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Chapter 05 - Listening to Customers through Research

Services Marketing 6th Edition


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Chapter 05
Listening to Customers through Research

Multiple Choice Questions

1. (p. 115) In the first stage in the service marketing research process, the researcher:
A. Implements the research program
B. Reports his or her findings
C. Defines the problem and research objectives
D. Collects and tabulates data
E. Develops a services measurement strategy

Difficulty: Moderate

2. (p. 115) Benford Bank hired marketing researchers when it noticed many people who had
savings accounts with the bank did not have checking accounts and credit cards with it. The
first task of the market researchers was to learn if the bank wanted to know how its customers
perceived the bank as a service provider, if it were more interested in what customers thought
was superior about its savings account, if the bank thought some customer expectations were
not being met or if what the bank really wanted to know was how it could change its service
to better meet customer expectations. The first thing the research company did was to:
A. Help Benford Bank define the problem and establish research objectives
B. Determine with the bank's help who should be surveyed
C. Use data mining to see if there were any connections between customers who used all three
services and those who used only one of the services the bank offered
D. Determine what research methodology it would use
E. Decide how data analysis techniques

Difficulty: Moderate

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3. (p. 115) The most critical stage in the service marketing research process is when the
marketing researcher:
A. Implements the research program
B. Reports his or her findings
C. Defines the problem and research objectives
D. Collects and tabulates data
E. Develops a services measurement strategy

Difficulty: Moderate

4. (p. 116) _____ research is conducted to clarify problem definition and prepare for more
formal empirical research.
A. Functional
B. Quantitative
C. Primary
D. Secondary
E. Qualitative

Difficulty: Easy

5. (p. 116) The health industry in the U.S. is an $840 trillion business. Adam.com is trying to cash
in on some of that money by providing an Internet service that will answer health-related
questions for customers. After a year in operation, Adam.com did an informal survey of its
customers. It used open-ended questions to determine what people like and dislike about its
service. Adam.com was conducting _____ research.
A. Qualitative
B. Functional
C. Inferential
D. Secondary
E. Quantitative

Difficulty: Easy

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6. (p. 143) Benford Bank hired marketing researchers when it noticed many people who had
savings accounts with the bank did not have checking accounts and credit cards with it. The
researchers would conduct _____ research if they wanted to test the hypothesis that customers
do not like the checking account and credit card services of Benford Bank.
A. Functional
B. Exploratory
C. Quantitative
D. Secondary
E. Qualitative

Difficulty: Easy

7. (p. 118) Which of the following is NOT a form of qualitative research?


A. Complaint solicitation
B. Critical incident studies
C. Requirements research
D. Trailer calls
E. Customer panels

Difficulty: Easy

8. (p. 18) Which of the following types of research has a high monetary cost?
A. Complaint solicitation
B. Critical incident studies
C. Mystery shopping
D. Lost customer research
E. Future expectations research

Difficulty: Moderate

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9. (p. 118) Which of the following types of research is NOT done on a continuous basis?
A. Complaint solicitation
B. Relationship surveys
C. Social media
D. Customer panels
E. Lost customer research

Difficulty: Moderate

10. (p. 119) If you own a small advertising agency and have limited funding and even less time
to spend on service marketing research, which of the following types of research would you
be LEAST likely to use?
A. Process checkpoint evaluations
B. Future expectations research
C. Trailer calls
D. Critical incidents studies
E. Complaint solicitations

Difficulty: Challenging

11. (p. 118-119) Which of the following is NOT a form of qualitative research?
A. Process checkpoint evaluations
B. Mystery shopping
C. Trailer calls
D. Requirements research
E. Relationship surveys

Difficulty: Moderate

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12. (p. 120) One of the most frequently measured _________ is willingness to recommend the
service.
A. Behavioral intentions
B. Customer priorities
C. Preferences
D. Future expectations
E. Individual requirements

Difficulty: Moderate

13. (p. 116-121) All of the following are among the criteria for an effective service research
program EXCEPT:
A. Includes perceptions and expectations
B. Includes measures of loyalty or behavioral intentions
C. Measures priorities or importance
D. Considers only qualitative research
E. Occurs with appropriate frequency

Difficulty: Easy

14. (p. 121) Which of the following statements about complaint solicitation is true?
A. Customer complaints provide an adequate source of information about customers'
perceptions and expectations of services
B. The technique of soliciting customer complaints is only used for services
C. Research on customer complaints is one of the most difficult research techniques to use
D. Research on customer complaints allows companies to improve failure points and to
improve or correct the performance of contact personnel
E. No major companies would depend on customer complaints as its only source of
information on its customers' perceptions and expectations of its services

Difficulty: Moderate

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15. (p. 122) To be effective, complaint solicitations requires:


A. The same complaint be mentioned at least ten times before any action is taken
B. An individual complainer to have no more than one complaint
C. The company to treat the complaint as a snapshot of its service
D. Valid and reliable service questions
E. Rigorous recording of numbers and types of complaints through many channels

Difficulty: Moderate

16. (p. 123-124) Clark participated in a research study conducted by Red Lobster restaurants in
which he was asked to provide a verbatim story about a satisfying and dissatisfying service
encounter he had at Red Lobster. Which of the following types of research studies did Clark
participate in?
A. Complaint solicitation
B. Critical incidents studies
C. Relationship surveys
D. Trailer calls
E. Customer panels

Difficulty: Moderate

17. (p. 123-124) The new owner of the Atlanta Falcons football team wanted to know why game
attendance was low. Former purchasers of season tickets were asked to provide an anecdote
about a satisfying and a dissatisfying experience at a Falcon game. The researchers used:
A. Complaint solicitation
B. Critical incidents studies
C. Relationship surveys
D. Trailer calls
E. Customer panels

Difficulty: Moderate

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18. (p. 124) Which of the following statements describes a benefit of critical incident studies?
A. The method provides abstract data
B. The method provides data that is readily quantifiable
C. The research method is especially useful when the service is new
D. The research method is especially useful for services in the maturity stage of their product
life cycle
E. All of the above statements describe a benefit of critical incident studies

Difficulty: Moderate

19. (p. 123;132) SwissAir made some unwise investments to pay for a planned expansion. As a
result, the company had to make some cost-cutting moves that alienated its customers.
Eventually the company declared bankruptcy, regrouped and found itself able to resume
business. Its board of directors announced the company would resume flying within the next
two years if it could prove the airline could regain at least 75 percent of its lost customers. It
decided to allot $50,000 to determine the probability that its former customers would fly on
the airline again and what methods requiring little or no money could be used to increase that
probability. Which of the following two methods are low-cost research methods SwissAir
could use to reach its research objectives?
A. Critical incident studies and lost customer research
B. Future expectations research and lost customer research
C. Complaint solicitation and service expectation meetings and reviews
D. Database marketing research and customer panels
E. Customer panels and complaint solicitation

Difficulty: Moderate

20. (p. 122-123) Which of the following is NOT a benefit of conducting research on the Internet?
A. Higher response rate
B. Control of data quality
C. Ability to target hard to reach populations
D. Opportunity to use multimedia to present video and audio
E. All of the above are benefits of conducting research on the Internet.

Difficulty: Moderate

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21. (p. 124) _____ involves identifying the benefits and the attributes that customers expect in a
service.
A. Complaint solicitation
B. Requirements research
C. A relationship survey
D. A key client study
E. A customer panel

Difficulty: Easy

22. (p. 124) Boston Symphony Orchestra realized the classic music market was generally
becoming older and needed to learn how to appeal to younger concert-goers. It hired a
research agency to identify the positive and negative attributes of going to concerts. In other
words, the research agency conducted a:
A. Complaint solicitation
B. Requirements research
C. Relationship surveys
D. Trailer call
E. Process checkpoint evaluation

Difficulty: Easy

23. (p. 125) Which of the following statements about relationship surveys is true?
A. Relationship surveys are not statistically valid even though they are very useful to service
providers
B. Relationship surveys should be conducted weekly
C. SERVQUAL is a type of relationship survey
D. With relationship surveys, the same respondents should be used each time the survey is
administered
E. To be reliable and valid, the relationship survey should be administered to all of the service
provider's customers

Difficulty: Challenging

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24. (p. 125) The Learning Academy provides tutoring for children who are having trouble
mastering some skill in school-whether it is math, reading, studying or something else. It
wants to monitor and determine the strengths and weaknesses of The Learning Academy's
curriculum. Which of the following types of research should The Learning Academy use to
realize this objective?
A. Complaint solicitation
B. Critical incidents studies
C. Relationship surveys
D. Key client studies
E. Trailer calls

Difficulty: Moderate

25. (p. 125) PSE&G, a utility company located in New Jersey is conducting a service marketing
research study to assess its service performance. It will measure the gaps between customer
expectations and perceptions along the five dimensions of service quality. Which of the
following types of research should PSE&G use?
A. Critical incident studies
B. Requirements research
C. SERVQUAL surveys
D. Trailer calls
E. Customer panels

Difficulty: Moderate

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26. (p. 128-129) When Tom and Ruth checked out of the Marriott Hilton Head Resort, they were
each given a brief postage paid survey to complete and return through the mail. The survey
asked 15 questions about their stay at the Marriott Resort. It covered such attributes as overall
satisfaction, check-in speed/efficiency, cleanliness, decor and comfort of their room,
friendliness and efficiency of the staff, quality of dining experience, quality of
merchandise/gift shop, intention to return and willingness to recommend to friends. Which of
the following types of research did Marriott conduct?
A. Complaint solicitation
B. Critical incidents studies
C. Relationship surveys
D. Trailer calls
E. Lost customer research

Difficulty: Challenging

27. (p. 128) Trailer calls are also called:


A. Prospecting calls
B. Post transaction surveys
C. Buyers' intentions surveys
D. Lost customer calls
E. Follow-up surveys

Difficulty: Easy

28. (p. 128-129) The new owner of the Atlanta Falcons football team had research conducted to
learn why game attendance was low. The research revealed several reasons, including
shortage of toilet paper and straws, high prices for bad seats and inadequate parking. Once all
the problems were fixed, the team owner did not want to have any future attendance
problems. He set up kiosks in the football stadium where attendees could give the team and
the arena a "report card". This would be an example of:
A. A trailer call
B. A critical incident study
C. Market-oriented ethnography
D. Requirements research
E. A SERVQUAL survey

Difficulty: Challenging

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29. (p. 130) The Canfields want to landscape their 15-acre yard. The couple plans an herb garden
in back that will lead to an English cottage garden. In the west side yard, they are planning on
a Japanese garden and a rose garden will be located in the east side yard. They have hired a
landscaper to draw the design and to do the actual planning. The Canfields want input on the
landscaping. They have asked the landscaper to set up several points where they can give their
inputs, correct anything they do not like and make changes before the plan is finalized. Most
landscapers would be bothered with this seeming interference, but the landscaper the
Canfields chose has used this method for years as a way to measure his company's customer
service performance. The landscaper is using a method of gathering customer information
most similar to which of the following methods?
A. Trailer calls
B. Market-oriented ethnography
C. Process checkpoint evaluations
D. Requirements research
E. Critical incidents studies

Difficulty: Moderate

30. (p. 129) Key Energy was a company that provided quality oilfield construction, drilling and
other services. The company's top management felt stakeholders did not have a clear image of
the company and were considering changing the name to clarify the organization's position in
the market. The company conducted an hour long interview with four of its largest customers.
Only 25 questions were asked and much probing was done to find out exactly what the
participants meant. This is an example of a:
A. Research requirement survey
B. Ethnographic survey
C. Critical incident study
D. Trailer call
E. Service expectation meeting and review

Difficulty: Moderate

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31. (p. 130) The University of Leeds in the U.K. released findings of its study of television
viewing behaviors. Seventeen families had permission for cameras with sound to be placed in
the main living areas of their homes for two three-week periods over two years to watch them
watch television. The University of Leeds used _____ to determine that people who have
specifically chosen to watch a program are more likely to remain present for the commercial
breaks within it.
A. Multicultural surveys
B. Market-oriented ethnography
C. Process checkpoint evaluations
D. Requirements research
E. Diversity studies

Difficulty: Moderate

32. (p. 130) One significant difference between the U.S. and Japanese culture is the love and
respect the Japanese give their elders. A service provider who is trying to cater to the needs of
the elderly might talk to some Japanese-Americans to gather some ideas on how to improve
service quality. The cultural difference should make the service provider view providing
service to the elderly from a different perspective. This sort of service research is called:
A. Multicultural surveys
B. Market-oriented ethnography
C. Process checkpoint evaluations
D. Requirements research
E. Diversity studies

Difficulty: Moderate

33. (p. 131) Which of the following types of research is unique to services?
A. Trailer calls
B. Market-oriented ethnography
C. Mystery shopping
D. Database marketing research
E. Critical incident studies

Difficulty: Moderate

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34. (p. 131) Sunoco is readying a chain-wide set of marketing initiatives designed to improve its
image with women drivers and win more return business to its service station outlets
throughout Ontario. It refurbished all of its restrooms and tried to hire friendly personalities
and real customer service skills instead of "just who was available". It hired an outside
research organization to send people to Sunoco service stations twice monthly to grade staff
on their customer interaction skills. What research method did Sunoco use to make sure that
each station was implementing the new service strategy?
A. Market-oriented ethnography
B. Trailer calls
C. Mystery shoppers
D. Requirements research
E. Customer panels

Difficulty: Moderate

35. (p. 131) The Limited recognizes sales associates who provide excellent customer service by
rewarding them with a "Hero Award,” which is displayed in the store where the sales
associate is employed. To measure a sales associate's service performance, which type of
research should The Limited use?
A. Complaint solicitation
B. Critical incidents studies
C. Relationship surveys
D. Mystery shopping
E. Lost customer research

Difficulty: Moderate

36. (p. 119,132) Customer panels:


A. Are conducted on an annual basis
B. Have moderate time costs
C. Have high monetary costs
D. Are statistically valid
E. Cannot be used to monitor changing customer expectations

Difficulty: Moderate

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Chapter 05 - Listening to Customers through Research

37. (p. 132) Boston Symphony Orchestra realized the classic music market was generally
becoming older and needed to learn how to appeal to younger concert-goers. It hired a
research agency to identify the positive and negative attributes of going to concerts. One type
of research conducted by the agency was to interview former symphony season ticket holders
who were not longer attending the concerts. In other words, the agency used:
A. Complaint solicitation
B. Critical incidents studies
C. Relationship survey
D. Trailer calls
E. Lost customer research

Difficulty: Moderate

38. (p. 132) A week after Kim cancelled her First USA MasterCard, she received a survey in the
mail asking questions about First USA's service quality, its performance versus other credit
card companies, her level of satisfaction with different dimensions of First USA's service and
her reasons for canceling her account. Which of the following types of research did First USA
conduct?
A. Complaint solicitation
B. Critical incidents studies
C. Relationship survey
D. Trailer calls
E. Lost customer research

Difficulty: Moderate

39. (p. 132) Which type of research is most reminiscent of an exit interview that would ask a
question such as, "What exactly could we have done to keep you from leaving the company?"
and "Is there anything we can do to keep you from resigning from your position"?
A. Complaint solicitation
B. Critical incidents studies
C. Relationship survey
D. Post transaction survey
E. Lost customer research

Difficulty: Moderate

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Chapter 05 - Listening to Customers through Research

40. (p. 132) One benefit of _____ is that it identifies failure points and common problems in the
service and can help establish an early-warning system for future defectors.
A. Failure ethnography
B. A survey of buyers' intentions
C. Focus groups
D. Lost customer research
E. Future expectations research

Difficulty: Moderate

41. (p. 132-133) Features research and lead user research are both categorized as types of:
A. Post transaction surveys
B. Database marketing research
C. Process checkpoint surveys
D. Future expectations research
E. Relationship surveys

Difficulty: Moderate

42. (p. 133) _____ are used to report the findings from a service marketing research study that
collected data on the two levels of customer expectations-desired service and adequate
service-along with customer perceptions of company performance.
A. Zone of tolerance charts
B. Salience of dimensions and attributes graphs
C. Gap scores tracking graphs
D. Importance/performance matrices
E. Customer satisfaction indices

Difficulty: Moderate

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Chapter 05 - Listening to Customers through Research

43. (p. 133) A(n) _____ is a composite of the perceptual satisfaction or service quality measures
collected in an organization.
A. Zone of tolerance chart
B. Salience of dimensions and attributes graph
C. Gap scores tracking tool
D. Importance/performance matrix
E. Customer satisfaction index

Difficulty: Moderate

44. (p. 136) One of the most useful forms of analysis in marketing research is the _____, which
combines information about customer perceptions and importance ratings.
A. Zone of tolerance chart
B. Hierarchical needs matrix
C. Importance/performance matrix
D. Perception/expectation hierarchy
E. Quality/satisfaction chart

Difficulty: Moderate

45. (p. 138-140) Key Energy Co. provides quality oilfield construction, drilling and other services.
The company's top management feels that stakeholders do not have a clear image of the
company and are considering changing the name to clarify the organization's position in the
market. Senior management is interviewing the company's salespeople to learn how they feel
about selling Key Energy's services. As part of examining the corporate image, the company
is using:
A. Upward communication
B. Market-oriented ethnography
C. Lead user research
D. SERVQUAL surveys
E. Relationship surveys

Difficulty: Moderate

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46. (p. 139) Which of the following is NOT a research objective for improving upward
communication in a service organization?
A. Gain first-hand knowledge about customers
B. Improve internal service quality
C. Gain first-hand knowledge of employees
D. Obtain ideas for service improvement
E. Gain first-hand knowledge about competitors

Difficulty: Challenging

47. (p. 140) Which of the following types of interaction activities in a service organization is
used to obtain ideas for service improvement?
A. Employee suggestions
B. Employee internal satisfaction surveys
C. Research on intermediate customers
D. Executive listening approaches
E. Executive visits to customers

Difficulty: Moderate

48. (p. 140) Century Business Systems, Inc. offers all of the non-technical support a business
would need to operate successfully-everything from auditing to management consultant to
financing to marketing advice. Which of the following types of interaction activities is it
likely to use to gain information about its business customers and still be able to have only a
minimal investment of time and money in the research?
A. Employee suggestions
B. Employee internal satisfaction surveys
C. Research on intermediate customers
D. Executive listening approaches
E. Executive visits to customers

Difficulty: Moderate

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Chapter 05 - Listening to Customers through Research

49. (p. 140) US Franchise System, Inc. (USFS) franchises its brand names such as Microtel Inns
& Suites, Hawthorn Suites and Best Inns to independent hotel owners and operators. Every
three months, employees from a different franchise overseen by USFS conduct customer
satisfaction telephone surveys. Among the employees who regularly participate in the survey
process are senior managers, who are trained and certified to conduct survey interviews.
Which type of interaction activity is USFS using to improve upward communication?
A. Employee suggestions
B. Employee internal satisfaction surveys
C. Research on intermediate customers
D. Executive listening approaches
E. Executive visits to customers

Difficulty: Moderate

50. (p. 140) The University of Central Florida's Incentive/Efficiency Program encourages
employees to submit tangible ideas or suggestions that will result in savings or generate
additional revenue for the University of Central Florida. The person who suggests an adopted
proposal receives a cash reward equal to 10 percent of the first year's net savings or generated
revenues. The University of Central Florida's Incentive/Efficiency Program is designed to
achieve which of the following research objectives?
A. Gain first-hand knowledge about customers
B. Improve internal service quality
C. Gain first-hand knowledge of employees
D. Obtain ideas for service improvement
E. Gain first-hand knowledge about competitors

Difficulty: Moderate

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True / False Questions

51. (p. 118) A services research program can be defined as the composite of separate research
studies and types needed to address research objectives and execute an overall measurement
strategy.
TRUE

Difficulty: Easy

52. (p. 118) An effective services research program includes either quantitative or qualitative
research, but never both.
FALSE

Difficulty: Easy

53. (p. 118) Research done by a financial services company asked the respondents to describe
the company using the brand name of an automobile. This is obviously an example of
quantitative research.
FALSE

Difficulty: Easy

54. (p. 120) Research used to track overall service quality that will be used for bonuses and
salary increases of salespeople should have statistical validity.
TRUE

Difficulty: Easy

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Chapter 05 - Listening to Customers through Research

55. (p. 122) One of the benefits of conducting marketing research on the Internet is the
composition of the survey samples.
FALSE

Difficulty: Easy

56. (p. 121) Complaint solicitation research requires a substantial investment in both time and
money.
FALSE

Difficulty: Challenging

57. (p. 120) An important trend in services research is to measure only the negative
consequences of service quality and ignore the positive because it does not need
improvement.
FALSE

Difficulty: Easy

58. (p. 124) Requirements research is very basic and essential because it determines the type of
questions that will be asked on surveys and ultimately the improvements that will be
attempted by the firm.
TRUE

Difficulty: Easy

59. (p. 125) SERVQUAL is a type of requirements research.


FALSE

Difficulty: Easy

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60. (p. 129) In business-to-business situations in which large accounts are involved, senior
members of the account team commonly conduct service expectation meetings and reviews.
TRUE

Difficulty: Easy

61. (p. 130) Process checkpoint evaluations are commonly used in service industries in which the
services are provided quickly on a one-time only basis.
FALSE

Difficulty: Easy

62. (p. 132) Lead user research brings in customers who are opinion leaders or innovators and
asks them what requirements existing products or services are not currently meeting.
TRUE

Difficulty: Easy

63. (p. 133) One of the biggest challenges facing a marketing researcher is converting a complex
set of data into a form that can be read and understood quickly by executives, managers and
other employees who will make decisions from the research.
TRUE

Difficulty: Easy

64. (p. 133) When companies collect data on desired and adequate service levels along with
performance data, they can convey the information concisely on zones of tolerance charts.
TRUE

Difficulty: Easy

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65. (p. 136-137) Importance/performance matrices typically combine information about customer
perceptions of service encounters with a company with how the company rates in each of the
five service dimensions.
FALSE

Difficulty: Easy

Short Answer Questions

66. (p. 115) What is the first step in designing service marketing research?

Defining the problem and research objectives.

Difficulty: Easy

67. (p. 116) What kind of research is being used when an insurance company representative sits
down with people who have lost their homes to tornadoes and asks, "What could have been
done to better handle your needs immediately after the storm"?

Qualitative.

Difficulty: Easy

68. (p. 123-124) George was asked by an employee of a local do-it-yourself store to describe in
detail his experiences in the store as he bought house paint, caulk and brushes. He later
learned several of his acquaintances had been asked to do the same thing. What research
method was being used by the do-it-yourself store?

Critical incident studies.

Difficulty: Easy

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69. (p. 125) What kind of a research technique is SERVQUAL?

A relationship survey.

Difficulty: Easy

70. (p. 124) Which type of qualitative research has as its primary objective to identify customer
requirements as input for quantitative research?

Requirements research.

Difficulty: Moderate

71. (p. 128) What is another name for post transaction surveys?

Trailer calls.

Difficulty: Easy

72. (p. 132) Even thought she was not moving, Katherine dropped her membership at a local
church. She received a call from one of the church's representatives wanting to know why she
had quit. She was asked to describe the moment in which she decided she no longer wanted to
be a member of the church. What type of research is being conducted in this example?

Lost customer research.

Difficulty: Moderate

73. (p. 132) What type of qualitative research is used to monitor changes in customer
expectations and to provide a forum for customers to suggest and evaluate new service ideas?

Customer panels.

Difficulty: Easy

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74. (p. 133) List the two types of future expectations research.

Lead user research and features research.

Difficulty: Easy

75. (p. 133) The data have been gathered. It is now time to analyze these data and interpret
them. What is the primary goal of this part of the marketing research process?

To communicate information clearly to the right people in a timely fashion.

Difficulty: Challenging

76. (p. 139-141) What are the two types of interactive activities that an organization can use to
improve upward communications? Provide an example of each type.

1.) Those that are designed to improve the effectiveness of communications from customers
to management. Examples are: executive visits to customers, management listening to
customers, research on intermediate customers.

2.) Those that are designed to improve communications between employees and management.
Examples are: research on internal customers, management listening to employees, and
employee suggestions.

Difficulty: Challenging

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77. (p. 131) Describe the form of service research known as mystery shopping and discuss its
potential benefits to service organizations.

To conduct mystery shopping, companies hire outside research organizations to send people
into service establishments and experience the service as if they were customers. The mystery
shoppers are trained in the criteria important to the customers of the establishment. They
deliver objective assessments about the service performance by completing questionnaires
about service standards, or in other cases, open-ended questions that have a qualitative feel to
them. Mystery shoppers are often used to evaluate the performance of individual employees
in a single service encounter. For example, at a restaurant, mystery shoppers might have a
meal and complete a questionnaire about the servers, the restaurant itself, and the food.
Mystery shopping can keep workers on their toes because they know that they may be
evaluated at any time. Mystery shopping programs can be used as an element in compensation
and reward systems. Mystery shopping can be a very effective way of reinforcing service
standards.

Difficulty: Challenging

78. (p. 114-142) Discuss conducting marketing research for a national car rental company.

Students should answer this question by describing how service marketing research is
different from tangible products marketing research. Services research must continually
monitor and track service performance because performance is subject to human variability
and heterogeneity. Conducting performance research at a single point in time, as might be
done for a tangible product, would be insufficient in services. In addition, service marketing
research needs to consider and monitor the gap between expectations and perceptions. The
gap is dynamic because both expectations and perceptions can fluctuate.

Difficulty: Challenging

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79. (p. 114-142) Imagine you have been hired to work an internship in a resort hotel in Hilton
Head, South Carolina, for the summer. The manager learns you have had this service
marketing class. In talking with you, she states that she feels the hotel is not always providing
satisfactory service and may be performing in some areas below customer expectations. She
stops talking and looks at you. Remember your future career may be riding on your answer.
What do you tell her?

The better answer should begin with a discussion of how a service marketing research
program would be more appropriate than any single type of research. The hotel will need a
rich, multifaceted flow of information to close the gap between customer expectations and
management perceptions of customer expectations. There should also be questions about how
much time and money is available for the research project.
The basic answer is to suggest the hotel, at a minimum, use complaint solicitation, critical
incident studies and trailer calls to identify common service failure points. It will also need to
look at its employees because they may believe the service provided is adequate when
customers do not believe this to be true. The mystery shopper would be a good type of
research to study employees. Some students may also mention relationship surveys.
Finally there should be a brief discussion of how this research study is useless if it is not used
to drive change or create improvements.

Difficulty: Challenging

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Chapter 05 - Listening to Customers through Research

80. (p. 138-142) CompuMark is a company that provides marketing and computer expertise to
companies who want to set up their own Web sites. The owners of the company believe they
need to improve customers' perceptions of the service provided by CompuMark. As a result,
the owners hired a service marketing research company to conduct research about its
customers' expectations. The research was appropriately designed, executed and presented to
the owners. Discuss the two most likely occurrences at this point in the research process.
What is the role of the service marketing research company in determining what the owners of
CompuMark will do next?

Only part of the research process is finished; CompuMark must use the research findings in a
meaningful way-to drive change or improvement in the way service is delivered. The other
possibility is the misuse or nonuse of research data, which can lead to a large gap in
understanding customer expectations. Understanding how to make the best use of research-to
apply what has been learned to the business-is a key way to close the gap between customer
expectations and management perceptions of customer expectations. To help the owners put
the research information and insights into action, the service marketing research company can
make sure its plan specifies the mechanism by which customer data will be used. The research
plan should be actionable: timely, specific and credible.

Difficulty: Challenging

5-28

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