MKT Ch. 13

The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. Employees are instructed to always address a guest by name, if possible. To accomplish this, employees are trained to listen and observe carefully to determine a guests name. Which service characteristics is this an example of?

A- Empathy

means allowing employees to make decisions about how service is provided to customers.

A- Empowerment

Along the service-product continuum, which of the following would be considered the most product dominant?

A- Grocery Store

Which of the following refers to variability in a service's quality?

A- Heterogeneity

There is an old saying, "If you have to ask the price of a yacht, you cannot afford it." Products like yachts are most likely to be associated with

A- Prestige marketing

When firms set prices similar to those of competitors, they are following a strategy of

A- competitive parity

A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n) ________________ price elasticity demand.

A- inelastic

The price elasticity of demand for a specific deodorant is 1. The market for this product is considered

A- inelastic

By providing good customer service, firms their products

A-Add value too

David's marketing research returned the finding that customers were staying away from his bookstore bc of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) gap

B- Knowledge

Consumers generally believe that _______ is one of the most important factors in their purchase decisions.

B- Price

Health clubs often use a low, introductory offer price to get people to join their club. These low prices represent a ______________ pricing strategy.

B- Sales orientation

When Ursula decides how to price new products in her gift store, she measures the value of her product offerings against those of the other stores in her area. Ursula uses a __________________ pricing strategy.

B- competitor oriented

When it comes to measuring consumers' price sensitivity, products are viewed as either

B- elastic or inelastic

cross price elasticity is the

B- percentage change in quantity demanded of product A compared to the percentage change in price of product B.

A demand curve shows the relationship between _____ during a specific period.

B- price and demand

All of the following are included in the full price of a product or service except

B- the price of alternative products or services

When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a gap.

B-Communications

The Service Gaps Model is designed to highlight those areas where

B-Customers believe they are getting less or poorer service than they should

A service is any intangible offering that involves a deed, performance, or effort that

C- Cannot be physically touched

Along the service-product continuum, which of the following would be considered the most service dominant?

C- Doctors Office

Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how _______ impacts demand for products.

C- the income effect

If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a __________ gap exists.

C-Standards

In developing marketing strategies, why is price often the most difficult of the four P's to manage?

D- Because it is the least understood element of the marketing mix

When marketers say that services are , they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can.

D- Intangible

The marketing of services differs from product marketing because services are all of these except

D- Renewable

Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers'__________, the difference between what her customers want and what they will accept before going elsewhere.

D- Zone of tolerance

Customers must see value in a product or service before they are willing to exchange time or money to obtain it, but not all customers see the same value in a product. To analyze how many units will be sold at any given price point, marketers draw on

D- a demand curve

According to a typical demand curve, the higher the price,

D- the lower the quantity consumers will buy

All of the following are included in the five C's of pricing except

E- Collaboration

When CarMax promises a "no-haggle" pricing structure, it exhibits _________ because it provides additional value to potential used car buyers by making the process simple and easy.

E- Customer Orientation

The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a

E- Delivery Gap

Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell. Naomi is using a _______________ pricing strategy.

E- Target return

The price elasticity of demand for a teeth-whitening kit is -1. The market for this product is considered

E- elastic

Sharon knew that her established customers liked her product much better than her competitor's. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Sharon was considering

E- premium pricing