Deck 10: The Marketing of Services

Question 1

All of the following are elements of the inseparability characteristic of services except that:

A) consumers are involved in production.
B) centralized mass production is difficult.
C) consumption and production are simultaneous.
D) many services cannot be performed without the customer being present.
E) services are easy to standardize and control.

Answer 1

E

Question 2

Which of the following products associated with weddings is most likely to be considered a service?

A) Wedding cake
B) Floral arrangements
C) Bridal gown
D) Reception hall
E) String quartet music

Answer 2

E

Question 3

Because of a service's ____, standardization and quality are difficult to control.

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

Answer 3

D

Question 4

In what ways does intangibility affect the pricing of services?

Question 5

Which of the following statements about customer contact in services marketing is false?

A) Service employees are important in creating satisfied customers.
B) High-contact services are less expensive to deliver because they are typically equipment-based.
C) The main principle of customer contact is that satisfied employees lead to satisfied customers.
D) Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact services.
E) Employee training programs are an effective way to ensure good customer contact and reduce problems.

Question 6

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and:

A) labour-intensiveness.
B) orientation toward value.
C) homogeneity.
D) heterogeneity.
E) specialization.

Question 7

Describe how non-profit marketing differs from for-profit marketing.

Question 8

Explore emerging trends in consumer services associated with an ageing population.

Question 9

In general, differences between goods and services are determined by the:

A) degree of labour intensiveness.
B) type of target market.
C) degree of tangibility.
D) type of provider.
E) degree of consumer contact.

Question 10

Which of the following is the best example of a high-contact service?

A) Appliance repair
B) Newspaper delivery
C) Dog training
D) Interior decorating
E) Plastic surgery

Question 11

Services are usually provided through the application of ____ directed at people or objects.

A) tangible and intangible products
B) physical labour
C) human or mechanical efforts
D) ideas and other intangible efforts
E) knowledge and technology

Question 12

Select a familiar non-profit organization, and describe its target market and marketing mix.

Question 13

Which of the following is a low-contact service?

A) Childcare
B) Website design
C) Health care
D) Manicure
E) Legal services

Question 14

Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as:

A) partnerships.
B) repeated customer contact.
C) inseparable clientele.
D) long-term customers.
E) client-based relationships.

Question 15

A characteristic of services whereby unused capacity on one occasion cannot be stockpiled or inventoried for future occasions is known as:

A) perishability
B) heterogeneity
C) homogeneity
D) recyclability
E) accessibility

Question 16

The continuum of tangibility goes from ____ on one end to ____ on the other end.

A) service-dominant products; good-dominant products
B) pure products; pure services
C) rational products; irrational products
D) mostly service goods; mostly product goods
E) easy to see; not easy to see

Question 17

Discuss the importance of services in the EU economy, and explain the growth of services in our economy.

Question 18

The heterogeneity characteristic of services provides marketers with tremendous opportunity to:

A) customize their services to meet unique individual needs.
B) hold down the cost of providing services to customers.
C) create standardized packages that will appeal to many customers.
D) offer the same service as all of their competitors.
E) develop relationship marketing with their customers.

Question 19

The growth of business services is largely attributed to:

A) increases in incomes and living standards.
B) decreases in the consumption of products.
C) increases in governmental expenditures.
D) increases in the complexity and competitiveness of business environments.
E) increases in population.

Question 20

When service companies change high-contact services into low-contact services, the:

A) service becomes more expensive to deliver.
B) quality of the service declines.
C) service becomes less personalised.
D) time required to deliver the service increases.
E) service becomes less standardized.

Question 21

Services have three evaluation attributes: search qualities, experience qualities, and ____ qualities.

A) credence
B) value
C) perishable
D) marketability
E) credibility

Question 22

Which of the following service providers are most likely to use demand-based pricing?

A) Dentists
B) Lawyers
C) Doctors
D) Hair stylists
E) Cruise ships

Question 23

Production and consumption of services must simultaneously occur due to the ____ characteristic of services.

A) intangibility
B) heterogeneity
C) customer contact
D) perishability
E) inseparability

Question 24

Most products possess a certain degree of intangibility.

Question 25

The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called:

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

Question 26

Service providers offering discounts to current customers who refer new customers to them are using existing customers as a part of their service promotion strategies.

Question 27

Goods can be defined in terms of their physical attributes, but services cannot because they are intangible.

Question 28

Client-based relationships are interactions that result in satisfied customers who repeatedly use a service over time.

Question 29

Which of the following best defines non-profit marketing?

A) Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment
B) Marketing activities conducted by organizations other than business organizations
C) Non-business activities aimed at goals such as profit or return on investment ?5
D) Marketing activities aimed at getting the product to the retailers, through intermediaries
E) The marketing activities conducted by individuals and organizations that are considered volunteer establishments

Question 30

Which of the following is similar for both for-profit and non-profit marketing?

A) Emphasis on profit as a motive
B) Ability to use effective marketing activities
C) Concern for the entry of competitors into the field
D) Complexity of the typical distribution channels
E) Definition of target markets

Question 31

Because of inseparability of the consumption and production of services, customers are often present when a service is produced.

Question 32

Many services have aspects that consumers may never be able to evaluate, even years after the purchase and consumption of the service. These attributes are called:

A) search qualities.
B) performance attributes.
C) experience qualities.
D) immeasurable attributes.
E) credence qualities.

Question 33

Distribution of services is often more direct, even if the customer must go to the service provider's facilities.

Question 34

High-contact services are very expensive to deliver because they are equipment-intensive.

Question 35

When a customer takes part in the production of a service, other customers can affect the outcome of the service.

Question 36

There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and:

A) credibility.
B) experience within industry.
C) responsibility.
D) employee empathy.
E) product knowledge.

Question 37

What are the three primary ways that marketers deliver services?

A) Over the phone, online, or in-person
B) Continuously, periodically, or on demand
C) At the customer's home, in-person, or by telecommunications
D) Through service centres, delivery vehicles, or the mail
E) Service facilities, customer's home, or from a distance

Question 38

Consumers look closely at service quality when comparing competing services because:

A) they perceive all services to be essentially the same.
B) they typically have very few services from which to select.
C) all services are priced about the same.
D) quality is the only relevant service characteristic.
E) services are very difficult to evaluate.

Question 39

Because most services are people-based, they are susceptible to heterogeneity, or variation in demand over time.

Question 40

Demand-based pricing relies on information concerning peak demand times and off-peak demand times.

Question 41

One of the best ways to better understand customer needs and expectations is to ask contact employees.

Question 42

Non-profit organizations usually have more diverse groups to serve than do for-profit organizations.

Question 43

Service quality is defined by compliance with a set of specifications.

Question 44

A non-profit organization may exist in an environment in which its goals are opposed by some members of society.

Question 45

Tangible attributes such as colour, style, size, feel, or fit that can be evaluated prior to purchase are known as search qualities.

Question 46

Credence qualities are attributes, such as taste, satisfaction, or pleasure, which can be assessed only during the purchase and consumption of a service.

Question 47

Marketing as a field of study does not attempt to make value judgments about what a non-profit organization's goals should be.

Question 48

Service providers must adjust their behaviour to buyer expectations to improve quality.

Question 49

Customers seldom rely on the price-quality associations.

Question 50

Demand-based pricing means lower prices during times of lower demand and higher prices during times of higher demand.

Question 51

Segmentation concepts and techniques used to segment and identify target markets are not applicable to reaching non-profit target markets.

Question 52

Marketing approaches used by organizations in the for-profit sector are equally applicable to individuals and organizations in the non-profit sector.

Question 53

The marketing mix strategy of a non-profit organization should be developed to restrict alternatives.

Question 54

Service quality is defined as the company's perception of how well a service meets or exceeds customer expectations.

Question 55

Balancing the supply and demand of services can be done by keeping service prices the same regardless of the time of day, week, or year.