Question 1

Service quality can help companies attract more and better customers to the business through _____ marketing.

Accepted Answer

A)  Insurgent 
B)  Offensive 
C)  Flank-movement 
D)  Defensive 
E)  Guerilla 
A)  Insurgent 
B)  Offensive 
C)  Flank-movement 
D)  Defensive 
E)  Guerilla

Question 2

Which of the following is NOT likely to occur when a company uses an offensive marketing effect?

Accepted Answer

A)  Higher market share 
B)  Increased price premium 
C)  Customer churn 
D)  Customer acquisition 
E)  Improved word-of-mouth communication 
A)  Higher market share 
B)  Increased price premium 
C)  Customer churn 
D)  Customer acquisition 
E)  Improved word-of-mouth communication

Question 3

Traditional measures of company performance:

Accepted Answer

A)  Have relied on financial indicators such as profit,sales and return on investment 
B)  Predict the future performance of companies as well as the results of yesterday's decisions 
C)  Measure operational process and customer satisfaction as well as other quantitative factors 
D)  Are useful in measuring the effect of a short-term increase of service quality on a company's bottom line 
E)  Have used the soft measures primarily 
A)  Have relied on financial indicators such as profit,sales and return on investment 
B)  Predict the future performance of companies as well as the results of yesterday's decisions 
C)  Measure operational process and customer satisfaction as well as other quantitative factors 
D)  Are useful in measuring the effect of a short-term increase of service quality on a company's bottom line 
E)  Have used the soft measures primarily

Question 4

What area of the balanced performance scorecard is a company studying when it examines overall customer service perceptions?

Accepted Answer

Customer p

Question 5

Companies can actually measure increases and decreases in revenue from the retention and defection of customers.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following has the strongest effect on a service provider's profits?

Accepted Answer

A)  Market share 
B)  Unit costs 
C)  Location 
D)  Employee salaries 
E)  Customer defection 
A)  Market share 
B)  Unit costs 
C)  Location 
D)  Employee salaries 
E)  Customer defection

Question 7

A review of two decades of studies examining the links among customer satisfaction,service quality,and firm performance concluded that improvements in customer satisfaction have _________ impact on firms' financial performance.

Accepted Answer

A)  A significant and positive 
B)  Absolutely no 
C)  A small negative 
D)  An undetermined 
E)  A large negative 
A)  A significant and positive 
B)  Absolutely no 
C)  A small negative 
D)  An undetermined 
E)  A large negative

Question 8

Executives' most frequent questions about how to improve service quality are concerned with:

Accepted Answer

A)  Cost reduction and environmental impact 
B)  Good investment and high return 
C)  Following federal regulations and employee satisfaction 
D)  Operating in the most economic environments and maintaining a satisfactory level of customer retention 
E)  Cost reduction and downsizing 
A)  Cost reduction and environmental impact 
B)  Good investment and high return 
C)  Following federal regulations and employee satisfaction 
D)  Operating in the most economic environments and maintaining a satisfactory level of customer retention 
E)  Cost reduction and downsizing

Question 9

The best known and most widely respected approach that executives use for making decisions about service quality investments is:

Accepted Answer

A)  Total quality management returns 
B)  Observational research 
C)  Focus groups 
D)  Return on service quality 
E)  Ethnographic research 
A)  Total quality management returns 
B)  Observational research 
C)  Focus groups 
D)  Return on service quality 
E)  Ethnographic research

Question 10

The increased profits a service firm realizes from customer retention result from all of the following EXCEPT:

Accepted Answer

A)  Lower costs 
B)  Increased volume of purchases 
C)  The ability to charge a price premium 
D)  Customer defection 
E)  Increased word-of-mouth communication 
A)  Lower costs 
B)  Increased volume of purchases 
C)  The ability to charge a price premium 
D)  Customer defection 
E)  Increased word-of-mouth communication

Question 11

Return on service quality (ROSQ):

Accepted Answer

A)  Is based on the assumption that it is impossible to spend too much money on quality 
B)  Replaces intuition as a guide for service quality investments 
C)  Is an intuitive approach to determining whether a company should implement specific service quality strategies 
D)  Is based on the assumption that all quality expenditures are valid 
E)  Is accurately described by all of the above 
A)  Is based on the assumption that it is impossible to spend too much money on quality 
B)  Replaces intuition as a guide for service quality investments 
C)  Is an intuitive approach to determining whether a company should implement specific service quality strategies 
D)  Is based on the assumption that all quality expenditures are valid 
E)  Is accurately described by all of the above

Question 12

PIMS (profit impact of marketing strategy)research:

Accepted Answer

A)  Is used for determining the short-term effect of service quality on company profits 
B)  Shows that companies offering superior service achieve the same market share growth as those who offer average service 
C)  Demonstrates the advantages of offensive marketing 
D)  Relies on executives' opinions to predict how services will affect profit 
E)  Is accurately described by all of the above 
A)  Is used for determining the short-term effect of service quality on company profits 
B)  Shows that companies offering superior service achieve the same market share growth as those who offer average service 
C)  Demonstrates the advantages of offensive marketing 
D)  Relies on executives' opinions to predict how services will affect profit 
E)  Is accurately described by all of the above

Question 13

All of the following are examples of operational measures within the balanced performance scorecard EXCEPT:

Accepted Answer

A)  Process quality 
B)  Throughput time 
C)  Number of cross sales 
D)  Reduction in waste 
E)  Transaction time 
A)  Process quality 
B)  Throughput time 
C)  Number of cross sales 
D)  Reduction in waste 
E)  Transaction time

Question 14

_____ marketing is used by companies to prevent customer defection.

Accepted Answer

A)  Vertical integration 
B)  Guerilla 
C)  Defensive 
D)  Flank-movement 
E)  Offensive 
A)  Vertical integration 
B)  Guerilla 
C)  Defensive 
D)  Flank-movement 
E)  Offensive

Question 15

A Marriott hotel is able to charge four times as much as an Econo-Lodge for a room because of the amenities the Marriott offers.These amenities include a swimming pool,room service,exercise equipment,in-room iron,hair dryer and coffee maker,and more.The Econo-Lodge provides guests with a clean room to sleep in and little else.Marriott's ability to charge a premium price is the result of its _____ strategy.

Accepted Answer

A)  Defensive 
B)  Price skimming 
C)  Neutral 
D)  Guerrilla 
E)  Flanking 
A)  Defensive 
B)  Price skimming 
C)  Neutral 
D)  Guerrilla 
E)  Flanking

Question 16

What is considered to be more credible as a source of information than any other?

Accepted Answer

Word-of-mo

Question 17

Consumers believe that advertisements in publications like Newsweek,Time,and similar magazines have the highest level of credibility.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements about customer perceptions of service and consumer purchase intentions is true?

Accepted Answer

A)  There is no relationship between customer perceptions of service and any consumer intentions 
B)  While there is no relationship between customer perceptions of service and purchase intentions,there is a strong relationship between perceptions of superior service and increased word-of-mouth communications 
C)  Researchers suspect there is little relationship between a customer perception of service and his or her intent to buy 
D)  Customer perceptions of service affect consumer intentions in several positive ways - including the purchase intention 
E)  Customer expectations - not perceptions - affect consumer behavioral intentions 
A)  There is no relationship between customer perceptions of service and any consumer intentions 
B)  While there is no relationship between customer perceptions of service and purchase intentions,there is a strong relationship between perceptions of superior service and increased word-of-mouth communications 
C)  Researchers suspect there is little relationship between a customer perception of service and his or her intent to buy 
D)  Customer perceptions of service affect consumer intentions in several positive ways - including the purchase intention 
E)  Customer expectations - not perceptions - affect consumer behavioral intentions

Question 19

Which type of promotion has more credibility than other sources of information about a service?

Accepted Answer

A)  Word-of-mouth 
B)  Personalized direct mail 
C)  Network television advertising 
D)  Publicity 
E)  Advertising in prestige magazines 
A)  Word-of-mouth 
B)  Personalized direct mail 
C)  Network television advertising 
D)  Publicity 
E)  Advertising in prestige magazines

Question 20

Which of the following is NOT included in the list of questions managers and researchers want answered about defensive marketing?

Accepted Answer

A)  What is a loyal customer? 
B)  How can defection-prone customers be identified? 
C)  What is the role of service in defensive marketing? 
D)  What aspects of service are most important for customer retention? 
E)  What aspects of service are most important for increasing market share? 
A)  What is a loyal customer? 
B)  How can defection-prone customers be identified? 
C)  What is the role of service in defensive marketing? 
D)  What aspects of service are most important for customer retention? 
E)  What aspects of service are most important for increasing market share?

Service quality can help companies attract more and better customers to the business through _____ marketing.

Which of the following is NOT likely to occur when a company uses an offensive marketing effect?

Traditional measures of company performance:

What area of the balanced performance scorecard is a company studying when it examines overall customer service perceptions?

Companies can actually measure increases and decreases in revenue from the retention and defection of customers.

Which of the following has the strongest effect on a service provider's profits?

A review of two decades of studies examining the links among customer satisfaction,service quality,and firm performance concluded that improvements in customer satisfaction have _________ impact on firms' financial performance.

Executives' most frequent questions about how to improve service quality are concerned with:

The best known and most widely respected approach that executives use for making decisions about service quality investments is:

The increased profits a service firm realizes from customer retention result from all of the following EXCEPT:

Return on service quality (ROSQ):

PIMS (profit impact of marketing strategy)research:

All of the following are examples of operational measures within the balanced performance scorecard EXCEPT:

_____ marketing is used by companies to prevent customer defection.

What is considered to be more credible as a source of information than any other?

Consumers believe that advertisements in publications like Newsweek,Time,and similar magazines have the highest level of credibility.

Which of the following statements about customer perceptions of service and consumer purchase intentions is true?

Which type of promotion has more credibility than other sources of information about a service?

Which of the following is NOT included in the list of questions managers and researchers want answered about defensive marketing?

Introduction to Services

Conceptual Framework of the Book: The GAPS Model of Service Quality

Customer Expectations of Service

Customer Perceptions of Service

Listening to Customers Through Research

Building Customer Relationships

Service Recovery

Service Innovation and Design

Customer-Defined Service Standards

Physical Evidence and the Servicescape

Employees Roles in Service Delivery

Customers Roles in Service Delivery

Managing Demand and Capacity

Integrated Service Marketing Communications

Pricing of Services

Filters

Exam 16: The Financial and Economic Impact of Service

Service quality can help companies attract more and better customers to the business through _____ marketing.

Which of the following is NOT likely to occur when a company uses an offensive marketing effect?

Traditional measures of company performance:

What area of the balanced performance scorecard is a company studying when it examines overall customer service perceptions?

Companies can actually measure increases and decreases in revenue from the retention and defection of customers.

Which of the following has the strongest effect on a service provider's profits?

A review of two decades of studies examining the links among customer satisfaction,service quality,and firm performance concluded that improvements in customer satisfaction have _________ impact on firms' financial performance.

Executives' most frequent questions about how to improve service quality are concerned with:

The best known and most widely respected approach that executives use for making decisions about service quality investments is:

The increased profits a service firm realizes from customer retention result from all of the following EXCEPT:

Return on service quality (ROSQ):

PIMS (profit impact of marketing strategy)research:

All of the following are examples of operational measures within the balanced performance scorecard EXCEPT:

_____ marketing is used by companies to prevent customer defection.

What is considered to be more credible as a source of information than any other?

Consumers believe that advertisements in publications like Newsweek,Time,and similar magazines have the highest level of credibility.

Which of the following statements about customer perceptions of service and consumer purchase intentions is true?

Which type of promotion has more credibility than other sources of information about a service?

Which of the following is NOT included in the list of questions managers and researchers want answered about defensive marketing?

Introduction to Services

Conceptual Framework of the Book: The GAPS Model of Service Quality

Customer Expectations of Service

Customer Perceptions of Service

Listening to Customers Through Research

Building Customer Relationships

Service Recovery

Service Innovation and Design

Customer-Defined Service Standards

Physical Evidence and the Servicescape

Employees Roles in Service Delivery

Customers Roles in Service Delivery

Managing Demand and Capacity

Integrated Service Marketing Communications

Pricing of Services

Filters