Deck 12: Managing Services

Question 1

Before moving out of their apartment,Brad and Kim Westgate decided to have their carpets cleaned by Service Master,a company specializing in professional carpet cleaning.The carpet cleaners arrived at Brad and Kim's apartment,unpacked their equipment,cleaned the carpets,packed up their tools,and drove away in their bright yellow van.The service provided by Service Master,could not be held,touched,or seen before the purchase decision.This scenario illustrates the _____ of services.

A)inconsistency
B)inseparability
C)inventory
D)intangibility

Answer 1

D

Question 2

Sarah has a backache due to overexertion.She believes a massage would loosen her back muscles and make her feel better.She is concerned because a massage unlike a pair of shoes cannot be felt before she buys it.Which characteristic of services is she concerned about?

A)incongruity
B)inconsistency
C)intangibility
D)inseparability

Answer 2

C

Question 3

Jane West is just graduating with an MBA and is being recruited by a financial securities brokerage as a sales representative.She has had 10 years of sales experience in selling industrial supplies to the steel industry.She was quite successful in her previous experience,but is worried that selling financial instruments may be more difficult.What factor could be the major reason for her worry?

A)the problem that her services and the products she sells are inseparable
B)the fact that services are intangible and, therefore, very different from her previous experience
C)the marketing program of financial instruments is very inconsistent
D)the cost inventory management system for reimbursing her when she sells the securities

Answer 3

B

Question 4

Which of the following statements about services is true?

A)In Canada, the service sector is responsible for over 75 percent of its workforce.
B)The marketing of services is the same as the marketing of goods.
C)Services are both tangible and intangible items.
D)Two out of ten Canadians work in the services industry.

Question 5

All of the following might be used to create an authentic experience for a customer,except:

A)allow consumers to participate in the production process
B)provide personal interaction, rather than automation
C)allow consumers to share their interests
D)have defined services for consumers so they know what to expect

Question 6

Each of the following can influence customers' perceptions of the authenticity of their service experiences EXCEPT:

A)service standardization.
B)personal interaction.
C)social processes that allow customers to share their interests.
D)allowing consumers to participate in the production process.

Question 7

The elements that make services unique are the four Is.The four Is are:

A)inflexibility, intangibility, inconsistency, and inseparability.
B)intangibility, inconsistency, inseparability, and inventory.
C)incompatibility, inconsistency, inseparability, and inventory.
D)invisibility, inconsistency, inseparability, and intangibility.

Question 8

Activities provided by Deloitte Consulting,PwC,Bain & Co,and McKinsey would most likely be classified as:

A)tangible activities or benefits provided to consumers in exchange for money or some other value.
B)intangible items provided by an organization to consumers in exchange for money or something else of value.
C)philanthropic activities performed in exchange for monetary remuneration.
D)any activity, either tangible or intangible provided by an organization in exchange for monetary remuneration.

Question 9

Obtaining mortgage advice from a financial institution would be best classified as a(n)

A)production.
B)evidence.
C)service.
D)goo

Question 10

Consumers are no longer content with affordable,high-quality purchases; they want offerings that reflect their self-image-who they are or who they aspire to be.The growth of produced,sometimes contrived experiences,however,has led consumers to search for _________ offerings.

A)affordable
B)entertaining
C)memorable
D)authentic

Question 11

NIKEiD.com is an example of a service that allows for:

A)customization
B)personal touch, not automation
C)social media commenting
D)restrictive business growth

Question 12

Allstate Insurance stresses to its card holders that help is "just one call away",and that "you are in good hands." Which statement below best describes what Allstate is offering?

A)The value of the service provided can only be determined using subjective criteria.
B)The services cannot be held, seen, or touched before the purchase decision.
C)The service cannot be described only experienced.
D)The quantity can vary.

Question 13

Consumers have more difficulty evaluating services than they do products; the difficulty results from the:

A)intangibility of services.
B)incongruity of services.
C)inseparability of services from consumers.
D)inflexibility of services.

Question 14

Each of the following is an example of how services to consumers are adding dimensions of authenticity EXCEPT:

A)Nike's customization service, NIKEiD.com, allows customers to design shoes according to their exact preferences.
B)Progressive Insurance sends "Immediate Response Vehicles" to the site of an accident so that an adjuster can handle emergencies.
C)An increase in automated bank machines (ABMs), kiosks, and credit card readers.
D)Retailers providing dressing rooms large enough for friends and electronic mirrors that allow texting anyone whose opinion might be neede

Question 15

Sarah has a backache due to overexertion.She believes a massage would loosen her back muscles and make her feel better.She is concerned because a massage unlike a pair of shoes cannot be felt before she buys it.When she makes her appointment,she examines the training certificates on the wall,and she carefully reads a brochure that contains testimonials of satisfied customers.The use of certificates of training and customer testimonials is one way the service provider is trying to deal with the service characteristic of:

A)incongruity.
B)inconsistency.
C)intangibility.
D)inseparability.

Question 16

Walt Disney was one of the first to recognize the importance of sights,sounds,tastes,aromas,and textures when he created Disneyland.This effort by Walt Disney focuses on the customer ______________.

A)experience
B)entertainment
C)service
D)techno-entertainment

Question 17

According to the text,service providers are likely to see success in their business if they can:

A)create and deliver authentic experiences
B)provide the lowest cost service at the highest price
C)derive business efficiencies for using automation to deal with consumers
D)restrict consumer's comments on social media

Question 18

Which of the following statements about services is true?

A)In Canada, the service sector generates 70 percent of Canada's annual GDP.
B)The marketing of services is the same as the marketing of goods.
C)Services are both tangible and intangible items.
D)Two out of ten Canadians work in the services industry.

Question 19

Hard Rock Cafés are designed to spread the spirit of rock 'n' roll by delivering an exceptional entertainment and dining ____.

A)credence
B)tangibility
C)search
D)experience

Question 20

While a McDonald's hamburger is generally prepared and tastes the same from store to store,how the teller takes and processes your order may be different.The reason for this is:

A)incongruity
B)inconsistency
C)inventory costs
D)inseparability

Question 21

A situation where a service provider is available but there is no demand is called:

A)off-peak pricing.
B)idle production capacity.
C)static demand.
D)capacity management.

Question 22

Andrea Arena is the owner of 2 Places at 1 Time,a concierge company.She and her staff of 60 perform everyday services such as walking the dog,picking up cleaning,waiting for the repairman,and going to the post office for people who are too busy to perform these simple acts themselves.One way she tries to ensure ______ of services for her regular customers is to make sure that the same person is always assigned to work for them.

A)consistency
B)tangibility
C)congruity
D)flexibility

Question 23

Your good friend,Kevin,recommends you use his tax auditor,Ed,to file your taxes for the upcoming year.Kevin has used Ed for the last five years and always found his pricing and delivery of services excellent.This concept is best described by which of the following words?

A)intangible.
B)invisible.
C)inconsistent.
D)inseparable.

Question 24

Betty Smith operates a wedding preparation service that will aid brides-to-be in planning their weddings by providing needed equipment,supplies,and services.To maintain a quality image,Betty provides training for each of her employees.What unique aspect of services is Betty trying to address?

A)perishability
B)intangibility
C)inconsistency
D)inseparability

Question 25

The inventory costs of services include:

A)equipment and training costs.
B)management and material costs.
C)service delivery and spoilage costs.
D)salary of service provider and equipment costs.

Question 26

Figure: 12-2
According to the service continuum (Figure 12-2),which of the following organizations has the highest level of intangibility?

A)tailored suit
B)teaching
C)advertising agency
D)fast-food restaurant

Question 27

Students from Berry College attended a performance at nearby Shorter College and were extremely impressed with the dance troupe that was the opening act.As soon as the students returned to Berry,they made arrangements for the entertainers to appear on their campus.On the day of the concert the venue was packed with students,but the quality of the performance was much lower than they had seen at the Shorter campus.The Berry students' disappointment was the direct result of which characteristic of services?

A)perishability
B)intangibility
C)inconsistency
D)inseparability

Question 28

Organizations attempt to reduce the inconsistency in the delivery of services through:

A)higher incentives to employees for satisfactory performance.
B)collaboration.
C)the reduction of customer contact points in the service delivery process.
D)standardization and training.

Question 29

The emergency room staff in Toronto's largest hospital is surprised and pleased when a four-day Canada Day weekend brings fewer accident victims in for treatment.They know from experience that such public holidays have high rates of accidents.For the hospital business office,the lower demand for the emergency room services means:

A)a break in the service continuum.
B)its services are no longer tangible.
C)its services can be separated from the staff.
D)the hospital has idle production capacity.

Question 30

Inseparability in services means:

A)consumers see little variation from one service provider in an industry to another.
B)consumers are unable to differentiate price from quality.
C)consumers cannot evaluate a service until it is being utilized.
D)consumers cannot separate the service from the deliverer of the service.

Question 31

Many services,such as banking and insurance,can now be delivered electronically,often requiring no face-to-face customer interaction,as with,for example,Bank of Montreal's web-based banking service.With particular respect to the amount of interaction between the consumer and the service deliverer,which unique characteristic of services is illustrated in this example?

A)intangibility
B)perishability
C)incongruity
D)inseparability

Question 32

Idle production capacity can be reduced by:

A)using a commission compensation system.
B)hiring additional full-time personnel.
C)allowing personnel to work overtime.
D)decreasing the number of work days per week, but increasing the hours per day.

Question 33

Some firms,such as financial services,insurance,and consulting offer services to hundreds of different individuals and often sell themselves on the benefits of using their services.The concept of their services which are ______________,however,can often be delivered _____________ from client to client depending on different staff capabilities.

A)intangible; inconsistently
B)inconsistent; intangibly
C)inseparable; intangibly
D)inventory-based; inconsistently

Question 34

Which group of activities below is ranked from the LOWEST cost of inventory to HIGHEST cost of inventory?

A)hair salon - dry cleaner - insurance company
B)hotel - airline - amusement park
C)auto repair centre - hotel- hospital
D)auto repair centre - dry cleaner - insurance company

Question 35

When Telma got her drive-thru order at the fast-food restaurant,she thought the employee who took her money and gave her order was cold and unfriendly.Furthermore,the food was cold and gave her indigestion.Every time she has the opportunity,she says something derogatory about the restaurant because she does not distinguish the deliverer of the service (the employee who prepared her food and gave it to her)from the service (the fast-food restaurant).Telma is having a problem with which unique characteristic of services?

A)intangibility
B)perishability
C)incongruity
D)inseparability

Question 36

Which statement below is incorrect as it relates to the concept of inseparability?

A)the first dimension is the inseparability of production and consumption
B)the second dimension is that, in most cases, the consumer cannot (and does not) separate the deliverer of the service from the service itself
C)the third dimension is that for many products, separation of production and consumption is easy for the consumer to complete
D)receiving a college or university education is an example of the second dimension

Question 37

Don is graduating and takes his relative to dinner after the ceremony.At the restaurant,the waitperson never fills up their water glasses,ignores their requests and seems to "forget" about their table.Don notes that the last time he was at this same restaurant the experience was completely different (and MUCH better).This scenario illustrates the _____ of services.

A)perishability
B)inconsistency
C)intangibility
D)inseparability

Question 38

Which job below is likely to have the lowest idle production capacity?

A)a physician that gets paid for a full shift, regardless if she sees any patients
B)a stockbroker who works purely on commission for his clients
C)an insurance saleswoman who receives a base pay and commission based on new sales
D)a part time employee at Booster Juice

Question 39

The Toronto Maple Leafs hockey team may look like potential Stanley Cup winners on a particular day but lose by ten goals the next day.This illustrates the _______ nature of services.

A)intangible
B)invisible
C)inconsistent
D)inseparable

Question 40

All of the following examples a consumer might have difficulty separating the deliverer of the service from the service itself,except:

A)a dental visit
B)submitting the tax return online
C)a university marketing class
D)a haircut.

Question 41

West Edmonton Mall is one of the world's largest malls.Businesses that operate in the mall range from rollercoasters to barbershops.West Edmonton Mall likely has a wide:

A)product continuum.
B)tangibility line.
C)inseparability span.
D)service continuum.

Question 42

When Brad heard,"There is no waiting in checkout lines 2,4,and 5," he knew that the supermarket had:

A)off-peak convenience.
B)idle production capacity.
C)static demand.
D)intangibility.

Question 43

According to the service continuum,which of the following organizations has the highest level of intangibility?

A)realty agency
B)teaching
C)advertising agency
D)fast-food restaurant

Question 44

Services that are found at a rest stop along a major highway usually consist of only fast food restaurants and fuel stations.The service continuum at a rest stop is likely:

A)narrow
B)wider than a mall
C)wide
D)a rest stop only sells products

Question 45

Vacations and haircuts are two examples that are near the ____________ of the goods-service continuum and are high in _______________ properties

A)middle; experience
B)left-side; experience
C)right-side; experience
D)middle; credence

Question 46

Figure: 12-2
According to the service continuum in Figure 12-2,which of the following organizations has an almost perfect balance of tangible and intangible attributes?

A)Tailored suit
B)Tutoring service
C)Advertising agency
D)Fast-food restaurant

Question 47

Sarah has a backache due to overexertion.She believes a massage would loosen her back muscles and make her feel better.She is concerned because a massage unlike a pair of shoes cannot be felt before she buys it.Sarah realizes massages have _____ properties.

A)search
B)form
C)experience
D)credence

Question 48

The "service continuum" is a range from the tangible to the intangible or good-dominant to service-dominant offerings.According to our text,which item is equally weighted between goods and services?

A)Salt
B)Fast-food restaurant
C)Advertising agency
D)Teaching

Question 49

Services such as restaurants and child care are evaluated on _____ properties.

A)search
B)form
C)experience
D)credence

Question 50

Characteristics of tangible goods,such as colour,size,and style are considered _____ properties.

A)search
B)form
C)experience
D)credence

Question 51

Which of the services below would be an example of a 'core service' for a financial institution?

A)bank account
B)drive-through banking
C)ABMs
D)information delivery (monthly statements)

Question 52

Sarah has a backache due to overexertion.She believes a massage would loosen her back muscles and make her feel better.She is concerned because a massage,unlike a pair of shoes,cannot be felt before she buys it.Sarah wishes that the massage had _____ properties.

A)search
B)form
C)experience
D)credence

Question 53

One of the primary difference between tangible goods and services involves the consumer's ability to make pre-purchase evaluations.For example,consumers can quite easily make comparisons and evaluations of clothing,automobiles,and appliances before making a purchase.On the other hand,consumers can evaluate services such as restaurants,beauty salons,and laundromats only during or after the purchase.Indeed,tangible products have _____ properties,while services have _____ properties.

A)consistent; inconsistent
B)search; experience
C)inconsistent; consistent
D)experience; search

Question 54

Andrea Arena is the owner of 2 Places at 1 Time,a concierge company.She and her staff of 60 perform everyday services such as walking the dog,picking up cleaning,waiting for the repairman,and going to the post office for people who are too busy to perform these simple acts themselves.She is often hired by major corporations to perform services for their harried executives.Her customers have to evaluate the services provided by 2 Places at 1 Time using _____ properties.

A)search
B)form
C)experience
D)credence

Question 55

Air Canada operates five flights daily between Toronto and Phoenix during the winter.One flight leaves Phoenix at 12:10 AM.The plane,a Boeing 737,has a capacity of 120 passengers.During the past month,the flight has averaged only 24 passengers,a load factor of 20 percent.A load factor of 50 percent (60 passengers)is needed for the flight to break-even.What unique aspect of services does this situation describe?

A)service inventory
B)intangibility
C)inconsistency
D)inseparability

Question 56

Considering the concept of a service continuum,how would one characterize a tailored suit?

A)a pure good
B)a pure service
C)a service
D)a good-service mix

Question 57

Services performed by plastic surgeons or lawyers are primarily evaluated on _____ properties.

A)search
B)form
C)indirect
D)credence

Question 58

Andrea Arena is the owner of 2 Places at 1 Time,a concierge company.She and her staff of 60 perform everyday services such as walking the dog,picking up cleaning,waiting for the repairman,and going to the post office for people who are too busy to perform these simple acts themselves.She has often been hired by major corporations to perform services for their harried executives.In 1999,she had 108 employees,but economic momentum has slowed,and many of her major clients have sliced their budgets and eliminated perks like her service.At the point in time when Arena had more employees than she had need of,2 Places at 1 Time was experiencing:

A)off-peak pricing.
B)idle production capacity.
C)static demand.
D)capacity management.

Question 59

Which of the organizations listed below has the lowest inventory carrying cost?

A)restaurant
B)automobile repair
C)financial services (insurance)
D)real estate agencies

Question 60

Considering the concept of a service continuum,how would one characterize receiving a semester of lectures on marketing?

A)a pure good
B)a pure service
C)a service
D)a goods-service mix

Question 61

In today's highly competitive financial services industry,the traditional distinctions between banks and brokerage firms are becoming blurred.For example,while banks still offer "traditional products" such as chequing and savings accounts,certificates of deposits and loans,they now offer mutual funds,insurance and even provide "financial advice," similar to the products and services offered by brokerage firms.Thus,in today's changing marketplace,banks would most likely be evaluated on which properties of the purchase process?

A)Search properties
B)Credence properties
C)Experience properties
D)All of these answers are correct

Question 62

Andrea Arena is the owner of 2 Places at 1 Time,a concierge company.She and her staff of 60 perform everyday services such as walking the dog,picking up cleaning,waiting for the repairman,and going to the post office for people who are too busy to perform these simple acts for themselves.Her regular customers describe her as caring and willing to treat each of the jobs they need done as if it were the most important job she had to perform.In which dimensions of service quality,does Arena excel?

A)reliability and credibility
B)assurance and tangibles
C)responsiveness and empathy
D)empathy and credibility

Question 63

After receiving your air ticket,you realize it is an aisle seat; you dislike aisle seats because the drink cart always hits your elbow! You head to the check-in counter where two flight attendants are conversing among themselves,seemingly ignoring you.You wait for one minute before clearing your throat,and asking if there are any window seats available.The flight attendants were not very _____________ to you standing there.

A)reliable
B)responsive
C)courteous
D)empathetic

Question 64

How a person establishes expectations for a service they have never purchased but plan to purchase is influenced by each of the following EXCEPT:

A)word-of-mouth communications.
B)personal needs.
C)previous experience.
D)promotional activities.

Question 65

Using a _______________ is often a great way to further develop a ______________ between consumer service expectations and actual experience.

A)customer contact audit; gap analysis
B)gap analysis; customer contact audit
C)goods-service continuum; gap analysis
D)customer contact audit; goods-service continuum

Question 66

Research has shown that customers who experience a service failure will __________ their satisfaction if the service provider makes a sincere recovery effort.

A)decrease
B)increase
C)stay the same
D)lower

Question 67

Using a workflow mapping tool such as Microsoft VISIO would come in handy when creating a:

A)gap audit
B)customer contact audit
C)touch point audit
D)contact point audit

Question 68

The two basic components of a customer's evaluation of services are:

A)expectations and customer contact.
B)expectations and actual experience.
C)intangibility and inconsistency.
D)experience and credence.

Question 69

A homeowner consulted a lawyer to see if he could prevent construction of a high-rise apartment building in his neighbourhood.On the advice of the lawyer,he filed a suit to stop construction.Even though the homeowner did exactly as the lawyer instructed him,he still lost the suit.In spite of the loss,he had to believe the lawyer did the best job he could because he did not know the legal system well enough to think otherwise.This case shows how a service can exhibit _____ properties.

A)adherence
B)credence
C)capacity
D)contact

Question 70

Many restaurants now ask consumers to evaluate their experience on a short questionnaire when they pay their bill.This assessment of consumer expectations and the actual experience is called a ____.

A)gap analysis
B)service survey
C)customer profile analysis
D)customer contact audit

Question 71

Many service companies go to great lengths to ensure the _____________ aspects of the services convey the appropriate image and serve as surrogate indicators of the _____________ service to be provided.

A)intangible; tangible
B)tangible; intangible
C)physical location; tangible
D)intangible; product-based

Question 72

Arnett is looking for a new web portal to use to access information that interests him on the Internet.The one he currently uses is too cluttered with ads and has several links that do not work.While the site itself works fine,he is unhappy with its appearance and the fact that the company managing the site has done nothing to upgrade it.In terms of the service quality dimensions,Arnett is most unhappy with which dimension of this service?

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

Question 73

Burger King is attempting to measure the difference between their customers' expectations and experiences by using a 24-hour hot line to receive 4,000 customer calls a day.What is this type of activity called?

A)gap analysis
B)feedback analysis
C)promotional evaluation
D)pull strategy

Question 74

Service firms are realizing that all _____ aspects of quality must be present for a success _________________ program.

A)five; customer-experience management (CEM)
B)five; customer-relationship management (CRM)
C)four; customer-experience management (CEM)
D)four; social-experience management (SEM)

Question 75

Fred White has just accepted a sales position with the ABC Health Maintenance Organization,a major provider of health care services.He had been selling medical supplies for some time and found that he understood how customers bought medical supplies.Which of the following is likely to be a characteristic of the health care service purchase?

A)Customers are engaged in a low involvement purchase process.
B)The quality of services can be predetermined in a similar manner to tangible products.
C)The buyer does not participate in producing the service.
D)A consumer may not have the ability to judge the quality of medical care service even after the service has been provide

Question 76

A new homebuilder has developed a '21 Point Touchpoint Map' for interested homebuyers.The points range from when the homebuyer makes an initial inquiry all the way to signing the closing agreement.The homebuilder has found that when consumers make it past the first 15 points,they have a 90 percent closing rate.This Map,is an example of a(n):

A)goods-service continuum.
B)customer contact audit.
C)gap analysis.
D)experience-credence audit.

Question 77

When Theresa Martinez relocated from British Columbia to Ontario,she needed to find a bank with offices in her new province.Several banks offered the banking products (checking and savings accounts,loans,certificates of deposit)and financial products (mutual funds,insurance)available from her former bank,and she selected The Royal Bank.Later Theresa was impressed by the availability and willingness of people (tellers,personal bankers)to help her when she had questions.In this case,The Royal Bank affected Theresa's evaluation of the purchase through its:

A)credibility properties.
B)characteristic properties.
C)experience properties.
D)gap analysis.

Question 78

When selecting a place to eat,Andy always looks at the rating the restaurant received in the local restaurant guide.Since the guide is able to evaluate the parts of the restaurant Andy cannot see,he believes this is a good way to predict the quality of the service he will receive.Andy bases his opinion of restaurants on the basis of which service quality dimension?

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

Question 79

Sterile Feral,Inc.,is a non-profit organization that catches wild or stray cats,neuters them,vaccinates them,and releases them back into the wild.The personnel of the non-profit organization are caring people who love animals and try to do what they can to meet the needs of each cat they care for.The caring nature of the personnel relates to which service quality dimension?

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

Question 80

Sterile Feral,Inc.,is a non-profit organization that catches wild or stray cats,neuters them,vaccinates them,and releases them back into the wild.Veterinarians are particularly impressed with how dependably the organization is able to perform its promised service.With which service quality dimension are veterinarians most impressed?

A)assurance
B)tangibles
C)reliability
D)credibility