Deck 10: Designing and Managing Services

Question 1

Which of the following is a characteristic of a service?

A) The service is essentially tangible.
B) The service does not result in the ownership of anything.
C) The service's production is tied to a physical product.
D) Services are typically produced and consumed at different times.
E) A client's presence is not required for rendering a service.

Answer 1

B

Question 2

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

A) inseparable
B) tangible
C) variable
D) perishable
E) intangible

Answer 2

C

Question 3

The private non-profit sector is a provider of services.

Answer 3

True

Question 4

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

A) perishability
B) intangibility
C) heterogeneity
D) inseparability
E) variability

Question 5

Which of the following is True regarding services?

A) Services are typically produced, stored, and then consumed.
B) Services are generally low in experience and credence qualities.
C) Service providers develop similar marketing programs for personal services and business services.
D) There is less risk associated with the purchase of services than with the purchase of goods.
E) Provider-client interaction is a special feature of services marketing.

Question 6

Services high in ________ qualities have characteristics that the buyer can evaluate after purchase.

A) privacy
B) experience
C) credence
D) search
E) stock

Question 7

Bank customers try to reduce uncertainty by drawing inferences from the ________, such as the design of the building's exterior and interior, the layout of the desks, and the length of waiting lines.

A) people
B) symbols
C) equipment
D) place
E) communication material

Question 8

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

A) air travel
B) psychotherapy
C) baby oil
D) a laptop
E) a restaurant meal

Question 9

Services high in ________ qualities have characteristics that the buyers can evaluate before purchase.

A) search
B) experience
C) credence
D) privacy
E) storing

Question 10

The experience qualities of a good or service can be evaluated after purchase.

Question 11

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

Question 12

Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are bought. This characteristic of services is known as ________.

A) inseparability
B) intangibility
C) variability
D) perishability
E) heterogeneity

Question 13

All services require the client to be present.

Question 14

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

A) using differential pricing
B) working with larger customer groups
C) providing complementary services
D) concentrating on physical evidence and presentation
E) standardizing the service process

Question 15

To which of the following categories of services does a cell phone belong?

A) major service with accompanying minor services
B) major service with accompanying minor goods
C) pure service
D) pure tangible good
E) tangible good with accompanying services

Question 16

A brand that is action-oriented and causes consumers to engage in physical actions appeals to the ________ dimension of brand experience.

A) sensory
B) affective
C) behavioral
D) intellectual
E) social

Question 17

A pure service requires a capital-intensive good, but the primary item is a service.

Question 18

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.

A) variability
B) heterogeneity
C) perishability
D) intangibility
E) homogeneity

Question 19

Services high in ________ qualities are those services that have characteristics that the buyer normally finds hard to evaluate even after consumption.

A) trial
B) search
C) experience
D) privacy
E) credence

Question 20

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

A) It is implementing premium pricing.
B) It is trying to cultivate nonpeak demand.
C) It is promoting complementary services.
D) It is putting reservation systems in place.
E) It is implementing differential pricing.

Question 21

Firms have decided to raise fees and lower service for those customers who barely pay their way and to coddle big spenders to retain their patronage as long as possible. This is an example of organizing customers by ________.

A) retailer convenience
B) profit tiers
C) psychographic characteristics
D) social influence
E) customer preference

Question 22

Often, a service problem arises from a customer's lack of understanding or ineptitude. Which of the following can help to minimize customer failures?

A) giving customers exclusive primary service packages
B) redesigning processes to simplify service encounters
C) using differential pricing and shared services
D) minimizing service intangibility
E) working with more customers at the same time

Question 23

Service companies try to demonstrate their service qualities through physical evidence and presentation.

Question 24

A person who has a bad customer experience is more likely to talk about it, but someone who has a good experience will talk to more people.

Question 25

Customers today want separate prices for each service element, and they also want the right to select the elements they want. Customers are said to be pressing for ________ services.

A) complementary
B) perishable
C) variable
D) unbundled
E) shared

Question 26

Susanna wanted to check out a new salon in her locality, so she decided to go for a hair styling session. She was very happy with the way her stylist connected and related with her concerns. She is judging the service based on its ________.

A) promotional marketing
B) functional quality
C) technical quality
D) search qualities
E) external marketing

Question 27

List three steps that service firms can take to increase quality control over services and reduce variability.

Question 28

________ marketing describes the employees' skill in serving the client.

A) External
B) Internal
C) Promotional
D) Direct
E) Interactive

Question 29

The quality of services is independent of who provides them.

Question 30

The answer to the question "was the surgery successful?" represents the technical quality aspect of interactive marketing, one of the three broad areas of service excellence.

Question 31

Interactive marketing describes the employees' skill in serving the client.

Question 32

What the customer expects from a service is called the primary service package.

Question 33

In which of the following does a customer respond to the technical quality of a service?

A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.
B) Kathy tries out a new restaurant every week, because she likes to experience the variety.
C) Bill has gone to the same chiropractor for the past fifteen years, because he is friendly and takes the time to listen to Bill.
D) Ray avoids going to the bank as far as possible because the manager is rude and unhelpful.
E) Alex has no interest in theater, but goes often because her best friend loves plays.

Question 34

List and briefly explain the four distinctive characteristics of services.

Question 35

List and give examples of the five categories of service offerings.

Question 36

Customers cause many service failures, and many firms find managing these more difficult than managing their own failures.

Question 37

Bryson's is a mid-sized hotel chain that is entering a competitive market. The chain needs to differentiate its service from that of competitors, positioning itself as a hotel with excellent service at an affordable price. However, the intangible nature of services makes this difficult to demonstrate. How can Bryson's convey its message effectively to prospective guests using the marketing tool of place?

Question 38

Belling Hotels provides a complimentary breakfast buffet to all guests. This is an example of a ________.

A) primary service package
B) service interface
C) service support
D) service frequency
E) secondary service feature

Question 39

Fingerpainted organizes art camps and craft activities for children. The company has noticed that demand is highest during summer vacations and drops during the year. What can Fingerpainted do to attract customers at other times of year?

Question 40

________ marketing refers to the normal work of preparing, pricing, distributing, and promoting the service to customers.

A) Interactive
B) Internal
C) External
D) Promotional
E) Direct

Question 41

Distinguish external, internal, and interactive marketing.

Question 42

What are the four factors that customers who thrive in customer contact positions have an internal drive to do?

Question 43

The most important determinant of service quality is ________ which refers to the ability to perform the promised service dependably and accurately.

A) empathy
B) assurance
C) responsiveness
D) reliability
E) tangibles

Question 44

Dean recently had a BRZ broadband connection installed. However, the connection was poor, and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. Dean switched to Blue Broadband. Which of the following was the cause of Dean's switching behavior?

A) involuntary switching
B) competition
C) response to service failure
D) service encounter failures
E) inconvenience

Question 45

Discuss how companies are responding to service failures by satisfying customer complaints.

Question 46

The zone of tolerance for a service is the perceived economic benefit in relationship to the economic cost.

Question 47

Define customer failures and list four methods to tackle them.

Question 48

Retail chain REB wants to find out how its customers perceive its services and what it can do to improve these. What methods can the company use to discover this?

Question 49

Some WesternSlope Cleaning customers have long-term contracts for full-service cleaning, while others call the company as and when they require a particular service. The long-term customers have their queries handled by the company's customer service representative. The rest of its customers are directed towards voice messages when they want their inquiries to be processed. What strategy is the company adopting to achieve marketing excellence, and what is the main risk of this strategy?

Question 50

Pricing has no negative effect on customer loyalty.

Question 51

Although Brenda previously used the US Postal Service because it offered better prices on package shipping, she now uses only FedEx, because it gives her the facility of shipping from any FedEx location 24 hours a day. Which of the following factors led to Brenda's customer switching behavior?

A) inconvenience
B) pricing
C) response to service failure
D) ethical problems
E) involuntary switching

Question 52

Which of the following is an example of a gap between service delivery and external communications?

A) The employees at GBL have been asked to take time to listen to customers, but they must serve them fast as well.
B) Amanda chose to shop at Alison's Fashions because the store's website offered on-the-spot alterations. However, when she did buy a dress, she had to wait a week to get it altered.
C) Customers at LUX appreciate the personalized services the salespeople offer, but do not like the store design.
D) Clearwater Spa attendants are well trained in massage therapy and the services they offer, but customers rarely return because they don't like the attendants' impersonal service.
E) When sales dropped, Styx modernized its stores in order to retain customers, but didn't realize that the product quality was the main problem.

Question 53

When Aaron went to his doctor for his annual checkup, he was asked to undergo a number of tests. Although the doctor assured Aaron that the tests were routine, Aaron thinks that the doctor is hiding a grave problem from him. What kind of a gap is apparent here?

A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception

Question 54

Which of the following is an example of self-service technologies?

A) calling for a pizza delivery
B) buying a service contract for a computer
C) printing tickets from a home computer
D) visiting a parts-and-service department
E) offering secondary service features

Question 55

Which of the following is an example of a gap between management perception and the service-quality specifications?

A) The college brochure showed state-of-the-art classrooms, but when the visitors walked in, they saw peeling walls and dull lighting.
B) A nurse visits a patient to show care, but the patient interprets this as an indication that something is very wrong.
C) The hotel administrators think that guests want better food, but guests are more concerned with the courtesy of the waiters.
D) A service center manager has asked his subordinates to provide fast service, but has not specified a time for the service to be performed.
E) Customer service representatives are asked to give ample time to each customer, but must serve a minimum of 50 customers a day.

Question 56

Aida decided to switch doctors after she had to wait two and a half hours at her scheduled appointment to see her doctor. She experienced the ethical problem factor that leads to customer switching behavior.

Question 57

One way marketers are addressing consumers' desire for convenience in services is by providing ________.

A) self-service technologies
B) product support services
C) perceived service and expected service
D) core service failure
E) involuntary switching

Question 58

If expected service falls below perceived service, customers are disappointed.

Question 59

The zone of ________ is a range where a service dimension is deemed satisfactory, anchored by the minimum level consumers are willing to accept and the level they believe can and should be delivered.

A) immunity
B) tolerance
C) reliability
D) assurance
E) flexibility

Question 60

Not all self-service technologies improve service quality, but they can make service transactions more accurate, convenient, and ________.

A) faster
B) "high touch"
C) interactive
D) technical
E) internal

Question 61

The customer service representatives at G.K.'s Heating and Cooling must know as much about the products as possible, so that they can help customers solve their difficulties without sounding hesitant or unsure of themselves. This is an example of a high-quality strategy for ________.

A) life-cycle cost
B) postsale service
C) self-service technologies
D) out-of-pocket costs
E) expectation management

Question 62

Out-of-pocket costs are what the customer spends on regular maintenance and repair costs.

Question 63

Value-augmenting services include installation, staff training, maintenance and repair services, and financing.

Question 64

If the length of a product's downtime increases, the cost incurred decreases.

Question 65

Betty's favorite restaurant is Zing's. The last time Betty visited Zing's, the food was excellent, and the service was attentive. Tonight is her anniversary, and she was looking forward to an outstanding experience. After the meal, she starts feeling that the service was not up to par and the evening was not as successful as she had hoped. What elements of this story tell you that the problem, according to the service-quality model, is a gap between perceived service and expected service?

Question 66

A product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value is known as the product's activity cost.

Question 67

For a new manufacturer managing product support for its equipment, what is usually the first strategy for postsale service?

A) letting customers hire their own service people to work on-site
B) letting independent services handle repairs and maintenance
C) pricing equipment high and charging low prices for service
D) running the company's own parts-and-service department
E) switching maintenance services to authorized distributors

Question 68

In the customer support center where Carl works, employees are taught to make conversation to put customers at ease. As customers don't like being kept waiting, they must also try to minimize the time that customers spend waiting for service. Thus, when there are a number of customers lined up, Carl usually has to decide whether to answer a customer's questions in detail or move on quickly to the next customer. The firm's standards are not clear on how they want him to perform. When asked, his boss answers, "You make the decision." This is an example of which service-quality gap?

Question 69

Package delivery company UPS uses distinctive brown trucks that have become almost an icon. Explain why such physical facilities are important for UPS while it provides package delivery services.

Question 70

The service-quality model highlights the main requirements for delivering high service quality. Name and describe the five gaps that cause unsuccessful delivery.

Question 71

A product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________ cost.

A) service warranty
B) out-of-pocket
C) life-cycle
D) facilitating services
E) value-augmentation

Question 72

Regular maintenance and repair costs are known as ________ costs.

A) service contract
B) out-of-pocket
C) fixed
D) facilitating services
E) value-augmentation

Question 73

A new company called OilMasters makes and sells oil-drilling equipment such as pumpjacks. The pumpjack is an essential part of drilling operations, and customers need the equipment to be operational at all times. What would be a typical pattern for OilMasters to develop a postsale service strategy?

Question 74

Johnson Controls reached beyond selling climate-control equipment and components by selling the service of managing facilities in a way that optimizes energy use in heating and cooling. This is an example of providing ________.

A) facilitating services
B) a primary service package
C) value-augmenting services
D) service contracts
E) service warranties

Question 75

When sellers agree to provide free maintenance and repair services for a specified period of time at a specified contract price, they are offering ________.

A) a complementary service
B) payment equity
C) a service blueprint
D) differential pricing
E) an extended warranty

Question 76

Expensive equipment manufacturers not only install the equipment but also train the staff and undertake the maintenance and repair activities of the equipment. By doing so, they are providing ________.

A) payment equity
B) value-augmenting services
C) differential pricing
D) facilitating services
E) a primary service package

Question 77

List the eight different variables associated with customer switching behavior, and give an example of each.

Question 78

Based on the service-quality model, researchers have identified five determinants of service quality. List these determinants in order of importance.

Question 79

Traditionally, customers have had three specific worries about product service. What are they?

Question 80

An oil drilling company ordered a pumpjack for its operations. The pumpjack manufacturing company not only set up the machine but also provided training to the people who needed to use it. It also let the drilling company know that it would be undertaking the maintenance and repair services for the pumpjack. What kind of a service is the manufacturing company providing?