Services Marketing 6th Edition Zeithaml Test Bank

Services Marketing 6th Edition Zeithaml
Test Bank
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Chapter 08 - Service Innovation and Design
Chapter 08
Service Innovation and Design
Multiple Choice Questions
1. (p. 218-219) Which of the following is NOT a risk incurred by describing services in words
alone?
A. Oversimplification
B. Incompleteness
C. Subjectivity
D. Biased interpretation
E. Transformation
Difficulty: Moderate
2. (p. 219) The supervisor of a hotel housekeeping staff instructed a new housekeeper in the 45
ways a room must be cleaned if its guest has checked out but she forgot to mention that a less
thorough method was to be used if the guest was staying additional nights. The next month
the supervisor wonders why the new housekeeper is using many more packets of toiletries
than the other housekeepers are. Also, it is taking the housekeeper the same amount of time to
clean a recently vacated room as it does to clean a room that will be housing the same people
for another night. The best explanation for the misunderstanding about the service to be
provided by the housekeeper is _________, a risk incurred when services are described in
words alone.
A. Oversimplification
B. Incompleteness
C. Subjectivity
E. Transformation
Difficulty: Challenging
8-1
3. (p. 219) A retail store manager instructed two new sales associates to greet customers quickly
when they enter the store. On the first day the sales associates are working on the selling
floor, one sales associate greets customers immediately after they enter the store, while the
other associate greets customers after they have looked around for a minute or two. Which of
the following risks incurred by describing services in words alone has led to the sales
associates greeting customers at different time intervals?
A. Overcautious
B. Ostentation
C. Objectivity
E. Transformation
4. (p. 219) When is a biased interpretation likely to occur during a discussion of a new
restaurant?
A. At the beginning of the conversation
B. When one party uses nonverbal communications
C. When one party uses words like nice and different to describe the restaurant
D. Just prior to the conclusion of the conversation
E. Whenever the conversation is disrupted by noise
5. (p. 219-223) Which of the following is an important consideration for innovating or developing
a new service?
A. Involve only employees in the innovation process.
B. Employ service and design thinking and techniques.
C. Use only words to describe the service.
D. Design elements of the service separately, rather than as parts of a whole.
E. Involve only design experts in the innovation process.
8-2
6. (p. 219-220) In order to have a greater likelihood for ultimate success, who should be involved
in the new service development process?
A. Customers and employees
B. Suppliers, distributors and all employees
C. All members of the internal and external environment except customers
D. Top management only
E. Members of the marketing department only
7. (p. 224) The ability to connect to the Internet through a modem using the same wires that
transmit cable television was an example of a _____ when it was first introduced.
A. Major innovation
B. New service for the currently served market
C. Service line extension
D. Service improvement
E. Style change
Difficulty: Easy
8. (p. 224) The Cirque du Soleil fused elements of theater with traditional circus skills to create a
whole new form of entertainment. Cirque du is an example of a:
A. Major innovation
E. Style change
8-3
9. (p. 224) Dentists have to earn forty continuing education (C.E.) hours every two years to stay
licensed. Dental Learning Systems Co. (DLSC) prepared and presented dental seminars
around the U.S. to help provide dentists with the access to continuing education courses.
During the 1990s, DLSC introduced a journal that could be used like a correspondence course
for earning C. E. Hours. A dentist gets a list of upcoming articles/lessons, registers for one
that meets his or her need, studies the information provided in the journal and fills out
paperwork for DLSC, which then sends notification of completion and the C.E. hour(s)
earned to the accrediting bureau. The Dental Learning Systems journal is a:
A. Major innovation
E. Style change
10. (p. 225) Pret a Manger, a London-based sandwich shop, introduced restaurant-quality
sandwiches with fast-food velocity. This would be an example of a
A. Major innovation
E. Style change
11. (p. 225) 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
E. Style change
8-4
12. (p. 225) Rama thought the light blue paint on the walls of the hospital waiting area was a vast
improvement over the old brown paint. The repainting of the walls of the service provider is
an example of a:
A. Major innovation
E. Style change
13. (p. 224) The augmentation of an existing service line is a:

A. Major innovation
E. Service franchise
14. (p. 225) ______ are the most common types of new services.
A. Major innovations
B. Start-up businesses
C. Service line extensions
D. Service improvements
E. Style changes
Difficulty: Easy
8-5
15. (p. 225) Traditional thinking has defined _____________ as “bundles of goods and services
that companies offer to customers,” but customers think of them as sets of customer-facing
processes.
A. Mobile applications
B. Start-ups
C. Style changes
D. Solutions
E. Innovations
16. (p. 227) The first step in the new service-development process is:
A. Idea generation
B. New-services strategy development
C. Business analysis
D. Business strategy development or review
E. Concept development and evaluation
Difficulty: Easy
Difficulty: Easy
17. (p. 228) When a company offers new services to current customers, it is using a _____
growth strategy.
A. Share building
B. Market development
C. Service development
D. Diversification
E. Market integration
Difficulty: Easy
8-6
18. (p. 228) Elysian Events, a wedding planning company, noted how many couples had a
wedding catastrophe of some kind. As a result, it abandoned wedding planning and began
offering wedding insurance to protect couples from financial losses due to weather
emergencies, stolen wedding rings, damaged wedding dresses, etc. Elysian Events is using a
_____ growth strategy.
A. Share building
D. Diversification
19. (p. 228) An ad in a dental journal noted that if dentists would bulk buy a flowable composite
used to build bridges and caps, the dentist purchasing the composite would receive Delta Air
Lines Sky Miles to add to his or her existing Sky Miles. Both companies, the composite
marketer and Delta, benefit from this offer. By allowing the composite marketer to offer free
Sky Miles to customers, Delta Air Lines is further implementing its _____ growth strategy.
A. Share building
D. Diversification
20. (p. 228) For quite some time, Kentucky Fried Chicken (KFC) has grown through providing
its service outside the United States. After over two decades of expansion in China, the
company is now planning to explore Africa as a new market and expects to double its number
of outlets in Africa by 2014. KFC has developed a growth strategy emphasizing:
A. Share building
D. Diversification
8-7
21. (p. 228) McDonald's offers home and office delivery service in selected markets in the U.S.
and Canada. McDonald's delivery service is a _____ growth strategy.
A. Share building
B. Divestment
D. Diversification
22. (p. 228) Pret a Manger, a London-based sandwich shop, introduced restaurant-quality
sandwiches with fast-food velocity. Pret a Manger's faster service is a _____ growth strategy.
A. Share building
B. Divestment
D. Diversification
E. Marketing integration
23. (p. 229) During which stage of the service innovation and development process does a
service firm produce a description of the service that represents its specific characteristics and
features?
A. Idea generation
B. New services strategy development
C. Service development and evaluation
D. Market testing
E. Service concept development and evaluation
8-8
24. (p. 229-230) During which stage of the service innovation and development process are
demand analysis, revenue projections, cost analyses and operational feasibility assessed?
A. Commercialization
B. Business analysis
C. Market testing
D. Service development and evaluation
E. Post introduction evaluation
25. (p. 229) It is often useful to create a service blueprint at the ___________ stage of the service
innovation and development process.
C. New services strategy development
D. Service concept development and evaluation
E. Idea generation
26. (p. 234) At the _____ stage of the service development and innovation process, the new
service is made available to a limited number of its potential customers.
C. Market testing
8-9
27. (p. 234) The openings of new fast-food franchises are typically highly promoted events-
especially when the franchise is new to a geographic area. Special food promotions are
offered on the day of the grand opening and sometimes guest appearances. Often if a grand
opening event is scheduled for the first of the month, the business will actually start serving
customers who happen to notice that it is open during the week prior to the first. In this way,
employees can familiarize themselves with their jobs and minor problems can be handled
before they become major. This pre-opening practice is most closely related to which stage of
the new service-development process?
C. Market testing
28. (p. 234) During the commercialization stage, the service goes live and is introduced to the
marketplace. This stage has two primary objectives. One is to build and maintain acceptance
of the new service among large numbers of service delivery personnel who will be
responsible for day to day service quality. The other is to:
A. Evaluate tangibles for the service that are designed to reduce problems associated with
service heterogeneity
B. Monitor all aspects of the service during introduction and through the complete service
cycle
C. Provide adequate resources to prevent service failures
D. Develop a positioning strategy around which the service provider can build a sustainable
competitive advantage
E. Analyze the market and begin the next new service development process
8-10
29. (p. 234) The final stage of the new service development process is:
B. Market research
C. Post introduction evaluation
D. Fine tuning of the positioning strategy
E. Business strategy development
Difficulty: Easy
30. (p. 235) A service blueprint depicts:

A. The process of service delivery
B. All stakeholders that will be affected by the service process
C. The intangible elements of the service
D. The relation of the service to the services marketing mix
E. How the service dimensions will interact before, during and after the service process
Difficulty: Easy
31. (p. 235) Service blueprinting is grounded in all of the following disciplines EXCEPT:
A. Computer systems analysis
B. Decision theory
C. Economics
D. Industrial engineering
E. Logistics
32. (p. 235) In service blueprinting terms, _____ are those steps and activities that contact
employees, like desk clerks and receptionists, perform that are visible to customers.
A. Customer actions
B. Onstage contact employee actions
C. Backstage contact employee actions
D. Support processes
E. Audience actions
8-11
33. (p. 235) Simone called the Puppy Heaven Kennel to reserve a kennel for her German
shepherd while she went on vacation. In terms of the service blueprint, Simone's telephone
call is an example of a(n):
A. Customer action
B. Onstage contact employee action
C. Backstage contact employee action
D. Support process
E. Audience action
34. (p. 236) When Jessie wanted to talk to a therapist to learn how she could improve her
relationship with her mother, she went to Counseling Professionals, Inc., a counseling service
that charges $1 per minute of counseling by phone. By providing counseling and advice by
phone, the therapist Jessie spoke with is performing a(n):
A. Support process
B. Backstage contact employee action
C. Onstage contact employee action
D. Customer action
E. Audience action
35. (p. 235) When the character playing Alice in Wonderland signed autographs and had her
picture taken with guests at Disneyworld, it was an example of a(n):
A. Customer action
B. Onstage contact employee action
C. Backstage contact employee action
D. Support process
E. Audience action
8-12
36. (p. 236) When Grace wanted to buy a new pair of shoes, she went to Zappos.com because
she really likes the wide variety of styles they carry and the free shipping policy. The people
at Zappos.com who maintain the company’s website, manage the inventory, and ship the
shoes are performing:
A. Customer actions
C. Support processes
D. Backstage contact employee actions
E. Audience actions
37. (p. 236) After an airplane arrives at its gate and passengers disembark, it is cleaned,
restocked with food and beverages and refueled by maintenance workers before the next set
of passengers board and the airplane departs on its next flight. The activities performed by
maintenance workers to prepare the airplane for its next flight is part of which section of the
service blueprint?
A. Customer actions
E. Audience actions
38. (p. 236) When Simone dropped off her German Shepherd at the Puppy Heaven Kennel
before she went on vacation, she was pleased when she saw that the waiting room was
brightly lit, it looked and smelled clean, and all of the employees were wearing neat uniforms.
In service blueprinting terms, the condition of the waiting room and the employee uniforms
are examples of:
A. Physical evidence
E. Customer actions
8-13
39. (p. 236) Elysian Events, a wedding planning company, noted how many couples had a
wedding catastrophe of some kind. As a result, it abandoned wedding planning and began
offering wedding insurance to protect couples from financial losses due to weather
emergencies, stolen wedding rings, damaged wedding dresses, etc. In terms of the service
blueprint, preparation of documents to submit to the insurance underwriting company that
makes it possible for Elysian Events to offer wedding insurance inexpensively is part of
which section of the service blueprint?
A. Customer actions
E. Audience actions
40. (p. 235) In a Federal Express overnight delivery service blueprint, which of the following is
an example of an onstage contact employee action?
A. Package is flown to destination
B. Federal Express driver picks up package from customer
C. Federal Express driver drops off package at airport
D. Customer prepares package for Federal Express driver
E. Federal Express telephone service representative receives order from customer
41. (p. 236) When a guest staying at the Marriott Marquis in New York calls room service to
order dinner, which of the following is an example of a backstage contact employee action?
A. Marriott food service order clerk takes guest's order
B. Guest receives meal from Marriott food delivery person
C. Guest calls room service
D. Marriott chef prepares meal
E. Marriott food delivery person delivers meal to guest
8-14
42. (p. 236-237) In a service blueprint, the line of internal interaction separates:
A. Customer actions from onstage contact employee actions
B. Backstage contact employee actions from support processes
C. Onstage contact employee actions from backstage contact employee actions
D. Onstage contact employee actions from support processes
E. Customer actions from backstage contact employee actions
Difficulty: Easy
43. (p. 236) In a service blueprint, the line of visibility separates:

A. Customer actions from onstage contact employee actions
B. Backstage contact employee actions from support processes
C. Onstage contact employee actions from backstage contact employee actions
D. Onstage contact employee actions from support processes
E. Customer actions from backstage contact employee actions
44. (p. 240) If the purpose of the service blueprint is to understand the integration of the various
elements of the service process, the blueprint should be examined:
A. As a whole picture of the service process
B. Vertically
C. From left to right only
D. Horizontally
E. From right to left only
8-15
45. (p. 242) After a service firm maps the service process from the customer's point of view, the
next step in building a service blueprint is to:
A. Draw the lines of interaction and visibility
B. Link customer and contact person activity to needed support function
C. Map the service process from the customer contact person's point of view
D. Identify the physical evidence needed to support service quality
E. Add evidence of service at each customer step
46. (p. 243-244) The last step in building a service blueprint is to:
A. Draw the line of interaction and visibility
B. Identify the physical evidence needed to support service quality
C. Map the service process from the customer contact person's point of view
D. Link customer and contact person activity to needed support function
E. Add evidence of service at each customer step
47. (p. 239) When creating a blueprinting for a technology-delivered self service, a row labeled
“onstage technology” can be added to the blueprint:
A. Only in place of the onstage contact employee action row
B. Only in addition to the onstage contact employee action row
C. Either in place of or in addition to the onstage contact employee action row
D. Above the physical evidence row
E. Below the support process row
8-16
48. (p. 240) If the purpose of the service blueprint is to understand the customer’s view of the
process, the blueprint should be analyzed:
A. As a whole
B. Vertically, from the top to the bottom
C. From left to right
D. Vertically, from the bottom to the top
E. From right to left
49. (p. 240) If the purpose of the service blueprint is service redesign, the blueprint should be
examined:
A. As a whole
B. Vertically, from the top to the bottom
C. From left to right
D. Vertically from the bottom to the top
E. From right to left
50. (p. 240) Which of the following is NOT a demonstrated benefit of service blueprinting?
A. Providing a platform for innovation
B. Recognizing roles and interdependencies among functions, people, and organizations
C. Designing moments of truth from the customer’s point of view
D. Clarifying competitive positioning
E. All of the above are demonstrated benefits of blueprinting.
8-17
True / False Questions
51. (p. 218) Words alone are often more than adequate for describing services such as financial
portfolio management.
FALSE
52. (p. 224) When a day care center added an after-school program for first through third
graders, it was an example of a service line extension.
TRUE
53. (p. 225) When a hospital with formerly monochromatic walls added murals honoring fire
fighters and police officers, it would be an example of a service improvement.
FALSE
54. (p. 226) New service development is typically a linear process.

FALSE
55. (p. 228) When Wendy's extended its hours of operation on Friday and Saturday nights to
provide 24-hour fast-food service, it was an example of a service development growth
strategy.
FALSE
8-18
56. (p. 228-229) Service providers need some formal mechanism to ensure ongoing idea
generation.
TRUE
57. (p. 234) Market testing is used to pilot run a new service to be sure the operational details are
functioning smoothly.
TRUE
58. (p. 234) In the post introduction evaluation stage of the new-service development process
information gathered during commercialization of the service can be reviewed and changes
made based on actual market response to the offering.
TRUE
59. (p. 236) The loading of passengers' baggage onto an airplane by baggage handlers is a
backstage contact employee action.
FALSE
60. (p. 236-237) On the service blueprint, the line of visibility separates all contact employee
actions that are visible to the customer from those that are not.
TRUE
Difficulty: Easy
8-19
61. (p. 237) Vertical lines cutting across the line of internal interaction represent internal service
encounters.
TRUE
Difficulty: Easy
62. (p. 240) The service blueprint can be analyzed horizontally if the purpose is to understand the
integration of the service process or to identify for particular employees where they fit into the
bigger picture.
FALSE
63. (p. 241) Service blueprints are most useful when developed for a particular customer or
customer segment, assuming that the service varies across segments.
TRUE
64. (p. 241-244) The last step of building a service blueprint is to add the physical evidence of the
service.
TRUE
Difficulty: Easy
65. (p. 241) The first step in building a service blueprint is to map contact employee actions.
FALSE
8-20
Short Answer Questions
66. (p. 218-219) What are the four risks incurred when services are described in words alone?
Oversimplification, incompleteness, subjectivity and biased interpretation.
67. (p. 219-223) What are the two important considerations for service innovation?
(1) Involve customers and employees; (2) Employ service design thinking and techniques.
68. (p. 224) While finding someone who will count and wrap your coins has been an available
service for years, the recent invention of machines that, for a small fee, will perform the same
service is an example of what kind of innovation?
Startup business.
69. (p. 224) What kind of an innovation occurs when a beauty salon adds a tanning booth to its
service offerings?
Service line extension.
Difficulty: Easy
8-21
70. (p. 227) What is the first step in the new-service development process?
Business strategy development and review.
Difficulty: Easy
71. (p. 228) What kind of growth strategy is being used when a convenience store in a small
rural town adds a deli sandwich section?
Service development.
Difficulty: Easy
72. (p. 228) What kind of growth strategy is Procter and Gamble pursuing as it ventures into
services such as Tide Dry Cleaners and Mr. Clean Car Washes?
Diversification.
73. (p. 229) During what stage of the new-service development process is empathetic design
used?
Idea generation.
74. (p. 234) What is the last stage of the new-service development process?
Post introduction evaluation.
Difficulty: Easy
8-22
75. (p. 235) What does a typical service blueprint depict?
The process of service delivery, the points of customer contact, the roles of customers and
employees and the visible elements of the service.
76. (p. 235) While at Six Flags over Georgia, Mitch had his picture taken with Tweetie Bird, one
of the many Warner Brothers characters that tour the park. Which component of the service
blueprint does the picture exemplify?
Onstage employee action.
77. (p. 236) Before a trade show ever opens, personnel spend hours assembling the booths,
making sure they are all wired for electricity and ensuring the safety of the people who attend
the show. This is an example of which component of the service blueprint?
Support processes.
Difficulty: Easy
78. (p. 241) When creating a service blueprint, what step follows mapping the service process
from the customer's point of view?
Mapping onstage and backstage contact employees' actions, and/or technology actions.
Difficulty: Easy
8-23
79. (p. 226-227) Comment on the following statement: "New-service development is typically a
linear process".
New-service/product development is rarely a completely linear process. Many companies are

finding they can speed up the process of new-service development that some steps can be
worked on simultaneously and, in some instances, a step may even be skipped. It is not
uncommon to find a service provider working in the planning stages for a new service while
at the same time the current version is being launched. The overlapping of steps and
simultaneous development of various pieces of the new-service/product development has
been referred to as flexible product development. This type of flexible, speedy process is
particularly important in technology industries, where services evolve quickly.
80. (p. 234) What should be the two primary objectives of the service provider as it enters the
commercialization stage of the new-service development process?
The first objective is to build and maintain acceptance of and even enthusiasm for, the new
service among service delivery personnel who will be responsible for service quality day-to-
day. This task will be easier to accomplish if the service personnel were involved in the
design and development process. The second objective is to monitor all aspects of the service
during introduction and through the complete service cycle. Every detail of the service must
be assessed-phone calls, face-to-face transactions, billing, complaints and delivery problems.
Operating efficiency and costs should be tracked at the same time.
81. (p. 222-223) Describe the five principles central to service design thinking?
(1) User-centered: services should be experienced and designed through the customer’s eyes;
(2) cocreative: all stakeholders should be included in the service design process; (3)
sequencing: a service should be visualized as a sequence of interrelated actions; (4)
evidencing: intangible services should be visualized in terms of physical artifacts; (5) holistic:
the entire environment of a service should be considered.
8-24

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Multiple Choice Questions

13. (p. 224) The augmentation of an existing service line is a:

30. (p. 235) A service blueprint depicts:

43. (p. 236) In a service blueprint, the line of visibility separates:

True / False Questions

54. (p. 226) New service development is typically a linear process.

Short Answer Questions

Oversimplification, incompleteness, subjectivity and biased interpretation.

Service line extension.

Business strategy development and review.

Post introduction evaluation.

75. (p. 235) What does a typical service blueprint depict?

Onstage employee action.

New-service/product development is rarely a completely linear process. Many companies are

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