Deck 13: Designing and Managing Services

Question 1

BRZ Shoes positions itself as a young, adventurous brand. Its logo and brand communication try to give consumers a feeling of excitement and bravery. These ads appeal to the ________ dimension of brand experience.

A) sensory
B) affective
C) behavioral
D) intellectual
E) social

Answer 1

B

Question 2

Which of the following is a characteristic of a service?

A) It is essentially tangible.
B) It does not result in the ownership of anything.
C) Its production is majorly tied to a physical product.
D) Services are typically produced and consumed at different times.
E) A client's presence is not required for rendering a service.

Answer 2

B

Question 3

Which one of the following is highest in search qualities?

A) a play at a theater
B) a meal at a restaurant
C) a haircut
D) psychotherapy
E) a computer

Answer 3

E

Question 4

To which of the following categories of services does a cell phone belong?

A) major service with accompanying minor services
B) major service with accompanying minor goods
C) pure service
D) pure tangible good
E) tangible good with accompanying services

Question 5

Some services require that the client be present to conduct the service. Which of the following is an example of such a service?

A) pest control
B) furniture polishing
C) surgery
D) car repairing
E) tax services

Question 6

Which of the following is an example of a pure tangible good?

A) massage
B) shampoo
C) e-mail
D) restaurant meal
E) air travel

Question 7

Which of the following is an example of a hybrid service?

A) teaching
B) car
C) restaurant meal
D) soap
E) air travel

Question 8

A flight with complementary drinks is an example of a ________.

A) major service with accompanying minor goods and services
B) pure service
C) pure tangible good
D) tangible good with accompanying services
E) hybrid

Question 9

A computer falls into the ________ category of service mix.

A) pure tangible good
B) tangible good with accompanying services
C) hybrid
D) major service with accompanying minor goods
E) pure service

Question 10

________ refer(s)to logos, symbols, characters, and slogans that service providers use in order to make the service and its key benefits more tangible.

A) Brand engagement
B) Brand orientation
C) Brand elements
D) Brand loyalty
E) Brand equity

Question 11

Services high in ________ qualities have characteristics that the buyer can evaluate after purchase.

A) privacy
B) experience
C) credence
D) search
E) stock

Question 12

Which of the following is true for services?

A) All services are people-based, while goods are equipment-based.
B) Service providers can be both for-profit or nonprofit.
C) All service companies follow the same process to deliver their services.
D) The client's presence is a hindrance during the service delivery process.
E) Service providers develop similar marketing programs for personal services and business services.

Question 13

BRZ Shoes targets the youth market with vibrant, visually appealing ads in modern styles. BRZ ads appeal to the ________ dimension of brand experience.

A) sensory
B) affective
C) behavioral
D) intellectual
E) social

Question 14

Services high in ________ are those services that have characteristics the buyer normally finds hard to evaluate even after consumption.

A) trial qualities
B) search qualities
C) experience qualities
D) privacy qualities
E) credence qualities

Question 15

Which of the following is an example of a pure service?

A) air travel
B) psychotherapy
C) baby oil
D) a laptop
E) a restaurant meal

Question 16

Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are bought. This is known as the ________ aspect of services.

A) inseparability
B) intangibility
C) variability
D) perishability
E) heterogeneity

Question 17

A brand that is action-oriented and causes consumers to engage in physical actions appeals to the ________ dimension of brand experience.

A) sensory
B) affective
C) behavioral
D) intellectual
E) social

Question 18

Which of the following will most help service providers overcome the limitation of intangibility of services when positioning itself?

A) using brand symbols
B) sharing services
C) working with larger groups
D) cultivating non-peak demand
E) creating a service blueprint

Question 19

Which one of the following would be considered high in credence qualities?

A) an interior of a house
B) a restaurant
C) a haircut
D) psychotherapy
E) a computer

Question 20

Services high in ________ have characteristics that the buyers can evaluate before purchase.

A) search qualities
B) experience qualities
C) credence qualities
D) privacy qualities
E) storing qualities

Question 21

Which of the following will help a service provider overcome the limits imposed by the inseparability of services?

A) using differential pricing
B) working with larger customer groups
C) providing complementary services
D) concentrating on physical evidence and presentation
E) standardizing the service process

Question 22

Which of the following steps will help service firms to increase their quality control?

A) standardizing the service-performance process
B) providing complementary services to customers
C) giving personnel authority in handling situations
D) adopting differential pricing
E) cultivating nonpeak demand

Question 23

When a theater sells matinee movie tickets at low prices, it aims to shift some demand from the peak to the off-peak period. What is the strategy that the theater is said to be adopting?

A) It is providing complementary services.
B) It is increasing peak-time efficiency.
C) It is using linear pricing.
D) It is using differential pricing.
E) It is sharing services.

Question 24

Cocktail lounges in restaurants are examples of ________.

A) differential pricing
B) cultivating nonpeak demand
C) complementary services
D) reservation systems
E) shared services

Question 25

A travel agency offers weekend discounts for car rentals. What can be deduced from this?

A) It is increasing peak-time efficiency.
B) It is using differential pricing.
C) It is using linear pricing.
D) It is cultivating peak demand.
E) It is providing complementary services.

Question 26

Which of the following is an example of a complementary service?

A) Big department stores usually hire extra staff to handle the rush during the holiday season.
B) The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote minivacation weekends for non-business customers as well.
C) More paramedics are on hand to assist physicians during times when emergency admissions are highest.
D) AXA Bank set up automated teller machines so that its customers could avoid standing in line.
E) Chesterton College hires part-time teachers when enrollment goes up.

Question 27

________ refers to training and motivating employees to serve customers well.

A) External marketing
B) Promotional marketing
C) Direct marketing
D) Internal marketing
E) Interactive marketing

Question 28

Service quality depends on who provides them, when and where, and to whom. Thus, services are highly ________.

A) inseparable
B) tangible
C) variable
D) perishable
E) intangible

Question 29

Which of the following is true regarding services?

A) Services are typically produced, stored, and then consumed.
B) Services are generally low in experience and credence qualities.
C) Service providers develop similar marketing programs for personal services and business services.
D) There is less risk associated with the purchase of services than with the purchase of goods.
E) Provider-client interaction is a special feature of services marketing.

Question 30

________ refers to the normal work of preparing, pricing, distributing, and promoting the service to customers.

A) Interactive marketing
B) Internal marketing
C) External marketing
D) Promotional marketing
E) Direct marketing

Question 31

The fact that services are typically produced and consumed simultaneously is known as the ________ aspect of services.

A) perishability
B) intangibility
C) heterogeneity
D) inseparability
E) variability

Question 32

Customers today want separate prices for each service element and they also want the right to select the elements they want. The customers are said to be pressing for ________.

A) complementary services
B) perishable services
C) variable services
D) unbundled services
E) shared services

Question 33

In order to map out the service process, the points of customer contact, and the evidence of service from the customer's point of view, service firms should develop a ________.

A) marketing plan
B) service floor plan
C) Gantt chart
D) business plan
E) service blueprint

Question 34

Jake had an appointment at the doctor's, but couldn't make it on time because he was caught in traffic. By the time he reached the doctor's office, the doctor had already begun with the next patient. This illustrates the ________ of services.

A) variability
B) heterogeneity
C) perishability
D) intangibility
E) homogeneity

Question 35

________ describes the employees' skill in serving the client.

A) External marketing
B) Internal marketing
C) Promotional marketing
D) Direct marketing
E) Interactive marketing

Question 36

Walmart has decided to hire extra clerks during the holiday season. It is said to be ________.

A) matching its supply with the existing demand
B) generating non-peak demand
C) increasing its customer participation
D) sharing its services
E) facilitating for its future expansion

Question 37

Often, a service problem arises from a customer's lack of understanding or ineptitude. Which of the following can help to minimize customer failures?

A) giving customers exclusive primary service packages
B) redesigning processes to simplify service encounters
C) using differential pricing and shared services
D) minimizing service intangibility
E) working with more customers at the same time

Question 38

In which of the following cases is a service provider trying to increase non-peak demand?

A) A fine dining restaurant is promoting a breakfast service in addition to its popular lunch and dinner options.
B) An upscale restaurant has a cocktail lounge where customers can wait until a table is ready.
C) AXA Bank set up automated teller machines so that its customers could avoid standing in line.
D) Chesterton College hired part-time teachers as enrollment increased significantly.
E) Big department stores usually hire extra staff to handle the rush during the holiday season.

Question 39

The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote minivacation weekends for non-business customers as well. What is the Caesar Park Hotel trying to do?

A) It is implementing premium pricing.
B) It is trying to cultivate nonpeak demand.
C) It is promoting complementary services.
D) It is putting reservation systems in place.
E) It is implementing differential pricing.

Question 40

Kaya, a chain of skin clinics, requests each new visitor to fill up their own details on a printed form. This is a step in ________.

A) increasing its peak-time efficiency
B) creating nonpeak demand
C) increasing consumer participation
D) sharing its services
E) facilitating its future expansions

Question 41

Customers who view a service as homogeneous ________.

A) only patronize a preferred service provider
B) judge services on the basis of the providers
C) care less about the provider than about the price
D) pick a service provider based on functional attributes
E) opt for the service with the highest price, irrespective of quality

Question 42

In which of the following does a customer respond to the functional quality of a service?

A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.
B) Kathy tries out a new restaurant every week, because she likes to experience the variety.
C) Bill has gone to the same chiropractor for the past fifteen years, because he is friendly and takes the time to listen to Bill.
D) Ray's mechanic charges high prices for service, but his work is good and worth the price.
E) Alex has no interest in theater, but goes often because her best friend loves plays.

Question 43

Firms have decided to raise fees and lower service for those customers who barely pay their way and to coddle big spenders to retain their patronage as long as possible. This is an example of organizing customers by ________.

A) retailer convenience
B) profit tiers
C) psychographic characteristics
D) social influence
E) customer preference

Question 44

When Aaron went to his doctor for his annual checkup, he was asked to undergo a number of tests. Although the doctor assured Aaron that the tests were routine, Aaron thinks that the doctor is hiding a grave problem from him. What kind of a gap is apparent here?

A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception

Question 45

The customer service representatives at a call center have been asked to handle each call in not more than five minutes. At the same time, they have been asked to answer all customer queries in detail and provide appropriate solutions. What kind of service gap is apparent here?

A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception

Question 46

The most important determinant of service quality is ________ which refers to the ability to perform the promised service dependably and accurately.

A) empathy
B) assurance
C) responsiveness
D) reliability
E) tangibles

Question 47

Charles Schwab's best customers are instantly directed to customer service representatives, while other customers have to wait longer. Charles Schwab is trying to ________.

A) monitor its service systems
B) empower the customers
C) retain the patronage of profitable customers
D) increase consumer participation
E) standardize the service-performance process

Question 48

Which of the following is an example of a gap between service delivery and external communications?

A) The employees at GBL have been asked to take time to listen to customers, but they must serve them fast as well.
B) Amanda chose to shop at Alison's Fashions because the store's website offered on-the-spot alterations. However, when she did buy a dress, she had to wait a week to get it altered.
C) Customers at LUX appreciate the personalized services the salespeople offer, but do not like the store design.
D) Clearwater Spa attendants are well-trained in massage therapy and the services they offer, but customers rarely return because they don't like the attendants' impersonal service.
E) When sales dropped, Styx modernized its stores in order to retain customers, but didn't realize that the product quality was the main problem.

Question 49

Angela switched to a new hair stylist after getting a bad haircut from her previous stylist. This is an example of which of the following factors leading to customer switching behavior?

A) service encounter failure
B) core service failure
C) response to service failure
D) involuntary switching
E) competition

Question 50

The ________ rates the various elements of the service bundle and identifies required actions.

A) company performance analysis
B) voice of customer measurement
C) customer factor measurement
D) importance-performance analysis
E) customer importance analysis

Question 51

Belling Hotels provides complimentary breakfast buffets to all its guests. This is an example of a ________.

A) primary service package
B) service interface
C) service support
D) service frequency
E) secondary service feature

Question 52

The customer service representatives at G.K.'s customer service center must know as much about the products as possible, so that they can help the customers solve their difficulties without sounding hesitant or unsure of themselves. Which of the following determinants of service quality are they being asked to demonstrate?

A) responsiveness
B) assurance
C) empathy
D) reliability
E) tangibility

Question 53

The customer service representatives at a call center have been asked to handle each call in not more than five minutes. A recent customer survey by the company revealed that customers appreciate it when employees take the time to answer their questions fully and listen to their grievances. What kind of service gap is apparent here?

A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception

Question 54

MGC Inc. organizes a company-wide picnic once a year. The organizers arranged for the best possible menu thinking that food would be a priority, but the staff were disappointed because the activities were very poorly planned. What kind of a gap is apparent here?

A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception

Question 55

In which of the following does a customer respond to the technical quality of a service?

A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.
B) Kathy tries out a new restaurant every week, because she likes to experience the variety.
C) Bill has gone to the same chiropractor for the past fifteen years, because he is friendly and takes the time to listen to Bill.
D) Ray avoids going to the bank as far as possible because the manager is rude and unhelpful.
E) Alex has no interest in theater, but goes often because her best friend loves plays.

Question 56

Although Brenda previously used the U.S. Postal Service because it offered better prices on package shipping, she now uses only FedEx, because it gives her the facility of shipping from any FedEx Kinkos location 24 hours a day. Which of the following factors led to Brenda's customer switching behavior?

A) inconvenience
B) pricing
C) response to service failure
D) ethical problems
E) involuntary switching

Question 57

Which of the following is an example of a gap between management perception and the service-quality specifications?

A) The college brochure showed state-of-the-art classrooms, but when the visitors walked in, they saw peeling walls and dull lighting.
B) A nurse visits a patient to show care, but the patient interprets this as an indication that something is very wrong.
C) The hotel administrators think that guests want better food, but guests are more concerned with the courtesy of the waiters.
D) A service center manager has asked his subordinates to provide fast service, but has not specified a time for the service to be performed.
E) Customer service representatives are asked to give ample time to each customer, but must serve a minimum of 50 customers a day.

Question 58

Ellen came across an ad for a new restaurant which promised authentic French cuisine. When she ate there, however, she was disappointed to find that the food was mediocre and not very authentic. Which of the following gaps of service performance does this demonstrate?

A) gap between service-quality specifications and service delivery
B) gap between perceived service and expected service
C) gap between service delivery and external communications
D) gap between consumer expectation and management perception
E) gap between management perception and service-quality specification

Question 59

Dean recently had a BRZ broadband connection installed. However, the connection was bad and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. Dean switched to Blue Broadband. Which of the following was the cause of Dean's switching behavior?

A) involuntary switching
B) competition
C) response to service failure
D) service encounter failures
E) inconvenience

Question 60

Susanna wanted to check out a new salon in her locality, so she decided to go for a hair styling session. She was very happy with the way her stylist connected and related with her concerns. She is judging the service based on its ________.

A) promotional marketing
B) functional quality
C) technical quality
D) search qualities
E) external marketing

Question 61

Expensive equipment manufacturers not only install the equipment but also train the staff and undertake the maintenance and repair activities of the equipment. By doing so, they are providing ________.

A) payment equity
B) value-augmenting services
C) differential pricing
D) facilitating services
E) a primary service package

Question 62

Soap is an example of a pure tangible good.

Question 63

The zone of ________ is a range where a service dimension is deemed satisfactory, anchored by the minimum level consumers are willing to accept and the level they believe can and should be delivered.

A) immunity
B) tolerance
C) reliability
D) assurance
E) flexibility

Question 64

Leo's manager has asked him and his teammates to demonstrate caring towards customers. They are instructed to learn the customers' names, and use the customers' names while interacting with them. Repeat customers should get special attention, and the team members should remember their preferences and habits. The manager is asking the team to be ________.

A) assuring
B) candid
C) empathetic
D) reliable
E) responsive

Question 65

According to the dynamic process model, two different types of expectations have opposite effects on perceptions of service quality. One of these is that ________.

A) increasing customer expectations of what the firm will deliver improve the perceptions of overall service quality
B) increasing customer expectations of what the firm will deliver decrease the perceptions of overall service quality
C) decreasing customer expectations of what the firm should deliver decrease the perceptions of overall service quality
D) decreasing customer expectations of what the firm will deliver improve the perceptions of overall service quality
E) increasing customer expectations of what the firm should deliver improve the perceptions of overall service quality

Question 66

A service results in ownership on the part of the client.

Question 67

Josh gets his bike serviced at Dean's Garage even though there's another garage much closer to home. He prefers Dean's because the work is usually done quickly and the staff try to solve the issues with the bike as soon as possible. Dean's Garage excels at which of the following five determinants of service quality?

A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles

Question 68

When customers calculate the perceived economic benefits of a continuously provided service in relationship to the economic costs, they are gauging the ________.

A) private equity
B) brand equity
C) payment equity
D) customer-service equity
E) product-service equity

Question 69

The product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________.

A) service warranty cost
B) out-of-pocket cost
C) life-cycle cost
D) facilitating services cost
E) value-augmentation cost

Question 70

Salt is an example of a hybrid.

Question 71

Regular maintenance and repair costs are known as ________.

A) service contract costs
B) out-of-pocket costs
C) fixed costs
D) facilitating services costs
E) value-augmentation costs

Question 72

The private non-profit sector is a provider of services.

Question 73

A service is essentially intangible.

Question 74

A ________ refers to any place at which a company seeks to manage a relationship with a customer, whether through people, technology, or some combination of the two.

A) customer-service interface
B) product-customer interface
C) tangible user interface
D) attentive user interface
E) crossing-based interface

Question 75

When Johnson Controls reached beyond its climate control equipment and components business to manage integrated facilities by offering products and services that optimize energy use, it was said to be providing ________.

A) facilitating services
B) a primary service package
C) value-augmenting services
D) service contracts
E) service warranties

Question 76

The production of a service is never tied to a physical product.

Question 77

Gloria goes to the same bagel shop every morning because the workers there remember her name and know her order. They always make her feel welcome. The employees of this bagel shop excel at which of the following determinants of service quality?

A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles

Question 78

When sellers agree to provide free maintenance and repair services for a specified period of time at a specified contract price, they are offering ________.

A) a complementary service
B) payment equity
C) a service blueprint
D) differential pricing
E) an extended warranty

Question 79

A hybrid consists of unequal parts of goods and services, with services being in the majority.

Question 80

The ________ determinant of service quality refers to the knowledge and courtesy of employees and their ability to convey trust and confidence in the service they provide.

A) conscientious
B) assurance
C) empathy
D) reliability
E) responsiveness