Test 1 Review In Order

. Which of the following is the best example of a service firm that attracts customers with low base prices and then piles on additional fees. A. Rental cars B. Fast food C. Education D. Roofing E. Consulting

A

1.31. Which of the following is the best example of a supplementary service? a. Appliance maintenance b. Hotel room rental c. Fast food consumption d. House cleaning e. Landscaping

A

1.4. The three broad categories of things processed in services are ____________, ____________, and ____________. a. people; physical objects; data b. people; organizations; documents c. people; data; projects d. physical objects; data; documents e. physical objects; organizations

A

1.7. Which of the following is an example of co-production? a. Withdrawing from an ATM. b. Eating fast food. c. Touring an aquarium. d. Buying a stereo. e. Selling items on eBay.

A

2. ____________ supply the central, problem-solving benefit that customers seek. a. Core products b. Supplementary services c. Delivery processes d. Sustaining processes e. Conditional services

A

2.2. The key concepts in the pre-purchase stage include all the following except ____________. a. servuction system b. evoked set c. perceived risk d. zone of tolerance e. credence attributes

A

2.4. Tangible characteristics that customers can evaluate prior to purchase are termed ____________. a. search attributes b. experience attributes c. credence attributes d. satisfaction attributes e. capital attributes

A

2.9. In the theater metaphor, the elements include all but the following ____________. a. positions b. roles c. scripts d. service facilities e. personnel

A

28. Bright Horizons strategy included which of the following? a. Marketing services to employers instead of parents. b. Hiring inexpensive labor. c. Commoditized service offerings. d. Heavy regulatory oversight. e. All of the above are strategies employed by BH.

A

29. Tesco's success is built on ____________. a. direct marketing b. advertising c. personal selling d. sales promotion e. public relations

A

30. Which of the following is an example of a special request in advance of service delivery? a. Dietary requirements b. Complaints c. Warranties d. Refunds e. Suggestions

A

30. Which one of the following methods is NOT a banking service that can be delivered remotely? a. Face-to-face. b. Internet. c. Mobile phone. d. Call centers. e. All of the above are bank service delivery methods.

A

31. ____________ refers to a group of technologies for distributing audio or video programs over the Internet using a publisher/subscriber method. A. Podcasting B. Webcasting C. Websiting D. Webenabling E. Webscribing

A

32. Which of the following is an example of a franchised service firm? a. Saks b. Wal-Mart c. Barnes & Noble d. Starbucks e. Pier One Imports

A

4. Which of the following is NOT one of the factors that encourage extended operating hours? a. Availability of employees to work during "social" hours. b. Economic pressure from consumers. c. Changes in laws. d. Economic incentives to improve the use of assets. e. Automated self-service facilities.

A

7. Integrating mobile devices into the service delivery infrastructure can be used as a means to ____________ services, ____________ customers to opportunities or problems, and ____________ information in real time to ensure that it is continuously accurate and relevant. a. Access; alert; update b. Complement; alert; conceal c. Access; attract; conceal d. Access; guide; conceal e. Complement; guide; conceal

A

7. ____________, refers to an explicit form of positioning strategy that is based upon offering several price-based classes of service concept, each based on packaging a distinct level of service performance across many attributes. a. Service tiering b. Service conscription c. Broad-basing d. Price-setting e. Matching

A

8. Which of the following is NOT one of the four principles of positioning according to Jack Trout? a. A company must maintain a strong labor base. b. A company must establish a position in the minds of its targeted customers. c. The position should be singular, providing one simple and consistent message. d. The position must set a company apart from its competitors. e. A company cannot be all things to all people—it must focus its efforts.

A

Ads based on ____________ strategies are often perceived as more informative than ____________ ads. A. visualization; text-only B. expert; power C. visualization; affective D. utilitarian; text-only E. visualization; expert

A

Which of the following is NOT one of the four problems for marketers seeking to promote a service's benefits? A. Distribution B. Abstractness C. Generality D. Non-searchability E. Mental impalpability

A

____________ outside peak demand periods poses a serious problem for service industries with ____________, like hotels. A. Low demand; high fixed costs B. Low demand; low fixed costs C. High demand; high fixed costs D. High demand; low fixed costs E. High demand; low variable costs

A

1.10. The service framework for developing effective service strategies excludes _________________. a. understanding service products, consumers and markets b. managing the competitive landscape c. applying the 4 Ps to services d. managing the customer interface e. implementing profitable service strategies

B

1.30. Service firms have reservations systems because. a. intangible elements usually dominate value creation. b. most service products cannot e inventoried. c. distribution may take place through non-physical channels d. customers may be involved in co-production e. all of the above

B

1.6. A useful way to distinguish between goods and services is to place them on a continuum from ____________ to ____________. a. practical; impractical b. tangible-dominant; intangible-dominant c. low; high d. reliable; unreliable e. prepared; unprepared

B

10. Competitive analysis addresses all of the following factors EXCEPT ____________. a. examines competitors' strengths b. identifies competitors' future positioning c. examines competitors' current positioning d. examines competitors' weaknesses e. suggests opportunities for differentiation

B

2. _______________ is a key driver of channel choice. a. Risk reduction b. Convenience c. Colorful photos of the product d. Internet access e. Lower prices

B

2.10. During the post-purchase stage, consumers may make satisfaction judgments that ___________ their experience. a. negatively confirm, positively confirm, disconfirm b. positively disconfirm, confirm, negatively disconfirm c. disconfirm, positively confirm, negatively disconfirm d. negatively disconfirm, positively disconfirm, positively confirm e. positively confirm, negatively confirm, negatively disconfirm

B

2.28. To develop effective marketing strategies, marketers must understand how people make decisions about buying and using service, what the experience of service delivery and consumption is like for customers, and ____________. a. how they evaluate competitors b. how they evaluate the experience c. how often they utilize competitors d. how often they complain to the service firm e. the length of their relationship with the service firm

B

2.30. XL Capital portrays its logo as a giant obelisk between cliffs and a lighthouse to ____________. a. build trust with its clientele and generate a moment of truth. b. demonstrate its size and fundamental strength in protecting companies from risk. c. provide detailed information about its financial solubility. d. provide a visual example of its prowess to enhance experiential attributes. e. act as an advertisement that highlights important aspects of the company.

B

2.6. Which of the following is NOT a type of perceived risk in purchasing and using services? a. Functional b. Permanent c. Financial d. Physical e. Social

B

29. Customers who visit Giordano outlets are greeted with a cheerful "Hello" and "Thank you" when they enter and leave the store. That is an example of ____________ . a. consultation b. hospitality c. exceptions d. courtesy e. safekeeping

B

3. ____________ augment the core product, both facilitating its use and enhancing its value and appeal. a. Core products b. Supplementary services c. Delivery processes d. Sustaining processes e. Conditional services

B

30. Which of the following is most likely the determinant attribute for customers of CEVA Logistics, who have global operations? a. number of trucks b. reach c. delivery times d. mode of delivery e. online booking of services

B

5. The four interesting innovations for service delivery arising from the Internet are all of the following EXCEPT _____________. a. creation of websites as a delivery channel for information-based services b. DVDs that can store huge amounts of information c. development of "smart" mobile phones linking users to the Internet wherever they are d. usage of voice recognition technology that allows customers to give information and request service by speaking into a microphone e. smart card containing a microchip acting as an electronic purse containing digital money

B

6. ____________ represent a special type of order taking that entitles customers to a specific unit of service. a. Suggestions b. Reservations c. Trackers d. Repossessions e. Contracts

B

In ____________ services, where much of the firm's expertise is hidden, firms may need to illustrate equipment, procedures, and employee activities that are taking place ____________. A. high-contact; front-stage B. low-contact; backstage C. high-contact; backstage D. low-contact; front-stage E. high-contact; intangibly

B

SAS International Hotels devised which of the following sales promotions targeted at older consumers? A. First to provide senior citizen discounts. B. Provided a discount percent equivalent to their age. C. A free hotel room if large family gatherings were held at the hotel. D. Free ballroom service for large family gatherings. E. Discount for large family gatherings.

B

Which of the following is NOT a firm that uses dynamic pricing? A. Easyinternetcafe.com B Yahoo.com C Tickets.com D. Amazon.com E All of the above firms use dynamic pricing.

B

1.2. Service markets are shaped by all of the following except ____________. a. government policies b. social changes c. global economic change d. business trends e. advances in information technology

C

1.29. Education is an example of a/an _____________ service. a. people-processing b. information processing c. mental stimulus processing d. possession-processing e. physical processing

C

1.3. The following are all business trends transforming service markets except ____________. a. push to increase shareholder value b. growth of franchising c. new agreements on trade in services d. marketing emphasis by non-profit organizations e. focus on quality and customer satisfaction

C

1.9. The three additional Ps of services marketing that extend the original four Ps of marketing are _____________, _____________, and _____________. a. product; price; place; promotion b. prospects; process; people; promotion c. physical environment; process; people d. prosperity; process; people; promotion e. physical environment; prosperity; planning; process

C

10. A local presence may be necessary when exporting information-based services for which of the following reasons? a. Appeasing local citizens. b. Conducting secondary research. c. Building personal relationships. d. Bargaining for cheaper facilities. e. Restructuring out of date systems.

C

10. Which of the following is NOT one of the seven categories of new services? a. Target profitable customers, employing behavior segmentation rather than demographics. b. Achieve a superior understanding of what your targeted customers value. c. Design facilities that delight your customers and reduce complaints. d. Give employees the skills, tools, and supporting processes needed to deliver the defined customer experience. e. Make everyone a brand manager

C

2.32. Dental customers ____________ to avoid delays and ensure effective use of dental professionals' time. a. sit quietly in the waiting room b. commit positive word-of-mouth c. confirm and honor appointments d. should get to know hygienists e. provide accurate histories

C

2.5. Characteristics that customers find hard to evaluate even after consumption are termed ____________. a. search attributes b. experience attributes c. credence attributes d. satisfaction attributes e. capital attributes

C

28. A movie theater seat is an example of _____________. a. renting durable goods b. closely engaging customers in the service process c. renting portions of a larger physical entity d. the centrality of time to services e. differences in customer choice criteria

C

28. DHL offers customers the opportunity to track the movements of their packages, which have been assigned a unique identification number. This is an example of ____________. a. order-taking b. safekeeping c. information d. consultation e. exceptions

C

28. ______________ is an example of a service where the main mode of delivery is for the service provider to go to their customers. a. Banyan Tree Resorts b. Barnes and Nobles c. Royal Flying Doctor d. Starbuck e. Dunkin' Donuts

C

3.1. Brand positioning can do all of the following except ____________. a. generate interest in a service b. create awareness for a service c. meet customers' needs for a service d. differentiate a service e. increase adoption of a service

C

3.4. A(n) ____________ is one that a firm has selected from among those in the broader market and may be defined on the basis of several variables. a. general segment b. segmentation field c. target segment d. holistic segment e. mass customization

C

3.6. Which of the following is the best example of a determinant characteristic for airline travel? a. Oxygen masks b. Plane size c. Quality of food and drinks d. Having cocktail service e. Floatation devices

C

31. Capsule hotels originated from _____________. a. New York b. London c. Japan d. India e. Malaysia

C

31. Firms like Dunkin' Donuts and Subway sharing space with quick service restaurants is an example of a(n) ____________. a. single source market b. economy of scale c. ministore d. economy of scope e. multi-brand strategy

C

32. Grant Thornton, the fifth largest firm in the accounting industry, has successfully positioned itself as offering ____________ and having ____________. a. high investment yield; "a passion for the business of accounting" b. limited financial obligation; "a desire to exceed expectations" c. easy access to partners; "a passion for the business of accounting" d. low employee turnover; "a desire to exceed expectations" e. high asset turnover; "a passion for the business of accounting"

C

32. Which of the following is NOT one of British Airways seven distinct air travel products? a. Deluxe service (First Class) b. Club World (Business Class) c. Club Britain (Business Class) d. Club Europe (Business Class) e. Euro-Traveler (Economy Class)

C

7. At its simplest, ____________ consists of immediate advice from a knowledgeable service person in response to the request: "What do you suggest?" a. billing b. payment c. consultation d. hospitality e. selling

C

8. The service operations system does not include ____________. a. physical facilities b. equipment c. other customers d. technical core e. personnel

C

8. Which of the following is NOT considered an example of a hospitality element? a. Greeting b. Toilets and washrooms c. Advice d. Food and beverages e. Transport

C

8. ____________ has become a popular way to expand delivery of an effective service concept, embracing all of the seven Ps, to multiple sites, without the level of investment capital that would be needed for rapid expansion of company-owned and managed sites. a. The Internet b. International trade c. Franchising d. Sole proprietorship e. Limited partnership

C

9. Market analysis addresses all of the following factors EXCEPT ____________. a. overall level of demand b. trend of demand c. government regulations d. geographic location of demand e. market analysis addresses all of the above factors

C

9. Which of the following is NOT one of the eight basic steps to developing and delivering a branded customer experience? a. Target profitable customers, employing behavior segmentation rather than demographics. b. Achieve a superior understanding of what your targeted customers value. c. Design facilities that delight your customers and reduce complaints. d. Give employees the skills, tools, and supporting processes needed to deliver the defined customer experience. e. Make everyone a brand manager.

C

One approach to training customers, recommended by advertising experts is to ____________. A. train employees like customers B. use radio advertising C. show service delivery in action D. design palpable service environments E. explain service procedures in advance

C

Which of the following is NOT listed in the chapter as a firm that uses online reverse auctions? A. Priceline.com B. Hotwire.com C. eBay.com D. Lowestfare.com E. All of the above use online reverse auctions.

C

Which of the following is the best example of a service industry that utilizes price complexity? A. Fast food B. Education C. Cellular phone D. Moving/transportation E. Roofing

C

Which of the following represents a broad target audience category? A. Donors B. Competitors C. Employees D. Contractors E. Franchisers

C

Which of the following would be classified under generality in intangibility? A. Safety. B. A hamburger. C. An airline seat. D. Facility appearance. E. Expert advice.

C

____________ and ____________ represent important ways to add value to a product. A. Reciprocation; classification B. Information; classification C. Information; consultation D. Reciprocation; consultation E. Reciprocation; mediation

C

.The amount of seats reserved for each class of American Airlines passengers on a flight is referred to as a ____________. A. field B. row C. column D. bucket E. gamble

D

1.1. There are several reasons why the services sector is increasing in almost all countries around the world. Which is not one of the contributing reasons? a. The knowledge-based industries are growing. b. Countries are less dependent on agriculture. c. Some manufacturing firms are now focusing on marketing services as well. d. The construction and manufacturing industries are booming. e. More companies are outsourcing some of their service components.

D

1.5. The two considerations used to categorize service are ____________ and ____________. a. promotion versus place; price versus product b. place versus time; people versus ideas c. place versus people; time versus money d. people versus possession; tangible versus intangible e. people versus intangible; tangible versus possession

D

2.31. For customers of credit card companies, which of the following statements are true? a. When they make calls to the call center, these are usually the few moments of truth. b. There is very little of the theater performance. c. They usually experience high-contact with the service personnel. d. Only A and B. e. All of the above.

D

28. ____________ uses the metaphor of reaching the top to appeal to their customers. A. Prudential B. Allstate C. Accenture D. MasterCard E. Merrill Lynch

D

29. Elaborate statistical analysis, in the form of ____________, is sometimes used to aid decisions on where to locate supermarkets and similar large stores relative to prospective customers' homes and workplaces. a. binary regression b. cluster analysis c. structural equation models d. gravity models e. predictive models

D

29. Segmentation variables at Contiki Holidays include all of the following EXCEPT ____________. a. geographic b. income c. lifestyle d. household size e. age

D

3. A truck stop is a good example of a ____________. a. centralized control center b. single-source facility c. k-minus strategy d. multi-purpose facility e. cash cow

D

3.2. Which of the following is NOT one of the four basic focus strategies? a. Service focused b. Unfocused c. Fully focused d. Refocused e. Market focused

D

3.3. A ____________ is composed of a group of buyers who share common characteristics, needs, purchasing behavior, or consumption patterns. a. target class b. class c. focal segment d. market segment e. target segment

D

31. Singapore Airlines Raffles Class is an example of a(n) ____________. a. branded house b. endorsed brand c. house of brands d. sub-brand e. clear strategy

D

4.1. ____________ facilitate use of the core product and add value and differentiation to the customer's overall experience. a. Fixed services b. Value-added provisions c. Marketing theories d. Supplementary services e. Service providers

D

6. All of the factors below are luring customers into virtual stores EXCEPT ____________. a. potential for better prices b. ease of search c. broader selection d. opportunities for networking e. 24-hour service with prompt delivery

D

Which of the following is NOT a common educational and promotional objective in service settings? A. Build awareness of and interest in an unfamiliar service or brand. B. Reposition a service relative to competing offerings. C. Familiarize customers with service processes in advance of use. D. Encourage trial of competing products. E. Recognize and reward valued customers and employees.

D

1.32. Online educational programs offered by the University of Phoenix are an example of _____________. a. revolutionary products/services b. collective products/services c. additional services d. supplementary services e. core products/services

E

1.8. Customers being turned away or having to wait is an implication of which aspect of services? a. People may be a part of the service experience. b. Intangible elements usually dominate value creation. c. Services are often difficult to visualize and understand. d. Customers may be involved in co-production. e. Most services cannot be inventoried.

E

2.1. The three stages in the consumer decision making process are ____________, ____________, and ____________. a. pre-awareness stage, pre-purchase, purchase stage b. pre-purchase stage, awareness stage, post-purchase stage c. service encounter stage, pre-purchase stage, post-purchase stage d. pre-purchase stage, awareness stage, purchase stage e. pre-purchase stage, service encounter stage, post-purchase stage

E

2.29. An example of a service high in credence attribute is _____________. a. Extreme sports b. vacation c. spa d. musical performance e. surgery

E

2.3. The prepurchase stage begins with ____________. a. perceived risk b. formation of expectations c. moments of truth d. evoked set e. need arousal

E

2.7. Consumer preferences for involvement in the service process may reflect which of the following factors? a. Variability in price structures. b. Willingness to travel to a service facility. c. Desire to be served by employee's face-to-face. d. A and C only. e. B and C only.

E

3.5. The same individuals may set different priorities for attributes according to all EXCEPT which of the following? a. The purpose of using the service. b. Who makes the decision. c. The timing of use. d. Whether the individual is using the service alone or with a group. e. The cost of the service.

E

4. A company's ____________ helps to determine which supplementary services should be included. a. location b. delivery system c. key service representative d. service atmosphere e. market positioning strategy

E

5. The order-taking process should be ____________, ____________, and ____________ so that customers do not waste time and endure unnecessary mental physical effort. a. short; curt; abrupt b. simple; slow; effortful c. short; sweet; ineffective d. powerful; simple; abrupt e. polite; fast; accurate

E

5.1. When customers visit the service site, which factor/(s) must be considered in the design of the service? a. How expensive the service is. b. Convenience of the location. c. Operational hours. d. A & B only. e. B & C only.

E

9. Franchisors usually seek to exercise control over all aspects of the service performance through tightly defined ____________. a. service standards b. procedures c. scripts d. physical presentations e. all of the above

E

Which of the following is NOT a communication task for which marketers use the Internet? A. Promoting consumer awareness and interest. B. Providing information and consultation. C. Facilitating two-way communications with customers through e-mail and chat rooms. D. Enabling customers to place orders. E. Reducing service demand through electronic tracking.

E

_____________ technology facilitates the rise of user-generated content. A. Podcasting B. Narrowcasting C. TiVo D. YouTube E. Web 2.0

E

. Price elasticity is computed as ____________. a. percentage change in demand / percentage change in price b. percentage change in price / percentage change in demand c. percentage change in supply / percentage change in price d. percentage change in demand / percentage change in supply e. percentage change in price / percentage change in supply

a

. ____________ is defined as the sum of all the perceived benefits minus the sum of all the perceived costs of service. A. Net value B. Consumer surplus C. Gross value D. Moderate value E. Consumer demand

a

6. Which of the following is NOT an objective for service pricing? A. Build supply. B. Build demand. C. Seek profit. D. Cover costs. E. Build a user base.

a

. Which of the following intensifies price competition? A. Non-price-related costs of using competing alternatives are high. B. Wider distribution of competitor and or substitution offers. C. Personal relationships have been established. D. Switching costs are high. E. Customer need for time and location specificity.

b

__ 4. ____________, also known as customized or personalized pricing, refers to the practice of price discrimination. A. Critical ratio pricing B. Dynamic pricing C. Collective pricing D. Fixed pricing E. Classical pricing

b

. Which of the following is NOT an example of a non-physical fence? A. Time or duration of use. B. Group membership. C. Service level. D. Flexibility of ticket usage. E. Location of reservation.

c

Putting service pricing into practice includes thinking of all the following questions EXCEPT ____________. A. What should be the specified basis for pricing? B. How much to charge? C. What kind of customers should be charged more? D. Who should collect payment? E. When should payment be made?

c

Revenue management is the most effective when applied to firms characterized by all the following conditions EXCEPT ______________. a. perishable inventory b. relatively fixed capacity c. varying customer price sensitivity d. fixed inventory e. variable demand

d

Which of the following reduces price competition? A. Increasing the number of competitors. B. Increasing the number of substituting offers. C. Wider distribution of competitor and/or substitution offers. D. High switching costs for consumers. E. Increasing surplus capacity in the industry.

d

____________ recognizes that resource expenses are linked to the variety and complexity of goods and services produced and not just on physical volume. A. Break-even analysis B. Variable cost C. Fixed cost D. Activity-based costing E. Semi-fixed cost

d