Marketing Chapter 13
The most important link to the customer in service marketing is contact employees. customer referrals. the service facility. marketing research. service quality.
contact employees
A first class airline ticket offers a ____ service of transportation as well as ____ services of drink and food service, special boarding rights, and extra customer service. core; supplementary primary; secondary complementary; main bundled; extra major; minor
core; supplementary
Many people do not go to see their doctor to get a physical exam because they do not know whether getting a physical exam is worthwhile. This aspect of a physical exam is called _____ quality. search unknown credence experience intangible
credence
The necessary interaction between service provider and customer that allows a service to be delivered is called service marketing. customer service. service interaction. a client-based relationship. customer contact.
customer contact
Any human or mechanical effort that adds value to a product is called ___________. an intangible a service customer service overhead service marketing
customer service
The quality provided by a service company is judged by its investors. customers. competitors. marketing team. senior management.
customers
Service quality is defined by compliance with a set of specifications. True False
ffalse
Kaitlynn is the owner of a local fast-food hamburger chain. She recently saw a magazine article featuring a new machine that could cook and assemble burgers without needing employees to handle the burgers. She is thinking of purchasing the new machine since it would help address problems associated with ______________. intangibility perishability heterogeneity inseparability client-based relationships
heterogeneity
Lynn is always distracted by the end of her work day and the last haircut she gives each day is usually the worst one. This is an example of the _____ of services. inseparability homogeneity heterogeneity perishability intangibility
heterogeneity
Nicky works in the marketing department for a chain of high-end salons and is updating its marketing campaign. She is hoping to make the chain's service more tangible to potential customers, so she is planning on featuring a menu of services and the price of each service. the salon's brand name as the main focus of the campaign. images of the service areas and the hairdressers that work at the salon. quotes of long-term customers who enjoy visiting the salons. a new slogan that talks about the value received by going to the salon.
images of the service areas and the hairdressers that work at the salon.
A restaurant hangs a sign on the front window that states, "No shoes, no shirt, no service." The restaurant is trying to positively influence the _____ aspect of services. intangibility customer inseparability heterogeneity perishability
inseperability
The collective of individuals who have an interest in or a concern about an organization, product, or social cause is referred to as a _____ public. volunteer client general target nonprofit
target
Which of the following is not a service product? A taxi cab ride Technical support for a computer The planning of a wedding by a wedding planner Getting a haircut A college basketball game
technical support for a computer
Kate works in the reservations department for Disney World Resorts. She works to make sure each hotel has as many guests as possible staying every night. This is because of the concept of perishability, which means each guest's stay will be unique because their interaction with hotel staff will be different. there is a high level of interaction between guests and hotel staff, making the customer's presence necessary. the consumption of a night's stay by a guest must occur in that hotel room with the guest present. that if there are unfilled reservations one night, they cannot be sold at a later date. that because guests cannot stay in the room before making a reservation, it is difficult to judge its quality.
that if there are unfilled reservations one night, they cannot be sold at a later date.
In nonprofit organizations, ____________. the direct consumers of the product are the client public development of a marketing strategy should focus on the general public the techniques used by for-profit organizations to define target markets cannot be applied target markets are defined much more easily goods are marketed more often than ideas or services
the direct consumers of the product are the client public
Services can involve both human and mechanical efforts. True False
true
Tiffany is attending college paid for by a scholarship from Society of Women Engineers, a nonprofit educational organization that tries to establish engineering as a desirable career option for women. Tiffany is a member of their client publics. scholarship publics. general publics. recipient publics. student publics.
client publics
All of the following are elements of the perishability characteristic of services, except that consumption and production are simultaneous. services have a capacity limit. demand for services can fluctuate over time. there can be unused service capacity. unused service capacity cannot be stored for future use.
consumption and production are simultaneous
Larry hired an accountant to complete his tax return. The accountant was able to get Larry a refund, but Larry is having a difficult time finding out whether the accountant he hired got him the largest refund possible. This is because the accountant's work is typical of service firms in that it has many credence qualities unexpected results search qualities experience qualities hidden qualities
credence qualities
A flight on American Airlines for Thanksgiving weekend will cost more than a ticket on the same flight earlier in November. This is an example of what kind of service pricing? time-based supply-based demand-based a la carte bundled
demand based
Service industries account for less than 50 percent of the U.S. gross domestic product. True False
false
Compared with goods marketers, service providers are more likely to promote training and certification of personnel, availability, price, and variety. quality. celebrity endorsements. their brand name. guarantees.
guarantees
Because of a service's _____, employee training and the establishment of standard procedures can be important to help increase consistency and reliability. perishability intangibility inseparability heterogeneity homogeneity
heterogeneity
Massage therapists cannot complete their work without their clients present because of the ____ feature of services. value intangibility perishability inseparability heterogeneity
inseperability
A service has six basic characteristics, that is, intangibility, inseparability of production and consumption, heterogeneity, client-based relationships, customer contact, and value of labor. customer service. customizability. labor dominance. perishability.
perishability
Client-based relationships are most likely to be developed by house painters. mechanics. psychiatrists. bank tellers. bus drivers.
psychiatrists
Anne is organizing a beach vacation for her family. Which of the following expenses for the trip is not a service product? A snorkeling outing A rental car Suntan lotion A hotel room Airplane tickets
suntan lotion
Most products possess a certain degree of intangibility. True False
true
Allstate uses a logo featuring a pair of cupped hands accompanied by the slogan "You're in good hands" that signals safety and security to its customers. With the logo, Allstate is trying to help customers trust the company by including performance certifications to enhance the service. incorporating its customers' lifestyles into its advertising. adopting a customer-focused advertising strategy. using tangible cues that symbolize the service. highlighting its client-based relationships.
using tangible cues that symbolize the service
If a company wants to improve the consistency and reliability of its services, which of the following strategies is most effective? Punish employees for providing unsatisfactory performance. Hire employees with more direct experience. Establish standard procedures and train employees. Increase the pay of those employees that interact with customers. Reorganize the operations so fewer employees interact with customers.
Establish standard procedures and train employees.
The two levels of expectations that consumers generally have about services are low and high. basic and desired. primary and secondary. basic and extraordinary. acceptable and desired.
acceptable and desired
Heterogeneity increases as the _____ increases. expectation of service quality length of time needed for the service price charged amount of equipment used amount of human labor
amount of human labor
Rich's Auto Lube offers customers 10% off on their next service if they provide proof that they have posted a positive review on a social media site. This program is designed to encourage online viral communication. improve employee effectiveness. reinforce brand equity. increase customers' zone of tolerance. demonstrate its consistency in performing the service.
encourage online viral communication
_____ qualities of a service can only be assessed during the consumption of a service. Credence Customer-focused Experience Tangible Search
experience
A customer is looking for a service that meets his or her specific needs, but knows this may result in variability of service quality. Which service characteristic does this situation reflect? heterogeneity inseparability perishability intangibility consistency
heterogeneity
Zach has just opened Tri-State Partners and has the need for several business services from other companies. Which of the following is most likely to be considered a service product for Zach's business? parking lot maintenance housecleaning coffeepot for employees computer software uniforms
parking lot maintanence
Which of the following service providers is most likely to use demand-based pricing? counselor nail salon piano teacher carpet cleaner resort hotel
resort hotel
A service is usually offered as part of a bundled package of services with a core service and one or more ____ services. extra additional accompanying add-on supplementary
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 ____________. assurance reliability tangibles responsiveness empathy
tangibles
Service providers offering discounts to current customers who refer new customers to them are using existing customers as a part of their service promotion strategies. True False
true
Geico advertises that you can save 15% or more on auto insurance by switching to Geico. Which of the following best describes Geico's approach? By mentioning price in their advertising, Geico is able to overcome issues associated with heterogeneity. Offering a low price allows Geico to focus on offering auto insurance that is higher in quality than the competition. Geico's claim lets customers know that they can expect greater levels of customer contact compared to competitors. Since many customers see auto insurance providers as similar in quality, Geico is claiming to be lower in price. Geico is advertising a lower price than the competitors because customers see price as an indicator of quality.
Since many customers see auto insurance providers as similar in quality, Geico is claiming to be lower in price.
For the Special Olympics, the athletes competing would be considered its _____ publics, while the athletes' parents, the coaches, and donors would be included in its _____ publics. primary; secondary target; target client; general direct; indirect member; support
client; general
Liz recently moved to a new town and wanted to find a new doctor. She looked at several doctors' offices to view their location, their cleanliness, and their waiting rooms before she finally decided on which doctor to visit. Liz was trying to overcome the issue associated with the _____ aspect of services. perishability intangibility appearance inseparability heterogeneity
intangibility
Service businesses try to communicate a higher level of quality to potential customers by having clean, well-lit, attractive physical facilities. This is an attempt to address the ____ characteristic of services. perishability inseparability physical heterogeneity intangibility
intangibility
Service marketers take steps to assure their customers about the quality and professionalism of the service. In this way, service marketers are trying to address the challenge of the service characteristic of quality. heterogeneity. perishability. inseparability. intangibility.
intangibility
A tire installation company includes a car wash and a comfortable waiting room with complementary water and coffee in addition to its tire installations. These services are known as _____ services. bundled complementary supplementary core additional
supplementary
Dr. Bullock, a dentist, has a large customer base and a full schedule for her practice, yet she does very little advertising. Her promotion strategy relies mostly on her online blog. radio ads. billboards. word-of-mouth. television commercials.
word of mouth
Which of the following is a way that a movie theater can address the issues of perishability of services? Add additional concession stands to be more convenient for the customers. Provide increased training to the theater's staff. Update the selection of movies being played more frequently. Offer discounted matinee rates to movies shown early in the afternoon. Hire more ushers to help moviegoers find their seats faster.
Offer discounted matinee rates to movies shown early in the afternoon.
Which of the following statements about nonprofit marketing is true? Nonprofit marketers need to stay away from controversy in order to spread their messages. There are no differences for marketers in a nonprofit organization versus a for-profit business. Trustees and board members of nonprofit organizations have experience evaluating advertising. The basic aim of a nonprofit organization is to obtain a desired response from a target market. It is illegal for nonprofit organizations to try to influence government officials in their efforts.
The basic aim of a nonprofit organization is to obtain a desired response from a target market.
Which of the following statements about customer contact in services marketing is true? Low-contact services are more expensive to deliver because of the cost of human labor. Customer satisfaction is not greatly influenced by service employees. Switching from a low-contact service to a high-contact service is a good way to decrease variability in quality. To improve quality and ensure good customer contact, employee training programs are important. If a customer is satisfied with a service, that leads to a satisfied service employee.
To improve quality and ensure good customer contact, employee training programs are important.
Peak demand is when every customer wants to purchase a service at the exact same time. customers' satisfaction is the greatest. a service provider that offers a time-sensitive service receives most of its revenue. more competitors enter the market and attract new customers. customers are willing to pay a higher price because of the quality of the service provided.
a service provider that offers a time-sensitive service receives most of its revenue.
The knowledge and competence of employees and the ability to convey trust and confidence is an important dimension of service quality called reliability. empathy. responsiveness. tangibles. assurance.
assurance
Service marketers typically use one of three ways to deliver services. The three ways are through intermediaries, through wholesalers, and through direct channels. in person, online, and remotely. at the provider's facility, at the customer's home or business, and at arm's length. immediately, delayed, and scheduled. using employees, equipment, and machinery.
at the provider's facility, at the customer's home or business, and at arm's length.
Service companies typically hope that customers are extremely satisfied with the service they provide. That way, the satisfied customers will use the service repeatedly over time. This service feature is known as _____. customer satisfaction client-based relationships repeat customers service partnerships regular clientele
client-based relationship
A stay at a five-star hotel includes the _____ service of a room and bed for a night and _____ services of a concierge, a fitness center, and a pool and spa. main; additional required; extra core; supplementary basic; added primary; secondary
core; supplementary
Some grocery stores have installed self-checkout lanes, which allow more shoppers to checkout at once while simultaneously reducing the number of cashiers needed. This results in a decrease in intangibility. perishability. inseparability. heterogeneity. customer contact.
customer contact
For a service, credence qualities are attributes that are tangible and can be evaluated prior to purchase and consumption have a positive impact on a customer's level of satisfaction with the service customers may be unable to evaluate even after purchase and consumption can be assessed during purchase and consumption customers are likely to tell their friends and family about
customers may be unable to evaluate even after purchase and consumption
Which of the following services falls closest to the middle of the tangibility continuum? a tablet computer a dental cleaning dinner at P.F. Chang's a flight to Las Vegas a custom-built home
dinner at PF changs
Paul is a service provider for a low-contact type of service. Paul is most likely which of the following? a dry cleaner a hairdresser a real estate agent a flight attendant a surgeon
dry cleaner
In a nonprofit organization, the direct consumers of the product are called donor publics and indirect consumers are called client publics. True False
false
Brian is speaking to his sister about a meeting he had today with one of his clients. The fact that Brian is referring to his customer as a client suggests he is most likely a _____. financial advisor florist carpenter waiter taxi driver
financial advisor
Client-based relationships are least likely to be developed by hairdressers. doctors. personal trainers. lawyers. flight attendants.
flight attendants
Landscapers, dry cleaners, and doctors are most likely to price their services based on ____, while psychologists, lawyers, and marriage counselors are likely to price their services based on ___. time; functions performed functions performed; time successful completion; customer satisfaction service quality; successful completion successful completion; service quality
functions performed; time
Lindsey has been a troop leader of the Girl Scouts, a nonprofit youth organization for girls, for several years. In her position, she leads the troop members through meetings, activities, and outings. Lindsey is a member of the Girl Scouts' ________________. administrator publics client publics general publics supervisor publics leader publics
general publics
Jody believes she is always smiling and friendly during her job as a waitress, which made her surprised to hear that results of a customer survey said she was serious and unapproachable. Her boss reminded her that she has to focus on service quality as defined by the restaurant manager. the restaurant's waiters and waitresses. the employee handbook her customers' perceptions. the owner of the restaurant.
her customer's perceptions
A grocery store recently discovered that it is having a problem with its checkout clerks being inconsistent in how they interact with the customers. The grocery store is having a problem with which of the following characteristics of the service offering? consistency inseparability heterogeneity intangibility perishability
heterogeneity
Ben owns a wedding planning company that specializes in unique and eccentric weddings. Recently, he has been trying to improve the quality of the service received by the company's clients, but has experienced difficulty finding ways to standardize and control the quality. Ben's problem illustrates the _____ feature of services. inseparability heterogeneity customer contact perishability intangibility
heterogeneity
Brian asks his friend Gordon for recommendations for a pediatrician for his children. Gordon tells him that KidsHealth is a great practice if he can get Dr. Fusco assigned to his children. Gordon's recommendation addresses which of the following service features? consistency inseparability heterogeneity perishability intangibility
heterogeneity
Companies replacing in-person services with automated services such as banks using ATMs and online banking, grocery stores using self-checkout lanes, and airlines using self-check-in kiosks reduce the _____ that comes from contact with human employees. perishability intangibility consistency inseparability heterogeneity
heterogeneity
Hannah runs a housekeeping company that has two dozen housekeepers on staff. As part of their employment, Hannah has all of her housekeeping attend a two-day training seminar every year. The training seminar helps address problems associated with heterogeneity. inseparability. customer contact. intangibility. perishability.
heterogeneity
The level of intangibility of a service forces customers to often be present during the production of a service and cannot take the service home. increases the importance of brand image when a customer is deciding which provider to purchase. results in employees having to undergo training programs to minimize differences in performance. means that manufacturers have to plan for fluctuations in demand based on the day of the week, time or day, or season. means that any unused service capacity cannot be stored for future use.
increases the importance of brand image when a customer is deciding which provider to purchase.
It is difficult for surgeons to standardize each type of surgery performed because the patient must be present and involved in the surgery. Because of differences in bodies, each surgery will be somewhat different. This illustrates which of the following unique features of services? intangibility inseparability client-based relationships perishability heterogeneity
ineperability
Doug had tickets to attend a Broadway play with his family. When they arrived at the theater, they were disappointed to find out that the star of the show was unable to perform and that the understudy would be performing the lead role instead. This is an issue regarding the _____ quality of services. customer contact perishability inseparability intangibility heterogeneity
inseperability
Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jason's difficulty in expanding his practice involves the aspect of service called _______. perishability slotting inseparability credence heterogeneity
inseperability
Willie is a mechanic and is hoping to increase revenue. He is hoping to schedule more cars, but every timeslot at his auto shop is almost always filled. Willie's difficulty in expanding involves the aspect of service called scheduling. heterogeneity. inseparability. intangibility. perishability.
inseperability
The bull logo used by Merrill Lynch is used to symbolize strength and confidence in the company's service offerings. In promoting the company, the bull is designed to address the _____ characteristic of services. inseparability intangibility heterogeneity assurance perishability
intangibility
Max has recently started his own business and needs several services from other companies to run his business. Which of the following is most likely to be considered a service product for his company? refrigerator for the break room laser printers at employee desks babysitting for his children Internet access for the office office furniture
internet access for the office
Daisy was watching TV recently and saw a commercial for a nursing home close by. The commercial highlighted the residents' rooms as well as the nurses and other personnel at the nursing home. This ad was most likely designed with the goal of making the intangible aspects of the nursing home more tangible depicting the nursing home as a low-priced alternative to other homes showing that the nurses are highly trained creating awareness among potential donors to the nursing home showing how happy Daisy's elderly grandmother would be living at the nursing home
making the intangible aspects of the nursing home more tangible
The four factors that affect a customer's evaluation of a service are the analysis of customer expectations, service quality specifications, employee performance, and dependability of employees. employee courtesy. employee job satisfaction. company brand equity. management of service expectations.
managemet of service expectations
Each of the following is a method that can be used by service companies to understand customer needs and expectations except focus groups. comment cards. surveys. market segmentation. employee opinions.
market segmentation
Which is the most typical distribution channel used in nonprofit organizations? Nonprofit organization, client Nonprofit organization, intermediary, client Nonprofit organization, government, client Nonprofit organization, middleman, client Government, nonprofit organization, client
nonprofit organization; client
Which of the following is a way that a restaurant can address the issues of perishability of services? Update the uniforms worn by employees to signal higher quality. Offer happy hour specials to attract customers before dinner. Discard excess and unused food daily. Provide training to the restaurant's staff to better standardize service. Develop an updated menu featuring a wider variety of items.
offer happy hour specials to attract customers before dinner
A time-sensitive service needs to be concerned with _____, the point in time around which a significant number of customers desire the service. preferred time high use time peak capacity peak demand maximum demand
peak demand
Andrea, a pediatrician, had several patients call on Thursday afternoon to schedule last-minute appointments because their children were sick. Earlier in the week, however, she had several cancellations. She wishes some of the appointment times from earlier in the week were available on Thursday or Friday. Andrea's problem deals with the ____ characteristic of services. timing heterogeneity inseparability intangibility perishability
perishability
If a restaurant tries to attract diners to eat dinner at the restaurant from Monday to Thursday by offering half-price appetizers on those days, it is trying to solve the marketing problem of intangibility. customer contact. perishability. inseparability. heterogeneity.
perishability
Kate, owner of K's Tanning Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty tanning beds from earlier in the week were available on this Saturday afternoon. Kate's problem deals with the ____ characteristic of services. heterogeneity credence search perishability inseparability
perishability
Which of the following is the best example of a high-contact service? auto repair mail carrier personal training a flight attendant tax accounting
personal training
The heterogeneity characteristic of services provides marketers with tremendous opportunity to balance supply and demand for the service. provide customers with services that match their individual needs. assure customers about the quality and professionalism of the service. mass produce their services, lowering the cost per customer. send messages to customers that raise expectations.
provide customers with services that match their individual needs.
Lisa called her doctor's office to speak to her doctor about the results of some tests she had done. Although the doctor was available, she did not want to come to the phone since it was almost closing time and instead had the receptionist on the phone ask Lisa to call back the next day. Lisa was dissatisfied with the service received from the doctor's office because she found _____ to be important. tangibles responsiveness reliability empathy assurance
responsiveness
Anthony is a manager at an auto dealership. One of his jobs is to perform an annual evaluation of each salesperson at the dealership. In the past, the evaluation had been primarily based on sales volume. To improve the evaluations, he wants to include customer-oriented measures of performance. Which of the following would be the best example of a customer-oriented measure of performance? satisfaction of people buying cars number of customers approached conformance with the dress code results from a training session length of time employed
satisfaction of people buying cars
Dorothy recently purchased a piano and had no problem testing out the piano to listen to how it sound and felt. She is finding it more difficult to evaluate piano lessons. The piano was easy to evaluate because it had many _____ qualities. credence experience testable intangible search
search
Josh is trying to decide on a restaurant for dinner. He can look at different websites to evaluate restaurants based on their menu, prices, and décor, but will not be able to evaluate how the meal tastes or how friendly the staff is until he visits one. The attributes Josh is evaluating ahead of time are _____ attributes and those he will evaluate during dinner are _____ attributes. credence; search search; credence search; experience experience; credence experience; search
search; experience
Beau needed to have some electrical work done at his house. Before he hired an electrician, there were very few _____ qualities he could examine, so he looked at online reviews of electricians in the area. While the electrician was at his house, Beau was satisfied with the electrician's _____ qualities such as his professionalism, appearance, and timeliness. However, when the electrician was done, Beau was not qualified to evaluate his _____ qualities since he had limited knowledge on electrical work. search; personal; belief primary; secondary; tertiary search; experience; credence tangibles; reliability; belief preview; tangible; intangible
search; experience; credence
Charles wanted to hire an interior decorator for his new apartment. Before he picked one, he researched as many _____ qualities as he could by looking at their websites to see evidence of previous work. After hiring a decorator, Charles evaluated her _____ qualities such as her professionalism and personality while the work was being completed. When the work was done, Charles was easily able to evaluate the _____ qualities of the interior decorator because he knew exactly what he had told the decorator he liked in relation to design before the work began. search; experience; credence primary; secondary; tertiary tangibles; reliability; belief search; personal; belief preview; tangible; intangible
search; experience; credence
Tanner Family Restaurant is located at a high-crime part of town. Despite its location, the restaurant attracts customers. To help attract these customers, the restaurant has installed visible security cameras, bright lights, and a security guard in the parking lot. The Tanner family has also taken steps to keep the exterior of the restaurant clean to maintain its appearance. It has taken these steps because its potential customers are concerned about reliability. responsiveness. assurance. tangibles. empathy.
tangibles
Hilton Hotels & Resorts often have elegant entrances that may include marble and other high-end features. This is done to indicate the amount Hilton paid its architects and designers. the price Hilton will charge for a room. how successful Hilton is as a company. the taste of Hilton's management team. the quality of Hilton.
the quality of Hilton
Tutors, attorneys, and consultants are most likely to price their services based on ____, while auto repair, hair stylists, and house painters are likely to price their services based on ___. time; functions performed functions performed; time demand; objectives accomplished objectives accomplished; time time; demand-based pricing.
time; functions performed
Ricky owns a bowling alley that prides itself on its customer experience while bowling. Ricky spends time each week responding to any negative online reviews to try to find out what went wrong with the customer's experience and find a way to satisfy the customer. He knows how powerful ____ is/are for services and wants to have a successful business. customer referrals intangibles customer expectations word-of-mouth communication customer perceptions
word of mouth communication
Jack and Amy are purchasing their first home and have certain expectations for the mortgage company with which they are working. After a long series of "unexplainable" delays, Jack and Amy become very frustrated and decide to stay in their apartment at least another year. The mortgage company failed to provide service within Jack and Amy's ___________. desired responsiveness specifications service acceptance perceptions of quality zone of tolerance
zone of tolerance
Raquel hired a lawn care service to mow her lawn and trim her trees and bushes weekly. She had expectations as to how her lawn and landscaping would look every week. After a while, the company started missing appointments and would forget to trim some of her bushes, leaving them overgrown. She decided to hire a new lawn care service because the first one failed to provide service within her realm of expectation. desired quality. zone of tolerance. benefit acceptability zone. level of satisfaction.
zone of tolerance