MKT 201: Chpt #11: Services: The Intangible Product

Which statement describes the relationship between the external value proposition and employee satisfaction according to the service-profit chain model?

A. When customers perceive a company has delivered on its promise of value, employee satisfaction increases.

B. Employee turnover increases when a company fails to deliver value.

C. There is no relationship between a company’s external value proposition and employee satisfaction.

D. When employees feel motivated to stay with a company because they are satisfied, they generally desire to create value for customers.

When employees feel motivated to stay with a company because they are satisfied, they generally desire to create value for customers.

Which of the following is false about the service-profit chain model?

A. The support that frontline employees receive from the rest of the organization increases employee satisfaction

B. When employees are satisfied, they are more loyal and productive and thus create value for the customer

C. Having loyal employees rarely results in having loyal customers

D. When employees are loyal, customers tend to be loyal, which drives company growth

Having loyal employees rarely results in having loyal customers

Employee retention as part of the service-profit chain model refers to _______.

A. The efficiency and output of employees

B. Keeping employees motivated so that they choose to remain with the company

C. The level of happiness or contentment employees have with their jobs and work environment

D. The perceived satisfaction frontline employees experience when they are supported by effective policies and service from the organization

Keeping employees motivated so that they choose to remain with the company

When customers at Lauren’s Salon and Lash Bar book an online appointment, they expect to receive a text confirmation that the appointment has been set. While the online booking system is equipped to deliver confirmation texts, Lauren’s Salon and Lash Bar has no idea that customers prefer confirmation texts over confirmation emails. Which gap from the Gap Model of Service Quality is represented here?

A. Policy gap

B. Communication gap

C. Delivery gap

D. Knowledge gap

Knowledge gap

When musical artist Beyoncé exits the stage at Madison Square Garden in New York City after her show ends, the service she provides has been delivered. A fan would need to purchase an additional ticket to a different show to see her perform again. What characteristic of service does this example represent?

A. Service intangibility

B. Service perishability

C. Service variability

D. Service inseparability

Service perishability