MKTG Ch. 13
T F A nonprofit organization may exist in an environment in which its goals are opposed by some members of society.
T
T F Marketing approaches used by organizations in the for-profit sector are equally applicable to individuals and organizations in the nonprofit sector
T
126. What type of product is the children's playground at the "Y"?
The playground is a consumer service product.
The marketing channels for services are usually
direct from provider to customer.
The fact that the "Y" is open from 6:00 am until 11:00 pm refers to the __________ element of its marketing mix.
distribution
Client-based relationships are most likely to be developed by
doctors
There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and
employee empathy.
Clean, sharp looking employees with appropriate uniforms help assure customers about service quality and therefore address the _____ of services.
intangibility
Which of the following is not a service product?
A 100 percent service satisfaction guarantee
Which of the following is similar for both for-profit and nonprofit marketing?
Ability to use effective marketing activities
Which of the following best defines nonprofit marketing?
Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment
American Airlines runs a series of television commercials that show its personnel going out of their way to help customers. In addition to consumers, an important secondary audience for these ads is (are)
American Airlines employees.
Which of the following service providers are most likely to bundle-price their services?
Cable television companies
Which of the following is most likely to be considered a business service
Consulting
Which of the following service providers are most likely to use demand-based pricing?
Cruise ships
Who judges service quality?
Customers
An American West Airlines flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty American West flight from Chicago to Phoenix. This is an example of what kind of service pricing?
Demand-based
Which of the following services falls closest to the middle of the tangibility continuum?
Dinner at the Olive Garden
T F A hairstylist that gives good haircuts in the morning but tends to give haircuts of lesser quality in the afternoon is suffering from the challenges associated with intangibility.
F
T F Customers seldom rely on the price-quality associations.
F
T F The nonprofit organization does not need to develop a strategy for each of the marketing mix variables of product price, distribution, and promotion.
F
H&R Block, a major tax preparation firm, reported having a problem with its employees being inconsistent in the filing of returns. The firm is experiencing a problem with which of the following characteristics of the service offering?
Heterogeneity
Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda's recommendation addresses which of the following service features?
Heterogeneity
If a nonsmoker dines in a restaurant without a no-smoking section, then the overall quality of service experienced by the nonsmoking customer probably declines. This is an example of which of the following service characteristics?
Inseparability
Which of the following service providers would typically call their customers "clients"?
Lawyers
Select the true statement about nonprofit marketing.
Major nonprofit marketers in the United States are social causes and charitable organizations
Which of the following issues is least important in nonprofit marketing?
Profits
As Stan and Anna Walicki meet with the account representative at Landmark Bank, they are shown a sample of what their monthly statement will look like. Providing such sample documents allows Landmark to add tangibility to which of the following service qualities?
Search
Select the true statement regarding nonprofit marketing.
Segmentation techniques used to identify target markets in for-profit businesses are also applicable to reaching nonprofit target markets.
What are the three primary ways that marketers deliver services?
Service facilities, customer's home, or from a distance
Which of the following products associated with weddings is most likely to be considered a service?
String quartet music
T F A church's marketing objective could be to inform the public about its doctrine and convince people to become members.
T
T F Advertisements for services use tangible cues to help customers understand the intangible attributes associated with a particular service.
T
T F Although nonprofit goals differ from for-profit goals, certain business marketing concepts can be adopted to enhance nonprofit operations.
T
T F An advantage of heterogeneity is that services can be customized.
T
T F Because of inseparability of the consumption and production of services, customers are often present when a service is produced.
T
T F Both production and consumption of services occur at the same time.
T
T F Client-based relationships are interactions that result in satisfied customers who repeatedly use a service over time
T
T F The response that a nonprofit organization desires from its target market or public may be a change in values, financial contributions, or the donation of services.
T
T F Using promotional efforts that encourage the trial use of some services can be an effective way for customers to assess the quality of the offered service
T
T F When a customer takes part in the production of a service, other customers can affect the outcome of the service
T
What should marketers do to promote the consistency and reliability of their services most effectively?
Train employees and develop standard procedures for dealing with customers
Which of the following countries was the world's first service economy?
United States
Which of the following is a low-contact service?
Website design
According to the text, the direct consumers of a nonprofit organization's ideas or services are called its _________ public.
client
The main characteristic of a ___________ is that customers are satisfied to the point that they use a service repeatedly over a period of time.
client-based relationship
Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as
client-based relationships.
A university's student body would be considered its ___________ public, and parents, alumni, and trustees would be included as its ___________ public.
client; general
The intangibility aspect of a service means that
consumers may have a problem evaluating service offerings.
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
When using an accountant to prepare her tax return, Kaycee really can't determine the level of the accountant's expertise, or whether the accountant actually determined the absolute highest dollar amount Kaycee could have legally received. This is an example of the _________ of a service.
credence qualities
The level of interaction necessary between a customer and service provider in order to complete a service is called
customer contact
By installing ATMs, banks have increased production capacity and reduced the number of personnel. 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.
The heterogeneity characteristic of services provides marketers with tremendous opportunity to
customize their services to meet unique individual needs.
In general, differences between goods and services are determined by the
degree of tangibility.
Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even unlimited night and weekend minutes. This is an example of
demand-based pricing
Prudential Insurance uses "the rock" symbol to communicate stability and security to customers. This is Prudential's attempt to help customers better understand its services by
emphasizing tangible cues in promoting the service.
Offering pet owners who recommend Prize Pet Grooming to a friend $10 off their next grooming bill is a program designed primarily to
encourage word-of-mouth communication.
Because of a service's ___________, standardization and quality are difficult to control.
heterogeneity
Machinery such as ATMs and online customer services can reduce the ______ that comes from increased contact with human employee
heterogeneity
Production and consumption of services must simultaneously occur due to the _____ characteristic of services.
heterogeneity
The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ______ of services.
heterogeneity
The more __________ involved with delivering a service, the greater the degree of heterogeneity.
human labor
Services are usually provided through the application of _______ directed at people or objects.
human or mechanical efforts
The children who take swimming lessons must be in attendance at the pool during the time of their appointment. The need for the child to be in attendance in order to receive the lesson is an example of the ______ feature of a service, while the need for them to be there at the time of their appointment, represents the _______ feature.
inseparability; perishability
Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ______ aspect of services.
intangibility
Symbols such as the Travellers' Financial Services umbrella are designed to help customers overcome the ________ of services.
intangibility
Transamerica's pyramid-shaped building in San Francisco is used to symbolize strength, security, and reliability. This type of promotion is designed to address the ___________ characteristic of services.
intangibility
Service activities are time-dependent, meaning that the service must be provided at a point in time when customers want to use it. This point in time is also known as
peak demand
Any service provider that offers time-sensitive services receives most of its revenue during
peak demand.
According to your text, one perspective from which to view services is as a ______ targeted at a(n) ________.
performance; audience
Kathy Adkins, owner of Adkins Styling Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty slots from earlier in the week were available on this Saturday afternoon. Her thoughts deal with the ___________ characteristic of services.
perishability
Using appointments or reservations for scheduling delivery of services is an attempt to address the ___________ characteristic of services.
perishability
The fact the services cannot be inventoried and then sold at a later date is called
perishability.
Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and
price.
Tara finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to see exactly how they feel and fit. In other words, the jeans have many _____ qualities.
search
When Kaycee looked in the yellow pages and on the Internet for information on the accountants in the area, she was most likely using _________ qualities to evaluate the accountant service.
search
When service companies change high-contact services into low-contact services, the
service becomes less personalized.
The continuum of tangibility goes from _____ on one end to _____ on the other end.
service-dominant products; good-dominant products
All of the following are elements of the inseparability characteristic of services except that
services are easy to standardize and control.
Consumers look closely at service quality when comparing competing services because
services are very difficult to evaluate.
Distribution for nonprofit organizations is
typically characterized by short channels
Surveys, focus groups, and customer comment cards are all methods used by service companies to
understand customer needs and expectations
In service marketing, the most important link to the customer is
well-trained contact employees.
Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on
word of mouth.
T F Attributes that customers may be unable to evaluate even after the purchase and consumption of the service are called experience qualities.
F
T F Balancing the supply and demand of services can be done by keeping service prices the same regardless of the time of day, week, or year.
F
T F Government has no control over service prices charged.
F
T F Customer-oriented measures of employee performance may be a better basis of evaluation and rewards.
T
T F Customers are the ultimate judges of good service quality.
T
The two levels of expectations that consumers generally have about services are
acceptable and desired
Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called ___________ quality
credence
Services have three evaluation attributes: search qualities, experience qualities, and ___________ qualities
credence
Many services have aspects that consumers may never be able to evaluate, even years after the purchase and consumption of the service. These attributes are called
credence qualities
Any human or mechanical effort that adds value to a product is called
customer service
Which of the following types of pricing will the accountant most likely use when charging for the service?
demand-based pricing
Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and
heterogeneity
The growth of business services is largely attributed to
increases in the complexity and competitiveness of business environments.
A sign in a doctor's office waiting room says "Please be courteous of the others waiting with you." The doctor's office is trying to positively influence the _______ aspect 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. Jim's difficulty in expanding his practice involves the aspect of service called
inseparability
Demand-based pricing most closely relates to the _____ of services.
perishability
T F Because most services are people-based, they are susceptible to heterogeneity, or variation in demand over time.
F
T F Because of service perishability, it is difficult to price services in a manner that smoothes fluctuations in demand.
F
T F Because services are intangible by nature, marketers should downplay the tangibles associated with a particular service (such as facilities or employees).
F
T F Consumers tend to believe company-sponsored advertising more than word-of-mouth communication when gathering information on a service product.
F
T F Due to increased customers' desires for personalization, service providers are using bigger sales forces.
F
T F High-contact services are very expensive to deliver because they are equipment-intensive.
F
T F In a nonprofit organization, the direct consumers of the product are called donor publics and indirect consumers are called client publics
F
T F Intangible cues are used to provide customers with some assurance of service quality.
F
T F Pinpointing a target market should be done only after the selection of a marketing mix.
F
T F Segmentation concepts and techniques used to segment and identify target markets are not applicable to reaching nonprofit target markets.
F
T F Selecting a marketing mix is the first step in developing any nonprofit marketing strategy.
F
T F Service industries account for less than 50 percent of the U.S. gross domestic product.
F
T F Service quality is defined as the company's perception of how well a service meets or exceeds customer expectations.
F
T F Service quality is defined by compliance with a set of specifications.
F
T F Services are products that can be touched and felt.
F
T F State and local government regulations do not affect the pricing of services.
F
T F Supplementary services are the basic services that a customer expects to receive.
F
T F Tangible attributes such as color, style, size, feel, or fit that can be evaluated prior to purchase are known as search qualities.
F
T F There is no way to combat the supply-demand problem associated with the perishability of services
F
T F Training of employees is less important for high-contact services than it is for low-contact services
F
Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach?
For some services, customers look for the low-cost provider, which is what Safe claims to be.
The owner of the Lords and Ladies hair salon has difficulty in standardizing and controlling the quality of service that the customers in his salon receive. This problem illustrates which of the following unique features of service?
Heterogeneity
Which of the following service characteristics results in variability of service quality yet provides the opportunity for customizing services to match the specific needs of individual customers?
Heterogeneity
Which of the following statements about customer contact in services marketing is false?
High-contact services are less expensive to deliver because they are typically equipment-based
Which of the following factors have contributed the least to the growth of services in the U.S. economy?
Increased number of high-tech goods
Hair stylists find it challenging to market their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services?
Inseparability
___________ marketing includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit.
Nonprofit
Which is the most typical distribution channel used in nonprofit organizations?
Nonprofit organization, client
___________ is the value of the benefit that is given up by selecting one alternative rather than another.
Opportunity cost
Marketers of services must deal with the challenges of balancing supply and demand and planning for peak and off-peak times. What characteristic of services creates these challenges?
Perishability
Which of the following is the best example of a high-contact service?
Plastic surgery
T F Demand-based pricing means lower prices during times of lower demand and higher prices during times of higher demand.
T
T F Demand-based pricing relies on information concerning peak demand times and off-peak demand times.
T
T F Distribution of services is often more direct, even if the customer must go to the service provider's facilities.
T
T F Financial price—an exact dollar amount—may or may not be charged for a nonprofit product.
T
T F Goods can be defined in terms of their physical attributes, but services cannot because they are intangible.
T
T F Inseparability also means that customers expect a service to be provided in a certain way by a specific person.
T
T F Intangibility of services creates promotional challenges because it is difficult to display a service in a store and to demonstrate the quality of a service.
T
T F Marketing as a field of study does not attempt to make value judgments about what a nonprofit organization's goals should be.
T
T F Marketing attempts only to provide a body of knowledge and concepts to help further an organization's goals.
T
T F Most products possess a certain degree of intangibility.
T
T F Nonprofit organizations deal with ideas and services more often than with goods.
T
T F Nonprofit organizations that do not serve and adapt to the needs and wants of their target public may fail.
T
T F Nonprofit organizations usually have more diverse groups to serve than do for-profit organizations
T
T F One of the best ways to better understand customer needs and expectations is to ask contact employees.
T
T F Personal selling is one noticeable marketing activity used to gain acceptance of a social idea or to solicit donations.
T
T F Sales promotion activities of a nonprofit organization may consist of special events such as fund-raising campaigns, telethons, contests, and entertainment.
T
T F Selecting a convenient location is important to the distribution of a nonprofit service.
T
T F Service providers must adjust their behavior to buyer expectations to improve quality.
T
T F 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.
T
T F Services are highly perishable and cannot be inventoried for future use.
T
T F Services can involve both human and mechanical efforts.
T
T F The U.S. economy is the world's first service economy.
T
T F The ability to customize services to match the specific needs of individual customers is an advantage to service marketers and may lead to standardized packages.
T
T F The concept of opportunity cost is important in determining the price paid by an individual for a nonprofit product.
T
T F The education a student gets is an example of the intangibility of services.
T
T F The goal of building client-based relationships is to satisfy customers so well that they become very loyal and would be unlikely to switch to competitors.
T
T F The intangible nature of services often leads customers to use prices as a measuring tool for quality.
T
T F The marketing mix strategy of a nonprofit organization should be developed to restrict alternatives.
T
A small private college in Tennessee paid a large sum of money to a marketing firm to study the college's current marketing strategy and help develop new strategies for attracting students. The college is having a difficult time evaluating the effectiveness of the marketing firm's work because this type of service has many
credence qualities
Personal trainers cannot complete their work without their clients present because of the _______ feature of services
inseparability
Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of
intangibility.
Service industries account for ____ of the gross domestic product of most developed nations.
nearly three-quarters
When a theater entices customers to see movies during the daytime by offering tickets at a reduced price, it is trying to solve the services marketing problem of
off-peak demand
Kyle Jackson, one of the staff members at the YMCA, suggested that the "Y" offer discounted memberships to senior citizens over the age of 65; however, they could only use the facility between the hours of 9:00 am and 4:00 pm. Kyle's plan is most likely addressing the issue with ______, and relates to the ______ characteristic of services
off-peak demand; perishability
In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to
promise too much and cause customer expectations beyond what they can deliver.
Because practically all marketers provide some services, ___________ typically do not exist in today's business environment.
pure goods
The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called
responsiveness.
A service is usually offered as part of a bundled package of services with a core service and one or more ________ services
supplementary
If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ___________ services.
supplementary
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
When Kaycee visited the accountants' offices and used the look of the surroundings, as well as the office furniture condition in her evaluation of the service business, she was most likely using the elements of the ________ dimension of service quality.
tangibles
Attributes which are assessed only during the consumption of a service are called
tangibles.
Children with muscular dystrophy who receive treatments developed through research programs funded by MDA represent ___________ for this charitable organization.
target publics
Lauren is a concert promoter who works for pop star Justin Timberlake. She works very hard to make sure most of Justin's concerts are sold out because she understands the concept of perishability, which means
that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again.
Tina, a waitress at the Riverfront Grill, is angry that a customer complained that his soup was cold because of her slow service. Riverfront owner Max Griffin reminds her that she must focus on service quality as defined by
the customer's perceptions
In nonprofit organizations,
the direct consumers of the product are the client public.
An important difference between for-profit and nonprofit marketing is that
the goals of the nonprofit organization differ from the goals of the for-profit organization.
In most service industries, customer-contact employees are
the lowest-paid and least-trained employees.
American Life uses leather-look portfolios and high-quality paper and printing for its life insurance policies in order to indicate
the quality of its services.
Piano teachers, tutors, attorneys, and consultants are most likely to price their services based on
time.
Client-based relationships are least likely to be developed by
towing services.
Janet sets up her new interior decorating business and advertises her expertise in high-quality draperies and other window treatments. One of her first customers is extremely dissatisfied with Janet's work, so Janet redoes the job at her own expense because she knows how powerful _____ is (are) for services and wants to stay in business.
word-of-mouth communication
Jack and Amy Douglas 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.