Services Marketing
Chapter Exam Questions
Course Introduction
Services Marketing focuses on the unique challenges and strategies involved in marketing intangible products and experiences. This course explores the distinctive characteristics of service delivery, the service marketing mix (7Ps), customer relationship management, service quality, and customer satisfaction. Students will analyze real-world cases to understand consumer behavior in services, learn how to design and deliver exceptional service encounters, manage service failures, and develop effective communication and branding strategies for service organizations across various industries such as hospitality, healthcare, finance, and information technology.
Recommended Textbook Services Marketing 6th Edition by Valerie Zeithalm
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Page 2
Chapter 1: Introduction to Services
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Q1) Due to the _____ characteristic of services,customers will frequently interact with each other during the service production process and may affect each other's experiences.
A) Comparability
B) Intangibility
C) Heterogeneity
D) Simultaneous production and consumption
E) Perishability
Answer: D
Q2) Salt,bricks and paper clips are three examples of tangible dominant products.
A)True
B)False
Answer: True
Q3) Maria Kingsley is a fortune teller.She is concerned because today two of her clients missed their appointments to have her read their Tarot cards and she had plans for the money she would have earned.With which characteristic of services is Kingsley most concerned?
Answer: Perishability.
Q4) Briefly explain why it is difficult to mass produce a service.
Answer: Services are typically produced and consumed at the same time.
Page 3
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Chapter 2: Conceptual Framework of the Book: The GAPS
Model of Service Quality
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Q1) FedEx developed a 12-item statistical Service Quality Indicator to measure customer satisfaction and service quality.The index is comprised of customer-defined performance standards such as number of missed pick-ups,number of lost packages and number of late deliveries.Each of the performance standards is weighted based on the relative importance of each standard to customers.By developing a Service Quality Indicator that incorporates customer-defined performance standards,FedEx is closing provider _____ of the gaps model of service quality.
A) Gap 1
B) Gap 2
C) Gap 3
D) Gap 4
Answer: B
Q2) On which of the provider gaps are deficiencies in human resources management policies most likely to have the greatest impact?
Answer: Provider gap 3.
Q3) The synchronizing of supply and demand will narrow provider gap 4.
A)True
B)False
Answer: False
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Chapter 3: Customer Expectations of Service
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Q1) John's flight on United Airlines from Chicago to San Francisco departed two hours late because of a snowstorm in Chicago.The snowstorm that delayed John's flight is a(n):
A) Personal service influence
B) Spontaneous negative
C) Predictable service influence
D) Uncontrollable situational factor
E) Temporary personal need hindrance
Answer: D
Q2) List the three major determinants of desired service levels. Answer: Personal needs,personal service philosophy,and derived service expectations.
Q3) What is a consumer's "wished for" level of performance? Answer: Desired service.
Q4) While the zones of tolerance may vary because of differing personality types,they are stable with relation to the importance of the service dimensions.
A)True
B)False
Answer: False
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Chapter 4: Customer Perceptions of Service
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Q1) A customer's refusal to comply with park regulations when riding a roller coaster in an amusement park will have no effect on his or her level of satisfaction.
A)True
B)False
Q2) Why are public policymakers so interested in the development of a device to measure and track customer satisfaction?
Q3) Which of the following statements about customer satisfaction is true?
A) Satisfaction cannot be defined quantitatively
B) Customer satisfaction can only be analyzed if it is considered to be a static occurrence
C) Customer satisfaction can only be determined through anecdotal evidence
D) Satisfaction may be associated with feelings of ambivalence when there is a mix of positive and negative experiences
E) Customer satisfaction is not influenced by price
Q4) A catalog retailer that sells boxed fruit would like its customers to think of the operation as a gift provider.Its operators are trained to help customers pick out just the right customized gift for family members and friends.Which two dimensions of service quality are most evident in this example?
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Chapter 5: Listening to Customers Through Research
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Q1) Discuss conducting marketing research for a national car rental company.
Q2) An effective services research program includes either quantitative or qualitative research,but never both.
A)True
B)False
Q3) Which type of research is most reminiscent of an exit interview that would ask a question such as,"What exactly could we have done to keep you from leaving the company?" and "Is there anything we can do to keep you from resigning from your position"?
A) Complaint solicitation
B) Critical incidents studies
C) Relationship survey
D) Post transaction survey
E) Lost customer research
Q4) Which of the following types of research is unique to services?
A) Trailer calls
B) Market-oriented ethnography
C) Mystery shopping
D) Database marketing research
E) Critical incident studies
Page 7
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Chapter 6: Building Customer Relationships
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Q1) Retention strategies built around financial bonds:
A) Provide long-term profit increases
B) Use price as the primary marketing mix element
C) Are difficult to initiate
D) Provide long-term competitive advantage
E) Have a high degree of service customization
Q2) Which retention strategy relies primarily on financial incentives?
Q3) Social bonds alone may not tie the customer permanently to the firm,but they are much more difficult to imitate than financial incentives.
A)True
B)False
Q4) What are four customer goals for organizations that engage in relationship marketing?
Q5) A primary goal of firms at the friendship stage of the relationship is:
A) Customer retention
B) The creation of a unique product
C) Creating a competitive advantage through their marketing mix
D) Gaining a familiarity of how the customer creates its service offerings
E) The enhancement of customer relationships
Q6) What are the three types of benefits firms enjoy through relationship marketing?
Page 8
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Chapter 7: Service Recovery
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Q1) Kate recently learned to play golf.Last week,she decided to try a new golf course.She signed in to play and was given the keys to an electric golf cart without any instructions on how to operate it.After she drove the cart into a lake,she swore never to play golf again.According to Kate,"There are just too many things you have to know before you can become a real golfer." Two months later,the golf course manager called Kate and asked why she had not returned to play another game.Which service recovery strategy is being used in this example?
A) Make the service fail safe
B) Encourage and track complaints
C) Treat customers proactively
D) Use procedural fairness
E) Learn from lost customers
Q2) The empowerment of employees is a useful tool in service recovery.
A)True
B)False
Q3) People who do not complain often believe that complaining is a waste of time and effort.
A)True
B)False
Q4) What is the best way to conduct lost customer research?
Page 9
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Chapter 8: Service Innovation and Design
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Q1) What should be the two primary objectives of the service provider as it enters the commercialization stage of the new-service development process?
Q2) The last step of building a service blueprint is to add the physical evidence of the service.
A)True
B)False
Q3) When Marilyn returned to her oncologist's office for a checkup,she was pleased to find the waiting room had been remodeled and it now contained a large aquarium.There was even a sign that said watching fish is an excellent stress reducer.Since Marilyn did not feel nearly as anxious before going to the oncologist's examination room,she decided the addition of the swimming fish was a good:
A) Major innovation
B) New service for the currently served market
C) Service line extension
D) Service improvement
E) Style change
Q4) What kind of an innovation occurs when a beauty salon adds a tanning booth to its service offerings?
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Chapter 9: Customer-Defined Service Standards
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Q1) New management of the Falcons football team surveyed former season ticket holders to determine why they were no longer attending the games.As a result,it set "Clean and well-stocked restrooms" as one of its _____ customer-defined standards.
A) Responsive
B) Hard
C) Informal
D) Measurable
E) Soft
Q2) When a hair salon introduced a database system for keeping up with information on clients' hair,such as hair color and timing of permanents,it is one way of addressing customer requirements.What name applies to this method of changing services to better meet customer needs?
Q3) Provide an example of a situation in which a strategy for delivering customized service is more appropriate than a strategy of standardization.
Q4) What are service performance indexes? How are they created and how do companies use these indexes?
Q5) Describe the three factors necessary for appropriate service standards.
Q6) What is the final step in the process for setting customer-defined standards?
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Chapter 10: Physical Evidence and the Servicescape
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Q1) What is the first step in developing physical evidence strategy?
Q2) For a physical evidence strategy to be effective,it must:
A) Offer customization capabilities
B) Create departmental integration
C) Be linked clearly to the organization's overall goals and vision
D) Be blueprinted
E) Avoid creating negative ambient conditions
Q3) The receptionist at Dr.Smith's office is shut off from the waiting area by a glass partition.She must open a small door to communicate with patients and at times,it is difficult to get her attention.In this example,the servicescape could be improved with respect to its role as a:
A) Package
B) Facilitator
C) Differentiator
D) Boundary spanner
E) Socializer
Q4) Name an elaborate self-service servicescape.
Q5) Why are spatial layout and functionality very important to customers in self-service environments?
Q6) The servicescape can play many strategic roles simultaneously.List them.
Page 12
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Chapter 11: Employees Roles in Service Delivery
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Q1) When a lawyer feels a conflict between what she is asked to do and her own personality,orientation or values she is experiencing _____ conflict.
A) Person/role
B) Vertical
C) Organization/client
D) Inter-client
E) Horizontal
Q2) Discuss the underlying logic of the service-profit chain
Q3) Who would be the boundary-spanning employees at a restaurant like Longhorn Steakhouse,Applebee's,Red Lobster,and Pizza Hut?
Q4) Process reengineering is one of the easiest ways to develop service-oriented internal processes.
A)True
B)False
Q5) In a service culture,good service is a way of life and it comes naturally to the members of the organization because it is an important norm.
A)True
B)False
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Chapter 12: Customers Roles in Service Delivery
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Q1) Each year representatives of college activities boards throughout the U.S.gather at regional National Association of College Activities (NACA)conventions to listen,talk to,and hire acts for the upcoming school year.Auburn Moon from Philadelphia is one of the agencies that attends the NACA conventions.The owner of this agency prepares a CD that contains two or three songs by each of the acts she represents and gives them out to students at the conventions.Students can listen to the CDs at their leisure and share the music with other decision makers on campus.With the CDs,Auburn Moon is _____ about its entertainers and their abilities.
A) Motivating its customers
B) Positioning its customers
C) Managing the customer mix
D) Defining its customers' jobs
E) Educating its customers
Q2) Individual differences exist in customers' desire to participate in the service process.
A)True
B)False
Q3) List the three major roles played by customers in service delivery.
Q4) What are the overall goals of a customer participation strategy?
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Page 14
Chapter 13: Managing Demand and Capacity
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Q1) Large scale disasters such as Hurricane Katrina in 2005 and the Japanese earthquake and tsunami in 2011 can cause ________ in telephone and Internet services.
A) Random demand fluctuations
B) Relative demand shifts
C) Predictable demand cycles
D) Vertical demand configurations
E) Organized demand patterns
Q2) A service firm is underutilizing its labor,equipment and facilities when:
A) Demand exceeds maximum capacity
B) Demand exceeds optimum capacity
C) Supply and demand are balanced at the level of optimum capacity
D) Demand is below optimum capacity
E) Demand is below minimum capacity
Q3) Which of the following is NOT a base for differentiating waiting customers?
A) Willingness to perform service role
B) Importance of the customer
C) Duration of the service transaction
D) Urgency of the job
E) Payment of a premium price
Q4) List the four bases that can be used to differentiate waiting customers.
Page 15
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Chapter 14: Integrated Service Marketing Communications
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Q1) The reason Kente chose to stay at a particular chain of bed & breakfast inns was because its website promises free breakfast at any inn that did not offer a wake-up service.Yet when Kente stayed at one of the chain's inns,she was allowed to oversleep and missed an important sales call even though she had asked to be awakened at seven when she checked in.The inn manager told her that his hotel did not offer a wake-up service and apologized for her inconvenience.He did not offer her a free breakfast and Kente swore never to stay at the inns again.The chain of inns needs to:
A) Underpromise and overdeliver more services
B) Coordinate its external communications
C) Create more functional internal marketing channels
D) Use more centralization of service definition
E) Use transformational advertising
Q2) If a company's goal is to manage customer expectations,it should avoid offering service guarantees.
A)True
B)False
Q3) Discuss the special role that branding plays in service companies.
Q4) Give three examples of external marketing communications.
Q5) What's the difference between horizontal and vertical internal communications?
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Chapter 15: Pricing of Services
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Q1) All of the following are situations in which a penetration pricing strategy would be appropriate EXCEPT:
A) Sales volume of the service is very sensitive to price
B) Economies in unit costs can be achieved by operating at large volumes
C) A service faces threats of strong potential competition very soon after introduction
D) There is no class of buyers willing to pay a higher price to obtain the service
E) The service is a major improvement over past services
Q2) _____-based pricing occurs in services that are standardized across providers.
A) Demand
B) Profit
C) Competition
D) Supply
E) Cost
Q3) Search costs are the costs invested to identify and choose from services you desire.
A)True
B)False
Q4) List three groups of service providers that typically use results-based pricing.
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Chapter 16: The Financial and Economic Impact of Service
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Q1) FedEx measures customer satisfaction and service quality with a 12-item statistical measure called the Service Quality Indicator.One of the items measured by FedEx is the number of missed pickups per day.In a balanced performance scorecard,the number of missed pickups per day would represent a(n)_____ measure.
A) Competitor
B) Customer
C) Financial
D) Innovation and learning
E) Operational
Q2) The increased profits a service firm realizes from customer retention result from all of the following EXCEPT:
A) Lower costs
B) Increased volume of purchases
C) The ability to charge a price premium
D) Customer defection
E) Increased word-of-mouth communication
Q3) How have companies traditionally measured their performance?
Q4) How does the way the balanced performance scorecard examines operational measures differ from the traditional uses of such measurements?
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