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WorksheetsTutorial SBSF3053_2025_Chapter 6_9
Total questions: 100
Worksheet time: 50mins
Which of the following is NOT an example of price complication?
Fluctuating air fare
Commissions
Expressway toll
Listed price
Which of the following is NOT an objective for service pricing?
Build supply.
Build demand.
Seek profit.
Cover costs.
Build a user base.
__________ recognizes that resource expenses are linked to the variety and complexity of goods and services produced and not just on physical volume.
Break-even analysis
Variable cost
Fixed cost
Activity-based costing
Semi-fixed cost
__________ is defined as the sum of all the perceived benefits minus the sum of all the perceived costs of service.
Net value
Consumer surplus
Gross value
Moderate value
Consumer demand
Variable costs include all but which of the following?
Labour Cost
Fuel Cost
Repairs costs
Salaries
Filling in an account opening form that requires lot of detailed information is a form of __________.
psychological cost
physical cost
sensory cost
time cost
Revenue management is the most effective when applied to firms characterized by all the following conditions EXCEPT ____________.
perishable inventory
relatively fixed capacity
varying customer price sensitivity
fixed inventory
variable demand
Price elasticity is computed as __________.
percentage change in demand / percentage change in price
percentage change in price / percentage change in demand
percentage change in supply / percentage change in price
percentage change in demand / percentage change in supply
percentage change in price / percentage change in supply
Which of the following is NOT an example of a non-physical fence?
Time or duration of use.
Group membership.
Service level.
Flexibility of ticket usage.
Location of reservation.
Revenue management practices that help build customers’ fairness perceptions include __________.
designing clear and logical prices
using high publishes prices
frame fences as discounts
“hiding” discounts through bundling
All of the above
The pricing tripod consists of costs, competition and volume.
True
False
Customers will often pay more for services than they think they are worth.
True
False
In credence services, the customers do not have the skills or knowledge to assess value.
True
False
To make a profit, a firm must set its price low enough to attract customers.
True
False
Customers often incur significant financial costs in searching for, purchasing, and using a service, above and beyond the purchase price paid to the supplier.
True
False
Break-even analysis allows managers to know the sales volume at which service will become profitable.
True
False
Psychological costs relate to unpleasant sensations affecting any of the five senses.
True
False
Firms do not need to consider post-purchase costs, as they occur after the firm has already secured a purchase.
True
False
Firms that are always reacting to competitors’ price changes run the risk of pricing higher than might really be necessary.
True
False
Revenue management involves setting prices according to predicted demand levels among different market segments.
True
False
EasyJet needs the following to justify its low prices and to break even:
High load factor
Higher sales
Higher physical costs
Only a & b
All of the above
The amount of seats reserved for each class of American Airlines passengers on a flight is referred to as a __________.
field
row
column
bucket
gamble
Which of the following is the best example of a service industry that utilizes price complexity?
Fast food
Education
Cellular phone
Moving/transportation
Roofing
Which of the following is the best example of a service firm that attracts customers with low base prices and then piles on additional fees.
Rental cars
Fast food
Education
Roofing
Consulting
What different forms of payment methods are can customer use other than cash?
Credit or debit card
App-based payment
Touch ID
All of the above
Airlines, hotels, and car rental firms are not very good at varying prices in response to the price sensitivity and needs of different market segments.
True
False
Yield management computers can determine who is likely to not show up or take other flights.
True
False
Amazon.com is a good example of a firm that aggravated its customers with dynamic pricing.
True
False
Tickets.com is a good example of a firm that successfully generated more revenue by implementing dynamic pricing.
True
False
Freight companies often use a combination of distance and weight or shape of parcel as a basis to price their services.
True
False
An effective communication strategy does NOT consider which of the following?
Prospective buyer
Consumer’s media habits
Employee preference
Content, structure and style of message
Which of the following is not a communication objective?
Position the brand
Manage customer search
Manage customer satisfaction
Manage communication channels
In order to manage service encounter, services communication tries to ____________.
build awareness
manage customer satisfaction
develop liking
familiarize customers with the service process in advance
Which of the following is not a role played by service marketing communications?
Add value through communication content.
Facilitate customer involvement in service production.
Positioning to attract investors.
Stimulate or dampen demand to match capacity.
Position and differentiate the service.
Problems of intangibility include which of the following?
Clutter
Creative
Non-searchability
Message design
Direct marketing is a form of ____________.
personal channel
non-personal channel
mass media
Above the line
Which of the following does NOT represent sales promotion considerations?
Focus on permission-based marketing
Provide an incentive for purchase
Time specificity
Customer group focus
A sticky site is
slow to download
not updated frequently
high in quality content
Only a & b.
Service delivery channels include ____________.
Service outlets
Self-service delivery points
Front-line employees
All of the above
Corporate design includes ____________.
trademarked symbols
tangible, recognizable symbols
corporate colors
All of the above
Communication objectives are "what" decisions while "where" and "how" are tactical decisions.
True
False
One of the challenges in service communication is problem of intangibility.
True
False
The AIDA model moves from cognitive to affective to behavioural responses.
True
False
Non-personal mass media tend to be effective in creating awareness and positioning the service.
True
False
Communication in the servicescape can be used to manage consumer behavior during service encounter.
True
False
Subjective claims in service marketing can be presented through a testimonial.
True
False
Corporate communication is essential to ensure that a consistent style and message is communicated through all the channels.
True
False
Corporate design ties together and reinforces all communications to deliver strong brand identity.
True
False
The timing of communication is typically managed with the help of a media plan.
True
False
Blogs and other online media can be seen as lying in between WOM and online media.
True
False
__________ uses the metaphor of a strong commitment to appeal to their customers.
Prudential
Allstate
Accenture
MasterCard
Merrill Lynch
Fedex’s Panda One is built on ____________.
direct marketing
advertising
personal selling
sales promotion
public relations
SAS International Hotels devised which of the following sales promotions targeted at older consumers?
First to provide senior citizen discounts.
Provided a discount percent equivalent to their age.
A free hotel room if large family gatherings were held at the hotel.
Free ballroom service for large family gatherings.
Discount for large family gatherings.
__________ refers to a group of technologies for distributing audio or video programs over the Internet using a publisher/subscriber method.
Podcasting
Webcasting
Websiting
Webenabling
Webscribing
__________ technology facilitates the rise of user-generated content.
Podcasting
Narrowcasting
TiVo
YouTube
Web 2.0
EBay Social Shopping uses product recommendations from blogs to help people make decisions about Christmas presents.
True
False
Communication can be used to manage customers only at the pre-stage.
True
False
Advertising serves to build awareness, inform, persuade, and remind.
True
False
DHL gained significant favorable publicity when it safely transported two giant pandas from Chengdu, China to the National Zoo in Washington, D.C.
True
False
EasyJet built a very successful model based on banner advertising.
True
False
Blueprinting is a more complex form of ____________.
linear graphing
flow charting
Cox & Snell analysis
non-linear graphing
cluster analysis
The first step in developing a service blueprint is ____________.
to reach a consensus on which activities are more important than others
to identify all the key activities involved in creating and delivering the service
to identify the links between a set of alternative service possibilities
to identify the key employees who will be enacting the service blueprint
to identify the key customers who will be participating in the service
Service blueprints ____________, and how these are supported by backstage activities and systems.
enhance servicescape features such as furniture and lighting
complicate employee handling of special requests
clarify the interactions between customers and employees
enhance customer technical know-how
diminish customer complaining capacity
The line of __________ divides front-stage activities from backstage activities.
service standards and scripts
physical evidence
internal physical interaction
internal IT interaction
visibility
Which of the following is NOT a key component of a service blueprint?
Line of transference
Line of interaction
Line of visibility
Backstage actions by customer contact personnel
Front-stage actions by customer contact personnel
Server _________ ensure that service staffs do things correctly, as requested, in the right order, and at the right speed.
kanbans
poka-yokes
jidokas
banzais
sodokus
Service process redesign efforts typically focus on achieving all EXCEPT which of the following key performance measures?
Reduced number of service failures.
Reduced cycle time.
Enhanced productivity.
Increased profitability.
Increased customer satisfaction.
Service process redesign can be categorized into all EXCEPT which of the following types?
Getting rid of non-value adding steps.
Shifting to self-service.
Delivering direct service.
Separating services.
Redesigning the physical aspect of service processes.
Redesign efforts should ideally achieve all of the following but ONE.
Reduced number of service failures
Creation of blueprints
Reduced cycle time
Enhanced productivity
Increased customer satisfaction
Which of the following is NOT an advantage of self-service technologies?
Greater choice of products
Higher perceived level of customization.
Convenience of location.
Greater control over service delivery.
Cost and time savings.
A blueprint specifies in some detail how a service process should be constructed.
True
False
A key characteristic of service blueprinting is that it makes little or no distinction between what customers experience front-stage and the activities of employees and support processes backstage.
True
False
A drawback of service blueprints is that they cannot give managers the opportunity to identify potential fail points in the process where there is a significant risk of things going wrong and diminishing service quality.
True
False
Blueprints can pinpoint the stages in the process where customers commonly have to wait.
True
False
Part of the challenge of implementing poka-yokes in service contexts is the need to address not only server errors, but also customer errors.
True
False
Service staff poka-yokes usually focus on preparing the customer for the encounter, understanding and anticipating their role in the service transaction, and selecting the correct service or transaction.
True
False
Service process redesign encompasses reconstitution, rearrangement, or substitution of service processes.
True
False
Customer participation refers to the actions and resources supplied by customers during the service production and/or delivery process, including all but emotional inputs.
True
False
A key problem with self-service technologies is that so few of them incorporate service recovery systems.
True
False
Self-service technologies are only better than the interpersonal alternative if they save time, provide ease of access, cost savings, or some other benefits.
True
False
How many acts does a meal at Chez Jean consist of?
One act
Two acts
Three acts
Four acts
Five acts
Banks ensure eye contact by requiring tellers to record ________ on a checklist at the start of a transaction.
the customer’s eye color
the customer’s bank account number
the customer’s shirt size
the customer’s account type
the customer’s nationality
Examples of preparing customers for service encounters include all of the following EXCEPT ________.
printing dress code requests on invitations
sending reminders of dental appointments
printing guidelines on customer cards
billing customers for services rendered
all of the above are examples of preparing customers for service encounters
Marriage counseling is a service that requires a ________ level of participation from customers.
minimal
high
moderate
low
absolute
The internet kiosk with a touchscreen in Vienna, Austria is getting popular for the following reasons EXCEPT ________.
it is conveniently located
it saves customers from having to deal with other undesirable customers
it is accessible 24/7
it doesn’t make mistakes, unlike employees
it has easy access to websites
Restaurants are often quite theatrical in their use of physical evidence (such as furnishing, décor, uniforms, lighting, and table settings).
True
False
Risk of excessive wait points in a restaurant service blueprint provided in the chapter occur mainly in the backstage processes.
True
False
Failure points in the restaurant service blueprint provided in the chapter only occur in the backstage processes.
True
False
Poka-yokes originated from Total Quality Management methods in manufacturing.
True
False
A good example of a service poka-yoke is a surgeon whose surgical instrument trays have indentations for each instrument.
True
False
Which of the following is NOT one of the conditions that fixed-capacity firms may face?
Excess capacity
Demand exceeds desired capacity
Demand and supply are well-balanced
Ideal demand exceeds capacity
Excess demand
Which of the following is NOT one of the productive capacity forms in a service context?
Physical facilities designed to contain customers
Physical equipment used to process people, possessions, or information
Customers
Labor
Infrastructure
Which of the following is the correct action for a firm to take that wants to reduce demand and has insufficient capacity?
Take no action.
Consider override for most desirable segments.
Consider priority systems for most desirable segments.
Increase prices or encourage use in other time slots.
Lower prices selectively.
Which of the following is NOT one of the ways to change the overall level of capacity to match demand variations?
Use part-time employees.
Ask customers to share.
Invite customers to perform self-service.
Cross-train employees.
Share facilities with the supplier.
All of the following are questions to ask about demand patterns and their underlying causes EXCEPT ________.
Do demand levels follow a predictable cycle?
What are the underlying causes of these cyclical variations?
How much demand are competitors receiving?
Do demand levels seem to change randomly?
Can demand for a particular service over time be disaggregated by market segment?
Which of the following is NOT one of the five basic approaches to managing demand?
Taking no action and leaving demand to find its own levels.
Reduce demand in peak periods.
Increase demand when there is excess capacity.
Inventory capacity until demand increases.
Inventory demand by creating a formalized queuing system.
Marketing strategies can be used to shape demand in all ways EXCEPT ________.
modify mode of delivery
use price and other cost to manage demand
change product elements
modify time and place of delivery
use promotion and education
All of the following are ways to make waits more bearable EXCEPT ________.
encourage group waits
keep customers occupied while waiting
make customers feel comfortable during waits
let customers know how long they are expected to wait
provide the customers with no explanation for the wait
Which of the following is NOT one of the alternative queuing configurations discussed?
Single line/single servers at sequential stages
Multiple line to single servers (snake)
Parallel lines to multiple servers
Designated lines to designated servers
Take a Number (single or multiple servers)
Which of the following is NOT one of the benefits of having a reservations system?
Helps service personnel to serve more effectively.
Helps in pre-selling the service.
Helps customers to avoid queuing.
Helps firms to keep some time aside for emergency jobs.
Allows demand to be controlled.
