Question 1

Chelsea runs a stock market consultancy firm. The firm advises its clients on where to invest and how to earn maximum profits. Given this information, Chelsea provides _____ through the consultancy firm.

Accepted Answer

Chelsea's consultancy firm provides a service by giving advice to clients on where to invest and how to earn maximum profits. The other options - value, branding, and profits - may be outcomes of the service provided, but the primary offering is the service itself.

Question 2

Rent and Drive is a car rental company. It prices its rentals based on operations-oriented pricing. In this scenario, Rent and Drive:

Accepted Answer

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Question 3

Explain the factors that should be emphasized when deciding distribution strategies for service organizations.

Accepted Answer

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Question 4

Briefly explain what service firms must do to be successful in the global marketplace.

Accepted Answer

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Question 5

Which of the following is a difference between profit organizations and nonprofit organizations?

Accepted Answer

The main goal of a profit organization is to maximize profits and sales, while nonprofit organizations aim to redistribute income or provide services to their community.

Question 6

According to the gap model of service quality, the gap between what management thinks customers want and the quality specifications that management develops to provide the service results from:

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Question 7

_____ is a strategy that uses technology to deliver tailor-made services on a large scale.

Accepted Answer

Mass customization is a strategy that uses technology to deliver tailor-made services on a large scale. This strategy allows companies to efficiently personalize products or services to meet individual customer needs and preferences.

Question 8

What are the challenges faced by service providers while deciding a pricing strategy?

Accepted Answer

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Question 9

According to the gap model of service quality, the gap between the service that customers receive and the service they want:

Accepted Answer

The gap between the service that customers receive and the service they want can be positive if the service exceeds expectations or negative if it falls short.

Question 10

At the _____ of relationship marketing, a firm uses financial and social bonds but offers value-added services that are not readily available from other firms.

Accepted Answer

At the structural level of relationship marketing, firms provide value-added services and create structural bonds that are unique and not easily replicated by competitors, enhancing customer loyalty.

Question 11

Describe the four promotion strategies that marketers use to promote services.

Accepted Answer

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Question 12

_____ refers to the inability of services to be stored, warehoused, or inventoried.

Accepted Answer

Perishability refers to the fact that services cannot be stored and must be consumed at the time they are produced. This is a unique characteristic of services that distinguishes them from physical goods, which can be stored and sold at a later time. Variability refers to the inconsistency in service quality that can occur due to the involvement of human beings in the service delivery process, while reliability refers to the ability of a service to perform consistently over time. Heterogeneity refers to the fact that services are often produced and delivered differently due to the involvement of human beings and the unique circumstances surrounding each service encounter.

Question 13

Which of the following statements is true of a bundled price?

Accepted Answer

A bundled price is a pricing strategy where a firm offers a package of services or products for a single price. This strategy is simpler for a firm to administer than pricing each element separately, as it eliminates the need for complex pricing structures and calculations. Additionally, a bundled price may be preferable when consumers are not willing to pay "extra" for every part of the service, as they may perceive the package as a better value than purchasing each element separately.

Question 14

Which of the following statements is true of the marketing strategies of nonprofit organizations?

Accepted Answer

Nonprofit organizations do not seek to make a profit for redistribution to owners or shareholders. Instead, their focus is often on generating enough funds to cover expenses, which may include salaries for staff, program costs, and overhead expenses. While they may measure success in terms of financial stability or efficiency, their "bottom line" is not profit-driven.

Question 15

Describe the issues relating to target markets that are unique to nonprofit service organizations.

Accepted Answer

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Question 16

_____ is defined as the inability of the production and consumption of a service to be detached.

Accepted Answer

Inseparability refers to the fact that the production and consumption of services are often inseparable. This means that the service must be produced and consumed simultaneously. Unlike with physical products, services cannot typically be produced in advance and stored for consumption later. Therefore, the production and consumption of services are often closely linked, which makes it difficult to detach them.

Question 17

Unlike goods, services:

Accepted Answer

Services are intangible and cannot be stored or inventoried. They are also more heterogeneous and less standardized than goods, as every service experience is unique and dependent on the context and person providing the service.

Question 18

Which of the following statements is true of the global issues in services marketing?

Accepted Answer

The international marketing of services is a major part of global business. This statement is true as the increasing globalization has led to the growth of the service industry across international borders, making it an important part of global business. Options A, C, and D are false statements.

Question 19

A difference between people-processing services and possession-processing services is that possession-processing services:

Accepted Answer

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Question 20

A _____ is an announcement that promotes a program of a federal, state, or local government or of a nonprofit organization.

Accepted Answer

Public service advertisements are specifically created to promote programs and initiatives of government agencies or non-profit organizations, in order to educate and inform the public about important issues or services available to them. Commercial advertisements are designed to promote products or services of for-profit businesses, while retail advertisements are focused on promoting specific products or deals available at retail stores. Surrogate advertisements are advertisements that promote products indirectly, typically because the actual product is not permitted to be advertised due to legal or regulatory restrictions.

Quiz 12: Services and Nonprofit Organization Marketing