1) On a recent visit to her local Coffee Company store, Michelle Smith's coffee was prepared incorrectly.When she mentioned this mistake, the associate not only gave her a new, properly prepared cup of coffee, Michelle also received a store coupon so that her next coffee at the store would be half price.This behavior by a Coffee Company associate is an example of ________?

service inseparability

grounds for termination

service recovery

service variability

2) Most of the customers at Second Avenue had come through word-of-mouth communication.This small retailer of quality, second-hand children's clothing thrives on the sale of a large inventory of items placed there on consignment."Because small children grow so quickly," Second Avenue's owner commented, "they often outgrow many of their clothes before they've hardly been worn!"

Second Avenue provides a way for people to sell their children's clothing, earn a few dollars, and buy the next larger size."We're extremely picky about the condition of the clothing we stock," the owner states, "but we sell most items at a 60-percent discount."As a result, their inventory of clothing varies from day to day and turns over quickly.

Although Second Avenue has thrived through word-of-mouth, which of the following forms of promotion would make theMOSTsense for this retailer to use now?

Direct-mail marketing -- Second Avenue could identify potential customers and send them targeted offers.

Catalog marketing -- Second Avenue could develop a printed catalog of their merchandise and mail it to potential customers.

Infomercials -- Second Avenue could run 30-minute advertising programs for its store, explaining the many benefits of buying second-hand clothing

Personal selling -- Second Avenue could hire and train a sales force to call on customers and prospects.