When sellers agree to provide free maintenance and repair services for a specified period of time at a specified contract price, they are offering ________.

When sellers agree to provide free maintenance and repair services for a specified period of time at a specified contract price, they are offering ________.

A) a complementary service
B) payment equity
C) a service blueprint
D) differential pricing
E) an extended warranty


Answer: E

When Johnson Controls reached beyond its climate control equipment and components business to manage integrated facilities by offering products and services that optimize energy use, it was said to be providing ________.

When Johnson Controls reached beyond its climate control equipment and components business to manage integrated facilities by offering products and services that optimize energy use, it was said to be providing ________.

A) facilitating services
B) a primary service package
C) value-augmenting services
D) service contracts
E) service warranties


Answer: C

Expensive equipment manufacturers not only install the equipment but also train the staff and undertake the maintenance and repair activities of the equipment. By doing so, they are providing ________.

Expensive equipment manufacturers not only install the equipment but also train the staff and undertake the maintenance and repair activities of the equipment. By doing so, they are providing ________.

A) payment equity
B) value-augmenting services
C) differential pricing
D) facilitating services
E) a primary service package


Answer: D

The product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________.

The product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________.

A) service warranty cost
B) out-of-pocket cost
C) life-cycle cost
D) facilitating services cost
E) value-augmentation cost


Answer: C

Regular maintenance and repair costs are known as ________.

Regular maintenance and repair costs are known as ________.

A) service contract costs
B) out-of-pocket costs
C) fixed costs
D) facilitating services costs
E) value-augmentation costs


Answer: B

A ________ refers to any place at which a company seeks to manage a relationship with a customer, whether through people, technology, or some combination of the two.

A ________ refers to any place at which a company seeks to manage a relationship with a customer, whether through people, technology, or some combination of the two.

A) customer-service interface
B) product-customer interface
C) tangible user interface
D) attentive user interface
E) crossing-based interface


Answer: A

When customers calculate the perceived economic benefits of a continuously provided service in relationship to the economic costs, they are gauging the ________.

When customers calculate the perceived economic benefits of a continuously provided service in relationship to the economic costs, they are gauging the ________.

A) private equity
B) brand equity
C) payment equity
D) customer-service equity
E) product-service equity

Answer: C

According to the dynamic process model, two different types of expectations have opposite effects on perceptions of service quality. One of these is that ________.

According to the dynamic process model, two different types of expectations have opposite effects on perceptions of service quality. One of these is that ________.

A) increasing customer expectations of what the firm will deliver improve the perceptions of overall service quality
B) increasing customer expectations of what the firm will deliver decrease the perceptions of overall service quality
C) decreasing customer expectations of what the firm should deliver decrease the perceptions of overall service quality
D) decreasing customer expectations of what the firm will deliver improve the perceptions of overall service quality
E) increasing customer expectations of what the firm should deliver improve the perceptions of overall service quality


Answer: A

The zone of ________ is a range where a service dimension is deemed satisfactory, anchored by the minimum level consumers are willing to accept and the level they believe can and should be delivered.

The zone of ________ is a range where a service dimension is deemed satisfactory, anchored by the minimum level consumers are willing to accept and the level they believe can and should be delivered.

A) immunity
B) tolerance
C) reliability
D) assurance
E) flexibility


Answer: B

Leo's manager has asked him and his teammates to demonstrate caring towards customers. They are instructed to learn the customers' names, and use the customers' names while interacting with them. Repeat customers should get special attention, and the team members should remember their preferences and habits. The manager is asking the team to be ________.

Leo's manager has asked him and his teammates to demonstrate caring towards customers. They are instructed to learn the customers' names, and use the customers' names while interacting with them. Repeat customers should get special attention, and the team members should remember their preferences and habits. The manager is asking the team to be ________.

A) assuring
B) candid
C) empathetic
D) reliable
E) responsive


Answer: C

Josh gets his bike serviced at Dean's Garage even though there's another garage much closer to home. He prefers Dean's because the work is usually done quickly and the staff try to solve the issues with the bike as soon as possible. Dean's Garage excels at which of the following five determinants of service quality?

Josh gets his bike serviced at Dean's Garage even though there's another garage much closer to home. He prefers Dean's because the work is usually done quickly and the staff try to solve the issues with the bike as soon as possible. Dean's Garage excels at which of the following five determinants of service quality?

A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles


Answer: B

The customer service representatives at G.K.'s customer service center must know as much about the products as possible, so that they can help the customers solve their difficulties without sounding hesitant or unsure of themselves. Which of the following determinants of service quality are they being asked to demonstrate?

The customer service representatives at G.K.'s customer service center must know as much about the products as possible, so that they can help the customers solve their difficulties without sounding hesitant or unsure of themselves. Which of the following determinants of service quality are they being asked to demonstrate?

A) responsiveness
B) assurance
C) empathy
D) reliability
E) tangibility


Answer: B

The most important determinant of service quality is ________ which refers to the ability to perform the promised service dependably and accurately.

The most important determinant of service quality is ________ which refers to the ability to perform the promised service dependably and accurately.

A) empathy
B) assurance
C) responsiveness
D) reliability
E) tangibles


Answer: D

When Aaron went to his doctor for his annual checkup, he was asked to undergo a number of tests. Although the doctor assured Aaron that the tests were routine, Aaron thinks that the doctor is hiding a grave problem from him. What kind of a gap is apparent here?

When Aaron went to his doctor for his annual checkup, he was asked to undergo a number of tests. Although the doctor assured Aaron that the tests were routine, Aaron thinks that the doctor is hiding a grave problem from him. What kind of a gap is apparent here?

A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception


Answer: A

Which of the following is an example of a gap between service delivery and external communications?

Which of the following is an example of a gap between service delivery and external communications?

A) The employees at GBL have been asked to take time to listen to customers, but they must serve them fast as well.
B) Amanda chose to shop at Alison's Fashions because the store's website offered on-the-spot alterations. However, when she did buy a dress, she had to wait a week to get it altered.
C) Customers at LUX appreciate the personalized services the salespeople offer, but do not like the store design.
D) Clearwater Spa attendants are well-trained in massage therapy and the services they offer, but customers rarely return because they don't like the attendants' impersonal service.
E) When sales dropped, Styx modernized its stores in order to retain customers, but didn't realize that the product quality was the main problem.


Answer: B

The customer service representatives at a call center have been asked to handle each call in not more than five minutes. At the same time, they have been asked to answer all customer queries in detail and provide appropriate solutions. What kind of service gap is apparent here?

The customer service representatives at a call center have been asked to handle each call in not more than five minutes. At the same time, they have been asked to answer all customer queries in detail and provide appropriate solutions. What kind of service gap is apparent here?

A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception


Answer: C

The customer service representatives at a call center have been asked to handle each call in not more than five minutes. A recent customer survey by the company revealed that customers appreciate it when employees take the time to answer their questions fully and listen to their grievances. What kind of service gap is apparent here?

The customer service representatives at a call center have been asked to handle each call in not more than five minutes. A recent customer survey by the company revealed that customers appreciate it when employees take the time to answer their questions fully and listen to their grievances. What kind of service gap is apparent here?

A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception


Answer: D

MGC Inc. organizes a company-wide picnic once a year. The organizers arranged for the best possible menu thinking that food would be a priority, but the staff were disappointed because the activities were very poorly planned. What kind of a gap is apparent here?

MGC Inc. organizes a company-wide picnic once a year. The organizers arranged for the best possible menu thinking that food would be a priority, but the staff were disappointed because the activities were very poorly planned. What kind of a gap is apparent here?

A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception


Answer: E

Dean recently had a BRZ broadband connection installed. However, the connection was bad and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. Dean switched to Blue Broadband. Which of the following was the cause of Dean's switching behavior?

Dean recently had a BRZ broadband connection installed. However, the connection was bad and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. Dean switched to Blue Broadband. Which of the following was the cause of Dean's switching behavior?

A) involuntary switching
B) competition
C) response to service failure
D) service encounter failures
E) inconvenience


Answer: C

Angela switched to a new hair stylist after getting a bad haircut from her previous stylist. This is an example of which of the following factors leading to customer switching behavior?

Angela switched to a new hair stylist after getting a bad haircut from her previous stylist. This is an example of which of the following factors leading to customer switching behavior?

A) service encounter failure
B) core service failure
C) response to service failure
D) involuntary switching
E) competition


Answer: B