Services MKTG Chapter 1

Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining? a. Increasing use of technology is perceived by many customers as less service because there is not human interaction b. Companies provide unclear tactics for customers to follow when dealing with service providers c. Delivering consistent, high-quality service becomes routine d. Customers have no concept of what conditions produce quality service e. Too many talented employees re left mired in front-end jobs that do not challenge them

a. Increasing use of technology is perceived by many customers as less service because there is not human interaction

In India weddings are timed to occur when Venus is in the ascendant and Jupiter is strong. This day is deemed lucky. In 2005, almost 15, 000 couples in New Delhi had their wedding on December 25, the day astrologers announced would be the best day for a wedding. The service provided by the astrologers is an excellent illustration of the _____ of services. a. Intangibility b. Comparability c. Divisibility d. Perishability e. Compatibility

a. Intangibility

The characteristic of a service means that it cannot be seen, felt, tasted or touched is: a. Intangibility b. Heterogeneity c. Divisibility d. Perishability e. Compatibility

a. Intangibility

A tax accountant may provide a different service experience to two different customers on the same day depending on their individual needs and personalities and on whether she is meeting with them when she is fresh in the morning or tired at the end of the day. This is an example of service ________. a. Versatility b. Heterogeneity c. Simultaneous production and consumption d. Perishability e. Intangibility

b. Heterogeneity

Parents everywhere are very busy and often cannot spend time with their children. In the Netherlands, children who want a bedtime story can call the telephone service and request to listen to one of twenty prerecorded fairy tales. The phone company charges $7 per story. Because of the prerecording of the stories, this bedtime service reduces the problems typically associated with the _____ characteristic of services. a. Versatility b. Heterogeneity c. Simultaneous production and consumption d. Perishability e. Intangibility

b. Heterogeneity

The first time Alexis went to take golf lessons, she had a golf pro who was very patient with her and who was able to pinpoint what she was doing wrong without making her feel uncoordinated. Her second golf lesson was not nearly as helpful. The golf pro who gave the lesson wanted Alexis to watch what he was doing and imitate his swing. He was unable to verbalize his instructions. Alexis's experience with the two golf instructors illustrates the _____ of service. a. Intangibility b. Heterogeneity c. Simultaneous production and consumption d. Perishability e. Divisibility

b. Heterogeneity

The first time Barry brought his car to Auto Lube to have the oil changed he was very satisfied with the service. The service manager consulted him several times while his car was being serviced, asked him if there were any problems with the car, recommended when additional services should be performed and answered questions directly and politely. However, when Barry went back to Auto Lube after three months to have his oil changed again, he was not satisfied with the service. The manager spoke to him only when he arrived and when he paid his bill. In addition, the manager was impatient and unfriendly during the interaction. Barry's experience at Auto Lube illustrates the _____ of services. a. Intangibility b. Heterogeneity c. Simultaneous production and consumption d. Perishability e. Divisibility

b. Heterogeneity

In addition to the elements of the traditional marketing mix, the expanded mix for services includes: a. Positioning, personalization, and process b. People, physical evidence, and process c. Personalization, procurement, and people d. Profit, production, and psychology e. People, partnerships, and positioning

b. People, physical evidence and process

Two roommates both registered for an introduction to business class. At midterm, one roommate found his instructor so boring that he was thinking of changing his major to history. The other roommate had a charismatic teacher and looked forward to going to class. This heterogeneity of instruction demonstrates: a. How difficult is it to synchronize supply and demand with services b. That customer service depends on employee actions c. How customers affect each other d. The fact services cannot be readily communicated or displayed e. Why services cannot be inventoried

b. That customer service depends on employee actions

Which of the following statements describes a marketing implication that results from the simultaneous production and consumption of services? a. Services cannot be returned or resold b. Service quality depends on many uncontrollable factors c. Employees affect the service outcome d. Services cannot be readily displayed or communicated e. There is no sure knowledge that the service delivered matches what was planned and promoted

c. Employees affect the service outcome

_______ is a key determinant of whether an offering should be classified as a product or a service. a. Physicality b. Audience passivity c. Intangibility d. Perception e. Abstraction

c. Intangibility

Historically, the Japanese have had poor dental care. As part of their beauty regimen, the Japanese do have a habit of lightening and whitening their skin. Teethart has developed "tooth manicure" salons, which allow Japanese to match their teeth coloration to their skin. A personalized whitening mouthpiece is developed for each patient. The mouthpiece is placed around the teeth and a cleaning solution is added. The patient listens to soothing music and sits in a comfortable chair while his or her teeth are whitened. Monthly treatments in this spa-like environment reflect the _____ element of Teethart's service mix. a. Product b. Production c. Process d. Place e. Promotion

c. Process

Yesterday, Mike went to the dentist for his 6-month check-up. Two weeks before he went to the dentist, he called the office to make an appointment. The day before his check-up, the office's receptionist called him to confirm his appointment. When Mike arrived at the office, he checked in with the receptionist and then waited in the waiting room for 15 minutes, reading a magazine, before being greeted by the dental hygienist, who escorted him to an examination room. The dentist entered the room, greeted Mike, examined Mike's teeth, took a set of x-rays and asked the dental hygienist to clean Mike's teeth. When his teeth were cleaned, the hygienist told Mike he should return in 6 months for another check-up. Mike experienced the _____ element of the dental office's services marketing mix. a. Product b. Personalization c. Process d. Place e. Physical evidence

c. Process

In the simplest terms, _______ are deeds, processes, and performances. a. Attributes b. Experiences c. Services d. Goods e. Benefits

c. Services

When they go away on vacation, some dog owners choose to leave their dogs in posh pet resorts that offer a variety of activities for the dogs, such as swimming pool frolics, nature walks, and hayrides. The dog owners pay around $17 per night for basic boarding at the pet resorts and up to an additional $20 for the other activities, which would be collectively classified as a. Goods b. Values c. Services d. Satisficers e. Attributes

c. Services

For their wedding anniversary, Beth and Rick wanted to go skydiving. They enrolled in a skydiving class at the local airport at a cost of $260. After a 30-minute training course in which everything that was going to happen to them was carefully explained, Beth and Rick were sent up in an airplane with two skydiving experts. Each was placed in a harness arrangement with one of the experts and did what is called a tandem dive. With a tandem dive, Beth and Rick get to enjoy the experience without having to worry about when to open the parachute. The skydiving expert does that for them. This tandem jump illustrates the _____ characteristic of services. a. Versatility b. Heterogeneity c. Simultaneous production and consumption d. Perishability e. Intangibility

c. Simultaneous production and consumption

The Offshore Sailing School in Jersey City, New Jersey, offers a basic sailing course, which takes place in three days over two weekends, for $495. Students enrolled in the course attend classroom sessions that cover the theory and technology of sailing and receive hands-on sailing instructions in the water that introduces them to all fundamental sailing skills. Student participation in the Offshore Sailing School's classroom sessions and hands-on sailing instructions illustrates the _____ characteristic of services. a. Versatility b. Heterogeneity c. Simultaneous production and consumption d. Perishability e. Intangibility

c. Simultaneous production and consumption

Without good mailing lists, businesses cannot engage in effective direct-marketing advertising. On average 20 percent of the U.S. population moves annually. Return Path is a company that provides changes of addresses to businesses. It takes a business's mailing list, compares it to address changes that it gathers daily in its database and makes any necessary corrections. Return Path is a part of which trend in the services marketing industry? a. The increasing importance of service industries to the U.S. and wold economies b. The decrease of human interaction as a result of widespread use of technology based services. c. The growth in the use of technology based services d. Increased competition in the direct-mail industry e. The fact that direct marketing firms are placing increased emphasis on providing services

c. The growth in the use of technology-based serviced

Gina and Henry were having breakfast when they decided they wanted to have pizza and watch a movie that night. When she got home from work, Gina turned on her computer, logged on to the Netflix site, and chose the movie Moneyball to view via online video streaming. Next she logged on to her favorite pizza restaurant's Web site and ordered a large pepperoni pizza and a bottle of soda to be delivered at 6:45 p.m. Gina and Henry enjoyed their evening. Which trend that influenced the development of services marketing is illustrated here? a. The increasing importance of service industries to the U.S. and wold economies b. The decrease of human interaction as a result of widespread use of technology based services. c. The growth in the use of technology based services d. Increased competition in the direct-mail industry e. The fact that direct marketing firms are placing increased emphasis on providing services

c. The growth in the use of technology-based services

Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining? a. Technology-based services, which are superior to human-based services, are not being implemented enough b. Services are leveling the playing field and consistently trying to offer the same level of service to every customer c. Companies are decreasing their reliance of self-service and increasing the use of human interaction in the performance of services d. Customer expectations are higher because of the excellent service they receive from some companies e. Even though it is easy to provide consistent, high quality service, many companies do not want to do it

d. Customer expectations are higher because of the excellent service they receive from some companies

On his way to work today, Terry saw a billboard for a physician's group that specialized in vascular surgery. In his local newspaper there was a full-page ad for a medical clinic that performed similar surgery. Then in his mail, he got a brochure from yet another medical clinic asking him if he wanted to get rid of ugly varicose veins. Which trend that influenced the development of services marketing concepts and strategies is illustrated here? a. The increasing importance of service industries to the U.S. and world economies Bb The increase of government regulation of professional service industries c. The growth in database marketing d. Increased competition in professional services E. Professional firms are placing increased emphasis on providing services

d. Increased competition in professional services

Bob Wilson owns and operates Flashdance Skating Rink. Last Monday afternoon, he had rented the rink out for a birthday party that was cancelled at the last minute due to a flu epidemic that had sickened three-fourths of the children who were invited. While Wilson kept the deposit, he did not get the skate rental fees or the snack food money he had anticipated from the rental. Wilson lost money as a result of the _____ characteristic of services. a. Heterogeneity b. Simultaneous production and consumption c. Incomparability d. Perishability e. Intangibility

d. Perishability

In many cultures, weddings are timed to occur on lucky days. In 2011, wedding planners from Las Vegas, Nevada, to Mumbai, India, knew long before the auspicious date of November 11th (11/11/11) that this would be one of their busiest days of the year, if not the century. Because other dates would just not be as lucky for the blushing brides and grooms, and simply would not suffice, the wedding planners had to prepare all year for more weddings on this one date than on any other day throughout the year. This example illustrates the _____ characteristic of services. a. Versatility b. Heterogeneity c. Simultaneous production and consumption d. Perishability e. Intangibility

d. Perishability

Which of the following is a marketing implication that results from the heterogeneity of services? a. Services cannot be returned or resold b. Services cannot be patented c. Services cannot be inventoried d. Service delivery and customer satisfaction depend on employee and customer actions e. All of the above

d. Service delivery and customer satisfaction depend on employee and customer actions

Due to the _______ characteristics of services, customers will frequently interact with each other during the service production process and may affect each other's experiences. a. Comparability b. Intangibility c. Heterogeneity d. Simultaneous product and consumption e. Perishability

d. Simultaneous product and consumption

Because of the _______ the services, service producers find themselves playing a role as part of the product itself and an essential ingredient in the service experience for the consumer. a. Comparability b. Intangibility c. Heterogeneity d. Simultaneous production and consumption e. Perishability

d. Simultaneous production and consumption

Extron Electronics makes coaxial cables for connecting computers to all types of peripheral devices like printers, modems, and fax machines. For the benefit of its customers, Extron provides a laminated card with pictures of all the possible cable connections that a customer could need. With this card, a customer can order from one to any number of connectors with as many feet of cable as is needed. Orders can be placed using a toll-free number, a fax number or an e-mail address. Company reps are also available 24-hours a day in case the customer is not sure which drawing on the card matches his or her needs. Orders are shipped within 48-hours of receipt. If a customer is not completely satisfied with his or her order, Extron has a 100 percent satisfaction guaranteed return policy. Which of the following trends that has influenced the development of services marketing concepts and strategies as illustrated by Extron's focus on customer service? a. The decreasing importance of service industries to the U.S. and world economies b. The growth in information-based technology c. Decreased competition in professional services d. The fact that manufacturing firms are placing increased emphasis on providing services e. None of the above

d. The fact that manufacturing firms are placing an increased emphasis on providing services

Which of the following is an intangible component of a car repair shop? a. Replacement parts b. Employee uniforms c. Barrel for storing recyclable motor oil d. The training the mechanic has received e. Customer waiting area

d. The training the mechanic has received

Which of the following products is LEAST high in experience qualities? a. Plastic surgery a. A prom band c. Catered banquet d. Wedding dress e. Pet grooming

d. Wedding dress

Which of the following statements about how technology has positively influenced service is true? a. Technology provides approaches for delivering existing services in more accessible, convenient, product ways b. Technology facilitates basic customer service functions c. Technology facilitates transactions by offering a direct vehicle for making purchases d. Technology provides an easy way for customers to learn and do research about products and companies e. All of the above

e. All of the above

Which of the following statements describes a marketing implication that results from the intangibility of services? a. Services cannot be inventoried b. Services cannot be easily patented c. Services cannot be readily displayed d. The actual costs of a "unit of service" are hard to determine e. All of the above

e. All of the above

_______ qualities are characteristics of a product consumers may find impossible to evaluate even after purchase and consumption. a. Search b. Cognitive c. Perceptual d. Experience e. Credence

e. Credence

Which of the following statements about services are true? a. A service economy produces services at the expense of other sectors b. Service jobs are low paying and menial c. Service product is labor intensive and love in productivity d. Service is a necessary evil for manufacturing firms e. Marketing and managing services presents issues and challenges not faced in manufacturing and packaged goods companies

e. Marketing and managing services presents issues and challenges not faced in manufacturing and packaged goods companies

Which of the following is NOT an example of a service business? a. Amusement park b. Hotel c. Bank d. Department store e. Paper mill

e. Paper mill

Historically, the Japanese have had poor dental care. As part of their beauty regimen, the Japanese do have a habit of lightening and whitening their skin. Teethart has developed "tooth manicure" salons, which allow Japanese to match their teeth coloration to their skin. Each treatment takes place in a small booth, which contains an ergonomically-designed chair, muted lights, and New Age-style music. The walls are painted calming shade of blues and greens. Teethart uses the _____ element of its service to reduce stress associated with dental procedures. a. Product b. Production c. Process d. Place e. Physical evidence

e. Physical evidence

Ruth recently visited a day care center that is convenient to her work. Ruth is thinking of letting the day care workers care for her infant son while she is at work. The first thing Ruth noticed when she walked in the door of the facility was the smell of urine. There was a dead plant in the window. Toys were strewn about the floor and Ruth almost tripped over a tricycle. In this example, Ruth experienced negative aspects of the _____ element of the day care center's services marketing mix. a. Product b. Production c. Process d. Place e. Physical evidence

e. Physical evidence

When Alicia and Jordan dined at Formia Ristorante, a contemporary Italian restaurant in New Jersey, they both enjoyed Formia's coy, smart and embracing atmosphere. Formia creates this atmosphere with a single large dining room that measures 20 by 60 feet and contains 14 roomy tables. Ceiling fans slowly swirl as candlelight dances across the tables that are attentively cared for by servers. Vertical pink and white florid patterns emerge from old wainscoting. Finally, Formia's two-page menu offers guests a range of pasta, chicken, veal, and seafood entrees, in addition to nightly specials that are handwritten and presented on large index cards. Alicia and Jordan experienced the _____ element of Formia Ristorante's services marketing mix. a, Product b. Production c. Process d. Place e. Physical evidence

e. Physical evidence

Which of the following statements describes a marketing implication that results from the intangibility of services? a. Customers participate in and affect the transaction b. Service quality depends on many uncontrollable factors c. Services can be readily communicated d. There is no sure knowledge that the service delivered matches what was planned and promoted e. Services cannot be inventoried

e. Services cannot be inventoried

A primary issue that marketers face in relation to service perishability is ensuring service quality over time.

False

Because a product is tangible, it cannot be inventoried.

False

Pricing is easier when marketing services than when marketing goods.

False

Technology is creating a demand for ethnocentric services.

False

The deregulation of industries has actually lessened the demand for services marketing skills.

False

The seven elements of the marketing mix for services are product, promotion, price, place, process, progress, and people.

False

The characteristic of a service that refers to differences in employees' performance is: a. Intangibility b. Heterogeneity c. Divisibility d. Perishability e. Simultaneous product and consumption

a. Intangibility

Which of the following is NOT an element of the traditional marketing mix? a. Production b. Place c. Product d. Price e. Promotion

a. Production

The maintenance contract offered by Sears on its Kenmore refrigerators, dishwashers, and microwaves is an example of a(n) _______. a. Service b. Experience c. Attribute d. Good e. Benefit

a. Service

According to the concept of derived services, the value derived from physical goods is really the service provided by the good, not the good itself.

True

All businesses and organizations that operate on the Internet essentially providing a service.

True

Because the production and consumption is simultaneous, the mass production of service is difficult.

True

Despite the importance of services and the bottom line profit potential for services, consumers perceive that overall the quality of service they are receiving is declining.

True

Salt, bricks, and paper clips are three examples of tangible dominant products.

True

The development of services marketing concepts has been strongly influenced by professional services like doctors and attorneys.

True

The core offerings of hospitals, hotels, and banks are primarily deeds and performances and therefore are _______. a. Services b. Experiences c. Attributes d. Goods e. Benefits

a. Services

Which of the following is an example of a tangible component provided by a hotel? a. Wake-up call b. Guest rooms c. Room service d. Express check out e. Guaranteed reservations

b. Guest rooms

The most distinguishing characteristic of services is: a. Heterogeneity b. Perishability c. Intangibility d. Comparability e. Divisibility

c. Intangibility

Which of the following statements describes how consumers and employees are responding to technology-based services? a. Services can readily calm fears that privacy may be sacrificed if technology is used b. An infusion of technology can lead to an increase in human interaction c. The payback for investments is technology is a certainty d. Employees are often reluctant to integrate technology into their work lives e. All of the above

d. Employees are often reluctant to integrate technology into their work lives

An attorney who charges a client for a missed appointment is taking into account the _______ characteristic of services. a. Heterogeneity b. Simultaneous production and consumption c. Incomparability d. Perishability e. Intangibility

d. Perishability

_______ refers to the fact that services cannot be saves, stored, resold, or returned. a. Intangibility b. Heterogeneity c. Simultaneous production and consumption d. Perishability e. Incompatibility

d. Perishability

Which of the following is an example of the people element of an airline company's services marketing mix? a. Pilots b. Baggage handlers c. Customers d. Flight attendants e. All of the above

e. All of the above