1.

Integrating mobile devices into the service delivery infrastructure can be used as
a means to _____________ services, ____________ customers to opportunities or
problems, and ____________ information in real time to ensure that it is
continuously accurate and relevant.
A.complement; guide; update
B.access; guide; conceal
C.access; attract; update
D.access; alert; update
E.complement; alert; conceal
2.It is common for service firms to offer a product as a loss leader. They are
hoping to attract new customers and are willing to lose money on one service to do
so. The potential problem with offering a loss leader is:
A.Convincing customers that the loss leader is a good value
B.Meeting the demand for customers interested in the loss leader offering
C.Finding enough workers to provide the loss leader service
D.Failing to attract customers to other service offerings
E.Charging a higher price for the loss leader later on will upset customers
3.Susie goes to One Best Dental for her cleanings. She is very impressed with how
quickly she is processes in and out for her appointments and how they handle all of
the paper work with her insurance. She also likes that she can check in online and
book her appointments over the computer. Susie has noticed the ______
components of the service.
-Side stage
-Main stage
-Front stage
-Back stage
-Near stage
4.At Benford Bank, all customers opting for the drive-thru can pick from one of
three lanes. One line may seem to move faster than others, but all allow customers
to accomplish any type of transaction. Which of the following queue
configurations does Benford Bank use?
-Multiple queue
-Parallel lines to multiple tellers
-Multi-queue to any teller
-Triple queue with barriers
5.Understanding the pedestrian and vehicular traffic, competition in the area,
availability of labor, and rental costs are just a few things to consider when:
-Determining where a service facility should be located
-Determining the starting wages to pay new hires
-How to minimize the impact of local taxes
-Determining the prices to charge
-Determining how friendly local labor unions are
6.Technology and the use of electronic channels have led to an increase in
____________ service distributions.
-Face to face
-Geological
-Hologram
-Remote
-Customer to service site
7.______________ is an example of a technology-based service that has become
global within a few years.
-Uber
-Dunkin' Donuts
-FedEx
-Starbucks
-DHL
8.A firm can ______________ a service if its intellectual property and value-
creation sources can be protected.
-Limited partnership
-Franchising
-Supplement
-Export
-Direct investment
9.The Century Inn is a new hotel chain promises the most you pay for a hotel room
is $100 per night. Many nights the rates are less than $50 and sometimes even less.
The Century Inn only advertises that its prices are $100 a night, not less, in an
effort to be fair. The aim of the hotel is to be fair in its pricing by:
-Using high published prices
-Taking care of loyal customers
-Presenting a logical price schedule
-Presenting opportunities for discounts
-Bundling services
10.Value is what I get for what I give. What I give includes __________ and
-Time and physical costs
-Credit and checks
-Monetary and non-monetary costs
-Money and all-inclusive pricing
-Effort and energy
11.The goal of revenue management is to maximize revenue from available
capacity through ________________.
-Price customization
-Co-production
-Intangible offerings
-Personal relationships
-Loyalty programs
12.The yellow and black uniforms worn by the employees of Spirit airline is an
example of:
-Corporate design
-Brand imagery
-Logos
-Servicescape
-Brand assets
13.Airline seats are a class of object that lack differentiation since all coach seats
are essentially the same. Thus, Alaska Airlines focuses on the J.D. Power awards
for customer satisfaction it has won in its advertising. This helps to overcome the
intangibility issue of:
-Non-searchability
-Mental impalpability
-Abstractness
-Generality
-Approachability
14.Online ads that are placed on websites, such as an ad for Lands' End on
weather.com, is an example of:
-Transitional ads
-Copyright infringement
-Metric ads
-Banner ads
-Search engine ads
15.Service ____________ ensure that service staffs do things correctly, as
requested, in the right order, and at the right speed.
-poka-yokes
-banzais
-jidokas
-kanbans
-sodokus
16.ATMs and the ability to order food from kiosks are examples of ____________
which offer customers faster, more flexible service than traditional service
providers.
-Full-service technologies
-Digital employees
-Co-creators
-Self-service technologies
-Customized technologies
17 Kim's Electrical has noticed in the past year that more and more customers
prefer to have work done at their home after 5pm so they do not have to take off
work. Normally Kim's Electrical do not make appointments after 4:30pm, but has
been doing more at 5pm. Because of this, Kim is
considering redesigning the service process because:
-unnecessary procedures
-too much information exchange
-not useful data
-customer complaints
-increased exceptions
18.If you buy your tickets early for a live theater production in Rome, you'll pay
about 30 percent less, than if you buy them on the day of the show. The lower price
helps the early sale of tickets and guarantees the audience will be large enough to
justify the cost and effort put into the production.
What strategy does the theater company use to shift demand for theater tickets?
-Communicate with customers
-Modify timing and location of service delivery
-Stretch capacity
-Differentiate on price
-Vary the service offering
19.The fundamental issue underlying supply and demand management in services
is the lack of _____________ capability.
-Customization
-Inventory
-Standardization
-Automation
-Transportation
20 The Baltimore Orioles, a professional baseball team, offer standing room only
seats to fans when a home game at The Ballpark at Camden Yards is sold out. The
Baltimore Orioles are stretching ________________ to adjust the capacity of The
Ballpark at Camden Yards to meet fan demand.
-Facilities
-Customers
-Equipment
-Labor
-Time
21.The primary constraint on service production for a lawyer is:
-Facilities
-Utility
-Time
-Money
-Equipment
22.Filling in an account opening form that requires detailed, personal information
is a type of _______________.
-sensory cost
-psychological cost
-time cost
-intangible cost
-physical cost
23.Objectives that are focused on triggering a need in the pre-purchase stage,
helping move customers through the service encounter, and encourage positive
post-encounter actions are known as:
-Empirical
-Implicit
-Strategic
-Tactical
-Decipherable
24.Johnny has shattered the screen on his Samsung phone and takes it to the mall
to get it repaired. He is told it will take 2 hours to fix and cost $50, payable now.
He leaves to run errands and returns to find the phone fixed good as new. Which
type of service delivery flowchart would be most appropriate for the service
experience Johnny had?
-People processing
-Information processing
-Possession processing
-Hotelier processing
-Mental stimulus processing
25.In order to develop a location strategy for a distribution channel, firms must
consider ____________.
-None of the above
-Customer expectations
-All of the above
-Customer needs
-Competitive activity
26,Firms like Dunkin' Donuts and Subway sharing space with quick-service
restaurants is an example of a(n) ______________.
-ministore
-multi- brand strategy
-single-source market
-economy of scale
-economy of scope
27.Jimbo's Photography is a new photo studio. He is not sure what he should be
charging for his services, so he searches online for other photographers nearby that
provide similar services to get an idea of the market. Jimbo's Photography is using
which type of pricing strategy?
-Intangible-based
-Value-based
-Activity-based
-Cost-based
-Competition-based
28.The Days Inn motel has found that if it increases its nightly rate from $49 a
night to $53 a night there is 20% decrease in demand. The Days Inn motel has
what type of price elasticity?
-Static demand
-Elastic demand
-Percentage change demand
-Inelastic demand
-Inverse pricing demand
29.The total cost to the firm represents the_____________. Charging below this
price will result in the company losing money.
-Price door
-Price floor
-Price wall
-Net value
-Price ceiling
30.Word of mouth recommendations are very important to service providers
because they:
-Lack credibility
-Only talk about negative experience
-Only talk about positive experience
-Are credible
-Are less personal than online reviews
31______________ has seen an increase in usage in recent years due to
advancements in digital technologies.
-Public relations
-Advertising
-Sales promotion
-Sales promotion
-Direct marketing
32.Cloud computing software such as Microsoft Azure can be challenging for
customers to grasp the benefits of since they are complex, multidimensional
offerings. This represents the intangibility issue of:
-Abstractness
-Non-search-ability
-Generality
-Mental impalpability
-Approachability
33.A good business website should provide quality content, that is up to date, and
easy to navigate so users are motivated to stay longer or come back and visit again.
This is done to achieve to goal of creating a _________ website.
-Personal
-Tacky
-Impressive
-Sticky
-Informative
34.Marriage counseling is a service that requires a _______ level of participation
from customers.
-High
-Minimal
-Low
-Absolute
-Moderate
35.Johnny is staying at a Hilton while traveling for work. He parks his own car,
checks into the hotel and is given the room he requested. There are many backstage
functions happening, but he is oblivious to them. Which type of service delivery
flowchart would be most appropriate for the service experience Johnny had?
-People processing
-Information processing
-Possessions processing
-Mental stimulus processing
-Hotelier processing
36.The busiest time for tax preparers is the week prior to April 15. Many tax
preparers send out mailings to their regular customers asking the customer to bring
their tax information in to the tax preparer's office in January and February. The
mailings explain how they will receive their tax refunds much quicker if they
bring, the information in now rather than wait till the last minute. Tax preparers are
using which of the following strategies for shifting demand to match capacity?
-Communicate with customers
-Modify timing and location of service delivery
-Differentiate on price
-Verify the service offering
-Stretch capacity
37.Waiting time feels longer when customers:
-Know how long they will have to wait
-Are reading or drinking a beverage while waiting
-Are relaxed while waiting
-Are alone while waiting
-Understand why they are waiting
38.Supermarkets with express checkout lanes for customers purchasing 10 items or
less are using which of the following waiting line strategies?
-Expanding waiting room capacity
-Differentiating duration of transaction
-Employee operational logic
-Making waiting fun or at least tolerable
-Establishing a reservation process
39.Consumers with greater confidence and knowledge about a channel or service
tend to use which type of distribution?
-Kiosks
-Self-service channels
-Personal channels
-Remote distribution
-Peer-to-peer services
40.____________ has become a popular way to expand delivery of an effective
service concept, embracing all of the seven Ps, to multiple sites, without the level
of investment capital that would be needed for rapid expansion of company-owned
and managed sites.
-Franchising
-Sole proprietorship
-Limited partnership
-The Internet
-International trade
41.The Atlanta Braves offer a group discount for fans buying at least 20 tickets to a
game. The discount is approximately 20% off the regular rate that other fans pay.
Which type of revenue management strategy is the Braves offering with its group
discount offer?
-Psychological price premium
-Non-physical rate fence
-Intangible key rate
-Perishable fence rate
-Physical rate fence
42.The maximum value of the service provided represents the ___________.
Charging above this price will likely result in the firm failing to attract enough
customers to be profitable.
-Price floor
-Activity cost
-Price wall
-Price door
-Price ceiling
43.American Airlines offers first class passengers' bigger seats, early boarding,
access to a lounge with free soft-drinks and snacks, and bigger seat back screens.
The cost is more than a coach ticket, but many customers are willing to pay more
for the extra amenities and service. American Airlines is offering a:
-Perishable fence rate
-Intangible key rate
-Psychological price premium
-Non-physical rate fence
-Physical rate fence
44.__________ ties together and reinforces all communications to deliver a strong
brand identity. It helps to ensure that every message that is received by the
consumer is consistent across all channels.
-Service delivery points
-Integrated marketing communications
-Digital marketing
-Advertising
-Personal communications
45.The unified and distinctive visual appeal for tangible elements of a service
provider are known as:
-Corporate design
-Brand imagery
-Brand assets
-Servicescape
-Logos
46.Marketing communications with an incentive, typically around a specific period
of time that is meant to stimulate action, is known as:
-Advertising
-Public relations
-Reverse optimized incentive
-Direct marketing
-Sales promotion
47.Susie is going to the dentist for a cleaning. She notices how clean the exterior of
the building is, as well as how nice the landscaping looks. Once inside the building
she notes the modern amenities and consistent uniforms of the employees. Susie
has noticed the ________ components of the service.
-Near stage
-Main stage
-Back stage
-Front stage
-Side stage
48.__________ is a visual technique for displaying the basic nature and sequence
in a service delivery to customers.
-Optimal graphing
-Blueprinting
-Visual acuity
-Backdrafting
-Flowcharting
49.A local restaurant has been struggling with long waits during busy times. To
help solve this problem the restaurant is asking for guests to call in advance of
coming to let them know how many guests will be dining and what time. The
restaurant is using which of the following waiting line strategies?
-Expanding waiting room capacity
-Establishing a reservation process
-Making waiting fun or at least tolerable
-Differentiating waiting customers
-Employing operational logic
50.Which of the following is NOT considered a capacity constraint for a service
provider?
-Money
-Facilities
-Equipment
-Time
-Labor
51.Which of the following queue configurations is designed to ensure fairness of
waiting time?
-Single line to multiple servers
-Roundabout queue
-Multiple lines to multiple servers
-Queue with barriers
-Double queue
52,Which of the following is an example of distribution when a customer visits the
service site?
a. movie theatre
b. house painting
c. mobile car wash
d. mail delivery
e. tree trimming
53.Jimmy is meeting a group of friends at a fancy restaurant to celebrate a friend
getting a new job. He makes a reservation through the OpenTable app. He notes
that they want a booth in the corner and would like drinks on the table when they
arrive at 7PM. He has prepaid for the drinks to ensure they are there. It is important
that his experience at the restaurant match what he selected when making the
reservation. This represents the importance of:
A. Picking a good room
B. Being a rewards member
C. Channel integration
D. Customer appreciation
E. Tiered pricing
54.Growth oriented service firms like _________ because it allows for motivated
owners to provide good customer service and high-quality service operations.
a. The Internet
b. International trade
c. Franchising
d. Sole proprietorship
e. Limited partnership
55.The following is an example of a highly regulated service market where it is
difficult for international players to enter.
a. Healthcare
b. Logistics
c. Advertising
d. Fast food
e. Photography
56.Often the challenge when setting prices for services stems from the fact that
they typically have _______________ costs.
a. Low fixed
b. High fixed
c. Low variable
d. High variable
e. Adjustable fixed
High fixed costs
57.Susan and her family want to go out for dinner. They arrive at the local
Applebee's and are told there is a 45-minute wait. While they love Applebee's the
_________ is too great since they have other plans they have to get to that evening.
a. Physical cost
b. Time cost
c. Mental cost
d. Sensory cost
e. Intangible cost
58.Objectives that are broad and focused on building the brand and positioning it
are known as:
a. Strategic
b. Tactical
c. Empirical
d. Decipherable
e. Implicit
59.A flyer in the mail from Dixie Electric, an email ad from Target, and a
notification on your phone when you walk into the mall, are all examples of:
A. Direct marketing
B. Sales promotion
C. Public relations
D. Sales promotion
E. Advertising
60.Jane's Photography has developed a referral promotion that incentivizes existing
clients to recommend her to their friends and family. Each person receives $25 off
if they note the referral incentive when they meet with Jane. This type of
communication incentive is offered through:
A. Sales promotion
B. Personal selling
C. Personal marketing
D. Word of mouth
E. Direct marketing
61.Service blueprints ____________, and how these are supported by backstage
activities and systems.
a. enhance servicescape features such as furniture and lighting
b. complicate employee handling of special requests
c. clarify the interactions between customers and employees
d. enhance customer technical know-how
e. diminish customer complaining capacity
62,Johnny has family visiting and he would like to take them to the beach. He turns
on the news and finds that it will be 80 degrees and sunny today. The information
is presented clearly for him by the weather person and he makes the decision that
they will all go to the beach. Which type of service delivery flowchart would be
most appropriate for the service experience Johnny had?
A. People processing
B. Possession processing
C. Mental stimulus processing
D. Information processing
E. Hotelier processing
63.The primary constraint on service production for an air freight delivery service
is:
A. Equipment
B. Boxes
C. Money
D. Facilities
E. Time
64.One way for car washes to decrease the number of visitors to the existing site is
to
a. Offer free pickup and delivery of cars to be washed.
b. Offer mobile car wash services.
c. Add more service options.
d. Decrese prices to get the most out of current customers.
e. Educate customers on when they should have their cars washed.
65.If you buy your tickets early for a live theater production in Rome, you'll pay
about 30 percent less, than if you buy them on the day of the show. The lower price
helps the early sale of tickets and guarantees the audience will be large enough to
justify the cost and effort put into the production. What strategy does the theater
company use to shift demand for theater tickets?
A. Differentiate on price
B. Modify timing and location of service delivery
C. Vary the service offering
D. Stretch capacity
E. Communicate with customers
66.Traditional yield management strategies are most appropriate when:
-All members of the target market arrive at basically the same time
-The service provider has a homogeneous target market
-Its target market is not price sensitive
-Those who arrive early or reserve early are more price sensitive than those who
reserve or arrive late
-All of the target market is equally price sensitive
67.Kensworth-McCoy is a government auditing firm that specializes in auditing
public transportation systems, The firm was operating at maximum
capacity when it was asked to submit a bid on a very lucrative account in Chicago.
If the firm were to win this account and keep all of its current accounts, it will
more than likely:
-Increase employee burnout
-Increase customer satisfaction through a work focus
-Create a narrower windew of opporturity for meeting deadir
-Decresse employce turnover potential
-Increase service quality
68.Emergency room employees select and see patients in an order based on the
patients' need for treatment. Victims who have life-threatening injuries are seen
ahead of those with minor complaints like an ingrown toenail or a case of poison
ivy. Emergency rooms differentiate their waiting customers
on the basis of:
-Importance of the custom
-Urgency of the job
-Willingness to perform service role
69.In order to decrease the number of vehicles that get returned damaged, Avis car
rental is making short videos explaining local driving habits for tourists. They are
attempting to reduce the number of errors made by drivers, while also reducing the
amount of damage done to vehicles. They are also spending more time showing the
features of each vehicle to the renters. Avis is attempting to create a:
-Backstage operation
-Poka yoke
-Frontstage operation
-Wait point
-Fail point
70.Mental stimulus processing and information processing are unique in their
delivery because?
-The customer may never visit a physical location
-The service is more financially costly to the customer
-They involve more customer work
-Service recovery can happen right away
-The customer and employee interaction is first in the experience
71.SAS International Hotels devised which of the following sales promotions
targeted at older consumers?
-First to provide senior citizen discounts.
-A free hotel room if large family gatherings were held at the hotel
-Free ballroom service for large family gatherings
-Discount for large family gatherings.
-Provided a discount percent equivalent to their age.
72.Messages can be delivered through service channels. For example, when you
walk into your bank the teller may explain the offerings they have for home or auto
loans, and information about interest rates on savings accounts. This Is an example
of message delivery from:
-Online retailers
-Frontline employees
-Service outlets
-Servicescapes
-Self-service delivery points
73.______________ are not known in advance, thus require a traditional
communication mix to reach.
-Employees
-Striations
-Funnels
-Prospects
-Users
74.The Holiday Inn hotel chain offers customers 25% off the normal nightly rate if
they book 28 days in advance. They are offering customers a discount for booking
early, while those that book later have to pay the standard rate. Which type of
revenue management strategy is The Holiday Inn utilizing?
-Intangible key rate
-Perishable fence rate
-Psychological price premium
-Physical rate fence
-Non-physical rate fence
75.Some service providers like plumbers and pediatricians are available 24 hours a
day, 7 days a week compared to most others that are only open from 9-5 during the
week. They use __________________ as an important differentiating factor.
-How the service is distributed
-Whom distributes the service
-Where the service is distributed
-When the service is distributed
-What is being distributed
76.Typically, _______________ services require a physical location, which limits
how the service is able to be distributed.
-Core
-Supplemental
-Personal
-Digital
-Business
Core services
77.Which of the following is an example of distribution when a customer visits the
service site?
-Package delivery
-House painting
-Tree trimming
-Dental visit
-Mobile car wash
78.Which of the following is an example of distribution when the service provider
goes to the customer?
-Tax preparation
-Landscaping
-Iphone screen repair
-Studio photography
-Oral Surgery
79.Airlines often overbook on the chance that some customers may not show up.
However, when everyone does show up, that causes a problem. Often they will
offer customers that do not have a seat on the flight money to wait for a later one.
They may also a first-class ticket on the next flight, or some additional
compensation. The aim of the airline
is to be fair by:
-Presenting a logical price schedule
-Using high published prices
-Taking care of loyal customers
-Using service recovery to compensate for overbooking
-Presenting opportunities for discounts
80.Susan and her family want to go out for dinner at Outback. They arrive and are
told there is a 45-minute wait. They do not mind the wait since they are not in a
rush, however when they go to the waiting area there are no chairs
available. Since they cannot sit while they wait, they decide to leave since the
___________ is too great.
-Intangible cost
-Mental cost
-Time cost
-Physical cost
-Sensory cost
81.Fedex's Panda One is built on _______________.
-Direct marketing
-Advertising
-Personal selling
-Public relations
-Sales promotion
82.Disney focuses its advertising efforts on attracting guests to visit the park
during the school when the park is not so
busy. It offers incentives to guests if they visit during off-peak times of the year.
This advertising by Disney is focused
on:
-Direct marketing
-When the activity should happen
-Who should do the activity
-Where the activity should happen
-Market percentage
83.The ability to identify potential ___________ to take preventative measures is
one advantage of service blueprinting.
-Fail points
-Customer Interaction
-Backstage operations
-Frontstage operations
-Poka yokes
84.A key characteristic of service ___________ is that it makes a distinction
between what customers experience "front-stage" and the activities of employees
and support processes "backstage".
-Blueprinting
-Visual acuity
-Flowcharting
-Backdrafting
-Optimal graphing
85.Service process redesign efforts typically focus on achieving all EXCEPT
which of the following key performance measures?
-Enhanced productivity
-Increased customer satisfaction
-Reduced cycle time
-Reduced number of service failures
-Increased profitability
86.Some banks ensure eye contact by requiring tellers to record
________________ on a checklist at the start of a transaction.
-The customers bank account number
-The customers shirt size
-The customers nationality
-The customer's eye color
-The customer's account type
87.Mass transit train and bus service has peak periods of demand Monday through
Friday during morning and evening rush hours. Demand for mass transit service:
-Follow a vertical demand configuration
-Is dissatisfactory
-Follows no discernible pattern
-Follows a predictable demand cycle
-Fluctuates randomly
88.What are the 4 problems created by intangibility?
-Generality: Items that comprise a class of objects, persons, or events
-Non-searchability: Cannot be searched or inspected before purchase
-Abstractness: No one-to-one correspondence with physical objects
-Mental impalpability: Customers find it hard to grasp benefits of complex,
multidimensional new offerings
89.Important roles that service marketing communications can assume:
• Promote tangible cues to communicate quality
• Add value through communication content
• Facilitate customer involvement in service production
• Promote the contribution of service personnel and back-stage operations
90.Strategic objectives:
o Building a service brand and positioning it and its service products against
competition
o Persuading target customers that their service product offers a better solution for
customer needs
o Attracting new users and maintaining contact with existing customers
91.Three broad target audiences:
• Prospects:
o Employ traditional communication mix because prospects are not known in
advance
• Users:
o More cost-effective channels
• Employees:
o Knowledge about offerings and promises
o Potentially motivating
92.Maximizing revenue from available capacity:
• Revenue management is price customization
o Charge different value segments different prices for same product based on price
sensitivity
93.What three legs does pricing strategy stand on?
-Cost
-Competition
-Value to customer
94.Strategic and tactical location considerations:
Understand customer needs and expectations
• Competitive activity
• The nature of the service operation
95.Blogs:
o Communications about customer experiences influence opinions of brands and
products
o Some firms have started to monitor blogs as form of market research and
feedback
96.When should communication take place?
• Service firms are capacity-constrained and do not generally promote during
heavy usage periods.
• Timing is closely matched to the perceptions and behaviors the firm wants to
manage.
97.Strategies for corporate design:
• Many service firms employ a unified and distinctive visual appearance for all
tangible elements:
o e.g., Logos, uniforms, physical facilities
• Instant recognition
• Strengthen brand image
98.Key components of a service blueprint:
o Define standards for front-stage/ visible activities
o Specify physical evidence
o Identify main customer actions
o Line of interaction (customers and front-stage personnel)
o Frontstage actions by customer-contact personnel
99.Improving Reliability of Processes by Failure Proofing
• Identify fail points
• Why does failure occur?
-• How mitigate that?
• Need fail-safe methods for both employees and customers
• Poka-yokes- seek to reduce errors
• Customer poka-yokes focus on:
o The encounter
o Understanding and anticipating their roles
o Selecting the correct service or transaction
100.Customer participation
o Actions and resources supplied by customers during service production and/or
delivery
o Includes mental, physical, and even emotional inputs