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Vernon has a used Nordic Track he wants to sell.He has been told to take it to Play It Again Sports.The retail outlet buys used athletic equipment and resells it.Vernon took his Nordic Track to a store near his house and was given $60 for the machine.Later he learned that other Play It Again Sports stores would have paid him at least $100 for the exercise machine and as much as $120.Vernon's dissatisfaction with Play It Again Sports is the result of:


A) Inadequate management of service promises
B) Over-promising in advertising and personal selling
C) Inadequate customer education
D) Inadequate management of customer perceptions
E) Differences in policies and procedures across distribution outlets

F) B) and E)
G) None of the above

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Because he has a busy practice,new patients for dentist Dr.Kirby Brown are informed that,unless there is an emergency,the first available appointment will be in three months.If they accept the appointment,they will be reminded of their appointment by a courtesy call.This first visit will take about an hour.On this visit,their teeth will be cleaned and x-rayed,their gums will be examined and the dentist will talk to them about future dental treatment needs.Dr.Brown is _____________ to manage customer expectations.


A) Managing horizontal communications
B) Making realistic promises
C) Offering a service guarantee
D) Offering choices
E) Coordinating external communication

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

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Josh's teachers describe him as a mathematical genius.His parents did not get any education after high school.They have hired Josh a tutor even though they do not understand why Josh needs to understand string theory and quantum physics.The tutoring that Josh receives has a high degree of _____ for Josh's parents.


A) Nonsearchability
B) Abstractness
C) Incorporeal existence
D) Generality vs.specificity
E) Mental impalpability

F) None of the above
G) A) and C)

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Emory Vision Center has a packet of information that it sends to people who are interested in LASIK surgery.The center also has a doctor available to speak to organizations about how vision can be corrected.In addition,it publishes a newsletter called The Visionary in which it offers family discounts,clarifies patient expectations and notes awards and honors the center receives.The center also manages a web site that contains news on the latest innovative research techniques.Through its communications with current and potential patients,Emory Vision Center is:


A) Managing internal marketing communications
B) Resetting customer stamdards
C) Managing customer education
D) Leveraging social media
E) Creating effective upward communication

F) A) and D)
G) All of the above

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Just as all service providers must advertise,all need integration across departments to be able to deliver quality services.

A) True
B) False

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Which of the following is NOT one of the properties of intangibility that has been identified by the research of Banwari Mittal?


A) Nonsearchability
B) Abstractness
C) Incorporeal existence
D) Dynamic vs.static
E) Mental impalpability

F) A) and B)
G) A) and C)

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The reason Sophia chose to stay at a particular chain of bed & breakfast inns was because its web site promises free breakfast at any inn that did not offer a wake-up service.When Sophia 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 7:00 AM.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 Sophia 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

F) A) and D)
G) D) and E)

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When Selena purchased a new refrigerator from Sears,she was told by the salesperson that the refrigerator would be delivered to her apartment on Thursday between the hours of 1:00 p.m.and 3:00 p.m.However,the refrigerator was not delivered until 4:00 p.m.on Friday.The late delivery caused Selena to be dissatisfied with Sears's delivery service.Selena's dissatisfaction with Sears' delivery service resulted from:


A) Inadequate management of service promises
B) Over-promising and over-delivering
C) Inadequate customer education
D) Excessive horizontal communication
E) Differences in policies and procedures across distribution units

F) A) and B)
G) A) and C)

Correct Answer

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The four strategies of tangibilization proposed by researchers Leonard Berry and Terry Clark are:


A) Documentation,visualization,verification and illustration
B) Illustration,verification,documentation and intimation
C) Association,physical representation,documentation and visualization
D) Association,internalization,testimonials and imitation
E) Intimation,allusion,association and documentation

F) A) and E)
G) None of the above

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Service providers sometimes need to tell customers that services have been performed for them.To get credit for their actions,service providers need to reinforce their actions with appropriate communication about their accomplishment of the service.After which of the following services customers most likely require further information?


A) Pet grooming
B) A fluoride treatment given to a child
C) A full-body massage
D) Car insurance
E) Gas station

F) A) and C)
G) B) and C)

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An insurance company that used advertising showing satisfied customers thanking the company for their prompt payment after a flood would be addressing service intangibility.

A) True
B) False

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Rangu read in the newspaper that he could receive a free month's cable television service if he would agree to use the service for two years.The ad had no other stated restrictions and appeared to apply to the entire county in which Jackson lived.When Rangu went by the cable television office,the salesperson there told Rangu that his area of the community was not eligible for the free month offer.If he wanted cable,he had to pay $400 to have the cable service brought to his house.Rangu experienced a problem with:


A) Under-promising and over-delivering
B) Marketing communications that were not integrated
C) A lack of interactive marketing communications
D) Poor vertical communications
E) Ignorance of the service marketing mix

F) A) and C)
G) A) and B)

Correct Answer

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Variations in the supply and demand of services result in:


A) Inadequate management of service promises
B) Over-promising in advertising and personal selling
C) Insufficient word-of-mouth-communication
D) Inadequate horizontal communication
E) Differences in policies and procedures across distribution units

F) A) and C)
G) All of the above

Correct Answer

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Many companies find themselves in the position of having to manage expectations downward.

A) True
B) False

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If a company's goal is to manage customer expectations,it should avoid offering service guarantees.

A) True
B) False

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Service providers should never encourage word-of-mouth communication.

A) True
B) False

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Inadequate customer communication occurs when:


A) The services have synchronized supply and demand
B) Customers are experienced users of the service
C) The services are low in credence qualities
D) The service is difficult for the customer to evaluate even after it has been delivered
E) The services are high priced

F) B) and D)
G) C) and E)

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Cable TV companies that offer subscribers different programming packages are:


A) Outsourcing
B) Creating tiered-value service offerings
C) Communicating with customers
D) Managing horizontal communications
E) Exceeding customer expectations

F) A) and B)
G) B) and D)

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Cookies is a retail store where customers host parties for guests to bake and decorate cookies.The store offers customers their money back if the party experience is boring.Cookie's is:


A) Creating tiered-value offerings to improve customer education
B) Preparing customers for the service process through customer education
C) Offering a service guarantee to manage customer expectations
D) Featuring the servicescape as a tool for integrating its marketing communications
E) Confirming that performance equals performance standards to manage customer expectations

F) B) and E)
G) A) and B)

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Which of the following statements about the Banwari Mittal's properties of intangibility is true?


A) Services such as dental care have less nonsearchability than babysitting
B) An ATM is high in incorporeal existence
C) Service benefits such as fun and excitement are concrete terms
D) Services like doctors,amusement parks and health clubs are typically described in specific terms
E) Services such as an MRI or a cat scan have a high level of mental impalpability

F) None of the above
G) A) and D)

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