Question 1

One of the difficulties associated with search qualities for consumers when evaluating different service offerings is ________.
A) services are not offered in a store
B) customers do not truly know how a service performs until after the sale
C) it is difficult to compare services online
D) a service may be inseparable from its price
E) customers find it difficult to analyze services since they have too many search attributes

Accepted Answer

Unlike tangible products, customers cannot fully evaluate the performance of a service before purchasing or experiencing it. This makes it difficult to evaluate search qualities associated with services.

Question 2

As discussed in the text, Caesars Entertainment has found that customers who fall into the zone of ________ spend considerably more money and provide a substantially greater return on customer investment than others.
A) defection
B) affection
C) indifference
D) competition
E) retention

Accepted Answer

The text states that customers who fall into the zone of "affection" spend considerably more money and provide a substantially greater return on customer investment than others.

Question 3

The service-profit chain is designed to help managers better understand the key linkages in a service delivery system that drive ________.
A) production and distribution
B) customer loyalty, revenue growth, and higher profits
C) brand awareness and economies of scope
D) marketing and sales
E) customer satisfaction, promotion, and higher demand

Accepted Answer

The service-profit chain is a framework that shows how employee satisfaction leads to customer loyalty which in turn drives revenue growth and higher profits. Therefore, the key linkages in a service delivery system that it addresses are customer loyalty, revenue growth, and higher profits.

Question 4

If a firm is considered customer-centric, it implies that the company ________.
A) does marketing research on all 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) gives more importance to customers in everything that takes place both inside and outside the firm
D) places employees and customers at the top of the organizational chart
E) treats employees as customers and develops systems and benefits that satisfy their needs

Accepted Answer

If a firm is customer-centric, it means that it prioritizes and values its customers in all aspects of the business, including product development, marketing, and customer service. The focus is on meeting the needs and wants of the customer and building long-term relationships with them.

Question 5

Once a firm has invested in continuous process improvement and quality control in operations, goods, in general, tend to be much more ________ than services.
A) perishable
B) standardized
C) distinguished
D) intangible
E) customized

Accepted Answer

Continuous process improvement and quality control focus on standardizing and improving processes, which results in more standardized goods rather than services.

Question 6

Perishability of a service means that ________.
A) a service's quality can only be as good as that of the provider himself or herself
B) a service cannot be stored or saved up for future use
C) a service is produced and consumed at the same time
D) a service must be handled and stored with care
E) a service cannot be separated from its provider

Accepted Answer

Perishability of a service means that it cannot be stored or saved up for future use. Unlike physical products, services cannot be saved or inventoried for later use. They must be produced and consumed at the same time.

Question 7

Firms that are customer-centric exhibit a high degree of customer orientation, which means that they ________.
A) instill an organization-wide focus on understanding customers' requirements
B) generate an understanding of the marketplace and keep that information confidential
C) align system capability externally so that an organization can respond with competitively similar goods and services
D) develop mass-produced goods and services that sell well in both large and small markets
E) treat employees as customers and develop systems and benefits that satisfy their needs

Accepted Answer

Firms that are customer-centric have a culture that puts the customer at the center of everything they do. These firms establish an organization-wide focus on understanding the needs, preferences, and values of their customers. This helps them to design and deliver products and services that meet and exceed customer expectations.

Question 8

The zone of defection describes the area of ________.
A) slightly satisfied customers
B) extremely dissatisfied customers
C) loyal customers
D) apostles
E) very satisfied customers

Accepted Answer

The zone of defection generally includes customers who are extremely dissatisfied with a company's product or service and are likely to defect to a competitor.

Question 9

Treating employees as customers and developing systems and benefits that satisfy their needs is called ________.
A) marketing for profit
B) employee induction
C) market orientation
D) internal marketing
E) green marketing

Accepted Answer

Treating employees as customers and developing systems and benefits that satisfy their needs is called internal marketing. This approach recognizes that employees are valuable stakeholders of the organization, and their satisfaction and motivation have a direct impact on customer satisfaction and organizational performance. Internal marketing involves applying marketing principles and techniques to attract, retain, and engage employees, and create a positive organizational culture.

Question 10

A frequent Caesars guest who serves as a strong advocate for the Caesars experience to friends and acquaintances is referred to as a(n) ________.
A) whistleblower
B) pacifier
C) apostle
D) champion
E) polemicist

Accepted Answer

An "apostle" in this context refers to a loyal customer who actively promotes and advocates for a brand or experience to others.

Question 11

When a company underpromises but overdelivers with respect to its services, it is said to be practicing ________ management.
A) inferior service
B) change
C) customer salience
D) customer expectations
E) total quality

Accepted Answer

When a company underpromises but overdelivers with respect to its services, it is practicing managing customer expectations. By setting realistic expectations, and then exceeding them, companies can create a positive experience for customers and build loyalty. This approach is known as expectation management.

Question 12

Fluctuating demand is related to ________ of services.
A) durability
B) variability
C) perishability
D) flexibility
E) tangibility

Accepted Answer

Fluctuating demand is related to the perishability of services because services cannot be stored for later use, making it crucial to manage demand fluctuations effectively.

Question 13

In the service-profit chain, external service value leads to all of the following EXCEPT ________.
A) customer satisfaction
B) employee turnover
C) customer loyalty
D) revenue growth
E) profitability

Accepted Answer

External service value, which is the value perceived by the customer, directly leads to customer satisfaction, loyalty, revenue growth, and profitability. Employee turnover is not directly influenced by external service value, but rather is a result of internal factors such as employee engagement and job satisfaction, which are influenced by other factors in the service-profit chain.

Question 14

One of the central concepts of the service-profit chain is to ________.
A) enable a firm's customers to participate and contribute in strategic decision making
B) create an environment in which all employees can be successful
C) implement market penetration strategies in order to increase sales and profitability
D) create elements of change within people to do things above their capabilities
E) encourage employees to engage in groupthink and to resist any change to existing systems

Accepted Answer

The central concept of the service-profit chain is to create an environment in which all employees can be successful. This involves investing in employees, improving the employee experience, and enabling them to deliver high-quality service to customers, which in turn leads to customer satisfaction and loyalty, and ultimately, increased profitability for the company. The other choices are not directly related to the service-profit chain.

Question 15

As noted in the text, Caesars 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 Caesars is devoted to ________.
A) creating self-actualization for management
B) providing work-focused training for valued employees
C) internal marketing to achieve the goals in the service-profit chain
D) external marketing to achieve the goals of stress-relief ergonomics
E) producing products that are similar to that of its competitors

Accepted Answer

Caesars Entertainment's emphasis on everyone in the firm understanding and articulating its branding and values suggests its commitment to internal marketing. Internal marketing, which involves treating employees as internal customers and prioritizing their engagement and satisfaction, is crucial for maintaining consistent service delivery and achieving the goals of the service-profit chain. It also helps ensure that employees understand and embody the brand's values, which is essential for delivering a unique and differentiated service experience.

Question 16

José, an employee of a company that has worked hard to have a customer mind-set, understands that ________.
A) whether internal or external to the firm, satisfying customers is central to doing his job well
B) all members of the firm must get to work on time and start their computers by 8:30 a.m.
C) it is essential to generate an understanding of the marketplace and keep that information confidential
D) products must be produced solely for loyal customers from higher socio-economic status
E) system capability must be aligned externally so that the organization can respond with competitively similar goods and services

Accepted Answer

The statement implies that José recognizes the importance of customer satisfaction and how it relates to his job performance.

Question 17

When a company follows a customer-centric philosophy with a high degree of customer orientation, it is likely to ________.
A) keep everyone up-to-date on the progress of relevant legislation
B) generate an understanding of the marketplace and disseminate that knowledge to everyone in the firm
C) produce products solely for the loyal customers from higher socio-economic status
D) place customers at the top of the organizational chart
E) align system capability externally so that the organization can respond with competitively similar goods and services

Accepted Answer

A customer-centric philosophy involves understanding the marketplace and ensuring that this understanding is shared across the organization to better meet customer needs.

Question 18

In the service-profit chain, customer satisfaction leads to customer loyalty, and results in ________.
A) revenue growth and profitability
B) changes in the organizational structure
C) competitive intelligence for future growth
D) competitive retaliation based on service strategy
E) external service value

Accepted Answer

Customer satisfaction is a key factor in customer loyalty, which in turn leads to increased revenue growth and profitability for the organization. This is the fundamental premise of the service-profit chain, which establishes the link between employee satisfaction, customer satisfaction, and financial performance. Therefore, the best choice is A.

Question 19

With services, continual investment in training, retraining, and good management of people is required if ________.
A) variability is to be consistently low
B) tangibility is to be consistently low
C) inseparability is to be consistently high
D) intangibility is to be consistently high
E) perishability is to be consistently high

Accepted Answer

Continual investment in training and good management of people are necessary to ensure that the variability in services is consistently low. This is because services are performed by people, who are not completely standardized, and hence, the level of performance may vary. By investing in training and managing people effectively, organizations can ensure that service quality remains consistent over time.

Question 20

An organization's focus on internal service quality implies that employees ________.
A) are less likely to be satisfied
B) lack job security
C) are highly reward-oriented
D) hold a customer mind-set
E) need motivation to change

Accepted Answer

An organization's focus on internal service quality means that the employees are encouraged to hold a customer mind-set, which means focusing on meeting the needs of internal customers (such as co-workers in other departments) in the same way they would for external customers. This approach improves overall customer satisfaction and contributes to a positive work environment.

Quiz 10: Service as the Core Offering

One of the difficulties associated with search qualities for consumers when evaluating different service offerings is ________.

As discussed in the text, Caesars Entertainment has found that customers who fall into the zone of ________ spend considerably more money and provide a substantially greater return on customer investment than others.

The service-profit chain is designed to help managers better understand the key linkages in a service delivery system that drive ________.

If a firm is considered customer-centric, it implies that the company ________.

Once a firm has invested in continuous process improvement and quality control in operations, goods, in general, tend to be much more ________ than services.

Perishability of a service means that ________.

Firms that are customer-centric exhibit a high degree of customer orientation, which means that they ________.

The zone of defection describes the area of ________.

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

A frequent Caesars guest who serves as a strong advocate for the Caesars experience to friends and acquaintances is referred to as a(n) ________.

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

Fluctuating demand is related to ________ of services.

In the service-profit chain, external service value leads to all of the following EXCEPT ________.

One of the central concepts of the service-profit chain is to ________.

As noted in the text, Caesars 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 Caesars is devoted to ________.

José, an employee of a company that has worked hard to have a customer mind-set, understands that ________.

When a company follows a customer-centric philosophy with a high degree of customer orientation, it is likely to ________.

In the service-profit chain, customer satisfaction leads to customer loyalty, and results in ________.

With services, continual investment in training, retraining, and good management of people is required if ________.

An organization's focus on internal service quality implies that employees ________.