MAR 3023 Chapter 12 LearnSmart
One of the traits of service marketing is ________, meaning the service must be delivered at a specific time or it is lost.
perishability
For which of the products would a consumer be most likely to rely on personal sources of information like early adopters and opinion leaders when evaluating it for purchase?
a product high in credence properties
Which statement regarding relationship marketing and service providers is true?
Encounters with customers provide opportunities to develop bonds with customers that can lead to customer loyalty.
A gap analysis focuses service providers on the difference between ______.
consumer expectations and experiences of service quality dimensions
What two general trends are expected in the services industry in the future?
-expanded variety of choices -new and better services
A Singapore Airlines ad may show the airline's new seats and emphasize their size in order to address which issue that is unique to services?
Intangible
Because of the inseparability of services, which of the following is true about the place (or distribution) of them?
Intermediaries involved in the distribution are rare.
Ray is the manager of a sandwich shop. He recently received a complaint from a customer unhappy with the service because it took too long to get the food. There was only one employee making sandwiches, resulting in a long line. Ray apologized to the customer and sent her a coupon for a free sandwich. How can Ray best use a gap analysis here?
Ray can identify quick service as an expectation of his customers, and he can schedule labor accordingly.
are intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
Services
A customer contact audit is done by ______.
creating a flowchart of the points of interaction between the consumer and the provider
Off-peak pricing helps service organizations by ______.
helping to balance consumer demand
Movie theaters attempt to balance consumer demand for their services by charging less for matinee showings, which is an example of ________ pricing.
off-peak
To address the intangible nature of her services and allow patients to compare them to those of others, a medical provider may ______.
offer cues to customers such as comfortable waiting rooms and sparkling clean examination rooms with her diplomas on the wall
In services marketing, netnography is the use of _______.
online information about consumer opinions, experiences, and behaviors in order to better understand service consumers Need help? Review these concept resources.Read
What are two ways that firms try to reduce the inconsistency of services?
-through employee training programs -by standardizing services
What is the primary reason there is greater inconsistency in services than in tangible goods?
The people who provide services vary in capability or daily performance.
Due to the fact that services are intangible and more difficult to describe, ________ is very important because it is a means of differentiation and helps to convey an image of quality.
branding
Home Depot's self checkout is an example of one classification of services, service delivery ______.
by equipment
Allegra wants to purchase a cruise to Alaska. In the search process, she discovers this purchase is different from an expenditure on a car in that the cruise ______.
cannot be easily separated from the service providers such as the stewards and crew
A service provider can better understand the entire sequence of steps in a service process by conducting a(n) ________ audit, making a flowchart of the interaction points for consumers and itself.
customer contact
A service process that is intentional and planned, consistent between occurrences, differentiated from other service offerings, and relevant and valuable to the target market can be developed through ______.
customer experience management
A service organization that is attempting to reduce inconsistency may consider a change from ______.
delivery by person to delivery by equipment
Much more than when marketing products, service providers such as seaside hotels and restaurants have a dilemma of matching ______.
demand and capacity
Services marketing differs from that of tangible goods, and many firms have adopted a strategy to ______.
manage additional elements, on top of product, price, place, and promotion
Internal marketing focuses on the firm's ______.
employees
There may be a great deal of interaction between a service provider and a consumer in which they co-create value together. In such situations, the customer perceives a high degree of ________ between the service provider and the company he or she represents.
inseparability
A consumer can see and touch a product such as a new laptop computer, but he cannot touch or feel the service he hires to fix a computer. This example illustrates the fact that services are ______.
intangible
The physical environment is important in the delivery of services because ______.
it provides physical evidence, and thus helps convey an image to the consumer
The ________ factor for services includes not only "what" gets created but also "how" it is created.
process
The ________ factor for services refers to the actual procedures, mechanisms, and flow of activities by which the service is created and delivered.
process
Efforts to influence consumer demand for a service with changes in marketing mix elements is known as ________ , Incorrect Unavailable management.
capacity
What distinguishes organizations as either for-profit or nonprofit?
their tax status
Capacity management emphasizes ______.
efforts to influence consumer demand, since services are both inseparable and perishable
In order to meet customer expectations and sustain customer loyalty, firms that engage in internal marketing focus on what three things?
-employee attitudes -employee skills -employee commitment
Which of the following are typical ways that a service can be classified?
-Profit or nonprofit -Delivery by person or equipment
Which two of the following would be considered services?
-an airline trip -financial advice
Which two items are considered to be inventory costs of services?
-costs associated with equipment needed to provide a service -paying a person to provide a service
Which of the following can be sources of variability in service delivery? (Select all that apply)
-differences between service provided by the same stylist at various times of the day, week, or month -differences between the service provided by two stylists working in the same salon -differences in appointment scheduling at two different branches of the same salon
A surgeon cannot perform two surgeries at once, a hairdresser cannot wash and style three clients' hair simultaneously, and an airline can't have someone sit in an airplane seat on yesterday's flight. Which two of the following create challenges for service providers in terms of productivity?
-inseparability -perishability
Which two factors are unique with respect to services, and are part of the four I's?
-inventory -inseparability
Which of the following influence a consumer's expectations of a service? (Select all that apply)
-past experiences -word-of-mouth communications -promotional activities
In addition to the traditional four Ps of the marketing mix, what are additional factors that also require effective management within service organizations? (Select all that apply)
-process -physical environment -people
What are benefits for consumers of having a relationship with a service provider? (Select all that apply)
-reduced stress due to a repetitive purchase process -an absence of switching costs -customized service delivery
What are two primary factors that are likely to result in changes to the services industry in the future?
-technological development -social imperative for sustainability
Why is price an important indicator of quality that consumers use when purchasing services?
Because services are intangible, evaluating quality directly is difficult.
Which of the following are reasons that service marketers rely heavily on branding?
Branding is a means of differentiation. Strong branding makes introduction of new services easier. Branding helps convey an image of quality.
What is a disadvantage of some self-service technologies like ATMs or grocery store scanning stations?
Consumers may perceive them as less personal.
Which of the following are reasons that services are difficult for consumers to evaluate?
Services cannot be displayed or demonstrated prior to purchase. Service providers may vary with each delivery of the service.
Which statement about services in the U.S. economy is true?
The value of services as a portion of U.S. GDP is growing.
What does it mean to say that services are generally considered to be intangible?
They cannot be held, touched, or seen before purchase.
Services can be classified as to whether they are delivered by people or equipment, whether they are for-profit or nonprofit, and whether or not they _______.
are government sponsored
The integration of the marketing mix with efforts to influence consumer demand is known as ______.
capacity management
Off-peak pricing is ______.
charging different prices during different times of the day or week to reflect variations in demand.
Because service providers vary in their delivery of a service, consumers have difficulty ______.
evaluating services
Services that can be evaluated only after purchase and during consumption are said to have ________ properties, while those services that are impossible to evaluate even after purchase and consumption have ________ properties.
experience; credence
One of the most effective methods to assess how well an organization is delivering service to its consumers is use a(n) ________ analysis, questioning them on their expectations and experiences.
gap
Which of the following has been found to account for inflated customer satisfaction levels for services?
giving unauthorized free products or services to customers
Unlike for-profit organizations, the excess revenue a nonprofit organization has accumulated ______.
goes back to the organization to continue to fund its mission
The United States Postal Service would best be classified as which of the following types of service?
government-sponsored
The service continuum is a scale that describes an organization's offerings in terms of ______.
how tangible or intangible they are
When a service provider is available but there is no demand for the service, this is known as ______.
idle production capacity
One difference between products and services is demonstrated by a visit to a doctor's office, where the doctor delivers the service at the same time the customer receives it. This refers to what feature of services?
inseparability
Because a service, either completely or partially, has qualities that cannot be touched, held, seen, tasted, or otherwise evaluated prior to purchase, it is described as being ______.
intangible
Sahil is having trouble deciding on which college to attend. While there are buildings, classrooms, and libraries to evaluate, the most important part of the service, the actual teaching and learning, is ________, making his decision more complex.
intangible
The idea that a service organization must focus on its employees before successful programs can be directed at customers is known as ______.
internal marketing
Because of the high salaries of pilots and the expensive equipment, airlines have higher ________ costs in comparison to many other industries.
inventory
If a physician is paid to see patients but no one schedules an appointment, the fixed cost of the physician's salary results in a high ________ carrying cost.
inventory
While self-service technologies such as ATMs and in-store kiosks create value for consumers, a disadvantage is that they are perceived to be ______.
less personal
Recent WTO estimates show that all countries combined exported ________ valued at $19.4 trillion and ________ valued at $5.2 trillion.
merchandise; commercial services
United Airlines flies a plane from LA to NY at 8 o'clock on Tuesday morning only 25 percent full. On Friday, the same flight is overbooked by 15 percent. United is unable to capture and save the unused seats from the previous flight, and instead has to pay passengers to fly on future flights. This is an example of the ________ of services.
perishability
For which of the following products would Luis be most likely to ask a coworker or family member about his or her purchase of the same product to gain information on the service's credence properties?
physician's services
Because services are intangible and there may be few other available cues for the customer to judge, they frequently use ________ as an important indicator of a service's quality.
price
Emphasis on availability, location, quality, and service, as well as a physical representation of the service encounter should be included in an organization's ______.
promotional programs
Nonprofits like public schools and hospitals often use ________ in the form of public service announcements to disseminate their messages.
publicity
Lilly went to the Yummy Fork for lunch, and her food arrived in a timely manner and was hot and tasty. However, the server took a long time to bring her check, which caused her to be late to work. She later posted a negative comment about the Yummy Fork on a website review. Which one of the service dimensions below was not adequately delivered by the restaurant?
responsiveness
The scale that defines what companies bring to the market, from good-dominant to service-dominant offerings, is known as the ___________continuum.
service
Customer experience management is ______.
the process of managing the entire customer experience of a service offering
Idle production capacity occurs when ______.
the service provider is available but there is no demand for the service
Which product has the highest degree of service on the service continuum?
the theater
Despite the inventory costs, service providers must maintain production capacity because of the importance of ________ to today's customers.
time
As it relates to the place (distribution) element of the marketing mix, what two things become the tangible components of a service?
-the distribution site -the service deliverer
Along with knowing if a service is delivered by people or equipment, and whether or not the organization is for-profit or nonprofit, another way to classify services is based on whether or not they are ______.
government sponsored
Management of the physical environment for services is sometimes known as ________ management.
impression
Esperanza has realized that she does not enjoy taking a taxi to work because there is substantial ________ in the delivery of the service depending on who is driving her cab that day.
inconsistency
Modern products lines typically ensure that the quality of durable goods remains at stable levels, but because services depend on the people who provide them, quality may vary from person to person or day to day, in what is known as the ________ of services.
inconsistency
Standardization of practices and intense training for employees who work in guest relations at the Ritz-Carlton will help to minimize the negative effects of ________ in services.
inconsistency
A student may be dissatisfied with her education, despite attending a highly regarded university, if she dislikes her instructors, advisers, or administrators. This type of problem arises due to the _______ of services.
inseparability