Flying across the Pacific Ocean is an eight-hour trip that could be dreadful if you did
not fly Singapore Airlines. An ad that featured a customer saying, “The cabin crew
makes flying with Singapore Airlines a pleasure” and announcing Singapore had won
top honors for international travel in Business Traveler’s magazine annual contest would
be an example of _____ marketing.
A. Internal
B. Interactive
C. Integrated
D. External
E. Relationship
Frequent travelers on airlines know one of the costs of traveling is damaged baggage,
but they also know that each airline will either repair or replace any luggage damaged
by its baggage handlers. The ability to count on this service in the event a handle is torn
off or the side of a bag is gashed helps the airlines narrow provider _____ of the gaps
model of service quality.
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
Progressive Insurance examined insurance from the customers’ viewpoint and saw how
difficult it was to get an auto claim processed and paid by insurance companies. Then
the company crafted its service strategy around solving that problem. The company has
fleets of claim adjustors on the road every day, ready to rush to the scene of an accident
in their territory and provide fast claims processingsometimes on the spot. What advice
would you give Progressive Insurance if it wanted to expand its market to include
China, where there is a rapidly growing middle class?
A. Use the same service model the company uses in the U.S. and success is guaranteed
B. It is impossible because service excellence is not appreciated in other countries
C. Values are the same worldwide so Progressive should have no problem
D. Other than some language differences, Progressive should have no difficulty because
its service is based on human interaction
E. The many legal, cultural and language barriers will make it very challenging
Which of the following is an example of a remote service environment?
A. Scarlett O’Haira hair salon
B. First National Bank of Polk County
C. The Home Depot
D. Pizza Hut restaurant
E. Carolina Power, an electricity provider
_____ refers to the fact that services cannot be saved, stored, resold or returned.
A. Intangibility
B. Heterogeneity
C. Simultaneous production and consumption
D. Perishability
E. Incompatibility
Provider gap 3 of the gaps model of service quality is caused by:
A. Failure to match supply and demand
B. Advertising that over-promised
C. Failure to connect service design to service positioning
D. Inadequate maintenance of servicescape
E. A tendency to view each external communication as independent
After his home was burglarized, Rich became concerned about the safety of his wife
and three children since he often traveled out-of-town on business. To prevent further
burglaries and ensure his families safety, Rich decided to purchase a home security
system from ADT Security Systems. Rich’s expectation that an ADT home security
system will protect his family and prevent future burglaries is influenced by his
____________.
A. Social needs
B. Derived service expectations
C. Personal service philosophy
D. Perceived service alternatives
E. Adequate service expectations
While most KFC restaurants look alike, there is one in Marietta, Georgia, that is in the
base of a 56-foot tall chicken replica with rolling eyes and a moving beak. In this
example, the servicescape is acting as a:
A. Package
B. Facilitator
C. Differentiator
D. Boundary spanner
E. Socializer
When consumers have problems with a Web site, they use _____ dimensions to
evaluate e-service quality.
A. Tangibility, efficiency and fulfillment
B. Responsiveness, compensation and contact
C. Empathy, efficiency and expectations
D. Reliability, privacy and assurance
E. Efficiency, fulfillment, reliability and privacy
Which of the following incidents is likely to influence a customer’s perception of
service quality of an appliance store?
A. A late night call to the store’s service department
B. The relationship the customer has established with the store after buying several
different appliances
C. A salesperson’s explanation of extended warranty service
D. The welcoming atmosphere of the store
E. All of the above
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. Just before heading home, each guest is asked to
complete a questionnaire and provide feedback about his or her experience. Questions
are specific and management meets weekly to review and discuss the improvements
suggested by guests. Each guest who completed a questionnaire receives a letter of
thanks with a promise to follow up on any issues mentioned. By conducting research
and focusing on customer relationships, The Oaks is closing provider _________ of the
gaps model of service quality.
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
Which of the following factors does NOT cause provider gap 3?
A. Ineffective employee recruitment
B. Failure to match supply and demand
C. Efficient marketing research systems
D. Channel conflict over objectives and performance
E. Lack of employee empowerment, perceived control and teamwork
Step-by-Step day care center offers parents several other services not normally offered
by day by day care centers. A caterer is present every morning when the children are
dropped off to take orders for supper. When the parents pick up their children in the
evening, their supper is ready for them to take home, too. A hair stylist comes to the
center once a week and cuts the hair of any child whose parents request this service. A
photographer comes to the center every three months to take updated pictures of
children whose parents don’t have the time to take their children to the photography
studio. In this way, Step-by-Step is using _____ to support its customer retention
strategy.
A. Financial bonds
B. Social bonds
C. Customization bonds
D. Structural bonds
E. Security bonds
What two pricing strategies are most commonly used when the customer defines value
as quality for the price paid?
A. Market segmentation pricing and value pricing
B. Psychological pricing and value pricing
C. Penetration pricing and value pricing
D. Discounting and value pricing
E. Market segmentation pricing and price skimming
Based on servicescape usage, a convenience store is a(n) _____ environment.
A. Self-service
B. Vertical service
C. Remote service
D. Flexible service
E. Interpersonal services
Harris Woodard has purchased a franchise business called Like New Windshields, a
company that repairs cracked and pitted vehicle windshields. As a franchisee, he will
come to your home or office to repair a damaged windshield. His goal is to make sure
that he has enough customers without having more than he can handle efficiently.
Which of the following is going to make it difficult for him to accomplish his goal?
A. Lack of inventory capability
B. Compatibility management
C. Customer heterogeneity
D. Franchise empowerment
E. Fluctuating equilibrium points
Denise said all she expected from the day care at the gym she belonged to was to get
her children back at the end of an hour and learn the police had not been called because
of something they did. She uses this particular gym because the day care will let her
unruly children stay even though it provides only the nominal supervision. Denise has
_____ expectations about the day care.
A. Desired
B. Acceptable
C. Conventional
D. Minimum tolerable
E. Experience-based
A commercial for Carnival Cruises shows a group of friends scuba diving, rock
climbing, dancing and having a really great time. Which strategy for tangibilization is
Carnival using in this commercial?
A. Illumination
B. Physical representation
C. Allusion
D. Documentation
E. Visualization
New owners of the Atlanta Falcons wanted to increase attendance by giving customers
want they wanted. After determining that family-oriented halftime shows was an
important consideration for a large portion of its target market, the Falcons researched
specific ideas such as fireworks displays, a battle of the bands featuring local high
school bands, drawings for prizes and musical concerts. The additional research would
have been done during which step of the developing customer-defined standards?
A. Developing feedback mechanisms for measurement of standards
B. Identifying existing or desired service encounter sequences
C. Establishing measures and target levels for standards
D. Deciding whether hard or soft standards are appropriate
E. Translating customer expectations into specific behaviors and actions
_____-based pricing is used when there are a small number of large service providers.
A. Demand
B. Profit
C. Competition
D. Supply
E. Cost
Some retailers have feared that their customers will like the convenience of Internet
shopping and quit shopping at their stores. To combat this, many mall retailers have
tried to create a shopping experience that is entertaining because they believe that
Internet retail sites are not designed to be fun. That’s why you’ll see fashion shows,
magic acts, local singers and children’s art exhibits at malls. The malls are encouraging
_____ behavior.
A. Social interaction
B. Cognitive
C. Avoidance
D. Ergonomic
E. Holistic
Why would a blood bank, which pays people for their blood donations and then sells
this blood to hospitals, use the name Blood Assurance?
A. Because the assurance dimension of service quality guarantees customer satisfaction
B. Because the assurance dimension of service quality means that the blood donation
will be done accurately
C. Because the assurance dimension of service quality emphasizes the knowledge of the
employees
D. Because the assurance dimension of service quality negates concerns about tangibles
E. Because the assurance dimension of service quality inspires trust and confidence
Anika belongs to an Internet library, which lets her trade books she no longer wants for
like-valued items she does want. Most members follow the rules of the Web site, but a
few unscrupulous members do not mail requested books because they are more
interested in acquiring books than sharing them with others. Anika has the potential to
experience problems with which e-service quality dimension as she trades books?
A. Assurance
B. Reliability
C. Fulfillment
D. Empathy
E. Efficiency
Rama thought the light blue paint on the walls of the hospital waiting area was a vast
improvement over the old brown paint. The repainting of the walls of the service
provider is an example of a:
A. Major innovation
B. New service for the currently served market
C. Service line extension
D. Service improvement
E. Style change
Instead of cooking dinner themselves, Jenna and her roommate Sheryl decided to order
pizza and have it delivered to their apartment. Although Jenna and Sheryl usually order
pizza from Pizza Hut, they had recently received coupons in the mail from two other
neighborhood pizza restaurants, JoJi’s Gourmet Pizza and Angelo’s Pizzeria, for
discounts on the purchase of two medium pizzas. JoJi’s Gourmet Pizza and Angelo’s
Pizzeria are providing the roommates with:
A. Personal need influences
B. Situational factors
C. Evoked service offerings
D. Temporary service intensifiers
E. Perceived service alternatives
The process of managing multiple and sometimes conflicting customer segments is
known as _____ management.
A. Relationship
B. Compatibility
C. Demand mix
D. Position
E. Targeted
The increased profits a service firm realizes from customer retention result from all of
the following EXCEPT:
A. Lower costs
B. Increased volume of purchases
C. The ability to charge a price premium
D. Customer defection
E. Increased word-of-mouth communication
The first step in the new service-development process is:
A. Idea generation
B. New-services strategy development
C. Business analysis
D. Business strategy development or review
E. Concept development and evaluation
By guaranteeing that all participants in its dance classes will be able to do the foxtrot
by the end of their first lesson or their money will be refunded, the Fred Astaire Dance
Studio is:
A. Managing customer expectations
B. Engaging in public relations
C. Precisely matching service delivery with service promise
D. Managing its horizontal communications
E. Under-promising and over-delivering
The transition from the _____ stage to the _____ stage of the customer relationship
requires the development of trust.
A. Customers as acquaintances; customers as friends
B. Customers as strangers; Customers as acquaintances
C. Customers as partners; customers as acquaintances
D. Customers as acquaintances; customers as strangers
E. Customers as friends; customers as strangers
When Simone dropped off her German Shepherd at the Puppy Heaven Kennel before
she went on vacation, she was pleased when she saw that the waiting room was brightly
lit, it looked and smelled clean, and all of the employees were wearing neat uniforms.
In service blueprinting terms, the condition of the waiting room and the employee
uniforms are examples of:
A. Physical evidence
B. Onstage contact employee actions
C. Backstage contact employee actions
D. Support processes
E. Customer actions
The Detroit Tigers, a professional baseball team, prohibits the sale and consumption of
alcohol in the “Family Section” of Tiger Stadium. The Detroit Tigers are:
A. Rewarding customers
B. Positioning customers
C. Managing the customer mix
D. Defining customers’ jobs
E. Educating customers
At the restaurant last night, the restaurant owner asked the server to turn the television
on the Braves game and to turn up the sound so he could hear it. A group at a nearby
table asked the server to turn down the sound so they could hold a conversation. Yet
another group of patrons asked that the television be turned to another channel that was
showing a Clint Eastwood movie. The server had to deal with both _____ conflicts.
A. Person/role and Inter-client
B. Heterogeneous and person/role
C. Organization/client and person/role
D. Inter-client and organization/client
E. Escalating and organization/client
For which of the following service providers would a guarantee be inappropriate?
A. A child care provider who has a reputation for providing the best and most
responsible child care in a community
B. A truck rental company
C. An engine tune-up at a car dealership
D. A travel agency
E. A university