Final exam pool items (Chs. 9, 11, 12, 13, 14, 15 & 17 not 18)



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ANS: D PTS: 1 REF: 160 OBJ: 11-2 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Strategy | TB&E Model Customer

21. It is difficult to achieve consistency and standardization of services because of which service characteristic?



a.

customization

b.

simultaneous production and consumption

c.

intangibility

d.

perishability

e.

heterogeneity

ANS: E PTS: 1 REF: 160 OBJ: 11-2 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

22. Jackson Caputo owns and operates Jax Stables, a complete horse service that offers grooming, training, show training for handlers, boarding, and veterinary care. To maintain a quality image, Caputo regularly provides training for each employee in the company's operations, objectives, and expected performance standards. What unique aspect of services is Caputo attempting to address?

a.

heterogeneity

b.

perishability

c.

intangibility

d.

simultaneous production and consumption

e.

unfocused targeting


ANS: A

Heterogeneity causes inconsistency and lack of standardization. Training helps to alleviate these conditions.

PTS: 1 REF: 160 OBJ: 11-2 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

23. Which of the following is NOT a method firms can use to reduce the inherent variability of services?



a.

standardized preparation procedures

b.

mechanizing the process

c.

standardization

d.

providing tangible cues

e.

training of employees in performance standards

ANS: D


Providing tangible cues will not increase the consistency or reliability of the service itself.

PTS: 1 REF: 160-161 OBJ: 11-2 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Strategy

24. Due to service _____, services cannot be stored, warehoused, or inventoried.



a.

tangibility

b.

variability

c.

intangibility

d.

perishability

e.

heterogeneity

ANS: D PTS: 1 REF: 161 OBJ: 11-2 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

25. Alabama Adventure, an amusement park in Birmingham, offers reduced rates on weekdays and higher prices for those who want to attend on weekends. It also offers lower prices for patrons who enter the park after 4 p.m. This is a way to contend with the service characteristic of:



a.

variability

b.

perishability

c.

intangibility

d.

inseparability

e.

simultaneous production and consumption


ANS: B

Differential pricing tries to even out demand. This is important because services cannot be stored, inventoried, or warehoused.

PTS: 1 REF: 161 OBJ: 11-2 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Pricing

26. Virtual Bellhop is a service provider that ships awkward sporting goods to vacation destinations so its customers do not have to worry about lugging them through airports or having them damaged in transit. During the summer months and December, the company is extremely busy packaging and shipping sporting gear. During other months that are not popular vacation months, it may only have one customer a day. This inconsistency of demand means Virtual Bellhop has to deal with the problems associated with the service characteristic of:



a.

intangibility

b.

inseparability

c.

perishability

d.

simultaneous production and consumption

e.

variability

ANS: C


Services cannot be stored, inventoried, or warehoused.

PTS: 1 REF: 161 OBJ: 11-2 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

27. Which of the following is NOT a service component customers use to evaluate service quality?



a.

validity

b.

empathy

c.

assurance

d.

responsiveness

e.

reliability

ANS: A PTS: 1 REF: 161 OBJ: 11-3 TYPE: Def



TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

28. Western Union allows people in one nation or one area of the country to dependably, accurately, and consistently transfer funds to each other. In other word, Western Union provides which service quality to its users?

a.

tangibility

b.

responsiveness

c.

assurance

d.

responsibility

e.

reliability


ANS: E

Reliability is the ability to perform the service dependably, accurately, and consistently.

PTS: 1 REF: 161 OBJ: 11-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Customer

29. Virtual Bellhop is a company that ships awkward sporting goods to vacation destinations so its customers to not have to worry about lugging them through airports or having them damaged in transit. Thus far, its record for getting the sporting equipment to the correct destination for the vacationer is perfect. This indicates the company excels at which component of service quality?

a.

tangibles

b.

empathy

c.

reliability

d.

flexibility

e.

assurance


ANS: C

Reliability is the ability to perform the service dependably and consistently.

PTS: 1 REF: 161 OBJ: 11-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Strategy

30. Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. Users can see the ratings given to each specialist by previous users before they contact that specialist. Which service component does Keen.com use to help its customers evaluate its service quality?

a.

empathy

b.

assurance

c.

tangibles

d.

flexibility

e.

responsiveness


ANS: B

Assurance refers to the knowledge and courtesy of the employees. Customer ratings would provide this information.

PTS: 1 REF: 161 OBJ: 11-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

31. Courtney's mother died of breast cancer, and she is afraid of getting cancer. When she went to get a baseline mammogram, she wanted a facility where the personnel would not think her fears were silly and would answer all of her questions without making her feel stupid for asking them. By which of the following components of service quality is Courtney most likely to rate the mammogram provider?



a.

empathy

b.

assurance

c.

tangibles

d.

reliability

e.

responsiveness

ANS: A


Empathy refers to providing caring and individualized attention to customers.

PTS: 1 REF: 161 OBJ: 11-3 TYPE: App



TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

32. Virtual Bellhop is a company that ships awkward sporting goods to vacation destinations so its customers to not have to worry about lugging them through airports or having them damaged in transit. The care with which the items are packed and the condition of the package when it arrives indicate concern with which aspect of service quality?

a.

tangibles

b.

responsiveness

c.

reliability

d.

variability

e.

homogeneity


ANS: A

Tangibles are the physical evidence of a service.

PTS: 1 REF: 161 OBJ: 11-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

33. TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home. The _____ could be used to identify the problem if there were significant differences between what TeamBuilds says it provides to customers and what it actually provides.

a.

gap model of service quality

b.

service pyramid

c.

four dimensions of service quality

d.

service paradigm

e.

service delineation matrix


ANS: A

This would be an example of Gap 4.

PTS: 1 REF: 162 OBJ: 11-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Strategy

34. Clarksdale, Mississippi, is the home of the Shack Up Inn, the only inn in the world that is made up of actual shotgun houses. (Shotgun houses contain two or three rooms in a row. A resident of the house is able to stand at the front door and shoot through all the rooms and out the back door without hitting any walls.) Obviously, the shacks are not luxurious although they do have indoor plumbing and electricity. The owner decided these were the only changes customers would want to be made in the shacks. In this instance, the service provider is likely to have a gap between:

a.

what management thinks customers want and the quality specifications that management develops to provide the service

b.

what the company tells the customer it provides and what is actually provided

c.

service quality specifications and employee training

d.

what customers want and what management thinks customers want

e.

service expectations and what customers are told to expect


ANS: D

The owner may not understand the needs and desires of the average tourist.

PTS: 1 REF: 161 OBJ: 11-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Customer

35. Budget airlines are a new service in China. Neither their passengers nor the airlines themselves know what to expect from each other. Shanghai-based Spring Airlines is a start-up service with a tight budget. According to the owner of Spring Airlines, customer satisfaction levels are at 97 percent although many of Spring Airlines' employees have been throttled and had their clothes ripped off by unhappy passengers. According to the _____, there is a gap between what customers want and what management thinks customers want.

a.

gap model of service quality

b.

service pyramid

c.

four dimensions of service quality

d.

service paradigm

e.

service delineation matrix


ANS: A

The gap model identifies five gaps that can cause problems in service delivery and influence customer evaluation of service quality.

PTS: 1 REF: 161-162 OBJ: 11-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Customer | TB&E Model International Perspective

36. At the dealer-owned Radio Shack, the store manager is frustrated at the level of service employees provide to customers even after he wrote a guide to customer service and instructed each employee to read the guide. This is an example of a gap between:

a.

the service quality specifications and the service that is actually provided

b.

what the company provides and what the customer is told it provides

c.

the service customers receive and the service they want

d.

what customers want and what management thinks customers want

e.

what management thinks customers want and the quality specifications management develops to provide the service


ANS: A PTS: 1 REF: 162 OBJ: 11-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Customer

37. An Internet company, icruise.com, sold cruises by offering a "Suntan Guarantee." The guarantee promised a full refund on a Caribbean cruise if more than one-quarter inch of rain fell from 10 a.m. to 4 p.m. for a preset number of days depending on the length of the cruise. If it rained and the Internet company failed to honor its refund policy, it would represent a gap between:

a.

what management thinks customers want and the quality specifications that management develops to provide the service

b.

what the company tells the customer it provides and what is actually provided

c.

service quality specifications and employee training

d.

what customers want and what management thinks customers want

e.

none of these


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