Deck 13: Services: the Intangible Product

Question 1

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

Answer 1

True

Question 2

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."

Answer 2

True

Question 3

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.

Answer 3

True

Question 4

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

Question 5

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 6

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

Question 7

A delivery gap always results in a service failure.

Question 8

The communications gap can be reduced by managing customer expectations.

Question 9

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

Question 10

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

Question 11

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

Question 12

One use of marketing research is to provide an effective means to understand consumers' service expectations and their perceptions of service quality.

Question 13

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

Question 14

All products and services are intangible.

Question 15

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

Question 16

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 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

Food preparation,lawn maintenance,and housecleaning 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 22

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 23

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 24

Sean moved to take a new job,and when he got sick he needed to find a doctor.He discovered during the visit that he didn't like the one he had chosen,and he knew he'd never go back to that doctor.From a marketing perspective,his situation highlights one of the key differences between products and services,known as

A) intangibility.
B) professional competence.
C) perishability.
D) inseparability.
E) heterogeneity.

Question 25

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

Question 26

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 27

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 28

Medical services,assisted living care,and active senior travel are all 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 29

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 30

For many professionals offering intangible services,an ethical marketing dilemma exists.The dilemma centers on

A) when to advertise versus when to use personal selling.
B) which media are appropriate for promoting intangible services.
C) which images create a better impression on consumers.
D) how to gain clients while retaining an image of professionalism and integrity.
E) who should be the spokesperson for professionals offering intangible services.

Question 31

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 32

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 33

By providing good customer service,firms __________ their products or services.

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 34

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 35

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 36

Marketers can take advantage of the variable nature of services by

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

Question 37

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 38

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 39

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 40

The marketing of services differs from product marketing because services are all of these except

A) intangible.
B) inseparable.
C) heterogeneous.
D) renewable.
E) perishable.

Question 41

A __________ gap can be closed by getting employees to meet or exceed service standards.

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

Question 42

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 43

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 44

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 45

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 46

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 47

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 48

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

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

Question 49

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 50

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 51

The 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 52

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 53

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 54

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 55

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 56

Firms can close a __________ gap by being more realistic about the services they can provide and managing customer expectations.

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

Question 57

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 58

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 59

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 60

If there is a difference between the actual service provided to customers and the service the firm has promoted,a __________ gap exists.

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

Question 61

Students regularly seek out Professor Guillory to advise them.She has an exceptional manner,and students 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 62

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 63

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 64

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 65

By changing a standard from "be nice to customers" to "greet every customer,and if possible by name," a services marketing manager has created a(n)__________ goal.

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

Question 66

The concept of __________ refers to the area between customers' expectations regarding desired service and their minimum levels of acceptable service.

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

Question 67

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 68

Which of the following is not one of the five dimensions used by consumers to determine overall service quality?

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

Question 69

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 70

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 71

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 72

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 73

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 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

Gerald's Tire Service provides each employee with a clean,sharp-looking uniform.It also instruct 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 76

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 77

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 78

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 79

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.

Question 80

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) inconsequential to customers