Question 1

Service employees should have which set of the following?

Accepted Answer

Service employees should have technical skills to do their job effectively, but they also need interpersonal skills to interact with customers in a positive and effective manner. A positive attitude is also important as it can impact the customer's experience. Therefore, choice D is the best option as it includes technical skills, interpersonal skills, and a positive attitude. Leadership skills and analytical skills may also be beneficial, but they are not as essential as the other skills mentioned in choice D.

Question 2

Documenting performance, explaining what was done and why, and offering guarantees are additional ways to reassure customers and reduce anxiety.

Accepted Answer

Documenting performance, explaining what was done and why, and offering guarantees are all effective ways to reassure customers and reduce their anxiety. By documenting performance, customers are able to see that a high level of excellence has been consistently achieved. Explaining what was done and why shows customers that a thoughtful and well-considered approach was taken to meet their needs. And offering guarantees demonstrates the business's commitment to customer satisfaction and provides customers with additional peace of mind.

Question 3

Businesses are outsourcing fewer tasks in order to focus on their core business.

Accepted Answer

Businesses are increasingly outsourcing tasks to focus more on their core competencies and improve efficiency, leveraging external expertise for non-core activities.

Question 4

For-profit firms seek to achieve ____________ profits subject to ____________ constraints, although not-for-profit service suppliers seek to achieve ____________ profits subject to ____________ constraints.

Accepted Answer

For-profit firms aim to achieve financial profits while operating within social constraints (such as ethical considerations and community impact). On the other hand, not-for-profit organizations seek to achieve social profits (benefits to society) while operating within financial constraints (budget limitations and resource allocation).

Question 5

In most highly developed nations, services account for between two-thirds and three-fourths of the GDP.

Accepted Answer

This statement is true. Services, such as healthcare, education, and finance, are the largest contributors to most highly developed nations' GDP.

Question 6

Firms' market offerings are divided into ____________ and ____________ elements.

Accepted Answer

Firms' market offerings are divided into core product (the main product or service being offered) and supplementary service (additional services that enhance the core product, such as customer support or warranties). The other choices are not accurate descriptions of the elements that make up a firm's market offerings.

Question 7

Service markets are shaped by all of the following except ____________.

Accepted Answer

Global economic change influences both service and product markets, not just service markets exclusively. Government policies, social changes, business trends, and advances in information technology specifically shape the dynamics and characteristics of service markets.

Question 8

In all cases of possession processing, production and consumption can be described as inseparable.

Accepted Answer

In many cases, production and consumption can be separated in time and space, such as when a product is manufactured (produced) in one location and then shipped to another location to be consumed at a later time.

Question 9

Customers being turned away or having to wait is an implication of which aspect of services?

Accepted Answer

Most services cannot be inventoried, meaning they cannot be stored for later use. This leads to situations where if the service capacity is fully utilized or exceeded, additional customers cannot be served immediately and may have to wait or be turned away.

Question 10

Which one of the following is NOT one of the four broad categories of service?

Accepted Answer

The four broad categories of service are people processing, possession processing, mental stimulus processing, and information processing. "Involvement processing" is not a recognized category of service.

Question 11

What are the three management functions that are central to meeting the needs of service customers?

Accepted Answer

The three management functions that are central to meeting the needs of service customers are marketing, operations, and human resources. Marketing helps to identify and understand customer needs, operations ensures the delivery of quality service, and human resources ensures that employees have the necessary skills and knowledge to provide excellent service. Finance, accounting, and other functions are important, but they are not as directly related to meeting the needs of service customers.

Question 12

A useful way to distinguish between goods and services is to place them on a continuum from ____________ to ____________.

Accepted Answer

Placing goods and services on a continuum from tangible-dominant to intangible-dominant is the best way to distinguish between them. Goods are usually more tangible-dominant (physical, touchable) while services are more intangible-dominant (not physical, non-touchable). This continuum helps to identify the characteristics and differences between goods and services.

Question 13

Typically service jobs are not well-paid positions and require little education.

Accepted Answer

This statement is not always true. Some service jobs, such as healthcare, can require a significant amount of education and training and may offer high salaries. Additionally, certain service jobs such as airline pilots and hotel managers may also offer competitive salaries. However, many service jobs do require little education and may offer lower pay than other industries.

Question 14

The acronym for the new North American classification system that includes services is ____________.

Accepted Answer

The correct acronym for the new North American classification system that includes services is NAICS (North American Industry Classification System). NAFTA (North American Free Trade Agreement) is a trade agreement between Canada, Mexico, and the United States. NACS and NACSS do not correspond to any known classification system. NEICE is also not a known classification system, and it does not include services.

Question 15

The appearance of buildings, landscaping, vehicles, and uniforms provide tangible evidence of a firm's service quality.

Accepted Answer

The appearance of buildings, landscaping, vehicles, and uniforms can affect customers' perceptions of a firm's service quality. A well-maintained appearance can suggest a commitment to providing high-quality service, while a shabby appearance can suggest the opposite. Therefore, the appearance of these visible elements serves as tangible evidence of a firm's service quality.

Question 16

For mental-stimulus-processing, recipients must be physically present in the service factory.

Accepted Answer

Mental-stimulus-processing can also be done through online or remote platforms, therefore physical presence is not always necessary in the service factory.

Question 17

The three additional Ps of services marketing that extend the original four Ps of marketing are _____________, _____________, and _____________.

Accepted Answer

The three additional Ps of services marketing are physical environment, process, and people. These are important factors to consider in services marketing because unlike physical products, services are intangible and require a different approach to marketing. The physical environment in which the service is provided can impact the customer experience and their perception of the service quality. The process of delivering the service and the interaction between the customer and service provider can also affect customer satisfaction. Finally, the people involved in delivering the service, including the employees and management, can impact the overall customer experience and service quality.

Question 18

People processing, possession processing, mental stimulus processing, and information processing make up the four broad categories of services.

Accepted Answer

These four categories classify services based on how they are delivered and consumed: People processing involves physical changes to the customer (e.g., haircuts), possession processing involves changes to physical possessions (e.g., car repair), mental stimulus processing involves intangible changes affecting the customer's mind (e.g., education), and information processing involves the manipulation of data or information for the customer (e.g., financial advice).

Question 19

Other customers typically do not impact the satisfaction of other consumers in service settings.

Accepted Answer

Other customers can impact the satisfaction of other consumers in service settings through behavior, noise, crowding, etc.

Question 20

In most possession-processing services, the customer's involvement is usually limited to dropping off the item that needs treatment, requesting the service, explaining the problem, and returning later to pick up the item and pay the bill.

Accepted Answer

This statement accurately describes the typical level of customer involvement in possession-processing services. They usually just need to drop off the item and communicate their needs, then return later to collect the finished product and pay for the service.

Quiz 1: New Perspectives on Marketing in the Service Economy