Service Marketing Quiz 1 - Chapter 1 and 2

Gap 4

ensuring customers are informed during services helps to close which gap?

intangibility

the most distinguishing characteristic of a service, can not be seen, felt, tasted, touched etc.

True

Customers are receiving that the overall quality of service they are receiving is declining

Simultaneous production and consumption

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.

Failure to match supply and demand

Gap 3 is caused by:

Heterogeneity - Each service depends on the employee/customer interactions

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.

services

In the simplest terms, _____ are deeds, processes, and performances.

Gap 3: Adhering to common service standards

Jiffy Lube, a franchiser of 10-minute oil and lubrication services, has been plagued by a lack of consistency across franchise outlets. The lack of consistency has resulted from Jiffy Lube's failure to require franchisees to adhere to common service standards as it rapidly expanded its franchise business across the U.S. Jiffy Lube's failure to require franchisees to adhere to common service standards has led to provider _____ of the gaps model of service quality.

Heterogeneous - it will not be different each time because it is prerecorded

Parents everywhere are very busy and often cannot spend time with their children. In the Netherlands, children who want a bedtime story can call the telephone service and request to listen to one of twenty prerecorded fairy tales. The phone company charges $7 per story. Because of the prerecording of the stories, this bedtime service reduces the problems typically associated with the _____ characteristic of services.

Gap 1

Provider _____ is the difference between customer expectations of service and company understanding of those expectations.

The growth in the use of technology-based services

Return Path is a company that provides changes of addresses to businesses. It takes a business's mailing list, compares it to address changes that it gathers daily in its database and makes any necessary corrections. Return Path is a part of which trend in the services marketing industry?

Physical Evidence

Ruth recently visited a day care center that is convenient to her work. Ruth is thinking of letting the day care workers care for her infant son while she is at work. The first thing Ruth noticed when she walked in the door of the facility was the smell of urine. There was a dead plant in the window. Toys were strewn about the floor and Ruth almost tripped over a tricycle. In this example, Ruth experienced negative aspects of the _____ element of the day care center's services marketing mix.

Improving communication between the marketing and operations department

Service companies can close provider gap 2 by doing all of the following EXCEPT:

Gap 1 - Transactional Marketing

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.

customer

The _____ gap is the difference between customer expectations and perceptions.

Difference between customer expectations and perceptions

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

Service

The maintenance contract offered by Sears on its Kenmore refrigerators, dishwashers, and microwaves is an example of a(n) _______.

Customer-Driven

These are standards set by a service firm to correspond to customer expectations

Gap 3

This gap has to do with the service performance gap by company employees

Sales Promises

What is an example of a market controlled factor?

#3

When a manger uses empowerment with their employees, they are closer this gap

Credence

_______ qualities are characteristics of a product consumers may find impossible to evaluate even after purchase and consumption.

True

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

Relationship

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.

The customer service depends on the EMPLOYEE ACTIONS - one employee may provide a different service experience on the same day depending on customer's individual needs

Heterogeneity of instruction demonstrates which principle?

Gap 4

The ads for a weight loss program that promised the program would change an individual's eating habits through hypnosis is probably overstating its usefulness because there are some people in the world that cannot be hypnotized. This sort of misleading advertising broadens provider _____ of the gaps model of service quality.

physical evidence

When attending a beautifully decorated restaurant, you are experiencing the _____ element of the marketing mix

Transactional

When the focus is NOT on relationship marketing and is on acquiring new customers

Over-Promising

Which of the following factors is NOT a factor leading to provider gap 1?

simultaneous production and consumption

With a tandem dive, Beth and Rick get to enjoy the experience without having to worry about when to open the parachute. The skydiving

intangiblity (tangibility spectrum)

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

Perishability

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

Simultaneous production and consumption

. Students enrolled in the course attend classroom sessions that cover the theory and technology of sailing and receive hands-on sailing instructions in the water that introduces them to all fundamental sailing skills. Student participation in the Offshore Sailing School's classroom sessions and hands-on sailing instructions illustrates the _____ characteristic of services.

Expectations

Customer _____ are the standards for performance against which service experiences are compared.

People, Physical Evidence, and Process

Including the four Ps of traditional marketing mix, the expanding mix for services contains what else?

growth in use of technology-based services

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?

Gap 4

Receiving an educational brochure before you get a shot at the doctors office is one way to close which gap?

False

T or F: The deregulation of industries is lessening the demand for services marketing skills

heterogeneity

The characteristic of a service that refers to differences in employees' performances is:

Service

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

Gap 1

Using a customer database to store information about customers to provide a more personalized service to each customer helps to close which gap?

teaching customers to preform their roles properly, synchronizing supply and demand, motivating intermediaries to meet company service goals, empowering employees

What are some ways to close provider gap 3?

4

When there is any issue in the communication of a service that is being provided this has to do with what gap?

Process

. 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

A dentist office uses the _____ element of its service to reduce stress associated with dental procedures.

Perishability - you can not take time away

An attorney who charges a client for a missed appointment is taking into account the _____ characteristic of services.

simultaneous production and consumption - when you are receiving the the service, it is like you are receiving the product at the same time rather than buying it and taking it home

Because of the _____ of services, service producers find themselves playing a role as part of the product itself and an essential ingredient in the service experience for the consumer.

Perishability

Because other dates would just not be as lucky for the blushing brides and grooms, and simply would not suffice, the wedding planners had to prepare all year for more weddings on this one date than on any other day throughout the year. This example illustrates the _____ characteristic of services.

Perishability

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.

Gap 2

By using physical evidence to reduce anxiety, a dentist office is narrowing provider _____ of the gaps model of service quality.

Gap 1 - listening gap - the gap between customer expectations of service and the company understanding those expectations

Enterprise Rent-A-Car closely ties customer service to employee success. With a tracking system called the Enterprise Service Quality Index (ESQi), the company routinely follows up with customers by phone to determine their level of satisfaction with the company. Only completely satisfied customers count toward an employee ESQi score, which is used to measure employee's potential for promotion. Enterprise closes provider _____ by using marketing research

Manufacturing firms are placing increased emphasis on providing services

Extron Electronics makes 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 using a toll-free number, a fax number or an e-mail address. 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. Orders are shipped within 48-hours of receipt. If a customer is not completely satisfied with his or her order, Extron has a 100 percent satisfaction guaranteed return policy. Which of the following trends that has influenced the development of services marketing concepts and strategies as illustrated by Extron's focus on customer service?

Gap 2: Customer-desire performance standards

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 provider _____ of the gaps model of service quality.

Intangibility

In India weddings are timed to occur when Venus is in the ascendant and Jupiter is strong. This day is deemed lucky. In 2005, almost 15, 000 couples in New Delhi had their wedding on December 25, the day astrologers announced would be the best day for a wedding. The service provided by the astrologers is an excellent illustration of the _____ of services.

Relationship (Gap 1)

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.

Gap 1 - Relationship marketing; focus on existing customers in their Magic Club

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. Telpizza's use of a frequency marketing program has allowed it to narrow provider _____ of the gaps model of service quality.

Anything having to do with going above and beyond the service standard and the actual service being given

The New York Palace, an upscale hotel in New York City, synchronizes demand and hotel capacity by offering an attractively priced weekend package during the fall when demand for its rooms slows down. In addition to having a luxury-filled weekend at the New York Palace for $219 per night, guests enjoy very select privileges from Saks Fifth Avenue. Its weekend package provides a personal shopping coordinator, complimentary gift wrap and package delivery to the hotel, individual beauty consultation and a 10 percent Saks discount. The New York Palace's weekend package closes provider ____ of the gaps model of service quality.

Gap 1: The listening Gap - the Gao between the customer expectations and the company's understanding of those expectations

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 provider _________ of the gaps model of service quality.

Gap 2: Having clearly designed services

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 provider _________ of the gaps model of service quality.

Heterogeneity - each golf lesson will depend on the golf instructor and their interaction with the person taking the lesson

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 experience with the two golf instructors illustrates the _____ of service

Interactive

The marketing that goes on between an insurance agent and a current customer that is buying car insurance for a new teenage driver is an example of _____ marketing.

Servicescape

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.

Provider

To close the customer gap, the gaps model of service quality suggests that the _______ gaps need to be closed.

Gap 2

What gap does creating clear standards help to close?

Gap 2: Service Design and Standards Gap

What gap is inappropriate physical evidence and servicescape a part of?

service design and standards gap

What is Gap 2 about?

Gap 1: Anything to do with understanding consumer expectations more

When IKEA, the world's largest furniture retailer, wanted to open a store in Chicago, the company asked groups of customers to dream up their ideal shopping experience and draw a design for a store that would satisfy their needs. IKEA subsequently incorporated the customers' ideas into the service design for the store. Instead of simply conducting surveys to determine customer expectations, IKEA put customers in a "wish mode" and successfully used an innovative approach to close provider _________ of the gaps model of service quality.

Process

When Mike arrived at the office, he checked in with the receptionist and then waited in the waiting room for 15 minutes, reading a magazine, before being greeted by the dental hygienist, who escorted him to an examination room. The dentist entered the room, greeted Mike, examined Mike's teeth, took a set of x-rays and asked the dental hygienist to clean Mike's teeth. When his teeth were cleaned, the hygienist told Mike he should return in 6 months for another check-up. Mike experienced the _____ element of the dental office's services marketing mix.

Gap 1: The listening Gap - takes care when the customer isn't 100% satisfied with their purchase

When a company provides a "money back guarantee" or when they compensate for failures in their business, this helps to close the gap in which one?

Services

When they go away on vacation, some dog owners choose to leave their dogs in posh pet resorts that offer a variety of activities for the dogs, such as swimming pool frolics, nature walks, and hayrides. The dog owners pay around $17 per night for basic boarding at the pet resorts and up to an additional $20 for the other activities, which would be collectively classified as:

Efficient marketing research systems - this would close gap 1

Which of the following factors does NOT cause provider gap 3?

Production

Which of the following is NOT an element of the traditional marketing mix?

Paper Mill

Which of the following is NOT an example of a service business?

Service delivery and customer satisfaction depend on employee and customer actions

Which of the following is a marketing implication that results from the heterogeneity of services?

Guest Rooms

Which of the following is an example of a tangible component provided by a hotel?

Pilots, baggage workers, customers, flight attendants

Which of the following is an example of the people element of an airline company's services marketing mix?

The training the mechanic has received

Which of the following is an intangible component of a car repair shop?

Wedding Dress

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

Marketing and managing services presents issues and challenges not faced in manufacturing and packaged goods companies

Which of the following statements about services is true?

Services can not be inventoried

Which of the following statements describes a marketing implication that results from the intangibility of services?

employees affect the service outcome - ex. golf teacher, skydive instructor

Which of the following statements describes a marketing implication that results from the simultaneous production and consumption of services?

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?

Customer expectations are higher because of excellent service they receive at other companies (like Disney world vs. six flags)

Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining?

Increased use of technology is perceived by many as less service because no human interaction

Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining?

Manufacturing forms are placing increased emphasis on providing services.

Which of the following trends has directly influenced the development of services marketing concepts and strategies?

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

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

Increased competition in professional services

Which trend that influenced the development of services marketing concepts and strategies for doctors offices and medical clinics is illustrated here?