Please state A, B, C, or D for each question.

1. A hotel tries to reduce the perishability of its services by selling last minute inventory at a highly discounted price. This technique presents threats to a companys:

A. Brand image

B: Variability of services

C: Relationships with suppliers

D: Human resources turnover

2. Sometimes, hotel and airline companies upgrade guests to higher-end services. For such services, there are not a lot of word-of-mouth, reviews, or pictures available. For example, a hotel may upgrade a guest who paid for a regular room to a suite in order for the guest to experience an upscale product that the customer does not purchase often, but may purchase in the future. This situation, where a guest may experience an unfamiliar upscale service for the first time, is likely to result in a __________ in the __________ of services.

A: increase, intangibility

B: reduction, intangibility

C: reduction, variability

D: increase, variability

3. In hospitality and travel industries, customers and frontline employees ________ in order to create a service.

A. interact

B: pay first

C: evaluate each other

D: express their expectations of each other

4. Fifty percent of Hotel As customers are loyal. They repeat their purchases and refer other customers, resulting in ________

A. higher employee turnover at Hotel A

B: increased technology installations at Hotel A

C: healthy service profits at Hotel A

D: decreased market share for Hotel A

5. Adrian is a General Manager for a downtown hotel in a major U.S. city. Angela is the Front Desk Manager at the same hotel. Adrian is arguing that selecting the best employees and training them properly will not ultimately result in profits and growth for the hotel. Angela disagrees. In this scenario:

A: Adrian is correct

B: Angela is correct

C: Both Angela and Adrian are correct

D: It cannot be determined who is correct based on the information above

6. The service profit chain illustrates the importance of _____ increasing value for the customer.

A: Policies

B: Relationships with various public organizations new lines

C: Periodic environmental scanning

D: Employees

7. Which of the following is not an element of internal service quality?

A: Superior employee selection and training

B: Frequent meeting with supervisors at multiple levels in the organization

C: Strong support for customer facing employees

D: A quality work environment

8. Internal service quality refers to superior:

A: advertising targeted at the supplies of a company

B: relationships with important public relations companies

C: local governments representatives as members of the companies' board

D: employee selection and training

9. When properly executed, the service profit chain is

A: terminated very quickly

B: printed out and published so that all stakeholders can see it

C: likely to increase employee turnover

D: self- sustaining

10: While the service profit chain is self-sustaining, which of the following elements is the end result?

A: Healthy service profit and growth

B: Satisfied and loyal customers

C: Satisfied and productive service employees

D: Greater service value