Deck 12: Goods Versus Services Marketing

Question 1

Service marketing is comprised of

A) leased goods, altered goods, and rented goods.
B) personal services, leased goods, and hidden services.
C) rented goods, altered or maintained goods, and nongoods.
D) business services, nonbusiness services, and operating supplies.

Answer 1

rented goods, altered or maintained goods, and nongoods.

Question 2

Which of these is NOT an example of a rented-goods service?

A) Airline travel by a potential investor in a hotel
B) A hotel room used by a business executive for a conference in a foreign city
C) Legal services which involve the preparation of a will for a retired school teacher
D) The leasing of an automobile by a tourist

Answer 2

Legal services which involve the preparation of a will for a retired school teacher

Question 3

An example of an owned-goods service is

A) office building rental.
B) appliance repair.
C) accounting services.
D) consulting services.

Answer 3

appliance repair.

Question 4

Which statement about durable goods is NOT correct?

A) The value of U.S.-made nondurable goods exceeds that of durable goods.
B) U.S. final consumers purchase significantly more nondurables than durables.
C) Leading durable goods in terms of sales include transportation equipment, electronic and electrical machinery, and machinery.
D) Nondurables are purchased more frequently and consumed more rapidly than durables.

Question 5

The leading service economy in the world is

A) Japan.
B) Germany.
C) Great Britain.
D) the United States.

Question 6

What percent of the U.S. labor force is employed in service jobs?

A) 25
B) 50
C) 60
D) 80

Question 7

Which statement concerning the impact of services on the economy is correct?

A) About one-half of U.S.-based service expenditures are made by final consumers.
B) The United States is the leading service economy in the world.
C) In the United States, services account for $3 trillion in annual spending.
D) More than 90 percent of the U.S. work force is now employed in a service capacity.

Question 8

Many economists have argued that the true scope of the impact of services on the economy has been understated and the impact of goods has been overstated due to

A) foreign currency devaluations.
B) derived demand.
C) the hidden service sector.
D) the underground economy.

Question 9

The data on service employment and expenditures are often underestimated because

A) services such as delivery and installation are recorded as goods marketing when undertaken by manufacturers.
B) final consumers engage in do-it-yourself activities.
C) many services are exported.
D) interest payments are counted as goods.

Question 10

Goods and services can be categorized along a scale from pure goods to pure services using a

A) goods/services continuum.
B) core and peripheral services distinction.
C) service blueprint.
D) classification system for services.

Question 11

Which of the following best illustrates the purchase of a pure good?

A) Leasing of an automobile
B) Self-service gasoline
C) Full-service gasoline
D) Interior decorator assistance in the purchase of home furnishings

Question 12

The basic services that companies provide for their customers to be competitive are ___ services.

A) core
B) peripheral
C) selective
D) people-based

Question 13

The supplementary services that companies provide for their customers are considered ___ services.

A) people-based
B) differential
C) core
D) peripheral

Question 14

Which statement concerning core and peripheral services is NOT correct?

A) A marketer has greater latitude in choosing among core services than among peripheral services.
B) Core services are basic services that a firm should provide to its customers.
C) Peripheral services are supplemental services.
D) Peripheral services help a firm gain a competitive advantage.

Question 15

Although peripheral services may increase a firm's level of investment, they may also enable that firm to

A) better balance supply and demand.
B) make services more tangible to consumers.
C) improve employee human-relations skills.
D) create and maintain a competitive advantage.

Question 16

Which statement concerning the degree of tangibility of services is NOT correct?

A) Services differ significantly in terms of their tangibility.
B) The less tangible a service, the less service marketing resembles goods marketing.
C) Rental and owned-goods services are more tangible than nongoods services.
D) Performance on nongoods services can be judged before the service is completed.

Question 17

Rental goods, owned goods, and nongoods services are differentiated from one another on the basis of

A) degree of customer contact.
B) goal of service provider.
C) degree of labor intensiveness.
D) degree of tangibility.

Question 18

Service provider training in interpersonal skills is most important when

A) customer contact is high.
B) customer contact is low.
C) services are equipment-based.
D) rental goods are involved.

Question 19

Training in interpersonal skills is LEAST important for a service provider when

A) nongoods services are involved.
B) the degree of customer contact is low.
C) the technical skill of the service provider is low.
D) the technical skill of the service provider is high.

Question 20

Which of these is NOT a characteristic that differentiates services from goods?

A) High labor intensiveness
B) Intangibility of the service
C) Inseparability of the service from the service provider
D) Variability in quality

Question 21

Because many services cannot be physically stored or packaged, they are said to be

A) perishable.
B) variable in quality.
C) inseparable.
D) intangible.

Question 22

Services CANNOT be displayed or inspected before purchase due to which characteristic?

A) Perishability
B) Inseparability
C) Intangibility
D) Variability

Question 23

The perishability attribute of services means they CANNOT be

A) distinguished from their service providers.
B) promoted using endorsements from professionals or past users.
C) stored for future sale.
D) marketed through independent channel members.

Question 24

Unused capacity cannot be stored and then shifted from a slow time period to a busy time period. This refers to which characteristic of services?

A) Inseparability
B) Perishability
C) Variability in quality
D) Intangibility

Question 25

How well a repair is performed often depends on the specialized knowledge and judgment of the individual service provider. This refers to which service characteristic?

A) Perishability
B) Inseparabilty
C) Variability in quality
D) Intangibility

Question 26

The perishability attribute of services requires companies to

A) maintain a detached service provider-consumer relationship.
B) carefully match supply and demand for their services.
C) train employees in human relations skills.
D) develop tangible representations for their services.

Question 27

Which characteristic of services makes it difficult for a service provider to open an additional location?

A) Perishability
B) Intangibility
C) Variability
D) Inseparability

Question 28

A beauty parlor finds that a good hair stylist has a loyal following and can take a large proportion of his or her clients to a new location. This illustrates which characteristic of services?

A) Perishability
B) Intangibility
C) Variability
D) Inseparability

Question 29

The high costs and low reliability of services can often be improved by

A) deregulating services.
B) industrializing services.
C) training personnel in communication skills.
D) matching supply and demand.

Question 30

When a service firm decides to automate operations, it is involved with which of these concepts?

A) Peripheral services
B) Hard technologies
C) Soft technologies
D) Core services

Question 31

Pre-planned systems sold as one unit such as vacation packages (with air travel, car rental, and hotel accommodations) are substituted for individual services through

A) peripheral technologies. .
B) hard technologies.
C) soft technologies
D) hybrid technologies.

Question 32

Pre-planned systems and automation can be combined via ___ technologies by a service operator.

A) core
B) hard
C) hybrid
D) soft

Question 33

A service blueprint can be best defined as

A) a visual portrayal of the service process.
B) the industrialization of services through hard technologies.
C) the use of pre-planned systems for services.
D) the use of all technologies (hard, soft, and hybrid) to reduce variability in services.

Question 34

According to research, which of these does NOT represent a major consumer service expectation?

A) Access
B) Courtesy
C) Cleanliness
D) Competence

Question 35

Service firms have often lagged manufacturing firms in developing and enacting marketing plans because

A) of the existence of the hidden service sector.
B) many service providers have concentrated on their technical skills, not on their marketing ability.
C) of the deregulation of services.
D) services are intangible, as well as perishable.

Question 36

Which statement concerning advertising by attorneys is correct?

A) Attorneys are not allowed to advertise their services.
B) Attorneys can advertise their services, but cannot legally advertise their prices.
C) For a little more than 30 years, attorneys have been permitted to advertise their services.
D) Even though advertising by attorneys has been legal for more than 30 years, legal service advertising has not significantly increased since this time period.

Question 37

Marketing activities conducted by organizations and individuals that operate in the public interest or to foster a cause involve

A) socioeconomic marketing.
B) service marketing.
C) intangibles marketing.
D) nonprofit marketing.

Question 38

In contrast with profit-oriented marketing, nonprofit marketing is more likely to be involved with

A) financial profits.
B) return on investment goals.
C) fostering a cause.
D) the sale of goods and services above cost.

Question 39

In nonprofit marketing, prices charged by nonprofit organizations

A) have to at least cover the incremental costs of these services.
B) may be in the form of labor, as well as money.
C) may be changed as a result of supply and demand.
D) may have no relation to the actual cost or value of these services.

Question 40

The use of marketing to increase the acceptability of social ideas is referred to as

A) social marketing.
B) nonprofit marketing.
C) the marketing of ideas.
D) green marketing.

Question 41

Exchanges in nonprofit marketing are most likely to be

A) between board members and clients.
B) between donors and clients.
C) related to consumer payments.
D) both monetary and nonmonetary.

Question 42

Which statement about objectives in nonprofit marketing is correct?

A) Objectives in nonprofit marketing can be easily stated in terms of a single dimension.
B) It is easier to measure success or failure in nonprofit marketing than in profit-based marketing.
C) Goals in nonprofit marketing generally relate to goods and services.
D) Success or failure in nonprofit marketing cannot be measured only in financial terms.

Question 43

The constituency which a nonprofit organization serves is its

A) clients.
B) associates.
C) members.
D) donors.

Question 44

The constituency from which a nonprofit organization receives resources is

A) donors.
B) members.
C) clients.
D) recipients.

Question 45

The typical nonprofit organization has two constituencies:

A) clients and donors.
B) members and the board of directors.
C) members and potential members.
D) the target market and the general public.

Question 46

An example of a nonprofit hospital's donor is a

A) union official.
B) volunteer.
C) patient.
D) physician.

Question 47

In comparison with profit-oriented firms, a legal advantage of nonprofit organizations is their

A) tax-deductible contributions.
B) exemption from minimum-wage laws.
C) lower costs for utilities.
D) lower costs in buying goods and services.

Question 48

Nonprofit marketing may be classified on the basis of ___, organization structure, goals, and constituency.

A) place
B) tangibility
C) ideas
D) resources

Question 49

Nonprofit organizations may have one of three alternative structures: government-affiliated, private, or

A) centralized/decentralized.
B) religious-affiliated.
C) cooperative.
D) client / user and donor.

Question 50

The goals of nonprofit organizations can be classified in terms of

A) financial and tangible.
B) social and political.
C) attainable and unattainable.
D) health, education, welfare, and other.

Question 51

Which of these examples involves service marketing?

A) The purchase of a car at the end of a three-year lease
B) The leasing of a car on a four-year lease
C) The purchase of a copier with a service contract
D) The purchase of a house with a 15-year mortgage

Question 52

For a final consumer, an acceptable alternative to an owned-goods service is

A) a high-contact customer service.
B) do-it-yourself labor.
C) an industrialized service.
D) a professional service provider.

Question 53

Which type of service is often very costly since it generally must be performed at the customer's premises?

A) Owned-good service
B) Rented-good service
C) Nongood service
D) Nondurable good service

Question 54

Which type of service involves the highest degree of tangibility?

A) Owned-goods service
B) Durable goods service
C) Nongoods service
D) Rented-goods service

Question 55

Because IBM is classified as a manufacturer, the services it provides (such as dealer training, delivery, and warranty repairs) are not recorded. This illustrates

A) the hidden service sector.
B) the industrialization of services.
C) service intangibility.
D) the inseparability of goods and services.

Question 56

Which of these is closest to a pure good on the goods/services continuum?

A) Computer software designed to print out the appropriate tax returns
B) An accountant providing advice on an individual's tax return
C) Computer software designed to print out the appropriate tax returns plus a toll-free customer support hotline
D) A computer sold with pre-loaded "ready-to-run" tax-return software

Question 57

Which of these is closest to a pure service on the goods/services continuum?

A) An accountant providing advice on an individual's tax return
B) Computer software designed to print out the appropriate tax returns
C) A computer sold with pre-loaded "ready-to-run" tax-return software
D) Computer software designed to print out the appropriate tax returns plus a toll-free customer support hotline

Question 58

Which of these is closest to being a pure service?

A) Purchase of a computer with an in-office service contract
B) The use of a computer service bureau
C) Purchase of a computer with in-office installation and training
D) Purchase of a computer, software, and a printer from a single supplier

Question 59

Which of these is NOT an example of a peripheral service for a car-repair firm?

A) Washing and vacuuming all cars after their repair
B) Repairing cars at the promised price and at the promised time
C) Providing transportation for the vehicle owners to the nearest train or bus stop
D) Providing customers with an accurate estimate of repair costs and repair time

Question 60

The labor intensity involved with a service often increases if that service

A) is provided at the customer's home or place of business.
B) uses soft technologies.
C) uses self-service operations.
D) is deregulated by a governmental agency.

Question 61

Human relations and interpersonal communications skills training is most important in services with

A) variability in quality.
B) high intangibility.
C) close service provider/customer contact.
D) high perishability.

Question 62

It is often most difficult for service firms to develop chain organizations because of which service characteristic?

A) Intangibility
B) Perishability
C) Inseparability
D) Variability

Question 63

A service firm can help consumers perceive its offerings in a more tangible manner by

A) operating as an independent, rather than as a franchisee.
B) reducing its prices.
C) associating intangible services with tangible objects.
D) standardizing services via mechanization and automation.

Question 64

The Travelers Insurance Company's "umbrella" corporate symbol is intended to reduce the effects of what service characteristic?

A) Intangibility
B) Perishability
C) Variability
D) Inseparability

Question 65

Because of the perishability characteristic of services, which of these activities is the most important for service firms?

A) Advertising
B) Pricing
C) Personal selling
D) Balancing supply and demand

Question 66

"In the supermarket, the lettuce wilts; in the theater, the curtain rises." This best refers to what characteristic of services?

A) Intangibility
B) Inseparability
C) Perishability
D) Variability

Question 67

Highly seasonal service providers, such as airlines, accountants, and landscape gardeners, cannot shift their supply from periods of slow sales to periods of high sales levels. This refers to which characteristic of services?

A) Inseparability of services
B) Variability in service quality
C) Perishability
D) Intangibility

Question 68

The Following Questions are linked to this scenario: A major hotel chain with a large percentage of its business in the winter season and slow summer sales is rethinking its overall service strategy.

-The hotel chain can adjust its supply to correspond with high customer demand by

A) training personnel to perform multiple tasks.
B) marketing new services to complement existing services.
C) educating consumers to use services during peak periods.
D) offering reductions in price in peak periods.

Question 69

The Following Questions are linked to this scenario: A major hotel chain with a large percentage of its business in the winter season and slow summer sales is rethinking its overall service strategy.

-A hotel chain can encourage customers to increase their patronage during nonpeak periods (where it has significant excess capacity) by

A) hiring part-time personnel during peak periods.
B) marketing similar services to segments having different demand patterns.
C) marketing new services not affected by existing capacity constraints.
D) offering price reductions in nonpeak periods.

Question 70

What environment is most difficult for a service provider due to the perishability of services?

A) Deregulation
B) High customer contact
C) Highly seasonal demand
D) High competition

Question 71

The use of machinery to perform automobile diagnostics, to properly calibrate a car during a tune-up, and to determine parts required in a front-end alignment is designed to reduce service

A) variability in quality.
B) tangibility.
C) perishability.
D) inseparability.

Question 72

Employee training, standardized procedures, and mechanization and automation are used by service firms to reduce

A) service perishability.
B) value added.
C) customer contact.
D) service variability.

Question 73

An auto service firm has purchased new state-of-the-art equipment to diagnose a car's front end. The equipment prints out the car's performance, as well as the manufacturer's standard for the car. In addition, the system recommends new parts and services such as ball joints or wheel alignment. This system represents

A) service variability.
B) peripheral services.
C) the industrialization of services.
D) service tangibility.

Question 74

Which form of industrialization of services is LEAST capital intensive?

A) Soft technologies
B) Hybrid technologies
C) Hard technologies
D ) Impersonal technologies

Question 75

A quick-oil-change retailer seeks to maintain its advertised 15-minute oil-change policy. To meet the promoted time, the firm developed a timetable. In the first part, a service representative asks the customer to park his or her car in a parking spot near a service bay - 10 seconds. In another segment, one attendant adds oil, while another vacuums the car's interior - 3 minutes. This map of the service exchange is called a

A) GANT chart.
B) time evaluation program.
C) service chart.
D) service blueprint.

Question 76

In deregulated service industries such as banking, transportation, and communication, there is

A) less focus on cost control.
B) less importance placed on customer service.
C) an increasing recognition of the role of marketing in a firm's success or failure.
D) reduced competition since there are increased barriers to entry for potential competitors.

Question 77

As a consequence of a Supreme Court ruling a little more than 30 years ago,

A) lawyers have begun to open branch units.
B) lawyers have begun to use shopping center-based locations that offer high customer traffic.
C) lawyers and other service professionals have begun to extensively advertise in mass media.
D) more lawyers have begun to specialize.

Question 78

Which of these is most likely to be a goal for a nonprofit organization?

A) To increase revenues 20 percent by raising prices by 35 percent
B) To reduce labor costs by 12 percent by developing an effective senior citizen-based volunteer program
C) To raise the price of services to cover their total costs
D) To limit the chosen target market to exclude unprofitable segments

Question 79

A politician's personal appearance to increase the awareness for a new energy conservation program constitutes which element of the marketing mix?

A) Promotion
B) Price
C) Product
D) Distribution

Question 80

Social marketing is most likely to involve the marketing of

A) services.
B) ideas.
C) places.
D) people.