mark ch. 13

1. Firms that primarily sell products view service as a method to maintain a sustainable competitive advantage.

TRUE Services play a role in almost every firm's strategy, even those that primarily sell products.

2. The marketing of services differs from the marketing of products because services are tangible and separable from the service provider.

FALSE Products are tangible and separable; services are not.

3. Many services marketers use training and standardization to reduce service perishability.

FALSE Perishability refers to the fact that services cannot be produced in advance and stored for use in the future. It is often addressed by offering discounts designed to shift demand to less busy periods.

4. The Gaps model allows systematic examination of all aspects of the product creation process.

FALSE The Gaps model allows systematic examination of all aspects of the service delivery process.

5. A delivery gap is the difference between the firm's service standards and the actual service it provides to customers.

TRUE The Gaps model allows systematic examination of all aspects of the service delivery process. The delivery gap represents the difference between the service standards and the actual service delivered.

6. One use of marketing research is to provide an effective means to understand consumers' service expectations and their perceptions of service quality.

TRUE Customer expectations for service, and the ways in which they perceive and evaluate service quality, must both be understood to design and deliver service as desired by customers. Marketing research is a useful tool for better understanding of customers' views.

7. When Buffalo Bank required all customers to use its online banking services, over 20 percent of their customers closed their accounts. In this scenario, Buffalo Bank's service fell outside customers' zone of tolerance.

TRUE The zone of tolerance is a range between customers' desired levels of service and the minimum they are willing to accept. The fact that so many customers closed their accounts suggests that Buffalo Bank no longer offered service falling within most customers' zones of tolerance.

8. In training service providers, service quality goals should be general to allow for the various needs of consumers.

FALSE Service quality goals should be specific to deliver service that consistently meets customers' expectations.

9. The knowledge gap is where the rubber meets the road, where the customer directly interacts with the service provider.

FALSE This is the delivery gap, not the knowledge gap.

10. In the marketing of services, empowerment means allowing employees to make decisions about how service is provided to customers.

TRUE Empowerment is especially important when service is more individualized.

11. The communications gap can be reduced by managing customer expectations.

TRUE The communications gap refers to the difference between service promises and customer perceptions of delivered service. Setting unrealistic customer expectations is one common cause of a large communications gap.

12. Procedural fairness pertains to a customer's perception of the benefits received compared to the costs of the inconvenience or loss.

FALSE This is a definition of distributive fairness. Procedural fairness refers to the customer's perception of the fairness of the process used to arrive at an outcome.

13. All products and services are intangible.

FALSE Intangible items cannot be touched, tasted, or seen; this describes services but not products.

14. The building blocks of service quality are reliability, responsiveness, assurance, empathy, and tangibles.

TRUE This is correct. Customers generally use five distinct service dimensions to determine overall service quality: reliability, responsiveness, assurance, empathy, and tangibles.

15. The zone of tolerance refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service.

TRUE This is true because this is the definition of zone of tolerance.

16. Listening to the customer is the first step in service recovery.

TRUE The three key service recovery strategies are listening to the customer, finding a fair solution, and resolving problems quickly.

17. Hilton Hotels trains its front desk employees to dress neatly and conservatively to project a professional image. This relates to the service dimension of tangibles.

TRUE The category of tangibles includes the appearance of facilities, equipment, personnel, and communication materials.

18. Latosha was employee of the month at Jersey Mike's Subs, primarily because she provided excellent customer service by serving food quickly. This relates to the reliability service dimension.

FALSE Helping customers and providing prompt service relates to responsiveness.

19. When managers understand what their service providers are facing on a day-to-day basis by directly observing them and talking to customers, it is called "management by walking around."

TRUE "Management by walking around" involves knowing what the service providers are facing on a day-to-day basis and talking directly to the customers with whom those service providers interact.

20. A delivery gap always results in a service failure.

TRUE This is true, delivery gaps mean that service was not provided in an acceptable manner.

21. Sometimes, all that needs to be done to satisfy a customer complaint is to listen to the customer.

TRUE In many cases, the customer may just want to be heard, and the service provider should give the customer all the time he or she needs to get it out.

22. A service is any intangible offering that involves a deed, performance, or effort that

A. cannot be physically possessed.

B. is high-priced.

C. is supported solely through advertising.

D. can be transformed into a physical product.

E. offers benefits but not costs.

A. cannot be physically possessed. Services are intangible—they cannot be physically touched or possessed, as a pure product can.

23. By providing good customer service, firms __________ their products or services.

A. eliminate the communication gap for

B. add value to

C. reduce the zone of tolerance for

D. reduce the empowerment cost associated with

E. increase the perishability of

B. add value to Customer service can add value to almost any product or service offered to consumers.

24. Along the service-product continuum, which of the following would be considered the most service dominant?

A. grocery store

B. apparel specialty store

C. doctor

D. bookstore

E. restaurant

C. doctor All the businesses on the list except the doctor's office involve some tangible component—groceries, clothing, books, and food. In the doctor's office, the only tangible elements delivered are things such as samples of drugs, X-rays, and prescription slips (and even those are often submitted electronically).

25. Along the service-product continuum, which of the following would be considered the most product dominant?

A. grocery store

B. auto repair shop

C. doctor's office

D. cell phone service provider

E. restaurant

A. grocery store A grocery store's services involve service at the fish counter, the deli, the checkout, etc., but the grocery store tends to offer less service and more products (the groceries themselves) than do the other options.

26. Many product-dominant firms use quality service

A. as a way to minimize the cost of production.

B. to support a standards gap.

C. as a way to increase the perishability of their products.

D. to install a voice of the customer program.

E. to maintain a sustainable competitive advantage.

E. to maintain a sustainable competitive advantage. Customer service can add value to almost any product or service offered to consumers. This added value can create a sustainable competitive advantage.

27. In countries like the United States, services

A. have almost all been replaced by technology.

B. are a small portion of GDP relative to manufacturing.

C. are replacing property taxes as a source of government revenue.

D. will decrease in demand as the population ages.

E. account for an increasing share of jobs.

E. account for an increasing share of jobs. The economies of many developed countries are heavily dependent on services. Services account for about 76 percent of the U.S. gross domestic product.

28. Food preparation, lawn maintenance, and house cleaning services are all examples of

A. services shifted abroad because costs are lower in developing countries.

B. services an aging population will decrease their demand for.

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

D. the price elasticity effect on services demand.

E. the ability of empowerment to create tangible service products.

C. household maintenance activities that people increasingly pay others to perform. As people's lives become busier, there is an increasing trend to pay others to perform basic household maintenance tasks.

29. Medical services, assisted living care, and active senior travel are all examples of

A. services shifted abroad because costs are lower in developing countries.

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

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

D. the price elasticity effect on services demand.

E. the ability of empowerment to create tangible service products.

B. services an aging population will increase their demand for. As the U.S. population ages with the baby boom entering its senior years, these services are expected to be increasingly in demand.

30. The marketing of services differs from product marketing because services are all of these EXCEPT

A. intangible.

B. inseparable.

C. variable.

D. renewable.

E. perishable.

D. renewable. All of these are differences between products and services, except for the quality of being renewable.

31. When marketers say that services are __________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can.

A. intangible

B. inseparable

C. variable

D. perishable

E. replenishable

A. intangible Intangibility refers to the fact that, unlike products, services cannot be touched, tasted, seen, or possessed.

32. Because services are __________, it is often difficult for marketers to convey the benefits to consumers.

A. variable

B. inseparable

C. intangible

D. perishable

E. substantial

C. intangible Intangibility refers to the fact that, unlike products, services cannot be touched, tasted, seen, or possessed. This often makes it more difficult to make the benefits clear to consumers.

33. 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 media are appropriate for promoting intangible services.

C. which images create a better impression on consumers.

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. Lawyers and doctors are two examples of professionals who wish to promote their services, yet do not want to lose their professional image in doing so. Professional services-related organizations like the American Bar Association often publish ethical guidelines for advertising and promotion.

34. 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. variable

D. perishable

E. peripheral

B. inseparable Unlike products, services cannot be produced at one time and consumed later; the two happen at the same time. This is referred to as inseparability.

35. 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.

A. promotional discounts

B. zone of tolerance allowances

C. perishability gap analysis

D. point-of-purchase displays

E. satisfaction guarantees

E. satisfaction guarantees Inseparability refers to the fact that services are produced and consumed at the same time. This makes trial in advance of purchase difficult and often impossible. One solution is to offer satisfaction guarantees to minimize the risk of an initial purchase.

36. 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

A. intangibility.

B. professional competence.

C. perishability.

D. inseparability.

E. variability.

D. inseparability. Because medical services are inseparable, the doctor's service was produced at the time of the visit, and Sean did not have the option of trying out different doctors before choosing the one to treat him. He therefore only learned that he didn't like the doctor when he was treated.

37. Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. The employees—when she could find them—rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. The store had found a technological solution to the services marketing issue of

A. intangibility.

B. part-time employees.

C. perishability.

D. inseparability.

E. variability.

E. variability. Martha has been experiencing problems with service variability—the employees are not consistently able to assist her. The kiosks provide a solution by offering comprehensive store information.

38. 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.

A. intangible

B. inseparable

C. heterogeneous

D. perishable

E. viable

C. heterogeneous Heterogeneity refers to the problem that services tend to vary by time, location, or the person providing the service. The human element is primarily responsible for this variation.

39. The old restaurant saying, "You are only as good as the last meal served," reflects the fact that services are

A. intangible.

B. inseparable.

C. variable.

D. portable.

E. viable.

C. variable. This saying refers to the variability of services—the fact that they tend to vary by time, location, or service provider.

40. Marketers can take advantage of the variable nature of services by

A. merging services with products.

B. customizing services to meet customers' needs.

C. offering to expedite intangibles.

D. expanding the standards gap.

E. strict standardization.

B. customizing services to meet customers' needs. The positive side of service variability is that it offers a chance to customize delivery. The reason "strict standardization" is not the right answer is because this is a method used to reduce variability, not to take advantage of it.

41. One approach marketers are using to reduce service __________ is to replace people with machines whenever appropriate.

A. intangibility

B. inseparability

C. spendability

D. perishability

E. variability

E. variability By replacing people with technology, service delivery tends to become more standardized, which reduces variability of delivery. Of course, this assumes that the machines don't break down!

42. David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) ________ gap.

A. knowledge

B. standards

C. ethics

D. delivery

E. communications

A. knowledge David thinks he knows what his customers expect, but the marketing research suggests something different. A knowledge gap refers to the difference between customer expectations and the firm's understanding of these expectations.

43. The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a

A. knowledge gap.

B. standards gap.

C. social expectations gap.

D. delivery gap.

E. communications gap.

D. delivery gap. Marielle's has standards in place to offer fast service, and this is what its customers expect, so we are not dealing with a knowledge or standards gap. And on most days, this promise is kept, so we are not dealing with a communication gap. But on this particular day, service does not match the standards. This is a delivery gap.

44. When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a

A. knowledge gap.

B. standards gap.

C. social expectations gap.

D. delivery gap.

E. communications gap.

E. communications gap. A communication gap is a discrepancy between customer perceptions of delivered service and the promises made by the firm.

45. When marketers state that services are __________, they are referring to the fact that services cannot be stored for use in the future.

A. intangible

B. inseparable

C. variable

D. durable

E. perishable

E. perishable Perishability refers to the fact that services cannot be produced in advance and stored until they are needed. This can make matching of demand and supply difficult.

46. Because services like airline flights and hotel beds are _________, many marketers attempt to match demand with supply using pricing strategies.

A. intangible

B. inseparable

C. variable

D. perishable

E. accountable

D. perishable Perishability refers to the fact that services cannot be produced in advance and stored until they are needed. This can make matching of demand and supply difficult. Airlines offer discount tickets at less popular flying times, and hotels offer cheaper rooms at times when they are less busy.

47. 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.

A. intangible

B. inseparable

C. variable

D. durable

E. perishable

E. perishable Perishability refers to the fact that services cannot be produced in advance and stored until they are needed. This can make matching of demand and supply difficult. It makes sense to offer rooms at a discount when the hotel is relatively empty because a smaller payment for use of the room is better than having the room sit empty with no payment.

48. Because services like cruises and car rentals are perishable, many marketers use

A. pricing strategies to match supply with demand.

B. service quality to extend the life of the product.

C. incentives to encourage staff to deliver according to standards.

D. training to standardize delivery.

E. machines to replace people for standard transactions.

A. pricing strategies to match supply with demand. Perishability refers to the fact that services cannot be produced in advance and stored until they are needed. This can make matching of demand and supply difficult. Cruise lines will offer last-minute discounts for cruises with available capacity.

49. The Gaps model is designed to highlight those areas where

A. service providers provide the best possible service.

B. manufacturers are cutting corners on product quality.

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

D. service providers know more than their customers.

E. delivered service exceeds expected service.

C. customers believe they are getting less or poorer service than they should. The Gaps model indicates areas where problems can arise leading to customers getting lower-quality service than they expect.

50. When the delivery of a service fails to meet customers' expectations, a __________ gap exists.

A. service

B. knowledge

C. standards

D. production

E. communication

A. service The Gaps model identifies four service gaps: the knowledge, standards, delivery, and communication gaps. In any given situation, one or more of these service gaps may be causing deficiencies in delivered service.

51. A __________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

B. knowledge This is the definition of a knowledge gap.

52. Firms can close the __________ gap by matching customer expectations with actual service through use of marketing metrics.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

B. knowledge The knowledge gap represents the difference between customer expectations and management's understanding of those expectations. Marketing research is one useful technique for closing this gap.

53. A __________ gap is the difference between the firm's service standards and the service it provides to customers.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

D. delivery Due to the human element, there is almost always variability in service delivery, in which service sometimes fails to meet the firm's standards. This is the delivery gap.

54. A __________ gap can be closed by getting employees to meet or exceed service standards.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

D. delivery Due to the human element, there is almost always variability in service delivery, in which service sometimes fails to meet the firm's standards. This is the delivery gap. One way to close the gap is to offer incentives to encourage employees to meet or exceed the standards.

55. 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. seniority

B. knowledge

C. standards

D. delivery

E. communication

C. standards A lack of care in setting specific service standards can lead to a standards gap, a discrepancy between the firm's perceptions of customer expectations and the standards it sets for performance.

56. By setting appropriate service standards and measuring service performance, firms can attempt to close a __________ gap.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

C. standards A lack of care in setting specific service standards can lead to a standards gap, a discrepancy between the firm's perceptions of customer expectations and the standards it sets for performance. By setting appropriate standards and measuring performance to find out whether standards are being met, this gap can be closed.

57. If there is a difference between the actual service provided to customers and the service the firm has promoted, a __________ gap exists.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

E. communication A communication gap exists if the firm does not keep its service promises.

58. Firms can close a __________ gap by being more realistic about the services they can provide and managing customer expectations.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

E. communication A communication gap exists if the firm does not keep its service promises. By making realistic promises that set customer expectations appropriately, this gap can be closed.

59. 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.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

B. knowledge The Mogul Sheraton believed that customers wanted elephant and camel rides, but in reality customers were evidently not interested in the service. This misunderstanding of customer expectations is an example of a knowledge gap.

60. Jackson manages an upscale French restaurant in the Washington, D.C. area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his waiters and waitresses to report comments and requests for items that have previously only been offered as specials. Jackson uses this information to reduce the __________ gap in services marketing.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

B. knowledge By collecting information about special requests, Jackson seeks to learn more about his customers' expectations. This should help to close the knowledge gap.

61. To meet or exceed customers' expectations, marketers must

A. know where customers live.

B. know how often consumers buy their products.

C. determine what those expectations are.

D. recognize that expectations are tangible.

E. empower customers to meet their own expectations.

C. determine what those expectations are. The most important thing a marketer needs to meet or exceed expectations is an accurate sense of what those expectations are; otherwise, the firm is reduced to guessing and hoping for the best.

62. 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. quantifiable

B. substantial

C. unequally distributed

D. intangible

E. inconsequential to customers

D. intangible The intangibility of services makes it difficult for consumers to evaluate them, and for that reason it is difficult for them to articulate their views when service quality is measured.

63. Which of the following is NOT one of the five dimensions used by consumers to determine overall service quality?

A. assurance

B. reliability

C. acceptability

D. responsiveness

E. empathy

C. acceptability The five dimensions of service quality are reliability, assurance, responsiveness, empathy, and tangibles.

64. Cheryl will only let Martiné cut her hair. She has tried other hairdressers, but she knows from experience that Martiné cuts her hair well every time. For Cheryl, __________ is the most important of the five service quality dimensions.

A. assurance

B. reliability

C. tangibles

D. responsiveness

E. empathy

B. reliability Martiné cuts Cheryl's hair right every time. She might have other weaknesses—perhaps she is rude, or always runs behind schedule, or perhaps she doesn't do a good job of keeping her station neat, but she gives good haircuts. Reliability is the service quality dimension that refers to doing the job correctly.

65. 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. assurance

B. reliability

C. tangibles

D. responsiveness

E. empathy

A. assurance Assurance is the dimension of service quality that refers to inspiring trust and confidence in others, which is Professor Guillory's strength. Note that the question doesn't actually say that her advice is always good (which would refer to reliability), but rather that students believe that her advice is good.

66. Gerald's Tire Service provides each employee with a clean, sharp-looking uniform. It also instructs employees to put all tools back where they belong and keep the work area clean and uncluttered. Gerald's Tire Service emphasizes __________ in the five service quality dimensions.

A. assurance

B. reliability

C. tangibles

D. responsiveness

E. empathy

C. tangibles Gerald is focusing on tangibles, which are the factors that can be seen, touched, or owned—in this case, uniforms and the cleanliness of the work area.

67. Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call

A. service perceptions.

B. service efforts.

C. service quality.

D. service aspirations.

E. service feedback.

C. service quality. Service quality is the customer's perception of how well delivered service meets expectations.

68. A systematic ____________ program collects customer inputs and integrates them into managerial decisions.

A. quality gap analysis

B. empowerment

C. zone of tolerance

D. standards analysis

E. voice-of-customer

E. voice-of-customer A voice-of-customer program seeks to incorporate customer input into management decision making in a systematic way.

69. 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(n) __________ program to improve service quality and service offerings.

A. quality gap analysis

B. empowerment

C. zone of tolerance

D. standards analysis

E. voice-of-customer

E. voice-of-customer Bank of America is using a voice-of-customer program, which seeks to incorporate customer input into management decision making in a systematic way.

70. 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. reliability

C. tangibles

D. responsiveness

E. empathy

D. responsiveness Responsiveness is the service quality dimension that considers promptness and speed of response.

71. The concept of __________ refers to the area between customers' expectations regarding desired service and their minimum levels of acceptable service.

A. voice-of-customer programs

B. empowerment

C. the zone of tolerance

D. standards analysis

E. quality gap analysis

C. the zone of tolerance The zone of tolerance recognizes that there is a range of service performance that a customer will consider acceptable—between minimum levels of acceptable service and customers' desired levels of service.

72. 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.

A. voice-of-customer quotient

B. empowerment standard

C. tangibles gap

D. zone of tolerance

E. quality gap

D. zone of tolerance The difference between what customers desire and their minimum acceptable level of service is the zone of tolerance. Nicole knows her service will probably fall below its highest levels today but hopes that it will stay within her customers' zones of tolerance.

73. 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. voice-of-customer quotient

B. empowerment standard

C. tangibles gap

D. zone of tolerance

E. quality gap

D. zone of tolerance The difference between what customers desire and their minimum acceptable level of service is the zone of tolerance. Customers might be willing to wait longer for service at a busy grocery store than at a convenience store.

74. An excellent, inexpensive, and readily accessible method for assessing customers' service expectations is

A. customer complaints.

B. syndicated data services.

C. employee empowerment programs.

D. distributive fairness analysis.

E. management by objective programs.

A. customer complaints. Although it does not offer comprehensive information since some customers do not complain, a fair amount of information can be obtained inexpensively by evaluating the types of complaints received.

75. Training service providers to know exactly what a good job entails is setting service

A. knowledge.

B. quality.

C. delivery.

D. standards.

E. empowerment.

D. standards. Service providers cannot meet the firm's standards if provided with only general instructions (as in "do a good job"). Specific standards must be provided.

76. 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

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. By setting specific service standards and measurable goals based on customer expectations, Kayla can help her employees to deliver the level of service that customers expect.

77. Services marketing managers have learned that more employees will support a quality-oriented process if

A. they are involved in setting the goals.

B. perishable services are replaced with tangible services.

C. they are required to diverge from existing standards.

D. customers are responsible for setting service quality standards.

E. the process involves both part-time and full-time employees.

A. they are involved in setting the goals. By involving employees in goal-setting, managers can make it much more likely that employees will buy into the standards and deliver service according to the standards established.

78. 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 involved in setting the goals.

B. perishable services were being replaced with tangible services.

C. they were not allowed to diverge from existing standards.

D. customers were required to create service quality standards.

E. the process involved both part-time and full-time employees.

A. they were not involved in setting the goals. By involving employees in goal-setting, managers can make it much more likely that employees will buy in to the standards and deliver service according to the standards established. In this case, standards were established by headquarters with no employee involvement.

79. What is the problem associated with service quality standards such as "be nice" or "do what the customers want"?

A. They create low expectations.

B. They are not specific.

C. They do not allow for the voice-of-customer process.

D. Most employees are unwilling to do what customers want.

E. They create a delivery gap.

B. They are not specific. Service providers cannot meet the firm's standards if provided with only general instructions (as in "do a good job"). Specific standards must be provided.

80. By changing a standard from "be nice to customers" to "greet every customer, and if possible by name," a services marketing manager has created a(n) __________ goal.

A. insurmountable

B. invisible

C. empowerment

D. measurable

E. inseparable

D. measurable "Be nice" is not a measurable goal because it is vague, whereas "greet every customer" is specific and measurable.

81. In services marketing, the saying, "where the rubber meets the road" refers to whether a(n) __________ gap exists.

A. knowledge

B. quality

C. delivery

D. standards

E. empowerment

C. delivery This refers to a delivery gap, a situation in which the employee knows what customers expect but fails to deliver to these expectations.

82. 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(n) __________ gap in service quality.

A. knowledge

B. communication

C. standards

D. delivery

E. empowerment

D. delivery Saltdust Grill, which ordinarily provides an excellent dining experience, has failed to do so on this occasion, creating a delivery gap (a gap between service standards and actual delivered service).

83. A(n) __________ gap exists when a firm knows what it needs to do to meet customers' service expectations but sometimes fails to do it.

A. knowledge

B. communication

C. standards

D. empowerment

E. delivery

E. delivery A delivery gap is a gap between service standards and actual delivered service.

84. _________ means allowing employees to make decisions about how service is provided to customers.

A. Endorsement

B. Quality control

C. Standardization

D. Empowerment

E. Authorization

D. Empowerment Empowerment refers to permitting frontline employees to make decisions about service delivery to meet customers' specific needs. In general, empowerment of employees results in better service.

85. When __________ are authorized to make decisions to help their customers, service quality generally improves.

A. consultants

B. middle managers

C. corporate executives

D. production control managers

E. frontline employees

E. frontline employees Empowerment refers to permitting frontline employees to make decisions about service delivery to meet customers' specific needs. In general, empowerment of employees results in better service.

86. Using technology and __________ are two ways a delivery gap can be reduced in size.

A. empowering employees

B. variability analysis

C. voice-of-customer analysis

D. zone of tolerance analysis

E. public relations

A. empowering employees Empowerment refers to permitting frontline employees to make decisions about service delivery to meet customers' specific needs. In general, empowerment of employees results in better service.

87. Empowerment of employees helps to address the delivery gap because

A. employees directly involved with the customer can respond effectively at the moment the problem occurs.

B. customers appreciate feeling empowered.

C. management then doesn't need to devote time and energy to resolving service delivery problems.

D. employees spend less time resolving problems than managers would.

E. it ultimately contributes to employee knowledge and retention.

A. employees directly involved with the customer can respond effectively at the moment the problem occurs. Empowerment refers to permitting frontline employees to make decisions about service delivery to meet customers' specific needs. In general, empowerment of employees results in better service because the employee is directly involved in the situation and can respond quickly and effectively.

88. When Dr. Horton checked in at the Ritz-Carlton, it was 3 a.m. He had been traveling for over twelve hours and was exhausted. His suit, which he needed for a speech that morning, looked like he had slept in it. Karen, the night clerk, offered to find a 24-hour dry cleaner and have the suit cleaned while Dr. Horton got a few hours of sleep. Karen's actions are an example of

A. the variability associated with service quality performance.

B. empowering employees to meet customers' needs.

C. procedural fairness.

D. specific service standards.

E. public relations to increase puffery.

B. empowering employees to meet customers' needs. Karen went above and beyond the specific requirements of her job in offering to provide this special service to Dr. Horton. She was able to do this because the Ritz-Carlton empowers its employees to take extra steps to meet customers' needs.

89. Empowerment becomes more important when the service is

A. institutionalized.

B. repetitive.

C. individualized.

D. routine.

E. standardized.

C. individualized. When service is individualized, standards cannot predict every adjustment that might be needed for a specific situation. This is when empowering employees to determine the best way to meet customer needs is particularly important.

90. The old cliché, "Service with a smile," recognizes the fact that

A. service providers need to be pleasant even if the customer is not.

B. smiling is contagious.

C. service providers should smile and not think.

D. life is too short to be ugly.

E. services are perishable but a smile is forever.

A. service providers need to be pleasant even if the customer is not. One reason service jobs can be difficult is that service employees must remain pleasant and courteous even when customers are not.

91. Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by

A. empowering consumers.

B. providing support and incentives for their employees.

C. directing zone of tolerance limits for employees.

D. effective customer screening.

E. forcing rude customers to use technology.

B. providing support and incentives for their employees. One reason service jobs can be difficult is that service employees must remain pleasant and courteous even when customers are not. Managers can help frontline employees to manage angry customers with courtesy by providing emotional support and incentives.

92. After observing a customer verbally abuse a waiter, the first thing a manager can do to ensure quality service is to

A. throw the customer out of the restaurant.

B. assume the waiter provoked the attack and respond accordingly.

C. provide emotional support to the waiter.

D. review the delivery support system.

E. make sure services delivery expectations are consistent and coherent throughout the organization.

C. provide emotional support to the waiter. One reason service jobs can be difficult is that service employees must remain pleasant and courteous even when customers are not. Managers can help frontline employees to manage angry customers with courtesy by providing emotional support and incentives.

93. Managers of fast food restaurants struggle with a rapid turnover of personnel. Employee turnover rates of 100 to 200 percent annually are common. The work environment is difficult and customers can often be demanding. One of the first steps managers can take to help workers deliver quality service is to

A. ban abusive customers from their restaurants.

B. reward service providers based solely on the speed of service.

C. provide emotional support and concern for their employees.

D. review the delivery support system.

E. make sure services delivery expectations are consistent and coherent throughout the organization.

C. provide emotional support and concern for their employees. One reason service jobs can be difficult is that service employees must remain pleasant and courteous even when customers are not. Managers can help frontline employees to manage angry customers with courtesy by providing emotional support and incentives.

94. __________ represents the systems and equipment resources that service providers need to be able to close the delivery gap.

A. Service infrastructure

B. Quality mechanics

C. Instrumental support

D. Dynamic support

E. Customer interface architecture

C. Instrumental support This is the definition of instrumental support—the systems, equipment, and tools frontline employees need to do their jobs.

95. 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.

A. maintenance schedule

B. instrumental support

C. equipment inventory

D. service infrastructure

E. customer expectation mechanisms

B. instrumental support Rob is experiencing a lack of proper instrumental support—the systems, equipment, and tools frontline employees need to do their jobs.

96. Today, almost every sales rep can immediately check the company's inventory and production scheduling electronically. This allows sales reps to sell what is available and make promises to customers that they can keep. This technology has improved service delivery through

A. access to a wide variety of services.

B. greater control by customers over service delivery.

C. increased zone of tolerance.

D. greater ability to obtain information.

E. saving customers time.

D. greater ability to obtain information. The increased information available due to technology makes it easier for sales reps to set customer expectations appropriately regarding product availability.

97. Although firms such as restaurants have difficulty controlling service quality from day to day, they do have control over

A. how they communicate the services they promise.

B. the price of ingredients.

C. the attitudes of customers.

D. the way customers view them compared to competitors.

E. the knowledge gap consumers create.

A. how they communicate the services they promise. Restaurants cannot control the prices they pay for ingredients or their customers' attitudes, but they can control their communication with customers, which will influence expectations and perceptions.

98. If a firm promises more than it can deliver,

A. it has created an empowerment gap.

B. consumers will have a knowledge gap.

C. it creates a communication gap.

D. it needs to enact a voice-of-customer program.

E. perishability becomes a problem.

C. it creates a communication gap. A communication gap is the difference between promised and actual service.

99. The __________ gap can be reduced by managing consumers' expectations.

A. knowledge

B. communication

C. delivery

D. standards

E. empowerment

B. communication A communication gap is the difference between promised and actual service. By making realistic promises, the firm can manage expectations.

100. Physicians regularly overstate the expected recovery time from surgery, knowing that managing patients' expectations will reduce the __________ gap associated with their service.

A. knowledge

B. empowerment

C. delivery

D. standards

E. communication

E. communication A communication gap is the difference between promised and actual service. By making pessimistic predictions for recovery time, doctors can manage patients' expectations.

101. Dopson's Hardware was in bad financial shape. It owed so much money that vendors put the store on a cash-only delivery basis. As a result, the store had a dwindling inventory of goods to sell. Whenever a customer asked about an unavailable item, the owner directed the sales staff to say that it was on backorder and would be in stock next week. When the customer returned, the item was still unavailable. The owner's policy created a(n) __________ gap.

A. knowledge

B. empowerment

C. communication

D. standards

E. tangibility

C. communication Dopson's Hardware was making promises it could not keep by saying that things would be in stock next week when that was not the case. This difference between promised service and actual service created a communication gap.

102. Effective service recovery entails all of the following EXCEPT

A. listening to the customer.

B. estimating the damage.

C. providing a fair solution.

D. resolving the problem quickly.

E. all of these are effective service recovery techniques.

B. estimating the damage. Effective service recovery includes listening to the customer, providing a fair solution, and resolving the problem quickly.

103. Effective service recovery efforts can lead to all of the following EXCEPT

A. increased purchase intentions.

B. increased positive word of mouth.

C. increased customer satisfaction.

D. lower levels of satisfaction than prior to the service failures.

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

E. increased dependence on technology to prevent future service failures. Effective service recovery can positively influence purchase intensions, positive word of mouth, and customer satisfaction; however, satisfaction may still be lower than it was before the service failure.

104. Sam was called in to meet with his boss, Tricia. He was afraid he was going to be fired for the mistake he had made dealing with an important customer of the store. Instead, Tricia explained that he had handled the situation well, listening to the customer and finding a fair solution. Tricia commented, "Even more importantly, working the way you did to correct the error could result in __________."

A. a smaller empowerment gap

B. increased customer purchases and positive word of mouth

C. a full refund for the customer

D. a larger service gap

E. less instrumental support

B. increased customer purchases and positive word of mouth Sam's effective service recovery could have saved the relationship with the customer, leading to increased levels of purchasing and positive word of mouth.

105. When confronted with an angry and emotional customer, the best first step toward service recovery is to

A. call security in case it is necessary to escort the person from the building.

B. match the person's voice in intensity and volume to gain control of the confrontation.

C. 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.

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

E. ask a coworker to take over handling the complaint to get a neutral perspective.

D. listen carefully and with empathy until the customer feels he or she has been heard. The best first step with an angry customer is to listen carefully and give the customer a chance to be heard.

106. Service employees at the airlines' flight cancellation desks frequently encounter travelers who get emotional about canceled or delayed flights. The first thing these employees should do is to

A. listen to the customer.

B. contact a supervisor.

C. estimate the damage.

D. provide a fair solution.

E. resolve the problem quickly.

A. listen to the customer. The best first step with an angry customer is to listen carefully and give the customer a chance to be heard.

107. When travelers are bumped from overbooked flights, they are frequently offered vouchers good for future travel. The dollar value of the voucher is the airline's estimate of

A. perishable value.

B. distributive fairness.

C. empowerment.

D. procedural justice.

E. the size of the knowledge gap.

B. distributive fairness. Distributive fairness is the evaluation of fairness of the outcome—i.e., a fair compensation for whatever loss or inconvenience occurred as a result of the service problem.

108. Because customers have different needs and expectations, the key to distributive fairness in service recovery is to

A. listen to the customer.

B. contact a supervisor quickly.

C. estimate the damage.

D. provide a fair solution.

E. resolve the problem quickly.

A. listen to the customer. Distributive fairness is the evaluation of fairness of the outcome—i.e., a fair compensation for whatever loss or inconvenience occurred as a result of the service problem. Only by listening to the customer can the service provider understand what the customer will consider a fair result.

109. 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. intangible fairness.

B. distributive fairness.

C. procedural fairness.

D. service fairness.

E. empowerment fairness.

B. distributive fairness. Distributive fairness is the evaluation of fairness of the outcome—i.e., a fair compensation for whatever loss or inconvenience occurred as a result of the service problem. In this case, Randall did not feel that he was compensated for the additional cost he had to bear due to the problem with his reservation.

110. 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?

A. The nature or severity of the service failure.

B. The customer's experience with other firms.

C. The firm's policy on service recovery.

D. Observed treatment of other customers.

E. Stories of service recovery told by friends and family.

C. The firm's policy on service recovery. Customers do not care much about firm's policies if these policies seem unreasonable. The other factors, though, will affect customers' perceptions of fairness.

111. __________ refers to the perceived fairness of the process with which a firm handles customer complaints.

A. Procedural fairness

B. Intangible fairness

C. Distributive fairness

D. Service fairness

E. Empowerment fairness

A. Procedural fairness Fairness is assessed based on the outcome (distributive fairness) and the process by which the outcome was determined (procedural fairness).

112. Because of __________, many companies have altered their "no questions asked" return policies to include time limits, restocking fees, and store-credit-only refunds.

A. government regulations

B. Better Business Bureau guidelines

C. high costs

D. accounting concerns

E. well-publicized liability cases

C. high costs Costs involved in returns have led some retailers to restrict customers' ability to return merchandise.

113. One of the reasons service failures need to be addressed quickly is to

A. minimize the zone of tolerance.

B. increase empowerment zones.

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

D. avoid a situational ethics conflict.

E. keep management from finding out what happened.

C. avoid negative word-of-mouth from upset customers. The longer a service problem remains unresolved, the more likely customers will complain to others.

114. The service dimension called __________ refers to the ability of the firm's employees to convey trust and confidence.

A. assurance

B. reliability

C. responsiveness

D. empathy

E. tangibles

A. assurance Assurance refers to employees' knowledge and courtesy and their ability to convey trust and confidence.

115. 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. reliability

B. responsiveness

C. assurance

D. empathy

E. tangibles

A. reliability Reliability is the ability to perform the service dependably and accurately.

116. 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. tangibles

B. reliability

C. responsiveness

D. assurance

E. empathy

A. tangibles The tangibles building block of service quality refers to the appearance of physical facilities, equipment, personnel, and communication materials.

117. When John checked into his Orlando hotel, the front desk clerk informed John that his room would not be ready for another twenty minutes. John decided he didn't mind waiting, because he had arrived well ahead of the standard check-in time. John didn't mind waiting twenty minutes because this wait fell within his __________, the area between his expectations regarding desired service and the minimum level of service he will accept.

A. zone of tolerance

B. delivery gap

C. zone of intolerance

D. service gap

E. patience zone

A. zone of tolerance The zone of tolerance is the difference between what a customer really wants and what the person will accept before going elsewhere.

118. 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.

A. zone of tolerance

B. delivery gap

C. zone of intolerance

D. service gap

E. patience zone

A. zone of tolerance The zone of tolerance is the difference between what a customer really wants and what the person will accept before going elsewhere.

119. Which of the following is NOT a recommended strategy for service recovery?

A. listening to the customer

B. finding a fair solution

C. resolving problems quickly

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

E. following procedural fairness when solving problems

D. silencing an irate customer before the individual makes any angry outbursts Customers often need to be heard; the best policy is to listen with empathy, even if the customer is angry.

120. 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. employee incentives.

C. emotional support.

D. line extensions.

E. the delivery gap.

A. instrumental support. Instrumental support refers to systems and equipment needed by service employees to do their jobs well.

121. 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

A. procedural fairness.

B. variability.

C. organizational fairness.

D. intangibility.

E. explanatory fairness.

A. procedural fairness. Procedural fairness refers to the perceived fairness of the process used to resolve issues. In this case, since each customer was hearing a different process description, customers would perceive that procedural fairness did not exist.

122. 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. knowledge gap

C. performance gap

D. communication gap

E. recovery gap

A. standards gap The standards gap pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets. By setting appropriate service standards and measuring service performance, firms can attempt to close this gap.

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1. Firms that primarily sell products view service as a method to maintain a sustainable competitive advantage.

TRUE Services play a role in almost every firm’s strategy, even those that primarily sell products.

2. The marketing of services differs from the marketing of products because services are tangible and separable from the service provider.

FALSE Products are tangible and separable; services are not.

3. Many services marketers use training and standardization to reduce service perishability.

FALSE Perishability refers to the fact that services cannot be produced in advance and stored for use in the future. It is often addressed by offering discounts designed to shift demand to less busy periods.

4. The Gaps model allows systematic examination of all aspects of the product creation process.

FALSE The Gaps model allows systematic examination of all aspects of the service delivery process.

5. A delivery gap is the difference between the firm’s service standards and the actual service it provides to customers.

TRUE The Gaps model allows systematic examination of all aspects of the service delivery process. The delivery gap represents the difference between the service standards and the actual service delivered.

6. One use of marketing research is to provide an effective means to understand consumers’ service expectations and their perceptions of service quality.

TRUE Customer expectations for service, and the ways in which they perceive and evaluate service quality, must both be understood to design and deliver service as desired by customers. Marketing research is a useful tool for better understanding of customers’ views.

7. When Buffalo Bank required all customers to use its online banking services, over 20 percent of their customers closed their accounts. In this scenario, Buffalo Bank’s service fell outside customers’ zone of tolerance.

TRUE The zone of tolerance is a range between customers’ desired levels of service and the minimum they are willing to accept. The fact that so many customers closed their accounts suggests that Buffalo Bank no longer offered service falling within most customers’ zones of tolerance.

8. In training service providers, service quality goals should be general to allow for the various needs of consumers.

FALSE Service quality goals should be specific to deliver service that consistently meets customers’ expectations.

9. The knowledge gap is where the rubber meets the road, where the customer directly interacts with the service provider.

FALSE This is the delivery gap, not the knowledge gap.

10. In the marketing of services, empowerment means allowing employees to make decisions about how service is provided to customers.

TRUE Empowerment is especially important when service is more individualized.

11. The communications gap can be reduced by managing customer expectations.

TRUE The communications gap refers to the difference between service promises and customer perceptions of delivered service. Setting unrealistic customer expectations is one common cause of a large communications gap.

12. Procedural fairness pertains to a customer’s perception of the benefits received compared to the costs of the inconvenience or loss.

FALSE This is a definition of distributive fairness. Procedural fairness refers to the customer’s perception of the fairness of the process used to arrive at an outcome.

13. All products and services are intangible.

FALSE Intangible items cannot be touched, tasted, or seen; this describes services but not products.

14. The building blocks of service quality are reliability, responsiveness, assurance, empathy, and tangibles.

TRUE This is correct. Customers generally use five distinct service dimensions to determine overall service quality: reliability, responsiveness, assurance, empathy, and tangibles.

15. The zone of tolerance refers to the area between customers’ expectations regarding their desired service and the minimum level of acceptable service.

TRUE This is true because this is the definition of zone of tolerance.

16. Listening to the customer is the first step in service recovery.

TRUE The three key service recovery strategies are listening to the customer, finding a fair solution, and resolving problems quickly.

17. Hilton Hotels trains its front desk employees to dress neatly and conservatively to project a professional image. This relates to the service dimension of tangibles.

TRUE The category of tangibles includes the appearance of facilities, equipment, personnel, and communication materials.

18. Latosha was employee of the month at Jersey Mike’s Subs, primarily because she provided excellent customer service by serving food quickly. This relates to the reliability service dimension.

FALSE Helping customers and providing prompt service relates to responsiveness.

19. When managers understand what their service providers are facing on a day-to-day basis by directly observing them and talking to customers, it is called "management by walking around."

TRUE "Management by walking around" involves knowing what the service providers are facing on a day-to-day basis and talking directly to the customers with whom those service providers interact.

20. A delivery gap always results in a service failure.

TRUE This is true, delivery gaps mean that service was not provided in an acceptable manner.

21. Sometimes, all that needs to be done to satisfy a customer complaint is to listen to the customer.

TRUE In many cases, the customer may just want to be heard, and the service provider should give the customer all the time he or she needs to get it out.

22. A service is any intangible offering that involves a deed, performance, or effort that

A. cannot be physically possessed.

B. is high-priced.

C. is supported solely through advertising.

D. can be transformed into a physical product.

E. offers benefits but not costs.

A. cannot be physically possessed. Services are intangible—they cannot be physically touched or possessed, as a pure product can.

23. By providing good customer service, firms __________ their products or services.

A. eliminate the communication gap for

B. add value to

C. reduce the zone of tolerance for

D. reduce the empowerment cost associated with

E. increase the perishability of

B. add value to Customer service can add value to almost any product or service offered to consumers.

24. Along the service-product continuum, which of the following would be considered the most service dominant?

A. grocery store

B. apparel specialty store

C. doctor

D. bookstore

E. restaurant

C. doctor All the businesses on the list except the doctor’s office involve some tangible component—groceries, clothing, books, and food. In the doctor’s office, the only tangible elements delivered are things such as samples of drugs, X-rays, and prescription slips (and even those are often submitted electronically).

25. Along the service-product continuum, which of the following would be considered the most product dominant?

A. grocery store

B. auto repair shop

C. doctor’s office

D. cell phone service provider

E. restaurant

A. grocery store A grocery store’s services involve service at the fish counter, the deli, the checkout, etc., but the grocery store tends to offer less service and more products (the groceries themselves) than do the other options.

26. Many product-dominant firms use quality service

A. as a way to minimize the cost of production.

B. to support a standards gap.

C. as a way to increase the perishability of their products.

D. to install a voice of the customer program.

E. to maintain a sustainable competitive advantage.

E. to maintain a sustainable competitive advantage. Customer service can add value to almost any product or service offered to consumers. This added value can create a sustainable competitive advantage.

27. In countries like the United States, services

A. have almost all been replaced by technology.

B. are a small portion of GDP relative to manufacturing.

C. are replacing property taxes as a source of government revenue.

D. will decrease in demand as the population ages.

E. account for an increasing share of jobs.

E. account for an increasing share of jobs. The economies of many developed countries are heavily dependent on services. Services account for about 76 percent of the U.S. gross domestic product.

28. Food preparation, lawn maintenance, and house cleaning services are all examples of

A. services shifted abroad because costs are lower in developing countries.

B. services an aging population will decrease their demand for.

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

D. the price elasticity effect on services demand.

E. the ability of empowerment to create tangible service products.

C. household maintenance activities that people increasingly pay others to perform. As people’s lives become busier, there is an increasing trend to pay others to perform basic household maintenance tasks.

29. Medical services, assisted living care, and active senior travel are all examples of

A. services shifted abroad because costs are lower in developing countries.

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

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

D. the price elasticity effect on services demand.

E. the ability of empowerment to create tangible service products.

B. services an aging population will increase their demand for. As the U.S. population ages with the baby boom entering its senior years, these services are expected to be increasingly in demand.

30. The marketing of services differs from product marketing because services are all of these EXCEPT

A. intangible.

B. inseparable.

C. variable.

D. renewable.

E. perishable.

D. renewable. All of these are differences between products and services, except for the quality of being renewable.

31. When marketers say that services are __________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can.

A. intangible

B. inseparable

C. variable

D. perishable

E. replenishable

A. intangible Intangibility refers to the fact that, unlike products, services cannot be touched, tasted, seen, or possessed.

32. Because services are __________, it is often difficult for marketers to convey the benefits to consumers.

A. variable

B. inseparable

C. intangible

D. perishable

E. substantial

C. intangible Intangibility refers to the fact that, unlike products, services cannot be touched, tasted, seen, or possessed. This often makes it more difficult to make the benefits clear to consumers.

33. 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 media are appropriate for promoting intangible services.

C. which images create a better impression on consumers.

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. Lawyers and doctors are two examples of professionals who wish to promote their services, yet do not want to lose their professional image in doing so. Professional services-related organizations like the American Bar Association often publish ethical guidelines for advertising and promotion.

34. 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. variable

D. perishable

E. peripheral

B. inseparable Unlike products, services cannot be produced at one time and consumed later; the two happen at the same time. This is referred to as inseparability.

35. 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.

A. promotional discounts

B. zone of tolerance allowances

C. perishability gap analysis

D. point-of-purchase displays

E. satisfaction guarantees

E. satisfaction guarantees Inseparability refers to the fact that services are produced and consumed at the same time. This makes trial in advance of purchase difficult and often impossible. One solution is to offer satisfaction guarantees to minimize the risk of an initial purchase.

36. 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

A. intangibility.

B. professional competence.

C. perishability.

D. inseparability.

E. variability.

D. inseparability. Because medical services are inseparable, the doctor’s service was produced at the time of the visit, and Sean did not have the option of trying out different doctors before choosing the one to treat him. He therefore only learned that he didn’t like the doctor when he was treated.

37. Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. The employees—when she could find them—rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. The store had found a technological solution to the services marketing issue of

A. intangibility.

B. part-time employees.

C. perishability.

D. inseparability.

E. variability.

E. variability. Martha has been experiencing problems with service variability—the employees are not consistently able to assist her. The kiosks provide a solution by offering comprehensive store information.

38. 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.

A. intangible

B. inseparable

C. heterogeneous

D. perishable

E. viable

C. heterogeneous Heterogeneity refers to the problem that services tend to vary by time, location, or the person providing the service. The human element is primarily responsible for this variation.

39. The old restaurant saying, "You are only as good as the last meal served," reflects the fact that services are

A. intangible.

B. inseparable.

C. variable.

D. portable.

E. viable.

C. variable. This saying refers to the variability of services—the fact that they tend to vary by time, location, or service provider.

40. Marketers can take advantage of the variable nature of services by

A. merging services with products.

B. customizing services to meet customers’ needs.

C. offering to expedite intangibles.

D. expanding the standards gap.

E. strict standardization.

B. customizing services to meet customers’ needs. The positive side of service variability is that it offers a chance to customize delivery. The reason "strict standardization" is not the right answer is because this is a method used to reduce variability, not to take advantage of it.

41. One approach marketers are using to reduce service __________ is to replace people with machines whenever appropriate.

A. intangibility

B. inseparability

C. spendability

D. perishability

E. variability

E. variability By replacing people with technology, service delivery tends to become more standardized, which reduces variability of delivery. Of course, this assumes that the machines don’t break down!

42. David’s marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) ________ gap.

A. knowledge

B. standards

C. ethics

D. delivery

E. communications

A. knowledge David thinks he knows what his customers expect, but the marketing research suggests something different. A knowledge gap refers to the difference between customer expectations and the firm’s understanding of these expectations.

43. The customers at Marielle’s coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle’s keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle’s shop is suffering from a

A. knowledge gap.

B. standards gap.

C. social expectations gap.

D. delivery gap.

E. communications gap.

D. delivery gap. Marielle’s has standards in place to offer fast service, and this is what its customers expect, so we are not dealing with a knowledge or standards gap. And on most days, this promise is kept, so we are not dealing with a communication gap. But on this particular day, service does not match the standards. This is a delivery gap.

44. When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a

A. knowledge gap.

B. standards gap.

C. social expectations gap.

D. delivery gap.

E. communications gap.

E. communications gap. A communication gap is a discrepancy between customer perceptions of delivered service and the promises made by the firm.

45. When marketers state that services are __________, they are referring to the fact that services cannot be stored for use in the future.

A. intangible

B. inseparable

C. variable

D. durable

E. perishable

E. perishable Perishability refers to the fact that services cannot be produced in advance and stored until they are needed. This can make matching of demand and supply difficult.

46. Because services like airline flights and hotel beds are _________, many marketers attempt to match demand with supply using pricing strategies.

A. intangible

B. inseparable

C. variable

D. perishable

E. accountable

D. perishable Perishability refers to the fact that services cannot be produced in advance and stored until they are needed. This can make matching of demand and supply difficult. Airlines offer discount tickets at less popular flying times, and hotels offer cheaper rooms at times when they are less busy.

47. 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.

A. intangible

B. inseparable

C. variable

D. durable

E. perishable

E. perishable Perishability refers to the fact that services cannot be produced in advance and stored until they are needed. This can make matching of demand and supply difficult. It makes sense to offer rooms at a discount when the hotel is relatively empty because a smaller payment for use of the room is better than having the room sit empty with no payment.

48. Because services like cruises and car rentals are perishable, many marketers use

A. pricing strategies to match supply with demand.

B. service quality to extend the life of the product.

C. incentives to encourage staff to deliver according to standards.

D. training to standardize delivery.

E. machines to replace people for standard transactions.

A. pricing strategies to match supply with demand. Perishability refers to the fact that services cannot be produced in advance and stored until they are needed. This can make matching of demand and supply difficult. Cruise lines will offer last-minute discounts for cruises with available capacity.

49. The Gaps model is designed to highlight those areas where

A. service providers provide the best possible service.

B. manufacturers are cutting corners on product quality.

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

D. service providers know more than their customers.

E. delivered service exceeds expected service.

C. customers believe they are getting less or poorer service than they should. The Gaps model indicates areas where problems can arise leading to customers getting lower-quality service than they expect.

50. When the delivery of a service fails to meet customers’ expectations, a __________ gap exists.

A. service

B. knowledge

C. standards

D. production

E. communication

A. service The Gaps model identifies four service gaps: the knowledge, standards, delivery, and communication gaps. In any given situation, one or more of these service gaps may be causing deficiencies in delivered service.

51. A __________ gap reflects the difference between customers’ expectations and the firm’s perception of those customer expectations.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

B. knowledge This is the definition of a knowledge gap.

52. Firms can close the __________ gap by matching customer expectations with actual service through use of marketing metrics.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

B. knowledge The knowledge gap represents the difference between customer expectations and management’s understanding of those expectations. Marketing research is one useful technique for closing this gap.

53. A __________ gap is the difference between the firm’s service standards and the service it provides to customers.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

D. delivery Due to the human element, there is almost always variability in service delivery, in which service sometimes fails to meet the firm’s standards. This is the delivery gap.

54. A __________ gap can be closed by getting employees to meet or exceed service standards.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

D. delivery Due to the human element, there is almost always variability in service delivery, in which service sometimes fails to meet the firm’s standards. This is the delivery gap. One way to close the gap is to offer incentives to encourage employees to meet or exceed the standards.

55. 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. seniority

B. knowledge

C. standards

D. delivery

E. communication

C. standards A lack of care in setting specific service standards can lead to a standards gap, a discrepancy between the firm’s perceptions of customer expectations and the standards it sets for performance.

56. By setting appropriate service standards and measuring service performance, firms can attempt to close a __________ gap.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

C. standards A lack of care in setting specific service standards can lead to a standards gap, a discrepancy between the firm’s perceptions of customer expectations and the standards it sets for performance. By setting appropriate standards and measuring performance to find out whether standards are being met, this gap can be closed.

57. If there is a difference between the actual service provided to customers and the service the firm has promoted, a __________ gap exists.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

E. communication A communication gap exists if the firm does not keep its service promises.

58. Firms can close a __________ gap by being more realistic about the services they can provide and managing customer expectations.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

E. communication A communication gap exists if the firm does not keep its service promises. By making realistic promises that set customer expectations appropriately, this gap can be closed.

59. 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.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

B. knowledge The Mogul Sheraton believed that customers wanted elephant and camel rides, but in reality customers were evidently not interested in the service. This misunderstanding of customer expectations is an example of a knowledge gap.

60. Jackson manages an upscale French restaurant in the Washington, D.C. area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his waiters and waitresses to report comments and requests for items that have previously only been offered as specials. Jackson uses this information to reduce the __________ gap in services marketing.

A. seniority

B. knowledge

C. standards

D. delivery

E. communication

B. knowledge By collecting information about special requests, Jackson seeks to learn more about his customers’ expectations. This should help to close the knowledge gap.

61. To meet or exceed customers’ expectations, marketers must

A. know where customers live.

B. know how often consumers buy their products.

C. determine what those expectations are.

D. recognize that expectations are tangible.

E. empower customers to meet their own expectations.

C. determine what those expectations are. The most important thing a marketer needs to meet or exceed expectations is an accurate sense of what those expectations are; otherwise, the firm is reduced to guessing and hoping for the best.

62. 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. quantifiable

B. substantial

C. unequally distributed

D. intangible

E. inconsequential to customers

D. intangible The intangibility of services makes it difficult for consumers to evaluate them, and for that reason it is difficult for them to articulate their views when service quality is measured.

63. Which of the following is NOT one of the five dimensions used by consumers to determine overall service quality?

A. assurance

B. reliability

C. acceptability

D. responsiveness

E. empathy

C. acceptability The five dimensions of service quality are reliability, assurance, responsiveness, empathy, and tangibles.

64. Cheryl will only let Martiné cut her hair. She has tried other hairdressers, but she knows from experience that Martiné cuts her hair well every time. For Cheryl, __________ is the most important of the five service quality dimensions.

A. assurance

B. reliability

C. tangibles

D. responsiveness

E. empathy

B. reliability Martiné cuts Cheryl’s hair right every time. She might have other weaknesses—perhaps she is rude, or always runs behind schedule, or perhaps she doesn’t do a good job of keeping her station neat, but she gives good haircuts. Reliability is the service quality dimension that refers to doing the job correctly.

65. 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. assurance

B. reliability

C. tangibles

D. responsiveness

E. empathy

A. assurance Assurance is the dimension of service quality that refers to inspiring trust and confidence in others, which is Professor Guillory’s strength. Note that the question doesn’t actually say that her advice is always good (which would refer to reliability), but rather that students believe that her advice is good.

66. Gerald’s Tire Service provides each employee with a clean, sharp-looking uniform. It also instructs employees to put all tools back where they belong and keep the work area clean and uncluttered. Gerald’s Tire Service emphasizes __________ in the five service quality dimensions.

A. assurance

B. reliability

C. tangibles

D. responsiveness

E. empathy

C. tangibles Gerald is focusing on tangibles, which are the factors that can be seen, touched, or owned—in this case, uniforms and the cleanliness of the work area.

67. Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call

A. service perceptions.

B. service efforts.

C. service quality.

D. service aspirations.

E. service feedback.

C. service quality. Service quality is the customer’s perception of how well delivered service meets expectations.

68. A systematic ____________ program collects customer inputs and integrates them into managerial decisions.

A. quality gap analysis

B. empowerment

C. zone of tolerance

D. standards analysis

E. voice-of-customer

E. voice-of-customer A voice-of-customer program seeks to incorporate customer input into management decision making in a systematic way.

69. 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(n) __________ program to improve service quality and service offerings.

A. quality gap analysis

B. empowerment

C. zone of tolerance

D. standards analysis

E. voice-of-customer

E. voice-of-customer Bank of America is using a voice-of-customer program, which seeks to incorporate customer input into management decision making in a systematic way.

70. 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. reliability

C. tangibles

D. responsiveness

E. empathy

D. responsiveness Responsiveness is the service quality dimension that considers promptness and speed of response.

71. The concept of __________ refers to the area between customers’ expectations regarding desired service and their minimum levels of acceptable service.

A. voice-of-customer programs

B. empowerment

C. the zone of tolerance

D. standards analysis

E. quality gap analysis

C. the zone of tolerance The zone of tolerance recognizes that there is a range of service performance that a customer will consider acceptable—between minimum levels of acceptable service and customers’ desired levels of service.

72. 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.

A. voice-of-customer quotient

B. empowerment standard

C. tangibles gap

D. zone of tolerance

E. quality gap

D. zone of tolerance The difference between what customers desire and their minimum acceptable level of service is the zone of tolerance. Nicole knows her service will probably fall below its highest levels today but hopes that it will stay within her customers’ zones of tolerance.

73. 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. voice-of-customer quotient

B. empowerment standard

C. tangibles gap

D. zone of tolerance

E. quality gap

D. zone of tolerance The difference between what customers desire and their minimum acceptable level of service is the zone of tolerance. Customers might be willing to wait longer for service at a busy grocery store than at a convenience store.

74. An excellent, inexpensive, and readily accessible method for assessing customers’ service expectations is

A. customer complaints.

B. syndicated data services.

C. employee empowerment programs.

D. distributive fairness analysis.

E. management by objective programs.

A. customer complaints. Although it does not offer comprehensive information since some customers do not complain, a fair amount of information can be obtained inexpensively by evaluating the types of complaints received.

75. Training service providers to know exactly what a good job entails is setting service

A. knowledge.

B. quality.

C. delivery.

D. standards.

E. empowerment.

D. standards. Service providers cannot meet the firm’s standards if provided with only general instructions (as in "do a good job"). Specific standards must be provided.

76. 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

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. By setting specific service standards and measurable goals based on customer expectations, Kayla can help her employees to deliver the level of service that customers expect.

77. Services marketing managers have learned that more employees will support a quality-oriented process if

A. they are involved in setting the goals.

B. perishable services are replaced with tangible services.

C. they are required to diverge from existing standards.

D. customers are responsible for setting service quality standards.

E. the process involves both part-time and full-time employees.

A. they are involved in setting the goals. By involving employees in goal-setting, managers can make it much more likely that employees will buy into the standards and deliver service according to the standards established.

78. 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 involved in setting the goals.

B. perishable services were being replaced with tangible services.

C. they were not allowed to diverge from existing standards.

D. customers were required to create service quality standards.

E. the process involved both part-time and full-time employees.

A. they were not involved in setting the goals. By involving employees in goal-setting, managers can make it much more likely that employees will buy in to the standards and deliver service according to the standards established. In this case, standards were established by headquarters with no employee involvement.

79. What is the problem associated with service quality standards such as "be nice" or "do what the customers want"?

A. They create low expectations.

B. They are not specific.

C. They do not allow for the voice-of-customer process.

D. Most employees are unwilling to do what customers want.

E. They create a delivery gap.

B. They are not specific. Service providers cannot meet the firm’s standards if provided with only general instructions (as in "do a good job"). Specific standards must be provided.

80. By changing a standard from "be nice to customers" to "greet every customer, and if possible by name," a services marketing manager has created a(n) __________ goal.

A. insurmountable

B. invisible

C. empowerment

D. measurable

E. inseparable

D. measurable "Be nice" is not a measurable goal because it is vague, whereas "greet every customer" is specific and measurable.

81. In services marketing, the saying, "where the rubber meets the road" refers to whether a(n) __________ gap exists.

A. knowledge

B. quality

C. delivery

D. standards

E. empowerment

C. delivery This refers to a delivery gap, a situation in which the employee knows what customers expect but fails to deliver to these expectations.

82. 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(n) __________ gap in service quality.

A. knowledge

B. communication

C. standards

D. delivery

E. empowerment

D. delivery Saltdust Grill, which ordinarily provides an excellent dining experience, has failed to do so on this occasion, creating a delivery gap (a gap between service standards and actual delivered service).

83. A(n) __________ gap exists when a firm knows what it needs to do to meet customers’ service expectations but sometimes fails to do it.

A. knowledge

B. communication

C. standards

D. empowerment

E. delivery

E. delivery A delivery gap is a gap between service standards and actual delivered service.

84. _________ means allowing employees to make decisions about how service is provided to customers.

A. Endorsement

B. Quality control

C. Standardization

D. Empowerment

E. Authorization

D. Empowerment Empowerment refers to permitting frontline employees to make decisions about service delivery to meet customers’ specific needs. In general, empowerment of employees results in better service.

85. When __________ are authorized to make decisions to help their customers, service quality generally improves.

A. consultants

B. middle managers

C. corporate executives

D. production control managers

E. frontline employees

E. frontline employees Empowerment refers to permitting frontline employees to make decisions about service delivery to meet customers’ specific needs. In general, empowerment of employees results in better service.

86. Using technology and __________ are two ways a delivery gap can be reduced in size.

A. empowering employees

B. variability analysis

C. voice-of-customer analysis

D. zone of tolerance analysis

E. public relations

A. empowering employees Empowerment refers to permitting frontline employees to make decisions about service delivery to meet customers’ specific needs. In general, empowerment of employees results in better service.

87. Empowerment of employees helps to address the delivery gap because

A. employees directly involved with the customer can respond effectively at the moment the problem occurs.

B. customers appreciate feeling empowered.

C. management then doesn’t need to devote time and energy to resolving service delivery problems.

D. employees spend less time resolving problems than managers would.

E. it ultimately contributes to employee knowledge and retention.

A. employees directly involved with the customer can respond effectively at the moment the problem occurs. Empowerment refers to permitting frontline employees to make decisions about service delivery to meet customers’ specific needs. In general, empowerment of employees results in better service because the employee is directly involved in the situation and can respond quickly and effectively.

88. When Dr. Horton checked in at the Ritz-Carlton, it was 3 a.m. He had been traveling for over twelve hours and was exhausted. His suit, which he needed for a speech that morning, looked like he had slept in it. Karen, the night clerk, offered to find a 24-hour dry cleaner and have the suit cleaned while Dr. Horton got a few hours of sleep. Karen’s actions are an example of

A. the variability associated with service quality performance.

B. empowering employees to meet customers’ needs.

C. procedural fairness.

D. specific service standards.

E. public relations to increase puffery.

B. empowering employees to meet customers’ needs. Karen went above and beyond the specific requirements of her job in offering to provide this special service to Dr. Horton. She was able to do this because the Ritz-Carlton empowers its employees to take extra steps to meet customers’ needs.

89. Empowerment becomes more important when the service is

A. institutionalized.

B. repetitive.

C. individualized.

D. routine.

E. standardized.

C. individualized. When service is individualized, standards cannot predict every adjustment that might be needed for a specific situation. This is when empowering employees to determine the best way to meet customer needs is particularly important.

90. The old cliché, "Service with a smile," recognizes the fact that

A. service providers need to be pleasant even if the customer is not.

B. smiling is contagious.

C. service providers should smile and not think.

D. life is too short to be ugly.

E. services are perishable but a smile is forever.

A. service providers need to be pleasant even if the customer is not. One reason service jobs can be difficult is that service employees must remain pleasant and courteous even when customers are not.

91. Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by

A. empowering consumers.

B. providing support and incentives for their employees.

C. directing zone of tolerance limits for employees.

D. effective customer screening.

E. forcing rude customers to use technology.

B. providing support and incentives for their employees. One reason service jobs can be difficult is that service employees must remain pleasant and courteous even when customers are not. Managers can help frontline employees to manage angry customers with courtesy by providing emotional support and incentives.

92. After observing a customer verbally abuse a waiter, the first thing a manager can do to ensure quality service is to

A. throw the customer out of the restaurant.

B. assume the waiter provoked the attack and respond accordingly.

C. provide emotional support to the waiter.

D. review the delivery support system.

E. make sure services delivery expectations are consistent and coherent throughout the organization.

C. provide emotional support to the waiter. One reason service jobs can be difficult is that service employees must remain pleasant and courteous even when customers are not. Managers can help frontline employees to manage angry customers with courtesy by providing emotional support and incentives.

93. Managers of fast food restaurants struggle with a rapid turnover of personnel. Employee turnover rates of 100 to 200 percent annually are common. The work environment is difficult and customers can often be demanding. One of the first steps managers can take to help workers deliver quality service is to

A. ban abusive customers from their restaurants.

B. reward service providers based solely on the speed of service.

C. provide emotional support and concern for their employees.

D. review the delivery support system.

E. make sure services delivery expectations are consistent and coherent throughout the organization.

C. provide emotional support and concern for their employees. One reason service jobs can be difficult is that service employees must remain pleasant and courteous even when customers are not. Managers can help frontline employees to manage angry customers with courtesy by providing emotional support and incentives.

94. __________ represents the systems and equipment resources that service providers need to be able to close the delivery gap.

A. Service infrastructure

B. Quality mechanics

C. Instrumental support

D. Dynamic support

E. Customer interface architecture

C. Instrumental support This is the definition of instrumental support—the systems, equipment, and tools frontline employees need to do their jobs.

95. 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.

A. maintenance schedule

B. instrumental support

C. equipment inventory

D. service infrastructure

E. customer expectation mechanisms

B. instrumental support Rob is experiencing a lack of proper instrumental support—the systems, equipment, and tools frontline employees need to do their jobs.

96. Today, almost every sales rep can immediately check the company’s inventory and production scheduling electronically. This allows sales reps to sell what is available and make promises to customers that they can keep. This technology has improved service delivery through

A. access to a wide variety of services.

B. greater control by customers over service delivery.

C. increased zone of tolerance.

D. greater ability to obtain information.

E. saving customers time.

D. greater ability to obtain information. The increased information available due to technology makes it easier for sales reps to set customer expectations appropriately regarding product availability.

97. Although firms such as restaurants have difficulty controlling service quality from day to day, they do have control over

A. how they communicate the services they promise.

B. the price of ingredients.

C. the attitudes of customers.

D. the way customers view them compared to competitors.

E. the knowledge gap consumers create.

A. how they communicate the services they promise. Restaurants cannot control the prices they pay for ingredients or their customers’ attitudes, but they can control their communication with customers, which will influence expectations and perceptions.

98. If a firm promises more than it can deliver,

A. it has created an empowerment gap.

B. consumers will have a knowledge gap.

C. it creates a communication gap.

D. it needs to enact a voice-of-customer program.

E. perishability becomes a problem.

C. it creates a communication gap. A communication gap is the difference between promised and actual service.

99. The __________ gap can be reduced by managing consumers’ expectations.

A. knowledge

B. communication

C. delivery

D. standards

E. empowerment

B. communication A communication gap is the difference between promised and actual service. By making realistic promises, the firm can manage expectations.

100. Physicians regularly overstate the expected recovery time from surgery, knowing that managing patients’ expectations will reduce the __________ gap associated with their service.

A. knowledge

B. empowerment

C. delivery

D. standards

E. communication

E. communication A communication gap is the difference between promised and actual service. By making pessimistic predictions for recovery time, doctors can manage patients’ expectations.

101. Dopson’s Hardware was in bad financial shape. It owed so much money that vendors put the store on a cash-only delivery basis. As a result, the store had a dwindling inventory of goods to sell. Whenever a customer asked about an unavailable item, the owner directed the sales staff to say that it was on backorder and would be in stock next week. When the customer returned, the item was still unavailable. The owner’s policy created a(n) __________ gap.

A. knowledge

B. empowerment

C. communication

D. standards

E. tangibility

C. communication Dopson’s Hardware was making promises it could not keep by saying that things would be in stock next week when that was not the case. This difference between promised service and actual service created a communication gap.

102. Effective service recovery entails all of the following EXCEPT

A. listening to the customer.

B. estimating the damage.

C. providing a fair solution.

D. resolving the problem quickly.

E. all of these are effective service recovery techniques.

B. estimating the damage. Effective service recovery includes listening to the customer, providing a fair solution, and resolving the problem quickly.

103. Effective service recovery efforts can lead to all of the following EXCEPT

A. increased purchase intentions.

B. increased positive word of mouth.

C. increased customer satisfaction.

D. lower levels of satisfaction than prior to the service failures.

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

E. increased dependence on technology to prevent future service failures. Effective service recovery can positively influence purchase intensions, positive word of mouth, and customer satisfaction; however, satisfaction may still be lower than it was before the service failure.

104. Sam was called in to meet with his boss, Tricia. He was afraid he was going to be fired for the mistake he had made dealing with an important customer of the store. Instead, Tricia explained that he had handled the situation well, listening to the customer and finding a fair solution. Tricia commented, "Even more importantly, working the way you did to correct the error could result in __________."

A. a smaller empowerment gap

B. increased customer purchases and positive word of mouth

C. a full refund for the customer

D. a larger service gap

E. less instrumental support

B. increased customer purchases and positive word of mouth Sam’s effective service recovery could have saved the relationship with the customer, leading to increased levels of purchasing and positive word of mouth.

105. When confronted with an angry and emotional customer, the best first step toward service recovery is to

A. call security in case it is necessary to escort the person from the building.

B. match the person’s voice in intensity and volume to gain control of the confrontation.

C. 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.

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

E. ask a coworker to take over handling the complaint to get a neutral perspective.

D. listen carefully and with empathy until the customer feels he or she has been heard. The best first step with an angry customer is to listen carefully and give the customer a chance to be heard.

106. Service employees at the airlines’ flight cancellation desks frequently encounter travelers who get emotional about canceled or delayed flights. The first thing these employees should do is to

A. listen to the customer.

B. contact a supervisor.

C. estimate the damage.

D. provide a fair solution.

E. resolve the problem quickly.

A. listen to the customer. The best first step with an angry customer is to listen carefully and give the customer a chance to be heard.

107. When travelers are bumped from overbooked flights, they are frequently offered vouchers good for future travel. The dollar value of the voucher is the airline’s estimate of

A. perishable value.

B. distributive fairness.

C. empowerment.

D. procedural justice.

E. the size of the knowledge gap.

B. distributive fairness. Distributive fairness is the evaluation of fairness of the outcome—i.e., a fair compensation for whatever loss or inconvenience occurred as a result of the service problem.

108. Because customers have different needs and expectations, the key to distributive fairness in service recovery is to

A. listen to the customer.

B. contact a supervisor quickly.

C. estimate the damage.

D. provide a fair solution.

E. resolve the problem quickly.

A. listen to the customer. Distributive fairness is the evaluation of fairness of the outcome—i.e., a fair compensation for whatever loss or inconvenience occurred as a result of the service problem. Only by listening to the customer can the service provider understand what the customer will consider a fair result.

109. 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. intangible fairness.

B. distributive fairness.

C. procedural fairness.

D. service fairness.

E. empowerment fairness.

B. distributive fairness. Distributive fairness is the evaluation of fairness of the outcome—i.e., a fair compensation for whatever loss or inconvenience occurred as a result of the service problem. In this case, Randall did not feel that he was compensated for the additional cost he had to bear due to the problem with his reservation.

110. 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?

A. The nature or severity of the service failure.

B. The customer’s experience with other firms.

C. The firm’s policy on service recovery.

D. Observed treatment of other customers.

E. Stories of service recovery told by friends and family.

C. The firm’s policy on service recovery. Customers do not care much about firm’s policies if these policies seem unreasonable. The other factors, though, will affect customers’ perceptions of fairness.

111. __________ refers to the perceived fairness of the process with which a firm handles customer complaints.

A. Procedural fairness

B. Intangible fairness

C. Distributive fairness

D. Service fairness

E. Empowerment fairness

A. Procedural fairness Fairness is assessed based on the outcome (distributive fairness) and the process by which the outcome was determined (procedural fairness).

112. Because of __________, many companies have altered their "no questions asked" return policies to include time limits, restocking fees, and store-credit-only refunds.

A. government regulations

B. Better Business Bureau guidelines

C. high costs

D. accounting concerns

E. well-publicized liability cases

C. high costs Costs involved in returns have led some retailers to restrict customers’ ability to return merchandise.

113. One of the reasons service failures need to be addressed quickly is to

A. minimize the zone of tolerance.

B. increase empowerment zones.

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

D. avoid a situational ethics conflict.

E. keep management from finding out what happened.

C. avoid negative word-of-mouth from upset customers. The longer a service problem remains unresolved, the more likely customers will complain to others.

114. The service dimension called __________ refers to the ability of the firm’s employees to convey trust and confidence.

A. assurance

B. reliability

C. responsiveness

D. empathy

E. tangibles

A. assurance Assurance refers to employees’ knowledge and courtesy and their ability to convey trust and confidence.

115. 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. reliability

B. responsiveness

C. assurance

D. empathy

E. tangibles

A. reliability Reliability is the ability to perform the service dependably and accurately.

116. 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. tangibles

B. reliability

C. responsiveness

D. assurance

E. empathy

A. tangibles The tangibles building block of service quality refers to the appearance of physical facilities, equipment, personnel, and communication materials.

117. When John checked into his Orlando hotel, the front desk clerk informed John that his room would not be ready for another twenty minutes. John decided he didn’t mind waiting, because he had arrived well ahead of the standard check-in time. John didn’t mind waiting twenty minutes because this wait fell within his __________, the area between his expectations regarding desired service and the minimum level of service he will accept.

A. zone of tolerance

B. delivery gap

C. zone of intolerance

D. service gap

E. patience zone

A. zone of tolerance The zone of tolerance is the difference between what a customer really wants and what the person will accept before going elsewhere.

118. 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.

A. zone of tolerance

B. delivery gap

C. zone of intolerance

D. service gap

E. patience zone

A. zone of tolerance The zone of tolerance is the difference between what a customer really wants and what the person will accept before going elsewhere.

119. Which of the following is NOT a recommended strategy for service recovery?

A. listening to the customer

B. finding a fair solution

C. resolving problems quickly

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

E. following procedural fairness when solving problems

D. silencing an irate customer before the individual makes any angry outbursts Customers often need to be heard; the best policy is to listen with empathy, even if the customer is angry.

120. 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. employee incentives.

C. emotional support.

D. line extensions.

E. the delivery gap.

A. instrumental support. Instrumental support refers to systems and equipment needed by service employees to do their jobs well.

121. 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

A. procedural fairness.

B. variability.

C. organizational fairness.

D. intangibility.

E. explanatory fairness.

A. procedural fairness. Procedural fairness refers to the perceived fairness of the process used to resolve issues. In this case, since each customer was hearing a different process description, customers would perceive that procedural fairness did not exist.

122. 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. knowledge gap

C. performance gap

D. communication gap

E. recovery gap

A. standards gap The standards gap pertains to the difference between the firm’s perceptions of customers’ expectations and the service standards it sets. By setting appropriate service standards and measuring service performance, firms can attempt to close this gap.

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