Marketing Exam 2 Chapter 13

Which of the following service providers would typically call their customers "clients"?

Lawyers

Which of the following service providers are most likely to use demand-based pricing?

cruise ships

Who judges service quality?

customers

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

demand-based pricing.

The marketing channels for services are usually

direct from provider to customer.

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

emphasizing tangible cues in promoting the service.

Because of service perishability, it is difficult to price services in a manner that smoothes fluctuations in demand.

false

There is no way to combat the supply-demand problem associated with the perishability of services.

false

Because of a service's ___________, standardization and quality are difficult to control.

heterogeneity

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and

heterogeneity.

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

inseparability.

Clean, sharp looking employees with appropriate uniforms help assure customers about service quality and therefore address the _____ of services.

intangibility

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

intangibility

Any service provider that offers time-sensitive services receives most of its revenue during

peak demand

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

peak demand.

Using appointments or reservations for scheduling delivery of services is an attempt to address the ___________ characteristic of services.

perishability

The fact the services cannot be inventoried and then sold at a later date is called

perishability.

Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and

price

In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to

promise too much and cause customer expectations beyond what they can deliver.

A service is usually offered as part of a bundled package of services with a core service and one or more ________ services.

supplementary

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

that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again.

An important difference between for-profit and nonprofit marketing is that

the goals of the nonprofit organization differ from the goals of the for-profit organization.

In most service industries, customer-contact employees are

the lowest-paid and least-trained employees.

Piano teachers, tutors, attorneys, and consultants are most likely to price their services based on

time.

Which of the following products associated with weddings is most likely to be considered a service?

String quartet music

Which of the following countries was the world's first service economy?

United States

When service companies change high-contact services into low-contact services, the

service becomes less personalized.

Client-based relationships are least likely to be developed by

towing services.

Client-based relationships are most likely to be developed by

doctors

Of the five dimensions of service quality, the most important is

reliability

Which of the following is similar for both for-profit and nonprofit marketing?

Ability to use effective marketing activities

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?

Demand-based

Which of the following services falls closest to the middle of the tangibility continuum?

Dinner at the Olive Garden

Select the true statement about nonprofit marketing.

Major nonprofit marketers in the United States are social causes and charitable organizations.

What should marketers do to promote the consistency and reliability of their services most effectively?

Train employees and develop standard procedures for dealing with customers

The intangibility aspect of a service means that

consumers may have a problem evaluating service offerings.

The necessary interaction between service provider and customer that allows a service to be delivered is called

customer contact

Most products possess a certain degree of intangibility.

true

___________ marketing includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit.

Nonprofit

In general, differences between goods and services are determined by their

degree of tangibility.

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

responsiveness.

___________ quality is defined as customers' perception of how well a service meets or exceeds their expectations.

service

Consumers look closely at service quality when comparing competing services because

services are very difficult to evaluate.

Any human or mechanical effort that adds value to a product is called

customer service

The more __________ involved with delivering a service, the greater the degree of heterogeneity.

human labor

The growth of business services is largely attributed to

increases in the complexity and competitiveness of business environments.

Which of the following is a low-contact service?

website design

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?

Heterogeneity

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?

Heterogeneity

Which of the following statements about customer contact in services marketing is false?

High-contact services are less expensive to deliver because they are typically equipment-based.

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?

Inseparability

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?

Inseparability

___________ is the value of the benefit that is given up by selecting one alternative rather than another.

Opportunity cost

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?

Perishability

Which of the following is the best example of a high-contact service?

Plastic surgery

Services have three evaluation attributes: search qualities, experience qualities, and ___________ qualities.

credence

High-contact services are very expensive to deliver because they are equipment-intensive.

false

Personal trainers cannot complete their work without their clients present because of the _______ feature of services.

inseparability

Service industries account for less than 50 percent of the U.S. gross domestic product.

False

Which of the following factors have contributed the least to the growth of services in the U.S. economy?

Increased number of high-tech goods

According to the text, the direct consumers of a nonprofit organization's ideas or services are called its _________ public.

client

The main characteristic of a ___________ is that customers are satisfied to the point that they use a service repeatedly over a period of time.

client-based relationship

A university's student body would be considered its ___________ public, and parents, alumni, and trustees would be included as its ___________ public.

client; general

By installing ATMs, banks have increased production capacity and reduced the number of personnel. This results in a decrease in

customer contact.

The level of interaction necessary between a customer and service provider in order to complete a service is called

customer contact.

The heterogeneity characteristic of services provides marketers with tremendous opportunity to

customize their services to meet unique individual needs.

All of the following are elements of the inseparability characteristic of services except that

services are easy to standardize and control.

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.

supplementary

An advantage of heterogeneity is that services can be customized.

true

Distribution for nonprofit organizations is

typically characterized by short channels.

In service marketing, the most important link to the customer is

well-trained contact employees.

Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on

word of mouth

Which of the following is not a service product?

A 100 percent service satisfaction guarantee

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. Answer

perishability

The U.S. economy is the world's first service economy.

true

Because practically all marketers provide some services, ___________ typically do not exist in today's business environment.

pure goods

The continuum of tangibility goes from _____ on one end to _____ on the other end.

service-dominant products; good-dominant products

Goods can be defined in terms of their physical attributes, but services cannot because they are intangible.

true

Services can involve both human and mechanical efforts.

true

Which of the following is most likely to be considered a business service?

Consulting

Which of the following service providers are most likely to bundle-price their services?

cable television companies

Service industries account for ____ of the gross domestic product of most developed nations.

nearly three-quarters

According to your text, one perspective from which to view services is as a ______ targeted at a(n) ________.

performance; audience

Which of the following issues is least important in nonprofit marketing?

Profits

Select the true statement regarding nonprofit marketing.

Segmentation techniques used to identify target markets in for-profit businesses are also applicable to reaching nonprofit target markets.

What are the three primary ways that marketers deliver services?

Service facilities, customer's home, or from a distance

The two levels of expectations that consumers generally have about services are

acceptable and desired.

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.

core; supplementary

This type of communication is important in service promotion because of heterogeneity and the intangibility of services.

word of mouth