services mktg 4350 exam 3

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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. A. Financial bonds B. Social bonds C. Customization bonds D. Structural bonds E. Security bonds

A. Financial bonds

Service companies can help close the communication gap by: A. Improving communications between sales and operations departments B. Using a systematic new-service development process C. Eliminating employee role ambiguity and role conflict D. Creating customer-defined standards E. Making sure customers understand their roles and responsibilities

A. Improving communications between sales and operations departments

The _____ gap is the difference between customer expectations and perceptions. A. Service quality B. Manufacturing C. Value D. Quality E. Management

A. Service quality

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 ___________. A. Service recovery B. Service paradox C. Service inconsistency D. Outcome fairness E. Procedural recovery

A. Service recovery

The delivery gap of the gaps model of service quality is caused by: A. Failure to match supply and demand B. Advertising that over-promised C. Failure to connect service design to service positioning D. Inadequate maintenance of servicescape E. A tendency to view each external communication as independent

B. Advertising that over-promised

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? A. Job content B. Feedback and recognition C. Fully focused marketing D. Goal achievement E. Premiere marketing

B. Feedback and recognition

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. A. Formal B. Hard C. Informal D. Measurable E. Soft

B. Hard

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? A. Make the service fail safe B. Learn from recovery experience C. Treat customers reactively D. Encourage and track complaints E. Act quickly

B. Learn from recovery experience

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. A. Knowledge B. Policy C. Delivery D. Communication E. Perceptions

B. Policy

Which of the following statements about service failure and service recovery is true? A. Those customers who never complain are as likely to repurchase as those who had a satisfying service experience B. Resolving customer problems effectively has a strong impact on customer satisfaction and loyalty C. All firms employ effective recovery strategies D. Effective service recovery should not be expected to improve overall service performance E. All of the above statements about service failure and recovery are true

B. Resolving customer problems effectively has a strong impact on customer satisfaction and loyalty

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? A. Reliability B. Responsiveness C. Assurance D. Empathy E. Tangibles

C. Assurance

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. A. Knowledge B. Policy C. Delivery D. Capacity E.Fragmented

C. Delivery

Flying across the Pacific Ocean is an eight-hour trip that could be dreadful if you did not fly by Singapore Airlines. One frequent flyer between the United States and Japan noted the Singapore cabin crew gives the impression that it is truly their pleasure to serve the passengers. Seating has been designed to provide comfort in the airline's wide body planes. In first class, the seats are referred to as sky suites because they are so roomy. Every meal is carefully planned and served. The commitment to making the long flight as pleasant as possible indicates Singapore Airlines: A. Does not rely on physical evidence B. Considers reliability more important than empathy C. Has a service culture D. Does not use internal marketing E. Wants to increase the number of service encounters it has with a customer

C. Has a service culture

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: A. Functional fairness B. Procedural fairness C. Interactional fairness D. Service equity E. Situational fairness

C. Interactional fairness

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. A. Confidence B. Reliability C. Social D. Transactional E. Economic

C. Social

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: A. Financial inertia B. Opportunity costs C. Switching costs D. Fixed costs E. Retained costs

C. Switching costs

Which of the following is the BEST example of procedural fairness? A. The restaurant charged the man for two meals when he sent back his overcooked steak and demanded one cooked correctly B. Miriam decided the missing button was not important enough to make another trip to the cleaners and complain C. When Tia walked into the salon and asked to have her hair cut, the receptionist pointed to the sign that read, "To keep from inconveniencing our customers, this hair salon will not style the hair of anyone who does not have an appointment" D. The small movie theater gave all patrons two free movie tickets for the night of their choice when the movie projector broke half way through showing the newest Brad Pitt movie E. The hotel refused to help a man find a room for the night when he missed his scheduled flight

C. When Tia walked into the salon and asked to have her hair cut, the receptionist pointed to the sign that read, "To keep from inconveniencing our customers, this hair salon will not style the hair of anyone who does not have an appointment"

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: A. Shows the absence of a customer focus B. Illustrates the importance of employee empowerment C. Does not fit the service provider's image D. Is very meaningful E. Is unconditional

D. Is very meaningful

_________ are created by providing services to the client that are designed right into the service delivery system. A. Financial bonds B. Customization bonds C. Individualization bonds D. Structural E. Social bonds

D. Structural

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. A. Physical B. Mental C. Personal D. Accountable E. Emotional

E. Emotional

_____ concerns the results that customers receive from their complaints. A. Functional fairness B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

E. Outcome fairness

_____ concerns the results that customers receive from their complaints. A. Functional fairness B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

E. Outcome fairness

The empowerment of employees makes which of the following service recovery strategies easier to implement? A. Make the service fail safe B. Learn from lost customers C. Treat customers fairly D. Encourage and track complaints E. Respond quickly

E. Respond quickly

The owner of a small but growing business, Terry Franklin was becoming overwhelmed with requests from his outside customer service representatives for decisions about solutions to customer problems. Noting the mountain of his own work that was piling up, he instituted a policy change and informed representatives. "keep customers happy" he said, "if it's a problem that takes less than $100 to fix, there's no need to call me, Use your judgement and go ahead and fix it." He is using empowerment to narrow the _____ gap of service quality. a. Delivery b. Policy c. Communication d. Knowledge e. Perceptions

a. Delivery

Emotional labor is when employees _______. a. Have a gap between what they feel inside, and what management expects them to display to their customers b. Feel happy all the time because they enjoy their jobs c. Have to keep their emotions under control at the work place d. Find it hard to be emotional because they are too overworked e. Are emotionally stressed by all the demands of their jobs

a. Have a gap between what they feel inside, and what management expects them to display to their customers

When a lawyer feels a conflict between what she is asked to do and her own personality, orientation or values she is experiencing _______ conflict. a. Person / role b. Vertical c. Inter-client d. Organization / client e. Horizontal

a. Person / role

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

a. Reduce customer churn

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: a. Switching costs b. Opportunity costs c. Financial inertia d. Fixed costs e. Retained costs

a. Switching costs

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 bears 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. a. Tangibles b. Responsiveness c. Empathy d. Assurance e. Reliability

a. Tangibles

Service employees are important to customers and competitive positioning because the front line ____________. a. is the most visible part of the firm b. contains more employees than management c. is often the first to deal with customer complaints d. is worse trained at dealing with customers than are managers e. are the longest-tenured employees

a. is the most visible part of the firm

The _____________ is commonly found in large, bureaucratic organizations with standardized service where employees have little freedom in narrow and repetitive jobs. a. Cycle of failure b. Cycle of Mediocrity c. Cycle of Success d. Tricycle e. Cycle of life

b. Cycle of Mediocrity

Ally Bank advertises "24/7 live customer care" which means customers can call and speak with a human about banking matters at any time. Ally Bank customers never have to talk toa machine. With this service feature, they are emphasizing the _____ dimension of service quality. a. Tangibles b. Empathy c. Assurance d. Reliability e. Responsiveness

b. Empathy

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 being used? a. Implement the service paradox b. Offer a guarantee c. Do it right the first time d. Respond quickly e. Act proactively instead of reactively

b. Offer a guarantee

The Oaks at Ojai is an award winning destination spa in California. 2/3 of their guests are repeat visitors who return for fun and relaxing experience unsurpassed by other spas. The owner and staff are committed to delivering the best service possible. Each employee is selected carefully and training, every event happens with precision, guest questionnaires are thoroughly reviews, and improvements suggested by guests are implemented. By having service standards that reflect what customers expect, The Oaks is closing which gap of service Quality? a. Delivery b. Policy c. Communication d. Knowledge e. Perceptions

b. Policy

When a customer of Twin Cities Rehabilitation Center complained that this therapist was an hour late, the owner gave the customer credit for one free hour of therapy. This action taken by owner is an example of: a. Service paradox b. Service recovery c. Outcome fairness d. Service inconsistency e. Procedural recovery

b. Service recovery

Molly and Tom are getting married, last month they hired a caterer. This month they attended a wedding for which their chosen catered had provided food, dishes, and flowers. Neither thought the food was good and Molly worries 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: a. Fixed costs b. Switching costs c. Opportunity costs d. Extraneous expenses e. Retained costs

b. Switching costs

Outcomes of the "Cycle of Failure" for firms include ____________ and ____________. a. low service quality; low employee turnover b. low service quality; high employee turnover c. high service quality; low employee turnover d. high service quality; high employee turnover e. mediocre service quality; unpredictable employee turnover

b. low service quality; high employee turnover

What jaycustomer thinks of various ways to cheat the firm? For example, rather than dining and dashing, this jaycustomer would complain about the food or service in order to get it for free, even if everything was fine. a. Rule breaker b. Deadbeat c. Cheat d. Hooligan e. Belligerent

c. Cheat

When measuring the value of a customer, firms typically consider two things: a. Costs and expenses b. Revenues and write offs c. Revenues and costs d. Margins and referrals e. Time and location

c. Revenues and costs

When measuring the value of a customer, firms typically consider two things: a. Costs and expenses b. Revenues and write offs c. Revenues and costs d. Margins and referrals e. Time and location

c. Revenues and costs

The _____ gap is the difference between customer expectations and perceptions. a. Quality b. Value c. Service quality d. Manufacturing e. Management

c. Service quality

The Gaps Model is used to ____________. a. decrease customer satisfaction b. reduce productivity problems c. diagnose and address service quality problems d. enhance a firm's profitability e. help people buy Gap clothes

c. diagnose and address service quality problems

If a Finish Line sales associate replaces shoes at no cost to the client, it is an example of ____________. a. centralized decision-making b. service theft c. employee empowerment d. service sabotage e. rule setting

c. employee empowerment

The ____________ is the difference between what service providers believe customers expect and customers' actual needs and expectations a. interpretation gap b. standard gap c. knowledge gap d. service quality gap e. internal communications gap

c. knowledge gap

Effective service recovery procedures should be ____________, ____________, ____________, and ____________. a. proactive, engaged, universal, empowered b. planned, engaged, universal, trained c. proactive, planned, trained, empowered d. trained, engaged, flexible, spontaneous e. trained, engaged, universal, empowered

c. proactive, planned, trained, empowered

Factors that work to increase the profit growth from loyal customers include: a. Profit from reduced customer service costs b. Profit from referrals to others c. Acquisition costs can be amortized over a longer period d. All of the above e. Profit from increased purchases

d. All of the above

The wheel of loyalty is composed of which of the following three main components? a. Create loyalty bonds; deliver quality service; segment the market b. Create loyalty bonds; build higher level bonds; deliver quality service c. Build a foundation for loyalty; create bundling; build higher level bonds d. Build a foundation for loyalty; create loyalty bonds; reduce churn drivers e. Create loyalty bonds; understand customer value; understand service value

d. Build a foundation for loyalty; create loyalty bonds; reduce churn drivers

Salespeople for college texts call on college instructors to sell them on using a particular text for their classes. Improvements in the efficiency have led some publishers to stop making sales calls altogether on smaller colleges. It is 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: a. Creates across-the-board customer enhancement b. Simply increases the importance of word-of-mouth communication c. Will not cause any problems d. Could cause resentment e. Is not profitable

d. Could cause resentment

Comcast typifies the _____ since customers find it frustrating to deal with and there is little incentive for it to provide better service a. Cycle of failure b. Cycle of success c. Cycle of life d. Cycle of mediocrity e. Cycle of uniformity

d. Cycle of mediocrity

Which of the following is a common reason for the high failure rate of CRMs? a. Lack of customer focus b. Challenges with data integration c. Viewed as a technology initiative d. Inadequate support from management e. All of the above

e. All of the above

In addition to compensation, customers expect _____, or they expect fairness in terms of policies, rules, and timeliness of complaint process. a. Functional equity b. Interactional fairness c. Service equity d. Outcome fairness e. Procedural fairness

e. Procedural fairness

When the dentist's office bills the patient who had an appointment but did not show up for it and did not cancel, it is an example of ____ because the patient was made aware of the policy before making the appointment. a. Outcome fairness b. Service equity c. Interactional fairness d. Functional fairness e. Procedural fairness

e. Procedural fairness

Harrah's Entertainment, a casino hotel, 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: a. Empowering employees b. Developing service-oriented internal processes c. Creating employees as customers d. Including employees in the company's vision e. Promoting teamwork

e. Promoting teamwork

Southwest Airlines has consistently has one of the best on-time performance records in the airline industry. A critical factor in their 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. 70% of their flights have a turnover time of 15 minutes. Southwest Airline's on-time performance reflects the ____ dimension of service quality. a. Tangibles b. Responsiveness c. Empathy d. Assurance e. Reliability

e. Reliability

The _____ refers to the sometimes-observed effect that customers who experience a service failure and then have resolved to their full satisfaction are more likely to make future purchased than are customers who have no problem in the place. a. Referent contribution paradox b. Referent renewal paradox c. Referent acquisition paradox d. Service renewal paradox e. Service recovery paradox

services mktg 4350 exam 3

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