Which of the following is a characteristic of a service?
A) It
is essentially tangible.
B) It does not result in the ownership
of anything.
C) Its production is majorly tied to a physical
product.
D) Services are typically produced and consumed at
different times.
E) A client's presence is not required for
rendering a service.
Page: 356
B
Which of the following is an example of a pure tangible good?
A)
massage
B) shampoo
C) e-mail
D) restaurant meal
E)
air travel
Page: 356
B
To which of the following categories of services does a cell phone
belong?
A) major service with accompanying minor services
B)
major service with accompanying minor goods
C) pure
service
D) pure tangible good
E) tangible good with
accompanying services
Page: 356
E
A computer falls into the ________ category of service mix.
A)
pure tangible good
B) tangible good with accompanying services
C) hybrid
D) major service with accompanying minor
goods
E) pure service
Page: 356
B
Which of the following is an example of a hybrid service?
A)
teaching
B) car
C) restaurant meal
D) soap
E)
air travel
Page: 357
C
A flight with complementary drinks is an example of a ________.
A) major service with accompanying minor goods and
services
B) pure service
C) pure tangible good
D)
tangible good with accompanying services
E) hybrid
Page: 357
A
Which of the following is an example of a pure service?
A) air
travel
B) psychotherapy
C) baby oil
D) a
laptop
E) a restaurant meal
Page: 357
B
Which of the following is true for services?
A) All services are
people-based, while goods are equipment-based.
B) Service
providers can be both for-profit or nonprofit.
C) All service
companies follow the same process to deliver their services.
D)
The client's presence is a hindrance during the service delivery
process.
E) Service providers develop similar marketing programs
for personal services and business services.
Page: 357
B
Some services require that the client be present to conduct the
service. Which of the following is an example of such a
service?
A) pest control
B) furniture polishing
C)
surgery
D) car repairing
E) tax services
Page: 357
C
Services high in ________ have characteristics that the buyers can
evaluate before purchase.
A) search qualities
B) experience
qualities
C) credence qualities
D) privacy qualities
E)
storing qualities
Page: 357
A
Services high in ________ qualities have characteristics that the
buyer can evaluate after purchase.
A) privacy
B) experience
C) credence
D) search
E) stock
Page: 357
B
Services high in ________ are those services that have
characteristics the buyer normally finds hard to evaluate even after
consumption.
A) trial qualities
B) search qualities
C)
experience qualities
D) privacy qualities
E) credence
qualities
Page: 357
E
Which one of the following would be considered high in credence
qualities?
A) an interior of a house
B) a restaurant
C) a haircut
D) psychotherapy
E) a computer
Page: 357
D
Which one of the following is highest in search qualities?
A) a
play at a theater
B) a meal at a restaurant
C) a haircut
D) psychotherapy
E) a computer
Page: 357
E
Unlike physical products, services cannot be seen, tasted, felt,
heard, or smelled before they are bought. This is known as the
________ aspect of services.
A) inseparability
B)
intangibility
C) variability
D) perishability
E) heterogeneity
Page: 358
B
A brand that is action-oriented and causes consumers to engage in
physical actions appeals to the ________ dimension of brand
experience.
A) sensory
B) affective
C)
behavioral
D) intellectual
E) social
Page: 358
C
A brand that is action-oriented and causes consumers to engage in
physical actions appeals to the ________ dimension of brand
experience.
A) sensory
B) affective
C)
behavioral
D) intellectual
E) social
Page: 358
C
BRZ Shoes targets the youth market with vibrant, visually appealing
ads in modern styles. BRZ ads appeal to the ________ dimension of
brand experience.
A) sensory
B) affective
C)
behavioral
D) intellectual
E) social
Page: 358
A
BRZ Shoes positions itself as a young, adventurous brand. Its logo
and brand communication try to give consumers a feeling of excitement
and bravery. These ads appeal to the ________ dimension of brand
experience.
A) sensory
B) affective
C)
behavioral
D) intellectual
E) social
Page: 358
B
________ refer(s) to logos, symbols, characters, and slogans that
service providers use in order to make the service and its key
benefits more tangible.
A) Brand engagement
B) Brand
orientation
C) Brand elements
D) Brand loyalty
E) Brand equity
Page: 359
C
Which of the following is true regarding services?
A) Services
are typically produced, stored, and then consumed.
B) Services
are generally low in experience and credence qualities.
C)
Service providers develop similar marketing programs for personal
services and business services.
D) There is less risk associated
with the purchase of services than with the purchase of goods.
E)
Provider-client interaction is a special feature of services marketing.
Page: 359
E
The fact that services are typically produced and consumed
simultaneously is known as the ________ aspect of services.
A)
perishability
B) intangibility
C) heterogeneity
D)
inseparability
E) variability
Page: 359
D
Service quality depends on who provides them, when and where, and to
whom. Thus, services are highly ________.
A) inseparable
B)
tangible
C) variable
D) perishable
E) intangible
Page: 359
C
Which of the following will help a service provider overcome the
limits imposed by the inseparability of services?
A) using
differential pricing
B) working with larger customer
groups
C) providing complementary services
D) concentrating
on physical evidence and presentation
E) standardizing the
service process
Page: 359
B
Which of the following steps will help service firms to increase
their quality control?
A) standardizing the service-performance
process
B) providing complementary services to customers
C)
giving personnel authority in handling situations
D) adopting
differential pricing
E) cultivating nonpeak demand
Page: 360
A
In order to map out the service process, the points of customer
contact, and the evidence of service from the customer's point of
view, service firms should develop a ________.
A) marketing
plan
B) service floor plan
C) Gantt chart
D) business
plan
E) service blueprint
Page: 360
E
Jake had an appointment at the doctor's, but couldn't make it on time
because he was caught in traffic. By the time he reached the doctor's
office, the doctor had already begun with the next patient. This
illustrates the ________ of services.
A) variability
B)
heterogeneity
C) perishability
D) intangibility
E) homogeneity
Page: 361
C
When a theater sells matinee movie tickets at low prices, it aims to
shift some demand from the peak to the off-peak period. What is the
strategy that the theater is said to be adopting?
A) It is
providing complementary services.
B) It is increasing peak-time
efficiency.
C) It is using linear pricing.
D) It is using
differential pricing.
E) It is sharing services.
Page: 361
D
A travel agency offers weekend discounts for car rentals. What can be
deduced from this?
A) It is increasing peak-time
efficiency.
B) It is using differential pricing.
C) It is
using linear pricing.
D) It is cultivating peak demand.
E)
It is providing complementary services.
Page: 361
B
In which of the following cases is a service provider trying to
increase non-peak demand?
A) A fine dining restaurant is
promoting a breakfast service in addition to its popular lunch and
dinner options.
B) An upscale restaurant has a cocktail lounge
where customers can wait until a table is ready.
C) AXA Bank set
up automated teller machines so that its customers could avoid
standing in line.
D) Chesterton College hired part-time teachers
as enrollment increased significantly.
E) Big department stores
usually hire extra staff to handle the rush during the holiday season.
Page: 361
A
The Caesar Park Hotel generally caters to business customers during
the week, but has now decided to promote minivacation weekends for
non-business customers as well. What is the Caesar Park Hotel trying
to do?
A) It is implementing premium pricing.
B) It is
trying to cultivate nonpeak demand.
C) It is promoting
complementary services.
D) It is putting reservation systems in
place.
E) It is implementing differential pricing.
Page: 361
B
Cocktail lounges in restaurants are examples of ________.
A)
differential pricing
B) cultivating nonpeak demand
C)
complementary services
D) reservation systems
E) shared services
Page: 361
C
Which of the following is an example of a complementary
service?
A) Big department stores usually hire extra staff to
handle the rush during the holiday season.
B) The Caesar Park
Hotel generally caters to business customers during the week, but has
now decided to promote minivacation weekends for non-business
customers as well.
C) More paramedics are on hand to assist
physicians during times when emergency admissions are highest.
D)
AXA Bank set up automated teller machines so that its customers could
avoid standing in line.
E) Chesterton College hires part-time
teachers when enrollment goes up.
Page: 361
D
Walmart has decided to hire extra clerks during the holiday season.
It is said to be ________.
A) matching its supply with the
existing demand
B) generating non-peak demand
C) increasing
its customer participation
D) sharing its services
E)
facilitating for its future expansion
Page: 361
A
Kaya, a chain of skin clinics, requests each new visitor to fill up
their own details on a printed form. This is a step in
________.
A) increasing its peak-time efficiency
B) creating
nonpeak demand
C) increasing consumer participation
D)
sharing its services
E) facilitating its future expansions
Page: 361
C
Customers today want separate prices for each service element and
they also want the right to select the elements they want. The
customers are said to be pressing for ________.
A) complementary
services
B) perishable services
C) variable services
D)
unbundled services
E) shared services
Page: 362
D
Often, a service problem arises from a customer's lack of
understanding or ineptitude. Which of the following can help to
minimize customer failures?
A) giving customers exclusive primary
service packages
B) redesigning processes to simplify service
encounters
C) using differential pricing and shared
services
D) minimizing service intangibility
E) working with
more customers at the same time
Page: 364
B
________ refers to the normal work of preparing, pricing,
distributing, and promoting the service to customers.
A)
Interactive marketing
B) Internal marketing
C) External
marketing
D) Promotional marketing
E) Direct marketing
Page: 365
C
________ refers to training and motivating employees to serve
customers well.
A) External marketing
B) Promotional
marketing
C) Direct marketing
D) Internal marketing
E)
Interactive marketing
Page: 365
D
________ describes the employees' skill in serving the
client.
A) External marketing
B) Internal marketing
C)
Promotional marketing
D) Direct marketing
E) Interactive marketing
Page: 365
E
Susanna wanted to check out a new salon in her locality, so she
decided to go for a hair styling session. She was very happy with the
way her stylist connected and related with her concerns. She is
judging the service based on its ________.
A) promotional
marketing
B) functional quality
C) technical quality
D)
search qualities
E) external marketing
Page: 365
B
In which of the following does a customer respond to the technical
quality of a service?
A) Sara's preferred hair stylist is some
miles away, but Sara goes to him because his styles suit her
looks.
B) Kathy tries out a new restaurant every week, because
she likes to experience the variety.
C) Bill has gone to the same
chiropractor for the past fifteen years, because he is friendly and
takes the time to listen to Bill.
D) Ray avoids going to the bank
as far as possible because the manager is rude and unhelpful.
E)
Alex has no interest in theater, but goes often because her best
friend loves plays.
Page: 365
A
In which of the following does a customer respond to the functional
quality of a service?
A) Sara's preferred hair stylist is some
miles away, but Sara goes to him because his styles suit her
looks.
B) Kathy tries out a new restaurant every week, because
she likes to experience the variety.
C) Bill has gone to the same
chiropractor for the past fifteen years, because he is friendly and
takes the time to listen to Bill.
D) Ray's mechanic charges high
prices for service, but his work is good and worth the price.
E)
Alex has no interest in theater, but goes often because her best
friend loves plays.
Page: 365
C
Firms have decided to raise fees and lower service for those
customers who barely pay their way and to coddle big spenders to
retain their patronage as long as possible. This is an example of
organizing customers by ________.
A) retailer
convenience
B) profit tiers
C) psychographic
characteristics
D) social influence
E) customer preference
Page: 366
B
Charles Schwab's best customers are instantly directed to customer
service representatives, while other customers have to wait longer.
Charles Schwab is trying to ________.
A) monitor its service
systems
B) empower the customers
C) retain the patronage of
profitable customers
D) increase consumer participation
E)
standardize the service-performance process
Page: 366
C
The ________ rates the various elements of the service bundle and
identifies required actions.
A) company performance
analysis
B) voice of customer measurement
C) customer factor
measurement
D) importance-performance analysis
E) customer
importance analysis
Page: 367
D
Customers who view a service as homogeneous ________.
A) only
patronize a preferred service provider
B) judge services on the
basis of the providers
C) care less about the provider than about
the price
D) pick a service provider based on functional
attributes
E) opt for the service with the highest price,
irrespective of quality
Page: 368
C
Belling Hotels provides complimentary breakfast buffets to all its
guests. This is an example of a ________.
A) primary service
package
B) service interface
C) service support
D)
service frequency
E) secondary service feature
Page: 369
E
Although Brenda previously used the U.S. Postal Service because it
offered better prices on package shipping, she now uses only FedEx,
because it gives her the facility of shipping from any FedEx Kinkos
location 24 hours a day. Which of the following factors led to
Brenda's customer switching behavior?
A) inconvenience
B)
pricing
C) response to service failure
D) ethical problems
E) involuntary switching
Page: 371
A
Angela switched to a new hair stylist after getting a bad haircut
from her previous stylist. This is an example of which of the
following factors leading to customer switching behavior?
A)
service encounter failure
B) core service failure
C)
response to service failure
D) involuntary switching
E)
competition
Page: 371
B
Dean recently had a BRZ broadband connection installed. However, the
connection was bad and he didn't get the quality he required. He
contacted BRZ about the problem, but the company did not solve his
problem. Dean switched to Blue Broadband. Which of the following was
the cause of Dean's switching behavior?
A) involuntary switching
B) competition
C) response to service failure
D)
service encounter failures
E) inconvenience
Page: 371
C
MGC Inc. organizes a company-wide picnic once a year. The organizers
arranged for the best possible menu thinking that food would be a
priority, but the staff were disappointed because the activities were
very poorly planned. What kind of a gap is apparent here?
A) gap
between perceived service and expected service
B) gap between
service delivery and external communications
C) gap between
service-quality specifications and service delivery
D) gap
between management perception and service-quality specification
E) gap between consumer expectation and management perception
Page: 373
E
Which of the following is an example of a gap between management
perception and the service-quality specifications?
A) The college
brochure showed state-of-the-art classrooms, but when the visitors
walked in, they saw peeling walls and dull lighting.
B) A nurse
visits a patient to show care, but the patient interprets this as an
indication that something is very wrong.
C) The hotel
administrators think that guests want better food, but guests are more
concerned with the courtesy of the waiters.
D) A service center
manager has asked his subordinates to provide fast service, but has
not specified a time for the service to be performed.
E) Customer
service representatives are asked to give ample time to each customer,
but must serve a minimum of 50 customers a day.
Page: 373
D
The customer service representatives at a call center have been asked
to handle each call in not more than five minutes. A recent customer
survey by the company revealed that customers appreciate it when
employees take the time to answer their questions fully and listen to
their grievances. What kind of service gap is apparent here?
A)
gap between perceived service and expected service
B) gap
between service delivery and external communications
C) gap
between service-quality specifications and service delivery
D)
gap between management perception and service-quality specification
E) gap between consumer expectation and management perception
Page: 373
D
The customer service representatives at a call center have been asked
to handle each call in not more than five minutes. At the same time,
they have been asked to answer all customer queries in detail and
provide appropriate solutions. What kind of service gap is apparent
here?
A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service
delivery
D) gap between management perception and
service-quality specification
E) gap between consumer
expectation and management perception
Page: 373
C
Which of the following is an example of a gap between service
delivery and external communications?
A) The employees at GBL
have been asked to take time to listen to customers, but they must
serve them fast as well.
B) Amanda chose to shop at Alison's
Fashions because the store's website offered on-the-spot alterations.
However, when she did buy a dress, she had to wait a week to get it
altered.
C) Customers at LUX appreciate the personalized services
the salespeople offer, but do not like the store design.
D)
Clearwater Spa attendants are well-trained in massage therapy and the
services they offer, but customers rarely return because they don't
like the attendants' impersonal service.
E) When sales dropped,
Styx modernized its stores in order to retain customers, but didn't
realize that the product quality was the main problem.
Page: 373
B
Ellen came across an ad for a new restaurant which promised authentic
French cuisine. When she ate there, however, she was disappointed to
find that the food was mediocre and not very authentic. Which of the
following gaps of service performance does this demonstrate?
A)
gap between service-quality specifications and service
delivery
B) gap between perceived service and expected service
C) gap between service delivery and external communications
D) gap between consumer expectation and management
perception
E) gap between management perception and
service-quality specification
Page: 373
C
When Aaron went to his doctor for his annual checkup, he was asked to
undergo a number of tests. Although the doctor assured Aaron that the
tests were routine, Aaron thinks that the doctor is hiding a grave
problem from him. What kind of a gap is apparent here?
A) gap
between perceived service and expected service
B) gap between
service delivery and external communications
C) gap between
service-quality specifications and service delivery
D) gap
between management perception and service-quality specification
E) gap between consumer expectation and management perception
Page: 374
A
The most important determinant of service quality is ________ which
refers to the ability to perform the promised service dependably and
accurately.
A) empathy
B) assurance
C) responsiveness
D) reliability
E) tangibles
Page: 374
D
The customer service representatives at G.K.'s customer service
center must know as much about the products as possible, so that they
can help the customers solve their difficulties without sounding
hesitant or unsure of themselves. Which of the following determinants
of service quality are they being asked to demonstrate?
A)
responsiveness
B) assurance
C) empathy
D)
reliability
E) tangibility
Page: 374
B
Josh gets his bike serviced at Dean's Garage even though there's
another garage much closer to home. He prefers Dean's because the work
is usually done quickly and the staff try to solve the issues with the
bike as soon as possible. Dean's Garage excels at which of the
following five determinants of service quality?
A) reliability
B) responsiveness
C) assurance
D) empathy
E)
tangibles
Page: 374
B
The ________ determinant of service quality refers to the knowledge
and courtesy of employees and their ability to convey trust and
confidence in the service they provide.
A) conscientious
B)
assurance
C) empathy
D) reliability
E) responsiveness
Page: 374
B
Leo's manager has asked him and his teammates to demonstrate caring
towards customers. They are instructed to learn the customers' names,
and use the customers' names while interacting with them. Repeat
customers should get special attention, and the team members should
remember their preferences and habits. The manager is asking the team
to be ________.
A) assuring
B) candid
C)
empathetic
D) reliable
E) responsive
Page: 374
C
Gloria goes to the same bagel shop every morning because the workers
there remember her name and know her order. They always make her feel
welcome. The employees of this bagel shop excel at which of the
following determinants of service quality?
A) reliability
B) responsiveness
C) assurance
D) empathy
E)
tangibles
Page: 374
D
The zone of ________ is a range where a service dimension is deemed
satisfactory, anchored by the minimum level consumers are willing to
accept and the level they believe can and should be delivered.
A) immunity
B) tolerance
C) reliability
D)
assurance
E) flexibility
Page: 374
B
According to the dynamic process model, two different types of
expectations have opposite effects on perceptions of service quality.
One of these is that ________.
A) increasing customer
expectations of what the firm will deliver improve the perceptions of
overall service quality
B) increasing customer expectations of
what the firm will deliver decrease the perceptions of overall service
quality
C) decreasing customer expectations of what the firm
should deliver decrease the perceptions of overall service
quality
D) decreasing customer expectations of what the firm will
deliver improve the perceptions of overall service quality
E)
increasing customer expectations of what the firm should deliver
improve the perceptions of overall service quality
Page: 374
A
When customers calculate the perceived economic benefits of a
continuously provided service in relationship to the economic costs,
they are gauging the ________.
A) private equity
B) brand
equity
C) payment equity
D) customer-service equity
E)
product-service equity
Page: 375
C
A ________ refers to any place at which a company seeks to manage a
relationship with a customer, whether through people, technology, or
some combination of the two.
A) customer-service
interface
B) product-customer interface
C) tangible user
interface
D) attentive user interface
E) crossing-based interface
Page: 375
A
Regular maintenance and repair costs are known as ________.
A)
service contract costs
B) out-of-pocket costs
C) fixed
costs
D) facilitating services costs
E) value-augmentation costs
Page: 376
B
The product's purchase cost plus the discounted cost of maintenance
and repair less the discounted salvage value gives the
________.
A) service warranty cost
B) out-of-pocket
cost
C) life-cycle cost
D) facilitating services
cost
E) value-augmentation cost
Page: 376
C
Expensive equipment manufacturers not only install the equipment but
also train the staff and undertake the maintenance and repair
activities of the equipment. By doing so, they are providing
________.
A) payment equity
B) value-augmenting
services
C) differential pricing
D) facilitating services
E) a primary service package
Page: 377
D
When Johnson Controls reached beyond its climate control equipment
and components business to manage integrated facilities by offering
products and services that optimize energy use, it was said to be
providing ________.
A) facilitating services
B) a primary
service package
C) value-augmenting services
D) service
contracts
E) service warranties
Page: 377
C
When sellers agree to provide free maintenance and repair services
for a specified period of time at a specified contract price, they are
offering ________.
A) a complementary service
B) payment
equity
C) a service blueprint
D) differential
pricing
E) an extended warranty
Page: 377
E
The private non-profit sector is a provider of services.
Page: 356
true
A service is essentially intangible.
Page: 356
true
A service results in ownership on the part of the client.
Page: 356
false
The production of a service is never tied to a physical product.
Page: 356
false
Soap is an example of a pure tangible good.
Page: 356
true
Salt is an example of a hybrid.
Page: 356
false
A hybrid consists of unequal parts of goods and services, with
services being in the majority.
Page: 357
false
A pure service requires a capital-intensive good, but the primary
item is a service.
Page: 357
false
All services require the client to be present.
Page: 357
false
The search qualities of a service are the characteristics the buyer
can evaluate before purchase.
Page: 357
true
Credence qualities of a service are difficult to evaluate before
purchase, but easy to evaluate after consumption.
Page: 357
false
The experience qualities of a good or service can be evaluated after purchase.
Page: 357
true
Furniture is high in credence qualities.
Page: 357
false
While goods meet personal needs, services meet business needs.
Page: 357
false
Services have five distinctive characteristics, one of these being
"pure service."
Page: 358
false
Intangibility with regards to a service means that the service cannot
be duplicated across providers.
Page: 358
false
Service companies try to demonstrate their service qualities through
physical evidence and presentation.
Page: 358
true
Inseparability in the context of a service means that there is a
provider-client interaction involved as the provider is part of the service.
Page: 359
true
A service provider can work with larger groups to get around the
limitations of inseparability.
Page: 359
true
The quality of services is independent of who provides them.
Page: 359
false
Customers want unbundled services, with separate prices for each
service element and the right to select the elements they want.
Page: 362
true
External marketing describes the training and motivation required by
employees in order to properly serve the customers.
Page: 365
false
Interactive marketing describes the employees' skill in serving the
client.
Page: 365
true
Clients judge service not only by its technical quality but also by
its functional quality.
Page: 365
true
Importance-performance analysis rates the various elements of the
service bundle and identifies required actions.
Page: 367
true
Customers who view a service as fairly homogeneous care less about
the provider than
about the price.
Page: 368
true
What the customer expects from a service is called the primary
service package.
Page: 369
true
Secondary service features are the features that the customer himself
adds to the service.
Page: 369
false
Pricing has no negative effect on customer loyalty.
Page: 371
false
If the expected service falls below the perceived service, customers
are disappointed.
Page: 373
false
Responsiveness is a company's willingness to help customers and
provide prompt service.
Page: 374
true
Reliability refers to the company's willingness to help customers and
provide them with prompt service.
Page: 374
false
The appearance of physical facilities, equipment, personnel, and
communication materials are the tangibles that convey service quality
to consumers.
Page: 374
true
The zone of tolerance for a service is the perceived economic
benefits in relationship to the economic costs.
Page: 374
false
The payment equity for a service is a range from the minimum level of
service consumers are willing to accept to the level they believe can
and should be delivered.
Page: 375
false
A customer-service interface is defined as any place at which a
company seeks to manage a relationship with a customer.
Page: 375
true
If the length of the downtime increases, the cost incurred decreases.
Page: 376
false
A product's purchase cost plus the discounted cost of maintenance and
repair less the discounted salvage value is known as the product's
activity cost.
Page: 376
false
Out-of-pocket costs are what the customer spends on regular
maintenance and repair costs.
Page: 376
true
Value-augmenting services include installation, staff training,
maintenance and repair services, and financing.
Page: 377
false