MKTG chp 13

Demand-based pricing most closely relates to the _____ of services. a) perishability b) intangibility c) heterogeneity d) customer contact aspect e) inseparability

a

Which of the following service providers are most likely to bundle-price their services? a) Cable television companies b) Retail stores c) Airlines d) Theaters e) Doctors

a

Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on a) news stories. b) a webpage. c) word of mouth. d) newspaper ads. e) television ads.

c

Kathy Adkins, owner of Adkins Styling Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty slots from earlier in the week were available on this Saturday afternoon. Her thoughts deal with the ___________ characteristic of services. a) credence b) heterogeneity c) perishability d) search e) inseparability

c

Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even unlimited night and weekend minutes. This is an example of a) time-based pricing. b) off-peak demand. c) demand-based pricing. d) time dependence pricing. e) bundled costing.

c

Marketers of services must deal with the challenges of balancing supply and demand and planning for peak and off-peak times. What characteristic of services creates these challenges? a) Inseparability b) Customer contact c) Perishability d) Heterogeneity e) Intangibility

c

The two levels of expectations that consumers generally have about services are a) acceptable and unacceptable. b) desired and undesired. c) reliable and unreliable. d) acceptable and desired. e) tolerable and desired.

d

There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and a) credibility. b) experience within industry. c) responsibility. d) employee empathy. e) product knowledge.

d

When a theater entices customers to see movies during the daytime by offering tickets at a reduced price, it is trying to solve the services marketing problem of a) inseparability. b) intangibility. c) customer contact. d) off-peak demand. e) heterogeneity.

d

Who judges service quality? a) Employees b) The company c) Independent raters d) Customers e) Marketers

d

Client-based relationships are least likely to be developed by a) towing services. b) accountants. c) beauticians. d) orthodontists. e) psychiatrists.

a

Any service provider that offers time-sensitive services receives most of its revenue during a) peak demand. b) heavy use time. c) the off-season. d) preferred demand. e) customer contact time.

a

Attributes which are assessed only during the consumption of a service are called a) tangibles. b) search qualities. c) experience qualities. d) use benefits. e) credence qualities.

a

Because practically all marketers provide some services, ___________ typically do not exist in today's business environment. a) pure goods b) pure services c) customer services d) service products e) tangible-dominant products

a

Clean, sharp looking employees with appropriate uniforms help assure customers about service quality and therefore address the _____ of services. a) intangibility b) perishability c) tangibility d) inseparability e) heterogeneity

a

Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda's recommendation addresses which of the following service features? a) Heterogeneity b) Intangibility c) Perishability d) Inseparability e) Homogeneity

a

Prudential Insurance uses "the rock" symbol to communicate stability and security to customers. This is Prudential's attempt to help customers better understand its services by a) emphasizing tangible cues in promoting the service. b) using word association. c) personalizing the selling of the service. d) utilizing publicity techniques to enhance the service. e) distributing the service directly through television.

a

Service activities are time-dependent, meaning that the service must be provided at a point in time when customers want to use it. This point in time is also known as a) peak demand. b) preferred demand. c) off-peak demand. d) high-contact time. e) high intensity time.

a

Services have three evaluation attributes: search qualities, experience qualities, and ___________ qualities. a) credence b) value c) perishable d) marketability e) credibility

a

Surveys, focus groups, and customer comment cards are all methods used by service companies to a) understand customer needs and expectations. b) set service quality specifications. c) establish guidelines for employee performance. d) manage service expectations. e) control service intangibility.

a

The continuum of tangibility goes from _____ on one end to _____ on the other end. a) service-dominant products; good-dominant products b) pure products; pure services c) rational products; irrational products d) mostly service goods; mostly product goods e) easy to see; not easy to see

a

The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ______ of services. a) heterogeneity b) customer contact aspect c) intangibility d) inseparability e) perishability

a

The heterogeneity characteristic of services provides marketers with tremendous opportunity to a) customize their services to meet unique individual needs. b) hold down the cost of providing services to customers. c) create standardized packages that will appeal to many customers. d) offer the same service as all of their competitors. e) develop relationship marketing with their customers.

a

The necessary interaction between service provider and customer that allows a service to be delivered is called a) customer contact. b) service exchange. c) marketing. d) relationship marketing. e) service contact.

a

Transamerica's pyramid-shaped building in San Francisco is used to symbolize strength, security, and reliability. This type of promotion is designed to address the ___________ characteristic of services. a) intangibility b) perishability c) heterogeneity d) inseparability e) customer service

a

Using appointments or reservations for scheduling delivery of services is an attempt to address the ___________ characteristic of services. a) perishability b) intangibility c) heterogeneity d) inseparability e) homogeneity

a

Which of the following best defines nonprofit marketing? a) Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment b) Marketing activities conducted by organizations other than business organizations c) Nonbusiness activities aimed at goals such as profit or return on investment d) Marketing activities aimed at getting the product to the retailers, through intermediaries e) The marketing activities conducted by individuals and organizations that are considered volunteer establishments

a

A first class airline ticket offers a ____ service of transportation as well as _______ services of drink and food service, special boarding rights, and extra customer service. a) primary; secondary b) core; supplementary c) bundled; extra d) complementary; main e) major; minor

b

An American West Airlines flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty American West flight from Chicago to Phoenix. This is an example of what kind of service pricing? a) Bundled b) Demand-based c) Supply-based d) Upfront e) Customer-based

b

Hair stylists find it challenging to market their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services? a) Intangibility b) Inseparability c) Perishability d) Heterogeneity e) Homogeneity

b

If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ___________ services. a) core b) supplementary c) bundled d) business e) complimentary

b

If a nonsmoker dines in a restaurant without a no-smoking section, then the overall quality of service experienced by the nonsmoking customer probably declines. This is an example of which of the following service characteristics? a) Perishability b) Inseparability c) Heterogeneity d) Intangibility e) Homogeneity

b

Janet sets up her new interior decorating business and advertises her expertise in high-quality draperies and other window treatments. One of her first customers is extremely dissatisfied with Janet's work, so Janet redoes the job at her own expense because she knows how powerful _____ is (are) for services and wants to stay in business. a) service expectations b) word-of-mouth communication c) zones of tolerance d) customer perceptions e) experience qualities

b

Piano teachers, tutors, attorneys, and consultants are most likely to price their services based on a) functions performed. b) time. c) objectives accomplished. d) demand. e) combination pricing.

b

Production and consumption of services must simultaneously occur due to the _____ characteristic of services. a) intangibility b) heterogeneity c) customer contact d) perishability e) inseparability

b

Tara finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to see exactly how they feel and fit. In other words, the jeans have many _____ qualities. a) experience b) search c) intangible d) credence e) assurance

b

The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called a) reliability. b) responsiveness. c) empathy. d) tangibles. e) assurance.

b

What should marketers do to promote the consistency and reliability of their services most effectively? a) Limit the number of employees in their organization b) Train employees and develop standard procedures for dealing with customers c) Encourage employees to be creative in solving customer issues and complaints d) Perform as much of the service as possible before the customer arrives e) Require employees to be shining, happy people all day long

b

Which of the following countries was the world's first service economy? a) England b) United States c) Sweden d) Canada e) Germany

b

Which of the following is a low-contact service? a) Childcare b) Website design c) Health care d) Manicure e) Legal services

b

Which of the following is most likely to be considered a business service? a) Housecleaning b) Consulting c) Haircutting d) Personal training e) Alaskan cruise

b

Which of the following services falls closest to the middle of the tangibility continuum? a) College education b) Dinner at the Olive Garden c) A new Ford Escape d) A custom built yacht e) A trip to Brazil

b

Which of the following statements about customer contact in services marketing is false? a) Service employees are important in creating satisfied customers. b) High-contact services are less expensive to deliver because they are typically equipment-based. c) The main principle of customer contact is that satisfied employees lead to satisfied customers. d) Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact services. e) Employee training programs are an effective way to ensure good customer contact and reduce problems.

b

___________ marketing includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit. a) Unit b) Nonprofit c) Organizational d) Individual e) Enterprise

b

Which of the following service providers are most likely to use demand-based pricing? a) Dentists b) Lawyers c) Doctors d) Hair stylists e) Cruise ships

e

A service is usually offered as part of a bundled package of services with a core service and one or more ________ services. a) basic b) tangible c) supplementary d) auxiliary e) other core

c

A sign in a doctor's office waiting room says "Please be courteous of the others waiting with you." The doctor's office is trying to positively influence the _______ aspect of services. a) tangibility b) perishability c) inseparability d) customer contact e) heterogeneity

c

A small private college in Tennessee paid a large sum of money to a marketing firm to study the college's current marketing strategy and help develop new strategies for attracting students. The college is having a difficult time evaluating the effectiveness of the marketing firm's work because this type of service has many a) search qualities. b) undefined parameters. c) credence qualities. d) experience qualities. e) unknown results.

c

An important difference between for-profit and nonprofit marketing is that a) there is no exchange in nonprofit marketing because the nonprofit organization receives something of value but does not give anything of value. b) marketing exists only in the for-profit organization. c) the goals of the nonprofit organization differ from the goals of the for-profit organization. d) a target market need not be determined in the nonprofit marketing scheme. e) there is no price in the marketing mix of the nonprofit organization.

c

As Stan and Anna Walicki meet with the account representative at Landmark Bank, they are shown a sample of what their monthly statement will look like. Providing such sample documents allows Landmark to add tangibility to which of the following service qualities? a) Experience b) Credence c) Search d) Perishability e) Inseparability

c

By installing ATMs, banks have increased production capacity and reduced the number of personnel. This results in a decrease in a) perishability. b) intangibility. c) customer contact. d) inseparability. e) customer service.

c

Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called ___________ quality. a) search b) experience c) credence d) tangible e) separable

c

In general, differences between goods and services are determined by the a) degree of labor intensiveness. b) type of target market. c) degree of tangibility. d) type of provider. e) degree of consumer contact.

c

In most service industries, customer-contact employees are a) valued as the most important employees in the organization. b) the best trained employees in the organization. c) the lowest-paid and least-trained employees. d) managers and other supervisory level employees. e) moderately paid personnel confined to strict dress codes.

c

In service marketing, the most important link to the customer is a) effective advertising. b) good word-of-mouth communication. c) well-trained contact employees. d) the tangible aspects of the service. e) exceptional service quality.

c

Offering pet owners who recommend Prize Pet Grooming to a friend $10 off their next grooming bill is a program designed primarily to a) increase perceptions of service quality. b) elevate expectations. c) encourage word-of-mouth communication. d) standardize the service offering. e) increase advertising effectiveness.

c

Personal trainers cannot complete their work without their clients present because of the _______ feature of services. a) perishability b) intangibility c) inseparability d) heterogeneity e) tangibility

c

Services are usually provided through the application of _______ directed at people or objects. a) tangible and intangible products b) physical labor c) human or mechanical efforts d) ideas and other intangible efforts e) knowledge and technology

c

The intangibility aspect of a service means that a) there is a lack of perceived quality compared to a tangible good. b) unused capacity cannot be stockpiled or inventoried for later use. c) consumers may have a problem evaluating service offerings. d) services are not produced at the same time they are consumed. e) services are not labor-intensive.

c

The level of interaction necessary between a customer and service provider in order to complete a service is called a) tangibility. b) client-based relationships. c) customer contact. d) consumer interaction. e) heterogeneity.

c

Tina, a waitress at the Riverfront Grill, is angry that a customer complained that his soup was cold because of her slow service. Riverfront owner Max Griffin reminds her that she must focus on service quality as defined by a) the health department. b) restaurant management. c) the customer's perceptions. d) temperature guidelines. e) general practices.

c

When service companies change high-contact services into low-contact services, the a) service becomes more expensive to deliver. b) quality of the service declines. c) service becomes less personalized. d) time required to deliver the service increases. e) service becomes less standardized.

c

Which of the following is not a service product? a) Maroon 5 concert b) Flight on Southwest Airlines c) A 100 percent service satisfaction guarantee d) Overnight stay at Holiday Inn e) Dry cleaning of a suit

c

Which of the following issues is least important in nonprofit marketing? a) Distribution b) Exchange c) Profits d) Negotiation e) Persuasion

c

Which of the following service characteristics results in variability of service quality yet provides the opportunity for customizing services to match the specific needs of individual customers? a) Homogeneity b) Perishability c) Heterogeneity d) Intangibility e) Inseparability

c

Which of the following service providers would typically call their customers "clients"? a) High school teachers b) Waiters c) Lawyers d) Dry cleaners e) Nurses

c

The owner of the Lords and Ladies hair salon has difficulty in standardizing and controlling the quality of service that the customers in his salon receive. This problem illustrates which of the following unique features of service? a) Intangibility b) Inseparability c) Perishability d) Heterogeneity e) Marketability

d

According to your text, one perspective from which to view services is as a ______ targeted at a(n) ________. a) sporting event; spectators b) concert; audience c) play; actors d) performance; audience e) presentation; spectators

d

Although it has a strong customer base, Sato Japanese Restaurant rarely attracts customers by methods other than word-of-mouth communication. The manager believes this can be explained by the restaurant's location in a rough area in the city and its run-down appearance. In other words, potential customers are most concerned about a) reliability. b) assurance. c) responsiveness. d) tangibles. e) empathy.

d

American Airlines runs a series of television commercials that show its personnel going out of their way to help customers. In addition to consumers, an important secondary audience for these ads is (are) a) the FAA. b) airline competitors. c) bus line customers. d) American Airlines employees. e) American Airlines shareholders.

d

Any human or mechanical effort that adds value to a product is called a) a service. b) an intangible. c) overhead. d) customer service. e) service marketing.

d

Because of a service's ___________, standardization and quality are difficult to control. a) intangibility b) inseparability c) homogeneity d) heterogeneity e) perishability

d

Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ______ aspect of services. a) heterogeneity b) perishability c) customer contact d) intangibility e) inseparability

d

Client-based relationships are most likely to be developed by a) funeral directors. b) electricians. c) installers. d) doctors. e) brick layers.

d

Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and a) distribution. b) tangible elements. c) management expectations. d) price. e) customer expectations.

d

In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to a) deliver on these promises and risk financial losses and the success of the company. b) promise less than they can actually deliver and keep customers away. c) make the appearance of their facilities consistent with their promises to customers. d) promise too much and cause customer expectations beyond what they can deliver. e) make the quality of their services too tangible in the eyes of the customer.

d

Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jim's difficulty in expanding his practice involves the aspect of service called a) slotting. b) perishability. c) credence. d) inseparability. e) heterogeneity.

d

Lauren is a concert promoter who works for pop star Justin Timberlake. She works very hard to make sure most of Justin's concerts are sold out because she understands the concept of perishability, which means a) because the concert is not tangible, customers will have a difficult time judging its quality in advance. b) the production of the concert and the consumption of the concert by the fans cannot be separated so tickets must be sold. c) a high level of interaction will exist between the customers and the musicians, which makes the customers' presence necessary. d) that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again. e) that each concert is different and customers will miss a unique experience if they are not present at the concert.

d

Machinery such as ATMs and online customer services can reduce the ______ that comes from increased contact with human employees. a) intangibility b) perishability c) inseparability d) heterogeneity e) tangibility

d

Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of a) perishability. b) heterogeneity. c) inseparability. d) intangibility. e) customer contact.

d

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and a) labor-intensiveness. b) orientation toward value. c) homogeneity. d) heterogeneity. e) specialization.

d

Symbols such as the Travellers' Financial Services umbrella are designed to help customers overcome the ________ of services. a) heterogeneity b) unpredictability c) inseparability d) intangibility e) perishability

d

The fact the services cannot be inventoried and then sold at a later date is called a) intangibility. b) heterogeneity. c) inseparability. d) perishability. e) nonstorability.

d

The growth of business services is largely attributed to a) increases in incomes and living standards. b) decreases in the consumption of products. c) increases in governmental expenditures. d) increases in the complexity and competitiveness of business environments. e) increases in population.

d

All of the following are elements of the inseparability characteristic of services except that a) consumers are involved in production. b) centralized mass production is difficult. c) consumption and production are simultaneous. d) many services cannot be performed without the customer being present. e) services are easy to standardize and control.

e

American Life uses leather-look portfolios and high-quality paper and printing for its life insurance policies in order to indicate a) the success of its business. b) the intangibility of its service. c) the tastes of its management. d) the inseparability of its agents and customers. e) the quality of its services.

e

Consumers look closely at service quality when comparing competing services because a) they perceive all services to be essentially the same. b) they typically have very few services from which to select. c) all services are priced about the same. d) quality is the only relevant service characteristic. e) services are very difficult to evaluate.

e

H&R Block, a major tax preparation firm, reported having a problem with its employees being inconsistent in the filing of returns. The firm is experiencing a problem with which of the following characteristics of the service offering? a) Tangibility b) Intangibility c) Perishability d) Inseparability e) Heterogeneity

e

Jack and Amy Douglas are purchasing their first home and have certain expectations for the mortgage company with which they are working. After a long series of "unexplainable" delays, Jack and Amy become very frustrated and decide to stay in their apartment at least another year. The mortgage company failed to provide service within Jack and Amy's a) specifications. b) desired responsiveness. c) perceptions of quality. d) service acceptance. e) zone of tolerance.

e

Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as a) partnerships. b) repeated customer contact. c) inseparable clientele. d) long-term customers. e) client-based relationships.

e

Many services have aspects that consumers may never be able to evaluate, even years after the purchase and consumption of the service. These attributes are called a) search qualities. b) performance attributes. c) experience qualities. d) immeasurable attributes. e) credence qualities.

e

Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach? a) Customers often use price as an indicator of quality, and Safe wants to be seen as a low-quality provider. b) This type of advertising makes insurance more tangible to the customer. c) Safe wants to reassure customers that they provide the highest level of service quality available. d) Because market conditions limit prices on auto insurance, Safe uses this approach to gain customers. e) For some services, customers look for the low-cost provider, which is what Safe claims to be.

e

Service industries account for ____ of the gross domestic product of most developed nations. a) more than half b) a small portion c) approximately 25 percent d) nearly all e) nearly three-quarters

e

The main characteristic of a ___________ is that customers are satisfied to the point that they use a service repeatedly over a period of time. a) service relationship b) professional marketer c) high-contact service d) heterogeneous service e) client-based relationship

e

The marketing channels for services are usually a) complex and multifaceted. b) characterized by two to three intermediaries. c) dependent on the geographical location of the consumer. d) determined by the customer. e) direct from provider to customer.

e

The more __________ involved with delivering a service, the greater the degree of heterogeneity. a) mechanical efforts b) phone contact c) perishability d) tangibility e) human labor

e

What are the three primary ways that marketers deliver services? a) Over the phone, online, or in-person b) Continuously, periodically, or on demand c) At the customer's home, in-person, or by telecommunications d) Through service centers, delivery vehicles, or the mail e) Service facilities, customer's home, or from a distance

e

Which of the following factors have contributed the least to the growth of services in the U.S. economy? a) Increased interest in travel and entertainment b) Increased number of women in the workforce c) Increased proportion of older people in the United States d) Increased interest of Americans in fitness and recreation e) Increased number of high-tech goods

e

Which of the following is the best example of a high-contact service? a) Appliance repair b) Newspaper delivery c) Dog training d) Interior decorating e) Plastic surgery

e

Which of the following products associated with weddings is most likely to be considered a service? a) Wedding cake b) Floral arrangements c) Bridal gown d) Reception hall e) String quartet music

e