A trucking company that has a toll free number to call if the driver of the truck does not
follow the rules of the road is using a service recovery tool.
Service quality can help companies attract more and better customers to the business
through offensive marketing.
An airline that sells first-class, business-class and tourist-class seats on its planes has
created tiered-value service offerings.
To be successful, a service provider must accept the fact that the customer is always
right.
When determining its demand capacity, a service provider should not consider random
demand fluctuations.
Deficiencies in human resources management policies will broaden provider gap 3.
The first step in enhancing customer participation in service delivery is to manage the
customer mix, beginning with an assessment of the compatibility of segments.
Research done by a financial services company asked the respondents to describe the
company using the brand name of an automobile. This is obviously an example of
quantitative research.
Inadequate vertical communications will broaden provider gap 4.
Companies that have been successful in delivering consistently high service quality do
not have formal standards to guide employees.
A customer’s overall service quality evaluation is the accumulation of evaluations of
multiple service experiences.
A concert production that charges less for matinee shows than for its evening
performances is shifting its demand to match capacity by differentiating on price.
Attracting a new customer is five times as costly as retaining an existing one.
Services marketing bridges the gap between what customers expect to get and what
they perceive they actually got.
The only role performed by the servicescape is to attract or deter entry; it does not
actually influence the degree of success consumers experience in executing their plans
once inside.
By mapping customer journeys and clusters, companies can completely redesign the
journey to be simpler and superior.
The empowerment of employees is a useful tool in service recovery.
When customers and firms reach the friend level of their customer relationship, firms
generally focus on providing value comparable to the competition.
Overuse or under use of service can directly contribute to provider gap 3 – failure to
deliver what was designed and specified.
In its role as socializer, the servicescape should only be designed to aid in the
socialization of customers.
An effective services research program includes either quantitative or qualitative
research, but never both.
Any company that disseminates information through different communications
channels needs to be concerned with integrating this information so that customers
receive unified messages and promises about its offering.
Pricing is easier when marketing services than when marketing goods.
Loss leadership is the term typically used when providers place a familiar service on
special to draw the customer to the store and then reveal other levels of service
available at higher prices.
Salt, bricks, and paper clips are three examples of tangible dominant products.
Service providers need some formal mechanism to ensure ongoing idea generation.
Perceptions of equitable treatment by the service provider will affect customers’
perceptions of service.
To develop an effective physical evidence strategy, a service firm should use a
cross-functional team approach.
The primary capacity constraint on service production for an interior decorator is time.
From the customer’s point of view, internal marketing activities, as defined by the
service marketing triangle, are the most significant.
In order to increase efficiency, business-to-business service providers have eliminated
customer participation in service delivery.
In the post introduction evaluation stage of the new-service development process
information gathered during commercialization of the service can be reviewed and
changes made based on actual market response to the offering.
The service blueprint can be analyzed horizontally if the purpose is to understand the
integration of the service process or to identify for particular employees where they fit
into the bigger picture.
Zones of tolerance are a source of desired expectations.
The radio ads for the Kia automobile dealership promises that the prices on its cars is
lowest in the Memphis area. Categorize these ads as a source of customers’ desired and
predicted service expectations.
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_____ refers to the fact that services cannot be saved, stored, resold, or returned.
A. Intangibility
B. Heterogeneity
C. Simultaneous production and consumption
D. Perishability
E. Incompatibility
Which of the following statements about service standardization and employee
empowerment is true?
A. For every service standardized, some degree of employee empowerment is always
eliminated
B. Any service standardization makes employee empowerment impossible
C. Service standardization is not necessary when the organization empowers its
employees
D. The use of service standardization is compatible with employee empowerment
E. There is no overlapping relationship between service standardization and employee
empowerment
Traditional yield management strategies are most appropriate when:
A. The service provider has a homogeneous target market
B. Its target market is not price sensitive
C. All members of the target market arrive at basically the same time
D. Those who arrive early or reserve early are more price sensitive than those who
reserve or arrive late
E. All of the target market is equally price sensitive
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.
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
Joyce and Amber are both new mothers who are concerned about child-proofing their
homes to keep their babies safe. Joyce called Baby Safe, an agency that will send an
expert in childcare to her home to conduct an individualized survey of the home and
advise on dangerous situations. Amber went on the Internet and found a Web site that
told her exactly what she should do to make her house safe. Which of the service
delivery roles did Amber perform?
A. Customer mix manager
B. Competitor
C. Productive resource
D. Contributor to quality and satisfaction
E. Recruiter
Based on the Framework for Understanding Physical Environment-User Relationships,
browsing in a retail store is a(n):
A. Internal response moderator
B. Individual behavior
C. Cognitive response
D. Servicescape dimension
E. Internal response
Melissa teaches swimming lessons at the YWCA pool. She will charge $75 per child for
four weeks’ worth of lessons. Payment is not due until the child can swim the length of
the pool. If the child cannot accomplish this task, he or she will be automatically
enrolled in the next swimming lesson session until the child can swim the length of the
pool. At that time, the parents will be expected to pay the $75. The YWCA is using a(n)
_____ pricing strategy.
A. Price framing
B. Complementary pricing
C. Price bundling
D. Results-based
E. Value-based
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.
A. Transactional
B. Developmental
C. Proactive
D. Relationship
E. Acquisition
Which of the following service businesses is LEAST likely to experience wide
fluctuations in demand over time?
A. Baptist Hospital emergency room
B. Landmark Trust Bank
C. McDonald’s restaurants
D. Houston Police Department
E. Becker and Rosen Accounting Services
According to the service marketing triangle, which of the following lists the types of
marketing that must be successfully carried out in order for a service organization to
succeed?
A. External, internal and interactive marketing
B. Strategic, tactical and operational marketing
C. Lower-level, middle-level and top-level marketing
D. Functional, hierarchical and relationship marketing
E. Relationship, interactive and transactional marketing
The 25th Hour Inc. is a business that runs errands for people. Its employees have been
called in to care for a toddler when her mother went into labor, to buying groceries for a
mother who wanted to attend her child’ soccer game, and to decorate for parties. If any
customer is not completely happy with the service The 25th Hour provides, its
employees are told to immediately refund the customer’s money (less any expenses) as
soon as the complaint is made known. This sort of service recovery policy helps to
narrow provider _____ of the gaps model of service quality.
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
Which of the following is NOT a strategy for adjusting capacity to match demand?
A. Cross-training employees
B. Scheduling down time during periods of low demand
C. Renting additional facilities or equipment
D. Using part-time employees
E. Differentiating on price
New Bedford College requires all students who live in its dormitories to buy a meal
ticket. The meal ticket is to be used in the cafeteria for all breakfasts, dinners and five
lunches every week for each week the college is in session. Students do not like to go to
the cafeteria. They think it is unfriendly and institutional. All who can afford it eat
off-campus unless the weather is bad. On bad-weather days, the cafeteria is busy with
students, faculty and staff. By the end of the day, it is also very messy because the
cafeteria patrons do not clean up after themselves. Spilled food is on the floor and the
tables. The cafeteria supervisor thinks that if the cafeteria patrons could be made to
perform their role in service delivery then everyone would benefit. Suggest some
possible strategies to enhance patron participation.
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Which of the following statements about customer satisfaction is true?
A. Satisfaction cannot be defined quantitatively
B. Customer satisfaction can only be analyzed if it is considered to be a static
occurrence
C. Customer satisfaction can only be determined through anecdotal evidence
D. Satisfaction may be associated with feelings of ambivalence when there is a mix of
positive and negative experiences
E. Customer satisfaction is not influenced by price
Preparing customers for the service process is a strategy for:
A. Managing service promises
B. Resetting customer expectations
C. Managing customer education
D. Managing horizontal communications
E. Exceeding customer expectations
Which of the following measurement research methods can document customers’
opinions about whether performance met the standards established?
A. Structured brainstorming
B. Relationship surveys
C. Customer panels
D. In-depth interviews
E. Critical incident studies
When customers complained that employees at Freddy’s Fast Stop Stores were
unfriendly, Freddy’s instituted its Smiling Service program, which required all
employees to greet and make eye contact with every customer and always smile and
offer help whenever the customer appeared to need any. Mystery shoppers were used
extensively to make sure the employees were adhering to the Smiling Service program.
In terms of the process for developing service standards, the mystery shoppers were an
example of:
A. Benchmarking
B. Trailer surveys
C. Relationship research
D. Feedback mechanisms
E. Experiential research
Which of the following is NOT an example of a hard measurement?
A. Number of times a service guarantee is invoked
B. Length of time spent on service calls
C. Satisfaction with reservation process
D. Length of time it takes to resolve complaints
E. Percentage of packages delivered after the promised date
Service companies can close provider gap 2 by doing all of the following EXCEPT:
A. Using a systematic new-service development process
B. Developing customer-defined service standards
C. Designing and using an appropriate servicescape
D. Improving communication between the marketing and operations departments
E. Creating formal process for setting service quality standards
When a guest staying at the Marriott Marquis in New York calls room service to order
dinner, which of the following is an example of a backstage contact employee action?
A. Marriott food service order clerk takes guest’s order
B. Guest receives meal from Marriott food delivery person
C. Guest calls room service
D. Marriott chef prepares meal
E. Marriott food delivery person delivers meal to guest
When Grace wanted to buy a new pair of shoes, she went to Zappos.com because she
really likes the wide variety of styles they carry and the free shipping policy. The people
at Zappos.com who maintain the company’s website, manage the inventory and ship the
shoes are performing:
A. Customer actions
B. Onstage contact employee actions
C. Support processes
D. Backstage contact employee actions
E. Audience actions
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:
A. Upward communication
B. Market-oriented ethnography
C. Lead user research
D. SERVQUAL surveys
E. Relationship surveys
Many new commercial aircraft designed for long haul international flights now have
business class seats that recline into “skybeds” making it much easier for passengers to
sleep. The skybeds represent an aspect of the aircraft servicescape that highlights its
role as:
A. Boundary spanner
B. Socializer
C. Facilitator
D. Defender
E. Package
The final stage of the new service development process is:
A. Commercialization
B. Market research
C. Post introduction evaluation
D. Fine tuning of the positioning strategy
E. Business strategy development
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:
A. Research requirement survey
B. Ethnographic survey
C. Critical incident study
D. Trailer call
E. Service expectation meeting and review
A primary goal of firms at the friendship stage of the relationship is:
A. Customer retention
B. The creation of a unique product
C. Creating a competitive advantage through their marketing mix
D. Gaining a familiarity of how the customer creates its service offerings
E. The enhancement of customer relationships
What two pricing strategies are most commonly used when the customer defines value
as quality for the price paid?
A. Market segmentation pricing and value pricing
B. Psychological pricing and value pricing
C. Penetration pricing and value pricing
D. Discounting and value pricing
E. Market segmentation pricing and price skimming
When a company offers new services to current customers, it is using a _____ growth
strategy.
A. Share building
B. Market development
C. Service development
D. Diversification
E. Market integration
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.
A catalog retailer that sells boxed fruit would like its customers to think of the operation
as a gift provider. Its operators are trained to help customers pick out just the right
customized gift for family members and friends. Which two dimensions of service
quality are most evident in this example?
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What does it mean when a company says its standards are predictive rather than
reactive?
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The servicescape can play many strategic roles simultaneously. List them.
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List the key strategic issues not associated with previous metrics that the wallet
allocation rule addresses.
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Jade Taylor has run an advertising agency long enough to understand that the customer
is not always right. He is interested in identifying his profitable customers. Define the
four customer profitability tiers that might help Jade to analyze his customer base?
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Using the typology of service organizations based on variations in form and use of the
servicescape, how would you categorize a paging service?
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What is a “third place?” Discuss the circumstances under which a servicescape can take
on the character of a third place.
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When the advising center at Santa Rosa Community College stays open for longer
hours during the week prior to registration for classes, what strategy for matching
capacity and demand is being used?
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Briefly describe the four provider gaps that are the underlying causes behind the
customer gap.
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Which type of marketing, as defined by the service marketing triangle, includes
recruiting, motivating and training?
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Describe the three factors necessary for appropriate service standards.
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Discover Card has an automated inquiry system that enables card members to obtain
their current balance, available credit and payment information via telephone without
speaking to an account representative. What term should be used to describe this
inquiry system?
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What are the two types of interactive activities that an organization can use to improve
upward communications? Provide an example of each type.
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What kind of fairness is being requested when customers want their complaints handled
politely, fairly and honestly?
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During what stage of the new-service development process is empathetic design used?
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The ad for Walt Disney World shows enthralled spectators watching the daily Disney
character parade and has several park guests explaining how much they enjoyed the
parade. Why is Disneyworld using testimonials in its ads?
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