Services Marketing Midterm
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63 Terms
In the simplest terms, ____________ are deeds, processes, and performances.
a.
Attributes
b.
Experiences
c.
Services
d.
Goods
e.
Benefits
c. services
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
c. services
Which of the following is an intangible component of a car repair shop?
a.
Replacement parts
b.
Employee uniforms
c.
Barrel for storing recyclable motor oil
d.
The training the mechanic has received
e.
Customer Waiting Area
d. the training the mechanic has received
Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining?
a.
Increasing use of technology is perceived by many customers as less service because there is no human interaction
b.
Companies provide unclear tactics for customers to follow when dealing with service providers
c.
Delivering consistent, high-quality service become routine
d.
Customers have no concept of what conditions produce to quality service
e.
Too many talented employees are left mired in front-end jobs that do not challenge them
a. Increasing use of technology is perceived by many customers as less service because there is no human interaction
The characteristic of a service that means that it cannot be seen, felt, tasted, or touched is:
a.
Intangibility
b.
Heterogeneity
c.
Divisibility
d.
Perishability
e.
Compatibility
a.
Intangibility
Which of the following statements describes a marketing implication that results from the intangibility of services?
a.
Services cannot be inventoried.
b.
Services cannot be easily patented.
c.
Services cannot be readily displayed.
d.
The actual costs of a "unit of service" are hard to determine.
e.
All of the above.
e. all of the above
A tax accountant may provide a different service experience to two different customers on the same day depending on their individual needs and personalities and on whether she is meeting with them when she is fresh in the morning or tired at the end of the day. This is an example of service _________________.
a.
Versatility
b.
Heterogeneity
c.
Simultaneous production and consumption
d.
Perishability
e.
Intangibility
b.
Heterogeneity
Because of the ________ of services, service producers find themselves playing a role as part of the product itself and an essential ingredient in the service experience for the consumer.
a.
Comparability
b.
Intangibility
c.
Heterogeneity
d.
Simultaneous production and consumption
e.
Perishability
d.
Simultaneous production and consumption
QUESTION 9
______ 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
d.
Perishability
___________ 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
e.
Credence
In addition to elements of the traditional marketing mix, the expanded mix for services includes:
a.
Positioning, personalization, and process
b.
People, physical evidence, and process
c.
Personalization, procurement, and people
d.
Profit, production, and psychology
e.
People, partnerships, and positioning
b.
People, physical evidence, and process
Provider Gap #1
The Listening Gap: the difference between customer expectations of service and company understanding of those expectations. (lack of upward communication)
Provider Gap #2
The Service Design and Standards Gap: the difference between company understanding of customer expectations and the development of customer-driven service designs
Provider Gap #3
The Service Performance Gap: is the discrepancy between the development of customer-driven service standards and actual service performance by company employees (variable: customers)
Provider Gap #4
The Communication Gap: illustrates the difference between service delivery and the service provider's external communications
To close the customer gap, the gaps model of service quality suggests that the ___________ gaps need to be closed.
a.
Service marketing
b.
Service dimensions
c.
4 Ps
d.
Provider
e.
Value
d.
Provider
The ____________ gap is the difference between customer expectations and perceptions.
a.
Customer
b.
Service
c.
Value
d.
Quality
e.
Delivery
a.
Customer
Provider ______________ is the difference between customer expectations of service and company understanding of those expectations.
a.
Gap 1
b.
Gap 2
c.
Gap 3
d.
Gap 4
a.
Gap 1
Enterprise Rent-A-Car closely ties customer service to employee success. With a tracking system called the Enterprise Service Quality Index (ESQi), the company routinely follows up with customers by phone to determine their level of satisfaction with the company. Only completely satisfied customers count toward an employee ESQi score, which is used to measure employee's potential for promotion. Enterprise closes provider _________ by using marketing research.
a.
Gap 1
b.
Gap 2
c.
Gap 3
d.
Gap 4
a.
Gap 1
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
b.
Gap 2
Service companies can close provider gap 3 by doing any of the following EXCEPT:
a.
Teaching customers to perform their roles appropriately
b.
Synchronizing supply and demand
c.
Motivating intermediaries to meet company service goals
d.
Empowering employees
e.
Developing customer-defined service standards
e.
Developing customer-defined service standards
Service companies can close provider gap 4 by:
a.
Improving communications between sales and operations departments
b.
Using a systematic new-service development process
c.
Eliminating employee role ambiguity and role conflict
d.
Creating customer-defined standards
e.
Making sure customers understand their roles and responsibilities
a.
Improving communications between sales and operations departments
Customer ___________ are beliefs about service delivery that function as standards against which performance is judged.
a.
Attitudes
b.
Judgements
c.
Goals
d.
Expectations
e.
Perceptions
d. expectations
______ service is the level of service the customer hopes to receive.
a.
Desired
b.
Adequate
c.
Functional
d.
Predictable
e.
Augmented
a. Desired
The extent to which customers recognize and are willing to accept variation in service performance is called the _______________.
a.
Acceptable variation
b.
Extent of indifference
c.
Area of acceptability
d.
Area of impartiality
e.
Zone of tolerance
e.
Zone of tolerance
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
b.
More important; narrower
An important influence in desired service expectations is _________________, the customer's underlying generic attitude about the meaning of service and the proper conduct of service providers.
a.
Personal need
b.
Personal service philosophy
c.
Derived service expectations
d.
Perceived service alternative
e.
Situational attitude
b.
Personal service philosophy
QUESTION 6
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 expectations
b.
Personal service philosophy
c.
Derived service expectation
d.
Cultural service expectation
e.
Situational factors
b.
Personal service philosophy
The factors that influence adequate service expectations are __________ in nature and fluctuate __________ than the factors that influence desired service expectations.
a.
Long-term; less
b.
Long-term; more
c.
Short-term, less
d.
Short-term, more
d.
Short-term, more
John's flight on United Airlines from Chicago to San Francisco departed 2 hours late because of a snowstorm in Chicago. The snowstorm that delayed John's flight is a(n):
a.
Personal influence factor
b.
Spontaneous negative
c.
Predictable service influence
d.
Uncontrollable situational factor
e.
Temporary personal need hindrance
d.
Uncontrollable situational factor
One factor that influences adequate service is _____________, the level of service that customers believe they are likely to get.
a.
Predicted service
b.
Forecasted intensity
c.
Evoked service
d.
Ego-oriented service
e.
The service paradigm
a.
Predicted service
Karen owns a cottage on Martha's Vineyard, a popular island destination for tourists from about April to October. When Karen visits the island in March to dine at her favorite pizza restaurant, she expects great service because the tourists are not there. Because she predicts she will receive great service, her ____________ than it is during tourist season.
a.
Level of desired service will be higher
b.
Tolerance of situational factors will be higher
c.
Level of adequate service will be higher
d.
Zone of tolerance will be wider
e.
Level of adequate service will be lower
c.
Level of adequate service will be higher
Which of the following statements about customer satisfaction and service quality is true?
a.
Customer satisfaction is a focused evaluation that reflects the customer's perception of specific dimensions of service like reliability and responsiveness.
b.
Service quality is more inclusive than customer service.
c.
It is correct to use the terms customer service and service quality interchangeably
d.
Customer satisfaction is influenced by perceptions of service quality.
e.
None of the above statements about customer satisfaction and service quality is true.
d.
Customer satisfaction is influenced by perceptions of service quality
Raul took his dog Buffy to dog training school to stop Buffy from barking. As soon as the dog returned home, she started her same pattern of barking. Raul was highly critical of the trainers for not teaching Buffy not to bark even though he had not continued the reinforcement technique he was supposed to use to encourage Buffy's good behavior. Raul's customer satisfaction was adversely affected by:
a.
Poor service quality
b.
His perception of service quality
c.
His emotional state
d.
His attribution for service failure
e.
His perception of equity
d.
His attribution for service failure
When customers have been surprised by a service outcome that is much better or worse than expected, they tend to look for reasons and their assessments of the reasons can influence their satisfaction. These perceived causes of service success or failure are known as:
a.
Blame states
b.
Fairness assessments
c.
Perceived disadvantages
d.
Service advantages
e.
Service attributions
e.
Service attributions
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
a.
Reliability
____________ has consistently proven to be the most important determinant of service quality.
a . Reliability
b. Responsiveness
c. Assurance
d. Empathy
e. Tangibility
a . Reliability
The ________ dimension of service quality refers to the willingness to help customers and provide prompt service.
a.
Reliability
b.
Responsiveness
c.
Assurance
d.
Empathy
e.
Tangibles
b.
Responsiveness
The growth of e-tailing has led to the identification of four core dimensions that consumers use to evaluate Web sites at which they experience no questions or problems. They are:
a.
Efficiency, fulfillment, system availability, and privacy
b.
Responsiveness, reliability, assurance, and empathy
c.
Context, content, community, and connectivity
d.
Content, reliability, privacy, and download speed
e.
Efficiency, effectiveness, maneuverability, and attractiveness
a.
Efficiency, fulfillment, system availability, and privacy
In the first stage in the service marketing research process, the researcher:
a.
Implements the research program
b.
Reports his or her findings
c.
Defines the problem and research objectives
d.
Collects and tabulates data
e.
Develops a services measurement strategy
c.
Defines the problem and research objectives
The health industry in the U.S. is an $840 trillion business. Adam.com is trying to cash in on some of that money by providing an Internet service that will help hospitals answer their patients' health-related questions. Every year, Adam.com does an informal survey of its customers. It use open-ended questions to determine what people like and dislike about its service. Adam.com is conducting ___________ research.
a. Qualitative
b. Functional
c. Inferential
d. Secondary
e. Quantitative
a. Qualitative
All of the following are among the criteria for an effective service research program EXCEPT:
a. Includes perceptions and expectations
b. Includes measures of loyalty or behavioral intentions
c. Measures priorities or importance
d. Considers only qualitative research
e. Occurs with appropriate frequency
d. Considers only qualitative research
Clark participated in a research study conducted by Red Lobster restaurants in which he was asked to provide a verbatim story about a satisfying and dissatisfying service encounter he had at Red Lobster. Which of the following types of research studies did Clark participate in?
a.
Complaint solicitation
b.
Critical incidents studies
c.
Relationship surveys
d.
Trailer calls
e.
Customer panels
b.
Critical incidents studies
Which of the following statements about relationship surveys is true?
a.
Relationship surveys are not statistically valid even though they are very useful to service providers.
b.
Relationship surveys should be conducted weekly.
c.
SERVQUAL is a type of relationship survey.
d.
With relationship surveys, the same respondents should be used each time the survey is administered.
e.
To be reliable and valid, the relationship survey should be administered to all of the service provider's customers.
c.
SERVQUAL is a type of relationship survey.
PSE&G, a utility company located in New Jersey, is conducting a service marketing research study to assess its service performance. It will measure the gaps between consumer expectations and perceptions along the five dimensions of service quality. Which of the following types of research should PSE&G use?
a.
Critical incident studies
b.
Requirements research
c.
SERVQUAL surveys
d.
Trailer calls
e.
Customer panels
c.
SERVQUAL surveys
The Canfields want to landscape their five-acre yard. The couple plans an herb garden in back that will lead to an English cottage garden. In the west side yard, they are planning on a Japanese garden and a rose garden will be located in the east side yard. They have hired a landscaper to draw the design and to do the actual planning. The Canfields want input on the landscaping. They have asked the landscaper to set up several points where they can give their inputs, correct anything they do not like and make changes before the plan is finalized. Most landscapers would be bothered with this seeming interference, but the landscaper the Canfields chose has used this method for years as a way to measure his company's customer service performance. The landscaper is using a method of gathering customer information most similar to which of the following methods?
a.
Trailer calls
b.
Market-oriented ethnography
c.
Process checkpoint evaluations
d.
Requirements research
e.
Critical incidents studies
c.
Process checkpoint evaluations
___________ marketing focuses on keeping and improving current customers, rather than concentrating on acquiring new customers.
a.
Transaction
b.
Expansion
c.
Relationship
d.
Strategic
e.
Benefit
c.
Relationship
WedSafe is the name of a company that provides wedding insurance. For example, in the event that a wedding is called off, the couple can insure themselves against loss of their nonrefundable deposits. If WedSafe's primary marketing effort is to make engaged couples aware of its services, the company is in which stage of the customer relationship evolution?
a.
Acquaintances
b.
Leads
c.
Strangers
d.
Allies
e.
Friends
c.
Strangers
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
a.
Customers as acquaintances; customers as friends
Beyond the specific inherent benefits of receiving service value, customers also benefit in other ways from long-term associations with firms. The three types of relational benefits for customers are:
a.
Confidence benefits; economic benefits; behavior benefits
b.
Management benefits; confidence benefits; economic benefits
c.
Confidence benefits, social benefits, special treatment benefits
d.
Confidence benefits; special treatment benefits; economic benefits
e.
Social benefits; management benefits; behavior benefits
c.
Confidence benefits, social benefits, special treatment benefits
Which of the following is one of the ways an organization benefits from maintaining and developing a loyal customer base?
a.
Employee retention
b.
Customers' increasing expectations of more personalized service
c.
A reactive market-growth strategy
d.
The ability to engage in guerilla marketing
e.
Competitor entrenchment
a.
Employee retention
Since service companies have found that customer differ in their relationship value and that it may be neither practical nor profitable to meet or exceed all customers' expectations, they have divided their target markets according to:
a.
Current and/ or future profitability
b.
Behavior
c.
Usage
d.
Volume
e.
User characteristics
a.
Current and/ or future profitability
The development of strong customer relationships is strongly influenced by:
a.
Legal barriers to loyalty programs
b.
The composition of the buying center
c.
Barriers the customer faces in leaving a relationship
d.
Differences in organizational cultures
e.
All of the above
c.
Barriers the customer faces in leaving a relationship
____________ arise(s) when the customer is required to pay a penalty to switch providers.
a.
Fixed costs
b.
Legal inertia
c.
Financial inertia
d.
Contractual costs
e.
Opportunity costs
d.
Contractual costs
Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Marriott is using __________ to implement its retention strategy.
a.
Financial bonds
b.
Social bonds
c.
Customization bonds
d.
Structural bonds
e.
Security bonds
a.
Financial bonds
Aramark is a food service company that supplies meals to more than 200,000 hospital patients daily. To improve its service, it created a database that tracks patient preferences individually by hospitals, regionally and nationally. The accumulated database is used to provide better menus. Aramark's kitchen staffs deliver the food and are referred to as hosts. All hosts have a minimum of 40 hours of training to teach them how to be courteous, efficient, and quick. These trained hosts deliver customized meals from carts preloaded according to room number. According to patient surveys, Aramark has boosted patient satisfaction by almost 10 percent by providing customized meals. Aramark is using ___________ in its customer retention strategy.
a.
Financial bonds
b.
Social bonds
c.
Customization bonds
d.
Structural bonds
e.
Heterogeneity
d.
Structural bonds
____________ refers to the actions taken by an organization in response to a service failure.
a.
Service recovery
b.
Service paradox
c.
Service inconsistency
d.
Outcome fairness
e.
Procedural recovery
a.
Service recovery
The _____________ suggests an initially disappointed customer who has experienced good service recovery might be even more satisfied and loyal as a result.
a.
Baker's dozen paradigm
b.
Service recovery paradox
c.
Halo effect
d.
Service dilemma
e.
Service quandary
b.
Service recovery paradox
A person who is a(n) ____________ is a type of complainer who is unlikely to say anything to the service provider. This type of complainer often doubts the effectiveness of complaining because of a belief that the consequences will not merit the time and effort they will expand complaining.
a.
Irate
b.
Passive
c.
Aggressive
d.
Activist
e.
Voicer
b.
Passive
___________ 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
c.
Interactional fairness
Bruce was driving to work yesterday when he was nearly run off the road by a speeding furniture delivery truck. On the back of the truck was a phone number to call if you believed the driver was not handling the truck safely. Rather than deciding to never buy furniture from this furniture company, Bruce called the company and complained about the truck driver. The person who took his call thanked Bruce for his concern, apologized for the driver and promised to reprimand him. Which service recovery strategy was the furniture store using?
a.
Make the service fail safe
b.
Learn from lost customers
c.
Use procedural fairness
d.
Encourage and track complaints
e.
Treat customers proactively
d.
Encourage and track complaints
When its sales were declining, Canadian Airline conducted a marketing survey to understand the expectations of the business traveler, its target market. It learned business travelers resent that they are bosses in their own offices but are totally controlled by the whims of the airlines when they travel. If Canadian Airline had only surveyed former customers who were still in their database, it would have used which service recovery strategy?
a.
Critical incident
b.
Make the service fail safe
c.
Welcome and encourage complaints
d.
Learn from lost customers
e.
Customer empowerment
d.
Learn from lost customers
When is a service guarantee inappropriate?
a.
When prices for the service are high
b.
When negative impact of unsolved problems is high
c.
When service quality is truly uncontrollable
d.
When company has a poor image for service quality
e.
When company depends on frequent customer purchases
c.
When service quality is truly uncontrollable