Deck 13: Services: the Intangible Product

Question 1

Many services marketers use training and standardization to reduce service perishability.

Answer 1

False

Question 2

The zone of tolerance refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

The knowledge gap is where "the rubber meets the road," where the customer directly interacts with the service provider.

Question 5

Hilton Hotels trains its front desk employees to dress neatly and conservatively to project a professional image. This relates to the service dimension of tangibles.

Question 6

A delivery gap always results in a service failure.

Question 7

Firms that primarily sell products view service as a method to maintain a sustainable competitive advantage.

Question 8

Procedural fairness pertains to a customer's perception of the benefits received compared to the costs of the inconvenience or loss.

Question 9

The Service Gaps Model encourages the systematic examination of all aspects of the product creation process.

Question 10

The communications gap can be reduced by managing customer expectations.

Question 11

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

Question 12

The building blocks of service quality are reliability, responsiveness, assurance, empathy, and tangibles.

Question 13

When managers understand what their service providers are facing on a day-to-day basis by directly observing them and talking to customers, it is called "management by walking around."

Question 14

Listening to the customer is the first step in service recovery.

Question 15

In training service providers, service quality goals should be general to allow for the various needs of consumers.

Question 16

All products and services are intangible.

Question 17

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

Question 18

Latosha was employee of the month at Jersey Mike's Subs, primarily because she provided excellent customer service by serving food quickly. This relates to the reliability service dimension.

Question 19

The marketing of services differs from the marketing of products because services are tangible and separable from the service provider.

Question 20

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

Question 21

The marketing of services differs from the marketing of products in all of the following ways except

A) intangibility.
B) inseparability.
C) heterogeneity.
D) renewability.
E) perishability.

Question 22

Marketers can take advantage of the variable nature of services by

A) merging services with products.
B) customizing services to meet customers' needs exactly.
C) offering to expedite intangibles.
D) expanding the standards gap.
E) using strict standardization.

Question 23

In countries like the United States, services

A) have almost all been replaced by technology.
B) are a small portion of GDP relative to manufacturing.
C) are replacing property taxes as a source of government revenue.
D) will decrease in demand as the population ages.
E) account for an increasing share of jobs.

Question 24

Sometimes all that needs to be done to satisfy a customer complaint is to listen to the customer.

Question 25

Sean relocated to take a new job. He immediately got sick and went to a doctor close to where he lived. During his exam, the doctor was impatient and demonstrated a poor bedside manner. Sean wished that he could have requested a different doctor in that moment, but it was too late. Sean's experience exemplifies which key difference in services?

A) intangibility
B) homogeneity
C) perishability
D) inseparability
E) heterogeneity

Question 26

When marketers say that services are ________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can.

A) intangible
B) inseparable
C) heterogeneous
D) perishable
E) replenishable

Question 27

By providing good customer service, firms ________ their products.

A) eliminate the communication gap for
B) add value to
C) reduce the assurance for
D) reduce the empowerment cost associated with
E) increase the perishability of

Question 28

A service is any intangible offering that involves a deed, performance, or effort that

A) cannot be physically possessed.
B) is high-priced.
C) is supported solely through advertising.
D) can be transformed into a physical product.
E) offers benefits but not costs.

Question 29

When marketers state that services are________, they are referring to the fact that services are produced and consumed at the same time.

A) intangible
B) inseparable
C) heterogeneous
D) perishable
E) peripheral

Question 30

Food preparation, lawn maintenance, and house cleaning services are all examples of

A) services shifted abroad because costs are lower in developing countries.
B) services an aging population will decrease the demand for.
C) household maintenance activities that people increasingly pay others to perform.
D) the price elasticity effect on services demand.
E) the ability of empowerment to create tangible service products.

Question 31

Because services are ________, it is often difficult for marketers to convey the benefits to consumers.

A) heterogeneous
B) inseparable
C) intangible
D) perishable
E) substantial

Question 32

Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. The employees-when she could find them-rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. The store had found a technological solution to the services marketing issue of

A) intangibility.
B) part-time employees.
C) perishability.
D) inseparability.
E) heterogeneity.

Question 33

The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use ________ to overcome the problem of inseparability of services.

A) promotional discounts
B) zone of tolerance allowances
C) perishability gap analysis
D) point-of-purchase displays
E) satisfaction guarantees

Question 34

The old restaurant saying "You are only as good as the last meal served" reflects the fact that services are

A) intangible.
B) perishable.
C) heterogeneous.
D) portable.
E) viable.

Question 35

Which of the following refers to variability in a service's quality?

A) heterogeneity
B) perishability
C) service gap
D) delivery gap
E) communications gap

Question 36

Along the service-product continuum, which of the following would be considered the most service dominant?

A) grocery store
B) apparel specialty store
C) doctor's office
D) bookstore
E) restaurant

Question 37

Many product-dominant firms use quality service

A) as a way to minimize the cost of production.
B) to support a standards gap.
C) as a way to increase the perishability of their products.
D) to install a voice of the customer program.
E) to maintain a sustainable competitive advantage.

Question 38

When marketers state that services are ________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another.

A) intangible
B) inseparable
C) heterogeneous
D) perishable
E) viable

Question 39

Medical services and assisted living care are examples of

A) services shifted abroad because costs are lower in developing countries.
B) services an aging population will increase the demand for.
C) household maintenance activities that people increasingly pay others to perform.
D) the price elasticity effect on services demand.
E) the ability of empowerment to create tangible service products.

Question 40

Along the service-product continuum, which of the following would be considered the most product dominant?

A) grocery store
B) auto repair shop
C) doctor's office
D) cell phone service provider
E) restaurant

Question 41

The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. The hotel has been updating rooms built in the early part of the 20th century to meet the needs of 21st-century visitors. To accomplish this, it spent millions in improvements, renovating rooms, and adding a new outdoor pool complex. These renovations focus on the ________ service characteristic.

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

Question 42

Jackson manages an upscale French restaurant in the Washington, DC, area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his servers to report comments and requests for items that have previously been offered only as specials. Jackson uses this information to reduce the ________ gap in services marketing.

A) seniority
B) knowledge
C) standards
D) delivery
E) communication

Question 43

One approach marketers are using to reduce service ________ is to replace people with machines whenever appropriate.

A) intangibility
B) inseparability
C) spendability
D) perishability
E) heterogeneity

Question 44

The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a ________ gap.

A) knowledge
B) standards
C) social expectations
D) delivery
E) communications

Question 45

The ________ gap can be closed by getting employees to meet or exceed service standards when the service is being delivered by empowering service providers, providing support and incentives, and using technology where appropriate.

A) communications
B) knowledge
C) standards
D) delivery
E) acceptance

Question 46

By setting appropriate service standards and measuring service performance, firms can attempt to close a ________ gap.

A) seniority
B) knowledge
C) standards
D) delivery
E) communication

Question 47

When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a ________ gap.

A) knowledge
B) standards
C) social expectations
D) delivery
E) communications

Question 48

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

A) pricing strategies to match supply with demand.
B) service quality to extend the life of the product.
C) incentives to encourage staff to deliver according to standards.
D) training to standardize delivery.
E) machines to replace people for standard transactions.

Question 49

Marcia booked a room at the Pleasant Valley Resort because, as advertised on its website, she expected that her room would be ready, the swimming pool would be heated, the resort singer would be able to sing, and the breakfast would be fresh. When she arrived, she had to wait for her room, found the swimming pool to be 50 degrees, realized the singer could not carry a tune, and the free continental breakfast was stale. The Pleasant Valley Resort was experiencing a severe ________ gap.

A) communications
B) knowledge
C) standards
D) delivery
E) expectations

Question 50

When the delivery of a service fails to meet customers' expectations, a ________ gap exists.

A) service
B) knowledge
C) standards
D) production
E) procedural

Question 51

If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a ________ gap exists.

A) seniority
B) knowledge
C) standards
D) delivery
E) communication

Question 52

The Service Gaps Model is designed to highlight those areas where

A) service providers provide the best possible service.
B) manufacturers are cutting corners on product quality.
C) customers believe they are getting less or poorer service than they should.
D) service providers know more than their customers.
E) delivered service exceeds expected service.

Question 53

Firms can close the ________ gap by matching customer expectations with actual service through use of marketing metrics.

A) seniority
B) knowledge
C) standards
D) delivery
E) communication

Question 54

Because services like airline flights and hotel beds are ________, many marketers attempt to match demand with supply using pricing strategies.

A) intangible
B) inseparable
C) heterogeneous
D) perishable
E) accountable

Question 55

The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. Employees are instructed to always address a guest by name, if possible. To accomplish this, employees are trained to listen and observe carefully to determine a guest's name. Which service characteristic is this an example of?

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

Question 56

A ________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations.

A) seniority
B) knowledge
C) standards
D) delivery
E) communication

Question 57

When marketers state that services are ________, they are referring to the fact that services cannot be stored for use in the future.

A) intangible
B) inseparable
C) heterogeneous
D) durable
E) perishable

Question 58

Yolanda manages a Best Sleep Inn along an interstate highway. She knows from experience that 5 to 10 last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Yolanda 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.

A) intangible
B) inseparable
C) heterogeneous
D) durable
E) perishable

Question 59

For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a ________ gap in services marketing.

A) seniority
B) knowledge
C) standards
D) delivery
E) communication

Question 60

David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) ________ gap.

A) knowledge
B) standards
C) ethics
D) delivery
E) communications

Question 61

A systematic ________ program collects customer inputs and integrates them into managerial decisions.

A) quality gap analysis
B) empowerment
C) zone of tolerance
D) standards analysis
E) voice-of-customer

Question 62

By changing a standard from "be nice to customers" to "greet every customer with a smile," a services marketing manager has created a(n) ________ goal.

A) insurmountable
B) invisible
C) empowerment
D) measurable
E) inseparable

Question 63

To meet or exceed customers' expectations, marketers must

A) know where customers live.
B) know how often consumers buy their products.
C) determine what those expectations are.
D) recognize that expectations are tangible.
E) empower customers to meet their own expectations.

Question 64

Training service providers to know exactly what a "good job" entails is setting service

A) knowledge.
B) quality.
C) delivery.
D) standards.
E) empowerment.

Question 65

What is the problem associated with service quality standards such as "be nice" or "do what the customers want"?

A) They create low expectations.
B) They are not specific.
C) They do not allow for the voice-of-customer process.
D) Most employees are unwilling to do what customers want.
E) They create a delivery gap.

Question 66

Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call

A) service perceptions.
B) service efforts.
C) service quality.
D) service aspirations.
E) service feedback.

Question 67

Gerald's Tire Service provides each employee with a clean, sharp-looking uniform. It also instructs employees to put all tools back where they belong and keep the work area clean and uncluttered. Gerald's Tire Service emphasizes ________ in the five service quality dimensions.

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

Question 68

Nicole 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.

A) voice-of-customer quotient
B) empowerment standard
C) tangibles gap
D) zone of tolerance
E) quality gap

Question 69

Cheryl will let only Martiné cut her hair. She has tried other stylists, but she knows from experience that Martiné cuts her hair well every time. For Cheryl, ________ is the most important of the five service quality dimensions.

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

Question 70

Kayla 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, Kayla will

A) empower customers to meet their own service needs.
B) establish a broad zone of intolerance to reduce customer complaints.
C) narrowly define a knowledge gap.
D) separate intangibles from tangibles.
E) set specific, measurable goals based on customers' expectations.

Question 71

When choosing where to eat lunch, Veronica's major service criterion is speed: being seated promptly and served her meal quickly. For Veronica, ________ is the most important of the five service quality dimensions.

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

Question 72

Customers determine overall service quality using all of the following dimensions except

A) assurance.
B) reliability.
C) acceptability.
D) responsiveness.
E) empathy.

Question 73

Customers have a defined ________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers are willing to wait varies with the type of store.

A) voice-of-customer quotient
B) empowerment standard
C) tangibles gap
D) zone of tolerance
E) quality gap

Question 74

An excellent, inexpensive, and readily accessible method for assessing customers' service expectations is

A) customer complaints.
B) syndicated data services.
C) employee empowerment programs.
D) distributive fairness analysis.
E) management by objective programs.

Question 75

Services marketing managers have learned that more employees will support a quality-oriented process if

A) they are involved in setting the goals.
B) perishable services are replaced with tangible services.
C) they are required to diverge from existing standards.
D) customers are responsible for setting service quality standards.
E) the process involves both part-time and full-time employees.

Question 76

Professor Guillory is a seasoned professor. When students seek her out to advise them, she never turns them away because she believes that with all her years of experience, she can help them. The students, in turn, are confident in her and trust her advice. For these students, ________ is the most important of the five service quality dimensions.

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

Question 77

Colin has been directed by his boss to determine if the company is meeting customers' service quality expectations. One of Colin's problems is that services are ________, making evaluation of service quality difficult.

A) quantifiable
B) substantial
C) unequally distributed
D) intangible
E) indefinable

Question 78

To define the zone of tolerance, firms ask a series of questions about each service quality dimension that relate to all of the following except

A) the desired and expected level of service for each dimension, from low to high.
B) customers' perceptions of how well the focal service performs, from low to high.
C) customers' perceptions of how well a competitive service performs, from low to high.
D) the importance of each quality service dimension.
E) the desired and expected level of service for each dimension, from high to low.

Question 79

Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers' responses to new products and services. Bank of America is using a(n) ________ program to improve service quality and service offerings.

A) quality gap analysis
B) empowerment
C) zone of tolerance
D) standards analysis
E) voice-of-customer

Question 80

When corporate headquarters announced new service quality standards for pizza franchise owners, Roland knew he would have trouble gaining employees' support because

A) they were not involved in setting the goals.
B) perishable services were being replaced with tangible services.
C) they were not allowed to diverge from existing standards.
D) customers were required to create service quality standards.
E) the process involved both part-time and full-time employees.