Services marketing test 3
Factors that work to increase the profit growth from loyal customers include ____________. -Acquisition costs can be amortized over a longer period -Profit from reduced customer service costs -Profit from referrals to others -Profit from increased purchases -AIl of the above
All of the above
Which of the following is a common reason for the high failure rate of CRMs? -Challenges with data integration -Inadequate support from management -Viewed as a technology initiative -Lack of customer focus -All of the above
All of the above
When a lawyer feels a conflict between what she is asked to do and her own personality, orientation or values she is experiencing ________ conflict. -Organization/client -Inter-client -Person/role -Vertical -Horizontal
Person/role
Firms must ensure that employees have the skills required to deal with jay customers that shout, are insulting, and likely curse at them. These types of jay customers are known as: -Belligerents -Cheats -Deadbeats -Rule Breakers -Hooligans
Belligerents
On a recent concert tour, the Foo Fighters sang a number of classic songs from their past albums, in addition to playing songs from their newest album. By singing both old songs to satisfy older audience members and songs from its more recent album to satisfy younger fans, the Foo Fighters were trying to reduce __________ conflict. -Demographic -Person/role -Client/client -heterogenous -Organization/client
Client/client
Service quality is a high standard of performance that consistently meets _________________. -customer expectations -productivity goals -profit goals -low wait times -management expectations
Customer expectations
Regency Dry Cleaners operates in a medium-sized community. Its customers all live within a 20-mile radius of the cleaners. Regency provides its regular customers with several alternative pickup and delivery schedules rather than a single weekly pickup and delivery. Regency's driver will pick up clothes in the morning and deliver them back clean in the afternoon if that is what a customer needs. Regency has found the increase in its total number of customers because of this service more than pays its additional operation expenses. Regency has built its customer retention strategy around: -Structural bonds -Social bonds -Focused marketing -Customization bonds -Niche marketing
Customization bonds
Low margins, a focus on attracting new customers, and having poorly paid workers with low skill levels are common outcomes for which cycle? -Bicycle -Cycle of failure -Cycle of life -Cycle of success -Cycle of Mediocrity
Cycle of failure
The _____________ is commonly found in large, bureaucratic organizations with standardized service where employees have little freedom in narrow and repetitive jobs. -Cycle of failure -Cycle of Mediocrity -Cycle of Success -Tricycle -Cycle of life
Cycle of mediocrity
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 the _____ gap of service quality. -Knowledge -Policy -Delivery -Capacity -Fragmented
Delivery
The Gaps Model is used to ____________. -decrease customer satisfaction -reduce productivity problems -diagnose and address service quality problems -enhance a firm's profitability -help people buy Gap clothes
Diagnose and address service quality problems
While being trained at Disney University in Orlando, Florida, Disney 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 of Disney employees to always maintain composure. -Physical -Mental -Personal -Accountable -Emotional
Emotional
A high-end restaurant wants customers to enjoy the five-course meal, order multiple drinks, however it strives to have a quicker table turnover than most of its competitors. It has well-spaced tables and nice lighting, but is not sure of the type of music to play. Based on the details you know about the restaurant, which type would be best? -No music -Slow tempo -Fast tempo -Loud -Hip hop
Fast Tempo
When designing the servicescape it is important to take all elements into account. There is an art and science to designing an effective servicescape that ensures all design elements are implemented appropriately. This perspective is known as: Ambient conditions -Environmental design -Holistic view -Structured design -Employee centric view
Holistic view
Service companies can help close the communication gap by: -Improving communications between sales and operations departments -Making sure customers understand their role and responsibilities -Using a systematic new-service development process -Eliminating employee role ambiguity -Creating customer defined standards
Improving communications between sales and operations departments
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: -Relationship management -Interactional fairness -Service equity -Functional fairness -Distributive fairness
Interactional fairness
_____________ focuses on the interpersonal treatment received by the consumer during the complaint process. -Functional fairness -Service equity -Interactional fairness -Procedural fairness -Outcome fairness
Interactional fairness
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 "ust 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? -Customer panels -Market-oriented ethnography -Trailer calls -Mystery shoppers -Requirements research
Mystery shoppers
Kelso Massage Therapy promises its clients that there wait for a massage will be less than fifteen minutes or the massage is free. What type of service recovery tool is Kelso Massage Therapy using? -Implement the service paradox -Act proactively not reactively -Do it right the first time -Offer a guarantee -Respond quickly
Offer a guarantee
Many service providers think that when a customer complains that is a bad thing. While a service failure is not ideal, effective complaint handling and service recovery is better than having a customer not complain, since it allows the firm to: a. Reduce customer churn b. Increase switching costs c. Incur contractual penalties d. Have management step in resolve issues e. Save money by offering lower quality services
Reduce customer churn
_____________ are often considered a part of the revenue equation for customers. In addition, there value is often difficult to calculate, however they can be very important for firms. -Cost of goods sold -Cost of goods sold -Churn -Margins -Referrals
Referrals
Marketing activity designed to create extended relationships with customers is called _____________. -relationship marketing -extended marketing -transactional marketing -customer service marketing -loyalty programs
Relationship marketing
Which of the following is an ambient condition? -Facility layout -Displays -Price -Scent -Location
Scent
When a customer of Twin Cities Rehabilitation Center complained that his therapist was one hour late for their appointment, the owner of the center gave the customer credit for one free hour of therapy. The action taken by the owner is an example of ___________. -Service recovery -Service paradox -Service inconsistency -Outcome fairness -Procedural recovery
Service recovery
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 -Service dilemma -Baker's dozen paradigm -Service quandry -Halo effect
Service recovery paradox
The preying mantis and shipping containers used at the container park in Las Vegas are important elements of the: -service vaults -service planes -servicescapes -servicetomies -service boxes
Servicescapes
One of the Four Seasons Hotel's customer-defined standards is "staff will speak to guests in an attentive, natural, and courteous manner." This is an example of a(n) ______________ customer-defined standard. -Soft -Informal -Measurable -Responsive -Intangible
Soft
_______________ customer-defined standards are opinion-based measures and cannot be directly observed. -Soft -Informal -Responsive -Intangible -Measurable
Soft
A ________ environment should be designed with low arousal and high pleasantness. -Spa -Skiing -Parasailing -Fitness club -Kickboxing
Spa
From the customer's perspective, which of the following is likely the most important aspect of a service? -Efficient handling of special requests. -Management's responsiveness to occurrences of failure -Timely delivery of service. -A price premium. -The encounter with service staff.
The encounter with service staff
Which of the following services best represents how little complaining consumers actually do? -A public bus company -Land's End -Auburn Football -Hampton Inn -FedEx
A public bus company
Managers often omit which of the cost variables of high turnover/low pay? -Income lost from customers turned off by negative word of mouth -All of the above -Cost of constantly attracting new customers -Low productivity of inexperienced workers -Cost of constant recruiting
All of the above
Potential ways to reduce conflict and break down the barriers between departments include _____________. -All of the above -Having management's commitment -Establishing cross-departmental and cross-functional delivery teams -Transferring individuals internally -Establishing cross-departmental and cross-functional project teams
All of the above
In the Mehrabian-Russell stimulus-response model, the typical outcome variable is ___________ or _____________ of an environment. -control: sensibility -service; repurchase -approach; avoidance -control; reproach -control; avoidance
Approach; avoidance
Loyal customers often use more of a firms services, require less operating costs, refer others to use the service and are willing to pay a price premium for the service. Taken collectively, loyal customers: -Are more costly to serve over time -Look for more discounts than new customers -Are more profitable over time -Require more hands on attention -More likely to leave for a new service provider
Are more profitable over time
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? -Reliability -Responsiveness -Assurance -Empathy -Tangibles
Assurance
Frontline service employees are referred to as: -Gatekeepers -Boundary spanners -External service providers -Control centers -Service encounter experts
Boundary spanners
When the JetBlue flight attendant opened the emergency exit of the plane while on the tarmac, and slid down the emergency exit slide, that person was likely experiencing ___________ conflict. -Organization/client -Inter-client -Vertical -Horizontal -Person/role
Person/role
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: -Consider customer requirements -Offer relevant employee training -Consider the services marketing triangle -Go **** yourself -Eat shit
Consider customer requirements
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: -Will not cause any problems -Could cause resentment -Simply increases the importance of word-of-mouth communication -Creates across the board customer enhancement -Is not profitable
Could cause resentment
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 exemplified here? -Use procedural fairness -Make the service fail safe -Cultivate relationships with customers -Treat customers proactively -Learn from lost customers
Cultivate relationships with customers
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: -Usage of websites -Current and/or future profitability -Volume of calls made -User marital status -Amount of referrals
Current and/or future profitability
_____________ 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. -Accountable -Emotional -Mental -Personal -Physical
Emotional
If a Finish Line sales associate replaces shoes at no cost to the client, it is an example of ____________. -centralized decision-making -service theft -employee empowerment -service sabotage -rule setting
Employee empowerment
People are a part of the service environment. It is important to remember that _________ are a part of the service environment. -Employees and customers -Customers -Employees and their families -Customers and their families -Employees
Employees and customers
People are a part of the service environment. It is important to remember that the appearance and behavior of ________ can impact the service environment in a positive or negative manner. -Employees -Customers -Employees and customers -Employees and their families -Customers and their families
Employees and customers
At Pronto, 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, Pronto is: -Empowering employees -Developing service oriented internal processes -Including employees in the company vision -Promoting teamwork -Measuring and rewarding strong service performers
Empowering employees
Universal Credit Card Services (UCCS) 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, UCCS is: -Empowering employees -Enveloping service-oriented internal processes -Promoting teamwork -Including employees in the company's vision -Measuring and rewarding strong service performers
Empowering employees
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 the ________ gaps or service quality -Perceptions -Shipping -Customization -Communication -Knowledge
Knowledge
The large glass front, coupled with clean exterior lines of an Apple store, help make it stand out from most other stores when people walk past. These elements would be which dimension of the service environment? -Store layout -Social dimensions -Interior facilities -Exterior facilities -Interior displays
Exterior facilities
A high-end restaurant wants customers to enjoy the five-course meal, order multiple drinks, however it strives to have a quicker table turnover than most of its competitors. It has well-spaced tables and nice lighting, but is not sure of the type of music to play. Based on the details you know about the restaurant, which type would be best? -Fast tempo -Loud -Dueling banjos -Hip hop -No music
Fast tempo
Jimmy Johns posts the thank you notes from community partners on the walls to let employees and customers know that the restaurant is active in the community. It is a way to help motivate employees by showing them that their job impacts the community. This is an example of which type of reward? -Job content -Feedback and recognition -Fully focused marketing -Goal achievement -Premiere marketing
Feedback and recognition
Every time Bob and Mari stay at a Hilton Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Hilton is using _____ to implement its retention strategy. -Financial bonds -Social bonds - Customization bonds -Structural bonds -Security bonds
Financial bonds
A store has shelves that are too high for most customers to reach items off the top. Also, the aisles are very narrow, causing may people to bump carts and congestion is common. This store has an ineffective floorplan and poorlv implemented equipment. which has caused ____________ issues. -Spatial -Artifact -Practical -Functionality -Hue
Functionality
A store has shelves that are too high for most customers to reach items off the top. Also, the aisles are very narrow, causing may people to bump carts and congestion is common. This store has an ineffective floorplan and poorly implemented equipment, which has caused __________ issues. -Hue -Functionality -Practical -Spatial -Artifact
Functionality
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. -Informal -Measurable -Formal -Hard -Quiz
Hard
Emotional labor is when employees ____________. -Have to keep their emotions under control at the work place -Have a gap between what they feel inside, and what management expects them to display to their customers -Feel happy all the time because they enjoy their jobs -Find it hard to be emotional because they are so overworked -Are emotionally stressed by all the demands of their jobs
Have a gap between what they feel inside, and what management expects them to display to their customers
Once 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 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. The employee did not treat Mariko with: -Functional fairness -Procedural fairness -Interactional fairness -Service equity -Situational fairness
Interactional fairness
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: -Shows the absence of a customer focus -Illustrates the importance of employee empowerment -Does not fit the service provider's image -Is very meaningful -Is unconditional
Is very meaningful
The Oaks at Ojai is an award-winning destination spa in California. Two thirds of The Oaks' guests are repeat visitors who return to the spa for a fun and relaxing service experience unsurpassed by other spas. Just before heading home, each guest is asked to complete a questionnaire and provide feedback about his or her experience. Questions are specific and management meets weekly to review and discuss the improvements suggested by guests. Each guest who completed a questionnaire receives a letter of thanks with a promise to follow up on any issues mentioned By conducting research and focusing on customer relationships, The Oaks is closing the _______________ of service quality. -Delivery -Drivability -Perceptions -Customization -Knowledge
Knowledge
The __________ is the difference between what service providers believe customers expect and customers' actual needs and expectations. -Service quality gap -Knowledge gap -Internal communications gap -Interpretation gap -Chewacla road gap
Knowledge gap
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? -Learn from recovery experience -Act quickly -Treat customers reactively -Encourage and track complaints -Make the service fail safe
Learn from recovery experience
Which of the following fragrances would you use to boost energy levels and help make customers feel happy and rejuvenated? -Lemon -Sea breeze -Lavender -Eucalyptus -Rose
Lemon
_____ concerns the results that customers receive from their complaints. -Functional fairness -Procedural fairness -Interactional fairness -Service equity -Outcome fairness
Outcome fairness
The customer segment in the customer pyramid that sees high value in a firm's offer, spends more over time while costing less to maintain, and spreads positive WOM is called ___________. -Lead -Platinum -Iron -Gold -Titanium
Platinum
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 the _________ gaps of service quality. -Policy -Marketing -Delivery -Information -Perceptions
Policy
The Oaks at Ojai is an award-winning destination spa in California. Two thirds of The Oaks' guests are repeat visitors who return to the spa for a fun and relaxing service experience unsurpassed by other spas. The owner and staff of The Oaks are committed to delivering the best service possible. Each employee is carefully selected and trained every event happens with precision, guest questionnaires are thoroughly reviewed, and improvements suggested by guests are implemented. By having service standards that reflect what customers expect. The Oaks at Ojai is closing which gap or service quality. -Policy -Customization -Drivability -Information -Perceptions
Policy
________ Gap is the difference between company understanding of customer expectations and the development of customer-driven service designs and standards. -Knowledge -Delivery -Policy -Perceptions -Communication
Policy
In addition to compensation, customers expect _____________. In other words, they expect fairness in terms of policies, rules and timeliness of complaint process. -Outcome fairness -Service equity -Procedural fairness -Interactional fairness -Functional equity
Procedural fairness
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: -Service equity -Outcome fairness -Functional equity -Procedural fairness -Interactional fairness
Procedural fairness
Rather than treating all of its customers the same, FedEx categorized its customers internally as "the good, the bad, and the ugly" based on their ____________. -Attitude toward international shipping -User characteristics -Volume -Proximity to a store -Profitability
Profitability
Harrah's Entertainment, a casino hotel company, has a company incentive program weighted toward team results. A relatively small percentage of compensation is based on individual goals. Everyone in the organization is rewarded based on customer service scores. Harrah's Entertainment is: -Developing service-oriented internal processes -Promoting teamwork -Including employees in the company's vision -Creating employees as customers -Empowering employees
Promoting teamwork
The La La Beauty Spa wants its guests to have the most relaxing experience possible when they visit. It plays serene music and has pleasant lighting. It has also opted to infuse the smell of lavender into the building since it is: -Balances people emotions -Disinfecting -Relaxing and calming -Cheaper than other scents -Stimulating and energizing
Relaxing and calming
Fast food restaurants like McDonald's, Chick-fil-a, and many more use the color red in their logos and branding elements. The color red is effective for these types of businesses because they: -Want customers to be calm when ordering -Want customers to be relaxed while ordering -Require high-involvement decisions -Require low-involvement decisions -Balls
Require low-involvement decisions
The empowerment of employees makes which of the following service recovery strategies easier to implement? -Encourage and track complaints -Respond quickly -Learn from lost customers -Make the service fail safe -Treat customers fairly
Respond quickly
Betina 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. Betina has since learned that this kind of service is commonplace at her bank. She knows the bank focuses on the ___________ dimension of service quality. -Reliability -Tangibles -Responsiveness -Empathy -Assurance
Responsiveness
When measuring the value of a customer, firms typically consider two things: -Costs and expenses -Revenues and write offs -Revenues and costs -Margins and referrals -Time and location
Revenues and costs
The _____ gap is the difference between customer expectations and perceptions. -Service quality -Manufacturing -Value -Quality -Management
Service quality
The _________________ refers to the sometimes-observed effect that customers who experience a service failure and then have it resolved to their full satisfaction are more likely to make future purchases than are customers who have no problem in the first place. -referent contribution paradox -referent renewal paradox -referent acquisition paradox -service renewal paradox -service recovery paradox
Service recovery paradox
Service environments, also called _____________ relate to the style and appearance of the physical surroundings and other experiential elements encountered by customers at service delivery sites. -servicetomies -service boxes -servicescapes -service planes -service vaults
Servicescapes
It is important that firms have clear __________ or consumers may have anxiety or uncertainty about how to proceed and obtain the desired service. -Spatial layouts -Web integration -Signs and symbols -Functionality -Dress codes
Signs and symbols
When traveling, many people are anxious about the trip. They are worried about missing a flight or taxi, or will the hotel be comfortable. Thus, it is important that airports and hotels have clear ____________ to help facilitate the person through the servicescape. -Functionality -Spatial layouts -Web integration -Dress codes -Signs and symbols
Signs and symbols
Elmer Jennings is a government auditor and works for the Bracken and Leach firm. He is the one who checks to see that city and county governments have complied with accounting principles. As an auditor, Jennings sometimes will spend six weeks in one office while he checks its accounting records. The closeness of the relationship that Jennings builds with the government employees he works with was realized by Bracken and Leach when Jennings 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. -Social -Transactional -Reliability -Economic -Confidence
Social
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 Airlines' research provides feedback on _________ measurements. -Soft -Informal -Formal -Hard -Basic
Soft
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. -Measurable -Soft -Informal -Responsive -Hard
Soft
The floorplan of a facility, coupled with the type of furnishings, equipment, and how things are arranged is known as: -ADA compliant -Artifacts -Servicescape -Functionality -Spatial layout
Spatial layout
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 staffs 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. -Heterogeneity -Social bonds -Customization bonds -Financial bonds -Structural bonds
Structural 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: -Fixed costs -Retained costs -Financial inertia -Switching costs -Opportunity costs
Switching costs
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: -Financial inertia -Opportunity costs -Switching costs -Fixed costs -Retained costs
Switching costs
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: -Extraneous expenses -Fixed costs -Opportunity costs -Retained costs -Switching costs
Switching costs
Which of the following is an example of a poka-yoke? -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 -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 be confused with another's -The customer refused to pay the delivery fee because the package arrived two days late -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
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 be confused with another's
Which of the following is the BEST example of outcome fairness? -The hotel refused to help a man find a room for the night when he missed his flight -The restaurant charged the man for two meals when he sent back his overcooked steak and asked for a new one -The sign posted on the wall stated the hair salon would not style the hair of anyone who did not have an appointment -The small movie theater gave all patrons two free movie tickets for the night of their choice when the movie projector broke midway through showing the newest Brad Pitt movie
The small movie theater gave all patrons two free movie tickets for the night of their choice when the movie projector broke midway through showing the newest Brad Pitt movie
