The Net Promoter Score is embraced by virtually all executives, researchers and loyalty
experts as the “single most reliable indicator of a company’s ability to grow.”
SERVQUAL is a type of requirements research.
The reliability dimension of service quality – delivering the service as promised – is
often totally within the control of frontline employees.
Drugstores, airports, supermarkets and service stations are all using SSTs.
Many companies find themselves in the position of having to manage expectations
downward.
In a service culture, good service is a way of life and it comes naturally to the members
of the organization because it is an important norm.
The process of managing multiple and sometimes conflicting market segments is
known as yield management.
According to the concept of derived services, the value derived from physical goods is
really the service provided by the good, not the good itself.
When Wendy’s extended its hours of operation on Friday and Saturday nights to provide
24-hour fast-food service, it was an example of a service development growth strategy.
Customers assess service performance on the basis of what they desire and what they
deem acceptable.
Rewarding customers has no effect on their likelihood of performing their roles
effectively.
Provider gap 1 is widened when the service provider promises delivery on Monday
when in fact there is no way the service provider can deliver until the following
Thursday.
The four-tiered system for measuring customer profitability uses usage segmentation.
When the customer defines value as low price, the service provider should use prestige
pricing.
An inn near a ski resort would be using a synchro-pricing strategy if it had lower rates
in the summer months than in its busy season.
Studies of service guarantees indicate their existence has no impact on employee
morale.
The deregulation of industries has actually lessened the demand for services marketing
skills.
Firms can train employees to develop technical skills by teaching them to engage in
pleasant conversation, ask questions or use humor as they interact with customers.
Service guarantees are appropriate for any company and every service situation.
Technology is creating a demand for ethnocentric services.
Derived service expectations occur when customer expectations are driven by another
person or a group of people.
Social bonds alone may not tie the customer permanently to the firm, but they are much
more difficult to imitate than financial incentives.
Restaurants with salad bars view customers as productive resources.
People who do not complain often believe that complaining is a waste of time and
effort.
A state auditor who is expected to deliver quality, individualized service to state offices
and departments while at the same time finishing jobs as quickly as possible is
experiencing a(n) _____ tradeoff:
A. Demand/supply
B. Client/organization
C. Customization/standardization
D. Inclination/competency
E. Quality/productivity
The Detroit Tigers, a professional baseball team, prohibits the sale and consumption of
alcohol in the “Family Section” of Tiger Stadium. The Detroit Tigers are:
A. Rewarding customers
B. Positioning customers
C. Managing the customer mix
D. Defining customers’ jobs
E. Educating customers
Compatibility management is most important in which of the following services?
A. An Internet service provider
B. A home correspondence course
C. A do-it-yourself house cleaning
D. Mental health support group
E. Long distance telephone service
The _____ of a customer is a concept that looks at customers from the perspective of
their lifetime revenue or profit contributions to a company.
A. Relationship value
B. Attractiveness index
C. Profit performance quotient
D. Calculated risk
E. Loyalty factor
When Alicia went to talk to a cleaning service about having the carpets in her apartment
shampooed, she was told that if she would rent the service’s equipment and do it herself,
it would cost her 50 percent less and be done much sooner because the service’s
personnel were booked solid for the next two weeks. The cleaning service is:
A. Rewarding customers
B. Positioning customers
C. Managing the customer mix
D. Defining customers’ jobs
E. Educating customers
Which of the following statements describes a marketing implication that results from
the simultaneous production and consumption of services?
A. Services cannot be returned or resold
B. Service quality depends on many uncontrollable factors
C. Employees affect the service outcome
D. Services cannot be readily displayed or communicated
E. There is no sure knowledge that the service delivered matches what was planned and
promoted
_____ involves identifying the benefits and the attributes that customers expect in a
service.
A. Complaint solicitation
B. Requirements research
C. A relationship survey
D. A key client study
E. A customer panel
Supermarkets with express checkout lanes for customers purchasing 10 items or less are
using which of the following waiting line strategies?
A. Establishing a reservation process
B. Making waiting fun or at least tolerable
C. Expanding waiting room capacity
D. Differentiating waiting customers
E. Employing operational logic
Cadet Uniform Services, a Canadian company that rents uniforms to major
corporations, requires its new delivery drivers to go through a year-long training
regimen before they receive their own delivery routes. First, new drivers go through
three months of training to learn the whole scope of the business before setting foot in a
delivery truck. Then they ride with experienced delivery drivers for nine months to
watch how they interact with customers. According to the service marketing triangle,
Cadet’s training program is a form of _____ marketing.
A. Internal
B. Hierarchical
C. Interactive
D. Integrated
E. External
A(n) _____ expectation occurs when customer expectations are driven by another
person or group of people.
A. Derived service
B. Other-self
C. Dyadic
D. Service-vision
E. Shared
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
Which of the following is an example of a specific behavior or action that defines the
performance expected by customers?
A. Cost estimate is price customer pays
B. Fixes the product right the first time
C. Delivers the product on the promised date
D. Greets customers within 5 minutes of entering the store
E. All of the above
Which of the following incidents is likely to influence a customer’s perception of
service quality of an appliance store?
A. A late night call to the store’s service department
B. The relationship the customer has established with the store after buying several
different appliances
C. A salesperson’s explanation of extended warranty service
D. The welcoming atmosphere of the store
E. All of the above
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 its cabin crew gives the impression that it is truly their pleasure to serve the
passengers. In short, they make flying with Singapore Airlines very satisfying. For this
passenger, what role is the cabin crew playing?
A. Embodying the service
B. Marketing the organization
C. Personifying the service in the customer’s eyes
D. Engaged in capacity management
E. Eliminating the need for differential advantages
Last summer, Kenta and Sawako spent part of their vacation in St. Louis and Boston,
staying at the St. Louis Hilton and the Boston Hilton. When they checked in at the St.
Louis Hilton the front desk clerk was very friendly and helpful. However, when they
checked in at the Boston Hilton, the front desk clerk was cold and indifferent. The
inconsistent front desk clerk behaviors experienced by Kenta and Sawako resulted
from:
A. Inadequate management of service promises
B. Over-promising in advertising and personal selling
C. Inadequate external marketing communication
D. Inadequate interactive marketing communications
E. Inadequate internal marketing communications
Which of the following is NOT a research objective for improving upward
communication in a service organization?
A. Gain first-hand knowledge about customers
B. Improve internal service quality
C. Gain first-hand knowledge of employees
D. Obtain ideas for service improvement
E. Gain first-hand knowledge about competitors
Johanna wants to learn self-defense and has signed up for a class at her local YMCA.
She chose this particular class because her sister took it last year and told her it was a
great class. While Johanna has never had a need to defend herself, everyone tells her it
is a good idea to learn how. Johanna’s service expectation for the class was shaped by:
A. A social needs philosophy
B. Word-of-mouth communication
C. Explicit service promises
D. Transitory need intensifiers
E. Her ego-oriented definition of service
When students at Fairleigh Dickinson University complete a student evaluation of
faculty questionnaire at the end of a semester, one of the items they are asked to
evaluate on a five-point scale is, “The instructor presented the material clearly and
summarized major points.” This statement evaluation is a _____ measurement.
A. Tangible
B. Basic
C. Formal
D. Soft
E. Informal
______ are the most common types of new services.
A. Major innovations
B. Start-up businesses
C. Service line extensions
D. Service improvements
E. Style changes
There are several auto repair shops in a three-block area on King Street. One of the
shop owners decided to extend her shop’s operating hours until 10 p.m.
Monday-Thursday and provide a pick-up and delivery service with bonded drivers as
well as guarantee all repairs for six months. This job owner is engaged in _____
marketing.
A. Defensive
B. Churn
C. Guerilla
D. Flank-movement
E. Offensive
One of the potential costs in employee empowerment is:
A. Higher labor costs
B. Slower online responses to dissatisfied customers during service recovery
C. Slower online responses to customers during service delivery
D. Increased employee dissatisfaction
E. Increased customer dissatisfaction
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.
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
_____ quality refers to how a service is delivered to the customer.
A. Output
B. Interaction
C. Experiential
D. Technical outcome
E. Interactive
____________labor entails delivering smiles, making eye contact, showing sincere
interest and engaging in friendly conversations with customers who are essentially
strangers and who may not ever be seen again.
A. Physical
B. Mental
C. Personal
D. Accountable
E. Emotional
At Harrah’s Casinos and Hotels, a portion of employee compensation is linked to
customer satisfaction scores, so employees have an investment in achieving excellent
service levels. Employees also have a vested interest in the performance of the entire
team in serving customers exceptionally well. Outstanding employees are recognized
with special Chairman’s Awards, and their names are published in Harrah’s annual
report. Harrah’s is using which of the following human resources management
strategies for closing provider gap 3?
A. Hire the right people
B. Provide needed benchmarks
C. Retain the best people
D. Develop servicescapes to deliver service quality
E. Set service standards
Tom Grantham, a U.S. citizen, decided to outsource the preparation of his personal
income taxes to a company in India. After he emailed his earnings and scanned receipts,
his tax return was completed in 2 days at a cost of $50 – about one-third of what a U.S.
firm like H&R Block charges. However, he had to file his return as “self-prepared,”
since it was not prepared by a U.S. accountant. Using a foreign service provider may
require customers to reset their:
A. Attitudes
B. Judgments
C. Expectations
D. Perceptions
E. Performances
After his home was burglarized, Rich became concerned about the safety of his wife
and three children since he often traveled out-of-town on business. To prevent further
burglaries and ensure his family’s safety, Rich decided to purchase a home security
system from ADT Security Systems. Rich’s expectation that an ADT home security
system will protect his family and prevent future burglaries is influenced by his
____________.
A. Social needs
B. Derived service expectations
C. Personal service philosophy
D. Perceived service alternatives
E. Adequate service expectations
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
The marketing department at a well-known university has 11 full-time faculty members
and 3 part-time faculty members. There are more than 400 marketing majors at this
university. The primary constraint for offering a course in mobile marketing would
more than likely be:
A. Equipment
B. Labor
C. Money
D. Facilities
E. Time
For their wedding anniversary, Beth and Rick wanted to go skydiving. They enrolled in
a skydiving class at the local airport at a cost of $260. After a 30-minute training course
in which everything that was going to happen to them was carefully explained, Beth
and Rick were sent up in an airplane with two skydiving experts. Each was placed in a
harness arrangement with one of the experts and did what is called a tandem dive. With
a tandem dive, Beth and Rick get to enjoy the experience without having to worry about
when to open the parachute. The skydiving expert does that for them. This tandem jump
illustrates the _____ characteristic of services.
A. Versatility
B. Heterogeneity
C. Simultaneous production and consumption
D. Perishability
E. Intangibility
Some retailers have feared that their customers will like the convenience of Internet
shopping and quit shopping at their stores. To combat this, many mall retailers have
tried to create a shopping experience that is entertaining because they believe that
Internet retail sites are not designed to be fun. That’s why you’ll see fashion shows,
magic acts, local singers and children’s art exhibits at malls. The malls are encouraging
_____ behavior.
A. Social interaction
B. Cognitive
C. Avoidance
D. Ergonomic
E. Holistic
The process for installing a new in-dash audio system in Leo’s car took almost four
hours, which Leo spent sitting in the waiting room of J.J.’s Auto Sound. Leo paid _____
costs for the installation of his new audio system.
A. Convenience
B. Fiscal
C. Physiological
D. Time
E. Search
What are some influences on the lifetime or relationship value of a customer?
may vary
What are the two types of market segmentation commonly used by service providers?
may vary
On which of the provider gaps are deficiencies in human resources management
policies most likely to have the greatest impact?
may vary
On Saturday nights, the wait for a table at the popular restaurant Chez Anthony can be
more than one hour. How would the waiting experience differ for a person waiting
alone as compared to a person waiting with a group of friends?
may vary
What do deeds, processes, and performances have in common?
may vary
Comment on the following statement: “The recovery paradox is a superior strategy to
the ‘Do it right the first time’ strategy.”
may vary
What do servicescapes, personal selling and service encounters have in common?
may vary
Discuss the reasons why people may vary in their individual responses to a service
environment.
may vary
When Allyn and Baylee received the catalog from the antique auction, they assumed the
auction would be of the highest quality antiques because the 32-page catalog was filled
with attractive color photos on slick high-quality paper and cost $2.50 to mail.
Categorize this catalog as a source of Allyn’s and Baylee’s desired and predicted service
expectations.
may vary
Luke Roche has developed a great new massage therapy that can completely alleviate
the pain produced by the typical migraine headache. He wants to patent his massages.
What is wrong with this plan?
may vary
Which elements of the services marketing mix are influenced by the techniques used to
recruit and train new employees as telemarketers?
may vary
List three groups of service providers that typically use results-based pricing?
may vary
A television production company that asks viewers of a particular show to encourage
their friends and relatives to watch next week’s episode is using which method to create
effective service communications?
may vary
List the three major determinants of desired service levels.
may vary
What does it mean when someone says, “The Internet is a service”?
may vary