Question 1

Once a train pulls out of a station, or an aeroplane takes off or a film starts, those seats are lost and can never be sold. Services are manufactured and consumed simultaneously; they cannot be stored either prior to or after the service encounter. This aspect of services is referred to as:

Accepted Answer

This aspect of services is referred to as perishability, which means that services cannot be stored and are lost once they have been provided. Choices A, B, and D refer to other aspects of services, such as variability, intangibility, and inseparability, respectively.

Question 2

Properties, which relate to those service characteristics that even after purchase and consumption customers find difficult to evaluate, are called:

Accepted Answer

Credence properties are the ones that are hard for customers to evaluate even after purchase and consumption of the service. These properties are such that require customers to have faith in the service provider, such as medical or legal advice, where the customer relies on the professional expertise of a service provider.

Question 3

An event that occurs when a customer interacts directly with a service is called:

Accepted Answer

A service encounter refers to the interaction between a customer and a service provider, where the customer receives the service directly. Service recovery is the action taken by a service provider to restore a customer's satisfaction after a service failure. Service quality is the overall impression that customers have of the quality of a service, and service failure is when a service does not meet a customer's expectations. Therefore, the best choice is B, as it specifically describes the direct interaction between the customer and service.

Question 4

Services are consumed at the point they are produced. In other words, service delivery cannot be separated or split out of service provision or service consumption. This is referred to as:

Accepted Answer

Inseparability refers to the idea that service delivery cannot be separated or split out of service provision or service consumption. This is because services are consumed at the point they are produced, unlike physical goods that can be produced and consumed at different points in time and space.

Question 5

A series of sequential actions that lead to predetermined outcomes when a service is performed correctly are called:

Accepted Answer

Service processes are a series of sequential actions that lead to predetermined outcomes when a service is performed correctly. This includes activities such as identifying customer needs, designing the service, delivering the service, and evaluating customer satisfaction.

Question 6

The gap between service quality specifications and service delivery is referred as:

Accepted Answer

GAP 3 refers to the discrepancy between service quality specifications and the actual service delivery.

Question 7

Where there is no prior history of exchange and no future exchanges are expected between a buyer and seller, this is referred to as:

Accepted Answer

Market exchanges refer to one-time transactions between a buyer and seller where there is no prior history or future expectation of exchange. Collaborative exchanges involve ongoing relationships and mutual benefits, while service performance and tangibility relate to the quality of goods or services being exchanged.

Question 8

Trust is a key feature of personal, intra-organizational, and inter-organizational relationships, and is necessary for their continuation. Trust is a means of reducing uncertainty in order for effective relationships to develop.

Accepted Answer

Trust is indeed a key feature of relationships and is necessary for their continuation. Trust reduces uncertainty and allows for effective relationships to develop.

Question 9

Perceived risk is concerned with the expectation of loss and is, therefore, tied closely with organizational performance.

Accepted Answer

Perceived risk can have a significant impact on organizational performance, as it influences decision-making and can lead to a reluctance to take risks or invest resources in certain areas. The expectation of potential loss can create a sense of caution and affect the willingness to pursue opportunities or engage in certain activities. Therefore, understanding and managing perceived risk is important for achieving organizational goals and success.

Question 10

Commitment is important because it implies a desire that a relationship continues and is strengthened because it is of value.

Accepted Answer

Commitment is an indication of one's willingness to invest time, energy, and resources to maintain and enhance the quality of a relationship. When individuals are committed to a relationship, they become more invested in it, they are willing to work through challenges, and they believe that the relationship is valuable and worth pursuing in the long run. Therefore, commitment is an essential component of healthy and successful relationships.

Question 11

Perceived value leads to an improved return on investment and hence profitability.

Accepted Answer

The answer of Perceived value leads to an improved return...

Question 12

Service processes are a series of sequential actions that lead to predetermined outcomes when a service is performed correctly.

Accepted Answer

Service processes involve following a set of predetermined steps to ensure that the service is performed correctly and consistently. These steps are designed to achieve specific outcomes, such as meeting customer needs, increasing efficiency, and ensuring quality control. By following these processes, service providers can deliver high-quality services that meet the needs of their customers and meet their organizational objectives.

Question 13

Entertainment realm occurs when an individual views a performance, listens to music, or reads for pleasure. The experience is absorbed passively.

Accepted Answer

In entertainment realm, the individual is primarily a passive participant in the experience.

Question 14

Commitment and trust are the key mediating variables (KMV) in building a relationship.

Accepted Answer

Commitment and trust are crucial components in developing and sustaining a healthy and enduring relationship. These variables help to establish emotional connections and durability between the individuals involved. Therefore, commitment and trust act as mediating variables in building relationships.

Question 15

The perceived value of a relationship can be more important than trust when building customer satisfaction.

Accepted Answer

While trust is important in building customer satisfaction, the perceived value of a relationship can be even more important. If customers feel that they are getting a great value for their money, they are more likely to overlook small issues and be satisfied with the overall experience.

Question 16

This is a measure of the extent to which a service experience exceeds customers' expectations:

Accepted Answer

Service quality refers to how well a service meets or exceeds customer expectations. Therefore, if the service experience exceeds customers' expectations, it can be considered as high service quality. Service satisfaction, service failure, and service encounter do not necessarily capture the extent to which the service experience exceeds customers' expectations.

Question 17

Cumby and Barnes (1998) provide a useful insight into what contributes to customer satisfaction. Which of the following is not associated with customer satisfaction?

Accepted Answer

According to Cumby and Barnes (1998), customer satisfaction is influenced by the core product/service, affective dimensions of services, and elements of customer interaction. However, they did not associate creative cognitive experience with customer satisfaction.

Question 18

Software repairs and television and radio entertainment are good examples of:

Accepted Answer

Software repairs and television and radio entertainment are examples of low-contact services as they do not require much interaction between the service provider and the customer. The services can be provided remotely or without much physical interaction.

Question 19

The development of customer experience marketing has been built on evolving ideas concerning:

Accepted Answer

The development of customer experience marketing has been built on evolving ideas concerning service encounters (where the customer interacts with the company), perceived value (the worth a customer places on a product or service), relationship marketing (focusing on building long-term relationships with customers), and customer satisfaction (the measure of how well a company meets or exceeds customer expectations). Building facilities and customer retention are not directly related to the development of customer experience marketing.

Quiz 11: Services Marketing and Customer Experience Management