Deck 12: Services and Nonprofit Organization Marketing

Question 1

When evaluating service quality,which statement is true of reliability?

A) It involves being caring and paying individualized attention to customers.
B) It involves providing prompt service to customers.
C) It is performing the service right the first time.
D) It refers to the knowledge and courtesy of employees.

Answer 1

C

Question 2

Compared to goods,services tend to exhibit more ______ qualities.

A) experience and credence
B) experience and search
C) search and credence
D) search and inseparability

Answer 2

A

Question 3

By synchronizing supply and demand,a service provider can reduce the problem of ______.

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

Answer 3

D

Question 4

That consumers must be present during the production of services points to the ______ of services.

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

Question 5

Which of the following is a consequence of the heterogeneity of services?

A) No matter where,the customer knows exactly what is offered and what to expect.
B) Services are perceived as less standardized and uniform than goods.
C) Consistency and quality control of services can be easily achieved.
D) Standardization and training prove to be invariably futile or unreliable.

Question 6

A credence quality is a characteristic that can be easily assessed before purchase.

Question 7

The number of customers who dine at Eat and Den,a restaurant,varies on weekdays and weekends.On days when customer traffic is less,Eat and Den incurs losses because the food prepared on one day will not be fresh the next day.In this scenario,which of the following characteristics of services is the reason for Eat and Den's loss of revenue?

A) Heterogeneity
B) Perishability
C) Intangibility
D) Variability

Question 8

Which of the following strategies will help service organizations overcome the perishability of services?

A) Increase the credence qualities of services.
B) Provide training to employees.
C) Improve the standard of services.
D) Find ways to synchronize supply and demand.

Question 9

A consultancy firm that provides a wide range of services relating to tax payments and tax law is known for performing these services dependably,accurately,and consistently.This clearly implies that the company rates high on ______.

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

Question 10

The inability of services to be stored,warehoused,or inventoried is termed ______.

A) variability
B) reliability
C) heterogeneity
D) perishability

Question 11

Which of the following is an example of heterogeneity of services?

A) The packaging of the pizza that I ordered today had a very different design and was made of recyclable paper.
B) The tire I bought at a Chicago service station came with a discount but lasted as long as another other tire.
C) The customer service agent who contacted me last week was more helpful than the one who contacted me today.
D) The surgical instruments that doctors use in a New York hospital are the same as those used by doctors in the Miami hospital where I was examined.

Question 12

Hannah likes to frequent Citrus,a fine dining restaurant,as she loves the beef lasagna there and orders it every time she eats there.However,during her recent visit,the lasagna she was served was undercooked.When she informed the manager about it,she learned that the food was cooked by a replacement chef as the usual chef was on leave.In this scenario,which of the following characteristics of services is responsible for the lack of consistency and quality of the food at Citrus?

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

Question 13

Unlike goods,services are

A) produced in a centralized location and consumed in decentralized locations.
B) tangible performances.
C) stored,warehoused,and inventoried.
D) more heterogeneous and less standardized and uniform.

Question 14

Simultaneous production and consumption means that services normally cannot be produced in a centralized location and consumed in decentralized locations.

Question 15

When evaluating services in terms of marketing strategies,a(n)_____ quality is a characteristic that can be assessed only after use.

A) search
B) credence
C) experience
D) intangible

Question 16

A search quality of a product or service is a characteristic that can be ______.

A) assessed only after using the purchase
B) hard to describe even after its use
C) easily assessed before purchase
D) experienced only on payment for the product or service

Question 17

An online money transfer company that allows consumers to send money directly to bank accounts in several countries around the world is an example of a service firm.

Question 18

When evaluating service quality,_____ refers to the knowledge and courtesy of employees and their ability to convey trust.

A) heterogeneity
B) responsiveness
C) assurance
D) tangibility

Question 19

Evaluating the quality of services before making a purchase is harder than evaluating the quality of goods because,compared to goods,services tend to exhibit fewer ______ qualities.

A) experience
B) search
C) credence
D) intangible

Question 20

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.

A) a service
B) concepts
C) branding
D) profits

Question 21

What kind of service processing does the airline industry address?

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

Question 22

Tina is an expert gardener.She provides services like designing and planting new gardens,maintaining gardens,and landscaping.In the context of service processes,the services provided by Tina come under the category of _____.

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

Question 23

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

A) the inability of management and employees to do what should be done.
B) a lack of understanding or a misrepresentation of the customers' needs,wants,or desires.
C) misleading or deceptive advertising campaigns promising more than the firm can deliver.
D) the inability of management to translate customers' needs into delivery systems within the firm.

Question 24

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

A) can be positive or negative depending on the quality of service that was provided.
B) can be closed by providing advertising campaigns that promise more than the firm can deliver.
C) results from management's ability to translate customers' needs into delivery systems within the firm.
D) is the result of a lack of understanding or a misinterpretation of the customers' needs,wants,or desires.

Question 25

The qualities of search,experience,and credence make it easier for marketers to communicate the benefits of an intangible service than to communicate the benefits of tangible goods.

Question 26

Which response describes how service-providing companies would most likely counter increasing competition?

A) Firms would widen their range of supplementary services because reducing them is almost always disastrous.
B) Firms would emphasize supplementary services or may position themselves by greatly reducing those services.
C) Firms would focus entirely on their core service as supplementary services mostly do not attract customers.
D) Firms would reduce their supplementary services and may also offer a less rigorous form of their core service.

Question 27

According to the gap model of service quality,the gap between what customers want and what management thinks customers want results from

A) a lack of understanding or a misrepresentation of the customers' needs,wants,or desires.
B) management's inability to translate customers' needs into delivery systems within the firm.
C) the inability of management and employees to do what should be done.
D) misleading or deceptive advertising campaigns promising more than the firm can deliver.

Question 28

Ambient Management,Inc.was experiencing a gap in the services it was providing.It closed the gap by ensuring that its customer-facing staff had the skills,training,and proper tools to perform their jobs.When compared with the gap model of service quality,the gap that the company addressed was between what ______.

A) customers wanted and what management thought customers wanted
B) the company provided and what the customers were told it provided
C) management thought customers wanted and the quality specifications it developed
D) the service quality specifications were and the service that was actually provided

Question 29

An online store promises to deliver any order costing over $60 within 24 hours.It uses this strategy to increase the volume of customer orders and the store always delivers on that promise.This company's track record for prompt delivery clearly implies that the company rates high on ______.

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

Question 30

Laelle Airlines,an international airline company offers a core service supported by supplementary services.Given this information,which of the following is most likely to be the core service provided by Laelle Airlines?

A) Providing plush seats with comfortable legroom for its passengers
B) Offering three-course meals for its passengers
C) Providing personalized toiletries including wet towels and sleep masks for all passengers
D) Offering souvenirs to all passengers after their travel

Question 31

Which of the following characteristics of service is the least related to the display of human behavior,interpersonal interaction,and knowledge?

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

Question 32

A service-providing firm that does little or no customer satisfaction research is most likely to experience a gap between ______.

A) the service quality specifications and the service that is actually provided
B) the customers' wants and what management thinks customers want
C) what the company provides and what the customer is told it provides
D) management's perception of what customers want and the quality specifications it develops

Question 33

Service quality is easier to define and measure than the quality of tangible goods.

Question 34

A training institute offers a range of services to its students.Which of the following is most likely to be its core service?

A) Beverages and a free lunch
B) Books and course material
C) Microphones and lecterns for lectures
D) An air-conditioned lecture hall

Question 35

What kind of a service process does an electrical maintenance worker provide?

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

Question 36

Which strategy uses technology to deliver tailor-made services on a large scale?

A) Place strategy
B) Promotion strategy
C) The service mix
D) Mass customization

Question 37

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

A) use technology directed at a customer's assets.
B) focus more on customers and not on their physical possessions.
C) do not require customers to enter the service factory.
D) focus more on training employees on employee-customer interactions.

Question 38

Henry,a travel consultant,treats his customers with respect and helps them with the vast knowledge that has earned him a good reputation.However,he is not as skilled in giving individual attention to customers or in anticipating and understanding their priorities.Henry scores ______.

A) high on assurance but low on empathy
B) low on both assurance and empathy
C) high on both assurance and empathy
D) low on assurance but high on empathy

Question 39

The term that describes the service process that takes place when the service is directed at a customer is called ____________________.

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

Question 40

Your insurance agent provides you with a service that includes ______.

A) both mental stimulus processing and information processing
B) neither mental stimulus processing nor information processing
C) mental stimulus processing,but not information processing
D) information processing,but not mental stimulus processing

Question 41

A vehicle manufacturer makes base models using a large-scale production process.It also partners with small companies that help customize its vehicles,thus offering a wide range of packages involving a variety of chassis colors,upholstery designs,music systems,GPS devices,and passenger safety options.The company's approach to its service offering is an example of ______.

A) mass customization
B) mass standardization
C) customization
D) standardization

Question 42

Starbucks uses different kinds of coffee,dairy and non-dairy alternatives,flavor shots,and temperature levels to create a diverse array of options for customers.It uses a machine called a Clover,which allows baristas to customize brew times down to the second,specify how much exposure the water has to the coffee grounds,and dial in a precise temperature.Starbucks is well-geared toward ______.

A) customization
B) standardization
C) mass customization
D) mass standardization

Question 43

Vintage Travel provides a wide range of travel-related services.Which of the following can create a lasting image of their company in the minds of customers and potential users,even without them using Vintage Travel's services?

A) Give special discounts only for bulk bookings.
B) Use well-known celebrities to endorse their services.
C) Give freebies to individuals who register on their website.
D) Use attractive logos,stationary,and office space.

Question 44

Which statement describes a distribution strategy of a service organization?

A) The intensity of distribution should exceed the target market's needs and preferences.
B) Having too many outlets to distribute products may boost costs unnecessarily.
C) The location of a service does not influence the distribution strategy of a time-dependent service provider.
D) Because services are intangible,many service firms choose indirect distribution strategies.

Question 45

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

A) varies the prices according to the supply and demand of cars.
B) maximizes the surplus of income over its costs.
C) allows customers to negotiate price.
D) varies prices for customers from different market segments.

Question 46

An upmarket dressmaking company deliberately keeps its number of outlets very low even after years of climbing profits.There are no more than two in any major city of the United States.The policy may be justified in terms of the company's objective to ______.

A) cut costs
B) meet market's needs
C) be exclusive
D) play it safe

Question 47

Alicia wants to buy a piece of furniture and would like to transport it using her personal vehicle.Therefore,she prefers having delivery charges bundled with the price of the furniture.

Question 48

In the business of running movie theaters,it was proposed that the tickets be priced significantly higher than usual for each of the opening weekends of the year's summer blockbusters.This kind of pricing is ______.

A) patronage-oriented,not revenue-oriented
B) operations-oriented,not patronage-oriented
C) both revenue-oriented and patronage-oriented
D) both operations-oriented and patronage-oriented

Question 49

Marketers have more trouble promoting tangible goods than intangible services.

Question 50

A manufacturer making a choice between too few and too many outlets is essentially deciding between providing ______.

A) convenience to customers and keeping costs to the company low
B) quality products to customers and keeping costs to the company low
C) convenience to customers and diversifying into other businesses
D) customers an online shopping option and having an exclusive brand

Question 51

When considering strategies to promote intangible services,which of the following engages customers in postpurchase communication?

A) An airline hires a well-known actor to endorse its services in a series of commercials.
B) An insurance company uses an umbrella as its logo to convey that its customers are well-protected.
C) A chartered accountant firm offers a 20 percent discount to customers who contract its services in January.
D) A hotel sends an e-mail survey to its guests asking them to rate the quality of service that they received.

Question 52

Which of the following statements correctly compares tangibles and intangibles?

A) Consumers and business users have more trouble evaluating services than goods and thus marketers have more trouble promoting intangible services than tangible goods.
B) Consumers and business users have more trouble evaluating services than goods; however,marketers have less trouble promoting intangible services than tangible goods.
C) Consumers and business users have less trouble evaluating services than goods; however,marketers have more trouble promoting intangible services than tangible goods.
D) Consumers and business users have less trouble evaluating services than goods and thus marketers have less trouble promoting intangible services than tangible goods.

Question 53

Generally,the intensity of distribution in a service-organization's marketing mix should exceed the target market's needs and preferences.

Question 54

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

A) It is simpler for a firm to administer than pricing each element separately.
B) It is preferable when consumers are willing to pay "extra" for every part of the service.
C) It is a pricing strategy where customers pay only for the service elements they use.
D) It is a pricing strategy that does not apply to services.

Question 55

Which of the following is the most important factor in influencing the distribution strategy of a time-dependent service provider?

A) Scheduling
B) Tangible cues
C) Price bundling
D) Customization

Question 56

Stone Restaurant,a five-star restaurant,changes its centerpiece,such as candles and vases,every day.The waiters also creatively fold the napkins and place them on the tables at the end of each course.In this scenario,which of the following promotion strategies is adopted by Stone Restaurant?

A) Using personal information sources
B) Stressing tangible cues
C) Engaging in postpurchase communication
D) Creating a strong organizational image

Question 57

Senior citizen and student discounts at movie theaters and restaurants are examples of pricing that is ______.

A) patronage-oriented,not operations-oriented
B) operations-oriented,not revenue-oriented
C) both revenue-oriented and patronage-oriented
D) both operations-oriented and patronage-oriented

Question 58

A limitation of revenue-oriented pricing is that

A) it does not focus on maximizing the surplus of income over costs.
B) it cannot be used by manufacturing companies.
C) determining costs can be difficult for many services.
D) the profit goals of a company are not taken into account.

Question 59

Ace Deliveries,a courier service provider,built a strong reputation over a short period of six months.Inundated with customers,the company decided to expand its fleet of vans and enlarge its delivery networks and to stop offering the discounts it was offering to some market segments.Because it was the holiday sales season,higher pricing made good business sense.The pricing Ace Deliveries is using is ______.

A) patronage-oriented,not operations-oriented
B) operations-oriented,not revenue-oriented
C) both revenue-oriented and operations-oriented
D) both operations-oriented and patronage-oriented

Question 60

Each part of a firm's service marketing mix should make a different contribution to achieving its goals.

Question 61

The North Star Hotel,a luxury hotel,encourages its employees to develop strong,personal relationships with guests.It offers customized toiletries to its customers based on their preferences.It also has an entire floor dedicated to suites that have air purification systems.These value-added services make the North Star Hotel unique as these services are not available at other hotels.In this scenario,the North Star Hotel is at the _____ level of relationship marketing.

A) financial
B) social
C) customization
D) structural

Question 62

At what level or levels of relationship marketing does a firm use financial and social bonds but also offer value-added services that are not readily available from other firms?

A) Neither at the customization level nor at the structural level
B) Only at the customization level
C) Only at the structural level
D) At both customization and structural levels

Question 63

When comparing the various kinds of relationship marketing,we can say that ______.

A) the social level is more developed than the structural level
B) the financial level is more developed than the social level
C) the customization level is more developed than the social level
D) the financial level is more developed than the customization level

Question 64

A credit card company has a policy wherein the customer earns a point for every 20 dollars spent on purchases made using the card.These points accumulate over a period of time and can be cashed in at the rate of a dollar per point.The policy applies equally to all customers across the country and the company does not interact with individual customers.This is an example of the ______ level of relationship marketing.

A) structural
B) social
C) financial
D) customization

Question 65

For services that are composed of multiple elements,the issue is whether pricing should be based on a "bundle" of elements or whether each element should be priced separately.

Question 66

At the _____ level of relationship marketing,a firm uses pricing incentives to encourage customers to continue doing business with it.

A) financial
B) customization
C) structural
D) social

Question 67

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

Question 68

It is usually ineffective to use marketing tools to transform services involving discrete transactions into membership relationships.

Question 69

Social relationship marketing is often more effective than financial relationship marketing.

Question 70

Because services are intangible,many service firms have to use direct distribution or franchising.

Question 71

Membership services naturally lend themselves to relationship marketing.

Question 72

Identify and discuss the challenges faced by service providers when deciding a pricing strategy.

Question 73

In the service industry,one drawback to using revenue-oriented pricing is that determining costs is difficult for many services.

Question 74

Patronage-oriented pricing seeks to match supply and demand by varying prices.

Question 75

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

Question 76

Many businesses have found that it is more cost effective to focus only on attracting new customers than working hard to keep the ones they already have.

Question 77

Explain which factors marketers should focus on when deciding distribution strategies for their service organizations.

Question 78

Health Works is a company that offers services related to health promotion and lifestyle.They not only send their clients reminders for their general checkup but also make house visits for consultations,which are free if a Health Works products or services are bought.They also conduct free workshops for their clients to network and join clusters with similar profiles and regime.Their offerings would fall in the ______ level of relationship marketing.

A) social
B) customization
C) structural
D) financial

Question 79

Which of the following relationship marketing levels is also referred to as customer intimacy?

A) Structural level
B) Social level
C) Financial level
D) Customization level

Question 80

Patronage-oriented pricing tries to maximize the number of services used by a consumer.