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SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<

Chapter 1The ____ reflects the view that the intangible aspects of products are becoming the key features that differentiate the products in the marketplace.

a.services marketingb.servuction model

c.service imperatived.benefit concepte.industrial management model

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

a.insuranceb.farmingc.miningd.engineering

e.There is no such thing as a pure service.

Question Which of the following sets of terms best describes a service?

Answer

a.objects, devices, and performancesb.effort, objects, and deedsc.things, devices, and performancesd.objects, devices, and things

e.1


deeds, effort, and performances

Question

On the scale of market entities, with tangible-dominant to the extreme left and intangible-dominant to the extreme right, investment management services would appear:

Answer

a.to the extreme left.b.mid-left.c.in the middle.

d.mid-right.e.to the extreme right.

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

Answer

a.services triangle.b.servuction model.

c.scale of market entities.d.service-profit chain.e.Q continuum.

Question Businesses such as fast food restaurants would fall where along the scale of market entities?

Answer a.on the extreme end of the intangible-dominant sideb.on the extreme end of the intangible-dominant side

c.in the middle of the continuum

2


d.left of the middle towards the tangible-dominant sidee.right of the middle towards the intangible-dominant side

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

Answer

a.manufacturingb.educationc.insuranced.bankinge.engineering

Question Which of the following is an example of intangible-dominant?

Answer

a.a steakhouseb.car rental agencyc.a funerald.a magazine subscription

e.math tutoring

Question Which of the following statements is NOT true?

Answer a.

Consumers evaluate goods and services differently.b.Firms that define their businesses too narrowly by overlooking the service aspects have developed service marketing myopia.

c.Goods are intangible-dominant.

3


d.Consumers evaluate services based on the experiential aspects provided.e.The term product refers to both goods and services

Question The economic value of transforming goods into services is illustrated by paying:

Answer

a.$7 for a cup of coffee in a five-star restaurant.b.$3 for a pound of coffee beans at the market.c.$6 to have your car washed.d.$7 to have your dog walked.e.$120 for a health checkup.

Question

The ____ involves a pictorial representation of the relationship between the tangible and intangible elements of a firm's operation.

Answer

a.molecular modelb.servuction modelc.benefit conceptd.industrial management modele.market-focused model

Question Which of the following could NOT be included in the airline molecular model?Answer a.

long-term parking

b.financing arrangementsc.rental car availabilityd.

4


gate attendantse.baggage handlers

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

Answer

a.servuction model.

b.benefit concept.c.service triangle.d.service-profit chain.e.scale of market entities.

Question

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

Answer

a.price.b.contact personnel/service providers.c.other customers.d.servicescape.e.organization and systems.

Question Which of the following components of the servuction model is invisible to consumers?

Answer a.

servicescape

b.organization and systemsc.other customers

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d.contact personnele.service providers

Question

A customer who notices dirty silverware and a dirty floor in his/her favorite restaurant and loses his/her appetite has been influenced by which of the following components of the servuction model?

Answer

a.servicescapeb.organization and systemsc.other customersd.contact personnele.service providers

Question Servicescape consists of which of the following features?

Answer

a.personal artifactsb.inanimate objectsc.signsd.ambient conditions

e.all of these

Question The component of the servuction model over which most service firms have the least control is:

Answer

a.servicescape.b.organization and systems.

6


c.other customers.d.contact personnel.e.service providers.

Question

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 negatively influenced the customer's experience?

Answer

a.servicescape

b.organization and systemsc.other customersd.contact personnele.service providers

Question

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 negatively influenced the customer's experience?

Answer

a.servicescape

b.organization and systemsc.other customersd.contact personnele.service providers

Question Most people tend to associate this term with being "green" and protecting the environment.Answer

a.

7


sustainabilityb.tangibilityc.intangibilityd.social responsibilitye.all of these

Chapter 3Question Services are characterized by all of the following characteristics except:

Answer

a.intangibility.

b.homogeneity.c.perishability.d.inseparability.e.heterogeneity.

Question Which of the following statements is false?

Answer

a.Services cannot be touched or seen in the same manner as goods.b.Consumer judgments about services tend to be more subjective than objective.

c.Services are first produced, then sold, then consumed.d.Services tend to vary from one transaction to the next.e.Services cannot be inventoried.

Question

Of the four unique service characteristics that distinguish goods from services, the one that is the primary source of the other three characteristics is:

Answer a.

intangibility.b.

8


inseparability.c.homogeneity.d.perishability.e.heterogeneity.

Question Which of the following is NOT a marketing challenge posed by intangibility?

Answer

a.Services lack the ability to be stored.b.Services lack patent protection.c.Services are difficult to price.d.Services are difficult to communicate to consumers.

e.Consumers are involved in the service production process.

Question Which of the following is a marketing challenge posed by intangibility?

Answer

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

Question The primary cost of producing a service is:

Answer a.

9


rent.b.overhead.c.cost of goods sold.

d.labor.e.promotional expenses.

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

Answer

a.the use of tangible clues.

b.the effective management of consumers.c.the creation of a strong organizational image.d.the use of personal sources of information.e.the use of activity-based costing.

Question The unique service characteristic that reflects the interconnection between the service firm and its customer is called:

Answer

a.intangibility.

b.inseparability.c.homogeneity.d.perishability.e.heterogeneity.

Question Marketing challenges posed by inseparability include all of the following except:Answer a.

the physical connection of the service to the service provider.

10


b.the involvement of the customer in the production process.

c.the difficulty to achieve service standardization and quality control.d.the involvement of other customers in the production process.e.the challenge for the mass production of the service.

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

Answer

a.intangibility.

b.inseparability.c.homogeneity.d.perishability.e.heterogeneity.

Question The centralized mass production of services is difficult due to:

Answer

a.inseparability.b.intangibility.c.homogeneity.d.perishability.e.heterogeneity.

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

Answer a.11


the careful selection of service employees.b.the management of service consumers.c.the use of multisite locations to distribute services.d.the training of public contact personnel.

e.appealing to market segments with different demand patterns.

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

Answer

a.the careful selection of service employees.b.the management of service consumers.

c.the use of multisite locations to distribute services.d.the training of public contact personnel.e.appealing to market segments with different demand patterns.

Question The service characteristic that reflects the variation in consistency from one service transaction to the next is:

Answera.inseparability.b.intangibility.c.homogeneity.d.perishability.

12


e.heterogeneity.

Question Which of the following statements pertaining to heterogeneity is false?

Answer

a.It is almost impossible for a service operation to achieve 100% perfect quality on an ongoing basis.b.Standardization and quality control are difficult to achieve.

c.Customers always prefer customized services over standardized services.d.Customized services are generally more expensive than standardized services.e.It is easier to customize services than goods.

Question All of the following are advantages of standardized services except:

Answer

a.they are less expensive.

b.they meet the customer's exact needs.c.they are delivered faster.d.they are more consistent.e.none of these are exceptions.

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

a.standardizing or customizing the service.b.using multisite locations.c.

13


stressing tangible clues.d.appealing to different market segments with different demand patterns.e.using reservation systems.

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

Answer

a.inseparability.b.intangibility.c.homogeneity.

d.perishability.e.heterogeneity.

Question Complications attributed to perishability include all of the following except:

Answer

a.services that are not sold when they become available cease to exist.b.the production and consumption of services cannot be separated by time and space.c.statistical sampling techniques are of little use in services.d.due to the lack of inventories, marketing and operations must work much closer together.

e.products are sold at a transfer price from one department to another within the same company.

Question Which of the following scenarios is likely to lead to the highest level of customer dissatisfaction?

Answer a.14


higher demand than maximum available supply

b.higher demand than optimal supply levelsc.lower demand than optimal supply levelsd.demand and supply at optimal levelse.All of these scenarios result in equal levels of customer dissatisfaction.

15


Question

A perishability-related strategy that increases the supply of services by forming a co-op with other service providers is referred to as:

Answer

a.complimentary service sharing.

b.capacity sharing.c.expansion preparation.d.third-party utilization.e.nonpeak demand development.

Question

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:

Answer

a.the use of reservation systems.b.training public contact personnel.c.the use of third-parties to conduct service transactions.

d.increasing the amount of consumer participation.e.training public contact personnel and increasing the amount of consumer participation

Question Which of the following would NOT be considered a tangible clue?

Answer

a.the quality of instruction in an educational settingb.the appearance of employeesc.the appearance of the firm's physical facilitiesd.the smile on an employee's facee.the quality of paper stock use to produce a firm's brochures.

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Chapter 5Question The place within an organization where its primary operations are conducted is called the:

Answer

a.the technical core.b.the organizational point.c.the factory.d.the main system.e.main terminal.

Question

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:

Answer

a.the perfect-world model.b.operations segmentation.

c.the plant-within-a-plant concept.d.operations segregation.e.management by focus.

Question All of the following are examples of the technical core within an organization except the:

Answer

a.kitchen in restaurant.b.surgical room in a hospital.c.service bay at an auto repair facility.

d.waiting area at a dentist's office.e.projection booth in a movie theater.

17


Question Strategies to increase the efficiency of service operations include all of the following except:

Answer

a.buffering.b.smoothing.c.anticipating.d.rationing.

e.allocating.

Question

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:

Answer

a.buffering.b.smoothing.c.anticipating.

d.rationing.e.allocating.

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

Answer a.

buffering.b.smoothing.c.anticipating.d.rationing.

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e.allocating.

Question

Which of the following is NOT one of the broad categories of strategies used to overcome the problems of service operations?

Answer

a.isolating the technical coreb.production-lining the whole systemc.creating flexible capacityd.increasing customer participation

e.maximizing the servuction system

Question The objective of decoupling is:

Answer

a.separating consumption in time and space.b.unbundling services so that they may be purchased separately.

c.separating the technical core of the operation from the high customer contact areas of the firm so that efficiencies may be achieved.d.managing consumers so that they do not negatively influence one another's service experience.e.separating co-workers who, due to their differences, decrease the operational efficiency of the system.

Question Production-lining a service operation can be achieved through:Answer a.

utilizing hard technologies.b.customizing services.c.utilizing soft technologies.d.meeting individual customer needs.

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e.utilizing hard and soft technologies.

Question Which of the following is an example of decoupling?

Answer

a.using part-time employeesb.sharing capacity with another firm

c.handling routine transactions by mail or email d.cross-training employeese.offering discounts during non-peak times

QuestionSoft technologies refer to the:

Answer

a.personal touches that ultimately lead to customer satisfaction.b.flexible rules that can be bent to meet customer needs.c.guidelines that permit employee empowerment.d.hardware that facilitates the production of a standardized product.

e.rules, regulations, and procedures that facilitate the production of a standardized product.

Question An automatic teller machine (ATM) is an example of:Answer

a.production-lining.b.isolating the technical core.c.decoupling.

20


d.creating flexible capacity.e.moving the time of demand.

Question All of the following are examples of creating flexible capacity except:

Answer

a.using part-time employees.b.sharing capacity with another firm.

c.handling routine transactions by mail or email.d.cross-training employees.e.none of these are exceptions.

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

Answer

a.bottlenecks are not identified correctly.b.failure points are not identified correctly.

c.the blueprint is one-sided − representing only the firm's perception of the process.d.script norms are misunderstood.e.the time frame for service execution is miscalculated.

Question Which of the following is NOT a step in the construction process of a service blueprint?Answer a.

obtaining scripts from both customers and employees

b.segmenting customers based on the content of the scriptc.identify steps in the process where the system can go awryd.calculating the time frame for service execution

21


e.analyzing the profitability of the system

Question A volume-oriented positioning strategy is achieved by:

Answer

a.increasing divergence.

b.reducing divergence.c.increasing complexity.d.reducing complexity.e.unbundling the service.

Question

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

Answer

a.niche positioning strategy.b.volume-oriented positioning strategy.c.specialization positioning strategy.d.penetration strategy.e.market diversification strategy.

Question A specialization positioning strategy is accomplished by:

Answer

a.increasing divergence.b.reducing divergence.c.

22


increasing complexity.

d.reducing complexity.e.bundling the service.

Question

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:

Answer

a.niche positioning strategy.b.volume-oriented positioning strategy.c.specialization positioning strategy.

d.penetration strategy.e.market diversification strategy.

Question

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:

Answer

a.increasing divergence.b.reducing divergence.c.increasing complexity.

d.unbundling the service.e.divesting concentration.

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Chapter 6Question A buyer's perception of value is considered a trade-off between:

Answer

a.product value and psychic cost.

b.total customer value and total customer cost.c.image value and energy cost.d.service value and monetary cost.e.personnel value and time cost.

Question Total customer value consists of all of the following components except _____ value.

Answer

a.productb.servicec.image

d.timee.personnel

Question Total customer cost consists of all of the following components except _____ cost.

Answer

a.monetary

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b.socialc.timed.psychice.energy

Question

Consumers exchange their money, time, and effort for the bundle of benefits the service offers. Economic theory suggests that consumers will have a(n) ____ that captures the value they place on these benefits.

Answer

a.lower price threshold

b.reservation pricec.consumer surplusd.image valuee.product value

Question When pricing a service, the service provider should consider all of the following except _____ considerations.

Answer

a.demandb.costc.customer

d.intuitivee.product

Question A consumer's price sensitivity will increase as:Answer

25


a.the perceived number of substitutes increase.b.switching costs increase.c.the shared costs for the expenditure increase.d.the perceived unique value of the service increases.e.the customer's ability to build an inventory decreases

Question A consumer's price sensitivity will increase as:

Answer

a.the perceived number of substitutes decrease.b.switching costs increase.c.the shared costs for the expenditure increase.d.the perceived unique value of the service increases.

e.the customer's ability to build an inventory increases

Question A consumer's price sensitivity will decrease as:

Answer

a.the perceived number of substitutes increase.

b.switching costs increase.c.the shared costs for the expenditure decreases.d.the perceived unique value of the service decreases.e.the customer's ability to build an inventory increases

Question A consumer's price sensitivity will decrease as:26


Answer

a.the perceived number of substitutes increase.b.switching costs decrease.

c.the shared costs with third parties increase.d.the perceived unique value of the service decreases.e.the customer's ability to build an inventory increases.

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

Answer

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

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

Answer

a.The demand for services tends to be more elastic than the demand for goods.

b.Cost-oriented pricing is more difficult for services.c.Comparing prices of competitors is less difficult for service consumers.d.Self-service is not a viable competitive alternative.e.Consumers are more able to stockpile services by taking advantage of discount prices

27


Question The mental energy spent by customers to acquire a service is referred to as:

Answer

a.image costs.b.monetary price.c.energy costs.

d.psychic costs.e.time costs.

Question

A willingness to pay more for a service because of the top-notch reputation of the company providing it is related to _____ value.

Answer

a.psychic

b.imagec.serviced.producte.personnel

Question

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:

Answer

a.relationship pricing.b.price bundling.c.mixed bundling.d.efficiency pricing.

e.flat-rate pricing.

28


Question All of the following are a form of satisfaction-based pricing except:

Answer

a.offering guarantees.b.benefit-driven pricing.c.flat-rate pricing.

d.relationship pricing.e.none of these are exceptions.

Question

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

Answer

a.relationship pricing.b.price bundling.

c.benefit-driven pricing.d.flat-rate pricing.e.efficiency pricing.

Question The pricing strategy that is a form of relationship pricing is:Answer a.

activity-based costing.

b.price bundling.c.benefit-driven pricing.d.flat-rate pricing.e.

29


efficiency pricing.

30


Question The actual dollar price paid by the consumer for a product is _____ cost.

Answer

a.image

b.monetaryc.energyd.psychice.time

Question

Like many services, the demand for medical care tends to be more ____ in that an increase in price does not greatly affect demand.

Answer

a.inelasticb.elasticc.tangibled.complementarye.sensitive

Question Effective service providers enhance the ____ value of services.

Answer

a.productb.servicec.imaged.time

e.personnel

31


Question

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

Answer

a.fixedb.direct variablec.averaged.marginale.future

Question

Sheila saw the advertised price for carpet cleaning as too low and instead went with a higher-priced competitor. Sheila saw the price as a(n):

Answer

a.signpost.

b.quality cue.c.reservation price.d.dual entitlement.e.adaptive price.

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

a.price discrimination.b.supply and demand.c.aggregrate pricing.d.substitutes.e.

32


complementary.Question Adaptive pricing strategies include all of the following except:

Answer

a.altering the product size.b.using new distribution channels.c.requiring purchase minimums.d.offering two-for-one deals.

e.offering guarantees.

Question

The technique that allows consumers to either buy Service A and Service B together or purchase one service separately is called _____ bundling.

Answer

a.long-termb.relations

c.mixedd.product

e.individual

Question Which pricing strategy encourages the customer to expand his/her dealings with the service provider?

Answer

a.relationship pricingb.efficiency pricing

c.benefit-driven pricingd.flat-rate pricinge.aggregate pricing

33


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Chapter 7Question

The array of communication tools available to marketers including advertising, personal selling, publicity, sales promotions, and sponsorships are called:

Answer

a.the communication mix.b.the communication strategy.c.the impersonal sources.d.face-to-face sources.e.the noncommunication strategy.

Question The role of the firm's communications strategy is to:

Answer

a.remind customers about the firm's goods and services for the purpose of achieving organizational objectives.b.persuade employees for the purpose of achieving organizational objectives.c.inform stockholders regarding the firm's organizational objectives.

d.do all of these.e.do none of these.

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

Answer

a.communication mix.

b.positioning strategy.c.publicity plan.d.public relations position.

35


e.target marketing.

Question

Differentiation approaches such as competence, courtesy, reliability, and responsiveness are forms of _____ differentiation.

Answer

a.product

b.personnelc.imaged.servicee.satisfaction

Question

Differentiation approaches such as delivery, installation, customer training, consulting services, and repair are forms of _____ differentiation.

Answer

a.productb.personnelc.image

d.servicee.satisfaction

Question The appropriate communications content during the introduction stage of the product life cycle is:Answer

a.informational.b.informational and persuasive.c.persuasive.d.persuasive and reminder.e.

36


reminder.

Question Which of the following is NOT a communications objective during the maturity and decline stages of the product life cycle?

Answer

a.Encourage repeat purchases.b.Provide an ongoing contact with customers.

c.Create brand awareness.d.Express gratitude to the existing customer base.e.Confirm past purchase decisions.

Question

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

Answer

a.informational

b.informational and persuasivec.persuasived.persuasive and remindere.reminder

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

Answer a.

publicityb.advertising

c.service providerd.public relations

37


e.sales promotions

Question

Service staff who are required to deal with customers quickly and effectively in "once only" situations where large numbers of customers are present are considered:

Answer

a.type 1 service staff.b.type 2 service staff.c.type 3 service staff.d.type 4 service staff.e.type 5 service staff.

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

Answer


Question A travel agent planning trips for clients would be considered:

Answer

a.type 1 service staff.b.type 2 service staff.

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c.type 3 service staff.d.type 4 service staff.e.type 5 service staff.

Question

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

Answer

a.type 1 service staff.b.type 2 service staff.

c.type 3 service staff.d.type 4 service staff.e.type 5 service staff.

Question Service staff that predominantly fill an operations role are considered:

Answer


Question What is the first step in managing the service communication process?Answer

a.Select target markets.b.

39


Establish communication objectives.c.Set communication budget.d.Formulate positioning strategy.e.Establish the message.

Question Which of the following is NOT a SMART term?

Answer

a.specificb.measurablec.achievabled.relevant

e.transformative

Question

When demand for the service is infrequent and therefore the success of the communication strategy may not be realized until a later point in time, it is called the _____ effect.

Answer

a.halob.SMART

c.laggedd.target.e.sporadic

Question Word-of-mouth communication networks are particularly important for service firms because:

Answera.service customers tend to rely more on personal than nonpersonal sources of information.b.

40


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

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

Answer

a.create an intangible image for the product.b.create awareness for the product.

c.surround it with physical cues and tangible evidence.

d.make sure the product is in the evoked set of alternatives.e.differentiate the service product from service delivery.

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

Answer

a.create an intangible image for the product.b.create awareness for the product.c.surround it with physical cues and tangible evidence.d.make sure the product is in the evoked set of alternatives.e.differentiate the service product from service delivery

Question

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

Answe a.41


r

create an intangible image for the service aspect.b.create awareness for the product.c.surround the physical product with tangible evidence.d.differentiate the service product from service delivery.

e.use both abstract and concrete elements.

Question Which of the following is NOT a recommended guideline for developing service communications?

Answer

a.Tangibilize the intangible.b.Promise what is possible.c.Reduce consumer fears about variation in performance.

d.Make the service more abstract.e.Feature the working relationship between provider and customer.

Question

Prudential's "piece of the rock" is a good example of which of the following guidelines for developing service communications?

Answer

a.Tangibilize the intangible.b.Promise what is possible.c.Reduce consumer fears about variation in performance.d.Make the service more abstract.e.Feature the working relationship between provider and customer.

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

Answer a.

Tangibilize the intangible.

42


b.Develop a word-of-mouth communication's network.

c.Reduce consumer fears about variation in performance.d.Feature the working relationship between provider and customer.e.Encourage repeat purchases.

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

Answer

a.cognitive dissonanceb.environmental stimulusc.visual pathway

d.halo effecte.technical service quality

Question

The ____ refer(s) to printed materials through which the professional image of the firm can be consistently transmitted, including firm brochures, letterhead, envelopes, and business cards.

Answer

a.sales promotionsb.public relations

c.visual pathwayd.publicitye.encoding

Question The written "showpiece" for the firm should be its:Answer a.

43


business cards.

b.brochure.c.newsletter.d.billing materials.e.letterhead.

Question The most important piece of regular communication with clients should be the firm's:

Answer

a.business cards.b.brochure.

c.newsletter.d.billing materials.e.letterhead.

Question Communication cues on which consumers base initial impressions include all of the following except:

Answer

a.the welcome letter.b.the company website.c.advertisements.

d.signage.

e.the firm’s reception area.

44


45


Chapter 8Question Which of the following is NOT a component of a service firm's physical evidence?

Answer

a.parkingb.employee appearancec.billing statementsd.business equipment

e.customer satisfaction

Question All of the following are components of a service firm's physical evidence except:

Answer

a.exterior design.b.landscaping.c.firm brochures.d.signage.

e.employee skill set.

Question Which of the following is NOT a major role of a service firm's physical evidence?

Answer a.socializing employees and customersb.providing a means for differentiation

c.providing a means for customer price comparisonsd.facilitating the flow of the service delivery processe.

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packaging the service

Question One of the advantages of requiring employees to wear uniforms is that it reduces the customer's perception of:

Answer

a.intangibility.b.inseparability.

c.heterogeneity.d.socialization.e.perishability

Question Which of the following is NOT an advantage of requiring employees to wear uniforms?

Answer

a.Uniforms identify the firm's personnel.b.Uniforms help in controlling deviant members.

c.Uniforms provide price expectations to customers.d.Uniforms imply a coherent group structure.e.Uniforms present a physical symbol that embodies the group's ideals and attributes

Question

____ is the study of the use of physical evidence to create service environments and its influence on the perceptions and behaviors of individuals.

Answer

a.Ergonomics

b.Environmental psychologyc.Physicsd.Physical sociologye.Environmental anthropology

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

Answer

a.servuction modelb.scale of market entitiesc.conceptual model of service qualityd.service blueprint

e.stimulus-organism-response

Question The component of the SOR model that describes the recipient of the set of stimuli in the service encounter is:

Answer

a.stimulus receiver.

b.organism.c.organizations.d.responder.e.stimuli receptor.

Question

The emotional state that reflects the degree to which consumers and employees feel in control and able to act freely within the service environment is referred to as:

Answer

a.pleasure-displeasure.b.arousal-nonarousal.c.approach-avoidance.

d.dominance-submissiveness.

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e.cognitive-physiological.

Question

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

Answer

a.a desire to stay.b.a desire to explore and interact.c.a desire to communicate.d.feelings of satisfaction.

e.all of these.

Question

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

Answer

a.inseparability.b.intangibility.c.heterogeneity.d.perishability.e.socialization.

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

Answer a.music

b.signsc.

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scentsd.lightinge.colors

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

Answer

a.a bakery shopb.an air-conditioned hotel on a hot July day

c.an open five-story parking garaged.bookstore with an in-store coffee carte.a movie theater

Question

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

Answer

a.self-serviceb.vertical service

c.remote serviced.saleable servicee.interpersonal service

Question A(n) ____ is the customer's composite of mental images of the service firm's physical facilities.Answer a.

internal response moderator

b.perceived servicescapec.cognitive response

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d.emotional responsee.physiological response

Question Consumers who seek convenience over price and personal attention are:

Answer

a.economic customersb.personalized customers

c.apathetic customersd.ethical customerse.elastic customers

Question Cognitive responses to the firm's servicescape include all of the following except:

Answer

a.beliefs or opinions.b.categorization.c.the inference of symbolic meaning.

d.feelings of contentedness or anxiety.e.beliefs or opinions, and feelings of contentedness or anxiety.

Question The emotional states of pleasure-displeasure, arousal-nonarousal, and dominance-submissiveness are types of:

Answer a.

internal response moderators.

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b.holistic environments.c.individual behaviors.d.social interactions.e.physical environmental dimensions.

Question

Sam enters a new restaurant and finds it dimly lit and nicely furnished with soft music playing in the background. He immediately lowers his voice to a hush and uses his best table manners. This is an example of the cognitive response of:

Answer

a.pleasure.b.peacefulness.c.symbolic meaning.d.beliefs.

e.categorization

Question Consumer moods and attitudes are types of:

Answer

a.physiological customer responses.

b.emotional customer responses.c.individual approach behaviors.d.internal response moderators.e.cognitive customer responses.

Question Consumer feelings of physical pleasure or discomfort are _____ responses.Answer

a.physiological

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b.emotionalc.cognitived.psychice.emotional and psychic

Question Which of the following senses conveys more information than any of the others?

Answer

a.sightb.soundc.scentd.touche.taste

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

Answer

a.harmony, contrast, and clash.

b.size, shape, and color.c.blue, yellow, and green.d.red, blue, and green.e.violet, blue, and red.

Question

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?

Answer

a.

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importantb.powerful

c.personald.successfule.stable

Question Which of the following statements pertaining to colors is false?

Answer

a.Hues are the actual colors such as red, blue, or yellow.

b.Warm colors are perceived as aloof or formal.c.Children appear to favor brighter colors.d.Adults tend to favor softer tones.e.Dark colors make large empty spaces look smaller.

Question Which of the following statements pertaining to the location of the firm is false?

Answer

a.Location decisions should consider the amount of customer involvement necessary to provide the service.b.Low contact firms should consider moving sites that are closer to sources of supply, transportation and labor.

c.The actual location of high-contact services should be as close to the street as possible.d.Parking should be considered when making site selection decisions.e.The firm's facility should be compatible with its surrounding environment.

Questio Which of the following statements regarding background music in a restaurant were found to be true?

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n

Answer

a.Consumers spend more money when fast music is played.b.Customers are served faster when slow music is played.

c.Customers run higher bar bills when slow music is played.d.Gross margins are higher when fast music is played.e.Customers are willing to wait longer for a table when fast music is played.

Question Which of the following combinations are made up of all warm colors?

Answer

a.red, blue, greenb.yellow, blue, violetc.red, yellow, green

d.yellow, red, orangee.orange, blue, green

Question Which of the following colors is associated with coolness, shyness, dignity, and wealth?

Answer

a.red

b.violetc.yellowd.orangee.green

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Question All of the following statements are true except:

Answer

a.combinations of warm and cool colors can create relaxing, yet stimulating atmospheres.

b.rooms painted in lighter colors tend to look smaller.c.lighter hues are popular for fixtures.d.darker hues are used as attention grabbers.e.too much violet may dampen consumer spirits.

Question

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

Answer

a.Response moderatorsb.Scent appeals

c.Warm colorsd.Sound appealse.Taste appeals

Question ____ are favored when the customer needs to take time to make high-involvement decisions.

Answera.Cool colorsb.Scent appealsc.Warm colorsd.Sound appeals

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e.Taste appeals

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Chapter 9Question The two primary roles that boundary-spanning personnel fulfill are:

Answer

a.sales and profit-production.b.sales and customer service.

c.information transfer and representation.d.process flow and service.e.information transfer and profit production.

Question All of the following are boundary-spanners except:

Answer

a.classroom teachers.b.JCPenney customer service representatives.c.hospital nurses.d.Applebee's servers.

e.none of these are exceptions.

Question Which of the following is a type of conflict experienced by boundary-spanning personnel?

Answer

a.precise-duty conflictb.channel conflictc.organization/client conflictd.inter-client conflict

e.organization/client and inter-client

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Question

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

Answer

a.person/role conflictb.channel conflict

c.organization/client conflictd.inter-client conflicte.vertical conflict

Question

When a lawyer feels a conflict between what she is asked to do and her own personality, orientation, or values she is experiencing _____ conflict.

Answer

a.person/roleb.channelc.organization/clientd.inter-cliente.horizontal

Question

Initially, bank tellers were uncomfortable with their new task of selling services to customers. They viewed themselves as bank tellers and not salespersons. This is an example of which type of conflict?

Answer

a.precise-duty conflictb.channel conflictc.organization/client conflictd.inter-client conflict

e.person/role conflict

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Question

A Disney tram driver that is asked to break up a fight between a feuding couple is experiencing which of the following types of conflict?

Answer

a.person/role conflictb.channel conflictc.organization/client conflict

d.inter-client conflicte.horizontal conflict

Question All of the following are behaviors by which service employees attempt to reduce their role stress except:

Answer

a.engaging the customer.b.engaging in a people-processing mode (robotism).c.using physical symbols in their office to regain some sense of control.d.engaging in service sabotage.e.none of these are exceptions.

Question

Service personnel are influenced by their shared perception of the practices, procedures, and kinds of behaviors that get rewarded. That shared perception is referred to as:

Answer

a.empowerment.b.enfranchisement.c.service passion.

d.the climate for service.

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e.production-lining.

Question ____ gives discretion to front-line personnel to meet the needs of consumers creatively.

Answer

a.Empowermentb.Enfranchisementc.Service passiond.Service climatee.Production-lining

Question Empowerment coupled with a performance-based compensation method is referred to as:

Answer

a.double empowerment.b.straight salary.

c.enfranchisement.d.quota systems.e.straight commission.

Question All of the following are benefits associated with empowerment except:

Answer a.

empowered employees are more customer focused and quicker in responding to customer needs. b.empowered employees are more likely to respond in a positive way to service failures and to engage in effective service recovery strategies.

c.empowered front-line employees gain a false sense of power, in turn aiding the customer.d.empowered front-line service employees can be key to new service ideas and a cheaper source of market research than going to the consumer directly.e.empowered employees tend to feel better about their jobs and themselves, which is automatically reflected in the way they

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interact with customers.

Question Which of the following is an example of sensitivity training?

Answer

a.having new bus drivers spend their first week on the help desk instead of the busb.having store employees play roles of service representative and customerc.having hotel employees play roles of check-in clerk and hotel guest

d.presenting stereotypical examples of a customers from hell with suggestions for ways to deal with each typee.having airline employees meet with a counselor on a regular basis

Question Which of the following is NOT a cost associated with empowerment?

Answer

a.higher labor costsb.slower or inconsistent service delivery

c.decreased word-of-mouth advertisingd.excessive giveaways and bad decisionse.a perception of inequitable service treatment among customers

Question

Which of the following types of interpersonal training provides stereotypes with which a service provider can categorize customers?

Answer

a.sensitivity trainingb.role-playing

c.

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behavioral modelingd.red-tapinge.flexibility training

Question

Empowerment approaches fall along a continuum that ranges from control-oriented to involvement-oriented. Which of the following empowerment approaches is the most control-oriented?

Answer

a.job involvement

b.suggestion involvementc.high involvementd.enfranchisemente.contingency involvement

Question

The empowerment approach that utilizes teams and allows employees to use a variety of skills with considerable latitude regarding lower-level decisions is:

Answer

a.job involvement.b.suggestion involvement.c.high involvement.d.production line approach.e.contingency involvement.

Question The empowerment approach in which service employees are trained to manage themselves is called:

Answer a.job involvement.b.suggestion involvement.

c.63


high involvement.d.production-line approach.e.contingency involvement.

Question Which of the following customers needs to be "moved offstage" as quickly as possible?

Answer

a.Egocentric Edgarb.Badmouth Bettyc.Hysterical Haroldd.Dictatorial Dick

e.Badmouth Betty and Hysterical Harold

Question Despite popular beliefs, the "Freeloading Fredas" of the world probably represent only _____ of all customers.

Answer

a.1% to 2%

b.3% to 4%

c.5% to 6%

d.7% to 8%

e.9% to 10%

Question Which of the following is NOT one of the seven tests of reward effectiveness?

Answer

a.availability

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b.flexibilityc.visibilityd.durability

e.perishability

Question

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?

Answer

a.availabilityb.flexibilityc.visibilityd.durability

e.reversibility

Question

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

Answer

a.availabilityb.flexibility

c.timelinessd.durabilitye.perishability

Question

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

Answer a.

availability

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b.flexibilityc.timelinessd.durability

e.contingent

Question

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

Answer

a.availabilityb.flexibilityc.timelinessd.durabilitye.contingent

Question

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

Answer

a.availability

b.flexibilityc.timelinessd.durabilitye.visibility

Question One of the major lessons to learn from the service-profit chain is:

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Answer

a.customer loyalty leads to customer satisfaction.

b.firms must satisfy their employees in order for customer satisfaction to become a consistent reality.c.employee retention leads to employee satisfaction.d.the firm's profitability leads to customer satisfaction.e.revenue growth leads to customer satisfaction.

Question The HR functions that together support the creation of a climate for service is referred to as the:

Answer

a.concept strategy.

b.service HR wheel.c.marketing wheel.d.service operation strategy.e.interdepartmental support.

Question Which of the following is NOT a broad category in the service HR wheel?

Answer

a.concept strategyb.control, reward, and evaluation strategyc.retention strategyd.recruitment strategye.training/development strategy

Question All of the following are roles of middle management except:

Answer a.

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enable the front-line providers to focus on customers and not be distracted.b.manage the crises.c.move the roadblocks to good service out of the way.d.relieve pressure by doing some of the front-line work.

e.invest in technology and ensure foundations are in place that allow the front-line teams to do their work.

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Chapter 12Question ____ is an attitude formed by a long-term, overall evaluation of a firm's performance.

Answer

a.Customer satisfactionb.Negative disconfirmationc.Positive disconfirmation

d.Service qualitye.Customer retention

Question ____ is a short-term, transaction-specific measure.

Answer

a.Customer satisfactionb.Focus group interviewsc.Noncustomer researchd.Service qualitye.Customer retention

Question

All of the following are part of the logic for the position that satisfaction assists consumers in revising service quality perceptions except:

Answer

a.Consumer perceptions of the service quality of a firm with which he or she has no prior experience is based on the consumer’s expectations.b.Subsequent encounters with the firm lead the consumer through the disconfirmation process and revised perceptions of service quality are formed.

c.Once service quality perceptions are fixed, additional encounters with the firm have little bearing.d.Revised service quality perceptions modify future consumer purchase intentions toward the firm.e.The sum of a customer’s satisfaction over time with a single firm equals the customer’s service quality perception.

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Question

The distance between a customer's expectations of a service and the perception of the service actually delivered is called the _____ gap.

Answer

a.serviceb.knowledgec.standardsd.deliverye.communication

Question

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

Answer

a.knowledge gapb.standards gapc.delivery gapd.communications gape.confirmation gap

Question Understanding the customer is a critical step toward minimizing or completely eliminating the _____ gap.

Answer a.

knowledgeb.standardsc.deliveryd.communications

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e.confirmation

Question

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 _____ gap.

Answer

a.knowledgeb.standardsc.deliveryd.communicationse.confirmation

Question

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

Answer

a.knowledgeb.standardsc.deliveryd.communicationse.confirmation

Question

The difference between what management perceives consumers to expect and the quality specifications set for service delivery is called the _____ gap.

Answer

a.knowledge

b.standardsc.delivery

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d.communicationse.service

Question

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

Answer

a.knowledge

b.standardsc.deliveryd.communicationse.confirmation

Question Management's inability to translate what consumers want into a written business plan will increase the size of the _____ gap.

Answer

a.knowledge

b.standardsc.deliveryd.communicationse.confirmation

Question

The difference between the quality standards set for service performance and the actual quality of the service performed is called the _____ gap.

Answer a.

knowledgeb.standards

c.delivery

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Question All of the following are factors influencing the delivery gap except:

Answer

a.research orientation.b.role ambiguity.

c.disperson of control.d.inadequate support.

e.role conflict

Question

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

Answer

a.knowledge gapb.standards gap

c.delivery gapd.communications gape.service gap

Question

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

Answer

a.knowledgeb.standards

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c.deliveryd.communicationse.confirmation

Question

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

Answer

a.knowledgeb.standardsc.delivery


Question When competing firms begin to overpromise in order to top one another, a ____ gap is likely to occur.

Answer

a.knowledgeb.standardsc.delivery


Question Which of the following statements pertaining to the SERVQUAL scale is correct?

Answer a.SERVQUAL compares perceptions to what customers would normally expect.b.SERVQUAL is a 22-item scale.

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c.SERVQUAL consists of four service quality dimensions.

d.SERVQUAL compares perceptions to what a customer should expect from a firm that delivers high-quality services.e.SERVQUAL consists of one in-depth and two sub-sections of questions.

Question Which of the following is NOT one the five dimensions that is measured by the SERVQUAL scale?

Answer

a.tangibles

b.employee satisfactionc.responsivenessd.assurancee.empathy

Question All of the following statements pertaining to the SERVQUAL scale are correct except:

Answer

a.when the gap score equals zero, the customer is satisfied.

b.the first section of questions asks respondents to record their experiences with excellent firms in the specific service industry.c.SERVQUAL consists of five service quality dimensions.d.SERVQUAL compares perceptions to what a customer should expect from a firm the delivers high-quality services.e.SERVQUAL is a 44-item scale.

Question

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

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Answer

a.tangiblesb.employee satisfactionc.responsivenessd.assurancee.reliability

Question

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

Answer

a.tangiblesb.reliabilityc.responsivenessd.assurancee.reliability

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

Answer

a.tangiblesb.empathyc.responsivenessd.assurance

e.reliability

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Question

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

Answer


e.reliability

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

Answer

a.Tangiblesb.Empathy

c.Responsivenessd.Assurancee.Reliability

Question

The SERVQUAL assessment of a firm’s competence, courtesy to its customers, and security of its operations is the ____ dimension.

Answer

a.tangiblesb.employee satisfactionc.responsiveness

d.assurancee.reliability

Questi Excellent companies will have the customer's best interest at heart is a typical statement within the ____ dimension of the

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on SERVQUAL scale.

Answer

a.tangibles

b.empathyc.responsivenessd.assurancee.reliability

Question Which of the following is a major criticism of the SERVQUAL scale?

Answer

a.The questionnaire is too short to adequately assess the dimensions.

b.The five service quality dimensions do not hold up under statistical scrutiny.c.The results do not predict consumer purchase intention.d.The perceptions section is of no real value.e.More emphasis should be placed on the expectations section.

Question _____ examine(s) the customer’s perspective of a firm’s strengths and weaknesses.

Answer

a.Customer researchb.Employee surveyc.Noncustomer researchd.Customer complaintse.Service quality survey

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Question The SERVQUAL dimension that is typically noted as the least important by customers is the ____ dimension.

Answer

a.tangiblesb.empathyc.responsivenessd.assurancee.reliability

Question

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

Answer


e.reliability

Question Which of the following is NOT a component of a service quality information system?

Answer

a.mystery shopping

b.customer retention interviewsc.after-sale surveysd.employee surveyse.total market service quality surveys

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Question

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

Answer

a.solicitation of customer complaints.b.customer focus group interviews.c.employee surveys.

d.mystery shopping.e.total market service quality survey.

Question

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

Answer

a.solicitation of customer complaints.b.customer focus group interviews.c.employee surveys.d.mystery shopping.

e.total market service quality survey.

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

Answera.listeningb.reliabilityc.servant leadershipd.

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individual playe.service design

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