Chapter 12Designing and Managing Services

True/False Questions
1. A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. True (easy) p. 229 2. The fact that services are used or consumed at the time of their creation is an example of the service characteristics of intangibility. False (moderate) pp. 229-230 3. The quality of services depends upon the provider, location, circumstances, and time. This fact illustrates the service characteristic of variability. True (moderate) p. 230 4. When AmeriSuites Hotel chain leaves cards on its check-in desk for consumers to comment on the service they received, it is an example of one way to deal with service intangibility. False (difficult) p. 229-230 5. The fact that services are generally consumed as they are produced describes the service characteristic of inseparability. True (moderate) p. 230 6. One way to decrease perishability of a service is to monitor customer satisfaction through a suggestion and complaint system. False (difficult) p. 230 7. Internal marketing describes the work a company does to train and motivate its employees to serve customers well. True (moderate) p. 232 8. Booms and Bitner suggest these three Ps that service providers must pay attention to: people, physical evidence, and place. False (easy) p. 231 9. Internal marketing describes the work done by the company to train and motivate its employees to serve the customers well. True (moderate) p. 232 10. A pure tangible good is an offering that may consist of the good plus some accompanying services. False (moderate) p. 229 11. Since products are generally higher in experience and credence qualities than services, consumers will generally rely more on word of mouth than on service firm advertising. False (moderate) p. 233 12. Characteristics a buyer can evaluate before purchase are called search qualities. True (moderate) p. 233 13. Experience qualities are characteristics a buyer can evaluate after purchase. True (moderate) p. 233 14. Experience qualities are characteristics a buyer normally finds hard to evaluate even after consumption. False (moderate) p. 233 15. For a Montessori preschool, a secondary service feature could include online access for the parents as they dropped off their children. True (moderate) p. 234

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16. A service company can differentiate itself by designing a better and faster delivery system. True (easy) p. 234 17. If a day care provider thinks that the parents want better food, when in fact the parents are more concerned about security, the provider will likely be subject to a gap between customer perception and management perception of service quality. False (moderate) p. 235 18. When the economy is strong, many low-end service workers in the fast-food industry are less motivated to do a good job because they can quickly find another job. If such a worker has poor people skills or cannot count the amount of change to return correctly, the company will experience a gap between service-quality specifications and service delivery. True (moderate) p. 236 19. For more and more companies, the key to customer satisfaction is employee satisfaction. True (easy) p. 237 20. When a service company provides installation, training, and maintenance as a part of its product, it is offering value-augmenting services. False (difficult) p. 239

Multiple Choice Questions

21. A(n) _______________ is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. a.) service (easy) p. 229 b.) guarantee c.) rebate d.) offset e.) intangible 22. Best Buy will often try to sell a buyer of a high-end television monitor an extended warranty. This is an example of selling _______________. a.) a pure tangible good b.) a tangible good with accompanying services (moderate) p. 229 c.) a hybrid d.) a pure service e.) a major service with accompanying minor goods and services 23. Which of the following best describes the category in which the offerings service mix is distinguished? People patronize restaurants for both food and service. a.) a pure tangible good b.) a tangible good with accompanying services c.) a hybrid (difficult) p. 229 d.) a pure service e.) a major service with accompanying minor goods and services 24. Which of the following is the best example of pure service? a.) a lawn mowing service b.) a car repair shop c.) a weight loss clinic that provides the consumer with its own brand of food d.) a movie theater (moderate) p. 229

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e.) an amusement park 25. Mr. Tse and his family took a vacation trip to Washington D.C. While there, they bought souvenir Tshirts and hats to take home to friends who didnt have the opportunity to go. The experience of the Tses is an example of which offering category? a.) a pure tangible good b.) a tangible good with accompanying services c.) a hybrid d.) a pure service e.) a major service with accompanying minor goods and services (moderate) p. 229 26. For $5 a day, Chlena will go to your home and feed and water your pet for you while you are on vacation. The service Chlena provides is an example of a _______________. a.) pure tangible good b.) tangible good with accompanying services c.) hybrid d.) pure service (moderate) p. 229 e.) major service with accompanying minor goods and services 27. State Farms theme Like a Good Neighbor, State Farm Is There is one way of managing the service characteristic of _______________. a.) intangibility (difficult) pp. 229-230 b.) inconsistency c.) inseparability d.) variability e.) perishability 28. Highway billboards advertise clean restrooms at Texaco stations, with the idea that clean restrooms imply the entire operation is clean, safe, and customer-oriented. Advertising a clean restroom is one method used to manage the service characteristic of _______________. a.) inseparability b.) intangibility (moderate) pp. 229-230 c.) inconsistency d.) perishability e.) variability 29. Holdsworth Contracting operates on the exclusive northwest side of the city. Holdsworth has all employees wear clean khaki uniforms on the job. Clean Khaki uniforms imply that since the company cares about how its employees look, it will also do the job with careful attention to details for the clients. This is one way to deal with the characteristic _______________of service. a.) intangibility (moderate) pp. 229-230 b.) inseparability c.) inconsistency d.) variability e.) perishability

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30. The Virginia Beach Marine Science Museum has a hands-on section where guests can feed horseshoe crabs, touch hermit crabs, and try their hand at catching sand fleas. The hands-on section of the museum is a good way to deal with the _____________characteristic of service. a.) intangibility (moderate) pp. 229-230 b.) inseparability c.) inconsistency d.) variability e.) perishability 31. The fact that services are used or consumed at the time of their creation is an example of the service characteristic of _______________. a.) intangibility b.) inseparability (moderate) p. 230 c.) inconsistency d.) variability e.) perishability 32. Disney advertises a number of reasons why you should frequent its resorts and amusement parks. One reason is the excellent service provided by its cast. Another reason is the beautiful weather in the places Disney has facilities. This is an example of the service characteristic of _______________. a.) intangibility b.) inseparability (moderate) p. 230 c.) reliability d.) variability e.) perishability 33. The service characteristic of inseparability severely limits service providers ability to provide service and increase profits. One way to deal with this problem is to _______________. a.) use more sales promotions such as coupons, contests, and sweepstakes (difficult) p. 230 b.) invest in good human resource selection and training c.) provide a tangible cue through its physical setting, communications, or choice of symbols d.) standardize the service process e.) offer incentives to customers to use the service at peak use times 34. When Carlos goes into Starrs, a local restaurant that features catfish and hush puppies, he sometimes gets his food fast and hot. Other times his order is slow, and his food arrives at his table cold. If Jim wants a special order, like an extra bowl of vidalia onions in vinegar, he never knows how long hell have to wait for his food. Jim is experiencing the service characteristic of _______________. a.) intangibility b.) inseparability c.) variability (moderate) p. 230 d.) autonomy e.) perishability 35. The service characteristic of variability can have a significant impact on customer satisfaction. One way to deal with this problem is to _______________. a.) require employees to work more quickly b.) provide a tangible cue through its physical setting, communications, or choice of symbols c.) hire more service providers d.) standardize the service process (difficult) p. 230 e.) offer incentives to customers to use the service at non-peak use times

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36. The quality of services depends upon the provider, location, circumstances, and time. This fact illustrates the service characteristic of _______________. a.) variability (moderate) p. 230 b.) inseparability c.) intangibility d.) consumability e.) perishability 37. Which of the following is not a prescribed way of dealing with the variable nature of service provision? a.) careful employee recruiting b.) making pricing consistent at all outlets (moderate) p. 230 c.) creating a service blueprint d.) building morale and enthusiasm among employees e.) monitoring customer satisfaction 38. Perishability is a problem for service providers. One way to deal with this is to _______________. a.) use a constant pricing strategy b.) provide a tangible cue through physical setting, communications, or choice of symbols c.) standardize the service process d.) eliminate any complementary services so that all workers can be focused on delivering the primary service e.) offer incentives to customers to use the service at non-peak use times (difficult) p. 230 39. Brighton Resort, up the canyon from Salt Lake City has begun to market summer vacation packages to people who like to take nature hikes and enjoy the mountain vistas. This is one way to deal with the _______________characteristic of service. a.) perishability (moderate) p. 230 b.) variability c.) inconsistency d.) inseparability e.) intangibility 40. Hotels can try to influence demand for their products and control the perishability characteristic of service by _______________. a.) creating a slogan that focuses on service reliability b.) restructuring their physical plant to reinforce their service objective c.) maintaining clean and inviting lobbies d.) using differential pricing (difficult) p. 231 e.) standardizing the service process and providing more training to service personnel 41. Echo goes to Asian Gourmet for lunch because their lunch specials are $3.75, while the same meal after 4 p.m. costs $6.50. Asian Gourmet probably uses different prices at different times as a strategy for dealing with the _______________characteristic of services. a.) perishability (moderate) p. 230 b.) variability c.) inconsistency d.) inseparability e.) intangibility

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42. Booms and Bitner suggest that the Ps for the marketing of goods differs from the Ps needed for the marketing of services. The hanging of diplomas in physicians offices is an example of which of the Ps identified by Booms and Bitner? a.) people-orientation b.) physical evidence (moderate) p. 231 c.) process d.) promotion e.) positioning 43. Making the people portion of a service offering work involves careful attention to all of the following except: a.) above-industry pay for employees (moderate) p. 231 b.) selection and training of employees c.) competence of the employees d.) goodwill and a caring attitude among employees e.) employees that take the initiative 44. A doctor in private practice recognizes that patients have a hard time deciding whether they got good service from a medical facility. She decides to help patients feel well cared for by always donning the white overcoat in her office, by displaying copies of her diplomas in each examination room, and by providing all patients with an appointment card for their next visit. The doctor is following Booms and Bitners advice about service provision by paying attention to _______________. a.) selection of people b.) providing physical evidence (moderate) p. 231 c.) standardizing her processes d.) creating goodwill e.) promoting her practice to nonusers 45. _______________ marketing describes the work done by the company to train and motivate its employees to serve the customers well. a.) Interactive b.) External c.) Consultative d.) Internal (moderate) p. 232 e.) Relationship 46. Erin is great at providing needed assistance on the phone with students in her online degree program. This is an example of _________ marketing. a.) interactive (moderate) p. 232 b.) external c.) internal d.) consultative e.) relationship 47. Characteristics a buyer can evaluate before purchase are called _______________. a.) search qualities (moderate) p. 233 b.) experience qualities c.) credence qualities d.) differentiation qualities e.) productive qualities

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48. ______________ are characteristics a buyer can evaluate after purchase. a.) Search qualities b.) Experience qualities (moderate) p. 233 c.) Credence qualities d.) Differentiation qualities e.) Productive qualities 49. In the absence of noticeable and rapid healing, Sucheta is not sure whether she got good service by her physician. Medical services are a good example of this type of difficulty ____________ where the consumer finds hard to evaluate even after consumption. a.) search qualities b.) experience qualities c.) credence qualities (moderate) p. 233 d.) differentiation qualities e.) productive qualities 50. Because services are generally higher in experience and credence qualities than products, consumers _______________. a.) generally rely more on advertising than on word-of-mouth b.) are generally not loyal to service providers, regardless of satisfaction level c.) make their service selection based on low price d.) expect brand name services to offer service parity e.) use personnel and physical cues to judge service quality (difficult) p. 234 51. On the continuum of evaluation of service, which of the following would be highest in credence quality? a.) a nail fill-in job b.) removal of your wisdom teeth (moderate) p. 233 c.) a Grand Slam breakfast at Dennys d.) a river trip with Wild West Tours e.) a day care provider 52. On the continuum of evaluation of service, which of the following would be highest for search quality? a.) a nail fill-in job b.) clothing (moderate) p. 233 c.) a Grand Slam breakfast at Dennys d.) a river trip with Wild West Tours e.) a day care provider 53. A(some) solution(s) to price competition in the service industry, as suggested by the text, is(are) to _______________. a.) do more and better promotion b.) improve productivity and cost controls c.) engage in niche market segmentation d.) rely more on advertising and less on word-of-mouth e.) differentiate the offer, image, and delivery of the service (difficult) p. 234

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54. For an adult day care provider, the primary service package includes _______________. a.) watchful care and physical facilities (moderate) p. 234 b.) aerobics and movement instruction c.) computer lessons d.) music appreciation classes e.) an on-staff hair stylist to cut the guests hair 55. For a dental office, the secondary service package would include _______________. a.) cleanings for children b.) emergency dental surgery in the event of an accident c.) a Lego table in the reception area to keep younger patients occupied while waiting (moderate) p. 234 d.) bridgework e.) x-rays to detect serious decay problems 56. A situation in which a day care provider thinks that parents want better food, when in fact parents are more concerned about their childrens security is an example of a gap between _______________. a.) consumer expectation and management perception (moderate) p. 235 b.) management perception and service quality perception c.) service quality specifications and service delivery d.) consumer expectations and service delivery e.) service delivery and external communications 57. Dr. Smith was trying to register students for the new school term. Unfortunately, there was no one there to answer the phone, and Dr. Smith spent more time taking messages for the other faculty members than she would have liked. Several students were disgruntled by their long wait in line. This is an example of a gap between _______________. a.) consumer expectation and management expectation b.) management perception and service quality perception c.) service quality specifications and service delivery (moderate) p. 236 d.) consumer expectations and service delivery e.) service delivery and external communications 58. Rent-A-Wreck rents older cars for much lower rates than the competitors charge to rent their newer cars. The brochures for Rent-A-Wreck show cars that look clean and no more than 5 years old, but Pascal is disappointed to find that they provide him with a dinged-up 1989 Toyota Camry when he orders a mid-size. This is an example of a gap between _______________. a.) consumer expectation and management expectation b.) management perception and service quality perception c.) service quality specifications and service delivery d.) consumer expectations and service delivery e.) service delivery and external communications (moderate) p. 236

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59. Mohamed is a part-time, night MBA student who works for an international shipping firm. He is disappointed when he gets a B in his international marketing course, and in a confrontation with the professor, tells him, you know its not my fault that I had to travel so much this semester. This dissatisfaction is a result of the service quality gap of _______________. a.) perceived service and expected service (moderate) p. 236 b.) service delivery and internal communications c.) management perception and service-quality perception d.) service-quality specifications and service delivery e.) service delivery and external communications 60. The best-managed service companies are characterized by _______________. a.) a history of top management commitment to quality (easy) p. 236 b.) annual performance reviews of all employees c.) a wide gap between expected performance standards and actual performance d.) never having any customer complaints e.) high employee turnover 61. Which of the following is NOT a method typically used by a service provider to monitor how consumers perceive its service quality? a.) comparison shopping b.) customer surveys c.) SWOT analyses (moderate) pp. 236-237 d.) service-audit teams 62. According to the text, service productivity can be improved by _______________. a.) outsourcing production to cheaper labor offshore b.) increasing quantity of service provided by surrendering some quality (difficult) p. 238 c.) increasing pay and requiring workers to work harder and longer for increased pay d.) avoiding the implementation of technology because it seems to cause more problems than it solves e.) using less expensive part-time labor to provide customer service 63. An upscale repair garage for fine European vehicles decides to drop its Fram filter contract in favor of a new filter system that can be effectively rinsed out, rather than replaced. Adopting this new technology for oil changes will save mechanics lots of time, given the quirky locations oil filters are put on European luxury cars. This is an example of increasing its productivity through _______________. a.) adopting a manufacturing approach b.) requiring service providers to work more quickly c.) increasing the quality of service provided by surrendering some quantity d.) doing away with obsolete methodology (moderate) p. 238 e.) designing a more effective service

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64. When catalog retailers made it possible for customers to place orders on the Internet at the retailers Web sites, the retailers were increasing productivity through _______________. a.) designing a more effective system that maintained quality without sacrificing quantity b.) industrializing the service c.) using technology to give better customer service and make service workers more productive (difficult) p. 239 d.) making the need for human contact obsolete e.) designing a more effective system that uses a manufacturing approach to doing business 65. When a service company provides installation, training, and maintenance as part of its product, it is offering _______________. a.) value-augmenting services b.) dependability services c.) core services d.) a warranty e.) facilitating services (moderate) p. 239 66. Which of the following is not listed in the text as a way of increasing service productivity? a.) have customers substitute their own labor for company labor b.) surrender some quality c.) use technology d.) lower prices to service customers (moderate) pp. 238-239 e.) use better selection and training of employees 67. When considering the purchase of a service or product, industrial customers are likely to worry about all of the following except _______________. a.) status related to the purchase (moderate) p. 239 b.) out-of-pocket maintenance costs c.) lost time d.) reliability e.) failure frequency 68. Sears sometimes offers promotional free delivery and set-up for appliances that cost more than $750. This is an example of _______________. a.) value-augmenting services b.) facilitating services (moderate) p. 239 c.) service contracts d.) postsale service strategy e.) lifecycle cost 69. Sol decides he can afford a $200 monthly car payment. The saleswoman steers him toward a new 2door Hyundai Accent and tells him she can do the deal within Sols budget, and will even include an extended warranty that lengthens the standard warranty by 2 years and lowers the deductible for some repairs. This extended warranty is an example of _______________. a.) value-augmenting services (moderate) p. 239 b.) facilitating services c.) service contracts d.) postsale service strategy e.) lifecycle cost

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70. Edmunds.com provides a well-organized information source about automobiles and light trucks for U.S. buyers. Consumers like the service because they can browse car reviews, study specs, even arrange for insurance, allowing them to skip or minimize visits to other car sites. This auto-related Web site service is an example of which trend in customer service? a.) more reliable and easily fixable equipment b.) modular and disposable products c.) consumer desire for dealing with only one entity for a bundle of related products and services (easy) p. 240 d.) use of call centers and Internet to deliver services e.) increasingly sophisticated consumers

Essay Questions
71. Many talented programmers in the Seattle area do not have the requisite social or grooming skills to work closely with their busy and more formal managers. Bowers Employee Success Service teaches a four-hour class on grooming and dress-for-success. Use the four characteristics of service to describe this teaching service and provide one method that can be used to reduce the problems associated with each characteristic. Answer: Student answers to how the service provider can deal with the various service characteristics will vary. The following is a suggested answer: (1) The service is offering a product that cannot be seen, tasted, felt, heard, or smelled before it is purchased. Testimonial letters from satisfied corporations can be used to reduce this intangibility. The way the teacher carries out the class can also reduce and even overcome intangibility. (2) The grooming and dress-for-success class is consumed at the same time it is produced. One method the owner of Bowers can use to overcome this problem with inseparability is to hire and train more grooming and dress-for-success instructors. (3) Because the training depends on who is providing it and when and where it is provided, this service could be highly variable. Bowers can invest in good human resources selection and training. Recruiting the right person is very important for this service. (4) Services cannot be stored. The perishability of services is a problem when demand is not steady. Bowers could use differential pricing, a reservation system, or cultivate requests for the service at non-peak times. (moderate) pp. 229-230 72. There are certain areas of Birmingham that are so rough that Dominos, Pizza Hut, and many other restaurant chains will not deliver to them. Homeboys Restaurant Delivery and Catering Service will deliver. With a bank of phones and two drivers, the company picks up at the restaurant of your choice and delivers to your doorstep. Its drivers use late-model inconspicuous used cars. Homeboys runs a tab at the restaurants and pays weekly for food picked up by its drivers. Customers are charged a $3 delivery price on $10 minimum orders. Its drivers hand out flyers with the Homeboy logo and the names of participating restaurants. Each driver also has the menu from those restaurants. In a short essay, discuss Homeboys in terms of the three Ps of service marketing as defined by Booms and Bitner.

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Answer: (1) People is the first P. Obviously, people are an important ingredient for Homeboys. They are delivering in many areas deemed too dangerous by other delivery services. Its people must be smart, careful, trustworthy, and willing to take a risk. (2) Physical evidence of its service would be the flyers and the menu. Also the drivers cars are another example of the physical evidence of the service. (3) Process is the third P. The people who developed the concept of Homeboys came up with a way to capitalize on the fact that many people wanted food delivery service and were willing to pay for it if someone could figure out a way to get it to them safely. (moderate) p. 231 73. In a short essay, define internal marketing, external marketing, and interactive marketing in terms of a dog grooming service. Answer: External marketing describes the normal work to prepare, price, distribute, and promote the service to customers. For the dog grooming service, this would involve gathering the tools needed, finding a location, pricing the service for big dogs compared to small dogs and promoting the service to its target market. Internal marketing describes the work to train and motivate employees to serve customers well. In terms of the dog grooming service, this would include figuring out ways to get the employees to greet the dog and owner pleasantly and to motivate employees to provide the highest possible customer satisfaction. Interactive marketing describes the employees skill in serving the client. In terms of the dog grooming service, this would refer to the groomer being able to give a terrier cut and a poodle cut and make the cuts correct to the dog but distinctive from each other. (easy) p. 232 74. Draw, label, and explain the Continuum of Evaluation for Different Types of Products. What is a product that is high in search qualities and why? What is a product that is high in experience qualities and why? What is a product that is high in credence qualities and why? Answer: Figure 12-3 provides the springboard for this answer. the key dimensions are the horizontal Easy and Difficult to evaluate, along with the overlapping normal-type curves that represent most goods and most services. The three other labels are provided in the question and deal with the credence, experiential, and search qualities. Students should also recognize that product includes services. On the second set of questions, answers will vary, but in general, a product that has high experience qualities is one that is better evaluated after the product or service has been purchased. An example would be a meal at a restaurant. It cannot be evaluated until it has been experienced. A product that has high search qualities can be evaluated prior to the purchase. An example is clothing or jewelry, which allow for careful inspection before it is bought. A product with high credence qualities is one that is difficult to evaluate even after the purchase. An example is a medical process, or auto repair for uninitiated owners. Even after the purchase it is hard to determine if the repair was done well, or if the consumer got her moneys worth. (moderate) p. 233

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75. Cori gets lucky enough to be accepted as a new owner of a Krispy Kreme franchise in Rexburg, Idaho. Explain five gaps that could cause unsuccessful service delivery at her new store. Answer: These are the gaps and how they might play out with Coris new franchise: a.) Gap between consumer expectation and management perception: Cori might think that consumers want more donut flavor choices, but in fact, customers are more concerned about the freshness of the doughnuts they purchase. b.) Gap between management perception and service-quality specification: Cori might tell her employees to make sure the bathrooms are really clean, but without clear detail on what that means, an employee might leave the bathroom in a less-than-desirable state. c.) Gap between service-quality specifications and service delivery: workers might not be able to correctly make change, or get the drive-through orders right, causing unhappy by consumers. d.) Gap between service delivery and external communications: Ads for the new store may show beautifully photographed products that do not live up to the actual product one ends up with when buying a dozen. e.) Gap between perceived service and expected service: A customer could buy perfectly acceptable doughnuts, eat them, and feel the product was stale, causing dissatisfaction. (moderate) pp. 235-236

Mini-Cases
Mini-Case 12-1 Horizons Unlimited is a medium-sized travel agency that wants to become larger. Its slogan is, You dream. We deliver. We plan. You play. Currently, it offers customers travel bags, personal electronic organizers, and city maps as ancillary products to the trips it arranges. The staff dresses informally. A gregarious soft-spoken receptionist takes incoming calls and greets each caller like a long-lost friend. The travel agency makes every single arrangement for the traveler down to the slightest detail, and even provides travelers with a cellular phone to call the agency if they have any problems on their trip. 76. Refer to Mini-Case 12-1. The travel agency is an example of a _______________. a.) pure service b.) major service with minor goods and services (moderate) p. 229 c.) hybrid d.) pure tangible good e.) tangible good with accompanying service 77. Refer to Mini-Case 12-1. The travel agencys free gifts address the service characteristic of _______________. a.) intangibility (moderate) pp. 229-230 b.) inseparability c.) variability d.) inconsistency e.) perishability

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78. Refer to Mini-Case 12-1. For some trips it plans, the agency agrees to pay $200 to you the customer if the dream it has planned for you turns out to be a nightmare. This is one way the agency can deal with the _______________characteristic of service. a.) intangibility b.) inseparability c.) variability (moderate) p. 230 d.) inconsistency e.) perishability Mini-Case 12-2 On his return trip to Houston from Cordoba, Argentina, Gustavos flight from Santiago, Chile, was cancelled. It was late at night and the airline employees waved off angry customers telling them there was nothing they could do, that the customers would have to return again and try to see if they could get seats on tomorrows flight. Gustavo reluctantly got into a cab and tried to find a nearby motel. 79. Refer to Mini-Case 12-2. This service delivery breakdown is most closely associated with which of the following service delivery failure gaps? a.) Gap between consumer expectation and management perception b.) Gap between management perception and service-quality specification c.) Gap between service-quality specifications and service delivery (moderate) p. 236 d.) Gap between service delivery and external communications e.) Gap between perceived service and expected service 80. Refer to Mini-Case 12-2. Which of the following would not be an effective way for the airline to resolve the types of complaints that result from service delivery failures? a.) develop hiring criteria and training programs that take into account employees roles in service recovery b.) develop guidelines for service recovery that focus on achieving fairness and customer satisfaction c.) remove barriers that make it difficult for customers to complain, while developing effective response systems d.) maintain customer databases that allow analysis of the types of complaints voiced, followed by relevant policy adjustments e.) make and maintain strict policies about when a customer should be compensated for a missed flight (difficult) p. 237 81. Refer to Mini-Case 12-2. Service recovery is critical to the cultivation of profitable returning customers. The employees did not make any service recovery efforts and Gustavo is unlikely to fly with this airline again, no matter what happens. He plans to write the companys president with his protest. If you were the recipient of Gustavos letter, which of the following would not be good advice? a.) listen carefully and tactfully ask Gustavo questions b.) apologize to Gustavo, if appropriate c.) avoid an apology for legal reasons, but assure Gustavo that you understand his frustration (moderate) p. 237 d.) offer Gustavo a solution that is acceptable to the customer and fits with company objectives e.) follow through on what you decide with Gustavo

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