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1. The corporate culture of a firm does not significantly influence the quality of the service it provides because the culture is internal and, therefore, not perceived by the customer


Flexibility in meeting customer needs is the main reason that some service firms have empowered contact personnel


In the service encounter triad, the potential conflict between the service organization and its contact personnel is one of efficiency vs. satisfaction


The effectiveness of an online encounter can be measured using E-S-QUAL


When the customer's role is built into the service delivery system, he or she is said to be a coproducer


The choice of location criterion has little effect on the site selected


Saturation clustering occurs when service firms locate their business near their competitors because they expect a high level of customer traffic


Geographic information systems are a visual method of displaying data


Cross-median is an approach to the location of a single facility using the metropolitan metric to maximize the total distance traveled


Overbooking is a strategy that can be used to smooth demand


The strategy of segmenting demand to reduce variation makes use of the fact that demand for a service is seldom from a homogeneous source.


Differential pricing is an attempt to make peak usage periods unattractive by imposing a penalty on the consumer for using the service during peak periods.


Cross training of employees as a strategy to increase flexibility is feasible only when there exist tasks, the demands for which peak at different times.


Expected loss for an overbooking reservation strategy would be calculated by, multiplying the loss for each no-show possibility by its probability of occurrence, and then adding the products


Waiting is often seen as psychological punishment because the consumer is aware of the opportunity cost of waiting time and the resulting loss of earnings


the time a consumer will spend waiting is directly related to the amount of money he is paying for the service. The less the service costs him, the longer he is willing to wait


In analytical queuing models, the calling population mainly determines whether the queue will be finite or infinite.


Concealment of the waiting line or at least part of it is a very effective deterrent against reneging.


The term queue configuration refers to the number of queues, their locations, their spatial requirements, and their effect on consumer behavior.


Most forecasting models assume that the underlying pattern of behavior of their data will remain the same. The only component of error is attributable to random fluctuations that are not under the control of anyone


One reason exponential smoothing is so popular is the ease with which it can be made to accommodate trend and seasonality in its forecasts.


In the Delphi method, the opinions of experts are collected, then the analyst resolves differences of opinion to arrive at a consensus.


Dependent demand is described by a probability distribution


ABC analysis is an application of the 80-20 rule


Lead-time inventories are stocks that have been ordered but not yet received

customer's control of the situation

26. A customer who is interested in the self-service option would find which of the following dimensions of service most important?
a. Risk involvement
b. Customer's control of the situation
c. Amount of time involved
d. Efficiency of the service process

Unreasonable demands

27. The most common reason for difficulties during the interaction of customers and contact personnel is:
a. unreasonable demands.
b. a technical breakdown in service delivery.
c. incompetent contact personnel.
d. a lack of attention to detail by contact personnel

when the customer is forming an opinion about the efficiency of the service

28. A "moment of truth" is not:
a. an opportunity to influence a customer's perception of the service quality.
b. critical in achieving a reputation for superior quality.
c. when the customer is forming an opinion about the efficiency of the service.
d. an interaction between a customer and a service provider?

empathy for the customer

29. The most important attribute of customer contact personnel is:
e. education.
f. sales related knowledge.
g. intelligence.
h. empathy for the customer.

saturated marketing

30. A strategy that may be used by urban retailers to locate multiple sites close to each other in high-density areas despite the potential for cannibalization is called
e. competitive clustering.
f. marketing intermediaries.
g. saturation marketing.
h. saturation clustering

ownership of the service i.e. public or private

31. The optimization criteria governing the location of a service facility is determined mainly by the
a. ownership of the service, i.e., public or private.
b. kind of service, e.g. food, banking, or postal.
c. number of facilities to be located.
d. average size of the facilities to be located.

distance traveled

32. The following are important in estimating spatial demand except
e. defining the target population
f. selecting a unit of area
g. developing a visual representation or map
h. distance traveled

competitive clustering

Car dealerships are often located near one another along a "motor mile" to allow customers to make comparisons. This location strategy is known as
e. competitive Clustering
f. saturation Marketing
g. marketing Intermediaries
h. competitive Positioning

make off peak usage attractive

34. The purpose of differential pricing is to
e. make peak period usage unattractive.
f. make off-peak usage attractive.
g. charge customers according to their ability to pay.
h. adjust capacity to demand.

promoting off peak demand

35. services should try to avoid overbooking.
e. creating adjustable capacity.
f. developing complementary services.
g. increasing customer participation.
h. promoting off-peak demand.

decrease customer participation in the service

36. Which of the following strategies is inappropriate for managing capacity and demand?
e. Smooth customer demand by offering price incentives.
f. Scheduling staff to meet variations in forecasted customer demand.
g. Decrease customer participation in the service process.
h. Promoting off-peak use of facilities.

assign opperators to shifts

37. Which one of the following four steps in "daily workshift scheduling" is out of order?
a. Forecast demand.
b. Convert to operator requirements.
c. Assign operators to shifts.
d. Schedule shifts.

using reservations and appointments

38. Faced with variable demand and a perishable capacity, a service manager can smooth demand by
a. using part-time help during peak hours.
b. scheduling workshifts to vary workforce needs according to demand.
c. increasing the customer self-service content of the service.
d. using reservations and appointments.

only a limited number of people may use the facility in any given period

39. The calling population is termed finite when:
a. there is restriction on the maximum number in the queue.
b. only a limited number of people may use the facility in any given period.
c. the interarrival time is not very large.
d. there is no queue discipline specified

prominently display time with a large analog clock

40. Unfair waits feel longer than fair waits.
f. Which of the following is not an effective way to manage the psychology of waiting?
g. Prominently display time with a large analog clock.
h. Inform customers when long waits are anticipated.
i. Use diversions to occupy customer waiting times.
j. Employ a take-a-number system to ensure fairness

lead to a perceived shorter wait time

41. One advantage of the multiple queue compared to a single queue is that multiple queues
e. minimize wait times.
f. reduce the average service time.
g. lead to a perceived shorter service time.
h. lead to a perceived shorter wait time.


42. After selecting a line in a multiple queue system, a customer is ________ when she or he switches to a different line perceive it to be moving faster.
e. jockeying
f. balking
g. reneging
h. weaving

displaying time with a large analog clock

43. All but one of the following are techniques to lessen the boredom of waiting customers:
e. placement of mirrors in elevators.
f. telling customers how long the wait is at different points in the queue.
g. installing a television tuned to CNN.
h. displaying time with a large analog clock.

the use of opinion as a basis for a forecast

44. Subjective forecasting models are best characterized by:
e. the use of experts.
f. the use of opinion as a basis for a forecast.
g. the absence of data manipulation.
h. the use of simultaneous equations.

dependent variable

45. In regression models, the variable of interest (being forecast) is called a(an):
e. defining variable.
f. independent variable.
g. basic variable.
h. dependent variable.

technological change

46. The Delphi method is best used when forecasting
e. customer demand.
f. technological change.
g. correlations between events.
h. future economic conditions

safety stocks

47. In the design of an inventory system all but one of the following is considered.
e. Type of customer demand
f. Relevant inventory costs
g. Constraints
h. Safety stocks

EOQ for the loe=west price per unit

48. When a quantity discount is offered, the first step should be compute
e. EOQ for the highest price per unit.
f. EOQ for the lowest price per unit.
g. the total annual cost for the highest quantity discount.
h. the total annual cost for the lowest quantity discount.

among the most numerous

49. In the ABC inventory classification, C items can best be described as
e. expensive.
f. among the most numerous.
g. having a high stockout cost.
h. requiring close attention.

reorder point, safety stock

50. Service level influences _______ and ________.
e. reorder point, safety stock.
f. reorder point, backorder quantity.
g. safety stock, backorder quantity.
h. backorder quantity, lead-time demand.

direct marketing

an interactive system of marketing which uses one or more advertisingmedia to effect a measuarable resonse or transation at any location

purpose of direct marketing

Solicit direct order
•Generate leads
•Drive store traffic
•Populate/upgrade database
•Customer Relationship Management

data base marketing

•Improve selection of market
•Stimulate repeat purchases
•Cross selling
•Customer relationship management

PURLS (personalized URLs)

1. Direct mail with customized domain name
2. Personalized microsite
3. Data capture on site
4. E mail, direct mail, telemarketing contact
5. Update personalized site

Content management system

allows non programers to edit text and change images
should have templace and narrow content providers

Wire Frame

organizational layout, not a design


Separate from corporate but linked
More personal, more interactive
Branded entertainment
Limited promotions or product launches

search engine optimization (SEO)

‣ strategic use of keywords, not repetition
‣ less than 10% of total content
‣ avoid repeating headline words in a summary
‣ don't forget heads, subheads (first 2 words )
‣ first and last paragraphs more important
‣ don't forget tagging images
‣ short, simple, to the point
‣ passive voice for headings is more effective for search

behavioral targeting

market segmentation on the web

ways to evaluate digital

clicks, conversations, uniques, bounce rates, eye tracking, offline sales lift

Marketing PR

Build excitement before media advertising
‣Improve ROI (reduce promo costs)
‣Create advertising news (when no product news)
‣Customer relationships (value added, product info)
‣Influence opinion leaders
‣Pre-emptive defense/damage control

internal PR audiences

stakeholders (employees, shareholders, investors, suppliers and customers)

external PR audiences

media, government, opinion leaders, industry,
public at large

evauluating PR

Number of impressions (gross, targeted)
‣Positive mentions (articles, news items)
‣Positive to negative ratio
‣Pre/post surveys (quantitative/qualitative)


Perceived as more credible than ads and other
PR because it's not sponsored
‣Tends to have higher news value
‣Can be positive or negative
‣Hard to control
‣At mercy of news cycle and media spin

corporate advertising

image ads
sponsorship ads
policty ads
cause/advocasy ads

evaluating corporate advertising

‣Pre-post opinion surveys
‣Stock prices
‣Sales/market share
‣Positive media coverage

content marketing

Compile, integrate and deliver information that
benefits the target audience (curation)
‣"Brands become publishers"


sets standards for pretesting advertising

measuring online advertising

•Click through rates
•Bounce rates
•Unique visitors

standardized IM strategies

same message in all countries

localized IM strategies

compatible with each country's culture


Misrepresentation, omission, or practice
that is likely to mislead the consumer acting
reasonably in the circumstances leading to
the consumer detriment


Any word, name, symbol or device used to identify goods
and distinguish them from others.

fair use

Any image can be used for non-commercial,
academic purposes without the expressed
permission of the author or artists

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