The most important determinant of perceptions of service quality among U.S.
customers is reliability.
Defensive marketing can be used to reduce customer defection.
In most companies, it is significantly easier to improve horizontal communications
than vertical communications.
Technology is creating a demand for ethnocentric services.
When the customer defines value as low price, the service provider should use prestige
pricing.
A company that wants to excel at responsiveness should view service delivery and the
handling of requests from the company’s point of view.
A plastic surgeon who wants his patients to watch a video on rhinoplasty before they
have a “nose job” is trying to educate his patients so they can have a higher level of
participation in the process.
When a day care center added an after-school program for first through third graders, it
was an example of a service line extension.
Improved upward communication can be used to narrow provider gap 1.
The central focus of the gaps model of service quality is to close the gap between
customer expectations and perceptions.
When considering customer satisfaction/dissatisfaction, the ability of the service
providers to correct service delivery system failures is very important.
Restaurants with salad bars view customers as productive resources.
Words alone are often more than adequate for describing services such as financial
portfolio management.
All service encounters are equally important in building good customer relationships.
Evidence shows that customer perceptions of quality do not affect consumer
intentions.
Service encounters are among the key drivers of service quality.
Value may be perceived differently because of consumers’ idiosyncratic tastes,
knowledge about the service, buying power and ability to pay.
A guarantee is a particular type of service recovery tool.
Companies that have been successful in delivering consistently high service quality do
not have formal standards to guide employees.
Complaint solicitation research requires a substantial investment in both time and
money.
One of the major difficulties associated with provider gap 4 is that communications to
consumers typically involve issues that cross organizational boundaries.
New service development is typically a linear process.
From the inception of service quality, managers had highly sophisticated tools to
measure the impact of improved service on profits.
When an on-duty lifeguard must interact with people in a pleasant and professional
manner and go repeatedly into the pool even though he has severe sunburn, the
lifeguard is performing empathetic labor.
The use of transactional marketing will tend to narrow provider gap 1.
An example of outcome inequity occurred when Logan was rudely told he could not
golf at a particular course because his clubs were not sanctioned by the U.S. Golf
Association.
In a dentist’s office, the wait will seem longer for a patient who is anxious than for a
patient who is calm and relaxed.
Explicit service promises are defined as any non-personal, paid-for communication
between the customer and the seller.
Guarantees that are written by the legal department are generally more meaningful to
customers than any other type.
Cost-plus pricing is more likely to be used by lawyers than by the construction
industry.
When companies collect data on desired and adequate service levels along with
performance data, they can convey the information concisely on zones of tolerance
charts.
In the post introduction evaluation stage of the new-service development process
information gathered during commercialization of the service can be reviewed and
changes made based on actual market response to the offering.
Rewarding customers has no effect on their likelihood of performing their roles
effectively.
Price signaling is typical in markets with a high concentration of sellers.
When they go away on vacation, some dog owners choose to leave their dogs in posh
pet resorts that offer a variety of activities for the dogs, such as swimming pool frolics,
nature walks and hayrides. The dog owners pay around $17 per night for basic boarding
at the pet resorts and up to an additional $20 for the other activities, which would be
collectively classified as:
A. Goods
B. Values
C. Services
D. Satisficers
E. Attributes
Which of the following types of research is NOT done on a continuous basis?
A. Complaint solicitation
B. Relationship surveys
C. Social media
D. Customer panels
E. Lost customer research
According to the service marketing triangle, an advertisement for Randonner Tours that
describes the agency’s customized bicycle tours through Europe is a form of _____
marketing.
A. Internal
B. Interactive
C. Integrated
D. External
E. Relational
When Marcus Ross arrived at the airport Enterprise Rent-A-Car to pick up a reserved
SUV, he was told the agency had no such car on the lot and that it had no record of him
making a reservation. The rental agency’s customer service representative Gene Lowery
apologized profusely and called other agencies until he located an SUV at an agency
several miles away. Lowery personally drove him to the other agency, knocked 20
percent off the rental fee, handed Ross $2 to pay a toll that he would now have to pay to
get to his destination and gave him a free tank of gas. Ross’s experience at Enterprise is
an example of which type of service encounter incident?
A. Recovery
B. Adaptability
C. Spontaneity
D. Functionality
E. Coping
Variations in demand relative to capacity can result in all of the following scenarios
EXCEPT:
A. Demand that exceeds maximum capacity
B. Demand that exceeds optimum capacity
C. Supply and demand balanced at the level of optimum capacity
D. Demand that is below optimum capacity
E. All of the above scenarios can result from variations in demand relative to capacity.
Historically, the Japanese have had poor dental care. As part of their beauty regimen,
the Japanese do have a habit of lightening and whitening their skin. Teethart has
developed “tooth manicure” salons, which allow Japanese to match their teeth
coloration to their skin. Each treatment takes place in a private booth, which contains an
ergonomically-designed chair, muted lights and New Age-style music. The walls are
painted calming shade of blues and greens. By using physical evidence to reduce
anxiety, Teethart is narrowing provider _____ of the gaps model of service quality.
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
In talking to a travel agent, T. J. Matthews learned that he would have to pay the same
amount of money for a three-day/two night package right outside the gates of Walt
Disney World for his family of four as he would for a five-day/four-night stay at a hotel
that was about fifty miles away from Walt Disney World. Matthews decided the farther
hotel was a much better value. Matthews defined value as:
A. All that I get for all that I give
B. Whatever I want in a service
C. Low price
D. Reliable service
E. The quality I get for the price I pay
As the number of perceived service alternatives increases, the level of adequate service
_____ and the zone of tolerance _____.
A. Decreases; narrows
B. Decreases; widens
C. Increases, widens
D. Increases; narrows
E. Stays the same; stays the same
As the flight attendant listened to the business traveler complain about having to sit in
the plane and wait for two hours before the plane took off, the attendant sorted through
some magazines, got a blanket for another passenger and clearly ignored the legitimate
complaints of the businessperson. This is clearly a problem with:
A. Functional fairness
B. Service equity
C. Interactional fairness
D. Distributive fairness
E. Relationship management
Which of the following measurement research methods can document customers’
opinions about whether performance met the standards established?
A. Structured brainstorming
B. Relationship surveys
C. Customer panels
D. In-depth interviews
E. Critical incident studies
Imagine a bereaved family at a funeral home discovering dirty restrooms, a disco ball
in the chapel and loud heavy metal music on the sound system. You would be correct in
saying:
A. The physical environment quality led the family to think less of the overall service
quality
B. The technical outcome quality of the facility needed fine tuning
C. The inappropriateness of the service quality was due to poor technical qualities
D. Interaction qualities led to perceived inequities
E. The overall service quality is not influenced by tangibles
Many companies do not identify and act on the correct non-financial measures. One
mistake the companies make is _______ that involves not laying out the
cause-and-effect relationships between drivers and strategic success.
A. Not linking measures to strategy
B. Not validating the links
C. Not setting the right performance targets
D. Measuring incorrectly
E. Not creating a balanced scorecard
Key Energy Co. provides quality oilfield construction, drilling and other services. The
company’s top management feels that stakeholders do not have a clear image of the
company and are considering changing the name to clarify the organization’s position in
the market. Senior management is interviewing the company’s salespeople to learn how
they feel about selling Key Energy’s services. As part of examining the corporate image,
the company is using:
A. Upward communication
B. Market-oriented ethnography
C. Lead user research
D. SERVQUAL surveys
E. Relationship surveys
The primary constraint on service production for an air freight delivery service is:
A. Equipment
B. Labor
C. Money
D. Facilities
E. Time
The marketing that goes on between an insurance agent and a current customer that is
buying car insurance for a new teenage driver is an example of _____ marketing.
A. Formal
B. External
C. Interactive
D. Controlled
The carpenter came to install the new flooring in the Stephenson’s kitchen two weeks
ago. Once he had removed the old flooring, he announced he needed to go get a sander
to smooth out the subflooring. He has not been back. A person who is a passive type
when it comes to complaining would react to this by:
A. Firing the original carpenter and hiring another one
B. Taking no action whatsoever
C. Complaining to the Better Business Bureau about the terrible service
D. Threatening to sue the carpenter if he didn’t return immediately
E. Complaining daily to the carpenter’s answering machine
Which of the following statements describes a benefit of critical incident studies?
A. The method provides abstract data
B. The method provides data that is readily quantifiable
C. The research method is especially useful when the service is new
D. The research method is especially useful for services in the maturity stage of their
product life cycle
E. All of the above statements describe a benefit of critical incident studies
The core offerings of hospitals, hotels, and banks are primarily deeds and performances
and therefore, are_________________.
A. Services
B. Experiences
C. Attributes
D. Goods
E. Benefits
The characteristic of a service that refers to differences in employees’ performances is:
A. Intangibility
B. Heterogeneity
C. Divisibility
D. Perishability
E. Simultaneous production and consumption
The operational measures used within the balanced performance scorecard should be:
A. Customer-defined
B. Cost-driven
C. Competitively sensitive
D. Front-line employee-defined
E. Environmentally-derived
Last week, Francine bought a 6-month membership package at Planet Fitness. She
plans to exercise at Planet Fitness four days a week by participating in an aerobics
class, using the nautilus equipment and having a personal trainer. By the time her
6-month membership expires, Francine hopes to lose 20 pounds, tone and strengthen
her muscles, improve her cardiovascular fitness and look and feel more attractive.
Francine’s expectations for her health and physical appearance reflect her _________
level of service for Planet Fitness.
A. Desired
B. Adequate
C. Transactional
D. Predicted
E. Ideal
A florist had promised to have the bridal flowers delivered to the wedding rehearsal
dinner by 6 p.m. Because of vehicle problems, the flowers did not arrive until the meal
was nearly over and the bride and her mother were very upset. To show how sorry he
was for the poor service, the florist put extra flowers in the bridal bouquet and gave
each mother and grandmother a free orchid corsage. The bride and her mother were
extremely pleased with the extra flowers and have recommended the florist to a number
of their friends. The florist is wondering if he shouldn’t deliberately underdeliver other
jobs, compensate the consumer with some upgrade and benefit from even more positive
feedback. The florist is responding to the:
A. Baker’s dozen paradigm
B. Service recovery paradox
C. Halo effect
D. Service dilemma
E. Service quandary
A business traveler checked into a Hyatt hotel and was given a room next to the
elevator. When he turned on the television, he was greeted with a Hyatt customer
service survey. He immediately took advantage of having the survey to let Hyatt know
how unhappy he was with his room location. The business traveler would most likely
be classed as a(n) _____ type.
A. Irate
B. Passive
C. Voicer
D. Aggressive
E. Mediator
Which of the following factors is NOT a factor leading to provider gap 1?
A. Inadequate marketing research orientation
B. Over-promising
C. Lack of upward communication
D. Insufficient relationship focus
E. Inadequate service recovery
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 any more but as a sequential process with a series of customer service
interactions which to them seemed at times arbitrary. A traveler could not estimate how
much time it would take to make reservations, to check-in, to board or any of the other
interactions-the time spent on these activities was typically directly related to the
experience and training of the airline’s employees. Canadian Airline could provide
better service to its target customers if it could:
A. Change customers’ perceptions of flying
B. Integrate all service functions
C. Standardize its services
D. Rely more on the tangible dimensions of service
E. Modify customers’ expectations
J C. Penney recently instituted a new policy for returns that states, “Happy returns. Any
item, anytime, anywhere. It’s that simple.” J. C. Penney’s return policy is an example of
a(n):
A. Marketing testimonial
B. Implicit service promise
C. Word-of-mouth communication
D. Past experience influencer
E. Explicit service promise
Emory Vision Center has a packet of information that it sends to people who are
interested in LASIK surgery. The center also has a doctor available to speak to
organizations about how vision can be corrected. In addition, it publishes a newsletter
called The Visionary in which it offers family discounts, clarifies patient expectations
and notes awards and honors the center receives. The center also manages a web site
that contains news on the latest innovative research techniques. Through its
communications with current and potential patients, Emory Vision Center is:
A. Managing internal marketing communications
B. Resetting customer stamdards
C. Managing customer education
D. Leveraging social media
E. Creating effective upward communication
Which of the following factors leads to provider gap 2?
A. Inappropriate physical evidence and servicescape
B. Inadequate marketing research
C. Lack of integrated services marketing communications
D. Failure to match supply and demand
E. Inadequate horizontal communications
A consumer is more likely to complain when:
A. The individual’s involvement with the product being purchased is low
B. The level of ego involvement in the purchase is high
C. He or she is the only one who experienced service failure
D. The purchase is one that is made routinely
E. Service failure costs less than $5.00
In a service blueprint, the line of visibility separates:
A. Customer actions from onstage contact employee actions
B. Backstage contact employee actions from support processes
C. Onstage contact employee actions from backstage contact employee actions
D. Onstage contact employee actions from support processes
E. Customer actions from backstage contact employee actions
Which of the following queue configurations is designed to ensure fairness of waiting
time?
A. Multiple queue
B. Double queue
C. Take-a-number queue
D. Queue with barriers
E. Roundabout queue
The customer equity model illustrates how:
A. Customer equity is influenced by value equity, brand equity and relationship equity
B. Interactive marketing, external marketing and internal marketing are interrelated
C. To identify unexpected service encounters
D. Customer equity leads to more efficient defensive marketing
E. Organizations can more effectively monitor customer churn
Peak demand regularly exceeds capacity in all of the following service businesses
EXCEPT:
A. Hotels
B. Public transportation systems
C. Restaurants
D. Insurance companies
E. Tax accountants
The sources of customer expectations are market-controlled factors such as:
A. The individual’s innate needs
B. The individual’s previous experiences
C. Word-of-mouth communication
D. Sales promises
E. What the competition is offering
Trailer calls are also called:
A. Prospecting calls
B. Post transaction surveys
C. Buyers’ intentions surveys
D. Lost customer calls
E. Follow-up surveys
Which service recovery strategy is most closely connected to an employee
empowerment strategy?
A hotel manager is studying other hotels to see how they achieve and maintain service
quality. The manager has spent some time paying attention to the actions, interactions,
and appearance of front desk clerks, housekeepers, spa attendants and restaurant staff.
With which element of the services marketing mix is the hotel manager concerned?
What is provider gap 4 of the gaps model of service quality?
Discuss the reasons why customer knowledge of service prices may differ from
customer knowledge of goods prices.
What are the two types of research methods that can be used to document customers’
opinions about whether service performance met standards?
List three sources of customer expectations that are market-controlled factors.
On Saturday nights, the wait for a table at the popular restaurant Chez Anthony can be
more than one hour. How would the waiting experience differ for a person waiting
alone as compared to a person waiting with a group of friends?
Employee appearance and dress are important aspects of the _________ dimension of
service quality.
Once a service provider has translated customer expectations into behaviors and
actions, it must select those behaviors and actions that will be used to create employee
standards. What are the six most important criteria for the creation of those standards?
Discuss the underlying logic of the service-profit chain
A national cleaning service sent several crews to Florida after the hurricanes of 2004.
The crews were trained to deal with mud, mildew and all the problems of making a
flooded home or building inhabitable again. The print and media ads that the cleaning
service ran stated that the company had a patented system that would remove all
unpleasant odors from flooded structures and leave a clean smell. Its sales reps who
contacted owners of apartment complexes and shopping centers promised that the crews
could come into an average size of apartment complex and have it looking and smelling
like new in two weeks. Several people who rent apartments in the complexes that the
service cleaned have commented unfavorably on the sweet smelling air freshener the
company used to mask the smell and noted the moldy odor was still perceptible. Also,
the time required to clean a complex was more like four weeks instead of the two as
promised. Which provider gap does this example describe? List various strategies that
can be used to narrow and possibly eliminate this provider gap.
Describe what an organization needs to do first to develop strategies for addressing
customer involvement in service delivery,
On which of the provider gaps are deficiencies in human resources management
policies most likely to have the greatest impact?
Keith overheard two women comparing the way the dog groomer clipped their
poodles. One claimed the groomer did not cut the hair between her dog’s toes as was
advertised, but that everything else about the cut was perfect. The other groused that the
groomer left the hair on her dog’s tail too long, but at least the hair on his feet had been
cut. Which characteristic of service were the two women discussing?
A friend of yours is setting up a math tutoring service. She has asked you, “Do all
services need to offer customer guarantees”? Explain your answer. Then explain why or
why not she should or should not offer a customer service guarantee.
What are the two types of market segmentation commonly used by service providers?
Not all servicescapes are used in the same way. Discuss the various ways servicescapes
are used and give an example of each.