Chpt 12

using personal information sources

A personal information source is someone consumers are familiar with (such as a celebrity) or someone they admire or can relate to personally.

Level 3: Customization

Encourages customer loyalty through intimate knowledge of individual customers and the development of one to one solutions to fit customers needs

benefit complexity

Nonprofit organizations often market complex behavior or ideas, such as the need to quit smoking. The benefits that a person receive are complex, long term, and intangible, and therefore are difficult to communicate to consumers.

professional volunteers

Nonprofit organizations often seek out marketing, sales, and advertising professionals to help them develop and implement promotion strategies

creating a strong organizational image

One way to create an image is to manage the evidence, including the physical environment of the service facility, the appearance of the service employees, and the tangible items associated with a service

Apathetic or strongly opposed targets

Private-sector organizations usually give priority to developing those market segments that are most likely to respond to particular offerings

benefit strength

The benefit strength of many nonprofit offerings may be weak or indirect.

Level 1: Financial

The firm uses pricing incentives to encourage customers to continue doing business. This level of relationship marketing is the least effective because its price-based advantage is easily imitated by competitive firms.

experience quality

a characteristic that can be assessed only after use

search quality

a characteristic that can be easily assessed before purchase

credence quality

a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience

supplementary services

a group of services that support or enhance the core service

gap model

a model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality

mass customization

a strategy that uses technology to deliver customized services on a mass basis

stressing tangible cues

a tangible cue is a concrete symbol of the service offering. to make their intangible services more tangible, hotels turn down the bedcovers and put mints on the pillows

_____ processing describes services that use technology or brainpower directed at a customer's assets. a. Information b. Mental stimulus c. Possession d. People

a. Information

Which of the following most clearly reveals the relationship between the target market strategy of a service and its distribution strategy? a. Location of a service b. Convenience c. Number of outlets d. Scheduling

a. Location of a service

_____-oriented pricing is a price strategy that involves varying the price of a service with different market segments' ability to pay. a. Patronage b. Operations c. Revenue d. Market

a. Patronage

Which of the following is a difference between customized services and standardized services? a. Standardized services are more efficient and cost less than customized services. b. Unlike customized services, standardized services usually command a higher price. c. Standardized services are more flexible than customized services. d. Unlike customized services, standardized services respond to individual customers' needs.

a. Standardized services are more efficient and cost less than customized services.

Which of the following statements are true about global services marketing? (Check all that apply) a. The service offered in global markets may change based on consumer preferences. b. U.S. service industries have been successful in global markets because of their competitive advantages. c. The marketing mix elements will remain standard in all global markets. d. The United States is the world's largest exporter of services.

a. The service offered in global markets may change based on consumer preferences. b. U.S. service industries have been successful in global markets because of their competitive advantages. d. The United States is the world's largest exporter of services.

An important distribution objective for many service firms is to a. decide the number of outlets to use or the number of outlets to open during a certain time. b. define the unit of service consumption. c. simulate positive word-of-mouth communication among present and prospective customers. d. engage customers in postpurchase communication.

a. decide the number of outlets to use or the number of outlets to open during a certain time.

The gap model of service quality a. identifies areas that can cause problems in service delivery and influence customer evaluations of service quality. b. links service quality with the objectives of a business unit and a corporation. c. categorizes an organization's services into four groups based on their importance and effect on the growth of the organization. d. traces the stages of a service's acceptance from its introduction to its decline.

a. identifies areas that can cause problems in service delivery and influence customer evaluations of service quality.

Hebron organizes theatrical performances in his neighborhood every weekend and also holds training classes for those who are interested in theater and performance arts. In the context of product strategy, Hebron offers services that belong to the category of _____. a. mental stimulus processing b. information processing c. possession processing d. people processing

a. mental stimulus processing

Unlike private-sector service organizations, nonprofit organizations a. offer indirect benefits or benefits that are quite weak. b. market short-term, tangible products. c. use commercial advertisements for promotion. d. distribute their profits to stakeholders.

a. offer indirect benefits or benefits that are quite weak.

Public Service Announcement (PSA)

an announcement that promotes a program of a federal, state, or local government or of a nonprofit organization

nonprofit organization

an organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment

Level 4: Structural

at this level, the firm again uses financial and social bonds but adds structural bonds to the formula

______ means that services are less standardized and uniform than tangible goods—there is some variability of services. a. Intangibility b. Heterogeneity c. Inseparability d. Perishability

b. Heterogeneity

Susan goes to Magnira Spa to get a massage and asks for the best masseur in the spa. She knows that her experience depends on the quality of the masseur. Which of the following characteristics of service can be observed in this scenario? a. Perishability b. Inseparability c. Tangibility d. Homogeneity

b. Inseparability

_____ refers to the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed. a. Perishability b. Intangibility c. Heterogeneity d. Inseparability

b. Intangibility

_____ refers to the follow-up activities that a service firm might engage in after a customer transaction. a. Word-of-mouth communication b. Postpurchase communication c. Internal marketing d. Nonprofit organizational marketing

b. Postpurchase communication

_____ is the ability to perform a service dependably, accurately, and consistently. a. Tangibility b. Reliability c. Heterogeneity d. Perishability

b. Reliability

Which of the following refers to a personal information source? a. Managing the tangible items associated with a service b. Someone consumers admire or can relate to personally c. A concrete symbol of the service offering d. A follow-up activity that a service firm engages in

b. Someone consumers admire or can relate to personally

Which of the following statements is true of private-sector organizations? a. They focus on consumers who are strongly opposed to receiving their services. b. They give priority to market segments that are most likely to respond to particular offerings. c. They must complement nonprofit organizations instead of competing with them. d. They are pressured to serve the maximum number of people by targeting the average user.

b. They give priority to market segments that are most likely to respond to particular offerings.

To succeed in a global marketplace, a nonprofit service organization should a. charge a monetary price for free services. b. consider each country's cultural, technological, and political environment while designing the marketing mix. c. seek to achieve a profit for distribution to stockholders. d. provide services to those who are adequately served by profit organizations.

b. consider each country's cultural, technological, and political environment while designing the marketing mix.

A _____ approach encourages customer loyalty through intimate knowledge of individual customers (often referred to as customer intimacy) and the development of one-to-one solutions to fit customers' needs. a. social b. customization c. financial d. structural

b. customization

In thinking about relationship marketing in services, the least effective level of relationship marketing in the long term is: a. structural. b. financial. c. customization. d. social.

b. financial.

The practice of treating employees as customers and developing systems and benefits that satisfy their needs is called _____. a. personalized marketing b. internal marketing c. direct marketing d. global marketing

b. internal marketing

A service firm can create a strong organizational image by a. engaging in follow-up activities to get customer feedback. b. managing the physical environment of the service facility. c. using real customers in its advertisements. d. simulating positive word-of-mouth communication among customers.

b. managing the physical environment of the service facility.

Because services are inseparable, they cannot be tried before they are purchased. To counteract this, a service firm might: a. offer discounted service prices at off peak times. b. offer a guarantee for the customer's complete satisfaction. c. use a robot to standardize the service. d. offer free coffee and tea in the waiting room.

b. offer a guarantee for the customer's complete satisfaction.

In the gap model of service quality, gap 3 represents the gap between a. what customers want and what management thinks customers want. b. the service quality specifications and the service that is actually provided. c. the service that customers receive and the service they want. d. what the company provides and what the customer is told it provides.

b. the service quality specifications and the service that is actually provided.

_____ is the result of applying human or mechanical efforts to people or objects. a. A brand b. Value c. A service d. A stock

c. A service

_____ is a component of service quality that involves caring for and giving individualized attention to customers. a. Assurance b. Reliability c. Empathy d. Responsiveness

c. Empathy

In the context of service processes, which of the following is true of possession processing? a. It describes services that use brainpower directed at a customer's assets. b. It takes place when a service is directed at a customer. c. It occurs when services are directed at customers' physical belongings. d. It refers to services that are directed at people's minds.

c. It occurs when services are directed at customers' physical belongings.

Which of the following statements is true of the evaluation of the quality of services? a. Services tend to exhibit more service qualities than goods. b. Services can be quantified and stored to preserve their quality. c. Services tend to exhibit more credence qualities than goods. d. Services carry less experience qualities than goods

c. Services tend to exhibit more credence qualities than goods.

Which of the following statements is true of customized services? a. They are more efficient than standardized services. b. They usually command a relatively lower price. c. They respond to individual customers' needs. d. They are less flexible than standardized services.

c. They respond to individual customers' needs.

Which of the following is a difference between public service advertisements (PSAs) and commercial advertisements? a. Unlike commercial advertisements, PSAs promote profitable products. b. Unlike commercial advertisements, PSAs do not promote programs of a federal, state, or local government. c. Unlike a commercial advertiser, the sponsors of PSAs do not pay for the time or space. d. Unlike commercial advertisements, PSAs form a major source of income for the media platform that they use.

c. Unlike a commercial advertiser, the sponsors of PSAs do not pay for the time or space.

The U.S. service economy: a. is easily distinguishable from manufacturing firms. b. is mostly composed of landscaping, salon, and daycare service businesses. c. accounts for a significant portion of the U.S.'s economic output. d. is shrinking.

c. accounts for a significant portion of the U.S.'s economic output.

A key factor influencing the selection of a service provider is a. credence quality. b. the price of the products. c. convenience. d. the quality of the products.

c. convenience.

George believes that internal marketing is important for a goods manufacturing firm. However, Erick believes that internal marketing is more critical for a service firm than a goods firm. In this case, Erick's belief is most likely to be true because a. service firms have consistent inputs and outputs. b. service firms offer tangible services to customers. c. employees in service firms deliver the brand promise directly to customers. d. employees in service firms play an insignificant role in building relationships with customers.

c. employees in service firms deliver the brand promise directly to customers.

empathy

caring, individualized attention to customers

In thinking about target markets for nonprofit organizations, which of the following is true? a. Nonprofit organizations must compete against for-profit organizations for a target market's attention. b. The target markets of nonprofit organizations are generally difficult to reach. c. Nonprofit organizations segment their target markets by demographics only, making income the main factor in their marketing efforts. d. Customers in a nonprofit's target market may be reluctant or strongly opposed to receiving their services.

d. Customers in a nonprofit's target market may be reluctant or strongly opposed to receiving their services.

Which of the following statements is true of a service? a. It is easy to evaluate the quality of a service. b. It needs a different marketing process than the one used for goods. c. It is highly standardized and uniform. d. It involves a deed, a performance, or an effort that cannot be physically possessed.

d. It involves a deed, a performance, or an effort that cannot be physically possessed.

Which of the following statements defines a supplementary service? a. It is the most basic benefit a customer is buying. b. It is a service with consistent inputs and outputs. c. It is a service that can be stored or inventoried. d. It is a group of services that supports or enhances the core service

d. It is a group of services that supports or enhances the core service.

Which of the following statements is true of an organization's service mix? a. It should make a similar contribution from each part to achieve the organization's goals. b. It specifies that the organization should market only a single service. c. It requires a uniform level of financial support across different services offered by the organization. d. It represents a set of opportunities, risks, and challenges.

d. It represents a set of opportunities, risks, and challenges.

A pricing objective of a nonprofit organization is to a. either partially or fully defray costs. b. maximize sales. c. maximize returns on investments. d. achieve a profit for distribution to stockholders.

d. achieve a profit for distribution to stockholders.

The service offering can be viewed as a bundle of activities that includes the _____ service, which is the most basic benefit the customer is buying. a. inseparable b. heterogeneous c. supplementary d. core

d. core

In the context of service processes, _____ processing refers to services directed at people's minds. a. information b. people c. possession d. mental stimulus

d. mental stimulus

In the gap model of service quality, the gap between what a company provides and what a customer is told the company provides may include a. the inability of management to translate the customer's needs into delivery systems within the firm. b. the inability of management and employees to do what should be done. c. a lack of understanding or a misinterpretation of the customer's needs, wants, or desires. d. misleading or deceptive advertising campaigns promising more than the firm can deliver.

d. misleading or deceptive advertising campaigns promising more than the firm can deliver.

A small grocery store chain is looking to enhance its relationship marketing. If executives at the company want to reach a structural level of relationship marketing, they should: a. offer a loyalty card in which customers earn points to save on fuel at select gas stations. b. during checkout, give customers coupons for items they regularly purchase. c. send the customer a $10 off $100 purchase coupon in the mail. d. offer grocery delivery to customers with orders placed through a mobile app that saves previous shopping lists for convenience.

d. offer grocery delivery to customers with orders placed through a mobile app that saves previous shopping lists for convenience.

The main role of many nonprofit organizations is to a. compete with private-sector organizations rather than complement their efforts. b. develop those market segments that are most likely to respond to particular offerings. c. serve the minimum number of people by targeting the niche users. d. provide services to those who are not adequately served by private-sector organizations.

d. provide services to those who are not adequately served by private-sector organizations.

Diana went to a store to buy a new pair of sunglasses. Before buying, she assessed the color and appeal of the pair she liked. This is an example of a(n) _____. a. credence quality b. experience quality c. heterogeneous quality d. search quality

d. search quality

The goal of internal marketing is to: a. offer customers special rewards in an effort to earn their loyalty. b. remind employees of the company's service expectations through internal training and memos. c. offer financial incentives to employees who refer their friends and family to purchase the company's services. d. treat and reward employees well so that they provide excellent customer service

d. treat and reward employees well so that they provide excellent customer service.

information processing

describes services that use technology or brainpower directed at a customer's assets

Revenue-Oriented Pricing

focuses on maximizing the surplus of income over costs

involvement

many nonprofit organizations market products that elicit very low involvement or very high involvement

Pressure to adopt undifferentiated segmentation strategies

nonprofit organizations often adopt undifferentiated strategies by default

possession processing

occurs when the service is directed at customers' physical possessions

engaging in post purchase communication

post purchase communication refers to the follow-up activities that a service firm might engage in after a customer transaction

mental stimulus processing

refers to services directed at people's minds

sales promotion activities

sales promotion activities that use existing services or other resources are increasingly being used tto draw attention to the offerings of nonprofit organizations

operations-oriented pricing

seeks to match supply and demand by varying prices

people processing

takes place when the service is directed at a customer

Reliability

the ability to perform a service dependably, accurately, and consistently

Responsiveness

the ability to provide prompt service

nonprofit organization marketing

the effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets

Gap 3

the gap between the service quality specifications and the service that is actually provided

Gap 5

the gap between the service that customers receive and the service they want

Gap 1

the gap between what customers want and what management thinks customers want

Gap 2

the gap between what management thinks customers want and the quality specifications that management develops to provide the service

Gap 4

the gap between what the company provides and what the customer is told it provides

Perishability

the inability of services to be stored, warehoused, or inventoried

Intangibility

the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed

Inseparability

the inability of the production and consumption of a service to be separated; consumers must be present during the production

assurance

the knowledge and courtesy of employees and their ability to convey trust

complementary positioning

the main role of many nonprofit organizations is to provide services, with available resources, to those who are adequately serced by private-sector organization

core service

the most basic benefit the consumer is buying

Tangibles

the physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service

service

the result of applying human or mechanical efforts to people or objects

heterogeneity

the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods

Level 2: Social

this level of relationship marketing also uses pricing incentives but seeks to build social bonds with customers

internal marketing

treating employees as customers and developing systems and benefits that satisfy their needs

patronage-oriented pricing

tries to maximize the number of customers using the service