University of Houston, Downtown MBA 6208 Chapter 14 Designing and Managing Services Which of the following is a characteristic of a service? The service is essentially tangible

University of Houston, Downtown

MBA 6208

Chapter 14 Designing and Managing Services

1. Which of the following is a characteristic of a service?
   1. The service is essentially tangible.
   2. The service does not result in the ownership of anything.
   3. The service's production is majorly tied to a physical product.
   4. Services are typically produced and consumed at different times.
   5. A client's presence is not required for rendering a service.

2. Which of the following is an example of a pure tangible good?
   1. massage
   2. shampoo
   3. e-mail
   4. restaurant meal
   5. air travel

3. To which of the following categories of services does a cell phone belong?
   1. major service with accompanying minor services
   2. major service with accompanying minor goods
   3. pure service
   4. pure tangible good
   5. tangible good with accompanying services

4. A computer falls into the                     category of service mix.
   1. pure tangible good
   2. tangible good with accompanying services
   3. hybrid
   4. major service with accompanying minor goods
   5. pure service

5. Which of the following is an example of a hybrid service?
   1. teaching
   2. car
   3. restaurant meal
   4. soap
   5. air travel

6. A flight with complementary drinks is an example of a                   .
   1. major service with accompanying minor goods and services
   2. pure service
   3. pure tangible good
   4. tangible good with accompanying services
   5. hybrid

7. Which of the following is an example of a pure service?
   1. air travel
   2. psychotherapy
   3. baby oil
   4. a laptop
   5. a restaurant meal

8. Which of the following is true for services?
   1. All services are people-based, while goods are equipment-based.
   2. Service providers can be both for-profit or nonprofit.
   3. All service companies follow the same process to deliver their services.
   4. The client's presence is a hindrance during the service delivery process.
   5. Service providers develop similar marketing programs for personal services and business services.

9. When banks try to make their positioning strategies tangible through the                dimension, they make sure the exterior and interior have clean lines, the layout of the desks and the traffic flow are planned carefully, and waiting lines are not overly long.
   1. people
   2. symbols
   3. equipment
   4. place
   5. communication material

10. Some services require that the client be present to conduct the service. Which of the following is an example of such a service?
    1. pest control
    2. furniture polishing
    3. surgery
    4. car repairing
    5. tax services

11. Services high in                       qualities have characteristics that the buyers can evaluate before purchase.
    1. search
    2. experience
    3. credence
    4. privacy
    5. storing

12. Services high in                      qualities have characteristics that the buyer can evaluate after purchase.
    1. privacy
    2. experience
    3. credence
    4. search
    5. stock

13. Services high in                      qualities are those services that have characteristics the buyer normally finds hard to evaluate even after consumption.
    1. trial
    2. search
    3. experience
    4. privacy
    5. credence

14. Which one of the following would be considered high in credence qualities?
    1. an interior of a house
    2. a restaurant
    3. a haircut
    4. psychotherapy
    5. a computer

15. Which one of the following is highest in search qualities?
    1. a play at a theater
    2. a meal at a restaurant
    3. a haircut
    4. psychotherapy
    5. a computer

16. Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are bought. This is known as the   aspect of services.
    1. inseparability
    2. intangibility
    3. variability
    4. perishability
    5. heterogeneity

17. Which of the following will most help service providers overcome the limitation of intangibility of services when positioning itself?
    1. using brand symbols
    2. sharing services
    3. working with larger groups
    4. cultivating nonpeak demand
    5. creating a service blueprint

18. A brand that is action-oriented and causes consumers to engage in physical actions appeals to the       dimension of brand experience.
    1. sensory
    2. affective
    3. behavioral
    4. intellectual
    5. social

19. BRZ Shoes targets the youth market with vibrant, visually appealing ads in modern styles. BRZ ads appeal to the

                     dimension of brand experience.

1. 1. sensory
   2. affective
   3. behavioral
   4. intellectual
   5. social

20. BRZ Shoes positions itself as a young, adventurous brand. Its logo and brand communication try to give consumers a feeling of excitement and bravery. These ads appeal to the            dimension of brand experience.
    1. sensory
    2. affective
    3. behavioral
    4. intellectual
    5. social

21.                      refer(s) to logos, symbols, characters, and slogans that service providers use in order to make the service and its key benefits more tangible.
    1. Brand engagement
    2. Brand orientation
    3. Brand elements
    4. Brand loyalty
    5. Brand equity

22. Which of the following is true regarding services?
    1. Services are typically produced, stored, and then consumed.
    2. Services are generally low in experience and credence qualities.
    3. Service providers develop similar marketing programs for personal services and business services.
    4. There is less risk associated with the purchase of services than with the purchase of goods.
    5. Provider-client interaction is a special feature of services marketing.

23. The fact that services are typically produced and consumed simultaneously is known as the        aspect of services.
    1. perishability
    2. intangibility
    3. heterogeneity
    4. inseparability
    5. variability

24. Service quality depends on who provides them, when and where they are provided, and to whom they are provided. Thus, services are highly .
    1. inseparable
    2. tangible
    3. variable
    4. perishable
    5. intangible

25. Which of the following will help a service provider overcome the limits imposed by the inseparability of services?
    1. using differential pricing
    2. working with larger customer groups
    3. providing complementary services
    4. concentrating on physical evidence and presentation
    5. standardizing the service process

26. Which of the following steps will help service firms to increase their quality control?
    1. standardizing the service-performance process
    2. providing complementary services to customers
    3. giving personnel authority in handling situations
    4. adopting differential pricing
    5. cultivating nonpeak demand

27. In order to map out the service process, the points of customer contact, and the evidence of service from the

customer's point of view, service firms should develop a                 .

1. 1. marketing plan
   2. service floor plan
   3. Gantt chart
   4. business plan
   5. service blueprint

28. Jake had an appointment at the doctor's office, but couldn't make it on time due to traffic. By the time he arrived, the

doctor had already begun with the next patient. This illustrates the

1. 1. variability
   2. heterogeneity
   3. perishability
   4. intangibility
   5. homogeneity

of services.

29. When a theater sells matinee movie tickets at low prices, it aims to shift some demand from the peak to the off-peak period. What is the strategy that the theater is said to be adopting?
    1. It is providing complementary services.
    2. It is increasing peak-time efficiency.
    3. It is using linear pricing.
    4. It is using differential pricing.
    5. It is sharing services.

30. A travel agency offers weekend discounts for car rentals. What can be deduced from this?
    1. It is increasing peak-time efficiency.
    2. It is using differential pricing.
    3. It is using linear pricing.
    4. It is cultivating peak demand.
    5. It is providing complementary services.

31. In which of the following cases is a service provider trying to increase nonpeak demand?
    1. A fine dining restaurant is promoting a breakfast service in addition to its popular lunch and dinner options.
    2. An upscale restaurant has a cocktail lounge where customers can wait until a table is ready.
    3. AXA Bank set up automated teller machines so that its customers could avoid standing in line.
    4. Chesterton College hired part-time teachers as enrollment increased significantly.
    5. Big department stores usually hire extra staff to handle the rush during the holiday season.

32. The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote mini- vacation weekends for non-business customers as well. What is the Caesar Park Hotel trying to do?
    1. It is implementing premium pricing.
    2. It is trying to cultivate nonpeak demand.
    3. It is promoting complementary services.
    4. It is putting reservation systems in place.
    5. It is implementing differential pricing.

33. Cocktail lounges in restaurants are examples of                  .
    1. differential pricing
    2. cultivating nonpeak demand
    3. complementary services
    4. reservation systems
    5. shared services

34. Which of the following is an example of a complementary service?
    1. Big department stores usually hire extra staff to handle the rush during the holiday season.
    2. The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote mini- vacation weekends for non-business customers as well.
    3. More paramedics are on hand to assist physicians during times when emergency admissions are highest.
    4. AXA Bank set up automated teller machines so that its customers could avoid standing in line.
    5. Chesterton College hires part-time teachers when enrollment goes up.

35. Walmart has decided to hire extra clerks during the holiday season. It is said to be                .
    1. matching its supply with the existing demand
    2. generating nonpeak demand
    3. increasing its customer participation
    4. sharing its services
    5. facilitating for its future expansion

36. Kaya, a chain of skin clinics, requests each new visitor to fill in their own details on a printed form. This is a step in

                   .

1. 1. increasing its peak-time efficiency
   2. creating nonpeak demand
   3. increasing consumer participation
   4. sharing its services
   5. facilitating its future expansions

37. The private nonprofit sector is a provider of services.

38. A service is essentially intangible.

39. A service results in ownership on the part of the client.

40. The production of a service is never tied to a physical product.

41. Soap is an example of a pure tangible good.

42. Salt is an example of a hybrid.

43. A hybrid consists of unequal parts of goods and services, with services being in the majority.

44. A pure service requires a capital-intensive good, but the primary item is a service.

45. All services require the client to be present.

46. The search qualities of a service are the characteristics the buyer can evaluate before purchase.

47. Credence qualities of a service are difficult to evaluate before purchase, but easy to evaluate after consumption.

48. The experience qualities of a good or service can be evaluated after purchase.

49. Furniture is high in credence qualities.

50. While goods meet personal needs, services meet business needs.

51. Services have five distinctive characteristics, one of these being "pure service."

52. Intangibility with regards to a service means that the service cannot be duplicated across providers.

53. Service companies try to demonstrate their service qualities through physical evidence and presentation.

54. Inseparability in the context of a service means that there is a provider-client interaction involved as the provider is part of the service.

55. A service provider can work with larger groups to get around the limitations of inseparability.

56. The quality of services is independent of who provides them.

57. A demand side strategy that can produce a better match between service demand and supply is differential pricing.

58. Customers today want separate prices for each service element, and they also want the right to select the elements they want. Customers are said to be pressing for   services.
    1. complementary
    2. perishable
    3. variable
    4. unbundled
    5. shared

59. Often, a service problem arises from a customer's lack of understanding or ineptitude. Which of the following can help to minimize customer failures?
    1. giving customers exclusive primary service packages
    2. redesigning processes to simplify service encounters
    3. using differential pricing and shared services
    4. minimizing service intangibility
    5. working with more customers at the same time

60. Customers want unbundled services, with separate prices for each service element and the right to select the elements they want.

61. The highest-ranking companies in a 2013 Forrester study of services that meet customer needs and were easy and enjoyable to do business with included Marshalls, TJ Maxx, JCPenney, and Marriott Hotels & Resorts.

62. When golf courses provide rules for playing and behaving appropriately, and customers encourage other customers to follow the same rules, they are encouraging customer citizenship via customer coproduction.

63. Customers cause many service failures, and the number of customer-caused failures is increasing.
64. A person who has a bad customer experience is more likely to talk about it, but someone who has a good experience will talk to more people.

65.                      marketing refers to the normal work of preparing, pricing, distributing, and promoting the service to customers.
    1. Interactive
    2. Internal
    3. External
    4. Promotional
    5. Direct

66.   marketing refers to training and motivating employees to serve customers well.
    1. External
    2. Promotional
    3. Direct
    4. Internal
    5. Interactive

67.   marketing describes the employees' skill in serving the client.
    1. External
    2. Internal
    3. Promotional
    4. Direct
    5. Interactive

68. Susanna wanted to check out a new salon in her locality, so she decided to go for a hair styling session. She was very happy with the way her stylist connected and related with her concerns. She is judging the service based on its                                                                                                                                                                                                                          .
    1. promotional marketing
    2. functional quality
    3. technical quality
    4. search qualities
    5. external marketing

69. In which of the following does a customer respond to the technical quality of a service?
    1. Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.
    2. Kathy tries out a new restaurant every week because she likes to experience the variety.
    3. Bill has gone to the same chiropractor for the past fifteen years because he is friendly and takes the time to listen to Bill.
    4. Ray avoids going to the bank as far as possible because the manager is rude and unhelpful.
    5. Alex has no interest in theater, but goes often because her best friend loves plays.

70. In which of the following does a customer respond to the functional quality of a service?
    1. Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.
    2. Kathy tries out a new restaurant every week because she likes to experience the variety.
    3. Bill has gone to the same chiropractor for the past fifteen years because he is friendly and takes the time to listen to Bill.
    4. Ray's mechanic charges high prices for service, but his work is good and worth the price.
    5. Alex has no interest in theater, but goes often because her best friend loves plays.

71. Firms have decided to raise fees and lower service for those customers who barely pay their way and to coddle big spenders to retain their patronage as long as possible. This is an example of organizing customers by                                                                                                                                                                                                               .
    1. retailer convenience
    2. profit tiers
    3. psychographic characteristics
    4. social influence
    5. customer preference

72. Charles Schwab's best customers are instantly directed to customer service representatives, while other customers have to wait longer. Charles Schwab is trying to                                                                                        .
    1. monitor its service systems
    2. empower the customers
    3. retain the patronage of profitable customers
    4. increase consumer participation
    5. standardize the service-performance process

73. The                      rates the various elements of the service bundle and identifies required actions.
    1. company performance analysis
    2. voice of customer measurement
    3. customer factor measurement
    4. importance-performance analysis
    5. customer importance analysis

74. Customers who view a service as homogeneous   .
    1. only patronize a preferred service provider
    2. judge services on the basis of the providers
    3. care less about the provider than about the price
    4. pick a service provider based on functional attributes
    5. opt for the service with the highest price, irrespective of quality

75. Belling Hotels provides a complimentary breakfast buffet to all guests. This is an example of a                                .
    1. primary service package
    2. service interface
    3. service support
    4. service frequency
    5. secondary service feature

76. When the recent recession hit, Zappos decided to stop offering complimentary overnight shipping to first-time buyers and offer it to repeat buyers only, which is an example of the                                                                      best practice of top service companies.
    1. strategic concept
    2. profit tiers
    3. top-management commitment
    4. high standards
    5. monitoring systems

77. External marketing describes the training and motivation required by employees in order to properly serve the customers.

78. Interactive marketing describes the employees' skill in serving the client.

79. In the hotel industry, primary service features include merchandise for sale, free breakfast buffets, and loyalty programs.

80. Clients judge service not only by its technical quality but also by its functional quality.

81. Importance-performance analysis rates the various elements of the service bundle and identifies required actions.

82. The answer to the question "was the surgery successful?" represents the technical quality aspect of interactive marketing, one of the three broad areas of service excellence.

83. Customers who view a service as fairly homogeneous care less about the provider than about the price.

84. What the customer expects from a service is called the primary service package.

85. Secondary service features are the features that the customer himself or herself adds to the service.

86. Although Brenda previously used the US Postal Service because it offered better prices on package shipping, she now uses only FedEx, because it gives her the facility of shipping from any FedEx location 24 hours a day. Which of the following factors led to Brenda's customer switching behavior?

1. inconvenience
2. pricing
3. response to service failure
4. ethical problems
5. involuntary switching

87. Angela switched to a new hair stylist after getting a bad haircut from her previous stylist. This is an example of which of the following factors leading to customer switching behavior?

1. service encounter failure
2. core service failure
3. response to service failure
4. involuntary switching
5. competition

88. Dean recently had a BRZ broadband connection installed. However, the connection was poor and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. Dean switched to Blue Broadband. Which of the following was the cause of Dean's switching behavior?

1. involuntary switching
2. competition
3. response to service failure
4. service encounter failures
5. inconvenience

89. Which of the following represents an aspect of the Empathy dimension of SERVQUAL?

1. providing service as promised
2. readiness to respond to customers' requests
3. giving customers individual attention
4. making customers feel safe in their transactions
5. visually appealing facilities

90. MGC Inc. organizes a company-wide picnic once a year. The organizers arranged for the best possible menu thinking that food would be a priority, but the staff were disappointed because the activities were very poorly planned. What kind of a gap is apparent here?

1. gap between perceived service and expected service
2. gap between service delivery and external communications
3. gap between service-quality specifications and service delivery
4. gap between management perception and service-quality specification
5. gap between consumer expectation and management perception

91. Which of the following is an example of a gap between management perception and the service-quality specifications?

1. The college brochure showed state-of-the-art classrooms, but when the visitors walked in, they saw peeling walls and dull lighting.
2. A nurse visits a patient to show care, but the patient interprets this as an indication that something is very wrong.
3. The hotel administrators think that guests want better food, but guests are more concerned with the courtesy of the waiters.
4. A service center manager has asked his subordinates to provide fast service, but has not specified a time for the service to be performed.
5. Customer service representatives are asked to give ample time to each customer, but must serve a minimum of 50 customers a day.

92. The customer service representatives at a call center have been asked to handle each call within five minutes. A recent customer survey by the company revealed that customers appreciate it when employees take the time to answer their questions fully and listen to their grievances. What kind of service gap is apparent here?

1. gap between perceived service and expected service
2. gap between service delivery and external communications
3. gap between service-quality specifications and service delivery
4. gap between management perception and service-quality specification
5. gap between consumer expectation and management perception

93. The customer service representatives at a call center have been asked to handle each call within five minutes. At the same time, they have been asked to answer all customer queries in detail and provide appropriate solutions. What kind of service gap is apparent here?

1. gap between perceived service and expected service
2. gap between service delivery and external communications
3. gap between service-quality specifications and service delivery
4. gap between management perception and service-quality specification
5. gap between consumer expectation and management perception

94. Which of the following is an example of a gap between service delivery and external communications?

1. The employees at GBL have been asked to take time to listen to customers, but they must serve them fast as well.
2. Amanda chose to shop at Alison's Fashions because the store's Web site offered on-the-spot alterations. However, when she did buy a dress, she had to wait a week to get it altered.
3. Customers at LUX appreciate the personalized services the salespeople offer, but do not like the store design.
4. Clearwater Spa attendants are well-trained in massage therapy and the services they offer, but customers rarely return because they don't like the attendants' impersonal service.
5. When sales dropped, Styx modernized its stores in order to retain customers, but didn't realize that the product quality was the main problem.

95. Ellen came across an ad for a new restaurant that promised authentic French cuisine. When she ate there, however, she was disappointed to find that the food was mediocre and not very authentic. Which of the following gaps of service performance does this demonstrate?

1. gap between service-quality specifications and service delivery
2. gap between perceived service and expected service
3. gap between service delivery and external communications
4. gap between consumer expectation and management perception
5. gap between management perception and service-quality specification