Service Marketing
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.
Servicescape
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?
Increased competition in professional services
A consumer who is more likely to engage in negative word-of-mouth than any other type of consumer is called a(n):
Irate
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.
Adequate
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?
Assurance dimension
A primary goal of firms at the friendship stage of the relationship is:
Customer retention
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 ____________.
Derived service expectations
The central focus of the gaps model of service quality is the:
Difference between customer expectations and perceptions
Sometimes firms have service encounters that fail because of ___________, who intentionally or unintentionally act in a way that is disruptive, rude, or aggressive.
Dysfunctional customers
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
The ability to connect to the Internet through a modem using the same wires that transmit cable television was an example of a _____ when it was first introduced.
Major innovation
At the _____ stage of the service development and innovation process, the new service is made available to a limited number of its potential customers.
Market testing
_____ concerns the results that customers receive from their complaints.
Outcome fairness
Lillie worked as a caterer when she was in college. She was highly critical of the caterer and its staff that her parents selected for their 50th anniversary party. Lillie's attitude about how a caterer should act reflects her:
Personal service philosophy
The final stage of the new service development process is:
Post introduction evaluation
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:
Procedural fairness
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
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:
Service attributions
It is often useful to create a service blueprint at the ___________ stage of the service innovation and development process.
Service concept development and evaluation
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
______ are the most common types of new services.
Service improvements
________ refers to the actions taken by an organization in response to a service failure.
Service recovery
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 dimension
Which of the following is NOT a source of customer expectations?
Target market
At the partnership stage of the customer relationship, the firm is most concerned with:
The enhancement of its relationship with the customer
A consumer is more likely to complain when:
The level of ego involvement in the purchase is high
What is an intangible component of a car repair shop?
The training the mechanic has received
Companies that emphasize acquiring new customers rather than retaining current customers are using _____ marketing.
Transactional
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:
Upward communication
A business traveler checked into a Hyatt hotel and was given a room next to the elevator. When he turned on the television, he was greeted with a Hyatt customer service survey. He immediately took advantage of having the survey to let Hyatt know how unhappy he was with his room location. The business traveler would most likely be classed as a(n) _____ type.
Voicer
People who complain can be categorized as:
Voicers, irates, activists and passives
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
Retention strategies based on social bonds:
Build long-term relationships through social and interpersonal as well as financial bonds
What is the provider gap 4?
Communication Gap: the difference between service being delivered and the service being advertised
All of the following are among the criteria for an effective service research program EXCEPT:
Considers only qualitative research
The _____ gap is the difference between customer expectations and perceptions
Customer
_____ service is the level of service the customer hopes to receive.
Desired
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
Financial bonds
Provider _____ is the difference between customer expectations of service and company understanding of those expectations.
Gap 1: listening gap
Provider ______ is the difference between company understanding of customer expectations and the development of customer-driven service designs and standards
Gap 2: service design and standards gap
Provider _____ is the discrepancy between the development of customer-driven service standards and actual service performance by company employees
Gap 3: the Service Performance Gap
What is an example of a tangible component provided by a hotel?
Guest rooms
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.
Heterogeneity
_____ is a key determinant of whether an offering should be classified as a product or a service.
Intangibility
To close the customer gap, the gaps model of service quality suggests that the _______ gaps need to be closed.
Provider
In acquaintance relationships, firms generally focus on:
Providing value comparable to the competition
_____ research is conducted to clarify problem definition and prepare for more formal empirical research.
Qualitative research
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.
Relationship
_____ marketing focuses on keeping and improving current customers, rather than concentrating on acquiring new customers.
Relationship
Which of the following statements about service failure and service recovery is true?
Resolving customer problems effectively has a strong impact on customer satisfaction and loyalty
The _____ dimension of service quality refers to the willingness to help customers and provide prompt service.
Responsiveness dimension
Which of the following statements about relationship surveys is true?
SERVQUAL is a type of relationship survey
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:
Strangers
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?
The growth in the use of technology-based services
A service blueprint depicts:
The process of service delivery
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.
Zone of tolerance
_____ 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.
Zone of tolerance charts
In the simplest terms ______ are deeds, processes, and performances
services
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.
During which stage of the service innovation and development process are demand analysis, revenue projections, cost analyses and operational feasibility assessed?
Business analysis
The first step in the new service-development process is:
Business strategy development or review
The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is a voicer type when it comes to complaining would react to this by:
Confronting the carpenter at another job site and demanding to know when he would be back to finish the floor
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:
Current and/or future profitability
Which of the following statements about customer satisfaction and service quality is true?
Customer satisfaction is influenced by perceptions of service quality
In order to have a greater likelihood for ultimate success, who should be involved in the new service development process?
Customers and employees
The transition from the _____ stage to the _____ stage of the customer relationship requires the development of trust.
Customers as acquaintances; customers as friends
In the first stage in the service marketing research process, the researcher:
Defines the problem and research objectives
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.
Empathy dimension
The _____ dimension of service quality is the caring, individualized attention given to customers.
Empathy dimension
Which of the following types of interaction activities in a service organization is used to obtain ideas for service improvement?
Employee suggestions
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.
Encounter
Customer _____ are beliefs about service delivery that function as standards against which performance is judged.
Expectations
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
Customers' tolerance zones vary for different service attributes or dimensions. The_______________ the factor, the __________ the zone of tolerance is likely to be.
More important; narrower
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
The Cirque du Soleil fused elements of theater with traditional circus skills to create a whole new form of entertainment. Cirque du is an example of a:
New service for the currently served market
A person who is a(n) _____ is a type of complainer who is unlikely to say anything to the service provider. This type of complainer often doubts the effectiveness of complaining because of a belief that the consequences will not merit the time and effort they will expend complaining.
Passive
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.
Simultaneous production and consumption
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.
Social bonds
Which of the following trends has directly influenced the development of services marketing concepts and strategies?
The fact that manufacturing firms are placing increased emphasis on providing services
