Chapter 13 MKGT 351
Which of the following is not a service product?
A 100 percent service satisfaction guarantee
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 is most likely to be considered a business service?
Consulting
87. Which of the following service providers are most likely to use demand-based pricing?
Cruise SHIP
Which of the following services falls closest to the middle of the tangibility continuum?
Dinner at the Olive Garden
Which of the following factors have contributed the least to the growth of services in the U.S. economy?
E) Increased number of high-tech goods
Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and
Heterogeneity
67. 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
69. 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
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
Personal trainers cannot complete their work without their clients present because of the _______ feature 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 of the following issues is least important in nonprofit marketing?
Profits
Because practically all marketers provide some services, ___________ typically do not exist in todays business environment.
Pure goods
81. Piano teachers, tutors, attorneys, and consultants are most likely to price their services based on
Time
Which of the following countries was the worlds first service economy?
United States
88. Which of the following service providers are most likely to bundle-price their services?
a) Cable television companies
121. A university's student body would be considered its ___________ public, and parents, alumni, and trustees would be included as its ___________ public.
a) client; general
96. Services have three evaluation attributes: search qualities, experience qualities, and ___________ qualities.
a) credence
54. The necessary interaction between service provider and customer that allows a service to be delivered is called
a) customer contact.
63. The heterogeneity characteristic of services provides marketers with tremendous opportunity to
a) customize their services to meet unique individual needs.
70. 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
a) emphasizing tangible cues in promoting the service.
42. The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ______ of services.
a) heterogeneity
59. 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.
b) supplementary
120. In nonprofit organizations,
b) the direct consumers of the product are the client public.
62. 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?
c) Heterogeneity
51. Which of the following service providers would typically call their customers "clients"?
c) Lawyers
117. Select the true statement about nonprofit marketing.
c) Major nonprofit marketers in the United States are social causes and charitable organizations.
56. The level of interaction necessary between a customer and service provider in order to complete a service is called
c) customer contact.
74. By installing ATMs, banks have increased production capacity and reduced the number of personnel. This results in a decrease in
c) customer contact.
The intangibility aspect of a service means that
consumers may have a problem evaluating service offerings.
Any human or mechanical effort that adds value to a product is called
customer service
91. Who judges service quality?
d) Customers
43. 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?
d) Heterogeneity
122. According to the text, the direct consumers of a nonprofit organization's ideas or services are called its _________ public.
d) client
52. Client-based relationships are most likely to be developed by
d) doctors.
100. There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and
d) employee empathy.
41. Because of a service's ___________, standardization and quality are difficult to control.
d) heterogeneity
89. Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach?
e) For some services, customers look for the low-cost provider, which is what Safe claims to be.
45. 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?
e) Heterogeneity
57. Which of the following is the best example of a high-contact service?
e) Plastic surgery
71. What are the three primary ways that marketers deliver services?
e) Service facilities, customer's home, or from a distance
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.
47. 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
Machinery such as ATMs and online customer services can reduce the ______ that comes from increased contact with human employees.
heterogeneity
40. 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 growth of business services is largely attributed to
increases in the complexity and competitiveness of business environments.
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.
Service industries account for ____ of the gross domestic product of most developed nations.
nearly three-quarters
According to your text, one perspective from which to view services is as a ______ targeted at a(n) ________.
performance; audience
37. 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.
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.
The fact the services cannot be inventoried and then sold at a later date is called
perishability.
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.
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.
115. 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 service marketing, the most important link to the customer is
well-trained contact employees.
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.
77. 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.
a) intangibility
83. 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
a) peak demand.
The two levels of expectations that consumers generally have about services are
acceptable and desired.
116. Which of the following is similar for both for-profit and nonprofit marketing?
b) Ability to use effective marketing activities
80. 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?
b) Demand-based
58. Which of the following statements about customer contact in services marketing is false?
b) High-contact services are less expensive to deliver because they are typically equipment-based.
123. Which is the most typical distribution channel used in nonprofit organizations?
b) Nonprofit organization, client
125. ___________ is the value of the benefit that is given up by selecting one alternative rather than another.
b) Opportunity cost
119. Select the true statement regarding nonprofit marketing.
b) Segmentation techniques used to identify target markets in for-profit businesses are also applicable to reaching nonprofit target markets.
98. 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.
c) credence
65. 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.
d) intangibility
66. Clean, sharp looking employees with appropriate uniforms help assure customers about service quality and therefore address the _____ of services.
d) intangibility
76. Symbols such as the Travellers' Financial Services umbrella are designed to help customers overcome the ________ of services.
d) intangibility
85. 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
d) off-peak demand.
In general, differences between goods and services are determined by the
degree of tangibility.
Which of the following products associated with weddings is most likely to be considered a service?
e) String quartet music
90. American Life uses leather-look portfolios and high-quality paper and printing for its life insurance policies in order to indicate
e) the quality of its services.
124. Distribution for nonprofit organizations is
e) typically characterized by short channels.
86. Any service provider that offers time-sensitive services receives most of its revenue during
a) peak demand.
73. Using appointments or reservations for scheduling delivery of services is an attempt to address the ___________ characteristic of services.
a) perishability
82. Demand-based pricing most closely relates to the _____ of services.
a) perishability
101. Attributes which are assessed only during the consumption of a service are called
a) tangibles.
118. Children with muscular dystrophy who receive treatments developed through research programs funded by MDA represent ___________ for this charitable organization.
a) target publics
50. Client-based relationships are least likely to be developed by
a) towing services.
104. Surveys, focus groups, and customer comment cards are all methods used by service companies to
a) understand customer needs and expectations.
44. What should marketers do to promote the consistency and reliability of their services most effectively?
b) Train employees and develop standard procedures for dealing with customers
55. Which of the following is a low-contact service?
b) Website design
61. 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.
b) core; supplementary
79. Production and consumption of services must simultaneously occur due to the _____ characteristic of services.
b) heterogeneity
103. 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
b) responsiveness.
94. 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.
b) search
95. 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?
c) Search
99. 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
c) credence qualities.
84. 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
c) demand-based pricing.
53. When service companies change high-contact services into low-contact services, the
c) service becomes less personalized.
60. A service is usually offered as part of a bundled package of services with a core service and one or more ________ services.
c) supplementary
93. 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
c) the customer's perceptions.
108. In most service industries, customer-contact employees are
c) the lowest-paid and least-trained employees.
78. Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on
c) word of mouth.
64. 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
d) intangibility.
75. Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and
d) price.
68. In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to
d) promise too much and cause customer expectations beyond what they can deliver.
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
d) tangibles.
49. The main characteristic of a ___________ is that customers are satisfied to the point that they use a service repeatedly over a period of time.
e) client-based relationship
48. 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
e) client-based relationships.
97. 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
e) credence qualities.
72. The marketing channels for services are usually
e) direct from provider to customer.
92. Consumers look closely at service quality when comparing competing services because
e) services are very difficult to evaluate.
