Question 1

General Electric sends out 700 000 response cards a year asking households to rate its service people's performance. Which step is GE taking to increase quality control?
A) monitoring customer satisfaction
B) enhancing communications materials
C) employing differential pricing
D) standardize the service
E) invest in good training and hiring procedures

Accepted Answer

By sending out response cards and asking households to rate its service people's performance, General Electric is monitoring customer satisfaction and taking steps to improve quality control.

Question 2

At the customer counter of your neighbourhood tire dealer, you overhear the manager tell a customer "Mrs. Jones, you have our word that we can fix your car." This comment increases your belief in the service quality of the organization by communicating ________ to you and Mrs. Jones.
A) tangibles
B) assurance
C) reliability
D) responsiveness
E) empathy

Accepted Answer

The manager's comment of "you have our word" communicates assurance to both the customer and the listener, instilling a sense of trust in the organization's ability to fix the customer's car.

Question 3

________ describes the employees' skill in serving the client.
A) Technical marketing
B) Fixed marketing
C) Interactive marketing
D) Client marketing
E) Internal marketing

Accepted Answer

Interactive marketing emphasizes the importance of employees' skills in interacting with clients and providing excellent customer service.

Question 4

Because services depend on who provides them and when and where they are provided, they are highly
A) consistent.
B) sub-standard.
C) variable.
D) tangible.
E) suspect.

Accepted Answer

Services are highly variable because they are dependent on various factors such as the provider, time, and location. This makes it difficult to ensure consistency in the quality of service received.

Question 5

When the cell phone providers' offer "weekends free" they are employing which of the following strategies to deal with perishability?
A) complementary services
B) shared services
C) peak-time efficiency
D) differential pricing
E) reservation systems

Accepted Answer

The cell phone providers' use differential pricing strategy by offering "weekends free" to deal with perishability. The providers charge different prices for different times of the week to manage demand and capacity, this helps to sell unused inventory during off-peak times.

Question 6

Services cannot be stored, warehoused, or shelved. This is concept is unique to service marketers and is called
A) standardization.
B) intangibility.
C) perishability.
D) heterogeneity.
E) variability.

Accepted Answer

Perishability is the concept unique to service marketers that refers to the inability to store, warehouse, or shelve services. This means that services cannot be produced in advance and stored for later use. They are produced and consumed simultaneously, making them perishable. The other options (A, B, D, E) are characteristics of services, but do not specifically address the issue of perishability.

Question 7

When the lawn service firm advertises, "We can handle all your lawn needs in one stop" and then requires three or four visits to satisfy you, this is an example of which one of the "gaps" of service performance?
A) between management perception and service-quality specification
B) between expected service and perceived service
C) between service delivery and external communications
D) between service delivery and translation of perceptions
E) between management's perception and consumers expectations

Accepted Answer

This scenario exemplifies the gap between service delivery and external communications, where the service advertised does not match the actual service delivered, leading to customer dissatisfaction.

Question 8

Big spenders get special discounts, promotional offers, and lots of special service. The service company has classified their customers into
A) market profiles.
B) switchers.
C) complaint tiers.
D) profit tiers.
E) geographic segments.

Accepted Answer

The service company has classified their customers based on how much profit they bring to the company, which indicates that they have categorized their customers into profit tiers. These big spenders are likely to be in the top tier, which is why they receive special discounts, promotions, and service.

Question 9

Services are produced and consumed simultaneously. Psychotherapists have moved from one-on-one therapy to small-group therapy to groups of over 300 people. Which of the following strategies to deal with the limitation of inseparability does this reflect?
A) investing in good people
B) using the Internet
C) training others to perform the service
D) using television
E) working with larger groups

Accepted Answer

Working with larger groups allows for more efficient use of the psychotherapist's time and resources, while still providing the service to multiple individuals at once. This is a strategy to deal with the limitation of inseparability, as it allows for the production and consumption of the service to occur simultaneously for multiple individuals. The other options, such as investing in good people, using the Internet, training others, or using television, do not necessarily address the issue of inseparability in the same way as working with larger groups.

Question 10

Marketing excellence with services requires excellence in three broad areas: external, ________, and internal marketing.
A) interactive
B) incremental
C) consistent
D) exceptional
E) influential

Accepted Answer

Interactive marketing is the correct answer because it refers to the direct interaction between a company and its customers, which is crucial for marketing excellence in services alongside external and internal marketing.

Question 11

To match supply and demand on the supply side, marketers can employ a number of strategies. Which of the following strategies has employees performing only essential tasks during peak periods.
A) peak-time efficiency routines
B) shared services
C) increased consumer participation
D) part-time employees
E) reservation system

Accepted Answer

Peak-time efficiency routines involve employees performing only essential tasks during peak periods, allowing the supply to match the demand. This strategy helps to ensure that customers receive timely service during busy times without the need for additional staff or resources. The other options listed are different strategies that may help match supply and demand but do not specifically involve employees performing only essential tasks during peak periods.

Question 12

To match demand and supply, service marketers can utilize a number of strategies on the demand side. Which of the following strategies provides alternatives to waiting customers?
A) reservation systems
B) differential pricing
C) complementary services
D) nonpeak demand
E) peak-time efficiency routines

Accepted Answer

Complementary services provide alternatives to waiting customers by offering them additional services that can enhance their experience or provide value while they wait, thus making the wait more tolerable or even enjoyable.

Question 13

As you prepare to enjoy a night at the theater, your expectations rise as you listen to the music, read the reviewers comments, and reflect back to the last time you saw the same musical. All of these form your "expected service." If a "gap" were to exist, it would exist here between your "expected service" and the ________ of the performance.
A) management perception
B) external communication
C) perceived service
D) service-quality specifications
E) actual quality

Accepted Answer

The "gap" would exist between your "expected service" and the "perceived service" of the performance, as it refers to the difference between what you expect and what you actually perceive or experience during the service.

Question 14

Clients judge the service not only by its ________ but also by its functional quality.
A) length of time
B) attributes
C) price
D) completeness
E) technical quality

Accepted Answer

The question is talking about how clients judge the quality of a service, and it notes that they consider not only the "what" of the service (attributes), but also the "how" (functional quality). Since the question is asking for a single answer, the best choice is E, technical quality, which is often used as a synonym for functional quality.

Question 15

Which of the following factors that lead to customer switching behaviour is considered a core service failure?
A) billing errors
B) conflict of interest
C) waiting for service
D) price increases
E) reluctant response

Accepted Answer

Billing errors are considered a core service failure because they directly relate to the fundamental aspect of the service transaction - the accurate and fair exchange of value (payment for services). Core service failures are those that directly impact the primary service offering, and billing errors can significantly undermine trust and satisfaction, leading to customer switching behavior.

Question 16

When restaurants and theme parks add summer workers, they are attempting to manage supply and demand for their services by
A) using part-time employees.
B) increasing enrollment.
C) nonpeak demand.
D) shared services.
E) complementary services.

Accepted Answer

By hiring part-time employees, restaurants and theme parks can manage their staffing levels during the summer season when demand may be higher. This allows them to avoid overstaffing during slower periods and to be more flexible in meeting fluctuating demand.

Question 17

After sending registered letters to the roofing company, numerous attempts to contact the president of the company by phone, and sending copies of the complaint to the Better Business Bureau, you finally received a response from the firm that did not satisfy you. In desperation, you decided to have another company complete the repairs to your home. This is an example of what kind of customer switching behaviour on your part?
A) competition
B) inconvenience
C) service encounter failures
D) response to service failure
E) involuntary switching

Accepted Answer

This is an example of customer switching behavior in response to a service failure. Despite making multiple attempts to contact the company and file a complaint, the response received was unsatisfactory, leading to the decision to switch to another company to complete the repairs.

Question 18

There are steps service firms can take to increase quality control. Which of the following involves preparing a service blueprint?
A) monitor customer satisfaction
B) standardize the service-performance process
C) invest in good training procedures
D) invest in good hiring procedures.
E) reduce customer contact points

Accepted Answer

Preparing a service blueprint involves laying out the steps involved in delivering a service, which can help identify areas where quality control can be improved and where standardization can be implemented. Monitoring customer satisfaction involves collecting feedback from customers, investing in good training procedures and good hiring procedures involve ensuring that employees are well prepared to deliver high-quality service, and reducing customer contact points can help streamline the service process but does not directly address quality control.

Question 19

There are shifts that favour the customer in the client relationship. Customers are now becoming more sophisticated about buying product support services and are pressing for "________."
A) institutional pricing/services
B) substitute services
C) promotional pricing
D) selective pricing
E) services unbundling

Accepted Answer

Customers are pressing for "services unbundling," which refers to the ability to purchase individual services separately rather than in a package deal. This allows customers to only pay for the specific services they need, rather than being forced to purchase a bundle that includes services they may not need or want. This shift gives the customer more control and flexibility in choosing the type and amount of support services they require.

Question 20

Ben Makama has switched his dry cleaning provider because the cleaner did not perform up to his standards. This is an example of which of the following customer switching behaviours?
A) core service failure
B) response to service failure
C) service encounter failure
D) involuntary switching
E) competition

Accepted Answer

Core service failure occurs when the primary service a business is expected to provide is not delivered properly or meets the customer's standards, leading to customer dissatisfaction and potential switching, as in the case of Ben Makama switching dry cleaning providers due to unsatisfactory service.

Quiz 13: Designing and Managing Services

General Electric sends out 700 000 response cards a year asking households to rate its service people's performance. Which step is GE taking to increase quality control?

At the customer counter of your neighbourhood tire dealer, you overhear the manager tell a customer "Mrs. Jones, you have our word that we can fix your car." This comment increases your belief in the service quality of the organization by communicating ________ to you and Mrs. Jones.

________ describes the employees' skill in serving the client.

Because services depend on who provides them and when and where they are provided, they are highly

When the cell phone providers' offer "weekends free" they are employing which of the following strategies to deal with perishability?

Services cannot be stored, warehoused, or shelved. This is concept is unique to service marketers and is called

When the lawn service firm advertises, "We can handle all your lawn needs in one stop" and then requires three or four visits to satisfy you, this is an example of which one of the "gaps" of service performance?

Big spenders get special discounts, promotional offers, and lots of special service. The service company has classified their customers into

Services are produced and consumed simultaneously. Psychotherapists have moved from one-on-one therapy to small-group therapy to groups of over 300 people. Which of the following strategies to deal with the limitation of inseparability does this reflect?

Marketing excellence with services requires excellence in three broad areas: external, ________, and internal marketing.

To match supply and demand on the supply side, marketers can employ a number of strategies. Which of the following strategies has employees performing only essential tasks during peak periods.

To match demand and supply, service marketers can utilize a number of strategies on the demand side. Which of the following strategies provides alternatives to waiting customers?

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

Which of the following factors that lead to customer switching behaviour is considered a core service failure?

When restaurants and theme parks add summer workers, they are attempting to manage supply and demand for their services by

There are steps service firms can take to increase quality control. Which of the following involves preparing a service blueprint?

There are shifts that favour the customer in the client relationship. Customers are now becoming more sophisticated about buying product support services and are pressing for "________."

Ben Makama has switched his dry cleaning provider because the cleaner did not perform up to his standards. This is an example of which of the following customer switching behaviours?