64) Gloria goes to the same bagel shop every morning because the workers there remember her
name and know her order. They always make her feel welcome. The employees of this bagel
shop excel at which of the following determinants of service quality?
A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles
65) The zone of ________ is a range where a service dimension is deemed satisfactory, anchored
by the minimum level consumers are willing to accept and the level they believe can and should
be delivered.
A) immunity
B) tolerance
C) reliability
D) assurance
E) flexibility
66) According to the dynamic process model, two different types of expectations have opposite
effects on perceptions of service quality. One of these is that ________.
A) increasing customer expectations of what the firm will deliver improve the perceptions of
overall service quality
B) increasing customer expectations of what the firm will deliver decrease the perceptions of
overall service quality
C) decreasing customer expectations of what the firm should deliver decrease the perceptions of
overall service quality
D) decreasing customer expectations of what the firm will deliver improve the perceptions of
overall service quality
E) increasing customer expectations of what the firm should deliver improve the perceptions of
overall service quality
67) When customers calculate the perceived economic benefits of a continuously provided
service in relationship to the economic costs, they are gauging the ________.
A) private equity
B) brand equity
C) payment equity
D) customer-service equity
E) product-service equity
68) A ________ refers to any place at which a company seeks to manage a relationship with a
customer, whether through people, technology, or some combination of the two.
A) customer-service interface
B) product-customer interface
C) tangible user interface
D) attentive user interface
E) crossing-based interface
69) Regular maintenance and repair costs are known as ________.
A) service contract costs
B) out-of-pocket costs
C) fixed costs
D) facilitating services costs
E) value-augmentation costs
70) The product’s purchase cost plus the discounted cost of maintenance and repair less the
discounted salvage value gives the ________.
A) service warranty cost
B) out-of-pocket cost
C) life-cycle cost
D) facilitating services cost
E) value-augmentation cost
71) Expensive equipment manufacturers not only install the equipment but also train the staff
and undertake the maintenance and repair activities of the equipment. By doing so, they are
providing ________.
A) payment equity
B) value-augmenting services
C) differential pricing
D) facilitating services
E) a primary service package
72) When Johnson Controls reached beyond its climate control equipment and components
business to manage integrated facilities by offering products and services that optimize energy
use, it was said to be providing ________.
A) facilitating services
B) a primary service package
C) value-augmenting services
D) service contracts
E) service warranties
73) When sellers agree to provide free maintenance and repair services for a specified period of
time at a specified contract price, they are offering ________.
A) a complementary service
B) payment equity
C) a service blueprint
D) differential pricing
E) an extended warranty
74) The private non-profit sector is a provider of services.
75) A service is essentially intangible.
76) A service results in ownership on the part of the client.
77) The production of a service is never tied to a physical product.
78) Soap is an example of a pure tangible good.
79) Salt is an example of a hybrid.
80) A hybrid consists of unequal parts of goods and services, with services being in the majority.
81) A pure service requires a capital-intensive good, but the primary item is a service.
82) All services require the client to be present.
83) The search qualities of a service are the characteristics the buyer can evaluate before
purchase.
84) Credence qualities of a service are difficult to evaluate before purchase, but easy to evaluate
after consumption.
85) The experience qualities of a good or service can be evaluated after purchase.
86) Furniture is high in credence qualities.
87) While goods meet personal needs, services meet business needs.
88) Services have five distinctive characteristics, one of these being “pure service.”
89) Intangibility with regards to a service means that the service cannot be duplicated across
providers.
90) Service companies try to demonstrate their service qualities through physical evidence and
presentation.
91) Inseparability in the context of a service means that there is a provider-client interaction
involved as the provider is part of the service.
92) A service provider can work with larger groups to get around the limitations of
inseparability.
93) The quality of services is independent of who provides them.
94) Customers want unbundled services, with separate prices for each service element and the
right to select the elements they want.
95) External marketing describes the training and motivation required by employees in order to
properly serve the customers.
96) Interactive marketing describes the employees’ skill in serving the client.
97) Clients judge service not only by its technical quality but also by its functional quality.
98) Importance-performance analysis rates the various elements of the service bundle and
identifies required actions.
99) Customers who view a service as fairly homogeneous care less about the provider than
about the price.
100) What the customer expects from a service is called the primary service package.
101) Secondary service features are the features that the customer himself adds to the service.
102) Pricing has no negative effect on customer loyalty.
103) If the expected service falls below the perceived service, customers are disappointed.
104) Responsiveness is a company’s willingness to help customers and provide prompt service.
105) Reliability refers to the company’s willingness to help customers and provide them with
prompt service.
106) The appearance of physical facilities, equipment, personnel, and communication materials
are the tangibles that convey service quality to consumers.
107) The zone of tolerance for a service is the perceived economic benefits in relationship to the
economic costs.
108) The payment equity for a service is a range from the minimum level of service consumers
are willing to accept to the level they believe can and should be delivered.
109) A customer-service interface is defined as any place at which a company seeks to manage a
relationship with a customer.
110) If the length of the downtime increases, the cost incurred decreases.
111) A product’s purchase cost plus the discounted cost of maintenance and repair less the
discounted salvage value is known as the product’s activity cost.
112) Out-of-pocket costs are what the customer spends on regular maintenance and repair costs.
113) Value-augmenting services include installation, staff training, maintenance and repair
services, and financing.
114) List and briefly explain with examples the five categories of service offerings.
115) List and briefly explain the four distinctive characteristics of services.
116) List three steps that service firms can take to increase quality control over services and
reduce variability.
117) Several strategies exist for managing the supply and demand of services. List the strategies
for managing each and give an example of each strategy.
118) Define customer failures and list four methods to tackle them.
119) Marketing excellence with services requires excellence in three broad areas. List and
explain the three areas.
120) List the eight different variables that influence service outcome and customer loyalty.
121) The service-quality model highlights the main requirements for delivering high service
quality. Which are the five gaps that cause unsuccessful delivery?
122) Based on the service-quality model, researchers have identified five determinants of service
quality. List and briefly explain each.
123) Traditionally, customers have had three specific worries about product service. What are
they?
124) There are five categories of service offerings depending upon whether or not the service
component is minor or major. In which of the five categories would you place a haircut?
125) Give an example of a pure service provided by a company.
126) Bryson’s is a mid-sized hotel chain that is entering a competitive market. The chain needs to
differentiate its service from that of competitors, positioning itself as a hotel with excellent
service at an affordable price. However, the intangible nature of services makes this difficult to
demonstrate. How can Bryson’s convey its message effectively to prospective guests using
marketing tool of place?
127) In developing a service blueprint, The Flower Shop has outlined each step in the delivery
process of the service it provides. Which characteristic of services is The Flower Shop
attempting to minimize?
128) Fingerpainted organizes art camps and craft activities for children. The company has
noticed that demand is highest during summer vacations and drops during the year. What can
Fingerpainted do to attract customers at other times of year?
129) Debbie’s is a specialty bakery that sees a huge volume of orders during the holiday season.
The owner knows that orders triple during the three-month period and the current staff cannot
handle the volume. What supply strategy can Debbie’s use to handle the demand?
130) Bryson’s is a mid-sized hotel chain that is entering a competitive market. The chain needs to
differentiate its service from that of competitors, positioning itself as a hotel chain with excellent
service at an affordable price. How can it achieve this using internal marketing?
131) When Hayley had some problems with the applications on her cell phone, she gave her cell
phone to the service center for a software update. The service center returned the phone to
Hayley the next day, with the software update complete. Two days later, the service center called
Hayley to enquire if the phone was functioning well. Which area of services marketing does this
incident illustrate? Why is this important?
132) Some WesternSlope Cleaning customers have long-term contracts for full-service cleaning,
while others call the company as and when they require a particular service. The long-term
customers have their queries handled by the company’s customer service representative. The rest
of its customers are directed towards voice messages when they want their inquiries to be
processed. What strategy is the company adopting to achieve marketing excellence?
133) Retail chain REB wants to find out how its customers perceive its services and what it can
do to improve these. What methods can the company use to discover this?
134) Clearwater Spa operates on the premise that service quality is the main reason that
customers come to the spa, and the attendants are trained to provide excellent service. Despite
this, the spa rarely has repeat customers. Clearwater began collecting feedback from customers
to find out the reason for this. The management realized that although the customers were happy
about the services they did not like the ambience. What kind of a gap is causing the unsuccessful
service delivery in this situation?
135) The manager of a computer service center knows that quick service is the top priority for
customers. Accordingly, the employees are encouraged to solve customer difficulties fast, but
there is no set time period for service delivery. Which gap could cause unsuccessful service
delivery in this situation?
136) In the customer support center where Carl works, employees are taught to make
conversation to put customers at their ease. As customers don’t like being kept waiting, they must
also try to minimize the time that customers spend waiting for service. Thus, when there are a
number of customers lined up, Carl usually has to decide whether to answer a customer’s
questions in detail or move on quickly to the next customer. The firm’s standards are not clear on
how they want him to perform. When asked, his boss answers, “You make the decision.” This is
an example of which service-quality gap?
137) The advertisement for a pool reads “a vinyl pool from Parker’s for just $5000.” When David
contacted the firm for the pool, the customer service representative tells David that the total cost
will be $8000. When David enquires about the extra $3000, the customer service representative
says that is for installation. Which service-quality gap does this situation demonstrate?
138) The last time Betty visited Zing’s, the dinner served was excellent. Tonight is her
anniversary and she was looking forward to an enjoyable evening. After the meal, she starts
feeling that the service was not up to par and the evening was not as successful as she had hoped.
According to the service-quality model, which gap is obvious here?
139) A cosmetics store sees to it that customers who walk in are assisted by store personnel.
These personnel are trained to ask customers questions, find out what they want, and make
suggestions accordingly. Which of the five determinants of service quality is reflected here?
140) Josh travels often on business trips. He usually uses the services of the Sunshine Cab
Company to take him to the airport and pick him up from the airport. Though the fares are
usually higher than those of other private taxi companies, he prefers to use Sunshine cabs
because they’re always on time and have well-maintained cabs. Which determinant of service
quality does this demonstrate?
141) Package delivery company UPS uses distinctive brown trucks that have become almost an
icon. Explain why such physical facilities are important for UPS while it provides package
delivery services.
142) An oil drilling company ordered a number of pumpjacks for its operations. The pumpjack is
an essential part of its operations and the company needs the equipment to be operational at all
times. How can the pumpjack manufacturer demonstrate its service dependability?
143) An oil drilling company ordered a pumpjack for its operations. The pumpjack
manufacturing company not only set up the machine but also provided training to the people who
needed to use it. It also let the drilling company know that it would be undertaking the
maintenance and repair services for the pumpjack. What kind of a service is the manufacturing
company providing?