SVM101-B1 QUIZ #2 ANSWER KEY August 1, 2017

I. TRUE or FALSE (2 pts. each) RIGHT MINUS WRONG (no answer, no deduction): Write TRUE if
statement is correct. If the statement is wrong, write FALSE plus the correct word/phrase
opposite the word/phrase that makes the statement incorrect (a FALSE answer only without
the correct word is considered wrong).
1. Service bookends are critical. First impressions are lasting impressions. Last impressions are
memories for next time. T
2. The repeat customer is more profitable than the loyal customer. F “initial”
3. Greater risk is perceived in purchasing products than services. F “products  services”
4. Customers are more loyal to service providers than to manufacturers. T
5. A moment of truth is satisfying a previously dissatisfied customer and making them a loyal
customer. F “service recovery”
6. Quality assurance is the ability of a product or service to consistently meet or exceed
customer expectations. F “quality”
7. The two classifications of service errors are customer errors and process errors. F “server”
8. Penalties of poor service quality include loss of business, liability risks, productivity
decreases, and costs increases. T
9. Customer loyalty is only due to the lack of an inferior alternative. F “better”
10. Substitute service allows rival firm to provide service but could lead to loss of customer. T
11. Service recovery is willingness to help customers promptly. F “responsiveness”
12. Taking legal action is an example of a private action in expressing service dissatisfaction. F
“public”
13. Giving customers some extra value will satisfy them by exceeding their expectations and
insure their return. F “delight”
14. Reliability is the ability to perform promised service dependably and accurately. T
15. Systematic response, an approach to service recovery, attempts to fix problem before the
customer is affected. F “early intervention”
16. A service guarantee is resolving the complaint by fixing the cause of the failure so it is not
repeated and subsequently communicating actual service recovery action to the customer.
F “closure”
17. The service blueprint focuses on the customer and provider interaction. T
18. Empathy is the ability to convey trust and confidence. F “Assurance”
19. Conditional service guarantees can be very expensive to provider unless sure that the
service is quality. F “unconditional”
20. Case-by-case service recovery approach uses a protocol to handle complaints but needs
prior identification of critical failure points and continuous updating. F “systematic
response”

II. FILL IN THE BLANKS: (20 pts.) Write the answer beside each number.
1. Customer satisfaction can be measured as the difference between the customer’s service
expectation and the service actually received.
2. One of the quality service attributes, access, concerns approachability and ease of contact.
3. In the design of a service system, the two types of systems elements are structural and
managerial.
 4. Technical quality is concerned with the outcome of the delivered product or service while
functional quality has more to do with how the former is transferred to the consumer.
5. Reliability refers to ability to provide services promised dependably and accurately.
6. The two (2) classification of service failures are server errors and customer errors.
7. Quality is a measure between service perceptions as well as expectations.
8. For services, the assessment of quality is made during the service delivery process.
9. Perceived service quality is influenced by word of mouth, personal needs, and past
experience.
10. A challenge presented in assessing service quality arises when viewing services along a
continuum ranging from pre-sale to post-sale activities.
11. Responsiveness concerns the willingness or readiness of employees to provide prompt
service.
12. Case-by-case approach to service recovery addresses each customer’s complaint
individually but could lead to perception of unfairness.
13. One of the service levels, desired service, can be described as, “What you want is what you
get.”
14. With services, however, consumers are usually limited to using credence quality to
evaluate the experience, relying solely on the overall credibility of the service provider
15. In the ServQual model, the difference between service specifications and the service
delivery is called implementation gap.
16. Letters of apology, replacement product and complimentary service are examples of
service recovery actions.
17. Soft measures of service quality are not easily observed, must be collected by talking to
customers, employees, or others.
18. Returns on service quality include retaining customers as defensive effect.
19. One of the approaches to service recovery, systematic response, uses a protocol to handle
complaints but needs prior identification of critical failure points and continuous updating.
Consistent and timely.
20. Service standardization employs the production line approach in service operations
management.

III. MATCHING TYPE: (20 pts.) Write the letter of the best answer.

F 1. competence A. willingness/readiness to provide prompt service

X 2. service blueprint B. trustworthy, believable, honest
E 3. assurance C. used to operationalize the gaps influencing customer perceptions
H 4. service differentiation D. discrepancy between customers’ expected service and perceived
service
S 5. credence quality E. ability to convey trust and confidence.
K 6. access F. possess knowledge and skill to perform the service
D 7. reality gap G. Failure to deliver at or above the expected level for a competitive
dimension
C 8. SERVQUAL H. being unique in brand image, technology use, features, or reputation
for customer service
L 9. tangibles I. knowing customer’s needs
Z 10. service winner J. discrepancy between service delivery and expectations of customers
formed through advertising etc.
A 11. responsiveness K. approachability and ease of contact of service personnel
Y 12. unconditional guarantees L. physical facilities and facilitating goods
B 13. credibility M. a certain level on the competitive dimension that must be attained
to be considered in the customer’s buying decision.
 G 14. service loser N. shows a relationship between quality, market share, and return on
investment
Q 15. reliability O. restricting the offerings as in limited-menu restaurants
M 16. service qualifier P. management doesn’t understand customer expectations
O 17. focus Q. performing the right service right the first time
V 18. separation R. inspection process to identify fail points before setting guarantees
J 19. communications gap S. used to evaluate the experience, relying solely on the overall
credibility of the service provider
W 20. courtesy T. Quality is often judged in relation to price.
U. can be counted, timed, or measured through audits
V. service improvement technique that structures the service so
customers must go where service is offered.
W. politeness, consideration, and friendliness of service personnel
X. identifies potential failure points
Y. no questions asked
Z. the competitive dimension used to make the final choice among
competitors

IV. SHORT ESSAY: Answer in a clear & concise manner.

1. Explain each of the 5 dimensions of service quality. By providing only one (1) example of a
service firm in an industry of your choice, describe how each of these dimensions is
addressed. (15 pts.)

Reliability: Perform promised service dependably and accurately. Example: receive mail at
same time each day.
Responsiveness: Willingness to help customers promptly. Example: avoid keeping
customers waiting for no apparent reason.
Assurance: Ability to convey trust and confidence. Example: being polite and showing
respect for customer.
Empathy: Ability to be approachable. Example: being a good listener.
Tangibles: Physical facilities and facilitating goods. Example: cleanliness.

2. Draw the framework of the Gaps Model of Service Quality and explain each of the gaps.
(15 pts.)

 Gap 1. Not knowing what customers expect.

  Differences between what customers want and what managers think customers
want.
 Lack or insufficient market research.
 Lack or insufficient interaction between customer and management.
 Gap 2. The wrong service quality standards.
 Differences between what managers think customers want and the service they
designed and delivered.
 According to the actual specifications they established for service delivery.
 Inadequate commitment to quality.
 Inadequate standardization.
 inadequate conformance to standards.
 Gap 3. Service performance gap.
 Differences between service specifications and the actual service delivered.
 Created when employees are unable and/or unwilling to perform service at the
desired level.
 Role ambiguity and conflict.
 Misfit between employee and/or technology and the job.
 Wrong person pr wrong tools for the job.
 Disincentives and lack of motivation.
 Gap 4. When promises do not match delivery.
 Differences between promised service and the service actually delivered.
 Lack of communication between all parties.
 Exaggeration of claimed performance.
 Gap 5. Expected vs. perceived service.
 Differences between what a customer expected and what he thinks he got.
 Depends on subjectivity of customer.
 Most important gap.
 If perception falls below expectation, the customer is disappointed and
dissatisfied.
 If perception exceeds expectation, the customer is not only satisfied but is
delighted.

3. Differentiate how service qualifier, service winner and service loser influence the service
purchase decision of a customer. Use only one service-provider company as an example.
(15 pts.)

 Service Qualifier: To be taken seriously a certain level must be attained on the competitive
dimension, as defined by other market players. Examples are cleanliness for a fast food
restaurant or safe aircraft for an airline.
 Service Winner: The competitive dimension used to make the final choice among
competitors. Example is price.
 Service Loser: Failure to deliver at or above the expected level for a competitive
dimension. Examples are failure to repair auto (dependability), rude treatment
(personalization) or late delivery of package (speed).
 4. Discuss in detail the three (3) competitive service strategies and their
advantages/benefits. Also, illustrate each with an example or service provider and explain
how the strategy works. (15 pts.)
 Overall Cost Leadership
 Seeking Out Low-cost Customers
 Standardizing a Custom Service
 Reducing the Personal Element in Service Delivery
 Reducing Network Costs
 Taking Service Operations Off-line
 Differentiation: being unique in brand image, technology use, features, or reputation for
customer service.
 Making the Intangible Tangible
 Customizing the Standard Product
 Reducing Perceived Risk
 Giving Attention to Personnel Training
 Controlling Quality
 Focus: concentrating on subseqments; also called niche strategy
 Buyer Group: (e.g. USAA insurance and military officers)
 Service Offered: (e.g. Shouldice Hospital and hernia patients)
 Geographic Region: (e.g. Austin Cable Vision and TV watchers)