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Sales associates at Nordstrom are given a "personal" book to keep track of customers' names, telephone numbers, height and weight, likes and dislikes (e.g., color, style and texture preferences) and charge account numbers to help them become a personal shopper for the customer. In addition, sales associates have an open account to send thank-you notes or flowers to customers. By having a personal book and sending thank-you notes or flowers to customers, Nordstrom's sales associates are showing they care by emphasizing the _____ dimension to influence customer perceptions of Nordstrom's service quality.


A) Reliability
B) Responsiveness
C) Assurance
D) Empathy
E) Tangibles

F) B) and C)
G) A) and E)

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Progressive Insurance looked at insurance from the customer's viewpoint and saw how difficult it was to get an auto claim processed and paid by insurance companies. Then the company crafted its service strategy around solving that problem. The company has fleets of claim adjustors on the road every day, ready to rush to the scene of an accident in their territory and provide fast claims processing-sometimes on the spot. The ability of the insurance company to have an adjustor at accident sites so quickly is an example of which of the following service quality dimensions?


A) Reliability
B) Responsiveness
C) Assurance
D) Empathy
E) Tangibles

F) B) and E)
G) C) and E)

Correct Answer

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Service employees who depend on tips or commissions for income are likely to face greater levels of _____ conflict than employees who receive a straight salary.


A) Person/role
B) Vertical
C) Organization/client
D) Inter-client
E) Horizontal

F) All of the above
G) B) and D)

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_____ customers are those individuals and businesses who buy goods and services from an organization.


A) Internal
B) External
C) Critical
D) Functional
E) Interactive

F) B) and D)
G) C) and E)

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For which of the following service providers is an employee empowerment strategy most suited?


A) A service provider that relies on mass production/consumption
B) A service provider with a static business environment
C) A service provider that builds long-term relationships with its customers
D) A service provider that relies on routine, simple technology
E) A service provider that specializes in transactional relationships

F) A) and C)
G) C) and D)

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Empowerment is simply giving employees the authority to make decisions on the customer's behalf.

A) True
B) False

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A telephone order taker for a catalog retailer is expected to treat each customer with concern and courtesy and be willing to spend as much time as needed to get the order taken, while not leaving other customers waiting on hold for too long. The telephone order taker is likely to experience _____ tradeoff.


A) Demand/supply
B) Client/organization
C) Customization/standardization
D) Inclination/competency
E) Quality/productivity

F) A) and B)
G) All of the above

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According to the service profit chain:


A) There is a direct relationship between employee satisfaction and customer loyalty
B) Internal marketing is more important than either interactive or external marketing
C) The strategies for internal, external and interactive marketing are equally important
D) Customer loyalty is unrelated to internal marketing
E) Reliability is the most important of all the desired service characteristics

F) C) and D)
G) A) and B)

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A service firm in a particular industry or in a particular location can use which of the following human resource strategies to attract the best people?


A) Become a preferred employer
B) Providing needed outsourcing
C) Using benchmarking
D) Limiting the number of service encounters
E) Designing efficient servicescapes

F) B) and E)
G) None of the above

Correct Answer

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Progressive Insurance looked at insurance from the customers' viewpoint and saw how difficult it was to get an auto claim processed and paid by insurance companies. Then the company crafted its service strategy around solving that problem. The company has fleets of claim adjustors on the road every day, ready to rush to the scene of an accident in their territory and provide fast claims processing-sometimes on the spot. What advice would you give Progressive Insurance if it wanted to expand its market to include China, where there is a rapidly growing middle class?


A) Use the same service model the company uses in the U.S. and success is guaranteed
B) It is impossible because service excellence is not appreciated in other countries
C) Values are the same worldwide so Progressive should have no problem
D) Other than some language differences, Progressive should have no difficulty because its service is based on human interaction
E) The many legal, cultural and language barriers will make it very challenging

F) All of the above
G) C) and E)

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In the services marketing triangle, _____ marketing refers to the service promise being delivered.


A) Internal
B) Interactive
C) Strategic
D) External
E) Integrated

F) A) and E)
G) A) and D)

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Which of the following organizations is NOT suited for using employee empowerment strategies?


A) An organization where the business strategy is one of mass marketing
B) An organization in which managers and employees have high growth and social needs
C) An organization that establishes long-term relationships with its customers
D) An organization that uses non-routine technology to provide its services
E) An organization that operates in an unpredictable environment

F) All of the above
G) B) and E)

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Because Bella Harasian, certified medical doctor, does not like to deal with people, she can be described as having service competencies but not service inclinations.

A) True
B) False

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The nature of many service jobs suggests that customer satisfaction will suffer slightly when employees work as a team.

A) True
B) False

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To be effective and efficient in their jobs, service workers require internal support systems that are aligned with their needs to be customer-focused.

A) True
B) False

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A service provider that has an inappropriate employee evaluation and compensation system will experience provider:


A) Gap 1
B) Gap 2
C) Gap 3
D) Gap 4

E) B) and D)
F) A) and B)

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Cadet Uniform Services, a Canadian company that rents uniforms to major corporations, requires its new delivery drivers to go through a year-long training regimen before they receive their own delivery routes. First, new drivers go through three months of training to learn the whole scope of the business before setting foot in a delivery truck. Then they ride with experienced delivery drivers for nine months to watch how they interact with customers. According to the services marketing triangle, Cadet's training program is a form of _____ marketing.


A) Internal
B) Hierarchical
C) Interactive
D) Integrated
E) External

F) B) and E)
G) B) and D)

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What is the first step in conducting an internal customer service audit?

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Define the...

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Discuss the four sources of conflict for boundary-spanning service workers.

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With person/role conflicts, employees fe...

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A person/role conflict is most likely to arise in jobs where the service provider relies on commissions rather than a salary for his or her income.

A) True
B) False

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