If the length of the downtime increases, the cost incurred decreases.
Answer: FALSE
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Designing and Managing Services
- An oil drilling company ordered a pumpjack for its operations. The pumpjack manufacturing company not only set up the machine but also provided training to the people who needed to use it. It also let the drilling company know that it would be undertaking the maintenance and repair services for the pumpjack. What kind of a service is the manufacturing company providing?
- An oil drilling company ordered a number of pump jacks for its operations. The pumpjack is an essential part of its operations and the company needs the equipment to be operational at all times. How can the pumpjack manufacturer demonstrate its service dependability?
- Package delivery company UPS uses distinctive brown trucks that have become almost an icon. Explain why such physical facilities are important for UPS while it provides package delivery services.
- Josh travels often on business trips. He usually uses the services of the Sunshine Cab Company to take him to the airport and pick him up from the airport. Though the fares are usually higher than those of other private taxi companies, he prefers to use Sunshine cabs because they're always on time and have well-maintained cabs. Which determinant of service quality does this demonstrate?
- A cosmetics store sees to it that customers who walk in are assisted by store personnel. These personnel are trained to ask customers questions, find out what they want, and make suggestions accordingly. Which of the five determinants of service quality is reflected here?
- The last time Betty visited Zing's, the dinner served was excellent. Tonight is her anniversary and she was looking forward to an enjoyable evening. After the meal, she starts feeling that the service was not up to par and the evening was not as successful as she had hoped. According to the service-quality model, which gap is obvious here?
- The advertisement for a pool reads "a vinyl pool from Parker's for just $5000." When David contacted the firm for the pool, the customer service representative tells David that the total cost will be $8000. When David enquires about the extra $3000, the customer service representative says that is for installation. Which service-quality gap does this situation demonstrate?
- In the customer support center where Carl works, employees are taught to make conversation to put customers at their ease. As customers don't like being kept waiting, they must also try to minimize the time that customers spend waiting for service. Thus, when there are a number of customers lined up, Carl usually has to decide whether to answer a customer's questions in detail or move on quickly to the next customer. The firm's standards are not clear on how they want him to perform. When asked, his boss answers, "You make the decision." This is an example of which service-quality gap?
- The manager of a computer service center knows that quick service is the top priority for customers. Accordingly, the employees are encouraged to solve customer difficulties fast, but there is no set time period for service delivery. Which gap could cause unsuccessful service delivery in this situation?
- Clearwater Spa operates on the premise that service quality is the main reason that customers come to the spa, and the attendants are trained to provide excellent service. Despite this, the spa rarely has repeat customers. Clearwater began collecting feedback from customers to find out the reason for this. The management realized that although the customers were happy about the services they did not like the ambience. What kind of a gap is causing the unsuccessful service delivery in this situation?
- Retail chain REB wants to find out how its customers perceive its services and what it can do to improve these. What methods can the company use to discover this?
- Some Western Slope Cleaning customers have long-term contracts for full-service cleaning, while others call the company as and when they require a particular service. The long-term customers have their queries handled by the company's customer service representative. The rest of its customers are directed towards voice messages when they want their inquiries to be processed. What strategy is the company adopting to achieve marketing excellence?
- When Hayley had some problems with the applications on her cell phone, she gave her cell phone to the service center for a software update. The service center returned the phone to Hayley the next day, with the software update complete. Two days later, the service center called Hayley to enquire if the phone was functioning well. Which area of services marketing does this incident illustrate? Why is this important?
- Bryson's is a mid-sized hotel chain that is entering a competitive market. The chain needs to differentiate its service from that of competitors, positioning itself as a hotel chain with excellent service at an affordable price. How can it achieve this using internal marketing?
- Debbie's is a specialty bakery that sees a huge volume of orders during the holiday season. The owner knows that orders triple during the three-month period and the current staff cannot handle the volume. What supply strategy can Debbie's use to handle the demand?
- Fingerpainted organizes art camps and craft activities for children. The company has noticed that demand is highest during summer vacations and drops during the year. What can Fingerpainted do to attract customers at other times of year?
- In developing a service blueprint, The Flower Shop has outlined each step in the delivery process of the service it provides. Which characteristic of services is The Flower Shop attempting to minimize?
- Bryson's is a mid-sized hotel chain that is entering a competitive market. The chain needs to differentiate its service from that of competitors, positioning itself as a hotel with excellent service at an affordable price. However, the intangible nature of services makes this difficult to demonstrate. How can Bryson's convey its message effectively to prospective guests using marketing tool of place?
- Give an example of a pure service provided by a company. Student answers may vary.
- There are five categories of service offerings depending upon whether or not the service component is minor or major. In which of the five categories would you place a haircut?
- Traditionally, customers have had three specific worries about product service. What are they? Manufacturers of equipment—small appliances, office machines, tractors, mainframes, airplanes—all must provide product-support services. The three specific worries about product services that customers face are:
- Based on the service-quality model, researchers have identified five determinants of service quality. List and briefly explain each. The five determinants of service quality are:
- The service-quality model highlights the main requirements for delivering high service quality. Which are the five gaps that cause unsuccessful delivery? The five gaps that cause unsuccessful customer service delivery are as follows:
- List the eight different variables that influence service outcome and customer loyalty. The eight major variables that influence service outcome and customer loyalty are:
- Marketing excellence with services requires excellence in three broad areas. List and explain the three areas. The three areas in which services require excellence are: