Question 1

When managers understand what their service providers are facing on a day-to-day basis by directly observing them and talking to customers, it is called "management by walking around."

Accepted Answer

"Management by walking around" is a well-known management technique where managers observe and interact with employees and customers to better understand their work and improve the overall performance of the organization.

Question 2

All products and services are intangible.

Accepted Answer

This statement is false. Products can be tangible or intangible, while services are generally intangible but some can also have tangible components.

Question 3

The building blocks of service quality are reliability, responsiveness, assurance, empathy, and tangibles.

Accepted Answer

The building blocks of service quality are indeed reliability, responsiveness, assurance, empathy, and tangibles. They are commonly referred to as the RATER framework.

Question 4

Firms can attempt to close the knowledge gap by setting appropriate service standards.

Accepted Answer

The answer of Firms can attempt to close the knowledge...

Question 5

The communications gap can be reduced by managing customer expectations.

Accepted Answer

By setting clear expectations with customers and following through on them, the likelihood of misunderstandings, miscommunications, and unsatisfied customers can be reduced. This can help bridge the communications gap between businesses and their customers.

Question 6

The Service Gaps Model encourages the systematic examination of all aspects of the product creation process.

Accepted Answer

The Service Gaps Model focuses on identifying and addressing gaps in service delivery and customer expectations, not the product creation process.

Question 7

MaryAnne was employee of the month at Jimmy John's, primarily because she provided excellent customer service by serving food quickly. This relates to the reliability service dimension.

Accepted Answer

The scenario described relates to the responsiveness dimension of service quality, which involves prompt and timely service, rather than the reliability dimension, which is about consistently delivering the promised service accurately and dependably.

Question 8

Namaste Hotels is known for its immaculate lobbies and rooms that always appear brand new for every guest. This relates to the service dimension of tangibles.

Accepted Answer

Tangibles refer to the physical appearance of the service including the facility, equipment, personnel, and communication materials. Namaste Hotels' immaculate lobbies and rooms always appearing brand new are physical elements that contribute to the service experience and fall under the tangibles dimension of service quality.

Question 9

The marketing of services is identical to the marketing of products.

Accepted Answer

The marketing of services differs from the marketing of products in several ways such as intangibility, inseparability, perishability, variability, and the involvement of the customer in the service delivery process. Marketing strategies and techniques may need to be adapted to account for these differences.

Question 10

A delivery gap is the difference between the firm's service standards and the actual service it provides to customers.

Accepted Answer

A delivery gap is indeed the difference between the firm's service standards and the actual service it provides to customers. This gap can arise due to various factors such as inadequate training of employees, lack of communication between departments, or unrealistic service promises made to customers. It is important for firms to identify and close these gaps in order to provide a better overall customer experience.

Question 11

In the marketing of services, empowerment means allowing employees to make decisions about how service is provided to customers.

Accepted Answer

Empowerment in the marketing of services refers to giving employees the autonomy to make decisions regarding how services are provided to customers. This helps to enhance customer satisfaction and loyalty by providing quick and effective solutions to their problems.

Question 12

Firms that primarily sell products view service as a method to maintain a sustainable competitive advantage.

Accepted Answer

Many firms that primarily sell products incorporate services as a way to differentiate themselves from competitors, enhance customer loyalty, and maintain a sustainable competitive advantage by adding value beyond the physical product.

Question 13

Services are considered heterogenous which means they cannot be stored for use in the future.

Accepted Answer

Services are considered heterogeneous because they vary in quality and type from one provider to another and from one customer to another, not because they cannot be stored for future use. The inability to store services relates to their intangibility and perishability, not heterogeneity.

Question 14

Procedural fairness pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss).

Accepted Answer

Procedural fairness pertains to a customer's perception of how they were treated in the process of receiving benefits or incurring costs, such as whether the procedures were transparent, unbiased, and consistent. It is not about the actual benefits received compared to the costs.

Question 15

The zone of tolerance refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service.

Accepted Answer

The zone of tolerance concept is a widely accepted idea in the service industry, which highlights the range of service levels that customers find acceptable. It refers to the gap between customers' desired service level and their minimum expectations, and is defined as the range of service performance that lies between what customers are willing to accept and what they expect. It is important for businesses to understand their customers' zone of tolerance and to strive to deliver services that meet or exceed it.

Question 16

When Union Savings Bank required all customers to use its online banking services, over 20 percent of its customers closed their accounts. In this scenario, Union Savings Bank's service fell outside customers' zone of tolerance.

Accepted Answer

The fact that over 20 percent of customers closed their accounts indicates that the requirement to use online banking fell outside of their zone of tolerance.

Question 17

In training service providers, service quality goals should be generalized to allow for the various needs of consumers.

Accepted Answer

Service quality goals should be specific and tailored to meet the diverse needs of consumers, ensuring that all customer expectations are met efficiently and effectively.

Question 18

Listening to the customer is the first step in service recovery.

Accepted Answer

Listening to the customer is crucial in understanding their concerns and finding a solution to their problem. It is the first step towards resolving the issue and providing effective service recovery.

Question 19

While Jessica would have liked to have cash back, she felt the customer service representative was fair when she allowed Jessica to return the shirt for store credit. This demonstrates the idea of procedural fairness.

Accepted Answer

Procedural fairness refers to the fairness of the process used to make a decision, rather than the outcome itself. In this case, even though Jessica didn't get the specific outcome she wanted (cash back), she felt that the customer service representative followed a fair process by allowing her to return the shirt for store credit.

Question 20

A delivery gap implies a service failure.

Accepted Answer

Delivery gap refers to the difference between customer expectations and the actual service provided by the company. If the actual service provided falls short of customer expectations, it leads to a service failure. Therefore, a delivery gap implies a service failure.

Quiz 13: Services: the Intangible Product