Question 1

Which of the following service providers are most likely to use demand-based pricing?

Accepted Answer

Cruise ships are more likely to use demand-based pricing as they adjust their prices based on demand for their services (i.e. higher prices during peak season and lower prices during off-peak season). The other service providers generally have fixed prices for their services.

Question 2

Tara finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to see exactly how they feel and fit. In other words, the jeans have many ____ qualities.

Accepted Answer

Jeans have many search qualities because they allow for evaluation before purchase through direct examination, such as trying them on to assess fit and feel.

Question 3

In most service industries, customer-contact employees are

Accepted Answer

In many service industries, customer-contact employees tend to be the lowest-paid and least-trained employees. This is often due to the high turnover rates in these positions and the entry-level nature of many of these roles.

Question 4

American Life uses leather-look portfolios and high-quality paper and printing for its life insurance policies in order to indicate

Accepted Answer

American Life uses leather-look portfolios and high-quality paper and printing for its life insurance policies to indicate the quality of its services. This suggests that the company places importance on providing high-quality services to its customers.

Question 5

The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called

Accepted Answer

Responsiveness refers to the willingness and readiness of employees to meet the needs of the customer while providing the service. Reliability refers to the consistency and dependability of service delivery, empathy refers to the ability of employees to understand and relate to the customer's feelings, tangibles refer to the physical evidence of the service, and assurance refers to the employees' knowledge and ability to inspire trust and confidence in the customer.

Question 6

There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and

Accepted Answer

The five elements that affect customers' perceptions of service quality, as identified in the SERVQUAL model, are reliability, tangibles (appearance), responsiveness, assurance, and empathy. Employee empathy is the correct answer as it reflects the ability of service providers to understand and share the feelings of their customers, which is crucial for high-quality service delivery.

Question 7

Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach?

Accepted Answer

Safe Auto Insurance is using a low-cost provider approach by advertising "minimum coverage for minimum budgets." They are targeting customers who are looking for a low-cost insurance option.

Question 8

Consumers look closely at service quality when comparing competing services because

Accepted Answer

Services are intangible and cannot be evaluated before purchase as easily as goods, making quality a critical factor in consumer decision-making.

Question 9

Although it has a strong customer base, Sato Japanese Restaurant rarely attracts customers by methods other than word-of-mouth communication. The manager believes this can be explained by the restaurant's location in a rough area in the city and its run-down appearance. In other words, potential customers are most concerned about

Accepted Answer

The run-down appearance of the restaurant suggests that potential customers are concerned about tangibles, which refer to the physical appearance of the restaurant, such as the decor, cleanliness, and layout.

Question 10

Tina, a waitress at the Riverfront Grill, is angry that a customer complained that his soup was cold because of her slow service. Riverfront owner Max Griffin reminds her that she must focus on service quality as defined by

Accepted Answer

Service quality is ultimately determined by the customer's perceptions and satisfaction. The other options may help ensure quality, but they do not take into account the customer's opinion.

Question 11

A small private college in Tennessee paid a large sum of money to a marketing firm to study the college's current marketing strategy and help develop new strategies for attracting students. The college is having a difficult time evaluating the effectiveness of the marketing firm's work because this type of service has many

Accepted Answer

Credence qualities refer to aspects of a service that are difficult to evaluate even after purchase and consumption, which applies to the scenario where the college cannot easily assess the effectiveness of the marketing firm's strategies.

Question 12

Surveys, focus groups, and customer comment cards are all methods used by service companies to

Accepted Answer

Surveys, focus groups, and customer comment cards are all forms of market research that service companies use to understand customer needs and expectations. By gathering feedback from customers through these methods, service companies can identify areas for improvement and adjust their service offerings to better meet customer needs. This can help them to deliver higher quality services and ensure that they are meeting customer expectations.

Question 13

Many services have aspects that consumers may never be able to evaluate, even years after the purchase and consumption of the service. These attributes are called

Accepted Answer

Credence qualities are attributes of a service that are difficult or impossible for consumers to evaluate even after the purchase and consumption of the service. These attributes may include things like the quality of medical care, the effectiveness of legal representation, or the safety of a particular product or service. Because consumers may not have the expertise or information needed to evaluate these attributes, they must rely on the credibility and reputation of the service provider.

Question 14

In service marketing, the most important link to the customer is

Accepted Answer

Contact employees are the face of the service and have direct interaction with the customer. Their behavior and attitude play a crucial role in creating a positive service experience for the customer, which ultimately builds a long-lasting relationship. Effective advertising, good word-of-mouth communication, tangible aspects of the service, and exceptional service quality are all important in service marketing, but they are not as critical as the role played by contact employees.

Question 15

Jack and Amy are purchasing their first home and have certain expectations for the mortgage company with which they are working. After a long series of "unexplainable" delays, Jack and Amy become very frustrated and decide to stay in their apartment at least another year. The mortgage company failed to provide service within Jack and Amy's

Accepted Answer

The "zone of tolerance" refers to the range of service performance that a customer considers acceptable. The mortgage company's delays likely fell outside this range, leading to Jack and Amy's decision to stay in their apartment.

Question 16

The two levels of expectations that consumers generally have about services are

Accepted Answer

Consumers generally expect services to be acceptable, meaning they meet a certain minimum standard or level of quality, and also desired, meaning they fulfill the consumer's specific needs or wants. The other answer choices do not accurately reflect the two levels of expectations that consumers have about services.

Question 17

Who judges service quality?

Accepted Answer

Customers are the ones who experience the service and can provide feedback on the quality of the service. While employees, the company, independent raters, and marketers may have their own opinions on service quality, ultimately it is the customers' satisfaction that determines the success of a service.

Question 18

Attributes which are assessed only during the consumption of a service are called

Accepted Answer

Experience qualities are those attributes that can only be assessed during the consumption of a service, such as the level of personal attention or the quality of communication between the customer and the service provider. Tangibles and search qualities can be assessed before consumption, while use benefits represent the functional benefits of a service. Credence qualities are attributes that are difficult to assess even after consumption, such as the expertise of a service provider.

Question 19

Antonio is planning a trip to Cancun for spring break. He will likely be able to evaluate the hotel's size, amenities offered, and prices by looking at information on its website. However, he won't be able to evaluate the comfort level of the bed or the friendliness of the employees until he actually spends time at the hotel. The type of evaluation attributes Antonio is using before his trip are called _______ and those he uses during the trip are called _____.

Accepted Answer

Antonio is using search attributes to evaluate the hotel before his trip, such as size, amenities and prices, which he can gather from the hotel's website. During his trip, he can evaluate experience attributes such as the comfort level of the bed and the friendliness of the employees by actually being at the hotel. Therefore, the type of evaluation attributes Antonio is using before his trip are search attributes and those he uses during the trip are experience attributes.

Question 20

Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called ____ quality.

Accepted Answer

Credence quality refers to the aspect of a service that is difficult for customers to evaluate even after consumption, and dentistry falls into this category. Customers may not be able to judge the quality of the service provided by a dentist, as they lack the necessary knowledge and expertise. Therefore, it is challenging for dentists to attract customers based on the credence quality of their service.

Quiz 13: Services Marketing