Question 1

A strategy designed to increase the proportion of users by converting current nonusers in one or more major market segments where the market is relatively homogeneous with only a few large segments is referred to as a(n)_____ growth extension strategy.

Accepted Answer

Increased penetration strategy aims to increase the proportion of users by converting non-users within a particular market segment. This strategy is effective when the market is relatively homogeneous with only a few large segments, making it easier to focus marketing efforts on converting non-users. The profitable survivor strategy focuses on cutting costs and improving efficiencies to survive in a shrinking market. Extended use strategy aims to increase usage by existing customers, while market expansion strategy aims to enter new markets with existing products or new products.

Question 2

Which of the following gaps can be removed by giving a clear description regarding the company's service policies to its employees?

Accepted Answer

Providing a clear description of service policies helps align management's perceptions with service quality specifications, thus closing this gap.

Question 3

Which of the following is necessary is the first step in removing the gap between the customer's expectations and the marketer's perceptions?

Accepted Answer

Collecting information to determine what service attributes customers consider important is necessary in order to understand where the gap exists and what changes need to be made to meet the customer's expectations.

Question 4

Which of the following is usually of greater interest to analyzer and defender businesses?

Accepted Answer

Analyzer and defender businesses tend to have a more conservative approach to growth and are more focused on ensuring a solid return on investment. Therefore, D (return on investment) is usually of greater interest to them.

Question 5

Keith bought a second-hand car from Barry Automobiles Ltd.He had chosen that particular car as its body panels and trim were evenly spaced and aligned.Also,it did not have any dents or scratches.This implies that the _____ dimension helped him in making his buying decision.

Accepted Answer

The fit and finish dimension refers to the quality and precision of the car's body panels, trims, and other exterior components, which ultimately affects the car's aesthetic appeal and perceived value. In Keith's case, he based his buying decision on this dimension since the car's panels and trim were evenly spaced and aligned, and it didn't have any dents or scratches.

Question 6

The perceived value that customers associate with a particular brand name and its logo or symbol refers to its brand:

Accepted Answer

Brand equity refers to the value that customers place on a brand, based on their experiences with and perceptions of the brand over time. This includes factors such as brand recognition, brand loyalty, and overall brand reputation, all of which contribute to the overall perceived value of the brand.

Question 7

While making an online payment for his credit card,Bono got stuck as the server crashed.He was unable to move forward with the payment and was worried if he would be charged a late fee.When he made a call to his bank,the customer service staff at the bank requested him to wait for 24 hours and informed him that if the issue was not solved within 24 hours,he could make a complaint.He was also assured that he would not be charged any penalty.Which of the following service quality dimensions is demonstrated by the customer service staff in this scenario?

Accepted Answer

The customer service staff demonstrated responsiveness by providing Bono with a solution and assuring him that he would not be charged any penalty, even if the issue was not resolved within 24 hours.

Question 8

An American firm produces mobile phones and music players.The final assembly of these instruments is done in China due to the low wage rates in the country.Which of the following is being applied by the American firm in order to maintain minimized costs?

Accepted Answer

An innovative production process is being applied by the American firm to maintain minimized costs by outsourcing the final assembly to China, where wage rates are lower, thus reducing production costs.

Question 9

Snowball Hotels provides rewards such as incentives,pay raises,or promotions to their employees who perform well.This is done by measuring and evaluating the service performance of employees on certain pre-specified criteria.The senior executives focus mainly on the hospitality rendered by the employees while attending to customers' needs.The employees are provided with regular training to prepare them for delivering such hospitality.Which of the following gaps would most likely be absent in the organization?

Accepted Answer

The organization measures and evaluates the service performance of employees on pre-specified criteria, provides regular training to prepare them for delivering hospitality, and rewards them for good performance. This indicates that the organization has established service quality specifications and monitors service delivery to ensure that it meets those specifications. Therefore, the gap between service quality specifications and service delivery would most likely be absent in the organization. The other gaps may still be present, but are not mentioned specifically in the scenario.

Question 10

Q&Q Ltd. ,an electronics manufacturer,advertises its refrigerators as refrigerators that emit low noise,have an automatic defrost system,have a massive storage capacity with slim profiles,and so on This implies that the company is relying on the quality dimension of _____ in order to promote its refrigerators.

Accepted Answer

The company is promoting the features of its refrigerators, such as low noise, automatic defrost system, and massive storage capacity with slim profiles. These are all features that add value to the product and are intended to appeal to customers looking for specific characteristics in their refrigerators. Therefore, the promotional strategy is primarily focused on the quality dimension of features.

Question 11

The quality dimension of _____ refers to the consistency of performance from purchase to purchase or to a product's uptime,the percentage of time that it can perform satisfactorily over its life.

Accepted Answer

Reliability specifically refers to the consistency of performance over time, whether it be from purchase to purchase or over the product's lifespan. This quality dimension directly addresses the aspect of consistency or predictability in the product's performance.

Question 12

Carter & Stockdale,a seaside resort,believes in giving feedback forms to its guests to understand their opinions of the services that they offer and to work on the areas for which they receive poor feedback.The managers of the resort aim to maximize their lifetime value with the help of the responses from a variety of consumers.Which of the following is the resort involved in?

Accepted Answer

The resort is involved in measuring customer satisfaction through feedback forms given to their guests. This helps them to improve their services and maximize their lifetime value with the help of responses from a variety of consumers. Options A, B, and D are not relevant or mentioned in the scenario.

Question 13

An airline's TV ads include scenes of caring stewardesses attending to customer's needs.The stewardesses are seen serving passengers with good food,playing with children,turning off the lights when passengers fall asleep,and so on.Which of the following service quality dimensions is illustrated in these ads?

Accepted Answer

The scenes of caring stewardesses attending to customer's needs illustrate the service quality dimension of empathy, which refers to the ability of service providers to understand and respond to the needs and emotions of their customers.

Question 14

Stintson Automobiles Ltd.provides cars for rent.The music systems installed in the rental cars were removed by the firm in order to obtain a low-cost position.This implies that Stintson Automobiles Ltd.had applied a(n):

Accepted Answer

Stintson Automobiles Ltd. has removed the music systems in order to obtain a low-cost position, which suggests that they have adopted a no-frills strategy. A no-frills strategy involves removing additional or unnecessary features to reduce the cost of production and offer a bare minimum service/product to the customers.

Question 15

Peter Joplin Inc. ,a car repair help shop,has an expert mechanic who carefully inspects consumers' car brakes,car oil,battery,and ensures that the repairs meet customers' satisfaction.This implies that the store is applying the service quality dimension of _____ to attract customers.

Accepted Answer

The service quality dimension of assurance refers to the ability of the service provider to convey trust and confidence to the customer through the expertise and reliability of the service. In this case, the expert mechanic who carefully inspects and repairs customers' cars meets this dimension by assuring customers that their cars are in good hands and will be repaired to their satisfaction.

Question 16

Hugh's cell phone stopped working while transferring files to a friend's cell phone via Bluetooth.He approached a customer care center of his cell phone company.The customer care representative informed him that his phone had been infected by a virus and that she has removed it now.This indicates that the cell phone brand has a quality dimension of _____.

Accepted Answer

Serviceability refers to the ease with which a product can be repaired or serviced. In this scenario, the customer care representative's ability to remove the virus from Hugh's cell phone demonstrates the brand's serviceability, as the issue was resolved efficiently.

Question 17

As a dimension of service quality,empathy is defined as the:

Accepted Answer

Empathy refers to the amount of caring and individualized attention a firm provides its customers. Options A, B, and D do not accurately describe empathy in the context of service quality.

Question 18

Which of the following is the critical determinant of success in mature markets?

Accepted Answer

In mature markets, where there is already a lot of competition, continuous functioning of the business to improve the value of its offerings is critical. This means that the business must focus on enhancing the quality of its existing products or services, introducing new features or functions, and maintaining its competitive edge in terms of pricing or customer service. Choosing between a differentiation and low-cost strategy, increasing volume, and new product successes are all important factors, but they are not the critical determinant of success in mature markets.

Question 19

A software called Positron launched by GCZ Ltd.is known for absolute prevention and removal of malware and computer viruses.Which of the following service quality dimensions does Positron software have?

Accepted Answer

The service quality dimension demonstrated by the software is reliability since it is known for absolute prevention and removal of malware and computer viruses, implying that customers can rely on it to work effectively. Responsiveness, empathy, and tangibility do not apply to software as they refer to different aspects of service quality such as promptness in addressing customer needs, understanding and concern for customers, and physical attributes of the service.

Question 20

The key to a differentiation strategy based on providing superior service is to:

Accepted Answer

The key to a differentiation strategy based on providing superior service is to meet or exceed target customers' service quality expectations. This means understanding what customer expectations are and then delivering service that meets or exceeds those expectations. Underestimating or encouraging unrealistic expectations would be ineffective strategies. Having empathy rather than sympathy for customers is important for building strong customer relationships, but it is not the key to a differentiation strategy based on service.

Quiz 16: Strategies for Mature and Declining Markets

A strategy designed to increase the proportion of users by converting current nonusers in one or more major market segments where the market is relatively homogeneous with only a few large segments is referred to as a(n) _____ growth extension strategy.