Test Bank Answers Chapter 8 Service Marketing Strategies

Chapter 8: Service marketing strategies

Test Bank

Type: multiple choice question

Title: Chapter 08 Question 01

1) There are four readily accepted distinguishing characteristics of services that create unique strategic challenges. They are

a. inflexibility, heterogeneity, perishability, inseparability.

b. intangibility, heterogeneity, perishability, inseparability.

c. intangibility, heterogeneity, perishability, inscrutability.

d. intangibility, homogeneity, perishability, inseparability.

Type: multiple choice question

Title: Chapter 08 Question 02

2) _______ implies that services cannot be touched and felt. It has to be experienced by the customers.

a. Inseparability

b. Heterogeneity

c. Intangibility

d. Perishability

Type: multiple choice question

Title: Chapter 08 Question 03

3) Even the most intangible services have certain _______ aspects.

a. intangible

b. tangible

c. emotional

d. fixed

Type: multiple choice question

Title: Chapter 08 Question 04

4) _________ means that it is difficult to be a low-cost provider or to differentiate for positioning purposes.

a. Heterogeneity

b. Perishability

c. Intangibility

d. Inseparability

Type: multiple choice question

Title: Chapter 08 Question 05

5) The inconsistencies brought about by changes in mood states and emotions of employees can provide differences in interactions. The key challenge is “consistency”. Hence service companies must

a. standardize as much as possible.

b. at the same time allow enough flexibility.

c. standardize as much as possible and at the same time allow enough flexibility.

d. None of the options given are correct.

Type: multiple choice question

Title: Chapter 08 Question 06

6) ________ implies that customers are co-producers / designers.

a. Perishability

b. Heterogeneity

c. Intangibility

d. Inseparability

Type: multiple choice question

Title: Chapter 08 Question 07

7) ________ implies that it is essential to get cost and/or differentiation strategies right.

a. Perishability

b. Inseparability

c. Heterogeneity

d. Intangibility

Type: multiple choice question

Title: Chapter 08 Question 08

8) Besides Product, Price, Place, and Promotion, what are the remaining three marketing mix “P” elements associated with services?

a. People, philosophy, and process

b. People, practice and process

c. Politics, people, and process

d. People, physical evidence, and process

Type: multiple choice question

Title: Chapter 08 Question 09

9) Parasuraman et al. (1991) have found that service quality is a multi-faceted construct with ______ dimensions.

a. two

b. three

c. four

d. five

Type: multiple choice question

Title: Chapter 08 Question 10

10) Parasuraman et al. (1991) have found that service quality is a multi-faceted construct with five dimensions. Which is not one of them?

a. Reliability

b. Responsiveness

c. Assurance

d. Warranty

Type: multiple choice question

Title: Chapter 08 Question 11

11) What do Parasuraman et al. (1991) mean by assurance when he talks of the different dimensions of service quality?

a. Employee competence

b. Courtesy

c. Trustworthiness

d. All of the options given are correct.

Type: multiple choice question

Title: Chapter 08 Question 12

12) A survey instrument used to assess customer perceptions of service quality is called ______

a. CETSCALE.

b. SERVQUAL.

c. SERVINSIST.

d. QUALMEAS.

Type: multiple choice question

Title: Chapter 08 Question 13

13) Which of the following is not one of Vargo and Lusch’s (2004) foundational premises which show differences between goods-centred and service-centred logic?

a. Direct exchange masks the fundamental unit of exchange.

b. Knowledge in the fundamental source of competitive advantage

c. The enterprise can only make value propositions.

d. The service-centred view is customer oriented and relational.

Type: multiple choice question

Title: Chapter 08 Question 14

14) Removing certain tasks involving little customer contact from frontline or front office personnel, standardizing them, and moving them into remote back-office locations is called _______

a. coupling.

b. BPR.

c. cost saving.

d. decoupling.

Type: multiple choice question

Title: Chapter 08 Question 15

15) There are four different competitive approaches to decoupling. Which is not one of them?

a. Cost leaders

b. Stripped down service

c. Cheap convenience

d. Premium service

Type: multiple choice question

Title: Chapter 08 Question 16

16) A firm that decouples to support front office personnel, with cost reduction as a secondary concern is called ______

a. dedicated service.

b. stripped down service.

c. premium service.

d. cost leaders.

Type: multiple choice question

Title: Chapter 08 Question 17

17) Star Alliance is an example of

a. decoupling.

b. mergers.

c. creative strategic alliance.

d. coupling.

Type: multiple choice question

Title: Chapter 08 Question 18

18) There are two main types of strategic alliances for services; they are

a. brand sharing, sales sharing.

b. personnel sharing, sales sharing.

c. personnel sharing, asset sharing.

d. brand sharing, asset sharing.

Type: multiple choice question

Title: Chapter 08 Question 19

19) Citibank developed a relationship with American Airlines to offer its credit card users benefits in the form of frequent flyer miles. This is an example of

a. asset sharing alliance.

b. brand sharing alliance.

c. both of the above.

d. None of the options given are correct.

Type: multiple choice question

Title: Chapter 08 Question 20

20) 7/11 has a relationship with Citgo petrol stations to share the cost of floor space. This is an example of

a. asset sharing alliance.

b. brand sharing alliance.

c. asset sharing alliance and brand sharing alliance.

d. None of the options given are correct.

Type: multiple choice question

Title: Chapter 08 Question 21

21) Which of the following is true about outsourcing?

a. A firm must stay away from outsourcing.

b. A firm must outsource all it can.

c. Whatever is not a part of the firm’s core competence becomes a candidate for outsourcing.

d. Whatever is a part of the firm’s core competence becomes a candidate for outsourcing.

Type: multiple choice question

Title: Chapter 08 Question 22

22) Outsourcing often involves the combination of contract workers with regular personnel. This has the following problem.

a. Contract workers are not efficient.

b. Contract workers are lazy.

c. There could be an employee role conflict.

d. Regular service personnel would not be loyal.

Type: multiple choice question

Title: Chapter 08 Question 23

23) Coopetition would appear to have the greatest promise for use by which kind of service firm?

a. Small service firms

b. Medium-sized service firms

c. Large service firms

d. Pure service firms

Type: multiple choice question

Title: Chapter 08 Question 24

24) Which of the below is not one of the steps suggested by Stuart (2006) in the seven steps model for use by service managers to offer not just a good, but an outstanding service experience?

a. Never to lose sight of the main stage

b. To communicate extensively with visual cues

c. To continuously strive for authenticity and integrity

d. Offer great prices all the time

Type: multiple choice question

Title: Chapter 08 Question 25

25) Which rule of employee management has worked well for Southwest Airlines, Walt Disney Corporation?

a. Pay the best salary in the industry.

b. Assure lifetime employment.

c. Follow the perform or fire policy.

d. Create an environment in which employees have treated each other in the same way as they would treat customers.

Type: multiple choice question

Title: Chapter 08 Question 26

26) ________ appears to be the key ingredient in the concept of satisfaction of customers of service firms.

a. Satisfaction

b. Fullness of service

c. Value offering

d. Meeting customer’s expectations

Type: multiple choice question

Title: Chapter 08 Question 27

27) Which is the right order?

a. Perceptions of service quality, customer satisfaction, positive purchase intentions, sales and profits

b. Customer satisfaction, positive purchase intentions, sales and profits, perceptions of service quality

c. Perceptions of service quality, positive purchase intentions, customer satisfaction, sales and profits

d. Perceptions of service quality, customer satisfaction, positive purchase intentions, profits, sales

Type: multiple choice question

Title: Chapter 08 Question 28

28) What is the important first step of Stuart’s (2006) “great performance” model for service profitability?

a. Use experimentation to move towards excellence.

b. Strive continuously for authenticity and integrity.

c. Never lose sight of the main stage.

d. Communicate extensively with visual cues.

Type: multiple choice question

Title: Chapter 08 Question 29

29) According to Stuart (2006), the key to providing a great performance is so that the service firm can create _____________ the customer.

a. a financial relationship with

b. an emotional bond with

c. a fun experience for

d. a memorable experience for

Type: multiple choice question

Title: Chapter 08 Question 30

30) Which is not one of the four critical elements of interconnected technologies capabilities represented in Edelman and Singer (2015)?

a. Automation

b. Proactive personalization

c. The great performance

d. Contextual interactions

Type: multiple choice question

Title: Chapter 08 Question 31

31) Arnold et al (1999) found that global wireless communications were suffering from which problem?

a. They meant nothing to all people.

b. They meant few things to many people.

c. They meant few things to few people.

d. They meant all things to all people.

Type: multiple choice question

Title: Chapter 08 Question 32

32) Ford et al (2001) found that service companies must not only meet customer expectations, _____them.

a. manage

b. minimize

c. support

d. exceed

Type: multiple choice question

Title: Chapter 08 Question 33

33) Arnold et al (1999) found that firm success was facilitated by a four-pronged approach to segmentation. Which is not one of them?

a. Identify attractive customers.

b. Restructure business to cater to their needs.

c. Create sustainable perceptual differentiation.

d. None of the options given are correct.

Type: multiple choice question

Title: Chapter 08 Question 34

34) Zeithaml et al. (2001) found that a number of successful service firms have actually created customer______

a. prisms.

b. square.

c. circles.

d. pyramids.

Type: multiple choice question

Title: Chapter 08 Question 35

35) Firms like Fedex and Bank of America cater to the more ______ customers and downplay the efforts to reach the less_______ segments.

a. loss making, loss making

b. older, newer

c. profitable, profitable

d. rich, poorer