Deck 10: Transacting Value Pricing Concepts and Strategies : Establishing Value

Question 1

When service providers state that services are produced and consumed at the same time, they are referring to the fact that services are:

A)inconsistent.
B)intangible.
C)inseparable.
D)variable.
E)perishable.

Answer 1

C

Question 2

The difference between the firm's perceptions of customers' expectations and the service standards it sets is called the gap.

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

Answer 2

B

Question 3

A chef at a restaurant will not be able to reproduce the same taste with the same dish every time regardless of whether he uses the same recipe and technique.The characteristic of service exemplified in the above example is:

A)tangibility.
B)variability.
C)perishability.
D)inventory.
E)separability.

Answer 3

B

Question 4

Which of the following terms refers to a characteristic of a service which states that a service cannot be touched, tasted, or seen?

A)inseparable
B)incongruent
C)intangible
D)inconsistent
E)inventory

Question 5

The difference between customers' expectations and the firm's perception of those customer expectations is reflected in the:

A)standards gap.
B)communication gap.
C)delivery gap.
D)vertical integration gap.
E)knowledge gap.

Question 6

An old-age home has provided bicycles to its inhabitants to help them move around the grounds.However, the residents are not keen on using this service and prefer to use golf carts instead.This is an example of the gap.

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

Question 7

Since a service is produced and consumed at the same time, a car service provider allows customers to decide on the services they want to avail themselves of by providing an opportunity for their customers to get directly involved in the service.Service providers employ these measures while marketing services to overcome the characteristic of services.

A)intangible
B)inseparable
C)variable
D)perishable
E)inconsistent

Question 8

Marketers of services try to reduce the nature of services through training and standardization.

A)tangible
B)variable
C)perishable
D)inseparable
E)excusable

Question 9

When a service fails to meet the expectations that customers have about how it should be delivered, this situation results in:

A)brand dilution.
B)a service gap.
C)groupthink.
D)disintermediation.
E)cannibalization.

Question 10

The police department uses sentences that denote its commitment to work on its cars.This adds to its services.

A)separability
B)consistency
C)variability
D)tangibility
E)perishability

Question 11

Service providers at a hair salon noticed that most customers prefer reading fashion magazines.The salon then decided to subscribe to many more fashion magazines and cancel their subscription to other non-fashion magazines.This approach shows that the salon is trying to reduce the:

A)communication gap.
B)delivery gap.
C)knowledge gap.
D)standards gap.
E)consumer gap.

Question 12

When marketers refer to the fact that services cannot be held in inventory or stored for future use, they are stating that services are:

A)intangible.
B)inseparable.
C)variable.
D)perishable.
E)dissociable.

Question 13

The most fundamental difference between a product and a service is that a service is:

A)inconsistent.
B)intangible.
C)consistent.
D)dissociable.
E)separable.

Question 14

The term inseparable refers to that characteristic of service which states that:

A)services cannot be touched, tasted, or seen.
B)the quality of service may vary because it is provided by humans.
C)services cannot be held in inventory.
D)services are produced and consumed at the same time.
E)services are perishable and cannot be stored for future use.

Question 15

Firms can close the knowledge gap by:

A)setting appropriate service standards and measuring service performance.
B)getting employees to meet or exceed service standards.
C)matching customer expectations with actual service through research.
D)being more realistic about the services they can provide.
E)being more realistic about the services they provide and managing customer expectations
Effectively.

Question 16

When a firm is trying to match customer expectations with actual service through research, it is attempting to reduce the gap.

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

Question 17

Which of the following is true regarding services?

A)The tangibility of services can be reduced through training and standardization.
B)Marketing of services is less challenging compared to marketing of products.
C)The inconsistent nature of services does not provide an opportunity for marketers to use it to their advantage.
D)The perishability of services is a challenge for marketers as they have to match the demand and supply.
E)Services cannot be produced and consumed at the same time.

Question 18

Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed is called:

A)merchandise.
B)a commodity.
C)a service.
D)a pure good.
E)a product.

Question 19

A state-of-the-art gym provides a separate recreation area where customers can play chess, scrabble, and table tennis.Not many customers use this facility.This lack of perception of customer expectation on the part of the gym reflects the gap.

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

Question 20

Marketing a service is more challenging than marketing a product because a service is:

A)intangible.
B)separable.
C)invariable.
D)consistent.
E)dissociable.

Question 21

By setting appropriate service standards and measuring service performance, firms can reduce the gap.

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

Question 22

An electronics retail chain allows its front-line employees to make adjustments in day-to-day activities based on the needs of the customers across its outlets in various locations.This approach will help the firm in reducing the:

A)knowledge gap.
B)delivery gap.
C)standards gap.
D)communication gap.
E)communion gap.

Question 23

Which of the following service dimensions refers to the service provider's ability to perform the service dependably and accurately?

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

Question 24

The delivery gap differs from the communication gap in that the communication gap refers to the difference between:

A)the firm's perceptions of customers' expectations and the service standards it sets.
B)the actual service provided to customers and the service that the firm's promotion program promises.
C)the customers' expectations and the service standards set by the firm.
D)the firm's service standards and the actual service it provides to customers.
E)customers' expectations and the firm's perception of those expectations.

Question 25

A well-known airline company trains its employees to efficiently handle customer queries and provide service according to the guidelines set by the firm.The training strategy employed by the firm will help it reduce the gap.

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

Question 26

By getting employees to meet or exceed service standards, firms try to close the gap.

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

Question 27

Kathryn gets a haircut only from Jane, as Jane has been able to meet Kathryn's expectations every time she has given her a haircut.The dimension of service that influences Kathryn's decision is:

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

Question 28

By being more realistic about the services they can provide and by managing customer expectations effectively, firms can close the gap.

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

Question 29

The dimension of reliability refers to the:

A)willingness of the service providers to help customers and provide prompt service.
B)knowledge of and courtesy by employees and their ability to convey trust and confidence.
C)ability to perform the service dependably and accurately.
D)caring, individualized attention provided to the customers.
E)appearance of physical facilities, equipment, personnel, and communication materials of service.

Question 30

The standards gap differs from the communication gap in that the standards gap pertains to the difference between:

A)the firm's service standards and the actual service it provides to customers.
B)the actual service provided to customers and the service that the firm's promotion program promises.
C)the firm's perceptions of customers' expectations and the service standards it sets.
D)the customers' expectations and the service that the firm's promotion program promises.
E)customers' expectations and the firm's perception of those expectations.

Question 31

The standards gap differs from the delivery gap in that the delivery gap is the difference between:

A)the actual service provided to customers and the service that the firm's promotion program promises.
B)the firm's perceptions of customers' expectations and the service standards it sets.
C)customers' expectations and the firm's perception of those expectations.
D)the firm's service standards and the actual service it provides to customers.
E)the firm's service standards and the service that the firm's promotion program promises.

Question 32

Jennifer, who works as a dietician at a gym, checks with customers regarding their food habits and preferences before planning a specific diet chart for them.This specific understanding of the customers' expectations will help her in reducing the gap.

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

Question 33

Karen always uses the services of Flash Couriers because of its competence with delivering packages on time most of the time.The service dimension influencing Karen's choice in this scenario is:

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

Question 34

The service dimension that refers to the willingness of service providers to help customers and provide prompt service is:

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

Question 35

The knowledge gap differs from the standards gap in that the standards gap pertains to the difference between:

A)the firm's service standards and the actual service it provides to customers.
B)customers' expectations and the firm's perception of those expectations.
C)the firm's perceptions of customers' expectations and the service standards it sets.
D)the customers' expectations and service standards set by the firm.
E)the actual service provided to customers and the service that the firm's promotion program
Promises.

Question 36

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

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

Question 37

The delivery gap differs from the knowledge gap in that the knowledge gap reflects the difference between:

A)the firm's service standards and the actual service it provides to customers.
B)the actual service provided to customers and the service that the firm's promotion program promises.
C)the firm's perceptions of customers' expectations and the service standards it sets.
D)the customers' expectations and the actual service provided to the customers.
E)customers' expectations and the firm's perception of those expectations.

Question 38

Customers' perceptions of how well a service meets or exceeds their expectations is referred to as:

A)intangibility.
B)zone of tolerance.
C)service quality.
D)distributive fairness.
E)procedural fairness.

Question 39

Firms can close the communication gap by:

A)getting employees to meet or exceed service standards.
B)achieving service goals through training.
C)matching expectations with actual service through customer research.
D)being realistic about the services they provide and managing customer expectations.
E)evaluating the service quality by using well-established marketing metrics.

Question 40

The difference between the actual service provided to customers and the service that the firm's promotion program promises is referred to as the:

A)knowledge gap.
B)standards gap.
C)communication gap.
D)delivery gap.
E)criterion gap.

Question 41

A beach resort provides a questionnaire to its customers when they are checking out of the resort that asks customers to rate the service based on different service quality dimensions.The resort will use their answers to check if the services have met customer expectations.This information will help the resort to:

A)define the derived demand.
B)define the zone of tolerance.
C)decide on the discounts to provide.
D)define the internal locus of control.
E)determine the price-equity ratio.

Question 42

An electronics retail chain asked its customers to rate the service it provides at its customer support division based on the inclination and alertness of staff members in providing service to customers.The service dimension that the company is trying to evaluate in this scenario is:

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

Question 43

Jane prefers to visit a particular hair salon because of its skilled hair stylists who are friendly and have gained her trust by providing good service during her previous visits.The service dimension influencing Jane's decision to stick to the same service provider is:

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

Question 44

The dimension of responsiveness used by customers to determine overall service quality refers to the:

A)knowledge of and courtesy used by employees and their ability to convey trust and confidence.
B)willingness of service providers to help customers and provide prompt service.
C)ability of service providers to perform the service dependably and accurately.
D)caring, individualized attention provided to customers by service providers.
E)appearance of physical facilities, equipment, personnel, and communication materials of
Service.

Question 45

When a firm is questioning its customers about a service quality dimension that relates to customers' desired and expected level of service, the firm is trying to define the:

A)zone of tolerance.
B)internal locus of control.
C)price-equity ratio.
D)breakeven quantity.
E)derived demand.

Question 46

Valuemart, a supermarket chain, trains its employees to perform their tasks according to the guidelines set by the firm.This method employed by them will help the firm in reducing the
Gap)

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

Question 47

Eric prefers to travel by a particular airline because he is impressed by the care and attention provided by its staff to make the passengers feel valued and special.The service dimension influencing Eric's decision to choose that airline is:

A)reliability.
B)promptness.
C)empathy.
D)tangibility.
E)assurance.

Question 48

An ongoing marketing research system that collects customer insights and intelligence to influence and drive business decisions is:

A)an observation.
B)the zone of tolerance.
C)a voice-of-customer program.
D)an in-depth interview.
E)a contextual enquiry.

Question 49

The caring, individualized attention provided to customers is referred to as , a dimension used by customers to determine overall service quality.

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

Question 50

A well-known restaurant asked its customers to evaluate its service quality by filling out a questionnaire.The analysis of the questionnaire showed that the restaurant scored below the zone of tolerance on the tangibles dimension.This implies that the customers were not happy with the:

A)employees' ability in performing a service.
B)knowledge and courteousness of the employees.
C)attitude of the manager.
D)facilities provided by the restaurant.
E)attention provided to them by the employees.

Question 51

Dr.White is experienced and is regarded as highly knowledgeable.Patients prefer to consult him as he instills faith and confidence in them.The dimension of service influencing the decision of patients in this scenario is:

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

Question 52

The appearance of physical facilities, equipment, personnel, and communication materials is summarized by the service dimension called:

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

Question 53

The University of Westry has a very traditional campus with an old-world look and feel.Dorm rooms are large, but the bathrooms look a little old.Which of the five service quality dimensions does this reflect?

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

Question 54

The service dimension that refers to the knowledge of and courtesy by employees and their ability to convey trust and confidence is called:

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

Question 55

A new hotel in the city styles its rooms in a contemporary manner and provides modern amenities such as wireless Internet and a 3-D gaming arena that caters to the younger population.These facilities represent which of the following service dimensions?

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

Question 56

An excellent and straightforward method for assessing customers' service expectations is making effective use of:

A)customer complaint behaviour.
B)syndicated data services.
C)employee empowerment programs.
D)summer internships.
E)procedural fairness forums.

Question 57

Sara does not like to wait for long before being served at a restaurant.Hence, the dimension of service that will influence Sara when she rates the quality of service at the restaurant will be:

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

Question 58

The residents of Lifelife, a retirement home in Canada, are provided with good care and the volunteers who help them provide complete attention to their needs.The residents are happy with the service being provided to them.The dimension of service on which the retirement home will score high is:

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

Question 59

Skyline Aviation is unable to gain the trust of its customers because its ground operations staff is inefficient and discourteous when handling customer queries during service failures.The customers of this airlines are likely to rate it below the zone of tolerance in the dimension.

A)assurance
B)reliability
C)marketing
D)tangibles
E)accuracy

Question 60

The area between customers' expectations regarding their desired service and the minimum level of acceptable service is called the:

A)service recovery gap.
B)zone of tolerance.
C)communication gap.
D)range of consumer perception.
E)reliability maxim.

Question 61

Which of the following is true regarding the communication gap?

A)It refers to the difference between the firm's service standards and the actual service it provides to customers.
B)Empowering service providers is an effective method of reducing this gap.
C)It can be reduced by managing customer expectations effectively.
D)It reflects the difference between customers' expectations and the firm's perception of those customer expectations.
E)It can be closed by getting employees to meet or exceed service standards.

Question 62

Tom works as flight attendant and puts in long hours serving unhappy customers.The management, noticing his efforts, recommends him for the Star of the Year Award.This reward strategy will help in reducing the gap.

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

Question 63

The hotel scored high on the responsiveness dimension, indicating that the customers are happy with the:

A)compliance and prompt service of the employees.
B)individual attention provided to them by the employees.
C)way the restaurant looks.
D)knowledge of employees regarding services.
E)accuracy of the service provided by the employees.

Question 64

A fast-food outlet provides home delivery.When Chris calls to place an order, the restaurant informs him that delivery of the order will be delayed because of a delivery staff shortage.This strategy helps them close the gap in their services.

A)knowledge
B)delivery
C)criterion
D)effectiveness
E)standards

Question 65

Joanne bought a gift for her friend's birthday from an online website.The service provider failed to deliver the gift on the day it had promised.The service provider provided coupons to Joanne a week later, which she could use to make more purchases online from them.The service recovery strategy that the service provider used in this instance was:

A)listening to the customer.
B)resolving the problem immediately.
C)achieving goals through training.
D)finding a fair solution.
E)not committing to service quality.

Question 66

Which of the following service gaps did Mark and Julia experience when they visited the Valley Resort?

A)knowledge gap
B)communication gap
C)criterion gap
D)standards gap
E)delivery gap

Question 67

Which of the following strategies will help a firm to reduce the standards gap?

A)promising only what it can deliver or a little less
B)effectively using customer complaint behaviour
C)collecting consumers' perceptions of service quality by using a questionnaire
D)setting specific service standards based on customers' expectations
E)replacing people with machines

Question 68

Which of the following strategies employed by the resort allowed Jennifer to compensate for the delivery gap?

A)evaluating service quality
B)empowering employees
C)providing incentives to employees
D)replacing people with machines
E)achieving goals through training

Question 69

Jimmy's car garage provides predictably great service to its customers by providing service training to employees by using a well-defined process.The strategy used by the garage to reduce the standards gap is:

A)analyzing service performance by using service dimensions
B)providing incentives to its service providers.
C)replacing people with machines.
D)achieving service goals through training.
E)understanding customers' expectations through research.

Question 70

A local grocery store sets up an automatic billing counter for customers who buy fewer than five items so that they need not wait long to check out.This has made the billing process efficient and customers are very satisfied.This strategy reduces the gap in their services.

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

Question 71

A customer's perception of the benefits he or she received compared with the costs that resulted from a service failure is called:

A)procedural fairness.
B)a service gap.
C)distributive fairness.
D)a zone of tolerance.
E)a communication gap.

Question 72

The CEO of a services company routinely attends the team meetings of the company.He understands customer problems and provides solutions based on his experience and by following a standard well-defined process.This works as a cue to the employees to emulate the CEO in the way problems are handled.Which of the following strategies is being exemplified in this scenario?

A)empowering employees
B)providing support to service providers
C)commitment to service quality
D)replacing people with machines
E)achieving service goals through training

Question 73

Kathy plans a weekend getaway to a natural lake resort known for its migratory birds.On arrival, she learns that the hotel is overbooked.Reception places Kathy in lower-priced shared accommodation instead of the studio room which she had booked.Kathy decides not to book with the resort again.The service provider was unable to recover the service failure because:

A)it did not listen to her complaints.
B)it was not permitted to compensate her.
C)it did not provide adequate compensation to Kathy.
D)Kathy was not convinced even after she received fair compensation.
E)it did not respond immediately to her complaints.

Question 74

Jennifer compensated for the service failure by:

A)appearing anxious to rectify the situation.
B)explaining the process the resort uses to resolve complaints.
C)providing adequate compensation for the inconvenience.
D)asking employees to quickly solve the problem at the spa.
E)listening to the clients' complaint and promising that it would not be repeated again.

Question 75

A company that specializes in water purifiers recently installed a system at John's house.John realizes that the system is faulty because water starts leaking within a few days of the installation.John calls the company's service team, which goes over the problem in detail with him and then sends service personnel to John's house to fix the problem.In this scenario, the company tried to resolve the issue by:

A)attempting to rectify the situation.
B)explaining the process they use to resolve complaints.
C)providing adequate compensation for the inconvenience.
D)replacing the system.
E)eagerly listening to John's complaint and resolving the problem.

Question 76

An event management company specializing in wedding receptions and birthday parties clarifies with clients the services it can actually provide and the number of guests it can handle before taking on an assignment.The company is trying to reduce the communication gap by:

A)setting appropriate service standards.
B)forcing its employees to meet the goals.
C)committing to provide more services.
D)trying to match customer expectations.
E)promising only what it can deliver.

Question 77

A local utilities company has setup an online mechanism to pay bills which provides information to customers online so that the customers do not have to drive down to the local office.This service has improved customer satisfaction immensely and encouraged timely payment and resolution of issues.This strategy helps to reduce the company's:

A)knowledge gap.
B)delivery gap.
C)communication gap.
D)standards gap.
E)communion gap.

Question 78

This evaluation of service quality by defining the zone of tolerance will help the hotel to reduce gap.

A)criterion
B)knowledge
C)customer
D)communication
E)communion

Question 79

A daycare at a technology park in Saskatoon enables parents to watch their kids via a CCTV camera by streaming the video via a secure link.This technology helps parents make sure that their kids are comfortable at the daycare.This resource adds to the daycare's services.

A)variability
B)dissociability
C)tangibility
D)inconsistency
E)conceptuality

Question 80

Most customers allotted a high importance score for the reliability dimension.This shows that most of the customers give importance to:

A)the willingness of the employees to provide a prompt service.
B)the knowledge and the courtesy shown by the employees.
C)the care and attention provided to them by the employees.
D)the ability of the employees to provide good service consistently.
E)the appearance of the hotel and their employees.