Deck 10: Services and Not-For-Profit Marketing

Question 1

More than three out of four employed Canadians now work in the service industry.

Answer 1

True

Question 2

In the B2B context, a business service sells assistance and experience rather than a tangible product.

Answer 2

True

Question 3

Canada has always been a service-dominated economy.

Answer 3

False

Question 4

Molly Maid, a company that cleans homes and office spaces, is an example of a service organization.

Question 5

A major manufacturer retains the services of an independent corporate lawyer. This is a B2B service.

Question 6

E-commerce is eliminating the need for service personnel.

Question 7

The intangible aspect of a service is a challenge that a marketing organization must overcome when making its service appealing to a target market.

Question 8

To deal with the inseparability aspect of a service, providers must train staff who deliver the service.

Question 9

Federal Express is a typical service product because its customer appeal is its intangible qualities.

Question 10

McDonald's focuses on the variability in quality aspect of service by offering intensive training programs to all employees.

Question 11

The notion that a hotel room sits empty when business travel drops off, even while the business accrues the cost of maintaining that room, is tied to "perishability of demand."

Question 12

Employee training is a strategy that a major bank can use to deal with both service inseparability and quality variability.

Question 13

Perishability of demand is a common characteristic that many service industries such as coffee shops must manage.

Question 14

When people purchase a holiday, they rely on marketing communications and reviews on social media because the product is intangible.

Question 15

When a WestJet airplane flies with a 50% load, there is a cost of perishability of demand.

Question 16

In the marketing of services, a supplier quotes a price to a buyer. Prices for services are never negotiable.

Question 17

In the service sector, the relationships between buyers and sellers are often close; therefore, the distribution channels tend to be indirect.

Question 18

A hotel offering clients a specific type of bed is addressing the challenge of inseparability.

Question 19

When guests of a fine dining restaurant report that on evenings when Steve is not working something is missing from their experience, they are noting a perishability of demand issue.

Question 20

When golf course green fees are lower in the early spring and late fall it speaks to the variability in quality of services.

Question 21

Traditional pricing is common in the legal profession.

Question 22

If an intermediary, such as an insurance agent, is used in the distribution of a service, their primary role is to create demand for the service.

Question 23

A good example of an intangible quality that sells a service is Air Canada offering many more departure times than its competitors.

Question 24

The not-for-profit marketplace today is as competitive as any commercial marketplace.

Question 25

The Humane Society advertising campaigns designed to encourage the public to not give pets as gifts at Christmas time is an example of idea marketing.

Question 26

Pollution Probe promoting ecological concerns, such as "Reduce, Reuse, Recycle,"is people marketing.

Question 27

Not-for-profit organizations need to consider the competition in their marketing strategies.

Question 28

The psychological satisfaction received in exchange for a donation to a not-for-profit organization is a benefit this organization provides its donors.

Question 29

Fundraising for the Vancouver General Hospital and the University of Toronto are examples of place marketing.

Question 30

The primary objective of people marketing is to create or maintain a positive image of an individual among a target group.

Question 31

FedEx's slogan "Relax. It's FedEx."is marketing the intangible quality of consistency.

Question 32

Destination British Columbia's "Super, Natural" slogan is part of place marketing.

Question 33

Through its marketing communications, a community college tells its audience that better career opportunities are available to those who continue their education with them. This constitutes organization marketing.

Question 34

In contrast to the marketing concept where organizations first discover consumer needs then attempt to satisfy them, not-for-profit organizations believe that they already know what the public needs.

Question 35

When people return regularly to the same restaurant because they enjoy the people who work there, the relevant intangible quality is attitude.

Question 36

Which of the following has had an influence on the growth of services in Canada?

A) social changes
B) legislative changes
C) adoption of a service orientation by companies
D) higher education levels of consumers
E) decrease in manufacturing

Question 37

A doctor or dentist extends his or her hours of operation in response to patient needs. What part of the services marketing mix does this fall under?

A) availability
B) attitude
C) environment
D) supplementary
E) consistency

Question 38

Which of the following statements is not true regarding Corporate Social Responsibility?

A) A CSR index of 74.8% is considered relatively low.
B) Companies that put effort into CSR see significant returns.
C) Cultivating a strong corporate image enables companies to receive goodwill when they perform public services.
D) CSR involves doing the right things, but also communicating them effectively.
E) Service expectations are changing due to increased digital empowerment.

Question 39

The service industry is critical to the Canadian economy. Approximately what percentage of Canadians work in the service industry?

A) 55%
B) 65%
C) 75%
D) 85%
E) 95%

Question 40

The ABC company was built on providing tools for manual accounting systems (such as ledgers and journals). With the advent of technology, the company has expanded and now provides accounting software and consulting services to guide its client companies through the reports the systems can generate. What element of the services marketing mix does this fall under?

A) business
B) innovation
C) attitude
D) availability and timing
E) supplementary service

Question 41

Rising demand for household services is a result of

A) outsourcing.
B) changing customer buying behaviour.
C) firms adopting a marketing philosophy.
D) economic prosperity.
E) technological advances.

Question 42

ADP Canada offers human resources and payroll services to businesses. This service company falls into which primary service category?

A) business assistance
B) globalization
C) financial services
D) B2B service
E) technology

Question 43

Banks, software companies, advertising agencies, and food service businesses are examples of what industry sector?

A) financial sector
B) service industry
C) government sector
D) resource industry
E) business sector

Question 44

The advice offered by a financial planner cannot be seen, heard, or touched. This is an illustration of a service's

A) intangibility.
B) flexibility.
C) perishability.
D) variability.
E) inseparability.

Question 45

Margaret will book an appointment at her regular hair salon only if her regular stylist is available. This is an example of

A) inseparability.
B) intangibility.
C) flexibility.
D) variability.
E) perishability.

Question 46

The growing number of franchises and the training of franchisees have resulted in the consistent provision of services within an organization. Such a development is a response to the ________ of a service.

A) perishability
B) inseparability
C) tangibility
D) variability in quality
E) intangibility

Question 47

All Metropolitan Life insurance agents perform the same service, but how they approach and deal with their customers can vary dramatically. This difference demonstrates the ________ of a service.

A) divisibility
B) intangibility
C) inseparability
D) perishability
E) variability in quality

Question 48

When FedEx focuses on always meeting delivery deadlines, it is attempting to better communicate the ________ of its service.

A) consistency
B) perishability
C) inseparability
D) divisibility
E) quality variability

Question 49

McDonald's prides itself on the quality, service, and value it offers the public. The organization works hard to train all employees on how to prepare and deliver food in a standardized way. Such a practice is a response to the ________ of a service.

A) intangibility
B) quality variability
C) inseparability
D) perishability
E) flexibility

Question 50

In the fast-food business, service can be maintained at the same level during both fast and slow periods. This is accomplished by adjusting the supply of part-time labour. Such a practice is a response to the ________ of a service.

A) inseparability
B) inconsistency
C) quality variability
D) intangibility
E) perishability of demand

Question 51

A five-star hotel that offers discount rates during low occupancy periods is addressing

A) perishability of demand for their service.
B) inseparability of their service and the provider of the service.
C) intangibility of their service.
D) quality variability of their service.
E) social issues.

Question 52

FedEx's promise to deliver "when it absolutely, positively has to be there"is a good example of a firm addressing

A) the intangibility of their service.
B) the perishability of demand for their service.
C) the inseparability of their service and the provider of the service.
D) the risk factor in its service.
E) the quality variability of their service.

Question 53

The assistance given to an elderly passenger on a long flight will influence his or her

A) attitude.
B) needs.
C) beliefs.
D) values.
E) motives.

Question 54

Because services are intangible, it is difficult for consumers to assess them when making purchase decisions. What is the implication of this for marketers?

A) Consumers will not have preconceived attitudes.
B) The personal touch is essential.
C) Word of mouth is all that really matters.
D) There is nothing marketers can actually show.
E) The marketing communications need to express the value of the service in tangible terms.

Question 55

Seasonal demand for services, such as hotels, theme parks, and air travel, create operations management challenges for these service companies because of

A) inseparability.
B) perishability of demand.
C) intangibility.
D) reliability.
E) variability in quality.

Question 56

Establishing standards for professional services such as the CHRP designation for human resource professionals or the CPA designation for accountants attempts to resolve the uncertainty that clients of these professionals experience because of which service characteristic?

A) professionalism
B) reliability
C) perishability of demand
D) variability in quality
E) intangibility

Question 57

Steve is the owner of a fine dining establishment in Vancouver. He makes a point of visiting each table during a meal to ensure his customers feel welcome and that their business is appreciated. Guests report that on evenings when Steve is not working, something is missing from their experience. They are commenting on the ________ of this service.

A) inseparability
B) intangibility
C) expiration
D) quality variability
E) people marketing

Question 58

A local restaurant has been receiving mixed reviews from its patrons. Meals prepared by the weekend chef are earning greater accolades than those of the weekday chef even though the dishes and menu are the same. It can be concluded that the restaurant is having difficulty with which service characteristic?

A) vulnerability of staffing
B) intangibility
C) inseparability
D) quality variability
E) perishability of demand

Question 59

Golf course green fees are often lower in the early spring and late fall than during the peak season. This promotional strategy is an attempt to manage the ________ of this service.

A) inseparability
B) quality variability
C) perishability of demand
D) vulnerability of staffing
E) intangibility

Question 60

Which of the following statements about the pricing of a service is true?

A) Prices can be negotiated between a seller and buyer.
B) A price quotation that has been issued to a buyer represents the final price offered by the seller.
C) All service pricing is regulated by a government body that approves and rejects price increases.
D) The commission rates charged by competitors within an industry vary considerably.
E) Traditional or established service prices are virtually non-existent.

Question 61

In services marketing, numerous companies may compete for a job on the basis of the submission of a price quotation. A buyer may select the firm that offers the lowest price and continue to discuss price with that firm. This situation is referred to as

A) discounted pricing.
B) regulated pricing.
C) negotiated pricing.
D) traditional pricing.
E) flexible pricing.

Question 62

If an intermediary is used in the distribution of a service, its primary role is to

A) establish a pricing structure that is competitive.
B) create demand for the service.
C) collect fees for the service once the transaction is complete.
D) develop promotion plans to create awareness for the service.
E) take title to the service and resell it to potential customers.

Question 63

An auto mechanic will set prices according to a ________ pricing strategy.

A) supply and demand
B) traditional
C) regulated
D) negotiated
E) single source

Question 64

Market research consultants usually determine their prices by using what type of pricing strategy?

A) traditional
B) negotiated
C) regulated
D) skimming
E) head-on

Question 65

When people return regularly to the same restaurant because they appreciate the people who work there, which part of the service intangibles is likely at play?

A) environment
B) supplementary services
C) consistency
D) attitude
E) completeness

Question 66

Despite the very competent doctor and the pleasant nurse that attended to her, Tanya was dissatisfied with the service she received at the walk-in-clinic. She was uncomfortable because the waiting room and examination rooms were dirty and untidy. Which part of the service intangibles was overlooked?

A) attitude
B) availability and timing
C) environment
D) completeness
E) consistency

Question 67

Angela is relating to her friend her most recent experience at the spa. "It was okay, but I found they were trying to rush me. Last time I was there I felt relaxed and welcome."For Angela, her spa experience has failed on which of the intangible qualities that sell a service?

A) completeness
B) consistency
C) environment
D) timing
E) availability

Question 68

Restaurants spend a great deal on interior design, furnishings, lighting, tableware, and so on. These all contribute to which of the intangible qualities that sell a service?

A) environment
B) prestige
C) quality
D) consistency
E) image

Question 69

Advances in online service delivery have had significant impact on which element of the services marketing mix for financial services?

A) pricing
B) consistency
C) service attitude
D) service completeness
E) distribution

Question 70

Not-for-profit marketing refers to

A) the marketing effort and activity of not-for-profit organizations.
B) firms where the marketing is run by a charity.
C) the tax practices of government-funded agencies.
D) pro-bono marketing.
E) marketing practices that are offered by volunteers only.

Question 71

One of the major goals of not-for-profit marketing is to promote social consciousness. This is known as ________ marketing.

A) philosophical
B) social
C) organization
D) people
E) cause

Question 72

Not-for-profit organizations communicate with their publics to promote and support people, causes, ideas, and organizations. This is a different ________ than for-profit organizations, whose goal is to generate a financial return on investment.

A) exchange
B) place
C) target
D) market
E) philosophy

Question 73

Donors to the United Way do not receive any material benefits from the agency itself. Donors realize the ________ from the exchange relate to the psychological satisfaction of helping a worthwhile cause.

A) customer service orientation
B) objectives
C) benefits derived
D) philosophy
E) supplementary services

Question 74

The Stratford Festival Theatre, a not-for-profit organization, communicates with theatre patrons, donors, and to the public at large. What would be the most accurate statement about marketing for not-for-profit organizations today?

A) Public service announcements make it simpler than for business marketing.
B) It is highly competitive and professional brand strategies are necessary.
C) It is the same as marketing a service.
D) It is simpler because no goods are exchanged.
E) It is more complicated because goods and services are exchanged.

Question 75

Prior to the Vancouver Winter Olympic Games, BC Hydro was encouraging its customers to "Join Team Power Smart, commit to reducing your energy consumption by 10% and you'll save money while also earning a chance to win a 2010 Winter Games ticket package."BC Hydro was engaging in

A) multiple promotion.
B) service marketing.
C) advocacy advertising.
D) organization marketing.
E) idea marketing.

Question 76

A recent Canadian Blood Services campaign featured stories of individuals whose lives were saved because of donated blood. Each message concluded with the statement, "Blood, it's in you to give."This campaign focused on which unique element of not-for-profit marketing?

A) objectives
B) exchange
C) philosophy
D) target groups
E) organization

Question 77

Marketing that seeks to gain or maintain acceptance of an organization's objectives and services is called

A) advocacy marketing.
B) societal marketing.
C) organization marketing.
D) service marketing.
E) target marketing.

Question 78

What kind of marketing would apply to the Vancouver Canucks?

A) idea
B) image
C) advocacy
D) cause
E) people

Question 79

What kind of not-for-profit marketing was used in the "More to Discover"Ontario Tourism campaign?

A) image
B) social
C) place
D) organization
E) advocacy

Question 80

Place marketing is

A) another description for advocacy marketing.
B) the marketing of a destination.
C) in-store merchandising.
D) the practice of placing products in movies for viewers to see.
E) marketing to solidify a product's or service's position.