Deck 12: Services and Nonprofit Organization Marketing

Question 1

_____ is defined as the variability of inputs and outputs of services,which makes services less standardized and uniform than goods.

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

Answer 1

 A

Question 2

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

Answer 2

 False

Question 3

Internal marketing is more important for goods manufacturers than service firms.

Answer 3

 False

Question 4

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

Question 5

Social level relationship marketing is more effective than financial level of relationship marketing.

Question 6

A(n)_____ is a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience.

A)​search quality
B)experience quality
C)heterogeneous quality
D)​credence quality

Question 7

The first step toward success in the global marketplace for a nonprofit service firm is to determine the nature of its core products.

Question 8

Chelsea runs a consultancy firm that provides stock market consulting for its clients.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)​service
B)value
C)brand
D)​stock

Question 9

The first step in pricing a service is to define the unit of service consumption.

Question 10

A difference between goods and services is that goods:

A)​have more search qualities.
B)exhibit more credence qualities.
C)can be assessed only after use.
D)​are intangible performances.

Question 11

Marketers have more trouble promoting tangible goods than intangible services.

Question 12

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

Question 13

Unlike goods,services:

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

Question 14

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 15

Nonprofit organization marketing is the effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets.

Question 16

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

Question 17

The intensity of distribution should exceed the target market's needs and preferences.

Question 18

Hannah likes to frequent Citrus,a fine dining restaurant,as she loves its beef lasagna and orders it every time she visits the restaurant.However,during her recent visit,the lasagna she was served was undercooked and starkly different in flavor compared with the ones she had previously eaten at the restaurant.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 19

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

Question 20

Patronage-oriented pricing tries to maximize the number of customers using a service.

Question 21

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 the company is not taken into account.

Question 22

Which of the following is an example of a promotion strategy that uses postpurchase communication?

A)​An airline hiring an actor to act in a series of commercials endorsing the airline's services
B)An insurance company using an umbrella as its logo to convey that its customers are well-protected
C)A chartered accountant firm offering a 20 percent discount to all customers who avail its services in January
D)​A hotel sending an email survey to its guests asking them to rate the quality of service they received

Question 23

Rent-A-Drive is a car rental company.It prices its cars based on operations-oriented pricing.In this case,Rent-A-Drive:

A)​varies the prices according to 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 24

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

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

Question 25

Which of the following statements is true of a firm's distribution strategy?

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)​Since services are intangible, many service firms choose indirect distribution strategy.

Question 26

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 that promise more than what the firm can deliver.
D)​the inability of management to translate customers' needs into delivery systems within the firm.

Question 27

To close the gap between what a company provides and what the customer is told it provides,the company must:

A)​ensure that employees have the skills and the proper tools to perform their jobs.
B)create realistic customer expectations through honest, accurate communication.
C)encourage teamwork and train employees so that they know what the management expects.
D)​stay attuned to customer wishes by researching customer needs and satisfaction.

Question 28

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 that promise more than what the firm can deliver.

Question 29

Stone Restaurant,a five-star restaurant,changes its centerpiece such as candles,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)​Using celebrity endorsement

Question 30

In the context of 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 31

_____ refers to the inability of services to be stored,warehoused,or inventoried.

A)​Variability
B)Reliability
C)Heterogeneity
D)​Perishability

Question 32

Which of the following statements is true of bundled pricing?

A)​It is simpler for a firm to administer than individually pricing each element.
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 for services.

Question 33

Laelle Airlines,an international airlines company,offers a variety of services to its customers.Given this information,which of the following is the core service provided by Laelle Airlines?

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

Question 34

The number of customers who dine at Eat and Den,a restaurant,varies during 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 35

Tina is an expert in gardening.She provides services like setting up 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 36

Which of the following statements is true of mass customization?

A)​It focuses on customizing rather than standardizing products.
B)It cannot cater to the needs of different customer groups.
C)It uses technology to customize the products of a firm.
D)​It does not respond to individual customers' needs.

Question 37

In the context of service processes,_____ takes place when the service is directed at a customer.

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

Question 38

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

A)​Increasing the credence qualities of services
B)Providing training for employees
C)Improving standardization of services
D)​Finding ways to synchronize supply and demand

Question 39

In the context of evaluating service quality,_____ refers to the ability to provide prompt service.

A)​responsiveness
B)empathy
C)tangibility
D)​assurance

Question 40

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

A)​use technology directed at a customer's assets.
B)focus more on creating an attractive, comfortable physical environment.
C)require customers to enter the service factory.
D)​focus more on training employees in employee-customer interaction.

Question 41

What are the three product-related distinctions between profit and nonprofit organizations?

Question 42

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

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

Question 43

What are the challenges faced by service providers while deciding on a pricing strategy?

Question 44

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 _____ of relationship marketing.

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

Question 45

Which of the following is a difference between profit organizations and nonprofit organizations?

A)​Profit organizations focus on profit and sales maximization, while nonprofit organizations seek to redistribute income.
B)Profit organizations use public service advertisements for promotion, while nonprofit organizations use commercial advertisements for promotion.
C)Profit organizations market complex behaviors or ideas, while nonprofit organizations market tangible goods.
D)​Profit organizations adopt undifferentiated segmentation strategies, while nonprofit organizations adopt differentiated segmentation strategies.

Question 46

Briefly explain what service firms must do to be successful in the global marketplace.

Question 47

Nonprofit organizations differ from profit organizations in that nonprofit organizations:

A)​target the niche market segments that may be most profitable.
B)compete with, rather than complement, the efforts of other organizations in the market.
C)must often target those who are apathetic about or strongly opposed to receiving their services.
D)​give priority to developing those market segments that are most likely to respond to particular offerings.

Question 48

At the _____ of relationship marketing,a firm uses financial and social bonds but offers value-added services that are not readily available from other firms.

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

Question 49

A _____ is an announcement that promotes a program of a federal,state,or local government or of a nonprofit organization.

A)​public service advertisement
B)commercial advertisement
C)retail advertisement
D)​surrogate advertisement

Question 50

Which of the following is a characteristic that distinguishes the pricing decisions of nonprofit organizations from those of profit organizations?

A)​Consumers are charged a monetary price but instead must absorb monetary costs.
B)Their services are priced higher than the costs incurred.
C)Their services are paid for by people who are better off financially.
D)​Indirect payment is not a common practice in nonprofit organizations.

Question 51

Which of the following statements is true of nonprofit organizations?

A)​They can measure their success and failure in strictly financial terms.
B)They seek to make a profit for redistribution to owners or shareholders.
C)They have a financial bottom line that simplifies decision-making processes for nonprofit managers.
D)​They focus on generating enough funds to cover the organization's expenses.

Question 52

Explain the factors that should be focused on when deciding on distribution strategies for service organizations.

Question 53

Describe the issues relating to target markets that are unique to nonprofit service organizations.

Question 54

Wildside Inc.,a company providing various wildlife tours,gives equal importance to customers and employees.The managers at Wildside Inc.ensure that the employees of the company are satisfied with their jobs.They believe that employees should be kept happy as they are brand ambassadors.This scenario is an example of _____.

A)​external marketing
B)shopper marketing
C)nonprofit marketing
D)​internal marketing

Question 55

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