Marketing Management, 14e (Kotler/Keller) Chapter 13 Designing and Managing Services 1) Which of the following is a characteristic of a service?

A) It is essentially tangible. B) It does not result in the ownership of anything. C) Its production is ma orly tied to a physical product. !) "ervices are typically produced and consumed at different times. #) A client$s presence is not re%uired for rendering a service. Answer& B 'age (ef& )*+ ,b ective& 1 !ifficulty& #asy -) Which of the following is an e.ample of a pure tangible good? A) massage B) shampoo C) e/mail !) restaurant meal #) air travel Answer& B 'age (ef& )*+ ,b ective& 1 !ifficulty& #asy )) 0o which of the following categories of services does a cell phone belong? A) ma or service with accompanying minor services B) ma or service with accompanying minor goods C) pure service !) pure tangible good #) tangible good with accompanying services Answer& # 'age (ef& )*+ ,b ective& 1 !ifficulty& #asy 1) A computer falls into the 22222222 category of service mi.. A) pure tangible good B) tangible good with accompanying services C) hybrid !) ma or service with accompanying minor goods #) pure service Answer& B 'age (ef& )*+ ,b ective& 1 !ifficulty& #asy
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*) Which of the following is an e.ample of a hybrid service? A) teaching B) car C) restaurant meal !) soap #) air travel Answer& C 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy +) A flight with complementary drin8s is an e.ample of a 22222222. A) ma or service with accompanying minor goods and services B) pure service C) pure tangible good !) tangible good with accompanying services #) hybrid Answer& A 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy 7) Which of the following is an e.ample of a pure service? A) air travel B) psychotherapy C) baby oil !) a laptop #) a restaurant meal Answer& B 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy 9) Which of the following is true for services? A) All services are people/based5 while goods are e%uipment/based. B) "ervice providers can be both for/profit or nonprofit. C) All service companies follow the same process to deliver their services. !) 0he client$s presence is a hindrance during the service delivery process. #) "ervice providers develop similar mar8eting programs for personal services and business services. Answer& B 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy

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:) "ome services re%uire that the client be present to conduct the service. Which of the following is an e.ample of such a service? A) pest control B) furniture polishing C) surgery !) car repairing #) ta. services Answer& C 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy 14) "ervices high in 22222222 have characteristics that the buyers can evaluate before purchase. A) search %ualities B) e.perience %ualities C) credence %ualities !) privacy %ualities #) storing %ualities Answer& A 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy 11) "ervices high in 22222222 %ualities have characteristics that the buyer can evaluate after purchase. A) privacy B) e.perience C) credence !) search #) stoc8 Answer& B 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy 1-) "ervices high in 22222222 are those services that have characteristics the buyer normally finds hard to evaluate even after consumption. A) trial %ualities B) search %ualities C) e.perience %ualities !) privacy %ualities #) credence %ualities Answer& # 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy
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1)) Which one of the following would be considered high in credence %ualities? A) an interior of a house B) a restaurant C) a haircut !) psychotherapy #) a computer Answer& ! 'age (ef& )*7 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate 11) Which one of the following is highest in search %ualities? A) a play at a theater B) a meal at a restaurant C) a haircut !) psychotherapy #) a computer Answer& # 'age (ef& )*7 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate 1*) <nli8e physical products5 services cannot be seen5 tasted5 felt5 heard5 or smelled before they are bought. 0his is 8nown as the 22222222 aspect of services. A) inseparability B) intangibility C) variability !) perishability #) heterogeneity Answer& B 'age (ef& )*9 ,b ective& 1 !ifficulty& #asy 1+) Which of the following will most help service providers overcome the limitation of intangibility of services when positioning itself? A) using brand symbols B) sharing services C) wor8ing with larger groups !) cultivating non/pea8 demand #) creating a service blueprint Answer& A 'age (ef& )*9 ,b ective& 1 !ifficulty& #asy
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17) A brand that is action/oriented and causes consumers to engage in physical actions appeals to the 22222222 dimension of brand e.perience. A) sensory B) affective C) behavioral !) intellectual #) social Answer& C 'age (ef& )*9 ,b ective& 1 !ifficulty& #asy 19) B(= "hoes targets the youth mar8et with vibrant5 visually appealing ads in modern styles. B(= ads appeal to the 22222222 dimension of brand e.perience. A) sensory B) affective C) behavioral !) intellectual #) social Answer& A 'age (ef& )*9 ,b ective& 1 !ifficulty& #asy 1:) B(= "hoes positions itself as a young5 adventurous brand. Its logo and brand communication try to give consumers a feeling of e.citement and bravery. 0hese ads appeal to the 22222222 dimension of brand e.perience. A) sensory B) affective C) behavioral !) intellectual #) social Answer& B 'age (ef& )*9 ,b ective& 1 !ifficulty& #asy

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-4) 22222222 refer>s) to logos5 symbols5 characters5 and slogans that service providers use in order to ma8e the service and its 8ey benefits more tangible. A) Brand engagement B) Brand orientation C) Brand elements !) Brand loyalty #) Brand e%uity Answer& C 'age (ef& )*: ,b ective& 1 !ifficulty& #asy -1) Which of the following is true regarding services? A) "ervices are typically produced5 stored5 and then consumed. B) "ervices are generally low in e.perience and credence %ualities. C) "ervice providers develop similar mar8eting programs for personal services and business services. !) 0here is less ris8 associated with the purchase of services than with the purchase of goods. #) 'rovider/client interaction is a special feature of services mar8eting. Answer& # 'age (ef& )*: ,b ective& 1 !ifficulty& #asy --) 0he fact that services are typically produced and consumed simultaneously is 8nown as the 22222222 aspect of services. A) perishability B) intangibility C) heterogeneity !) inseparability #) variability Answer& ! 'age (ef& )*: ,b ective& 1 !ifficulty& #asy -)) "ervice %uality depends on who provides them5 when and where5 and to whom. 0hus5 services are highly 22222222. A) inseparable B) tangible C) variable !) perishable #) intangible Answer& C 'age (ef& )*: ,b ective& 1 !ifficulty& #asy
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-1) Which of the following will help a service provider overcome the limits imposed by the inseparability of services? A) using differential pricing B) wor8ing with larger customer groups C) providing complementary services !) concentrating on physical evidence and presentation #) standardi?ing the service process Answer& B 'age (ef& )*: ,b ective& 1 !ifficulty& #asy -*) Which of the following steps will help service firms to increase their %uality control? A) standardi?ing the service/performance process B) providing complementary services to customers C) giving personnel authority in handling situations !) adopting differential pricing #) cultivating nonpea8 demand Answer& A 'age (ef& )+4 ,b ective& 1 !ifficulty& #asy -+) In order to map out the service process5 the points of customer contact5 and the evidence of service from the customer$s point of view5 service firms should develop a 22222222. A) mar8eting plan B) service floor plan C) @antt chart !) business plan #) service blueprint Answer& # 'age (ef& )+4 ,b ective& 1 !ifficulty& #asy

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-7) Aa8e had an appointment at the doctor$s5 but couldn$t ma8e it on time because he was caught in traffic. By the time he reached the doctor$s office5 the doctor had already begun with the ne.t patient. 0his illustrates the 22222222 of services. A) variability B) heterogeneity C) perishability !) intangibility #) homogeneity Answer& C 'age (ef& )+1 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& #asy -9) When a theater sells matinee movie tic8ets at low prices5 it aims to shift some demand from the pea8 to the off/pea8 period. What is the strategy that the theater is said to be adopting? A) It is providing complementary services. B) It is increasing pea8/time efficiency. C) It is using linear pricing. !) It is using differential pricing. #) It is sharing services. Answer& ! 'age (ef& )+1 ,b ective& 1 !ifficulty& #asy -:) A travel agency offers wee8end discounts for car rentals. What can be deduced from this? A) It is increasing pea8/time efficiency. B) It is using differential pricing. C) It is using linear pricing. !) It is cultivating pea8 demand. #) It is providing complementary services. Answer& B 'age (ef& )+1 ,b ective& 1 !ifficulty& #asy

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)4) In which of the following cases is a service provider trying to increase non/pea8 demand? A) A fine dining restaurant is promoting a brea8fast service in addition to its popular lunch and dinner options. B) An upscale restaurant has a coc8tail lounge where customers can wait until a table is ready. C) ABA Ban8 set up automated teller machines so that its customers could avoid standing in line. !) Chesterton College hired part/time teachers as enrollment increased significantly. #) Big department stores usually hire e.tra staff to handle the rush during the holiday season. Answer& A 'age (ef& )+1 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate )1) 0he Caesar 'ar8 6otel generally caters to business customers during the wee85 but has now decided to promote minivacation wee8ends for non/business customers as well. What is the Caesar 'ar8 6otel trying to do? A) It is implementing premium pricing. B) It is trying to cultivate nonpea8 demand. C) It is promoting complementary services. !) It is putting reservation systems in place. #) It is implementing differential pricing. Answer& B 'age (ef& )+1 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate )-) Coc8tail lounges in restaurants are e.amples of 22222222. A) differential pricing B) cultivating nonpea8 demand C) complementary services !) reservation systems #) shared services Answer& C 'age (ef& )+1 ,b ective& 1 !ifficulty& #asy

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))) Which of the following is an e.ample of a complementary service? A) Big department stores usually hire e.tra staff to handle the rush during the holiday season. B) 0he Caesar 'ar8 6otel generally caters to business customers during the wee85 but has now decided to promote minivacation wee8ends for non/business customers as well. C) ;ore paramedics are on hand to assist physicians during times when emergency admissions are highest. !) ABA Ban8 set up automated teller machines so that its customers could avoid standing in line. #) Chesterton College hires part/time teachers when enrollment goes up. Answer& ! 'age (ef& )+1 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate )1) Walmart has decided to hire e.tra cler8s during the holiday season. It is said to be 22222222. A) matching its supply with the e.isting demand B) generating non/pea8 demand C) increasing its customer participation !) sharing its services #) facilitating for its future e.pansion Answer& A 'age (ef& )+1 ,b ective& 1 !ifficulty& #asy )*) Caya5 a chain of s8in clinics5 re%uests each new visitor to fill up their own details on a printed form. 0his is a step in 22222222. A) increasing its pea8/time efficiency B) creating nonpea8 demand C) increasing consumer participation !) sharing its services #) facilitating its future e.pansions Answer& C 'age (ef& )+1 ,b ective& 1 !ifficulty& #asy

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)+) Customers today want separate prices for each service element and they also want the right to select the elements they want. 0he customers are said to be pressing for 22222222. A) complementary services B) perishable services C) variable services !) unbundled services #) shared services Answer& ! 'age (ef& )+,b ective& !ifficulty& #asy )7) ,ften5 a service problem arises from a customer$s lac8 of understanding or ineptitude. Which of the following can help to minimi?e customer failures? A) giving customers e.clusive primary service pac8ages B) redesigning processes to simplify service encounters C) using differential pricing and shared services !) minimi?ing service intangibility #) wor8ing with more customers at the same time Answer& B 'age (ef& )+1 ,b ective& !ifficulty& #asy )9) 22222222 refers to the normal wor8 of preparing5 pricing5 distributing5 and promoting the service to customers. A) Interactive mar8eting B) Internal mar8eting C) #.ternal mar8eting !) 'romotional mar8eting #) !irect mar8eting Answer& C 'age (ef& )+* ,b ective& ) !ifficulty& #asy ):) 22222222 refers to training and motivating employees to serve customers well. A) #.ternal mar8eting B) 'romotional mar8eting C) !irect mar8eting !) Internal mar8eting #) Interactive mar8eting Answer& ! 'age (ef& )+* ,b ective& ) !ifficulty& #asy
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14) 22222222 describes the employees$ s8ill in serving the client. A) #.ternal mar8eting B) Internal mar8eting C) 'romotional mar8eting !) !irect mar8eting #) Interactive mar8eting Answer& # 'age (ef& )+* ,b ective& ) !ifficulty& #asy 11) "usanna wanted to chec8 out a new salon in her locality5 so she decided to go for a hair styling session. "he was very happy with the way her stylist connected and related with her concerns. "he is udging the service based on its 22222222. A) promotional mar8eting B) functional %uality C) technical %uality !) search %ualities #) e.ternal mar8eting Answer& B 'age (ef& )+* ,b ective& ) AAC"B& Analytic s8ills !ifficulty& ;oderate 1-) In which of the following does a customer respond to the technical %uality of a service? A) "ara$s preferred hair stylist is some miles away5 but "ara goes to him because his styles suit her loo8s. B) Cathy tries out a new restaurant every wee85 because she li8es to e.perience the variety. C) Bill has gone to the same chiropractor for the past fifteen years5 because he is friendly and ta8es the time to listen to Bill. !) (ay avoids going to the ban8 as far as possible because the manager is rude and unhelpful. #) Ale. has no interest in theater5 but goes often because her best friend loves plays. Answer& A 'age (ef& )+* ,b ective& ) AAC"B& Analytic s8ills !ifficulty& ;oderate

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1)) In which of the following does a customer respond to the functional %uality of a service? A) "ara$s preferred hair stylist is some miles away5 but "ara goes to him because his styles suit her loo8s. B) Cathy tries out a new restaurant every wee85 because she li8es to e.perience the variety. C) Bill has gone to the same chiropractor for the past fifteen years5 because he is friendly and ta8es the time to listen to Bill. !) (ay$s mechanic charges high prices for service5 but his wor8 is good and worth the price. #) Ale. has no interest in theater5 but goes often because her best friend loves plays. Answer& C 'age (ef& )+* ,b ective& ) AAC"B& Analytic s8ills !ifficulty& ;oderate 11) Dirms 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. 0his is an e.ample of organi?ing customers by 22222222. A) retailer convenience B) profit tiers C) psychographic characteristics !) social influence #) customer preference Answer& B 'age (ef& )++ ,b ective& ) !ifficulty& #asy 1*) Charles "chwab$s best customers are instantly directed to customer service representatives5 while other customers have to wait longer. Charles "chwab is trying to 22222222. A) monitor its service systems B) empower the customers C) retain the patronage of profitable customers !) increase consumer participation #) standardi?e the service/performance process Answer& C 'age (ef& )++ ,b ective& ) !ifficulty& #asy

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1+) 0he 22222222 rates the various elements of the service bundle and identifies re%uired actions. A) company performance analysis B) voice of customer measurement C) customer factor measurement !) importance/performance analysis #) customer importance analysis Answer& ! 'age (ef& )+7 ,b ective& ) !ifficulty& #asy 17) Customers who view a service as homogeneous 22222222. A) only patroni?e a preferred service provider B) udge services on the basis of the providers C) care less about the provider than about the price !) pic8 a service provider based on functional attributes #) opt for the service with the highest price5 irrespective of %uality Answer& C 'age (ef& )+9 ,b ective& ) !ifficulty& #asy 19) Belling 6otels provides complimentary brea8fast buffets to all its guests. 0his is an e.ample of a 22222222. A) primary service pac8age B) service interface C) service support !) service fre%uency #) secondary service feature Answer& # 'age (ef& )+: ,b ective& ) !ifficulty& #asy

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1:) Although Brenda previously used the <.". 'ostal "ervice because it offered better prices on pac8age shipping5 she now uses only Ded#.5 because it gives her the facility of shipping from any Ded#. Cin8os location -1 hours a day. Which of the following factors led to Brenda$s customer switching behavior? A) inconvenience B) pricing C) response to service failure !) ethical problems #) involuntary switching Answer& A 'age (ef& )71 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate *4) Angela switched to a new hair stylist after getting a bad haircut from her previous stylist. 0his is an e.ample of which of the following factors leading to customer switching behavior? A) service encounter failure B) core service failure C) response to service failure !) involuntary switching #) competition Answer& B 'age (ef& )71 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate *1) !ean recently had a B(= broadband connection installed. 6owever5 the connection was bad and he didn$t get the %uality he re%uired. 6e contacted B(= about the problem5 but the company did not solve his problem. !ean switched to Blue Broadband. Which of the following was the cause of !ean$s switching behavior? A) involuntary switching B) competition C) response to service failure !) service encounter failures #) inconvenience Answer& C 'age (ef& )71 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate

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*-) ;@C Inc. organi?es a company/wide picnic once a year. 0he organi?ers arranged for the best possible menu thin8ing that food would be a priority5 but the staff were disappointed because the activities were very poorly planned. What 8ind of a gap is apparent here? A) gap between perceived service and e.pected service B) gap between service delivery and e.ternal communications C) gap between service/%uality specifications and service delivery !) gap between management perception and service/%uality specification #) gap between consumer e.pectation and management perception Answer& # 'age (ef& )7) ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate *)) Which of the following is an e.ample of a gap between management perception and the service/%uality specifications? A) 0he college brochure showed state/of/the/art classrooms5 but when the visitors wal8ed in5 they saw peeling walls and dull lighting. B) A nurse visits a patient to show care5 but the patient interprets this as an indication that something is very wrong. C) 0he hotel administrators thin8 that guests want better food5 but guests are more concerned with the courtesy of the waiters. !) A service center manager has as8ed his subordinates to provide fast service5 but has not specified a time for the service to be performed. #) Customer service representatives are as8ed to give ample time to each customer5 but must serve a minimum of *4 customers a day. Answer& ! 'age (ef& )7) ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate *1) 0he customer service representatives at a call center have been as8ed to handle each call in not more than five minutes. A recent customer survey by the company revealed that customers appreciate it when employees ta8e the time to answer their %uestions fully and listen to their grievances. What 8ind of service gap is apparent here? A) gap between perceived service and e.pected service B) gap between service delivery and e.ternal communications C) gap between service/%uality specifications and service delivery !) gap between management perception and service/%uality specification #) gap between consumer e.pectation and management perception Answer& ! 'age (ef& )7) ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate
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**) 0he customer service representatives at a call center have been as8ed to handle each call in not more than five minutes. At the same time5 they have been as8ed to answer all customer %ueries in detail and provide appropriate solutions. What 8ind of service gap is apparent here? A) gap between perceived service and e.pected service B) gap between service delivery and e.ternal communications C) gap between service/%uality specifications and service delivery !) gap between management perception and service/%uality specification #) gap between consumer e.pectation and management perception Answer& C 'age (ef& )7) ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate *+) Which of the following is an e.ample of a gap between service delivery and e.ternal communications? A) 0he employees at @BE have been as8ed to ta8e time to listen to customers5 but they must serve them fast as well. B) Amanda chose to shop at Alison$s Dashions because the store$s website offered on/the/spot alterations. 6owever5 when she did buy a dress5 she had to wait a wee8 to get it altered. C) Customers at E<B appreciate the personali?ed services the salespeople offer5 but do not li8e the store design. !) Clearwater "pa attendants are well/trained in massage therapy and the services they offer5 but customers rarely return because they don$t li8e the attendants$ impersonal service. #) When sales dropped5 "ty. moderni?ed its stores in order to retain customers5 but didn$t reali?e that the product %uality was the main problem. Answer& B 'age (ef& )7) ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate *7) #llen came across an ad for a new restaurant which promised authentic Drench cuisine. When she ate there5 however5 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? A) gap between service/%uality specifications and service delivery B) gap between perceived service and e.pected service C) gap between service delivery and e.ternal communications !) gap between consumer e.pectation and management perception #) gap between management perception and service/%uality specification Answer& C 'age (ef& )7) ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate

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*9) When Aaron went to his doctor for his annual chec8up5 he was as8ed to undergo a number of tests. Although the doctor assured Aaron that the tests were routine5 Aaron thin8s that the doctor is hiding a grave problem from him. What 8ind of a gap is apparent here? A) gap between perceived service and e.pected service B) gap between service delivery and e.ternal communications C) gap between service/%uality specifications and service delivery !) gap between management perception and service/%uality specification #) gap between consumer e.pectation and management perception Answer& A 'age (ef& )71 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate *:) 0he most important determinant of service %uality is 22222222 which refers to the ability to perform the promised service dependably and accurately. A) empathy B) assurance C) responsiveness !) reliability #) tangibles Answer& ! 'age (ef& )71 ,b ective& 1 !ifficulty& #asy +4) 0he customer service representatives at @.C.$s customer service center must 8now as much about the products as possible5 so that they can help the customers solve their difficulties without sounding hesitant or unsure of themselves. Which of the following determinants of service %uality are they being as8ed to demonstrate? A) responsiveness B) assurance C) empathy !) reliability #) tangibility Answer& B 'age (ef& )71 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate

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+1) Aosh gets his bi8e serviced at !ean$s @arage even though there$s another garage much closer to home. 6e prefers !ean$s because the wor8 is usually done %uic8ly and the staff try to solve the issues with the bi8e as soon as possible. !ean$s @arage e.cels at which of the following five determinants of service %uality? A) reliability B) responsiveness C) assurance !) empathy #) tangibles Answer& B 'age (ef& )71 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate +-) 0he 22222222 determinant of service %uality refers to the 8nowledge and courtesy of employees and their ability to convey trust and confidence in the service they provide. A) conscientious B) assurance C) empathy !) reliability #) responsiveness Answer& B 'age (ef& )71 ,b ective& 1 !ifficulty& #asy +)) Eeo$s manager has as8ed him and his teammates to demonstrate caring towards customers. 0hey are instructed to learn the customers$ names5 and use the customers$ names while interacting with them. (epeat customers should get special attention5 and the team members should remember their preferences and habits. 0he manager is as8ing the team to be 22222222. A) assuring B) candid C) empathetic !) reliable #) responsive Answer& C 'age (ef& )71 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate

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+1) @loria goes to the same bagel shop every morning because the wor8ers there remember her name and 8now her order. 0hey always ma8e her feel welcome. 0he employees of this bagel shop e.cel at which of the following determinants of service %uality? A) reliability B) responsiveness C) assurance !) empathy #) tangibles Answer& ! 'age (ef& )71 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate +*) 0he ?one of 22222222 is a range where a service dimension is deemed satisfactory5 anchored by the minimum level consumers are willing to accept and the level they believe can and should be delivered. A) immunity B) tolerance C) reliability !) assurance #) fle.ibility Answer& B 'age (ef& )71 ,b ective& 1 !ifficulty& #asy ++) According to the dynamic process model5 two different types of e.pectations have opposite effects on perceptions of service %uality. ,ne of these is that 22222222. A) increasing customer e.pectations of what the firm will deliver improve the perceptions of overall service %uality B) increasing customer e.pectations of what the firm will deliver decrease the perceptions of overall service %uality C) decreasing customer e.pectations of what the firm should deliver decrease the perceptions of overall service %uality !) decreasing customer e.pectations of what the firm will deliver improve the perceptions of overall service %uality #) increasing customer e.pectations of what the firm should deliver improve the perceptions of overall service %uality Answer& A 'age (ef& )71 ,b ective& 1 !ifficulty& ;oderate

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+7) When customers calculate the perceived economic benefits of a continuously provided service in relationship to the economic costs5 they are gauging the 22222222. A) private e%uity B) brand e%uity C) payment e%uity !) customer/service e%uity #) product/service e%uity Answer& C 'age (ef& )7* ,b ective& 1 !ifficulty& #asy +9) A 22222222 refers to any place at which a company see8s to manage a relationship with a customer5 whether through people5 technology5 or some combination of the two. A) customer/service interface B) product/customer interface C) tangible user interface !) attentive user interface #) crossing/based interface Answer& A 'age (ef& )7* ,b ective& 1 !ifficulty& #asy +:) (egular maintenance and repair costs are 8nown as 22222222. A) service contract costs B) out/of/poc8et costs C) fi.ed costs !) facilitating services costs #) value/augmentation costs Answer& B 'age (ef& )7+ ,b ective& * !ifficulty& #asy 74) 0he product$s purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the 22222222. A) service warranty cost B) out/of/poc8et cost C) life/cycle cost !) facilitating services cost #) value/augmentation cost Answer& C 'age (ef& )7+ ,b ective& * !ifficulty& #asy
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71) #.pensive e%uipment manufacturers not only install the e%uipment but also train the staff and underta8e the maintenance and repair activities of the e%uipment. By doing so5 they are providing 22222222. A) payment e%uity B) value/augmenting services C) differential pricing !) facilitating services #) a primary service pac8age Answer& ! 'age (ef& )77 ,b ective& * !ifficulty& #asy 7-) When Aohnson Controls reached beyond its climate control e%uipment and components business to manage integrated facilities by offering products and services that optimi?e energy use5 it was said to be providing 22222222. A) facilitating services B) a primary service pac8age C) value/augmenting services !) service contracts #) service warranties Answer& C 'age (ef& )77 ,b ective& * !ifficulty& #asy 7)) When sellers agree to provide free maintenance and repair services for a specified period of time at a specified contract price5 they are offering 22222222. A) a complementary service B) payment e%uity C) a service blueprint !) differential pricing #) an e.tended warranty Answer& # 'age (ef& )77 ,b ective& * !ifficulty& #asy 71) 0he private non/profit sector is a provider of services. Answer& 0(<# 'age (ef& )*+ ,b ective& 1 !ifficulty& #asy

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7*) A service is essentially intangible. Answer& 0(<# 'age (ef& )*+ ,b ective& 1 !ifficulty& #asy 7+) A service results in ownership on the part of the client. Answer& DAE"# 'age (ef& )*+ ,b ective& 1 !ifficulty& #asy 77) 0he production of a service is never tied to a physical product. Answer& DAE"# 'age (ef& )*+ ,b ective& 1 !ifficulty& #asy 79) "oap is an e.ample of a pure tangible good. Answer& 0(<# 'age (ef& )*+ ,b ective& 1 !ifficulty& #asy 7:) "alt is an e.ample of a hybrid. Answer& DAE"# 'age (ef& )*+ ,b ective& 1 !ifficulty& #asy 94) A hybrid consists of une%ual parts of goods and services5 with services being in the ma ority. Answer& DAE"# 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy 91) A pure service re%uires a capital/intensive good5 but the primary item is a service. Answer& DAE"# 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy 9-) All services re%uire the client to be present. Answer& DAE"# 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy
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9)) 0he search %ualities of a service are the characteristics the buyer can evaluate before purchase. Answer& 0(<# 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy 91) Credence %ualities of a service are difficult to evaluate before purchase5 but easy to evaluate after consumption. Answer& DAE"# 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy 9*) 0he e.perience %ualities of a good or service can be evaluated after purchase. Answer& 0(<# 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy 9+) Durniture is high in credence %ualities. Answer& DAE"# 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy 97) While goods meet personal needs5 services meet business needs. Answer& DAE"# 'age (ef& )*7 ,b ective& 1 !ifficulty& #asy 99) "ervices have five distinctive characteristics5 one of these being Fpure service.F Answer& DAE"# 'age (ef& )*9 ,b ective& 1 !ifficulty& #asy 9:) Intangibility with regards to a service means that the service cannot be duplicated across providers. Answer& DAE"# 'age (ef& )*9 ,b ective& 1 !ifficulty& #asy

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:4) "ervice companies try to demonstrate their service %ualities through physical evidence and presentation. Answer& 0(<# 'age (ef& )*9 ,b ective& 1 !ifficulty& #asy :1) Inseparability in the conte.t of a service means that there is a provider/client interaction involved as the provider is part of the service. Answer& 0(<# 'age (ef& )*: ,b ective& 1 !ifficulty& #asy :-) A service provider can wor8 with larger groups to get around the limitations of inseparability. Answer& 0(<# 'age (ef& )*: ,b ective& 1 !ifficulty& #asy :)) 0he %uality of services is independent of who provides them. Answer& DAE"# 'age (ef& )*: ,b ective& 1 !ifficulty& #asy :1) Customers want unbundled services5 with separate prices for each service element and the right to select the elements they want. Answer& 0(<# 'age (ef& )+,b ective& !ifficulty& #asy :*) #.ternal mar8eting describes the training and motivation re%uired by employees in order to properly serve the customers. Answer& DAE"# 'age (ef& )+* ,b ective& ) !ifficulty& #asy :+) Interactive mar8eting describes the employees$ s8ill in serving the client. Answer& 0(<# 'age (ef& )+* ,b ective& ) !ifficulty& #asy
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:7) Clients udge service not only by its technical %uality but also by its functional %uality. Answer& 0(<# 'age (ef& )+* ,b ective& ) !ifficulty& #asy :9) Importance/performance analysis rates the various elements of the service bundle and identifies re%uired actions. Answer& 0(<# 'age (ef& )+7 ,b ective& ) !ifficulty& #asy ::) Customers who view a service as fairly homogeneous care less about the provider than about the price. Answer& 0(<# 'age (ef& )+9 ,b ective& ) !ifficulty& #asy 144) What the customer e.pects from a service is called the primary service pac8age. Answer& 0(<# 'age (ef& )+: ,b ective& ) !ifficulty& #asy 141) "econdary service features are the features that the customer himself adds to the service. Answer& DAE"# 'age (ef& )+: ,b ective& ) !ifficulty& #asy 14-) 'ricing has no negative effect on customer loyalty. Answer& DAE"# 'age (ef& )71 ,b ective& 1 !ifficulty& #asy 14)) If the e.pected service falls below the perceived service5 customers are disappointed. Answer& DAE"# 'age (ef& )7) ,b ective& 1 !ifficulty& #asy

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141) (esponsiveness is a company$s willingness to help customers and provide prompt service. Answer& 0(<# 'age (ef& )71 ,b ective& 1 !ifficulty& #asy 14*) (eliability refers to the company$s willingness to help customers and provide them with prompt service. Answer& DAE"# 'age (ef& )71 ,b ective& 1 !ifficulty& #asy 14+) 0he appearance of physical facilities5 e%uipment5 personnel5 and communication materials are the tangibles that convey service %uality to consumers. Answer& 0(<# 'age (ef& )71 ,b ective& 1 !ifficulty& #asy 147) 0he ?one of tolerance for a service is the perceived economic benefits in relationship to the economic costs. Answer& DAE"# 'age (ef& )71 ,b ective& 1 !ifficulty& #asy 149) 0he payment e%uity for a service is a range from the minimum level of service consumers are willing to accept to the level they believe can and should be delivered. Answer& DAE"# 'age (ef& )7* ,b ective& 1 !ifficulty& #asy 14:) A customer/service interface is defined as any place at which a company see8s to manage a relationship with a customer. Answer& 0(<# 'age (ef& )7* ,b ective& 1 !ifficulty& #asy 114) If the length of the downtime increases5 the cost incurred decreases. Answer& DAE"# 'age (ef& )7+ ,b ective& * !ifficulty& #asy
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111) A product$s purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value is 8nown as the product$s activity cost. Answer& DAE"# 'age (ef& )7+ ,b ective& * !ifficulty& #asy 11-) ,ut/of/poc8et costs are what the customer spends on regular maintenance and repair costs. Answer& 0(<# 'age (ef& )7+ ,b ective& * !ifficulty& #asy 11)) Galue/augmenting services include installation5 staff training5 maintenance and repair services5 and financing. Answer& DAE"# 'age (ef& )77 ,b ective& * !ifficulty& #asy 111) Eist and briefly e.plain with e.amples the five categories of service offerings. Answer& 0he five categories of service offerings are& a. 'ure tangible goods& 0hese are tangible goods with no accompanying services. Dor e.ample5 soap or toothpaste. b. 0angible good with accompanying services& 0he tangible good is accompanied by one or more services. 0ypically5 the more technologically advanced the product5 the greater the need for high/ %uality supporting services. Dor instance5 car or computer. c. 6ybrid& It is an offering of e%ual parts goods and services. Dor e.ample5 a meal in a restaurant. d. ;a or service with accompanying minor goods and services& 0his offering re%uires a capital/ intensive good5 but the primary item is a service. Dor instance5 an air travel that is accompanied by snac8s and drin8s. e. 'ure service& 0his refers primarily to an intangible service. Dor e.ample5 psychotherapy or massage. 'age (ef& )*+/)*7 ,b ective& 1 !ifficulty& ;oderate

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11*) Eist and briefly e.plain the four distinctive characteristics of services. Answer& 0he four distinctive service characteristics that greatly affect the design of mar8eting programs are& a. Intangibility: "ervices cannot be seen5 tasted5 felt5 heard5 or smelled before they are bought. 0o reduce uncertainty5 buyers will loo8 for evidence of %uality by drawing inferences from the place5 people5 e%uipment5 communication material5 symbols5 and price. b. Inseparability: "ervices are typically produced and consumed simultaneously. Both the provider and the client are a part of the service. c. Variability: Because services depend on who provides them and when and where5 and to whom5 services are highly variable. "ervice buyers are aware of this variability and often tal8 to others before selecting a service provider. d. erishability: "ervices cannot be stored5 so their perishability can be a problem when demand fluctuates. 0hat is why public transportation companies must own much more e%uipment because of rush/hour demand than if demand were even throughout the day. 'age (ef& )*9/)+1 ,b ective& 1 !ifficulty& ;oderate 11+) Eist three steps that service firms can ta8e to increase %uality control over services and reduce variability. Answer& 0hree steps that service firms can ta8e to increase %uality control and reduce variability in services are& a. Invest in good hiring and training proced!res: (ecruiting the right employees and providing them with e.cellent training is crucial5 regardless of whether employees are highly s8illed professionals or low/s8illed wor8ers. Better/trained personnel e.hibit si. characteristics& competence5 courtesy5 credibility5 reliability5 responsiveness5 and communication. b. Standardi"e the service#per$or%ance process thro!gho!t the organi"ation: A service blueprint maps out the service process5 the points of customer contact5 and the evidence of service from the customer$s point of view. c. Monitor c!sto%er satis$action: "ervice firms can employ suggestion and complaint systems5 customer surveys5 and comparison shopping. Customer needs vary in different areas. 0his allows firms to develop region/specific customer satisfaction programs. Dirms can also develop customer information databases and systems for more personali?ed service5 especially online. 'age (ef& )+4 ,b ective& 1 !ifficulty& ;oderate

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117) "everal strategies e.ist for managing the supply and demand of services. Eist the strategies for managing each and give an e.ample of each strategy. Answer& "everal strategies can produce a better match between service demand and supply. ,n the demand side5 these strategies include the following& a. Di$$erential pricing: 0his will shift some demand from pea8 to off/pea8 periods. Dor e.ample5 low matinee movie prices and wee8end discounts for car rentals. b. &onpea' de%and: 0his can be cultivated. Dor instance5 ;c!onald$s pushes its brea8fast service5 and hotels promote minivacation wee8ends. c. Co%ple%entary services: 0hese can provide alternatives to waiting customers. Dor e.ample5 coc8tail lounges in restaurants and automated teller machines in ban8s. d. (eservation syste%s: 0hese are one of the many ways to manage the demand level. Dor instance5 airlines5 hotels5 and physicians employ them e.tensively. ,n the supply side5 these strategies include the following& a. art#ti%e e%ployees: 0hey can serve pea8 demand. Dor e.ample5 colleges add part/time teachers when enrollment goes up and stores hire e.tra cler8s during holiday periods. b. ea'#ti%e e$$iciency: 0hese routines can allow employees to perform only essential tas8s during pea8 periods. Dor instance5 paramedics assist physicians during busy periods. c. Increased cons!%er participation: 0his frees service providers$ time. Dor e.ample consumers can fill out their own medical records or bag their own groceries. d. Shared services: 0hese can improve offerings. Dor instance5 several hospitals can share medical/e%uipment purchases. e. )acilities $or $!t!re e*pansion: 0his can be a good investment. Dor e.ample5 an amusement par8 can buy surrounding land for later development. 'age (ef& )+1 ,b ective& 1 !ifficulty& ;oderate 119) !efine customer failures and list four methods to tac8le them. Answer& Customer failures refer to situations where service problems arise from a customer$s lac8 of understanding or ineptitude. "ome of the methods to solve such situations include the following& a. (edesigning processes and redefining customer roles to simplify service encounters b. Incorporating the right technology to aid employees and customers c. Creating high/performance customers by enhancing their role clarity5 motivation5 and ability d. #ncouraging Fcustomer citi?enshipF so that customers help customers 'age (ef& )+1 ,b ective& !ifficulty& ;oderate

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11:) ;ar8eting e.cellence with services re%uires e.cellence in three broad areas. Eist and e.plain the three areas. Answer& 0he three areas in which services re%uire e.cellence are& a. +*ternal %ar'eting: 0his describes the normal wor8 of preparing5 pricing5 distributing5 and promoting the service to customers. b. Internal %ar'eting: 0his describes training and motivating employees to serve customers well. c. Interactive %ar'eting: 0his describes the employees$ s8ill in serving the client. Clients udge service not only by its technical %uality but also by its functional %uality. 'age (ef& )+* ,b ective& ) !ifficulty& ;oderate 1-4) Eist the eight different variables that influence service outcome and customer loyalty. Answer& 0he eight ma or variables that influence service outcome and customer loyalty are& a. ricing: 6igh price5 price increases5 unfair pricing5 or deceptive pricing prompt customers to change their loyalty. b. Inconvenience: If a customer is made to wait for his appointment or service5 there is a chance that he will thin8 of shifting his loyalty. c. Core service $ail!re: "ervice failures5 billing errors5 or service catastrophe influence service outcome and customer loyalty. d. Service enco!nter $ail!res: If the customer service representative is uncaring5 impolite5 unresponsive5 or un8nowledgeable5 the service outcome and customer loyalty is influenced. e. (esponse to service $ail!re: If the customer service representative e.hibits negative response or reluctant response or no response at all5 the customer$s loyalty is li8ely to shift. f. Co%petition: A customer$s loyalty changes if he finds a better service. g. +thical proble%s: If a customer thin8s that the service provider is a cheat or his services are unsafe5 then he starts loo8ing for another service provider. h. Invol!ntary s,itching& If the customer has to shift his base or the service provider has to close down5 the customer$s loyalty undergo an involuntary shifting. 'age (ef& )71 ,b ective& 1 !ifficulty& ;oderate

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1-1) 0he service/%uality model highlights the main re%uirements for delivering high service %uality. Which are the five gaps that cause unsuccessful delivery? Answer& 0he five gaps that cause unsuccessful customer service delivery are as follows& a. -he gap bet,een cons!%er e*pectation and %anage%ent perception: 0he management does not always correctly perceive what customers want. b. -he gap bet,een %anage%ent perception and service#.!ality speci$ication: 0he management might correctly perceive customers$ wants but not set a performance standard. c. -he gap bet,een service#.!ality speci$ications and service delivery& 0he employees might be poorly trained5 or incapable of or unwilling to meet the standard5 or they may be held to conflicting standards5 such as ta8ing time to listen to customers and serving them fast. d. -he gap bet,een service delivery and e*ternal co%%!nications: 0he consumers$ e.pectations are affected by statements made by company representatives and ads. e. -he gap bet,een perceived service and e*pected service& 0his gap occurs when the consumer misperceives the service %uality. 'age (ef& )7)/)71 ,b ective& 1 !ifficulty& ;oderate 1--) Based on the service/%uality model5 researchers have identified five determinants of service %uality. Eist and briefly e.plain each. Answer& 0he five determinants of service %uality are& a. (eliability& It is the ability to perform the promised service dependably and accurately. b. (esponsiveness& It refers to the willingness to help customers and to provide prompt service. c. /ss!rance& It is the 8nowledge and courtesy of employees and their ability to convey trust and confidence. d. +%pathy& It refers to the provision of caring5 individuali?ed attention to customers. e. -angibles& It is the appearance of physical facilities5 e%uipment5 personnel5 and communication materials. 'age (ef& )71 ,b ective& 1 !ifficulty& ;oderate 1-)) 0raditionally5 customers have had three specific worries about product service. What are they? Answer& ;anufacturers of e%uipmentHsmall appliances5 office machines5 tractors5 mainframes5 airplanesHall must provide product/support services. 0he three specific worries about product services that customers face are& a. 0hey worry about reliability and failure fre%uency. Dor e.ample5 a farmer may tolerate a combine that will brea8 down once a year5 but not two or three times a year. b. 0hey worry about downtime. 0he longer the downtime5 the higher the cost. 0he customer counts on the seller$s service dependability which refers to the seller$s ability to fi. the machine %uic8ly or at least provide a loaner. c. 0hey worry about out/of/poc8et costs5 which refers to the amount they have to spend on regular maintenance and repair costs. 'age (ef& )7+ ,b ective& * !ifficulty& ;oderate
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1-1) 0here are five categories of service offerings depending upon whether or not the service component is minor or ma or. In which of the five categories would you place a haircut? Answer& A hair salon would be considered a pure service because the service provided by a hair salon is primarily intangible in nature. 'age (ef& )*7 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate 1-*) @ive an e.ample of a pure service provided by a company. Answer& "tudent answers may vary. #.amples of a pure service include babysitting5 psychotherapy5 career counselling5 or a massage. 'age (ef& )*7 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate 1-+) Bryson$s is a mid/si?ed hotel chain that is entering a competitive mar8et. 0he chain needs to differentiate its service from that of competitors5 positioning itself as a hotel with e.cellent service at an affordable price. 6owever5 the intangible nature of services ma8es this difficult to demonstrate. 6ow can Bryson$s convey its message effectively to prospective guests using mar8eting tool of place? Answer& "tudent answers may vary. Bryson$s should try to demonstrate its service %uality through physical evidence and presentation. Bryson$s can use $place$5 i.e.5 the hotels themselves5 by designing the hotels to reflect its desired attributes. 0he hotel design should not be too ornate or fancy5 but not too basic either. 'age (ef& )*9 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate 1-7) In developing a service blueprint5 0he Dlower "hop has outlined each step in the delivery process of the service it provides. Which characteristic of services is 0he Dlower "hop attempting to minimi?e? Answer& By developing a service blueprint5 Beth$s Inc. is ma8ing an attempt to reduce the variability of the service. Because the %uality of services depends on who provides them5 when and where5 and to whom5 services are highly variable. A service blueprint will standardi?e the entire service process. 'age (ef& )+4 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate

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1-9) Dingerpainted organi?es art camps and craft activities for children. 0he company has noticed that demand is highest during summer vacations and drops during the year. What can Dingerpainted do to attract customers at other times of year? Answer& "tudent answers may vary. Dingerpainted can use differential pricing to shift some demand from pea8 to non/pea8 periods5 pricing courses outside vacations lower than vacation courses. It can try to generate non/pea8 demand by introducing speciali?ed courses for wee8ends or a few evenings a wee8. 'age (ef& )+1 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate 1-:) !ebbie$s is a specialty ba8ery that sees a huge volume of orders during the holiday season. 0he owner 8nows that orders triple during the three/month period and the current staff cannot handle the volume. What supply strategy can !ebbie$s use to handle the demand? Answer& !ebbie$s can employ people on contract ust for the holiday season to help the company cope with the spi8e in demand. 'age (ef& )+1 ,b ective& AAC"B& Analytic s8ills !ifficulty& ;oderate 1)4) Bryson$s is a mid/si?ed hotel chain that is entering a competitive mar8et. 0he chain needs to differentiate its service from that of competitors5 positioning itself as a hotel chain with e.cellent service at an affordable price. 6ow can it achieve this using internal mar8eting? Answer& "tudent answers may vary. Internal mar8eting describes training and motivating employees to serve customers well. #mployees must be trained to provide the re%uired service %uality5 as well as motivated to achieve that level. Bryson$s can use incentives for the best performers in order to encourage this. 'age (ef& )+* ,b ective& ) AAC"B& Analytic s8ills !ifficulty& ;oderate 1)1) When 6ayley had some problems with the applications on her cell phone5 she gave her cell phone to the service center for a software update. 0he service center returned the phone to 6ayley the ne.t day5 with the software update complete. 0wo days later5 the service center called 6ayley to en%uire if the phone was functioning well. Which area of services mar8eting does this incident illustrate? Why is this important? Answer& 0his situation illustrates interactive mar8eting5 which deals with the employees$ s8ill in serving the client. 0his is important because clients udge a service not only by its technical %uality >how successful it was) but also by its functional %uality >the attitude of the employees performing the service). 'age (ef& )+* ,b ective& ) AAC"B& Analytic s8ills !ifficulty& ;oderate
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1)-) "ome Western"lope Cleaning customers have long/term contracts for full/service cleaning5 while others call the company as and when they re%uire a particular service. 0he long/term customers have their %ueries handled by the company$s customer service representative. 0he rest of its customers are directed towards voice messages when they want their in%uiries to be processed. What strategy is the company adopting to achieve mar8eting e.cellence? Answer& 0he company is trying to differentiate its high/profit tier customers from its low/profit tier customers. 'age (ef& )++/)+7 ,b ective& ) AAC"B& Analytic s8ills !ifficulty& ;oderate 1))) (etail chain (#B wants to find out how its customers perceive its services and what it can do to improve these. What methods can the company use to discover this? Answer& (#B can audit service performance5 both their own and competitors$5 on a regular basis. It can collect voice of the customer >G,C) measurements to probe customer satisfiers and dissatisfiers. It can use comparison shopping5 mystery or ghost shopping5 customer surveys5 suggestion and complaint forms5 and service/audit teams to find out customer reactions to the company. 'age (ef& )+7 ,b ective& ) AAC"B& Analytic s8ills !ifficulty& ;oderate 1)1) Clearwater "pa operates on the premise that service %uality is the main reason that customers come to the spa5 and the attendants are trained to provide e.cellent service. !espite this5 the spa rarely has repeat customers. Clearwater began collecting feedbac8 from customers to find out the reason for this. 0he management reali?ed that although the customers were happy about the services they did not li8e the ambience. What 8ind of a gap is causing the unsuccessful service delivery in this situation? Answer& In this situation5 there is a gap between the consumers$ e.pectations and the managements$ perception. ;anagement does not always correctly perceive what customers want. 0he spa management believes that customers want service %uality5 when the ambience is the real customer demand. 'age (ef& )7) ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate

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1)*) 0he manager of a computer service center 8nows that %uic8 service is the top priority for customers. Accordingly5 the employees are encouraged to solve customer difficulties fast5 but there is no set time period for service delivery. Which gap could cause unsuccessful service delivery in this situation? Answer& In this situation5 there e.ists a gap between the management perception and the service/ %uality specification. Although5 the management has correctly perceived the customers$ want5 it has not set a specific performance standard for employees. 'age (ef& )7) ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate 1)+) In the customer support center where Carl wor8s5 employees are taught to ma8e conversation to put customers at their ease. As customers don$t li8e being 8ept waiting5 they must also try to minimi?e the time that customers spend waiting for service. 0hus5 when there are a number of customers lined up5 Carl usually has to decide whether to answer a customer$s %uestions in detail or move on %uic8ly to the ne.t customer. 0he firm$s standards are not clear on how they want him to perform. When as8ed5 his boss answers5 FIou ma8e the decision.F 0his is an e.ample of which service/%uality gap? Answer& 0his is an e.ample of a gap between the service/%uality specifications and service delivery. #mployees are held to conflicting standards5 having to decide between ta8ing time to listen to customers and serving them fast. 'age (ef& )7) ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate 1)7) 0he advertisement for a pool reads Fa vinyl pool from 'ar8er$s for ust J*444.F When !avid contacted the firm for the pool5 the customer service representative tells !avid that the total cost will be J9444. When !avid en%uires about the e.tra J)4445 the customer service representative says that is for installation. Which service/%uality gap does this situation demonstrate? Answer& 0his is an e.ample of a gap between service delivery and e.ternal communications. Consumer e.pectations are affected by statements made by company representatives and ads. 6ere5 the ad promised a pool for one price5 but the actual price is much higher than the consumer is led to e.pect. 'age (ef& )7) ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate

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1)9) 0he last time Betty visited =ing$s5 the dinner served was e.cellent. 0onight is her anniversary and she was loo8ing forward to an en oyable evening. After the meal5 she starts feeling that the service was not up to par and the evening was not as successful as she had hoped. According to the service/%uality model5 which gap is obvious here? Answer& 0he gap prevalent here is the gap between perceived service and e.pected service. 0his gap occurs when the customer misperceives the service %uality. 'age (ef& )71 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate 1):) A cosmetics store sees to it that customers who wal8 in are assisted by store personnel. 0hese personnel are trained to as8 customers %uestions5 find out what they want5 and ma8e suggestions accordingly. Which of the five determinants of service %uality is reflected here? Answer& 0he determinant of service %uality that is reflected here is the empathy. 0he outlet not only cares about its customers5 but also gives them individuali?ed attention. 'age (ef& )71 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate 114) Aosh travels often on business trips. 6e usually uses the services of the "unshine Cab Company to ta8e him to the airport and pic8 him up from the airport. 0hough the fares are usually higher than those of other private ta.i companies5 he prefers to use "unshine cabs because they$re always on time and have well/maintained cabs. Which determinant of service %uality does this demonstrate? Answer& 0his demonstrates the determinant of reliability5 which is the ability to perform the promised service dependably and accurately. 'age (ef& )71 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate 111) 'ac8age delivery company <'" uses distinctive brown truc8s that have become almost an icon. #.plain why such physical facilities are important for <'" while it provides pac8age delivery services. Answer& "ervices are intangible. But when they are given a tangibility by using physical facilities5 e%uipment5 personnel5 or communication material5 customers find it easier to determine the service %uality and distinguish the services of one firm from that of its competitor. 0hus5 <'"$s truc8s help the company differentiate its services from its competitors$. 'age (ef& )71 ,b ective& 1 AAC"B& Analytic s8ills !ifficulty& ;oderate

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11-) An oil drilling company ordered a number of pump ac8s for its operations. 0he pump ac8 is an essential part of its operations and the company needs the e%uipment to be operational at all times. 6ow can the pump ac8 manufacturer demonstrate its service dependability? Answer& 0he manufacturer can demonstrate its dependability by being prompt to repair the e%uipment when it fails5 and providing replacements when the repairs will ta8e a long time. 'age (ef& )7* ,b ective& * AAC"B& Analytic s8ills !ifficulty& ;oderate 11)) An oil drilling company ordered a pump ac8 for its operations. 0he pump ac8 manufacturing company not only set up the machine but also provided training to the people who needed to use it. It also let the drilling company 8now that it would be underta8ing the maintenance and repair services for the pump ac8. What 8ind of a service is the manufacturing company providing? Answer& 0he manufacturing company is said to be providing facilitating services. 'age (ef& )77 ,b ective& * AAC"B& Analytic s8ills !ifficulty& ;oderate

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