Marketing Final #10

Satisfied customers are likely to engage in positive word-of-mouth communication, thereby helping to bring in new customers. Thus, a means for attracting, developing, and retaining customer is known as which of the following? a. relationship marketing b. ambush marketing c. patronage marketing d. affiliation marketing

A

What is a characteristic that can be easily assessed prior to purchase, such as the softness of a mattress or the colour of curtains? a.search quality b.experience quality c.credence quality d.intangible attribute

A

A focus on maximizing the surplus of income over costs is which type of pricing objective for service firms? a. revenue-oriented b. patronage-oriented c. operations-oriented d. market-share-oriented

A

A pest control company paints dead roaches on its trucks and uses similar graphics on its letterhead, business cards, and all promotions. The pest control company is using what type of promotion strategy? a. stressing tangible cues b. using personal information sources c. stressing homogeneity d. providing packaging cues

A

Which of the following seeks to achieve some goal other than the usual business goals of profit, market share, or return on investment? a. a nonprofit organization b. a synergistic entity c. a patronage-oriented organization d. a company with no equity

A

What is the result of applying human or mechanical efforts to people or objects? a.a tangible product b.a profit intermediary c.a service d.a nonprofit organization

C

Relationship marketing programs that are based on which of the following bonds have the strongest potential for sustaining long-term relationships with customers? a. financial and patronage b. financial and structural c. financial, social, and structural d. financial and individual

C Level-three marketing programs with all three components are the strongest relationship marketing programs.

Remember 30. Which of the following services is an example of mental stimulus processing? a. insurance b. veterinarian care c. a professional tennis match d. a haircut

C PTS: 1 DIF: Application REF: p. 303 OBJ: 4

Hotels that cater to business travellers have more expensive rates during peak usage times (weekdays) and discount rates for slower times (weekends and holiday periods). Which pricing objective does this illustrate? a. patronage-oriented b. revenue-oriented c. supply-demand d. operations-oriented

D A focus on matching supply and demand by varying prices to ensure maximum use of productive capacity at any specific point in time is an operations-oriented pricing objective for service firms.

If a benefit is indirect to the customer, the marketer may find a challenge in promoting a product with which of the following? a. little personalization b. little benefit strength c. little benefit complexity d. little feature charisma

B

BMW Canada's company website (www.bmw.ca) allows consumers to "build [their] own car" on-line. What is this known as? a. mass customization b. a supplementary service c. standardization d. customization

A

Because many services involve a process of continuous interaction between the service organization and the customer, what is an important strategy? a. relationship marketing b. affiliation marketing c. patronage marketing d. interactive marketing

A

Services cannot be stored, warehoused, or inventoried due to which of the following? a. perishability b. tangibility c. intangibility d. heterogeneity

A

The level of relationship marketing that is least likely to be effective in the long term because its advantage is easily imitated by other firms is based on which of the following? a. pricing incentives b. structural bonds c. personal communications d. service delivery heuristics

A

Which of the following BEST describes the service sector? a. It employs roughly 76 percent of the Canadian work force. b. It is rarely capital intensive, as most services do not need high technology. c. It tends to create fewer new jobs than the manufacturing industry. d. It is decreasing in importance in Canada.

A

You have just started a limousine service and have developed a strategy that stresses quality and luxury. Your limos are always spotlessly clean on the inside, freshly waxed, and stocked with flowers, champagne, free car phones, and televisions. Your drivers are always immaculately dressed and are required to hold the door open for patrons entering and leaving the car. What is your promotional strategy stressing? a. tangible cues b. patronage-oriented objectives c. prestige prompts d. physiological prompts

A

Sierra Club and the Girl Guides of Canada are nonprofit organizations that want to develop marketing strategies to bring about mutually satisfying exchanges with their target markets as they work to protect our environment. What do both Sierra Club and the Girl Guides of Canada have? a. a marketing orientation b. the same organizational structure as profit-making firms c. no need for marketing skills d. no impact on nonbuyers

A A nonprofit organization exists to achieve some goals other than profit, but like their corporate counterparts, nonprofit managers develop marketing strategies to bring about mutually satisfying exchanges with target markets.

A reading service for visually impaired people requires each reader applicant to prepare and submit a one-hour interview tape of material chosen by the service to determine whether the reader has pleasing vocal characteristics and is accent-free so that it is not necessary to use the same reader every time. The reading service is trying to limit problems associated with which service characteristic? a. heterogeneity b. tangibility c. flexibility d. credence quality

A Heterogeneity means that a service tends to be less standardized and uniform than goods.

Deidre Longo has just accepted a position with a major entertainment venue where she is responsible for selling season tickets. She formerly was a salesperson for a company that sold sound systems for arenas, stadiums, and theatres. She believed she understood why theatre managers bought certain products but realizes that selling tickets to individuals will be different. What is one of the key differences she can expect to find? a. A consumer will use experience qualities to evaluate the entertainment service. b. The location of Longo's office is a key strategy criterion. c. The customer will select and evaluate entertainment on the basis of search qualities. d. Customers are engaged in this as a low-involvement product.

A Many service situations are complicated and customers do not have the knowledge to judge the quality of the actual service itself. This question is difficult because it ties together several concepts that are in different sections of the chapter.

What is one of the consequences of Canadian Blood Services' nonprofit orientation? a. The success of Canadian Blood Services cannot be measured in financial terms. b. Canadian Blood Services' success is based on how much money is donated to it. c. Canadian Blood Services will not make as much money as a profit-oriented firm. d. Canadian Blood Services is not expected to be as efficient as a for-profit firm.

A Success in a nonprofit organization is measured by how well service goals are met and how well it serves the community.

What would be an acceptable goal of the Metropolitan Area Transit Authority, a nonprofit organization, for its new bus and rail service? a. increase awareness in its target market to 75 percent b. set ridership volumes to provide a 12 percent ROI c. increase expenses to fit budgetary allowances d. gain a larger market share than the for-profit Trip Planner Bus Lines' routes in the area

A The only appropriate goal for a nonprofit transportation firm would be a service goal such as awareness, not a financial or market share goal.

TheKnot.com is an Internet company that is a one-stop source of all the items needed to have a successful wedding including listings of local caterers and photographers. When someone registers on the site, he or she is sent the "Ultimate Wedding Organizer." It offers advice on what to do with "cold feet" and how to handle in-laws. TheKnot.com recognizes that which of the following represents a portfolio of opportunities, risks, and challenges? a. a service mix b. an offering grouping c. a component combination d. an assembly process

A The service mix refers to the different services offered by the service provider.

When Avril and Laure went to eat dinner at the Bonaire Cafe, they discovered that there was an hour wait for restaurant seating. They decided to eat at another restaurant, and the Bonaire Cafe lost customers. The Bonaire Cafe has a limit to the number of people it can accommodate, so Avril and Laure's experience illustrates what? a. the perishability of services b. the heterogeneity of services c. the inconsistency of services d. the flexibility of services

A The services cannot be stored. An empty table earns no revenue.

Why do nonprofit organizations face a unique challenge? a. their target market is often the apathetic or strongly opposed individual b. their target market is often the community where it is located c. their target market is often the government d. their target market is often the people who provide the funding

A The target market for many nonprofit services is the apathetic, disinterested, or opposed individuals who nonetheless may need the service. Alternatives a, b, and c are as likely to be targeted by for-profits as nonprofits.

A Brazilian restaurant named Fogo de Chão hosted a special dinner to benefit the Toronto Community Food Bank. This benefit meal is an example of which type of strategy? a. target market b. promotion c. direct marketing d. product

B

A local church formed a special committee to provide aid to the homeless in its community. The church applied to the municipal and provincial governments for funding but was denied when it could not adequately state what services it would offer. In this case, why did the special committee fail? a. It had not defined its sponsoring organizations. b. It had not defined its product offering. c. It had not defined its donor market. d. It had not defined its user market.

B

Issues relating to pricing decisions that are unique to nonprofit organizations include which of the following? a. complementary positioning b. separation between payers and users c. benefit complexity d. apathetic targets

B

What is the predominant form of nonprofit organization in Canada? a. private-sector volunteer organizations b. government c. arts museums and programs d. social service firms

B

Which of the following is a service component customers use to evaluate service quality? a. validity b. assurance c. friendliness d. refund ability

B

Which of the following is an example of a type of service processing that can occur? a. tangibility processing b. people processing c. product processing d. warranty processing

B

Which of the following refers to the efforts of public and private nonprofit firms to bring about mutually satisfying exchanges with their target markets? a. social marketing b. nonprofit organization marketing c. public affairs marketing d. social targeting

B

Which of the following services would be most likely to exhibit strong credence qualities? a. an aerobics class b. the removal of an appendix c. a package delivery d. a haircut

B A credence quality is a characteristic that cannot easily be assessed even after purchase and experience.

Which of the following statements describes how a nonprofit organization should design its product offering? a. The organization should remember that the product offering is not as crucial to organizational success as the other elements of the service mix. b. The organization will need to satisfy the needs of the target market or it will fail. c. The product offering will have to be tangible. d. The organization should try to create products it can inventory.

B As with any type of product, to be successful the product must meet the needs of the target market.

The Christmas Is For Children annual toy collection drive requires what type of distribution channels? a. those that are focused only on the collection of toys from donors b. those that are efficient for collecting donations as well as distributing the proceeds of the campaign c. those that are based on an exclusive distribution strategy d. those that are based on many levels of intermediaries and facilitating agents

B Collection of funds and dispersion of goods or services both require good channels of distribution.

A business professional from St. John's University has been donating several hours of consulting time to local nonprofit organizations each month. This could be expected to provide the centre with all of the following benefits EXCEPT which one? a. community approval b. immediate financial gain c. personal satisfaction d. personal contacts

B Donating time to a nonprofit firm will result in intangible and long-term benefits, but not immediate financial gain.

Jackson Caputo owns and operates Jax Stables, a complete horse service that offers grooming, training, show training for handlers, boarding, and veterinary care. To maintain a quality image, Caputo provides ongoing training for each employee in the company's operations, objectives, and expected performance standards. What unique aspect of services is Caputo attempting to address? a. intangibility b. heterogeneity c. unfocused targeting d. simultaneous production and consumption

B Heterogeneity causes inconsistency and lack of standardization. Training helps to alleviate these conditions.

Gigi had her makeup professionally applied for her prom night. She went to the beauty salon, watched the makeup artist apply cosmetics to her face, and then went home feeling gorgeous. Gina's makeover illustrates which service characteristic? a. perishability b. inseparability c. flexibility d. heterogeneity

B Inseparability is when services or goods are produced and consumed at the same time.

Why might traditional promotional tools be inadequate to motivate product adoption of many nonprofit organizational products? a. because of direct distribution b. because of the wide range of potential consumer involvement c. because of nonprofit product volunteer policies d. because of infrequent use of target markets

B Involvement may range from extremely high (join the military, stop smoking) to low (prevent forest fires, don't litter), which is a much wider range than consumer products usually experience.

After a customer has selected a book from Amazon.ca's website, other books with similar topics are suggested. What is Amazon.com using? a. component service b. mass customization c. nonprofit marketing d. customized service

B Mass customization uses technology to deliver customized service on a mass basis.

Which of the following BEST describes the distribution channel of services for nonprofit organizations? a. It is always indirect. b. It must normally be direct from producer to consumer. c. It is usually facility-dependent. d. It is usually long and contains many layers of middlemen.

B Most services, profit or nonprofit, have direct distribution.

Boutique hotels are the perfect hotels for people who are tired of traditional cookie-cutter hotels that all look alike. One boutique hotel chain calls its staff its cast and has them wear fashionable solid black outfits. Its corridors are softly lit, and suite doors are arches lit with recessed blue lighting. Its lobby has a ceiling-to-floor water wall. What is the promotional strategy for this boutique hotel? a. to separate the point of production from the point of service consumption b. to create a strong organizational image c. to use personal information sources d. to stress intangible cues

B One way to create a strong organizational image is to manage the physical environment of the service facility, the appearance of the service employees, and tangible items associated with the service.

The Ritz-Carlton hotel chain trains its employees carefully, instills in them a sense of pride, and motivates them by recognizing and rewarding outstanding customer service. What does it use? a. patronage programming b. internal marketing c. service quality d. relationship marketing

B Treating employees as customers and developing systems and benefits that satisfy their needs is known as internal marketing.

At the dealer-owned Radio Shack, the store manager is frustrated at the level of service employees provide to customers even after he wrote a guide to customer service and instructed each employee to read the guide. This is an example of a gap between which of the following? a. the service customers receive and the service they want b. what customers want and what management thinks customers want c. the service quality specifications and the service that is actually provided d. what management thinks customers want and the quality specifications management develops to provide the service

C

Canada's export of services passed what amount in 2007? a. $70 million b. $7 million c. $70 billion d. $7 billion

C

Cooking classes, massages, and pedicures are all services that are produced and consumed at the same time. All of these services exhibit which service characteristic? a. variability b. intangibility c. inseparability d. perishability

C

For service firms, what type of pricing objective focuses on maximizing the number of customers using a service? a. profitability-oriented b. maximization of demand c. patronage-oriented d. revenue-oriented

C

Hyatt Regency's Platinum Card Program allows members to bypass any line at the check-in desk and get immediate check-in service. In this example, what are developed by offering value-added services that are not readily available from other hotel chains? a. personal communication channels b. price incentives c. structural bonds d. social bonds

C

In many nonprofit situations, consumers must absorb nonmonetary costs. Which of the following is a nonmonetary cost? a. indirect payments such as taxes b. relationship costs c. opportunity cost of time d. affiliation costs

C

Many businesses have discovered that the costs associated with attaining a new customer are many times that of retaining existing customers. Thus businesses realize that they can benefit directly from practising what type of marketing? a. patronage b. interactive c. relationship d. attractive

C

Research studies have shown that replacing an employee in the service industry costs the equivalent of which of the following? a. 6 months' pay b. a year's pay c. 1 1/2 year's pay d. 3 months' pay

C

Through its company promotion campaigns, General Motors has stressed that its dealerships employ only "certified GM mechanics and certified GM parts" for all vehicle repairs. GM understands that customers evaluate service quality through the deployment of which component? a. empathy b. tangibles c. reliability d. responsiveness

C

Tim Horton's stresses that its employees take pride in their company and display this pride through the wearing of clean, pressed company uniforms while on the job. Tim Horton's understands that customers evaluate service quality through the deployment of which component? a. responsiveness b. reliability c. tangibles d. assurance

C

Treating employees as customers and developing systems and benefits that satisfy their needs, such as training, stressing teamwork, and employee empowerment is known as what type of marketing? a. relationship b. job-satisfaction c. internal d. job-faceted

C

What are the three categories of pricing objectives for services? a. equity-, cost-, and revenue-oriented b. sales-, quality-, and location-oriented c. revenue-, operations-, and patronage-oriented d. turnover-, volume-, and capacity-oriented

C

What is an announcement in mass media for which no charge is made and that promotes programs, activities, or services of federal, provincial, or municipal governments or the programs, activities, or services of nonprofit organizations? a. cause-related marketing b. nonsponsored advertising c. public service advertising d. social advertising

C

When WestJet Airlines offers a dramatically reduced seat-sale price in the middle of February it is leveraging which pricing objective? a. patronage-oriented pricing b. benefit-oriented pricing c. operations-oriented pricing d. revenue-oriented pricing

C

Which of the following includes marketing activities conducted by individuals and organizations to achieve some goal other than normal business goals, such as profit, market share, or return on investment? a. social marketing b. cause-related sponsorship c. nonprofit organization marketing d. service marketing

C

Which of the following services is an example of possession processing? a. a theatrical performance b. a stop-smoking clinic c. dog boarding d. an advertising agency

C

Which of the following statements about developing marketing mixes for services is true? a. The tangibility and simultaneous production and consumption of services may require adjustments in marketing mix elements. b. Elements of the marketing mix must be preserved for the unique characteristics of services. c. The variability and perishability of services may require adjustments in marketing mix elements. d. Marketing mixes for services are the same as those for products.

C

Why is it is difficult to achieve consistency and standardization of services? a. because of perishability characteristics b. because of intangibility characteristics c. because of heterogeneity characteristics d. because of simultaneous production and consumption characteristics

C

Avril Lavigne has been picked as a spokesperson for T-Mobile wireless phone service. She was chosen because of her appeal to members of T-Mobile's target market. In terms of service promotion strategy, she will be considered what type of information source? a. impersonal b. cue control c. personal d. remote

C A celebrity is a person consumers are familiar with, and so can be a personal information source. Lavigne's association with the service is expected to reduce customers' perceived risk in using the service.

The Chrysalis Job Training for the Disabled program wants to notify the community about its upcoming rummage sale. As an experienced marketer and director of the program, you plan to visit several local radio and televisions stations to request which of the following? a. freestanding inserts b. nonsponsored advertising c. public service advertising d. societal marketing

C An announcement in mass media for which no charge is made and that promotes programs, activities, or services of nonprofit organizations is called public service advertising.

Mountain Express is a company that provides grocery delivery service to several small communities in British Columbia. The company gives a 2 percent discount on all food orders to customers after they have used the service 10 times. An additional percentage discount is offered for each additional 15 orders up to a maximum of 8 percent. What is the relationship marketing strategy used by Mountain Express based on? a. creating structural bonds b. following service delivery paradigms c. building financial bonds d. building social bonds

C Building financial bonds includes the use of price incentives.

A management consulting business stays in touch with its business customers with phone calls and greeting cards. It periodically sends out needs-assessment questionnaires and designs new services to meet the needs revealed in these surveys. What is this example of relationship marketing based on? a. patronage bonds b. financial bonds c. social bonds d. structural bonds

C Building social bonds includes staying in touch with customers, learning about their needs, and designing the service to meet those needs.

Services frequently use differential pricing in an attempt to synchronize supply and demand. Hotels frequented by business travellers often offer discounts for weekend bookings. Cinemas have lower prices for matinee shows. This is a way to contend with which service characteristic? a. intangibility b. simultaneous production and consumption c. perishability d. variability

C Differential pricing tries to even out demand. This is important because services cannot be stored, inventoried, or warehoused.

Promotion strategies for dealing with the unique features of services include all of the following EXCEPT which one? a. creating strong organizational images b. using personal sources of information c. satisfying patronage-oriented objectives d. stressing tangible cues

C Patronage-oriented objectives are part of a service pricing strategy.

Marriott Hotels, as well as Hyatt Regency and Adam's Mark Inns, have expended many resources in developing websites that allow prospective customers to learn all that is necessary before selecting a hotel destination. The sites then allow individuals to make reservations at the hotel that best satisfies their requirements. Which of the following reflects the distribution strategy used by these hotel chains? a. the physical appearance of a particular outlet b. intensity of distribution c. the decision to use direct distribution d. considerations of the storage of the service

C The newest form of direct distribution is the Internet.

Clarksdale, Ontario, is the home of the Shack Up Inn, the only inn in the world that is made up of actual shotgun houses. (Shotgun houses contain two or three rooms in a row. A resident of the house is able to stand at the front door, shoot through all the rooms and out the back door without hitting any walls.) Obviously, the shacks are not luxurious although they do have indoor plumbing and electricity. The owner decided these were the only changes customers would want to be made in the shacks. In this instance, the service provider is likely to have a gap between which of the following? a. what management thinks customers want and the quality specifications that management develops to provide the service b. service expectations and what customers are told to expect c. what customers want and what management thinks customers want d. service quality specifications and employee training

C The owners may have a lack of understanding of the needs and desires of the average tourist.

Which of the following BEST describes a target market for a nonprofit organization? a. It is best defined geographically, to include the area served. b. It needs to be defined as the "community" in general in order to reach all potential targets. c. It may include many apathetic or strongly opposed targets. d. It is best defined as the potential donors because their funds will ensure the survival of the organization.

C The target markets must include both the service users and the potential donors, which may be apathetic or strongly opposed groups.

If a hospital that measured the service quality of its physician care in terms of the total number of people who were attended to—even if patients appeared to want more individualized care—what would the hospital be exhibiting a gap between? a. the service quality specifications and the service that is actually provided b. what customers want and what management thinks customers want c. the service customers receive and the service they want d. what the company provides and what the customer is told it provides

C There is no indication in the question that the hospital is concerned about what customers want.

A service cannot be touched, seen, tasted, heard, or felt in the same manner in which goods can be sensed and, therefore, is referred to as which of the following? a.impervious b.perishable c.extraneous d.intangible

D

Aristide and Oana are considering attending a clinic to help them quit smoking. What will they be better able to assess after they attend the clinic and learn about the techniques it uses to help customers quit smoking? a.the heterogeneity feature of the clinic b.the tangible attribute of the clinic c.the creative quality of the clinic d.the experience quality of the clinic

D

Building value-added services into the delivery system that are not readily available from other firms defines relationship marketing based on the creation of which of the following? a. social bonds b. financial bonds c. personal communication channels d. structural bonds

D

Despite the large added expense, Rocky Mountain Financial Brokerage decided to install marble flooring and countertops as well as granite pillars at its corporate office. Rocky Mountain is concerned about its perceived quality against competitors and is dealing with this through which service component? a. assurance b. responsiveness c. reliability d. tangibles

D

Habitat for Humanity renovates vacant houses and sells them at no-interest mortgage rates to low-income home buyers. The organization relies on volunteers to provide the labour and funding for its renovations. Which of the following BEST describes Habitat for Humanity? a. It is a for-profit organization. b. It is a service branch. c. It is an image-oriented organization. d. It is a nonprofit organization.

D

In a nonprofit organization, which of the following are often concerned with partially or fully defraying costs rather than achieving a profit? a. liquidity fees b. nonfiscal costs c. cause-related goals d. pricing objectives

D

In many nonprofit situations the consumer is not charged a tangible price yet must absorb time costs, embarrassment costs, or effort costs. What are these costs? a. the organization's retained earnings b. the organization's financial costs c. the organization's liquidity fees d. the organization's nonfinancial prices

D

Matching demand for theatre seats to the number of people wishing to see a movie can be attempted by raising prices at peak movie attendance times and decreasing them during times when attendance is typically low. Focusing on coordinating supply and demand by varying prices is what type of pricing objective for service firms? a. patronage-oriented b. equity-oriented c. revenue-oriented d. operations-oriented

D

Nonprofit organizations account for how much of all economic activity in Canada? a. 1 percent b. 60 percent c. 40 percent d. 20 percent

D

One feature that distinguishes nonprofit organization pricing decisions from profit-sector pricing decisions also exists in the profit sector, but there it is considered to be an undesirable, temporary situation. An example is university tuition. What is this practice? a. nonfinancial prices b. separation between payers and users c. the lost pricing objective d. below-cost pricing

D

The ability of each guest to check out of a hotel room through the use of his or her room's television and to use the television to confirm additional charges on bills in the hotel's restaurants and gift shops is an example of which of the following? a. a cooperative service b. aggregated standardization c. a market development strategy d. mass customization

D

There are fewer problems caused by which service characteristics when the service being purchased requires little interaction between the service personnel and the customer? a. instability b. inseparability c. perishability d. heterogeneity

D

What is it called when services for those in relatively poor economic situations are largely paid for by those who are in better financial situations? a. nonfinancial pricing b. indirect payment c. indirect distribution d. separation between payers and users

D

What is the strategy that uses technology to deliver customized services on a mass basis? a. mass standardization b. aggregated marketing c. technological processing d. mass customization

D

Which characteristic cannot easily be assessed even after purchase since the customers do not have the knowledge or experience? a.heterogeneity feature b.perishable attribute c.experience quality d.credence quality

D

Which of the following is an example of a nonprofit organization? a. General Motors b. Canadian Brokers Association c. Canada Life, an insurance company d. Canadian Humane Society

D

Winnipeg Transit bus service offers discount ticket prices to students and senior citizens. Which pricing objective does this illustrate? a. service quality b. operations-oriented c. subsidized d. patronage-oriented

D A focus on maximizing the number of customers using a service is a patronage-oriented pricing objective for service firms.

What is the major difference between the marketing orientation of Ford Motor Company and of Canadian Blood Services? a. Canadian Blood Services does not have to be concerned with advertising or promotion. b. Quantitative methods of market research can be used at Ford. c. Ford has a target market. d. The rewards of Canadian Blood Services are long-term social benefits.

D Both Ford and Canadian Blood Services have target markets, products, advertising considerations, and the ability to do quantitative market research. But Canadian Blood Services is concerned with long-term social benefits to the public, and Ford is primarily concerned with profit-oriented goals.

Which of the following is a key factor in the distribution strategy for services? a. customization b. price c. competitors d. number of intermediaries and outlets

D Customization is a key factor in the product component of the service marketing mix.

What is the first step in developing a marketing program for a nonprofit organization? a. Determine the marketing mix. b. Create a promotion to attract donors. c. Establish the financial needs of the organization. d. Define organizational objectives.

D Defining organizational objectives will lead to selection of target markets and then to the marketing mix.

Courtney's mother died of breast cancer, and she is afraid of getting cancer. When she went to get a baseline mammogram, she wanted a facility where the personnel would not think her fears were silly and would answer all of her questions. By which of the following components of service quality is Courtney most likely to rate the mammogram provider? a. reliability b. assurance c. responsiveness d. empathy

D Empathy refers to providing caring and individualized attention to customers.

The Fountaindale Adult Literacy Education Program needs to understand and target all of the following potential markets EXCEPT which one? a. adults interested in teaching and literacy b. illiterate adults in the Fountaindale community c. community members in good economic circumstances d. the administrative board of the organization

D Except for the administrative board, all are potential users, donors, or volunteers who will need to be convinced to participate. Members of the board will need no convincing.

Ian Trent has an MBA and is being recruited by an investment banking firm as a sales representative. He has had 10 years of experience in selling industrial supplies. He was quite successful in this job but is worried that selling investment strategies may be more difficult. What factor would be the major reason for this worry? a.The extensiveness of distribution is unimportant when selling an investment service. b.The cost inventory management system of reimbursing him may cause a problem when he makes investments. c.The marketing program of investment strategies is inconsistent. d.Services are intangible and, therefore, different from his previous experience.

D Investment banking has many intangible features and benefits that makes it quite different from tangible products such as industrial supplies.

According to the text, which of the following statements about the marketing activities of a nonprofit organization is true? a. Nonprofit organizations express their objectives in terms of profit. b. Nonprofit organizations do not charge a price. c. Nonprofit organizations use the same terminology as for-profit companies when talking about their customers. d. Nonprofit organizations often use undifferentiated segmentation strategies..

D Nonprofit organizations often refer to their target markets as clients, patients, or members. Nonprofit organizations charge fees, donations, tuition, etc., which are all examples of prices. The major difference between nonprofits and for-profits is the lack of a profit objective.

Determining costs may limit the usefulness of the objective and can be extremely difficult for a service provider that has adopted which pricing objective? a. break-even b. operations-oriented c. patronage-oriented d. revenue-oriented

D Revenue-oriented objectives require calculations of income and costs, which can be difficult for many services.

The service offering for G& R Talent Agency is performers suitable for appearances on college and university campuses. What is this service an example of? a. the agency's supplementary service b. the agency's standardized service c. the agency's customized service d. the agency's core service

D The core service is what the consumer is buying.

If a customer expects to wait one week for a pair of shoes to be mended but is told that the shoes are ready to be picked up less than 24 hours after leaving them at the repair shop, the customer's evaluation of service quality will be high. However, a two-week wait would result in a lower evaluation. The two-week gap would illustrate a gap between which of the following? a. the service customers receive and the service they want b. what customers want and what management thinks customers want c. what the company provides and what the customer is told it provides d. service quality specifications and the service that is actually provided

D When these gaps are large, service quality is perceived as low. As the gaps shrink, perceptions of service quality improve.