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Describe the three ways services can be classified.

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Services can be classified three ways ba...

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Inseparability in services means consumers


A) see little variation from one service provider in an industry to another.
B) are unable to differentiate price from quality.
C) cannot evaluate a service until it is being or has been used.
D) cannot separate the service itself from the deliverer of the service.
E) cannot separate themselves from the deliverer of the service.

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

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List and define the five dimensions of service quality described in the textbook.

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According to the textbook, the dimension...

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The less-expensive matinee movie pricing offered on shows prior to 4 p.m. is an example of


A) price lining.
B) price differentiation.
C) off-peak pricing.
D) bait-and-switch pricing.
E) idle production pricing.

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

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The __________ cost of a service is the cost of paying the person used to provide the service along with any needed equipment.


A) intangibility
B) inconsistency
C) inseparability
D) inventory
E) hidden

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

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Sarah has a backache due to overexertion. She believes a massage would loosen her back muscles and make her feel better. She is concerned because a massage, unlike a pair of shoes, cannot be felt before she buys it. Sarah realizes massages have __________ properties.


A) search
B) form
C) experience
D) credence
E) performance

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

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The emergency room staff in Houston's largest hospital is pleasantly surprised when a four-day Fourth of July weekend brings in few accident victims for treatment. They know from experience that such public holidays usually have high rates of accidents. For the hospital's business office, the lower demand for the emergency room services means


A) a break in the service continuum.
B) its services are no longer tangible.
C) its services can be separated from the staff.
D) the hospital has idle production capacity.
E) an opportunity for gap analysis.

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

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Services can be classified according to whether they are delivered by: (1) people or equipment, (2) __________, or (3) government agencies.


A) national or global
B) performed by independent contractors
C) privately owned or publicly owned
D) owned by individuals or corporations
E) for-profit or nonprofit organizations

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

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Another name for the steps in the service delivery process is


A) service interactions.
B) access points.
C) path-analysis.
D) service encounters.
E) wheel of services.

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

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The inventory carrying costs of real estate agencies are low because they


A) use a straight salary compensation plan.
B) allow personnel to work any hours a day and any number of days per week.
C) decrease the number of workdays per week, but increase the hours per day.
D) have employees who work on commission and need little expensive equipment.
E) are responsible for their own training, transportation, and supplies.

F) A) and C)
G) A) and E)

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An American Airlines ad shows the airline's new seats and emphasizes their size and other benefits, to overcome the __________ of its service.


A) incongruity
B) inconsistency
C) inventory costs
D) inseparability
E) intangibility

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

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Southwest Airlines operates five flights daily between Chicago and Phoenix during the winter. One flight leaves Phoenix at 12:10 p.m. The plane, a Boeing 737, has a capacity of 120 passengers. During the past month, the flight has averaged 24 passengers, a load factor of only 20 percent. Once the plane takes off, the empty seats generate no revenue for the airline for that flight. What unique aspect of services does this situation describe?


A) incongruity
B) intangibility
C) inconsistency
D) inseparability
E) idle production capacity

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

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The process of managing the entire customer experience with the company is referred to as


A) services marketing.
B) internal marketing.
C) customer experience management.
D) relationship marketing.
E) gap analysis.

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

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According to the service continuum, which of the following offerings has the lowest level of intangibility?


A) designer dress
B) law practice
C) tutoring service
D) cat food
E) pepper

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

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A nonprofit organization may pay taxes if


A) excess revenues exceed 20 percent of the budget.
B) the organization is not considered to be a religious institution.
C) revenue is received from overseas subsidiaries.
D) revenue-generating holdings are not directly related to the organization's core mission.
E) money is spent on research and development, then it is taxed at a significantly lower rate.

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

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Service organizations must manage the availability of the offering so that: (1) __________, and (2) the organization's assets are used in ways that will maximize the return on investment (ROI) .


A) marginal costs exceeds marginal revenues
B) service encounters can identify planning gaps
C) demand matches capacity over the duration of the demand cycle
D) the price elasticity of demand is unitary
E) the service experience is consistent with the sharing economy standards of the organization's industry

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

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The dimension of service quality called __________ is knowledge and courtesy of employees and their ability to convey trust and confidence.


A) assurance
B) sympathy
C) empathy
D) responsiveness
E) reliability

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

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Ron had a craving for sushi so he searched yellowpages.com for the name of a restaurant in his vicinity that serves this type of food. When he arrived at his destination, he was impressed with the menu posted outside the door and decided to go in. He was greeted with a smile by a hostess and then immediately seated at a well-appointed table where he was given a warm cloth for his hands. The food was beautifully presented, the rice was the perfect texture and temperature, and the fish was fresh and delicious. Halfway thought the meal, he excused himself to go to the restroom. It was clean, but the paper towel dispenser was empty. He returned to his table, finished his meal, and paid his check. The hostess said good-bye and asked him to return. The first point in his customer contact audit was


A) searching yellowpages.com.
B) reading the menu on the door.
C) being greeted by the hostess.
D) being seated at his table.
E) receiving his meal.

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

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Airlines feature load factor as a __________ measure on their marketing dashboards.


A) productivity
B) price differentiation
C) tangibility
D) capacity management
E) profitability

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

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Which of the following is the best example of an equipment-based service?


A) lawn care
B) doctors
C) taxis
D) lawyers
E) janitorial services

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

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