Exam (elaborations) MKT 723 MIDTERM EXAM QUESTIONS AND ANSWERS (LATEST UPDATE)

MKT 723 MIDTERM EXAM QUESTIONS AND ANSWERS (LATEST UPDATE) The Palace, an upscale hotel in Montreal, synchronizes demand and hotel capacity by offering an attractively priced weekend package during the fall when demand for its rooms slows down. In addition to having a luxury-filled weekend at the Palace for $199 per night, guests enjoy very select privileges from a local high end retailer. Its weekend package provides a personal shopping coordinator, complimentary gift wrap and package delivery to the hotel, individual beauty consultation, and a 10 percent discount from the retailer. The Palace's weekend package closes provider ____ of the gaps model of service quality. Answer Selected Answer: C. Gap 1  Question 2 0 out of 1 points The pilots and crew of FlyAway Airlines are trained to inform customers immediately when flight delays occur and to keep customers advised at regular intervals about the changes in a flight's schedule. By keeping customers informed during a flight, FlyAway Airlines is closing provider _____ of the gaps model of service quality. Answer Selected Answer: C. Gap 3  Question 3 1 out of 1 points The marketing that goes on between an insurance agent and a current customer that is buying car insurance for a new teenage driver is an example of _____ marketing. Answer Selected Answer: A. Interacti ve  Question 4 1 out of 1 points Frequent travelers on airlines know one of the costs of traveling is damaged baggage, but they also know that each airline will either repair or replace any luggage damaged by its baggage handlers. The ability to count on this service in the event a handle is torn off or the side of a bag is gashed helps the airlines narrow provider _____ of the gaps model of service quality. Answer Selected Answer: D. Gap 1  Question 5 1 out of 1 points In India weddings are timed to occur when Venus is in the ascendant and Jupiter is strong. This day is deemed lucky. In 2005, almost 15, 000 couples in New Delhi had their wedding on December 25, the day astrologers announced would be the best day for a wedding. It is very likely that wedding planners in New Delhi have difficulty narrowing provider ______ of the gaps model of service quality due to their inability to match supply and demand. Answer Selected Answer: B. Gap 3  Question 6 0 out of 1 points Which of the following describes provider gap 1? Answer Selected Answer: B. Not selecting the right service designs and standards  Question 7 1 out of 1 points Extron Electronics sells coaxial cables for connecting computers to all types of peripheral devices like printers, modems, and fax machines. For the benefit of its customers, Extron provides a laminated card with pictures of all the possible cable connections that a customer could need. With this card, a customer can order from one to any number of connectors with as many feet of cable as is needed. Orders can be placed using a toll-free number, a fax number, or an e-mail address. Company reps are also available 24- hours a day in case the customer is not sure which drawing on the card matches his or her needs. By integrating its services marketing communications, Extron is closing provider _____ of the gaps model of service quality. Answer Selected A. Answer: Gap 4  Question 8 1 out of 1 points Service companies can close provider gap 4 by doing all of the following EXCEPT: Answer Selected Answer: C. Conducting market research  Question 9 1 out of 1 points Companies that emphasize acquiring new customers rather than retaining current customers are using _____ marketing. Answer Selected Answer: D. Transactio nal  Question 10 1 out of 1 points The salesperson had been traveling for two weeks and was in a hurry to get home where she could relax. She had waited at the airport for almost three hours. Then she learned that her flight would be delayed for another two hours due to mechanical trouble. To compensate her for her time, the airlines gave her a $5 coupon to provide her with a meal at one of the airport's restaurants. Since the cheapest meal the salesperson found was $7.50, the airline was more than likely experiencing problems with provider _____ of the gaps model of service quality. Answer Selected Answer: B. Gap 2  Question 11 1 out of 1 points The _____ of a customer is the increased value or profit that accrues for each additional customer who remains loyal to a company rather than defecting to the competition. Answer Selected Answer: C. Lifetime value  Question 12 1 out of 1 points Which of the following is NOT a reason why a service firm may avoid a customer relationship with a particular customer? Answer Selected Answer: A. Customer is not divisible.  Question 13 1 out of 1 points According to the _____, while advertising, sales, and promotions pour profits into your company, there will always be some customer defection, which has the potential to grow larger. Answer Selected Answer: B. Bucket theory  Question 14 1 out of 1 points At the partnership stage of the customer relationship, the firm is most concerned with: Answer Selected Answer: A. The enhancement of its relationship with the customer  Question 15 0 out of 1 points Provincial University has a four-year undergraduate degree program designed for special education teachers. Thirty-five students enter the program each fall. The education department requires that the 35 students take the same classes. Classes are made available in sequence. If Beth wanted to take only one special education class to get her a teaching certificate in learning disabilities (LD), she would be unable to because she would not be able to participate in any carry-over projects from previous classes (this is a common teaching tool for the Provincial University education department faculty). Provincial University will avoid setting up a relationship with Beth because: Answer Selected C. Answer: She is in the wrong segment  Question 16 1 out of 1 points A company that uses a four-tier scheme to segment is customers by profitability: Answer Selected Answer: B. Identifies customers who need different sorts of attention  Question 17 0 out of 1 points Retention strategies built around financial bonds: Answer Selected Answer: A. Have a high degree of service customization  Question 18 1 out of 1 points _____ arise when the customer is required to pay a penalty to switch providers. Answer Selected Answer: D. Contractual costs  Question 19 1 out of 1 points The key to success in the _____ stage of the customer relationship is the firm's ability to organize and use information about individual customers more effectively than its competitors. Answer Selected Answer: E. Partners hip  Question 20 1 out of 1 points The _____ is the customer's underlying generic attitude about the meaning of service and the proper conduct of service providers. Answer Selected A. Answer: Personal service philosophy  Question 21 1 out of 1 points John's flight on FlyAway Airlines from Toronto to Halifax departed two hours late because of a snowstorm in Halifax. The snowstorm that delayed John's flight is a: Answer Selected Answer: C. Situational factor  Question 22 1 out of 1 points The factors that influence adequate service expectations are _____ in nature and fluctuate _____ than the factors that influenced desired service expectations. Answer Selected Answer: B. Short-term; more  Question 23 1 out of 1 points A strike by garbage collectors in a large metropolitan city during prime tourist season will most likely cause tourists to cut short their visit and have a poor image of the city. The garbage strike is an example of a: Answer Selected Answer: B. Situational factor  Question 24 0 out of 1 points Velma was preparing to take her first airplane trip in more than 20 years. One of the primary reasons why she has not flown is because she is over six feet tall, and she hated how close the seats were. Just prior to making plane reservations, she saw an article in a travel magazine congratulating FlyAway Airlines for increasing the room between passenger seats. She did not have time to read the whole article—just the first paragraph. She made her reservations on FlyAway Airlines with the knowledge that she would not have to feel like she was “shoe horned” into her seat. When she boarded the plane, she was struck with how close the seats appeared. Then she learned FlyAway had only increased the room for the first six rows, while a competitor airline had made sure that every seat had extra room. Velma's service expectation levels were shaped by: Answer Selected Answer: E. Implicit service promises and predicted service  Question 25 1 out of 1 points Lillie worked as a caterer when she was in college. She was highly critical of the caterer and its staff that her parents selected for their 50thanniversary party. Lillie's attitude about how a caterer should act reflects her: Answer Selected Answer: D. Personal service philosophy  Question 26 0 out of 1 points The strong wind lifted the caterer's tent off the tent poles and caused it to collapse onto the food and attending guests. These sort of situational factors will _____ the level of adequate service expected and _____ the zone of tolerance. Answer Selected Answer: B. Raise; narrow  Question 27 1 out of 1 points J. Crew, a catalogue retailer, makes the following service guarantee in its catalogue. "Everything we sell is our own design and our own make, and we guarantee it all without reservation. If at any time for any reason you are not completely satisfied with any item, we will make an exchange or refund your payment per your direction." J. Crew's service guarantee is a(n): Answer Selected Answer: C. Explicit service promise  Question 28 1 out of 1 points Lynette said all she expected from the day care at the gym she belonged to was to get her children back at the end of an hour and learn the police had not been called because of something they did. She uses this particular gym because the day care will let her unruly children stay even though it provides only the nominal supervision. Lynette has _____ expectations about the day care. Answer Selected Answer: C. Minimum tolerable  Question 29 1 out of 1 points An effective service guarantee would never be described as: Answer Selected Answer: C. Standardized and/or generic  Question 30 1 out of 1 points Many carwashes offer free replacement washes to car owners if it rains or snows within 24 hours of when they had their cars cleaned at the carwash. Because people who would take advantage of this service guarantee are the ones that are concerned about the appearance of their car, this service guarantee: Answer Selected Answer: D. Is very meaningful  Question 31 0 out of 1 points Robert arrived at the airport with only an hour remaining before he was to board the plane and fly to Jamaica to visit his future in-laws. As he stood in the security check line, he tried to joke with the guard standing near the x-ray machine. This futile attempt at humour resulted in Robert missing the flight and having to explain to several people that he was not a terrorist. The way Robert was treated rudely after he missed his flight led to him experiencing: Answer Selected Answer: A. Procedural unfairness  Question 32 1 out of 1 points The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is an irate type when it comes to complaining would react to this by: Answer Selected Answer: B. Firing the first carpenter and hiring another one who is willing to complete the job  Question 33 1 out of 1 points _____ refers to the actions taken by an organization in response to a service failure. Answer Selected Answer: D. Service recovery  Question 34 1 out of 1 points Learning from lost customers and making the service fail-safe are part of: Answer Selected Answer: C. Service recovery strategies  Question 35 0 out of 1 points With which service recovery strategy is the notion of poka-yokes most closely associated? Answer Selected Answer: A. Learn from lost customers  Question 36 0 out of 1 points In order for employees to be able to solve problems as they occur, they must be: Answer Selected Answer: A. Able to act quickly  Question 37 1 out of 1 points Kate has recently learned to play golf. She tries to play at least once every week. Last week, she decided to try a new golf course. She signed in to play and was given the keys to an electric golf cart without any instructions on how to operate it. After she drove the cart into a lake, she swore never to play golf again. According to Kate, “There were just too many things you had to know before you could become a real golfer.” Two months later, the golf course manager called Kate and asked why she had not returned to play another game. Which service recovery strategy is being used in this example? Answer Selected Answer: B. Learn from lost customers  Question 38 0 out of 1 points Using the drama metaphor, service actors need three characteristics to create the impression on customers. These three characteristics are: Answer Selected Answer: A. Talent, creativity, and ingenuity  Question 39 1 out of 1 points Which of the following is NOT an example of a search quality? Answer Selected Answer: A. Tast e  Question 40 0 out of 1 points Monroe and Ilene are meeting with a potential wedding caterer today. They will sample seven different kinds of wedding cakes, taste three entrees, sip varied wines, and examine table setting options. The caterer allows prospective clients to sample his products before purchase in order to: Answer Selected Answer: D. Eliminate risk  Question 41 0 out of 1 points Which of the following is NOT a form of perceived risk? Answer Selected Answer: D. Soci al  Question 42 1 out of 1 points Researchers found that ___ percent of negative stories regarding self-service technology stemmed from failures of the technology. Answer Selected Answer: B. 60  Question 43 0 out of 1 points If, during a trip to the Bahamas, a traveler falls in love, they may hold assessments of the destination due to____: Answer Selected Answer: A. Attributi on  Question 44 0 out of 1 points Which of the following products is the most difficult to evaluate? Answer Selected Answer: C. Decorative sculpture  Question 45 1 out of 1 points Which of the following statements regarding the influence of emotions and moods on the consumer evaluation of services is true? Answer Selected Answer: E. Mood and emotion bias evaluation of service encounters in "mood-congruent" directions.  Question 46 1 out of 1 points ABC National Bank decreased customer waiting time by hiring "peak-time" tellers at a premium wage to work during high demand periods and by setting up express lines for customers who only need to make a deposit or cash a check. By decreasing customer waiting time, ABC National Bank is: Answer Selected Answer: B. Reducing customer dissatisfaction by reducing the need for customer compatibility  Question 47 0 out of 1 points Products high in_____ qualities are the easiest to evaluate. Answer Selected Answer: A. Experien ce  Question 48 1 out of 1 points An attorney who charges a client for a missed appointment is taking into account the _____ characteristic of services. Answer Selected Answer: E. Perishabil ity  Question 49 1 out of 1 points _____ is a key determinant of whether a product offering should be classified as a product or a service. Answer Selected Answer: D. Tangibili ty  Question 50 1 out of 1 points Which country has the largest percent of GDP attributed to service? Answer Selected A. Answer: Baham as  Question 51 1 out of 1 points Yesterday, Mike went to the dentist for his 6-month check-up. Two weeks before he went to the dentist, he called the office to make an appointment. The day before his check-up, the office's receptionist called him to confirm his appointment. When Mike arrived at the office, he checked in with the receptionist and then waited in the waiting room for 15 minutes, reading a magazine, before being greeted by the dental hygienist, who escorted him to an examination room. The dentist entered the room, greeted Mike, examined Mike's teeth, took a set of x-rays, and asked the dental hygienist to clean Mike's teeth. When his teeth were cleaned, the hygienist told Mike he should return in 6 months for another checkup. Mike experienced the _____ element of the dental office's services marketing mix. Answer Selected Answer: D. Proce ss  Question 52 1 out of 1 points Teethart has developed “tooth manicure” salons, which allow people to whiten their teeth. Each treatment takes place in a small booth, which contains an ergonomically-designed chair, muted lights, and New Age-style music. The walls are painted calming shade of blues and greens. Teethart uses the _____ element of its service to reduce stress associated with dental procedures. Answer Selected Answer: E. Physical evidence  Question 53 1 out of 1 points Which of the following statements describes a marketing implication that results from the simultaneous production and consumption of services? Answer Selected Answer: D. Employees affect the service outcome.  Question 54 1 out of 1 points The maintenance contract offered by Sears on its Kenmore refrigerators, dishwashers, and microwaves is an example of a(n): Answer Selected Answer: C. Servi ce  Question 55 1 out of 1 points Last November, Andrew and Jana went to talk to a wedding consultant about planning their June wedding. The consultant congratulated them on thinking ahead, and then began to ask them questions about what kind of wedding they wanted. She gave them a book that contained all the information they needed to plan a memorable wedding. They met with the consultant regularly to talk about how the plans were coming and made more decisions with her help. The consultant helped them with everything from invitations to wedding reception favours. She even went with Jana to select her wedding gown and her bridesmaids' gowns. The sort of assistance provided by the wedding consultant illustrates the _____ of services. Answer Selected Answer: C. Intangibili ty  Question 56 1 out of 1 points In addition to the elements of the traditional marketing mix, the expanded mix for services includes: Answer Selected Answer: E. People, physical evidence, and process  Question 57 1 out of 1 points Which of the following is NOT an example of a service business? Answer Selected Answer: C. Soft drink bottler  Question 58 1 out of 1 points _____ involves identifying the benefits and the attributes that customers expect in a service. Answer Selected Answer: D. Requirements research  Question 59 0 out of 1 points Which of the following types of interaction activities should NOT be conducted on a continuous basis? Answer Selected Answer: B. Executive visits to customers  Question 60 1 out of 1 points The Alberts Symphony Orchestra realized the classic music market was generally becoming older and needed to learn how to appeal to younger concert-goers. It hired a research agency to identify the positive and negative attributes of going to concerts. In other words, the research agency conducted a: Answer Selected Answer: E. Requirements research  Question 61 1 out of 1 points Outdoor Adventures Inc. is the world's fastest growing outdoor recreation and adventure company. Among its franchises are Great Fishing Adventures, Pathways Recreation, and Rock Climbing Guiders. Every three months, employees from a different franchise overseen by Outdoor Adventures Inc. conduct customer satisfaction telephone surveys. Among the employees who regularly participate in the survey process are senior managers, who are trained and certified to conduct survey interviews. Which type of interaction activity is Outdoor Adventures using to improve upward communication? Answer Selected Answer: E. Executive listening approaches  Question 62 1 out of 1 points A large accounting firm's Incentive/Efficiency Program encourages employees to submit tangible ideas or suggestions that will result in savings or generate additional revenue for the company. The person who suggests an adopted proposal receives a cash reward equal to 10 percent of the first year's net savings or generated revenues. The Incentive/Efficiency Program is designed to achieve which of the following research objectives? Answer Selected Answer: A. Obtain ideas for service improvement.  Question 63 1 out of 1 points Which of the following is NOT a form of qualitative research? Answer Selected Answer: E. Trailer calls  Question 64 1 out of 1 points Which of the following types of research has a high monetary cost? Answer Selected Answer: B. Future expectations research  Question 65 0 out of 1 points The new owner of the Pylons hockey team had research conducted to learn why game attendance was low. The research revealed several reasons, including shortage high prices for snacks, bad seating, and inadequate parking. Once all the problems were fixed, the team owner did not want to have any future attendance problems. He set up kiosks in the hockey arena where attendees could give the team and the arena a “report card.” This would be an example of: Answer Selected Answer: C. A critical incident study  Question 66 1 out of 1 points Key Energy was a company that provided quality oilfield construction, drilling, and other services. The company's top management felt stakeholders did not have a clear image of the company and were considering changing the name to clarify the organization's position in the market. The company conducted an hour long interview with four of its largest customers. Only 25 questions were asked and much probing was done to find out exactly what the participants meant. This is an example of a: Answer Selected Answer: C. Service expectation meeting and review  Question 67 1 out of 1 points Which of the following is NOT an example of technical outcome quality? Answer Selected Answer: A. The sales associate greeting a customer in a specialty clothing store  Question 68 1 out of 1 points Which of the following statements about service encounters are true? Answer Selected Answer: C. If a customer is interacting with a firm for the first time, that initial encounter will create a first impression of the organization.  Question 69 1 out of 1 points When Randy Ross arrived at the airport Enterprise Rent-A-Car to pick up a reserved SUV, he was told the agency had no such car on the lot and that it had no record of him making a reservation. The rental agency's customer service representative apologized profusely and called other agencies until he located an SUV at an agency several miles away. The customer representative personally drove him to the other agency, knocked 20 percent off the rental fee, handed Ross $2 to pay a toll that he would now have to pay to get to his destination, and gave him a free tank of gas. Ross's experience at Enterprise is an example of which type of service encounter incident? Answer Selected Answer: E. Adaptabil ity  Question 70 1 out of 1 points Which of the following statements about customer satisfaction is true? Answer Selected Answer: C. Satisfaction may be associated with feelings of ambivalence when there is a mix of positive and negative experiences.  Question 71 1 out of 1 points Which