123) 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
124) According to the dynamic process model, two different types of expectations have opposite
effects on perceptions of service quality. One of these is that ________ overall service quality.
A) increasing customer expectations of what the firm will deliver improve the perceptions of
B) increasing customer expectations of what the firm will deliver decrease the perceptions of
C) decreasing customer expectations of what the firm should deliver decrease the perceptions of
D) decreasing customer expectations of what the firm will deliver improve the perceptions of
E) increasing customer expectations of what the firm should deliver improve the perceptions of
125) When customers calculate the perceived economic benefits of a continuously provided
service in relationship to the economic costs, they are gauging the ________ equity.
A) private
B) brand
C) payment
D) customer-service
E) product-service
126) A(n) ________ interface 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
B) product-customer
C) tangible user
D) attentive user
E) crossing-based
127) Pricing has no negative effect on customer loyalty.
128) If expected service falls below perceived service, customers are disappointed.
129) Responsiveness is a company’s willingness to help customers and provide prompt service.
130) Reliability refers to the company’s willingness to help customers and provide them with
prompt service.
131) The appearance of physical facilities, equipment, personnel, and communication materials
are the tangibles that convey service quality to consumers.
132) The zone of tolerance for a service is the perceived economic benefit in relationship to the
economic cost.
133) Aida decided to switch doctors after she had to wait two and a half hours at her scheduled
appointment to see her doctor. She experienced the ethical problem factor that leads to customer
switching behavior.
134) 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.
135) A customer-service interface is defined as any place at which a company seeks to manage a
relationship with a customer.
136) List the eight different variables that influence service outcome and customer loyalty.
137) The service-quality model highlights the main requirements for delivering high service
quality. Which are the five gaps that cause unsuccessful delivery?
138) Based on the service-quality model, researchers have identified five determinants of service
quality. List and briefly explain each.
139) 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?
140) 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?
141) In the customer support center where Carl works, employees are taught to make
conversation to put customers at 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?
142) The advertisement for a pool reads “a vinyl pool from Parker’s for just $5,000.” When
David contacted the firm for the pool, the customer service representative tells David that the
total cost will be $8,000. When David enquires about the extra $3,000, the customer service
representative says that is for installation. Which service-quality gap does this situation
demonstrate?
143) The last time Betty visited Zing’s, the food 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?
144) A cosmetics store sees to it that customers who walk in are assisted by store personnel.
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?
145) 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?
146) 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.
147) Regular maintenance and repair costs are known as ________ costs.
A) service contract
B) out-of-pocket
C) fixed
D) facilitating services
E) value-augmentation
148) A product’s purchase cost plus the discounted cost of maintenance and repair less the
discounted salvage value gives the ________ cost.
A) service warranty
B) out-of-pocket
C) life-cycle
D) facilitating services
E) value-augmentation
149) 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
150) 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
151) 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
152) If the length of downtime increases, the cost incurred decreases.
153) 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.
154) Out-of-pocket costs are what the customer spends on regular maintenance and repair costs.
155) Value-augmenting services include installation, staff training, maintenance and repair
services, and financing.
156) Traditionally, customers have had three specific worries about product service. What are
they?
157) 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?
158) 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?