Search costs are the costs invested to identify and choose from services you desire.
A primary issue that marketers face in relation to service perishability is ensuring
service quality over time.
The first rule of service quality is to do it right the first time.
A pharmacy that installs a computer system that automatically checks to see if a new
prescription is compatible with other medication a customer is currently taking has used
a one-time fix.
“Having more room in your airplane seat” would be an example of a soft
customer-defined standard.
Moderate customer participation is required with marriage counseling.
Process reengineering is one of the easiest ways to develop service-oriented internal
processes.
The cracked and buckled pavement of the parking lot outside the superstore illustrates
how physical evidence can assume the role of package.
Customer input can affect the service organization’s productivity through both the
quality of what they contribute and the resulting quality and quantity of output
generated.
Level 1 retention strategies are very useful in creating a long-term competitive
advantage.
All services have about the same number of service encounters.
One of the biggest challenges facing a marketing researcher is converting a complex set
of data into a form that can be read and understood quickly by executives, managers,
and other employees who will make decisions from the research.
Complaint solicitation research requires a substantial investment in both time and
money.
The last step of building a service blueprint is to add the physical evidence of the
service.
In most service companies, the marketing and operations functions are seamlessly
integrated to facilitate the development of service quality standards.
One way to address service intangibility is to offer the customer a variety of choices.
Relationship marketing essentially represents a paradigm shift within marketing-away
from an acquisitions/transaction focus toward a retention/relationship focus.
Service researchers have suggested that consumers judge the quality of services based
on their perceptions of the technical outcome provided, the process by which that
outcome was delivered, and the quality of the physical surroundings in which the
service was delivered.
Because a product is tangible, it cannot be inventoried.
Sometimes the personal values of the category of complainers called passives prevent
them from complaining about a service even when they should.
The seven elements of the marketing mix for services are product, promotion, place,
price, process, progress, and people.
The synchronizing of supply and demand will narrow provider gap 4.
One of the problems associated with cost-based pricing is the heterogeneity of services,
which limits comparability.
Service providers should never encourage word-of-mouth communication.
Hurricanes and tornadoes that affect a large number of people are examples of personal
situational factors.
When a hospital with formerly monochromatic walls added murals honoring fire
fighters and police officers, it would be an example of a service improvement.
Through its external marketing efforts, a company makes promises to its customers
regarding what they can expect and how it will be delivered.
Explicit service promises are defined as any non-personal, paid-for communication
between the customer and the seller.
A services research program can be defined as the composite of separate research
studies and types needed to address research objectives and execute an overall
measurement strategy.
A hair salon is an example of an elaborate interpersonal service.
Cost-plus pricing is more likely to be used by lawyers than by the construction industry.
Improved upward communication can be used to narrow provider gap 1.
The service recovery paradox states that all recovery service efforts deepen the
long-term relationship between the customer and the service provider.
Promotional pricing may be less meaningful for services, for which price anchors do
not exist, than for goods, for which they do.
Research used to track overall service quality that will be used for bonuses and salary
increases of salespeople should have statistical validity.
The nature of many service jobs suggests that customer satisfaction will suffer slightly
when employees work as a team.
On the service blueprint, the line of visibility separates all contact employee actions that
are visible to the customer from those that are not.
New service development is typically a linear process.
Benford Bank recently opened a school with kindergarten through fifth grade classes
run by the county school system and a child-care center at its headquarters office park.
By providing “work-and-family” benefits designed to help employees balance the
stresses of a demanding job and family life, Benford Bank is:
A. Promoting teamwork
B. Treating employees as customers
C. Measuring and rewarding strong service performers
D. Including employees in the company vision
E. Empowering employees
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
The business program at Big State University offers classes that start as early as 6:30
a.m. and as late as 9:30 p.m. for its undergraduates. It also has Saturday and Sunday
undergraduate classes in addition to its regular daytime program. Big State University is
using which of the following strategies for shifting demand to match capacity?
A. Differentiate on price
B. Modify timing and location of service delivery
C. Vary the service offering
D. Stretch capacity
E. Communicate with customers
At college, Marla is active in drama. This summer she plans to run a two-week drama
camp for the children in her neighborhood. She is planning to charge $75 per child. At
the end of the two-week period, she is hoping to have the group present a play she has
written. She plans on hiring her two brothers to assist her. The campers will learn all
about the theater by building the set, rehearsing the play, selling tickets, making
costumes and doing everything else needed to present the play. Discuss her activities in
terms of the service marketing triangle.
may vary
Defined as a combination of personal motivation, ability and role clarity, ________ is a
major factor in determining whether customers will try a new self-service option.
A. Customer reliability
B. Service competence
C. Customer attitude
D. Customer readiness
E. Service inclination
In order to increase usage of the family-oriented ski resort, its owner sent letters to
several college fraternities inviting them to spend their winter vacation at the resort. By
inviting college students, the resort more than likely widened provider:
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
E. Gap 5
The _______________ states that the rank that consumers assign to a service relative to
the others in the category predicts share of wallet.
A. Share of customer formula
B. Budget allocation rule
C. Market allocation rule
D. Wallet allocation rule
E. Share of spending formula
When Alicia and Jordan dined at Formia Ristorante, a contemporary Italian restaurant
in New Jersey, they both enjoyed Formia’s coy, smart and embracing atmosphere.
Formia creates this atmosphere with a single large dining room that measures 20 by 60
feet and contains 14 roomy tables. Ceiling fans slowly swirl as candlelight dances
across the tables that are attentively cared for by servers. Vertical pink and white florid
patterns emerge from old wainscoting. Finally, Formia’s two-page menu offers guests a
range of pasta, chicken, veal, and seafood entrees, in addition to nightly specials that
are handwritten and presented on large index cards. Alicia and Jordan experienced the
_____ element of Formia Ristorante’s services marketing mix.
A. Product
B. Production
C. Process
D. Place
E. Physical evidence
Which of the following statements about the Banwari Mittal’s properties of intangibility
is true?
A. Services such as dental care have less nonsearchability than babysitting
B. An ATM is high in incorporeal existence
C. Service benefits such as fun and excitement are concrete terms
D. Services like doctors, amusement parks and health clubs are typically described in
specific terms
E. Services such as an MRI or a cat scan have a high level of mental impalpability
A vacuum cleaner repair shop that called recent customers to ask if the people who
waited on them were friendly and courteous, if the cleaner had been clean when it was
returned to them and if they had any trouble finding the new store is collecting feedback
on _____ measurements.
A. Hard
B. Basic
C. Formal
D. Soft
E. Informal
A prestige pricing strategy is appropriate when customers define value as:
A. All that I get for all that I give
B. Everything I want in a service
C. Low price
D. Reliable service
E. The quality I get for the price I pay
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
Which of the following is NOT an effective pricing strategy to use when customers
define value as “low price”?
A. Odd pricing
B. Synchro-pricing
C. Value pricing
D. Penetration pricing
E. Discounting
In ___________ encounters, the tangible evidence of the service and the quality of the
technical processes and systems are the primary bases for judging quality.
A. Technology-mediated
B. Detached
C. Public
D. Collective
E. Remote
Provider _____ is the discrepancy between the development of customer-driven service
standards and actual service performance by company employees.
A. Gap 1
B. Gap 2
C. Gap 3
D. Gap 4
Jack and Luke used the same mechanic to fix their cars. Both were unhappy with recent
repairs. Luke who complained because his car was improperly repaired will have a
______ level of adequate service and a _____ zone of tolerance than Jack who did not
complain about how poorly his car was running after the mechanic put in new spark
plugs and did other maintenance.
A. Lower; narrower
B. Lower; wider
C. Higher; narrower
D. Higher; wider
E. Stays the same; stays the same
Eddie Bauer, a catalog retailer, offers customers three different delivery options: 5 to 7
days via standard delivery; 3 to 4 days via express delivery; or 2 days via express plus
delivery. The delivery rates are higher for faster service. For example, on orders over
$75 standard delivery is $9.95, express delivery is $15.95 and express plus delivery is
S1. By offering different delivery options, Eddie Bauer is:
A. Making multilevel service promises
B. Communicating criteria for service effectiveness
C. Managing customer expectations
D. Managing horizontal communications
E. Exceeding customer expectations
To determine the source of customers’ favorable and unfavorable perceptions in service
encounters, researchers use which of the following research methods?
A. Trailer calls
B. Mall intercept interviews
C. Role-playing experiments
D. Critical incident technique
E. Thematic apperception tests
The most distinguishing characteristic of services is:
A. Heterogeneity
B. Perishability
C. Intangibility
D. Comparability
E. Divisibility
If the purpose of the service blueprint is to understand the customer’s view of the
process, the blueprint should be analyzed:
A. As a whole
B. Vertically, from the top to the bottom
C. From left to right
D. Vertically, from the bottom to the top
E. From right to left
After Janine returned home from a vacation in California, she noticed that her new
luggage had a five-inch tear in it. Rather than assuming that the damaged luggage was a
cost of flying and there was nothing to be done about it, she called the airline’s customer
service center. The person answering the phone at the center mailed her the instructions
for getting her suitcase repaired at the airline’s expense. Janine was pleased with the
repair when the suitcase was shipped home about a month later. In this scenario, Janine
played the role of:
A. Customer mix manager
B. Competitor
C. Productive resource
D. Contributor to quality and satisfaction
E. Recruiter
In which of the following service situations would customers have the highest level of
participation?
A. Eating at a local barbecue restaurant
B. Taking self-defense classes
C. Staying at a Marriott resort hotel
D. Traveling on an American airplane
E. Attending a symphonic orchestra concert
When the customers of Granite Rock expressed their desire for 24-hour availability of
ground rock products from the quarry, the company responded by creating an ATM-like
system and the Granite Xpress Card that allows customers to enter the quarry and select
and receive ground rock products at any time of the day or night. Granite Rock
addressed customer requests with a(n):
A. Compliant standard
B. Concrete substitution
C. Internal anchor
D. One-time fix
E. Quick solution
Which of the following industries would be ranked highest by the American Customer
Satisfaction Index (ACSI)?
A. Internet retailers
B. Electronics
C. Hotels
D. Supermarkets
E. Internet social media
Rangu read in the newspaper that he could receive a free month’s cable television
service if he would agree to use the service for two years. The ad had no other stated
restrictions and appeared to apply to the entire county in which Jackson lived. When
Rangu went by the cable television office, the salesperson there told Rangu that his area
of the community was not eligible for the free month offer. If he wanted cable, he had
to pay $400 to have the cable service brought to his house. Rangu experienced a
problem with:
A. Under-promising and over-delivering
B. Marketing communications that were not integrated
C. A lack of interactive marketing communications
D. Poor vertical communications
E. Ignorance of the service marketing mix
The weekend cruise cost Jason Riggs $800 dollars. Before leaving on the cruise, Riggs
told his neighbor, “With the money this trip is costing me, the food better be good and
plentiful.” What kind of expectations did Roux have?
A. Minimum tolerable
B. Normative
C. Conventional
D. Functional
E. Ego-based
The three basic things that customers expect from technology-based service encounters
are:
A. Context; delivery on the core promise; color correctness
B. Delivery on the core promise; flexibility of the systems; better than the alternative
C. Color correctness; better than the alternative; flexibility of the systems
D. Variability; delivery on the core promise; color correctness
E. Better than the alternative; color correctness; content
Caribbean Airlines has installed automated ticket machines in its major airport
terminals that enable passengers to purchase tickets, obtain boarding passes and get seat
assignments by inserting a credit card into the machine. A passenger using a Caribbean
Airlines’ automated ticket machine is playing the role of a:
A. Customer mix manager
B. Competitor
C. Productive resource
D. Contributor to quality and satisfaction
E. Recruiter
Which of the following is an important consideration for innovating or developing a
new service?
A. Involve only employees in the innovation process.
B. Employ service and design thinking and techniques.
C. Use only words to describe the service.
D. Design elements of the service separately, rather than as parts of a whole.
E. Involve only design experts in the innovation process.
When customers feel uncertain about their ability to evaluate services with high levels
of credence qualities such as banking and insurance, the ________ dimension of service
quality is likely to be particularly important.
A. Reliability
B. Responsiveness
C. Assurance
D. Empathy
E. Tangibles
Discuss the four sources of conflict for boundary-spanning service workers.
may vary
What is the key to closing the customer gap?
Not all servicescapes are used in the same way. Discuss the various ways servicescapes
are used and give an example of each.
may vary
What is a hair salon owner looking for when he takes the time to see if a prospective
hair stylist is a good listener, has a pleasing personality and likes to work with people?
may vary
Comment on the following statement: “New-service development is typically a linear
process.”
may vary
What are the two important considerations for service innovation?
may vary
The ad for the rental company showed top-of-the-line furniture and appliances with low
monthly rental rates. Maureen expected to see similar furniture and appliances when
she visited the company’s nearby store. But when Maureen entered the store to rent
living room furniture and a television, she saw poorly made furniture and appliance
seconds. This is an example of which service communication problem?
may vary
Martine wants to open an after-school tutoring service for students in 6th through 9th
grade. How can a thorough knowledge of customers’ expectations improve the
probability of her success?
may vary
Discuss the following statement: “Service quality dimensions are driven by employee
behavior.”
may vary
What is the primary goal of relationship marketing?
may vary
What is the primary issue that marketers face in relation to service perishability?
may vary
What is the key determinant of whether a product is a good or a service?
may vary
When is a customer for a janitorial service most likely to notice the cleaning done by
the service and make some comment about it?
may vary
What kind of demand fluctuation for janitorial services resulted from the widespread
flood in south Louisiana in 2016?
may vary
What kind of consumer presence is required when Josefina has the oil changed in her
2012 Ford Escape?
may vary
List the four bases that can be used to differentiate waiting customers.
may vary
What are service performance indexes, how are they created and how do companies use
these indexes?
may vary