Chapter 2 Consumer Behavior in a Services Context

GENERAL CONTENT Multiple Choice Questions 1. The prepurchase stage begins with ____________. a. perceived risk b. formation of expectations c. moments of truth d. evoked set e. need arousal (e; Moderate; p. 3 ! ". Tangible characteristics that customers can evaluate prior to purchase are termed ____________. a. search attributes b. experience attributes c. credence attributes d. satisfaction attributes e. capital attributes (a; Moderate; p. #$! 3. %eliabilit&' ease of use' and customer support are considered ____________. a. search attributes b. experience attributes c. credence attributes d. satisfaction attributes e. capital attributes (b; Moderate; p. #1! #. (haracteristics that customers find hard to evaluate even after consumption are termed ____________. a. search attributes b. experience attributes c. credence attributes d. satisfaction attributes e. capital attributes (c; Moderate; p. #"!

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/. 0hich of the following is 12T a t&pe of perceived risk in purchasing and using services3 a. 4unctional b. *ermanent c. 4inancial d. *h&sical e. 5ocial (b; Moderate; p. #3! 6. 0hich of the following is 12T a model for evaluating consumers7 behavior during the service encounter experience3 a. Moments of Truth b. -igh89ow contact service c. 5ervuction 5&stem d. Theater Metaphor e. :one of Tolerance (e; +as&; p. #;! <. The term ___________ describes that part of the service organi=ation7s ph&sical environment that is visible to and experienced b& the customers. a. Moments of Truth b. -igh89ow contact service c. 5ervuction 5&stem d. Theater Metaphor e. :one of Tolerance (c; Moderate; p. /$! ;. The service deliver& s&stem is composed of a. ,nanimate environment b. (ontact personnel c. 2ther customers d. 4ront stage e. >ll of the above (e; Moderate; /1! . _______________ confirmation is when the service provided was better than expected. a. 1egative b. 1eutral c. *ositive d. *otential e. ?nexpected (c; +as&; p. /#!

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1$. (ustomer delight is a function of three components@ ______________' ______________' and _______________. a. 9ow levels of arousal' personalit&' high levels of reactance b. -igh levels of performance' arousal' positive affect. c. 9ow levels of determination' conspicuous consumption' high levels of arousal d. -igh levels of conspicuous consumption' reactance' satisfaction e. -igh levels of reactance' central processing' low levels of arousal (b@ Moderate; p. /6! True !alse 11. +vidence management is a somewhat disorgani=ed approach to presenting customers with coherent evidence of a firm7s abilities' like emplo&ee dress and furnishings. (4alse; Moderate; p. ##! 1". (ustomers that have no relevant prior experience with a firm ma& base pre.purchase expectations on word.of.mouth comments' news stories' or the firm7s own marketing efforts. (True; +as&; p. #/! 13. Aesired service is the minimum level of service customers will accept without being dissatisfied. (4alse; +as&; p. #6! 1#. The =one of tolerance is the extent to which customers are willing to accept variation in service deliver&. (True@ +as&; p. #<! 1/. > service encounter is a period of time during which &ou' as a customer' interact with a service provider. (True; +as&; p. #;! 16. The goal of relationship marketing is to gain additional customers. (4alse; Moderate; p. #;! 1<. -igh.contact encounters between customers and service organi=ations differ sharpl& from low.contact encounters. (True; Moderate; p. # ! 1;. Man& high.contact and medium.contact services are transforming into low.contact services as customers undertake more self.service. (True; Moderate; p. /$! 1 . The technical core t&picall& is in the back.stage and is visible to the customer. (4alse; +as&; p. /1!

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"$. Man& service dramas are loosel& scripted' which reduces variabilit& and ensures uniform Bualit&. (4alse; Moderate; p. /3! Short Ans"er "1. 5ervice consumption can be divided into what three principal stages3 *repurchase' service encounter' and post.encounter. (+as&; p. 3;! "". Cive an example of how consumers ma& reduce perceived risk. 5eeking information from respected personal sources (rel&ing on a firm that has a good reputation' looking for guarantees and warranties' visiting facilities' asking knowledgeable emplo&ees' examining tangible cues' or using the 0eb to compare offerings!. (Moderate; p. #3! "3. Cive an example of a social risk involved in using a service. 0hat will m& friends think of me if the& learned , used this service3 (+as&; p. #3! "#. Aefine Dhigh.contact service.E > high contact service entails interaction throughout the service deliver& process between customers and the organi=ation. (+as&; p. # ! "/. 0hat is the service deliver& s&stem3 ,t is the visible part of service operations s&stem (buildings' eBuipment' personnel! and ma& also include other customers. (Moderate; p. /1!

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Essa# "6. Aescribe what is meant b& adeBuate service' predicted service' and =one of tolerance. >deBuate service is the minimum level of service a customer will accept without dissatisfaction. *redicted service is the level of service that the customer actuall& anticipates the firm will provide. The =one of tolerance is the extent of variation of service customers are willing to accept. >deBuate service falls at the bottom of the =one of tolerance' whereas predicted service is likel& in the middle of the =one of tolerance. (Moderate; p. #6! "<. Aescribe the servuction s&stem for a high.contact service like an upscale restaurant. The servuction s&stem includes a technical core (food preparation! and a service deliver& s&stem (ph&sical environment and wait staff!. ,n a restaurant' this would consist' in part' of the kitchen and cooks at its technical core that would be backstage. The interior and exterior of the facilit&' visible eBuipment' and wait staff are also part of the servuction s&stem' but are visible to the customer. 2ther customers who would also patroni=e the restaurant at the same time might also have an impact on customer perceptions. 4inall&' other contact points that ma& impact the consumer include television commercials' word.of.mouth from friends' and driving b& the exterior of the facilit&. ((hallenging; p. /$./1! A$$L%CAT%ON CONTENT Multiple Choice Questions ";. To develop effective marketing strategies' marketers must understand how people make decisions about bu&ing and using service and ____________. a.how the& evaluate competitors b.what determines their satisfaction with it after consumption c.how often the& utili=e competitors d.how often the& complain to the service firm e.the length of their relationship with the service firm (b; (hallenging; p. 3;! " . Aeveloped nations are seeing increased spending on which of the following services at the expense of ph&sical goods3 a.+xtreme sports b.4inancial advising c.?rban planning d.Medical e.(onsulting (a; Moderate; p. 3 ! "./ )"$11 *earson +ducation' ,nc. publishing as *rentice -all

3$. *rofessionals such as doctors and law&ers displa& their degrees and certifications because ____________. a.the& want to build personal relationships with their clientele and generate a moment of truth. b.the& want customers to DseeE their credentials that Bualif& them to provide the service. c.the& want to provide detailed information about their core values. d.the& want to provide a visual example of their prowess and enhance experiential attributes. e.These items act as an advertisement that highlights important aspects of their compan&. (b; Moderate; p. ##! 31. Fan (arl=on' the former (+2 of 5candinavian >irlines 5&stem' used the ____________ metaphor as a reference point for transforming the airline into a customer.driven business. a. service.perspective b. comparative.anal&sis c. s&stems.of.exchange d. moment.of.truth e. great.wall (d; Moderate; p. #;! 3". Aental customers ____________ to avoid dela&s and ensure effective use of dental professionals7 time. a.sit Buietl& in the waiting room b.commit positive word.of.mouth c.confirm and honor appointments d.should get to know h&gienists e.provide accurate histories (c; +as&; p. /3! True !alse 33. *rogressive >uto reduces its costs primaril& through a shortened response time' which decreases the likelihood of legal involvement. (True; Moderate; p. /<! 3#. >29 uses free trials to create more search attributes to assist prospective customers. (True; +as&; p. ##! 3/. >irlines are considered a low.contact service when compared to auto repair. (4alse; Moderate; p. /$!

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36. > dental h&gienist confirming needs and setting appointment dates with patients is part of the service script for teeth cleaning. (4alse; Moderate; p. /#! 3<. Aespite the ease of information accessibilit& via the ,nternet' patients and parents of patients tend not to seek additional information prior to consulting with doctors. The& simpl& trust that the doctor is alwa&s right. (True; +as&; p. #/! Short Ans"er 3;. -igh.contact services differ greatl& from low.contact services. Cive two examples of each. -igh.contact service. nursing home' four.star hotel 9ow.contact service. online banking' cable tv (Moderate' p. /$! 3 . Cive an example of a service7s search attribute. %estaurantGrestaurant positioning (t&pe of food' location' parking availabilit&!. (+as&; p. #$! #$. Cive an example of a restaurant7s credence attribute. Hitchen h&giene. (Moderate; p. #"! #1. 0hat t&pes of risks might be inherent in making an online textbook purchase3 4inancialGextra fees or failure to receive the book. *h&sicalGbook shows up damaged. TemporalGbook does not show up before class starts. 4unctionalGbook does not help the student pass the class. (Moderate; p. #3! #". 0hat t&pe of risk reduction strateg& would &ou suggest a golf course emplo& to reduce customer fears about rain cancellations3 *rovide rain checks that allow consumers to continue pla& at a later date. (+as&; p. #3!

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Essa# #3. Aescribe how the three.stage model of service consumption could explain consumer behavior in a low.contact service like investing. The three.stage model of service consumption begins with the prepurchase stage where consumers become aware of a need. >lso in this stage is information search' where needs are clarified' possibl& through surfing the 0eb and making phone calls. ,n the case of an investing service this might involve reading the 0eb site information for various 0eb sites like eTrades or 5chwab. +valuating alternatives is also in this stage. ,n the investment scenario this might involve more 0eb site anal&sis' phone calls and e.mail with account representatives. The second stage is the service encounter stage. -ere' service is reBuested from the supplier' in this case via e.mail or 0eb site transaction. The final stage is the post.encounter stage. -ere the investor determines how well the firm performed over a period of time and makes a determination about future transactions with the firm. ((hallenging; p. 3;! ##. Aescribe how a firm like >29 can reduce customer perceptions of risk3 >29 can create more search attributes b& offering free trials. The ,nternet provider offers potential customers free service for a limited time. This allows consumers to utili=e the service without cost with the hope that consumers will be hooked on the service b& the end of the free trial period. (Moderate; p. ##! #/. -ow can advertising help reduce customer risk perceptions of a service firm like a credit card3 >dvertising helps customers visuali=e service benefits. The onl& tangible thing a credit card consumer receives is a plastic card. The advertisements therefore tend to highlight intangible aspects of the card. >dvertisements ma& show exciting products and vacations that can be bought with the card. More tangible components like low interest rates or fees are also advertised to highlight service performance outcomes. (Moderate; p. ##!

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