Question 1

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

Accepted Answer

The answer of Which of the following will help a...

Question 2

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?

Accepted Answer

The strategy the theater is adopting is known as differential pricing, where it charges different prices for the same product or service based on different customer segments, time of purchase, or quantity purchased, in this case, charging lower prices during off-peak hours to encourage more customers to come during that time.

Question 3

Cocktail lounges in restaurants are examples of ________.

Accepted Answer

Cocktail lounges in restaurants are complementary services, as they complement the dining experience and provide an additional service to customers. Differential pricing is the strategy of charging different prices for the same product or service depending on factors such as the time of day or the day of the week. Cultivating nonpeak demand involves incentivizing customers to visit during slower times, such as offering discounts or promotions. Reservation systems are tools that allow customers to reserve tables or appointments in advance. Shared services refer to the sharing of resources or services between different departments or organizations.

Question 4

Which of the following is true regarding services?

Accepted Answer

Provider-client interaction is a key characteristic of services marketing. Unlike goods, which can be displayed, tested, and evaluated before purchase, services are often intangible and cannot be experienced until they are consumed. As a result, consumers rely heavily on the quality of the provider-client interaction to assess the quality of the service.

Question 5

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

Accepted Answer

By promoting mini-vacation weekends for non-business customers, the Caesar Park Hotel is trying to cultivate nonpeak demand. This means that they are targeting customers who may not typically stay at the hotel during the week for business purposes but may be interested in weekend getaways. By doing so, they are trying to fill rooms that would otherwise go unoccupied during non-busy periods. This is a strategy commonly used by hotels to maximize revenue and utilization of their resources.

Question 6

A service is essentially intangible.

Accepted Answer

A service is intangible because it cannot be touched, tasted, or seen like a physical good. It is performed, experienced, or consumed.

Question 7

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

Accepted Answer

Standardizing the service-performance process can help service firms to increase their quality control by ensuring consistency and reliability in the delivery of the service. This can reduce the likelihood of errors or variations in service quality. Providing complementary services, giving personnel authority, adopting differential pricing, and cultivating nonpeak demand may also have some impact on quality control, but they are not direct measures to address quality control issues.

Question 8

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 ________.

Accepted Answer

Service firms should develop a service blueprint to map out the service process, the points of customer contact, and the evidence of service from the customer's point of view. This helps firms identify areas where improvements can be made and ensure a consistent and positive customer experience. A marketing plan and business plan are important, but they do not specifically focus on the service process and customer experience. A Gantt chart is a project management tool and is not relevant for mapping out the service process.

Question 9

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

Accepted Answer

Service quality is highly variable because it depends on various factors such as who provides them, when and where they are provided, and to whom they are provided. This leads to inconsistencies in the quality of services.

Question 10

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

Accepted Answer

By hiring extra clerks during the holiday season, Walmart is matching its supply with the existing demand, as the holiday season is typically a peak shopping period.

Question 11

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

Accepted Answer

Many services are indeed tied to physical products. For example, the service of repairing a car is tied to the physical product of the car itself.

Question 12

In which of the following cases is a service provider trying to increase nonpeak demand?

Accepted Answer

The fine dining restaurant is promoting a breakfast service, which is a nonpeak time for them, in order to increase demand during that time period.

Question 13

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

Accepted Answer

Weekend discounts for car rentals indicate that the travel agency is using differential pricing, where they are offering different prices for the same service to different customer segments based on their willingness to pay or demand. This is a common pricing strategy in the travel industry.

Question 14

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

Accepted Answer

Services are intangible and do not result in ownership for the client. The client may use the service, but they do not own it.

Question 15

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

Accepted Answer

Brand elements refer to the visual and auditory cues that service providers use to create a brand identity and make their service more tangible to customers. This can include logos, symbols, characters, and slogans, which help customers to recognize and remember the brand.

Question 16

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

Accepted Answer

The answer of Which of the following is an example...

Question 17

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

Accepted Answer

Requesting visitors to fill in their own details on a printed form increases consumer participation by encouraging them to actively engage in the process of seeking services from the clinic.

Question 18

The private nonprofit sector is a provider of services.

Accepted Answer

The private nonprofit sector includes organizations that provide various services, such as healthcare, education, social services, and more. Nonprofit organizations rely on donations and grants to fund their operations and are not driven by profit motives.

Question 19

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

Accepted Answer

Perishability refers to the fact that services cannot be stored or saved for later use. In this scenario, Jake's missed appointment resulted in the perishability of that particular doctor's time and availability, as he had moved on to the next patient. Variability refers to the inconsistency in service quality, heterogeneity refers to the differences in services provided by different providers, intangibility refers to the lack of physical presence in services, and homogeneity refers to the similarity in services provided by different providers.

Question 20

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

Accepted Answer

Inseparability refers to the fact that services are typically produced and consumed simultaneously, meaning that the provider of the service is often present during its delivery (unlike with physical products). Perishability refers to the fact that services cannot be stored or saved for later use, while intangibility refers to the lack of physical presence or touchability of services. Heterogeneity and variability both relate to the fact that services can differ in quality and consistency due to their reliance on human performance.

Quiz 14: Designing and Managing Services