Question 1

Which of the following is an example of a complementary service?

Accepted Answer

A)  Big department stores usually hire extra staff to handle the rush during the holiday season. 
B)  The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote minivacation weekends for non-business customers as well. 
C)  More paramedics are on hand to assist physicians during times when emergency admissions are highest. 
D)  AXA Bank set up automated teller machines so that its customers could avoid standing in line. 
E)  Chesterton College hires part-time teachers when enrollment goes up. 
A)  Big department stores usually hire extra staff to handle the rush during the holiday season. 
B)  The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote minivacation weekends for non-business customers as well. 
C)  More paramedics are on hand to assist physicians during times when emergency admissions are highest. 
D)  AXA Bank set up automated teller machines so that its customers could avoid standing in line. 
E)  Chesterton College hires part-time teachers when enrollment goes up. D

Question 2

Marketing excellence with services requires excellence in three broad areas. List and explain the three areas.

Accepted Answer

The three areas in which services require excellence are:
a. External marketing: This describes the normal work of preparing, pricing, distributing, and promoting the service to customers.
b. Internal marketing: This describes training and motivating employees to serve customers well.
c. Interactive marketing: This describes the employees' skill in serving the client. Clients judge service not only by its technical quality but also by its functional quality.

Question 3

List and briefly explain with examples the five categories of service offerings.

Accepted Answer

The five categories of service offerings are:
a. Pure tangible goods: These are tangible goods with no accompanying services. For example, soap or toothpaste.
b. Tangible good with accompanying services: The tangible good is accompanied by one or more services. Typically, the more technologically advanced the product, the greater the need for high-quality supporting services. For instance, car or computer.
c. Hybrid: It is an offering of equal parts goods and services. For example, a meal in a restaurant.
d. Major service with accompanying minor goods and services: This offering requires a capital-intensive good, but the primary item is a service. For instance, an air travel that is accompanied by snacks and drinks.
e. Pure service: This refers primarily to an intangible service. For example, psychotherapy or massage.

Question 4

The product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________.

Accepted Answer

A)  service warranty cost 
B)  out-of-pocket cost 
C)  life-cycle cost 
D)  facilitating services cost 
E)  value-augmentation cost 
A)  service warranty cost 
B)  out-of-pocket cost 
C)  life-cycle cost 
D)  facilitating services cost 
E)  value-augmentation cost

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

A customer-service interface is defined as any place at which a company seeks to manage a relationship with a customer.

Accepted Answer

A) True 
 B)False

Question 8

The private non-profit sector is a provider of services.

Accepted Answer

A) True 
 B)False

Question 9

Soap is an example of a pure tangible good.

Accepted Answer

A) True 
 B)False

Question 10

List and briefly explain the four distinctive characteristics of services.

Accepted Answer

The four distinctive service characteris

Question 11

If the length of the downtime increases, the cost incurred decreases.

Accepted Answer

A) True 
 B)False

Question 12

There are five categories of service offerings depending upon whether or not the service component is minor or major. In which of the five categories would you place a haircut?

Accepted Answer

A hair salon would be consider

Question 13

Clearwater Spa operates on the premise that service quality is the main reason that customers come to the spa, and the attendants are trained to provide excellent service. Despite this, the spa rarely has repeat customers. Clearwater began collecting feedback from customers to find out the reason for this. The management realized that although the customers were happy about the services they did not like the ambience. What kind of a gap is causing the unsuccessful service delivery in this situation?

Accepted Answer

In this situation, there is a gap betwee

Question 14

The customer service representatives at a call center have been asked to handle each call in not more than 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?

Accepted Answer

A)  gap between perceived service and expected service 
B)  gap between service delivery and external communications 
C)  gap between service-quality specifications and service delivery 
D)  gap between management perception and service-quality specification 
E)  gap between consumer expectation and management perception 
A)  gap between perceived service and expected service 
B)  gap between service delivery and external communications 
C)  gap between service-quality specifications and service delivery 
D)  gap between management perception and service-quality specification 
E)  gap between consumer expectation and management perception

Question 15

Charles Schwab's best customers are instantly directed to customer service representatives, while other customers have to wait longer. Charles Schwab is trying to ________.

Accepted Answer

A)  monitor its service systems 
B)  empower the customers 
C)  retain the patronage of profitable customers 
D)  increase consumer participation 
E)  standardize the service-performance process 
A)  monitor its service systems 
B)  empower the customers 
C)  retain the patronage of profitable customers 
D)  increase consumer participation 
E)  standardize the service-performance process

Question 16

Which of the following is true for services?

Accepted Answer

A)  All services are people-based, while goods are equipment-based. 
B)  Service providers can be both for-profit or nonprofit. 
C)  All service companies follow the same process to deliver their services. 
D)  The client's presence is a hindrance during the service delivery process. 
E)  Service providers develop similar marketing programs for personal services and business services. 
A)  All services are people-based, while goods are equipment-based. 
B)  Service providers can be both for-profit or nonprofit. 
C)  All service companies follow the same process to deliver their services. 
D)  The client's presence is a hindrance during the service delivery process. 
E)  Service providers develop similar marketing programs for personal services and business services.

Question 17

The last time Betty visited Zing's, the dinner served was excellent. Tonight is her anniversary and she was looking forward to an enjoyable evening. After the meal, she starts feeling that the service was not up to par and the evening was not as successful as she had hoped. According to the service-quality model, which gap is obvious here?

Accepted Answer

The gap prevalent here is the

Question 18

Bryson's is a mid-sized hotel chain that is entering a competitive market. The chain needs to differentiate its service from that of competitors, positioning itself as a hotel with excellent service at an affordable price. However, the intangible nature of services makes this difficult to demonstrate. How can Bryson's convey its message effectively to prospective guests using marketing tool of place?

Accepted Answer

Student answers may vary.
Bryson's shoul

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

All services require the client to be present.

Accepted Answer

A) True 
 B)False

Which of the following is an example of a complementary service?

Marketing excellence with services requires excellence in three broad areas. List and explain the three areas.

List and briefly explain with examples the five categories of service offerings.

The product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________.

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

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

A customer-service interface is defined as any place at which a company seeks to manage a relationship with a customer.

The private non-profit sector is a provider of services.

Soap is an example of a pure tangible good.

List and briefly explain the four distinctive characteristics of services.

If the length of the downtime increases, the cost incurred decreases.

There are five categories of service offerings depending upon whether or not the service component is minor or major. In which of the five categories would you place a haircut?

Charles Schwab's best customers are instantly directed to customer service representatives, while other customers have to wait longer. Charles Schwab is trying to ________.

Which of the following is true for services?

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

All services require the client to be present.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Introducing New Market Offerings

Tapping into Global Markets

Managing a Holistic Marketing Organization for the Long Run

Filters

Exam 13: Designing and Managing Services

Which of the following is an example of a complementary service?

Marketing excellence with services requires excellence in three broad areas. List and explain the three areas.

List and briefly explain with examples the five categories of service offerings.

The product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________.

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

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

A customer-service interface is defined as any place at which a company seeks to manage a relationship with a customer.

The private non-profit sector is a provider of services.

Soap is an example of a pure tangible good.

List and briefly explain the four distinctive characteristics of services.

If the length of the downtime increases, the cost incurred decreases.

There are five categories of service offerings depending upon whether or not the service component is minor or major. In which of the five categories would you place a haircut?

Charles Schwab's best customers are instantly directed to customer service representatives, while other customers have to wait longer. Charles Schwab is trying to ________.

Which of the following is true for services?

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

All services require the client to be present.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Introducing New Market Offerings

Tapping into Global Markets

Managing a Holistic Marketing Organization for the Long Run

Filters