CHAPTER 13

In countries like the United States, services
a. are replacing property taxes as a source of government revenue.
b. will decrease in demand as the population ages.
c. have almost all been replaced by technology.
d. are a small portion of GDP relative to manufacturing.
e. account for an increasing share of jobs.

e. account for an increasing share of jobs.

Monique was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landscaping was not complete, and there was stained carpet in the lobby. Which of the service quality building blocks caused Monique to select an alternative venue?
a. responsiveness
b. tangibles
c. reliability
d. empathy
e. Assurance

b. tangibles

Effective service recovery efforts can lead to all of the following EXCEPT
a. increased dependence on technology to prevent future service failures.
b. increased purchase intentions.
c. increased positive word of mouth.
d. lower levels of satisfaction than prior to the service failures.
e. increased customer satisfaction.

a. increased dependence on technology to prevent future service failures.

Which of the following is NOT one of the five dimensions used by consumers to determine overall service quality?
a. assurance
b. reliability
c. responsiveness
d. acceptability
e. Empathy

d. acceptability

Many product-dominant firms use quality service
a. as a way to increase the perishability of their products.
b. as a way to minimize the cost of production.
c. to install a voice of the customer program.
d. to support a standards gap.
e. to maintain a sustainable competitive advantage.

e. to maintain a sustainable competitive advantage.

When corporate headquarters announced new service quality standards for pizza franchise owners, Roland knew he would have trouble gaining employees’ support because
a. they were not allowed to diverge from existing standards.
b. customers were required to create service quality standards.
c. the process involved both part-time and full-time employees.
d. perishable services were being replaced with tangible services.
e. they were not involved in setting the goals

e. they were not involved in setting the goals

Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers’ responses to new products and services. Bank of America is using a __________ program to improve service quality and service offerings.
a. zone of tolerance
b. empowerment
c. standards analysis
d. quality gap analysis
e. Voice-of-customer

e. voice-of-customer

When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time.
a. intangible
b. inseparable
c. perishable
d. variable
e. Peripheral

b. inseparable

Saltdust Grill is known as the premier restaurant in town. With their elegant dining area, extensive wine list, and gourmet chef, residents and tourists flock to the restaurant. Recently, Trey took a large group to the Saltdust Grill and almost every diner sent their entrée back to the kitchen. The Saltdust Grill was experiencing a __________ gap in service quality.
a. empowerment
b. communication
c. delivery
d. knowledge
e. Standards

c. delivery

Customers have a defined __________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers are willing to wait varies with the type of store.
a. tangibles gap
b. quality gap
c. voice-of-customer quotient
d. empowerment standard
e. zone of tolerance

e. zone of tolerance

Which service gap is the Ritz-Carlton Hotel trying to address when it takes time and spends up to $1,700 to train a new employee?
a. standards gap
b. performance gap
c. knowledge gap
d. recovery gap
e. communication gap

a. standards gap

If there is a difference between the firm’s perceptions of customers’ expectations and the service standards the firm has set, a __________ gap exists.
a. delivery
b. knowledge
c. communication
d. seniority
e. standards

e. standards

Randall arrived at the hotel to find that, although he had a guaranteed reservation, the hotel had no rooms available. He became angry when the hotel made him a reservation at a more expensive hotel but refused to pay the difference in room rates. Randall was upset because, in his opinion, the hotel’s solution did not incorporate
a. service fairness.
b. empowerment fairness.
c. intangible fairness.
d. procedural fairness.
e. distributive fairness

e. distributive fairness

For many professionals offering intangible services, an ethical marketing dilemma exists. The dilemma centers on
a. when to advertise versus when to use personal selling.
b. which images create a better impression on consumers.
c. which media are appropriate for promoting intangible services.
d. how to gain clients while retaining an image of professionalism and integrity.
e. who should be the spokesperson for professionals offering intangible services.

d. how to gain clients while retaining an image of professionalism and integrity.

When __________ are authorized to make decisions to help their customers, service quality generally improves.
a. middle managers
b. consultants
c. corporate executives
d. frontline employees
e. production control managers

d. frontline employees

What is the problem associated with service quality standards such as "be nice" or "do what the customers want"?
a. Most employees are unwilling to do what customers want.
b. They create a delivery gap.
c. They do not allow for the voice-of-customer process.
d. They are not specific.
e. They create low expectations.

b. They create a delivery gap.

Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of
a. instrumental support.
b. line extensions.
c. emotional support.
d. the delivery gap.
e. employee incentives.

. instrumental support.

The __________ gap can be reduced by managing consumers’ expectations.
a. empowerment
b. delivery
c. knowledge
d. standards
e. communication

e. communication

Colin has been directed by his boss to determine whether their company is meeting customers’ service quality expectations. One of Colin’s problems is that services are __________, making evaluation of service quality difficult.
a. intangible
b. quantifiable
c. inconsequential to customers
d. substantial
e. unequally distributed

a. intangible

When choosing where to eat lunch, Veronica’s major service criterion is speed: being seated promptly and served her meal quickly. For Veronica, __________ is the most important of the five service quality dimensions.
a. assurance
b. tangibles
c. responsiveness
d. reliability
e. Empathy

c. responsiveness

The new hotel manager asked the chef, "Are you sure you know how to cook a beef Wellington?" Which of the service dimensions was the hotel manager expressing concern about?
a. assurance
b. responsiveness
c. reliability
d. empathy
e. Tangibles

c. reliability

If there is a difference between the actual service provided to customers and the service the firm has promoted, a __________ gap exists.
a. communication
b. knowledge
c. seniority
d. delivery
e. Standards

a. communication

The old restaurant saying, "You are only as good as the last meal served," reflects the fact that services are
a. variable.
b. inseparable.
c. intangible.
d. viable.
e. Portable.

a. variable.

Students regularly seek out Professor Guillory to advise them. She has an exceptional manner, and students are confident in her and trust her advice. For these students, __________ is the most important of the five service quality dimensions.

a. empathy
b. responsiveness
c. tangibles
d. reliability
e. assurance

e. assurance

In countries like the United States, services
Select one:
a. will decrease in demand as the population ages.
b. are a small portion of GDP relative to manufacturing.
c. are replacing property taxes as a source of government revenue.
d. have almost all been replaced by technology.
e. account for an increasing share of jobs.

e. account for an increasing share of jobs.

Most customers want to achieve a fair solution following a service failure. Which of the following is NOT a factor that affects a person’s perceptions of fairness in these kinds of situations?
Select one:
a. The customer’s experience with other firms.
b. Observed treatment of other customers.
c. Stories of service recovery told by friends and family.
d. The nature or severity of the service failure.
e. The firm’s policy on service recovery.

e. The firm’s policy on service recovery.

Physicians regularly overstate the expected recovery time from surgery, knowing that managing patients’ expectations will reduce the __________ gap associated with their service.
Select one:
a. communication
b. delivery
c. knowledge
d. standards
e. empowerment

a. communication

Food preparation, lawn maintenance, and house cleaning services are all examples of
Select one:
a. the price elasticity effect on services demand.
b. the ability of empowerment to create tangible service products.
c. services an aging population will decrease their demand for.
d. household maintenance activities that people increasingly pay others to perform.
e. services shifted abroad because costs are lower in developing countries.

d. household maintenance activities that people increasingly pay others to perform.

Yolanda manages a Best Sleep Inn along an interstate highway. She knows from experience that five to ten last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Yolanda has empowered her staff to offer discounts when the motel is largely vacant and to quote the standard price when the motel is close to full. She knows her service is __________, meaning that if no one stays in the room, it generates no revenue that evening.
Select one:
a. durable
b. perishable
c. intangible
d. inseparable
e. variable

b. perishable

Many product-dominant firms use quality service
Select one:
a. to install a voice of the customer program.
b. to support a standards gap.
c. to maintain a sustainable competitive advantage.
d. as a way to minimize the cost of production.
e. as a way to increase the perishability of their products.

c. to maintain a sustainable competitive advantage.

In countries like the United States, services
Select one:
a. account for an increasing share of jobs.
b. are a small portion of GDP relative to manufacturing.
c. will decrease in demand as the population ages.
d. are replacing property taxes as a source of government revenue.
e. have almost all been replaced by technology.

a. account for an increasing share of jobs.

Kayla is the new manager of a resort hotel. She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers’ expectations, and she believes that the biggest problem is that her employees are not sure what is expected of them. To improve service quality, Kayla will
Select one:
a. narrowly define a knowledge gap.
b. empower customers to meet their own service needs.
c. establish a broad zone of intolerance to reduce customer complaints.
d. set specific, measurable goals based on customers’ expectations.
e. separate intangibles from tangibles.

d. set specific, measurable goals based on customers’ expectations.

Sean moved to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn’t like the one he had chosen, and he knew he’d never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as
Select one:
a. intangibility.
b. professional competence.
c. variability.
d. inseparability.
e. perishability.

d. inseparability.

Medical services, assisted living care, and active senior travel are all examples of
Select one:
a. household maintenance activities that people increasingly pay others to perform.
b. the ability of empowerment to create tangible service products.
c. services an aging population will increase their demand for.
d. services shifted abroad because costs are lower in developing countries.
e. the price elasticity effect on services demand.

c. services an aging population will increase their demand for.

Firms can close the __________ gap by matching customer expectations with actual service through use of marketing metrics.
Select one:
a. knowledge
b. seniority
c. delivery
d. standards
e. communication

a. knowledge

By setting appropriate service standards and measuring service performance, firms can attempt to close a __________ gap.
Select one:
a. standards
b. seniority
c. communication
d. knowledge
e. delivery

a. standards

A __________ gap is the difference between the firm’s service standards and the service it provides to customers.
Select one:
a. communication
b. knowledge
c. delivery
d. seniority
e. standards

c. delivery

Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers’ __________, the difference between what her customers want and what they will accept before going elsewhere.
Select one:
a. zone of tolerance
b. tangibles gap
c. empowerment standard
d. voice-of-customer quotient
e. quality gap

a. zone of tolerance

The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services.
Select one:
a. perishability gap analysis
b. zone of tolerance allowances
c. point-of-purchase displays
d. promotional discounts
e. satisfaction guarantees

e. satisfaction guarantees

For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a __________ gap in services marketing.
Select one:
a. knowledge
b. communication
c. seniority
d. standards
e. delivery

a. knowledge

A __________ gap exists when a firm knows what it needs to do to meet customers’ service expectations but sometimes fails to do it.
Select one:
a. empowerment
b. delivery
c. communication
d. knowledge
e. standards

b. delivery

A __________ gap can be closed by getting employees to meet or exceed service standards.
Select one:
a. communication
b. knowledge
c. seniority
d. delivery
e. standards

d. delivery

One afternoon, the clerk at the customer service desk of a large retail store got bored and started stating different return policies to each customer. Customers waiting in line and overhearing the different policies would probably feel that the store’s handling of returns lacked
Select one:
a. explanatory fairness.
b. variability.
c. organizational fairness.
d. procedural fairness.
e. intangibility.

d. procedural fairness.

If there is a difference between the firm’s perceptions of customers’ expectations and the service standards the firm has set, a __________ gap exists.
Select one:
a. delivery
b. knowledge
c. seniority
d. standards
e. communication

d. standards

When __________ are authorized to make decisions to help their customers, service quality generally improves.
Select one:
a. frontline employees
b. middle managers
c. production control managers
d. consultants
e. corporate executives

a. frontline employees

Training service providers to know exactly what a good job entails is setting service
Select one:
a. delivery.
b. knowledge.
c. standards.
d. empowerment.
e. quality.

c. standards.

Colin has been directed by his boss to determine whether their company is meeting customers’ service quality expectations. One of Colin’s problems is that services are __________, making evaluation of service quality difficult.
Select one:
a. intangible
b. inconsequential to customers
c. substantial
d. unequally distributed
e. quantifiable

a. intangible

Kayla is the new manager of a resort hotel. She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers’ expectations, and she believes that the biggest problem is that her employees are not sure what is expected of them. To improve service quality, Kayla will
Select one:
a. empower customers to meet their own service needs.
b. establish a broad zone of intolerance to reduce customer complaints.
c. narrowly define a knowledge gap.
d. separate intangibles from tangibles.
e. set specific, measurable goals based on customers’ expectations.

e. set specific, measurable goals based on customers’ expectations.

When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time.
Select one:
a. variable
b. intangible
c. inseparable
d. peripheral
e. perishable Incorrect

c. inseparable

Because of __________, many companies have altered their "no questions asked" return policies to include time limits, restocking fees, and store-credit-only refunds.
Select one:
a. high costs
b. accounting concerns Incorrect
c. Better Business Bureau guidelines
d. well-publicized liability cases
e. government regulations

a. high costs

Which of the following is NOT a recommended strategy for service recovery?
Select one:
a. listening to the customer
b. finding a fair solution
c. resolving problems quickly
d. following procedural fairness when solving problems
e. silencing an irate customer before the individual makes any angry outbursts

e. silencing an irate customer before the individual makes any angry outbursts

Rob was complaining to another member of the lawn crew, "I don’t know how they expect me to do an adequate job. The mower doesn’t work right, the trimmers are so dull they don’t cut anything, and the rest of the equipment is so old we can’t get parts." Rob’s company lacks the __________ workers need to be able to do a good job.
Select one:
a. service infrastructure
b. equipment inventory
c. customer expectation mechanisms
d. maintenance schedule
e. instrumental support

e. instrumental support

Sean moved to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn’t like the one he had chosen, and he knew he’d never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as
Select one:
a. inseparability.
b. variability.
c. perishability.
d. professional competence.
e. intangibility. Incorrect

a. inseparability.

Which service gap is the Ritz-Carlton Hotel trying to address when it takes time and spends up to $1,700 to train a new employee?
Select one:
a. standards gap
b. communication gap
c. knowledge gap
d. performance gap
e. recovery gap

a. standards gap

A __________ gap can be closed by getting employees to meet or exceed service standards.
Select one:
a. standards
b. knowledge
c. seniority
d. communication
e. delivery

e. delivery

When marketers state that services are __________, they are referring to the fact that services cannot be stored for use in the future.
Select one:
a. intangible
b. perishable
c. inseparable
d. durable
e. variable

b. perishable

When Jaime arrived at her hotel room and saw that the bed sheets had not been changed from the last hotel guest and there were cockroaches in the bathroom, she chose to go elsewhere. An undone, bug-infested room was not in Jaime’s __________, which is the difference between what she really wants and what she will accept before looking for another hotel.
Select one:
a. delivery gap
b. service gap
c. patience zone
d. zone of intolerance
e. zone of tolerance

e. zone of tolerance

Services marketing managers have learned that more employees will support a quality-oriented process if
Select one:
a. they are involved in setting the goals.
b. they are required to diverge from existing standards.
c. the process involves both part-time and full-time employees.
d. customers are responsible for setting service quality standards.
e. perishable services are replaced with tangible services.

a. they are involved in setting the goals.

Which of the following is NOT one of the five dimensions used by consumers to determine overall service quality?
Select one:
a. reliability
b. acceptability
c. assurance
d. empathy
e. responsiveness

b. acceptability

The old restaurant saying, "You are only as good as the last meal served," reflects the fact that services are
Select one:
a. intangible.
b. variable.
c. viable.
d. inseparable.
e. portable.

b. variable.

A __________ gap is the difference between the firm’s service standards and the service it provides to customers.
Select one:
a. standards
b. seniority
c. delivery
d. knowledge
e. communication

c. delivery

Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers’ __________, the difference between what her customers want and what they will accept before going elsewhere.
Select one:
a. zone of tolerance
b. voice-of-customer quotient
c. tangibles gap
d. empowerment standard
e. quality gap

a. zone of tolerance

For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a __________ gap in services marketing.
Select one:
a. standards
b. knowledge
c. seniority
d. delivery
e. communication

b. knowledge

When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another.
Select one:
a. inseparable
b. perishable
c. intangible Incorrect
d. viable
e. heterogeneous

e. heterogeneous

When confronted with an angry and emotional customer, the best first step toward service recovery is to
Select one:
a. gently but firmly tell the person you will not tolerate being addressed in that tone of voice and turn away until he or she calms down.
b. match the person’s voice in intensity and volume to gain control of the confrontation.
c. ask a coworker to take over handling the complaint to get a neutral perspective.
d. call security in case it is necessary to escort the person from the building.
e. listen carefully and with empathy until the customer feels he or she has been heard.

e. listen carefully and with empathy until the customer feels he or she has been heard.

One of the reasons service failures need to be addressed quickly is to
Select one:
a. minimize the zone of tolerance.
b. avoid negative word-of-mouth from upset customers.
c. avoid a situational ethics conflict.
d. keep management from finding out what happened.
e. increase empowerment zones.

b. avoid negative word-of-mouth from upset customers.

Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers’ __________, the difference between what her customers want and what they will accept before going elsewhere.
Select one:
a. quality gap
b. empowerment standard
c. zone of tolerance
d. tangibles gap
e. voice-of-customer quotient

c. zone of tolerance

For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a __________ gap in services marketing.
Select one:
a. communication
b. seniority
c. delivery
d. knowledge
e. standards

d. knowledge

Colin has been directed by his boss to determine whether their company is meeting customers’ service quality expectations. One of Colin’s problems is that services are __________, making evaluation of service quality difficult.
Select one:
a. intangible
b. substantial
c. inconsequential to customers
d. quantifiable
e. unequally distributed

a. intangible

The Gaps model is designed to highlight those areas where
Select one:
a. service providers know more than their customers.
b. delivered service exceeds expected service.
c. manufacturers are cutting corners on product quality. Incorrect
d. customers believe they are getting less or poorer service than they should.
e. service providers provide the best possible service.

d. customers believe they are getting less or poorer service than they should.

Saltdust Grill is known as the premier restaurant in town. With their elegant dining area, extensive wine list, and gourmet chef, residents and tourists flock to the restaurant. Recently, Trey took a large group to the Saltdust Grill and almost every diner sent their entrée back to the kitchen. The Saltdust Grill was experiencing aNo __________ gap in service quality.
Select one:
a. communication
b. delivery
c. empowerment
d. knowledge
e. standards

b. delivery

If there is a difference between the firm’s perceptions of customers’ expectations and the service standards the firm has set, a __________ gap exists.
Select one:
a. seniority
b. communication
c. knowledge
d. delivery
e. standards

e. standards

Effective service recovery entails all of the following EXCEPT
Select one:
a. listening to the customer.
b. estimating the damage.
c. all of these are effective service recovery techniques. Incorrect
d. resolving the problem quickly.
e. providing a fair solution.

b. estimating the damage.