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Exam 13: Services: the Intangible Product

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Question 1

Multiple Choice

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Sam was called in to meet with his boss,Tricia.He was afraid he was going to be fired for the mistake he had made dealing with an important customer of the store.Instead,Tricia explained that he had handled the situation well,listening to the customer and finding a fair solution.Tricia commented,"Even more important,working the way you did to correct the error could result in __________."

A) a smaller empowerment gap
B) increased customer purchases and positive word of mouth
C) a full refund for the customer
D) a larger service gap
E) less instrumental support

F) C) and D)
G) A) and D)

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Question 2

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A delivery gap always results in a service failure.

A) True
B) False

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Question 3

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The old cliché "service with a smile" recognizes the fact that

The Federal Aviation Administration posts monthly percentage on-time arrival data for all the major airlines on its website.Some airlines are regularly on the top of the list,while others are frequently on the bottom of the list.What type of service gap does this list illustrate? What can airlines on the bottom of the list do to address this gap?

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

When Dr.Horton checked in at the Ritz-Carlton,it was 3 a.m.He had been traveling for over 12 hours and was exhausted.His suit,which he needed for a speech that morning,looked like he had slept in it.Karen,the night clerk,offered to find a 24-hour dry cleaner and have the suit cleaned while Dr.Horton got a few hours of sleep.Karen's actions are an example of

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.

Flora wants to develop a zone of tolerance analysis for her veterinary practice.What is a zone of tolerance in service quality? What types of questions would she need to ask to conduct her analysis?

Airline passengers in Europe receive much greater monetary compensation when they are bumped due to overbooking than do passengers in the United States.How do airline passengers determine what is "fair" when there is a service failure?

The communications gap can be reduced by managing customer expectations.

Debbie spoke to the customer service representative at Sprint Cellular and was told her text messages would be unlimited on her plan.However,when she got her bill,she had been charged extra for text messages.She called the company back and was told that since she didn't record the conversation,they couldn't verify what she was told and she'd have to pay the bill.Explain which service gap(s)occurred in this instance.

Name a profession in which it might be considered unethical to market one's services.Explain why.

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.

Effective service recovery entails all of the following except

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

Most retail stores in the United States do 60 percent or more of their business in the period between Thanksgiving and Christmas.What can these stores do to get sales staff to provide "service with a smile" during this stressful part of the year?

If a firm promises more than it can deliver,

Many states have enacted "lemon" laws providing rights to consumers who purchase cars that need an excessive number of repairs.Service departments at auto dealerships quickly figure out which new models are going to create problems and often what the problems will be.If you were the service manager at a dealership,what would you do to address service problems like these?

What does it mean to say that a service is perishable? Name three services that would be considered perishable.

Service providers often encounter rude and unreasonable consumers.Services marketing managers can reduce the delivery gap,even for these customers,by