Marketing for Hospitality and Tourism, 8e, Global Edition (Kotler)
Chapter 2 Service Marketing Concepts Applied to Marketing for Hospitality and
Tourism
1) The fact that services cannot be seen, tasted, felt, or smelled relates to which service
characteristic?
A) Inseparability
B) Variability
C) Perishability
D) Intangibility
2) The fact that a business traveler will have a very positive check-in experience during one stay
at a hotel and then a very negative check-in experience the next time is an issue related to which
service characteristic?
A) Inseparability
B) Variability
C) Perishability
D) Intangibility
3) If you manage a 200-room hotel, and only sell 150 rooms tonight, you cannot stockpile the
extra 50 rooms to sell tomorrow. This is a problem with the ________ of services.
A) Inseparability
B) Variability
C) Perishability
D) Intangibility
4) We as customers cannot take service on a “test drive,” meaning we cannot evaluate them
before we use them. This is a problem with the ________ of the service.
A) Inseparability
B) Variability
C) Perishability
D) Intangibility
5) Because services are characterized by the issue of inseparability, service providers will often
have to:
A) Reduce inventory
B) Train the customers
C) Lower their prices
D) Improve labor standards
6) Which of the following is NOT a link in the service-product chain?
A) Healthy service profits and growth
B) Satisfied and productive service employees
C) Greater service value
D) Increasingly intangible services
7) Perhaps the best measure of service quality is:
A) Customer retention
B) Low employee turnover
C) Profitability
D) Total sales
8) Which of the following statements is FALSE?
A) One goal of CRM is to make switching costs high.
B) CRM combines marketing, business strategy and information technology to better understand
customers.
C) CRM calls for developing unique and lasting relationships with customers.
D) The use of CRM in the hospitality industry appears to be strong.
9) A casino employee’s uniform or a restaurant’s fancy front lobby are a means of:
A) Overspending on the part of the service provider
B) Creating overly high expectations on the part of the customer
C) Paying attention to the perishability of the service
D) Tangibilizing the service
10) Studies have shown the best way to deal with service failure is to:
A) Give the unhappy customer timely information regarding the failure
B) Ignore the failure in the hopes the customer will forget about it
C) Refund the customer’s money whenever a failure occurs
D) Replace the unhappy customer with a happier one
11) Which of the following is NOT part of the service profit chain?
A) Internal service quality
B) External service quality
C) Satisfied and productive service employees
D) Satisfied and loyal customers
12) Hospitality companies face the task of increasing three major marketing areas: service
quality, service productivity, and:
A) Service differentiation
B) Service focus
C) Service profitability
D) Service effort
13) In a well-run hospitality organization, there are two customers, the paying customers and the:
A) Non-paying
B) Employees
C) Guests of the customer
D) Customer’s company
14) Overbooking is another method that hotels, restaurants, trains, and airlines use to match:
A) Demand with marketing
B) Growing business needs
C) Marketing with budget
D) Demand with capacity
15) Developing a good ________ policy minimizes the chance of walking a guest.
A) Marketing
B) Promotions
C) Check-in
D) Overbooking
16) Price is ________ related to demand for most products.
A) Directly
B) Inversely
C) Proportionately
D) Disproportionately
17) ________ form(s) when capacity exceeds demand and guests are willing to wait.
A) Loyalty
B) Demand
C) Popularity
D) Queues
18) Marketing by a service firm to train effectively and motivate its customer-contact employees
and all the supporting service people to work as a team to provide customer satisfaction is called
________ marketing.
A) Intelligent
B) Internal
C) Perennial
D) External
19) A system of values and beliefs in an organization that reinforces the idea that providing the
customer with quality service is the principal concern of the business is called:
A) Mission statement or vision statement
B) Credo or Motto
C) Mission and credo
D) Service culture
20) All of the following are generally true about customers waiting in lines EXCEPT:
A) Undefined demands are longer than explained ones
B) Uncertain waits are longer than known ones
C) Unfair waits are longer than equitable ones
D) Unoccupied time feels longer than occupied time
21) Dynamic pricing and overbooking strategies are used in:
A) Computer demand engineering
B) Revenue management systems
C) Capacity maximization practices
D) Demand fluctuation seasons
22) Which of the following is NOT an example of a consideration when designing a hotel’s
overbooking policy?
A) Weather conditions
B) Competitor availability
C) Price per room
D) Past history
23) All of the following are examples of techniques for assisting with managing short-term
demand EXCEPT:
A) Cross-train existing employees
B) Hire more full-time employees
C) Alter the service-delivery system
D) Increase self-service technologies
24) Revenue management systems give priority to repeat guests over new ones.
25) The reservation system is not an accurate tool for monitoring demand.
26) In general, government-run tourism promotion organizations have not assumed responsibility
for the quality of the services they promote.
27) Unit managers are responsible for matching capacity with long-term demand by planning
utilizations of capital investments.
28) Empowering employees in part means giving them the authority to tend to customer needs.
29) The perishability of a service is especially a problem when demand fluctuates.
30) So long as a company sets high standards for service quality, it is not necessary to evaluate
its actual performance.
31) Bill Marriott would say that the first set of people you need to satisfy are your customers.
32) To reduce uncertainty caused by service intangibility, buyers look for whatever tangible
evidence they can find that will provide information about the service.
33) Within the realm of Customer Relationship Management (CRM) switching costs are only
monetary in nature.
34) It is better to tell the customer exactly the anticipated wait time.
35) The three services marketing are: internal, external, and interactive.
36) Service marketers must be concerned with four characteristics of services. What are they?
Describe each.
37) Describe three steps hospitality firms can take to reduce variability and create consistency.
38) Successful service companies focus their attention on both their employees and customers.
They understand the service profit chain, which links service from profits with employee and
customer satisfaction. List and describe the five links that make up the service profit chain.
39) Resolving customer complaints can sometimes be a difficult scenario in the hospitality
industry. Service quality will always vary, depending on the interactions between employees and
customers. Problems inevitably will occur. As the manager of a high-volume establishment what
measures will you take to resolve customer complaints?
40) How can managing the customer relationship be used to enhance revenues and retain
customers?