Question 1

Hyatt Regency's Platinum Card Program allows members to bypass any line at the check-in desk and get immediate check-in service.In this example,what are developed by offering value-added services that are not readily available from other hotel chains?

Accepted Answer

By offering value-added services like immediate check-in service for Platinum Card Program members, Hyatt Regency develops structural bonds. These bonds are created through unique services or systems that differentiate the company from competitors, encouraging customer loyalty by integrating the customer more deeply into the company's operations.

Question 2

What are the three categories of pricing objectives for services?

Accepted Answer

The three categories of pricing objectives for services are revenue-oriented (maximizing the amount of income generated by the service), operations-oriented (ensuring the service is efficiently produced and delivered), and patronage-oriented (focusing on customer retention and satisfaction). Option A refers to three pricing methods, while options B and D do not accurately describe the categories of pricing objectives for services.

Question 3

You have just started a limousine service and have developed a strategy that stresses quality and luxury.Your limos are always spotlessly clean on the inside,freshly waxed,and stocked with flowers,champagne,free car phones,and televisions.Your drivers are always immaculately dressed and are required to hold the door open for patrons entering and leaving the car.What is your promotional strategy stressing?

Accepted Answer

The promotional strategy is stressing tangible cues such as cleanliness of the limos, stocked with flowers and champagne, and driver's attire. These are all physical, visible aspects of the service that signal luxury and quality to potential customers.

Question 4

A pest control company paints dead roaches on its trucks and uses similar graphics on its letterhead,business cards,and all promotions.The pest control company is using what type of promotion strategy?

Accepted Answer

The pest control company is using tangible cues (i.e. visuals of dead roaches) to promote its business across various mediums. This strategy emphasizes the physical characteristics of the service being offered and can work to increase brand recognition and differentiation.

Question 5

Building value-added services into the delivery system that are not readily available from other firms defines relationship marketing based on the creation of which of the following?

Accepted Answer

Structural bonds refer to the unique features of the delivery system that create barriers for customers to switch to other providers. By building value-added services that are not readily available from other firms, companies can create structural bonds with their customers and foster loyalty. This is a key element of relationship marketing. Social bonds, financial bonds, and personal communication channels are all important components of relationship marketing, but they are not specifically related to the creation of value-added services in the delivery system.

Question 6

Determining costs may limit the usefulness of the objective and can be extremely difficult for a service provider that has adopted which pricing objective?

Accepted Answer

The answer of Determining costs may limit the usefulness of...

Question 7

For service firms,what type of pricing objective focuses on maximizing the number of customers using a service?

Accepted Answer

A patronage-oriented pricing objective focuses on attracting and retaining customers by maximizing the number of customers using a service. This objective is commonly used by service firms that rely on repeat business and word-of-mouth referrals, such as hair salons, restaurants, and gyms. The goal is to create a loyal customer base that will continue to use the service over time, increasing revenue and profitability in the long run.

Question 8

The level of relationship marketing that is least likely to be effective in the long term because its advantage is easily imitated by other firms is based on which of the following?

Accepted Answer

While pricing incentives may initially attract customers, they can easily be imitated by other firms, leading to price wars and ultimately, loss of profitability. Additionally, customers may not be loyal to a company solely based on pricing incentives, and they may switch to a competitor offering a better deal. In contrast, structural bonds, personal communications, and service delivery heuristics are more difficult to replicate and can provide a sustainable competitive advantage in relationship marketing.

Question 9

Satisfied customers are likely to engage in positive word-of-mouth communication,thereby helping to bring in new customers.Thus,a means for attracting,developing,and retaining customer is known as which of the following?

Accepted Answer

Relationship marketing is focused on building long-term relationships with customers by meeting their needs and expectations. Satisfied customers are likely to become loyal customers and engage in positive word-of-mouth marketing, which helps attract new customers. Relationship marketing aims to attract, develop, and retain customers by building strong relationships with them. Ambush marketing, patronage marketing, and affiliation marketing are unrelated to customer retention and relationship building.

Question 10

Many businesses have discovered that the costs associated with attaining a new customer are many times that of retaining existing customers.Thus businesses realize that they can benefit directly from practising what type of marketing?

Accepted Answer

Relationship marketing focuses on building long-term relationships with customers rather than just selling to them once. By retaining existing customers, businesses can save on the costs associated with acquiring new customers and benefit from repeat business and positive word-of-mouth referrals.

Question 11

When WestJet Airlines offers a dramatically reduced seat-sale price in the middle of February it is leveraging which pricing objective?

Accepted Answer

WestJet Airlines is likely using operations-oriented pricing to manage demand and capacity during a typically low-demand period like February, optimizing the use of their resources.

Question 12

Hotels that cater to business travellers have more expensive rates during peak usage times (weekdays)and discount rates for slower times (weekends and holiday periods).Which pricing objective does this illustrate?

Accepted Answer

The answer of Hotels that cater to business travellers have...

Question 13

A management consulting business stays in touch with its business customers with phone calls and greeting cards.It periodically sends out needs-assessment questionnaires and designs new services to meet the needs revealed in these surveys.What is this example of relationship marketing based on?

Accepted Answer

This example of relationship marketing is based on social bonds, as it focuses on building and maintaining relationships with customers through communication and understanding their needs. The phone calls, greeting cards, and needs-assessment questionnaires all facilitate a two-way dialogue between the business and its customers, which helps build social connections and fosters loyalty.

Question 14

Boutique hotels are the perfect hotels for people who are tired of traditional cookie-cutter hotels that all look alike.One boutique hotel chain calls its staff its cast and has them wear fashionable solid black outfits.Its corridors are softly lit,and suite doors are arches lit with recessed blue lighting.Its lobby has a ceiling-to-floor water wall.What is the promotional strategy for this boutique hotel?

Accepted Answer

The promotional strategy for this boutique hotel is to create a strong organizational image by emphasizing unique design features and branding their staff as a "cast" with fashionable attire. They aim to stand out from traditional hotels and differentiate themselves, which aligns with the goal of creating a strong organizational image.

Question 15

Because many services involve a process of continuous interaction between the service organization and the customer,what is an important strategy?

Accepted Answer

Relationship marketing is important in services as it focuses on building long-term relationships and continuous interaction with customers, enhancing customer satisfaction and loyalty.

Question 16

Mountain Express is a company that provides grocery delivery service to several small communities in British Columbia.The company gives a 2 percent discount on all food orders to customers after they have used the service 10 times.An additional percentage discount is offered for each additional 15 orders up to a maximum of 8 percent.What is the relationship marketing strategy used by Mountain Express based on?

Accepted Answer

Mountain Express is using financial incentives, such as discounts, to encourage repeat business and customer loyalty, which is an example of building financial bonds.

Question 17

Matching demand for theatre seats to the number of people wishing to see a movie can be attempted by raising prices at peak movie attendance times and decreasing them during times when attendance is typically low.Focusing on coordinating supply and demand by varying prices is what type of pricing objective for service firms?

Accepted Answer

The answer of Matching demand for theatre seats to the...

Question 18

A focus on maximizing the surplus of income over costs is which type of pricing objective for service firms?

Accepted Answer

Maximizing the surplus of income over costs is a revenue-oriented pricing objective for service firms. This means that the main goal is to generate as much revenue as possible through pricing strategies that increase income and decrease costs.

Question 19

Avril Lavigne has been picked as a spokesperson for T-Mobile wireless phone service.She was chosen because of her appeal to members of T-Mobile's target market.In terms of service promotion strategy,she will be considered what type of information source?

Accepted Answer

Avril Lavigne will be considered a personal information source because she is a real person who can influence the perceptions and behaviors of T-Mobile's target market.

Question 20

Winnipeg Transit bus service offers discount ticket prices to students and senior citizens.Which pricing objective does this illustrate?

Accepted Answer

Offering discount ticket prices to specific groups such as students and senior citizens is an example of a patronage-oriented pricing objective, as the goal is to encourage these groups to use the service more frequently.

Quiz 10: Services and Nonprofit Organization Marketing