question

The growth of the service industry is induced by the

answer

increase in household income

question

The demand for service has increased because of

answer

economic prosperity and changes in social, wokr and interacting habits

question

Which of the following firms gained their advantage through a unique service concept?

answer

All of the above: Southwest Airlines, Ikea, DEll, Starbucks

question

Service management is a multidisciplinary field that relies on:

answer

All of the above: consumer behavior, marketing, operations, human resource management

question

Which statement is true for services

answer

First sold, then produced and consumed simultaneously

question

Servization means

answer

using service offers to add value to the core product

question

Main functional components of hospitality include

answer

entertainment

question

Which of the following statements is true

answer

primary needs are fulfilled through core service

question

What has had the most impact on economic growth of today's service industry

answer

Information Technology

question

When family income increases,

answer

the percentage spent on education, health and entertainment rapidly increase

question

Which one is an example of peripheral services

answer

car washing service in a petrol service and wifi connection on a flight

question

Which of the statements is true for bundles

answer

they include core and peripherals, they may include tangibles and intangibles, they can help the firm to serve different customer groups, they can help a company distinguish itself from the competition

question

which statement is true for service bundles

answer

Bundling is a cross-functional system

question

According to the case study on Starbucks, its market research found that customers viewed Starbucks as a company primarily concerned with ____ and ____:

answer

making money and opening more stores

question

According to "Starbucks: Delivering Customer Service," what did the company's most recent research data reveal to senior management?

answer

Starbucks was failing to meet their customers' expectations

question

According to "Starbucks: Delivering Customer Service," which of the following is NOT one of the three components to Starbucks experiential branding strategy?

answer

It discouraged substitute purchases (i.e. tea) and to stress the purchase of coffee

question

According to "Starbucks: delivering customer service," the starbucks chain was based off of the role of espresso bars in Italian's everyday social lives.

answer

True

question

According to "Starbucks: Delivering Customer Service," Starbucks had a joint venture with ___ to distribute bottled Frappuccino beverages in North America

answer

Pepsi-cola

question

According to the case study on Starbucks, founder Howard Schultz holds the belief that employee satisfaction and customer satisfaction are not related in any way.

answer

False

question

According to the case study on Starbucks, when selecting a site for a new store, the company considers the degree to which the demographic of the surrounding area matches the profile of a typical Starbucks customer.

answer

True

question

According to "Starbucks: Delivering Customer Service," the plan to invest an additional $40 million annually into the company's stores would allow for the addition of 20 more hours of labor a week at each store. What was the overall goal of this plan?

answer

To improve speed-of-service and thereby increase customer satisfaction

question

According to the case study on Starbucks, how has the Frappuccino beverage increased in-store sales?

answer

By boosting customer traffic during non-peak hours

question

According to the case study on Starbucks, the company's "Just Say Yes" policy encourages employees to sometimes go beyond company rules in order to provide the best possible service.

answer

True

question

According to "Starbucks: Delivering Customer Service," Starbucks was envisioned to become America's "third place" after home and work.

answer

True

question

According to the case study on Starbucks, what was the goal of Christine Day's plan?

answer

To improve speed-of-service and increase customer satisfaction.

question

According to the case study on Starbucks, which of the following is NOT a technique that Starbucks used to increase barista efficiency?

answer

Hiring additional baristas

question

According to the case study on Starbucks, why did the company make it a goal for baristas to serve a customer within three minutes?

answer

Customers consider the three minute standard to be a part of "excellent service."

question

According to the case study on Starbucks, Christine Day attributed the decrease in Starbucks customer satisfaction primarily to their product quality.

answer

False

question

Heterogeneity occurs

answer

A, b, and c: From the same performer on different occasions, from one day to another, from one service performer to another

question

Co-creation of products or service in collaboration with customers

answer

A&B only: benefits both the customer and the firm, and is also known as a dual value creation

question

Value cocreation is enabled because of service being

answer

Inseperable

question

What are the implications of perishability?

answer

if a service is not used, the opportunity for sale is lost forever

question

Which of the characteristics below represent the differences between services and physical goods?

answer

All of them: intangibility, inseparability, heterogeneity, perishability

question

Which of the statement(s) is correct?

answer

When demand is operating between optimum and maximum capacity, it creates a risk of inferior service

question

Value cocreation refers to a

answer

mutual creation of value by both customer and service provider

question

The lack of ownership can be overcome since

answer

service can be sold before it perishes

question

Choose a type of service or event where an increased demand improves quality of experience:

answer

A&C only: music festival and nightclub

question

The characteristic of services that makes it difficult to provide identical experiences every time is called

answer

Heterogeneity

question

Managing demand includes

answer

All of the above: differential pricing schemes, product packaging, developing complimentary services

question

Emotional labour is one of the implications of distinctive features of service and refers to

answer

all of the above: employees ability to smile and follow the script regardless their mood, service workers display required emotions which may contradict inner feelings, faking emotions when needed, correction ones behavior and emotions to comply with organizationally defined standards

question

Services can be _______.

answer

none of the above

question

Customization is enabled due to the following distinctive feature(s) of service

answer

heterogeneity

question

Part-time marketers are employees who are

answer

all front line workers

question

Implications of intangibility include:

answer

All of the above: hard to differentiate on service offer from another, perception of risk increases, reliability of service depends on the word-of-mouth and social media, high-involvement and co-producing role of customers is inevitable

question

Multiple consumption construct relates to an idea of:

answer

service is consumed by more than one person simultaneously

question

The characteristic of services that makes it difficult to provide identical experiences every time is called

answer

heterogeneity

question

Implications of heterogeneity include:

answer

A and c only: same service results in different experiences, create a burden for brand consistency

question

Managing supply involve the following strategies:

answer

All of the above: sharing capacity, maximizing efficiency, using part-time employees

question

Implications with perishability include:

answer

All of the above: managing service supply and demand, managing demand fluctuations, wait management and psychology of waiting, offers through bundles and packaging

question

Distinctive features of service present significant challenges for service providers, including:

answer

All of the above: ensuring customer satisfaction, ensuring consistent service quality, achieving operational efficiency, management of supply and demand

question

The management and marketing of services requires a different approach from that of products, because:

answer

Services are easier to assess in comparison to products

question

On the product to service continuum from product dominant to service dominant, which of the following represents the order most accurately?

answer

accommodation, food, room service, reservation, concierge

question

Which of the statements about inseparability is correct?

answer

customer involvement creates a burden for managerial service quality control

question

The key competitive differentiator for Canyon Ranch is that it:

answer

Integrates health/healing and spa services under one roof

question

Canyon Ranch has two destination resorts each with three revenue-generating departments. Which of the following departments is NOT a significant revenue generator for the company

answer

Group Fitness

question

According to the case study, Canyon Ranch faced two challenges: Balancing growth with quality standards and maintaining competitive advantage in the face of increasing competition.

answer

True

question

Canyon Ranch's Spa Clubs are only located on luxury cruise liners such as the Queen Mary 2.

answer

False

question

The founders of Canyon Ranch wanted to create a place where people would be inspired and motivated to translate their healthiest thoughts into action.

answer

True

question

According to the Canyon Ranch case study, which of the following was NOT necessarily an emphasis in employee recruitment?

answer

A degree in spa management

question

Canyon Ranch's marketing strategy relies heavily on advertisement.

answer

False

question

According to the Canyon Ranch case study, the spa industry was a relatively early adopter of computerization and information technology.

answer

false

question

As discussed in the Canyon Ranch case study, the term "spa" originated:

answer

From a town in Belgium renowned for baths and mineral springs

question

Which two aspects of service quality influence customers the most?

answer

process and functional quality

question

Deming a chain reaction indicates that

answer

if you improve quality, you improve productivity

question

Which of the statements is true about quality?

answer

All of the above (quality perceptions can drive loyalty, quality has a positive correlation with the firms competitive advantage, affects the firms market share, affects the firms profit share)

question

Statistical process control

answer

is comprised of a combination of tools

question

According to Christian Grönroos, service quality consists of:

answer

technical and functional quality

question

which statement is true about service quality

answer

None of the above

question

according to SERVPERF model the three sub-dimensions for outcome quality are:

answer

none of the above

question

In regards to quality theory, Joseph M. Juran was the

answer

B & D only (first one to emphasize the importance of communication and management & one to offer quality control to be an integral part of overall management)

question

Deming a philosophy of quality control

answer

A and C only (is based off the statistical method and is intended to reduce variation)

question

Which is the most important dimension of service quality for meeting customer expectations?

answer

Reliability

question

How the employee delivers the service can be referred as:

answer

A and B only (the moment of truth and functional quality)

question

Which statement is an accurate depiction of total quality management principles?

answer

All of the above (TQM requires empowered employees involved in collaborative action, focused on customer and efficiency, requires committed management showing inspiring leadership, conscious philosophy of continual systematic improvement)

question

Which of the following statements is true

answer

Higher quality often leads to higher level of satisfaction which may turn into customer loyalty

question

Which statement is true

answer

Process quality representeds moment of truth

question

Which statement is true about service quality?

answer

A and B only (service quality is rath a subjective perception of ones experience and customer plays a central role in defining a quality of service)

question

Which of the statements is true about customer loyalty

answer

A and C only (customer loyalty can be attitudinal or behavioral; can result in a customer franchise)

question

Crosby has introduced four absolute for managing quality, including:

answer

The measurement of quality is the price of non-conformity

question

According to the case study, how are Ritz-Carlton employees compensated?

answer

skill-based compensation

question

Which of the following best describes Ritz-Carlton's ownership/management structure?

answer

individually owned but managed by a management company

question

Ritz-Carlton employees are tasked with immediately remedying any customer defect they discover, regardless of what they are doing when that defect is discovered. This is referred to as:

answer

Instant pacification

question

The Ritz-Carlton motto is: "We are Ladies and Gentlemen Serving Ladies and Gentlemen."

answer

True

question

Ritz-Carlton is a part of which of the following hotel segments?

answer

Luxury

question

Which of the following is not a part of the Ritz-Carlton Gold Standards?

answer

The consumer Bill of Rights

question

Because of its emphasis on quality service provision, Ritz-Carlton was the first hotel to win which of the following awards:

answer

Malcolm Baldrige National Quality Award

question

Intercontinental Hotel Group (IHG) is the parent company of the Ritz-Carlton brand.

answer

false

question

In Ritz Carlton's Three steps of Service, the third step is simply to bid the customer a fond farewell after the service is complete.

answer

true

question

Which questions would be the most effective in defining levels of customer satisfaction

answer

would you recommend a service to someone else?

question

Internal marketing focuses on motivating employees

answer

towards customer focused service performance

question

Service marketing is the connection between

answer

production and consumption

question

Why customer-to-customer communication should be also carefully managed?

answer

All of the above (significant influence on customer purchasing decisions; monitor traffic and learn about customer perceptions; to engage in some of the convos when it can be beneficial to the company; make an informed decision about the amount of resources allocated towards social media)

question

Employees are called customer advocates when:

answer

A personal relationship with the customer becomes established

question

In service marketing, service employees are often referred to as

answer

part time marketers

question

Effective feedback communications systems means:

answer

All of the above (establishing regular 2 way communication between staff and management, offer opportunity for joint problem, offer superior service quality, offer communication back to customers)

question

Which of the following methods is highly dependent on skills of moderator?

answer

focus group interviews

question

what do mystery shoppers do?

answer

observe and record service performers

question

My Starbucks Idea is an example of

answer

customer's co-creation of value

question

Guestology refers to

answer

a study of customers behaviors

question

How many categories of customers are there

answer

none of the above

question

Customer-centric organizations focus on

answer

Needs of the target audience

question

The customer centricity approach has an impact on

answer

all of the above (all internal activities of the company, the way company interacts with the customers, all the company's operations, company's focus and strategy)

question

what is mystery shopper program designed for?

answer

To aspire the company to design and clarify its expectations for service and perfect customer experience

question

The main objective of internal marketing is to

answer

all of the above (attract; motivate, and retain; design jobs to satisfy employee; design jobs that nurture and develop; create conflict free work environment)

question

Which statement is true about internal (or partial ) customers?

answer

B and D only (they are crucial marketer researchers in the company; internal customers are vital for the company as they play a role of internal marketers)

question

Who is an internal customer

answer

a staff member

question

With Hilton Honors you can earn airline miles

answer

True

question

The Mobley Hotel was founded by Paris Hilton in 1919.

answer

False

question

The Hilton Brand is connected to around 500,000 rooms.

answer

True

question

The CRM initiative started by Hilton in 2002 states that: Customers Really Matter.

answer

True

question

Embassy Suites, Waldorf Astoria, Residence Inn, and Hampton Inns are all Hilton Brands.

answer

False

HFT 3240 Test 1 – Flashcards

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