right customers" are always the ___________. a. ones that are easily delighted b. high spenders c. price sensitive customers d. average income earners e. least costly to acquire

Firms that are always reacting to competitors' price changes run the risk of pricing higher than might really be necessary. a. True b. False

First Direct describes itself as the largest virtual bank in the world. a. True b. False

First Direct is an example of a bank with too many branches. a. True b. False

For B2B services, trade shows can be a way to create a need and engage customers' interest. a. True b. False

For customers of credit card companies, which of the following statements are true? a. When they make calls to the call center, these are usually the few moments of truth. b. There is very little of the theater performance. c. They usually experience high-contact with the service personnel. d. Only A and B. e. All of the above.

For self-service payment, customers may make payment by inserting coins, banknotes, tokens or cards into machines. a. True b. False

Franchising is not an appealing strategy for growth-oriented service firms because franchisees tend to be less motivated and less concerned about quality than managers in company-owned stores. a. True b. False

Franchisors usually seek to exercise control over all aspects of the service performance through tightly defined ____________. a. service standards b. procedures c. scripts d. physical presentations e. all of the above

Freight companies often use a combination of distance and weight or shape of parcel as a basis to price their services. a. True b. False

From the customer's perspective which of the following is the most important aspect of service? a. Management's responsiveness to occurrences of failure. b. Timely delivery of service. c. Efficient handling of special requests. d. The encounter with service staff. e. A fair price.

Functionality refers to the floor plan, size and shape of furnishings, counters, and potential machinery and equipment, and the ways in which they are arranged. a. True b. False

Good records of a firm's transactions can help one to understand demand patterns. a. True b. False

Good relationships start with a good fit between customer needs and company capabilities. a. True b. False

Google has expanded its offerings to include Google Earth and You Tube in order increase sales and attract new customers. a. True b. False

Great references from past employers are not a form of behavioral observation. a. True b. False

Hampton Inn has developed a way to identify guests who appear to be cheating and give them a lot of personalized attention and follow-up from the company. a. True b. False

Hampton Inn's 100 percent satisfaction guarantee is a good example of a service guarantee that goes wrong and hurts a firm's financial performance. a. True b. False

Hard measures are those that cannot be easily observed and must be collected by talking to customers, employees, and others. a. True b. False

High-contact encounters between customers and service organizations differ sharply from low-contact encounters. a. True b. False

Hospitality represents a more subtle approach to consultation because it involves helping customers better understand their situations. a. True b.False

How many "acts" does a meal at Chez Jean consist of? a. One act b. Two acts c. Three acts d. Four acts e. Five acts

How many failures can a service firm commit before the recovery paradox is wiped out? a. One failure b. Two failures c. Three failures d. Four failures e. Five failures

IBM is a good example of a firm that has shifted from manufacturing intensive operations to service intensive operations. a. True b. False

ING Direct could be called the fast-food model of consumer banking because it is about as no-frills as it gets. a. True b. False

Ideally, service firms should be organized in ways that enable the three functions of marketing, operations, and human resources to work closely together so that the organization can be responsive to its various stakeholders and achieve success in its chosen markets. a. True b. False

If a Nordstrom sales associate replaces shirts at no cost to the client, it is an example of ____________. a. centralized decision-making b. service theft c. employee empowerment d. service sabotage e. rule setting

If a service environment is inherently ____________, one should avoid increasing ____________ levels, as this would move customers into the "distressed" region of Russell's model. a. pleasant; arousal b. pleasant; excitement c. pleasant; relaxation d. unpleasant; arousal e. unpleasant; excitement

Implementing the Service Profit Chain requires a complete understanding of how marketing, accounting and human resources work together. a. True b. False

In ____________ services, where much of the firm's expertise is hidden, firms may need to illustrate equipment, procedures, and employee activities that are taking place ____________. a. high-contact; front-stage b. low-contact; backstage c. high-contact; backstage d. low-contact; front-stage e. high-contact; intangibly

In environmental psychology the typical outcome variable is ____________ or ____________ of an environment. a. service; repurchase b. control; reproach c. control; avoidance d. control; sensibility e. approach; avoidance

In general, service providers are more likely to visit corporate customers at their premises than to visit individuals in their homes. a. True b. False

In low-contact services, frontline personnel are central to service delivery. a. True b. False

In most highly developed nations, services account for between three-fifths and four-fifths of the GDP a. True b. False

In practice, the large majority of service encounters are routine, involving a high level cognitive processing and little affect. a. True b. False

In service losers, marketing only plays a tactical role. a. True b. False

In the B2B context, the smaller firms as a group have a lot of bargaining power. a. True b. False

In the service profit chain, profitability, customer loyalty and customer satisfaction is due to _____________. a. complacent reactionism b. satisfied, loyal and productive employees c. conducive servicescape d. crossfunctional teams e. reduction management

In the theater metaphor, the elements include all but the following ____________. a. positions b. roles c. scripts d. service facilities e. personnel

In the worksheet for calculating customer lifetime value, sources of annual revenues include all EXCEPT _____________. a. Annual account fee b. sales c. service fees d. value of referrals e. account management

Information processing services tend to be the most demanding in terms of supplementary elements. a. True b.False

Integrating mobile devices into the service delivery infrastructure can be used as a means to ____________ services, ____________ customers to opportunities or problems, and ____________ information in real time to ensure that it is continuously accurate and relevant. a. Access; alert; update b. Complement; alert; conceal c. Access; attract; conceal d. Access; guide; conceal e. Complement; guide; conceal

Interactional justice involves the employees of the firm who provide the service recovery and their behavior toward the customer. a. True b. False

Interpersonal skills include visual communication, attentive listening, and body language and tend to be specific to each service setting. a. True b. False

It is usually a good idea for firms to try to appeal to all potential buyers in a market, because customer variety leads to full capacity. a. True b. False

Leadership is a part of managerial work because the rate of change has been increasing. Even lower level managers now spend up to ____________ of their time leading. a. 10 percent b. 20 percent c. 25 percent d. 30 percent e. 35 percent

Making service processes more efficient results in a better quality experience for customers and ensures improved benefits for them. a. True b. False

Management keeps the current situation going through all of the following EXCEPT _____________. a. Planning b. Design c. Budgeting d. Controlling e. Problem solving

Many service firms put too much emphasis on value without enough consideration of the number of customers they will serve. a. True b. False

Market analysis addresses all of the following factors EXCEPT ____________. a. overall level of demand b. trend of demand c. government regulations d. geographic location of demand e. market analysis addresses all of the above factors

Market niches that seem too narrow to offer sufficient sales in one country are indicative of globally narrow market niches. a. True b. False

Marketers should not attempt to shape customer roles and behaviors. a. True b. False

Marketing communications attempt not to attract customers who will enhance the ambiance with their presence because of potential legal ramifications. a. True b. False

Marketing strategies can be used to shape demand in all ways EXCEPT ____________. a. modify mode of delivery b. use price and other cost to manage demand c. change product elements d. modify time and place of delivery e. use promotion and education

Marriage counseling is a service that requires a ____________ level of participation from customers. a. minimal b. high c. moderate d. low e. absolute

McAfee uses free trial to create more search attributes to assist prospective customers. a. True b. False

Medical clinics, hotels, and passenger aircrafts are all examples of physical facilities designed to contain goods and services. a. True b. False

Mental impalpability refers to the fact that intangibles cannot be searched or inspected before they are purchased. a. True b. False

Mont Tremblant uses all the following ways to attract guests during summer EXCEPT _____________. a. water sports on the lake b. face painting c. balloon sculpting d. wind surfing e. roller-blading

Most people can think of dozens of service firms they truly like and where they are committed to going back to. a. True b. False

New York City's 911 service uses education to ______________. a. attract new callers b. show callers when peak periods are c. discourage undesirable demand d. channel calls to medical services e. encourage callers to use their services

No service attribute can be easily quantified because of the intangibility of services. a. True b. False

Of the following, which is NOT an ambient condition that irritates shoppers according to Alain d'Astous? a. Store is too small b. Store is not clean c. Too hot inside the store or the shopping center d. Music inside the store is too loud e. Bad smell in the store

Of the following, which is NOT an environmental design condition that irritates shoppers according to Alain d'Astous? a. Arrangement of store items is always the same. b. No mirror in the dressing room. c. Unable to find what one needs. d. Directions within the store are inadequate. e. Store is too small.

On average, what percentage of customers complains when they are unhappy with service? a. 0 percent b. 5-10 percent c. 15-25 percent d. 30-50 percent e. 60-75 percent

One approach to training customers, recommended by advertising experts is to ____________. a. train employees like customers b. use radio advertising c. show service delivery in action d. design palpable service environments e. explain service procedures in advance

One of Ritz-Carlton's hiring principle is ____________. a. maintain a tight knit group b. hire people with the right personality c. "training, training, training" d. customer service is first e. new hires lead the way

One of the most direct ways for a hotel to reduce excess demand at peak periods is to charge customers more money to use the service during those periods. a. True b. False

One of the reasons why firms with a narrow product line elect to serve multiple segments is to create a portfolio of customers that hedge against low demand risks. a. True b. False

One way for car washes to decrease the number of visitors to the existing site is to a. Offer free pickup and delivery of cars to be washed. b. Offer mobile car wash services. c. Add more service options. d. Increase prices to get the most out of current customers. e. Educate customers on when they should have their cars washed.

One way to stretch capacity is to ensure slack time is encountered. a. True b. False

Online educational programs offered by the University of Phoenix are an example of _____________. a. revolutionary products/services b. collective products/services c. additional services d. supplementary services e. core products/services

Optimum and maximum capacities are never one and the same (e.g. a sport performance). a. True b. False

Organizational climate represents the tangible surface layer on top of the organization's underlying culture. a. True b. False

Organizational culture includes all of the following EXCEPT ____________. a. shared perceptions or themes regarding what is important in the organization b. shared values about what is right and wrong c. shared understanding about what works and what doesn't work d. shared beliefs, and assumptions about why these things are important e. diverse styles of working and relating to others

Organizations that are devoted to satisfying their current customers may miss important shifts in the marketplace and find them turning into has-beens. a. True b. False

Organizations that are known for excellent service make use of hard measures rather than soft measures. a. True b. False

Other customers typically do not impact the satisfaction of other consumers in service settings. a. True b. False

Outcomes of the "Cycle of Failure" for firms include ____________ and ____________. a. low service quality; low employee turnover b. low service quality; high employee turnover c. high service quality; low employee turnover d. high service quality; high employee turnover e. mediocre service quality; unpredictable employee turnover

Part of British Airways' strategy is that customers can earn BA points and air miles on other airlines. a. True b. False

Part of the challenge of implementing poka-yokes in service contexts is the need to address not only server errors, but also customer errors. a.True b.False

People in lower socioeconomic levels are more likely to complain than those in higher levels. a. True b. False

People, possession, and information-based services have strikingly similar requirements on an international distribution strategy. a. True b. False

Pernille Spiers-Lopez is president of ______________. a. Fedex b. Southwest Airlines c. Marriott d. IKEA North America e. Stena Lines

Physical logistics services now find themselves competing with telecommunications services. This is a result of the instantaneous delivery capability of information-based products. a. True b. False

Pinstorm built a very successful model based on banner advertising. a. True b. False

Planning is designed to produce orderly results, not change. a. True b. False

Poke-yokes originated from Total Quality Management methods in manufacturing. a. True b. False

Positioning plays a pivotal role in marketing strategy, because it links market analysis and competitive analysis to environmental analysis. a. True b. False

Price elasticity is computed as ____________. a. percentage change in demand / percentage change in price b. percentage change in price / percentage change in demand c. percentage change in supply / percentage change in price d. percentage change in demand / percentage change in supply e. percentage change in price / percentage change in supply

Pricing is less complex in services than it is in manufacturing. a. True b. False

Procedural justice concerns the compensation that a customer receives as a result of the losses and inconveniences incurred because of a service failure. a. True b. False

Proper service recovery can be accomplished by making it easy for customers to give feedback, enabling effective service recovery, and establishing appropriate compensation levels. a. True b. False

Psychological costs relate to unpleasant sensations affecting any of the five senses. a. True b. False

Publicizing price discounts is one way to encourage self-service on an ongoing basis. a. True b. False

Putting service pricing into practice includes thinking of all the following questions EXCEPT ____________. a. What should be the specified basis for pricing? b. How much to charge? c. What kind of customers should be charged more? d. Who should collect payment? e. When should payment be made?

Recent research shows that the amount of a guarantee payout has no effect on consumer cheating. Which of the following is one of the important managerial implications of this? a. Guarantees can be restricted to new customers because of the propensity for repeat customers to cheat. b. Guarantees can be kept low to prevent rewarding cheaters. c. Managers can reap the marketing rewards of higher guarantees without increased payouts due to consumer cheating. d. Managers cannot expect to recover the difference in guarantees for different types of consumers. e. Guarantee levels can be used to dissuade consumer cheating.

Rentokil started off as a firm that manufactured rat poison and a pesticide for killing leeches. a. True b. False

Restaurants are often quite theatrical in their use of physical evidence (such as furnishing, décor, uniforms, lighting, and table settings). a. True b. False

Revenue management is the most effective when applied to firms characterized by all the following conditions EXCEPT ______________. a. perishable inventory b. relatively fixed capacity c. varying customer price sensitivity d. fixed inventory e. variable demand

SAS International Hotels devised which of the following sales promotions targeted at older consumers? a. First to provide senior citizen discounts. b. Provided a discount percent equivalent to their age. c. A free hotel room if large family gatherings were held at the hotel. d. Free ballroom service for large family gatherings. e. Discount for large family gatherings.

SST is only better than the interpersonal alternative if it saves time, provides ease of access, cost savings, or some other benefits. a.True b.False

Sales promotion includes sampling, coupon, sign-up rebates, gifts, prize promotions and special events. a. True b. False

Self-service pumps with credit card readers increase gas station productivity, but lead to higher costs because of additional fees. a. True b. False

Server ____________ ensure that service staffs do things correctly, as requested, in the right order, and at the right speed. a. kanbans b. poka-yokes c. jidokas d. banzais e. sodokus

Service blueprints ____________, and how these are supported by backstage activities and systems. a. enhance servicescape features such as furniture and lighting b. complicate employee handling of special requests c. clarify the interactions between customers and employees d. enhance customer technical know-how diminish customer complaining capacity

Service consumers use service environment as an important quality proxy. a. True b. False

Service delivery is shifting to arm's length transactions for many services due to advances in telecommunications. a. True b. False

Service employees are important to customers and competitive positioning, because the front line ____________. a. is the most visible part of the firm b. contains more employees than management c. is often the first to deal with customer complaints d. is better trained at dealing with customers than are managers e. all of the above

Service environments, also called ____________ relate to the style and appearance of the physical surroundings and other experiential elements encountered by customers at service delivery sites. a. service planes b. servicescapes c. service boxes d. servicetomies e. service vaults

Service firms have reservations systems because. a. intangible elements usually dominate value creation. b. most service products cannot e inventoried. c. distribution may take place through non-physical channels d. customers may be involved in co-production e. all of the above

Service guarantees are always appropriate. a. True b. False

Service marketers need to create a coherent offering in which each element is compatible with the others and all are mutually reinforcing. a. True b.False

Service markets are shaped by all of the following except ____________. a. government policies b. social changes c. global economic change d. business trends e. advances in information technology

Service personnel may play roles that are very different from their own personalities. a. True b. False

Service process redesign can be categorized into all EXCEPT which of the following types? a. Getting rid of non-value adding steps. b. Shifting to self-service. c. Delivering direct service. d. Separating services. e. Redesigning the physical aspect of service processes.

Service process redesign efforts typically focus on achieving all EXCEPT which of the following key performance measures? a. Reduced number of service failures. b. Reduced cycle time. c. Enhanced productivity. d. Increased profitability. e. Increased customer satisfaction.

Service process redesign encompasses reconstitution, rearrangement, or substitution of service processes. a.True b.False

Service recovery efforts should be fairly rigid to makes sure the same recovery is achieved each time. a. True b. False

Service recovery is an umbrella term for systematic efforts by a firm to correct a problem following a service failure and retain a customer's goodwill. a. True b. False

Service staff poka-yokes usually focus on preparing the customer for the encounter, understanding and anticipating their role in the service transaction, and selecting the correct service or transaction. a.True b.False

Servicescape is only a consideration if customers have to enter a service factory. a. True b. False

Servicescapes help to shape the desired feelings and reactions in customers and employees. a. True b. False

Shanghai's Maglev train helps to overcome the locational constraint of having the airport sited in a far away place. a. True b. False

Shopbots collect price and product information from multiple electronic vendors and provide it to consumers. a. True b. False

Shopbots help consumers combat dynamic pricing online. a. True b. False

Signs are frequently used to teach and reinforce behavioral rules in service settings. a. True b. False

Singapore Airlines Raffles Class is an example of a(n) ____________. a. branded house b. endorsed brand c. house of brands d. sub-brand e. clear strategy

Singapore Airlines is well recognized for both their superior meals and attentive cabin crew. a. True b. False

Singapore Airlines uses teams for all of the following EXCEPT ____________. a. train staff b. provide emotional support c. assess staff d. promote staff e. mentor cabin crew

Southwest Airlines illustrates a high-involvement company. a. True b. False

Spatial layout refers to the ability of items to facilitate the performance of service transactions a. True b. False

Special treatment benefits include being known by name by the service provider. a. True b. False

Staff acting as Cinderella, or seven drawfs at Disney theme parks are part of the service environment. a. True b. False

Steps to building a foundation of loyalty include all EXCEPT _____________. a. delivering customer satisfaction b. delivery service quality c. segmenting the market to match customer needs and firm capabilities d. acquiring customers who fit the core value proposition e. managing the customer base through effective tiering

Successful customer relationships cannot be built if a firm is selective about the segments they target. a. True b. False

Suggestion involvement empowers employees to make recommendations through formalized channels. a. True b. False

Supplementary service innovations are the most common type of innovation. a. True b. False

Systems and networks access and usage is an example of the ownership of services. a. True b. False

Taco-Bell's K-Minus strategy is an example of an innovation in locating in multi-purpose facilities. a. True b. False

Tangible characteristics that customers can evaluate prior to purchase are termed ____________. a. search attributes b. experience attributes c. credence attributes d. satisfaction attributes e. capital attributes

Technical skills encompass all the required knowledge related to processes. a. True b. False

Tesco's success is built on ____________. a. direct marketing b. advertising c. personal selling d. sales promotion e. public relations

The "Cycle of Failure" includes all of the following EXCEPT ____________. a. emphasis on rules b. emphasis on attracting new customers c. adequate pay and job security d. low skill levels e. use of technology to control quality

The "Cycle of Mediocrity" is most often found in large, bureaucratic organizations like regulated oligopolies. a. True b. False

The Cheat is the kind of jaycustomer who delays payments. a. True b. False

The Hong Kong Tourism Board used ______________ to create harmony among elements and ensure that people feel good in the environment. a. scent b. color c. feng shui d. music e. spatial layout

The Internet is transferring power from suppliers to customers, especially in consumer markets. a. True b. False

The Return on Quality perspective from Holiday Inn suggests that the focus of preventative maintenance should be on the hotel exterior, the guest rooms, and guest bathrooms. a. True b. False

The Ritz-Carlton uses personality profiles to select the best applicants. a. True b. False

The ____________ complex a(n) ____________ process becomes, the more powerful is its potential impact on ____________. a. more; affective; cognition b. more; cognitive; affect c. less; cognitive; services d. less; affective; cognition e. less; cognitive; affect

The ____________ is supply based, and is concerned primarily with engineering and manufacturing practices. a. transcendent view b. user-based definition c. manufacturing-based approach d. product-based approach e. value-based definition

The ____________ is the difference between what a service provider communicates and what it actually delivers to the customer. a. interpretation gap b. communications gap c. perceptions gap d. standards gap e. knowledge gap

The ____________ is the difference between what service providers believe customers expect and customers' actual needs and expectations a. interpretation gap b. standard gap c. knowledge gap d. service quality gap e. internal communications gap

The ____________ or ____________ includes both the ____________ and ____________ of a service facility. a. roll; retrieval; implicit aspects; explicit aspects b. stage; servicescape; exterior; interior c. stage; service area; customers; employees d. roll; canopy; employees; equipment e. roll; service area; front-stage; backstage

The ____________ refers to the sometimes-observed effect that customers who experience a service failure and then have it resolved to their full satisfaction are more likely to make future purchases than are customers who have no problem in the first place. a. referent renewal paradox b. referent contribution paradox c. referent acquisition paradox d. service recovery paradox e. service renewal paradox

The amount of seats reserved for each class of American Airlines passengers on a flight is referred to as a ____________. a. field b. row c. column d. bucket e. gamble

The appearance of both service personnel and customers can reinforce or detract from the impression created by the service environment. a. True b. False

The appearance of buildings, landscaping, vehicles, and uniforms provide tangible evidence of a firm's service quality a. True b. False

The best way to anticipate possible competitive responses is to identify all current or potential competitors and to put oneself in their own management's shoes by conducting an internal corporate analysis for each of these competitors. a. True b. False

The best way to help customers visualize your service is to highlight credentials/experience and educate consumers to make good choices. a. True b. False

The common perspective on quality includes all of the following EXCEPT ____________. a. transcendent view b. user-based definition c. manufacturing-based approach d. process-based approach e. value-based definition

The company names of the "service professionals" level of service performance are synonymous with service excellence and an ability to delight customers. a. True b. False

The convenience of service factory locations and operational schedules assumes great importance when a customer has to physically present throughout the service delivery or even just to initiate and terminate the transaction. a. True b. False

The definition of a team includes all of the following EXCEPT ____________. a. have complementary skills b. are committed to a common purpose c. have well-rounded personalities d. hold themselves mutually accountable e. have a set of performance goals

The delivery process surrounding the core product of an overnight hotel stay includes scheduling, nature of process, customer role and service level. a. True b.False

The demand on a city bus is likely to vary by all EXCEPT which of the following? a. Time of day. b. Day of the week. c. Season of the year. d. Population density in the city. e. All of the above will likely cause demand to vary on a city bus.

The difference between a product and a service is that a product is a bundle of output while a service is a bundle of supplementary services. a. True b. False

The evoked set can be derived from past experience or competing firms. a. True b. False

The field of ____________ studies how people respond to specific environments. a. organizational behavior b. marketing c. environmental psychology d. strategic management e. financial management

The first step in developing a service blueprint is ____________. a. to reach a consensus on which activities are more important than others b. to identify all the key activities involved in creating and delivering the service c. to identify the links between a set of alternative service possibilities d. to identify the key employees who will be enacting the service blueprint e. to identify the key customers who will be participating in the service

The following are all business trends transforming service markets except ____________. a. push to increase shareholder value b. growth of franchising c. new agreements on trade in services d. marketing emphasis by non-profit organizations e. focus on quality and customer satisfaction

The four interesting innovations for service delivery arising from the Internet are all of the following EXCEPT _____________. a. creation of websites as a delivery channel for information-based services b. DVDs that can store huge amounts of information c. development of "smart" mobile phones linking users to the Internet wherever they are d. usage of voice recognition technology that allows customers to give information and request service by speaking into a microphone e. smart card containing a microchip acting as an electronic purse containing digital money

The internet kiosk with a touchscreen in Vienna, Austria is getting popular for the following reasons EXCEPT ____________. a. it is conveniently located b. it saves customers from having to deal with other undesirable customers c. it is accessible 24/7 d. it doesn't make mistakes, unlike employees e. it has easy access to websites

The key concepts in the pre-purchase stage include all the following except ____________. a. servuction system b. evoked set c. perceived risk d. zone of tolerance e. credence attributes

The key questions to ask when defining a firm's customer relationship strategy include all EXCEPT _____________. a. What is the increase in profit from increase the share-of-wallet with our current customers? b. How much customization or one-to-one marketing and service delivery is suitable and profitable? c. How will top management feel about our strategy? d. How should our value proposition change to increase customer loyalty? e. How much time and resources can we provide to CRM right now?

The lead customer tier tends to generate moderate revenue, but only a small amount of business. a. True b. False

The line of ____________ divides front-stage activities from backstage activities. a. service standards and scripts b. physical evidence c. internal physical interaction d. internal IT interaction e. visibility

The need for economies of scale often restricts choice of location for service facilities. a. True b. False

The notion of ____________ is central to the professional lives of Cirque Du Soleil employees. a. stretch b. bind c. hang d. wince e. edge

The objective of internal corporate analysis is to identify the organization's resources, any limitations or constraints, its goals, and how it values shape the way it does business. a. True b. False

The order-taking process should be ____________, ____________, and ____________ so that customers do not waste time and endure unnecessary mental physical effort. a. short; curt; abrupt b. simple; slow; effortful c. short; sweet; ineffective d. powerful; simple; abrupt e. polite; fast; accurate

The perception gap is the difference between what is, in fact, delivered and what customers perceive they have received. a. True b. False

The prepurchase stage begins with ____________. a. perceived risk b. formation of expectations c. moments of truth d. evoked set e. need arousal

The same individuals may set different priorities for attributes according to all EXCEPT which of the following? a. The purpose of using the service. b. Who makes the decision. c. The timing of use. d. Whether the individual is using the service alone or with a group. e. The cost of the service.

The search for competitive advantage rarely centers on supplementary services. a. True b.False

The service framework for developing effective service strategies excludes _________________. a. understanding service products, consumers and markets b. managing the competitive landscape c. applying the 4 Ps to services d. managing the customer interface e. implementing profitable service strategies

The service operations system does not include ____________. a. physical facilities b. equipment c. other customers d. technical core e. personnel

The service quality is the difference between what customers expect to receive and their perceptions of the service that is actually delivered. a. True b. False

The standards gap is the difference between specified delivery standards and the service provider's actual performance on these standards. a. True b. False

The term "branded house" is used to describe firms like Virgin Group, that uses distinct individual brand names to cover a range of diverse service offerings in unrelated fields. a. True b. False

The term "productive capacity" refers to the resources or assets that a firm can employ to create goods and services. a. True b. False

The term ____________, used by Dennis Nickson and his colleagues, would most apply to sales associates at Victoria's Secret or Calvin Klein. a. restricted labor b. value-added labor c. functional labor d. aesthetic labor e. synergistic labor

The three additional Ps of services marketing that extend the original four Ps of marketing are _____________, _____________, and _____________. a. product; price; place; promotion b. prospects; process; people; promotion c. physical environment; process; people d. prosperity; process; people; promotion e. physical environment; prosperity; planning; process

The three broad categories of things processed in services are ____________, ____________, and ____________. a. people; physical objects; data b. people; organizations; documents c. people; data; projects d. physical objects; data; documents e. physical objects; organizations

The three stages in the consumer decision making process are ____________, ____________, and ____________. a. pre-awareness stage, pre-purchase, purchase stage b. pre-purchase stage, awareness stage, post-purchase stage c. service encounter stage, pre-purchase stage, post-purchase stage d. pre-purchase stage, awareness stage, purchase stage e. pre-purchase stage, service encounter stage, post-purchase stage

The two considerations used to categorize service are ____________ and ____________. a. promotion versus place; price versus product b. place versus time; people versus ideas c. place versus people; time versus money d. people versus possession; tangible versus intangible e. people versus intangible; tangible versus possession

The two dimensions of Russell's model of affect are ____________ and ____________. a. centrality; dominance b. pleasure; arousal c. centrality; permanence d. pleasure; regret e. fullness; looseness

The two ends of the customer satisfaction/loyalty relationship are terrorist and apostle. a. True b. False

The use of orange is commonly associated with its ability to encourage verbal expression. a. True b. False

The wheel of loyalty is composed of which of the following three main components? a. Create loyalty bonds; deliver quality service; segment the market b. Create loyalty bonds; build higher level bonds; deliver quality service c. Build a foundation for loyalty; create bundling; build higher level bonds d. Build a foundation for loyalty; create loyalty bonds; reduce churn drivers Create loyalty bonds; understand customer value; understand service value

There are several reasons why the services sector is increasing in almost all countries around the world. Which is not one of the contributing reasons? a. The knowledge-based industries are growing. b. Countries are less dependent on agriculture. c. Some manufacturing firms are now focusing on marketing services as well. d. The construction and manufacturing industries are booming. e. More companies are outsourcing some of their service components.

There is a strong relationship between customer satisfaction and shareholder value. a. True b. False

Thoughtful banks place a telephone beside their ATMs so that customers can call a real person. a. True b. False

Tickets.com is a good example of a firm that successfully generated more revenue by implementing dynamic pricing. a. True b. False

Time is of great importance in services so operations managers have to be concerned about minimizing customer waiting time. a. True b. False

To develop effective marketing strategies, marketers must understand how people make decisions about buying and using service, what the experience of service delivery and consumption is like for customers, and ____________. a. how they evaluate competitors b. how they evaluate the experience c. how often they utilize competitors d. how often they complain to the service firm the length of their relationship with the service firm

To obtain full value from any good or service, customers need relevant information. a. True b.False

Top-level executives of outstanding service organizations spend incredible amounts of time setting profit goals and focusing on market share. a. True b. False

Training in Dial-a-Mattress includes showing staff how to create images in the customers' minds. a. True b. False

Training is most effective at reducing ____________. a. person/role stress b. organization/client conflict c. interclient conflict d. interorganizational conflict e. intraorganizational conflict

Transactional surveys are typically conducted after customers have completed a specific transaction. a. True b. False

Typically service jobs are not well-paid positions and require little education. a. True b. False

Typically the cost of an unhappy customer is lower than the cost of service recovery. a. True b. False

UPS is strongly associated with brown, which gives it the image of being reliable and trustworthy. a. True b. False

United Church Homes & Services offers housing to retirees. This is an example of a market focused strategy. a. True b. False

Vanguard Group is very careful about acquiring the right type of customer. a. True b. False

Vanguard's success is measured by which of the following? a. Low redemption rates b. High redemption rates c. Low customer turnover d. High customer turnover e. Portfolio stability

We need to have queuing or reservations systems because demand cannot be inventoried. a. True b. False

Westin hotels are wholly owned subsidiaries of Marriott Group that are usually not identified as part of Marriott to protect Westin's exclusive image. a. True b. False

What is service science? a. Study of how excellent service can be achieved. b. An approach for developing service operation that can create value for our customers. c. An approach to enable us to study, design and manage effective service systems that create value for our customers. d. A study of various disciplines in the sciences, like logistics management. e. An approach to designing and managing complex service systems.

When Marriott Long Wharf Hotel faces the situation of overbooking, all of the following are steps to recover the situation EXCEPT ____________. a. upgrade the guest to a suite b. helping the guest get a room in another hotel c. giving the guest money to pay for the cab fare d. giving the guest complimentary continental breakfast e. call the guest later at the other hotel to make sure he is alright

When a firm wants to inventory demand via a reservation system and has insufficient capacity it should lower prices selectively. a. True b. False

When customers visit the service site, which factor/(s) must be considered in the design of the service? a. How expensive the service is. b. Convenience of the location. c. Operational hours. d. A & B only. e. B & C only.

When migrants from developing countries move back to their own countries after living and working abroad in developed countries, there will be a vacuum in the employment market of developing economies. a. True b. False

Which of the following are the three main zones of the satisfaction-loyalty relationship? a. Direction; institution; affluence b. Defection; indifference; affection c. Detection; elimination; subversion d. Detection; affluence; rejection e. Direction; intention; rejection

Which of the following fragrances would you use to boost energy levels and help make customers feel happy and rejuvenated? a. Lemon b. Black pepper c. Lavender d. Eucalyptus e. Rose

Which of the following intensifies price competition? a. Non-price-related costs of using competing alternatives are high. b. Wider distribution of competitor and or substitution offers. c. Personal relationships have been established. d. Switching costs are high. e. Customer need for time and location specificity.

Which of the following is NOT a broad dimension of service quality? a. Tangibles b. Reliability c. Responsiveness d. Transcendence e. Assurance

Which of the following is NOT a common educational and promotional objective in service settings? a. Build awareness of and interest in an unfamiliar service or brand. b. Reposition a service relative to competing offerings. c. Familiarize customers with service processes in advance of use. d. Encourage trial of competing products. e. Recognize and reward valued customers and employees.

Which of the following is NOT a communication task for which marketers use the Internet? a. Promoting consumer awareness and interest. b. Providing information and consultation. c. Facilitating two-way communications with customers through e-mail and chat rooms. d. Enabling customers to place orders. e. Reducing service demand through electronic tracking.

Which of the following is NOT a firm that uses dynamic pricing? a. Easyinternetcafe.com b. Yahoo.com c. Tickets.com d. Amazon.com e. All of the above firms use dynamic pricing.

Which of the following is NOT a key component of a service blueprint? a. Line of transference b. Line of interaction c. Line of visibility d. Backstage actions by customer contact personnel e. Front-stage actions by customer contact personnel

Which of the following is NOT a type of perceived risk in purchasing and using services? a. Functional b. Permanent c. Financial d. Physical e. Social

Which of the following is NOT an advantage of self-service technologies? a. Greater choice of products b. Higher perceived level of customization. c. Convenience of location. d. Greater control over service delivery. e. Cost and time savings.

Which of the following is NOT an aspect of ING Direct's no-frills strategy? a. High interest rates b. Offers only a handful of basic products c. Lures low-maintenance customers d. Firing customers who don't fit the profile e. Increased contact with the bank

Which of the following is NOT an example of a non-physical fence? a. Time or duration of use. b. Group membership. c. Service level. d. Flexibility of ticket usage. Location of reservation

Which of the following is NOT an example of common CRM applications? a. Data collection b. Data analysis c. Market reinvestment d. Sales force automation Call center automation

Which of the following is NOT an objective for service pricing? a. Build supply. b. Build demand. c. Seek profit. d. Cover costs. e. Build a user base.

Which of the following is NOT considered an example of a hospitality element? a. Greeting b. Toilets and washrooms c. Advice d. Food and beverages e. Transport

Which of the following is NOT listed in the chapter as a firm that uses online reverse auctions? a. Priceline.com b. Hotwire.com c. eBay.com d. Lowestfare.com e. All of the above use online reverse auctions.

Which of the following is NOT one of British Airways seven distinct air travel products? a. Deluxe service (First Class) b. Club World (Business Class) c. Club Britain (Business Class) d. Club Europe (Business Class) e. Euro-Traveler (Economy Class)

Which of the following is NOT one of the advantages to incremental profits of a loyal customer? a. Profit from increased purchases. b. Profit from decreased advertising. c. Profit from reduced operating costs. d. Profit from referrals to other customers. e. Profit from price premiums.

Which of the following is NOT one of the alternative queuing configurations discussed? a. Single line/single servers at sequential stages b. Multiple line to single servers ("snake") c. Parallel lines to multiple servers d. Designated lines to designated servers e. "Take a Number" (single or multiple servers)

Which of the following is NOT one of the aspects of leadership in the future? a. Leadership coming from emerging countries, with different styles. b. Collaborative, using the team approach. c. Leadership from behind, sharing power with others. d. Building collective efforts. e. Controlling employees so they do not act on impulse.

Which of the following is NOT one of the benefits of having a reservations system? a. Helps service personnel to serve more effectively. b. Helps in pre-selling the service. c. Helps customers to avoid queuing. d. Helps firms to keep some time aside for emergency jobs. e. Allows demand to be controlled.

Which of the following is NOT one of the conditions that fixed-capacity firms may face? a. Excess capacity. b. Demand exceeds desired capacity. c. Demand and supply are well-balanced. d. Ideal demand exceeds capacity. e. Excess demand.

Which of the following is NOT one of the criteria that service guarantees should be designed to meet? a. Easy to understand and communicate b. Meaningful to the customer c. Conditional d. Easy to invoke e. Credible

Which of the following is NOT one of the dimensions of the service environment? a. Exterior facilities b. General infrastructure c. Store layout d. Interior displays e. Location

Which of the following is NOT one of the eight basic steps to developing and delivering a branded customer experience? a. Target profitable customers, employing behavior segmentation rather than demographics. b. Achieve a superior understanding of what your targeted customers value. c. Design facilities that delight your customers and reduce complaints. d. Give employees the skills, tools, and supporting processes needed to deliver the defined customer experience. e. Make everyone a brand manager.

Which of the following is NOT one of the elements of effective service recovery? a. Do the job right the first time b. Seek alternative recompense strategies c. Identify service complaints d. Resolve complaints effectively e. Learn from the recovery experience

Which of the following is NOT one of the factors that encourage extended operating hours? a. Availability of employees to work during "social" hours. b. Economic pressure from consumers. c. Changes in laws. d. Economic incentives to improve the use of assets. e. Automated self-service facilities.

Which of the following is NOT one of the five basic approaches to managing demand? a. Taking no action and leaving demand to find its own levels. b. Reduce demand in peak periods. c. Increase demand when there is excess capacity. d. Inventory capacity until demand increases. e. Inventory demand by creating a formalized queuing system.

Which of the following is NOT one of the four basic focus strategies? a. Service focused b. Unfocused c. Fully focused d. Refocused e. Market focused

Which of the following is NOT one of the four customer tiers discussed by Zeithaml, Rust, and Lemon? a. Platinum b. Gold c. Bronze d. Iron e. Lead

Which of the following is NOT one of the four principles of positioning according to Jack Trout? a. A company must maintain a strong labor base. b. A company must establish a position in the minds of its targeted customers. c. The position should be singular, providing one simple and consistent message. d. The position must set a company apart from its competitors. A company cannot be all things to all people—it must focus its efforts

Which of the following is NOT one of the four problems for marketers seeking to promote a service's benefits? a. Distribution b. Abstractness c. Generality d. Non-searchability e. Mental impalpability

Which of the following is NOT one of the guidelines provided for the Front Line on how to handle customer complaints? a. Consider compensation b. Keep the customer informed of progress c. Explain the problem from the service firm's point of view d. Acknowledge the customer's feelings e. Act fast

Which of the following is NOT one of the key strategies used to reduce customer defections? a. Eliminate nuisance customers. b. Address key churn drivers. c. Implement effective complaint handling and service recovery procedures. d. Increase switching costs. e. Analyze customer defections and monitor declining accounts.

Which of the following is NOT one of the options customers take when they are dissatisfied with a service encounter? a. Take legal action. b. Vent their anger on the service equipment. c. Do nothing. d. Complain to the service firm. e. Give negative word of mouth.

Which of the following is NOT one of the productive capacity forms in a service context? a. Physical facilities designed to contain customers b. Physical equipment used to process people, possessions, or information c. Customers d. Labor e. Infrastructure

Which of the following is NOT one of the reasons why customers complain that is listed in the book? a. Better understand the failure b. Vent their anger c. Help improve the service d. Obtain restitution or compensation e. For altruistic reasons

Which of the following is NOT one of the seven categories of new services? a. Target profitable customers, employing behavior segmentation rather than demographics. b. Achieve a superior understanding of what your targeted customers value. c. Design facilities that delight your customers and reduce complaints. d. Give employees the skills, tools, and supporting processes needed to deliver the defined customer experience. e. Make everyone a brand manager.

Which of the following is NOT one of the six key factors that influence an organization's working environment? a. Flexibility b. Responsibility c. Standards d. Power e. Clarity

Which of the following is NOT one of the six service quality gaps? a. The knowledge gap. b. The proportion gap. c. The policy gap. d. The delivery gap. e. The perceptions gap.

Which of the following is NOT one of the six steps that can help smooth the path of customer change? a. Develop customer trust. b. Understand customers' habits and expectations c. Develop innovation and limit trial. d. Pretest new procedures and equipment. e. Publicize the benefits.

Which of the following is NOT one of the strategies for developing loyalty bonds with customers? a. Deepening the relationship b. Lag-based bonds c. Social bonds d. Customization bonds e. Structural bonds

Which of the following is NOT one of the ways to change the overall level of capacity to match demand variations? a. Use part-time employees. b. Ask customers to share. c. Invite customers to perform self-service. d. Cross-train employees. e. Share facilities with the supplier.

Which of the following is a component of service performance discussed under the marketing function? a. Service quality b. Service delivery c. Productivity d. Workforce e. Role of operations

Which of the following is a component of service performance discussed under the operations function? a. Role of marketing b. Competitive appeal c. Introduction of new technology d. Customer profile e. Workforce

Which of the following is an ambient condition? a. Facility layout b. Displays c. Music d. Location e. Price

Which of the following is an example of a franchised service firm? a. Saks b. Wal-Mart c. Barnes & Noble d. Starbucks e. Pier One Imports

Which of the following is an example of a special request in advance of service delivery? a. Dietary requirements b. Complaints c. Warranties d. Refunds e. Suggestions

Which of the following is an example of co-production? a. Withdrawing from an ATM. b. Eating fast food. c. Touring an aquarium. d. Buying a stereo. Selling items on eBay

Which of the following is one of Holiday Inn's hotel areas that show a particularly strong impact on revenue per available room? a. Dining facilities b. The lobby c. The exterior d. Public restrooms e. Kitchen facilities

Which of the following is one of the customer-driven approaches to improving productivity? a. Ask customers not to use third parties. b. Limiting customer involvement in production. c. Changing the timing of customer demand. d. Reducing backstage elements of production. e. Reducing front-stage elements of production.

Which of the following is one of the three functions that are tightly linked in effective service firms? a. The management function. b. The outputs function. c. The inputs function. d. The servicescape function. e. The human resources function.

Which of the following is the best example of a determinant characteristic for airline travel? a. Oxygen masks b. Plane size c. Quality of food and drinks d. Having cocktail service Floatation devices

Which of the following is the best example of a service firm that attracts customers with low base prices and then piles on additional fees. a. Rental cars b. Fast food c. Education d. Roofing e. Consulting

Which of the following is the best example of a service industry that utilizes price complexity? a. Fast food b. Education c. Cellular phone d. Moving/transportation e. Roofing

Which of the following is the best example of a supplementary service? a. Appliance maintenance b. Hotel room rental c. Fast food consumption d. House cleaning e. Landscaping

Which of the following is the best example of problems created by inappropriate color usage? a. Blue chairs in Canada b. Black bags in London c. Yellow cars in Switzerland d. Green buses in Israel e. Red buses in London

Which of the following is the best example of the source of a delayed flight caused by front-stage personnel? a. Air traffic b. Late food service c. Late fuel d. Gate agents cannot process passengers quickly enough e. Poor announcement of departures

Which of the following is the best example of the source of a delayed flight caused by procedures? a. Cutoff too close to departure time b. Late cabin crews c. Late cabin cleaners d. Weather e. Oversize baggage

Which of the following is the correct action for a firm to take that wants to reduce demand and has insufficient capacity? a. Take no action. b. Consider override for most desirable segments. c. Consider priority systems for most desirable segments. d. Increase prices or encourage use in other time slots. e. Lower prices selectively.

Which of the following is the prescription for the perception gap? a. Ensure the right service processes and specify standards. b. Ensure that performance meets standards. c. Learn what customers expect. d. Tangibilize and communicate the service quality delivered. e. Ensure that communications promises are realistic.

Which of the following reduces price competition? a. Increasing the number of competitors. b. Increasing the number of substituting offers. c. Wider distribution of competitor and/or substitution offers. d. High switching costs for consumers. e. Increasing surplus capacity in the industry.

Which of the following represents a broad target audience category? a. Donors b. Competitors c. Employees d. Contractors e. Franchisers

Which of the following services best represents how little complaining consumers actually do? a. TARP b. Land's End c. Hampton Inn d. FedEx e. A public bus company

Which of the following would be classified under generality in intangibility? a. Safety. b. A hamburger. c. An airline seat. d. Facility appearance. e. Expert advice.

Which one of the following methods is NOT a banking service that can be delivered remotely? a. Face-to-face. b. Internet. c. Mobile phone. d. Call centers. e. All of the above are bank service delivery methods.

XL Capital portrays its logo as a giant obelisk between cliffs and a lighthouse to ____________. a. build trust with its clientele and generate a moment of truth. b. demonstrate its size and fundamental strength in protecting companies from risk. c. provide detailed information about its financial solubility. d. provide a visual example of its prowess to enhance experiential attributes. e. act as an advertisement that highlights important aspects of the company.

Yellow pages has come up with a global positioning service so that customers can click and download information to help them get from one place to another. a. True b. False

Yield analysis forces managers to recognize the opportunity cost of selling capacity for a given date to a customer from one market segment when another might subsequently yield a higher rate. a. True b. False

Yield management computers can determine who is likely to not show up or take other flights. a. True b. False

Yotel and Qbic are capsule hotel chains. a. True b. False

____________ and ____________ represent important ways to add value to a product. a. Reciprocation; classification b. Information; classification c. Information; consultation d. Reciprocation; consultation e. Reciprocation; mediation

____________ and ____________ typically measure satisfaction with all major customer service processes and products. a. Total market surveys; ordinary surveys b. Regular surveys; ordinary surveys c. Regular surveys; reverse surveys d. Regular surveys; split surveys e. Total market surveys; annual surveys

____________ augment the core product, both facilitating its use and enhancing its value and appeal. a. Core products b. Supplementary services c. Delivery processes d. Sustaining processes e. Conditional services

____________ has become a popular way to expand delivery of an effective service concept, embracing all of the seven Ps, to multiple sites, without the level of investment capital that would be needed for rapid expansion of company-owned and managed sites. a. The Internet b. International trade c. Franchising d. Sole proprietorship e. Limited partnership

____________ involves the employees of the firm who provide the service recovery and their behavior toward the customer. a. Procedural justice b. Legal justice c. Interactional justice d. Relational justice e. Outcome justice

____________ is defined as the sum of all the perceived benefits minus the sum of all the perceived costs of service. a. Net value b. Consumer surplus c. Gross value d. Moderate value e. Consumer demand

____________ is the authentication or identification of individuals based on physical characteristics or traits. a. Service amping b. Decryption c. Biometrics d. Encryption e. Electronic access

____________ is usually the first variable to be proposed for bringing demand and supply into balance. a. Price. b. Place. c. Personnel. d. Product. e. Promotion.

____________ outside peak demand periods poses a serious problem for service industries with ____________, like hotels. a. Low demand; high fixed costs b. Low demand; low fixed costs c. High demand; high fixed costs d. High demand; low fixed costs e. High demand; low variable costs

____________ recognizes that resource expenses are linked to the variety and complexity of goods and services produced and not just on physical volume. a. Break-even analysis b. Variable cost c. Fixed cost d. Activity-based costing e. Semi-fixed cost

____________ refers to a group of technologies for distributing audio or video programs over the Internet using a publisher/subscriber method. a. Podcasting b. Webcasting c. Websiting d. Webenabling e. Webscribing

____________ represent a special type of order taking that entitles customers to a specific unit of service. a. Suggestions b. Reservations c. Trackers d. Repossessions e. Contracts

____________ uses the metaphor of reaching the top to appeal to their customers. a. Prudential b. Allstate c. Accenture d. MasterCard e. Merrill Lynch

____________, also known as customized or personalized pricing, refers to the practice of price discrimination. a. Critical ratio pricing b. Dynamic pricing c. Collective pricing d. Fixed pricing e. Classical pricing

____________, refers to an explicit form of positioning strategy that is based upon offering several price-based classes of service concept, each based on packaging a distinct level of service performance across many attributes. a. Service tiering b. Service conscription c. Broad-basing d. Price-setting e. Matching

_____________ is when leaders are able to display the behaviors that they expect of managers and other employees. a. Role modelling b. Motivational management c. Affiliative leadership d. Authoritative leadership Political maneuvering

_____________ technology facilitates the rise of user-generated content. a. Podcasting b. Narrowcasting c. TiVo d. YouTube e. Web 2.0

______________ is an example of a service where the main mode of delivery is for the service provider to go to their customers. a. Banyan Tree Resorts b. Barnes and Nobles c. Royal Flying Doctor d. Starbuck e. Dunkin' Donuts

_______________ is a key driver of channel choice. a. Risk reduction b. Convenience c. Colorful photos of the product d. Internet access e. Lower prices

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