Chapter 12 Flashcards
Insurance companies are examples of service organizations.
T
Services tend to exhibit more search qualities than do tangible goods
F. Tangible goods has more search qualites than tangible
Services are considered inseparable because most services cannot be felt or touched in the same
way most goods can be sensed.
Intangibility
All of the following are unique characteristics that distinguish services from goods EXCEPT:
a. intangible
b. inseparable
c. searchable
d. heterogeneous
e. perishable
C
A service cannot be touched, seen, tasted, heard, or felt in the same manner in which goods can be
sensed and, therefore, is referred to as:
a. impervious
b. extraneous
c. synergistic
d. perishable
e. intangible
E
A(n) _____ is a characteristic that can be easily assessed prior to purchase, such as the softness of
a mattress or the color of curtains.
a. search quality
b. intangible attribute
c. experience quality
d. credence quality
e. heterogeneity feature
A
The service provided by employees at boutique hotels cannot be
touched, seen, or felt in the same manner as the hair and bath products and can be described as:
a. unknowable
b. tangible
c. intangible
d. credible
e. incomprehensible
C
While it is difficult for a dog owner to evaluate the service their pooch
will receive, they are impressed with the upscale design and amenities offered. To cope with the
problems of service _____, the facilities at the Ritzy Canine are very upscale in design to give the
impression of excellent treatment.
a. perishability
b. homogeneity
c. intangibility
d. inseparability
e. heterogeneity
C
A characteristic that consumers may have difficulty assessing even after purchase because they do
not have the necessary knowledge or experience is referred to as _____ quality.
a. search
b. experience
c. credence
d. abstract
e. inert
C. Medical and consulting services are examples of services that exhibit credence qualities.
Alec had his gall bladder removed, but he was unconscious during the operation. In fact, even
though he has an incision, he really has no way of knowing if the service was actually performed
even after it was allegedly performed. That is because medical services such as this exhibit
_____ qualities.
a. credence
b. perishable
c. experience
d. search
e. Homogeneity
A
Which of the following services would be most likely to exhibit strong credence qualities?
a. a math tutorial service
b. the repair of a leaky drain
c. the preparation of a dead body for burial
d. tax return preparation
e. a landscaping service that mows lawns
C
David and Kathy are trying to decide where to go on vacation. David has suggested a cruise.
Since neither of them have been on a cruise before, they will be unable to assess the _____ of a
cruise until they actually take the vacation.
a. tangible attribute
b. experience quality
c. creative quality
d. credence quality
e. heterogeneity feature
B
Girls Just Wanna Have Funds” is a Washington, D.C. support group that consist of mostly young
women that offers tips on budgeting and debt relief. Since you cannot evaluate the quality of the
financial advice until after you have received it, this is an example of the _____ characteristic of
service.
a. Reliability
b. Heterogeneous satisfaction
c. Search quality
d. Temporal quality
e. Experience quality
E
To evaluate the quality provided by boutique hotels, customers can
assess the quality only after staying. This is which quality characteristic?
a. experience
b. relational
c. credence
d. search
e. synergistic
A
Before leaving a dog at the Ritzy Canine, its owner would more than
likely inspect the facilities and use _____ qualities to evaluate the establishment.
a. experience
b. credence
c. investigative
d. search
e. standardized
D
What is a search quality in the context of product characteristics?
a) A characteristic that can be easily assessed before purchase
b) A feature that becomes apparent only after purchase
c) A subjective attribute of a product
d) A quality that is difficult to evaluate
A
Greta, the owner of House Mouse Cleaning Services, must be physically present when she cleans
a house or office. The need for her presence as the service is performed is an example of the
intangibility of services.
F. The need for her presence and the customer’s presence is an example of how services are
produced and consumed simultaneously (inseparability)
Which unique characteristic of services means consumers must be present during the production?
a. intangibility
b. inseparability
c. heterogeneity
d. perishability
e. connectivity
B
Management-labor mediation, child care, and college preparation classes are all services that are
produced and consumed at the same time. All of these services exhibit the service characteristic
of:
a. inseparability
b. intangibility
c. heterogeneity
d. perishability
e. variability
A
It is difficult for most of us to talk about mistakes we have made. Unfortunately, for organizations
like Consumer Credit Counseling to help you work through your financial issues, you must be
willing to honestly discuss your financial condition. In other words, for these organizations to
help you must be actually involved in the process of developing your financial plan, which points
to the _____ nature of services.
a. intangibility
b. inseparability
c. heterogeneity
d. perishability
e. flexibility
B
What does “inseparability” refer to in the context of services?
a) The ability to separate the service from the service provider
b) The inability to separate the service from the service provider
c) The ease of separating the service from the service provider
d) The interchangeable nature of service providers
B
Why is the presence of the service provider necessary during the creation of the service?
a) To increase operational efficiency
b) To ensure the service meets quality standards
c) To reduce costs
d) To minimize customer interaction
B
What role do customer-facing employees play in the service experience?
a) They have no impact on the service experience
b) They are a minor part of the service experience
c) They are a huge part of the service experience
d) They are interchangeable with other employees
C
Why do service companies invest in extensive employee training?
a) To reduce customer interactions
b) To eliminate the need for customer-facing employees
c) To ensure a positive customer experience
d) To minimize employee turnover
C
Heterogeneity of services means the quality of a service may not be consistent
T
Which unique characteristic of services is the variability of the inputs and outputs of services,
which causes services to tend to be less standardized and less uniform than goods?
a. intangibility
b. inseparability
c. heterogeneity
d. perishability
e. flexibility
C
It is difficult to achieve consistency and standardization of services because of which service
characteristic?
a. customization
b. simultaneous production and consumption
c. intangibility
d. perishability
e. heterogeneity
E
A reading service for the visually impaired requires each reader applicant to prepare and submit a
one-hour interview tape of material chosen by the service to determine whether the reader has
pleasing vocal characteristics and is accent-free so that it is not necessary to use the same reader
every time. The reading service is trying to limit problems associated with the service
characteristic of:
a. tangibility
b. credence quality
c. heterogeneity
d. simultaneous production and consumption
e. flexibility
C
Community Trust Bank has always prided itself on the friendliness of its employees. However,
the results of a recent mystery shopper study indicated that the bank tellers rarely greeted
customers or thanked them after the transaction. As a result, all bank employees that have
customer contact are going through a training program to enhance customer service. What unique
aspect of services is Community Trust attempting to address?
a. heterogeneity
b. perishability
c. intangibility
d. simultaneous production and consumption
e. unfocused targeting
A
Since boutique hotels are typically independently owned and/or part of
small chains, people who seek out boutique hotels cannot be sure of what type of amenities or
specific services they will be provided. In other words, the services provided by boutique hotels
tend to be relatively high in:
a. instability
b. inseparability
c. intangibility
d. heterogeneity
e. perishability
D
The bear watching vacation experience can vary greatly depending on
many factors, including the lodge itself and the tour guide. For example, lodging can run from a
“rustic” room with little more than a bed to a plush room with all the modern amenities. This is an
example of the _____ characteristic of services.
a. intangibility
b. inseparability
c. heterogeneity
d. perishability
e. homogeneity
C
What does “heterogeneity” refer to in the context of services?
a) Consistency in service quality across employees and transactions
b) Variation in service quality across employees and transactions
c) Predictability in service delivery
d) Uniformity in customer experiences
B
How does heterogeneity manifest in service delivery?
a) Through consistent service quality
b) Through predictable customer experiences
c) Through variation in service quality between employees and transactions
d) Through uniformity in customer interactions
C
What do service organizations aim to do regarding heterogeneity in customer experiences?
a) They aim to increase heterogeneity
b) They aim to maintain the current level of heterogeneity
c) They aim to reduce the amount of heterogeneity
d) They aim to eliminate heterogeneity entirely
C
What impact does heterogeneity have on customer perceptions of service quality?
a) It improves customer perceptions
b) It has no effect on customer perceptions
c) It may lead to mixed or inconsistent customer perceptions
d) It guarantees positive customer perceptions
C
Due to service _____, services cannot be stored, warehoused, or inventoried.
a. tangibility
b. variability
c. intangibility
d. perishability
e. heterogeneity
D. Perishability is the inability of services to be stored, warehoused, or inventoried.
David and Kathy like to take their young son, Chaz, to Moe’s for lunch after church on Sunday.
While they like to eat at Moe’s anytime, Sunday is particularly good because it’s “kids-eat-free”
day at Moe’s southwestern grill. Until Moe’s began the reduced pricing program, Sundays were
very slow. Now it is one of the busiest days of the week. This price reduction was a way to
contend with the service characteristic of:
a. variability
b. perishability
c. intangibility
d. inseparability
e. simultaneous production and consumption
B. Differential pricing tries to even out demand. This is important because services cannot be stored,
inventoried, or warehoused.
One of the reasons consumers can purchase cheap flights or hotel rooms on Web sites such as
Expedia.com and Hotels.com is due to the fact that airlines cannot sell the seat on a specific flight
after the plane takes off or hotels cannot recoup the revenue from that room for that night once
the night passes. Which unique characteristic of services does this illustrate?
a. intangibility
b. inseparability
c. perishability
d. simultaneous production and consumption
e. variability
C
What does “perishability” refer to in the context of services?
a) The quality of services deteriorating over time
b) The inability to store services for later use
c) The durability of services
d) The long-lasting nature of service
B
How do time and location constraints affect the delivery of services?
a) They make services readily available at all times and locations
b) They impose limitations on when and where services can be provided
c) They have no impact on service delivery
d) They ensure flexibility in service scheduling
B
How do some service providers manage demand fluctuations caused by perishability?
a) By offering services at fixed prices
b) By increasing service availability
c) By using demand or dynamic pricing strategies
d) By reducing the quality of services
C
Which of the following industries commonly uses demand or dynamic pricing to manage perishability?
a) Healthcare
b) Retail
c) Technology
d) Hospitality
D
What is a strategy employed by service providers to make off-peak times more attractive?
a) Offering services at a fixed rate
b) Implementing large cancellation fees
c) Using demand or dynamic pricing
d) Providing no refunds for missed appointments
C
All of the following are service components customers use to evaluate service quality EXCEPT:
a. validity
b. empathy
c. assurance
d. responsiveness
e. reliability
A. Customers evaluate service quality through five components: reliability, responsiveness,
assurance, empathy, and tangibles.
Often hotels will offer deep discounts on weekends and during the off-season; for the same
reason, airlines will adopt a similar pricing strategy during off-peak hours. These services cannot
be stored, warehoused, or inventoried because they are perishable.
T
