MKTG 321: TEST 2 ch 13

If a company wants to improve the consistency and reliability of its services, which of the following strategies is most effective?

Establish standard procedures and train employees

_____ qualities of a service can only be assessed during the consumption of a service.

Experience

Max has recently started his own business and needs several services from other companies to run his business. Which of the following is most likely to be considered a service product for his company?

Internet access for the office

Which is the most typical distribution channel used in nonprofit organizations?

Nonprofit organization, client

Which of the following is a way that a movie theater can address the issues of perishability of services?

Offer discounted matinee rates to movies shown early in the afternoon.

Which of the following is a way that a restaurant can address the issues of perishability of services?

Offer happy hour specials to attract customers before dinner.

Geico advertises that you can save 15% or more on auto insurance by switching to Geico. Which of the following best describes Geico's approach?

Since many customers see auto insurance providers as similar in quality, Geico is claiming to be lower in price.

Anne is organizing a beach vacation for her family. Which of the following expenses for the trip is not a service product?

Suntan lotion

Which of the following is not a service product?

Technical support for a computer

Which of the following statements about nonprofit marketing is true?

The basic aim of a nonprofit organization is to obtain a desired response from a target market.

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

To improve quality and ensure good customer contact, employee training programs are important.

Paul is a service provider for a low-contact type of service. Paul is most likely which of the following?

a dry cleaner

Peak demand is when

a service provider that offers a time-sensitive service receives most of its revenue.

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

acceptable and desired

Heterogeneity increases as the _____ increases.

amount of human labor

The knowledge and competence of employees and the ability to convey trust and confidence is an important dimension of service quality called

assurance

Service marketers typically use one of three ways to deliver services. The three ways are

at the provider's facility, at the customer's home or business, and at arm's length.

Tiffany is attending college paid for by a scholarship from Society of Women Engineers, a nonprofit educational organization that tries to establish engineering as a desirable career option for women. Tiffany is a member of their

client publics

Service companies typically hope that customers are extremely satisfied with the service they provide. That way, the satisfied customers will use the service repeatedly over time. This service feature is known as _____.

client-based relationships

For the Special Olympics, the athletes competing would be considered its _____ publics, while the athletes' parents, the coaches, and donors would be included in its _____ publics.

client; general

All of the following are elements of the perishability characteristic of services, except that

consumption and production are simultaneous

The most important link to the customer in service marketing is

contact employees

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

A stay at a five-star hotel includes the _____ service of a room and bed for a night and _____ services of a concierge, a fitness center, and a pool and spa.

core; supplementary

Many people do not go to see their doctor to get a physical exam because they do not know whether getting a physical exam is worthwhile. This aspect of a physical exam is called _____ quality.

credence

Larry hired an accountant to complete his tax return. The accountant was able to get Larry a refund, but Larry is having a difficult time finding out whether the accountant he hired got him the largest refund possible. This is because the accountant's work is typical of service firms in that it has many

credence qualities

Some grocery stores have installed self-checkout lanes, which allow more shoppers to checkout at once while simultaneously reducing the number of cashiers needed. This results in a decrease in

customer contact

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

customer contact

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

customer service

The quality provided by a service company is judged by its

customers

For a service, credence qualities are attributes that

customers may be unable to evaluate even after purchase and consumption

A flight on American Airlines for Thanksgiving weekend will cost more than a ticket on the same flight earlier in November. 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 P.F. Chang's

Rich's Auto Lube offers customers 10% off on their next service if they provide proof that they have posted a positive review on a social media site. This program is designed to

encourage online viral communication.

In a nonprofit organization, the direct consumers of the product are called donor publics and indirect consumers are called client publics.

false

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

false

Service quality is defined by compliance with a set of specifications.

false

Brian is speaking to his sister about a meeting he had today with one of his clients. The fact that Brian is referring to his customer as a client suggests he is most likely a _____.

financial advisor

Client-based relationships are least likely to be developed by

flight attendants

Landscapers, dry cleaners, and doctors are most likely to price their services based on ____, while psychologists, lawyers, and marriage counselors are likely to price their services based on ___.

functions performed; time

Lindsey has been a troop leader of the Girl Scouts, a nonprofit youth organization for girls, for several years. In her position, she leads the troop members through meetings, activities, and outings. Lindsey is a member of the Girl Scouts' ________________.

general publics

Compared with goods marketers, service providers are more likely to promote training and certification of personnel, availability, price, and

guarantees

Jody believes she is always smiling and friendly during her job as a waitress, which made her surprised to hear that results of a customer survey said she was serious and unapproachable. Her boss reminded her that she has to focus on service quality as defined by

her customers' perceptions.

A customer is looking for a service that meets his or her specific needs, but knows this may result in variability of service quality. Which service characteristic does this situation reflect?

heterogeneity

A grocery store recently discovered that it is having a problem with its checkout clerks being inconsistent in how they interact with the customers. The grocery store is having a problem with which of the following characteristics of the service offering?

heterogeneity

Because of a service's _____, employee training and the establishment of standard procedures can be important to help increase consistency and reliability.

heterogeneity

Ben owns a wedding planning company that specializes in unique and eccentric weddings. Recently, he has been trying to improve the quality of the service received by the company's clients, but has experienced difficulty finding ways to standardize and control the quality. Ben's problem illustrates the _____ feature of services.

heterogeneity

Brian asks his friend Gordon for recommendations for a pediatrician for his children. Gordon tells him that KidsHealth is a great practice if he can get Dr. Fusco assigned to his children. Gordon's recommendation addresses which of the following service features?

heterogeneity

Companies replacing in-person services with automated services such as banks using ATMs and online banking, grocery stores using self-checkout lanes, and airlines using self-check-in kiosks reduce the _____ that comes from contact with human employees.

heterogeneity

Hannah runs a housekeeping company that has two dozen housekeepers on staff. As part of their employment, Hannah has all of her housekeeping attend a two-day training seminar every year. The training seminar helps address problems associated with

heterogeneity

Kaitlynn is the owner of a local fast-food hamburger chain. She recently saw a magazine article featuring a new machine that could cook and assemble burgers without needing employees to handle the burgers. She is thinking of purchasing the new machine since it would help address problems associated with ______________.

heterogeneity

Lynn is always distracted by the end of her work day and the last haircut she gives each day is usually the worst one. This is an example of the _____ of services.

heterogeneity

Nicky works in the marketing department for a chain of high-end salons and is updating its marketing campaign. She is hoping to make the chain's service more tangible to potential customers, so she is planning on featuring

images of the service areas and the hairdressers that work at the salon.

The level of intangibility of a service

increases the importance of brand image when a customer is deciding which provider to purchase.

A restaurant hangs a sign on the front window that states, "No shoes, no shirt, no service." The restaurant is trying to positively influence the _____ aspect of services.

inseparability

Doug had tickets to attend a Broadway play with his family. When they arrived at the theater, they were disappointed to find out that the star of the show was unable to perform and that the understudy would be performing the lead role instead. This is an issue regarding the _____ quality of services.

inseparability

It is difficult for surgeons to standardize each type of surgery performed because the patient must be present and involved in the surgery. Because of differences in bodies, each surgery will be somewhat different. This illustrates which of the following unique features of services?

inseparability

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. Jason's difficulty in expanding his practice involves the aspect of service called _______.

inseparability

Massage therapists cannot complete their work without their clients present because of the ____ feature of services.

inseparability

Willie is a mechanic and is hoping to increase revenue. He is hoping to schedule more cars, but every timeslot at his auto shop is almost always filled. Willie's difficulty in expanding involves the aspect of service called

inseparability

Liz recently moved to a new town and wanted to find a new doctor. She looked at several doctors' offices to view their location, their cleanliness, and their waiting rooms before she finally decided on which doctor to visit. Liz was trying to overcome the issue associated with the _____ aspect of services.

intangibility

Service businesses try to communicate a higher level of quality to potential customers by having clean, well-lit, attractive physical facilities. This is an attempt to address the ____ characteristic of services.

intangibility

Service marketers take steps to assure their customers about the quality and professionalism of the service. In this way, service marketers are trying to address the challenge of the service characteristic of

intangibility

The bull logo used by Merrill Lynch is used to symbolize strength and confidence in the company's service offerings. In promoting the company, the bull is designed to address the _____ characteristic of services.

intangibility

Daisy was watching TV recently and saw a commercial for a nursing home close by. The commercial highlighted the residents' rooms as well as the nurses and other personnel at the nursing home. This ad was most likely designed with the goal of

making the intangible aspects of the nursing home more tangible

The four factors that affect a customer's evaluation of a service are the analysis of customer expectations, service quality specifications, employee performance, and

management of service expectations.

Each of the following is a method that can be used by service companies to understand customer needs and expectations except

market segmentation

Zach has just opened Tri-State Partners and has the need for several business services from other companies. Which of the following is most likely to be considered a service product for Zach's business?

parking lot maintenance

A time-sensitive service needs to be concerned with _____, the point in time around which a significant number of customers desire the service.

peak demand

A service has six basic characteristics, that is, intangibility, inseparability of production and consumption, heterogeneity, client-based relationships, customer contact, and

perishability

Andrea, a pediatrician, had several patients call on Thursday afternoon to schedule last-minute appointments because their children were sick. Earlier in the week, however, she had several cancellations. She wishes some of the appointment times from earlier in the week were available on Thursday or Friday. Andrea's problem deals with the ____ characteristic of services.

perishability

If a restaurant tries to attract diners to eat dinner at the restaurant from Monday to Thursday by offering half-price appetizers on those days, it is trying to solve the marketing problem of

perishability

Kate, owner of K's Tanning Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty tanning beds from earlier in the week were available on this Saturday afternoon. Kate's problem deals with the ____ characteristic of services.

perishability

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

personal training

The heterogeneity characteristic of services provides marketers with tremendous opportunity to

provide customers with services that match their individual needs.

Client-based relationships are most likely to be developed by

psychiatrists

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

resort hotel

Lisa called her doctor's office to speak to her doctor about the results of some tests she had done. Although the doctor was available, she did not want to come to the phone since it was almost closing time and instead had the receptionist on the phone ask Lisa to call back the next day. Lisa was dissatisfied with the service received from the doctor's office because she found _____ to be important.

responsiveness

Anthony is a manager at an auto dealership. One of his jobs is to perform an annual evaluation of each salesperson at the dealership. In the past, the evaluation had been primarily based on sales volume. To improve the evaluations, he wants to include customer-oriented measures of performance. Which of the following would be the best example of a customer-oriented measure of performance?

satisfaction of people buying cars

Dorothy recently purchased a piano and had no problem testing out the piano to listen to how it sound and felt. She is finding it more difficult to evaluate piano lessons. The piano was easy to evaluate because it had many _____ qualities.

search

Josh is trying to decide on a restaurant for dinner. He can look at different websites to evaluate restaurants based on their menu, prices, and décor, but will not be able to evaluate how the meal tastes or how friendly the staff is until he visits one. The attributes Josh is evaluating ahead of time are _____ attributes and those he will evaluate during dinner are _____ attributes.

search; experience

Beau needed to have some electrical work done at his house. Before he hired an electrician, there were very few _____ qualities he could examine, so he looked at online reviews of electricians in the area. While the electrician was at his house, Beau was satisfied with the electrician's _____ qualities such as his professionalism, appearance, and timeliness. However, when the electrician was done, Beau was not qualified to evaluate his _____ qualities since he had limited knowledge on electrical work.

search; experience; credence

Charles wanted to hire an interior decorator for his new apartment. Before he picked one, he researched as many _____ qualities as he could by looking at their websites to see evidence of previous work. After hiring a decorator, Charles evaluated her _____ qualities such as her professionalism and personality while the work was being completed. When the work was done, Charles was easily able to evaluate the _____ qualities of the interior decorator because he knew exactly what he had told the decorator he liked in relation to design before the work began.

search; experience; credence

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

supplementary

A tire installation company includes a car wash and a comfortable waiting room with complementary water and coffee in addition to its tire installations. These services are known as _____ services.

supplementary

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 ____________.

tangibles

Tanner Family Restaurant is located at a high-crime part of town. Despite its location, the restaurant attracts customers. To help attract these customers, the restaurant has installed visible security cameras, bright lights, and a security guard in the parking lot. The Tanner family has also taken steps to keep the exterior of the restaurant clean to maintain its appearance. It has taken these steps because its potential customers are concerned about

tangibles

The collective of individuals who have an interest in or a concern about an organization, product, or social cause is referred to as a _____ public.

target

Kate works in the reservations department for Disney World Resorts. She works to make sure each hotel has as many guests as possible staying every night. This is because of the concept of perishability, which means

that if there are unfilled reservations one night, they cannot be sold at a later date.

In nonprofit organizations, ____________.

the direct consumers of the product are the client public

Hilton Hotels & Resorts often have elegant entrances that may include marble and other high-end features. This is done to indicate

the quality of Hilton.

Tutors, attorneys, and consultants are most likely to price their services based on ____, while auto repair, hair stylists, and house painters are likely to price their services based on ___.

time; functions performed

Most products possess a certain degree of intangibility.

true

Service providers offering discounts to current customers who refer new customers to them are using existing customers as a part of their service promotion strategies.

true

Services can involve both human and mechanical efforts.

true

Allstate uses a logo featuring a pair of cupped hands accompanied by the slogan "You're in good hands" that signals safety and security to its customers. With the logo, Allstate is trying to help customers trust the company by

using tangible cues that symbolize the service.

Ricky owns a bowling alley that prides itself on its customer experience while bowling. Ricky spends time each week responding to any negative online reviews to try to find out what went wrong with the customer's experience and find a way to satisfy the customer. He knows how powerful ____ is/are for services and wants to have a successful business.

word-of-mouth communication

Dr. Bullock, a dentist, has a large customer base and a full schedule for her practice, yet she does very little advertising. Her promotion strategy relies mostly on

word-of-mouth.

Jack and Amy 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 ___________.

zone of tolerance

Raquel hired a lawn care service to mow her lawn and trim her trees and bushes weekly. She had expectations as to how her lawn and landscaping would look every week. After a while, the company started missing appointments and would forget to trim some of her bushes, leaving them overgrown. She decided to hire a new lawn care service because the first one failed to provide service within her

zone of tolerance