Question 1

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

Accepted Answer

Today's workplace is highly customer-centric, and almost everyone in the organization is involved in providing some kind of service or value to customers, whether they are external or internal to the firm. This includes employees at all levels, from frontline staff to senior executives, who must work together to create a positive customer experience and achieve business success.

Question 2

Investing in customers that fall into the zone of indifference is a good strategy because the company can often prevent them from sliding into the zone of defection thereby increasing ROI.

Accepted Answer

Investing in customers in the zone of indifference can be a good strategy as it prevents them from becoming dissatisfied and leaving the company (moving to the zone of defection). This can increase ROI in the long run by retaining customers and potentially turning them into loyal advocates of the brand.

Question 3

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

Accepted Answer

A service-centered perspective focuses on optimizing service delivery and ensuring that resources are aligned to best serve customers. This is in line with a customer-centric approach, which prioritizes the needs and preferences of the customer. Therefore, the statement is true.

Question 4

There is an ethical debate on that doctors should send their patients to China for treatment because the cost is lower than is available in the United States.

Accepted Answer

The answer of There is an ethical debate on that...

Question 5

JetBlue had disaster on its hands when it found itself victims of a winter storm in New York.Instead of ignoring the problem, it successfully reached out to customers by letter, e-mail and video to say the airline had a melt down.

Accepted Answer

The statement implies that JetBlue did not ignore the problem and successfully reached out to customers, which is true.

Question 6

When one considers the product and where its value comes from, it has become obvious over time that value comes mostly from the tangible product and its features.

Accepted Answer

While the tangible product and its features are important, value also comes from intangible factors such as brand reputation, customer service, and user experience. Additionally, in some industries such as software, the value may come primarily from intangible factors such as functionality and ease of use.

Question 7

Professional services providers like doctors, lawyers, and accountants use their degrees and designations to convey a level of trust to the purchaser.This is because a customer cannot tell if the service is going to be good until after the service has been delivered.

Accepted Answer

Customers of professional services providers rely on their degrees and designations to pre-assess the quality of services they will receive, as the actual quality cannot be determined until after the service has been delivered.

Question 8

Intuit, which makes Quicken, provides the infrastructure for users to create content and help each other.It also does something that most B2B companies do not do in that is solicits customers for text and video content.

Accepted Answer

The statement correctly describes Intuit's approach, indicating that it is true.

Question 9

Trust in the ability of a service provider to do a difficult job is called assurance.

Accepted Answer

Assurance is the trust or confidence in the ability of a service provider to do a difficult job.

Question 10

Most airlines will not let a customer change a super-low-fare ticket because once the plane backs away from the gate, the value of the empty seat is zero.

Accepted Answer

This is because super-low-fare tickets are non-refundable and non-changeable. Once the plane departs, the airline cannot resell the empty seat, so they do not want to lose revenue by allowing customers to change their ticket.

Question 11

There is a debate among professors in educational services on whether students are "customers" or products that need to be branded.

Accepted Answer

This statement is true. There is ongoing debate among educators regarding the perspective they should adopt in referring to students, whether it be as customers or products.

Question 12

A fundamental rule in marketing is to not set customer expectations so high that they cannot be effectively met on a consistent basis.

Accepted Answer

This is a basic principle of customer service and marketing - it's important to build a positive customer experience by setting realistic expectations and consistently delivering on them. If expectations are set too high, and then not met consistently, it can lead to dissatisfaction and a loss of trust in the brand.

Question 13

Harrah's has found that customers that are in the Zone of Indifference make the best potential targets for their promotions.They respond and change from being indifferent to becoming advocates.

Accepted Answer

The answer of Harrah's has found that customers that are...

Question 14

The main cause of switching behavior is price.People leave companies because of high price and this drives out most other reasons for leaving.

Accepted Answer

The answer of The main cause of switching behavior is...

Question 15

Empathy means that when a customer has a problem that the service provider relates with, the company does what is best for the company.

Accepted Answer

Empathy means understanding and sharing the feelings of others, in this case, the customer's problem. It involves doing what is best for the customer, not just the company.

Question 16

There is a big debate that today we operate in an economy that is increasingly focused on intangible offerings-services-instead of just physical goods.

Accepted Answer

There's no debate that today we operate in an economy that is increasingly focused on intangible offerings-services-instead of just physical goods.

Question 17

For Disney theme parks and Disney Cruise Lines, attention to detail is one of the cornerstones of their focus on excellence.

Accepted Answer

This statement is true. Disney theme parks and Disney Cruise Lines are known for their exceptional attention to detail as part of their commitment to providing a high-quality experience for their guests.

Question 18

In the Gap Model of Service Quality, there are five main gaps that may occur.The frequency of gap occurrence is approximately the same for each gap making them all equally important.

Accepted Answer

The frequency of gap occurrence may vary for each gap, making some gaps more significant than others.

Question 19

The zone of defection is where satisfied customers reside when they are not really thrilled with the service provided.This leads them to not be committed to the company and they defect.

Accepted Answer

The answer of The zone of defection is where satisfied...

Question 20

The Service-Profit Chain identifies that increases in service through the cultivation of employees leads to higher customer costs and the potential erosion of profits.

Accepted Answer

The Service-Profit Chain suggests that investing in employee satisfaction and capability leads to better service, which enhances customer satisfaction and loyalty, ultimately increasing profits, not eroding them.

Quiz 13: Service As the Core Offering