RST 325 Final Exam Study Guide
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Questions and Answers

What is the primary role of ambient conditions in a service environment?

  • To influence customer emotions and perceptions (correct)
  • To increase employee productivity through design
  • To provide directions and signs for better navigation
  • To enhance the overall aesthetic appeal of the space

Which of the following best describes the distinction between spatial layout and functionality?

  • Spatial layout refers to the aesthetic appeal, while functionality is about service quality.
  • Spatial layout includes signs and symbols, while functionality is about ambient conditions.
  • Spatial layout is determined by employee behavior, and functionality is based on customer interaction.
  • Spatial layout deals with the size and shape of furnishings, whereas functionality pertains to how items facilitate transactions. (correct)

How do signs, symbols, and artifacts contribute to service environments?

  • They provide entertainment and create emotional connections with customers.
  • They serve to communicate service scripts and behavioral expectations. (correct)
  • They act as barriers to entry and control customer flow.
  • They primarily enhance the visual appeal of the service area.

What are the four purposes of service environments?

<p>Shape experiences, signal quality, serve as a core component of value proposition, and enhance productivity. (D)</p> Signup and view all the answers

What outcome does a well-designed service environment primarily aim to achieve?

<p>Improve customer and employee cognitive, emotional, physiological, and behavioral responses (C)</p> Signup and view all the answers

Which of the following describes the negotiation flow in service distribution?

<p>Reaching an agreement on service features and configuration (C)</p> Signup and view all the answers

What is an example of a service distribution method where the customer goes to the service organization?

<p>Visiting a gym for a workout (C)</p> Signup and view all the answers

What type of location consideration involves specific location and details for facility decisions?

<p>Tactical Location Considerations (C)</p> Signup and view all the answers

Which of the following best describes intermediaries in service distribution?

<p>Outsourcing certain aspects of distribution (B)</p> Signup and view all the answers

What does disintermediation in service distribution refer to?

<p>Migrating customers to lower cost channels (C)</p> Signup and view all the answers

Which of the following statements accurately defines franchising?

<p>A license between two legally independent parties to market a product (A)</p> Signup and view all the answers

What is a major advantage of franchising for service organizations?

<p>Fast growth with limited resources (A)</p> Signup and view all the answers

What is a disadvantage of using franchising as a service distribution model?

<p>Less control over delivery system and customer experience (B)</p> Signup and view all the answers

What is one primary reason why customer loyalty is important for businesses?

<p>Loyal customers often lead to higher overall business outcomes. (A)</p> Signup and view all the answers

Which of the following is NOT considered a type of benefit that customers receive from a loyal relationship?

<p>Unique selling propositions (C)</p> Signup and view all the answers

Which of the following actions is an example of private action taken by customers in response to service failures?

<p>Telling friends about their negative experience (D)</p> Signup and view all the answers

What do structural bonds focus on in enhancing customer loyalty?

<p>Aligning customer processes with the supplier's processes (A)</p> Signup and view all the answers

What is the primary purpose of service recovery?

<p>To systematically correct problems after service failures. (A)</p> Signup and view all the answers

What type of actions can customers take to express dissatisfaction following a service failure?

<p>Either public action, private action, or no action at all (B)</p> Signup and view all the answers

Which of the following can be classified as a financial reward in a loyalty program?

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

What is an example of a core service failure that might lead customers to switch providers?

<p>Consistent shortcomings in service quality (D)</p> Signup and view all the answers

What is the service recovery paradox?

<p>Increased loyalty after a satisfactory recovery (C)</p> Signup and view all the answers

Which type of justice involves fairness in policies and procedures?

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

Which customer type is most likely to blame others for their dissatisfaction?

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

What should a firm consider when establishing appropriate compensation levels for service recovery?

<p>Market position and premium response (B)</p> Signup and view all the answers

What is a key characteristic of 'returnaholics'?

<p>They buy items only to return them after use (B)</p> Signup and view all the answers

Which element is NOT part of effective service recovery guidelines?

<p>Act slowly to show the seriousness of the issue (A)</p> Signup and view all the answers

Interactional justice refers to which aspect of service recovery?

<p>The behavior of employees during the recovery process (C)</p> Signup and view all the answers

When dealing with complaining customers, frontline employees should do what?

<p>Sort out the facts and give the customer the benefit of the doubt (A)</p> Signup and view all the answers

What is the main focus of internal marketing?

<p>Motivating employees and improving retention (C)</p> Signup and view all the answers

Which of the following is NOT a source of role conflict for service employees?

<p>Employee/Management conflict (B)</p> Signup and view all the answers

What does emotional labor involve for frontline staff?

<p>Maintaining a professional demeanor while hiding true feelings (D)</p> Signup and view all the answers

Which training area focuses on improving teamwork and service values?

<p>Organizational culture, purpose, and strategy (D)</p> Signup and view all the answers

In which theory are employees viewed as needing to be forced to work?

<p>Theory X (B)</p> Signup and view all the answers

Which personality assessment is typically used in candidate selection?

<p>Personality test (D)</p> Signup and view all the answers

What is an example of a non-monetary reward for service employees?

<p>Vacation days (D)</p> Signup and view all the answers

Which of the following skills is considered interpersonal in customer service training?

<p>Attentive listening (D)</p> Signup and view all the answers

Flashcards

Service Distribution Flows

The three interconnected flows (information/promotion, negotiation, product) crucial for delivering a service.

Service Distribution Methods

Three primary ways services reach customers: customer-to-service, service-to-customer, and remote transactions.

Facility Location Considerations

Strategic (broader locations) and tactical (specific locations) factors affecting service delivery.

Intermediaries in RST

Outsourcing or partnering businesses to enhance service distribution.

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Disintermediation in service

Service firms streamlining their distribution channels by reducing reliance on intermediaries.

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Franchising in RST

Agreement allowing a party to market a service using another's brand and procedures.

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Service Environment Definition

Factors impacting the environment where service interactions happen.

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Franchising: pros and cons

Franchising offers quick growth but may sacrifice control and consistency.

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Servicescape Dimensions

The three main aspects of a service environment that shape customer experience. These include ambient conditions, space/functionality, and signs/symbols/artifacts.

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Spatial Layout vs. Functionality

Spatial layout refers to the physical arrangement of the environment (like the floor plan), while functionality describes how well items facilitate the service transaction (like ease of ordering).

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Servicescape Purpose: Signal Quality

The service environment acts as a subtle indicator of the quality of the service offered.

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Servicescape Role of Signs/Symbols/Artifacts

Signs, symbols, and artifacts in a service environment communicate behavioral expectations, guide customers, and influence the customer experience. Examples include labels, directions, and even décor style.

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Servicescape and Employee/Customer Influence

The appearance and behavior of employees and other customers significantly impact the overall impression created by the service environment. These elements either strengthen or weaken the environment.

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Customer Loyalty Benefits

Benefits from loyalty, including confidence (lower anxiety), social (friendship with service providers), and special treatment (better prices, faster service).

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Loyalty Program Rewards

Incentives to encourage customer loyalty, including both financial rewards (e.g., discounts, loyalty points) and non-financial rewards (e.g., priority treatment).

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Customer Churn Drivers

Factors that lead to a loyal customer switching to another service provider.

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Wheel of Loyalty

Three components to build, strengthen, and maintain customer loyalty: foundation, bonds, and reducing churn.

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Service Recovery

Systematically addressing service failures to retain customer goodwill.

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Customer Complaint Reasons

Customers complain to obtain restitution, vent anger, improve the service, or cherish the complaint process.

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Higher-Level Bonds

Social (personal relationships), customization (tailored service), and structural (aligned processes) bonds that strengthen customer loyalty.

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CRM System Uses

CRM systems are used for data collection, analysis, lead generation, marketing automation, and call center automation.

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Service Recovery Paradox

A situation where customers are more satisfied and loyal after a service failure is effectively resolved than if no failure had occurred.

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Procedural Justice

The perceived fairness of the policies and rules used to handle service recovery efforts.

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Interactional Justice

The perceived fairness of the interaction between the customer and the employee during service recovery.

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Outcome Justice

The perceived fairness of the compensation or restitution received by the customer.

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Verbal Abusers

Customers who lash out at employees during service recovery, making them difficult to deal with.

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Blamers

Customers who blame employees or the company for a problem, even when they are at fault.

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Establish Compensation Levels

Setting appropriate compensation for service recovery, considering the firm's position, severity of the failure, and customer type.

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Frontline & Complaining Customers

Guidelines for frontline staff dealing with complaining customers: act quickly, acknowledge feelings, avoid arguments, show understanding, gather facts, propose solutions, keep informed, offer appropriate compensation, and review systems for improvement.

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Internal Marketing

Activities like attracting, developing, motivating, and retaining qualified employees; basically, it's marketing your company to your own workforce.

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Why are service employees important?

They are the face of your company, directly impacting customer satisfaction, loyalty, and ultimately, sales and profitability.

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What is Role Conflict?

When there are conflicting expectations or demands placed on a service employee, causing them to feel stressed or torn.

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Types of Role Conflict

Three main types: Organization/Client: Company policies clash with customer needs; Person/Role: Personal values conflict with job requirements; Inter-client: Customers have conflicting demands.

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Emotional Labor

The effort employees put into managing their emotions to present a desired image to customers, even if their true emotions are different.

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Tool for Selecting Candidates

Using structured interviews, observation, personality tests, reference checks, and realistic job previews to ensure you hire the right people.

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Training Areas for Service Employees

Three key areas: Organizational culture and strategy (company values, teamwork); Interpersonal and technical skills (communication, service processes); Product/service knowledge (understanding what they sell).

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Theory X vs. Theory Y

Theory X assumes people dislike work and need constant motivation; Theory Y assumes people enjoy work and are self-driven.

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Study Notes

RST 325 Final Exam Study Guide

  • Format: The exam is 200 points total. It includes 30 multiple choice questions (3 points each) on Day 1 and 11 short answer questions (110 points) on Day 2. The exam is closed-book.
  • Study Materials: Review PowerPoint slides, co-created study guides, and the course textbook. Focus on content from weeks 9-15. Specific concepts for the exam are listed.

Distribution and Place

  • Service Business Flows: Understand information/promotion, negotiation, and product flows.
  • Distribution Channels: Thoroughly understand how service is delivered (customer goes to service org, service org goes to customer, remote transactions). Examples include sporting events, food deliveries, and broadcast networks.
  • Location Decisions: Know strategic (general location options) and tactical (specific location details) location considerations.
  • Intermediaries: Understand intermediaries and provide examples in RST. Analysis of the benefits and costs of different distribution channels is important.
  • Disintermediation: Know the concept of service firms migrating customers and sales channels to lower costs.
  • Franchising: Be familiar with franchising and give an example from RST.

Service Environment

  • Servicescape Definition: Understand the style, appearance, and experiential elements of physical surroundings, like signs, color, and lighting customers encounter.
  • Service Environment Purposes: The four purposes are shaping experiences, signaling quality, the core component of the value proposition, and increasing productivity and efficiency.
  • Example: An example of the servicescape, Disney World, shows how the space itself acts as a core component of the value proposition.
  • Integrative Servicescape Model: Understand the interactions between employees, customers, and the environment.
  • Service Environment Dimensions: Understand ambient conditions (e.g., noise, temperature), spatial layout, furnishings, and personal artifacts that shape a service environment.

Customer Relationship and Loyalty

  • Customer Loyalty: Understand the importance of customer loyalty: it's cheaper and easier to maintain existing customers.
  • Customer Loyalty Types: Loyal customers derive benefits in terms of confidence, social connection, and special treatment.
  • Wheel of Loyalty: Know the three components of the Wheel of Loyalty, including building a foundation, target value, creating loyalty bonds, and reducing churn drivers.
  • Reasons for Customer Switching: Understand core service failures, inconvenience, and dissatisfaction.

Service Recovery

  • Customer Actions: Three main actions taken in response to failures are public action, private action (negative word-of-mouth), and no action.
  • Understanding Service Recovery: Know the definition, systematic efforts, recovery paradox (higher satisfaction after recovery), and customer expectations of fairness (procedural, interactional, outcome).
  • Steps: Use of appropriate techniques to deal with complaints. Address the severity of the issue and type of affected customer and compensation. Act quickly, show empathy, and give a benefit of the doubt to the customer.

Managing People/Internal Marketing

  • Internal Marketing Definition: Activities to attract, develop, motivate, and retain employees.
  • Importance of Service Employees: Understand and explain why service employees are important.

Unfair Customers

  • Customer Types: Understand and categorize different types of unfair customers (e.g., verbal abusers, blamers, rule breakers).
  • Principles of Effective Recovery: Practical ways to recover from service failures by enabling effective customer feedback, establishing appropriate compensation levels, and considering the severity and status of the customer.

Core Concepts for Study

  • Role Conflicts: Understand the conflicts between organizational goals and customer satisfaction, person-role conflicts, and inter-client conflicts.
  • Emotional Labor: The discrepancy between how frontline staff feel internally and what is expected from them.

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RST 325 Final Exam Study Guide Fall 2024 PDF

Description

Prepare for the RST 325 Final Exam with this comprehensive study guide. Review key concepts from service distribution, location decisions, and intermediaries based on materials from weeks 9-15. This guide will help you focus on the most important topics to boost your exam performance.

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