Waiting time feels longer when customers:
A. Are relaxed while waiting
B. Are reading or drinking a beverage while waiting
C. Are alone while waiting
D. Know how long they will have to wait
E. Understand why they are waiting
The _______ suggests an initially disappointed customer who has experienced good
service recovery might be even more satisfied and loyal as a result.
A. Baker’s dozen paradigm
B. Service recovery paradox
C. Halo effect
D. Service dilemma
E. Service quandary
In a Federal Express overnight delivery service blueprint, which of the following is an
example of an onstage contact employee action?
A. Package is flown to destination
B. Federal Express driver picks up package from customer
C. Federal Express driver drops off package at airport
D. Customer prepares package for Federal Express driver
E. Federal Express telephone service representative receives order from customer
Cookies is a retail store where customers host parties for guests to bake and decorate
cookies. Children attending a party staged at Cookies were upset when the adult owners
of the store did all of the baking while they watched. The store owner’s insurance
provider had told her that she was not covered if a minor was injured on her premises.
The children’s disappointment was a result of:
A. Inadequate management of customer expectations
B. Under-promising and over-delivering
C. Improper vertical communication
D. Differences in policies and procedures in internal marketing
E. Inadequate customer empowerment
While most KFC restaurants look alike, there is one in Marietta, Georgia, that is in the
base of a 56-foot tall chicken replica with rolling eyes and a moving beak. In this
example, the servicescape is acting as a:
A. Package
B. Facilitator
C. Differentiator
D. Boundary spanner
E. Socializer
All of the following are important criteria for creation of appropriate service standards
EXCEPT:
A. The standards should be based on behaviors and actions that are very important to
customers
B. The standards should cover performance that needs to be improved or maintained
C. The standards should be understood and accepted by employees
D. The standards should be reactive rather than predictive
E. The standards should be challenging, but realistic
A chiropractor published a newspaper insert ad that contains almost 1,000 words and
described in detail how he has helped patients who have been diagnosed with
rheumatoid arthritis and other debilitating diseases to the point where they no longer
have to rely on medication and no longer need to have any assistance when walking.
The chiropractor is __________ to address service intangibility.
A. Presenting vivid information
B. Using narrative
C. Using viral marketing
D. Using brand icons
E. Focusing on the tangibles
A florist had promised to have the bridal flowers delivered to the wedding rehearsal
dinner by 6 p.m. Because of vehicle problems, the flowers did not arrive until the meal
was nearly over and the bride and her mother were very upset. To show how sorry he
was for the poor service, the florist put extra flowers in the bridal bouquet and gave
each mother and grandmother a free orchid corsage. The bride and her mother were
extremely pleased with the extra flowers and have recommended the florist to a number
of their friends. The florist is wondering if he shouldn’t deliberately underdeliver other
jobs, compensate the consumer with some upgrade and benefit from even more positive
feedback. The florist is responding to the:
A. Baker’s dozen paradigm
B. Service recovery paradox
C. Halo effect
D. Service dilemma
E. Service quandary
The receptionist at Dr. Smith’s office is shut off from the waiting area by a glass
partition. She must open a small door to communicate with patients and at times, it is
difficult to get her attention. In this example, the servicescape could be improved with
respect to its role as a:
A. Package
B. Facilitator
C. Differentiator
D. Boundary spanner
E. Socializer
Canadian Airline did market research to determine the expectations of business
travelers-its target market. It learned business travelers don’t view air travel as a simple
product any more but as a sequential process with a series of customer service
interactions which to them seemed at times arbitrary. A traveler could not estimate how
much time it would take to make reservations, to check-in, to board or any of the other
interactions. The time spent on these activities was typically directly related to the
experience and training of the airline’s employees. Canadian Airline could provide
better service to its target customers if it could:
A. Change customers’ perceptions of flying
B. Integrate all service functions
C. Standardize its services
D. Rely more on the tangible dimensions of service
E. Modify customers’ expectations
At Pronto, a discount store chain, if the shelf price is not on an item, checkout clerks
can take the customer’s word for prices up to $20. The customer does not have to wait
for the clerk to check the price with someone on the floor. By giving its employees the
authority to make decisions on the customer’s behalf, Pronto is:
A. Including employees in the company vision
B. Empowering employees
C. Measuring and rewarding strong service performers
D. Promoting teamwork
E. Developing service-oriented internal processes
Extron Electronics sells coaxial cables for connecting computers to all types of
peripheral devices like printers, modems, and fax machines. For the benefit of its
customers, Extron provides a laminated card with pictures of all the possible cable
connections that a customer could need. With this card, a customer can order from one
to any number of connectors with as many feet of cable as is needed. Orders can be
placed by calling a toll-free number, sending an email, or using the company’s website.
Company reps are also available 24-hours a day in case the customer is not sure which
drawing on the card matches his or her needs. By integrating its services marketing
communications, Extron is closing provider _____ of the gaps model of service quality.
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
When Shelly hired the housecleaning service, she asked them to use her hypoallergenic
cleaning supplies. Instead the workers used their own supplies and Shelly had to lose a
day from work because of her allergic reaction to the smell of the cleaners. When
Shelly looked at the service guarantee that the workers had left, she found that she
could get a reimbursement for all of her out-of-pocket expenses if she had a notarized
letter from her doctor describing her condition and her reaction, an affidavit from the
workers that they had used the wrong cleaners and another notarized statement that she
would not have become ill if the workers had used the right cleaners. This service
guarantee is ineffective because it is NOT:
A. Easy to invoke and collect
B. Customized
C. Condition specific
D. Challenging but realistic
E. Standardized by situation
When a customer chooses between a restaurant in a pricy suburb of Atlanta and a
restaurant in a small farming community 45 miles away, there is a(n) _____ made by
the locations that the customer will be more likely to find exotic cuisine and better
trained servers at the downtown Atlanta restaurant.
A. Explicit service promise
B. Perceived service alternative
C. Word-of-mouth communication
D. Implicit service promise
E. Marketing testimonial
Many white-collar workers have heard the story about the busy executive who billed
the doctor for keeping him waiting when the patient showed up promptly at his
appointment time or has dreamed of doing it themselves. This is an example of the
_____ costs of services.
A. Convenience
B. Monetary
C. Psychological
D. Time
E. Search
Creating tiered-value service offerings is a strategy for:
A. Personal selling
B. Managing customer expectations
C. Communicating with customers
D. Managing horizontal communications
E. Exceeding customer expectations
Raul took his dog Buffy to dog training school to stop Buffy from barking. As soon as
the dog returned home, she started her same pattern of barking. Raul was highly critical
of the trainers for not teaching Buffy not to bark even though he had not continued the
reinforcement technique he was supposed to use to encourage Buffy’s good behavior.
Raul’s customer satisfaction was adversely affected by:
A. Poor service quality
B. His perception of service quality
C. His emotional state
D. His attribution for service failure
E. His perception of equity
Which of the following is NOT an example of a service business?
A. Amusement park
B. Hotel
C. Bank
D. Department store
E. Paper mill
Progressive Insurance examined insurance from the customer’s viewpoint and saw how
difficult it was to get an auto claim processed and paid by insurance companies. Then
the company crafted its service strategy around solving that problem. The company has
fleets of claim adjustors on the road every day, ready to rush to the scene of an accident
in their territory and provide fast claims processing-sometimes on the spot. The ability
of the insurance company to have an adjustor at accident sites so quickly is an example
of which of the following service quality dimensions?
A. Reliability
B. Responsiveness
C. Assurance
D. Empathy
E. Tangibles
Gina and Henry were having breakfast when they decided they wanted to have pizza
and watch a movie that night. When she got home from work, Gina turned on her
computer, logged on to the Netflix site, and chose the movie Moneyball to view via
online video streaming. Next she logged on to her favorite pizza restaurant’s Web site
and ordered a large pepperoni pizza and a bottle of soda to be delivered at 6:45 p.m.
Gina and Henry enjoyed their evening. Which trend that influenced the development of
services marketing is illustrated here?
A. The increasing importance of service industries to the U.S. and world economies
B. The decrease of human interaction as a result of widespread use of technology-based
services
C. The growth in the use of technology-based services
D. Increased competition in the entertainment industry
E. The fact that manufacturing firms are placing increased emphasis on providing
services
Which of the following statements describes a problem in cost-based pricing for
services?
A. Monetary price must be adjusted to reflect the value of non-monetary costs
B. Heterogeneity of services limits comparability
C. Prices may not reflect customer value
D. Labor is more difficult to price than materials
E. Information on service costs is not available to customers
An important influence in desired service expectations is ____________, the
customer’s underlying generic attitude about the meaning of service and the proper
conduct of service providers.
A. Personal need
B. Personal service philosophy
C. Derived service expectations
D. Perceived service alternative
E. Situational attitude
When a service firm’s resources are fully employed, but not overused; and customers
are receiving quality service in a timely manner, the firm is operating _____ capacity.
A. Above maximum
B. At maximum
C. Above optimum
D. At optimum
E. Below optimum
The primary constraint on service production for a popular, well-established theater
company that annually presents a series of musical comedies is:
A. Equipment
B. Labor
C. Money
D. Facilities
E. Time
Last week, Francine bought a 6-month membership package at Planet Fitness. She
plans to exercise at Planet Fitness four days a week by participating in an aerobics
class, using the nautilus equipment and having a personal trainer. By the time her
6-month membership expires, Francine hopes to lose 20 pounds, tone and strengthen
her muscles, improve her cardiovascular fitness and look and feel more attractive.
Francine’s expectations for her health and physical appearance reflect her _________
level of service for Planet Fitness.
A. Desired
B. Adequate
C. Transactional
D. Predicted
E. Ideal
FedEx developed a 12-item statistical Service Quality Indicator to measure customer
satisfaction and service quality. The index is comprised of customer-defined
performance standards such as number of missed pick-ups, number of lost packages,
and number of late deliveries. Each of the performance standards is weighted based on
the relative importance of each standard to customers. By developing a Service Quality
Indicator that incorporates customer-defined performance standards, FedEx is closing
provider _____ of the gaps model of service quality.
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
The characteristic of a service that refers to differences in employees’ performances is:
A. Intangibility
B. Heterogeneity
C. Divisibility
D. Perishability
E. Simultaneous production and consumption
Internet service providers that offer subscribers their choice of hook-up speed and type
of spam blockers are:
A. Making realistic promises
B. Creating tiered-value service offerings
C. Communicating with customers
D. Managing horizontal communications
E. Exceeding customer expectations
The employees at Franklin Credit Union correspond to the _____ in the
stimulus-organism-response model.
A. Organic motivator
B. Stimulus
C. Organism
D. Referent
E. Role players
Which of the following is NOT a risk associated with the use of price differentiation to
smooth demand?
A. Customers paying higher prices may feel they are being treated unfairly
B. Attracting undesired market segments
C. Increased capacity utilization
D. Customers becoming accustomed to low price
E. The potential impact on the organization’s image
FedEx honors a handful of non-management employees with its Golden Falcon award
each month, recognizing efforts that are “above and beyond their customary line of
duty.” This award includes a gold pin with the gold falcon emblem and ten shares of
FedEx stock. By giving deserving employees the Golden Falcon award, FedEx is using
which of the following human resources management strategies for closing provider
gap 3?
A. Hire the right people
B. Provide needed support systems
C. Retain the best people
D. Develop servicescapes to deliver service quality
E. Creating an employee-oriented culture
_____ are services produced entirely by the customer without any direct involvement or
interaction with the firm’s employees.
A. Actor-oriented services
B. Drama monologues
C. Self-service technologies
D. Frequency marketing programs
E. Competitive differentiators
The extent to which customers recognize and are willing to accept variation in service
performance is called the ____________:
A. Acceptable variation
B. Extent of indifference
C. Area of acceptability
D. Area of impartiality
E. Zone of tolerance
While finding someone who will count and wrap your coins has been an available
service for years, the recent invention of machines that, for a small fee, will perform the
same service is an example of what kind of innovation?
may vary
Michael Anthony performs on college campuses as a hypnotist. He typically invites
members of the audience up on stage to be hypnotized while the rest of the audience
watches. Consider the following statement: “Experiencing a Michael Anthony
performance requires the same amount of audience participation as attending a
symphony concert.” Is it right or wrong?
may vary
In many instances, “fellow customers” are present in the service environment and can
affect the nature of the service outcome or process. List and discuss four ways that
“fellow customers” can adversely affect the service delivery at a steak restaurant.
may vary
Discuss the two major ways that technology has influenced the customer gap.
may vary
On which of the provider gaps do the actions of retailers, franchisees, agents, and
brokers have the greatest impact?
may vary
Briefly define customer expectations for a service.
may vary
Jeffrey overheard two women comparing the way the dog groomer clipped their
poodles. One claimed the groomer did not cut the hair between her dog’s toes as was
advertised, but that everything else about the cut was perfect. The other groused that the
groomer left the hair on her dog’s tail too long, but at least the hair on his feet had been
cut. Which characteristic of service were the two women discussing?
may vary
What two factors influencing customers’ desired and predicted expectations can the
service provider control?
may vary
What are the two types of research methods that can be used to document customers’
opinions about whether service performance met standards?
may vary
Which provider gap is a company trying to narrow when it concentrates on developing
a service recovery strategy?
may vary
In order to find the best veterinarian service for her prized German shepherds, Joelle
interviewed several different veterinarians and did extensive research before she found
one she thought provided value. What kind of a nonmonetary cost did Joelle expend as
she interviewed different vets?
may vary
What kind of an innovation occurs when a beauty salon adds a tanning booth to its
service offerings?
may vary
Even thought she was not moving, Katherine dropped her membership at a local
church. She received a call from one of the church’s representatives wanting to know
why she had quit. She was asked to describe the moment in which she decided she no
longer wanted to be a member of the church. What type of research is being conducted
in this example?
may vary
Describe the four common themes identified as sources of customer
satisfaction/dissatisfaction in memorable service encounters.
may vary
Which service dimension is most important if the service provider has made the service
fail safe as its primary service recovery strategy?
may vary
A resort that has identified young upper-middle class parents as a market segment
charges $1,750 for a four-day, three-night package for a mother, father and two
children. The package includes golf fees and tennis court fees for the parents and a
five-hour a day adult-supervised camp for the children. The ordinary four-day,
three-night package for four costs $1,200. A single day at the camp for any child
between the ages of 3 and 11 is $60. What kind of market segmentation pricing strategy
is the resort using?
may vary
Discuss the reasons why customer knowledge of service prices may differ from
customer knowledge of goods prices.
may vary
What is provider gap 3 of the gaps model of service quality?
may vary
For a tax audit, Shanice brought all of her tax records for the last three years to her
CPA’s office. There the CPA, with Shanice’s help, tried to reconstruct what had
happened during that time period. What kind of consumer presence is required here?
may vary