Chapter 1: An introduction to services

The _____________ reflects the view that the intangible aspects of products are becoming the key features that differentiate the product in the marketplace.
1. services marketing
2. Servuction model
3. service imperative
4. benefit concept
5. industrial management model
Which of the following businesses would be characterized as a pure service?
1. insurance
2. farming
3. mining
4. engineering
5. there is no such thing as a pure service
General Motors, the manufacturing giant's, largest supplier is:
1. Blue Cross-Blue Shield Insurance
2. GMAC Financing
3. a parts supplier
4. a legal firm
5. a trucking company
Which of the following sets of terms best describes a service?
1. objects, devices, and performances
2. effort, objects, and deeds
3. things, devices, and performances
4. objects, devices, and things
5. deeds, effort, and performances
Deeds, efforts and performances define:
1. products
2. ideas
3. services
4. goods
5. places
The continuum that ranges from tangible-dominant to intangible-dominant is referred to as:
1. the services triangle
2. the Servuction model
3. the scale of market entities
4. the service-profit chain
5. the Q continuum
Businesses such as fast food restaurants would fall where along the Scale of Market Entities?
1. on the extreme end of the intangible-dominant side
2. on the extreme end of the intangible-dominant side
3. in the middle of the continuum
4. left of the middle towards the tangible-dominant side
5. right of the middle towards the intangible-dominant side
Which of the following fields would be least likely to be described as intangible-dominant?
1. manufacturing
2. education
3. insurance
4. banking
5. engineering
Which of the following products is an example of intangible dominant?
1. Outback steakhouse
2. car rental agency
3. a funeral
4. a magazine subscription
5. math tutoring
Which of the following statements is not true?
1. Service knowledge is obtained differently than goods knowledge.
2. Firms that define their businesses too narrowly have developed marketing myopia.
3. Goods are tangible-dominant.
4. Service knowledge is obtained through the experience of receiving the actual service.
5. All the above are true.
_______ results in the practice of too narrowly defining one’s business:
1. Services marketing
2. Marketing management
3. Marketing myopia
4. Scale of market entities
5. Customer experience
__________ involves a pictorial representation of the relationship between the tangible and intangible elements of a firm’s operation.
1. Molecular Model
2. Servuction Model
3. Benefit concept
4. Industrial Management Model
5. Market-focused Model
Which of the following could NOT be included in the airline molecular model?
1. long-term parking
2. financing arrangements
3. rental car availability
4. gate attendants
5. baggage handlers
The encapsulation of the benefits of product in the consumer's mind is called:
1. the Servuction Model
2. the benefit concept
3. the Service Triangle
4. the Service-Profit Chain
5. the Scale of Market Entities
According to the Servuction Model, factors that influence the customer's service experience include all of the following except:
1. price
2. contact personnel/service providers
3. other customers
4. servicescape
5. organization and systems
Which of the following components of the Servuction Model is not visible to consumers?
1. servicescape
2. organization and systems
3. other customers
4. contact personnel
5. service providers
A customer who notices dirty silverware and a dirty floor in his/her favorite restaurant has been influenced by which of the following components of the Servuction Model?
1. servicescape
2. organization and systems
3. other customers
4. contact personnel
5. service providers
Servicescape consists of which of the following features:
1. personal artifacts
2. inanimate objects
3. signs
4. symbols
5. all of the above
The component of the Servuction Model over which most service firms have the least control is:
1. servicescape
2. organization and systems
3. other customers
4. contact personnel
5. service providers
If an office did not schedule as many people as were needed during a busy period, which of the following components of the Servuction Model has influenced the customer's experience?
1. servicescape
2. organization and systems
3. other customers
4. contact personnel
5. service providers
A customer attempted to pay his bill with his American Express credit card; however, the service firm did not accept American Express. Which of the following components of the Servuction Model influenced the customer's experience?
1. servicescape
2. organization and systems
3. other customers
4. contact personnel
5. service providers
The demand for services marketing knowledge has increased for all of the following reasons except:
1. the tremendous growth in service-sector employment
2. increasing service-sector contributions to the world economy
3. the deregulation of many service industries
4. the needed shift from industrial models of management to market-focused management approaches
5. the decline in service sector jobs
Ranking from highest to lowest, the countries with the largest service sector employment are:
1. European Community, United States, Japan
2. United States, Japan, European Community
3. United States, European Community, Japan
4. United States, European Community, Japan
5. Japan, European Community, United States
With regards to service sector employment in the EU, which of the following statements is TRUE?
1. Between 2002 and 2012, 10% of all jobs were service jobs.
2. 92% of the labour force is employed in service sector jobs.
3. In 2007 144m were employed in the service sector.
4. Employment in the service sector is declining as manufacturing grows.
5. Europe is second to China in service sector employment.
What percentage of the EU’s Gross Domestic Product wass generated by the service sector in 2006?
1. 88.2%
2. 70.5%
3. 60.1%
4. 50.5%
5. 45.7%
An approach to organizing a firm that focuses on revenues and operating costs and has its roots in manufacturing is called:
1. the operations management approach
2. the industrial management approach
3. the manufacturing management approach
4. the market-focus management approach
5. the services marketing approach
The industrial management model believes
1. employees want to do good work
2. front-line personnel are more important than upper- and middle-managers
3. technology should be used to assist employees
4. labor and operating costs should be kept as low as possible
5. front-line employees should be empowered to make decisions
According to the industrial management model, which one of the following statements is FALSE?
1. Location strategies, sales promotions, and advertising drives sales revenues.
2. Employees are to be held to low job performance expectations.
3. Only managers can solve problems.
4. It is better to rely on machines, than humans.
5. Technology should be used to assist employees, rather than to monitor or control them.
The management model that focuses on the components of the firm that facilitate the firm's service delivery system is called:
1. the operations management approach
2. the industrial management approach
3. the manufacturing management approach
4. the market-focused management approach
5. the services marketing approach
According to the market-focused management model, which one of the following statements is TRUE?
1. Location strategies, sales promotions, and advertising drives sales revenues.
2. Employees are to be held to low job performance expectations.
3. Only managers can solve problems.
4. It is better to rely on machines, than humans.
5. Technology should be used to assist employees, rather than to monitor or control them.
According to the market-focused management model, which one of the following statements is FALSE?
1. Companies should invest in people as much as machines.
2. Employee turnover and customer satisfaction are clearly related.
3. The higher the proportion of part-time to full-time employees, the more satisfied the customers.
4. New accounting measures are needed that reflect the focus on customer orientation.
5. Data collected and controlled by middle managers should be made available to front-line personnel.
Which linkage within The Service Triangle reflects the ease with which a customer uses a bank's ATM?
1. The systems--the customer
2. The service strategy--the customer
3. The systems--the people
4. The customer--the people
5. The service strategy--the systems
Which linkage within The Service Triangle reflects Pizza Hut's strategy of communicating its commitment to service excellence to its employees through television commercials?
1. The systems--the customer
2. The service strategy--the customer
3. The systems--the people
4. The customer--the people
5. The service strategy--the people
Which linkage within The Service Triangle represents the interaction that creates "moments of truth" or "critical incidents"--the driving forces in customer satisfaction evaluations?
1. The systems--the customer
2. The service strategy--the customer
3. The systems--the people
4. The customer--the people
5. The service strategy--the people
The market-focused management model, supported by the service triangle, is based on the belief that:
1. front-line personnel tend to be more knowledgeable
2. employees want to do good work
3. customer satisfaction is related to employee turnover
4. a new accounting measures should be used
5. none of the above

Chapter 1: An introduction to services

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