_______________ is the percentage of a customer’s spending within a category that is
captured by a given service.
A. Share of spending
B. Share of market
C. Share of customer
D. Share of wallet
E. Share of budget
Which of the following statements does NOT describe how consumers typically define
value?
A. Value is all that I get for all that I give
B. Value is everything I want in a service
C. Value is low price
D. Value is reliable service
E. Value is the quality I get for the price I pay
The final step in the process for developing customer-defined standards is to:
A. Provide feedback about performance to employees
B. Periodically update target levels and measures
C. Track measures against standards
D. Provide feedback about performance to customers
E. Establish measures and target levels
The marketing that goes on between an insurance agent and a current customer that is
buying car insurance for a new teenage driver is an example of _____ marketing.
A. Formal
B. External
C. Interactive
D. Controlled
On a recent visit to The Home Depot store, a sales associate greeted Madison when she
entered the store, helped her locate the items she needed to repair her gutters and
suggested how she could prevent gutter problems in the future. The assistance provided
by the sales associate illustrates the ______ of services.
A. Intangibility
B. Comparability
C. Divisibility
D. Perishability
E. Compatibility
At the restaurant last night, the restaurant owner asked the server to turn the television
on the Braves game and to turn up the sound so he could hear it. A group at a nearby
table asked the server to turn down the sound so they could hold a conversation. Yet
another group of patrons asked that the television be turned to another channel that was
showing a Clint Eastwood movie. The server had to deal with both _____ conflicts.
A. Person/role and Inter-client
B. Heterogeneous and person/role
C. Organization/client and person/role
D. Inter-client and organization/client
E. Escalating and organization/client
The new owner of the Atlanta Falcons football team wanted to know why game
attendance was low. Former purchasers of season tickets were asked to provide an
anecdote about a satisfying and a dissatisfying experience at a Falcon game. The
researchers used:
A. Complaint solicitation
B. Critical incidents studies
C. Relationship surveys
D. Trailer calls
E. Customer panels
Beyond the specific inherent benefits of receiving service value, customers also benefit
in other ways from long-term associations with firms. The three types of relational
benefits for customers are:
A. Confidence benefits; economic benefits; behavior benefits
B. Management benefits; confidence benefits; economic benefits
C. Confidence benefits; social benefits; special treatment benefits
D. Confidence benefits; special treatment benefits; economic benefits
E. Social benefits; management benefits; behavior benefits
One significant difference between the U.S. and Japanese culture is the love and respect
the Japanese give their elders. A service provider who is trying to cater to the needs of
the elderly might talk to some Japanese-Americans to gather some ideas on how to
improve service quality. The cultural difference should make the service provider view
providing service to the elderly from a different perspective. This sort of service
research is called:
A. Multicultural surveys
B. Market-oriented ethnography
C. Process checkpoint evaluations
D. Requirements research
E. Diversity studies
All of the following are strategic issues that the wallet allocation rule addresses
EXCEPT:
A. Managers cannot evaluate their firms without taking competition into account.
B. The rank that consumers assign to a service relative to the others in the same
category matters.
C. Parity among brands the customer uses is unfavorable
D. The more brands a customer uses, the lower the potential for everyone.
E. All of the above are strategic issues that the wallet allocation rule addresses.
To calculate what it charges a client, a detective agency charges $200 a day direct costs
plus an additional $50 per day to pay for office expenses, licenses and other fixed costs
and fifteen percent of full costs for the profit margin. What type of pricing strategy is
being used by the detective agency?
A. Contingency
B. Cost-based
C. Perceived value
D. Fee for service
E. Going-rate
The sources of customer expectations are market-controlled factors such as:
A. The individual’s innate needs
B. The individual’s previous experiences
C. Word-of-mouth communication
D. Sales promises
E. What the competition is offering
Which of the following service organizations has an elaborate environment?
A. Six Flags over Texas
B. Dave’s Dry Cleaners
C. Nancy’s Nails
D. The Cutting Edge Hair Salon
E. New Attitudes Car Wash
On a recent concert tour, the Foo Fighters sang a number of classic songs from their
past albums, in addition to playing songs from their newest album. By singing both old
songs to satisfy older audience members and songs from its more recent album to
satisfy younger fans, the Foo Fighters were trying to reduce _____ conflict.
A. Person/role
B. Heterogeneous
C. Organization/client
D. Inter-client
E. Demographic
Companies that emphasize acquiring new customers rather than retaining current
customers are using _____ marketing.
A. Transactional
B. Developmental
C. Proactive
D. Relationship
E. Acquisition
In many cultures, weddings are timed to occur on lucky days. In 2011, wedding
planners from Las Vegas, Nevada, to Mumbai, India, knew long before the auspicious
date of November 11th (11/11/11) that this would be one of their busiest days of the
year, if not the century. Because other dates would just not be as lucky for the blushing
brides and grooms, and simply would not suffice, the wedding planners had to prepare
all year for more weddings on this one date than on any other day throughout the year.
This example illustrates the _____ characteristic of services.
A. Versatility
B. Heterogeneity
C. Simultaneous production and consumption
D. Perishability
E. Intangibility
Which of the following statements about customer perceptions of service and consumer
purchase intentions is true?
A. There is no relationship between customer perceptions of service and any consumer
intentions
B. While there is no relationship between customer perceptions of service and purchase
intentions, there is a strong relationship between perceptions of superior service and
increased word-of-mouth communications
C. Researchers suspect there is little relationship between a customer perception of
service and his or her intent to buy
D. Customer perceptions of service affect consumer intentions in several positive
ways-including the purchase intention
E. Customer expectations – not perceptions – affect consumer behavioral intentions
Denise said all she expected from the day care at the gym she belonged to was to get
her children back at the end of an hour and learn the police had not been called because
of something they did. She uses this particular gym because the day care will let her
unruly children stay even though it provides only the nominal supervision. Denise has
_____ expectations about the day care.
A. Desired
B. Acceptable
C. Conventional
D. Minimum tolerable
E. Experience-based
Peak demand for rooms at the Phoenician, an upscale hotel in Scottsdale, Arizona,
occurs during the tourist season from November through mid-April. During the summer
slow season when demand for rooms drops considerably, the Phoenician encourages
local residents to experience the beauty of the hotel on weekends by offering
attractively priced weekend packages. The Phoenician uses which of the following
strategies for shifting demand to match capacity?
A. Differentiate on price
B. Modify timing and location of service delivery
C. Vary the service offering
D. Stretch capacity
E. Communicate with customers
The University of Leeds in the U.K. released findings of its study of television viewing
behaviors. Seventeen families had permission for cameras with sound to be placed in
the main living areas of their homes for two three-week periods over two years to watch
them watch television. The University of Leeds used _____ to determine that people
who have specifically chosen to watch a program are more likely to remain present for
the commercial breaks within it.
A. Multicultural surveys
B. Market-oriented ethnography
C. Process checkpoint evaluations
D. Requirements research
E. Diversity studies
Companies sometimes aim too high in setting improvement targets for nonfinancial
measures of performance. Managers tend to make mistakes in this area by assuming:
A. Leading and lagging variables do not influence time utility
B. Qualitative metrics are more telling than quantitative metrics
C. 100 percent customer satisfaction is the only important goal
D. Statistical reliability and statistical validity are always important
E. The improvement of non-financial measures leads to offensive marketing
Addison White is an event planner who specializes in family reunions. He creates
situations in which family members can visit, share memories and get to know each
other more intimately. He may rent the family a large house in the mountains or
schedule them for a picnic in a national forest. White relies on ______ behavior to make
the reunions a success.
A. Social interaction
B. Cognitive
C. Avoidance
D. Ergonomic
E. Holistic
Another name for human factors design is _____, which could lead to the creation of
airline passenger seats that provide adequate back support and leg room.
A. Bioengineering
B. Physiological tooling
C. Physical factors design
D. Holistic design
E. Ergonomics
New owners of the Atlanta Falcons wanted to increase attendance by giving customers
want they wanted. After determining that family-oriented halftime shows were an
important consideration for a large portion of its target market, the Falcons researched
specific ideas such as fireworks displays, a battle of the bands featuring local high
school bands, drawings for prizes and musical concerts. The additional research would
have been done during which step of the developing customer-defined standards?
A. Developing feedback mechanisms for measurement of standards
B. Identifying existing or desired service encounter sequences
C. Establishing measures and target levels for standards
D. Deciding whether hard or soft standards are appropriate
E. Translating customer expectations into specific behaviors and actions
How would a day care center operator benefit from the implementation of relationship
marketing with the parents of three preschool children?
A. The children would benefit from socialization skills
B. The parents wouldn’t have to go looking for a new facility to keep their children
C. The parents would ask for a reduced monthly rate
D. The parents would get to socialize with the other parents of children at their center
E. The parents would spread the word about their happiness with the services provided
by the day care center
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
Which of the following is NOT an example of a strategy used to shift demand to match
capacity?
A. Differentiate on price
B. Modify timing and location of service delivery
C. Vary the service offering
D. Stretch capacity
E. Communicate busy days and times to customers
Emergency room employees select and see patients in an order based on the patients’
need for treatment. Victims who have life-threatening injuries are seen ahead of those
with minor complaints like an ingrown toenail or a case of poison ivy. Emergency
rooms differentiate their waiting customers on the basis of:
A. Willingness to perform service role
B. Importance of the customer
C. Duration of the service transaction
D. Urgency of the job
E. Payment of a premium price
Many service organizations have discovered that, to be truly responsive to customer
needs, frontline employees need to be ___________ to accommodate customer requests
and to recover on the spot when things go wrong.
A. Empowered
B. Socialized
C. Tutored
D. Lectured
E. Promoted
The ad for legal services that Marla saw indicated the lawyers would receive no money
unless their client did. To Marla, this statement indicated the legal firm offering this
service was using:
A. Synchro-pricing
B. Two-part pricing
C. Mixed bundling
D. Contribution margin pricing
E. Contingency pricing
The University of Central Florida’s Incentive/Efficiency Program encourages
employees to submit tangible ideas or suggestions that will result in savings or generate
additional revenue for the University of Central Florida. The person who suggests an
adopted proposal receives a cash reward equal to 10 percent of the first year’s net
savings or generated revenues. The University of Central Florida’s Incentive/Efficiency
Program is designed to achieve which of the following research objectives?
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
Rama thought the light blue paint on the walls of the hospital waiting area was a vast
improvement over the old brown paint. The repainting of the walls of the service
provider is an example of a:
A. Major innovation
B. New service for the currently served market
C. Service line extension
D. Service improvement
E. Style change
Based on her experience as a waitress, Belle believes that a server in a restaurant should
keep the customers’ drink glasses full. When she goes to a restaurant where she has to
ask to have her drink glass refilled, she automatically assumes that the restaurant has
bad service. What is the concept that describes her attitude about the proper conduct for
the servers?
may vary
Discuss the ways in which companies are using “big data” to define service standards
and improve the customer experience.
may vary
With respect to customer demand, what do the insurance industry, the banking industry
and the dry cleaning industry have in common?
may vary
Last spring the advisement center at Santa Rosa Community College was unable to help
all the students who wanted advice on the school’s new core curriculum. During the
summer the advisement center has hired you to analyze its operational procedures for
any inefficiencies. As it exists now, students enter a room, take a chair or more likely a
position standing up and get to talk to their assigned advisor whenever that advisor
becomes free. Since all the advisors have access to the same information, you have
suggested that the center set up queues. Briefly explain the different queue
configurations and indicate which would be best in this situation.
may vary
Why are spatial layout and functionality very important to customers in self-service
environments?
may vary
Before a trade show ever opens, personnel spend hours assembling the booths, making
sure they are all wired for electricity and ensuring the safety of the people who attend
the show. This is an example of which component of the service blueprint?
may vary
In terms of service success or failure, what is an attribution?
may vary
Describe the three strategies associated with the complementary pricing of a service?
may vary
Supermarkets know that most senior citizens shop on Wednesday, so the music that day
is mostly big band sound from the 1940s. Which environmental dimension of the
servicescape are the supermarkets using?
may vary
How would you explain a service culture to the owner of a talent agency who represents
musicians and comedians who entertain on college campuses?
may vary
A hotel porter overhears a guest crying because she left a pair of newly purchased shoes
at the counter of a retail store some blocks away. The porter volunteers to pick up and
deliver the guest’s new shoes in time for her to wear them to the banquet at 7 p.m. The
porter is trying to make the service encounter memorable. This type of action is in
response to what service theme?
may vary
What are the overall goals of a customer participation strategy?
may vary
What are the challenges and risks in using yield management?
may vary
Which type of complainer has an above-average propensity to complain and will gladly
complain to anyone or anything that will listen?
may vary
Weight loss centers provide moral support and weight-loss aids to those who believe
they need to diet. The centers often use before and after pictures of their most
successful cases to overcome problems associated with which service characteristic?
may vary
Imagine you have been hired to work an internship in a resort hotel in Hilton Head,
South Carolina, for the summer. The manager learns you have had this service
marketing class. In talking with you, she states that she feels the hotel is not always
providing satisfactory service and may be performing in some areas below customer
expectations. She stops talking and looks at you. Remember your future career may be
riding on your answer. What do you tell her?
may vary