Deck 13: Service As the Core Offering

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.

Answer 1

True

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.

Answer 2

True

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.

Answer 3

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.

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.

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.

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.

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.

Question 9

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

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.

Question 11

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

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.

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.

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.

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.

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.

Question 17

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

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.

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.

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.

Question 21

When someone buys a car insurance policy, he or she buy _______.

A) The written policy that comes from the agent
B) The office staff, agent and brand of the insurance company
C) The promise that if something happens to the car, the insurance company will fix it or replace it
D) The agreement to be there at the site of the accident
E) None of the above

Question 22

It is said that services are _________ rather than produced.

A) Separable
B) Intangible
C) Performed
D) Rationed
E) All of the above

Question 23

Disney theme parks have a reputation for __________.

A) Fun employees
B) Service with a smile
C) Service excellence
D) Great guest amenities
E) None of the above

Question 24

The percentage of jobs in the United States that are service related equal about __________.

A) 20 percent of all jobs
B) 40 percent of all jobs
C) 60 percent of all jobs
D) 80 percent of all jobs
E) 100 percent of all jobs

Question 25

The role of human service providers in the customer service experience allows the service provider to __________.

A) Allow for new products to be promoted
B) Stimulate the formation of the same experience for all people
C) Allow considerable customization in delivering the service
D) Create profit pockets by encouraging the ordering of more expensive options
E) None of the above

Question 26

It is said that customers do not buy goods or services: They buy _______.

A) Products that come with some services
B) Offerings which render services which create value
C) Services that come in a variety of sizes and shapes
D) Technology that is a service orientation
E) All of the above

Question 27

Disney approaches service recovery on _____________.

A) A case by case basis based upon the empowered cast members
B) A basis of the total amount spent by the customer
C) A formula that insures all customers are treated equally when a problem occurs
D) The basis of the greatest harm theory
E) All of the above

Question 28

The traditional division between goods and services is outdated.The shift in focus to services is a shift from the means and the producer perspective to the __________________ perspective.

A) Necessary and income
B) Utilization and customer
C) Time and union
D) Social and employee
E) None of the above

Question 29

One way to make a service more tangible is to have customers ______.

A) Read about it on a web site
B) Experience the service through a trial period of time
C) Receive a brochure that highlights the advantages and disadvantages of the service
D) Google the service and see who provides the services in their area
E) None of the above

Question 30

Service jobs have _________ in the United States over the last 30 to 40 years.

A) Decreased
B) Increased
C) Stayed the same
D) Been in decline
E) None of the above

Question 31

Benihana restaurants have the tag line, "an experience at every table." This conveys that _________.

A) Service is a drama to get customers to new heights of involvement
B) Service is a lot of rote memory by the workers at the restaurant
C) Service is a combination of product excellence combined with some unique product features
D) Service is not repeatable so get used to differences at every table of the restaurant.
E) Service is easy to create

Question 32

The core of Disney brand strategy for its theme parks, cruise lines, and cast members is __________.

A) Marketing
B) Value based on price
C) Value based on fun
D) Service
E) None of the above

Question 33

Intangibility means _________.

A) A service can not be seen, heard, tasted or felt by a customer
B) You can carry a service out with you from the retailer
C) You can not see the product or feel it
D) You can sense the service through the seven senses of the body
E) None of the above

Question 34

The service sector accounts for ____________ of the Gross Domestic Product of the United States.

A) 25 percent
B) 50 percent
C) 75 percent
D) 100 percent
E) None of the above

Question 35

When it is said that a service can not be separated form the provider, a service's quality can only be as good as that of the provider him/herself, the service is said to have __________.

A) Variability
B) Creativity
C) Non-valence reward for returns
D) Nordstrom's concept
E) All of the above

Question 36

Firms are sometimes reluctant to invest in great service, largely because ___________.

A) It is frustrating to change employees actions
B) It is difficult to have consumers be aware that they are receiving great service
C) It is difficult to sell Wall Street on the idea
D) It takes time and patience before a return on the investment is noticeable
E) None of the above

Question 37

Goods, in general, tend to be much more ___________ than services because once a firm has invested in continuous process improvement and quality control in operations, products flow off the line.

A) Flexible
B) Standardized
C) Homogenized
D) Durable
E) All of the above

Question 38

Disney Cruise Lines measures satisfaction across __________.

A) All employees
B) The ships' captains
C) The entire guest experience
D) All of the ships features
E) None of the above

Question 39

A service is a product in a sense that it represents a bundle of benefits that can satisfy customer wants and needs, yet it does so __________.

A) Without people
B) Without price perceptions
C) Without physical form
D) Without time utility
E) None of the above

Question 40

One of the strategies that a service company has to do is to take its intangible service and make it __________.

A) More tangible
B) More like other companies in the industry
C) Less understandable
D) Look like a brand that people like
E) All of the above

Question 41

One of the central concepts of the service-profit chain is _______.

A) Have all members of the firm memorize the mission of the firm and be able to recite it from memory
B) Create an environment in which all employees can be successful
C) Allow employees to play computer games at their work station when they are tired
D) Create elements of change within people to do things above what their capabilities are
E) None of the above

Question 42

One of the key ways to instill a customer-centric culture in the firm is to _____________.

A) Have each member of the firm learn the company song
B) Apply the fairness test to all customer contacts
C) Align the firms properties to the number of customers by zip code and by SIC code
D) Instill an organization-wide focus on understanding customer's requirements
E) None of the above

Question 43

The Zone of Defection describes the area where ______________ reside and are prone to leaving a business and defect to competitors.

A) Slightly satisfied and satisfied customers
B) Extremely dissatisfied and somewhat dissatisfied customers
C) Customers who have one bad experience with the firm
D) Satisfaction is no longer an issue and customers become terrorists against the company
E) None of the above

Question 44

There is strong evidence that attention to internal service quality and to employee satisfaction, productivity and retention results in _______.

A) Happy employees but less than satisfied customers
B) Stronger value to external customers of a service
C) Employees who are internally focused on their own needs
D) Increased costs due to high employee expenses
E) None of the above

Question 45

Southwest Airlines does not promise assigned seating, first class flying, or even "real food" on flights, but what it does promise is _________.

A) Consistent colors of the planes
B) Fun and on-time flights
C) Technology that exceeds the competition
D) All of the above
E) None of the above

Question 46

In the Service-Profit Chain, customer satisfaction leads to customer ___________ that carries with it retention, repeat business, and referral business.

A) Feed-back
B) Profundity
C) Legality
D) Ethics
E) Loyalty

Question 47

Asok, a college student, tells his friends about a new bar and grill in town and tells them they need to try it.Asok is known as a ________.

A) Satisfied customer
B) Loyal customer
C) Customer advocate
D) Marketing centric
E) None of the above

Question 48

When one says that a firm is customer centric, it implies that the company _________.

A) Does marketing research on all the market segments and creates ads that focus on individual market segments
B) Develops products and services that sell well in both large and small markets including some international markets
C) Places the customer at the center of everything that takes place both inside and outside the firm
D) Places the employee and the customer at the top of the organization chart
E) None of the above

Question 49

José, an employee of a company which has worked hard to have a customer mind set, understands the challenges he and other members of the firm believe ______.

A) Whether internal or external to the firm, satisfying customers is central to doing his job well
B) That all members of the firm must get to work on time and start their computers by 8:30 am
C) Management must tell them when to give rebates to customers
D) That all employees should have equal access to parking along side managers or even the CEO
E) All of the above

Question 50

When a company feels it is following a customer-centric philosophy with a high degree of customer orientation, it may ________________.

A) Keep everyone up to date on the progress of the current legislation
B) Generate an understanding of the marketplace and disseminate that knowledge to everyone in the firm.
C) Instill a team spirit for the company baseball team
D) Create a customer database
E) None of the above

Question 51

The service-profit chain is designed to help managers better understand ____________.

A) The relationship between profit and production
B) The relationship between customer loyalty, revenue growth and higher profits
C) The relationship between all the service employers and customer wants and needs
D) The relationship that exists between managers and employees
E) None of the above

Question 52

When a company underpromises but overdelivers with respect to its services, it is said to be practicing ___________.

A) Inferior service management
B) Sandbagging
C) Customer salience management
D) Customer expectations management
E) None of the above

Question 53

Harrah's Entertainment has found that it is best to invest in customers who fall into _________ because they yield more return on investment.

A) Zone of defection
B) Zone of affection
C) Zone of indifference
D) Zone of leaving
E) None of the above

Question 54

Employees in the Service-Profit Chain are given training, recognition, and tools to serve the customer.This leads to employee ______________.

A) Satisfaction
B) Retention
C) Productivity
D) A, B, and C
E) None of the above

Question 55

In the Service-Profit Chain customer satisfaction leads to customer loyalty and then revenue growth and profitability.This in turn leads to ____________.

A) Greater employee satisfaction and investment in employees
B) Changes in the organization structure
C) Competitive intelligence for future growth
D) Competitive retaliation based on service strategy
E) None of the above

Question 56

Perishability of a service means that ________.

A) A service can spoil if it is not used in a particular period of time
B) A service can not be stored or saved up for future use
C) A service is sensitive to the day of the week, month and year
D) A service must be handled and stored with care
E) None of the above

Question 57

Satisfaction can be defined as what people say, whereas loyalty can be defined as __________.

A) What people tell other people
B) What people inclined to do
C) What people list as their top companies to do business with
D) What people do
E) None of the above

Question 58

Big investments made in continuous training, retraining, and good management of employees leads to ______________.

A) Practical service delivery
B) Impartial service delivery
C) Less variability in service delivery
D) World class technology
E) None of the above

Question 59

Treating employees as customers and developing systems and benefits that satisfy their needs is called ________.

A) Marketing for profit
B) Internal consistency
C) Market oriented
D) Internal marketing
E) All of the above

Question 60

Harrah's Entertainment points with pride to the fact that everyone in the firm understands and can articulate its branding and values.This would be an indication that Harrah's is devoted to __________.

A) Self-actualization for management
B) Work-focused training for valued employees
C) Internal marketing to achieve the goals in the service-profit chain
D) Internal marketing to achieve the goals of stress relief ergonomics
E) All of the above

Question 61

In the continuum of whether something is a good or a service, there are some product and services like vacations, haircuts, restaurant meals that have _____________.

A) A large number of experiential qualities that make them easier to evaluate upon experiencing the service
B) A large number of experiential qualities that make them harder to evaluate upon experiencing the service
C) More product characteristics than service characteristics so should be called products
D) So many difficult thing to evaluate that they should be called credence services
E) None of the above

Question 62

Exceeding customer expectations is often referred to as ___________.

A) Customer excellence
B) Customer loyalty
C) Customer essence
D) Customer delight
E) None of the above

Question 63

JetBlue developed a __________ in response to the service melt down from a severe snow storm in New York.

A) Customer contact information form
B) Customer bill of rights
C) New complaint form
D) Employee training program aimed at disasters and how to not loose bags
E) None of the above

Question 64

When you check into Doubletree Hotels, you will find warm chocolate chip cookies in the lobby.This is a relatively inexpensive way conceived as _________ to make a memorable impact on weary travelers.

A) Tangible evidence
B) Surprised package
C) Event planning
D) Delightful surprises
E) None of the above

Question 65

Once a customer begins to have a positive experience with a service provider and build a relationship with the firm, _______________.

A) Customer loyalty tends to be less than for products
B) Customer loyalty tends to be greater for services than for products
C) Customer loyalty is the same between services and products
D) Customer loyalty is an upward sloping curve that accelerates as it hits the zone of indifference
E) None of the above

Question 66

When you talk about the service encounter, you are talking about ______________.

A) The period in which the service provider is trying to obtain information about the customer
B) The period of time between ordering the service and delivery of the service
C) The period during which a customer interact in any way with a service provider
D) The experience of the employee with the customer
E) None of the above

Question 67

When Outback Steakhouse built differentiation on service rather than just the Australian theme, it found the results beneficial that led to ________.

A) Setting industry standards in turns per table and revenue per square foot
B) High turnover in employees
C) Management receiving higher than average salaries
D) Exceeding customer expectations in the all important statistic of low cost per serving
E) None of the above

Question 68

In a national study it was found that the conversion rate for referred prospects is ____________ that of a marketed prospect over a six-month period.

A) The same as
B) Half as much
C) Double
D) Triple
E) Quadruple

Question 69

The face-to-face time between customer and service provider is often called the ________.Most customer judgments take place at this time.

A) Goal line stand
B) Moment of truth
C) Moment of momentum
D) Service ROI
E) None of the above

Question 70

Schools face a dilemma with respect to students.They have a difficult time determining whether students are ________.

A) To be serviced with good service
B) Professionals that deserve respect
C) Products or customers
D) Prospects or suspects
E) None of the above

Question 71

In services marketing there is a Gap Model of Service Quality.The Gap refers to __________.

A) Distance between the understanding of management and employees
B) Employees perception of the customer experience
C) Managements mismanagement of resources to achieve better service quality
D) Misunderstandings between the provider of the service and the customers experience of the service
E) None of the above

Question 72

One of the search difficulties for consumers with respect to evaluating one service offering from another is ________.

A) Services are not offered in a store
B) The customer does not truly know how the service performs until after the sale
C) It is difficult to compare services online
D) A service may be inseparable from its price
E) None of the above

Question 73

Some schools take the approach that the primary customer for their business are ___________.

A) Students
B) Graduate schools
C) Parents
D) Companies that hire the students
E) None of the above

Question 74

Firms that employ service as a marketing strategy must plan ahead for _____________ and train employees to properly execute service recovery

A) Service differentiation
B) Service success
C) Service failure
D) Service orientation
E) All of the above

Question 75

Sometimes customers can tell if they received good service or not.For example, vacations, haircuts, and restaurants all have _________ attributes that allow customers to decide whether they will repeat the purchase another time.

A) Purchasable
B) Simultaneous
C) Focused
D) Experiential
E) All of the above

Question 76

The Outback managment team added pick up service because _________.

A) They found dissatisfaction among customers with traditional fast food
B) It was easy to do
C) The ROI on pick up is better than providing service with a seat attached to it
D) Their revenues were declining and they needed a boost in sales
E) None of the above

Question 77

One sure way to create a Gap, according to the Gap service model, is for management to ___________.

A) Build a service delivery system the does not meet customer needs and wants
B) Build a service delivery system that meets the needs of customers
C) Create a service delivery system that uses qualitative and quantitative analysis to determine the best service
D) Ask input from employees to help design the service delivery system.
E) None of the above

Question 78

When non-regulated services (not professional services like doctors, lawyers, accountants)are credence services, they often self-regulate themselves by ____________.

A) Forming local groups to coordinate their image
B) Create industry trade groups that regulate quality and serve as a clearinghouse for information and referrals
C) Opening an office in Washington DC to lobby for their interests
D) Create advertisements that local companies can use to advertise their individual service
E) None of the above

Question 79

When a service failure occurs, if a company correctly handles the problem ____________ will not be impacted.

A) Customer satisfaction
B) Loyalty
C) Retention
D) A, B, and C
E) None of the above

Question 80

When a customer cannot make a reasonable evaluation of the quality of a service even after use, it is said that the service possesses ______________ attributes.

A) Experience
B) Credence
C) Search
D) Focused
E) None of the above