Deck 12: Services: The Intangible Product

Question 1

One use of marketing research is to provide an effective means to understand consumers' service expectations and their perceptions of service quality.

Answer 1

True

Question 2

Along the service-product continuum,which of the following 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

Answer 2

A

Question 3

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

Answer 3

True

Question 4

By providing good customer service,firms __________ their products or services.

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

Question 5

A service is any intangible offering that involves a deed,performance,or effort that:

A) cannot be physically possessed.
B) is high-priced.
C) is supported solely through advertising.
D) can be transformed into a physical product.
E) that offers benefits but not costs.

Question 6

Procedural fairness pertains to a customer's perception of the benefits received compared to the costs of the inconvenience or loss.

Question 7

Many services marketers use training and standardization to reduce service perishability.

Question 8

The communications gap can be reduced by managing customer expectations.

Question 9

All products and services are intangible.

Question 10

When Buffalo Bank required all customers to use their online banking services,over 20 percent of their customers closed their accounts.Buffalo Bank's service fell outside customers' zone of tolerance.

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

The marketing of services differs from the marketing of products because services are tangible and separable from the service provider.

Question 17

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

Question 18

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

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

Question 19

The knowledge gap is where "the rubber meets the road," where the customer directly interacts with the service provider.

Question 20

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

Question 21

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 their 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 22

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) variable
D) perishable
E) viable

Question 23

The marketing of services differs from product marketing because services are:

A) intangible.
B) inseparable.
C) variable.
D) perishable.
E) all of these.

Question 24

Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store.Few of the employees--when she could find them--seemed to know where anything was.But on her most recent visit,she was pleasantly surprised to find that the store had installed kiosks where she could get directions 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) variability

Question 25

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) variability

Question 26

In countries like the United States,services:

A) have almost all been replaced by technology.
B) are a small portion of GDP relative to manufacturing.
C) are replacing property taxes as a source of government revenue.
D) will decrease in demand as the population ages.
E) account for an increasing share of jobs.

Question 27

Marketers can take advantage of the variable nature of services by:

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

Question 28

Many product dominant firms use quality service:

A) as a way to minimize the cost of production.
B) to support a standards gap.
C) as a way to increase the perishability of their products.
D) to install a voice of the customer program.
E) to maintain a sustainable competitive advantage.

Question 29

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

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

Question 30

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) variable
D) perishable
E) peripheral

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) variable
D) perishable
E) replenishable

Question 32

Because services are __________,it is often difficult for marketers to convey the benefits to consumers.

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

Question 33

The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city.The sign in the window promises "Quick,In-and-Out Service," and usually Marielle's keeps that promise.But one morning,customers were frustrated when the staff behind the counter was more interested in gossiping about their social lives than in waiting on customers.Marielle's shop is suffering from a:

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

Question 34

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 35

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) variable
D) durable
E) perishable

Question 36

David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards,return policies,and special orders.David was shocked."Nobody ever asks about that stuff! If it were that important,people would ask about it." David is likely suffering from a:

A) knowledge gap.
B) standards gap.
C) retail policy gap.
D) delivery gap.
E) communications gap.

Question 37

The old restaurant saying "You are only as good as the last meal served" reflects the fact that services are:

A) intangible.
B) inseparable.
C) variable.
D) portable.
E) viable.

Question 38

For many professionals offering intangible services,an ethical marketing dilemma exists.The dilemma centers on:

A) when to advertise versus when to use personal selling.
B) which media are appropriate for promoting intangible services.
C) which images create a better impression on consumers.
D) how to gain clients while retaining an image of professionalism and integrity.
E) who should be the spokesperson for professionals offering intangible services.

Question 39

Medical services,assisted living care,and active senior travel are all examples of:

A) services shifted abroad because costs are lower in developing countries.
B) services an aging population will increase their 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

Sean had moved to take a new job,and when he was feeling really sick,he needed to find a doctor.He discovered during the visit that he didn't like the one he had chosen,and he knew he'd never go back to that doctor.From a marketing perspective,his situation highlights one of the key differences between products and services,known as __________.

A) intangibility
B) professional competence
C) perishability
D) inseparability
E) variability

Question 41

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) all of these.

Question 42

Which of the following is NOT one of the five dimensions used by consumers to determine overall service quality?

A) Assurance
B) Reliability
C) Acceptability
D) Responsiveness
E) Empathy

Question 43

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 44

Cheryl will only let Martiné cut her hair.She has tried other hairdressers,but she knows from experience that Martiné cuts her hair well every time.Cheryl has found that Martiné does an excellent job with __________,one of the service quality dimensions.

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

Question 45

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

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

Question 46

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

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

Question 47

For years,the Mogul Sheraton,a four-star hotel overlooking the Taj Mahal in India,offered free elephant and camel rides to hotel visitors,assuming that this service would be attractive to hotel guests.But few customers took advantage of the service.This is an example of a __________ gap in services marketing.

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

Question 48

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 49

Yolanda manages a Best Sleep Inn along an interstate highway.She knows from experience that five to ten last-minute customers will call after 8 p.m.each evening looking for a room and asking the price.Yolanda 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) variable
D) durable
E) perishable

Question 50

Firms can close the __________ gap by matching customer expectations with actual service through research.

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

Question 51

Students regularly seek out Professor Guillory to advise them.She has an exceptional manner,and students are confident in her and trust her advice.Professor Guillory excels in __________,one of the five service quality dimensions.

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

Question 52

Because services like airline flights and hotel beds are __________,many marketers attempt to match demand with supply using pricing strategies.

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

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

A __________ gap can be closed by getting employees to meet or exceed service standards.

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

Question 55

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 56

Firms can close a __________ gap by being more realistic about the services they can provide and managing customer expectations.

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

Question 57

If there is a difference between the actual service provided to customers and the service the firm has promoted,a __________ gap exists.

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

Question 58

The 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 less or poorer service than they should.
D) service providers know more than their customers.
E) delivered service exceeds expected service.

Question 59

Colin has been directed by his boss to determine if their company is meeting customers' service quality expectations.One of Colin's problems is that services are __________,making measurement of service quality difficult.

A) quantifiable
B) substantial
C) unequally distributed
D) intangible
E) inconsequential to customers

Question 60

Gerald's Tire Service provides each employee with a clean,sharp-looking uniform.They also instruct employees to put all tools back where they belong and keep the work area clean and uncluttered.Gerald's Tire Service emphasizes __________ in the five service quality dimensions.

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

Question 61

The concept of __________ refers to the area between customers' expectations regarding desired service and their minimum levels of acceptable service.

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

Question 62

What is the problem associated with service quality standards such as "be nice" or "do what the customers want?"

A) They create low expectations.
B) They are not specific.
C) They do not allow for the voice-of-customer process.
D) Most employees are unwilling to do what customers want.
E) They create a delivery gap.

Question 63

Saltdust Grill is known as the premier restaurant in town.With their elegant dining area,extensive wine list,and gourmet chef,residents and tourists flock to the restaurant.Recently,Trey took a large group to the Saltdust Grill and almost every diner sent their entrée back to the kitchen.The Saltdust Grill was experiencing a __________ gap in service quality.

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

Question 64

Nicole knows her restaurant is understaffed today.She is hoping to get through the day without falling below her customers' __________,the difference between what her customers want and what they will accept before going elsewhere.

A) voice-of-customer quotient
B) empowerment standard
C) tangibles gap
D) zone of tolerance
E) quality gap

Question 65

Customers have a defined __________ when it comes to waiting in line at a retail checkout counter.The amount of time consumers are willing to wait varies with the type of store.

A) voice-of-customer quotient
B) empowerment standard
C) tangibles gap
D) zone of tolerance
E) quality gap

Question 66

What is the primary cause of a delivery gap in service delivery?

A) Managers set extremely specific service standards.
B) Managers misinterpret customers' expectations.
C) Service employees sometimes do not deliver according to standards.
D) Firms make service promises they don't keep.
E) Any of these.

Question 67

Collecting information at the point of sale is a straightforward and inexpensive way to assess service quality,but this approach will NOT be useful if:

A) customers cannot assess service quality,as in the case of oil change or maintenance check.
B) decision-making managers do not get the results of the feedback.
C) the person who rendered poor service is the same person collecting the information.
D) customers are rushed and don't take the time to assess the service.
E) All of these.

Question 68

By changing a standard from "be nice to customers" to "greet every customer,and if possible by name," a services marketing manager has created a(n)__________ goal.

A) insurmountable
B) invisible
C) empowerment
D) measurable
E) inseparable

Question 69

Kala is the new manager of a resort hotel.She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers' expectations,and she believes that the biggest problem is that her employees are not sure what is expected of them.To improve service quality,Kala will:

A) empower customers to meet their own service needs.
B) establish a broad zone of intolerance to reduce customer complaints.
C) narrowly define a knowledge gap.
D) separate intangibles from tangibles.
E) set specific,measurable goals based on customers' expectations.

Question 70

Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers' responses to new products and services.Bank of America is using a __________ 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 71

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 72

When corporate headquarters announced new service quality standards for pizza franchise owners,Roland knew he would have trouble gaining employees' support because:

A) they were not involved in setting the goals.
B) perishable services were being replaced with tangible services.
C) they were not allowed to diverge from existing standards.
D) customers were required to create service quality standards.
E) the process involved both part-time and full-time employees.

Question 73

An excellent,inexpensive,and readily accessible method for assessing customers' service expectations is:

A) customer complaints.
B) syndicated data services.
C) employee empowerment programs.
D) distributive fairness analysis.
E) all of these.

Question 74

A __________ gap exists when a firm knows what they need to do to meet customers' service expectations but sometimes fails to do it.

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

Question 75

To develop a zone of tolerance analysis,a market researcher would likely ask customers:

A) their desired level of service for each of the five service quality dimensions.
B) their expected level of service for each of the five service quality dimensions.
C) how well the firm performs in each service quality dimension.
D) the importance of each service quality dimension.
E) all of these.

Question 76

When choosing where to eat lunch,Veronica's major service criterion is speed: being seated promptly and served her meal quickly.For Veronica,__________ is the most important of the five service quality dimensions.

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

Question 77

Training service providers to know exactly what a "good job" entails is setting service:

A) knowledge.
B) quality.
C) delivery.
D) standards.
E) empowerment.

Question 78

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

Question 79

Services marketing managers have learned that more employees will support a quality-oriented process if:

A) they are involved in setting the goals.
B) perishable services are replaced with tangible services.
C) they are required to diverge from existing standards.
D) customers are responsible for setting service quality standards.
E) the process involves both part-time and full-time employees.

Question 80

In services marketing,the saying,"where the rubber meets the road" refers to whether or not a __________ gap exists.

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