Deck 11: Designing and Managing Services

Question 1

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

Answer 1

B

Question 2

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.

Answer 2

E

Question 3

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 3

B

Question 4

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 5

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 6

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 7

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 8

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

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

Question 9

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 10

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 11

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 12

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 13

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 14

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

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

Question 15

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 16

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

Question 17

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 18

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 19

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 20

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 21

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 22

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 23

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 24

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 25

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 26

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 27

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 28

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 29

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 30

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 31

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 32

________ 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 33

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 34

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 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

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 37

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 38

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 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 39

________ 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 40

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 much 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 41

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 42

Salt is an example of a hybrid.

Question 43

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 44

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 45

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 46

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 47

A service is essentially intangible.

Question 48

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 49

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

Question 50

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 51

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

Question 52

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

Question 53

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 54

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

Question 55

Soap is an example of a pure tangible good.

Question 56

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 57

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 58

The search qualities of a service are the characteristics the buyer can evaluate before purchase.

Question 59

Josh gets his bike serviced at Dean's Garage even though there's another garage much closer 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 60

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 61

The quality of services is independent of who provides them.

Question 62

A product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value is known as the product's activity cost.

Question 63

Services have five distinctive characteristics,one of these being "pure service."

Question 64

A service provider can work with larger groups to get around the limitations of inseparability.

Question 65

External marketing describes the training and motivation required by employees in order to properly serve the customers.

Question 66

If the length of the downtime increases,the cost incurred decreases.

Question 67

List and briefly explain the four distinctive characteristics of services.

Question 68

Service companies try to demonstrate their service qualities through physical evidence and presentation.

Question 69

List three steps that service firms can take to increase quality control over services and reduce variability.

Question 70

List and briefly explain with examples the five categories of service offerings.

Question 71

Credence qualities of a service are difficult to evaluate before purchase,but easy to evaluate after consumption.

Question 72

The service-quality model highlights the main requirements for delivering high service quality.Which are the five gaps that cause unsuccessful delivery?

Question 73

Interactive marketing describes the employees' skill in serving the client.

Question 74

Customers want unbundled services,with separate prices for each service element and the right to select the elements they want.

Question 75

Out-of-pocket costs are what the customer spends on regular maintenance and repair costs.

Question 76

Fingerpainted organizes art camps and craft activities for children.The company has noticed that demand is highest during summer vacations and drops during the year.What can Fingerpainted do to attract customers at other times of year?

Question 77

Intangibility with regards to a service means that the service cannot be duplicated across providers.

Question 78

Clients judge service not only by its technical quality but also by its functional quality.