Exam 13: Services: the Intangible Product

Physicians regularly overstate the expected recovery time from surgery, knowing that managing patients' expectations will reduce the ________ gap associated with their service.

A delivery gap is the difference between the firm's service standards and the actual service it provides to customers.

The policy at André's Hair Salon is "You are only as good as the last satisfied client you served." Which aspect of service does this reflect?

When Union Savings Bank required all customers to use its online banking services, over 20 percent of its customers closed their accounts. In this scenario, Union Savings Bank's service fell outside customers' zone of tolerance.

Procedural fairness pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss).

Beth is a customer service representative for an online clothing store. When she got a phone call yesterday from a customer who received a pink shirt instead of the blue one she ordered, Beth told the customer she would mail the blue shirt out immediately and the customer would not have to pay for either shirt. What process is Beth using?

Because services like cruises and car rentals are perishable, many marketers use

Empowerment is when ________ are authorized to make decisions to help their customers and, as a result, service quality generally improves.

The Service Gaps Model is designed to highlight those areas where

Katrine manages a Sleepy Night Inn. She knows from experience that last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Katrine has empowered her staff to offer discounts when the motel is largely vacant, and to quote the standard price when the motel is close to full. She knows her service is ________, meaning that if no one stays in the room, it generates no revenue that evening.

The communications gap can be reduced by managing customer expectations.

Mauri knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers' ________, the difference between what her customers want and what they will accept before going elsewhere.

In the marketing of services, empowerment means allowing employees to make decisions about how service is provided to customers.

Table One is considered the best Italian restaurant in town. With its elegant dining area, extensive wine list, and gourmet chef, residents wait months to get into the restaurant. Last Friday, Roger took a large group to Table One and almost every diner sent their entrée back to the kitchen. Table One was experiencing a(n)________ gap in service quality.

Trevor was impressed with the service he received at a local running shoe store. He thought the salesperson was attentive and knowledgeable. His friend Marietta, who was with him and is very knowledgeable about running shoes, thought the salesperson was pushy and not well informed. What does this example suggest about customers' service expectations?

Lisa will only let André do her pedicure. She has tried other manicurists, but she knows from experience that André makes her toenails look perfect every time. For Lisa, ________ is the most important of the five service quality dimensions.

________ means allowing employees to make decisions about how service is provided to customers.

Why is it important for marketers to pay special attention to providing excellent customer service?

A popular chef was known for never cooking chicken the same way twice. Which difference between a product and a service does this represent? How could the chef use this to his or her advantage?

Blaire is the new manager of a resort hotel. She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers' expectations, and she believes that the biggest problem is that her employees are not sure what is expected of them. To improve service quality, Blaire should