By involving employees in cross-functional teams to align their jobs with end customer
requirements, a service firm is:
A. Managing service promises
B. Resetting customer expectations
C. Communicating with customers
D. Managing internal marketing communications
E. Exceeding customer expectations
Which of the following is NOT a risk associated with the use of yield management?
A. Incompatible incentive and reward systems
B. Overbooking
C. Customer alienation
D. Loss of competitive focus
E. All of the above are risks associated with the use of yield management.
Summer enrollments at New Bedford College are low. The campus administrators rent
out dorms to people participating in hostel programs. These participants have their
meals provided in the school cafeteria. New Bedford is using which of the following
strategies for shifting demand to match capacity?
The ________ metric is obtained by summing up the customer lifetime values of the
firm’s customers.
A. The customer equilibrium
B. Customer equity
C. Customer empowerment
D. Fiscal value
E. Service blueprint value
A wildcat strike by garbage collectors in a large metropolitan city during prime tourist
season will most likely cause tourists to cut short their visit and have a poor image of
the city. The wildcat garbage strike is an example of a(n):
A. Personal service influence
B. Predictable service influence
C. Uncontrollable situational factor
D. Spontaneous negative
E. Temporary personal need hindrance
Regency Dry Cleaners operates in a medium-sized community. Its customers all live
within a 20-mile radius of the cleaners. Regency provides its regular customers with
several alternative pickup and delivery schedules rather than a single weekly pickup
and delivery. Regency’s driver will pickup clothes in the morning and deliver them back
clean in the afternoon if that is what a customer needs. Regency has found the increase
in its total number of customers because of this service more than pays its additional
operation expenses. Regency has built its customer retention strategy around:
A. Customization bonds
B. Social bonds
C. Niche marketing
D. Focused marketing
E. Structural bonds
Key Energy was a company that provided quality oilfield construction, drilling and
other services. The company’s top management felt stakeholders did not have a clear
image of the company and were considering changing the name to clarify the
organization’s position in the market. The company conducted an hour long interview
with four of its largest customers. Only 25 questions were asked and much probing was
done to find out exactly what the participants meant. This is an example of a:
A. Research requirement survey
B. Ethnographic survey
C. Critical incident study
D. Trailer call
E. Service expectation meeting and review
When Jessie wanted to talk to a therapist to learn how she could improve her
relationship with her mother, she went to Counseling Professionals, Inc., a counseling
service that charges $1 per minute of counseling by phone. By providing counseling
and advice by phone, the therapist Jessie spoke with is performing a(n):
A. Support process
B. Backstage contact employee action
C. Onstage contact employee action
D. Customer action
E. Audience action
US Franchise System, Inc. (USFS) franchises its brand names such as Microtel Inns &
Suites, Hawthorn Suites and Best Inns to independent hotel owners and operators.
Every three months, employees from a different franchise overseen by USFS conduct
customer satisfaction telephone surveys. Among the employees who regularly
participate in the survey process are senior managers, who are trained and certified to
conduct survey interviews. Which type of interaction activity is USFS using to improve
upward communication?
A. Employee suggestions
B. Employee internal satisfaction surveys
C. Research on intermediate customers
D. Executive listening approaches
E. Executive visits to customers
Leonard has been commuting to New York City on the Long Island Railroad for ten
years. Every morning he takes the 7:00 a.m. train that is scheduled to arrive in New
York at 8:15 a.m. from Huntington, a suburb of New York. Although Leonard would
like the train to arrive in New York on time, he knows from his experience as a
commuter that it is more likely the train will be 5 minutes late. Leonard’s expectation
that his train will be 5 minutes late reflects his _________ level of service for the Long
Island Railroad.
A. Desired
B. Adequate
C. Transactional
D. Functional
E. Available
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 Maria woke up this morning, she felt terrible. She had a headache, sore throat
and upset stomach. She called her doctor’s office, explained her condition to the
receptionist and asked if she could make an appointment to see the doctor as soon as
possible that day since she was going on vacation tomorrow. Maria’s desired
expectation to see her doctor the same day she became sick resulted from a(n):
A. Personal need
B. Personal service philosophy
C. Derived service expectation
D. Perceived service alternative
E. Adequate service expectation
All of the following are potential benefits of empowering frontline service workers
EXCEPT:
A. Quicker responses to customer needs during service delivery
B. Employees feel better about their jobs
C. Employees may “give away the store”
D. Employees will interact with customers with more warmth and enthusiasm
E. Quicker responses to dissatisfied customers during service recovery
In India weddings are timed to occur when Venus is in the ascendant and Jupiter is
strong. This day is deemed lucky. In 2005, almost 15, 000 couples in New Delhi had
their wedding on December 25, the day astrologers announced would be the best day
for a wedding. The service provided by the astrologers is an excellent illustration of the
_____ of services.
A. Intangibility
B. Comparability
C. Divisibility
D. Perishability
E. Compatibility
All of the following are service inclination skills EXCEPT:
A. Clerical speed and accuracy
B. Social sensitivity
C. Helpfulness
D. Courtesy
E. Thoughtfulness
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
Benford Bank recently opened a school with kindergarten through fifth grade classes
run by the county school system and a child-care center at its headquarters office park.
By providing “work-and-family” benefits designed to help employees balance the
stresses of a demanding job and family life, Benford Bank is:
A. Promoting teamwork
B. Treating employees as customers
C. Measuring and rewarding strong service performers
D. Including employees in the company vision
E. Empowering employees
Enterprise Rent-A-Car closely ties customer service to employee success. With a
tracking system called the Enterprise Service Quality Index (ESQi), the company
routinely follows up with customers by phone to determine their level of satisfaction
with their most recent Enterprise service encounter. Only completely satisfied
customers count toward an employee ESQi score, which is used to measure employee’s
potential for promotion. Enterprise is using_________ to determine whether
performance meets standards.
A. Complaint solicitation
B. Lost customer research
C. Trailer calls
D. Customer panels
E. Critical incident studies
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
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
On a recent trip to Disneyland, Rose had her picture taken with Minnie Mouse. After
the picture was taken, Minnie Mouse signed Rose’s autograph book. Rose’s interaction
with Minnie Mouse was actually a(n) _______ with Disneyland.
A. Advertising event
B. Socialization
C. Service encounter
D. Service arrangement
E. Acculturation
Rhonda does not want to use the self-checkout lane at the supermarket because it “just
seems too complicated.” What factor primarily has determined her reluctance to try the
new self-service technology?
A. Customer readiness
B. Capability management
C. Emotional resources
D. The empowerment of technology
E. Personal autonomy
The clearly displayed ENTRANCE and EXIT signs at a Jiffy-Lube 10-minute oil and
lubrication service indicate that the Jiffy-Lube servicescape is playing the strategic role
of:
A. Package
B. Facilitator
C. Differentiator
D. Boundary spanner
E. Socializer
Elysian Events, a wedding planning company, noted how many couples had a wedding
catastrophe of some kind. As a result, it abandoned wedding planning and began
offering wedding insurance to protect couples from financial losses due to weather
emergencies, stolen wedding rings, damaged wedding dresses, etc. Elysian Events is
using a _____ growth strategy.
A. Share building
B. Market development
C. Service development
D. Diversification
E. Market integration
WedSafe is the name of a company that provides wedding insurance. For example, in
the event that a wedding is called off, the couple can insure themselves against loss of
their nonrefundable deposits. If WedSafe’s primary marketing effort is to make engaged
couples aware of its services, the company is in which stage of the customer
relationship evolution?
A. Acquaintances
B. Leads
C. Strangers
D. Allies
E. Friends
Based on the Framework for Understanding Physical Environment-User Relationships,
employees and customers’ internal responses to the dimensions of their physical
surroundings are:
A. Cognitive, emotional, and physiological
B. Individual, contextual, and personal
C. Cognitive only
D. Emotional only
E. Emotional and physiological only
Traditional yield management strategies are most appropriate when:
A. The service provider has a homogeneous target market
B. Its target market is not price sensitive
C. All members of the target market arrive at basically the same time
D. Those who arrive early or reserve early are more price sensitive than those who
reserve or arrive late
E. All of the target market is equally price sensitive
In the service marketing triangle, _____ marketing refers to the service promise being
delivered.
A. Internal
B. Interactive
C. Strategic
D. External
E. Integrated
The process for installing Leo’s new CD player 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 CD player.
A. Convenience
B. Fiscal
C. Physiological
D. Time
E. Search
The New York Palace, an upscale hotel in New York City, synchronizes demand and
hotel capacity by offering an attractively priced weekend package during the fall when
demand for its rooms slows down. In addition to having a luxury-filled weekend at the
New York Palace for $219 per night, guests enjoy very select privileges from Saks Fifth
Avenue. Its weekend package provides a personal shopping coordinator, complimentary
gift wrap and package delivery to the hotel, individual beauty consultation and a 10
percent Saks discount. The New York Palace’s weekend package closes provider ____
of the gaps model of service quality.
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
A pseudo-relationship occurs when
A. The service encounter is static
B. The customer interacts many times with the same company, but with different
service providers
C. The company interacts with different members of a household
D. Frequency of service is greater than service reach
E. The service provider has accepted the validity of the service paradox
At the partnership stage of the customer relationship, the firm is most concerned with:
A. Creating a competitive advantage
B. Customer satisfaction
C. The enhancement of its relationship with the customer
D. Creating service loyalty
E. Customer retention