Deck 10: Service as the Core Offering

Question 1

Employees play a critical role in the success of services because of their inseparability and variability.

Answer 1

TRUE

Question 2

A service is a product in the sense that it represents a bundle of benefits that can satisfy customer wants and needs with physical form.

Answer 2

FALSE

Question 3

Services possess several distinct characteristics that are different from those of physical goods, including intangibility, inseparability, variability, and perishability.

Answer 3

TRUE

Question 4

In today's workplace, everyone is involved in service in some way, and everyone has customers either outside or inside the firm, or both.

Question 5

As noted in the text, Caesars Entertainment has found that its ROI for customers in the "Zone of Defection" is considerably higher than in the other zones.

Question 6

Customer trial is one way to overcome the problem of marketing an intangible service.

Question 7

Services tend to exhibit high experience and credence attributes.

Question 8

When Dominoes promises delivery within 30 minutes, but it actually takes 45 minutes, Dominoes is demonstrating gap 1: management's perceptions of customer service expectations versus actual customer expectations of service.

Question 9

Exceeding customer expectations is often referred to as customer delight.

Question 10

The ability to provide prompt service and to respond quickly to customer requests is called reliability.

Question 11

Providers of professional services such as doctors, lawyers, and accountants use their degrees and designations to convey a level of trust to a purchaser.

Question 12

Research indicates that investing in indifferent customers to improve their satisfaction truly maximizes their profitability to a brand.

Question 13

A service-centered perspective is very consistent with a customer-centric approach in which people, processes, systems, and other resources are to be aligned to best serve customers.

Question 14

The ultimate Caesars customer is the "apostle"; they are highly satisfied, fiercely loyal, frequent Caesars guests who serve as strong advocates for the Caesars experience to friends and acquaintances.

Question 15

One of the causes of switching behavior is unfair pricing.

Question 16

A fundamental rule in marketing is to set high customer expectations.

Question 17

It is widely accepted that today we operate in an economy that is increasingly focused on tangible offerings-goods-instead of just services.

Question 18

Service failure, when properly handled through service recovery, does not necessarily impact customer satisfaction.

Question 19

The fifth and final service gap involves customers' perceived service versus actual customer expectations of service.

Question 20

There is a debate about whether students in business education are "customers" or products that need to be branded.

Question 21

The four characteristics of services are that they are ________.

A) inseparable, perishable, intangible, and variable
B) tangible, quantifiable, reliable, and durable
C) variable, dependable, repairable, and customized
D) customized, standardized, formalized, and categorized
E) specialized, tangible, standardized, and perishable

Question 22

________ of a service means that because it can't be separated from the provider, a service's quality can only be as good as that of the provider.

A) Separability
B) Intangibility
C) Variability
D) Perishability
E) Tangibility

Question 23

As a characteristic of services, intangibility refers to the fact that a service ________.

A) cannot be seen, heard, tasted, or felt by a customer
B) is produced and consumed at the same time
C) can be experienced through the physical senses
D) can be experienced by a customer before utilization
E) quality can only be as good as that of the provider himself or herself

Question 24

Which of the following is TRUE of the service sector?

A) Jobs represented in the service sector of the economy exclude categories such as intellectual property and consulting.
B) In terms of U.S. gross domestic product, services account for less than 60 percent and that number is declining.
C) Changing U.S. demographics represent a major driver for why the service sector is thriving.
D) The long-term shift from service-producing to goods-producing employment is expected to continue.
E) Today, we operate in an economy that seldom focuses on intangible offerings.

Question 25

In a service blueprint, "moments of truth" occur below the line of visibility.

Question 26

Which axiom of service-dominant logic applies to this statement? Customers don't buy a car (product)-they buy the company's ability to add value through a defined set of benefits.

A) Service is the fundamental basis of exchange.
B) Value is co-created by multiple parties, including the company and the customer.
C) A unique experience is created when the customer interacts with the company's marketing efforts and product.
D) Value is defined by the customer.
E) A customer-centric approach has been supplanted by a newer service-dominant approach.

Question 27

One way to make a service more tangible is to have customers ________.

A) read about it on a website
B) experience the service through a trial
C) receive a brochure that highlights the advantages and disadvantages of the service
D) Google the service and see who provides the services in their area
E) use the service at a regular basis

Question 28

A service is a product in a sense that it represents a bundle of benefits that can satisfy customer wants and needs, yet it does so without ________.

A) people
B) price perceptions
C) physical form
D) time utility
E) ethics

Question 29

It may be more accurate to think of a service as being ________ rather than produced.

A) designed
B) modified
C) performed
D) created
E) developed

Question 30

Which of the following is one of the characteristics of services?

A) separability
B) variability
C) tangibility
D) reparability
E) durability

Question 31

Many firms are reluctant to invest in great service, largely because ________.

A) it is difficult to change employees' actions
B) consumers usually are not aware that they are receiving great service
C) a service's quality can only be as good as that of the provider himself or herself
D) it takes time and patience before a return on the investment is noticeable
E) of the inseparability and perish ability of services

Question 32

To enable customers to draw conclusions about a brand's service, service companies face the challenge of making their intangible services seem ________.

A) more tangible
B) more imperceptible
C) less inseparable
D) less reliable
E) less perishable

Question 33

Which of the following is NOT a distinct characteristic of services that is different from physical goods?

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

Question 34

The ________ of performance and consumption of services heightens the role of human service providers in a customer's experience.

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

Question 35

The enhanced role of human service providers in a customer service experience enables service providers to ________.

A) allow for new products to be promoted
B) stimulate the formation of the same experience for all people
C) offer considerable customization in delivering a service
D) create profit pockets by encouraging the ordering of more expensive options
E) help customers experience a service before utilization

Question 36

The percentage of jobs in the United States that are service-related is more than ________ of all jobs.

A) 20 percent
B) 40 percent
C) 60 percent
D) 80 percent
E) 100 percent

Question 37

Of the five dimensions of service quality, empathy means considering things from a service provider's point of view.

Question 38

A service is described as being inseparable because ________.

A) it can be easily separated from its provider
B) it can be experienced by a customer before utilization
C) it cannot be seen, heard, tasted, or felt by a customer
D) it is produced and consumed at the same time
E) its quality is only as good as that of the provider himself or herself

Question 39

Services are produced and consumed at the same time and cannot be detached from their provider. This characteristic of service is called ________.

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

Question 40

A service cannot be experienced through the physical senses. This property represents the ________ of services.

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

Question 41

One of the difficulties associated with search qualities for consumers when evaluating different service offerings is ________.

A) services are not offered in a store
B) customers do not truly know how a service performs until after the sale
C) it is difficult to compare services online
D) a service may be inseparable from its price
E) customers find it difficult to analyze services since they have too many search attributes

Question 42

As discussed in the text, Caesars Entertainment has found that customers who fall into the zone of ________ spend considerably more money and provide a substantially greater return on customer investment than others.

A) defection
B) affection
C) indifference
D) competition
E) retention

Question 43

The service-profit chain is designed to help managers better understand the key linkages in a service delivery system that drive ________.

A) production and distribution
B) customer loyalty, revenue growth, and higher profits
C) brand awareness and economies of scope
D) marketing and sales
E) customer satisfaction, promotion, and higher demand

Question 44

If a firm is considered customer-centric, it implies that the company ________.

A) does marketing research on all market segments and creates ads that focus on individual market segments
B) develops products and services that sell well in both large and small markets including some international markets
C) gives more importance to customers in everything that takes place both inside and outside the firm
D) places employees and customers at the top of the organizational chart
E) treats employees as customers and develops systems and benefits that satisfy their needs

Question 45

Once a firm has invested in continuous process improvement and quality control in operations, goods, in general, tend to be much more ________ than services.

A) perishable
B) standardized
C) distinguished
D) intangible
E) customized

Question 46

Perishability of a service means that ________.

A) a service's quality can only be as good as that of the provider himself or herself
B) a service cannot be stored or saved up for future use
C) a service is produced and consumed at the same time
D) a service must be handled and stored with care
E) a service cannot be separated from its provider

Question 47

Firms that are customer-centric exhibit a high degree of customer orientation, which means that they ________.

A) instill an organization-wide focus on understanding customers' requirements
B) generate an understanding of the marketplace and keep that information confidential
C) align system capability externally so that an organization can respond with competitively similar goods and services
D) develop mass-produced goods and services that sell well in both large and small markets
E) treat employees as customers and develop systems and benefits that satisfy their needs

Question 48

The zone of defection describes the area of ________.

A) slightly satisfied customers
B) extremely dissatisfied customers
C) loyal customers
D) apostles
E) very satisfied customers

Question 49

Treating employees as customers and developing systems and benefits that satisfy their needs is called ________.

A) marketing for profit
B) employee induction
C) market orientation
D) internal marketing
E) green marketing

Question 50

A frequent Caesars guest who serves as a strong advocate for the Caesars experience to friends and acquaintances is referred to as a(n) ________.

A) whistleblower
B) pacifier
C) apostle
D) champion
E) polemicist

Question 51

When a company underpromises but overdelivers with respect to its services, it is said to be practicing ________ management.

A) inferior service
B) change
C) customer salience
D) customer expectations
E) total quality

Question 52

Fluctuating demand is related to ________ of services.

A) durability
B) variability
C) perishability
D) flexibility
E) tangibility

Question 53

In the service-profit chain, external service value leads to all of the following EXCEPT ________.

A) customer satisfaction
B) employee turnover
C) customer loyalty
D) revenue growth
E) profitability

Question 54

One of the central concepts of the service-profit chain is to ________.

A) enable a firm's customers to participate and contribute in strategic decision making
B) create an environment in which all employees can be successful
C) implement market penetration strategies in order to increase sales and profitability
D) create elements of change within people to do things above their capabilities
E) encourage employees to engage in groupthink and to resist any change to existing systems

Question 55

As noted in the text, Caesars Entertainment points with pride to the fact that everyone in the firm understands and can articulate its branding and values. This would be an indication that Caesars is devoted to ________.

A) creating self-actualization for management
B) providing work-focused training for valued employees
C) internal marketing to achieve the goals in the service-profit chain
D) external marketing to achieve the goals of stress-relief ergonomics
E) producing products that are similar to that of its competitors

Question 56

José, an employee of a company that has worked hard to have a customer mind-set, understands that ________.

A) whether internal or external to the firm, satisfying customers is central to doing his job well
B) all members of the firm must get to work on time and start their computers by 8:30 a.m.
C) it is essential to generate an understanding of the marketplace and keep that information confidential
D) products must be produced solely for loyal customers from higher socio-economic status
E) system capability must be aligned externally so that the organization can respond with competitively similar goods and services

Question 57

When a company follows a customer-centric philosophy with a high degree of customer orientation, it is likely to ________.

A) keep everyone up-to-date on the progress of relevant legislation
B) generate an understanding of the marketplace and disseminate that knowledge to everyone in the firm
C) produce products solely for the loyal customers from higher socio-economic status
D) place customers at the top of the organizational chart
E) align system capability externally so that the organization can respond with competitively similar goods and services

Question 58

In the service-profit chain, customer satisfaction leads to customer loyalty, and results in ________.

A) revenue growth and profitability
B) changes in the organizational structure
C) competitive intelligence for future growth
D) competitive retaliation based on service strategy
E) external service value

Question 59

With services, continual investment in training, retraining, and good management of people is required if ________.

A) variability is to be consistently low
B) tangibility is to be consistently low
C) inseparability is to be consistently high
D) intangibility is to be consistently high
E) perishability is to be consistently high

Question 60

An organization's focus on internal service quality implies that employees ________.

A) are less likely to be satisfied
B) lack job security
C) are highly reward-oriented
D) hold a customer mind-set
E) need motivation to change

Question 61

Compared to products, services are ________.

A) low in credence qualities
B) separable in nature
C) easy to evaluate
D) low in search qualities
E) tangible in nature

Question 62

The face-to-face time between customer and service provider is often called the ________ because that is when customer judgments take place

A) goal line stand
B) moment of truth
C) moment of momentum
D) service ROI
E) service encounter

Question 63

The basis of the Gap model of Service Quality is the ________.

A) examination of the differences between the objectives of management and employees
B) elimination of gap between an organization's and its employees' perceptions of the customer experience
C) recognition of suitable techniques for resource management to achieve better service quality
D) identification and measurement of differences in five key areas of the service delivery process
E) improvisation of the face-to-face time between customer and service provider, often called the moment of truth

Question 64

In which of the following gaps of the Gap Model of Service Quality can a lack of the right customer data wreak havoc on service delivery?

A) Gap 1: management's perceptions of customer service expectations versus actual customer expectations of service
B) Gap 2: management's perceptions of customer service expectations versus the actual service quality specifications developed
C) Gap 3: actual service quality specifications versus actual service delivery
D) Gap 4: actual service delivery versus what the firm communicates it delivers
E) Gap 5: perceived service by customers versus actual customer expectations of service

Question 65

Which gap in the Gap Model of Service Quality fundamentally represents customer expectations management through marketing communications?

A) Gap 1: management's perceptions of customer service expectations versus actual customer expectations of service
B) Gap 2: management's perceptions of customer service expectations versus the actual service quality specifications developed
C) Gap 3: actual service quality specifications versus actual service delivery
D) Gap 4: actual service delivery versus what the firm promises it delivers
E) Gap 5: perceived service by customers versus actual customer expectations of service

Question 66

________ is the period during which a customer interacts in any way with a service provider.

A) Service encounter
B) Moment of truth
C) Service period
D) Service quality
E) Time of service

Question 67

In the Gap Model of Service Quality, which gap asks whether a service is provided in the manner intended?

A) Gap 1: management's perceptions of customer service expectations versus actual customer expectations of service
B) Gap 2: management's perceptions of customer service expectations versus the actual service quality specifications developed
C) Gap 3: actual service quality specifications versus actual service delivery
D) Gap 4: actual service delivery versus what the firm communicates it delivers
E) Gap 5: perceived service by customers versus actual customer expectations of service

Question 68

The basis of the gap model is the identification and measurement of differences in ________ key areas of the service delivery process.

A) six
B) two
C) three
D) four
E) five

Question 69

When a customer cannot make a reasonable evaluation of the quality of a service even after use because they lack expertise, this relates to a service's ________ attributes.

A) secondary
B) credence
C) search
D) focused
E) observable

Question 70

Among the dimensions of service quality, tangibles refer to ________.

A) the elements of communication that differentiate one service from another
B) the personality characteristics of service providers
C) the combination of price and quality of a service
D) the physical evidence of a service or the observable aspects
E) the knowledge and courtesy of employees

Question 71

A negative gap between ________ nearly always points to management and employees simply not getting the job done. This could be due to vague performance standards, poor training, or ineffective monitoring by management.

A) actual service quality specifications and actual service delivery
B) management's perception of customer service expectations and actual service quality specifications developed
C) management's perceptions of customer service expectations and actual customer expectations of service
D) actual service delivery and what the firm communicates it delivers
E) perceived service by customers and actual customer expectations of service

Question 72

Once a customer begins to have a positive experience with a service provider and builds a relationship with the firm, customer loyalty ________.

A) tends to be lesser for services than for goods
B) tends to be greater for services than for goods
C) is the same for services and goods
D) develops, but only for a temporary period in all cases
E) develops and increases regardless of future service experiences

Question 73

Some business schools take the approach that the primary customers for their business are ________.

A) professional health care service providers
B) graduate schools
C) parents and relatives of students
D) companies that hire their students
E) professors and lecturers

Question 74

________ represents a formalization of the measurement of customer expectations of a service compared to perceptions of actual service performance.

A) Customer delight
B) Service encounter
C) Service quality
D) Service excellence
E) Moment of truth

Question 75

Exceeding customer expectations is often referred to as customer ________.

A) excellence
B) loyalty
C) essence
D) delight
E) satisfaction

Question 76

Gap 5 in the Gap Model of Service Quality is unique in that it is the only gap that occurs ________.

A) between management's and customers' expectations
B) between consumers' expectations and the perception of the service they receive
C) actual service quality specifications and actual service delivery
D) in small businesses but not in larger ones
E) actual service delivery and what a firm promises to deliver

Question 77

Sometimes, customers can tell if they received good service. For example, vacations, haircuts, and restaurants all have ________ attributes that allow customers to decide whether they will repeat the purchase another time.

A) purchasable
B) tangible
C) focused
D) experience
E) search

Question 78

Firms that employ service as a marketing strategy must plan ahead for service ________ and train employees to properly execute service recovery.

A) differentiation
B) specification
C) failure
D) orientation
E) encounter

Question 79

The assessment of which of the following attributes would require customers to have expertise not generally shared by the public?

A) search
B) credence
C) experience
D) observable
E) tangible

Question 80

Which of the following services is MOST likely to be high in credence attributes?

A) restaurants
B) hair cuts
C) tax preparation
D) child care facilities
E) vacations