Services Marketing exam 2 - Flashcards

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In the first stage in the services marketing research process, the researcher:

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C. Defines the problem and research objectives

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Marine Midland Bank hired marketing researchers when it noticed many people who had savings accounts with the bank did not have checking accounts and credit cards with it. The first task of the market researchers was to learn if the bank wanted to know how its customers perceived the bank as a service provider, if it were more interested in what customers thought was superior about its savings account, if the bank thought some customer expectations were not being met or if what the bank really wanted to know was how it could change its service to better meet customer expectations. The first thing the research company did was to:

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A. Help Marine Midlands Bank define the problem and establish research objectives

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The most critical stage in the services marketing research process is when the marketing researcher:

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C. Defines the problem and research objectives

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_____ research is conducted to clarify problem definition and prepare for more formal empirical research.

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E. Qualitative

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The health industry in the U.S. is an $840 trillion business. Adam.com is trying to cash in on some of that money by providing an Internet service that will answer health-related questions for consumers. After a year in operation, Adam.com did an informal survey of its customers. It used open-ended questions to determine what people like and dislike about its service. Adam.com was conducting _____ research.

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A. Qualitative

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Marine Midland Bank hired marketing researchers when it noticed many people who had savings accounts with the bank did not have checking accounts and credit cards with it. The researchers would conduct _____ research if it wanted to test the hypothesis that Marine Midland customers did not like the services the bank provided for its checking account and its credit card customers.

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C. Quantitative

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Which of the following is NOT a form of qualitative research?

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D. Trailer calls

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Which of the following types of research has a high monetary cost?

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E. Future expectations research

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Which of the following types of research is NOT done on a continuous basis?

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B. Relationship surveys

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If you own a small advertising agency and have limited funding and even less time to spend on services marketing research, which of the following types of research would you be LEAST likely to use?

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B. Future expectations research

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The new owner of the St. Louis Rams football team wanted to know why game attendance was low. The research revealed several reasons, including shortage of toilet paper and straws, high prices for bad seats and inadequate parking. When the researchers asked survey participants to prioritize their reasons for not attending the games, the researchers were gathering _____ importance measures.

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A. Direct

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While Smitty was shopping at The Home Depot, he was asked to complete a survey assessing his expectations and perceptions of The Home Depot's service quality. In one section of the survey, he was asked to allocate a total of 100 points across the five dimensions of service quality. The 100-point allocation question is a _____ importance measure.

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A. Direct

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_____ importance measures are estimated using the statistical procedures of correlation and regression analysis, which show the relative contribution of questionnaire items to overall service quality.

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D. Indirect

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Which of the following statements about complaint solicitation is true?

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D. Research on customer complaints allows companies to improve failure points and to improve or correct the performance of contact personnel

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To be effective, complaint solicitations requires:

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E. Rigorous recording of numbers and types of complaints through many channels

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Clark participated in a research study conducted by Red Lobster restaurants in which he was asked to provide a verbatim story about a satisfying and dissatisfying service encounter he had at Red Lobster. Which of the following types of research studies did Clark participate in?

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B. Critical incidents studies

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The new owner of the Atlanta Falcons football team wanted to know why game attendance was low. Former purchasers of season tickets were asked to provide an anecdote about a satisfying and a dissatisfying experience at a Falcon game. The researchers used:

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B. Critical incidents studies

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Which of the following statements describes a benefit of critical incident studies?

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C. The research method is especially useful when the service is new

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In 2000, SwissAir made some unwise investments to pay for a planned expansion. As a result, the company had to make some cost-cutting moves that alienated its customers. Eventually the company declared bankruptcy, regrouped and found itself able to resume business. Its board of directors announced the company would resume flying in the Spring of 2002 if it could prove the airline could regain at least 75 percent of its lost customers. It decided to allot $50,000 to determine the probability that its former customers would fly on the airline again and what methods requiring little or no money could be used to increase that probability. Which of the following two methods are low-cost research methods SwissAir could use to reach its research objectives?

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A. Critical incident studies and lost customer research

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Structured brainstorming is an example of which of the following types of research?

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B. Requirements research

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_____ involves identifying the benefits and the attributes that customers expect in a service.

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B. Requirements research

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Boston Symphony Orchestra realized the classic music market was generally becoming older and needed to learn how to appeal to younger concert-goers. It hired a research agency to identify the positive and negative attributes of going to concerts. In other words, the research agency conducted a:

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B. Requirements research

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Which of the following statements about relationship surveys is true?

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C. SERVQUAL is a type of relationship survey

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The Learning Academy provides tutoring for children who are having trouble mastering some skill in school-whether it is math, reading, studying or something else. It wants to monitor and determine the strengths and weaknesses of The Learning Academy's curriculum. Which of the following types of research should The Learning Academy use to realize this objective?

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C. Relationship surveys

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PSE&G, a utility company located in New Jersey is conducting a services marketing research study to assess its service performance. It will measure the gaps between customer expectations and perceptions along the five dimensions of service quality. Which of the following types of research should PSE&G use?

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C. SERVQUAL surveys

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When Tom and Ruth checked out of the Marriott Hilton Head Resort, they were each given a brief postage paid survey to complete and return through the mail. The survey asked 15 questions about their stay at the Marriott Resort. It covered such attributes as overall satisfaction, check-in speed/efficiency, cleanliness, decor and comfort of their room, friendliness and efficiency of the staff, quality of dining experience, quality of merchandise/gift shop, intention to return and willingness to recommend to friends. Which of the following types of research did Marriott conduct?

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D. Trailer calls

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Trailer calls are also called:

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B. Post transaction surveys

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The new owner of the Atlanta Falcons football team had research conducted to learn why game attendance was low. The research revealed several reasons, including shortage of toilet paper and straws, high prices for bad seats and inadequate parking. Once all the problems were fixed, the team owner did not want to have any future attendance problems. He set up kiosks in the football stadium where attendees could give the team and the arena a "report card". This would be an example of:

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A. A trailer call

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The Canfields want to landscape their 15-acre yard. The couple plans an herb garden in back that will lead to an English cottage garden. In the west side yard, they are planning on a Japanese garden and a rose garden will be located in the east side yard. They have hired a landscaper to draw the design and to do the actual planning. The Canfields want input on the landscaping. They have asked the landscaper to set up several points where they can give their inputs, correct anything they do not like and make changes before the plan is finalized. Most landscapers would be bothered with this seeming interference, but the landscaper the Canfields chose has used this method for years as a way to measure his company's customer service performance. The landscaper is using a method of gathering customer information most similar to which of the following methods?

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C. Process checkpoint evaluations

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Key Energy was a company that provided quality oilfield construction, drilling and other services. The company's top management felt stakeholders did not have a clear image of the company and were considering changing the name to clarify the organization's position in the market. The company conducted an hour long interview with four of its largest customers. Only 25 questions were asked and much probing was done to find out exactly what the participants meant. This is an example of a:

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E. Service expectation meeting and review

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In early 2002, the University of Leeds in the U.K. released findings of its study of television viewing behaviors. Seventeen families have given permission for cameras with sound to be placed in the main living areas of their homes for two three-week periods over two years to watch them watch television. The University of Leeds used _____ to determine that people who have specifically chosen to watch a program are more likely to remain present for the commercial breaks within it.

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B. Market-oriented ethnography

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One significant difference between the U.S. and Japanese culture is the love and respect the Japanese give their elders. A service provider who is trying to cater to the needs of the elderly might talk to some Japanese-Americans to gather some ideas on how to improve service quality. The cultural difference should make the service provider view providing service to the elderly from a different perspective. This sort of service research is called:

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B. Market-oriented ethnography

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Which of the following types of research is unique to services?

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C. Mystery shopping

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Sunoco is readying a chain-wide set of marketing initiatives designed to improve its image with women drivers and win more return business to its service station outlets throughout Ontario. It refurbished all of its restrooms and tried to hire friendly personalities and real customer service skills instead of "just who was available". It hired an outside research organization to send people to Sunoco service stations twice monthly to grade staff on their customer interaction skills. What research method did Sunoco use to make sure that each station was implementing the new service strategy?

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C. Mystery shoppers

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The Limited recognizes sales associates who provide excellent customer service by rewarding them with a "Hero Award", which is displayed in the store where the sales associate is employed. To measure a sales associate's service performance, which type of research should The Limited use?

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D. Mystery shopping

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Customer panels:

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B. Have moderate time costs

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Boston Symphony Orchestra realized the classic music market was generally becoming older and needed to learn how to appeal to younger concert-goers. It hired a research agency to identify the positive and negative attributes of going to concerts. One type of research conducted by the agency was to interview former symphony season ticket holders who were not longer attending the concerts. In other words, the agency used:

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E. Lost customer research

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A week after Kim cancelled her First USA MasterCard, she received a survey in the mail asking questions about First USA's service quality, its performance versus other credit card companies, her level of satisfaction with different dimensions of First USA's service and her reasons for canceling her account. Which of the following types of research did First USA conduct?

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E. Lost customer research

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Which type of research is most reminiscent of an exit interview that would ask a question such as, "What exactly could we have done to keep you from leaving the company?" and "Is there anything we can do to keep you from resigning from your position"?

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E. Lost customer research

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One benefit of _____ is that it identifies failure points and common problems in the service and can help establish an early-warning system for future defectors.

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D. Lost customer research

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The synectics approach, features research and lead user research are all categorized as forms of:

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D. Future expectations research

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_____ are used to report the findings from a services marketing research study that collected data on the two levels of customer expectations-desired service and adequate service-along with customer perceptions of company performance.

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A. Zone of tolerance charts

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A(n) _____ is a composite of the perceptual satisfaction or service quality measures collected in an organization.

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A. Zone of tolerance chart

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One of the most useful forms of analysis in marketing research is the _____, which combines information about customer perceptions and importance ratings.

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C. Importance/performance matrix

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Key Energy was a company that provided quality oilfield construction, drilling and other services. The company's top management felt stakeholders did not have a clear image of the company and were considering changing the name to clarify the organization's position in the market. Senior management interviewed the company's salespeople to learn how they felt about selling Key Energy's services. As part of examining the corporate image, the company used:

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A. Upward communication

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Which of the following is NOT a research objective for improving upward communication in a service organization?

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E. Gain first-hand knowledge about competitors

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Which of the following types of interaction activities in a service organization is used to obtain ideas for service improvement?

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A. Employee suggestions

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Century Business Systems, Inc. offers all of the non-technical support a business would need to operate successfully-everything from auditing to management consultant to financing to marketing advice. Which of the following types of interaction activities is it likely to use to gain information about its business customers and still be able to have only a minimal investment of time and money in the research?

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D. Executive listening approaches

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US Franchise System (USFS) is the world's fastest growing hotel company. Among its hotel franchises are Microtel Inn ; Suites, Hawthorn Suites and Best Inns ; Suites. Every three months, employees from a different franchise overseen by USFS conduct customer satisfaction telephone surveys. Among the employees who regularly participate in the survey process are senior managers, who are trained and certified to conduct survey interviews. Which type of interaction activity is USFS using to improve upward communication?

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D. Executive listening approaches

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The University of Central Florida's Incentive/Efficiency Program encourages employees to submit tangible ideas or suggestions that will result in savings or generate additional revenue for the University of Central Florida. The person who suggests an adopted proposal receives a cash reward equal to 10 percent of the first year's net savings or generated revenues. The University of Central Florida's Incentive/Efficiency Program is designed to achieve which of the following research objectives?

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D. Obtain ideas for service improvement

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_____ marketing focuses on keeping and improving current customers, rather than concentrating on acquiring new customers.

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C. Relationship

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According to the _____, while advertising, sales and promotions pour profits into your company, there will always be some customer defection, which has the potential to grow larger.

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A. Bucket theory

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According to the text, the relationships between businesses and their customers have the ability to evolve. In the first step of this evolution process, customers are identified as:

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C. Strangers

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The primary goal of businesses that are in the first stage of their relationship with a customer is to:

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D. Initiate communications in order to attract them

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WedSafe is the name of a company that provides wedding insurance. For example, in the event that the wedding is called off, the couple can insure themselves against lose of their nonrefundable deposits. When its primary marketing effort is to make engaged couples aware of its services, it is in which stage of the customer relationship evolution?

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C. Strangers

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WedSafe is the name of one of several companies that provide wedding insurance. For example, in the event that the wedding is called off, the couple can insure themselves against lose of their nonrefundable deposits. When its primary marketing effort is to satisfying its customers, it is in which stage of the customer relationship evolution?

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E. Acquaintances

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In acquaintance relationships, firms generally focus on:

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D. Providing value comparable to the competition

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How would you describe the sustainability of competitive advantage in the acquaintance stage of the customer relationship evolution?

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B. Generally low with some variation on how the competition creates unique value

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Following the acquaintance relationship in the evolution of customer relationships is the customers as _____ stage.

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C. Friends

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In which evolutionary stage of customer relationships is customer retention fostered by a service provider consistently provides customers with quality goods and services as well as good value over time?

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A. Friendship

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A primary goal of firms at the friendship stage of the relationship is:

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A. Customer retention

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The key to success in the _____ stage of the customer relationship is the firm's ability to organize and use information about individual customers more effectively than its competitors.

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E. Partnership

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At the partnership stage of the customer relationship, the firm is most concerned with:

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C. The enhancement of its relationship with the customer

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As a result of relationship marketing, customers experience specific relational benefits. These include: A. Social support, esteem benefits and self-actualization benefits

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C. Confidence benefits, special treatment benefits and social benefits

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Sondra has been having her haircut by Logan, a hairstylist at Dazzles, for five years. She has continued to use the same hairstylist even though the price of a haircut at Dazzles is $10 higher than at competing hair salons. Logan does an excellent job cutting her hair and staying up to date on the latest hairstyles and hair care products. Sondra realizes _____ benefits from her relationship with Logan.

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B. Confidence

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Marlon Johnson is a government auditor and works for Taylor ; Litford firm. He is the one who checks to see that city and county governments have complied with accounting principles. As an auditor, Johnson sometimes will spend six weeks in one office while he checks its accounting records. The closeness of the relationship that Johnson builds with the government employees he works with was realized by Taylor ; Litford when Johnson left the firm, went to work for another one and took his clients with him. This is an example of how _____ benefits can be both helpful and harmful.

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C. Social

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Which of the following is one of the ways an organization benefits from maintaining and developing a loyal customer base?

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A. Employee retention

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How would a day care center operator benefit from the implementation of relationship marketing with the parents of three preschool children?

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E. The parents would spread the word about their happiness with the services provided by the day care center

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The _____ of a customer is the increased value or profit that accrues for each additional customer who remains loyal to a company rather than defecting to the competition.

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A. Lifetime value

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According to the text, the lifetime value of a customer is not influenced by:

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E. The communication strategy

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Since service companies have determined they need not serve all customers equally well, they have divided their target markets according to:

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A. Current and/or future profitability

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According to the 80/20 rule:

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B. 20 percent of a company's customers produce 80 percent of the company's profit

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The 80/20 two-tier scheme:

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C. Assumes all customers within each tier are homogeneous

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A company that uses a four-tiered system to rank the profitability of its customers is:

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A. Expanding the 80/20 customer pyramid

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A company that uses a four-tier scheme to segment is customers by profitability:

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B. Identifies customers who need different sorts of attention

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Salespeople for college texts call on college instructors to sell them on using a particular text for their classes. Improvements in efficiency have led some publishers to stop making sales calls altogether on smaller colleges. It is a much better use of the sales force's time to call on schools with large classes and big adoption rates. From the customer's point of view, this application of the profitability tier:

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A. Could be seen as demeaning

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The development of strong customer relationships is strongly influenced by:

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C. Barriers the customer faces in leaving a relationship

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Every month the pest exterminator does a monthly spraying at Mike Wade's house. Every month Wade gripes that he is being ripped off by the exterminating company and how he's going to find a new one. But he never does change service providers due to:

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B. Customer inertia

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In many instances, customers develop loyalty to an organization in part because of costs involved in changing to and purchasing from a different firm. These costs are called:

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C. Switching costs

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_____ arise(s) when the customer is required to pay a penalty to switch providers.

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D. Contractual costs

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Molly and Tom are getting married. Last month they hired a caterer for the wedding reception. This month they attended a wedding for which their chosen caterer had provided food, dishes and flowers. Neither thought the food was good and Molly worried that the dishes looked cheap. However, they feel they cannot change caterers at this date due to the large deposit required by the catering company when it took the job. Molly and Tom do not want to pay:

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C. Switching costs

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Moonlight Catering has increased the deposit it requires before agreeing to cater an event to $300. This amount is nonrefundable and must be paid when Moonlight Catering is hired for the job. This increase in deposit will help Moonlight Catering achieve its goal of:

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E. Customer retention

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Retention strategies built around financial bonds:

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B. Use price as the primary marketing mix element

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Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Marriott is using _____ to implement its retention strategy.

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A. Financial bonds

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Members of Sam Goody's Replay Frequent Buyer Program receive a $15 gift certificate for every $150 in purchases made at Sam Goody, as well as a coupon each month for a 20-25 percent discount on the purchase of an unlimited number of CDs and/or cassettes from a specific music category. Sam Goody's Replay Frequent Buyer Program uses _____ to implement its retention strategy.

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A. Financial bonds

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Retention strategies based on social bonds:

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A. Build long-term relationships through social and interpersonal as well as financial bonds

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Miller ; Sons Funeral Home has handled all of the funeral needs for the Atwater family since 1957. The family believes that Miller ; Sons offers them good value for their dollar and the Miller sons and the Atwater boys played on the same high school football team. Miller ; Sons Funeral Home is using _____ to implement its customer retention strategy.

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B. Social bonds

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Every Thursday afternoon for almost thirty years, Margaret and Lillie have gotten a manicure at the same location. The manicure salon has changed ownership three times and has had two different names during that same period, but Margaret and Lillie still find it a convenient place to meet and share news about friends and relatives. Margaret's and Lillie's relationship with the manicure salon exemplifies how a service provider uses _____ to support its customer retention strategy.

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B. Social bonds

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Retention strategies built around customization bonds:

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D. Focus on mass customization and customer intimacy

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Step-by-Step day care center offers parents several other services not normally offered by day by day care centers. A caterer is present every morning when the children are dropped off to take orders for supper. When the parents pick up their children in the evening, their supper is ready for them to take home, too. A hair stylist comes to the center once a week and cuts the hair of any child whose parents request this service. A photographer comes to the center every three months to take updated pictures of children whose parents don't have the time to take their children to the photography studio. In this way, Step-by-Step is using _____ to support its customer retention strategy

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C. Customization bonds

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The term customer intimacy is most closely related to the establishment of _____ bonds.

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C. Customization

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Moran Dry Cleaners operates in a medium-sized community. Its customers all live within a 20-mile radius of the cleaners. Moran provides its regular customers with several alternative pickup and delivery schedules rather than a single weekly pickup and delivery. It will pickup clothes in the morning and deliver them back clean in the afternoon if that is what a customer needs. Moran has found the increase in its total number of customers because of this service more than pays its additional operation expenses. This pickup and delivery system is an example of:

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A. Mass customization

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The Marriott Hotel introduced Express Check-Out service in response to customer frustration at waiting in long checkout lines. A guest's credit card receipt and hotel bill is left under his or her room door the morning of his or her scheduled departure. After checking the accuracy of the bill the guest simply leaves his or her room key in the room or in one of the key drop boxes at the front desk before leaving the hotel. Marriott's Express Check-Out allows the hotel to engage in:

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A. Mass customization

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Mass _____ entails designing products and services to fit each customer's individual needs.

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D. Customization

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Customer retention strategies based on customization bonds:

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D. May include the customer intimacy approach

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Aramark is a food service company that supplies meals to more than 200,000 hospital patients daily. To improve its service, it created a database that tracks patient preferences individually by hospitals, regionally and nationally. The accumulated database is used to provide better menus. Aramark's kitchen staff deliver the food and are referred to as hosts. All hosts have a minimum of 40 hours of training to teach them how to be courteous, efficient and quick. These trained hosts deliver customized meals from carts preloaded according to room number. According to patient surveys, Aramark has boosted patient satisfaction by almost 10 percent by providing customized meals. Aramark is using _____ in its customer retention strategy.

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D. Structural bonds

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Often, _____ are created by providing customized services to the client that are technology based and make the customer more productive.

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D. Structural bonds

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Which of the following is NOT a reason why a service firm may avoid a customer relationship with a particular customer?

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B. Customer is not divisible

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New Bedford College has a two-year masters degree program designed for special education teachers. Thirty-five students enter the program each fall. The education department requires that the 35 students take the same classes. Classes are made available in sequence. If Beth wanted to take only one special education class to get her a teaching certificate in learning disabilities (LD), she would be unable to because she would not be able to participate in any carry-over projects from previous classes (This is a common teaching tool for the New Bedford education department faculty.). New Bedford College will avoid setting up a relationship with Beth because:

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A. She is in the wrong segment

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United Jersey Bank offers customers, who have a combined balance of $3000 or more in a United Jersey Checking Account and Preferred Money Market Account, a service called United Jersey Preferred Banking. This service is designed to make banking more convenient and profitable for customers. United Jersey Preferred Banking eliminates monthly maintenance fees, provides unlimited free transactions at ATMs, preferred rates on personal loans, higher interest rates on savings with higher balances and a consolidated monthly statement. United Jersey Bank does not offer United Jersey Preferred banking to customers with a combined balance of less than $3000 in a United Jersey Checking Account and Preferred Money Market

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C. Not profitable in the long run

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_____ describes what the owner of the rehabilitation center did when he gave a customer who was complaining that his therapist was an hour late for their appointment a credit for one free hour of therapy.

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A. Service recovery

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________ refers to the actions taken by an organization in response to a service failure

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A. Service recovery

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Which of the following statements about service failure and service recovery is true?

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B. Resolving customer problems effectively has a strong impact on customer satisfaction and loyalty

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A florist had promised to have the bridal flowers delivered to the wedding rehearsal dinner by 6 p.m. Because of vehicle problems, the flowers did not arrive until the meal was nearly over and the bride and her mother were very upset. To show how sorry he was for the poor service, the florist put extra flowers in the bridal bouquet and gave each mother and grandmother a free orchid corsage. The bride and her mother were extremely pleased with the extra flowers and have recommended the florist to a number of their friends. The florist is wondering if he shouldn't deliberately underdeliver other jobs, compensate the consumer with some upgrade and benefit from even more positive feedback. The florist is responding to the:

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B. Recovery paradox

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The _______ suggests an initially disappointed customer who has experienced good service recovery might be even more satisfied and loyal as a result.

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B. Recovery paradox

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A consumer is more likely to complain when the:

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A. Flowers he ordered for his wife's birthday are not delivered

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A consumer is more likely to complain when:

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B. The level of ego involvement in the purchase is high

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People who complain can be categorized as:

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D. Voicers, irates, activists and passives

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A person who is a(n) _____ is a type of complainer who is unlikely to say anything to the service provider. This type of complainer often doubts the effectiveness of complaining because of a belief that the consequences will not merit the time and effort they will expend complaining.

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B. Passive

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The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is a passive type when it comes to complaining would react to this by:

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B. Taking no action whatsoever

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The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is a voicer type when it comes to complaining would react to this by:

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D. Confronting the carpenter at another job site and demanding to know when he would be back to finish the floor

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A business traveler checked into a Hyatt hotel and was given a room next to the elevator. When he turned on the television, he was greeted with a Hyatt customer service survey. He immediately took advantage of having the survey to let Hyatt know how unhappy he was with his room location. The business traveler would most likely be classed as a(n) _____ type

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C. Voicer

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The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is an irate type when it comes to complaining would react to this by:

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E. Firing the first carpenter and hiring another one who is willing to complete the job

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A consumer who is more likely to engage in negative word-of-mouth than any other type of consumer is called a(n):

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A. Irate

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The type of complainer that is called a(n) _____ has an above average propensity to complain. They have a very optimistic sense of the potential positive consequences of all types of complaining

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D. Activist

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_____ concerns the results that customers receive from their complaints.

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E. Outcome fairness

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_____ focuses on the interpersonal treatment received by the consumer during the complaint process

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C. Interactional fairness

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Which of the following is the BEST example of outcome fairness?

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D. The small movie theater gave all patrons two-free movie tickets for the night of their choice when the movie projector broke halfway through showing the newest Brad Pitt movie

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In addition to compensation, customers expect _____. In other words, they expect fairness in terms of policies, rules and timeliness of complaint process

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B. Procedural fairness

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Many frequent flyers have missed their flights due to long, slow security checks before being allowed to enter the airline's terminal. This policy designed to ensure safe flights has resulted in problems associated with perceived:

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B. Procedural fairness

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Which of the following is the BEST example of procedural fairness?

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C. When Tia walked into the salon and asked to have her hair cut, the receptionist pointed to the sign that read, "To keep from inconveniencing our customers, this hair salon will not fix the hair of anyone who does not have an appointment"

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When the dentist's office bills the patient who had an appointment but did not show up for it and did not cancel the appointed, it is an example of _____ because the patient was made aware of the policy before making the appointment

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B. Procedural fairness

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Adam was working late in his hotel room when the light bulb in the lamp at his desk burned out. He called the front desk and asked for a replacement bulb. The desk manager told Adam that a new one would be provided tomorrow morning and that he did not have the key to the stockroom. Adam tried to explain how much he needed the light to finish his sales report, but the manager was polite but adamant that he could not help. This is an example of:

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B. Procedural unfairness

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Once Mariko had carried her dry cleaning to the car, she took a minute to see if the cleaners had removed the stain from her wool skirt. The stain was still there, so Mariko took the skirt back inside to the cleaner. When Mariko showed the stained skirt to the cleaner employee, she shrugged and said, "I guess you want us to reclean the skirt"? Mariko responded, "Yes, please". The employee took the skirt, gave Mariko a dirty look and began sorting some items on the counter. Mariko experienced:

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C. Interactional unfairness

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As the flight attendant listened to the business traveler complain about having to sit in the plane and wait for two hours before the plane took off, the attendant sorted through some magazines, got a blanket for another passenger and clearly ignored the legitimate complaints of the businessperson. This is clearly a problem with:

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C. Interactional fairness

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________ refers to the fact that a complaining customer expects to be treated fairly, with care and honesty.

answer

C. Interactional fairness

question

A pseudo-relationship occurs when

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B. The customer interacts many times with the same company, but with different service providers

question

All of the following are causes for customer's brand switching EXCEPT:

answer

D. A service paradox

question

Which of the following is NOT an example of a commonly used service recovery strategy?

answer

D. Implement the service paradox

question

L. L. Bean, the catalog retailer, promises its customers, "100 percent satisfaction in every way, forever". Which service recovery strategy does L. L. Bean use?

answer

A. Make the service fail safe

question

With which service recovery strategy is total quality management (TQM) most closely associated?

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A. Make the service fail safe

question

What are poka-yokes?

answer

B. Automatic warnings or controls to ensure mistakes don't happen

question

Which of the following is an example of poka-yokes?

answer

C. The day care center has carefully labeled bins for each parent to fill with food, diapers, clothes and toys so that one child's stuff will not confused with another's

question

Bruce was driving to work yesterday when he was nearly run off the road by a speeding furniture delivery truck. On the back of the truck was a phone number to call if you believed the driver was not handling the truck safely. Rather than deciding to never buy furniture from this furniture company, Bruce called the company and complained about the truck driver. The person who took his call thanked Bruce for his concern, apologized for the driver and promised to reprimand him. Which service recovery strategy was the furniture store using?

answer

D. Encourage and track complaints

question

When DeWayne complained out loud that the hotel restaurant did not serve breakfast late enough in the morning, a hotel worker overheard him and went to the kitchen. When the hotel worker returned, he presented DeWayne with a plate of sweet rolls, a cup of coffee and the hotel's apology for having to close down the breakfast service early. Which service recovery strategy is being used in this example?

answer

E. Act quickly

question

The empowerment of employees makes which of the following service recovery strategies easier to implement?

answer

E. Act quickly

question

Roger Pack is a breeder of Pomeranian dogs. He has used the same grooming salon for his dogs for the last 10 years. When a new groomer accidentally trimmed too much off of one of his show dog's hind quarters, he was upset. He decided not to make a big deal of the event because of his long-term dealings with the salon owner. Which service recovery strategy is being used in this example?

answer

B. Cultivate relationships with customers

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By noting that a number of customers had complained about late bus arrivals at one particular stop, the bus line rerouted the bus away from a heavy traffic area. By increasing its miles traveled slightly, the bus was able to improve its arrival time substantially at the stop where it had formerly been perpetually late. Which service recovery strategy did the bus line use?

answer

B. Learn from recovery experiences

question

When its sales were declining, Canadian Airline conducted a marketing survey to understand the expectations of the business traveler, its target market. It learned business travelers resent they are bosses in their own offices but are totally controlled by the airlines when they travel. Canadian Airline instituted gate-side business centers, shower facilities and massage chairs as well as continuous "power to the seat" for those who want to work on their laptops. By listening to its business travelers and providing the services they want, Canadian Airline's sales started increasing. What service recovery strategy did Canadian Airline use?

answer

B. Learn from recovery experience

question

Kate recently learned to play golf. Last week, she decided to try a new golf course. She signed in to play and was given the keys to an electric golf cart without any instructions on how to operate it. After she drove the cart into a lake, she swore never to play golf again. According to Kate, "There was just too many things you had to know before you could become a real golfer". Two months later, the golf course manager called Kate and asked why she had not returned to play another game. Which service recovery strategy is being used in this example?

answer

B. Learn from lost customers

question

When its sales were declining, Canadian Airline conducted a marketing survey to understand the expectations of the business traveler, its target market. It learned business travelers resent that they are bosses in their own offices but are totally controlled by the whims of the airlines when they travel. If Canadian Airline had only surveyed former customers who were still in their database, it would have used which service recovery strategy?

answer

D. Learn from lost customers

question

Kelso Massage Therapy promises its clients that there wait for a massage will be less than fifteen minutes or the massage is free. Which service recovery strategy does Kelso Massage Therapy use?

answer

A. Offering a guarantee

question

When Shealah hired the housecleaning service, she asked them to use her hypoallergenic cleaning supplies. Instead the workers used their own and Shealah had to lose a day from work because of her allergic reaction to the smell of the cleaners. When Shealah looked at the service guarantee that the workers had left, she found that she could get a reimbursement for all of her out-of-pocket expenses if she had a notarized letter from her doctor describing her condition and her reaction, an affidavit from the workers that they had used the wrong cleaners and another notarized statement that she would not have become ill if the workers had used the right cleaners. This service guarantee is ineffective because it is NOT:

answer

A. Easy to invoke and collect

question

PSE;G is a utility company. One of its service guarantees is to keep all appointments. If PSE;G fails to keep an appointment mutually agreed upon by the customer and the company, PSE;G will credit residential customers' accounts by $25 and business customers' accounts by $100. The guarantee only applies to appointments for meter readings, account investigation, gas service, gas appliance repair and both electric and gas meter work scheduled three days in advance. Which of the following statements about PSE;G's service guarantee is FALSE?

answer

B. PSE&G's guarantee is unconditional

question

Many carwashes offer free replacement washes to car owners if it rains or snows within 24 hours of when they had their cars cleaned at the carwash. Because people who would take advantage of this service guarantee are the ones that are concerned about the appearance of their car, this service guarantee:

answer

D. Is very meaningful

question

Which of the following statements about the benefits of service guarantees is true?

answer

B. A good guarantee forces the company to focus on its customers

question

Which of the following is NOT a benefit provided by a service guarantee?

answer

D. Away to increase a customer's sense of risk

question

An effective service guarantee would never be described as:

answer

C. Standardized and/or generic

question

For which of the following service providers would a guarantee be inappropriate?

answer

A. A child care provider who has a reputation for providing the best and most responsible child care in a community

question

When is a service guarantee inappropriate?

answer

C. When service quality is truly uncontrollable

question

Which of the following is NOT a risk incurred by describing services in words alone?

answer

E. Transformation

question

The supervisor of a hotel housekeeping staff instructed a new housekeeper in the 45 ways a room must be cleaned if its tenant is leaving and not staying on for another night while inferring that a less thorough method was used if the guest were staying additional nights. The next month the supervisor wonders why this housekeeper is using many more packets of toiletries than the other housekeepers are. Also, it seems that it is taking the cleaner the same amount of time to clean a recently vacated room as it does to clean a room that will be housing the same people for another night. The best explanation for the supervisor's concern is _____, a risk incurred when services are described in words alone.

answer

B. Incompleteness

question

A retail store manager instructed two new sales associates to greet customers quickly when they enter the store. On the first day the sales associates are working on the selling floor, one sales associate greets customers immediately after they enter the store, while the other associate greets customers after they have looked around for a minute or two. Which of the following risks incurred by describing services in words alone has led to the sales associates greeting customers at different time intervals?

answer

D. Biased interpretation

question

When is a biased interpretation likely to occur during a discussion of a new restaurant?

answer

C. When one party uses words like nice and different to describe the restaurant

question

In order to have a greater likelihood of ultimate success, a new service development system should be:

answer

B. Precise

question

In order to have a greater likelihood for ultimate success, who should be involved in the new service development process?

answer

A. Contact employees and customers

question

The ability to connect to the Internet through a modem using the same wires that transmit cable television was an example of a _____ when it was first introduced.

answer

A. Major innovation

question

To better target its business travelers, Canadian Airline has set up gate-side business centers for last-minute faxes and phone calls and massage chairs to knead out knotted muscles after a long commute. These gate-side business centers are an example of a:

answer

B. New service for the currently served market

question

The Cirque du Soleil fused elements of theater with traditional circus skills to create a whole new form of entertainment. Cirque du is an example of a:

answer

B. New service for the currently served market

question

Dentists have to earn forty continuing education (C.E.) hours every two years to stay licensed. Dental Learning Systems Co. (DLSC) prepared and presented dental seminars around the U.S. to help provide dentists with the access to continuing education courses. During the 1990s, DLSC introduced a journal that could be used like a correspondence course for earning C. E. Hours. A dentist gets a list of upcoming articles/lessons, registers for one that meets his or her need, studies the information provided in the journal and fills out paperwork for DLSC, which then sends notification of completion and the C.E. hour(s) earned to the accrediting bureau. The Dental Learning Systems journal is a:

answer

C. Service line extension

question

Pret a Manger, a London-based sandwich shop, introduced restaurant-quality sandwiches with fast-food velocity. This would be an example of a

answer

D. Service improvement

question

When Madyson returned to her oncologist's office for a checkup. She was pleased to find the waiting room had been remodeled and it now contained a large aquarium. There was even a sign that said watching fish is an excellent stress reducer. Since Madyson did not feel nearly as anxious before going to the oncologist's examination room, she decided the addition of the swimming fish was a good:

answer

D. Service improvement

question

Rama thought the light blue paint on the walls of the hospital waiting area was a vast improvement over the old brown paint. The repainting of the walls of the service provider is an example of a:

answer

E. Style change

question

The augmentation of an existing service line is a:

answer

C. Service line extension

question

______ are the most common types of new services.

answer

D. Service improvements

question

The first step in the new service-development process is:

answer

D. Business strategy development or review

question

When a company offers new services to current customers, it is using a _____ growth strategy.

answer

C. Service development

question

A company that was involved in wedding planning noted how many couples had a wedding catastrophe of some kind. As a result, it abandoned wedding planning and began offering wedding insurance to protect couples from financial losses due to weather emergencies, stolen wedding rings, damaged wedding dresses, etc. The company is using a _____ growth strategy

answer

C. Service development

question

An ad in a dental journal noted that if dentists would bulk buy a flowable composite used to build bridges and caps, the dentist purchasing the composite would receive Delta Air Lines Sky Miles to add to his or her existing Sky Miles. Both companies, the composite marketer and Delta, benefit from this offer. By allowing the composite marketer to offer free Sky Miles to customers, Delta Air Lines is further implementing its _____ growth strategy.

answer

A. Share building

question

In light of mounting competitive and cost-cutting pressures in the U.S., the need for health care services in Mexico and the potential of the Mexican economy, many U.S. hospitals are expanding their services to Mexico. For example, University Medical Center in Tucson, Arizona, provides continuing education classes for Mexican physicians, a toll-free telephone consultation line into Mexico and air transport service into Mexico. By expanding its services into Mexico, University Medical Center is using a _____ grown strategy

answer

B. Market development

question

McDonald's offers home and office delivery service in selected markets in the U.S. and Canada. McDonald's delivery service is a _____ growth strategy.

answer

C. Service development

question

Pret a Manger, a London-based sandwich shop, introduced restaurant-quality sandwiches with fast-food velocity. Pret a Manger's faster service is a _____ growth strategy.

answer

C. Service development

question

In which of the new-services development processes does a service firm produce a description of the service that represents its specific characteristics and features?

answer

E. Service concept development and evaluation

question

During which stage of the new-service development process are demand analysis, revenue projections, cost analyses and operational feasibility assessed?

answer

B. Business analysis

question

A service blueprint is developed during which stage of the new service-development process?

answer

D. Service development and evaluation

question

At the _____ stage of the new service development process, the new service is made available to a limited number of its potential customers

answer

C. Market testing

question

The openings of new fast-food franchises are typically highly promoted events-especially when the franchise is new to a geographic area. Special food promotions are offered on the day of the grand opening and sometimes guest appearances. Often if a grand opening event is scheduled for the first of the month, the business will actually start serving customers who happen to notice that it is open during the week prior to the first. In this way, employees can familiarize themselves with their jobs and minor problems can be handled before they become major. This pre-opening practice is most closely related to which stage of the new service-development process?

answer

C. Market testing

question

During the commercialization stage, the service goes live and is introduced to the marketplace. This stage has two primary objectives. One is to build and maintain acceptance of the new service among large numbers of service delivery personnel who will be responsible for day to day service quality. The other is to:

answer

B. Monitor all aspects of the service during introduction and through the complete service cycle

question

The final stage of the new service development process is:

answer

C. Post introduction evaluation

question

A service blueprint depicts:

answer

A. The process of service delivery

question

Service blueprinting is grounded in all of the following disciplines EXCEPT:

answer

C. Economics

question

_____ are those steps and activities that contact employees, like desk clerks and receptionists, perform that are visible to customers.

answer

B. Onstage contact employee actions

question

Simone called the Puppy Heaven Kennel to reserve a kennel for her German shepherd while she went on vacation. In terms of the service blueprint, Simone's telephone call is an example of a(n):

answer

A. Customer action

question

When Jessie wanted to talk to a therapist to learn how she could improve her relationship with her mother, she went to www.here2listen.com, an online counseling service that charges $1 per minute of counseling. The therapist she communicated with online is an example of a(n) _____ in the service blueprints for the web site.

answer

B. Onstage contact employee action

question

When the character playing Alice in Wonderland signed autographs and had her picture taken with guests at Disneyworld, it was an example of a(n):

answer

B. Onstage contact employee action

question

When Jessie wanted to talk to a therapist to learn how she could improve her relationship with her mother, she went to www.here2listen.com, an online counseling service that charges $1 per minute of counseling. The people who maintain the web site and who make it possible for Jessie to engage in an online chat with a therapist are examples of:

answer

C. Backstage contact employee actions

question

After an airplane arrives at its gate and passengers disembark, it is cleaned, restocked with food and beverages and refueled by maintenance workers before the next set of passengers board and the airplane departs on its next flight. The activities performed by maintenance workers to prepare the airplane for its next flight is part of which section of the service blueprint?

answer

D. Support processes

question

A company that was involved in event planning noted how many couples had a wedding catastrophe of some kind. As a result, it abandoned event planning and began offering wedding insurance to protect couples from financial losses due to weather emergencies, stolen wedding rings, damaged wedding dresses, etc. In terms of the service blueprint, the couple that decided to buy insurance to protect themselves if the guests at their reception got food poisoning is part of which section of the service blueprint?

answer

A. Customer actions

question

A company that was involved in event planning noted how many couples had a wedding catastrophe of some kind. As a result, it abandoned event planning and began offering wedding insurance to protect couples from financial losses due to weather emergencies, stolen wedding rings, damaged wedding dresses, etc. In terms of the service blueprint, the insurance underwriting company that makes it possible for them to offer the insurance cheaply is part of which section of the service blueprint?

answer

D. Support processes

question

In a Federal Express overnight delivery service blueprint, which of the following is an example of an onstage contact employee action?

answer

B. Federal Express driver picks up package from customer

question

When a guest staying at the Marriott Marquis in New York calls room service to order dinner, which of the following is an example of a backstage contact employee action?

answer

A. Marriott food service order clerk takes guest's order

question

In a service blueprint, the line of internal interaction separates:

answer

B. Backstage contact employee actions from support processes

question

In a service blueprint, the line of visibility separates:

answer

C. Onstage contact employee actions from backstage contact employee actions

question

If the purpose of the service blueprint is to understand the integration of the various elements of the service process, the blueprint should be examined:

answer

B. Vertically

question

After a service firm maps the service process from the customer's point of view, the next step in building a service blueprint is to:

answer

A. Draw the lines of interaction and visibility

question

The last step in building a service blueprint is to:

answer

E. Add evidence of service at each customer step

question

The Pet Palace washes, clips and grooms dogs. The owner and employees of the Pet Palace developed a mobile grooming vehicle. The new service allows them to go to the dog's home to wash, clip and groom it. How can Pet Palace NOT measure the success of its new service?

answer

E. By looking at the commercials

question

_____ is very useful in helping companies choose the right new service innovations in the first place

answer

A. Portfolio management for new products

question

New-service success depends on:

answer

A. Market-driven, customer-focused new-product processes B. The integration of the service within existing processes C. The emphasis on planning for and executing the new service process D. Strong external and internal marketing communications * E. ALL OF THE ABOVE*

question

New-service success depends on:

answer

B. The integration of the service within existing processes

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