Chapter 12

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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?

Charging a deposit Signup and view all the answers

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

Normative control Signup and view all the answers

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

By asking customers to pitch in and clean before leaving the aircraft Signup and view all the answers

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

Sending out humorous newsletters Signup and view all the answers

In which scenario do normative controls work best?

When there is a strong foundation of trust between the firm and customers Signup and view all the answers

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

JetBlue Signup and view all the answers

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

A trend of improving service experience over time Signup and view all the answers

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

To create a sense of community and interdependence Signup and view all the answers

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

It affects the customer's perception of the entire service Signup and view all the answers

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

Misunderstanding their roles Signup and view all the answers

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

Being late or unprepared for an appointment Signup and view all the answers

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

Increased loyalty Signup and view all the answers

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

Decreased willingness to pay Signup and view all the answers

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

To avoid a widening service performance gap 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?

Willingness to pay and satisfaction Signup and view all the answers

Give an example of instrumental control in the banking industry.

Waiving account fees with a minimum balance Signup and view all the answers

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

Encouraging honest selling and buying Signup and view all the answers

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

Intrinsic gratification Signup and view all the answers

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

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

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

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

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

Help us keep your costs low Signup and view all the answers

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

e.g., drunk guests Signup and view all the answers

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

Willingness to pay, satisfaction Signup and view all the answers

How can customer participation influence their loyalty?

Loyalty Signup and view all the answers

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

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

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

Ensuring service quality and satisfaction 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?

To avoid disruptions and maintain service efficiency Signup and view all the answers

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

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

What role does customer interdependence play in normative controls?

It makes the notion of customer community sensible. Signup and view all the answers

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

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

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

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

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

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

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

A foundation of trust between the firm and customers. Signup and view all the answers