ECO Chapter 13

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

credence qualities

High-contact services typically require that the

customer go to the production facility

It is easier for administrators to evaluate the performance of professors or social workers than it is for sales managers to evaluate the performance of salespeople in a for-profit organization.

false

Deanna asks Beverly what housecleaning service she would recommend in Oakview. Beverly responds that Pristine Cleaning is great if you can be assured that Tasha will be the person assigned to your house. Beverly's recommendation addresses which of the following service features?

heterogeneity

The concept of opportunity cost is important in determining the price paid by an individual for a nonprofit product.

true

The perishability of services means

when demand is low the unused capacity is lost forever

If Ramada Inn 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.

bundled

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

client-based relationships

An American Airlines flight from Dallas to Houston was nearly full, and the tickets were more expensive than the almost-empty American Airlines flight from Chicago to Phoenix. This is an example of what kind of service pricing?

demand-based

Felicity 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. Felicity was trying to overcome the ____ aspect of services.

intangibility