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
*
*
*
*
*
objects, devices, and performances

effort, objects, and deeds
things, devices, and performances
objects, devices, and things
deeds, effort, and performances
Which of the following sets of terms best describes a service*
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
the
the
the
the
services triangle
Servuction model
scale of market entities
service-profit chain
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
*
*
manufacturing
education
Which of the following fields would be least likely to be described as intangible-dominant*
*
*
*
insurance
banking
engineering
*
*
*
*
*
Outback steakhouse
car rental agency
a funeral
a magazine subscription
math tutoring
Which of the following products is an example of intangible dominant*
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 ones 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 firms 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
the
the
the
the
The encapsulation of the benefits of product in the consumer's mind is called:
Servuction Model
benefit concept
Service Triangle
Service-Profit Chain
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
*
*
*
*
*
servicescape
other customers
contact personnel
service providers
Which of the following components of the Servuction Model is not visible to consumers*
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
other customers
contact personnel
service providers
Servicescape consists of which of the following features:
*
*
*
*
*
personal artifacts
inanimate objects
signs
symbols
all of the above
*
*
*
*
*
servicescape
other customers
contact personnel
service providers
*
*
*
*
*
servicescape
other customers
contact personnel
service providers
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*
*
*
*
*
*
servicescape
other customers
contact personnel
service providers
*
*
the tremendous growth in service-sector employment

increasing service-sector contributions to the world economy
The demand for services marketing knowledge has increased for all of the following reasons
except:
* the deregulation of many service industries

* the needed shift from industrial models of management to marketfocused 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.
*
*
*
*
*
88.2%
70.5%
60.1%
50.5%
45.7%
*
*
*
*
*
the
the
the
the
the
What percentage of the EUs Gross Domestic Product wass generated by the service sector
in 2006*
An approach to organizing a firm that focuses on revenues and operating costs and has its
roots in manufacturing is called:
operations management approach

industrial management approach
manufacturing management approach
market-focus management approach
services marketing approach
The industrial management model believes
* employees want to do good work

* front-line personnel are more important than upper- and middlemanagers
* 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
the
the
the
the
operations management approach

industrial management approach
manufacturing management approach
market-focused management approach
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
The
The
The
The
systems--the customer
service strategy--the customer
systems--the people
customer--the people
service strategy--the systems
*
*
*
*
*
The
The
The
The
The
systems--the people
service strategy--the people
*
*
*
*
*
The
The
The
The
The
systems--the people
service strategy--the people
Which linkage within The Service Triangle reflects Pizza Hut's strategy of communicating its
commitment to service excellence to its employees through television commercials*
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 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
*
*
*
*
*
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.
Which of the following is a marketing problem caused by intangibility*
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:
*
*
*
*
*
intangibility
inseparability
homogeneity
perishability
heterogeneity
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.
*
*
*
*
*
intangibility
inseparability
homogeneity
perishability
heterogeneity
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
*
*
*
*
*
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.
Possible solutions that firms use to minimize the problems caused by inseparability include
all of the following except:
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:
*
*
*
*
*
inseparability
intangibility
homogeneity
perishability
heterogeneity
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.
*
*
*
*
*
standardizing or customizing the service

using multisite locations
stressing tangible clues
appealing to different market segments with different demand patterns
using reservation systems
Solutions used to minimize the marketing problems attributed to heterogeneity include:
The unique service characteristic that deals specifically with the inability to inventory
services is:
*
*
*
*
*
inseparability
intangibility
homogeneity
perishability
heterogeneity
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:
*
*
*
*
*

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:
*
*
*
*
*

capacity sharing
A perishability-related strategy that increases the supply of service by forming a type of coop 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
*
*
*
*
*
increasing consumer participation

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

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
the
the
the
the
quality of instruction in an educational setting

appearance of employees
appearance of the firm's physical facilities
smile on an employee's face
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
*
*
*
*
intangibility
inseparability
heterogeneity
perishability
Standardization and quality control are difficult.
Cannot protect services through patents.
*
*
*
*
intangibility
inseparability
heterogeneity
perishability
*
*
intangibility
inseparability
Prices are difficult to set.
*
*
heterogeneity
perishability
*
*
*
*
intangibility
inseparability
heterogeneity
perishability
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.
*
*
*
*
intangibility
inseparability
heterogeneity
perishability
Use tangible clues.
*
*
*
*
intangibility
inseparability
heterogeneity
perishability
*
*
*
*
intangibility
inseparability
heterogeneity
perishability
Emphasize the selection and training of public contact

personnel.
Effectively manage consumers.
*
*
*
*
intangibility
inseparability
heterogeneity
perishability
Make adjustments between supply and demand to

achieve a balance between the two.
*
*
*
*
intangibility
inseparability
heterogeneity
perishability
Chapter 3: An overview Of The Services Sector

It is generally accepted that the _______ includes the soft parts of the economy consisting
of several sub-sectors.
*
*
*
*
*
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
*
*
*
*
*
Finance
Insurance
Social welfare
Pensions
Share brokerage
Financial activities sector consists of all the following except:
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
*
*
*
*
*
Wholesale and retail trade

Transportation and warehousing
Financial activities
Professional and business services
Education and health services
The service sector that is the fastest growing sector in terms of employment is:
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
*
*
*
*
*
Young
In first job
Female
Part-time
All of the above
A large proportion of people employed in the hospitality and leisure sector are.
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
*
*
*
*
*
Administrative support
Sales
Transportation
Purchasing
Material-moving
Most wholesalers are small, employing fewer than 50 workers. Which of the following is not
an occupation in which two-thirds of wholesalers work*
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
1975
According to the text, the obsession with the Internet began around ________.
*
*
*
*
1982
1991
1996
2000
*
*
*
*
*
service
business process
application
information technology resource
all of the above
An e-service is a (an) __________ available via the net.
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
*
*
*
*
*
Search
Quantization
Automation
Industrialization
Customization
The breaking down of monolithic services into modular components is called:
The growth in the number of time-pressured consumers has led to an increase in timesaving 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
*
*
*
*
*
Customer retention
Excellent customer service
Conquest retention
Courteous retention
None of the above
Focusing the firms marketing efforts toward the existing customer base is called:
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

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
postpurchase evaluation
the choice stage
*
*
*
*
*
stimulus evaluation
problem awareness
information search
consumption stage
Multiattribute models are used most during which stage of the consumer
decision process.
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
*
*
*
*
*
location
fun atmosphere
talking to friends
service delivery
price
Which of the following is NOT an example of attribututes sought for Grants birthday*
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 Grants 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
*
*
*
*
fun atmosphere and location

fun atmosphere and quality food
fun atmosphere and price
price and quality of food
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*
price and location
*
*
*
*
*
the
the
the
the
the
During which stage of the consumer decision process does acquisition,

production and consumption become an entangled process.
prepurchase stage
consumption stage
postpurchase stage
information search stage
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
*
*
*
*
*
intangibility
heterogeneity
inseparability
perishability
nonstandardization
Co-producer risk is directly related to the concept of ______.
* 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
*
*
*
*
*
emotional costs
cognitive costs
learning costs
performance costs
customer habit costs
*
*
*
*
*
performance costs
loyal customer discounts
emotional costs
cognitive costs
search costs
*
*
*
performance costs
loyal customer discounts
emotional costs
The switching costs associated with the time it takes simply thinking about making a change
in service providers is called:
Switching costs generally associated with changing from one service provider to
another include all of the following except for:
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:
*
*
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
the
the
the
the
role congruence model

perceived-control model
expectancy disconfirmation model
script perspective
Servuction model
The postpurchase model in which consumers evaluate services by the amount of

influence they have over the service encounter is:
*
*
*
*
the
the
the
the
role congruence model

script perspective
the Servuction model
*
*
*
*
*
the
the
the
the
the
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:
dissonance model
script perspective
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
*
*
*
*
*
extra-individual
inflexible
written
intra-individual
performed by both employees and customers
Scripts differ from roles in that scripts are:
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

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
*
*
True
False
Competitor intelligence should be gathered once a year
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
*
*
*
*
*
objective setting
customer analysis
competitor analysis
long term planning
all of the above
A service company shuld gather data for...
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
*
*
*
*
*
Debrief meeting with client

Statistical analysis of customer survey
Competitor sales figures
Market share information
Attitude ratings
Which one of the following provides qualitative data*
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
*
*
*
*
*
a tick box survey

a focus group
observation
in-depth interview
secondary data
Gathering in-depth qualitative data from an individual is best done via
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 dont like them
animal rights campaigners
*
*
*
*
*
80%
20%
15%
75%
0%
What percentage of data should come from outside of the firm:
What should be at the centre of any marketing information system*
*
*
*
*
*
A computer
An IT expert
Stakeholder information files
Financial information
A survey
*
*
*
consumers are told too much

storage space is limited
there are too few staff
Information overload occurs when
*
*
no marketing research is undertaken

there is a mismanaged quantity of information
*
*
True
False
A successful information system requires little in terms of staff resources and expertise.
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

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
*
*
*
*
*
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
organisations go through are known as the Product Life Cycle. The Introduction Stage refers
to:
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
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
*
*
*
*
*
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
organisations go through are known as the Product Life Cycle. The Saturation Stage refers
to:
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
*
*
*
*
*
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
Which strategy option is more intense than others*
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*
*
*
*

*
*
Style changes
*
*
*
*
*

Product-line extensions
Style changes
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*
BA recently introduced BA CityFlyer. Which service development did they introduce*
*
*
*
*
*

Product-line extensions
Style changes
*
*
*
*
*

Style changes
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 blazers development to service is classed as:
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

and creativity 8 activities should be included.
Which of the following includes spontaneity, fun and laughter*
*
*
*
*
*
Risk-taking
Idea time
Freedom
Debate

Which of the following includes tolerance of uncertainty, ambiguity and the chance to take
a gamble*
*
*
*
Risk-taking
Idea time
*
*
Freedom
Debate

Which of the following includes encounters with others and disagreement*
*
*
*
*
*
Risk-taking
Idea time
Freedom
Debate

Which of the following includes flexible deadlines, flexible opportunities to explore and
develop ideas*
*
*
*
*
*
Risk-taking
Idea time
Freedom
Debate
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
organisations have to stimulate the customer/personnel interface and role-play all
situations*
*
*
*
*
*

Pilot run
Idea generation
Business analysis
*
*
*
*
*

Pilot run
Idea generation
Business analysis
*
*
*

Pilot run
organisations have to ensure staff across all department work together and know their role*
organisations have to review comments from customer comments cards, B2B feedback and
market trends*
*
*
Idea generation
Business analysis
*
*
*
*
*

Pilot run
Idea generation
Business analysis
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

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
*
*
*
*
*
technical core
organizational point
factory
main system
none of the above
The place within an organization where its primary operations are conducted is called:
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
*
*
one
*
provider quicker response times to market demand

break up large, unfocused plants into smaller units buffered from
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
*
*
*
*
*
buffering
smoothing
anticipating
rationing
allocating
*
*
*
*
*
buffering
smoothing
anticipating
rationing
all the above
*
*
*
*
*
isolating the technical core

production-lining the whole system
creating flexible capacity
increasing customer participation
maximizing the servuction system
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:
The strategy that surrounds the technical core of the operation with input
and output components is called:
Which of the following strategy is not on the list regarding overcoming some of the problems
of service operations*
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
*
*
process time
activity time
With regards to constructing a service blueprint, the time required to perform one activity at
one station is called:
*
*
*
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
20
30
45
60
seconds
seconds
seconds
seconds
seconds
What is the process time for Counter E*
*
*
*
*
*
10
15
20
30
60
seconds
seconds
seconds
seconds
seconds
Which of the following counters produces a maximum output per hour of

240 customers*
*
*
*
*
*
Counter
Counter
Counter
Counter
Counter
A
B
C
D
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
Counter
Counter
Counter
Counter
A
B
C
D
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
*
*
*
*
*
increasing divergence
reducing divergence
increasing complexity
reducing complexity
unbundling the service
A volume-oriented positioning strategy is achieved by:
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
*
*
*
*
*
reducing divergence
reducing complexity
A specialization positioning strategy is accomplished by:
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:
*
*
*
*
*
reducing divergence
none of the above
Chapter 8: The Pricing of Services

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
*
*
*
*
*
monetary cost
social cost
time cost
psychic cost
energy cost
Total customer cost consists of all of the following components except:
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
*
*
*
*
*
demand considerations
cost considerations
customer considerations
product considerations
all the above should be considered
When pricing a service, the service provider should consider all of the following except
__________.
A consumers 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 customers ability to build an inventory decreases
A consumers price sensitivity will increase as:
*
*
*
*
*
the perceived number of substitutes decrease

the perceived unique value of the service increases
the customers ability to build an inventory increases
*
*
*
*
*

the shared costs for the expenditure decreases
the perceived unique value of the service decreases
A consumers price sensitivity will decrease as:
A consumers price sensitivity will decrease as:
*
*
*
*
*

switching costs decrease
the perceived unique value of the service decreases
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.
goods) is false*
* The demand for services tends to be more inelastic than the demand for
goods.
* Comparing prices of competitors is more difficult for service consumers.
* Consumers are more able to stockpile services by taking advantage of
discount prices.
goods) is true*
goods.
* Comparing prices of competitors is less difficult for service consumers.
* Self-service is not a viable competitive alternative.
discount prices.
goods) is true*
goods.
* Cost-oriented pricing is less difficult for services.
* Comparing prices of competitors is less difficult for service consumers.
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
*
*
*
*
*
unitary
substitutes
complementary
inelastic
elastic
unitary
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 __________.
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 __________.
*
*
*
*
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
*
*
*
*
*
offering guarantees
benefit-driven pricing
flat-rate pricing
all the above are forms of satisfaction-based pricing
Which one of the following is not a form of satisfaction-based pricing*
The pricing strategy that charges customers for services actually used as opposed to overall
"membership" fees is:
*
*
*
*
*
price bundling
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
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:
*
*
*
*
*
price bundling
flat-rate pricing
efficiency pricing
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
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
*
*
*
*
*
product value
service value
image value
time value
personnel value
Effective boundary spanners enhance the __________ of services.
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
*
*
price discrimination
supply and demand
Charging customers different prices for essentially the same service is called:
*
*
*
complementary
substitutes
none of the above
*
*
*
*
*
fixed costs
cost drivers
variable costs
project costs
cost labor
The tasks in activity based costing are thought of as users of overhead and identified as:
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*
*
*
*
*
*
price bundling
flat-rate pricing
efficiency pricing
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

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
*
*
*
*
*
remind customers
persuade customers
inform customers
all of the above
none of the above
The primary role of a service firm's communication mix is to:
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
*
*
*
*
*
communication mix
positioning strategy
publicity
public relations
target marketing
The plan for differentiating the firm from its competitors in consumer's eyes is referred to as
the firm's:
Differentiation approaches such as competence, courtesy, reliability, and responsiveness are

forms of:
*
*
*
*
*
product differentiation
personnel differentiation
image differentiation
service differentiation
satisfaction differentiation
*
*
*
*
*
product differentiation
personnel differentiation
image differentiation
service differentiation
satisfaction differentiation
*
*
*
*
*
informational
informational and persuasive
persuasive
persuasive and reminder
reminder
Differentiation approaches such as delivery, installation, customer training, and repair are
forms of:
According to the text, the appropriate communication content during the introduction stage
of the product life cycle would be:
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
*
*
*
*
*
informational
informational and persuasive
persuasive
persuasive and reminder
reminder
Which one of the following communication approaches would be appropriate during the
growth and maturity stages of the product life cycle*
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
*
*
*
*
*
type
type
type
type
type
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:
1
2
3
4
5
staff
staff
staff
staff
staff
The typical McDonald's employee who works the front counter would be considered:
*
*
*
*
*
type
type
type
type
type
1
2
3
4
5
staff
staff
staff
staff
staff
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
*
*
*
*
*
type
type
type
type
type
1
2
3
4
5
staff
staff
staff
staff
staff
*
*
*
*
*
type
type
type
type
type
1
2
3
4
5
staff
staff
staff
staff
staff
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 consumers purchase decision are:
financial
*
*
*
*
social
performance
all of the above
none of the above
*
*
*
*
*
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
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:
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
*
*
*
*
*

make sure the product is in the evoked set of alternatives
The suggested communication strategy to use when the product is tangible dominant is to:
The suggested communication strategy to use when the service firm is a restaurant that
offers food and service is to:
*
*
*
*
*

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
Churchills dog is a good example of which of the following guidelines for developing service
communications*
*
*
*
*
*

promise what is possible
make the service more abstract
A firm that offers "service guarantees" is attempting to accomplish which of the following
guidelines for developing service communications*
*
*
*
*
*

develop a word-of-mouth communication's network
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

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
*
*
*
*
*
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
Which of the following is not a major role of a service firm's physical evidence*
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
*
*
*
*
*
a desire to stay
a desire to explore
a desire to communicate
feelings of satisfaction
all the above are approach behaviors
*
*
*
spending money
interacting with employees
browsing
Consumer responses to environmental stimuli are characterized by approach or avoidance

behaviors. Consumer approach behavior is defined as:
Which of the following is an example of an approach behavior*
*
*
being brand loyal to a service

all of the above
*
*
*
*
*
inseparability
intangibility
heterogeneity
perishability
none of the above
When developing servicescapes, firm's recognize that their physical environment will affect
employees and customers. This is due primarily to:
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 arms 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
*
*
*
*

the holistic environment
individual behaviors
social interactions
Which of the following mediates the reaction between the perceived servicescape and
customer's and employee's responses to the service environment*
physical environmental dimensions
*
*
*
*
*

the holistic environment
individual behaviors
social interactions
physical environmental dimensions
The emotional states of pleasure-displeasure, arousal-nonarousal, and dominancesubmissiveness are types of __________.
Consumer beliefs, categorization and symbolic meaning are types of:
*
*
*
*
*
physiological customer responses

emotional customer responses
individual approach behaviors
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
*
*
*
*
*
red
blue
yellow
orange
all of the above
Which of the following colors is perceived as aloof, icy and formal*
* 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
*
*
*
*
*
cool colors
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.
Chapter 11: People Issues - Managing Service Employees

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
*
*
*
*
*
University lecturer
Top Shop customer service representatives
McDonalds order takers
restaurant servers
all of the above
Which of the following is a boundary spanner*
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.
*
*
*
*
*
channel 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*
*
*
*
*
*
channel 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*
*
*
*
*
*
channel conflict
*
*
*
*
*
channel 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
*
*
*
*
*
higher labour costs

slower or inconsistent service delivery
decreased word-of-mouth advertising
giveaways and bad decisions
some customers think others receive preferential treatment
Which of the following is not a cost associated with empowerment*
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
high involvement
production line approach
*
*
*
*
*
job involvement
high involvement
production-line approach
The empowerment approach that trains people to manage themselves is called:
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.
*
*

empowerment approach
The firm produces a low cost, high volume product.
*
*

The business environment is predictable with few surprises
*
*

The business thrives on repeat customers
*
*

The business employees Theory Y managers who believe that employees have high growth
needs and strong interpersonal skills
*
*

According to the text, marketing and service orientated organisations are embracing marketfocused 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
*
*
*
*
availability
flexibility
visibility
durability
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*
reversibility
*
*
*
*
*
availability
flexibility
timeliness
durability
perishability
Which of the following tests of reward effectiveness reflects the notion that rewards should
be given immediately following desired behaviours*
be tied to desired performance criteria*
*
*
*
*
*
availability
flexibility
timeliness
durability
contingent
be large enough for employees to take notice*
*
*
*
*
*
availability
flexibility
timeliness
durability
contingent
*
*
*
*
*
availability
flexibility
timeliness
durability
perishability
be able to be given to anyone at anytime*
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
enfranchisement
service passion
climate
production-lining
Empowerment coupled with a performance-based compensation method is called _________.
Chapter 12: People Issues - Managing Service Consumers

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 firms
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:
*
*
*
*
*

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:
*
*
*
*
*

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
*
*
*
*
*
homogeneity
intangibility
heterogeneity
inseparability
perishability
Co-production of services is made possible due to the __________ inherent in the production
of services.
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*
*
*
*
*
*

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
*
*
*
*
*
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
*
*
*
*
*

the more valuable the service, the longer the customer will wait
Strategies developed to minimize this "principle of waiting" have led to increased profit
opportunities for the firm.
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*"
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*"
*
*
*

*
*
solo waits are longer than group waits

the more valuable the service, the longer the customer will wait
*
*
*
*
*
pre-process waits feel longer than in process waits

solo waits feel longer than group waits
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*"
Which of the following statements is not correct*
*
*
*
*
*

occupied time feels longer than unoccupied time
*
*
*
*
*
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
Which of the following "principles of waiting" is stated correctly*
_______ 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
*
*
*
Egocentric Edgar
Freeloading Freda
Hysterical Harold
This customer from hell complains simply so he/she will receive their merchandise for free.
*
*
Bad-Mouth Betty
Dictatorial Dick
*
*
*
*
*
Egocentric Edgar
Freeloading Freda
Hysterical Harold
Bad-Mouth Betty
Dictatorial Dick
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.
*
*
*
*
*
Egocentric Edgar
Freeloading Freda
Hysterical Harold
Bad-Mouth Betty
Dictatorial Dick
*
*
*
*
*
Egocentric Edgar
Freeloading Freda
Hysterical Harold
Bad-Mouth Betty
Dictatorial Dick
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
*
*
*
*
*
targeting
sharing
processing
coding
routing
__________ categorizes customers based on their profitability.
__________ directs incoming customer calls based on the customers profitability.
*
*
*
*
*
targeting
sharing
processing
coding
routing
__________ offers the firms most profitable customers special deals and incentives.
*
*
*
*
*
targeting
sharing
processing
coding
routing
*
*
*
*
*
targeting
sharing
processing
coding
routing
__________ 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*
*
*
*
*
*
targeting
sharing
processing
coding
routing
Charles Schwab Corps 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*
*
*
*
*
*
targeting
sharing
processing
coding
routing
A British airlines passenger was shocked when a ticketing agent told him: Wow, somebody
doesnt like you. Apparently the passenger was involved in an argument with another
airline employee several months earlier. The argument became part of the passengers
permanent record that follows him wherever he flies with United. This is an example of
which of the following CRM outcomes*
*
*
*
*
*
targeting
sharing
processing
coding
routing
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
CRMs 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

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
*
*
*
*
*
skyrocketing inflation
automation
deregulation
more informed consumers
surplus labor
Which of the following is not one of the reasons that fueled the growth of the 1970's
consumerism movement*
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
the
the
the
SERVQUAL Model
Servuction Model
Scale of Market Entities
Expectancy Disconfirmation Model
Technical Assistance Research Program (TARP)
*
*
*
*
*
expectations meet perceptions

expectations exceed perceptions
expectations are less than perceptions
perceptions are less than expectations
expectations meet or exceed perceptions
Positive disconfirmation of consumer expectations occurs when:
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
*
*
*
*
*
sales records
profit reports
registered complaints
the "Scale of 100 Approach"
all the above are indirect measures
Which of the following is not an indirect method of measuring customer satisfaction*
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

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
*
*
*
*
*
5 to 25
15 to 35
25 to 45
45 to 65
65 to 85
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.
__________ 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
*
*
*
*
*
customer satisfaction
desired service
perceived service superiority
perceived service adequacy
both c and d
Which of the following are service quality measures*
_______ service is the level of service the customer actually wants to receive.
desired service
*
*
*
*
predicted service
ideal service
adequate service
*
*
*
*
*
intangibility
perishability
heterogeneity
inseparability
homogeneity
The zone of tolerance is most directly related to which of the following unique service
attributes*
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

past experience
implicit service promises
word-of-mouth communications
*
*
*
*
*
desired service
predicted service
ideal service
adequate service
*
*
*
*
*
desired service
predicted service
ideal service
adequate service
*
*
*
predicted service
the customer's personal service philosophies
adequate service
Situational factors such as bad weather, catastrophe, and random events of over-demand
influence __________ levels.
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:
*
*
transitory service intensifiers

*
*
*
*
*
enduring service intensifier

transitory service intensifier
explicit service promise
implicit service promise
situational factor
When forming customer expectations, price acts as a:
When forming customer expectations, the firm's physical facility acts as a:
*
*
*
*
*

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

situational factor
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
*
*
*
*
*

self-perceived service role
predicted service intensifier
situational factor
personal needs
*
*
*
*
*
response bias
question bias
social desirability bias
collection bias
none of the above
Gregs flight on Ryanair from Dublin to Barcelona departed two hours late because of a high
winds in Dublin. The weather that delayed Gregs flight is a:
A bias in survey results because of responses being received from only a limited group
among the total survey population is called:
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 firms employees from the survey process
* customer know what they want and it is the worst strategy to follow
Naomis 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 mothers 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

_________ 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 customers expectations of a service and perception of
the service actually delivered is called:
*
*
*
*
*
service gap
knowledge gap
standards gap
delivery gap
communication gap
*
*
*
*
*
knowledge gap
standards gap
delivery gap
communications gap
confirmation gap
The firm's increased research orientation and enhanced upward communication

will assist the firm in decreasing which one of the following gaps*
Understanding the customer is a critical step toward minimizing or completely

eliminating the:
*
*
*
*
*
knowledge gap
standards gap
delivery gap
communications gap
confirmation gap
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:
*
*
*
*
*
knowledge gap
standards gap
delivery gap
communications gap
confirmation gap
*
*
*
*
*
knowledge gap
standards gap
delivery gap
communications gap
confirmation gap
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
*
*
*
*
*
knowledge gap
standards gap
delivery gap
communications gap
confirmation gap
*
*
*
*
*
knowledge gap
standards gap
delivery gap
communications gap
confirmation gap
*
*
knowledge gap
standards 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.
*
*
*
delivery gap
communications gap
service gap
*
*
*
*
*
willingness to perform
employee-job fit
role ambiguity
overpromising
inadequate support
Which of the following is NOT a factor influencing the delivery gap*
Employee willingness to perform and employee-job fit are directly related to

which of the following service quality gaps*
*
*
*
*
*
knowledge gap
standards gap
delivery gap
communications gap
service gap
Minimizing the amount of role conflict and role ambiguity experienced by

employees will help reduce the size of this gap.
*
*
*
*
*
knowledge gap
standards gap
delivery gap
communications gap
confirmation 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.
*
*
*
*
*
knowledge gap
standards gap
delivery gap
communications gap
service gap
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
responsiveness
assurance
empathy
*
*
*
*
*
tangibles
responsiveness
assurance
reliability
*
*
*
*
*
tangibles
reliability
responsiveness
assurance
reliability
The SERVQUAL dimension that measures consumer views of the firm's personnel and
communication materials is the ________ dimension.
Employees of excellent companies will be neat in appearance is a typical statement within

the __________ dimension of the SERVQUAL scale.
The __________ dimension is an assessment of the firm's consistency and

dependability in service performance.
*
*
*
*
*
tangibles
empathy
responsiveness
assurance
reliability
*
*
*
*
*
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.
*
*
*
*
*
tangibles
empathy
responsiveness
assurance
reliability
*
*
*
*
*
tangibles
responsiveness
assurance
reliability
The SERVQUAL dimension that measures consumer views that reflect the
security of the firm's operations is the ________ dimension.
Excellent companies will have the customer's best interest at heart is a typical
statement within the __________ dimension of the SERVQUAL scale.
*
*
*
*
*
tangibles
empathy
responsiveness
assurance
reliability
*
*
*
*
*
short questionnaire
validity of the five service quality dimensions
does not predict consumer purchase intention
contact personnel
none of the above
Which of the following is a major criticism of the SERVQUAL scale*
Research that examines the customers perspective of a firms 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.
*
*
*
*
*
tangibles
empathy
responsiveness
assurance
reliability
The SERVQUAL dimension that is typically noted as the most important

by customers is the __________ dimension.
*
*
*
*
*
tangibles
empathy
responsiveness
assurance
reliability
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
*
*
*
*
*
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 is used

specifically to assess employee performance is:
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
*
*
*
*
*
listening
reliability
servant leadership
individual play
service design
Which of the following is NOT a key component that needs to be built into every service
quality system*
Chapter 16: Service Failures and Recovery Strategies

The moments of interaction between the customer and the service firm are called:
*
*
*
*
*
Servuction junction
critical incidents
core service failures
service recovery
instrumental complaints
*
*
*
*
*
service failures
critical incidents
Servuction failures
service recovery
instrumental complaints
Services that do not meet customer expectations are called:
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
dirty silverware in a restaurant
*
*
*

disruptive customers
*
*
*

rude service providers
*
*
*

10 diners not being able to sit together
*
*
*

a Dominos pizza employee who provided a
meal for a family whose house had burnt down
*
*
*

a customer who orders a steak medium
rare and receives it well-done
*
*

an employee who provides magazines for the
children waiting for their parents at the solicitors office
*
*
*

an individual with a disability is unable to gain
access to the elevated booth in a restaurant
*
*
*

a flight attendant is rude to travellers
*
*
*

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.
*
*
*
*
*
ostensive
instrumental
reflexive
non-instrumental
none of the above
In general, individuals avoid making this type of complaint so as not to reinforce

negative self-esteem.
*
*
*
*
*
ostensive
instrumental
reflexive
non-instrumental
none of the above
*
*
*
*
*
ostensive
instrumental
reflexive
non-instrumental
none of the above
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:
*
*
*
*
*

*
*
*
*
*
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*
Which of the following is not a reason customers complain*
*
*
*
*
*
and
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
are not afraid to voice their opinions
Why dont 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
process
* they
* they
* they
accept part of the blame since they are directly involved in the
don't know who to complain to
don't want to create a confrontation
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
critical incident
moment of truth
the critical incident technique
__________ 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.
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
*
*
*
*
*
social
procedural
interactional
distributive
ethical
*
*
*
*
*
social
procedural
interactional
distributive
ethical
The component of perceived justice that refers to the outcomes associated with the service
recovery process is referred to as __________ justice.
During a service recovery effort, the employee promptly refunded the customers money,
but threw the money at the customer. As a result, the recovery effort violated the
customers ___________ justice need.
During a service recovery effort, the employee was very empathetic to the customers 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 customers ___________ justice need.
*
*
*
*
*
social
procedural
interactional
distributive
ethical
__________ 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 recovery audit

service recovery
critical incident
moment of truth
recovery strategies
Service firms that wish to excel at service failures analysis and recovery may conduct a
_______.
Chapter 17: Putting The Pieces Together: Creating the Seamless Service Firm

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
Marketing
Marketing
Marketing
Marketing
orientation
functions
department
forecast
tasks
__________ refers to tasks such as the design of the product, its pricing, its packaging, and its
promotion.
Marketing orientation
*
*
*
*
Marketing
Marketing
Marketing
Marketing
functions
department
forecast
tasks
*
*
*
*
*
finance
marketing
accounting
information systems
management
The department within the firm that traditionally acts as an advocate for the
consumer is:
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
customer
customer
customer
customer
perceptions
needs
expectations
competencies
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
the
the
the
the
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:
customer tier
customization/customer contact matrix
boundary tier
Servuction model
coordination tier
Recruitment, selection, training, and socialization are important steps within:
*
*
*
*
*
the
the
the
the
the
customer tier
customization/customer contact matrix
boundary tier
Servuction model
coordination tier
The tier that it ultimately responsible for developing a service logic that runs
throughout the firm is:
*
*
*
*
*
the
the
the
the
the
customer tier
contact tier
boundary tier
front-line tier
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
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

their
individual needs
__________ stresses recruiting quality personnel and developing training
programs that enhance the performance of existing personnel.
*
*
*
*
*
Marketing logic
Finance logic
Accounting logic
Operations 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
their
individual needs
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
*
*
*
*
*
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
In the effort to create a more customer-focused organization, one of the approaches to

changing the culture through structure is:
Revamping the firm's evaluation and promotion procedures are attempts

to change the organization's culture through:
*
*
*
*
*
systems
structure
people
rewards
*
*
*
*
*
systems
structure
people
rewards
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"
The culture change program that teaches "families" of personnel to reinforce

one another on the job is called:
*
*
*
*
*

'change the way you work"
The culture change program that allows personnel to break the rules in the
context of serving their customers is called:
*
*
*
*
*

"change the way you work"
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 you work"
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
*
*
*
*
*
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 belong within the employee productivity
component*
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 firms 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*

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Chapter 1: An introduction to services

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

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

Blue Cross-Blue Shield Insurance

objects, devices, and performances

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

Deeds, efforts and performances define:

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

on the extreme end of the intangible-dominant side

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

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

Which of the following statements is not true*

* Service knowledge is obtained differently than goods knowledge.

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

Servicescape consists of which of the following features:

the tremendous growth in service-sector employment

* the deregulation of many service industries

European Community, United States, Japan

operations management approach

The industrial management model believes

* employees want to do good work

* Location strategies, sales promotions, and advertising drives sales

operations management approach

* Location strategies, sales promotions, and advertising drives sales

* Companies should invest in people as much as machines.

front-line personnel tend to be more knowledgeable

Chapter 2: Fundamental Differences Between Goods and Services

Test Yourself on MIS

Which of the following statements is false*

* Services cannot be touched or seen in the same manner as goods.

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

Services lack the ability to be stored

Services have no costs of goods sold.

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

The primary cost of producing a service is

The use of tangible clues.

Marketing problems caused by inseparability include all of the following

The service provides physical connection to the service.

Which of the following statements pertain to inseparability is false*

As customer contact increases, the efficiency of the firm decreases.

The centralized mass production of services is difficult due to:

The careful selection of service employees.

The careful selection of service employees.

Which of the following statements pertaining to heterogeneity is false*

* It is almost impossible for a service operation to achieve 100 percent

standardizing or customizing the service

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

Complications attributed to perishability include all of the following except:

* Due to the lack of inventories, marketing and operations must work

higher demand than maximum available supply

the use of creative pricing strategies

the use of creative pricing strategies

the use of creative pricing strategies

increasing consumer participation

Which one of the following statements is true*

The use of third parties increases the supply of service.

* Customer participation in services may result in some loss of control by

the use of reservation systems

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

increasing consumer participation

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

quality of instruction in an educational setting

Standardization and quality control are difficult.

Cannot protect services through patents.