Deana and Rod Li went on a one-week vacation at the Club Med Turkoise village,
located in Turks and Caicos, a chain of islands in the Caribbean. Club Med’s per person
price of $1499 included round-trip air travel from New York, one-week
accommodations, all meals, sports, activities and nightly entertainment. Club Med is
using a _____ strategy.
A. Market segmentation pacing
B. Price framing
C. Complementary pricing
D. Price bundling
E. Contingency pricing
The Oaks at Ojai is an award-winning destination spa in California. Two thirds of The
Oaks’ guests are repeat visitors who return to the spa for a fun and relaxing service
experience unsurpassed by other spas. The owner and staff of The Oaks are committed
to delivering the best service possible. Each employee is carefully selected and trained,
every event happens with precision, guest questionnaires are thoroughly reviewed, and
improvements suggested by guests are implemented. By having service standards that
reflect what customers expect, The Oaks at Ojai is closing provider _________ of the
gaps model of service quality.
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
Southwest Airlines has consistently had one of the best on-time performance records in
the airline industry. A critical factor in Southwest’s success has been its use of second
tier airports such as Midway in Chicago, Hobby in Houston, City in Detroit and Ontario
in Los Angeles. These lower traffic airports allow Southwest to have a faster turnaround
for its airplanes so they spend a greater percentage of their time in the air. Seventy
percent of Southwest’s flights have a turnaround time of 15 minutes. Southwest
Airline’s on-time performance reflects the _____ dimension of service quality.
A. Reliability
B. Responsiveness
C. Assurance
D. Empathy
E. Tangibles
Kendra teaches swimming lessons at the YWCA pool. She will charge $75 per child
for four weeks worth of lessons. Payment is not due until the child can swim the length
of the pool. If the child cannot accomplish this task, he or she will be automatically
enrolled in the next swimming lesson session until the child can swim the length of the
pool. At that time, the parents will be expected to pay the $75. The YWCA is using a(n)
_____ pricing strategy.
A. Price framing
B. Complementary pricing
C. Price bundling
D. Results-based
E. Value-based
Hertz Car Rental has a customer loyalty program called Gold Plus Rewards that
rewards members with one point per dollar spent on qualifying rentals. Free weekend
rentals can be earned for as few as 500 points. By having a customer loyalty program,
Hertz is using __________ marketing.
A. Transactional
B. Developmental
C. Proactive
D. Relationship
E. Acquisition
_____ focuses on the interpersonal treatment received by the consumer during the
complaint process.
A. Functional fairness
B. Procedural fairness
C. Interactional fairness
D. Service equity
E. Outcome fairness
Convention hotels provide meeting rooms and banquet hotels to convention
participants. Sometimes a specific convention may involve 2,000 members or only 75
members. To take care of both sizes of groups, convention hotels have movable walls
that allow them to expand or contract a facility as needed by the group. By modifying
its facility, the convention hotels are able to:
A. Adjust capacity to match demand
B. Create optimal supply
C. Optimize its demand pattern
D. Outsource its requirements
E. Smooth peaks and valleys of demand
The Baltimore Orioles, a professional baseball team, offer standing room only seats to
fans when a home game at The Ballpark at Camden Yards is sold out. The Baltimore
Orioles are stretching _____ to adjust the capacity of The Ballpark at Camden Yards to
meet fan demand.
A. Time
B. Labor
C. Facilities
D. Equipment
E. Customers
Which of the following is a strategy for enhancing customer participation in the service
process?
A. Increase emotional labor
B. Recruit, educate, and reward customers
C. Measure internal service quality
D. Conduct lost customer research
E. Allow customers to define their own roles
When you visit the web site for Hyatt hotels, you can look at pictures of its newest
hotels, register for its continuity programs and make reservations quickly. These
elements of its web site are all examples of:
A. Service encounter arena
B. Technological intangibility
C. Responsiveness
D. Physical evidence
E. A technological service arena
Which of the following is NOT an example of a hard measurement?
A. Number of times a service guarantee is invoked
B. Length of time spent on service calls
C. Satisfaction with reservation process
D. Length of time it takes to resolve complaints
E. Percentage of packages delivered after the promised date
The three types of complementary pricing are:
A. Substitute pricing, price bundling and leader pricing
B. Leader pricing, value pricing and price lining
C. Leader pricing, penetration pricing and captive pricing
D. Two-part pricing, results-based pricing and bundling
E. Two-part pricing, captive pricing and loss leadership pricing
If you buy your tickets early for a live theater production in Rome, you’ll pay about 30
percent less, than if you buy them on the day of the show. The lower price helps the
early sale of tickets and guarantees the audience will be large enough to justify the cost
and effort put into the production. What strategy does the theater company use to shift
demand for theater tickets?
A. Differentiate on price
B. Modify timing and location of service delivery
C. Vary the service offering
D. Stretch capacity
E. Communicate with customers
Johanna wants to learn self-defense and has signed up for a class at her local YMCA.
She chose this particular class because her sister took it last year and told her it was a
great class. While Johanna has never had a need to defend herself, everyone tells her it
is a good idea to learn how. Johanna’s service expectation for the class was shaped by:
A. A social needs philosophy
B. Word-of-mouth communication
C. Explicit service promises
D. Transitory need intensifiers
E. Her ego-oriented definition of service
Which of the following is NOT an example of a service business?
A. Amusement park
B. Hotel
C. Bank
D. Department store
E. Paper mill
Which of the following is NOT one of the properties of intangibility that has been
identified by the research of Banwari Mittal?
A. Nonsearchability
B. Abstractness
C. Incorporeal existence
D. Dynamic vs. static
E. Mental impalpability
A consumer who complains that the stain was not removed from her suit jacket is
performing which of the following service delivery roles?
A. Customer mix manager
B. Competitor
C. Productive resource
D. Contributor to quality and satisfaction
E. Recruiter
When a customer chooses between a restaurant in a pricy suburb of Atlanta and a
restaurant in a small farming community 45 miles away, there is a(n) _____ made by
the locations that the customer will be more likely to find exotic cuisine and better
trained servers at the downtown Atlanta restaurant.
A. Explicit service promise
B. Perceived service alternative
C. Word-of-mouth communication
D. Implicit service promise
E. Marketing testimonial
Every month the pest exterminator does a monthly spraying at Jean Poole’s house.
Every month Jean gripes that she is being ripped off by the exterminating company and
that she’s going to find a new one. But she never does change service providers due to:
A. The iteration principle
B. Customer inertia
C. Service standardization
D. Switching costs
E. Process reciprocity
_______ qualities are characteristics of a product consumers may find impossible to
evaluate even after purchase and consumption.
A. Search
B. Cognitive
C. Perceptual
D. Experience
E. Credence
The openings of new fast-food franchises are typically highly promoted
events-especially when the franchise is new to a geographic area. Special food
promotions are offered on the day of the grand opening and sometimes guest
appearances. Often if a grand opening event is scheduled for the first of the month, the
business will actually start serving customers who happen to notice that it is open
during the week prior to the first. In this way, employees can familiarize themselves
with their jobs and minor problems can be handled before they become major. This
pre-opening practice is most closely related to which stage of the new
service-development process?
A. Commercialization
B. Business analysis
C. Market testing
D. Service development and evaluation
E. Post introduction evaluation
The _____ is a set of measures that gives top managers a fast, but comprehensive view
of the business. It complements financial measures with operational measures of
customer satisfaction, internal processes and the organization’s innovation and
improvement activities.
A. Lifetime value of a customer
B. Multi-measure quality indicator
C. Balanced performance scorecard
D. FOCI satisfaction ratio
E. Benchmark of augmented success
When a customer enters John Robert’s Spa, which has a reputation for extraordinary
service, some of the _________ expected of employees are, “greet the client
enthusiastically within 8 to 10 seconds,” “confirm the client’s appointment,” and “offer
to provide a refreshment.”
A. Attitudes
B. Specific behaviors and actions
C. Value dimensions
D. Abstract requirements
E. General requirements
Once Mariko had carried her dry cleaning to the car, she took a minute to see if the
cleaners had removed the stain from her wool skirt. The stain was still there, so Mariko
took the skirt back inside to the cleaner. When Mariko showed the stained skirt to the
cleaner employee, she shrugged and said, “I guess you want us to reclean the skirt”?
Mariko responded, “Yes, please”. The employee took the skirt, gave Mariko a dirty look
and began sorting some items on the counter. The employee did not treat Mariko with:
A. Functional fairness
B. Procedural fairness
C. Interactional fairness
D. Service equity
E. Situational fairness
Executives most frequent questions about how to improve service quality are
concerned with:
A. Cost reduction and environmental impact
B. Good investment and high return
C. Following federal regulations and employee satisfaction
D. Operating in the most economic environments and maintaining a satisfactory level of
customer retention
E. Cost reduction and downsizing
If a family has one child enrolled in Diane’s Day Care Center, it costs $75 per week. If
a family has two children enrolled at Diane’s, it costs $135. Diane’s is using a(n) _____
differential.
A. Place
B. Time
C. Quality
D. Incentive
E. Quantity
When Grace wanted to buy a new pair of shoes, she went to Zappos.com because she
really likes the wide variety of styles they carry and the free shipping policy. The people
at Zappos.com who maintain the company’s website, manage the inventory, and ship the
shoes are performing:
A. Customer actions
B. Onstage contact employee actions
C. Support processes
D. Backstage contact employee actions
E. Audience actions
Customers’ tolerance zones vary for different service attributes or dimensions.
The_______________ the factor, the __________ the zone of tolerance is likely to be.
A. More important; wider
B. More important; narrower
C. Less important; wider
D. Less important; narrower
E. More important; less important
Internet service providers that offer subscribers their choice of hook-up speed and type
of spam blockers are:
A. Making realistic promises
B. Creating tiered-value service offerings
C. Communicating with customers
D. Managing horizontal communications
E. Exceeding customer expectations
The three types of benefits to organizations of maintaining and developing a loyal
customer base are:
A. Economic benefits; customer behavior benefits; human resource management
benefits
B. Economic benefits; confidence benefits; social benefits
C. Customer behavior benefits; human resource management benefits; social benefits
D. Special treatment benefits; economic benefits; customer behavior benefits
E. Confidence benefits; social benefits; customer behavior benefits
Lillie worked as a caterer when she was in college. She was highly critical of the
caterer and its staff that her parents selected for their 50th anniversary party. Lillie’s
attitude about how a caterer should act reflects her:
A. Augmented service expectation
B. Personal service philosophy
C. Derived service expectation
D. Cultural service expectation
E. Situational factors
Provider ______ is the difference between company understanding of customer
expectations and the development of customer-driven service designs and standards.
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
Betina had a group of checks that she needed to deposit and another that she needed to
cash for a trip she was leaving on the next day. When she got to her bank on Saturday,
she was very disappointed to see it was closed. There was one car in the parking lot and
a man was walking toward it. She pulled into a place to decide what to do. The man she
had seen walked up to her car and asked if he could help. When she explained her
problem, the man introduced himself as the bank’s vice president and offered to cash
her checks with the money he had in his wallet. Betina has since learned that this kind
of service is commonplace at her bank. She knows the bank focuses on the _____
dimension of service quality.
A. Reliability
B. Responsiveness
C. Assurance
D. Empathy
E. Tangibles
To close the customer gap, the gaps model of service quality suggests that the _______
gaps need to be closed.
A. Services marketing
B. Service dimensions
C. 4 Ps
D. Provider
E. Value
________ is the level of service that customers believe they are likely to get during an
impending transaction or exchange.
A. Adequate service
B. Desired service
C. Predicted service
D. Forecasted intensity
E. Personal service