Deck 12: Services and Nonprofit Organization Marketing

Question 1

The speed with which an ambulance can get to an accident site is an indication of the reliability dimension of service quality

Answer 1

False
This would be an example of responsiveness.

Question 2

Even though the growth of the service sector worldwide has been sluggish in the past decade,the service sector now accounts for approximately one-fourth of the gross domestic product in the United States.

Answer 2

False
Growth in service has been tremendous,and the service sector accounts for about 81 percent of GDP.

Question 3

Greta,the owner of House Mouse Cleaning Services,must be physically present when she cleans a house or office.The need for her presence as the service is performed is an example of the intangibility of services.

Answer 3

False
The need for her presence and the customer's presence is an example of how services are produced and consumed simultaneously (inseparability).

Question 4

Many businesses have found that it is more expensive to hang on to the customers they have than to focus only on attracting new ones.

Question 5

Terms such as fees,donations,tuition,fares,or rates are typically used instead of price for nonprofit organizations.

Question 6

The only type of service processing required for a comedian entertaining at a local club is information processing.

Question 7

Often hotels will offer deep discounts on weekends and during the off-season; for the same reason,airlines will adopt a similar pricing strategy during off-peak hours.These services cannot be stored,warehoused,or inventoried because they are perishable.

Question 8

The gap model of service quality identifies five gaps that can cause problems in service delivery and influence customer evaluations of service quality.

Question 9

Insurance companies are examples of service organizations.

Question 10

U.S.service firms such as financial institutions and construction,engineering,and insurance companies will have a difficult time expanding to global markets because competing foreign firms possess many competitive advantages.

Question 11

An important issue in developing the service offering is whether to customize it or standardize it.

Question 12

A nonprofit organization is an organization that exists to achieve some goal other than the usual business goals of profit,market share,or return on investment.

Question 13

Vera is designing a promotional strategy for a company that provides premium boarding services for pampered animals.Her promotions should use personal information sources and stress the tangible cues associated with the service.

Question 14

Heterogeneity of services means the quality of a service may not be consistent.

Question 15

Service firms may adopt patronage-oriented pricing to try to maximize the surplus of income over costs.

Question 16

The service characterized by caring,individualized attention to customers is referred to as sympathy.

Question 17

Chesapeake Energy Corporation was recognized by Fortune Magazine as one of the top companies to work for. Fortune mentioned that Chesapeake Energy provides its employees many perks,including the opportunity to take free scuba-diving lessons in Chesapeake's on-site Olympic-size pool.This example illustrates relationship marketing in action.

Question 18

Services are considered inseparable because most services cannot be felt or touched in the same way most goods can be sensed.

Question 19

The core service is the most basic benefit the consumer is buying.

Question 20

Services tend to exhibit more search qualities than do tangible goods.

Question 21

Nonprofit organizations may or may not require special facilities for distribution of their services.

Question 22

It is difficult for most of us to talk about mistakes we have made.Unfortunately,for organizations like Consumer Credit Counseling to help you work through your financial issues,you must be willing to honestly discuss your financial condition.In other words,for these organizations to help you must be actually involved in the process of developing your financial plan,which points to the _____ nature of services.

A) intangibility
B) inseparability
C) heterogeneity
D) perishability
E) flexibility

Question 23

One marketing issue unique to nonprofit organizations is that these organizations must often target those who are apathetic about or strongly opposed to receiving their services.

Question 24

Management-labor mediation,child care,and college preparation classes are all services that are produced and consumed at the same time.All of these services exhibit the service characteristic of:

A) inseparability
B) intangibility
C) heterogeneity
D) perishability
E) variability

Question 25

Which unique characteristic of services means consumers must be present during the production?

A) intangibility
B) inseparability
C) heterogeneity
D) perishability
E) connectivity

Question 26

All of the following are unique characteristics that distinguish services from goods EXCEPT:

A) intangible
B) inseparable
C) searchable
D) heterogeneous
E) perishable

Question 27

Nonprofit organization marketing accounts for over twenty percent of all the economic activity in the United States.

Question 28

The service sector:

A) has remained steady at 44 million jobs in the United States for the last 20 years
B) employs roughly 80 percent of the U.S. workforce
C) is rarely capital intensive, as most services do not need high technology
D) is decreasing in importance in the United States
E) tends to create fewer new jobs than the manufacturing industry

Question 29

Which of the following services would be most likely to exhibit strong credence qualities?

A) a math tutorial service
B) the repair of a leaky drain
C) the preparation of a dead body for burial
D) tax return preparation
E) a landscaping service that mows lawns

Question 30

A characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience is referred to as _____ quality.

A) search
B) experience
C) credence
D) abstract
E) inert

Question 31

"Girls Just Wanna Have Funds" is a Washington,D.C.support group that consist of mostly young women that offers tips on budgeting and debt relief.As they state on their Web site,their goal is to help women break financial ceilings "one stiletto at a time." Girls Just Wanna Have Funds is providing a _____ that is helpful to women that want to be financially savvy.

A) synergy
B) tangible resource
C) tangible product
D) service
E) good

Question 32

"Girls Just Wanna Have Funds" is a Washington,D.C.support group that consist of mostly young women that offers tips on budgeting and debt relief.Since you cannot evaluate the quality of the financial advice until after you have received it,this is an example of the _____ characteristic of service.

A) Reliability
B) Heterogeneous satisfaction
C) Search quality
D) Temporal quality
E) Experience quality

Question 33

David and Kathy are trying to decide where to go on vacation.David has suggested a cruise.Since neither of them have been on a cruise before,they will be unable to assess the _____ of a cruise until they actually take the vacation.

A) tangible attribute
B) experience quality
C) creative quality
D) credence quality
E) heterogeneity feature

Question 34

A service cannot be touched,seen,tasted,heard,or felt in the same manner in which goods can be sensed and,therefore,is referred to as:

A) impervious
B) extraneous
C) synergistic
D) perishable
E) intangible

Question 35

PayPal allows you to pay for items that you buy at online sites such as eBay without exposing your credit card or bank account number.To use PayPal you simply select PayPal when checking out at the online store,and then allow PayPal to pay directly from a credit card or from your PayPal balance or linked bank account.PayPal would be classified as a:

A) good
B) tangible resource
C) tangible product
D) service
E) nonprofit organization

Question 36

Nonprofit organizations do not use all 4 Ps of marketing.

Question 37

The advertising budgets of most non-profits are too small to pay for the running of PSAs (public service advertisements)to promote their programs,activities,or services.

Question 38

Alec had his gall bladder removed,but he was unconscious during the operation. In fact,even though he has an incision,he really has no way of knowing if the service was actually performed even after it was allegedly performed. That is because medical services such as this exhibit _____ qualities.

A) credence
B) perishable
C) experience
D) search
E) Homogeneity

Question 39

A(n)_____ is a characteristic that can be easily assessed prior to purchase,such as the softness of a mattress or the color of curtains.

A) search quality
B) intangible attribute
C) experience quality
D) credence quality
E) heterogeneity feature

Question 40

A(n)_____ is the result of applying human or mechanical efforts to people or objects.

A) application processor
B) profit intermediary
C) tangible product
D) service
E) nonprofit organization

Question 41

Jonathon had a problem when submitting an exam in his online marketing class and he received a score of zero,so he sent an email to the professor explaining his problem. He was really worried because the exam was due that evening,and he was very pleased when the professor replied within an hour telling him that he scored a 90 on the exam. The professor's prompt reply to his inquiry is an example of which service quality component?

A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles

Question 42

Virtual Bellhop is a company that ships awkward sporting goods to vacation destinations so its customers to not have to worry about lugging them through airports or having them damaged in transit.Thus far,its record for getting the sporting equipment to the correct destination for the vacationer is perfect.This indicates the company excels at which component of service quality?

A) tangibles
B) empathy
C) reliability
D) flexibility
E) assurance

Question 43

David and Kathy like to take their young son,Chaz,to Moe's for lunch after church on Sunday.While they like to eat at Moe's anytime,Sunday is particularly good because it's "kids-eat-free" day at Moe's southwestern grill.Until Moe's began the reduced pricing program,Sundays were very slow.Now it is one of the busiest days of the week.This price reduction was a way to contend with the service characteristic of:

A) variability
B) perishability
C) intangibility
D) inseparability
E) simultaneous production and consumption

Question 44

Courtney's mother died of breast cancer,and she is afraid of getting cancer.When she went to get a baseline mammogram,she wanted a facility where the personnel would not think her fears were silly and would answer all of her questions without making her feel stupid for asking them.By which of the following components of service quality is Courtney most likely to rate the mammogram provider?

A) empathy
B) assurance
C) tangibles
D) reliability
E) responsiveness

Question 45

Service personnel who exhibit caring,individualized attention to customers are addressing which service quality component?

A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles

Question 46

One of the reasons consumers can purchase cheap flights or hotel rooms on Web sites such as Expedia.com and Hotels.com is due to the fact that airlines cannot sell the seat on a specific flight after the plane takes off or hotels cannot recoup the revenue from that room for that night once the night passes. Which unique characteristic of services does this illustrate?

A) intangibility
B) inseparability
C) perishability
D) simultaneous production and consumption
E) variability

Question 47

Which component of service quality represents the ability to provide prompt service?

A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles

Question 48

All of the following are service components customers use to evaluate service quality EXCEPT:

A) validity
B) empathy
C) assurance
D) responsiveness
E) reliability

Question 49

Community Trust Bank has always prided itself on the friendliness of its employees.However,the results of a recent mystery shopper study indicated that the bank tellers rarely greeted customers or thanked them after the transaction.As a result,all bank employees that have customer contact are going through a training program to enhance customer service.What unique aspect of services is Community Trust attempting to address?

A) heterogeneity
B) perishability
C) intangibility
D) simultaneous production and consumption
E) unfocused targeting

Question 50

James recently went to a new health clinic because he had a sore throat that wouldn't go away. He was not familiar with this clinic and was a bit surprised when the doctor came in and was wearing blue jeans,a flannel shirt,and tennis shoes. The doctor and nurse took proper care of James,but it seemed strange to him that the doctor was dressed that way. Which component of service quality does this illustrate?

A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles

Question 51

A reading service for the visually impaired requires each reader applicant to prepare and submit a one-hour interview tape of material chosen by the service to determine whether the reader has pleasing vocal characteristics and is accent-free so that it is not necessary to use the same reader every time.The reading service is trying to limit problems associated with the service characteristic of:

A) tangibility
B) credence quality
C) heterogeneity
D) simultaneous production and consumption
E) flexibility

Question 52

Due to service _____,services cannot be stored,warehoused,or inventoried.

A) tangibility
B) variability
C) intangibility
D) perishability
E) heterogeneity

Question 53

Which service quality component is the knowledge and courtesy of employees and their ability to convey trust?

A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles

Question 54

FedEx advertises that they will "Absolutely Positively" have your documents delivered tomorrow morning.FedEx is providing which of the following service quality aspects to its users?

A) tangibility
B) responsiveness
C) assurance
D) responsibility
E) reliability

Question 55

The physical evidence of a service,including the physical facilities,tools,and equipment used to provide the service represents which component of service quality?

A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles

Question 56

Which component of a service is the ability to perform the service dependably,accurately,and consistently?

A) responsiveness
B) reliability
C) assurance
D) empathy
E) tangibles

Question 57

It is difficult to achieve consistency and standardization of services because of which service characteristic?

A) customization
B) simultaneous production and consumption
C) intangibility
D) perishability
E) heterogeneity

Question 58

Buying a car through eBay may result in a low price,but how do you know you will be getting a good car? One nice feature provided by eBay is the "feedback rating" that provides ratings and comments from people that have made purchases from that seller before.Which service quality component does the feedback rating address?

A) empathy
B) assurance
C) tangibles
D) flexibility
E) responsiveness

Question 59

The model of service quality that identifies five gaps that can cause problems in service delivery and influence customer evaluations of service quality is referred to as the _____ model.

A) gap
B) theory of reasoned action
C) attribution
D) dual-coding
E) Fishbein

Question 60

Which unique characteristic of services is the variability of the inputs and outputs of services,which causes services to tend to be less standardized and less uniform than goods?

A) intangibility
B) inseparability
C) heterogeneity
D) perishability
E) flexibility

Question 61

Which of the following services is an example of possession processing?

A) a theatrical performance
B) an X-ray of a broken bone
C) an advertising agency
D) marriage counseling
E) heating system repair

Question 62

Western Union is in the business of providing a medium for international money transfers.A Mexican working in the United States can transfer a portion of his or her earnings to family members still living in Mexico.It is now planning to move into areas traditionally handled by banks such as offering its customers checking accounts and loans.If it does follow through and provide these additional services,they will exemplify _____ services.

A) complementary
B) secondary
C) peripheral
D) supplementary
E) additional

Question 63

If a customer expects to wait one week for a pair of shoes to be mended but is told that the shoes are ready to be picked up less than 24 hours after leaving them at the repair shop,the customer's evaluation of service quality will be high.However,a two-week wait would result in a lower evaluation.The two-week gap would illustrate a gap between:

A) service quality specifications and the service that is actually provided
B) the service customers receive and the service they want
C) what the company provides and what the customer is told it provides
D) what customers want and what management thinks customers want
E) what management thinks customers want and the quality specifications management develops to provide

Question 64

TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home.TeamBuilds' _____ service is improved work team relationships.

A) primary
B) core
C) niche
D) supplementary
E) foundation

Question 65

The most basic benefit the consumer is buying in a service is referred to as the:

A) primary service
B) inherent service
C) core service
D) tangible service
E) complete service

Question 66

Starbucks management has been trying to refocus on the things that made the company so successful.For example,Starbucks across the U.S.recently shut down for a short period of time for re-training,and the company has worked to make sure you can smell the fresh ground coffee aroma when you enter the store.However,when questioned,consumers tend to focus on the need for pricing incentives such as a frequent purchasing program.According to the _____,there may be a gap between what customers want and what Starbucks management thinks customers want.

A) gap model of service quality
B) service pyramid
C) four dimensions of service quality
D) service paradigm
E) service delineation matrix

Question 67

Which category of service processing takes place when the service is directed at a customer?

A) people processing
B) possessions processing
C) information processing
D) mechanical processing
E) personal processing

Question 68

Which type of service processing uses technology or brainpower directed at customer's assets?

A) people processing
B) possession processing
C) mental stimulus processing
D) information processing
E) technology processing

Question 69

Which of the following services is an example of information processing?

A) investment advice
B) a funeral service
C) pet neutering
D) the fitting of orthodontic braces
E) attendance at a Major League Baseball game

Question 70

First Community Bank spent a considerable amount of money updating their lobby with plush sofas,a big screen television,and a refreshment counter with popcorn and soft drinks.However,very few customers spend time in the lobby.In fact,most customers want to be in and out of the bank,with their financial transaction completed as quickly as possible.The gap model of service quality would suggest that a gap exists between _____.

A) the service quality specifications and the service that is actually provided
B) what the company provides and what the customer is told it provides
C) the service customers receive and the service they want
D) what customers want and what management thinks customers want
E) what management thinks customers want and the quality specifications management develops to provide the service

Question 71

Western Union is in the business of providing a medium for international money transfers.A Mexican working in the United States can transfer a portion of his or her earnings to family members still living in Mexico.The wire transfer of funds is the _____ service the company provides.

A) supplementary
B) benchmarked
C) core
D) primary
E) fundamental

Question 72

Purchasing your clothes online can be fun as you can shop from companies around the world without leaving your home.You can also often get great prices on the items you purchase.However,you could get stuck with a product that doesn't look anywhere as nice in reality as it does on your computer screen.Land's End takes this concern away with their "Guaranteed Period" promise.Land's End will happily return your purchase price on any item you purchase for any reason.If Land's End ever failed to follow-through with this promise,it would represent a gap between:

A) what management thinks customers want and the quality specifications that management develops to provide the service
B) what the company tells the customer it provides and what is actually provided
C) service quality specifications and employee training
D) what customers want and what management thinks customers want
E) none of these

Question 73

Which of the following services is an example of mental stimulus processing?

A) taxi cab service
B) insurance
C) a professional tennis match
D) veterinarian care
E) a hair cut

Question 74

To improve its friendliness the First National Bank hired Joy as a greeter.Joy's job is to sit at a desk near the front lobby and greets customers as they enter with a warm friendly smile along with a "Good Morning" or "Good Afternoon." Unfortunately,Joy is also required to answer the bank's main telephone line.Since she spends most of her day on the telephone,Joy rarely gets to flash her smile or greet anyone as they enter the bank.In fact,Joy is on the phone so much that she doesn't really even seem friendly.This is an example of a gap between:

A) the service quality specifications and the service that is actually provided
B) what the company provides and what the customer is told it provides
C) the service customers receive and the service they want
D) what customers want and what management thinks customers want
E) what management thinks customers want and the quality specifications management develops to provide the service

Question 75

A group of services that support or enhance the core service is called:

A) secondary services
B) peripheral services
C) additional services
D) supplementary services
E) complementary services

Question 76

_____ is the strategy that uses technology to deliver customized services on a mass basis.

A) Mass standardization
B) Aggregated services
C) Technological processing
D) Mass customization
E) Aggregated marketing

Question 77

All of the following are types of service processing that can occur EXCEPT:

A) people processing
B) product processing
C) possession processing
D) information processing
E) mental stimulus processing

Question 78

Which type of service processing occurs when the service is directed at customers' physical possessions such as cars,homes,or clothing?

A) people processing
B) possession processing
C) mental stimulus processing
D) information processing
E) tangible processing

Question 79

Don at North Jersey Car & Limo knows that he is in the _____ processing business.As a result,he tries to get to know his clients and their interest.

A) people
B) mechanical
C) possession
D) mental
E) information

Question 80

TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home.Which category of service processing does TeamBuilds offer?

A) possession processing
B) information processing
C) mental stimulus processing
D) people processing
E) homogeneous processing