Research indicates that if an individual has to wait longer than eight seconds for an
Internet site to download, then he or she will likely abandon plans to visit the site and
move on to another site. In terms of the service quality dimensions that are used to
evaluate web sites, a site that took longer than eight seconds to download would be
lacking in _________.
A. Assurance
B. Reliability
C. Fulfillment
D. Empathy
E. Efficiency
An ad in a dental journal noted that if dentists would bulk buy a flowable composite
used to build bridges and caps, the dentist purchasing the composite would receive
Delta Air Lines Sky Miles to add to his or her existing Sky Miles. Both companies, the
composite marketer and Delta, benefit from this offer. By allowing the composite
marketer to offer free Sky Miles to customers, Delta Air Lines is further implementing
its _____ growth strategy.
A. Share building
B. Market development
C. Service development
D. Diversification
E. Market integration
In which of the following situations will compatibility management be of little or no
importance?
A. The service environment attracts a homogeneous customer mix
B. Customers are in close proximity to each other
C. The core service is compatibility
D. Customers must wait for the service
E. Customers engage in numerous and varied activities
Because most people like to get tattoos and body piercings on the weekends, a tattoo
parlor in Portland, Maine, offers a reduced rate from Monday to Thursday for all of its
services. Prices on Friday and Saturday are 45 percent higher than they are during the
rest of the week. The tattoo parlor is using a(n) _____ pricing strategy.
A. Odd
B. Synchro-
C. Discounting
D. Prestige
E. Complementary
Which of the following is NOT a benefit provided by a service guarantee?
A. The ability to generate meaningful and relevant feedback from customers
B. The ability to set clear standards for the organization
C. A way to improve employee morale
D. A way to increase a customer’s sense of risk
E. A way to create useful feedback that can be integrated into continuous improvement
efforts
One factor that influences adequate service is _____, the level of service that customers
believe they are likely to get.
A. Predicted service
B. Forecasted intensity
C. Evoked service
D. Ego-oriented service
E. The service paradigm
Before going out to dinner with her husband at Formia Ristorante, a contemporary
Italian restaurant in New Jersey, Jennifer read a review of Formia in the local
newspaper. The review indicated Formia is an unpretentious and unassuming, but
exceptionally fine, contemporary Italian restaurant. Five servers who are under the
owner’s watchful eye attentively care for the 14 roomy tables in the single large dining
room. What the servers may lack in experience is more than compensated for by
tempered enthusiasm and sincere desire to ensure guests are comfortable. The review of
Formia that Jennifer read is a(n):
A. Explicit service promise
B. Implicit service promise
C. Word-of-mouth communication
D. Past experience influence
E. Marketing testimonial
Bob and Tiffany have been busy this week seeing all kinds of service providers. In
which of the following service situations would Bob and Tiffany have had the lowest
level of participation?
A. A visit to McDonald’s for breakfast
B. A session with their marriage counselor
C. The hauling of a grand piano from their home in Nashville to their parents’ home in
Brentwood in a truck they rented for that purpose
D. Tiffany’s annual physical examination
E. Bob’s weekly visit with his personal trainer
SwissAir made some unwise investments to pay for a planned expansion. As a result,
the company had to make some cost-cutting moves that alienated its customers.
Eventually the company declared bankruptcy, regrouped, and found itself able to
resume business. Its board of directors announced the company would resume flying
within the next two years if it could prove the airline could regain at least 75 percent of
its lost customers. It decided to allot $50,000 to determine the probability that its former
customers would fly on the airline again and what methods requiring little or no money
could be used to increase that probability. Which of the following two methods are
low-cost research methods SwissAir could use to reach its research objectives?
A. Critical incident studies and lost customer research
B. Future expectations research and lost customer research
C. Complaint solicitation and service expectation meetings and reviews
D. Database marketing research and customer panels
E. Customer panels and complaint solicitation
Which of the following themes is NOT a source of customer satisfaction/dissatisfaction
in service encounters?
A. Recovery
B. Adaptability
C. Spontaneity
D. Credibility
E. Coping
If a family has one child enrolled in Diane’s Day Care Center, it costs $75 per week. If
a family has two children enrolled at Diane’s, it costs $135. Diane’s is using a(n) _____
differential.
A. Place
B. Time
C. Quality
D. Incentive
E. Quantity
Price framing would be used when the customer defines value as:
A. All that I get for all that I give
B. Superior quality
C. Quality I get for the price I pay
D. Everything I want in a service
E. Low price
________ refers to the fact that a complaining customer expects to be treated fairly,
with care and honesty.
A. Functional equity
B. Procedural fairness
C. Interactional fairness
D. Service equity
E. Outcome fairness
A service firm in a particular industry or in a particular location can use which of the
following human resource strategies to attract the best people?
A. Become a preferred employer
B. Providing needed outsourcing
C. Using benchmarking
D. Limiting the number of service encounters
E. Designing efficient servicescapes
Lillie worked as a caterer when she was in college. She was highly critical of the caterer
and its staff that her parents selected for their 50th anniversary party. Lillie’s attitude
about how a caterer should act reflects her:
A. Augmented service expectation
B. Personal service philosophy
C. Derived service expectation
D. Cultural service expectation
E. Situational factors
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 but as a inconsistently performed sequential process that includes making
reservations, checking-in, waiting, boarding, in-flight time and baggage pick-up.
Canadian Airline diagnosed that a problem existed with its:
A. Service encounter sequence
B. Internal performance requirement
C. Diagnostic capabilities
D. Overall service quality perception
E. Service dimension gap
_____ are used to report the findings from a service marketing research study that
collected data on the two levels of customer expectations – desired service and adequate
service – along with customer perceptions of company performance.
A. Zone of tolerance charts
B. Salience of dimensions and attributes graphs
C. Gap scores tracking graphs
D. Importance/performance matrices
E. Customer satisfaction indices
If you visit a county or state fair, you will pay a basic admission fee plus other fees if
you want to enjoy any of the amusement rides. County and state fairs that price this way
are using:
A. Synchro-pricing
B. Two-part pricing
C. Mixed bundling
D. Contribution margin pricing
E. Contingency pricing
Which of the following statements does NOT contain a reason why consumers lack
accurate reference prices for services?
A. Individual customer needs vary within the same service provider
B. Collection of price information is overwhelming in services
C. Many service providers are unable or unwilling to estimate price in advance
D. Low degree of variability exists across providers of the same service
E. Prices are not visible
Step-by-Step day care center offers parents several other services not normally offered
by day by day care centers. A caterer is present every morning when the children are
dropped off to take orders for supper. When the parents pick up their children in the
evening, their supper is ready for them to take home, too. A hair stylist comes to the
center once a week and cuts the hair of any child whose parents request this service. A
photographer comes to the center every three months to take updated pictures of
children whose parents don’t have the time to take their children to the photography
studio. In this way, Step-by-Step is using _____ to support its customer retention
strategy.
A. Financial bonds
B. Social bonds
C. Customization bonds
D. Structural bonds
E. Security bonds
The first step in the new service-development process is:
A. Idea generation
B. New-services strategy development
C. Business analysis
D. Business strategy development or review
E. Concept development and evaluation
The increased profits a service firm realizes from customer retention result from all of
the following EXCEPT:
A. Lower costs
B. Increased volume of purchases
C. The ability to charge a price premium
D. Customer defection
E. Increased word-of-mouth communication
Kensworth-McCoy is a government auditing firm that specializes in auditing public
transportation systems. The firm was operating at maximum capacity when it was asked
to submit a bid on a very lucrative account in Chicago. If the firm were to win this
account and keep all of its current accounts, it will more than likely:
A. Decrease employee turnover potential
B. Increase customer satisfaction through a work focus
C. Increase employee burnout
D. Increase service quality
E. Create a narrower window of opportunity for meeting deadlines
Which of the following is a strategy for ensuring that internal support systems are
customer oriented?
A. Measure internal service quality
B. Be the preferred employer
C. Include employees in the company vision
D. Empower employees
E. Eliminate all conflict
States or conditions essential to the physical or psychological well-being of a customer
that are pivotal factors that shape what customers desire in a service are known as
__________.
A. Personal needs
B. Personal service philosophies
C. Derived service expectations
D. Perceived service alternatives
E. Situational factors
Which of the following is an example of a remote service environment?
A. Scarlett O’Haira hair salon
B. First National Bank of Polk County
C. The Home Depot
D. Pizza Hut restaurant
E. Carolina Power, an electricity provider
The last time Lia went shopping at Nordstrom’s department store she had a very
pleasant experience. When she entered Nordstrom’s, she asked a sales associate named
Sarah for assistance finding a pair of jeans, a pair of shorts, a skirt, and matching tops.
Sarah enthusiastically agreed to help and treated Lia like royalty throughout her
two-hour shopping trip. Sarah stayed with Lia the entire time she was in Nordstrom’s
and showed her a number of different styles of jeans, shorts, skirts, and tops. Sarah
brought Lia additional items while she was in the fitting room and offered her advice on
accessorizing her outfits. After the sale, Sarah thanked Lia for her purchases. Lia’s
experience at Nordstrom’s is an example of which type of service encounter incident?
A. Recovery
B. Adaptability
C. Spontaneity
D. Believability
E. Coping
Last Thursday Dylan and Tori had dinner at Pig Pete’s, a new restaurant they had a
heard about from friends. When they received their order of buffalo wings, Dylan
noticed the wings were cold and dried out instead of being hot and moist. Dylan
complained to their waitress, who apologized, brought out a plate of freshly cooked
buffalo wings, and told Dylan and Tori that they would not be charged for the buffalo
wings. The couple’s experience at Pig Pete’s is an example of which type of service
encounter incident?
A. Recovery
B. Adaptability
C. Spontaneity
D. Credibility
E. Coping
All of the following are causes for customer’s brand switching EXCEPT:
A. Ethical problems
B. Pricing
C. Inconvenience
D. A service paradox
E. Core service failure
The highest customer expectations are referred to as _____ expectations.
A. Normative
B. Acceptable
C. Ideal
D. Ego-satisfying
E. Id-oriented
Provider gap 3 would be created when:
A. A fast-food restaurant uses a frequency marketing program
B. An advertisement promises a full-body massage for $5
C. Employees refund customer’s money if they complain about the service they
received
D. A CPA’s tax client neglected to provide her with any receipts or information about
deductible expenses
E. Any of the above occurred
Aramark is a food service company that supplies meals to more than 200,000 hospital
patients daily. To improve its service, it created a database that tracks patient
preferences individually by hospitals, regionally and nationally. The accumulated
database is used to provide better menus. Aramark’s kitchen staffs deliver the food and
are referred to as hosts. All hosts have a minimum of 40 hours of training to teach them
how to be courteous, efficient and quick. These trained hosts deliver customized meals
from carts preloaded according to room number. According to patient surveys, Aramark
has boosted patient satisfaction by almost 10 percent by providing customized meals.
Aramark is using _____ in its customer retention strategy.
A. Financial bonds
B. Social bonds
C. Customization bonds
D. Structural bonds
E. Heterogeneity
A week after Kim cancelled her First USA MasterCard, she received a survey in the
mail asking questions about First USA’s service quality, its performance versus other
credit card companies, her level of satisfaction with different dimensions of First USA’s
service, and her reasons for canceling her account. Which of the following types of
research did First USA conduct?
A. Complaint solicitation
B. Critical incidents studies
C. Relationship survey
D. Trailer calls
E. Lost customer research
