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Landis was pleasantly surprised to find a "No Smoking" sign at his favorite pub. He had
to limit his visits because he is allergic to cigarette smoke. Now he can visit as often
and for as long as he likes. Landis was afraid the sign might hurt the pub's business, but
he was pleased to discover how many of the pub's regulars felt the same way he did.
The "No Smoking" sign served to:
A. Enhance customer compatibility
B. Decrease customer participation
C. Turn the customers of the pub into productive resources
D. Allow the customer to co-create the service
E. Maintain the drama metaphor
Standardization of services in the form of ______________ is exemplified by maid
services by Molly Maids as well as routinized tax services developed by H&R Block.
A. Substitution of technology for personal contact and human effort
B. Improvement in work methods and training
C. Organizational flattening
D. Employee encroachment
E. Autonomous management
After an airplane arrives at its gate and passengers disembark, it is cleaned, restocked
with food and beverages and refueled by maintenance workers before the next set of
passengers board and the airplane departs on its next flight. The activities performed by
maintenance workers to prepare the airplane for its next flight is part of which section
of the service blueprint?
A. Customer actions
B. Onstage contact employee actions
C. Backstage contact employee actions
D. Support processes
E. Audience actions
Executive Dry Cleaners charges customers $2.99 to launder a dress shirt rather than
$3.00. Executive Dry Cleaners is using a(n) _____ pricing strategy.
A. Odd
B. Synchro-
C. Discounting
D. Prestige
E. Complementary
In talking to a travel agent, T. J. Matthews learned that he would have to pay the same
amount of money for a three-day/two-night package right outside the gates of Walt
Disney World for his family of four as he would for a five-day/four-night stay at a hotel
that was about 50 miles away from Walt Disney World. Matthews decided the farther
hotel was a much better value. Matthews defined value as:
A. All that I get for all that I give
B. Whatever I want in a service
C. Low price
D. Reliable service
E. The quality I get for the price I pay
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.
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
Which of the following statements about the American Customer Satisfaction Index
(ACSI) is true?
A. The ACSI demonstrates to service providers that there is much room for
improvement in customer satisfaction
B. The ACSI was developed by the federal government as a way to include customer
satisfaction measurements in census data
C. In spite of the name, the ACSI also measures customer satisfaction levels for
countries with which the U.S. has a greater than average level of trade
D. The only country that is currently studying customer satisfaction and creating an
index is the United States
E. The ACSI tracks customer perceptions of the level of satisfaction provided by sole
proprietorships as well as by large corporations
The owner of Fiori Flower and Gift Shop has noticed a gradual decline in its number of
customers over the last three years. The owner suspects that it is experiencing _____
due to the recent opening of a Kroger supermarket in the community.
A. Customer defection
B. Customer empowerment
C. An ethical dilemma
D. Customer autonomizing
E. Customerization
There is a sign next to the door that you can see as you leave Mildred's Restaurant. It
reads, “If you enjoyed your meal, please tell a friend.” In terms of the service marketing
triangle, this sign is a part of Mildred's _____ marketing.
A. Internal
B. Interactive
C. Integrated
D. External
E. Transactional
An advertisement for the Four Seasons Hotel featured Marlene Wei, a housekeeper at
the Four Seasons Hotel in Chicago. Copy for the advertisement noted that "Marlene is
the soul of concern. She cannot sleep well at night unless she is certain you will. Her
mission is to enhance your personal comfort and, in turn your professional efficiency
the following day." By featuring Marlene Wei in an advertisement, the Four Seasons
Hotel is _______ to address service intangibility.
A. Featuring service employees in advertising
B. Using brand icons
C. Using documentation
D. Using viral marketing
E. Leveraging social media
The factors that influence adequate service expectations are _____ in nature and
fluctuate _____ than the factors that influence desired service expectations.
A. Long-term; less
B. Long-term; more
C. Short-term; less
D. Short-term; more
The New York Yankees, a major league baseball team, offers half-price tickets for high
school and college students every Wednesday home game at Yankee Stadium. The New
York Yankees are using a(n) _____ pricing strategy.
A. EDLP
B. Value
C. Penetration
D. Market segmentation
E. Cost-based
United Jersey Bank offers customers, who have a combined balance of $3000 or more
in a United Jersey Checking Account and Preferred Money Market Account, a service
called United Jersey Preferred Banking. This service is designed to make banking more
convenient and profitable for customers. United Jersey Preferred Banking eliminates
monthly maintenance fees, provides unlimited free transactions at ATMs, preferred
rates on personal loans, higher interest rates on savings with higher balances and a
consolidated monthly statement. United Jersey Bank does not offer United Jersey
Preferred banking to customers with a combined balance of less than $3000 in a United
Jersey Checking Account and Preferred Money Market Account because these
customers are:
A. In the wrong segment
B. Not divisible
C. Not profitable in the long run
D. Known as difficult customers
E. None of the above
Velma was preparing to take her first airplane trip in more than 20 years. One of the
primary reasons why she has not flown is because she is over 6-feet tall and the
closeness of the seats made her extremely uncomfortable. Just prior to making plane
reservations, she saw an article in a travel magazine congratulating United and
American Airlines for increasing the room between passenger seats. She did not have
time to read the whole article—just the first paragraph. She made her reservations on
United Airlines with the expectation that she would not have to feel like she was "shoe
horned" into her seat. When she boarded the plane, she was struck with how close the
seats appeared. It wasn’t long before she learned that United had only increased the
room for the first six rows and American had made sure that every seat had extra room.
Velma's service expectation levels were shaped by:
A. Explicit service promises and word-of-mouth communications
B. Past experience and word-of mouth communication
C. Implicit and explicit service promises
D. Implicit service promises and predicted service
E. Past experience and explicit service promises
In terms of its servicescape complexity, The White Elephant, a restaurant that
specializes in traditional Thai cooking is an example of a(n) _____ service
environment.
A. Tangible
B. Lean
C. Flexible
D. Open
E. Elaborate
When the character playing Alice in Wonderland signed autographs and had her picture
taken with guests at Disneyworld, it was an example of a(n):
A. Customer action
B. Onstage contact employee action
C. Backstage contact employee action
D. Support process
E. Audience action
The process of managing multiple and sometimes conflicting customer segments is
known as _____ management.
A. Relationship
B. Compatibility
C. Demand mix
D. Position
E. Targeted
Which of the following types of research is NOT done on a continuous basis?
A. Complaint solicitation
B. Relationship surveys
C. Social media
D. Customer panels
E. Lost customer research
A consumer is more likely to complain when:
A. The individual's involvement with the product being purchased is low
B. The level of ego involvement in the purchase is high
C. He or she is the only one who experienced service failure
D. The purchase is one that is made routinely
E. Service failure costs less than $5.00
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.
A. Reliability
B. Responsiveness
C. Assurance
D. Empathy
E. Tangibles
A professional baseball team that has unsold tickets for a Friday night game cannot
resell those tickets for a game the following afternoon due to the _____ characteristic of
services.
A. Intangibility
B. Simultaneous production and consumption
C. Heterogeneity
D. Perishability
E. Divisibility
Which of the following is NOT a form of qualitative research?
A. Complaint solicitation
B. Critical incident studies
C. Requirements research
D. Trailer calls
E. Customer panels
The owner of Fiori Flower and Gift Shop has noticed a gradual decline in its number of
customers over the last three years. The owner suspects that many of its regular
customers are now buying flowers at the newly opened Kroger supermarket. It would
be appropriate for the owner to institute _____ marketing.
A. Guerrilla
B. Flanking-movement
C. Vertical integration
D. Defensive
E. Offensive
According to field research conducted with senior executives in 60 companies, many
firms do not identify and act on the correct nonfinancial measures. All of the following
are among the major mistakes made by companies with respect to nonfinancial
measures EXCEPT:
A. Not linking measures to strategy
B. Not validating
C. Not setting the right performance targets
D. Measuring incorrectly
E. All of the above are major mistakes made by companies with respect to nonfinancial
measures
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.
A. Derived service
B. Other-self
C. Procured
D. Service-vision
E. Shared
The Offshore Sailing School in Jersey City, New Jersey, offers a basic sailing course,
which takes place in three days over two weekends, for $495. 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.
A. Versatility
B. Heterogeneity
C. Simultaneous production and consumption
D. Perishability
E. Intangibility
One of the ways in which standardization of services occurs is through:
A. Substitution of technology for personal contact and human effort
B. Organizational flattening
C. Employee encroachment
D. Division of labor and specialization
E. Autonomous management
The first step in the process of developing customer-defined standards is to:
A. Develop feedback mechanisms for measurement of standards
B. Establish measures and target levels for standards
C. Identify existing or desired service encounter sequence
D. Decide whether hard or soft standards are appropriate
E. Translate customer expectations into behaviors and actions for each service
Lois Kay is an experienced baker. She has decided to bake and decorate her daughter's
wedding cake instead of ordering one at the bakery. Her decision to bake her daughter's
wedding cake herself was based on this knowledge and the joy of seeing her daughter's
face as she first looks at the wedding cake made by her mother. Kay's decision to
produce the service herself was primarily guided by:
A. Expertise capacity and psychic rewards
B. Economic rewards and trust
C. Control and empathy
D. Resource capacity and economic rewards
E. Economic rewards and psychic rewards
Under which of the following conditions should a service provider confirm
performance to standards and expectations?
A. The customer cannot evaluate the effectiveness of the service.
B. The decision maker in the service purchase is different from users of the service.
C. The service is performed out of sight of the customer.
D. Answers A and C above
E. Answers A, B, and C above
Service employees who depend on tips or commissions for income are likely to face
greater levels of _____ conflict than employees who receive a straight salary.
A. Person/role
B. Vertical
C. Organization/client
D. Inter-client
E. Horizontal
A service firm that conducts periodic internal marketing research to assess employee
satisfaction and needs is using which of the following human resource strategies for
closing provider gap 3?
A. Hiring the right people
B. Providing needed support systems
C. Using a control system to eliminate unnecessary service encounters
D. Training teams to deliver service quality
E. Establishing effective servicescapes
Variations in demand relative to capacity can result in all of the following scenarios
EXCEPT:
A. Demand that exceeds maximum capacity
B. Demand that exceeds optimum capacity
C. Supply and demand balanced at the level of optimum capacity
D. Demand that is below optimum capacity
E. All of the above scenarios can result from variations in demand relative to capacity.
Which of the following acts as the stimulus in the stimulus-organism-response model?
A. Employees
B. The multidimensional service environment
C. Customer emotions
D. Customer
E. Customer purchase behavior
