Deck 12: Managing Services

Question 1

Activities provided by Deloitte Consulting, PwC, Bain & Co, and McKinsey would most likely be classified as:

A)philanthropic activities performed in exchange for monetary remuneration.
B)tangible activities or benefits provided to consumers in exchange for money or some other value.
C)any activity, either tangible or intangible provided by an organization in exchange for monetary remuneration.
D)intangible items provided by an organization to consumers in exchange for money or something else of value.

Answer 1

D

Question 2

While a McDonald's hamburger is generally prepared and tastes the same from store to store, how the teller takes and processes your order may be different. The reason for this is:

A)inconsistency
B)inseparability
C)inventory costs
D)incongruity

Answer 2

A

Question 3

Walt Disney was one of the first to recognize the importance of sights, sounds, tastes, aromas, and textures when he created Disneyland. This effort by Walt Disney focuses on the customer _.

A)experience
B)service
C)techno-entertainment
D)entertainment

Answer 3

A

Question 4

The elements that make services unique are the four Is. The four Is are:

A)incompatibility, inconsistency, inseparability, and inventory.
B)intangibility, inconsistency, inseparability, and inventory.
C)invisibility, inconsistency, inseparability, and intangibility.
D)inflexibility, intangibility, inconsistency, and inseparability.

Question 5

Jane West is just graduating with an MBA and is being recruited by a financial securities brokerage as a sales representative. She has had 10 years of sales experience in selling industrial supplies to the steel industry. She was quite successful in her
Previous experience, but is worried that selling financial instruments may be more difficult. What factor could be the major reason for her worry?

A)the cost inventory management system for reimbursing her when she sells the securities
B)the marketing program of financial instruments is very inconsistent
C)the problem that her services and the products she sells are inseparable
D)the fact that services are intangible and, therefore, very different from her previous experience

Question 6

Obtaining mortgage advice from a financial institution would be best classified as a(n)

A)production.
B)evidence.
C)good.
D)service.

Question 7

Allstate Insurance stresses to its card holders that help is "just one call away", and that "you are in good hands." Which statement below best describes what Allstate is offering?

A)The services cannot be held, seen, or touched before the purchase decision.
B)The service cannot be described only experienced.
C)The value of the service provided can only be determined using subjective criteria.
D)The quantity can vary.

Question 8

Consumers have more difficulty evaluating services than they do products; the difficulty results from the:

A)incongruity of services.
B)inseparability of services from consumers.
C)inflexibility of services.
D)intangibility of services.

Question 9

The Toronto Maple Leafs hockey team may look like potential Stanley Cup winners on a particular day but lose by ten goals the next day. This illustrates the of services.
Nature

A)inconsistent
B)intangible
C)inseparable
D)invisible

Question 10

Some firms, such as financial services, insurance, and consulting offer services to hundreds of different individuals and often sell themselves on the benefits of using their services. The concept of their services which are , however, can often
Be delivered from client to client depending on different staff capabilities.

A)inconsistent; intangibly
B)intangible; inconsistently
C)inventory-based; inconsistently
D)inseparable; intangibly

Question 11

Your good friend, Kevin, recommends you use his tax auditor, Ed, to file your taxes for the upcoming year. Kevin has used Ed for the last five years and always found his pricing and delivery of services excellent. This concept is best described by which of the following words?

A)invisible.
B)intangible.
C)inconsistent .
D)inseparable.

Question 12

Each of the following can influence customers' perceptions of the authenticity of their service experiences, EXCEPT:

A)social processes that allow customers to share their interests.
B)allowing consumers to participate in the production process.
C)personal interaction.
D)service standardization.

Question 13

Hard Rock Cafés are designed to spread the spirit of rock 'n' roll by delivering an exceptional entertainment and dining _.

A)tangibility
B)experience
C)credence
D)search

Question 14

Which of the following statements about services is true?

A)Services are both tangible and intangible items.
B)Two out of ten Canadians work in the services industry.
C)In Canada, the service sector is responsible for over 75 percent of its workforce.
D)The marketing of services is the same as the marketing of goods.

Question 15

Which of the following statements about services is true?

A)Two out of ten Canadians work in the services industry.
B)In Canada, the service sector generates 70 percent of Canada's annual GDP.
C)The marketing of services is the same as the marketing of goods.
D)Services are both tangible and intangible items.

Question 16

NIKEiD.com is an example of a service that allows for:

A)personal touch, not automation
B)restrictive business growth
C)social media commenting
D)customization

Question 17

Each of the following is an example of how services to consumers are adding dimensions of authenticity, EXCEPT:

A)Retailers providing dressing rooms large enough for friends and electronic mirrors that allow texting anyone whose opinion might be needed.
B)Nike's customization service, NIKEiD.com, allows customers to design shoes according to their exact preferences.
C)Progressive Insurance sends "Immediate Response Vehicles" to the site of an accident so that an adjuster can handle emergencies.
D)An increase in automated bank machines (ABMs), kiosks, and credit card readers.

Question 18

Consumers are no longer content with affordable, high-quality purchases; they want offerings that reflect their self-image-who they are or who they aspire to be. The growth of produced, sometimes contrived experiences, however, has led consumers to search for offerings.

A)affordable
B)authentic
C)entertaining
D)memorable

Question 19

According to the text, service providers are likely to see success in their business if they can:

A)derive business efficiencies for using automation to deal with consumers
B)create and deliver authentic experiences
C)restrict consumer's comments on social media
D)provide the lowest cost service at the highest price

Question 20

All of the following might be used to create an authentic experience for a customer, except:

A)providing personal interaction, rather than automation
B)having defined services for consumers so they know what to expect
C)allowing consumers to share their interests
D)allowing consumers to participate in the production process

Question 21

Which of the services below would be an example of a 'core service' for a financial institution?

A)information delivery (monthly statements)
B)ABMs
C)drive-through banking
D)bank account

Question 22

Air Canada operates five flights daily between Toronto and Phoenix during the winter. One flight leaves Phoenix at 12:10 AM. The plane, a Boeing 737, has a capacity of 120 passengers. During the past month, the flight has averaged only 24 passengers, a
Load factor of 20 percent. A load factor of 50 percent (60 passengers)is needed for the flight to break-even. What unique aspect of services does this situation describe?

A)service inventory
B)intangibility
C)inseparability
D)inconsistency

Question 23

Andrea Arena is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these simple acts themselves. One way she tries to ensure of services for her regular customers is to make sure that the same person is always assigned to work for them.

A)flexibility
B)congruity
C)consistency
D)tangibility

Question 24

Inseparability in services means:

A)consumers see little variation from one service provider in an industry to another.
B)consumers cannot separate the service from the deliverer of the service.
C)consumers are unable to differentiate price from quality.
D)consumers cannot evaluate a service until it is being utilized.

Question 25

Which of the organizations listed below has the lowest inventory carrying cost?

A)real estate agencies
B)automobile repair
C)restaurant
D)financial services (insurance)

Question 26

A situation where a service provider is available but there is no demand is called:

A)off-peak pricing.
B)idle production capacity.
C)capacity management.
D)static demand.

Question 27

Students from Berry College attended a performance at nearby Shorter College and were extremely impressed with the dance troupe that was the opening act. As soon as the students returned to Berry, they made arrangements for the entertainers to appear on their campus. On the day of the concert the venue was packed with students, but the quality of the performance was much lower than they had seen at the Shorter campus. The Berry students' disappointment was the direct result of which characteristic of services?

A)intangibility
B)perishabilit y
C)?inseparabili ty
D)?inconsisten cy

Question 28

Which job below is likely to have the lowest idle production capacity?

A)a physician that gets paid for a full shift, regardless if she sees any patients
B)an insurance saleswoman who receives a base pay and commission based on new sales
C)a part time employee at Booster Juice
D)a stockbroker who works purely on commission for his clients

Question 29

Which group of activities below is ranked from the LOWEST cost of inventory to HIGHEST cost of inventory?

A)hair salon - dry cleaner - insurance company
B)auto repair centre - hotel- hospital
C)hotel - airline - amusement park
D)auto repair centre - dry cleaner - insurance company

Question 30

Reference: 12-01
Figure 12-2

According to the service continuum (Figure 12-2), which of the following organizations has the highest level of intangibility?

A)teaching
B)tailored suit
C)advertising agency
D)fast-food restaurant

Question 31

Andrea Arena is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these simple acts themselves. She has often been hired by major corporations to perform services for their harried executives. In 1999, she had 108 employees, but economic momentum has slowed, and many of her major clients have sliced their
Budgets and eliminated perks like her service. At the point in time when Arena had more employees than she had need of, 2 Places at 1 Time was experiencing:

A)static demand.
B)off-peak pricing.
C)capacity management.
D)idle production capacity.

Question 32

Organizations attempt to reduce the inconsistency in the delivery of services through:

A)standardization and training.
B)collaboration.
C)the reduction of customer contact points in the service delivery process.
D)higher incentives to employees for satisfactory performance.

Question 33

Which statement below is incorrect as it relates to the concept of inseparability?

A)receiving a college or university education is an example of the second dimension
B)the first dimension is the inseparability of production and consumption
C)the third dimension is that for many products, separation of production and consumption is easy for the consumer to complete
D)the second dimension is that, in most cases, the consumer cannot (and does not)separate the deliverer of the service from the service itself

Question 34

The inventory costs of services include:

A)salary of service provider and equipment costs.
B)service delivery and spoilage costs.
C)equipment and training costs.
D)management and material costs.

Question 35

When Brad heard, "There is no waiting in checkout lines 2, 4, and 5," he knew that the supermarket had:

A)intangibility.
B)static demand.
C)off-peak convenience.
D)idle production capacity.

Question 36

The emergency room staff in Toronto's largest hospital is surprised and pleased when a four-day Canada Day weekend brings fewer accident victims in for treatment. They know from experience that such public holidays have high rates of accidents. For the hospital business office, the lower demand for the emergency room services means:

A)its services can be separated from the staff.
B)its services are no longer tangible.
C)the hospital has idle production capacity.
D)a break in the service continuum.

Question 37

Many services, such as banking and insurance, can now be delivered electronically, often requiring no face-to-face customer interaction, as with, for example, Bank of Montreal's web-based banking service. With particular respect to the amount of interaction between the consumer and the service deliverer, which unique characteristic of services is illustrated in this example?

A)intangibility
B)inseparabili ty
C)?perishabilit y
D)?incongruity

Question 38

Reference: 12-01
Figure 12-2

According to the service continuum in Figure 12-2, which of the following organizations has an almost perfect balance of tangible and intangible attributes?

A)Fast-food restaurant
B)Tailored suit
C)Advertising agency
D)Tutoring service

Question 39

All of the following examples a consumer might have difficulty separating the deliverer of the service from the service itself, except:

A)a haircut.
B)a university marketing class
C)submitting the tax return online
D)a dental visit

Question 40

Idle production capacity can be reduced by:

A)decreasing the number of work days per week, but increasing the hours per day.
B)using a commission compensation system.
C)allowing personnel to work overtime.
D)hiring additional full-time personnel.

Question 41

The "service continuum" is a range from the tangible to the intangible or good-dominant to service-dominant offerings. According to our text, which item is equally weighted between goods and services?

A)Advertising agency
B)Fast-food restaurant
C)Teaching
D)Salt

Question 42

In today's highly competitive financial services industry, the traditional distinctions between banks and brokerage firms are becoming blurred. For example, while banks still offer "traditional products" such as chequing and savings accounts, certificates of deposits and loans, they now offer mutual funds, insurance and even provide "financial advice," similar to the products and services offered by brokerage firms. Thus, in today's changing marketplace, banks would most likely be evaluated on which properties of the purchase process?

A)Search properties
B)Experience properties
C)Credence properties
D)All of these answers are correct

Question 43

Sarah has a backache due to overexertion. She believes a massage would loosen her back muscles and make her feel better. She is concerned because a massage unlike a pair of shoes cannot be felt before she buys it. Sarah realizes massages have properties.
______

A)search
B)form
C)credence
D)experience

Question 44

Characteristics of tangible goods, such as colour, size, and style are considered properties.

A)form
B)experience
C)credence
D)search

Question 45

Considering the concept of a service continuum, how would one characterize receiving a semester of lectures on marketing?

A)a pure service
B)a goods-service mix
C)a service
D)a pure good

Question 46

Sarah has a backache due to overexertion. She believes a massage would loosen her back muscles and make her feel better. She is concerned because a massage, unlike a pair of shoes, cannot be felt before she buys it. Sarah wishes that the massage had properties.

A)form
B)credence
C)search
D)experience

Question 47

A homeowner consulted a lawyer to see if he could prevent construction of a high-rise apartment building in his neighbourhood. On the advice of the lawyer, he filed a suit to stop construction. Even though the homeowner did exactly as the lawyer instructed him, he still lost the suit. In spite of the loss, he had to believe the lawyer did the best job he could because he did not know the legal system well enough to think otherwise. This case shows how a service can exhibit properties.

A)adherence
B)capacity
C)credence
D)contact

Question 48

Fred White has just accepted a sales position with the ABC Health Maintenance Organization, a major provider of health care services. He had been selling medical supplies for some time and found that he understood how customers bought medical supplies. Which of the following is likely to be a characteristic of the health care service purchase?

A)The buyer does not participate in producing the service.
B)The quality of services can be predetermined in a similar manner to tangible products.
C)Customers are engaged in a low involvement purchase process.
D)A consumer may not have the ability to judge the quality of medical care service even after the service has been provided.

Question 49

Considering the concept of a service continuum, how would one characterize a tailored suit?

A)a service
B)a good-service mix
C)a pure good
D)a pure service

Question 50

Services that are found at a rest stop along a major highway usually consist of only fast food restaurants and fuel stations. The service continuum at a rest stop is likely:

A)a rest stop only sells products
B)wide
C)narrow
D)wider than a mall

Question 51

Andrea Arena is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these simple acts themselves. She is often hired by major corporations to perform services for their harried executives. Her customers have to evaluate the services provided by 2 Places at 1 Time using properties.

A)experience
B)credence
C)search
D)form

Question 52

West Edmonton Mall is one of the world's largest malls. Businesses that operate in the mall range from rollercoasters to barbershops. West Edmonton Mall likely has a wide:

A)tangibility line.
B)product continuum.
C)service continuum.
D)inseparability span.

Question 53

Many service companies go to great lengths to ensure the aspects of the services convey the appropriate image and serve as surrogate indicators of the
________ service to be provided.

A)physical location; tangible
B)tangible; intangible
C)intangible; tangible
D)intangible; product-based

Question 54

Burger King is attempting to measure the difference between their customers' expectations and experiences by using a 24-hour hot line to receive 4,000 customer calls a day. What is this type of activity called?

A)feedback analysis
B)gap analysis
C)promotional evaluation
D)pull strategy

Question 55

Services such as restaurants and child care are evaluated on properties.

A)search
B)credence
C)experience
D)form

Question 56

When Theresa Martinez relocated from British Columbia to Ontario, she needed to find a bank with offices in her new province. Several banks offered the banking products (checking and savings accounts, loans, certificates of deposit)and financial products (mutual funds, insurance)available from her former bank, and she selected The Royal Bank. Later Theresa was impressed by the availability and willingness of people (tellers, personal bankers)to help her when she had questions. In this case, The Royal Bank affected Theresa's evaluation of the purchase through its:

A)characteristic properties.
B)gap analysis.
C)credibility properties.
D)experience properties.

Question 57

Services performed by plastic surgeons or lawyers are primarily evaluated on properties.

A)search
B)credence
C)indirect
D)form

Question 58

One of the primary difference between tangible goods and services involves the consumer's ability to make pre-purchase evaluations. For example, consumers can quite easily make comparisons and evaluations of clothing, automobiles, and
Appliances before making a purchase. On the other hand, consumers can evaluate
Services such as restaurants, beauty salons, and laundromats only during or after the purchase. Indeed, tangible products have properties, while services have
Properties.

A)search; experience
B)experience; search
C)consistent; inconsistent
D)inconsistent; consistent

Question 59

Vacations and haircuts are two examples that are near the of the goods-service continuum and are high in properties

A)middle; experience
B)middle; credence
C)left-side; experience
D)right-side; experience

Question 60

According to the service continuum, which of the following organizations has the highest level of intangibility?

A)teaching
B)advertising agency
C)realty agency
D)fast-food restaurant

Question 61

WestJet states that 98 percent of flights leave on time. This is an example of:

A)responsiveness
B)reliability
C)assurance
D)tangibles

Question 62

You are flying first class from Halifax to Vancouver for a well-deserved vacation. Right behind first class a passenger is playing the harmonica loudly and it is obvious
That he has had too much to drink. Your perception of the airline changes and you may not choose this airline again. Because you associate the drunken harmonica player with the airline, this is a problem with when it comes to the uniqueness of
Services.

A)inventory
B)inconsisten cy
C)intangibility
D)inseparabili ty

Question 63

Arnett is looking for a new web portal to use to access information that interests him on the Internet. The one he currently uses is too cluttered with ads and has several links that do not work. While the site itself works fine, he is unhappy with its appearance and the fact that the company managing the site has done nothing to upgrade it. In terms of the service quality dimensions, Arnett is most unhappy with which dimension of this service?

A)reliability
B)assurance
C)tangibles
D)responsiveness

Question 64

Using a workflow mapping tool such as Microsoft VISIO would come in handy when creating a:

A)contact point audit
B)customer contact audit
C)gap audit
D)touch point audit

Question 65

A new homebuilder has developed a '21 Point Touchpoint Map' for interested homebuyers. The points range from when the homebuyer makes an initial inquiry all the way to signing the closing agreement. The homebuilder has found that when consumers make it past the first 15 points, they have a 90 percent closing rate. This Map, is an example of a(n):

A)goods-service continuum.
B)gap analysis.
C)experience-credence audit.
D)customer contact audit.

Question 66

Which of the following statements would best increase customer satisfaction, after a service failure was experienced?

A)providing a refund
B)providing a store credit
C)offering either a refund, store credit, or gift certificate
D)none of these, as the firm is losing money

Question 67

Service firms are realizing that all aspects of quality must be present for a success program.

A)five; customer-relationship management (CRM)
B)four; customer-experience management (CEM)
C)five; customer-experience management (CEM)
D)four; social-experience management (SEM)

Question 68

Sterile Feral, Inc., is a non-profit organization that catches wild or stray cats, neuters them, vaccinates them, and releases them back into the wild. Veterinarians are particularly impressed with how dependably the organization is able to perform its promised service. With which service quality dimension are veterinarians most
Impressed?

A)credibility
B)assurance
C)tangibles
D)reliability

Question 69

Sterile Feral, Inc., is a non-profit organization that catches wild or stray cats, neuters them, vaccinates them, and releases them back into the wild. The personnel of the non-profit organization are caring people who love animals and try to do what they can to meet the needs of each cat they care for. The caring nature of the personnel relates
To which service quality dimension?

A)tangibles
B)assurance
C)empathy
D)reliability

Question 70

Many restaurants now ask consumers to evaluate their experience on a short questionnaire when they pay their bill. This assessment of consumer expectations and the actual experience is called a _.

A)customer contact audit
B)customer profile analysis
C)service survey
D)gap analysis

Question 71

Four Seasons is known for 'knowing all about the customer and their preferences' before they walk into the door. After a busy day at a tradeshow all day, Janine walks into the lobby and is greeted by name by a staff member who informs Janine that she booked her a foot massage for later in the evening. This is a great example of:

A)responsiveness
B)sympathy
C)assurance
D)empathy

Question 72

How a person establishes expectations for a service they have never purchased but plan to purchase is influenced by each of the following EXCEPT:

A)word-of-mouth communications.
B)previous experience.
C)promotional activities.
D)personal needs.

Question 73

Having a highly knowledgeable car salesperson is an example of which quality dimension?

A)assurance
B)empathy
C)sympathy
D)responsiveness

Question 74

After receiving your air ticket, you realize it is an aisle seat; you dislike aisle seats because the drink cart always hits your elbow! You head to the check-in counter where two flight attendants are conversing among themselves, seemingly ignoring you. You wait for one minute before clearing your throat, and asking if there are any window
Seats available. The flight attendants were not very to you standing there.

A)courteous
B)reliable
C)empathetic
D)responsive

Question 75

When selecting a place to eat, Andy always looks at the rating the restaurant received in the local restaurant guide. Since the guide is able to evaluate the parts of the restaurant Andy cannot see, he believes this is a good way to predict the quality of the service he will receive. Andy bases his opinion of restaurants on the basis of which service quality dimension?

A)reliability
B)tangibles
C)assurance
D)responsiveness

Question 76

Andrea Arena is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these simple acts for themselves. Her regular customers describe her as caring and willing to treat each of the jobs they need done as if it were the most important job she had to perform. In which dimensions of service quality, does Arena excel?

A)assurance and tangibles
B)responsiveness and empathy
C)empathy and credibility
D)reliability and credibility

Question 77

Using a is often a great way to further develop a
Between
Consumer service expectations and actual experience.

A)customer contact audit; goods-service continuum
B)gap analysis; customer contact audit
C)customer contact audit; gap analysis
D)goods-service continuum; gap analysis

Question 78

Which of the following is NOT a point in the customer contact audit for the Arizona Grill, serving Southwestern food?

A)Host/hostess seats the customer.
B)Chef making adjustments to the dish preparation based upon the availability of ingredients.
C)Food server discusses wine list.
D)Food is delivered to the table by kitchen staff.

Question 79

The two basic components of a customer's evaluation of services are:

A)expectations and actual experience.
B)experience and credence.
C)expectations and customer contact.
D)intangibility and inconsistency.

Question 80

Which of the following is a point in the customer contact audit for a health club?

A)group exercise programs
B)too much traffic on the way to the club
C)the customer's diet
D)a willingness to exercise