MKTG 470 Exam #1 Prep

True

Customers typically notice service when it falls outside the zone of tolerance.

Normative "should" Customer Expectation

"As expensive as this hotel is, it better have excellent service."

Ideal, or desire, Customer Expectation

"Everyone says the Bahamas is the best vacation experience they have ever had and I want to go there for my birthday."

Minimum Tolerable Customer Expectation

"I expect the service to be terrible but I come because of the low pricing."

Acceptable Customer Expectation

"I expect this hotel to provide an adequate service."

Experienced-Based Norms Customer Expectation

"Most of the time this restaurant is really good, but service takes a while when it gets busy."

Steps in the consumer decision making process (CDMP)

1.) Stimulus=> one or more of your 5 senses are stimulated 2.) Need/Problem Recognition=> ex: open the fridge, no food, goes shopping 3.) Information Search=> all customers research a product or info from experience 4.) Evaluation of Alternatives=> compare/contrast alternatives 5.) Purchase/No Purchase (Decision)=> make a decision 6.) Post-Purchase Evaluation=> cognitive dissonance (whether you've made the right choice); repeat purchases, brand/customer loyalty

Derived Service

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.

Remote

A service encounter that occurs without any direct human contact is a(n)

True

According to the concept of derived services, the value derived from physical goods is really the service provided by the good, not the good itself

Multi-Segment/Differentiated

two or more groups are a potential customer

Her emotional state

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:

True

Because the production and consumption of services is simultaneous, the mass production of services is difficult.

Gap 1

Customer's Service Expectations vs MNGT Perception of Customer Expectations; hardest gap to close because it deals with the customer

Gap 5

Customer's Service Expectations vs Perception of Service Performed; hardest gap to connect back to gap 1; customer's expectations compared to the service performed

All of the above; courtesy of the lawyer and staff, how the lawyer dresses, the lawyer's use of humor and empathy, and diplomas on wall

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?

More important; narrower

Customers' tolerance zones vary for different service attributes or dimensions. The _________________________ the factor, the ____________________________ the zone of tolerance is likely to be.

False

Explicit service promises are defined as any non-personal, paid-for communication between the customer and the seller.

Marketing Environment- (External Environmental Factors):

Demographics, Socio-cultural, Competition, Economic, Technology, and Political/Legal

False

Process checkpoint evaluations are commonly used in service industries in which the services are provided quickly on a one-time only basis.

Gap 4

Extron Electronics sells coaxial cables for connecting computers to all types of peripheral devices like printers, modems, and fax machines. For the benefit of its customers, Extron provides a laminated card with pictures of all the possible cable connections that a customer could need. With this card, a customer can order from one to any number of connectors with as many feet of cable as is needed. Orders can be placed by calling a toll-free number, sending an email, or using the company's website. Company reps are also available 24-hours a day in case the customer is not sure which drawing on the card matches his or her needs. By integrating its services marketing communications, Extron is closing provider ___________________________ of the gaps model of service quality.

The growth in the use of technology-based services

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?

Process

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.

Physical evidence

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.

False

Importance/performance matrices typically combine information about customer perceptions of service encounters with a company with how the company rates in each of the five service dimensions.

False

Integrating Customers Levels of Expectations with the Zone of Tolerance, Acceptable Expectations would be the same as the floor in the Zone of Tolerance also known as Adequate Level of Services.

Word-of-mouth communication

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 told her it was a great class. 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:

Uncontrollable situational factor

John's flight on United Airlines from Chicago to San Francisco departed 2 hours late because of a snowstorm in Chicago. The snowstorm that delayed John's flight is a(n):

Uncontrollable situational factor

Kelly dined in a family-style restaurant in Mobile, Alabama, shortly after a hurricane had brushed the coastal area. The server apologized because there were no iced drinks available. The water supply had been contaminated by the storm's high tides. The water system was fine now, but after repairing other minor damages, the workers had not yet had a chance to clean the ice machine. Kelly, a long-time resident of Mobile, understood that ______________________ meant she would need to modify her service expectations.

True

Lead user research brings in customers who are opinion leaders or innovators and asks them what requirements existing products or services are not currently meeting

Gap 4

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 your. 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.

Explicit service promise

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. Oakley Millwork's policy is an example of a(n):

Service encounter

On a recent trip to Disneyland, Rose had her picture taken with Minnie Mouse. After the picture was taken, Minnie Mouse signed Rose's autograph book. Rose's interaction with Minnie Mouse was actually a(n) _____________________ with Disneyland.

False

One of the benefits of conducting marketing research on the Internet is the composition of the survey samples

False

Provider gap 1 is widened when the service provider promises delivery on Monday when in fact there is no way the service provider can deliver until the following Thursday.

True

Provider gap 2 is the difference between development of customer-driven service standards and actual service performance by company employees

Gap 4

Service Delivery vs External Communications; between delivery and communication; easiest gap to close

Gap 3

Service Delivery vs Service Quality Specifications; customer/company standards

Gap 2

Service Quality Specifications vs MNGT Perception of Customer Expectations; what customers expect

Developing customer-defined service standards

Service companies can close provider gap 3 by doing any of the following EXCEPT: a. teaching customers to perform their roles appropriately b. developing customer-defined service standards c. motivating intermediaries to meet company service goals d. synchronizing supply and demand e. empowering employees

False

Technology is creating a demand for ethnocentric services

False

The United States is the largest exporter of services into the global market and is the 5th largest importer of services from the global market.

True

The absence of customer-defined standards will broaden provider gap 2.

Difference between customer expectations and perceptions

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

True

The central focus of the gaps model of service quality is to close the gap between customer expectations and perceptions.

Spontaneity

The last time Lia went shopping at Nordstrom's department store she had a very pleasant experience. When she entered Nordstrom's, she asked a sales associate named Sarah for assistance finding a pair of jeans, a pair of shorts, a skirt, and matching tops. Sarah enthusiastically agreed to help and treated Lia like royalty throughout her two-hour shopping trip. Sarah stayed with Lia the entire time she was in Nordstrom's and showed her a number of different styles of jeans, shorts, skirts, and tops. Sarah brought Lia additional items while she was in the fitting room and offered her advice on accessorizing her outfits. After the sale, Sarah thanked Lia for her purchases. Lia's experience at Nordstrom's is an example of which type of service encounter incident?

Normative

The weekend cruise cost Jason Riggs $800 dollars. Before leaving on the cruise, Riggs 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?

Rigorous recording of numbers and types of complaints through many channels

To be effective, complaint solicitation requires:

Post transaction surveys

Trailer calls are also called:

Product, Place(distribution), Price, Promotion, People, Physical Evidence, and Process

What are the 7 Ps of the service marketing mix?

Explicit service promises, Implicit Service Promises, Word-of-mouth communication, and Past Experience

What are the four factors that influence desired(and predicted) service?

Physical evidence

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.

Trailer calls

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 merchandize/gift shop, intention to return, and willingness to recommend to friends. Which of the following types of research did Marriott conduct?

All of the above; the welcoming atmosphere of the store, a late night call to the store's service department, the relationship the customer has established with the store after buying several different appliances, and a salesperson's explanation of extended warranty service

Which of the following incidents is likely to influence a customer's perception of service quality of an appliance store?

Electronics

Which of the following industries would be ranked highest by the American Customer Satisfaction Index (ACSI)?

Target market

Which of the following is NOT a source of customer expectations?

All of the above

Which of the following is an example of the people element of an airline company's services marketing mix? A. Pilots B. Flight attendants C. Customers D. Baggage handlers E. All of the above

Customer satisfaction is influenced by perceptions of service quality

Which of the following statements about customer satisfaction and service quality is true?

Employees are often reluctant to integrate technology into their work lives

Which of the following statements describes how consumers and employees are responding to technology-based services?

The marketing research done by the motel chain includes insufficient research about what its target market wants

Which of the following would result in a broadening of provider gap 1?

Because the assurance dimension of service quality inspires trust and confidence

Why would a blood bank, which pays people for their blood donations and then sells this blood to hospitals, use the name Blood Assurance?

Implicit service promise

Zoe was looking for a kennel to board her cocker spaniel for 2 weeks while she goes on vacation. There are 2 kennels close to her home. One charges $50 per week and the other charges $125 per week. Zoe 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. Zoe's service expectation level was determined by a(n):

Reliability

___________________________ has consistently proven to be the most important determinant of service quality.

Zone of tolerance charts

_______________________________________ 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.

Reliability

ability to perform the promised service dependably and accurately; ex: FedEx's service positioning around this has been reflected in phrases such as, "when it absolutely, positively has to get there," and "the world on time"

Mass Market/Undifferentiated

all customers are a potential customer

Variability

also known as heterogeneity, service is identical from one service to the next; training to reduce variability; service differentiation

Perishability

also known as storability or inventory, services are perishable; ex: can't get hair done if hairstylist is on vacation

Tangibles

appearance of physical facilities, equipment, personnel, and communication materials; representing the service physically; ex: Jiffy Lube, a car maintenance and servicing chain in the U.S. emphasizing both responsiveness and tangibles- providing fast, efficient service and a comfortable, clean waiting area

Inseparability (Simultaneous Production/Consumption)

cannot separate; as the service is being produced the service provider has to be there as it's being consumed; service and service provider cannot be separated, both have to be there; ex: you need a pilot to fly the airplane

Inseparability

cannot separate; ex: cannot separate the skills from the chef

Intangibility

cannot touch the service itself, only touch the result; cannot separate the product from the service provider; ex: getting hair done, education (knowledge)

Empathy

caring, individualized attention given to customers; treating customers as individuals; ex: employees knowing customers by name, small firms are perceived as more knowledgeable about customers' specific issues and needs and are able to offer, more customized services

Assurance

employees' knowledge and courtesy and their ability to inspire trust and confidence; like securities brokers, insurance agents, lawyers, and counselors; ex: Allstate ("You're in good hands with Allstate"), Prudential ("Own a piece of the rock"), and FedEx ("Relax, it's FedEx")

Niche

modify a product to satisfy a certain group's needs

Single/Concentrated

one group is a potential customer

Skimpflation

reduction in staff; reduction in services (from article)

Perishability

refers to the fact that services cannot be saved, stored, resold, or returned

Market Segmentation

the creation of potential customer groups (segments) based on one or more characteristics/ variables such that consumers are very similar (homogenous) within a group

Responsiveness

willingness to help customers and provide prompt service; ex: Geek Squad's 24-hour, 365 days-per-year technical assistance for computers, tablets, and other related equipment; reputation for responsive, quick service