Mcq in Services Marketing

Chapter 1: An introduction to services The _____________ reflects the view that the intangible aspects of products are becoming the key features that differentiate the product in the marketplace.

* * * * *

services marketing Servuction model service imperative benefit concept industrial management model

Which of the following businesses would be characterized as a pure service*

* * * * *

insurance farming mining engineering there is no such thing as a pure service

General Motors, the manufacturing giant's, largest supplier is:

* * * * *

Blue Cross-Blue Shield Insurance GMAC Financing a parts supplier a legal firm a trucking company

Which of the following sets of terms best describes a service*

* * * * *

objects, devices, and performances effort, objects, and deeds things, devices, and performances objects, devices, and things deeds, effort, and performances

Deeds, efforts and performances define:

* * * * *

products ideas services goods places

The continuum that ranges from tangible-dominant to intangible-dominant is referred to as:

* * * * *

the services triangle the Servuction model the scale of market entities the service-profit chain the Q continuum

Businesses such as fast food restaurants would fall where along the Scale of Market Entities*

* * * * *

on the extreme end of the intangible-dominant side on the extreme end of the intangible-dominant side in the middle of the continuum left of the middle towards the tangible-dominant side right of the middle towards the intangible-dominant side

Which of the following fields would be least likely to be described as intangible-dominant*

* * * * *

manufacturing education insurance banking engineering

Which of the following products is an example of intangible dominant*

* * * * *

Outback steakhouse car rental agency a funeral a magazine subscription math tutoring

Which of the following statements is not true*

* * * * *

Service knowledge is obtained differently than goods knowledge. Firms that define their businesses too narrowly have developed marketing myopia. Goods are tangible-dominant. Service knowledge is obtained through the experience of receiving the actual service. All the above are true.

_______ results in the practice of too narrowly defining one’s business:

* * * * *

Services marketing Marketing management Marketing myopia Scale of market entities Customer experience

__________ involves a pictorial representation of the relationship between the tangible and intangible elements of a firm’s operation.

* * * * *

Molecular Model Servuction Model Benefit concept Industrial Management Model Market-focused Model

Which of the following could NOT be included in the airline molecular model*

* * * * *

long-term parking financing arrangements rental car availability gate attendants baggage handlers

The encapsulation of the benefits of product in the consumer's mind is called:

* * * * *

the Servuction Model the benefit concept the Service Triangle the Service-Profit Chain the Scale of Market Entities

According to the Servuction Model, factors that influence the customer's service experience include all of the following except:

* price

* * * *

contact personnel/service providers other customers servicescape organization and systems

Which of the following components of the Servuction Model is not visible to consumers*

* * * * *

servicescape organization and systems other customers contact personnel service providers

A customer who notices dirty silverware and a dirty floor in his/her favorite restaurant has been influenced by which of the following components of the Servuction Model*

* * * * *


Servicescape consists of which of the following features:

* * * * *

personal artifacts inanimate objects signs symbols all of the above

The component of the Servuction Model over which most service firms have the least control is:

* * * * *


If an office did not schedule as many people as were needed during a busy period, which of the following components of the Servuction Model has influenced the customer's experience*

* * * * *


A customer attempted to pay his bill with his American Express credit card; however, the service firm did not accept American Express. Which of the following components of the Servuction Model influenced the customer's experience*

* * * * *


The demand for services marketing knowledge has increased for all of the following reasons except:

* the tremendous growth in service-sector employment

* increasing service-sector contributions to the world economy * the deregulation of many service industries * the needed shift from industrial models of management to market-focused management approaches * the decline in service sector jobs Ranking from highest to lowest, the countries with the largest service sector employment are:

* * * * *

European Community, United States, Japan United States, Japan, European Community United States, European Community, Japan United States, European Community, Japan Japan, European Community, United States

With regards to service sector employment in the EU, which of the following statements is TRUE*

* * * * *

Between 2002 and 2012, 10% of all jobs were service jobs. 92% of the labour force is employed in service sector jobs. In 2007 144m were employed in the service sector. Employment in the service sector is declining as manufacturing grows. Europe is second to China in service sector employment.

What percentage of the EU’s Gross Domestic Product wass generated by the service sector in 2006*

* * * * *

88.2% 70.5% 60.1% 50.5% 45.7%

An approach to organizing a firm that focuses on revenues and operating costs and has its roots in manufacturing is called:

* * * * *

the operations management approach the industrial management approach the manufacturing management approach the market-focus management approach the services marketing approach

The industrial management model believes

* * * * *

employees want to do good work front-line personnel are more important than upper- and middle-managers technology should be used to assist employees labor and operating costs should be kept as low as possible front-line employees should be empowered to make decisions

According to the industrial management model, which one of the following statements is FALSE*

* * * * *

Location strategies, sales promotions, and advertising drives sales revenues. Employees are to be held to low job performance expectations. Only managers can solve problems. It is better to rely on machines, than humans. Technology should be used to assist employees, rather than to monitor or control them.

The management model that focuses on the components of the firm that facilitate the firm's service delivery system is called:

* the operations management approach

* * * *

the industrial management approach the manufacturing management approach the market-focused management approach the services marketing approach

According to the market-focused management model, which one of the following statements is TRUE*

* * * * *

Location strategies, sales promotions, and advertising drives sales revenues. Employees are to be held to low job performance expectations. Only managers can solve problems. It is better to rely on machines, than humans. Technology should be used to assist employees, rather than to monitor or control them.

According to the market-focused management model, which one of the following statements is FALSE*

* Companies should invest in people as much as machines. * Employee turnover and customer satisfaction are clearly related. * The higher the proportion of part-time to full-time employees, the more satisfied the customers. * New accounting measures are needed that reflect the focus on customer orientation. * Data collected and controlled by middle managers should be made available to front-line personnel. Which linkage within The Service Triangle reflects the ease with which a customer uses a bank's ATM*

* * * * *

The systems--the customer The service strategy--the customer The systems--the people The customer--the people The service strategy--the systems

Which linkage within The Service Triangle reflects Pizza Hut's strategy of communicating its commitment to service excellence to its employees through television commercials*

* * * * *

The systems--the customer The service strategy--the customer The systems--the people The customer--the people The service strategy--the people

Which linkage within The Service Triangle represents the interaction that creates "moments of truth" or "critical incidents"--the driving forces in customer satisfaction evaluations*

* * * * *

The systems--the customer The service strategy--the customer The systems--the people The customer--the people The service strategy--the people

The market-focused management model, supported by the service triangle, is based on the belief that:

* * * * *

front-line personnel tend to be more knowledgeable employees want to do good work customer satisfaction is related to employee turnover a new accounting measures should be used none of the above

Chapter 2: Fundamental Differences Between Goods and Services

Test Yourself on MIS Show questions one by one Services are characterized by all of the following characteristics except for:

* * * * *

intangibility homogeneity perishability inseparability heterogeneity

Which of the following statements is false*

* Services cannot be touched or seen in the same manner as goods. * Consumer judgments about services tend to be more subjective than objective. * Services are first produced, then sold, then consumed. * Services tend to vary from one transaction to the next. * Services cannot be inventoried. Of the four unique service characteristics that distinguish goods from services, the one that is the primary source of the other three characteristics is:

* * * * *

intangibility inseparability homogeneity perishability heterogeneity

Which of the following is not a marketing problem caused by intangibility*

* * * * *

Services lack the ability to be stored Services lack patent protection Services are difficult to price Services are difficult to communicate to consumers Consumers are involved in the service production process

Which of the following is a marketing problem caused by intangibility*

* * * * *

Services have no costs of goods sold. The consumer is involved in the production process. Other consumers are involved in the production process. Service standardization and quality control are difficult to achieve. Centralized mass production of services is difficult.

The primary cost of producing a service is

* * * * *

rent overhead cost of goods sold labour promotional expenses

Possible solutions that minimize the problems caused by intangibility include all of the following except:

* The use of tangible clues. * The effective management of consumers. * The creation of a strong organizational image.

* The use of personal sources of information. * Prudential's "Piece of the Rock" promotional strategy. The unique service characteristic that reflects the interconnection between the service firm and its customer is called:

* * * * *


Marketing problems caused by inseparability include all of the following except for:

* * * * *

The service provides physical connection to the service. The involvement of the customer in the production process. Service standardization and quality control are difficult to achieve. The involvement of other customers in the production process. All of the above are marketing problems caused by inseparability.

The fact that services are sold and then produced and consumed simultaneously is attributed to:

* * * * *


Which of the following statements pertain to inseparability is false*

* * * * *

As customer contact increases, the efficiency of the firm decreases. Customers can affect the type of service desired. Customers can affect the length of the service transaction. Customers can affect the cycle of demand. All the above statements are true.

The centralized mass production of services is difficult due to:

* * * * *

inseparability intangibility homogeneity perishability heterogeneity

Possible solutions that firms use to minimize the problems caused by inseparability include all of the following except:

* * * * *

The careful selection of service employees. The management of service consumers. The use of multisite locations to distribute services. The training of public contact personnel. Appealing to market segments with different demand patterns.

The primary solution to overcome the centralized mass production problems attributed to inseparability is:

* The careful selection of service employees. * The management of service consumers. * The use of multisite locations to distribute services.

* The training of public contact personnel. * Appealing to market segments with different demand patterns. The service characteristic that reflects the variation in consistency from one service transaction to the next is:

* * * * *


Which of the following statements pertaining to heterogeneity is false*

* It is almost impossible for a service operation to achieve 100 percent perfect quality on an ongoing basis. * Standardization and quality control are difficult to achieve. * Customers always prefer customized services over standardized services. * Customized services are generally more expensive than standardized services. * It is easier to customize services than goods. Which of the following is not an advantage of standardized services*

* * * * *

Less expensive Meets the customer's exact needs Delivered faster More consistent All the above are advantages of standardized services.

Solutions used to minimize the marketing problems attributed to heterogeneity include:

* * * * *

standardizing or customizing the service using multisite locations stressing tangible clues appealing to different market segments with different demand patterns using reservation systems

The unique service characteristic that deals specifically with the inability to inventory services is:

* * * * *


Complications attributed to perishability include all of the following except:

* Services which are not sold when they become available cease to exist. * The production and consumption of services cannot be separated by time and space. * Statistical sampling techniques are of little use in services. * Due to the lack of inventories, marketing and operations must work much closer together. * All of the above are complications associated with perishability. Which of the following scenarios is likely to lead to the highest levels of customer dissatisfaction*

* higher demand than maximum available supply * higher demand than optimal supply levels * lower demand than optimal supply levels

* demand and supply at optimal levels * all of the above scenarios result in customer dissatisfaction Which of the following strategies increases the supply of service available to consumers*

* * * * *

the use of creative pricing strategies the use of reservation systems capacity sharing developing complementary services developing nonpeak demand

Possible strategies for managing demand and minimizing the marketing problems associated with perishability include which of the following:

* * * * *

the use of creative pricing strategies the use of reservation systems developing complementary services developing nonpeak demand all of the above

The demand strategy in which service providers utilize their downtime by marketing to different segments with different demand patterns is associated with which of the following:

* * * * *

the use of creative pricing strategies the use of reservation systems capacity sharing developing complementary services developing nonpeak demand

A perishability-related strategy that increases the supply of service by forming a type of co-op among service providers that permits co-op members to expand their supply of services as a whole is referred to as:

* * * * *

co-op formation capacity sharing advance preparation for expansion the utilization of third parties creative management

Which of the following strategies increases the supply of service available to consumers*

* * * * *

increasing consumer participation the use of creative pricing strategies the use of reservation systems developing complementary services developing nonpeak demand

Which one of the following statements is true*

* The use of third parties increases the supply of service. * Reservation systems can be used to alter the demand for services. * Customer participation in services may result in some loss of control by the service establishment. * The marketing department of service organizations must maintain a much closer relationship with the rest of the organization than what is typical in a goods business. * All the above are true. The perishability-related strategy that may sometimes be associated with consumer feelings that the service firm may be attempting to distance itself from consumers is:

* * * * *

the use of reservation systems training public contact personnel the use of third-parties to conduct service transactions increasing the amount of consumer participation both a and d

Which one of the following strategies is used to alter consumer demand*

* * * * *

increasing consumer participation utilizing third parties utilizing creative pricing strategies sharing capacity preparing in advance for expansion

Which of the following would not be considered a tangible clue*

* * * * *

the quality of instruction in an educational setting the appearance of employees the appearance of the firm's physical facilities the smile on an employee's face the quality of paper stock use to produce a firm's brochures

Please match the appropriate unique service feature with the resulting marketing problem the feature causes. Centralized mass production of services is difficult.

* * * *

intangibility inseparability heterogeneity perishability

Standardization and quality control are difficult.

* * * *


Cannot protect services through patents.

* * * *


Prices are difficult to set.

* * * *


Other customers are involved in the production process.

* * * *


Please match the appropriate service feature with the marketing strategy suggested to compensate for the marketing difficulties associated with the feature. Standardize the service.

* * * *


Use tangible clues.

* * * *


Emphasize the selection and training of public contact personnel.

* * * *


Effectively manage consumers.

* * * *


Make adjustments between supply and demand to achieve a balance between the two.

* * * *


Chapter 3: An overview Of The Services Sector

Test Yourself on MIS Show questions one by one It is generally accepted that the _______ includes the “soft parts” of the economy consisting of several subsectors.

* * * * *

service economy industrial economy agricultural economy information economy goods economy

What is European classification scheme for economic activities and products*

* * * * *

ISIC NACE NICE NAICS EU sectors

Financial activities sector consists of all the following except:

* * * * *

Finance Insurance Social welfare Pensions Share brokerage

The world's largest industry in the private sector and highest projected generator of jobs is:

* * * * *

business services the hospitality industry health services professional services retail

1 in 4 Europeans are currently consuming services from which sector*

* * * * *

Education Healthcare Social assistance Professional services The food services

Which sector includes the internet provision industry*

* * * * *

Educational Finance Government Communications and Media Leisure and Hospitality

The service sector that is the fastest growing sector in terms of employment is:

* * * * *

Wholesale and retail trade Transportation and warehousing Financial activities Professional and business services Education and health services

The leisure and hospitality industry comprises a variety of services. Which of the following is not one of them*

* * * * *

food service lodging travel and tourism meeting and convention planning all the above are part of the hospitality industry

The leisure and hospitality sector accounted for what % of employment in Europe in 2007*

* * * * *

10.1 5.0 11.9 50 55

A large proportion of people employed in the hospitality and leisure sector are….

* Young * In first job

* Female * Part-time * All of the above The professional and business sector includes all of the following except:

* * * * *

computer services legal advice hospitals accounting architectural

Which sector should have the most concern for environmental issues*

* * * * *

Transport services Professional and Business Services Wholesale and Retail Trade Education and Health Services Other Services

Which of the following does not fit well within any of the sectors discussed*

* * * * *

pet services health care dentists physicians engineers

Most wholesalers are small, employing fewer than 50 workers. Which of the following is not an occupation in which two-thirds of wholesalers work*

* * * * *

Administrative support Sales Transportation Purchasing Material-moving

Traditional service classification schemes include all of the following except:

* * * * *

the degree of tangibility skill level of the provider appearance of the provider the degree of customer contact the goal of the service providers

Subsequent service classification schemes include all the following except:

* * * * *

Labour intensiveness Nature of the service Relationship with the customer Method of service delivery Nature of demand relative to supply

According to the text, the obsession with the Internet began around ________.

* 1975 * 1982 * 1991

* 1996 * 2000 An e-service is a (an) __________ available via the net.

* * * * *

service business process application information technology resource all of the above

E-services are also called ___________.

* * * * *

ISPs bASPs Telcos Aps-on-tap Aggregators

To date, the most successful distribution of e-services has occurred through ______.

* * * * *

telecommunication companies (telcos) Internet service providers (ISPs) Enterprise resource planning (ERP) vendors Application service providers/developers (ASPs) Monolithic design coordinators (MDCs)

E-services have overcome many of the traditional challenges faced by service marketers. Which of the following is not challenge overcome by the information-based services*

* * * * *

Intangibility Homogeneity Inseparability Heterogeneity Perishability

E-services can overcome some of the challenges provided by intangibility by which of the following*

* * * * *

Appearance of a website Accuracy of information Speed of the server Ease of navigation All of the above

Hotel rooms that are not sold on Thursday night cannot be added to the supply of rooms available for occupancy on Friday night. E-services are not faced with these problems*

* * * * *

Perishability Intangibility Homogeneity Inseparability Heterogeneity

Replacing tasks that required human labour with machines is called:

* * * *

Search Quantization Automation Industrialization

* Customization The breaking down of monolithic services into modular components is called:

* * * * *

Search Quantization Automation Industrialization Customization

The growth in the number of time-pressured consumers has led to an increase in time-saving services such as:

* * * * *

Restaurants Housekeeping Hairstyling shops Tax preparation All of the above

Which of the following statements about "woofs" is false*

* The term stands for "well-off older folks." * Woofs control allege percentage of wealth and discretionary income. * Woofs are engaged in "down aging" * Woofs are at least partly responsible for the increase in demand for amusement and recreation services. * All the above are true The migration of domestic jobs to foreign host countries is called:

* * * * *

Outservicing Outsourcing Offshoring Industrialization None of the above

The term that reflects the belief that without manufacturing, there will be less for people to service and more people available to do less work is:

* * * * *

Materialismo snobbery manufacturing superiority industrial champions manufacturing dichotomization none of the above

The service industry criticism that low wages will possibly lead to dramatic changes in future governments is:

* * * * *

Materialismo snobbery dichotomization of wealth service industries are slow to adopt new technology service productivity is weak service inflation is difficult to control

Several guidelines to success become clear when examining the growth and dominance of the service sector. Which of the following is not one of them*

* * * *

Excel at niche marketing Bigger is better Master technological change Excel at customer service

* Understand the value of customer retention Focusing the firm’s marketing efforts toward the existing customer base is called:

* * * * *

Customer retention Excellent customer service Conquest retention Courteous retention None of the above

Which of the following statements pertaining to firm's customer retention efforts is true*

* The marketing costs associated with keeping customers are higher than the costs associated with obtaining new customers * Existing customers tend to purchase less services less frequently. * Current customers are more efficient in their service transactions. * Reducing customer defections by 5 percent can increase profits by as much as 90 percent. * All of the above statements are false. The pursuit of new customers as opposed to the retention of existing ones is called:

* * * * *

Services marketing B2B marketing Conquest marketing Consumer marketing All of the above

Chapter 4: The Consumer Decision Process In Services Marketing

Test Yourself on MIS Show questions one by one According to the text which one of the following statements is false*

* Many service firms continue to be operations dominated rather than customer oriented. * Consumer orientation lies at the heart of the marketing concept. * Researchers clearly understand how consumers make decisions. * Differences exist between the way consumers make decisions regarding services versus goods. * All the above statements are true. The consumer decision process consists of:

* * * * *

stimulus, problem awareness, and purchase stages prepurchase, consumption, and postpurchase stages problem awareness, evaluation of alternatives, and postpurchase behavior stimulus, information search, and postpurchase behavior information search, purchase, and postpurchase behavior

The prepurchase stage consists of all of the following activities except for:

* * * * *

the approach problem awareness information search stimulus evaluation of alternatives

Consumers determine a shortage or unfulfilled desire exists during which stage of the consumer decision process.

* problem awareness

* * * *

information search evaluation of alternatives postpurchase evaluation the choice stage

Multiattribute models are used most during which stage of the consumer decision process.

* * * * *

stimulus evaluation problem awareness information search consumption stage evaluation of alternatives

Bill's parents finally convinced him to get a haircut. Bill's decision process was prompted by a:

* * * * *

physical cue psychological cue pressure cue social cue commercial cue

Which of the following is NOT an example of attribututes sought for Grant’s birthday*

* * * * *

location fun atmosphere talking to friends service delivery price

During the evaluation of alternatives stage, consumers sometime rely on their "gut-level feelings." This type of decision making is called:

* * * * *

the lexicographic approach a systematic approach a nonsystematic approach the linear compensatory approach the evoked set approach

Using figure 4.1 on p86, multi-attribute choice matrix and the information below, which restaurant should be selected for Grant’s birthday*:

* * * * *

TGI Bonviveur Casa Mia Tapan-Yaki Japanese restaurant Each customer's choice will differ based on their gut-level feelings.

Using figure 4.2 on p88, a model for post-purchase evaluation – did Grant enjoy TGI Fridays:

* Yes * No Using figure 4.2 p88, a model for post-purchase evaluation; which two attributes did Grant perceive to be less than expected and was therefore downgraded*

* fun atmosphere and location * fun atmosphere and quality food * fun atmosphere and price

* price and quality of food * price and location During which stage of the consumer decision process does acquisition, production and consumption become an entangled process.

* * * * *

the prepurchase stage the consumption stage the postpurchase stage the information search stage the problem awareness stage

The _____ is the last step in the consumer decision process.

* * * * *

postpurchase stage positioning stage problem identification stage prepurchase stage consumption stage

According to the text, which one of the following is a type of perceived risk*

* * * * *

financial risk performance risk social risk psychological risk all of the above

Co-producer risk is directly related to the concept of ______.

* * * * *

intangibility heterogeneity inseparability perishability nonstandardization


* service purchases are perceived as riskier than goods purchases * the participation of the consumer in the service process increases the amount of perceived risk * the variability in services increases the perceived risk associated with the purchase * consumers of services have less prepurchase information versus goods * services are primarily characterized by search attributes Attributes such as price, fit, and feel are called:

* * * * *

experience credence clearwater revival search

Services are primarily characterized by

* search attributes * experience attributes * credence attributes

* a and b * b and c The reason services have few search attributes is primarily attributed to:

* * * * *

inseparability heterogeneity intangibility perishability nonstandardization

Which of the following statements is not correct*

* Service consumers are more brand loyal * Personal sources of information are more important to service consumers versus nonpersonal sources * Service consumers have fewer alternatives to consider * Self-service is a viable alternative for many services * Customers always prefer customized services to standardized services Service consumers tend to be more brand loyal than goods consumers because _____.

* * * * *

More choices are available. Brand loyalty lowers the amount of perceived risk. Each service provider provides many brands. The prices of their main provider are usually less expensive. Location of the provider is the major driver in the consumer selection process.

The costs associated with changing from one provider to another are referred to as:

* * * * *

performance costs economic costs selection costs switching costs financial costs

The switching costs associated with the time it takes simply thinking about making a change in service providers is called:

* * * * *

emotional costs cognitive costs learning costs performance costs customer habit costs

Switching costs generally associated with changing from one service provider to another include all of the following except for:

* * * * *

performance costs loyal customer discounts emotional costs cognitive costs search costs

When changing dentists, the patient was required to pay for a new set of X-rays. This type of switching costs is referred to as:

* performance costs

* * * *

loyal customer discounts emotional costs cognitive costs transaction costs

Consumers of services tend to rely on personal sources of information more than nonpersonal sources for all of the following reasons except:

* Many service providers are small and lack the resources or expertise to use nonpersonal sources. * Opinion leaders play an important role in the purchase of services. * Due to intangibility, mass media is an effective tool for communicating with service consumers. * The use of personal sources reduces the risk associated with the purchase. * Professional restrictions may limit the use of nonpersonal sources of information in some service sectors. With regards to the number of service alternatives available, which of the following statements is false*

* Consumers are aware of fewer alternatives because less prepurchase information is available. * Self-service, in some instances, is a viable alternative. * In general, individual service providers tend to offer only one brand of service. * The evoked set for services is smaller. * All the above statements are correct. Which of the following statements about the consumption stage of the consumer decision process for services is not correct*

* The activities of buying, using, and disposing occur in a definite order and have clear boundaries between them. * The concept of disposal is irrelevant with regards to services. * The consumption stage is more complex for services than goods. * Consumer evaluation of the service occurs during and after consumption. * Service marketers are able to change consumer evaluations during the service encounter. Postpurchase models attempt to describe the process by which consumers evaluate their purchase decisions. Which of the following models evaluates services by comparing expectations with perceptions*

* * * * *

the role congruence model the perceived-control model the expectancy disconfirmation model the script perspective the Servuction model

The postpurchase model in which consumers evaluate services by the amount of influence they have over the service encounter is:

* * * *

the role congruence model the perceived-control model the expectancy disconfirmation model the script perspective

* the Servuction model The postpurchase model which is based on the idea that in a service encounter, customers and employees perform roles, and that satisfaction is a function of role congruence--where actual behaviors are consistent with expected roles is called:

* * * * *

the dissonance model the perceived-control model the expectancy disconfirmation model the script perspective the Servuction model

What type of control has the ability to control what is actually going on*

* * * * *

Behavioral control Cognitive control Service control Perception of control None of the above

Roles differ from scripts in that roles are:

* * * * *

extra-individual intra-individual capable of being modified through training modified over time with experience flexible

Scripts differ from roles in that scripts are:

* * * * *

extra-individual inflexible written intra-individual performed by both employees and customers

Scripts differ from roles in that:

* * * * *

scripts also concern the impact of the service setting scripts and roles are terms used to describe the same subject roles are intra-individual scripts are extra-individual scripts cannot be modified via training and experience

Chapter 5: Researching Service Markets

Test Yourself on MIS Show questions one by one Using information gathered from a range of sources can create…...

* * * *

new customers new markets competitive advantage none of the above

What is a marketing information system*

* An automated way of delivering the service to customers * A formal or informal process of managing the information gathered by an organisation * Computer software only

* A filing cabinet * A method for gathering information Competitor intelligence should be gathered once a year

* True * False Information gathered to address a particular marketing problem or requirement is…

* * * * *

Environmental scanning Government statistics marketing research not often needed internal data only

Which type of data comes from the day to day running of the organization*

* * * * *

Internal data External data Government statistics Market surveys Only quantitative

Which type of information comes from industry published reports*

* * * * *

Internal data Secondary data Only qualitative Operating data Only quantitative

A service company shuld gather data for...

* * * * *

objective setting customer analysis competitor analysis long term planning all of the above

Which one of the following provides quantitative data*

* * * * *

minutes of meetings newspaper articles discussion with sales force regional sales statistics telephone call from angry customer

Which one of the following provides qualitative data*

* * * * *

Debrief meeting with client Statistical analysis of customer survey Competitor sales figures Market share information Attitude ratings

Which of the following is not a method for administering a survey*

* Online * Post * Telephone

* In person * experiment Focus groups should

* * * * *

Consist of several participants Be run by an experienced facilitator Focus on areas of interest Gather in-depth qualitative data all of the above

Gathering in-depth qualitative data from an individual is best done via

* * * * *

a tick box survey a focus group observation in-depth interview secondary data

Mystery shopping is

* * * * *

Buying items that are not needed Researching a service by experiencing it as a customer would Spying on service employees Observing overtly A form of survey

Which of the following in untrue* Observation can be….

* * * * *

overt or covert used to understand motivation and attitude used to study customer movements used to gather quantitative and qualitative data done via video

One of the main problems with experiments in service industry situations is…

* * * * *

cost the information they provide controlling all the variables customers don’t like them animal rights campaigners

What percentage of data should come from outside of the firm:

* * * * *

80% 20% 15% 75% 0%

What should be at the centre of any marketing information system*

* * * *

A computer An IT expert Stakeholder information files Financial information

* A survey Information overload occurs when

* * * * *

consumers are told too much storage space is limited there are too few staff no marketing research is undertaken there is a mismanaged quantity of information

A successful information system requires little in terms of staff resources and expertise.

* True * False In using information on customers service companies should….

* * * *

ensure they have permission to do so comply with the Data Protection Act behave ethically all of the above

Chapter 6: Service Development and Innovation

Test Yourself on MIS Show questions one by one In the UK and Germany what percentage of the workforce are employed in service organizations*

* * * * *

8% 5% 15% 2% 20%

It is important for organizations to change and develop. The stages that service organisations go through are known as the Product Life Cycle. The Product Development Stage refers to:

* * * * *

ideas conceived and researched ideas conceived and launched research and launch research and awareness building none of the above

It is important for organizations to change and develop. The stages that service organisations go through are known as the Product Life Cycle. The Introduction Stage refers to:

* * * * *

introducing a change to the service introducing new service overseas introducing new ideas to the market introducing existing services to new markets none of the above

It is important for organizations to change and develop. The stages that service organisations go through are known as the Product Life Cycle. The Growth Stage refers to:

* * * * *

growth of the new service in the minds of employees introduction of new services to grow the portfolio of the company grow advertising spend to loyal customers raise awareness new service to new customer none of the above

It is important for organizations to change and develop. The stages that service organisations go through are known as the Product Life Cycle. The Maturity Stage refers to:

* * * * *

sales reach their peak new services are targeted at the mature market sales with the mature market are declined sales begin to grow in the mature market none of the above

It is important for organizations to change and develop. The stages that service organisations go through are known as the Product Life Cycle. The Saturation Stage refers to:

* * * * *

All competitors leave the market place New competitors join the market place Many competitors seeking the same customers All competitors seek the same customers None of the above

It is important for organizations to change and develop. The stages that service organisations go through are known as the Product Life Cycle. The Decline Stage refers to:

* * * * *

Sales decline but remain profitable Profitability improves and sales decline Sales increase and profitability declines Profitability declines and sales decline none of the above

Which of the following was NOT discussed as a Driver for Service Change*

* * * * *

Regulations Perishability Consumer Competitors Seasonal patterns

Which strategy option is more intense than others*

* * * * *

sell new services to existing customers sell more existing services to existing customers sell existing services o new customers sell new services to new customers all of the above

The characteristics of what and when new services are delivered and how they are delivered to the customer are called:

* * * * *

continuum of new service development service delivery continuum continuum of service delivery new service and customer delivery continuum customer delivery continuum

Niklas Zenstrom and Janus Friis created a new internet service called Skype. Which new service development did they introduce*

* * * *

Major process innovation Process-line extensions Service improvements Style changes

* Major service innovations Top Shop recently introduced a Personal Shopper at some of the larger stores. Which new service development did they introduce*

* * * * *

Major process innovation Process-line extensions Service improvements Style changes Major service innovations

The Polish Open University (POU) offers two modes of study in two different languages. Considering the E-learning mode of study, in English or Polish at POU, which service development did they introduce*

* * * * *

Major process innovation Process-line extensions Product-line extensions Style changes Major service innovations

BA recently introduced BA CityFlyer. Which service development did they introduce*

* * * * *

Major process innovation Process-line extensions Product-line extensions Style changes Major service innovations

First Bus employees recently received their staff uniform. The blazer now includes a pocket on the inside so hold a mobile phone; an item given to all drivers to report emergencies or breakdown* The new blazer’s development to service is classed as:

* * * * *

Major process innovation Process-line extensions Service improvements Style changes Major service innovations

Creating an environment for innovation and creativity is important. To encourage innovation and creativity 8 activities should be included. Which of the following includes autonomy, independence and initiative*

* * * * *

Risk-taking Playfulness and humour Idea time Freedom Debate

Creating an environment for innovation and creativity is important. To encourage innovation and creativity 8 activities should be included. Which of the following includes spontaneity, fun and laughter*

* * * * *


Creating an environment for innovation and creativity is important. To encourage innovation and creativity 8 activities should be included. Which of the following includes tolerance of uncertainty, ambiguity and the chance to “take a gamble”*

* * * * *


Creating an environment for innovation and creativity is important. To encourage innovation and creativity 8 activities should be included. Which of the following includes encounters with others and disagreement*

* * * * *


Creating an environment for innovation and creativity is important. To encourage innovation and creativity 8 activities should be included. Which of the following includes flexible deadlines, flexible opportunities to explore and develop ideas*

* * * * *


The new service development process includes several stages. Which stage means organisations have to consider sales, set-up costs and profitability*

* * * * *

Hire and train personnel Cross-functional team Pilot run Idea generation Business analysis

The new service development process includes several stages. Which stage means organisations have to stimulate the customer/personnel interface and role-play all situations*

* * * * *


The new service development process includes several stages. Which stage means organisations have to ensure staff across all department work together and know their role*

* * * *

Hire and train personnel Cross-functional team Pilot run Idea generation

* Business analysis The new service development process includes several stages. Which stage means organisations have to review comments from customer comments cards, B2B feedback and market trends*

* * * * *


The new service development process includes several stages. Which stage means organisations have to advertise and recruit employees*

* * * * *


The service industry has several emerging trends that organisations need to be aware of. Which of these should organisations keep a look out for*

* * * * *

new competitors entering the marketplace advances in the internet heightened customer expectations advances in e-commerce all of the above

Chapter 7: Service Delivery Process

Test Yourself on MIS Show questions one by one The manner in which “operational competitiveness” is embraced by various service firms can be described by all the following stages except:

* * * * *

available for service marketing and operations journeyman distinctive competencies achieved world-class service delivery

Customers ultimately determine:

* * * * *

the type of demand the levels of marketing effectiveness and operational efficiency the cycle of demand the length of the service experience all of the above

The place within an organization where its primary operations are conducted is called:

* * * * *

technical core organizational point factory main system none of the above

The strategy of breaking up large, unfocused plants into smaller units buffered from one another so that each can be focused separately is referred to as:

* * * * *

the perfect-world model operations segmentation the plant-within-a-plant concept operations segregation management by focus

The major goal of the plant-within-a-plant-concept is to:

* produce a variety of services in one location * reduce operating costs * provider quicker response times to market demand * break up large, unfocused plants into smaller units buffered from one another so that each can be focused separately * none of the above According to Thompson's Perfect-world model, perfect efficiency occurs when:

* employees understand their jobs * role congruence occurs between customers and employees * inputs, outputs, and quality happen at a constant rate and remain known and certain * customer needs are being met * when the operation concentrates on performing one particular task in one particular part of the plant Strategies to increase the efficiency of service operations include all of the following except:

* * * * *

buffering smoothing anticipating rationing all the above

The strategy that resorts to triage when the demands placed on the system by the environment exceed its ability to handle them is referred to as:

* * * * *

buffering smoothing anticipating rationing allocating

The strategy that surrounds the technical core of the operation with input and output components is called:

* * * * *

buffering smoothing anticipating rationing all the above

Which of the following strategy is not on the list regarding overcoming some of the problems of service operations*

* isolating the technical core * production-lining the whole system

* creating flexible capacity * increasing customer participation * maximizing the servuction system The objective of decoupling is:

* separating consumption in time and space * unbundling services so that the may be purchased separately * separating the technical core of the operation from the high customer contact areas of the firm so that efficiencies may be achieved * managing consumers so that they do negatively influence one anothers service experience * separating co-workers who, due to their differences, decrease the operational efficiency of the system Production-lining a service operation can be achieved through:

* * * * *

utilizing hard technologies customizing services utilizing soft technologies meeting individual customer needs a and c

With regards to the concept of "production-lining", the rules, regulations, and procedures that facilitate the production of a standardized product are called:

* * * * *

guidelines specifications soft technologies organizational standards codes of conduct

Soft technologies refer to:

* the personal touches that ultimately lead to customer satisfaction * flexible rules that can be bent to meet customer needs * guidelines that permit employee empowerment * hardware that facilitates the production of a standardized product * rules, regulations, and procedures that facilitate the production of a standardized product An Automatic Teller Machine (ATM) is an example of:

* * * * *

hard technology soft technology the perfect-world-model complexity divergence

One of the most common techniques used to analyze and manage complex processes is:

* * * * *

CAD analysis blueprinting sequencing process analysis decoupling

Blueprints identify all of the following process steps except:

* * * * *

the direction in which processes flow the time it takes to move from one process to the next the costs involved with each process site the amount of inventory build-up at each step all the above are identified in a flowchart

With regards to constructing a service blueprint, the time required to perform one activity at one station is called:

* * * * *

process time activity time maximum output per hour operation time bottleneck time

The following question is based on the below cafeteria flowchart and the information provided in the table. Customers start at counter A and move to Counter B. Customers then choose one of two counter Cs and then move on toward Counter D. Customers then choose one of two counter Es and then move on toward Counter E.

What is the activity time for Counter C*

* * * *

10 seconds 20 seconds 30 seconds 45 seconds

* 60 seconds The following question is based on the below cafeteria flowchart and the information provided in the table. Customers start at counter A and move to Counter B. Customers then choose one of two counter Cs and then move on toward Counter D. Customers then choose one of two counter Es and then move on toward Counter E.

What is the process time for Counter E*

* * * * *

10 seconds 15 seconds 20 seconds 30 seconds 60 seconds


Which of the following counters produces a maximum output per hour of 240 customers*

* * * * *

Counter A Counter B Counter C Counter D Counter E


How many customer can this cafeteria process in an hour*

* * * * *

360 120 90 240 180


Based on its current configuration, the cafeteria's service cost per meal is:

* * * * *

$42.00 $ .11 $ .46 $ 2.14 $ .62


Where is the bottleneck located in this example*

* * * * *

Counter A Counter B Counter C Counter D Counter E


If an extra counter is added at the bottleneck location, how many customers can the cafeteria process in an hour*

* * * * *

360 120 90 240 180


If an extra counter is located at the bottleneck location, what is the new service cost per meal*

* * * * *

$49.00 $ .52 $ .46 $ 2.14 $ 1.90

A service operation consists of four stations. Station One can process 150 customers per hour. Station Two can process 300 customers per hour. Stations Three can process 100 customers per hour, and Station Four can process 150 customers per hour. What is the maximum number of customers the entire operation can process in an hour*

* * * * *

700 300 150 100 none of the above

The __________ is calculated by dividing the activity time by the number of locations at which the activity is performed.

* * * * *

service cost per meal maximum output per hour process time activity time bottleneck time

The most common mistake made when constructing a service blueprint is:

* bottlenecks are not identified correctly * failure points are not identified correctly * the blueprint is one-sided -representing only the firm's perception of the process * script norms are misunderstood * the time frame for service execution is miscalculated Which of the following is not a step in the construction process of a service blueprint*

* * * * *

obtaining scripts from both customers and employees segmenting customers based on the content of the script dentify steps in the process where the system can go awry calculating the time frame for service execution analyzing the profitability of the system

A volume-oriented positioning strategy is achieved by:

* * * * *

increasing divergence reducing divergence increasing complexity reducing complexity unbundling the service

The positioning strategy that increases divergence so that the operation can tailor the service experience to each customer is referred to as:

* * * * *

niche positioning strategy volume-oriented positioning strategy specialization positioning strategy penetration strategy market diversification strategy

A specialization positioning strategy is accomplished by:

* * * * *

increasing divergence reducing divergence increasing complexity reducing complexity unbundling the service

The positioning strategy that increases complexity by adding more services and/or enhancing current services to capture more of the market is referred to as:

* * * * *

niche positioning strategy volume-oriented positioning strategy specialization positioning strategy penetration strategy market diversification strategy

Divesting an operation of different services and concentrating on providing only one or a few services in order to pursue a specialization position strategy is called:

* * * *

increasing divergence reducing divergence increasing complexity unbundling the service

* none of the above Chapter 8: The Pricing of Services

Test Yourself on MIS Show questions one by one A buyer's perception of value is considered a tradeoff between:

* * * * *

product value and psychic cost total customer value and total customer cost image value and energy cost service value and monetary cost personnel value and time cost

Total customer value consists of all of the following components except:

* * * * *

product value service value image value time value personnel value

Total customer cost consists of all of the following components except:

* * * * *

monetary cost social cost time cost psychic cost energy cost

Consumers exchange their money, time, and effort for the bundle of benefits the service offers. Theory suggests that consumers will have a ___________ that captures the value they place on these benefits.

* * * * *

lower price threshold reservation price consumer surplus image value product value

When pricing a service, the service provider should consider all of the following except __________.

* * * * *

demand considerations cost considerations customer considerations product considerations all the above should be considered

A consumer’s price sensitivity will increase as:

* * * * *

the perceived number of substitutes increase switching costs increase the shared costs for the expenditure increase the perceived unique value of the service increases the customer’s ability to build an inventory decreases

A consumer’s price sensitivity will increase as:

* the perceived number of substitutes decrease * switching costs increase * the shared costs for the expenditure increase

* the perceived unique value of the service increases * the customer’s ability to build an inventory increases A consumer’s price sensitivity will decrease as:

* * * * *

the perceived number of substitutes increase switching costs increase the shared costs for the expenditure decreases the perceived unique value of the service decreases the customer’s ability to build an inventory increases

A consumer’s price sensitivity will decrease as:

* * * * *

the perceived number of substitutes increase switching costs decrease the shared costs for the expenditure increase the perceived unique value of the service decreases the customer’s ability to build an inventory increases

Which of the following statements about the pricing of services (compared to the pricing of goods) is false*

* * * * *

The demand for services tends to be more elastic than the demand for goods. Cost-oriented pricing is more difficult for services. Comparing prices of competitors is more difficult for service consumers. Self-service is a viable competitive alternative. Consumers are less able to stockpile services by taking advantage of discount prices.

Which of the following statements about the pricing of services (compared to the pricing of goods) is false*

* * * * *

The demand for services tends to be more inelastic than the demand for goods. Cost-oriented pricing is more difficult for services. Comparing prices of competitors is more difficult for service consumers. Self-service is a viable competitive alternative. Consumers are more able to stockpile services by taking advantage of discount prices.

Which of the following statements about the pricing of services (compared to the pricing of goods) is true*

* * * * *

The demand for services tends to be more elastic than the demand for goods. Cost-oriented pricing is more difficult for services. Comparing prices of competitors is less difficult for service consumers. Self-service is not a viable competitive alternative. Consumers are more able to stockpile services by taking advantage of discount prices.

Which of the following statements about the pricing of services (compared to the pricing of goods) is true*

* * * * *

The demand for services tends to be more elastic than the demand for goods. Cost-oriented pricing is less difficult for services. Comparing prices of competitors is less difficult for service consumers. Self-service is a viable competitive alternative. Consumers are more able to stockpile services by taking advantage of discount prices.

The mental energy spent by customers to acquire service is referred to as _____.

* * * * *

image costs monetary price energy costs psychic costs time costs

Brand equity is most similar to:

* * * * *

psychic value image value service value product value personnel value

If the negative effect of cross-price elasticity in which the increasing price of one service decreases the demand for another service are said to be __________.

* * * * *

unitary substitutes complementary inelastic elastic

If the positive effect of cross-price elasticity in which the increasing price of one service increases the demand for another service are said to be __________.

* * * * *

unitary substitutes complementary inelastic elastic

Which of the following is not a criteria for effective price discrimination*

* * * * *

the segments should be identifiable, and a mechanism must exist to price them differently. different groups of consumers should have similar responses to price segments should be large enough to be profitable incremental revenues should exceed incremental costs customers should not be confused

If the goal of the pricing strategy is to reduce the amount of perceived risk associated with the purchase and appeal to target markets that value certainty, then the appropriate pricing strategy would be:

* * * * *

relationship pricing price bundling mixed bundling efficiency pricing flat-rate pricing

Which one of the following is not a form of satisfaction-based pricing*

* * * * *

offering guarantees benefit-driven pricing flat-rate pricing relationship pricing all the above are forms of satisfaction-based pricing

The pricing strategy that charges customers for services actually used as opposed to overall "membership" fees is:

* * * * *

relationship pricing price bundling benefit-driven pricing flat-rate pricing efficiency pricing

The pricing strategy that enhances the firm's relationship with its targeted consumers and is a form of relationship pricing is:

* * * * *

activity-based costing price bundling benefit-driven pricing flat-rate pricing efficiency pricing

Southwest airlines appeals to economically-minded consumers who are looking for the best price by flying shorter, more direct routes to less congested, less expensive airports. Southwest Airlines practices:

* * * * *


Traditionally, overhead in most service firms has been allocated to projects based on the amount of ____________ charged to complete the customer's requirements.

* * * * *

direct labor fixed costs time number of employees number of time sheet entries

The approach that allocates overhead to each project based on the activities undertaken to complete the project is called:

* * * * *

activity-based costing price bundling benefit-driven pricing flat-rate pricing efficiency pricing

Customer frustration resulting from receiving poor service is most similar to:

* * * * *

image costs monetary price energy costs psychic costs time costs

many services, the demand for medical services tends to be __________.

* * * * *

inelastic elastic substitute demand complementary demand price cross elastic demand

Effective boundary spanners enhance the __________ of services.

* * * * *

product value service value image value time value personnel value

Costs that are planned and are accrued during the operating period regardless of the level of production and sales are called:

* * * * *

fixed costs direct variable costs average costs marginal costs future costs

Costs such as direct labour and sales commissions are called:

* * * * *

fixed costs variable costs average costs marginal costs future costs

Charging customers different prices for essentially the same service is called:

* * * * *

price discrimination supply and demand complementary substitutes none of the above

The tasks in activity based costing are thought of as “users” of overhead and identified as:

* * * * *

fixed costs cost drivers variable costs project costs cost labor

Technique that allows consumers to either buy Service A and Service B together or purchase one service separately is called:

* * * * *

long-term bundling price bundling mixed bundling relations bundling product bundling

Which pricing strategies encourage the customer to expand his/her dealings with the service provider*

* * * * *


Studies suggest that price is more likely to be used as a cue to quality under the following conditions*

* * * * *

when price is the primary differential information available when alternatives are heterogeneous prior to purchase when comparative price differences are relatively large all of the above

Chapter 9: Developing the Service Communications Mix

Test Yourself on MIS Show questions one by one

Communication channels that are considered impersonal, such as television advertising or printed information are called:

* * * * *

nonpersonal sources personal sources impersonal sources face-to-face sources noncommunication sources

The primary role of a service firm's communication mix is to:

* * * * *

remind customers persuade customers inform customers all of the above none of the above

Which of the following is not an element of a service firm's communication mix*

* * * * *

personal selling sales promotion positioning strategy advertising publicity and public relations

The plan for differentiating the firm from its competitors in consumer's eyes is referred to as the firm's:

* * * * *

communication mix positioning strategy publicity public relations target marketing

Differentiation approaches such as competence, courtesy, reliability, and responsiveness are forms of:

* * * * *

product differentiation personnel differentiation image differentiation service differentiation satisfaction differentiation

Differentiation approaches such as delivery, installation, customer training, and repair are forms of:

* * * * *

product differentiation personnel differentiation image differentiation service differentiation satisfaction differentiation

According to the text, the appropriate communication content during the introduction stage of the product life cycle would be:

* * * * *

informational informational and persuasive persuasive persuasive and reminder reminder

Which of the following is not a communication objective during the maturity and decline stages of the product life cycle*

* * * * *

encourage repeat purchases provide an ongoing contact with customers prepare the way for personal selling efforts express gratitude to the existing customer base confirm past purchase decisions

Which one of the following communication approaches would be appropriate during the growth and maturity stages of the product life cycle*

* * * * *

informational informational and persuasive persuasive persuasive and reminder reminder

When targeting users versus nonusers, which form of communication, can be used more often with the former than the latter*

* * * * *

publicity advertising service provider public relations sales promotions

Service staff that are required to deal with customers quick and effectively in "once only" situations where large numbers of customers are present are called:

* * * * *

type 1 staff type 2 staff type 3 staff type 4 staff type 5 staff

The typical McDonald's employee who works the front counter would be considered:

* * * * *


Banking personnel would be considered:

* * * * *

type 1 staff type 2 staff type 3 staff type 4 staff the answer would vary depending on their job in the bank

Consultants who have to have more highly developed communication skills because of more extended and complex interactions with customers would be considered:

* * * * *


Staff that predominantly fill an operations role are considered:

* * * * *


According to the text, the primary objective of a firm's communication mix during the preconsumption choice stage is to:

* make the sell * minimize the perceived risk associated with the purchase * encourage repeat purchases * persuasively convince customers why the firm's brand is superior to the competition's * use advertising to prepare the way for personal selling efforts The perceived consequences of a consumer’s purchase decision are:

* * * * *

financial social performance all of the above none of the above

Multi-attribute models, such as the rational mathematician model, utilize a choice matrix of attributes, brand scores, and importance weights. Communications can be used to try to influence consumer choice by:

* * * * *

altering the weights consumers attach to different attributes altering the score on a given attribute for the company altering the score on a given attribute for a competitor build awareness so that the company is included in the evoked set all of the above

According to the text, the primary objective of a firm's communication mix during the consumption stage is to:

* make the sell * minimize the perceived risk associated with the purchase * encourage repeat purchases * persuasively convince customers why the firm's brand is superior to the competition's * provide the consumer with a clear script so that they may perform their production role successfully Which of the following communication objectives becomes the most important during the postconsumption evaluation stage*

* * * * *

informing customers managing customer expectations reducing consumer perceived risk persuading customers becoming part of the customer's evoked set of alternatives

An objective, measurable level of performance produced by the operating system of the firm is called:

* * * *

mistargeted communication managing expectations technical service quality perception

* none of the above Word-of-Mouth communication networks are particularly important for service firms because:

* * * * *

service customers tend to rely more on personal than nonpersonal source of information service firms only offer one brand of service service firms can seldom afford to pay for promotional efforts the inseparability of service performance service customers tend to rely more on nonpersonal than personal sources of information

The suggested communication strategy to use when the product is intangible dominant is to:

* * * * *

create an intangible image for the product create awareness for the product surround the product with tangible evidence make sure the product is in the evoked set of alternatives differentiate the service product from service delivery

The suggested communication strategy to use when the product is tangible dominant is to:

* * * * *

create an intangible image for the product create awareness for the product surround the product with tangible evidence make sure the product is in the evoked set of alternatives differentiate the service product from service delivery

The suggested communication strategy to use when the service firm is a restaurant that offers food and service is to:

* * * * *

create an intangible image for the product create awareness for the product surround the product with tangible evidence differentiate the service product from service delivery both a and c

Which of the following is not a recommended guideline for developing service communications*

* * * * *

tangibilize the intangible promise what is possible reduce consumer fears about variation in performance make the service more abstract feature the working relationship between provider and customer

Churchill’s dog is a good example of which of the following guidelines for developing service communications*

* * * * *

tangibilize the intangible promise what is possible reduce consumer fears about variation in performance make the service more abstract feature the working relationship between provider and customer

A firm that offers "service guarantees" is attempting to accomplish which of the following guidelines for developing service communications*

* * * * *

tangibilize the intangible develop a word-of-mouth communication's network reduce consumer fears about variation in performance feature the working relationship between provider and customer none of the above

__________ is an overall favorable impression or unfavorable impression based on early stages of the service encounter.

* * * * *

cognitive dissonance environmental stimulus visual pathway halo effect technical service quality

E-marketing communications have the advantage of...

* * * *

reaching a widely dispersed audience being cost effective being personalized all of the above

A disadvantage of e-marketing is…

* * * *

high cost low reach loss of personal contact all of the above

Chapter 10: Managing the Firm's Physical Evidence

Test Yourself on MIS Show questions one by one Which of the following is not a component of a service firm's physical evidence*

* * * * *

parking employee appearance billing statements business equipment customer satisfaction

Which of the following is not a component of a service firm's physical evidence*

* * * * *

exterior design landscaping firm brochures parking all the above are components of a firm's physical evidence

Which of the following is NOT an element of the physical evidence for a Dance Studio*

* * * * *

its parquet dance floor its ad in the local newspaper how experienced its dance instructors are its website a brochure describing its dance lessons and its various payment plans

Which of the following is not a major role of a service firm's physical evidence*

* * * * *

socializing employees and customers providing a means for differentiation providing a means for customer price comparisons facilitating the flow of the service delivery process packaging the service

According to the text, one of the advantages of requiring employees to wear uniforms is that it reduces the customer's perception of __________.

* * * * *

intangibility inseparability heterogeneity socialization perishability

According to the text, which of the following is not an advantage of requiring employees to wear uniforms*

* * * * *

identifies the firm's personnel assists in controlling deviant members provides price expectations to customers implies a coherent group structure provides a physical symbol that embodies the group's ideals and attributes

Pregnant military personnel were originally permitted to wear civilian clothing when pregnant in lieu of their traditional military uniforms. After implementing this policy, the military observed:

* grateful personnel who could now wear their own clothes * jealousy from other personnel who were required to wear uniforms * a wide array of dress styles on base * personnel who were upset because they now had to worry about what to wear everyday * discipline and morale problems because these personnel had begun to lose their identification with their roles as soldiers __________ is the study of the use of physical evidence to create service environments and its influence on the perceptions and behaviors of individuals.

* * * * *

ergonomics environmental psychology physics physical sociology environmental anthropology

The __________ model helps explain the effects of the service environment on consumer behavior.

* * * * *

Servuction model scale of market entities conceptual model of service quality service blueprint stimulus-organism-response

The component of the SOR model which describes the recipient of environmental stimuli is:

* * * * *

stimulus receiver organism organizations responder stimuli receptor

The emotional state that reflects feelings of control and the ability to act freely within the service environment is referred to as:

* * * * *

pleasure-displeasure arousal-nonarousal approach-avoidance dominance-submissiveness cognitive-physiological

Consumer responses to environmental stimuli are characterized by approach or avoidance behaviors. Consumer approach behavior is defined as:

* * * * *

a desire to stay a desire to explore a desire to communicate feelings of satisfaction all the above are approach behaviors

Which of the following is an example of an approach behavior*

* * * * *

spending money interacting with employees browsing being brand loyal to a service all of the above

When developing servicescapes, firm's recognize that their physical environment will affect employees and customers. This is due primarily to:

* * * * *

inseparability intangibility heterogeneity perishability none of the above

Which of the following is NOT an example of an ambient condition in a retail environment*

* * * * *

music signs scents lighting colors

Ambient conditions will have the least effect on customer behavior in which of the following servicescapes*

* * * * *

a bakery shop an air-conditioned hotel on a hot July day an open five-story parking garage bookstore with an in-store coffee cart a movie theater

In a(n) _______ environment, the service employees are physically present while customers are involved in the service production process at an arm’s length.

* * * * *

self-service vertical service remote service saleable service interpersonal service

A __________ is the customer's composite of mental images of the service firm's physical facilities.

* * * * *

internal response moderators perceived servicescape cognitive response emotional response physiological response

Consumers who seek convenience over price and personal attention are:

* * * * *

economic customers personalized customers apathetic customers ethical customers elastic customers

Which of the following mediates the reaction between the perceived servicescape and customer's and employee's responses to the service environment*

* * * * *

internal response moderators the holistic environment individual behaviors social interactions physical environmental dimensions

The emotional states of pleasure-displeasure, arousal-nonarousal, and dominance-submissiveness are types of __________.

* * * * *

internal response moderators the holistic environment individual behaviors social interactions physical environmental dimensions

Consumer beliefs, categorization and symbolic meaning are types of:

* * * * *

physiological customer responses emotional customer responses individual approach behaviors internal response moderators cognitive customer responses

Consumer moods and attitudes are types of:

* * * * *


Consumer feelings of pain, comfort, and physical fit are types of:

* * * * *


Which of the following senses conveys more information than any of the others*

* * * * *

sight sound scent touch taste

The three primary visual stimuli that appeal to consumers on a basic level are:

* harmony, contrast, and clash

* * * *

size, shape, and color blue, yellow, and green red, blue, and green violet, blue, and red

The actual size of the firm's facility conveys meanings to the firm's target market. Which of the following most accurately describes customer perceptions regarding small facilities*

* * * * *

important powerful personal successful stable

Which of the following statements pertaining to colors is false*

* * * * *

Hues are the actual colors such as red, blue, or yellow. Warm colors are perceived as aloof or formal. Children appear to favor brighter colors. Adults tend to favor softer tones. Dark colors make large empty spaces look smaller.

Which of the following statements pertaining to the location of the firm is false*

* Location decisions should consider the amount of customer involvement necessary to provide the service. * Low contact firms should consider moving sites that are closer to sources of supply, transportation and labor. * The actual location of high-contact services should be a close to the street as possible. * Parking should be considered when making site selection decisions. * The firm's facility should be compatible with its surrounding environment. According to results of a study that examined the effects of music on restaurant patrons, which of the following statements is true*

* * * * *

consumers spent more money when fast music was played customers were served faster when slow music was played customers had higher bar bills when slower music was played estimated gross margins were higher when fast music was played customers were willing to wait longer for a table when fast music was played

Which of the following color combinations are all warm colors*

* * * * *

red, blue, green yellow, blue, violet red, yellow, green yellow, red, orange orange, blue, green

Which of the following colors is perceived as aloof, icy and formal*

* * * * *

red blue yellow orange all of the above


* * * * *

combinations of warm and cool colors can create relaxing, yet stimulating atmospheres. lighter hues are popular for fixtures darker hues are used for attention grabbers too much violet may dampen consumer spirits all the above are true

__________ encourage quick decisions and work best for businesses where low-involvement purchase decisions are made.

* * * * *

response moderators scent appeals warm colors sound appeals taste appeals

__________ are favored when the customer needs to take time to make decisions, such as the time needed to make high-involvement decisions.

* * * * *

cool colors scent appeals warm colors sound appeals taste appeals

Chapter 11: People Issues - Managing Service Employees

Test Yourself on MIS Show questions one by one The two primary roles that boundary-spanning personnel fulfil are:

* * * * *

sales and profit-production sales and customer service information transfer and representation process flow and service information transfer and profit production

Which of the following is a boundary spanner*

* * * * *

University lecturer Top Shop customer service representatives McDonald’s order takers restaurant servers all of the above

Boundary-spanning personnel typically experience different sources of conflict while performing their roles. Which of the following is not one of the sources*

* * * * *

person/role conflict channel conflict organization/client conflict inter-client conflict all the above are sources of boundary spanning conflict

When a plastic surgeon feels a conflict between what he/she is asked to do and her own orientation or values she is experiencing ______ conflict.

* person/role conflict * channel conflict * organization/client conflict

* inter-client conflict * horizontal conflict Initially, bank counter staff were uncomfortable with their new task of selling services to customers. They viewed themselves as bank counter staff and not salespersons. This is an example of which type of conflict*

* * * * *

person/role conflict channel conflict organization/client conflict inter-client conflict all the above are sources of conflict

Employees who feel that they are often caught in the middle between company rules and regulations and customer requests for services which are against company rules are experiencing which of the following types of conflict*

* * * * *


A Disney Tram driver that is asked to break-up a fight between a feuding couple who is breaking off their engagement is experiencing which of the following types of conflict*

* * * * *


Employees often attempt to reduce their role stress by engaging in a number of behaviours. Which of the following is not one of these behaviours*

* * * * *

ignore the customer engage in a people-processing mode use physical symbols in their office to regain some sense of control overact the role and place the customer in a subservient role all the above are ways employees attempt to reduce role stress

Employee perceptions of one or more organizational strategic imperative is called ____________.

* * * * *

empowerment enfranchisement service passion climate production-lining

__________ gives discretion to front-line personnel to meet the needs of consumer's creatively.

* * * * *

empowerment enfranchisement service passion service climate production-lining

__________ combines with empowerment a compensation method that ties pay to performance.

* * * * *

double empowerment straight salary enfranchisement quota systems straight commission

Which of the following is not a benefit associated with empowerment*

* * * * *

quicker response to customer needs quicker response to dissatisfied customers employees feel better about their jobs and themselves employees interact with customers with more enthusiasm all the above are advantages of empowerment

Which of the following is not a benefit associated with empowerment*

* * * * *

quicker response to customer needs larger investment is needed in selection and training of personnel quicker response to dissatisfied customers employees feel better about their jobs and themselves employees interact with customers with more enthusiasm

Which of the following is not a cost associated with empowerment*

* * * * *

higher labour costs slower or inconsistent service delivery decreased word-of-mouth advertising giveaways and bad decisions some customers think others receive preferential treatment

One of the potential costs in employee empowerment is:

* * * * *

higher labour costs slower responses to dissatisfied customers decreased word-of-mouth advertising increased employee dissatisfaction increased customer dissatisfaction

Empowerment approaches fall along a continuum that ranges from controloriented to involvement-oriented. Which of the following empowerment approaches is the least involvement-oriented*

* * * * *

job involvement suggestion involvement high involvement enfranchisement contingency involvement

The empowerment approach that allows employees to use a variety of skills and teams, but higher level decisions such as reward allocation are left to senior management to decide is called:

* * * *

job involvement suggestion involvement high involvement production line approach

* contingency involvement The empowerment approach that trains people to manage themselves is called:

* * * * *

job involvement suggestion involvement high involvement production-line approach contingency involvement

Indicate whether the service firm should employ a production line approach or an empowerment approach under the conditions below: The technology involved with the business is non-routine and complex.

* production line approach * empowerment approach Indicate whether the service firm should employ a production line approach or an empowerment approach under the conditions below: The firm produces a low cost, high volume product.

* production line approach * empowerment approach Indicate whether the service firm should employ a production line approach or an empowerment approach under the conditions below: The business environment is predictable with few surprises

* production line approach * empowerment approach Indicate whether the service firm should employ a production line approach or an empowerment approach under the conditions below: The business thrives on repeat customers

* production line approach * empowerment approach Indicate whether the service firm should employ a production line approach or an empowerment approach under the conditions below: The business employees Theory Y managers who believe that employees have high growth needs and strong interpersonal skills

* production line approach * empowerment approach According to the text, marketing and service orientated organisations are embracing market-focused management approaches. What do market-focused organisation understand:

* * * * *

consumers always buy more if the employee is satisfied with their pay there is no relationship between service given and customer satisfaction there is a relationship between employee turn-over and customer satisfaction employees who are “new to the job” are not trained in market-focused organisations all of the above

Which one of the following facts about the benefits to the customer of service orientated organisations is false*

* they receive better service * greater customer satisfaction

* better customer/organisation relationship * lower customer churn * they receive staff training Which one of the following is not one of the seven tests of reward effectiveness*

* * * * *

availability flexibility visibility durability perishability

Which of the following tests of reward effectiveness reflects the notion that if rewards are given to the wrong people for the wrong reasons, they should not be lifelong*

* * * * *

availability flexibility visibility durability reversibility

Which of the following tests of reward effectiveness reflects the notion that rewards should be given immediately following desired behaviours*

* * * * *

availability flexibility timeliness durability perishability

Which of the following tests of reward effectiveness reflects the notion that rewards should be tied to desired performance criteria*

* * * * *

availability flexibility timeliness durability contingent

Which of the following tests of reward effectiveness reflects the notion that rewards should be large enough for employees to take notice*

* * * * *

availability flexibility timeliness durability contingent

Which of the following tests of reward effectiveness reflects the notion that rewards should be able to be given to anyone at anytime*

* * * * *

availability flexibility timeliness durability perishability

One of the major lessons to learn from the Service-Profit Chain is:

* customer loyalty leads to customer satisfaction

* firms must satisfy their employees in order for customer satisfaction to become a consistent reality * employee retention leads to employee satisfaction * the firm's profitability leads to customer satisfaction * revenue growth leads to customer satisfaction Important components of internal service quality include all of the following except for:

* * * * *

customer referrals rewards and recognition workplace design job design selection and development

Customer retention, repeat business, and customer referrals are alternative measures for:

* * * * *

internal service quality external service value employee satisfaction customer loyalty employee productivity

Empowerment coupled with a performance-based compensation method is called _________.

* * * * *

empowerment enfranchisement service passion climate production-lining

Chapter 12: People Issues - Managing Service Consumers

Test Yourself on MIS Show questions one by one The consumer management areas of particular importance to service marketers are:

* * * * *

Managing customer participation Managing customer waits Managing uncooperative customers Customer relationship management (CRM) All of the above

Efforts to transform customers into partial employees should not be interpreted as the firm’s way of distancing itself from the customer. This is consistent with which of the following guidelines for increasing customer participation:

* * * * *

develop customer trust promote the benefits and stimulate trial understand customer habits pretest new procedures monitor and evaluate performance

Part of the problem when transforming from full-service to self-service is that businesses tend to forget why customers might prefer using full-service options in the first place. This is consistent with which of the following guidelines for increasing customer participation:

* develop customer trust

* * * *

promote the benefits and stimulate trial understand customer habits pre-test new procedures monitor and evaluate performance

Part of the problem when transforming from full-service to self-service is that the new procedures themselves are flawed and/or difficult to understand. Of the guidelines presented below, which would minimize this type of problem from occurring* This is consistent with which of the following guidelines for increasing customer participation:

* * * * *

develop customer trust promote the benefits and stimulate trial understand customer habits pre-test new procedures understand the determinants of consumer behavior

When service is produced via a cooperative effort between customers and service providers, this is referred to as:

* * * * *

co-production intangibility heterogeneity inseparability perishability

Co-production of services is made possible due to the __________ inherent in the production of services.

* * * * *

homogeneity intangibility heterogeneity inseparability perishability

Which of the following is not a typical benefit associated with self-service*

* * * * *

convenience cost savings customization standardization all of the above are benefits of self-service

Which of the following was NOT discussed in the text as a guideline for transforming customers into partial employees*

* * * * *

develop customer trust promote the benefits and stimulate trial understand customer habits pretest new procedures develop reward systems for partial employees

Which of the following was NOT discussed in the text as the Cs of customer interface*

* * * * *

context commerce community consumer communication

Strategies developed to minimize this "principle of waiting" have led to increased profit opportunities for the firm.

* preprocess waits feel longer than in process waits

* * * *

unoccupied time feels longer than occupied time unfair waits are longer the equitable waits anxiety makes the wait seem longer uncertain waits are longer than known, finite waits

Disney informs guests how long the wait will be along various points of the lines that form for each of its attractions. This strategy helps minimize the effects of which of the following "principles of waiting*"

* * * * *

preprocess waits feel longer than in process waits unoccupied time feels longer than occupied time unfair waits are longer the equitable waits the more valuable the service, the longer the customer will wait uncertain waits are longer than known, finite waits

Fast-food restaurants such as Burger King, and Subway employ a single-line strategy. In comparison, McDonald's employs a multiple line strategy. The single-line strategy helps minimize the effects of which of the following "principles of waiting*"

* * * * *

preprocess waits feel longer than in process waits unoccupied time feels longer than occupied time unfair waits are longer the equitable waits solo waits are longer than group waits the more valuable the service, the longer the customer will wait

Doctors' offices frequently stage their patients by asking patients to move from the formal waiting area to an examination room. This strategy helps minimize effects of which of the following "principles of waiting*"

* * * * *

pre-process waits feel longer than in process waits solo waits feel longer than group waits unfair waits are longer the equitable waits anxiety makes the wait seem longer uncertain waits are longer than known, finite waits

Which of the following statements is not correct*

* * * * *

preprocess waits feel longer than in process waits occupied time feels longer than unoccupied time unfair waits are longer the equitable waits anxiety makes the wait seem longer uncertain waits are longer than known, finite waits

Which of the following "principles of waiting" is stated correctly*

* * * * *

group waits are longer than solo waits explained waits are longer than unexplained waits finite waits are longer than uncertain waits in-process waits are longer than preprocess waits all of the above statements are incorrect

_______ waits serve the function of occupying customers’ time and reduces the perceived wait.

* * * * *

solo group friends anxiety customer

The customer that most managers will tell their employees that they don't have to deal with is:

* Egocentric Edgar

* * * *

Freeloading Freda Hysterical Harold Bad-Mouth Betty Dictatorial Dick

New company policies are often developed for the sole purpose of defeating this customer. These new policies add to the bureaucratization of the organization and penalize the customers who follow the rules.

* * * * *

Egocentric Edgar Freeloading Freda Hysterical Harold Bad-Mouth Betty Dictatorial Dick

This “customer from hell” complains simply so he/she will receive their merchandise for free.

* * * * *


This “customer from hell” walks over front-line personnel and believes that… “Your company exists to serve my needs and my needs alone.”

* * * * *


This “customer from hell” likes to tell everyone exactly how they are supposed to do their jobs because he has done it all before.

* * * * *


This “customer from hell” who reverts to screaming and tantrums to make his or her point.

* * * * *


A method of dealing with a dissatisfied customer by agreeing on minor issues in order to show that the customer is being heard is called:

* * * * *

customer relationship management socialization empowerment enfranchisement selective agreement

___________ is the process of identifying, attracting, differentiating, and retaining customers.

* * * * *

customer relationship management socialization empowerment enfranchisement blueprinting

__________ categorizes customers based on their profitability.

* * * * *

targeting sharing processing coding routing

__________ directs incoming customer calls based on the customer’s profitability.

* * * * *


__________ offers the firm’s most profitable customers special deals and incentives.

* * * * *


__________ makes key customer information accessible to all parts of the organization and in some cases sells customer information to other firms.

* * * * *


Which of the following is not an outcome of Customer Relationship Management*

* * * * *


Charles Schwab Corp’s top-rated “Signature” clients, consisting of customers who maintain $100,000 in assets or trade at least 12 times a year, never wait more than 15 seconds to have their calls personally answered by a customer service representative. Regular customers can wait up to 10 minutes or more. This is an example of which of the following CRM outcomes*

* * * * *


A British airlines passenger was shocked when a ticketing agent told him: “Wow, somebody doesn’t like you.” Apparently the passenger was involved in an argument with another airline employee several months earlier. The argument became part of the passenger’s permanent record that follows him wherever he flies with United. This is an example of which of the following CRM outcomes*

* * * * *


The increased usage of CRM practices, where high-value customers are treated superior to low-value customers, can be attributed to several trends except:

* * * * *

more and more customers are opting for low prices over high quality service more and more customers are opting for convenience over high quality service decreasing profit margins are hindering firms from treating all customers equally markets are increasingly homogeneous promotional costs are on the rise

Limitations of CRM include all of the following except:

* * * * *

customers do not like knowing that they are not being treated equally customers have privacy concerns associated with CRM practices CRM’s focus is only on future purchase patterns CRM may discriminate against lower economic groups All of the above are limitations associated with CRM

Chapter 14: Defining and Measuring Customer Satisfaction

Test Yourself on MIS Show questions one by one According to the Journal of Advertising Research, the fastest growing area in market research is:

* * * * *

employee surveys customer satisfaction surveys environmental design management development programs service failure and recovery analysis

Which of the following is not one of the reasons that fueled the growth of the 1970's consumerism movement*

* * * * *

skyrocketing inflation automation deregulation more informed consumers surplus labor

Which one of the following statements regarding customer satisfaction is correct*

* * * * *

the average business does not hear from 85 percent of its unhappy customers for every complaint received, 9 or 10 people actually have the same problem complainers are more likely to do business with you again than noncomplainers the average person with a problem tells more than 20 people customers who have their complaints resolved tell an average of 26 people

Which of the following statements regarding customer satisfaction is incorrect*

* bad news is communicated to more people than good news

* complainers are more likely to do business with you again than noncomplainers * the average business does not hear from 80 percent of its unhappy customers * for every complaint received, 26 customers actually have problems * 95 percent of customers who have their complaints resolved quickly will continue to conduct business with the firm The most popular definition of customer satisfaction/dissatisfaction is based on:

* * * * *

the SERVQUAL Model the Servuction Model the Scale of Market Entities the Expectancy Disconfirmation Model Technical Assistance Research Program (TARP)

Positive disconfirmation of consumer expectations occurs when:

* * * * *

expectations meet perceptions expectations exceed perceptions expectations are less than perceptions perceptions are less than expectations expectations meet or exceed perceptions

Customers are most dissatisfied when a ______________ occurs.

* * * * *

disconfirmation zone of intolerance positive disconfirmation confirmation negative disconfirmation

Which of the following is not a benefit of customer satisfaction*

* * * * *

the firm is more insulated from price competition the firm provides a positive work environment for its employees positive word-of-mouth is generated from satisfied customers satisfied customers make purchases more frequently all the above

According to the text, of the following customer satisfaction methods, which is the least effective in producing meaningful results*

* * * * *

The Scale of 100 Approach Personal Interviews The "Very Dissatisfied/Very Satisfied" Approach The Combined Approach Employee Surveys

According to the text, of the following customer satisfaction methods, which is the most effective in producing meaningful results*

* * * * *

The Scale of 100 Approach Personal Interviews The "Very Dissatisfied/Very Satisfied" Approach The Combined Approach Employee Surveys

In general, the distribution of most companies’ customer satisfaction ratings is:

* bimodal

* * * *

normal negatively skewed positively skewed erratic

Which of the following is not an indirect method of measuring customer satisfaction*

* * * * *

sales records profit reports registered complaints the "Scale of 100 Approach" all the above are indirect measures

Which of the following tactics would yield higher customer satisfaction scores*

* * * * *

utilizing mail surveys instead of personal interviews stating the question in a dissatisfied form instead of a satisfied form asking general questions prior to specific questions avoiding data collection until a substantial period of time had elapsed since the purchase all the above would generate lower customer satisfaction scores

Under which of the following scenarios is it more likely that a firm would invest the resources necessary to increase its satisfaction ratings from 95 to 98 percent*

* * * * *

Competing firms have 90 and 88 percent satisfaction ratings Competing firms have 85 and 75 percent satisfaction ratings Competing firms have 96 and 97 percent satisfaction ratings There are many opportunity costs associated with the investment The market share gained has little effect on the firm's bottom-line profits

The primary contribution of Babich's customer satisfaction models is that it stresses the importance of knowing __________.

* * * * *

customer satisfaction ratings supplier satisfaction ratings employee satisfaction ratings competitor satisfaction ratings stock holder satisfaction ratings

According to one group of consultants, on average, __________ percent of customers who defect to competitors say they were "satisfied" or "very satisfied" with their former providers.

* * * * *

5 to 25 15 to 35 25 to 45 45 to 65 65 to 85

__________ is the level of service quality a customer believes is likely to occur.

* * * * *

desired service predicted service ideal service adequate service derived expectations

Customer satisfaction can be defined by comparing:

* predicted service and perceived service

* * * *

predicted service and desired service desired service and perceived service adequate service and perceived service expected service and desired service

Which of the following are service quality measures*

* * * * *

customer satisfaction desired service perceived service superiority perceived service adequacy both c and d

_______ service is the level of service the customer actually wants to receive.

* * * * *


The zone of tolerance is most directly related to which of the following unique service attributes*

* * * * *

intangibility perishability heterogeneity inseparability homogeneity

The zone of tolerance is defined by the difference between:

* * * * *

predicted service and perceived service predicted service and desired service desired service and adequate service adequate service and perceived service expected service and desired service

Personal factors that are stable over time and that increase a customer's sensitivity to how the service should be best provided are referred to as:

* * * * *

situational factors explicit service promises perceived service alternatives transitory service intensifiers enduring service intensifiers

Which of the following is not a factor that influences perceived service*

* * * * *

explicit service promises perceived service alternatives past experience implicit service promises word-of-mouth communications

Situational factors such as bad weather, catastrophe, and random events of over-demand influence __________ levels.

* desired service * predicted service

* ideal service * adequate service * derived expectations The number of competing alternative service providers available has the biggest influence on:

* * * * *


One of the major factors driving customer expectations of desired service is:

* * * * *

predicted service the customer's personal service philosophies adequate service transitory service intensifiers perceived service alternatives

When forming customer expectations, price acts as a:

* * * * *

enduring service intensifier transitory service intensifier explicit service promise implicit service promise situational factor

When forming customer expectations, the firm's physical facility acts as a:

* * * * *


When forming customer expectations, the firm's brochure acts as a:

* * * * *


The higher the number of perceived service alternatives:

* * * * *

the higher the level of adequate service expectations the lower the level of adequate service expectations the more narrow the zone of tolerance a and c b and c

Greg’s flight on Ryanair from Dublin to Barcelona departed two hours late because of a high winds in Dublin. The weather that delayed Greg’s flight is a:

* * * *

transitory service intensifier self-perceived service role predicted service intensifier situational factor

* personal needs A bias in survey results because of responses being received from only a limited group among the total survey population is called:

* * * * *

response bias question bias social desirability bias collection bias none of the above

Which of the following is NOT a criticism of customer satisfaction research*

* focuses on whether current needs are being met but fails to investigate customers’ future needs * focus on registered complaints * focus on global attributes and ignores operational elements * it often excludes the firm’s employees from the survey process * customer know what they want and it is the worst strategy to follow Naomi’s children are giving her a week at a spa for her seventieth birthday. The expectations of the services the spa will provide are much higher because they are selecting the spa for their mother’s approval rather than for their own use. This is an example of a(n) _________ expectation.

* * * * *

derived service self-perceived service explicit service enduring service transitory service

Chapter 15: Defining and Measuring Service Quality

Test Yourself on MIS Show questions one by one _________ is an attitude formed by a long-term, overall evaluation of a firm's performance.

* * * * *

Customer satisfaction Negative disconfirmation Positive disconfirmation Service quality Customer retention

__________ is a short-term, transaction specific measure.

* * * * *

Customer satisfaction Focus group interviews Noncustomer research Service quality Customer retention

Which of the following statements is correct*

* customer satisfaction leads to perceived service quality * service quality leads to customer satisfaction * service quality leads to increased purchasing behavior * customer satisfaction leads to increased purchasing behavior * the relationship between service quality and customer satisfaction and how these two concepts relate to purchasing behavior remains largely unexplained

The distance between a customer’s expectations of a service and perception of the service actually delivered is called:

* * * * *

service gap knowledge gap standards gap delivery gap communication gap

The firm's increased research orientation and enhanced upward communication will assist the firm in decreasing which one of the following gaps*

* * * * *

knowledge gap standards gap delivery gap communications gap confirmation gap

Understanding the customer is a critical step toward minimizing or completely eliminating the:

* * * * *


A hotel may feel that its customers prefer comfortable rooms, when, in fact, the majority of the hotel's customers spend little time in their rooms and are more interested in on-site amenities such as the pool, spa, and restaurants. This hotel is suffering from a:

* * * * *


As a service organization's hierarchy becomes more complex and more levels of management are added, the firm is more likely to experience a:

* * * * *


The difference between management perceptions of customer expectations and and standards specifying service to be delivered is called the:

* * * * *

knowledge gap standards gap delivery gap communications gap service gap

The firm's overemphasis on cost reduction and short-term profits will increase the size of the:

* * * * *


Management's inability to translate what consumers want into a written business plan will increase the size of the:

* * * * *


The __________ occurs between the actual performance of a service and the standards set by management.

* * * * *


Which of the following is NOT a factor influencing the delivery gap*

* * * * *

willingness to perform employee-job fit role ambiguity overpromising inadequate support

Employee willingness to perform and employee-job fit are directly related to which of the following service quality gaps*

* * * * *


Minimizing the amount of role conflict and role ambiguity experienced by employees will help reduce the size of this gap.

* * * * *


The __________ is the difference between the service the firm promises to deliver through its external communications and the service it actually delivers to its customers.

* * * *

knowledge gap standards gap delivery gap communications gap

* service gap According to the text, when competing firms begin to overpromise in order to top one another, a __________ is likely to occur.

* * * * *


Which of the following statements pertaining to the SERVQUAL scale is correct*

* SERVQUAL compares perceptions to what customers would normally expect * SERVQUAL is a 22-item scale * SERVQUAL consists of four service quality dimensions * SERVQUAL compares perceptions to what a customer should expect from a firm the delivers high-quality services * All the above statements are incorrect Which of the following statements pertaining to the SERVQUAL scale is incorrect*

* The SERVQUAL dimensions were obtained through extensive focus group interviews * SERVQUAL is a 44-item scale * SERVQUAL consists of five service quality dimensions * SERVQUAL compares perceptions to what a customer should expect from a firm the delivers high-quality services * The smaller the gap score for each of the service quality dimensions, the lower the level of service quality provided Which of the following is not one the five dimensions that is measured by the SERVQUAL SCALE*

* * * * *

tangibles employee satisfaction responsiveness assurance empathy

The SERVQUAL dimension that measures consumer views of the firm's personnel and communication materials is the ________ dimension.

* * * * *

tangibles employee satisfaction responsiveness assurance reliability

Employees of excellent companies will be neat in appearance is a typical statement within the __________ dimension of the SERVQUAL scale.

* * * * *

tangibles reliability responsiveness assurance reliability

The __________ dimension is an assessment of the firm's consistency and dependability in service performance.

* * * * *

tangibles empathy responsiveness assurance reliability

Excellent companies will perform the service right the first time is a typical statement within the __________ dimension of the SERVQUAL scale.

* * * * *


__________ refers to the service firm's commitment to providing its services in a timely manner.

* * * * *


The SERVQUAL dimension that measures consumer views that reflect the security of the firm's operations is the ________ dimension.

* * * * *

tangibles employee satisfaction responsiveness assurance reliability

Excellent companies will have the customer's best interest at heart is a typical statement within the __________ dimension of the SERVQUAL scale.

* * * * *


Which of the following is a major criticism of the SERVQUAL scale*

* * * * *

short questionnaire validity of the five service quality dimensions does not predict consumer purchase intention contact personnel none of the above

Research that examines the customer’s perspective of a firm’s strengths and weaknesses is called:

* * * *

customer research employee survey noncustomer research customer complaints

* service quality survey The SERVQUAL dimension that is typically noted as the least important by customers is the __________ dimension.

* * * * *


The SERVQUAL dimension that is typically noted as the most important by customers is the __________ dimension.

* * * * *


Which of the following is not a component of a service quality information system*

* * * * *

mystery shopping customer retention interviews after-sale surveys employee surveys total market service quality surveys

The component of a firm's service quality information system that is used specifically to assess employee performance is:

* * * * *

solicitation of customer complaints customer focus group interviews employee surveys mystery shopping total market service quality survey

The component of a firm's service quality information system that assesses the firm's and competitor's service quality ratings is:

* * * * *

solicitation of customer complaints customer focus group interviews employee surveys mystery shopping total market service quality survey

Which of the following is NOT a key component that needs to be built into every service quality system*

* * * * *

listening reliability servant leadership individual play service design

Chapter 16: Service Failures and Recovery Strategies

Test Yourself on MIS Show questions one by one The moments of interaction between the customer and the service firm are called:

* Servuction junction

* * * *

critical incidents core service failures service recovery instrumental complaints

Services that do not meet customer expectations are called:

* * * * *

service failures critical incidents Servuction failures service recovery instrumental complaints

Which of the following is not a main service failure category discussed in the text*

* * * * *

unprompted and unsolicited employee actions responses to customers implicit needs pricing failures core service failures responses to explicit needs

In general, the service failure category of implicit and explicit customer needs and requests consist of employee responses to which types of possible failures*

* * * * *

special needs customer preferences disruptive others customer errors all of the above

Categorize the following service failures into its appropriate main service failure category: unavailable or slow service

* responses to core service failure * responses to needs and requests * unprompted/unsolicited employee action Categorize the following service failures into its appropriate main service failure category: dirty silverware in a restaurant

* responses to core service failure * responses to needs and requests * unprompted/unsolicited employee action Categorize the following service failures into its appropriate main service failure category: disruptive customers

* responses to core service failure * responses to needs and requests * unprompted/unsolicited employee action Categorize the following service failures into its appropriate main service failure category: rude service providers

* responses to core service failure * responses to needs and requests

* unprompted/unsolicited employee action Categorize the following service failures into its appropriate main service failure category: 10 diners not being able to sit together

* responses to core service failure * responses to needs and requests * unprompted/unsolicited employee action Categorize the following service failures into its appropriate main service failure category: a Domino’s pizza employee who provided a meal for a family whose house had burnt down

* responses to core service failure * responses to needs and requests * unprompted/unsolicited employee action Categorize the following service failures into its appropriate main service failure category: a customer who orders a steak medium rare and receives it well-done

* responses to core service failure * responses to needs and requests * unprompted/unsolicited employee action Categorize the following service failures into its appropriate main service failure category: an employee who provides magazines for the children waiting for their parents at the solicitors office

* responses to core service failure * responses to needs and requests * unprompted/unsolicited employee action Categorize the following service failures into its appropriate main service failure category: an individual with a disability is unable to gain access to the elevated booth in a restaurant

* responses to core service failure * responses to needs and requests * unprompted/unsolicited employee action Categorize the following service failures into its appropriate main service failure category: a flight attendant is rude to travellers

* responses to core service failure * responses to needs and requests * unprompted/unsolicited employee action Service failures involving problematic customer include _____.

* * * * *

uncooperative customers breaking company policies drunkenness verbal and physical abuse all of the above

Consumer complaints tend to be:

* * * * *

instrumental and ostensive instrumental and reflexive non-instrumental and ostensive non-instrumental and reflexive ostensive and reflexive

__________ are complaints that are expressed without the expectation that the problem will be solved.

* * * * *

ostensive instrumental reflexive non-instrumental none of the above

__________ complaints are registered for the expressed purpose of altering an undesirable state of affairs.

* * * * *


In general, individuals avoid making this type of complaint so as not to reinforce negative self-esteem.

* * * * *


This type of complaint is not usually heard because people seldom want to convey negative attributes about themselves to others.

* * * * *


Complaints about the weather being too hot can be classified as:

* * * * *


The smallest number of complaints registered by individuals are:

* * * * *


Which of the following is not a reason customers complain*

* * * * *

emotional release from frustration to regain some control by spreading negative word-of-mouth to solicit sympathy to create the impression of being more intelligent all the above are reasons customers complain

Which of the following is not a reason customers complain*

* emotional release from frustration * to regain some control by spreading negative word-of-mouth * to solicit sympathy * to create the impression of being more intelligent * service customers tend to feel comfortable about evaluating services and are not afraid to voice their opinions Why don’t service customers typically complain*

* * * * *

they don't think it will do any good they accept part of the blame since they are directly involved in the process they don't know who to complain to they don't want to create a confrontation all the above are reasons customers do not complain

All of the following are reasons customers do not complain except for:

* * * * *

complaining provides an emotional release from frustration they accept part of the blame since they are directly involved in the process they don't know who to complain to they don't want to create a confrontation they feel they lack the expertise to make an objective observation

A firm's reaction to a customer complaint that results in customer satisfaction and goodwill is called a:

* * * * *

service recovery paradox service recovery critical incident moment of truth the critical incident technique

A complaining outcome in which the consumer takes action deliberately designed to damage the physical operation or hurt future business is called*

* * * * *

voice retaliation service recovery exit service recovery paradox

__________ refers to the situation in which the customer rates performance higher if a failure occurs and the contact personnel successfully recover from it than if the service had been delivered correctly the first time.

* * * *

service recovery paradox service recovery critical incident moment of truth

* the critical incident technique Perceived justice consists of three components:

* * * * *

social, distributive, and ethical justices procedural, psychological, and social justices social, interactional, and physical justices distributive, interactional, and procedural justices social, ethical, and physcial justices

The component of perceived justice that refers to the outcomes associated with the service recovery process is referred to as __________ justice.

* * * * *

social procedural interactional distributive ethical

During a service recovery effort, the employee promptly refunded the customer’s money, but threw the money at the customer. As a result, the recovery effort violated the customer’s ___________ justice need.

* * * * *


During a service recovery effort, the employee was very empathetic to the customer’s plight and agreed to replace the defective product. However, it took three months for the replacement product to show up which was much later than the customer had anticipated. As a result, the recovery effort violated the customer’s ___________ justice need.

* * * * *


__________ refers to a method of studying service failures by analyzing the stories told by customers.

* * * * *

Service recovery paradox Service recovery Critical incident Procedural inquiry The critical incident technique

Service firms that wish to excel at service failures analysis and recovery may conduct a _______.

* * * * *

service recovery audit service recovery critical incident moment of truth recovery strategies

Chapter 17: Putting The Pieces Together: Creating the Seamless Service Firm

Test Yourself on MIS Show questions one by one

Service firms often find themselves in a three-cornered fight between:

* * * * *

engineering, production, and accounting marketing, finance, and human resources operations, accounting, and marketing human resources, marketing and operations production, finance, and accounting

Services that occur without interruption, confusion, or hassle to the customer is called:

* * * * *

seamless service service audit functional service departmental service services marketing

__________ is a firm's view toward planning its operations according to market needs.

* * * * *

Marketing orientation Marketing functions Marketing department Marketing forecast Marketing tasks

__________ refers to tasks such as the design of the product, its pricing, its packaging, and its promotion.

* * * * *

Marketing orientation Marketing functions Marketing department Marketing forecast Marketing tasks

The department within the firm that traditionally acts as an advocate for the consumer is:

* * * * *

finance marketing accounting information systems management

The variety of relationships between marketing and other functions within the organization can be illustrated by:

* * * * *

operations management customer needs customer expectations customer competencies customization / customer contact matrix

The three tiers that make-up the Three-Tiered Services Model are:

* * * * *

marketing, operations, and human resource tiers the customer, the boundary, and coordination tiers the invisible organization, contact personnel, other customers tiers the inanimate environment, the customer, and other customer tiers the invisible organization, the inanimate environment, and contact personnel tiers

Within the Customer Tier, experts believe that businesses now have a fairly good understanding of __________.

* * * * *

operations management customer needs customer expectations customer competencies marketing

Security, esteem, and justice are types of __________ that are often unrecognized by customer's themselves.

* * * * *

customer perceptions customer needs customer expectations customer competencies customer attributes

Customer competencies can be described as:

* consumer expectations pertaining to the service delivery process and final outcome * customer perceptions regarding the quality of the outcome * customer abilities that enable them to properly evaluate the servicescape * the ability to interact effectively with other customers * the contributions customers bring to the service production process The location of the "human resource trap" that makes the mistake of placing the full burden of "moments of truth" upon contact personnel is within:

* * * * *

the customer tier the customization/customer contact matrix the boundary tier the Servuction model the coordination tier

Recruitment, selection, training, and socialization are important steps within:

* * * * *

the customer tier the customization/customer contact matrix the boundary tier the Servuction model the coordination tier

The tier that it ultimately responsible for developing a service logic that runs throughout the firm is:

* * * * *

the customer tier the contact tier the boundary tier the front-line tier the coordination tier

__________ stresses cost containment and cost reduction through mass production

* * * *

Marketing logic Finance logic Accounting logic Operations logic

* Human resources logic Each department within an organization is driven by its own internal logic. Which of the following statements most accurately reflects operations logic*

* cost reduction can be obtained through mass production * "families" of personnel should reinforce one another on the job * personnel should be able to break organization rules in the context of serving the customer * customers should be provided with options that enable them to meet their individual needs * recruiting and training are essential in developing existing personnel __________ stresses providing customers with options that better enable the service offering to meet individual customer needs.

* * * * *

Marketing logic Finance logic Accounting logic Operations logic Human resources logic

Each department within an organization is driven by its own internal logic. Which of the following statements most accurately reflects a marketing logic*

* cost reduction can be obtained through mass production * "families" of personnel should reinforce one another on the job * personnel should be able to break organization rules in the context of serving the customer * customers should be provided with options that enable them to meet their individual needs * recruiting and training are essential in developing existing personnel __________ stresses recruiting quality personnel and developing training programs that enhance the performance of existing personnel.

* * * * *

Marketing logic Finance logic Accounting logic Operations logic Human resources logic

Each department within an organization is driven by it' own internal logic. Which of the following statements most accurately reflects human resources logic*

* cost reduction can be obtained through mass production * families of customers should reinforce one another throughout the service encounter * personnel should be able to break organization rules in the context of serving the customer * customers should be provided with options that enable them to meet their individual needs * recruiting and training are essential in developing existing personnel The use of interfunctional task forces and interfunctional transfers are an attempt to change the organization's culture through:

* * * * *

systems structure people rewards culture-change initiatives

Typical approaches to changing the organizational culture by changing the structure of the organization include:

* * * * *

"putting the customer first" changing the orientation interfunctional task forces and transfers bring in outsiders to change the culture revamping the firm's reward systems

In the effort to create a more customer-focused organization, one of the approaches to changing the culture through structure is:

* * * * *

utilizing marketing department as a change agent changing the orientation restructuring the firm around the servuction system model bring in outsiders to change the culture revamping the firm's reward systems

Revamping the firm's evaluation and promotion procedures are attempts to change the organization's culture through:

* * * * *


If XYZ company hires a new manager from outside the firm as opposed to promoting someone from within, the company may be attempting to change the culture of the organization through:

* * * * *


Programs such as "putting the customer first" and "change the way you work" are attempts to change the organization's culture through:

* * * * *

systems structure people culture change initiatives mergers

The culture change program that teaches personnel that essentially "the customer is king" is called:

* * * * *

"change the way we work" "orientation change" 'change the way you work" "customers are your customers" "putting the customer first"

The culture change program that teaches "families" of personnel to reinforce one another on the job is called:

* "change the way we work"

* * * *

"orientation change" 'change the way you work" "customers are your customers" "putting the customer first"

The culture change program that allows personnel to break the rules in the context of serving their customers is called:

* * * * *

"change the way we work" "orientation change" "change the way you work" "customers are your customers" "putting the customer first"

The culture change program that teaches personnel to flowchart their activities and to re-engineer the process to better serve their customers is called:

* * * * *

"change the way we work" "orientation change" "change the way you work" "customers are your customers" "putting the customer first"

The cultural change initiative, "change the way we work" is most directly related to:

* * * * *

empowerment enfranchisement re-engineering recruitment training

The series of questions that force the firm to think about what drives its profits is called:

* * * * *

blueprinting flowcharting process flows service audit service-profit chain

Which one of the following service audit questions does not belong within the profit and growth component*

* How does the firm define customer loyalty* * Does the firm set employee retention goals* * Does the firm measure profits from referrals* * What proportion of funds are spent on customer retention as opposed to attracting new customers* * When customers do not return, do we know why* Which of the following is not a major component of the service audit*

* * * * *

profit and growth audit employee productivity audit customer satisfaction audit Servuction system audit leadership audit

Which of the following service audit question does belong within the employee productivity component*

* * * * *

How does the firm define customer loyalty* Does the firm set employee retention goals* Does the firm measure profits from referrals* How does the firm measure employee productivity* When customers do not return, do we know why*

Which of the following service audit question does not belong within the external service value component*

* How does the firm measure value* * How is information on customer perceptions of the firm’s value shared within the company* * Does the firm actively measure the gap between customer expectations and perceptions of service delivered* * Is service recovery an active strategy discussed among management and employees* * Are employee aware of internal and external customers*

Mcq in Services Marketing

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