MKTG 4350 Final

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The maintenance contract offered by Sears on its Kenmore refrigerators, dishwashers and microwaves is an example of a(n) _______. A. ServiceB. ExperienceC. AttributeD. GoodE. Benefit

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

On a recent trip to Disneyworld, Danielle had her picture taken with Minnie Mouse. After the picture was taken, Minnie Mouse signed Danielle's autograph book. Danielle's interaction with Minnie Mouse was actually a service _____ with Disneyworld. A. EventB. SocializationC. EncounterD. ArrangementE. Acculturation

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

Parisian, a specialty department store chain in the southeastern U.S., instituted a policy change allowing sales associates to accept personal checks up to $5000 without department manager approval. Parisian's is using empowerment to narrow provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

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

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

The _______ suggests an initially disappointed customer who has experienced good service recovery might be even more satisfied and loyal as a result. A. Baker's dozen paradigm B. Recovery paradox C. Halo effect D. Service dilemma E. Service quandary

n effective service guarantee would never be described as: A. Unconditional B. Easy to invoke and collect C. Standardized and/or generic D. Meaningful E. Easy to understand and communicate

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

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

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

If the purpose of the service blueprint is to understand the integration of the various elements of the service process, the blueprint should be examined: A. As a whole picture of the service process B. Vertically C. From left to right only D. Horizontally E. From right to left only

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

In Mexico for about $13.50, you can participate in a migrant obstacle course that gives tourist a taste of the sometimes deadly crossings that illegal migrants make daily. Employees of the park do their best to catch the mock migrants. When they are caught, they hands are bound behind their back and they are loaded into trucks. Which of the following would NOT be part of the customer's evidence of service for this experience? A. The other customersB. Economic conditions in MexicoC. Guarantees of safetyD. Conditions of land that is being crossedE. How employees communicate with customers

In a Federal Express overnight delivery service blueprint, which of the following is an example of an onstage contact employee action? A. Package is flown to destination B. Federal Express driver picks up package from customer C. Federal Express driver drops off package at airport D. Customer prepares package for Federal Express driver E. Federal Express customer service representative receives order from customer

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

In a service blueprint, the line of internal interaction separates: A. Customer actions from onstage contact employee actions B. Backstage contact employee actions from support processes C. Onstage contact employee actions from backstage contact employee actions D. Onstage contact employee actions from support processes E. Customer actions from backstage contact employee actions

In addition to compensation, customers expect _____. In other words, they expect fairness in terms of policies, rules and timeliness of complaint process. A. Functional equity B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

In addition to the elements of the traditional marketing mix, the expanded mix for services includes: A. Positioning, personalization and processB. People, physical evidence and processC. Personalization, procurement and peopleD. Profit, production and psychologyE. People, partnerships and positioning

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

________ refers to the fact that a complaining customer expects to be treated fairly, with care and honesty. A. Functional equity B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

nce Mariko had carried her dry cleaning to the car, she took a minute to see if the cleaners had removed the stain from her wool skirt. The stain was still there, so Mariko took the skirt back inside to the cleaner. When Mariko showed the stained skirt to the cleaner employee, she shrugged and said, "I guess you want us to reclean the skirt"? Mariko responded, "Yes, please". The employee took the skirt, gave Mariko a dirty look and began sorting some items on the counter. Mariko experienced: A. Functional unfairness B. Procedural unfairness C. Interactional unfairness D. Service inequity E. Situational unfairness

the most basic and universally cited, difference between goods and services is: A. HeterogeneityB. PerishabilityC. IntangibilityD. ComparabilityE. Divisibility

Due to the _____ characteristic of services, customers can affect the transaction and how others perceive the transaction. A. ComparabilityB. IntangibilityC. HeterogeneityD. Simultaneous production and consumptionE. Perishability

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

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

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

For years, State Farm insurance used the slogan, "Like a good neighbor, State Farm is here". The slogan showed the availability of the State Farm agent to help in any way needed. Which dimension of service quality was State Farm emphasizing? A. ReliabilityB. ResponsivenessC. AssuranceD. EmpathyE. Tangibles

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

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

The _____ dimension of service quality is the caring, individualized attention given to customers. A. ReliabilityB. ResponsivenessC. AssuranceD. EmpathyE. Tangibles

The ads for a weight loss program that promised the program would change an individual's eating habits through hypnosis is probably overstating its usefulness because there are some people in the world that cannot be hypnotized. This sort of misleading advertising broadens provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is a voicer type when it comes to complaining would react to this by: A. Assuming he had done something to alienate the carpenter B. Taking no action whatsoever C. Spreading negative word of mouth about the carpenter to all of his or her friends and relatives D. Confronting the carpenter at another job site and demanding to know when he would be back to finish the floor E. Hiring another carpenter to finish the job

The factors that influence adequate service expectations are _____ in nature and fluctuate _____ than the factors that influenced desired service expectations. A. Long-term; lessB. Long-term; moreC. Short-term; lessD. Short-term; more

To determine the source of customers' favorable and unfavorable perceptions in service encounters, researchers use which of the following research methods? A. Trailer callsB. Mall intercept interviewsC. Role-playing experimentsD. Critical incident techniqueE. Thematic apperception tests

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

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

When its sales were declining, Canadian Airline conducted a marketing survey to understand the expectations of the business traveler, its target market. It learned business travelers resent that they are bosses in their own offices but are totally controlled by the whims of the airlines when they travel. If Canadian Airline had only surveyed former customers who were still in their database, it would have used which service recovery strategy? A. Critical incident B. Make the service fail safe C. Welcome and encourage complaints D. Learn from lost customers E. Customer empowerment

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

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

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

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

Which of the following products is LEAST high in experience qualities? A. Plastic surgeryB. A prom bandC. Catered banquetD. Wedding dressE. Pet grooming

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

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

All of the following examples are nonmonetary costs EXCEPT: A. Time costs B. Search costs C. Convenience costs D. Psychological costs E. Utility costs

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

Which of the following factors does NOT lead to provider gap 4? A. Absence of strong internal marketing programB. Over-promising in advertisingC. Insufficient communication between marketing and operationsD. Differences in policies and procedures across company branchesE. Creating clear standards

A customer's overall service quality evaluation is the accumulation of evaluations of multiple service experiences. t/f

In a service culture, good service is a way of life and it comes naturally to the members of the organization because it is an important norm. t/f

Through its external marketing efforts, a company makes promises to its customers regarding what they can expect and how it will be delivered. t/f

A services research program can be defined as the composite of separate research studies and types needed to address research objectives and execute an overall measurement strategy. T/F

true

When is a biased interpretation likely to occur during a discussion of a new restaurant? A. At the beginning of the conversation B. When one party uses nonverbal communications C. When one party uses words like nice and different to describe the restaurant D. Just prior to the conclusion of the conversation E. Whenever the conversation is disrupted by noise

When is a service guarantee inappropriate? A. When prices for the service are high B. When negative impact of unsolved problems is high C. When service quality is truly uncontrollable D. When company has a poor image for service quality E. When company depends on frequent customer purchases

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

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

Which of the following is an example of material culture, one of the tools used to differentiate one culture from another? A. The way senior citizens are treatedB. The reverence people show for its artists and musiciansC. What people collect and display in their homesD. How people use their free timeE. Educational institutions

For the Chinese New Year, tens of thousands of Chinese will flock to Las Vegas, Nevada to test how lucky they are. This annual pilgrimage by members of China's middle class reflects the Chinese love of games of chance and their belief that the New Year brings good luck. Las Vegas will erect elaborate decorating for the Chinese New Year celebration. Las Vegas is responding to the _____ of the Chinese middle class. A. AestheticsB. SocializationC. Material cultureD. Values and attitudesE. Language (both verbal and nonverbal)

_____-based occurs when services are standardized across providers. A. Demand B. Profit C. Competition D. Supply E. Cost

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

The _____ gap is the difference between customer perceptions and expectations. A. CustomerB. ServiceC. ValueD. QualityE. Delivery

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

A retail travel agent is a _____ agent. A. Facilitating B. Leading C. Selling D. Purchasing E. Mediating

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

A company that uses a four-tiered system to rank the profitability of its customers is: A. Expanding the 80/20 customer pyramid B. Eliminating non-profitable customers C. Using volume segmentation D. Committed to providing service equality to its customers E. Not very knowledgeable about its customers

A primary goal of firms at the friendship stage of the relationship is: A. Customer retention B. The creation of a unique product C. Creating a competitive advantage through their marketing mix D. Gaining a familiarity of how the customer creates its service offerings E. The enhancement of customer relationships

A(n) _____ is a composite of the perceptual satisfaction or service quality measures collected in an organization. A. Zone of tolerance chart B. Salience of dimensions and attributes graph C. Gap scores tracking tool D. Importance/performance matrix E. Customer satisfaction index

According to the _____, while advertising, sales and promotions pour profits into your company, there will always be some customer defection, which has the potential to grow larger. A. Bucket theory B. Iceberg principle C. 80/20 principle D. Service paradigm E. Echo principle of marketing

Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Marriott is using _____ to implement its retention strategy. A. Financial bonds B. Social bonds C. Customization bonds D. Structural bonds E. Security bonds

In 2000, SwissAir made some unwise investments to pay for a planned expansion. As a result, the company had to make some cost-cutting moves that alienated its customers. Eventually the company declared bankruptcy, regrouped and found itself able to resume business. Its board of directors announced the company would resume flying in the Spring of 2002 if it could prove the airline could regain at least 75 percent of its lost customers. It decided to allot $50,000 to determine the probability that its former customers would fly on the airline again and what methods requiring little or no money could be used to increase that probability. Which of the following two methods are low-cost research methods SwissAir could use to reach its research objectives? A. Critical incident studies and lost customer research B. Future expectations research and lost customer research C. Complaint solicitation and service expectation meetings and reviews D. Database marketing research and customer panels E. Customer panels and complaint solicitation

In which evolutionary stage of customer relationships is customer retention fostered by a service provider consistently provides customers with quality goods and services as well as good value over time? A. Friendship B. Affiliation C. Acquaintanceship D. Allies E. Partnership

Key Energy was a company that provided quality oilfield construction, drilling and other services. The company's top management felt stakeholders did not have a clear image of the company and were considering changing the name to clarify the organization's position in the market. Senior management interviewed the company's salespeople to learn how they felt about selling Key Energy's services. As part of examining the corporate image, the company used: A. Upward communication B. Synetics research C. Lead user research D. SERVQUAL surveys E. Relationship surveys

The new owner of the St. Louis Rams football team wanted to know why game attendance was low. The research revealed several reasons, including shortage of toilet paper and straws, high prices for bad seats and inadequate parking. When the researchers asked survey participants to prioritize their reasons for not attending the games, the researchers were gathering _____ importance measures. A. Direct B. Leading C. Primary D. Indirect E. Secondary

Marine Midland Bank hired marketing researchers when it noticed many people who had savings accounts with the bank did not have checking accounts and credit cards with it. The first task of the market researchers was to learn if the bank wanted to know how its customers perceived the bank as a service provider, if it were more interested in what customers thought was superior about its savings account, if the bank thought some customer expectations were not being met or if what the bank really wanted to know was how it could change its service to better meet customer expectations. The first thing the research company did was to: A. Help Marine Midlands Bank define the problem and establish research objectives B. Determine with the bank's help who should be surveyed C. Use data mining to see if there were any connections between customers who used all three services and those who used only one of the services the bank offered D. Determine what research methodology it would use E. Decide how data analysis techniques

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

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

New Bedford College has a two-year masters degree program designed for special education teachers. Thirty-five students enter the program each fall. The education department requires that the 35 students take the same classes. Classes are made available in sequence. If Beth wanted to take only one special education class to get her a teaching certificate in learning disabilities (LD), she would be unable to because she would not be able to participate in any carry-over projects from previous classes (This is a common teaching tool for the New Bedford education department faculty.). New Bedford College will avoid setting up a relationship with Beth because: A. She is in the wrong segment B. She and others like her are compatible C. Her needs are homogeneous with many others D. She would be a difficult customer E. She would not be profitable in the short-run

Retention strategies based on social bonds: A. Build long-term relationships through social and interpersonal as well as financial bonds B. Use a strategy of mass customization C. Are concerned about maintaining customer intimacy D. Are the most difficult of the retention strategies to initiate E. Create high opportunity costs

Salespeople for college texts call on college instructors to sell them on using a particular text for their classes. Improvements in efficiency have led some publishers to stop making sales calls altogether on smaller colleges. It is a much better use of the sales force's time to call on schools with large classes and big adoption rates. From the customer's point of view, this application of the profitability tier: A. Could be seen as demeaning B. Will not cause any problems C. Simply increases the importance of word-of-mouth communication D. Is not profitable E. Creates across-the-board customer enhancement

Since service companies have determined they need not serve all customers equally well, they have divided their target markets according to: A. Current and/or future profitability B. Behavior C. Usage D. Volume E. User characteristics

The Marriott Hotel introduced Express Check-Out service in response to customer frustration at waiting in long checkout lines. A guest's credit card receipt and hotel bill is left under his or her room door the morning of his or her scheduled departure. After checking the accuracy of the bill the guest simply leaves his or her room key in the room or in one of the key drop boxes at the front desk before leaving the hotel. Marriott's Express Check-Out allows the hotel to engage in: A. Mass customization B. Mass marketing C. Niche marketing D. Focused marketing E. Transactional marketing

The _____ of a customer is the increased value or profit that accrues for each additional customer who remains loyal to a company rather than defecting to the competition. A. Lifetime value B. Attractiveness index C. Profit performance quotient D. Relationship benefit E. Loyalty factor

The health industry in the U.S. is an $840 trillion business. Adam.com is trying to cash in on some of that money by providing an Internet service that will answer health-related questions for consumers. After a year in operation, Adam.com did an informal survey of its customers. It used open-ended questions to determine what people like and dislike about its service. Adam.com was conducting _____ research. A. Qualitative B. Functional C. Inferential D. Secondary E. Quantitative

The new owner of the Atlanta Falcons football team had research conducted to learn why game attendance was low. The research revealed several reasons, including shortage of toilet paper and straws, high prices for bad seats and inadequate parking. Once all the problems were fixed, the team owner did not want to have any future attendance problems. He set up kiosks in the football stadium where attendees could give the team and the arena a "report card". This would be an example of: A. A trailer call B. A critical incident study C. Market-oriented ethnography D. Requirements research E. A SERVQUAL survey

Which of the following is one of the ways an organization benefits from maintaining and developing a loyal customer base? A. Employee retention B. Customers' increasing expectations of more personalized service C. A reactive market-growth strategy D. The ability to engage in guerilla marketing E. Competitor entrenchment

Which of the following types of interaction activities in a service organization is used to obtain ideas for service improvement? A. Employee suggestions B. Employee internal satisfaction surveys C. Research on intermediate customers D. Executive listening approaches E. Executive visits to customers

While Smitty was shopping at The Home Depot, he was asked to complete a survey assessing his expectations and perceptions of The Home Depot's service quality. In one section of the survey, he was asked to allocate a total of 100 points across the five dimensions of service quality. The 100-point allocation question is a _____ importance measure. A. Direct B. Leading C. Primary D. Indirect E. Secondary

_____ are used to report the findings from a services marketing research study that collected data on the two levels of customer expectations-desired service and adequate service-along with customer perceptions of company performance. A. Zone of tolerance charts B. Salience of dimensions and attributes graphs C. Gap scores tracking graphs D. Importance/performance matrices E. Customer satisfaction indices

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

As a service dimension increases in importance, a consumer's zone of tolerance _____ and his or her desired and adequate service levels _____. A. Narrows; increaseB. Widens; increaseC. Widens; decreaseD. Narrows; decrease

A company that uses a four-tier scheme to segment is customers by profitability: A. Is using usage segmentation B. Identifies customers who need different sorts of attention C. Can increase profitability by increasing sales to lower-level customers D. Cannot use relationship marketing effectively E. Is accurately described by all of the above

According to the 80/20 rule: A. Only 80 percent of a company's customers deserve good service B. 20 percent of a company's customers produce 80 percent of the company's profit C. 20 percent of a company's customers should be classified as defect-prone D. Only 80 percent of a company's customers will be affected by service encounters E. 20 percent of a company's customers will require little or no service

Boston Symphony Orchestra realized the classic music market was generally becoming older and needed to learn how to appeal to younger concert-goers. It hired a research agency to identify the positive and negative attributes of going to concerts. In other words, the research agency conducted a: A. Complaint solicitation B. Requirements research C. Relationship surveys D. Trailer call E. Process checkpoint evaluation

Clark participated in a research study conducted by Red Lobster restaurants in which he was asked to provide a verbatim story about a satisfying and dissatisfying service encounter he had at Red Lobster. Which of the following types of research studies did Clark participate in? A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Trailer calls E. Customer panels

Customer panels: A. Are conducted on an annual basis B. Have moderate time costs C. Have high monetary costs D. Are statistically valid E. Cannot be used to monitor changing customer expectations

Every Thursday afternoon for almost thirty years, Margaret and Lillie have gotten a manicure at the same location. The manicure salon has changed ownership three times and has had two different names during that same period, but Margaret and Lillie still find it a convenient place to meet and share news about friends and relatives. Margaret's and Lillie's relationship with the manicure salon exemplifies how a service provider uses _____ to support its customer retention strategy. A. Economic bonds B. Social bonds C. Customization bonds D. Structural bonds E. Security bonds

Every month the pest exterminator does a monthly spraying at Mike Wade's house. Every month Wade gripes that he is being ripped off by the exterminating company and how he's going to find a new one. But he never does change service providers due to: A. The iteration principle B. Customer inertia C. Service standardization D. Switching costs E. Process reciprocity

How would you describe the sustainability of competitive advantage in the acquaintance stage of the customer relationship evolution? A. Non-existent because the company's primary goal is to induce trial B. Generally low with some variation on how the competition creates unique value C. High even though it depends on how unique the service offering is D. Medium because customer are heterogeneous E. Generally low because of the expense associated with mass customization

If you own a small advertising agency and have limited funding and even less time to spend on services marketing research, which of the following types of research would you be LEAST likely to use? A. Process checkpoint evaluations B. Future expectations research C. Trailer calls D. Critical incidents studies E. Complaint solicitations

In early 2002, the University of Leeds in the U.K. released findings of its study of television viewing behaviors. Seventeen families have given permission for cameras with sound to be placed in the main living areas of their homes for two three-week periods over two years to watch them watch television. The University of Leeds used _____ to determine that people who have specifically chosen to watch a program are more likely to remain present for the commercial breaks within it. A. Multicultural surveys B. Market-oriented ethnography C. Process checkpoint evaluations D. Requirements research E. Diversity studies

Miller & Sons Funeral Home has handled all of the funeral needs for the Atwater family since 1957. The family believes that Miller & Sons offers them good value for their dollar and the Miller sons and the Atwater boys played on the same high school football team. Miller & Sons Funeral Home is using _____ to implement its customer retention strategy. A. Economic bonds B. Social bonds C. Customization bonds D. Structural bonds E. Security bonds

One significant difference between the U.S. and Japanese culture is the love and respect the Japanese give their elders. A service provider who is trying to cater to the needs of the elderly might talk to some Japanese-Americans to gather some ideas on how to improve service quality. The cultural difference should make the service provider view providing service to the elderly from a different perspective. This sort of service research is called: A. Multicultural surveys B. Market-oriented ethnography C. Process checkpoint evaluations D. Requirements research E. Diversity studies

Retention strategies built around financial bonds: A. Provide long-term profit increases B. Use price as the primary marketing mix element C. Are difficult to initiate D. Provide long-term competitive advantage E. Have a high degree of service customization

Sondra has been having her haircut by Logan, a hairstylist at Dazzles, for five years. She has continued to use the same hairstylist even though the price of a haircut at Dazzles is $10 higher than at competing hair salons. Logan does an excellent job cutting her hair and staying up to date on the latest hairstyles and hair care products. Sondra realizes _____ benefits from her relationship with Logan. A. Reliability B. Confidence C. Transactional D. Self-actualization E. Transformational

Structured brainstorming is an example of which of the following types of research? A. Complaint solicitation B. Requirements research C. Relationship surveys D. Key client studies E. Customer panels

The new owner of the Atlanta Falcons football team wanted to know why game attendance was low. Former purchasers of season tickets were asked to provide an anecdote about a satisfying and a dissatisfying experience at a Falcon game. The researchers used: A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Trailer calls E. Customer panels

Trailer calls are also called: A. Prospecting calls B. Post transaction surveys C. Buyers' intentions surveys D. Lost customer calls E. Follow-up surveys

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

Which of the following types of research is NOT done on a continuous basis? A. Complaint solicitation B. Relationship surveys C. Trailer calls D. Customer panels E. Lost customer research

_____ involves identifying the benefits and the attributes that customers expect in a service. A. Complaint solicitation B. Requirements research C. A relationship survey D. A key client study E. A customer panel

Service blueprinting is grounded in all of the following disciplines EXCEPT: A. Computer systems analysis B. Decision theory C. Economics D. Industrial engineering E. Logistics

For which of the following service providers would a guarantee be inappropriate? A. A child care provider who has a reputation for providing the best and most responsible child care in a community B. A truck rental company C. An engine tune-up at a car dealership D. A travel agency E. A university

The term customer intimacy is most closely related to the establishment of _____ bonds. A. Financial B. Social C. Customization D. Structural E. Security

According to the text, the relationships between businesses and their customers have the ability to evolve. In the first step of this evolution process, customers are identified as: A. Acquaintances B. Prospects C. Strangers D. Friends E. Allies

As a result of relationship marketing, customers experience specific relational benefits. These include: A. Social support, esteem benefits and self-actualization benefits B. The upper level benefits described on Maslow's hierarchy C. Confidence benefits, special treatment benefits and social benefits D. Trust, value and no switching costs E. Social relationships and utilities

Following the acquaintance relationship in the evolution of customer relationships is the customers as _____ stage. A. Allies B. Associates C. Friends D. Partners E. Supporters

In many instances, customers develop loyalty to an organization in part because of costs involved in changing to and purchasing from a different firm. These costs are called: A. Financial inertia B. Opportunity costs C. Switching costs D. Fixed costs E. Retained costs

In the first stage in the services marketing research process, the researcher: A. Implements the research program B. Reports his or her findings C. Defines the problem and research objectives D. Collects and tabulates data E. Develops a services measurement strategy

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

Marine Midland Bank hired marketing researchers when it noticed many people who had savings accounts with the bank did not have checking accounts and credit cards with it. The researchers would conduct _____ research if it wanted to test the hypothesis that Marine Midland customers did not like the services the bank provided for its checking account and its credit card customers. A. Functional B. Exploratory C. Quantitative D. Secondary E. Qualitative

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

Molly and Tom are getting married. Last month they hired a caterer for the wedding reception. This month they attended a wedding for which their chosen caterer had provided food, dishes and flowers. Neither thought the food was good and Molly worried that the dishes looked cheap. However, they feel they cannot change caterers at this date due to the large deposit required by the catering company when it took the job. Molly and Tom do not want to pay: A. Extraneous expenses B. Opportunity costs C. Switching costs D. Fixed costs E. Retained costs

One of the most useful forms of analysis in marketing research is the _____, which combines information about customer perceptions and importance ratings. A. Zone of tolerance chart B. Hierarchical needs matrix C. Importance/performance matrix D. Perception/expectation hierarchy E. Quality/satisfaction chart

PSE&G, a utility company located in New Jersey is conducting a services marketing research study to assess its service performance. It will measure the gaps between customer expectations and perceptions along the five dimensions of service quality. Which of the following types of research should PSE&G use? A. Critical incident studies B. Requirements research C. SERVQUAL surveys D. Trailer calls E. Customer panels

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

Sunoco is readying a chain-wide set of marketing initiatives designed to improve its image with women drivers and win more return business to its service station outlets throughout Ontario. It refurbished all of its restrooms and tried to hire friendly personalities and real customer service skills instead of "just who was available". It hired an outside research organization to send people to Sunoco service stations twice monthly to grade staff on their customer interaction skills. What research method did Sunoco use to make sure that each station was implementing the new service strategy? A. Market-oriented ethnography B. Trailer calls C. Mystery shoppers D. Requirements research E. Customer panels

The 80/20 two-tier scheme: A. Is used to justify the philosophy that all customers deserve the same level of service B. Assumes profitability does not determine who the best customers are C. Assumes all customers within each tier are homogeneous D. Is totally unrelated to marketing segmentation E. Is accurately described by all of the above

The Canfields want to landscape their 15-acre yard. The couple plans an herb garden in back that will lead to an English cottage garden. In the west side yard, they are planning on a Japanese garden and a rose garden will be located in the east side yard. They have hired a landscaper to draw the design and to do the actual planning. The Canfields want input on the landscaping. They have asked the landscaper to set up several points where they can give their inputs, correct anything they do not like and make changes before the plan is finalized. Most landscapers would be bothered with this seeming interference, but the landscaper the Canfields chose has used this method for years as a way to measure his company's customer service performance. The landscaper is using a method of gathering customer information most similar to which of the following methods? A. Trailer calls B. Market-oriented ethnography C. Process checkpoint evaluations D. Requirements research E. Critical incidents studies

The Learning Academy provides tutoring for children who are having trouble mastering some skill in school-whether it is math, reading, studying or something else. It wants to monitor and determine the strengths and weaknesses of The Learning Academy's curriculum. Which of the following types of research should The Learning Academy use to realize this objective? A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Key client studies E. Trailer calls

The development of strong customer relationships is strongly influenced by: A. Legal barriers to loyalty programs B. The composition of the buying center C. Barriers the customer faces in leaving a relationship D. Differences in organizational cultures E. All of the above

The most critical stage in the services marketing research process is when the marketing researcher: A. Implements the research program B. Reports his or her findings C. Defines the problem and research objectives D. Collects and tabulates data E. Develops a services measurement strategy

United Jersey Bank offers customers, who have a combined balance of $3000 or more in a United Jersey Checking Account and Preferred Money Market Account, a service called United Jersey Preferred Banking. This service is designed to make banking more convenient and profitable for customers. United Jersey Preferred Banking eliminates monthly maintenance fees, provides unlimited free transactions at ATMs, preferred rates on personal loans, higher interest rates on savings with higher balances and a consolidated monthly statement. United Jersey Bank does not offer United Jersey Preferred banking to customers with a combined balance of less than $3000 in a United Jersey Checking Account and Preferred Money Market Account since these customers are: A. In the wrong segment B. Not divisible C. Not profitable in the long run D. Known as difficult customers E. None of the above

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

Which of the following statements about relationship surveys is true? A. Relationship surveys are not statistically valid even though they are very useful to service providers B. Relationship surveys should be conducted weekly C. SERVQUAL is a type of relationship survey D. With relationship surveys, the same respondents should be used each time the survey is administered E. To be reliable and valid, the relationship survey should be administered to all of the service provider's customers

Which of the following statements describes a benefit of critical incident studies? A. The method provides abstract data B. The method provides data that is readily quantifiable C. The research method is especially useful when the service is new D. The research method is especially useful for services in the maturity stage of their product life cycle E. All of the above statements describe a benefit of critical incident studies

Which of the following types of research is unique to services? A. Trailer calls B. Market-oriented ethnography C. Mystery shopping D. Database marketing research E. Critical incident studies

_____ marketing focuses on keeping and improving current customers, rather than concentrating on acquiring new customers. A. Transaction B. Expansion C. Relationship D. Strategic E. Benefit

t the partnership stage of the customer relationship, the firm is most concerned with: A. Creating a competitive advantage B. Customer satisfaction C. The enhancement of its relationship with the customer D. Creating service loyalty E. Customer retention

Which of the following products is the most difficult to evaluate? A. Hair cutB. Fluoride treatment for children's teethC. Car seat designed for an infantD. Decorative sculptureE. Skateboard

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

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

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

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

Century Business Systems, Inc. offers all of the non-technical support a business would need to operate successfully-everything from auditing to management consultant to financing to marketing advice. Which of the following types of interaction activities is it likely to use to gain information about its business customers and still be able to have only a minimal investment of time and money in the research? A. Employee suggestions B. Employee internal satisfaction surveys C. Research on intermediate customers D. Executive listening approaches E. Executive visits to customers

Customer retention strategies based on customization bonds: A. Do not exist in business-to-business marketing B. Create tying contracts, refusals to deal, exclusive dealing and areas of gray marketing C. Are not concerned with the pricing element of the marketing mix D. May include the customer intimacy approach E. Support transactional marketing as well as relationship marketing

In acquaintance relationships, firms generally focus on: A. Creating service offering awareness B. Inducing product trial and adoption C. Gaining specific knowledge of customer's needs D. Providing value comparable to the competition E. Creating clear and easily comprehended communications

Mass _____ entails designing products and services to fit each customer's individual needs. A. Segmentation B. Standardization C. Individualization D. Customization E. Heterogeneity

Often, _____ are created by providing customized services to the client that are technology based and make the customer more productive. A. Financial bonds B. Social bonds C. Customization bonds D. Structural bonds E. Heterogeneity

One benefit of _____ is that it identifies failure points and common problems in the service and can help establish an early-warning system for future defectors. A. Failure ethnography B. A survey of buyers' intentions C. Focus groups D. Lost customer research E. Future expectations research

Retention strategies built around customization bonds: A. View employees as customers B. Provide short-term competitive advantage C. Use price as the primary marketing mix element D. Focus on mass customization and customer intimacy E. Have a low degree of service customization

The Limited recognizes sales associates who provide excellent customer service by rewarding them with a "Hero Award", which is displayed in the store where the sales associate is employed. To measure a sales associate's service performance, which type of research should The Limited use? A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Mystery shopping E. Lost customer research

The University of Central Florida's Incentive/Efficiency Program encourages employees to submit tangible ideas or suggestions that will result in savings or generate additional revenue for the University of Central Florida. The person who suggests an adopted proposal receives a cash reward equal to 10 percent of the first year's net savings or generated revenues. The University of Central Florida's Incentive/Efficiency Program is designed to achieve which of the following research objectives? A. Gain first-hand knowledge about customers B. Improve internal service quality C. Gain first-hand knowledge of employees D. Obtain ideas for service improvement E. Gain first-hand knowledge about competitors

The primary goal of businesses that are in the first stage of their relationship with a customer is to: A. Create financial bonds B. Develop a long-lasting relational time horizon C. Qualify the prospect as a customer D. Initiate communications in order to attract them E. Engage in problem solving sales

The synectics approach, features research and lead user research are all categorized as forms of: A. Post transaction surveys B. Database marketing research C. Process checkpoint surveys D. Future expectations research E. Relationship surveys

US Franchise System (USFS) is the world's fastest growing hotel company. Among its hotel franchises are Microtel Inn & Suites, Hawthorn Suites and Best Inns & Suites. Every three months, employees from a different franchise overseen by USFS conduct customer satisfaction telephone surveys. Among the employees who regularly participate in the survey process are senior managers, who are trained and certified to conduct survey interviews. Which type of interaction activity is USFS using to improve upward communication? A. Employee suggestions B. Employee internal satisfaction surveys C. Research on intermediate customers D. Executive listening approaches E. Executive visits to customers

When Tom and Ruth checked out of the Marriott Hilton Head Resort, they were each given a brief postage paid survey to complete and return through the mail. The survey asked 15 questions about their stay at the Marriott Resort. It covered such attributes as overall satisfaction, check-in speed/efficiency, cleanliness, decor and comfort of their room, friendliness and efficiency of the staff, quality of dining experience, quality of merchandise/gift shop, intention to return and willingness to recommend to friends. Which of the following types of research did Marriott conduct? A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Trailer calls E. Lost customer research

Which of the following is NOT a form of qualitative research? A. Complaint solicitation B. Critical incident studies C. Requirements research D. Trailer calls E. Customer panels

Which of the following statements about complaint solicitation is true? A. Customer complaints provide an adequate source of information about customers' perceptions and expectations of services B. The technique of soliciting customer complaints is only used for services C. Research on customer complaints is one of the most difficult research techniques to use D. Research on customer complaints allows companies to improve failure points and to improve or correct the performance of contact personnel E. No major companies would depend on customer complaints as its only source of information on its customers' perceptions and expectations of its services

_____ arise(s) when the customer is required to pay a penalty to switch providers. A. Fixed costs B. Legal inertia C. Financial inertia D. Contractual costs E. Opportunity costs

_____ importance measures are estimated using the statistical procedures of correlation and regression analysis, which show the relative contribution of questionnaire items to overall service quality. A. Direct B. Leading C. Primary D. Indirect E. Secondary

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

A week after Kim cancelled her First USA MasterCard, she received a survey in the mail asking questions about First USA's service quality, its performance versus other credit card companies, her level of satisfaction with different dimensions of First USA's service and her reasons for canceling her account. Which of the following types of research did First USA conduct? A. Complaint solicitation B. Critical incidents studies C. Relationship survey D. Trailer calls E. Lost customer research

According to the text, the lifetime value of a customer is not influenced by: A. The average revenues generated per relevant time period over the lifetime B. Sales of additional products and services over time C. Referrals generated by the customer over time D. The length of the average "lifetime" E. The communication strategy

Boston Symphony Orchestra realized the classic music market was generally becoming older and needed to learn how to appeal to younger concert-goers. It hired a research agency to identify the positive and negative attributes of going to concerts. One type of research conducted by the agency was to interview former symphony season ticket holders who were not longer attending the concerts. In other words, the agency used: A. Complaint solicitation B. Critical incidents studies C. Relationship survey D. Trailer calls E. Lost customer research

How would a day care center operator benefit from the implementation of relationship marketing with the parents of three preschool children? A. The children would benefit from socialization skills B. The parents wouldn't have to go looking for a new facility to keep their children C. The parents would ask for a reduced monthly rate D. The parents would get to socialize with the other parents of children at their center E. The parents would spread the word about their happiness with the services provided by the day care center

Key Energy was a company that provided quality oilfield construction, drilling and other services. The company's top management felt stakeholders did not have a clear image of the company and were considering changing the name to clarify the organization's position in the market. The company conducted an hour long interview with four of its largest customers. Only 25 questions were asked and much probing was done to find out exactly what the participants meant. This is an example of a: A. Research requirement survey B. Ethnographic survey C. Critical incident study D. Trailer call E. Service expectation meeting and review

Moonlight Catering has increased the deposit it requires before agreeing to cater an event to $300. This amount is nonrefundable and must be paid when Moonlight Catering is hired for the job. This increase in deposit will help Moonlight Catering achieve its goal of: A. Customer enhancement B. Prospecting C. Increasing its value-added service D. Customer satisfaction E. Customer retention

The key to success in the _____ stage of the customer relationship is the firm's ability to organize and use information about individual customers more effectively than its competitors. A. Friendship B. Ally C. Colleague D. Comrade E. Partnership

To be effective, complaint solicitations requires: A. The same complaint be mentioned at least ten times before any action is taken B. An individual complainer to have no more than one complaint C. The company to treat the complaint as a snapshot of its service D. Valid and reliable service questions E. Rigorous recording of numbers and types of complaints through many channels

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

WedSafe is the name of one of several companies that provide wedding insurance. For example, in the event that the wedding is called off, the couple can insure themselves against lose of their nonrefundable deposits. When its primary marketing effort is to satisfying its customers, it is in which stage of the customer relationship evolution? A. Prospects B. Leads C. Friends D. Associate E. Acquaintances

Which of the following is NOT a research objective for improving upward communication in a service organization? A. Gain first-hand knowledge about customers B. Improve internal service quality C. Gain first-hand knowledge of employees D. Obtain ideas for service improvement E. Gain first-hand knowledge about competitors

Which of the following types of research has a high monetary cost? A. Complaint solicitation B. Critical incident studies C. Mystery shopping D. Lost customer research E. Future expectations research

Which type of research is most reminiscent of an exit interview that would ask a question such as, "What exactly could we have done to keep you from leaving the company?" and "Is there anything we can do to keep you from resigning from your position"? A. Complaint solicitation B. Critical incidents studies C. Relationship survey D. Post transaction survey E. Lost customer research

_____ research is conducted to clarify problem definition and prepare for more formal empirical research. A. Functional B. Quantitative C. Primary D. Secondary E. Qualitative

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

A company that was involved in event planning noted how many couples had a wedding catastrophe of some kind. As a result, it abandoned event planning and began offering wedding insurance to protect couples from financial losses due to weather emergencies, stolen wedding rings, damaged wedding dresses, etc. In terms of the service blueprint, the couple that decided to buy insurance to protect themselves if the guests at their reception got food poisoning is part of which section of the service blueprint? A. Customer actions B. Onstage contact employee actions C. Backstage contact employee actions D. Support processes E. Audience actions

A consumer is more likely to complain when the: A. Flowers he ordered for his wife's birthday are not delivered B. Big Mac bought in a drive-through comes with pickles even though the special order said no pickles C. Icing on the bakery cake is dark chocolate instead of milk chocolate as ordered D. Mechanic fills the radiator with antifreeze instead of water E. Repair person is 30-minutes late

A consumer who is more likely to engage in negative word-of-mouth than any other type of consumer is called a(n): A. Irate B. Annoyance C. Aggressive D. Activist E. Voicer

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

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

A human resources manager who is hiring a sales trainer to improve the company's sales close rate will be concerned whether the trainer will provide the needed tools and motivation to perform his or her job. The human resources manager wants the company's top management and its sales force managers to approve of his selection of trainer. This is an example of a(n) _____ expectation. A. Derived serviceB. Other-selfC. ProcuredD. Service-visionE. Shared

A service blueprint depicts: A. The process of service delivery B. All stakeholders that will be affected by the service process C. The intangible elements of the service D. The relation of the service to the services marketing mix E. How the service dimensions will interact before, during and after the service process

A service encounter that occurs without any direct human contact is a(n) _____ encounter. A. RemoteB. PhoneC. DetachedD. PublicE. Impersonal

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

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

A(n) _____ expectation occurs when customer expectations are driven by another person or group of people. A. Derived serviceB. Other-selfC. DyadicD. Service-visionE. Shared

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

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

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

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

After a service firm maps the service process from the customer's point of view, the next step in building a service blueprint is to: A. Draw the lines of interaction and visibility B. Link customer and contact person activity to needed support function C. Map the service process from the customer contact person's point of view D. Identify the physical evidence needed to support service quality E. Add evidence of service at each customer step

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

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

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

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

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

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

An advertisement for the Four Seasons Hotel featured Marlene Wei, a housekeeper at the Four Seasons Hotel in Chicago. Copy for the advertisement noted that "Marlene is the soul of concern. She cannot sleep well at night unless she is certain you will. Her mission is to enhance your personal comfort and, in turn your professional efficiency the following day". By featuring Marlene Wei in an advertisement, the Four Seasons Hotel is: A. Managing its service promises B. Resetting customer expectations C. Improving customer education D. Managing horizontal communications E. Educating the customer

As the date of her baby's birth comes nearer, Devon becomes increasingly more concerned about how the delivery room staff will treat her significant other. As the service dimension of responsiveness becomes more important over time, Devon's: A. Zone of tolerance will narrow and her desired and adequate service levels will increaseB. Zone of tolerance will widen and her desired and adequate service levels will increaseC. Zone of tolerance will narrow and her desired and adequate service levels will decreaseD. Zone of tolerance will widen and her desired and adequate service levels will decreaseE. Zone of tolerance will remain the same

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

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

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

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

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

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

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

Companies that emphasize acquiring new customers rather than retaining current customers are using _____ marketing. A. TransactionalB. DevelopmentalC. ProactiveD. RelationshipE. Acquisition

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

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

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

Customers feel more responsible for their dissatisfaction when they purchase services than when they purchase goods since: A. Customers participate more in the service processB. Services are typically more expensive than goodsC. Customers are more knowledgeable about servicesD. Services are more complex than goodsE. Customers seek more information before purchasing a service

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

Enterprise Rent-A-Car closely ties customer service to employee success. With a tracking system called the Enterprise Service Quality Index (ESQi), the company routinely follows up with customers by phone to determine their level of satisfaction with the company. Only completely satisfied customers count toward an employee ESQi score, which is used to measure employee's potential for promotion. Enterprise closes provider _____ by using marketing research. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

First National Bank of Chicago decreased customer waiting time by hiring "peak-time" tellers at a premium wage to work during high demand periods and by setting up express lines for customers who only need to make a deposit or cash a check. By decreasing customer waiting time, First National Bank of Chicago is: A. Reducing customer dissatisfaction by reducing the need for customer compatibilityB. Decreasing customer self-attribution of dissatisfactionC. Increasing the size of its customers' evoked setsD. Universalizing its service scriptE. Eliminating the problems associated with service heterogeneity

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

For the last three months, Gina has been on a diet, but once a week she splurges and orders at her favorite restaurant one slice of the most fantastic chocolate pie she has ever eaten. It is her reward for eating healthy all week. Gina felt her whole week was ruined one day when she got to the restaurant and discovered there was no pie. Gina's expectation that the restaurant will always have a piece of chocolate pie for her is an example of a: A. Personal needB. Lasting service intensifierC. Transitory service intensifierD. Customer self-perceived service roleE. Situational factor

Frequent travelers on airlines know one of the costs of traveling is damaged baggage, but they also know that each airline will either repair or replace any luggage damaged by its baggage handlers. The ability to count on this service in the event a handle is torn off or the side of a bag is gashed helps the airlines narrow provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

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

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

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

Hildy's children are giving her a weekend trip to a Lake Tahoe resort. The expectations of the customer services the resort will provide are much higher because they are planning the trip for their mother's approval rather than for their own use. This is an example of a(n) _____ expectation. A. Derived serviceB. Other-selfC. DyadicD. Service-visionE. Shared

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

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

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

Imagine a bereaved family at a funeral home discovering a disco ball in the chapel, dirty restrooms and rap music on the sound system. You would be correct in saying: A. The physical environment quality led the family to belittle the overall service qualityB. The technical outcome quality of the facility needed fine tuningC. The inappropriateness of the service quality was due to poor technical qualitiesD. Interaction qualities led to perceived inequitiesE. The overall service quality is not influenced by tangibles

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

In Mexico for about $13.50, you can participate in a migrant obstacle course that gives tourist a taste of the sometimes deadly crossings that illegal migrants make daily. Employees of the park do their best to catch the mock migrants. When they are caught, they hands are bound behind their back and they are loaded into trucks. The capture of the mock migrants is an example of a(n) _____ encounter. A. Face-to-faceB. PublicC. PersonalD. SymbioticE. Customer-controlled

In order to have a greater likelihood for ultimate success, who should be involved in the new service development process? A. Contact employees and customers B. Suppliers, distributors and all employees C. All members of the internal and external environment except customers D. All internal and external people that will have any responsibility in its development, including focus group members E. Only internal members of the organization to prevent problems with competitive intelligence

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

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

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

Kelso Massage Therapy promises its clients that there wait for a massage will be less than fifteen minutes or the massage is free. Which service recovery strategy does Kelso Massage Therapy use? A. Offering a guarantee B. Acting quickly C. Doing it right the first time D. Implementing the service paradox E. Acting proactively instead of reactively

L. L. Bean, the catalog retailer, promises its customers, "100 percent satisfaction in every way, forever". Which service recovery strategy does L. L. Bean use? A. Make the service fail safe B. Learn from lost customers C. Treat customers reactively D. Implement the service paradox E. Use procedural fairness

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

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

Last Thursday Dylan and Tori had dinner at Pig Pete's, a new restaurant they had a heard about from friends. When they received their order of buffalo wings, Dylan noticed the wings were cold and dried out instead of being hot and moist. Dylan complained to their waitress, who apologized, brought out a plate of freshly cooked buffalo wings and told Dylan and Tori that they would not be charged for the buffalo wings. The couple's experience at Pig Pete's is an example of which type of service encounter incident? A. RecoveryB. AdaptabilityC. SpontaneityD. CredibilityE. Coping

Last week, Ramona bought a 6-month membership package at Bally's Jack LaLanne Fitness Center. She plans to exercise at Bally's four days a week by participating in an aerobics class, using the nautilus equipment and having a personal trainer. By the time her 6-month membership expires, Ramona hopes to lose 20 pounds, tone and strengthen her muscles, improve her cardiovascular fitness and look and feel more attractive. Ramona's expectations for her health and physical appearance reflect her _____ level of service for Bally's Jack LaLanne Fitness Center. A. DesiredB. AdequateC. TransactionalD. PredictedE. Ideal

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

Membership in a class that teaches self-defense would more than likely satisfy a(n) _____ and membership in an exclusive country club where annual dues are $2,000 and where there is a selection committee would satisfy a(n) _____ need. A. Safety and security; egoB. Social; self-actualizationC. Ego; egoD. Social; physiologicalE. Self-actualization; psychological

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

Molly's desires a haircut that will look just as attractive when she awakens in the morning as it does when she is going out on a date. With the desired haircut, all she has to do to fix her hair is to shake her head. A haircut is adequate when it doesn't have any stray long hairs and it hides her cowlick. Her recent haircut was in her zone of _____ because while it didn't look great all the time, a quick brushing was all that was needed to fix it. A. ToleranceB. AcceptabilityC. ImpartialityD. EnduranceE. Minimal variation

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

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

Oakley Millwork is a supplier of products used in the construction industry. It has a published policy that if a customer places an order from its catalog and the product is not available for immediate delivery, the customer gets the item free. In this example, a(n) _____ creates service expectation levels. A. Explicit service promiseB. Word-of-mouth communicationC. Situational factorD. Implicit service promiseE. Service predicator

On a recent visit to The Home Depot store, a sales associate greeted Gigi when she entered the store, helped her locate the items she needed to repair her gutters and suggested how she could prevent gutter problems in the future. The assistance provided by the sales associate illustrates the ______ of services. A. IntangibilityB. ComparabilityC. DivisibilityD. PerishabilityE. Compatibility

One factor that influences adequate service is _____, the level of service that customers believe they are likely to get. A. Predicted serviceB. Forecasted intensityC. Evoked serviceD. Ego-oriented serviceE. The service paradigm

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

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

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

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

Provider _____ is the difference between customer expectations of service and company understanding of those expectations. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

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

Sam Goody, a tape, compact disc and video store, has a frequent buyer program called Replay that rewards members a $15 gift certificate for every $150 in purchases made at Sam Goody. In addition, Replay members receive a coupon each month for a 20-25 percent discount on the purchase of an unlimited number of CDs and/or cassettes from a specific music category. By having a frequent buyer program, Sam Goody is closing provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

Service companies can close provider gap 4 by: A. Improving communications between sales and operations departmentsB. Using a systematic new-service development processC. Eliminating employee role ambiguity and role conflictD. Creating customer-defined standardsE. Making sure customers understand their roles and responsibilities

Service providers like insurance companies that emphasize acquiring new customers rather than retaining current customers are broadening provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

Service providers sometimes need to tell customers that services have been performed for them. To get credit for their actions, service providers need to reinforce their actions with appropriate communication about their accomplishment of the service. Services for which customers must be told that the service has been performed have which of the following characteristics? A. The service is invisible B. No part of the service offering is outsourced C. The customer can easily evaluate the effectiveness of the service D. The user of the service and the decision maker for the service are the same individual E. The service is visible

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

Simone called the Puppy Heaven Kennel to reserve a kennel for her German shepherd while she went on vacation. In terms of the service blueprint, Simone's telephone call is an example of a(n): A. Customer action B. Onstage contact employee action C. Backstage contact employee action D. Support process E. Audience action

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

Southwest Airlines has consistently had one of the best on-time performance records in the airline industry. A critical factor in Southwest's success has been its use of second tier airports such as Midway in Chicago, Hobby in Houston, City in Detroit and Ontario in Los Angeles. These lower traffic airports allow South-west to have a faster turnaround for its airplanes so they spend a greater percentage of their time in the air. Seventy percent of Southwest's flights have a turnaround time of 15 minutes. Southwest Airline's on-time performance reflects the _____ dimension of service quality. A. ReliabilityB. ResponsivenessC. AssuranceD. EmpathyE. Tangibles

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

Telepizza S.A. Is a Spanish pizza restaurant chain that offers children membership in its magic club. The magic club gives its members small prizes, usually simple magic tricks, with each order their parents place. Telpizza's use of a frequency marketing program has allowed it to narrow provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

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

The 25th Hour Inc. is a business that runs errands for people. Its employees have been called in to care for a toddler when her mother went into labor, to buying groceries for a mother who wanted to attend her child' soccer game and to decorate for parties. If any customer is not completely happy with the service The 25th Hour provides, its employees are told to immediately refund the customer's money (less any expenses) as soon as the complaint is made known. This sort of service recovery policy helps to narrow provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

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

The Ritz-Carlton Hotel trains each employee to note the likes and dislikes of regular customers and record this information into a computerized guest history profile that provides information on the preferences of 240,000 repeat Ritz-Carlton customers. Through the use of this customer database, the Ritz-Carlton is able to provide more personalized service to its guests. If, for example, a guest prefers a feather pillow or always orders a glass of sherry before retiring, this information can be entered in the database and these needs can be anticipated and met. By providing more personalized service, the Ritz-Carlton is narrowing provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

The ability to connect to the Internet through a modem using the same wires that transmit cable television was an example of a _____ when it was first introduced. A. Major innovation B. New service for the currently served market C. Service line extension D. Service improvement E. Style change

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

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

The characteristic of a service that means that it cannot be seen, felt, tasted or touched is: A. IntangibilityB. HeterogeneityC. DivisibilityD. PerishabilityE. Compatibility

The growth of e-tailing has led to the identification of four core dimensions that consumers use to evaluate Web sites. They are: A. Efficiency, fulfillment, reliability and privacyB. Responsiveness, reliability, assurance and empathyC. Context, content, community and connectivityD. Content, reliability, privacy and download speedE. Efficiency, effectiveness, maneuverability and attractiveness

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

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

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

Using the drama metaphor, service actors need three characteristics to create the impression on customers. These three characteristics are: A. Loyalty, discipline and circumspectionB. Talent, creativity and ingenuityC. Autonomy, self-interest and empathyD. Relevance, flexibility and responsibilityE. Empathy, creativity and autonomy

Using the drama metaphor, which of the following is considered an actor in the provision of service at a four-star restaurant? A. The pre-schooler who is misbehaving at the table behind youB. The plants that discreetly hide the staff work areaC. The soft music being played on the sound systemD. The leather covered menus with exotic food offeringsE. All of the above

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

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

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

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

When Heather goes to the local gym, she has a personal trainer who helps make sure she is using the equipment correctly. The personal trainer is an example of a(n): A. ServiceB. ExperienceC. AttributeD. GoodE. Benefit

When Maria woke up this morning, she felt terrible. She had a headache, sore throat and upset stomach. She called her doctor's office, explained her condition to the receptionist and asked if she could make an appointment to see the doctor as soon as possible that day since she was going on vacation tomorrow. Maria's expectation to see her doctor the same day she became sick resulted from a: A. Personal needB. Lasting service intensifierC. Transitory service intensifierD. Customer self-perceived service roleE. Situational factor

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

When Shealah hired the housecleaning service, she asked them to use her hypoallergenic cleaning supplies. Instead the workers used their own and Shealah had to lose a day from work because of her allergic reaction to the smell of the cleaners. When Shealah looked at the service guarantee that the workers had left, she found that she could get a reimbursement for all of her out-of-pocket expenses if she had a notarized letter from her doctor describing her condition and her reaction, an affidavit from the workers that they had used the wrong cleaners and another notarized statement that she would not have become ill if the workers had used the right cleaners. This service guarantee is ineffective because it is NOT: A. Easy to invoke and collect B. Customer-focused C. Condition-specific D. Challenging but realistic E. Standardized by situation

When a guest staying at the Marriott Marquis in New York calls room service to order dinner, which of the following is an example of a backstage contact employee action? A. Marriott food service order clerk takes guest's order B. Guest receives meal from Marriott food delivery person C. Guest calls room service D. Marriott chef prepares meal E. Marriott food delivery person delivers meal to guest

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

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

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

Which of the following factors leads to provider gap 2? A. Inappropriate physical evidence and servicescapeB. Inadequate marketing researchC. Lack of integrated services marketing communicationsD. Failure to match supply and demandE. Inadequate horizontal communications

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

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

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

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

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

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

Which of the following is NOT a source of desired service and predicted service? A. Situational factorsB. Explicit service promisesC. Implicit service promisesD. Word-of-mouth communicationsE. Past experiences

Which of the following is NOT an element of the traditional marketing mix? A. ProductionB. PlaceC. ProductD. PriceE. Promotion

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

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

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

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

Which of the following products is NOT high in credence qualities? A. Wooden rocking horseB. Car muffler repairC. MammogramD. Tax advice from a CPAE. Termite treatment for a house's subflooring

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

Which of the following statements about the American Customer Satisfaction Index (ACSI) is true? A. The ACSI demonstrates to service providers that there is much room for improvement in customer satisfactionB. The ACSI was developed by the federal government as a way to include customer satisfaction measurements in census dataC. In spite of the name, the ACSI also measures customer satisfaction levels for countries with which the U.S. has a greater than average level of tradeD. The only country that is currently studying customer satisfaction and creating an index is the United StatesE. The ACSI tracks customer perceptions of the level of satisfaction provided by sole proprietorships as well as by large corporations

Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining? A. Increasing use of technology is perceived by many customers as less service because there is no human interactionB. Companies provide unclear tactics for customers to follow when dealing with service providersC. Delivering consistent, high-quality service becomes routineD. Customers have no concept of what conditions produce to quality serviceE. Too many talented employees are left mired in front-end jobs that do not challenge them

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

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

With which service recovery strategy is total quality management (TQM) most closely associated? A. Make the service fail safe B. Learn from lost customers C. Treat customers fairly D. Encourage and track complaints E. Act quickly

_____ consists of short-term, individual factors that make a consumer more aware of the need for service. A. Temporary service intensifiersB. Perceived service alternativesC. Customer self-perceived service rolesD. Situational factorsE. Experiential intensifiers

_____ describes what the owner of the rehabilitation center did when he gave a customer who was complaining that his therapist was an hour late for their appointment a credit for one free hour of therapy. A. Service recovery B. Service paradox C. Service inconsistency D. Outcome fairness E. Procedural recovery

_____ has consistently proven to be the most important determinant of service quality. A. ReliabilityB. ResponsivenessC. AssuranceD. EmpathyE. Tangibility

_____ is very useful in helping companies choose the right new service innovations in the first place. A. Portfolio management for new products B. Benchmarking C. Service blueprinting D. A QFD audit E. A PERT chart

_____ qualities are attributes a consumer can determine prior to purchasing a product. A. SearchB. ConsequentialC. ExperienceD. EvidentialE. Credence

_____ service is the level of service the customer hopes to receive. A. DesiredB. AdequateC. FunctionalD. PredictableE. Augmented

_______ refers to the actions taken by an organization in response to a service failure. A. Service recovery B. Service paradox C. Service inconsistency D. Outcome fairness E. Procedural recovery

A consumer is more likely to complain when: A. The individual's involvement with the product being purchased is low B. The level of ego involvement in the purchase is high C. He or she is the only one who experienced service failure D. The purchase is one that is made routinely E. Service failure costs less than $5.00

A chiropractor published a newspaper insert ad that contains almost 1,000 words and described in detail how he has helped patients who have been diagnosed with rheumatoid arthritis and other debilitating diseases to the point where they no longer have to rely on medication and no longer need to have any assistance when walking. The use of this narrative is one way the chiropractor as a service provider can: A. Avoid having to educate customers B. Manage its service promises C. Encourage horizontal communications D. Avoid over-promising and under-delivering E. Manage its internal marketing communications

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

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

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

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

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

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

A person who is a(n) _____ is a type of complainer who is unlikely to say anything to the service provider. This type of complainer often doubts the effectiveness of complaining because of a belief that the consequences will not merit the time and effort they will expend complaining. A. Irate B. Passive C. Aggressive D. Activist E. Voicer

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

A pseudo-relationship occurs when A. The service encounter is static B. The customer interacts many times with the same company, but with different service providers C. The company interacts with different members of a household D. Frequency of service is greater than service reach E. The service provider has accepted the validity of the service paradox

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

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

Adam was working late in his hotel room when the light bulb in the lamp at his desk burned out. He called the front desk and asked for a replacement bulb. The desk manager told Adam that a new one would be provided tomorrow morning and that he did not have the key to the stockroom. Adam tried to explain how much he needed the light to finish his sales report, but the manager was polite but adamant that he could not help. This is an example of: A. Functional unfairness B. Procedural unfairness C. Interactional unfairness D. Service inequity E. Situational unfairness

After his home was burglarized, Rich became concerned about the safety of his wife and three children since he often traveled out-of-town on business. To prevent further burglaries and ensure his families safety, Rich decided to purchase a home security system from ADT Security Systems. Rich's expectation that an ADT home security system will prevent further burglaries and protect his family results from a: A. Social needB. Lasting service intensifierC. Stationary service intensifierD. Customer self-perceived service roleE. Situational factor

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

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

An advertisement for the Four Seasons Hotel featured Marlene Wei, a housekeeper at the Four Seasons Hotel in Chicago. Copy for the advertisement noted that "Marlene is the soul of concern. She cannot sleep well at night unless she is certain you will. Her mission is to enhance your personal comfort and, in turn your professional efficiency the following day". Which strategy for tangibilization is the Four Seasons Hotel using in this ad? A. Association B. Physical representation C. Intimidation D. Documentation E. Visualization

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

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

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

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

Before going on vacation to Universal Studios with her son and daughter, Daphne called American Airlines, Continental Airlines, Delta Air Lines and USAir to compare flight schedules and round-trip airfares from Newark, New Jersey to Orlando, Florida. American Airlines, Continental Airlines, Delta Air Lines and USAir comprise Daphne's _____ set. A. AwarenessB. EvokedC. PerceivedD. MotivationalE. Knowledge

Betty had a group of checks that she needed to deposit and another that she needed to cash for a trip she was leaving on the next day. When she got to her bank on Saturday, she was very disappointed to see it was closed. There was one car in the parking lot and a man was walking toward it. She pulled into a place to decide what to do. The man she had seen walked up to her car and asked if he could help. When she explained her problem, the man introduced himself as the bank's vice president and offered to cash her checks with the money he had in his wallet. Betty has since learned that this kind of service is commonplace at her bank. She knows the bank focuses on the _____ dimension of service quality. A. ReliabilityB. ResponsivenessC. AssuranceD. EmpathyE. Tangibles

By noting that a number of customers had complained about late bus arrivals at one particular stop, the bus line rerouted the bus away from a heavy traffic area. By increasing its miles traveled slightly, the bus was able to improve its arrival time substantially at the stop where it had formerly been perpetually late. Which service recovery strategy did the bus line use? A. Make the service fail safe B. Learn from recovery experiences C. Treat customers fairly D. Encourage and track complaints E. Act quickly

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

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

Consumers are most likely to seek and rely on information from _____ when purchasing a landscaping service for their yard. A. Newspaper columns on gardeningB. Friends who have attractive yardsC. Advertising by landscape design artistsD. Magazines devoted to gardeningE. A landscape designer's sign they remembered seeing in a well-landscaped yard

Consumers have a _____ zone of tolerance and _____ expectations for recovery service than first-time service. A. Narrower; lowerB. Narrower; higherC. Wider; lowerD. Wider; lowerE. Same; same

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

Customer _____ are the standards for performance against which service experiences are compared. A. PerceptionsB. ExpectationsC. AttitudesD. JudgmentsE. Wants

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

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

During the commercialization stage, the service goes live and is introduced to the marketplace. This stage has two primary objectives. One is to build and maintain acceptance of the new service among large numbers of service delivery personnel who will be responsible for day to day service quality. The other is to: A. Evaluate tangibles for the service that are designed to reduce problems associated with service heterogeneity B. Monitor all aspects of the service during introduction and through the complete service cycle C. Provide adequate resources to prevent service failures D. Develop a positioning strategy around which the service provider can build a sustainable competitive advantage E. Analyze the market and begin the next new service development process

During which stage of the new-service development process are demand analysis, revenue projections, cost analyses and operational feasibility assessed? A. Commercialization B. Business analysis C. Market testing D. Service development and evaluation E. Post introduction evaluation

Everyone has a fast-food restaurant horror story, but McDonald's with the help of technology is working to greatly reduce bad experiences at its restaurants. Some McDonald's restaurants have installed simulation software that tells employees when they are about to get busy and how much food to put on the grill. While _____ lead to dissatisfying transactions, it is hoped that _____ in the form of new technology will lead to satisfying transactions. A. Word-of-mouth communication; explicit service promisesB. Past experiences; situational factorsC. Implicit service promises; past experiencesD. Explicit service promises; situational factorsE. Past experiences; self-perceived service role

FedEx developed a 12-item statistical Service Quality Indicator to measure customer satisfaction and service quality. The index is comprised of customer-defined performance standards such as number of missed pick-ups, number of lost packages and number of late deliveries. Each of the performance standards is weighted based on the relative importance of each standard to customers. By developing a Service Quality Indicator that incorporates customer-defined performance standards, FedEx is closing provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

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

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

For many people today, stress is a way of life. One way some are dealing with the stress is by going to mediation centers such as the Itawamba Mediation Center. These centers offer a place for silent prayer and meditation with a focus on spirituality. The Itawamba Mediation Center promises in its ads that you will feel stress-free when you leave its facility after a week's stay or else it will refund its $200 a day room fee. The mediation center's guarantee: A. Increases customer compatibilityB. Decreases its customers' perceived riskC. Increases the size of its customers' evoked setsD. Decreases the need for personal sources of informationE. Decreases service complexity

Historically, the Japanese have had poor dental care. As part of their beauty regimen, the Japanese do have a habit of lightening and whitening their skin. Teethart has developed "tooth manicure" salons, which allow Japanese to match their teeth coloration to their skin. Each treatment takes place in a private booth, which contains an ergonomically-designed chair, muted lights and New Age-style music. The walls are painted calming shade of blues and greens. By using physical evidence to reduce anxiety, Teethart is narrowing provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

Home Design is a reasonably priced source for home decorating items like bronze bookends and silver candlesticks. Until its recent remodeling, customers who happened into the store were often disappointed because they expected the store to be a discount store. The front of the store had some masonry damage. Its parking lot needed repaving. Its store windows were stained and one was cracked. Now customers who enter the store expect to find unique decorating items because the outside of the store is so tastefully done. This change in servicescape was a way to narrow provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

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

In order to have a greater likelihood of ultimate success, a new service development system should be: A. Subjective B. Precise C. Autonomous D. Opinion-driven E. Philosophical

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

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

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

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

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

Johanna wants to learn self-defense and has signed up for a class at her local YMCA. She chose this particular class because her sister took it last year and has not felt like a victim since then. While Johanna has never had a need to defend herself, everyone tells her it is a good idea to learn how. Johanna's service expectation for the class was shaped by: A. A social needs philosophyB. Word-of-mouth communicationC. Explicit service promisesD. Transitory need intensifiersE. Her ego-oriented definition of service

Kate recently learned to play golf. Last week, she decided to try a new golf course. She signed in to play and was given the keys to an electric golf cart without any instructions on how to operate it. After she drove the cart into a lake, she swore never to play golf again. According to Kate, "There was just too many things you had to know before you could become a real golfer". Two months later, the golf course manager called Kate and asked why she had not returned to play another game. Which service recovery strategy is being used in this example? A. Make the service fail safe B. Learn from lost customers C. Treat customers proactively D. Use procedural fairness

Lillie worked as a caterer when she was in college. She was highly critical of the caterer and its staff that her parents selected for their 50thanniversary party. Lillie's attitude about how a caterer should act reflects her: A. Augmented service expectationB. Personal service philosophyC. Derived service expectationD. Cultural service expectationE. Temporary service intensifier

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

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

Many frequent flyers have missed their flights due to long, slow security checks before being allowed to enter the airline's terminal. This policy designed to ensure safe flights has resulted in problems associated with perceived: A. Functional equity B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

Many successful people would like to find someone to share their lives with, but are unable to make the connection. To satisfy this _____ need, some travel agencies are setting up two-week vacation cruises and tour groups for singles in their 20s and 30s. These trips throw together people who have basically the same likes and dislikes in unfamiliar surroundings to try to stimulate relationships. A. EgoB. SocialC. PhysiologicalD. Self-actualizationE. Safety and security

Most U.S. businesses consider punctuality at meetings to be a sign of respect and are often frustrated by Latin Americans who consider time relatively less important. This example illustrates how the cultural universal of ____ differs in the U.S. and Latin America. A. AestheticsB. Manners and customsC. Material cultureD. Values and attitudesE. Language (verbal and nonverbal)

New-service success depends on: A. The linear nature of the new service development process B. The integration of the service within existing processes C. How few people were actually involved in the development process and how tight their security system was D. The novelty of the service E. The number of people involved

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

On his way home from school, Daoud stopped at Wendy's and placed his order for a grilled chicken combo using the drive-through microphone. Which type of service encounter did Daoud have with Wendy's when he ordered his meal? A. RemoteB. PhoneC. DetachedD. PublicE. Collective

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

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

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

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

Products high in _____ qualities are the easiest to evaluate. A. SourceB. SearchC. ExperienceD. PerceptualE. Credence

Provider ______ is the difference between company understanding of customer expectations and development of customer-driven service designs and standards. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

Raul lives in London, England. To plan for his upcoming vacation to Greece, he will either use Mainstream travel agency, First Choice travel operations or plan it by himself. These three make up Raul's _____ set. A. AwarenessB. EvokedC. RecallD. PerceivedE. Knowledge

Roger Pack is a breeder of Pomeranian dogs. He has used the same grooming salon for his dogs for the last 10 years. When a new groomer accidentally trimmed too much off of one of his show dog's hind quarters, he was upset. He decided not to make a big deal of the event because of his long-term dealings with the salon owner. Which service recovery strategy is being used in this example? A. Make the service fail safe B. Cultivate relationships with customers C. Treat customers proactively D. Use procedural fairness E. Learn from lost customers

Service companies can close provider gap 4 by doing all of the following EXCEPT: A. Avoiding over-promising in advertisingB. Conducting market researchC. Improving coordination between the operations and marketing departmentsD. Viewing all of its external communications as interdependentE. Including interactive marketing in communications plans

Service providers sometimes need to tell customers that services have been performed for them. To get credit for their actions, service providers need to reinforce their actions with appropriate communication about their accomplishment of the service. Which of the following services would need to educate its customers by telling them about the services provided in user friendly terms? A. Pet grooming B. A fluoride treatment given to a child C. A full-body massage D. Car insurance E. Gas station

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

The CEO of Southwest Airlines is a model service leader, who is committed to providing high service quality. He actively engages in defining and implementing Southwest's service vision by motivating employees, serving as a role model, selecting and training service personnel and building teamwork in the organization. His service leadership closes Provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

The Cirque du Soleil fused elements of theater with traditional circus skills to create a whole new form of entertainment. Cirque du is an example of a: A. Major innovation B. New service for the currently served market C. Service line extension D. Service improvement E. Style change

The _____ dimension of service quality refers to the willingness to help customers and provide prompt service. A. ReliabilityB. ResponsivenessC. AssuranceD. EmpathyE. Tangibles

The _____ is the customer's underlying generic attitude about the meaning of service and the proper conduct of service providers. A. Augmented service expectationB. Personal service philosophyC. Derived service expectationD. Cultural service expectationE. Temporary service intensifier

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

The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is a passive type when it comes to complaining would react to this by: A. Firing the original carpenter and hiring another one B. Taking no action whatsoever C. Complaining to the Better Business Bureau about the terrible service D. Threatening to sue the carpenter if he didn't return immediately E. Complaining daily to the carpenter's answering machine

The characteristic of a service that refers to differences in employees' performances is: A. IntangibilityB. HeterogeneityC. DivisibilityD. PerishabilityE. Simultaneous production and consumption

The counterpart of the service _____ is the manufacturer of physical goods. A. Collaborator B. Principal C. Collaborator D. Creator E. Originator

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

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

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

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

The group of service providers a consumer considers to be acceptable options in a given service category is called the _____ set. A. AwarenessB. EvokedC. RecallD. PerceivedE. Knowledge

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

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

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

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

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

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

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

The weekend cruise cost Hal Roux $800 dollars. Before leaving on the cruise, Roux told his neighbor, "With the money this trip is costing me, the food better be good and plentiful". What kind of expectations did Roux have? A. TolerableB. NormativeC. ConventionalD. FunctionalE. Ego-based

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

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

To better target its business travelers, Canadian Airline has set up gate-side business centers for last-minute faxes and phone calls and massage chairs to knead out knotted muscles after a long commute. These gate-side business centers are an example of a: A. Major innovation B. New service for the currently served market C. Service line extension D. Service improvement E. Style change

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

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

Two roommates both registered for an introduction to business class. At midterm, one roommate found his instructor so boring that he was thinking of changing his major to history. The other roommate had a charismatic teacher and looked forward to going to class. This heterogeneity of instruction demonstrates: A. How difficult it is to synchronize supply and demand with serviceB. That customer service depends on employee actionsC. How customers affect each otherD. The fact services cannot be readily communicated or displayedE. Why services cannot be inventoried

Using the drama metaphor, which of the following is considered an element of the physical setting at a hair salon? A. The specialized training of the employeesB. How equipment is stored and maintainedC. How a customer is greeted when he or she walks in the front doorD. Whether a customer can expect the same treatment each visitE. None of the above

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

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

What are poka-yokes? A. Customers who have a propensity to complain B. Automatic warnings or controls to ensure mistakes don't happen C. Service failures D. Common sources of complaints E. Methods for tracking complaints

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

When Jessie wanted to talk to a therapist to learn how she could improve her relationship with her mother, she went to www.here2listen.com, an online counseling service that charges $1 per minute of counseling. The therapist she communicated with online is an example of a(n) _____ in the service blueprints for the web site. A. Customer action B. Onstage contact employee action C. Backstage contact employee action D. Support process E. Audience action

When Randy Ross arrived at the airport Enterprise Rent-A-Car to pick up a reserved SUV, he was told the agency had no such car on the lot and that it had no record of him making a reservation. The rental agency's customer service representative Gene Lowery apologized profusely and called other agencies until he located an SUV at an agency several miles away. Lowery personally drove him to the other agency, knocked 20 percent off the rental fee, handed Ross $2 to pay a toll that he would now have to pay to get to his destination and gave him a free tank of gas. Ross's experience at Enterprise is an example of which type of service encounter incident? A. RecoveryB. AdaptabilityC. SpontaneityD. FunctionalityE. Coping

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

When consumers have problems with a Web site, they use _____ dimensions to evaluate e-service quality. A. Tangibility, efficiency and fulfillmentB. Responsiveness, compensation and contactC. Empathy, efficiency and expectationsD. Reliability, privacy and assuranceE. Efficiency, fulfillment, reliability and privacy

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

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

When its sales were declining, Canadian Airline conducted a marketing survey to understand the expectations of the business traveler, its target market. It learned business travelers resent they are bosses in their own offices but are totally controlled by the airlines when they travel. Canadian Airline instituted gate-side business centers, shower facilities and massage chairs as well as continuous "power to the seat" for those who want to work on their laptops. By listening to its business travelers and providing the services they want, Canadian Airline's sales started increasing. What service recovery strategy did Canadian Airline use? A. Make the service fail safe B. Learn from recovery experience C. Treat customers reactively D. Encourage and track complaints E. Act quickly

When the character playing Alice in Wonderland signed autographs and had her picture taken with guests at Disneyworld, it was an example of a(n): A. Customer action B. Onstage contact employee action C. Backstage contact employee action D. Support process E. Audience action

When the dentist's office bills the patient who had an appointment but did not show up for it and did not cancel the appointed, it is an example of _____ because the patient was made aware of the policy before making the appointment. A. Functional fairness B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

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

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

Which of the following factors is NOT a factor leading to provider gap 1? A. Inadequate marketing research orientationB. Over-promisingC. Lack of upward communicationD. Insufficient relationship focusE. Inadequate service recovery

Which of the following industries would be ranked highest by the American Customer Satisfaction Index (ACSI)? A. Online retailersB. Snack foodC. RestaurantD. Internet auctionsE. Insurance

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

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

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

Which of the following is NOT an example of an experience quality? A. ReliabilityB. ColorC. TasteD. Purchase satisfactionE. Comfort

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

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

Which of the following is an example of a tangible component provided by a hotel? A. Wake-up callB. Guest roomsC. Room serviceD. Express check-outE. Guaranteed reservations

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

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

Which of the following statements about predicted service is true? A. If the consumer predicts good service, the level of adequate service is likely to be lower than if he or she predicted poor serviceB. Predicted service estimates the level of service for one transactionC. With no more than three inputs, a consumer can determine the future predicted service of nearly all types of service providers on all occasionsD. Predicted service is unaffected by situational factors or personal needsE. Predicted service is calculated by the service provider not the customer

Which of the following statements about service encounters is true? A. When a customer has multiple service encounters with a firm, the only important encounter in terms of the customer's perception is the first oneB. If a customer is interacting with a firm for the first time, that initial encounter will create a first impression of the organizationC. All encounters are equally important in building customer relationshipsD. A customer will remember only negative service encounters and will forget any and all positive onesE. All services have on average about the same number of service encounters

Which of the following statements about service failure and service recovery is true? A. Those customers who never complain are as likely to repurchase as those who had a satisfying service experience B. Resolving customer problems effectively has a strong impact on customer satisfaction and loyalty C. All firms employ effective recovery strategies D. Effective service recovery should not be expected to improve overall service performance E. All of the above statements about service failure and recovery are true

Which of the following statements about the benefits of service guarantees is true? A. To be valid, service guarantees must be in writing B. A good guarantee forces the company to focus on its customers C. Employee morale can be adversely affected by service guarantees D. The guarantee negates the service recovery strategy of act quickly E. A good guarantee will generate a lot of feedback-most, if not all of it, useless

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

_____ are individual, stable factors that lead consumers to a heightened sensitivity to service. A. Personal needsB. Lasting service intensifiersC. Stationery service intensifiersD. Customers self-perceived rolesE. Situational factors

_____ are those steps and activities that contact employees, like desk clerks and receptionists, perform that are visible to customers. A. Customer actions B. Onstage contact employee actions C. Backstage contact employee actions D. Support processes E. Audience actions

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

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

_____ quality refers to how a service is delivered to the customer. A. OutputB. InteractionC. ExperientialD. Technical outcomeE. Interactive

A business traveler checked into a Hyatt hotel and was given a room next to the elevator. When he turned on the television, he was greeted with a Hyatt customer service survey. He immediately took advantage of having the survey to let Hyatt know how unhappy he was with his room location. The business traveler would most likely be classed as a(n) _____ type. A. Irate B. Passive C. Voicer D. Aggressive E. Mediator

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

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

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

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

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

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

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

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

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

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

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

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

As the flight attendant listened to the business traveler complain about having to sit in the plane and wait for two hours before the plane took off, the attendant sorted through some magazines, got a blanket for another passenger and clearly ignored the legitimate complaints of the businessperson. This is clearly a problem with: A. Functional fairness B. Service equity C. Interactional fairness D. Distributive fairness E. Relationship management

At the _____ stage of the new service development process, the new service is made available to a limited number of its potential customers. A. Commercialization B. Business analysis C. Market testing D. Service development and evaluation E. Post introduction evaluation

Because Virginia's brother died while he was cashing a check at the local bank, Virginia has always hated any type of banking. When it became necessary for her to go to the bank to empty her brother's safe deposit box, she complained the whole time about the inept service, the too-cold air conditioning and the poor parking. Virginia's customer satisfaction was adversely influenced by: A. Poor service qualityB. Her perception of service qualityC. Her emotional stateD. Her attributions for service successE. Her perception of equity

Before going out to dinner with her husband at Formia Ristorante, a contemporary Italian restaurant in New Jersey, Jennifer read a review of Formia in the local newspaper. The review indicated Formia is an unpretentious and unassuming, but exceptionally fine, contemporary Italian restaurant. Five servers who are under the owner's watchful eye attentively care for the fourteen roomy tables in the single large dining room. What the servers may lack in experience is more than compensated for by tempered enthusiasm and sincere desire to ensure guests are comfortable. The review of Formia that Jennifer read is a(n): A. Explicit service promiseB. Implicit service promiseC. Word-of-mouth communicationD. Past experience influenceE. Marketing testimonial

Business travelers today are more likely to order room service than ever before. A tired piece of chicken in a congealed sauce kept company by a heap of wilted lettuce will likely cause the customer to think negatively about his or her hotel stay. This is an example of how _____ influences customer satisfaction. A. The salesperson's emotional stateB. Problems with perceived equityC. A product featureD. Service validityE. Service attribution

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

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

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

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

Consumers have _____ desired service levels and _____ adequate service levels for different firms within a service category (e.g., Domino's Pizza, Little Caesar's Pizza, Papa John's and Pizza Hut within the pizza restaurant category). A. Similar; similarB. Different; similarC. Similar; differentD. Different; differentE. Same; same

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

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

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

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

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

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

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

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

In services with a high level of credence qualities, e.g., banking, insurance, medical and legal service, which of the following service quality dimensions is most important? A. ReliabilityB. ResponsivenessC. AssuranceD. EmpathyE. Tangibles

In the simplest terms, _____ are deeds, processes and performances. A. AttributesB. ExperiencesC. ServicesD. GoodsE. Benefits

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

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

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

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

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

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

For years, Texaco used the slogan, "You can trust your car to the man who wears the star". Which dimension of service quality was the Texaco promotional campaign emphasizing? A. ReliabilityB. ResponsivenessC. AssuranceD. EmpathyE. Tangibles

From the customer's point of view, the most vivid impression of service occurs in the service _____ when the customer interacts with the service firm. A. EventB. SocializationC. EncounterD. ArrangementE. Experience

Garrett and Hugh were having breakfast when they decided they wanted to have pizza and watch a video that night. Garrett turned on her computer, brought up the site of a local video store and ordered the movie Cold Mountain to be delivered to her doorstep at 7 p.m. Next she logged on to her favorite pizza restaurant's Web site and ordered a large pepperoni pizza and a bottle of her favorite soda to be delivered at 6:45 p.m. Garrett and Hugh enjoyed their evening. The next morning the video store had someone pick up their tape at Hugh's office. Which trend that influenced the development of services marketing is illustrated here? A. The increasing importance of service industries to the U.S. and world economiesB. The decrease of human interaction as a result of widespread use of technology-based servicesC. The growth in the use of technology-based servicesD. Increased competition in the entertainment industryE. The fact that manufacturing firms are placing increased emphasis on providing services

Gwen's first trip to an amusement park was as a chaperone for a class of special education children who were allowed to fill up on sugar on the bus trip to the park. By the end of the day, Gwen was very frustrated and very tired. Later when she revisited the amusement park, Gwen could not enjoy the experience because she kept remembering how miserable she had been acting as a chaperone. Gwen's satisfaction with amusement parks was adversely influenced by: A. Poor service qualityB. Her perception of service qualityC. Her emotional stateD. Her attributions for service successE. Her perception of equity

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

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

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

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

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

In India weddings are timed to occur when Venus is in the ascendant and Jupiter is strong. This day is deemed lucky. In 2005, almost 15, 000 couples in New Delhi had their wedding on December 25, the day astrologers announced would be the best day for a wedding. It is very likely that wedding planners in New Delhi have difficulty narrowing provider ______ of the gaps model of service quality due to their inability to match supply and demand. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

In a service blueprint, the line of visibility separates: A. Customer actions from onstage contact employee actions B. Backstage contact employee actions from support processes C. Onstage contact employee actions from backstage contact employee actions D. Onstage contact employee actions from support processes E. Customer actions from backstage contact employee actions

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

In order to get an accurate cholesterol reading, an individual must fast for at least eight hours before the test. When you schedule a cholesterol test at your doctor's office, you will receive a brochure that will explain the fasting and why it is so very necessary. Providing this sort of educational literature to patients is one way doctors try to narrow provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3

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

Jack and Luke used the same mechanic to fix their cars. Both were unhappy with recent repairs. Luke who complained because his car was improperly repaired will have a ______ level of adequate service and a _____ zone of tolerance than Jack who did not complain about how poorly his car was running after the mechanic put in new spark plugs and did other maintenance. A. Lower; narrowerB. Lower; widerC. Higher; narrowerD. Higher; widerE. Stays the same; stays the same

Jiffy Lube, a franchiser of 10-minute oft and lubrication services, has been plagued by a lack of consistency across franchise outlets. The lack of consistency has resulted from Jiffy Lube's failure to require franchisees to adhere to common service standards as it rapidly expanded its franchise business across the U.S. Jiffy Lube's failure to require franchisees to adhere to common service standards has led to provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

Karen owns a cottage on Martha's Vineyard, a popular island destination for tourists from about April to October. When Karen visits the island in March to dine at her favorite pizza restaurant, she expects great service because the tourists are not there. Because she predicts she will receive great service, her _____ than it is during the tourist season. A. Level of desired service will be higherB. Tolerance of situational factors will be higherC. Level of adequate service will be higherD. Zone of tolerance will be widerE. Level of adequate service will be lower

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

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

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

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

McDonald's offers home and office delivery service in selected markets in the U.S. and Canada. McDonald's delivery service is a _____ growth strategy. A. Share building B. Divestment C. Service development D. Diversification E. Market integration

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

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

Monroe and Ilene are meeting with a potential wedding caterer today. They will sample seven different kinds of wedding cakes, taste three entrees, sip varied wines and examine table setting options. The caterer allows prospective clients to sample his products before purchase in order to: A. Evoke the drama metaphorB. Create evidence of credence qualitiesC. Reduce the risk inherent in the purchase of a serviceD. Eliminate riskE. Create a larger evoked set

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

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

Nita belongs to an Internet library, which lets her trade books she no longer wants for like-valued items she does want. Most members follow the rules of the Web site, but a few unscrupulous members do not mail requested books because they are more interested in acquiring books than sharing them with others. Nita has the potential to experience problems with which e-service quality dimension as she trades books? A. AssuranceB. ReliabilityC. FulfillmentD. EmpathyE. Efficiency

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

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

Pret a Manger, a London-based sandwich shop, introduced restaurant-quality sandwiches with fast-food velocity. Pret a Manger's faster service is a _____ growth strategy. A. Share building B. Divestment C. Service development D. Diversification E. Marketing integration

Provider _____ is the difference between the development of customer-driven service standards and actual service performance by company employees. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

Provider gap 3 of the gaps model of service quality is caused by: A. Failure to match supply and demandB. Advertising that over-promisedC. Failure to connect service design to service positioningD. Inadequate maintenance of servicescapeE. A tendency to view each external communication as independent

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

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

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

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

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

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

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

The Survivor television series on CBS is never short of candidates for shows. If you listen to the interviews of those who want to participate, they often sound repetitive as they talk about how the experience will let them learn what they are truly capable of accomplishing. From this information, it would appear that participation in the reality TV show would satisfy _____ needs. A. EgoB. SocialC. Self-actualizationD. Safety and securityE. Physiological

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

The augmentation of an existing service line is a: A. Major innovation B. New service for the currently served market C. Service line extension D. Service improvement E. Service franchise

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

The central focus of the gaps model of service quality is the: A. Constant need to provide value for dollars spentB. Four dimensions of serviceC. Difference between customer expectations and perceptionsD. Temptation to handle services as if they were tangiblesE. Customer-employee-supplier triumvirate

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

The final stage of the new service development process is: A. Commercialization B. Market research C. Post introduction evaluation D. Fine tuning of the positioning strategy E. Business strategy development

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

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

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

The greatest potential variability in the interaction between a customer and a service firm occurs in a(n) _____ service encounter. A. DetachedB. PhoneC. Face-to-faceD. PublicE. Integrated communication

The highest possible level of customer expectations is _____ expectations. A. DesiredB. AcceptableC. IdealD. Ego-satisfyingE. Id-oriented

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

The marketing that goes on between an insurance agent and a current customer that is buying car insurance for a new teenage driver is an example of _____ marketing. A. FormalB. ExternalC. InteractiveD. Controlled

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

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

USAir's Frequent Traveler Program provides financial incentives and rewards for members who fly on USAir. USAir's Frequent Traveler Program increases: A. The rate of innovation diffusionB. Customer compatibilityC. Brand loyaltyD. The size of the customer's evoked setE. Service divisibility

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

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

When Jessie wanted to talk to a therapist to learn how she could improve her relationship with her mother, she went to www.here2listen.com, an online counseling service that charges $1 per minute of counseling. The people who maintain the web site and who make it possible for Jessie to engage in an online chat with a therapist are examples of: A. Customer actions B. Onstage contact employee actions C. Backstage contact employee actions D. Support processes E. Audience actions

When Sarah opened her savings and checking accounts at First National Bank of Chicago, she was given a brochure entitled "How to Lose Wait" that gave her advice on how to avoid delays at the bank and listed her branch's busiest and slowest times. By giving Sarah the "How to Lose Wait" brochure, First National Bank of Chicago is: A. Managing service promises B. Resetting customer expectations C. Improving customer education D. Managing horizontal communications E. Exceeding customer expectations

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

When a company offers new services to current customers, it is using a _____ growth strategy. A. Share building B. Market development C. Service development D. Diversification E. Market integration

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

When the toddler's ball rolled under the motel bed, his mother was surprised to find a dirty sock and used crumbled tissues under the bed also. This physical evidence of service was not what the mother expected to find in this luxury hotel and served to broaden the provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

Whether a household or a firm chooses to produce a particular service for itself or contract externally for the service depends upon all of the following EXCEPT: A. Psychic rewards B. Trust C. Empathy D. Resource capacity E. Control

Which of the following factors does NOT cause provider gap 3? A. Ineffective employee recruitmentB. Failure to match supply and demandC. Efficient marketing research systemsD. Channel conflict over objectives and performanceE. Lack of employee empowerment, perceived control and teamwork

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

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

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

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

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

Which of the following is NOT an example of a search quality? A. StyleB. PriceC. TasteD. ColorE. Smell

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

Which of the following is a marketing implication that results from the perishability of services? A. Service quality depends on many uncontrollable factorsB. Employees affect the service outcomeC. Synchronizing supply and demand is difficultD. Customers participate and affect the service outcomeE. Service delivery and customer satisfaction depend on employee actions

Which of the following is an example of poka-yokes? A. Lynsey is so upset with the service she got at the travel agency that she is launching a one-woman campaign to put it out of business B. The business owner complains to the licensing board every time the next-door restaurant's employees forget to put the lids on the garbage cans C. The day care center has carefully labeled bins for each parent to fill with food, diapers, clothes and toys so that one child's stuff will not confused with another's D. The customer refused to pay the delivery fee because the package arrived two days late E. The dentist's office staff regularly does lost customer research

Which of the following is the BEST example of procedural fairness? A. The restaurant charged the man for two meals when he sent back his overcooked steak and demanded one cooked correctly B. Miriam decided the missing button was not important enough to make another trip to the cleaners and complain C. When Tia walked into the salon and asked to have her hair cut, the receptionist pointed to the sign that read, "To keep from inconveniencing our customers, this hair salon will not fix the hair of anyone who does not have an appointment" D. The small movie theater gave all patrons two-free movie tickets for the night of their choice when the movie projector broke half way through showing the newest Brad Pitt movie E. The hotel refused to help a man find a room for the night when he missed his scheduled flight

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

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

Which of the following statements about what a service marketer can do if its customers have unrealistic expectations is true? A. One way to reduce unrealistic expectations is to ask customers what they wantB. Make realistic sales pitches the industry standardC. Deliberately under-promise and over-deliver serviceD. Realize that customer expectations are staticE. Avoid playing follow-the-leader with the competition

Which of the following statements describes a marketing implication that results from the simultaneous production and consumption of services? A. Services cannot be returned or resoldB. Service quality depends on many uncontrollable factorsC. Employees affect the service outcomeD. Services cannot be readily displayed or communicatedE. There is no sure knowledge that the service delivered matches what was planned and promoted

_____ focuses on the interpersonal treatment received by the consumer during the complaint process. A. Functional fairness B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

_____ qualities are attributes a consumer can only determine after purchasing and consuming a product. A. SearchB. ConceptualC. ExperienceD. CredenceE. Cognitive

Which of the following statements regarding consumer evaluation of alternatives for services is true? A. The consumer's evoked set of alternatives is larger with services than with goodsB. Consumers seldom select the first acceptable alternative and prefer to search through many alternativesC. For nonprofessional services, consumers' decisions often entail the choice between performing the services for themselves and hiring someone to perform themD. The typical customer's evoked set seldom includes self-provisionE. The primary reason for larger evoked sets is the ease with which adequate purchase information can be obtained

Which of the following statements regarding service purchase and consumption is true? A. Service delivery can be conceived as an actorB. Service encounters can be viewed as dramaC. Negative departures from a customer's expected service script detract from service performanceD. Customer compatibility influences customer satisfaction in low contact servicesE. Customers do not play a role in a well-scripted service drama

Which of the following statements regarding the influence of emotions and moods on the consumer evaluation of services is true? A. The consumer's evoked set of alternatives is larger with services than with goodsB. Positive moods and emotions lessen the likelihood of performance of behaviors that have positive expected outcomesC. Mood and emotion bias evaluation of service encounters in "mood-congruent" directionsD. The mood of the customer has no influence on the way the impressions of a service are encoded, retained and retrieved by customersE. The greater the human interaction in the service encounter, the less likely moods and emotions will influence the consumer's evaluation of the service

Which of the following would result in a broadening of provider gap 1? A. The service intermediary for a cruise line wants to only sell those cruises on which it would receive the highest commissionsB. The ski resort has an over-reliance on price to smooth demand for its resort facilitiesC. The marketing research done by the motel chain includes insufficient research about what its target market wantsD. The ads for the language program over-promise how quickly the average person will be able to learn a foreign languageE. All of the above would result in a broadening of provider gap 1

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

Without good mailing lists, businesses cannot engage in effective direct-marketing advertising. On average 20 percent of the U.S. population moves annually. Return Path is a company that provides changes of addresses to businesses. It takes a business's mailing list, compares it to address changes that it gathers daily in its database and makes any necessary corrections. Return Path is a part of which trend in the services marketing industry? A. The increasing importance of service industries to the U.S. and world economiesB. The decrease of human interaction as a result of widespread use of technology-based servicesC. The growth in the use of technology-based servicesD. Increased competition in the direct-mail industryE. The fact that direct marketing firms are placing increased emphasis on providing services

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

____ is a key determinant of whether a product offering should be classified as a product or a service. A. PhysicalityB. Audience passivityC. TangibilityD. PerceptionE. Abstraction

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

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

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

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

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

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

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

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

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

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

A service blueprint is developed during which stage of the new service-development process? A. Commercialization B. Business analysis C. New services strategy development D. Service development and evaluation E. Idea generation

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

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

A wildcat strike by garbage collectors in a large metropolitan city during prime tourist season will most likely cause tourists to cut short their visit and have a poor image of the city. The wildcat garbage strike is an example of a: A. Transitory service intensifierB. Service negatorC. Predicted service influenceD. Situational factorE. Temporary personal need hindrance

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

After an airplane arrives at its gate and passengers disembark, it is cleaned, restocked with food and beverages and refueled by maintenance workers before the next set of passengers board and the airplane departs on its next flight. The activities performed by maintenance workers to prepare the airplane for its next flight is part of which section of the service blueprint? A. Customer actions B. Onstage contact employee actions C. Backstage contact employee actions D. Support processes E. Audience actions

All of the following are causes for customer's brand switching EXCEPT: A. Ethical problems B. Pricing C. Inconvenience D. A service paradox E. Core service failure

Allstate changed its insurance billing procedure after research revealed customers wanted flexible payment plans and billing information presented in an easy-to-read format. What type of research would Allstate most likely have used to discover how customers perceived Allstate's billing procedure? A. Trailer callsB. Mall intercept interviewsC. Role-playing experimentsD. Critical incident techniqueE. Thematic apperception tests

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

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

American Airlines pilots and crews are trained to inform customers immediately when flight delays occur and to keep customers advised at regular intervals about the changes in a flight's schedule. By keeping customers informed during a flight, American Airlines is closing provider _____ of the gaps model of service quality. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

An attorney who charges a client for a missed appointment is taking into account the _____ characteristic of services. A. HeterogeneityB. Simultaneous production and consumptionC. IncomparabilityD. PerishabilityE. Intangibility

Andreason Removal Company removes asbestos from old houses and buildings. Which of the following is an example of the people element of services marketing mix? A. Federal inspectors who check behind Andreason's employees to make sure the job is done properlyB. People in the community where it disposes of the asbestosC. Physicians who have studied the dangers of breathing asbestosD. People who hire the company to remove the asbestos from their propertyE. Suppliers who provide the uniforms and masks to protect Andreason's employees from the asbestos

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

Because of the _____ of services, service producers find themselves playing a role as part of the product itself and an essential ingredient in the service experience for the consumer. A. ComparabilityB. IntangibilityC. HeterogeneityD. Simultaneous production and consumptionE. Perishability

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

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

Bruce was driving to work yesterday when he was nearly run off the road by a speeding furniture delivery truck. On the back of the truck was a phone number to call if you believed the driver was not handling the truck safely. Rather than deciding to never buy furniture from this furniture company, Bruce called the company and complained about the truck driver. The person who took his call thanked Bruce for his concern, apologized for the driver and promised to reprimand him. Which service recovery strategy was the furniture store using? A. Make the service fail safe B. Learn from lost customers C. Use procedural fairness D. Encourage and track complaints E. Treat customers proactively

By creating cross-functional teams, a service firm is: A. Managing service promises B. Resetting customer expectations C. Communicating with customers D. Managing internal marketing communications E. Exceeding customer expectations

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

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

Customer _____ are beliefs about service delivery that function as standards against which performance is judged. A. AttitudesB. JudgmentsC. GoalsD. ExpectationsE. Perceptions

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

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

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

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

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

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

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

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

In which of the following situations will customer compatibility NOT influence customer satisfaction with a service? A. Customers are in close proximity to each other in the service environmentB. Customers must wait for the serviceC. Verbal interaction among customers is likely in the service environmentD. The service environment attracts a homogeneous customer mixE. Customers engage in numerous and varied activities in the service environment

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

John's flight on United Airlines from Chicago to San Francisco departed two hours late because of a snowstorm in Chicago. The snowstorm that delayed John's flight is a: A. Transitory service intensifierB. Service negatorC. Predicted service influenceD. Situational factorE. Temporary personal need hindrance

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

Kershawn recently had a visit with his dermatologist. Rather than show her the malformed mole on his arm, he expected the physician to find it. When she didn't see it, he claimed she was a poorly-trained doctor. Kershown's service expectation was influenced by: A. The transitory nature of service intensifiersB. His evoked services setC. His temporary perception of needD. His self-perceived service roleE. His ego oriented approach to service

Lynette said all she expected from the day care at the gym she belonged to was to get her children back at the end of an hour and learn the police had not been called because of something they did. She uses this particular gym because the day care will let her unruly children stay even though it provides only the nominal supervision. Lynette has _____ expectations about the day care. A. DesiredB. AcceptableC. ConventionalD. Minimum tolerableE. Experience-based

Many carwashes offer free replacement washes to car owners if it rains or snows within 24 hours of when they had their cars cleaned at the carwash. Because people who would take advantage of this service guarantee are the ones that are concerned about the appearance of their car, this service guarantee: A. Shows the absence of a customer focus B. Illustrates the importance of employee empowerment C. Does not fit the service provider's image D. Is very meaningful E. Is unconditional

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

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

Marriott had an advertising campaign with the following theme: "You can't be late for business appointments and neither can we. At Marriott, if your breakfast doesn't show up on time, it won't show up on your bill. That's because we take our business just as seriously as you take yours. And our business is service. The commitment is what makes Marriott the business traveler's first choice". If a business traveler, who saw this advertisement, stayed at a Marriott hotel and did not receive breakfast on time and was charged for that breakfast, Provider _____ of the gaps model of service quality would have occurred. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

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

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

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

On his way to work today, Terry saw a billboard for a physician's group that specialized in vascular surgery. In his local newspaper there was a full-page ad for a medical clinic that performed similar surgery. Then in his mail, he got a brochure from yet another medical clinic asking him if he wanted to get rid of ugly varicose veins. Which trend that influenced the development of services marketing concepts and strategies is illustrated here? A. The increasing importance of service industries to the U.S. and world economiesB. The increase of government regulation of professional service industriesC. The growth in database marketingD. Increased competition in professional servicesE. Professional firms are placing increased emphasis on providing services

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

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

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

People who complain can be categorized as: A. Irates, passives and aggressives B. Passives, activitists, liaisons and negativists C. Activists, mediators, chronic and passives D. Voicers, irates, activists and passives E. Aggressives, passives and mediators

Pret a Manger, a London-based sandwich shop, introduced restaurant-quality sandwiches with fast-food velocity. This would be an example of a A. Major innovation B. New service for the currently served market C. Service line extension D. Service improvement E. Style change

Provider _____ is the difference between service delivery and the service provider's external communications. A. Gap 1B. Gap 2C. Gap 3D. Gap 4

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

Raul took his dog Buffy to dog training school to stop Buffy from barking. As soon as the dog returned home, she started her same pattern of barking. Raul was highly critical of the trainers for not teaching Buffy not to bark even though he had not continued the reinforcement technique he was supposed to use to encourage Buffy's good behavior. Raul customer satisfaction was adversely affected by: A. Poor service qualityB. His perception of service qualityC. His emotional stateD. His attribution for service failureE. His perception of equity

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

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

Sam Goody, a tape, compact disc and video store, has a frequent buyer program called Replay that rewards members a $15 gift certificate for every $150 in purchases made at Sam Goody. In addition, Replay members receive a coupon each month for a 20-25 percent discount on the purchase of an unlimited number of CDs and/or cassettes from a specific music category. By having a frequent buyer program, Sam Goody is using _____ marketing. A. TransactionalB. DevelopmentalC. ProactiveD. RelationshipE. Acquisition

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

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

Services high in _____ qualities are the most difficult to evaluate. A. SearchB. ExperienceC. SourceD. CredenceE. Motivational

Services provided by x-ray technicians, surgeons, dentists and land surveyors are high in _____ qualities. A. SearchB. ExperienceC. SourceD. CredenceE. Cognitive

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

Telepizza S.A. Is a Spanish pizza restaurant chain that offers children membership in its magic club. The magic club gives its members small prizes, usually simple magic tricks, with each order their parents place. Telepizza has 65 percent of the Spanish market has a result of using _____ marketing. A. TransactionalB. DevelopmentalC. ProactiveD. RelationshipE. Acquisition

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

The first step in the new service-development process is: A. Idea generation B. New-services strategy development C. Business analysis D. Business strategy development or review E. Concept development and evaluation

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

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

The sources of customer expectations are market-controlled factors such as: A. The individual's innate needsB. The individual's previous experiencesC. Word-of-mouth communicationD. Sales promisesE. What the competition is offering

The type of complainer that is called a(n) _____ has an above average propensity to complain. They have a very optimistic sense of the potential positive consequences of all types of complaining. A. Irate B. Passive C. Aggressive D. Activist E. Voicer

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

To close the customer gap, the gaps model of service quality suggests the _____ gaps need to be closed. A. Services marketingB. Service dimensionsC. 4 PsD. ProviderE. Value

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

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

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

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

Victoria's Secret designs its lingerie specialty stores to arouse feelings of warmth, romance and passion. The smells of fragrances and potpourri sachets permeate the store's environment. Romantic music by the London Symphony plays softly in the background. Classic furniture like handcrafted armoires, glass curio cabinets and carved chairs display and complement the elegant gowns, robes, pajamas and satin lingerie that are the store's main product lines. A Victoria's Secret specialty store is designed to: A. Decrease customer compatibilityB. Decrease customers' perceived risksC. Increase the size of its customers' evoked setsD. Increase the positive moods and emotions of its customersE. Decrease service complexity

When Madyson returned to her oncologist's office for a checkup. She was pleased to find the waiting room had been remodeled and it now contained a large aquarium. There was even a sign that said watching fish is an excellent stress reducer. Since Madyson did not feel nearly as anxious before going to the oncologist's examination room, she decided the addition of the swimming fish was a good: A. Major innovation B. New service for the currently served market C. Service line extension D. Service improvement E. Style change

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

When a customer chooses between a restaurant in a pricy suburb of Atlanta and a restaurant in a small farming community 45 miles away, there is a _____ made by the locations that the customer will be more likely to find exotic cuisine and better trained servers at the downtown Atlanta restaurant. A. Explicit service promiseB. Perceived service alternativeC. Word-of-mouth communicationD. Implicit service promiseE. Marketing testimonial

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

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

Which of the following in NOT an example of technical outcome quality? A. The taste of a meal at a restaurantB. An airplane arriving on time at an airportC. A pest control company eradicating termites in a townhouseD. The sales associate greeting a customer in a specialty clothing storeE. A utility company connecting electricity for a customer's new home

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

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

Which of the following is NOT an example of a commonly used service recovery strategy? A. Learn from recovery experience B. Act quickly C. Encourage and track complaints D. Implement the service paradox E. Learn from lost customers

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

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

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

Which of the following is a marketing implication that results from the heterogeneity of services? A. Services cannot be returned or resoldB. Services cannot be patentedC. Services cannot be inventoriedD. Mass production of services is difficultE. All of the above are marketing implications resulting from the heterogeneity of services

Which of the following is an intangible component of a car repair shop? A. Replacement partsB. Employee uniformsC. Barrel for storing recyclable motor oilD. The training the mechanic has receivedE. Customer waiting area

Which of the following is the BEST example of outcome fairness? A. The restaurant charged the man for two meals when he sent back his overcooked steak and demanded one cooked correctly B. Miriam decided the missing button was not important enough to make another trip to the cleaners and complain C. The sign posted on the wall stated the hair salon would not fix the hair of anyone who did not have an appointment D. The small movie theater gave all patrons two-free movie tickets for the night of their choice when the movie projector broke halfway through showing the newest Brad Pitt movie E. The hotel refused to help a man find a room for the night when he missed his scheduled airplane flight

Which of the following statements about customer satisfaction and service quality is true? A. Customer satisfaction is a focused evaluation that reflects the customer's perception of specific dimensions of service like reliability and responsivenessB. Service quality is more inclusive than customer serviceC. The terms customer service and service quality can correctly be used interchangeablyD. Customer satisfaction is influenced by perceptions of service qualityE. None of the above statements about customer satisfaction and service quality is true

Which of the following statements about customer satisfaction is true? A. Satisfaction cannot be defined quantitativelyB. Customer satisfaction can only be analyzed if it is considered to be a static occurrenceC. Customer satisfaction can only be determined through anecdotal evidenceD. Satisfaction may be associated with feelings of ambivalence when there is a mix of positive and negative experiencesE. Customer satisfaction is not influenced by price

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

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

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

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

Which of the following statements describes how consumers and employees are responding to technology-based services? A. Services can readily calm fears that privacy may be sacrificed if technology is usedB. An infusion of technology can lead to an increase in human interactionC. The payback for investments in technology is a certaintyD. Employees are often reluctant to integrate technology into their work livesE. All of the above statements describe how consumers and employees are responding to technology-based services

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

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

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

Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining? A. Technology-based services, which are superior to human-based services, are not being implemented enoughB. Services are leveling the playing field and consistently trying to offer the same level of service to every customerC. Companies are decreasing their reliance on self-service and increasing the use of human interaction in the performance of servicesD. Customer expectations are higher because of the excellent service they receive from some companiesE. Even though it is Easy to provide consistent, high-quality service, many companies do not want to do it

Which of the following themes is NOT a source of customer satisfaction/dissatisfaction in service encounters? A. RecoveryB. AdaptabilityC. SpontaneityD. CredibilityE. Coping

Which of the following trends has directly influenced the development of services marketing concepts and strategies? A. The decreasing importance of service industries to the U.S. and world economiesB. The growth in information-based technologyC. Decreased competition in professional servicesD. The fact that manufacturing firms are placing increased emphasis on providing servicesE. None of the above

Which of the following would lead to dissatisfying SSTs? A. Stakeholder-driven failureB. Poor Internet linkageC. Management failureD. Poor designE. Innovation failure

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

Zoë was looking for a kennel to board her cocker spaniel for two weeks while she goes on vacation. There are two kennels close to her home. One charges $50 per week and the other charges $125 per week. Zoë chose the higher priced service because her dog is like a member of the family and she wanted it to have the best possible care while she was away. Zoë's service expectation level was determined by a(n): A. Explicit service promiseB. Perceived service alternativeC. Word-of-mouth communicationD. Implicit service promiseE. Marketing testimonial

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

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

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

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

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

_____ refers to the fact that services cannot be saved, stored, resold or returned. A. IntangibilityB. HeterogeneityC. Simultaneous production and consumptionD. PerishabilityE. Incompatibility

_____ standards are operations standards set by a service firm to correspond to customer expectations. A. Company-drivenB. Competitor-drivenC. Contact employee-drivenD. Customer-drivenE. Management-defined

______ are the most common types of new services. A. Major innovations B. Start-up businesses C. Service line extensions D. Service improvements E. Style changes

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

as the number of perceived service alternatives increases, the level of adequate service _____ and the zone of tolerance _____. A. Decreases; narrowsB. Decreases; widensC. Increases, widensD. Increases; narrowsE. Stays the same; stays the same

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

service companies can close provider gap 2 by doing all of the following EXCEPT: A. Using a systematic new-service development processB. Developing customer-defined service standardsC. Designing and using an appropriate servicescapeD. Improving communication between the marketing and operations departmentsE. Creating formal process for setting service quality standards

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

A consumer's emotional state or mood can: A. Affect his or her willingness to participate in behaviors that help service encounters succeedB. Bias the way consumers evaluate service encountersC. Affect how consumers encode memories of a service encounterD. Make a potentially positive service encounter fail to produce the desired resultsE. Do all of the above

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

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

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

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

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

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

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

Business travelers today are more likely to order room service than ever before. A tired piece of chicken in a congealed sauce kept company by a heap of wilted lettuce led the salesperson to conclude that the hotel did not care about his comfort. Therefore, the salesperson decided to never stay at this hotel again. The salesperson's lack of satisfaction with the hotel was due to: A. The salesperson's emotional stateB. Problems with perceived equityC. A product disadvantageD. Service validityE. Service attribution

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

Consumers are more brand loyal to services than to goods because services have: A. Higher perceived risksB. Higher search costsC. Fewer substitutes availableD. Higher initial monetary costsE. All of the above

Contestants in the Survivor Palau reality television show were sent to their campsite with nothing but the clothes on their back, two machetes and a map to fresh water. According to Maslow's hierarchy, the participants' _____ need would be strongest during their first days on the island. A. EgoB. SocialC. Self-actualizationD. Safety and securityE. Physiological

Credit card companies have raised customer _____ for service performance by offering lower interest rates, longer grace periods before paying, frequent flyer miles, no annual fees, rebates, discounts, prizes and merchandise. A. PerceptionsB. ProspectsC. ObjectivesD. GoalsE. Expectations

Customers often cannot accurately evaluate the technical qualities of legal work like that provided when a homeowner refinances his or her property. Which of the following cues would the homeowner be likely to use to evaluate the legal services? A. Courtesy of the lawyer and staffB. Diplomas on wallC. How the lawyer dressesD. The lawyer's use of humor and empathyE. All of the above

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

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

For which of the following products is a consumer likely to have the smallest evoked set of alternatives? A. ToothpasteB. Athletic shoesC. CerealD. Movie videosE. Dry cleaners

Groups purchasing services encounter: A. Greater perceived riskB. More reliance on word-of-mouth communicationC. Greater difficulty in comparing alternativesD. A higher level of customer participationE. All of the above

Henri, Al and T.K. are all studying to be dog groomers at a local Petsmart training academy. Henri and Al believe they received inadequate training because they could not get a job when the course concluded. T.K. thinks the academy was a great experience and really enjoys grooming the pets at Pet Heaven Kennels. In this example, satisfaction levels were influenced by: A. Poor service qualityB. Their perceptions of service qualityC. Their emotional statesD. Their attributions for service successE. Their perception of equity

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

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

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

If you are planning on building a house, you can buy predrawn, ready-to-use architectural plans or you can hire your own architect to design a one-of-a-kind house that is an expression of your success. The need to design your own structure as opposed to using generic designs would more than likely be an example of a(n) _____ need. A. RiskB. PhysiologicalC. SafetyD. SocialE. Ego

In Mexico for about $13.50, you can participate in a migrant obstacle course that gives tourist a taste of the sometimes deadly crossings that illegal migrants make daily. Employees of the park do their best to catch the mock migrants. When they are caught, they hands are bound behind their back and they are loaded into trucks. The service quality the mock migrants perceive is determined by: A. Whether the faux border patrols use abusive languageB. How hot the truck isC. How well the other customers react to their captureD. How the faux border patrol dressesE. All of the above

In Mexico for about $13.50, you can participate in a migrant obstacle course that gives tourist a taste of the sometimes deadly crossings that illegal migrants make daily. Employees of the park do their best to catch the mock migrants. When they are caught, they hands are bound behind their back and they are loaded into trucks. When a captured mock migrant showed signs of having a heart attack, the park employees would be involved in which type of service encounter incident? A. ReliabilityB. AdaptabilityC. SpontaneityD. FunctionalityE. Coping

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

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

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

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

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

In which of the new-services development processes does a service firm produce a description of the service that represents its specific characteristics and features? A. Idea generation B. New services strategy development C. Service development and evaluation D. Market testing E. Service concept development and evaluation

Instead of cooking dinner themselves, Janice and her roommate Selema decided to order pizza and have it delivered to their apartment. Although Janice and Selema usually order pizza from Pizza Hut, they had recently received coupons in the mail from two other neighborhood pizza restaurants, JoJi's Gourmet Pizza and Angelo's Pizzeria, for discounts on the purchase of two medium pizzas. JoJi's Gourmet Pizza and Angelo's Pizzeria are providing the roommates with: A. Transitory personal need influencesB. Situational factorsC. Evoked service offeringsD. Temporary service intensifiersE. Perceived service alternatives

J. Crew, a catalog retailer, makes the following service guarantee in its catalog. "Everything we sell is our own design and our own make and we guarantee it all without reservation. If at any time for any reason you are not completely satisfied with any item, we will make an exchange or refund your payment per your direction". J. Crew's service guarantee is a(n): A. Marketing testimonialB. Implicit service promiseC. Word-of-mouth communicationD. Past experience influencerE. Explicit service promise

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

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

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

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

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

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

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

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

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

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

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

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

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

Rama thought the light blue paint on the walls of the hospital waiting area was a vast improvement over the old brown paint. The repainting of the walls of the service provider is an example of a: A. Major innovation B. New service for the currently served market C. Service line extension D. Service improvement E. Style change

Research indicates that if an individual has to wait longer than eight seconds for an Internet site to download, then he or she will likely abandon plans to visit the site and move on to another site. In which of the service quality dimension that are used to evaluate web sites would a site be deficient if it took longer than eight seconds to download? A. AssuranceB. ReliabilityC. FulfillmentD. EmpathyE. Efficiency

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

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

Service companies can close provider gap 3 by doing any of the following EXCEPT: A. Teaching customers to perform their roles appropriatelyB. Synchronizing supply and demandC. Motivating intermediaries to meet company service goalsD. Empowering employeesE. Developing customer-defined service standards

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

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

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

The Pet Palace washes, clips and grooms dogs. The owner and employees of the Pet Palace developed a mobile grooming vehicle. The new service allows them to go to the dog's home to wash, clip and groom it. How can Pet Palace NOT measure the success of its new service? A. By looking at its market development B. By looking at the service's return on investment C. By looking at the service's profitability and revenue growth D. By looking at how the service has enhanced Pet Palace's relationship with its customers E. By looking at the commercials

The Walt Disney Company does not permit male employees at its theme parks to have mustaches and beards, sideburns that extend past the earlobe or hair covering any part of the ears or hanging over the shirt collar. In addition, male employees may not wear strong fragrances or earrings. The Walt Disney Company's dress code reflects the _____ dimension of service quality. A. ReliabilityB. ResponsivenessC. AssuranceD. EmpathyE. Tangibles

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

The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is an irate type when it comes to complaining would react to this by: A. Taking no action whatsoever B. Assuming he had done something to alienate the carpenter C. Using the phone to check up on the status of the carpenter at most once a week D. Begging the carpenter to come back and finish the job E. Firing the first carpenter and hiring another one who is willing to complete the job

The empowerment of employees makes which of the following service recovery strategies easier to implement? A. Make the service fail safe B. Learn from lost customers C. Treat customers fairly D. Encourage and track complaints E. Act quickly

The extent to which customers recognize and are willing to accept variation in service performance is called their zone of: A. VariationB. IndifferenceC. AcceptanceD. ImpartialityE. Tolerance

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

The last step in building a service blueprint is to: A. Draw the line of interaction and visibility B. Identify the physical evidence needed to support service quality C. Map the service process from the customer contact person's point of view D. Link customer and contact person activity to needed support function E. Add evidence of service at each customer step

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

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

The romantic mountain getaway seemed like the perfect Valentine's Day gift. The pictures in the brochure showed couples enjoying the amenities in their cabins. When the couple arrived, they found a cold, uninviting cabin with a shortage of creature comforts--no down-filled blankets, no wood for the fireplace, paper plates and cups and a broken chair. In this service example, the _____ was not what the customers expected. A. Internal marketingB. Management-driven serviceC. Interactive communicationD. Relationship marketingE. Servicescape

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

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

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

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

When DeWayne complained out loud that the hotel restaurant did not serve breakfast late enough in the morning, a hotel worker overheard him and went to the kitchen. When the hotel worker returned, he presented DeWayne with a plate of sweet rolls, a cup of coffee and the hotel's apology for having to close down the breakfast service early. Which service recovery strategy is being used in this example? A. Make the service fail safe B. Learn from lost customers C. Treat customers proactively D. Use procedural fairness E. Act quickly

Which of the following are determinants of service quality in a face-to-face service encounter? A. Verbal behavior of employeesB. Decor of physical environmentC. Verbal behavior of customersD. Appearance of employeesE. All of the above

Which of the following can influence how satisfied a customer is with a service? A. Customers' emotionsB. Product featuresC. Customers' perception of service qualityD. Uncontrollable situational factorE. All of the above

High quality service is not the result of standardized tasks because standardization is inconsistent with employee empowerment. t/f

Which of the following incidents is likely to influence a customer's perception of service quality of an appliance store? A. A late night call to the store's service departmentB. The relationship the customer has established with the store after buying several different appliancesC. A salesperson's explanation of extended warranty serviceD. The welcoming atmosphere of the storeE. All of the above

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

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

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

Which of the following is NOT a reason why consumers perceive greater risks when buying services than when buying goods? A. Warranties or guarantees do not accompany servicesB. Services are non-standardizedC. Services are intangibleD. Services have a high level of experience qualitiesE. Services are perishable

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

Which of the following is NOT a source of customer expectations? A. Word-of-mouth communicationsB. AdvertisingC. PricingD. Sales personnelE. Target market

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

Which of the following is NOT an example of a service business? A. Amusement parkB. HotelC. BankD. Department storeE. Soft drink bottler

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

Which of the following is NOT part of the evidence of service in a bank? A. TellersB. Time spent waiting in lineC. Bank's interior decorationsD. Courtesy of loan officer when you apply for an automobile loanE. Interest rate on a 6-month certificate of deposit

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

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

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

Which of the following is an example of aesthetics, one of the tools used to differentiate one culture from another? A. The number of times per week people dine outB. The average number of pets per householdC. How people express their political beliefsD. Individual concepts of time managementE. How people decorate their homes

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

Which of the following is an example of the people element of an airline company's services marketing mix? A. PilotsB. Baggage handlersC. CustomersD. Flight attendantsE. All of the above

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

Which of the following products is NOT high in search qualities? A. PianoB. DiapersC. Motor oilD. Floor lampE. Massage therapy

Which of the following products is the easiest to evaluate? A. Tax advice from a CPAB. Cancer screening testC. Retirement homeD. Legal advice on avoiding estate taxesE. A walk-in freezer

Which of the following service encounter themes reflects employees' responding to problem customers, i.e., customers who are unwilling to cooperate with the service provider, other customers, industry regulations and/or laws? A. RecoveryB. AdaptabilityC. SpontaneityD. CredibilityE. Coping

Which of the following statements about how technology has positively influenced service is true? A. Technology provides vehicles for delivering existing services in more accessible, convenient, productive waysB. Technology facilitates basic customer service functionsC. Technology facilitates transactions by offering a direct vehicle for making purchasesD. Technology provides an Easy way for customers to learn and do research about products and companiesE. All of the above statements about how technology has influenced service are true

Which of the following statements about services is true? A. A service economy produces services at the expense of other sectorsB. Service jobs are low paying and menialC. Service production is labor intensive and low in productivityD. Service is a necessary evil for manufacturing firmsE. The skills needed for managing services differ from those used for managing manufacturing businesses

The first step in the process for setting customer-defined standards is to translate customer expectations into behaviors and actions for each service encounter. t/f

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

Which of the following statements describes a marketing implication that results from the intangibility of services? A. Customers participate in and affect the transactionB. Service quality depends on many uncontrollable factorsC. Services can be readily communicatedD. There is no sure knowledge that the service delivered matches what was planned and promotedE. Services cannot be inventoried

Which of the following statements regarding consumer information search for services is true? A. Consumers rely less on information from personal sources than from nonpersonal sources when evaluating services prior to purchaseB. Consumers engage in less post-purchase evaluation and information seeking with services than with goodsC. Consumers engage in less post-purchase evaluation than pre-purchase evaluation when selecting and consuming servicesD. Consumers perceive fewer risks when buying services than when buying goodsE. Personal sources of information become more important as the complexity of the service being purchased increases

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

Why would a blood bank, which pays people for their blood donations and then sells this blood to hospitals, use the name Blood Assurance? A. Because the assurance dimension of service quality guarantees customer satisfactionB. Because the assurance dimension of service quality means that the blood donation will be done accuratelyC. Because the assurance dimension of service quality emphasizes the knowledge of the employeesD. Because the assurance dimension of service quality negates concerns about tangiblesE. Because the assurance dimension of service quality inspires trust and confidence

____ cost refers to the effort invested in identifying and selecting a service from your consideration set. A. Convenience B. Monetary C. Psychological D. Time E. Search

_____ are personal and nonpersonal statements about a service made by an organization to customers. A. Marketing testimonialsB. Implicit service promisesC. Word-of-mouth communicationsD. Past experience influencersE. Explicit service promises

_____ concerns the results that customers receive from their complaints. A. Functional fairness B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

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

_____ qualities are characteristics of a product consumers may find impossible to evaluate even after purchase and consumption. A. SearchB. CognitiveC. PerceptualD. ExperienceE. Credence

An important trend in services research is to measure only the negative consequences of service quality and ignore the positive because it does not need improvement. T/F

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