Question 1

A local grocery store has set up an automatic billing counter for customers who buy fewer than five items so that they need not wait long to check out.This has made the billing process efficient, and customers are very satisfied.This strategy reduces the:
A)zone of tolerance.
B)standards gap.
C)knowledge gap.
D)delivery gap.
E)communication gap.

Accepted Answer

The delivery gap is reduced because the store has improved the efficiency of the service delivery process by implementing an automatic billing counter, thus meeting customer expectations for quick service.

Question 2

The CEO of a services company routinely attends the team meetings of the company.He understands customer problems and provides solutions based on his experience and by following a standard, well-defined process.This works as a cue to the employees to emulate the CEO in the way problems are handled.Which of the following strategies is being exemplified in this scenario?
A)Empowering employees
B)Providing support to service providers
C)Committing to service quality
D)Replacing people with machines
E)Achieving service goals through training

Accepted Answer

The CEO's presence at team meetings and his focus on understanding customer problems and providing solutions based on a standard, well-defined process demonstrates a commitment to service quality. This sets an example for employees to emulate, which can lead to a culture of customer-focused problem-solving within the company.

Question 3

Tom, who works as a flight attendant, puts in long hours serving customers.The management, noticing his efforts, recommends him for the Star of the Year award.This reward strategy will help in reducing which gap?
A)Communication
B)Standards
C)Knowledge
D)Communion
E)Delivery

Accepted Answer

Recognizing Tom's efforts with an award helps to motivate and encourage him to maintain or improve his performance, thus reducing the delivery gap, which is the difference between service delivery and customer expectations.

Question 4

Kathy plans a weekend getaway to a natural lake resort known for its migratory birds.On arrival, she learns that the hotel is overbooked.Reception places Kathy in a lower-priced shared accommodation instead of the studio room that she had booked.Kathy decides not to book with the resort again.The service provider was unable to recover the service failure because:
A)it did not narrow Kathy's zone of tolerance.
B)it was not permitted to compensate her.
C)it did not provide adequate compensation to Kathy.
D)it did not convince Kathy even after she received fair compensation.
E)it did not respond immediately to her complaints.

Accepted Answer

The service provider failed to adequately compensate Kathy for the inconvenience of being placed in a lower-priced shared accommodation instead of the studio room she had booked, leading to her decision not to book with the resort again.

Question 5

What are customers'' expectation based on?
A)Perception and experiences
B)Knowledge and perception
C)Experiences and knowledge
D)Attitude and perception
E)Knowledge and attitude

Accepted Answer

Customers' expectations are based on their experiences with similar products/services in the past and their knowledge about the industry. For example, a customer who frequently dines at upscale restaurants would have higher expectations when it comes to the quality of food and service compared to a customer who usually eats at fast-food chains. Knowledge about pricing, features, and benefits also plays a significant role in shaping customers' expectations.

Question 6

Harris Inc., a multinational retailer, introduced a new initiative to improve its customer service across its stores.In its recent initiative, Harris has authorized its store representatives to make their own decisions to help their customers.In the context of service delivery, which of the following best describes Harris's initiative?
A)Providing durable services
B)Reducing the zone of tolerance
C)Encouraging distributive fairness
D)Empowering service providers
E)Promoting procedural fairness

Accepted Answer

Harris's initiative of authorizing store representatives to make their own decisions to help their customers is an example of empowering service providers, allowing them to have more control over the service delivery process.

Question 7

Which of the following strategies will help a firm in reducing the standards gap?
A)Promising only what it can deliver or a little less
B)Using customer complaint behaviour effectively
C)Collecting consumers' perceptions of service quality by using a questionnaire
D)Setting specific service standards based on customers' expectations
E)Replacing people with machines

Accepted Answer

Setting specific service standards based on customers' expectations helps align the firm's service delivery with what customers expect, thereby reducing the standards gap.

Question 8

To define its customers' zone of tolerance, Hotel Raywood asked its customers to assign importance scores to the service quality dimensions and rate the hotel's performance on those dimensions. While analyzing the reports, experts found that most customers had assigned a high score for reliability and a low score for assurance. Also, the hotel had scored high on the responsiveness dimension of service quality.
-The evaluation of service quality by defining the zone of tolerance will help the hotel to reduce which gap?
A)Criterion
B)Knowledge
C)Customer
D)Communication
E)Communion

Accepted Answer

The knowledge gap refers to the difference between customer expectations and management's perception of those expectations. By understanding the zone of tolerance, the hotel can better align its services with customer expectations, thus reducing the knowledge gap.

Question 9

A local utilities company has set up an online mechanism to pay bills that provides information to customers online so that the customers do not have to drive down to the local office.This service has improved customer satisfaction immensely and encouraged timely payment and resolution of issues.This strategy helps to reduce the company's:
A)knowledge gap.
B)delivery gap.
C)communication gap.
D)standards gap.
E)zone of tolerance.

Accepted Answer

The online mechanism to pay bills has helped the company to bridge the delivery gap, which is the gap between service delivery and customer expectations. By providing customers with an online mechanism for bill payment, the company has made it easier for customers to pay their bills, and has also provided them with the information they need to resolve any issues they might have. This has helped to improve customer satisfaction, encourage timely payment, and reduce the time and effort required to resolve issues.

Question 10

Kerry Inc., a garment exporter, established detailed guidelines pertaining to garment shipping and return policies of its firm.This move has tended to reduce consumer grievances and uncertainty associated with international shipping.Which of the following has been established by Kerry in the given scenario?
A)Procedural fairness
B)Inseparability
C)Empowerment
D)Distributive fairness
E)Zone of tolerance

Accepted Answer

Kerry Inc. has established detailed guidelines pertaining to garment shipping and return policies of its firm. This indicates that the company has focused on procedural fairness, which refers to the perceived fairness of the procedures used to make decisions. By establishing clear guidelines, Kerry Inc. has reduced the uncertainty associated with international shipping, which is likely to reduce consumer grievances. In contrast, inseparability, empowerment, distributive fairness, and zone of tolerance are not directly related to the establishment of guidelines and policies for shipping and returns.

Question 11

An event management company that specializes in wedding receptions and birthday parties clarifies with clients the services it can actually provide and the number of guests it can handle before taking on an assignment.The company is trying to reduce the communication gap by:
A)setting lofty service standards.
B)forcing its employees to meet the goals.
C)committing to provide more services.
D)trying to match customer expectations.
E)promising only what it can deliver.

Accepted Answer

The company is trying to reduce the communication gap by promising only what it can deliver. This approach helps manage client expectations and ensures that the company can deliver on its promises without overpromising or stretching its resources too thin.

Question 12

A company that specializes in water purifiers recently installed a system at John's house.John realizes that the system is faulty because the purifier developed a leak within a few days of installation.John calls the company's service team, which goes over the problem in detail with him and then sends service personnel to John's house to fix the problem.In this scenario, the company tried to resolve the issue by:
A)attempting to rectify the situation.
B)explaining the process they use to resolve complaints.
C)providing adequate compensation for the inconvenience.
D)replacing the system.
E)eagerly listening to John's complaint and resolving the problem.

Accepted Answer

The answer of A company that specializes in water purifiers...

Question 13

Jimmy's car garage provides great service to its customers by providing tips and guidelines to manage automobiles.The strategy used by the garage to reduce the standards gap is:
A)analyzing service performance by using service dimensions.
B)providing incentives to its service providers.
C)replacing people with machines.
D)achieving service goals through training.
E)understanding customers' expectations through research.

Accepted Answer

The answer of Jimmy's car garage provides great service to...

Question 14

Valuemart, a supermarket chain, trains its employees to perform their tasks according to the guidelines set by the firm.This method employed by them will help the firm in reducing the:
A)zone of tolerance.
B)knowledge gap.
C)standards gap.
D)delivery gap.
E)communication gap.

Accepted Answer

The standards gap refers to the difference between the firm's actual service standards and the service standards it sets for itself. By training their employees to perform their tasks according to the guidelines set by the firm, Valuemart can ensure that its service standards are being met and reduce the standards gap.

Question 15

Despite a firm's best efforts, sometimes service providers fail to meet customer expectations.In such a scenario, which of the following provides a unique opportunity to a firm to demonstrate its customer commitment?
A)Focusing on the service quality dimension of tangibles
B)Providing service recovery
C)Broadening the communication gap
D)Narrowing the zone of tolerance
E)Widening the service gap

Accepted Answer

Providing service recovery is the best choice when a service provider fails to meet customer expectations. Service recovery refers to the actions taken by a firm to resolve a customer's problems or complaints effectively and in a timely manner. It provides a unique opportunity for a firm to demonstrate its commitment to customer satisfaction and build long-term relationships with its customers. Focusing on the service quality dimension of tangibles, broadening the communication gap, narrowing the zone of tolerance, and widening the service gap are not effective ways to address service failures.

Question 16

Joanne bought a gift for her friend's birthday from an online website.The service provider failed to deliver the gift on the day it had promised.To compensate, the service provider provided coupons to Joanne a week later, which she could use to make more purchases online from them.The service recovery strategy that the service provider used in this instance was:
A)widening the standards gap.
B)resolving the problem immediately.
C)achieving goals through training.
D)finding a fair solution.
E)narrowing the zone of tolerance.

Accepted Answer

The service provider used a fair solution to compensate Joanne for their mistake. By providing her with coupons, they not only compensated for their error but also gave her an opportunity to make more purchases in the future. This is a good service recovery strategy that can help to retain customers and improve the overall image of the company.

Question 17

A fast-food outlet offers home delivery.When Chris calls to place an order, the restaurant informs him that the delivery of the order will be delayed because of a delivery staff shortage.Which of the following is most likely to be reduced by the fast-food outlet by using the strategy given in the scenario?
A)Knowledge gap
B)Delivery gap
C)Communication gap
D)Zone of tolerance
E)Standards gap

Accepted Answer

The communication gap is most likely to be reduced by the fast-food outlet by informing Chris about the delay due to a delivery staff shortage, as it involves providing customers with realistic expectations about delivery times, thereby managing their expectations and reducing misunderstandings.

Question 18

A customer's perception of the benefits he or she received compared with the costs that resulted from a service failure is called:
A)procedural fairness.
B)the service gap.
C)distributive fairness.
D)the delivery gap.
E)the communication gap.

Accepted Answer

This is known as distributive fairness, which refers to a customer's perception of the benefits received in a service encounter compared to the costs (both monetary and non-monetary) associated with a service failure.

Question 19

Which of the following statements best describes the communication gap?
A)It refers to the difference between a firm's service standards and the actual service it provides to customers.
B)It can be reduced effectively by empowering service providers.
C)It can be reduced by managing customer expectations effectively.
D)It reflects the difference between customers' expectations and a firm's perception of those customer expectations.
E)It can be closed by getting employees to meet or exceed service standards.

Accepted Answer

The answer of Which of the following statements best describes...

Question 20

Most customers allotted a high importance score for the reliability dimension.This shows that most of the customers give importance to:
A)the willingness of the employees to provide a prompt service.
B)the knowledge and the courtesy shown by the employees.
C)the care and attention provided to them by the employees.
D)the ability of the employees to provide service accurately.
E)the appearance of the hotel and its employees.

Accepted Answer

The reliability dimension refers to the ability of the employees to provide service accurately. Therefore, the customers who gave high importance scores to this dimension prioritize the employees' ability to provide accurate service over other factors like promptness, courtesy, or appearance.

Quiz 10: Services: The Intangible Product

A local grocery store has set up an automatic billing counter for customers who buy fewer than five items so that they need not wait long to check out.This has made the billing process efficient, and customers are very satisfied.This strategy reduces the:

Tom, who works as a flight attendant, puts in long hours serving customers.The management, noticing his efforts, recommends him for the Star of the Year award.This reward strategy will help in reducing which gap?

What are customers'' expectation based on?

Which of the following strategies will help a firm in reducing the standards gap?

An event management company that specializes in wedding receptions and birthday parties clarifies with clients the services it can actually provide and the number of guests it can handle before taking on an assignment.The company is trying to reduce the communication gap by:

Jimmy's car garage provides great service to its customers by providing tips and guidelines to manage automobiles.The strategy used by the garage to reduce the standards gap is:

Valuemart, a supermarket chain, trains its employees to perform their tasks according to the guidelines set by the firm.This method employed by them will help the firm in reducing the:

Despite a firm's best efforts, sometimes service providers fail to meet customer expectations.In such a scenario, which of the following provides a unique opportunity to a firm to demonstrate its customer commitment?

A customer's perception of the benefits he or she received compared with the costs that resulted from a service failure is called:

Which of the following statements best describes the communication gap?

Most customers allotted a high importance score for the reliability dimension.This shows that most of the customers give importance to: