Question 1

In the customer support center where Carl works, employees are taught to make conversation to put customers at 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?

Accepted Answer

The answer of In the customer support center where Carl...

Question 2

Out-of-pocket costs are what the customer spends on regular maintenance and repair costs.

Accepted Answer

Out-of-pocket costs are expenses that customers have to pay for maintenance and repair of their products. These costs are not covered by the warranty or insurance and are typically paid directly by the customer.

Question 3

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 ________.

Accepted Answer

The answer of Expensive equipment manufacturers not only install the...

Question 4

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 ________.

Accepted Answer

The statement mentions that Johnson Controls expanded beyond their original business of climate control equipment and components to offer products and services that optimize energy use. This suggests that they are offering services that add value to their customers, which aligns with the definition of value-augmenting services.

Question 5

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

Accepted Answer

The given formula reflects the life-cycle cost of a product, which includes its purchase cost, maintenance and repair cost (discounted), and salvage value (discounted). Therefore, option C, i.e., life-cycle, is the correct choice.

Question 6

A product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value is known as the product's activity cost.

Accepted Answer

The statement describes the formula for calculating a product's life cycle cost, not its activity cost.

Question 7

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.

Accepted Answer

The answer of Package delivery company UPS uses distinctive brown...

Question 8

A cosmetics store sees to it that customers who walk in are assisted by store personnel. 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?

Accepted Answer

The answer of A cosmetics store sees to it that...

Question 9

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?

Accepted Answer

The answer of An oil drilling company ordered a pumpjack...

Question 10

The advertisement for a pool reads "a vinyl pool from Parker's for just $5,000." When David contacted the firm for the pool, the customer service representative tells David that the total cost will be $8,000. When David enquires about the extra $3,000, the customer service representative says that is for installation. Which service-quality gap does this situation demonstrate?

Accepted Answer

The answer of The advertisement for a pool reads "a...

Question 11

The last time Betty visited Zing's, the food 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?

Accepted Answer

The answer of The last time Betty visited Zing's, the...

Question 12

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?

Accepted Answer

The answer of Josh travels often on business trips. He...

Question 13

Regular maintenance and repair costs are known as ________ costs.

Accepted Answer

Regular maintenance and repair costs are expenses incurred by the owner that are not covered by a service contract or warranty. These costs are typically variable and unpredictable, hence they are typically considered out-of-pocket expenses. Fixed costs refer to expenses that remain constant regardless of the level of production or usage, and facilitating services and value-augmentation are not relevant to this context.

Question 14

Traditionally, customers have had three specific worries about product service. What are they?

Accepted Answer

The answer of Traditionally, customers have had three specific worries...

Question 15

Value-augmenting services include installation, staff training, maintenance and repair services, and financing.

Accepted Answer

The answer of Value-augmenting services include installation, staff training, maintenance...

Question 16

If the length of downtime increases, the cost incurred decreases.

Accepted Answer

This statement is incorrect. If the length of downtime increases, the cost incurred usually increases as well. Downtime can result in lost productivity, missed deadlines, customer dissatisfaction, and other negative impacts on a company's bottom line.

Question 17

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

Accepted Answer

The description matches the offering of an extended warranty, which provides free maintenance and repair services for a specified period of time at a specified cost.

Question 18

An oil drilling company ordered a number of pumpjacks 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?

Accepted Answer

The answer of An oil drilling company ordered a number...

Quiz 14: Designing and Managing Services