Service Marketing Exam 1

Customer _____ are beliefs about service delivery that function as standards against which performance is judged. A. Attitudes B. Judgments C. Goals D. Expectations E. Perceptions

A. Attitudes B. Judgments C. Goals D. Expectations E. Perceptions

In the simplest terms, _____ are deeds, processes, and performances. A. Attributes B. Experiences C. Services D. Goods E. Benefits

A. Attributes B. Experiences C. Services D. Goods E. Benefits

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 50th anniversary party. Lillie's attitude about how a caterer should act reflects her: A. Augmented service expectation B. Personal service philosophy C. Derived service expectation D. Cultural service expectation E. Situational factors

A. Augmented service expectation B. Personal service philosophy C. Derived service expectation D. Cultural service expectation E. Situational factors

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

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

Due to the _____ characteristic of services, customers will frequently interact with each other during the service production process and may affect each other's experiences. A. Comparability B. Intangibility C. Heterogeneity D. Simultaneous production and consumption E. Perishability

A. Comparability B. Intangibility C. Heterogeneity D. Simultaneous production and consumption E. Perishability

The central focus of the gaps model of service quality is the:A. Constant need to provide value for dollars spent B. Four dimensions of service C. Difference between customer expectations and perceptions D. Temptation to handle services as if they were tangibles E. Customer-employee-supplier triumvirate

A. Constant need to provide value for dollars spent B. Four dimensions of service C. Difference between customer expectations and perceptions D. Temptation to handle services as if they were tangibles E. Customer-employee-supplier triumvirate

At 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

A. Creating a competitive advantage B. Customer satisfaction C. The enhancement of its relationship with the customer D. Creating service loyalty E. Customer retention

Since service companies have found that customers differ in their relationship value and that it may be neither practical nor profitable to meet or exceed all customers' expectations, they have divided their target markets according to: A. Current and/or future profitability B. Behavior C. Usage D. Volume E. User characteristics

A. Current and/or future profitability B. Behavior C. Usage D. Volume E. User characteristics

The _____ gap is the difference between customer expectations and perceptions. A. Customer B. Service C. Value D. Quality E. Delivery

A. Customer B. Service C. Value D. Quality E. Delivery

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. Customer retention

The transition from the _____ stage to the _____ stage of the customer relationship requires the development of trust. A. Customers as acquaintances; customers as friends B. Customers as strangers; Customers as acquaintances C. Customers as partners; customers as acquaintances D. Customers as acquaintances; customers as strangers E. Customers as friends; customers as strangers

A. Customers as acquaintances; customers as friends

_____ service is the level of service the customer hopes to receive. A. Desired B. Adequate C. Functional D. Predictable E. Augmented

A. Desired B. Adequate C. Functional D. Predictable E. Augmented

Leonard has been commuting to New York City on the Long Island Railroad for 10 years. Every morning he takes the 7:00 a.m. train that is scheduled to arrive in New York at 8:15 a.m. from Huntington, a suburb of New York. Although Leonard would like the train to arrive in New York on time, he knows from his experience as a commuter that it is more likely the train will be 5 minutes late. Leonard's expectation that his train will be 5 minutes late reflects his _________ level of service for the Long Island Railroad. A. Desired B. Adequate C. Transactional D. Functional E. Available

A. Desired B. Adequate C. Transactional D. Functional E. Available

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

A. Employee suggestions B. Employee internal satisfaction surveys C. Research on intermediate customers D. Executive listening approaches E. Executive visits to customers

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

A. Financial bonds

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

A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4

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

A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4

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

A. Gap 1 B. Gap 2 C. Gap 3 D. Gap 4

The first time Barry 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 Barry 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. Barry's experience at Auto Lube illustrates the _____ of services. A. Intangibility B. Heterogeneity C. Simultaneous production and consumption D. Perishability E. Divisibility

A. Intangibility B. Heterogeneity C. Simultaneous production and consumption D. Perishability E. Divisibility

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 marketing B. Management-driven service C. Interactive communication D. Relationship marketing E. Servicescape

A. Internal marketing B. Management-driven service C. Interactive communication D. Relationship marketing E. Servicescape

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 higher B. Tolerance of situational factors will be higher C. Level of adequate service will be higher D. Zone of tolerance will be wider E. Level of adequate service will be lower

A. Level of desired service will be higher B. Tolerance of situational factors will be higher C. Level of adequate service will be higher D. Zone of tolerance will be wider E. Level of adequate service will be lower

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

A. Market-oriented ethnography B. Trailer calls C. Mystery shoppers D. Requirements research E. Customer panels

Customers' tolerance zones vary for different service attributes or dimensions. The_______________ the factor, the __________ the zone of tolerance is likely to be. A. More important; wider B. More important; narrower C. Less important; wider D. Less important; narrower E. More important; less important

A. More important; wider B. More important; narrower C. Less important; wider D. Less important; narrower E. More important; less important

_____ is a key determinant of whether an offering should be classified as a product or a service. A. Physicality B. Audience passivity C. Intangibility D. Perception E. Abstraction

A. Physicality B. Audience passivity C. Intangibility D. Perception E. Abstraction

Sometimes firms have service encounters that fail because of ___________, who intentionally or unintentionally act in a way that is disruptive, rude, or aggressive. A. Profitable customers B. Dysfunctional customers C. Friends D. Strangers E. Heterogeneous customers

A. Profitable customers B. Dysfunctional customers C. Friends D. Strangers E. Heterogeneous customers

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

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

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 Southwest 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. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

A. Reliability

Ally Bank advertises "24/7 live customer care" which means that customer can call by telephone and speak with a human being about their banking matters any time of day or night. Ally Bank customers never have to talk to a machine. With this service feature, Ally Bank is emphasizing the _________ dimension of service quality. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

For years, Allstate Insurance has used the slogan, "You're in good hands with Allstate." Which dimension of service quality is this Allstate promotional campaign emphasizing? A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

The _____ dimension of service quality is the caring, individualized attention given to customers. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

Which of the following is an intangible component of a car repair shop? A. Replacement parts B. Employee uniforms C. Barrel for storing recyclable motor oil D. The training the mechanic has received E. Customer waiting area

A. Replacement parts B. Employee uniforms C. Barrel for storing recyclable motor oil D. The training the mechanic has received E. Customer waiting area

Which of the following statements describes a marketing implication that results from the intangibility of services? A. Services cannot be inventoried. B. Services cannot be easily patented. C. Services cannot be readily displayed. D. The actual costs of a "unit of service" are hard to determine. E. All of the above.

A. Services cannot be inventoried. B. Services cannot be easily patented. C. Services cannot be readily displayed. D. The actual costs of a "unit of service" are hard to determine. E. All of the above.

To close the customer gap, the gaps model of service quality suggests that the _______ gaps need to be closed. A. Services marketing B. Service dimensions C. 4 Ps D. Provider E. Value

A. Services marketing B. Service dimensions C. 4 Ps D. Provider E. Value

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 family's safety, Rich decided to purchase a home security system from ADT Security Systems. Rich's expectation that an ADT home security system will protect his family and prevent future burglaries is influenced by his ____________. A. Social needs B. Derived service expectations C. Personal service philosophy D. Perceived service alternatives E. Adequate service expectations

A. Social needs B. Derived service expectations C. Personal service philosophy D. Perceived service alternatives E. Adequate service expectations

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 economies B. The growth in information-based technology C. Decreased competition in professional services D. The fact that manufacturing firms are placing increased emphasis on providing services E. None of the above

A. The decreasing importance of service industries to the U.S. and world economies B. The growth in information-based technology C. Decreased competition in professional services D. The fact that manufacturing firms are placing increased emphasis on providing services E. None of the above

Gina and Henry were having breakfast when they decided they wanted to have pizza and watch a movie that night. When she got home from work, Gina turned on her computer, logged on to the Netflix site, and chose the movie Moneyball to view via online video streaming. Next she logged on to her favorite pizza restaurant's Web site and ordered a large pepperoni pizza and a bottle of soda to be delivered at 6:45 p.m. Gina and Henry enjoyed their evening. 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 economies B. The decrease of human interaction as a result of widespread use of technology-based services C. The growth in the use of technology-based services D. Increased competition in the entertainment industry E. The fact that manufacturing firms are placing increased emphasis on providing services

A. The increasing importance of service industries to the U.S. and world economies B. The decrease of human interaction as a result of widespread use of technology-based services C. The growth in the use of technology-based services D. Increased competition in the entertainment industry E. The fact that manufacturing firms are placing increased emphasis on providing serviceshe use of technology-based services

Companies that emphasize acquiring new customers rather than retaining current customers are using _____ marketing. A. Transactional B. Developmental C. Proactive D. Relationship E. Acquisition

A. Transactional B. Developmental C. Proactive D. Relationship E. Acquisition

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 as a result of using _____ marketing. A. Transactional B. Developmental C. Proactive D. Relationship E. Acquisition

A. Transactional B. Developmental C. Proactive D. Relationship E. Acquisition

Key Energy Co. provides quality oilfield construction, drilling, and other services. The company's top management feels that stakeholders do not have a clear image of the company and are considering changing the name to clarify the organization's position in the market. Senior management is interviewing the company's salespeople to learn how they feel about selling Key Energy's services. As part of examining the corporate image, the company is using: A. Upward communication B. Market-oriented ethnography C. Lead user research D. SERVQUAL surveys E. Relationship surveys

A. Upward communication

Which of the following is NOT a source of customer expectations? A. Word-of-mouth communications B. Advertising C. Pricing D. Sales promises E. Target market

A. Word-of-mouth communications B. Advertising C. Pricing D. Sales promises E. Target market

Jamie 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. Jamie's recent haircut was in her _________ because while it didn't look great all the time, a quick brushing was all that was needed to fix it. A. Zone of tolerance B. Area of acceptability C. Area of impartiality D. Zone of endurance E. Zone of minimal variation

A. Zone of tolerance B. Area of acceptability C. Area of impartiality D. Zone of endurance E. Zone of minimal variation

_____ are used to report the findings from a service 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

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

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

B. Social bonds

In the first stage in the service 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

C. Defines the problem and research objectives

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. Event B. Socialization C. Encounter D. Arrangement E. Linkage

C. Encounter

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; narrower B. Lower; wider C. Higher; narrower D. Higher; wider E. Stays the same; stays the same

C. Higher; narrower

_____ 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

C. Relationship

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

C. Strangers

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 responsiveness B. Service quality is more inclusive than customer service C. It is correct to use the terms customer service and service quality interchangeably D. Customer satisfaction is influenced by perceptions of service quality E. None of the above statements about customer satisfaction and service quality is true

D. Customer satisfaction is influenced by perceptions of service quality

The _____ dimension of service quality refers to the willingness to help customers and provide prompt service. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

D. Empathy

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 economies B. The increase of government regulation of professional service industries C. The growth in database marketing D. Increased competition in professional services E. Professional firms are placing increased emphasis on providing services

D. Increased competition in professional services

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

E. Service expectation meeting and review

The Walt Disney Company dress code requires male cast members with mustaches or beards to trim their facial hair to no longer than one-quarter of an inch and be well-groomed. Male cast members without mustaches and beards must be clean shaven every day. All cast members must keep their nametags visible at all times, have no visible tattoos, and be professional in appearance. The Walt Disney Company's dress code reflects the _____ dimension of service quality. A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

E. Tangibles

Which of the following is an example of a tangible component provided by a hotel? A. Wake-up call B. Guest rooms C. Room service D. Express check-out E. Guaranteed reservations

A. Wake-up call B. Guest rooms C. Room service D. Express check-out E. Guaranteed reservations

If customers believe they have multiple service providers to choose from for a particular service, or if they can provide the service for themselves, their levels of adequate service are _________ those of customers who believe it is not possible to get better service elsewhere. A. Lower than B. Higher than C. More volatile than D. More stable than E. The same as

B. Higher than

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

D. Providing value comparable to the competition

All of the following are among the criteria for an effective service research program EXCEPT: A. Includes perceptions and expectations B. Includes measures of loyalty or behavioral intentions C. Measures priorities or importance D. Considers only qualitative research E. Occurs with appropriate frequency

D. Considers only qualitative research

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 department B. The relationship the customer has established with the store after buying several different appliances C. A salesperson's explanation of extended warranty service D. The welcoming atmosphere of the store E. All of the above

E. All of the above

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

E. Qualitative

When customers have been surprised by a service outcome that is much better or worse than expected, they tend to look for reasons and their assessments of the reasons can influence their satisfaction. These perceived causes of service success or failure are known as: A. Blame states B. Fairness assessments C. Perceived disadvantages D. Service advantages E. Service attributions

E. Service attributions