MTKG 358 FINAL EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
What is a key difference in customer evaluation of pricing for services compared to goods? - Answers
Customers often have inaccurate or limited reference prices for services.
What type of price is not the only relevant factor for service customers? - Answers Monetary price.
How does price signal quality in services? - Answers Price is a key signal of quality in services.
What limits customer knowledge of service prices? - Answers Service variability limits knowledge.
Why are providers often unwilling to estimate prices? - Answers Individual customer needs vary.
What are some nonmonetary costs that customers consider? - Answers Time costs, search costs,
convenience costs, and psychological costs.
How can services reduce nonmonetary costs for customers? - Answers By embedding service in other
activities to reduce perceptions of time and convenience costs.
What is the relationship between price and service quality? - Answers Price is an indicator of service
cost and service quality.
What factors influence customer reliance on price as an indicator of quality? - Answers Availability of
other information, service cues to quality, brand name, firm reputation, advertising, and price
variance.
What are the three basic marketing price structures and challenges for services? - Answers
Competition-based, cost-based, and demand-based challenges.
What is service value? - Answers The mental trade-off of perceived quality and perceptions of
sacrifice.
What is one customer definition of value related to price? - Answers Value is low price, such as using
a coupon or discounted airline ticket.
What pricing strategy is used when customers define value as low price? - Answers Discounting, odd
pricing, and penetration pricing.
What is prestige pricing? - Answers Pricing at the high end luxury when customers define value as
everything wanted in a service.
What is value pricing? - Answers Giving more for less, such as value menus.
What is price bundling? - Answers Offering extended service warranties, training, or expedited
delivery.
What are the fundamental types of AI in the service process? - Answers Mechanical, thinking, and
feeling intelligence.
What does mechanical intelligence do? - Answers Performs mechanical and repetitive tasks precisely
and accurately.
How does thinking intelligence benefit customers? - Answers Makes autonomous decisions and
learns through data mining for customization.
What is the benefit of feeling intelligence in services? - Answers Understands and responds to
customers on a social and emotional level.
What are the three types of AI relevant to service encounters? - Answers Standardization
(mechanical intelligence), Personalization (thinking intelligence), Relationalism (feeling intelligence)
What role do supporters play in service encounters? - Answers They act as behind-the-scenes
suppliers of information and decision-making support to frontline employees.
What is the function of augmenters in service encounters? - Answers Augmenters are visible actors
that assist frontline employees, customers, or both.
What is a service performer in the context of AI? - Answers A service performer provides services to
customers independently of human employees.
What factors influence the adoption of robotics in customer service? - Answers Employee and firm
characteristics, customer characteristics, robot characteristics, and the nature of human-robot
interaction.
What are the implications of robotics adoption for customer service? - Answers It affects perceived
service and customer engagement.
What is Gap 1 in the Gaps Model of Service Quality? - Answers The Listening Gap: It addresses
customer expectations of AI and service robots, technology capabilities, and customer willingness to
accept them.
What does Gap 2 in the Gaps Model refer to? - Answers The Service Design and Standards Gap: It
involves converting customer expectations into realistic service quality designs and ensuring robots
avoid causing customer discomfort.
What is a key difference in customer evaluation of pricing for services compared to goods? - Answers
Customers often have inaccurate or limited reference prices for services.
What type of price is not the only relevant factor for service customers? - Answers Monetary price.
How does price signal quality in services? - Answers Price is a key signal of quality in services.
What limits customer knowledge of service prices? - Answers Service variability limits knowledge.
Why are providers often unwilling to estimate prices? - Answers Individual customer needs vary.
What are some nonmonetary costs that customers consider? - Answers Time costs, search costs,
convenience costs, and psychological costs.
How can services reduce nonmonetary costs for customers? - Answers By embedding service in other
activities to reduce perceptions of time and convenience costs.
What is the relationship between price and service quality? - Answers Price is an indicator of service
cost and service quality.
What factors influence customer reliance on price as an indicator of quality? - Answers Availability of
other information, service cues to quality, brand name, firm reputation, advertising, and price
variance.
What are the three basic marketing price structures and challenges for services? - Answers
Competition-based, cost-based, and demand-based challenges.
What is service value? - Answers The mental trade-off of perceived quality and perceptions of
sacrifice.
What is one customer definition of value related to price? - Answers Value is low price, such as using
a coupon or discounted airline ticket.
What pricing strategy is used when customers define value as low price? - Answers Discounting, odd
pricing, and penetration pricing.
What is prestige pricing? - Answers Pricing at the high end luxury when customers define value as
everything wanted in a service.
What is value pricing? - Answers Giving more for less, such as value menus.
What is price bundling? - Answers Offering extended service warranties, training, or expedited
delivery.
What are the fundamental types of AI in the service process? - Answers Mechanical, thinking, and
feeling intelligence.
What does mechanical intelligence do? - Answers Performs mechanical and repetitive tasks precisely
and accurately.
How does thinking intelligence benefit customers? - Answers Makes autonomous decisions and
learns through data mining for customization.
What is the benefit of feeling intelligence in services? - Answers Understands and responds to
customers on a social and emotional level.
What are the three types of AI relevant to service encounters? - Answers Standardization
(mechanical intelligence), Personalization (thinking intelligence), Relationalism (feeling intelligence)
What role do supporters play in service encounters? - Answers They act as behind-the-scenes
suppliers of information and decision-making support to frontline employees.
What is the function of augmenters in service encounters? - Answers Augmenters are visible actors
that assist frontline employees, customers, or both.
What is a service performer in the context of AI? - Answers A service performer provides services to
customers independently of human employees.
What factors influence the adoption of robotics in customer service? - Answers Employee and firm
characteristics, customer characteristics, robot characteristics, and the nature of human-robot
interaction.
What are the implications of robotics adoption for customer service? - Answers It affects perceived
service and customer engagement.
What is Gap 1 in the Gaps Model of Service Quality? - Answers The Listening Gap: It addresses
customer expectations of AI and service robots, technology capabilities, and customer willingness to
accept them.
What does Gap 2 in the Gaps Model refer to? - Answers The Service Design and Standards Gap: It
involves converting customer expectations into realistic service quality designs and ensuring robots
avoid causing customer discomfort.
