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1. Heterogeneity of services means the quality of a service may not be tangible. ANS: F Service performances tend to be less standardized and uniform than goods. Heterogeneity of services means the quality of a service may vary from one service provider to another or may vary for the same service provider at different times of the day or week. 2. A(n) _____ is a characteristic that can be easily assessed prior to purchase, such as the softness of a mattress or the color of curtains. a. search quality b. intangible attribute c. experience quality d. credence quality e. heterogeneity feature 3. Western Union has 225,000 locations where clients can receive money in 196 countries. Because a person can send money from a small town in Georgia to a small town in Mexico without worrying, Western Union has a high degree of _____ quality. a. observation b. survey c. experience d. research e. credence ANS: C 4. Alabama Adventure, an amusement park in Birmingham, offers reduced rates on weekdays and higher prices for those who want to attend on weekends. It also offers lower prices for patrons who enter the park after 4 p.m. This is a way to contend with the service characteristic of: a. variability b. perishability c. intangibility d. inseparability e. simultaneous production and consumption ANS: B Differential pricing tries to even out demand. This is important because services cannot be stored, inventoried, or warehoused. 5. Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. Users can see the ratings given to each specialist by previous users before they contact that specialist. Which service component does Keen.com use to help its customers evaluate its service quality? a. empathy b. assurance c. tangibles d. flexibility e. responsiveness ANS: B 6.Budget airlines are a new service in China. Neither their passengers nor the airlines themselves know what to expect from each other. Shanghai-based Spring Airlines is a start-up service with a tight budget. According to the owner of Spring Airlines, customer satisfaction levels are at 97 percent although many of Spring Airlines' employees have been throttled and had their clothes ripped by unhappy passengers. According to the _____, there is a gap between what customers want and what management thinks customers want. a. gap model of service quality b. service pyramid c. four dimensions of service quality d. service paradigm e. service delineation matrix ANS: A The gap model identifies five gaps that can cause problems in service delivery and influence customer evaluation of service quality. 7. Harriet Lowe makes children’s clothing, which she sells at craft festivals to end users. Lowe ...

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