Service As The Core Offering Ch.10 Test Bank Docx

Marketing Management, 3e (Marshall)

Chapter 10 Service as the Core Offering

1) A service is a product in the sense that it represents a bundle of benefits that can satisfy customer wants and needs with physical form.

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-01 Understand why service is a key source of potential differentiation.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

2) It is widely accepted that today we operate in an economy that is increasingly focused on tangible offerings—goods—instead of just services.

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-01 Understand why service is a key source of potential differentiation.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

3) In today's workplace, everyone is involved in service in some way, and everyone has customers either outside or inside the firm, or both.

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-01 Understand why service is a key source of potential differentiation.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

4) A service-centered perspective is very consistent with a customer-centric approach in which people, processes, systems, and other resources are to be aligned to best serve customers.

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-01 Understand why service is a key source of potential differentiation.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

5) Services possess several distinct characteristics that are different from those of physical goods, including intangibility, inseparability, variability, and perishability.

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

6) Customer trial is one way to overcome the problem of marketing an intangible service.

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

7) Employees play a critical role in the success of services because of their inseparability and variability.

Difficulty: 1 Easy

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

8) A fundamental rule in marketing is to set high customer expectations.

Difficulty: 2 Medium

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

9) One of the causes of switching behavior is unfair pricing.

Difficulty: 1 Easy

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

10) As noted in the text, Caesars Entertainment has found that its ROI for customers in the "Zone of Defection" is considerably higher than in the other zones.

Difficulty: 1 Easy

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

11) The ultimate Caesars customer is the "apostle"; they are highly satisfied, fiercely loyal, frequent Caesars guests who serve as strong advocates for the Caesars experience to friends and acquaintances.

Difficulty: 2 Medium

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

12) Research indicates that investing in indifferent customers to improve their satisfaction truly maximizes their profitability to a brand.

Difficulty: 2 Medium

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

13) Providers of professional services such as doctors, lawyers, and accountants use their degrees and designations to convey a level of trust to a purchaser.

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-04 Describe the continuum from pure goods to pure services.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

14) There is a debate about whether students in business education are "customers" or products that need to be branded.

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-04 Describe the continuum from pure goods to pure services.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

15) Services tend to exhibit high experience and credence attributes.

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-04 Describe the continuum from pure goods to pure services.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

16) When Dominoes promises delivery within 30 minutes, but it actually takes 45 minutes, Dominoes is demonstrating gap 1: management's perceptions of customer service expectations versus actual customer expectations of service.

Difficulty: 2 Medium

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

17) The fifth and final service gap involves customers' perceived service versus actual customer expectations of service.

Difficulty: 1 Easy

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

18) Service failure, when properly handled through service recovery, does not necessarily impact customer satisfaction.

Difficulty: 1 Easy

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

19) Exceeding customer expectations is often referred to as customer delight.

Difficulty: 1 Easy

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

20) The ability to provide prompt service and to respond quickly to customer requests is called reliability.

Difficulty: 2 Medium

Topic: Measuring Service Quality

Learning Objective: 10-06 Measure service quality through use of SERVQUAL.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

21) Of the five dimensions of service quality, empathy means considering things from a service provider's point of view.

Difficulty: 2 Medium

Topic: Measuring Service Quality

Learning Objective: 10-06 Measure service quality through use of SERVQUAL.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

22) In a service blueprint, "moments of truth" occur below the line of visibility.

Difficulty: 1 Easy

Topic: Service Blueprinting

Learning Objective: 10-07 Understand service blueprinting and how it aids marketing managers.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

23) A service is a product in a sense that it represents a bundle of benefits that can satisfy customer wants and needs, yet it does so without ________.

A) people

B) price perceptions

C) physical form

D) time utility

E) ethics

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-01 Understand why service is a key source of potential differentiation.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

24) The percentage of jobs in the United States that are service-related is more than ________ of all jobs.

A) 20 percent

B) 40 percent

C) 60 percent

D) 80 percent

E) 100 percent

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-01 Understand why service is a key source of potential differentiation.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

25) Which of the following is TRUE of the service sector?

A) Jobs represented in the service sector of the economy exclude categories such as intellectual property and consulting.

B) In terms of U.S. gross domestic product, services account for less than 60 percent and that number is declining.

C) Changing U.S. demographics represent a major driver for why the service sector is thriving.

D) The long-term shift from service-producing to goods-producing employment is expected to continue.

E) Today, we operate in an economy that seldom focuses on intangible offerings.

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-01 Understand why service is a key source of potential differentiation.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

26) Many firms are reluctant to invest in great service, largely because ________.

A) it is difficult to change employees' actions

B) consumers usually are not aware that they are receiving great service

C) a service's quality can only be as good as that of the provider himself or herself

D) it takes time and patience before a return on the investment is noticeable

E) of the inseparability and perish ability of services

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-01 Understand why service is a key source of potential differentiation.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

27) Which axiom of service-dominant logic applies to this statement? Customers don't buy a car (product)—they buy the company's ability to add value through a defined set of benefits.

A) Service is the fundamental basis of exchange.

B) Value is co-created by multiple parties, including the company and the customer.

C) A unique experience is created when the customer interacts with the company's marketing efforts and product.

D) Value is defined by the customer.

E) A customer-centric approach has been supplanted by a newer service-dominant approach.

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-01 Understand why service is a key source of potential differentiation.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

28) Which of the following is NOT a distinct characteristic of services that is different from physical goods?

A) variability

B) perishability

C) reliability

D) intangibility

E) inseparability

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

29) Services are produced and consumed at the same time and cannot be detached from their provider. This characteristic of service is called ________.

A) intangibility

B) perishability

C) variability

D) inseparability

E) reliability

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

30) A service cannot be experienced through the physical senses. This property represents the ________ of services.

A) inseparability

B) variability

C) intangibility

D) perishability

E) reliability

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

31) The ________ of performance and consumption of services heightens the role of human service providers in a customer's experience.

A) inseparability

B) intangibility

C) variability

D) perishability

E) tangibility

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

32) Which of the following is one of the characteristics of services?

A) separability

B) variability

C) tangibility

D) reparability

E) durability

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

33) As a characteristic of services, intangibility refers to the fact that a service ________.

A) cannot be seen, heard, tasted, or felt by a customer

B) is produced and consumed at the same time

C) can be experienced through the physical senses

D) can be experienced by a customer before utilization

E) quality can only be as good as that of the provider himself or herself

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

34) ________ of a service means that because it can't be separated from the provider, a service's quality can only be as good as that of the provider.

A) Separability

B) Intangibility

C) Variability

D) Perishability

E) Tangibility

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

35) To enable customers to draw conclusions about a brand's service, service companies face the challenge of making their intangible services seem ________.

A) more tangible

B) more imperceptible

C) less inseparable

D) less reliable

E) less perishable

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

36) One way to make a service more tangible is to have customers ________.

A) read about it on a website

B) experience the service through a trial

C) receive a brochure that highlights the advantages and disadvantages of the service

D) Google the service and see who provides the services in their area

E) use the service at a regular basis

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

37) A service is described as being inseparable because ________.

A) it can be easily separated from its provider

B) it can be experienced by a customer before utilization

C) it cannot be seen, heard, tasted, or felt by a customer

D) it is produced and consumed at the same time

E) its quality is only as good as that of the provider himself or herself

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

38) It may be more accurate to think of a service as being ________ rather than produced.

A) designed

B) modified

C) performed

D) created

E) developed

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

39) The four characteristics of services are that they are ________.

A) inseparable, perishable, intangible, and variable

B) tangible, quantifiable, reliable, and durable

C) variable, dependable, repairable, and customized

D) customized, standardized, formalized, and categorized

E) specialized, tangible, standardized, and perishable

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

40) The enhanced role of human service providers in a customer service experience enables service providers to ________.

A) allow for new products to be promoted

B) stimulate the formation of the same experience for all people

C) offer considerable customization in delivering a service

D) create profit pockets by encouraging the ordering of more expensive options

E) help customers experience a service before utilization

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

41) With services, continual investment in training, retraining, and good management of people is required if ________.

A) variability is to be consistently low

B) tangibility is to be consistently low

C) inseparability is to be consistently high

D) intangibility is to be consistently high

E) perishability is to be consistently high

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

42) Once a firm has invested in continuous process improvement and quality control in operations, goods, in general, tend to be much more ________ than services.

A) perishable

B) standardized

C) distinguished

D) intangible

E) customized

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

43) Fluctuating demand is related to ________ of services.

A) durability

B) variability

C) perishability

D) flexibility

E) tangibility

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

44) Perishability of a service means that ________.

A) a service's quality can only be as good as that of the provider himself or herself

B) a service cannot be stored or saved up for future use

C) a service is produced and consumed at the same time

D) a service must be handled and stored with care

E) a service cannot be separated from its provider

Difficulty: 1 Easy

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

45) The service-profit chain is designed to help managers better understand the key linkages in a service delivery system that drive ________.

A) production and distribution

B) customer loyalty, revenue growth, and higher profits

C) brand awareness and economies of scope

D) marketing and sales

E) customer satisfaction, promotion, and higher demand

Difficulty: 1 Easy

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

46) Treating employees as customers and developing systems and benefits that satisfy their needs is called ________.

A) marketing for profit

B) employee induction

C) market orientation

D) internal marketing

E) green marketing

Difficulty: 2 Medium

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

47) If a firm is considered customer-centric, it implies that the company ________.

A) does marketing research on all market segments and creates ads that focus on individual market segments

B) develops products and services that sell well in both large and small markets including some international markets

C) gives more importance to customers in everything that takes place both inside and outside the firm

D) places employees and customers at the top of the organizational chart

E) treats employees as customers and develops systems and benefits that satisfy their needs

Difficulty: 2 Medium

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

48) Firms that are customer-centric exhibit a high degree of customer orientation, which means that they ________.

A) instill an organization-wide focus on understanding customers' requirements

B) generate an understanding of the marketplace and keep that information confidential

C) align system capability externally so that an organization can respond with competitively similar goods and services

D) develop mass-produced goods and services that sell well in both large and small markets

E) treat employees as customers and develop systems and benefits that satisfy their needs

Difficulty: 2 Medium

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

49) When a company follows a customer-centric philosophy with a high degree of customer orientation, it is likely to ________.

A) keep everyone up-to-date on the progress of relevant legislation

B) generate an understanding of the marketplace and disseminate that knowledge to everyone in the firm

C) produce products solely for the loyal customers from higher socio-economic status

D) place customers at the top of the organizational chart

E) align system capability externally so that the organization can respond with competitively similar goods and services

Difficulty: 2 Medium

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

50) An organization's focus on internal service quality implies that employees ________.

A) are less likely to be satisfied

B) lack job security

C) are highly reward-oriented

D) hold a customer mind-set

E) need motivation to change

Difficulty: 1 Easy

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

51) In the service-profit chain, customer satisfaction leads to customer loyalty, and results in ________.

A) revenue growth and profitability

B) changes in the organizational structure

C) competitive intelligence for future growth

D) competitive retaliation based on service strategy

E) external service value

Difficulty: 1 Easy

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

52) José, an employee of a company that has worked hard to have a customer mind-set, understands that ________.

A) whether internal or external to the firm, satisfying customers is central to doing his job well

B) all members of the firm must get to work on time and start their computers by 8:30 a.m.

C) it is essential to generate an understanding of the marketplace and keep that information confidential

D) products must be produced solely for loyal customers from higher socio-economic status

E) system capability must be aligned externally so that the organization can respond with competitively similar goods and services

Difficulty: 2 Medium

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

53) One of the central concepts of the service-profit chain is to ________.

A) enable a firm's customers to participate and contribute in strategic decision making

B) create an environment in which all employees can be successful

C) implement market penetration strategies in order to increase sales and profitability

D) create elements of change within people to do things above their capabilities

E) encourage employees to engage in groupthink and to resist any change to existing systems

Difficulty: 2 Medium

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

54) As noted in the text, Caesars Entertainment points with pride to the fact that everyone in the firm understands and can articulate its branding and values. This would be an indication that Caesars is devoted to ________.

A) creating self-actualization for management

B) providing work-focused training for valued employees

C) internal marketing to achieve the goals in the service-profit chain

D) external marketing to achieve the goals of stress-relief ergonomics

E) producing products that are similar to that of its competitors

Difficulty: 2 Medium

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

55) When a company underpromises but overdelivers with respect to its services, it is said to be practicing ________ management.

A) inferior service

B) change

C) customer salience

D) customer expectations

E) total quality

Difficulty: 2 Medium

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

56) In the service-profit chain, external service value leads to all of the following EXCEPT ________.

A) customer satisfaction

B) employee turnover

C) customer loyalty

D) revenue growth

E) profitability

Difficulty: 1 Easy

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

57) A frequent Caesars guest who serves as a strong advocate for the Caesars experience to friends and acquaintances is referred to as a(n) ________.

A) whistleblower

B) pacifier

C) apostle

D) champion

E) polemicist

Difficulty: 1 Easy

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

58) As discussed in the text, Caesars Entertainment has found that customers who fall into the zone of ________ spend considerably more money and provide a substantially greater return on customer investment than others.

A) defection

B) affection

C) indifference

D) competition

E) retention

Difficulty: 1 Easy

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

59) The zone of defection describes the area of ________.

A) slightly satisfied customers

B) extremely dissatisfied customers

C) loyal customers

D) apostles

E) very satisfied customers

Difficulty: 2 Medium

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

60) One of the difficulties associated with search qualities for consumers when evaluating different service offerings is ________.

A) services are not offered in a store

B) customers do not truly know how a service performs until after the sale

C) it is difficult to compare services online

D) a service may be inseparable from its price

E) customers find it difficult to analyze services since they have too many search attributes

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-04 Describe the continuum from pure goods to pure services.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

61) Compared to products, services are ________.

A) low in credence qualities

B) separable in nature

C) easy to evaluate

D) low in search qualities

E) tangible in nature

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-04 Describe the continuum from pure goods to pure services.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

62) Sometimes, customers can tell if they received good service. For example, vacations, haircuts, and restaurants all have ________ attributes that allow customers to decide whether they will repeat the purchase another time.

A) purchasable

B) tangible

C) focused

D) experience

E) search

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-04 Describe the continuum from pure goods to pure services.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

63) When a customer cannot make a reasonable evaluation of the quality of a service even after use because they lack expertise, this relates to a service's ________ attributes.

A) secondary

B) credence

C) search

D) focused

E) observable

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-04 Describe the continuum from pure goods to pure services.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

64) The assessment of which of the following attributes would require customers to have expertise not generally shared by the public?

A) search

B) credence

C) experience

D) observable

E) tangible

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-04 Describe the continuum from pure goods to pure services.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

65) Which of the following services is MOST likely to be high in credence attributes?

A) restaurants

B) hair cuts

C) tax preparation

D) child care facilities

E) vacations

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-04 Describe the continuum from pure goods to pure services.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

66) Some business schools take the approach that the primary customers for their business are ________.

A) professional health care service providers

B) graduate schools

C) parents and relatives of students

D) companies that hire their students

E) professors and lecturers

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-04 Describe the continuum from pure goods to pure services.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

67) Once a customer begins to have a positive experience with a service provider and builds a relationship with the firm, customer loyalty ________.

A) tends to be lesser for services than for goods

B) tends to be greater for services than for goods

C) is the same for services and goods

D) develops, but only for a temporary period in all cases

E) develops and increases regardless of future service experiences

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-04 Describe the continuum from pure goods to pure services.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

68) ________ represents a formalization of the measurement of customer expectations of a service compared to perceptions of actual service performance.

A) Customer delight

B) Service encounter

C) Service quality

D) Service excellence

E) Moment of truth

Difficulty: 1 Easy

Topic: Measuring Service Quality

Learning Objective: 10-04 Describe the continuum from pure goods to pure services.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

69) Exceeding customer expectations is often referred to as customer ________.

A) excellence

B) loyalty

C) essence

D) delight

E) satisfaction

Difficulty: 1 Easy

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

70) ________ is the period during which a customer interacts in any way with a service provider.

A) Service encounter

B) Moment of truth

C) Service period

D) Service quality

E) Time of service

Difficulty: 1 Easy

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

71) The face-to-face time between customer and service provider is often called the ________ because that is when customer judgments take place

A) goal line stand

B) moment of truth

C) moment of momentum

D) service ROI

E) service encounter

Difficulty: 1 Easy

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

72) The basis of the Gap model of Service Quality is the ________.

A) examination of the differences between the objectives of management and employees

B) elimination of gap between an organization's and its employees' perceptions of the customer experience

C) recognition of suitable techniques for resource management to achieve better service quality

D) identification and measurement of differences in five key areas of the service delivery process

E) improvisation of the face-to-face time between customer and service provider, often called the moment of truth

Difficulty: 2 Medium

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

73) In which of the following gaps of the Gap Model of Service Quality can a lack of the right customer data wreak havoc on service delivery?

A) Gap 1: management's perceptions of customer service expectations versus actual customer expectations of service

B) Gap 2: management's perceptions of customer service expectations versus the actual service quality specifications developed

C) Gap 3: actual service quality specifications versus actual service delivery

D) Gap 4: actual service delivery versus what the firm communicates it delivers

E) Gap 5: perceived service by customers versus actual customer expectations of service

Difficulty: 2 Medium

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

74) In the Gap Model of Service Quality, which gap asks whether a service is provided in the manner intended?

A) Gap 1: management's perceptions of customer service expectations versus actual customer expectations of service

B) Gap 2: management's perceptions of customer service expectations versus the actual service quality specifications developed

C) Gap 3: actual service quality specifications versus actual service delivery

D) Gap 4: actual service delivery versus what the firm communicates it delivers

E) Gap 5: perceived service by customers versus actual customer expectations of service

Difficulty: 2 Medium

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

75) The basis of the gap model is the identification and measurement of differences in ________ key areas of the service delivery process.

A) six

B) two

C) three

D) four

E) five

Difficulty: 1 Easy

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

76) A negative gap between ________ nearly always points to management and employees simply not getting the job done. This could be due to vague performance standards, poor training, or ineffective monitoring by management.

A) actual service quality specifications and actual service delivery

B) management's perception of customer service expectations and actual service quality specifications developed

C) management's perceptions of customer service expectations and actual customer expectations of service

D) actual service delivery and what the firm communicates it delivers

E) perceived service by customers and actual customer expectations of service

Difficulty: 2 Medium

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

77) Firms that employ service as a marketing strategy must plan ahead for service ________ and train employees to properly execute service recovery.

A) differentiation

B) specification

C) failure

D) orientation

E) encounter

Difficulty: 1 Easy

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

78) Which gap in the Gap Model of Service Quality fundamentally represents customer expectations management through marketing communications?

A) Gap 1: management's perceptions of customer service expectations versus actual customer expectations of service

B) Gap 2: management's perceptions of customer service expectations versus the actual service quality specifications developed

C) Gap 3: actual service quality specifications versus actual service delivery

D) Gap 4: actual service delivery versus what the firm promises it delivers

E) Gap 5: perceived service by customers versus actual customer expectations of service

Difficulty: 2 Medium

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

79) Gap 5 in the Gap Model of Service Quality is unique in that it is the only gap that occurs ________.

A) between management's and customers' expectations

B) between consumers' expectations and the perception of the service they receive

C) actual service quality specifications and actual service delivery

D) in small businesses but not in larger ones

E) actual service delivery and what a firm promises to deliver

Difficulty: 2 Medium

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

80) Among the dimensions of service quality, tangibles refer to ________.

A) the elements of communication that differentiate one service from another

B) the personality characteristics of service providers

C) the combination of price and quality of a service

D) the physical evidence of a service or the observable aspects

E) the knowledge and courtesy of employees

Difficulty: 1 Easy

Topic: Measuring Service Quality

Learning Objective: 10-06 Measure service quality through use of SERVQUAL.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

81) As a dimension of service quality, reliability means that ________.

A) a service is performed right the first time and every time

B) a service is variable and has different outcomes due to employee variation

C) a customer is repeatedly asked about his or her perception of the service quality

D) service providers think from customers' point of view

E) service providers are more willing and capable of providing prompt service

Difficulty: 2 Medium

Topic: Measuring Service Quality

Learning Objective: 10-06 Measure service quality through use of SERVQUAL.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

82) Jonathon works in a hair salon. When a customer approaches him about a problem with a service she had purchased, he made excuses for the service provider and did not offer to help fix the problem. Jonathon demonstrated poor ________.

A) reliability

B) tangibility

C) responsiveness

D) assurance

E) empathy

Difficulty: 2 Medium

Topic: Measuring Service Quality

Learning Objective: 10-06 Measure service quality through use of SERVQUAL.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

83) Mariette was highly regarded by her customers in the bakery because she was knowledgeable about the product and was always courteous to customers. Her customers' faith in her demonstrated ________.

A) reliability

B) tangibility

C) responsiveness

D) assurance

E) empathy

Difficulty: 2 Medium

Topic: Measuring Service Quality

Learning Objective: 10-06 Measure service quality through use of SERVQUAL.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

84) Of the five dimensions of service quality, the ability to convey trust and build a customer's confidence in the quality of a service refers to ________.

A) tangibles

B) assurance

C) reliability

D) responsiveness

E) empathy

Difficulty: 1 Easy

Topic: Measuring Service Quality

Learning Objective: 10-06 Measure service quality through use of SERVQUAL.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

85) In a service blueprint, activities are divided between those above and those below the line of ________ to a customer.

A) motivation

B) demarcation

C) visibility

D) distinction

E) threshold

Difficulty: 1 Easy

Topic: Service Blueprinting

Learning Objective: 10-07 Understand service blueprinting and how it aids marketing managers.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

86) A service blueprint borrows concepts from manufacturing and operations management to allow a service firm to ________.

A) map out a complete design and flow of all the activities related to customer service

B) map out the route that service people follow when they leave in the mornings (i.e., truck delivery service)

C) analyze feedback received from customers after the sale of a service to improve service quality

D) measure customers' expectations of service

E) assess the quality of services provided by an employee

Difficulty: 2 Medium

Topic: Service Blueprinting

Learning Objective: 10-07 Understand service blueprinting and how it aids marketing managers.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

87) Particularly in a teamwork environment, such as a restaurant, the advantage of a service blueprint is that it ________.

A) provides managers with a way to integrate service topics into the performance evaluation process

B) provides employees with a way to rate the performance of the other team members

C) shows employees how their individual roles fit into the entire system

D) focuses on the company organization as the foundation of work efforts

E) provides incentives to employees for their contributions

Difficulty: 2 Medium

Topic: Service Blueprinting

Learning Objective: 10-07 Understand service blueprinting and how it aids marketing managers.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

88) Explain the three basic axioms that support the concept of service-dominant logic.

Difficulty: 2 Medium

Topic: Understanding Services

Learning Objective: 10-01 Understand why service is a key source of potential differentiation.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

89) Define and give examples of the four characteristics of services: intangibility, inseparability, variability, and perishability.

Difficulty: 3 Hard

Topic: Understanding Services

Learning Objective: 10-02 Explain the characteristics that set services apart from physical goods.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

90) What is a service-profit chain? Explain how external service quality affects the chain.

Difficulty: 3 Hard

Topic: The Service-Profit Chain

Learning Objective: 10-03 Explain the service-profit chain and how it guides marketing management decisions about service.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

91) What is the Gap Model of Service Quality? Describe the five gaps and give examples of each.

Examples will vary.

Difficulty: 3 Hard

Topic: Measuring Service Quality

Learning Objective: 10-05 Discuss the elements of service quality and gap analysis.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation