Deck 13: Services: the Intangible Product

Question 1

When managers understand what their service providers are facing on a day-to-day basis by directly observing them and talking to customers, it is called "management by walking around."

Answer 1

True

Question 2

All products and services are intangible.

Answer 2

False

Question 3

The building blocks of service quality are reliability, responsiveness, assurance, empathy, and tangibles.

Answer 3

True

Question 4

Firms can attempt to close the knowledge gap by setting appropriate service standards.

Question 5

The communications gap can be reduced by managing customer expectations.

Question 6

The Service Gaps Model encourages the systematic examination of all aspects of the product creation process.

Question 7

MaryAnne was employee of the month at Jimmy John's, primarily because she provided excellent customer service by serving food quickly. This relates to the reliability service dimension.

Question 8

Namaste Hotels is known for its immaculate lobbies and rooms that always appear brand new for every guest. This relates to the service dimension of tangibles.

Question 9

The marketing of services is identical to the marketing of products.

Question 10

A delivery gap is the difference between the firm's service standards and the actual service it provides to customers.

Question 11

In the marketing of services, empowerment means allowing employees to make decisions about how service is provided to customers.

Question 12

Firms that primarily sell products view service as a method to maintain a sustainable competitive advantage.

Question 13

Services are considered heterogenous which means they cannot be stored for use in the future.

Question 14

Procedural fairness pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss).

Question 15

The zone of tolerance refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service.

Question 16

When Union Savings Bank required all customers to use its online banking services, over 20 percent of its customers closed their accounts. In this scenario, Union Savings Bank's service fell outside customers' zone of tolerance.

Question 17

In training service providers, service quality goals should be generalized to allow for the various needs of consumers.

Question 18

Listening to the customer is the first step in service recovery.

Question 19

While Jessica would have liked to have cash back, she felt the customer service representative was fair when she allowed Jessica to return the shirt for store credit. This demonstrates the idea of procedural fairness.

Question 20

A delivery gap implies a service failure.

Question 21

The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use ________ to overcome the problem of inseparability of services.

A)promotional discounts
B)zone of tolerance allowances
C)perishability gap analysis
D)point-of-purchase displays
E)satisfaction guarantees

Question 22

One approach marketers are using to reduce service ________ is to replace people with machines whenever appropriate.

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

Question 23

What refers to the variability in a service's quality?

A)heterogeneity
B)perishability
C)service gap
D)delivery gap
E)communications gap

Question 24

When marketers state that services are ________, they are referring to the fact that services cannot be stored for use in the future.

A)intangible
B)inseparable
C)heterogeneous
D)durable
E)perishable

Question 25

By providing good customer service, firms ________ their products.

A)eliminate the communication gap for
B)add value to
C)reduce the assurance for
D)create the empowerment cost associated with
E)increase the perishability of

Question 26

Medical services and assisted living care are examples of

A)services shifted abroad because costs are lower in developing countries.
B)services an aging population will increase the demand for.
C)household maintenance activities that people increasingly pay others to perform.
D)the price elasticity effect on services demand.
E)the ability of empowerment to create tangible service products.

Question 27

Along the service-product continuum, which one of these would be considered the most service dominant?

A)grocery store
B)apparel specialty store
C)doctor's office
D)bookstore
E)restaurant

Question 28

When marketers state that services are ________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another.

A)intangible
B)inseparable
C)heterogeneous
D)perishable
E)viable

Question 29

Along the service-product continuum, which one of these would be considered the most product dominant?

A)grocery store
B)auto repair shop
C)doctor's office
D)cell phone service provider
E)restaurant

Question 30

Marketers can take advantage of the variable nature of services by

A)merging services with products.
B)customizing services to meet customers' needs exactly.
C)offering to expedite intangibles.
D)expanding the standards gap.
E)using strict standardization.

Question 31

When marketers say that services are ________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can.

A)intangible
B)inseparable
C)heterogeneous
D)perishable
E)replenishable

Question 32

Max relocated to take a new job. He immediately got sick and went to a doctor close to where he lived. During his exam, the doctor was impatient and demonstrated a poor bedside manner. Max wished that he could have requested a different doctor in that moment, but it was too late. Max's experience exemplifies which key difference in services?

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

Question 33

Rachel had several unpleasant experiences trying to find the merchandise she needed at a large home improvement store. The employees-when she could find them-rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get information quickly and accurately. The store had found a technological solution to the services marketing issue of

A)intangibility.
B)part-time employees.
C)perishability.
D)inseparability.
E)heterogeneity.

Question 34

When marketers state that services are ________, they are referring to the fact that services are produced and consumed at the same time.

A)intangible
B)inseparable
C)heterogeneous
D)perishable
E)peripheral

Question 35

Sometimes all that needs to be done to satisfy a customer complaint is to listen to the customer.

Question 36

The policy at André's Hair Salon is "You are only as good as the last satisfied client you served." Which aspect of service does this reflect?

A)intangible
B)perishable
C)heterogeneous
D)portable
E)viable

Question 37

How has the dependence on services changed in the U.S. economy?

A)Services do not play as a large a role in the U.S. economy today compared to ten years ago.
B)Services and products represent equal percentages of the U.S. gross domestic product.
C)Services continue to play a minor role in the U.S. economy.
D)Services are not considered a component of the U.S. gross domestic product.
E)Today, services account for a higher percentage of the GDP than in previous decades.

Question 38

SouthEast Eye Care is finding it difficult to distinguish itself from the competition since their services aren't something they can describe in terms of touch or taste. Which aspect of service is causing difficulty for the company?

A)heterogeneous
B)inseparable
C)intangible
D)perishable
E)substantial

Question 39

Food preparation, lawn maintenance, and house cleaning services are all examples of

A)services shifted abroad because costs are lower in developing countries.
B)services an aging population will decrease the demand for.
C)household maintenance activities that people increasingly pay others to perform.
D)the price elasticity effect on services demand.
E)the ability of empowerment to create tangible service products.

Question 40

Margo isn't sure how to market her health care consultation services because they aren't something a customer can touch, taste, or see. Which aspect of services is Margo concerned with?

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

Question 41

The ________ gap can be closed by getting employees to meet or exceed service standards when the service is being delivered by empowering service providers, providing support and incentives, and using technology where appropriate.

A)communications
B)knowledge
C)standards
D)delivery
E)acceptance

Question 42

The Service Gaps Model is designed to highlight those areas where

A)service providers provide the best possible service.
B)manufacturers are cutting corners on product quality.
C)customers believe they are getting lower quality service than they should.
D)service providers know more than their customers.
E)delivered service exceeds expected service.

Question 43

Table One is considered the best Italian restaurant in town. With its elegant dining area, extensive wine list, and gourmet chef, residents wait months to get into the restaurant. Last Friday, Roger took a large group to Table One and almost every diner sent their entrée back to the kitchen. Table One was experiencing a(n)________ gap in service quality.

A)knowledge
B)communication
C)standards
D)delivery
E)empowerment

Question 44

For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a ________ gap in services marketing.

A)seniority
B)knowledge
C)standards
D)delivery
E)communication

Question 45

Firms can close the ________ gap by matching customer expectations with actual service through use of marketing metrics.

A)seniority
B)knowledge
C)standards
D)delivery
E)communication

Question 46

When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a ________ gap.

A)knowledge
B)standards
C)social expectations
D)delivery
E)communications

Question 47

By setting appropriate service standards and measuring service performance, firms can attempt to close a ________ gap.

A)seniority
B)knowledge
C)standards
D)delivery
E)communication

Question 48

The old cliché "Service with a smile" recognizes the fact that

A)service providers need to be pleasant even if the customer is not.
B)smiling is contagious.
C)service providers should smile and not think.
D)life is too short to be ugly.
E)services are perishable but a smile is forever.

Question 49

A ________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations.

A)seniority
B)knowledge
C)standards
D)delivery
E)communication

Question 50

The customers at Monica's pastry shop want to grab a quick breakfast before boarding an airplane. The sign on the counter promises "Quick In-and-Out Service," and usually Monica's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Monica's shop is suffering from a ________ gap.

A)knowledge
B)standards
C)social expectations
D)delivery
E)communications

Question 51

Because services like airline flights and movies at the theater are ________, many marketers attempt to match demand with supply using pricing strategies.

A)intangible
B)inseparable
C)heterogeneous
D)perishable
E)accountable

Question 52

Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by

A)empowering consumers.
B)providing support and incentives for their employees.
C)directing zone of tolerance limits for employees.
D)doing effective customer screening.
E)forcing rude customers to use technology.

Question 53

If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a ________ gap exists.

A)seniority
B)knowledge
C)standards
D)delivery
E)communication

Question 54

Gina booked a room at the Whispering Sands Resort because, as advertised on its website, she expected to check in at 11:00 am, the swimming pool would be heated, the talent in the dining area would be able to sing, and the breakfast would be fresh. When she arrived, she had to wait for her room, found the swimming pool to be 50 degrees, realized the singer could not carry a tune, and the free continental breakfast was stale. The Whispering Sands Resort was experiencing a severe ________ gap.

A)communications
B)knowledge
C)standards
D)delivery
E)expectations

Question 55

Pete's marketing research returned the finding that customers were staying away from his coffee shop because of a lack of services like gift cards, seasonal selections, and special orders. Pete was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." Pete is likely suffering from a(n)________ gap.

A)knowledge
B)standards
C)ethics
D)delivery
E)communications

Question 56

Because services like cruises and car rentals are perishable, many marketers use

A)pricing strategies to match supply with demand.
B)service quality to extend the life of the product.
C)incentives to encourage staff to deliver according to standards.
D)training to standardize delivery.
E)machines to replace people for standard transactions.

Question 57

Katrine manages a Sleepy Night Inn. She knows from experience that last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Katrine has empowered her staff to offer discounts when the motel is largely vacant, and to quote the standard price when the motel is close to full. She knows her service is ________, meaning that if no one stays in the room, it generates no revenue that evening.

A)intangible
B)inseparable
C)heterogeneous
D)durable
E)perishable

Question 58

A(n)________ gap exists when a firm knows what it needs to do to meet customers' service expectations, but sometimes fails to do it.

A)knowledge
B)communication
C)standards
D)empowerment
E)delivery

Question 59

When the delivery of a service fails to meet customers' expectations, a ________ gap exists.

A)service
B)knowledge
C)standards
D)production
E)procedural

Question 60

Carmine manages an upscale Italian restaurant in New York City. His restaurant offers a few specials each evening in addition to its regular menu. Carmine has trained his servers to report comments and requests for items that have previously been offered only as specials. Carmine would use this information to reduce the ________ gap in services marketing.

A)seniority
B)knowledge
C)standards
D)delivery
E)communication

Question 61

The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. The hotel has been updating rooms built in the early part of the 20th century to meet the needs of 21st-century visitors. To accomplish this, it spent millions in improvements, renovating rooms, and adding a new outdoor pool complex. These renovations focus on the ________ service characteristic.

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

Question 62

A systematic ________ program collects customer inputs and integrates them into managerial decisions.

A)quality gap analysis
B)empowerment
C)zone of tolerance
D)standards analysis
E)voice-of-customer

Question 63

Yum Yum Ice Cream Shoppe provides each employee with a clean, sharp-looking uniform. It also instructs employees to keep the work area neat, tidy, and uncluttered. Yum Yum Ice Cream Shoppe emphasizes ________ in the five service quality dimensions.

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

Question 64

Which service gap is the Hotel Arista trying to address when it takes time and spends up to $1,700 to train a new employee?

A)standards gap
B)knowledge gap
C)performance gap
D)communication gap
E)recovery gap

Question 65

Today, almost every sales rep can immediately check the company's inventory and production schedule electronically. This allows sales reps to sell what is available and make promises to customers that they can keep. This technology has improved service delivery through

A)access to a wide variety of services.
B)greater control by customers over service delivery.
C)increased zone of tolerance.
D)greater ability to obtain information.
E)saving customers time.

Question 66

The ________ gap can be reduced by managing consumers' expectations and promising only what can be delivered or possibly even a little less.

A)knowledge
B)communication
C)delivery
D)standards
E)empowerment

Question 67

The service dimension called ________ refers to the ability of the firm's employees to convey trust and confidence.

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

Question 68

To meet or exceed customers' expectations, marketers must

A)know where customers live.
B)know how often consumers buy their products.
C)determine what those expectations are.
D)recognize that expectations are tangible.
E)empower customers to meet their own expectations.

Question 69

Bryan has been directed by his boss to determine if the company is meeting customers' service quality expectations. One of Bryan's problems is that services are ________, making evaluation of service quality difficult.

A)quantifiable
B)substantial
C)unequally distributed
D)intangible
E)indefinable

Question 70

Although firms such as restaurants have difficulty controlling service quality from day to day, they do have control over

A)how they communicate the services they promise.
B)the price of ingredients.
C)the attitudes of customers.
D)the way customers view them compared to competitors.
E)the knowledge gap consumers create.

Question 71

Professor Thompson is a seasoned professor. When students seek her out to advise them, she never turns them away because she believes that with all her years of experience, she can help them. The students, in turn, are confident in her and trust her advice. For these students, ________ is the most important of the five service quality dimensions.

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

Question 72

If a firm promises more than it can deliver,

A)it has created an empowerment gap.
B)consumers will have a knowledge gap.
C)it creates a communication gap.
D)it needs to enact a voice-of-customer program.
E)perishability becomes a problem.

Question 73

The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. Employees are instructed to always address a guest by name, if possible. To accomplish this, employees are trained to listen and observe carefully to determine a guest's name. Which service characteristic is this an example of?

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

Question 74

When choosing where to eat lunch, Sharon looks for restaurants where she will be seated promptly and served her meal quickly. For Sharon, ________ is the most important of the five service quality dimensions.

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

Question 75

US Bank uses a complex polling system coupled with a customer response measurement system to assess consumers' responses to new products and services. US Bank is using a(n)________ program to improve service quality and service offerings.

A)quality gap analysis
B)empowerment
C)zone of tolerance
D)standards analysis
E)voice-of-customer

Question 76

Physicians regularly overstate the expected recovery time from surgery, knowing that managing patients' expectations will reduce the ________ gap associated with their service.

A)knowledge
B)empowerment
C)delivery
D)standards
E)communication

Question 77

Lisa will only let André do her pedicure. She has tried other manicurists, but she knows from experience that André makes her toenails look perfect every time. For Lisa, ________ is the most important of the five service quality dimensions.

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

Question 78

Calvin Hardware was in bad financial shape. It owed so much money that vendors put the store on a cash-only delivery basis. As a result, the store had a dwindling inventory of goods to sell. The owner directed the sales staff to tell any customer asking about an unavailable item that it was on backorder and would be in stock the following week. When customers returned a week later as instructed, the item would still be unavailable. The owner's policy created a(n)________ gap.

A)knowledge
B)empowerment
C)communication
D)standards
E)tangibility

Question 79

Brenda works at a car repair center. On Tuesday she received a call from a distraught long-time customer, Stefan, who needed his car repaired quickly so he could take his son to college. After carefully listening to Stefan, Brenda made sure to address him by name as they worked out a plan. Which aspect of service quality is Brenda using in her response?

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

Question 80

Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call

A)service perceptions.
B)service efforts.
C)service quality.
D)service aspirations.
E)service feedback.