Chapter 12
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Questions and Answers

What form of control uses rewards or discounts as incentives?

  • Penalties control
  • Normative control
  • Comparative control
  • Instrumental control (correct)

Which company created a normative environment to encourage honest selling and buying?

  • JetBlue
  • Costco
  • Amazon
  • eBay (correct)

What is the rationale behind Amazon providing detailed reviews with no economic benefits?

  • Intrinsic gratification (correct)
  • Monetary rewards
  • Peer recognition
  • Social pressure

What method does Costco use to encourage customers to return shopping carts?

<p>Charging a deposit (D)</p> Signup and view all the answers

Which type of control system can be less expensive and more efficient according to the text?

<p>Normative control (D)</p> Signup and view all the answers

In what way does JetBlue invite customers to contribute to service quality according to the text?

<p>By asking customers to pitch in and clean before leaving the aircraft (D)</p> Signup and view all the answers

What is one way Zipcar engages its customers to develop deep feelings of interdependence?

<p>Sending out humorous newsletters (D)</p> Signup and view all the answers

In which scenario do normative controls work best?

<p>When there is a strong foundation of trust between the firm and customers (C)</p> Signup and view all the answers

Which company relies on peer pressure from passengers next to you as a normative control mechanism?

<p>JetBlue (C)</p> Signup and view all the answers

What is a key factor in ensuring service quality and satisfaction according to the text?

<p>A trend of improving service experience over time (D)</p> Signup and view all the answers

Why is it important for customers to understand that their actions matter?

<p>To create a sense of community and interdependence (D)</p> Signup and view all the answers

What makes the ending equally important as other stages in the service experience?

<p>It affects the customer's perception of the entire service (B)</p> Signup and view all the answers

What is a common reason for customers interfering with other customers in a service setting?

<p>Misunderstanding their roles (C)</p> Signup and view all the answers

In the context of service delivery, why might customers not be willing or able to perform their roles?

<p>Being late or unprepared for an appointment (B)</p> Signup and view all the answers

How can customer co-creation and co-production benefit a business?

<p>Increased loyalty (A)</p> Signup and view all the answers

What is a drawback of customer co-creation and co-production?

<p>Decreased willingness to pay (D)</p> Signup and view all the answers

Why is it important for businesses to understand the variety of roles that service customers play?

<p>To avoid a widening service performance gap (B)</p> Signup and view all the answers

What contributes to the 'I designed it myself' effect when it comes to customer co-creation and co-production?

<p>Willingness to pay and satisfaction (A)</p> Signup and view all the answers

Give an example of instrumental control in the banking industry.

<p>Waiving account fees with a minimum balance</p> Signup and view all the answers

What normative environment did eBay create to encourage honest selling and buying?

<p>Encouraging honest selling and buying</p> Signup and view all the answers

How does Amazon benefit from providing detailed reviews with no economic benefits?

<p>Intrinsic gratification</p> Signup and view all the answers

What does JetBlue do to invite customers to contribute to service quality?

<p>Invite customers to help keep fares low by pitching in to clean up after themselves before leaving the aircraft</p> Signup and view all the answers

Differentiate between instrumental and normative controls in terms of customer engagement.

<p>Instrumental control uses rewards or discounts, while normative control uses emotional triggers like pride or shame.</p> Signup and view all the answers

Explain the strategy used by Costco to encourage customers to return shopping carts.

<p>Help us keep your costs low</p> Signup and view all the answers

Give an example of how customers can interfere with other customers in a service setting.

<p>e.g., drunk guests</p> Signup and view all the answers

Explain the concept of the 'I designed it myself' effect in customer co-creation and co-production.

<p>Willingness to pay, satisfaction</p> Signup and view all the answers

How can customer participation influence their loyalty?

<p>Loyalty</p> Signup and view all the answers

What are some drawbacks of customer co-creation and co-production?

<p>No rewards for 'good performance', interfering with other customers</p> Signup and view all the answers

Explain the significance of understanding the variety of roles that service customers play.

<p>Ensuring service quality and satisfaction</p> Signup and view all the answers

Why is it important for customers to be willing and able to perform their roles in a service setting?

<p>To avoid disruptions and maintain service efficiency</p> Signup and view all the answers

How does Zipcar engage its customers to develop deep feelings of interdependence?

<p>Through community building activities, such as delivering food to charities during the holidays.</p> Signup and view all the answers

What role does customer interdependence play in normative controls?

<p>It makes the notion of customer community sensible.</p> Signup and view all the answers

What is the significance of the trend in the sequence of pain or pleasure in service experiences?

<p>The sequence of experiences matters; people prefer a sequence that improves over time.</p> Signup and view all the answers

How does JetBlue utilize peer pressure as a normative control mechanism?

<p>JetBlue uses peer pressure from the passengers next to you to encourage cleanliness.</p> Signup and view all the answers

Why is it important for customers to understand that their actions matter in service delivery?

<p>Customers need to see the impact of their actions, such as how cleaning helps others.</p> Signup and view all the answers

What contributes to the effectiveness of normative controls in a service setting?

<p>A foundation of trust between the firm and customers.</p> Signup and view all the answers

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