Deck 23: Services and Nonprofit Organization Marketing

Question 1

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

Answer 1

False
A search quality is a characteristic that can be easily assessed before purchase,and tangible goods tend to exhibit more search qualities than do intangible goods.Services exhibit more experience and credence qualities.

Question 2

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.

Answer 2

False
Chesapeake Energy is actually practicing internal marketing.Relationship marketing is focused on customers,not employees.

Question 3

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.

Answer 3

True

Question 4

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.

Question 5

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

Question 6

Most service organizations market only one specific service

Question 7

Revenue-oriented pricing focuses on maximizing the surplus of income over costs.

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

A barber shop is an example of a service business.

Question 10

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

Question 11

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 12

Nonprofit organizations do not charge prices for the services they provide.

Question 13

Hotels will often 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 14

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

Question 15

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 16

Karen has a gluten allergy,which means she is unable to eat certain foods.The chef at her favorite restaurant understands Karen's situation and is always happy to modify his recipes for her when she dines there.The chef is providing assurance to Karen.

Question 17

Responsiveness is the service quality component most valued by customers.

Question 18

Nonprofit managers do not need to worry about developing marketing strategies.

Question 19

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 20

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

Question 21

Xoom.com is a San Francisco-based online money transfer company that provides consumer remittance services.With the Xoom bank deposit service,consumers can send money directly to bank accounts in several countries around the world.Xoom.com would be classified as a:

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

Question 22

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

Question 23

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 24

"Girls Just Wanna Have Funds" is a Washington,DC,support group that consists mostly of young women who offer 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 who want to be financially savvy.

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

Question 25

Auto repair,manicures,and landscaping 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 26

"Girls Just Wanna Have Funds" is a Washington,DC,support group that consists mostly of young women who offer 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 27

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) homogeneous

Question 28

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 29

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 30

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 31

Maribeth and Asher are trying to think of someplace to take their kids this weekend.Asher thinks it might be fun to take the kids to Coco Key,an indoor waterpark located in a nearby city.However,since no one in the family has ever been to Coco Key before,they will be unable to assess the _____ of the waterpark until they actually visit.

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

Question 32

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 33

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 34

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 35

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 being:

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

Question 36

The advertising budgets of most nonprofits are too small to pay for the running of public service advertisements to promote their programs,activities,or services.

Question 37

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) intangible
B) inseparable
C) heterogeneous
D) perishable
E) flexible

Question 38

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 39

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

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

Question 40

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

A) Intangibility
B) Inseparability
C) Heterogeneity
D) Perishability
E) Connectivity

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 e-mail 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

The model of service quality that identifies five disparities 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 43

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 44

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 who 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 45

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 46

The consistency and reliability of a service can be increased by:

A) making sure that consumers are present during the production of the service.
B) eliminating credence quality.
C) standardization and training,
D) Simultaneous production and consumption
E) raising prices.

Question 47

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 and 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 48

To improve its friendliness,the First National Bank hired Joy Taylor as a greeter.Joy's job is to sit at a desk near the front lobby and greet 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 who is entering 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 49

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 50

First Community Bank spent a considerable amount of money updating its lobby with plush sofas,a large-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 51

Virtual Bellhop is a company that ships awkward sporting goods to vacation destinations so its customers do 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 that the company excels at which component of service quality?

A) Tangibles
B) Empathy
C) Reliability
D) Flexibility
E) Assurance

Question 52

Canyons ski resort is so positive that guests will enjoy their visit that they offer a money-back guarantee for special lift tickets purchased at the resort Web site.Canyons' "You'll-Love-It-Or-It's-Free-Guarantee" provides consumers which of the following service quality aspects?

A) Tangibility
B) Responsiveness
C) Sympathy
D) Responsibility
E) Reliability

Question 53

Starbucks management has been trying to refocus on the things that originally made the company so successful.For example,Starbucks stores across the United States recently shut down for a short period of time for retraining,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 difference 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 54

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 55

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 56

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

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

Question 57

Emily's nephew is on the autism spectrum,and she has read stories on the Internet about how vaccines supposedly cause autism.Though Emily knows this theory has been debunked and that vaccines are safe,she is surprised that she feels a bit worried when she takes her own child into the pediatrician for her shots.Emily is glad her pediatrician does not think her fears are silly and will answer all of her questions without making her feel stupid for asking them.By which of the following components of service quality is Emily most likely to rate her pediatrician?

A) Empathy
B) Assurance
C) Tangibles
D) Reliability
E) Responsiveness

Question 58

David and Kathy like to take their young son,Chaz,to Moe's for lunch after church on Sundays.While they like to eat at Moe's at any time,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 59

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

A) Reliability
B) Responsiveness
C) Assurance
D) Empathy
E) Tangibles

Question 60

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 61

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 62

If a customer expects to wait three hours for an auto repair but the repair is finished just one hour later,the customer's evaluation of service quality will be high.However,a two day wait would result in a lower evaluation.The two day wait 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 it.

Question 63

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 64

After years of expansion,Starbucks recently closed 600 of its poorer performing stores.Many of the stores closed were near other Starbucks locations.In those areas,management felt that the company had too many outlets,which was boosting the company's cost unnecessarily.Decisions concerning the number of outlets are a part of the _____ strategy of service organizations.

A) distribution
B) promotion
C) production
D) product
E) demand/supply

Question 65

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

Question 66

Purchasing your clothes online can be fun,allowing you to 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 nearly as nice in reality as it does on your computer screen.Lands' End takes this concern away with its "Guaranteed Period" promise.Lands' End will happily return your purchase price on any item you purchase for any reason.If Lands' 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 67

TruGreen offers lawn care,shrub care,carpet cleaning,and industrial lawn services.These different services combine to make TruGreen's:

A) service mix.
B) standardization strategy.
C) component services.
D) customized services.
E) distribution strategy.

Question 68

Trina is a physical fitness trainer who tries to get to know her clients and their specific fitness goals.Trina understands that she is in the _____ processing business.

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

Question 69

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 haircut

Question 70

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

A) Drafting a will
B) Having a prescription filled
C) Getting a down comforter dry cleaned
D) Taking a class at the local community college
E) Ordering a pizza for delivery

Question 71

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 72

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

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

Question 73

Western Union is in the business of providing a medium for international money transfers.Through the services of Western Union,a Mexican working in the United States can transfer a portion of his or her earnings to family members still living in Mexico.The company 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,Western Union will exemplify _____ services.

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

Question 74

At the My M&M's Web site,customers can design their own versions of the famous candy.Customers choose from 25 M&M'S colors; write a message,add clip-art,or even a face to each M&M,and select specific packaging.This is an example of:

A) a cooperative service.
B) mass customization.
C) aggregated standardization.
D) a market development strategy.
E) mental stimulus processing.

Question 75

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 76

Western Union is in the business of providing a medium for international money transfers.Through the services of Western Union,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 77

Which type of service processing occurs when the service is directed at customers' physical possessions,such as lawn care,dry-cleaning,and veterinary services?

A) People processing
B) Possession processing
C) Mental stimulus processing
D) Information processing
E) Tangible processing

Question 78

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 79

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 80

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