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The Net Promoter Score is based on the idea that word-of-mouth communication, rather
than any of the other metric, is the best predictor of growth and financial performance.
A dry cleaning establishment is more likely to experience a wide demand fluctuation
over time than a cleaning company that specializes in cleaning up after a fire.
Signs, symbols and artifacts should not be expected to create first impressions or
communicate service concepts.
The lack of inventory capability in services is due to the service characteristic of
intangibility.
The loading of passengers' baggage onto an airplane by baggage handlers is a backstage
contact employee action.
If customer waits are common, a first step is to analyze the operational processes to
remove any inefficiencies.
If a company's goal is to manage customer expectations, it should avoid offering service
guarantees.
It is impossible to manage customer expectations in a business-to-business situation.
All businesses and organizations that operate on the Internet are essentially providing a
service.
When in doubt as to how to treat a customer who has not been provided a service as
promised, the service provider should always try to overcompensate that customer.
Physical evidence strategy begins with the recognition of the strategic importance of
physical evidence in determining service quality expectations and perceptions and then
moves directly to the identification of additional physical evidence that would do the
job even better than what now exists.
According to field research conducted with senior executives in 60 companies, almost
all companies identify and act on correct non-financial measures.
A customer's perceived service alternatives are a source of desired expectations.
The musty smell of old papers at a used bookstore is an example of an ambient
condition.
With relationship marketing, customers can develop social relationships with their
service providers, which makes it less likely that they will switch to a competitor.
Customers who experience a service failure and do not complain are more likely to
make a repurchase than those who do complain.
Ad puffery such as "The Best Pizza in the State" could lead to provider gap 4.
Setting a service standard in broad conceptual terms is ineffective because the standard
is difficult to interpret, measure and achieve.
Once a company has entered into a relationship with a customer, that relationship
should never end.
Importance/performance matrices typically combine information about customer
perceptions of service encounters with a company with how the company rates in each
of the five service dimensions.
A customer's refusal to comply with park regulations when riding a roller coaster in an
amusement park will have no effect on his or her level of satisfaction.
The first step in building a service blueprint is to map contact employee actions.
Share of wallet is the percentage of a customer’s spending within a category that is
captured by a given service.
Service encounters are among the key drivers of service quality.
All service encounters are equally important in building good customer relationships.
The most commonly known form of results-based pricing is a practice called mixed
bundling.
The development of services marketing concepts has been strongly influenced by
professional services like doctors and attorneys.
An advantage of a single-queue configuration is that customers have an opportunity to
select a particular service provider.
In a sense, the servicescape can be viewed as nonverbal communications.
An important trend in services research is to measure only the negative consequences of
service quality and ignore the positive because it does not need improvement.
Which of the following is NOT an example of a commonly used service recovery
strategy?
A. Learn from recovery experience
B. Respond quickly
C. Encourage and track complaints
D. Implement the service paradox
E. Learn from lost customers
On the military base where Micah is stationed, there is a large, well-stocked garage
where he can take his vintage car to do necessary maintenance. The garage charges
modest space and tool rental fees. Micah really enjoys tinkering with the engine, but
he's not very knowledgeable. That's why he's glad that there is a trained mechanic on
duty at the garage. The mechanic will answer Micah's questions and check his work to
make sure that he has done nothing to damage his car's engine. Micah was especially
proud of himself when he replaced his carburetor recently. Which of the following
service delivery roles is Micah, the customer, performing?
A. A customer mix manager and recruiter
B. A competitor and productive resource
C. A productive resource and contributor to quality and satisfaction
D. A contributor to quality and satisfaction and competitor
E. A recruiter and competitor
Which of the following can influence how satisfied a customer is with a service?
A. Customers' emotions
B. Product features
C. Customers' perception of service quality
D. Uncontrollable situational factor
E. All of the above
Toyota found that intent to purchase a Toyota automobile increased from 37 percent to
_____ percent with a positive service experience.
A. 93
B. 89
C. 82
D. 79
E. 65
Which of the following is NOT a risk incurred by describing services in words alone?
A. Oversimplification
B. Incompleteness
C. Subjectivity
D. Biased interpretation
E. Transformation
In a(n) _____ environment, the servicescape must be planned to attract, satisfy and
facilitate the activities of both customers and employees simultaneously.
A. Saleable service
B. Self-service
C. Customized services
D. Interpersonal services
E. Remote service
The primary goal of businesses that are in the first stage of their relationship with a
customer is to:
A. Create financial bonds
B. Develop a long-lasting relational time horizon
C. Qualify the prospect as a customer
D. Initiate communications in order to attract them
E. Engage in problem-solving sales
According to the service marketing triangle, an advertisement for Randonner Tours that
describes the agency's customized bicycle tours through Europe is a form of _____
marketing.
A. Internal
B. Interactive
C. Integrated
D. External
E. Relational
Trailer calls are also called:
A. Prospecting calls
B. Post transaction surveys
C. Buyers' intentions surveys
D. Lost customer calls
E. Follow-up surveys
Which of the following statements about services is true?
A. A service economy produces services at the expense of other sectors.
B. Service jobs are low paying and menial.
C. Service production is labor intensive and low in productivity.
D. Service is a necessary evil for manufacturing firms.
E. Marketing and managing services presents issues and challenges not faced in
manufacturing and packaged goods companies.
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:
A. Blame states
B. Fairness assessments
C. Perceived disadvantages
D. Service advantages
E. Service attributions
New management of the Falcons football team surveyed former season ticket holder to
determine why they were no longer attending the games. As a result, it set "Clean and
well-stocked restrooms" as one of its _____ customer-defined standards.
A. Responsive
B. Hard
C. Informal
D. Measurable
E. Soft
Flying across the Pacific Ocean is an eight-hour trip that could be dreadful if you did
not fly by Singapore Airlines. An ad that featured a customer saying, "The cabin crew
makes flying with Singapore Airlines a pleasure" and announcing Singapore had won
top honors for international travel in Business Traveler's magazine annual contest would
be an example of _____ marketing.
A. Internal
B. Interactive
C. Integrated
D. External
E. Relationship
The Kingston Little Theater is a semi-professional troupe that presents six productions
annually. It knows that if it presents a musical from the 1950s or the 1960s it will attract
a large audience from the gay community to see the production. It could chart its
demand pattern by looking at:
A. How it acquires prospects
B. Geographical influences on demand
C. Audience empowerment
D. Market segments
E. Seasonal fluctuations
The ad guaranteed that you would be skydiving after only a couple of hours of lessons.
Megan was excited at the prospect. After enrolling in the class, she learned that rather
than skydiving by herself, which is what the ad implied, she would be skydiving in
tandem (belted to another experienced sky diver) due to safety requirements. Megan's
disappointment was the result of:
A. Inadequate management of customer expectations
B. Under-promising and over-delivering
C. Improper vertical communication
D. Differences in policies and procedures across departments
E. Inadequate customer empowerment
Many people expect checkered tablecloths and bottles of Chianti wine at Italian
restaurants and fortune cookies at Chinese restaurants. These are both examples of
which composite dimension?
A. Ambient conditions
B. Functional forms
C. Spatial shapes
D. Signs, symbols and artifacts
E. Holistic icons
Mama C’s Pizza instructs its telephone pizza order takers to pick up the telephone on
the first ring and not to put customers on hold. When answering the telephone, an order
taker must be energetic, friendly and let the customer hear the smile on his or her face.
Mama C’s guidelines for order takers' telephone answering behavior will influence
which of the following service quality dimensions for Mama C’s?
A. Reliability
B. Responsiveness
C. Assurance
D. Empathy
E. Tangibles
The patient examination room in a doctor's office is a:
A. Servicespan
B. Service encounter arena
C. Servicescape
D. Service encounter place
E. Service ground
Yesterday, Mike went to the dentist for his 6-month check-up. Two weeks before he
went to the dentist, he called the office to make an appointment. The day before his
check-up, the office's receptionist called him to confirm his appointment. 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.
A. Product
B. Personalization
C. Process
D. Place
E. Physical evidence
Josh's teachers describe him as a mathematical genius. His parents did not get any
education after high school. They have hired Josh a tutor even though they do not
understand why Josh needs to understand string theory and quantum physics. The
tutoring that Josh receives has a high degree of _____ for Josh's parents.
A. Nonsearchability
B. Abstractness
C. Incorporeal existence
D. Generality vs. specificity
E. Mental impalpability
During the commercialization stage, the service goes live and is introduced to the
marketplace. This stage has two primary objectives. One is to build and maintain
acceptance of the new service among large numbers of service delivery personnel who
will be responsible for day to day service quality. The other is to:
A. Evaluate tangibles for the service that are designed to reduce problems associated
with service heterogeneity
B. Monitor all aspects of the service during introduction and through the complete
service cycle
C. Provide adequate resources to prevent service failures
D. Develop a positioning strategy around which the service provider can build a
sustainable competitive advantage
E. Analyze the market and begin the next new service development process
Toyota found that intent to purchase a Toyota automobile increased from 37 percent to
_____ percent with a positive sales experience.
A. 85
B. 80
C. 75
D. 58
E. 45
If the purpose of the service blueprint is service redesign, the blueprint should be
examined:
A. As a whole
B. Vertically, from the top to the bottom
C. From left to right
D. Vertically from the bottom to the top
E. From right to left
Coinstar is a self-service coin-counter found in many supermarkets. You pour your
coins in and the machine counts the coins and gives you bills for an 8.9 percent fee. In
terms of servicescape complexity, a Coinstar machine is a(n) _____ service
environment.
A. Tangible
B. Lean
C. Flexible
D. Open
E. Elaborate
At the _____ stage of the service development and innovation process, the new service
is made available to a limited number of its potential customers.
A. Commercialization
B. Business analysis
C. Market testing
D. Service development and evaluation
E. Post introduction evaluation
_______ qualities are characteristics of a product consumers may find impossible to
evaluate even after purchase and consumption.
A. Search
B. Cognitive
C. Perceptual
D. Experience
E. Credence
Three decades ago, travelers who were looking for a place to rest for the night looked
for the large, multi-colored Holiday Inn signs. Eventually, the signs started looking
dated and seemed to remind people of early times even though the motel chain knew
travelers wanted to stay in modern rooms with all the latest amenities. Because the
signs were sending the wrong message, Holiday Inn used physical evidence strategy to
create more modern signage. During which step of the physical evidence strategy would
this change have occurred?
A. The blueprinting of the physical evidence of service
B. Updating and modernizing of ambient evidence
C. The creation of a cross-functional service artifact
D. The updating and modernizing of physical evidence
E. Mapped the service encounter points
Which of the following is an element of the servicescape for the Fred Astaire Dance
Studio?
A. Its parquet dance floor
B. Its ad in the Atlanta Journal-Constitution
C. How experienced its dance instructors are
D. Business cards handed out by instructors
E. A brochure describing its dance lessons and its various payment plans
In a service blueprint, the line of internal interaction separates:
A. Customer actions from onstage contact employee actions
B. Backstage contact employee actions from support processes
C. Onstage contact employee actions from backstage contact employee actions
D. Onstage contact employee actions from support processes
E. Customer actions from backstage contact employee actions
The greatest potential variability in the interaction between a customer and a service
firm occurs in a(n) _____ service encounter.
A. Detached
B. Phone
C. Face-to-face
D. Public
E. Integrated communication
Simone called the Puppy Heaven Kennel to reserve a kennel for her German shepherd
while she went on vacation. In terms of the service blueprint, Simone's telephone call is
an example of a(n):
A. Customer action
B. Onstage contact employee action
C. Backstage contact employee action
D. Support process
E. Audience action
In the service marketing triangle, _____ marketing refers to all the activities the firm
must carry out to train, motivate and reward its employees to enable the service promise
to be delivered.
A. Interactive
B. Hierarchical
C. Tactical
D. External
E. Internal
Which of the following types of research has a high monetary cost?
A. Complaint solicitation
B. Critical incident studies
C. Mystery shopping
D. Lost customer research
E. Future expectations research
What is the best way to conduct lost customer research?
may vary
What kind of growth strategy is being used when a convenience store in a small rural
town adds a deli sandwich section?
may vary
What does a typical service blueprint depict?
may vary
Lorenzo attended his first antique auction last night. He did not enjoy the experience
because a number of the attendees smoked and Lorenzo does not smoke. Also a number
of people did not seem serious about buying. It appeared to Lorenzo that some
attendees were there simply to visit with their friends. Lorenzo was there to buy and he
often had trouble hearing the auctioneer because of the talking. In terms of customer
participation, what is the term used to describe Lorenzo's interaction with the other
attendees? What advice would you give the auction house if they wanted to improve the
auction experience for customers like Lorenzo?
may vary
There are several steps involved in understanding demand patterns for an organization.
What is the first thing a service organization must do?
may vary
What kind of labor is the hotel operator performing when she has to explain for the
120th time why the hotel's fire alarm went off accidentally – with a smile?
may vary
What kind of consumer presence is required during physical therapy after hip
replacement surgery?
may vary
Why would a health club create tiered-value service offerings? What are the advantages
of such a strategy?
may vary
Give a brief generalized definition of a customer's perception of service.
Creating a memorable service experience is important to service providers. Restaurants
and hotels on the beach have to train their employees to deal with students who flood
the regions during spring break and who oftentimes have had too much to drink. Which
common theme of service are they involved with in this example?
may vary
What type of service encounter occurs when Sam uses inbound telemarketing to order
greeting cards from the Current catalog?
may vary
What is a service's physical evidence?
may vary
Who would be the boundary-spanning employees at a restaurant like Longhorn
Steakhouse, Applebee's, Red Lobster and Pizza Hut?
may vary
Discuss the following statement: "The terms satisfaction and quality can be used
interchangeably".
may vary
What kind of pricing strategy explains why a traveler is willing to pay $400 to fly first
class when he or she could get to the same destination by paying $125?
may vary
