Service MKT

For which of the following service providers would a guarantee be inappropriate?

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

Which of the following can influence how satisfied a customer is with a service?

A. Customers' emotions B. Product features C. Customers' perception of service quality D. Uncontrollable situational factor E. All of the above (ANSWER)

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. (ANSWER)

Which of the following factors is NOT a factor leading to provider gap 3?

Absence of customer-driven standards

The development of strong customer relationships is strongly influenced by:

Barriers the customer faces in leaving a relationship

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.

Bucket theory of marketing

All of the following are among the criteria for an effective service research program EXCEPT:

Considers only qualitative research

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:

Consumer emotions

A primary goal of firms at the friendship stage of the relationship is:

Customer retention

Product and service features that are unexpected and surprisingly enjoyable and that point to achieve the desire service expectation are known as:

Delights

Last week, Francine bought a 6-month membership package at Planet Fitness. She plans to exercise at Planet Fitness 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, Francine hopes to lose 20 pounds, tone and strengthen her muscles, improve her cardiovascular fitness and look and feel more attractive. Francine's expectations for her health and physical appearance reflect her _________ level of service for Planet Fitness.

Desired

The central focus of the gaps model of service quality is the:

Difference between customer expectations and perceptions

Which of this is a strength of the JetBlue Bill of Rights:

Eliminates uncertainty for passengers

The _____ dimension of service quality is the caring, individualized attention given to customers.

Empathy

Customer _____ are beliefs about service delivery that function as standards against which performance is judged.

Expectations

Tom Grantham, a U.S. citizen, decided to outsource the preparation of his personal income taxes to a company in India. After he emailed his earnings and scanned receipts, his tax return was completed in two days at a cost of $50 - about one-third of what a U.S. firm like H&R Block charges. However, he had to file his return as "self-prepared," since it was not prepared by a U.S. accountant. Using a foreign service provider may require customers to reset their:

Expectations

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.

Gap 1

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 experiences with the two golf instructors illustrates the _____ of service.

Heterogeneity

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.

Higher than

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.

Higher;narrower

A company that uses a four-tier scheme to segment is customers by profitability:

Identifies customers who need different sorts of attention

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(n) _____ made by the locations that the customer will be more likely to find exotic cuisine and better trained servers at the downtown Atlanta restaurant.

Implicit service promise

________ refers to the fact that a complaining customer expects to be treated fairly, with care and honesty.

Interactional fairness

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.

Level of adequate service will be higher

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?

Lost customer research

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?

Mystery shoppers

In addition to the elements of the traditional marketing mix, the expanded mix for services includes:

People, physical evidence and process

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.

Perishability

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:

Personal service philosophy

Which element of the services marketing mix is influenced by the health inspector's report that is prominently displayed in all restaurants?

Physical evidence

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 customers. 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.

Qualitative

Hertz Car Rental has a customer loyalty program called Gold Plus Rewards that rewards members with one point per dollar spent on qualifying rentals. Free weekend rentals can be earned for as few as 500 points. By having a customer loyalty program, Hertz is using __________ marketing.

Relationship

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

Relationship

The _____ of a customer is a concept that looks at customers from the perspective of their lifetime revenue or profit contributions to a company.

Relationship value

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.

Reliability

The _____ dimension of service quality refers to the willingness to help customers and provide prompt service.

Responsiveness

PSE&G, a utility company located in New Jersey is conducting a service 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?

SERVQUAL surveys

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:

Service expectation meeting and review

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

Service recovery paradox

The core offerings of hospitals, hotels, and banks are primarily deeds and performances and therefore, are:

Services

Every Thursday afternoon for almost twenty years, Jasmine and Tanya 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 Jasmine and Tanya still find it a convenient place to meet and share news about friends and relatives. Jasmine and Tanya's relationship with the manicure salon exemplifies how a service provider uses _____ to support its customer retention strategy.

Social bonds

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:

Switching costs

_____ is a key determinant of whether an offering should be classified as a product or a service.

Tangibility

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.

Tangibles

Phone encounters are a type of ___________ in which tone of voice, employee knowledge and effectiveness of handling customer issues are important criteria for judging quality.

Technology-mediated encounter

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 focus on:

Upward communication

People who complain can be categorized as:

Voicers, irates, activists and passives

Which of the following products is LEAST high in experience qualities?

Wedding Dress

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):

Word-of-mouth communication

The extent to which customers recognize and are willing to accept variation in service performance is called the:

Zone of tolerance