Deck 11: Services Marketing

Question 1

Service industries generate about _______ per cent of the national incomes of Australia and New Zealand.

A) 20
B) 70
C) 50
D) 90
E) 10

Answer 1

70

Question 2

The act of delivering a product is by definition a:

A) service.
B) courier.
C) benefit.
D) performance.

Answer 2

service.

Question 3

The government sector is a major provider of services in both Australia and New Zealand, most notably in the areas of:

A) finance, tourism and hospitality.
B) defence, health and education.
C) communications, hospitality and health.
D) defence, tourism, education and welfare.
E) Both a and b.

Answer 3

defence, health and education.

Question 4

Which of the following are NOT services?

A) A transfer of title.
B) An exchange of tangible goods.
C) Tangible products.
D) All of the options listed.

Question 5

The industry, which is responsible for generating the majority of a countries income, can be said to dominate its economy. With this in mind, Australia and New Zealand are:

A) manufacturing-dominant economies.
B) service-dominant economies.
C) agriculture-dominant economies.
D) goods-dominant economies
E) None of the options listed.

Question 6

Hairdressing is a good example of a service purchased by an individual for their own private consumption. Hairdressing is also an example of:

A) outsourcing.
B) business-to-business service.
C) consumer service.
D) a tangible product.

Question 7

Which of the following statements is incorrect?

A) Services can include activities, performances and benefits offered for sale
B) Services are intangible.
C) Services involve a transfer of title.
D) A product offering can consist of both a physical good and a service component.
E) Services are provided through the application of intellectual or physical efforts to a person or object.

Question 8

Services are usually provided through the application of intellectual or physical efforts to a _______ or physical object. As such, services involve a _________ component.

A) plan, service
B) person, physical
C) person, service
D) plan, delivery

Question 9

McDonalds is a service provider. Considering this and your understanding of services, which of the following statements is incorrect?

A) A service can be provided through the application of intellectual effort.
B) A service can be provided through the application of physical effort.
C) A service cannot be provided to a physical object.
D) A service cannot be provided to a person.
E) A service is a deed, activity or performance.

Question 10

Many products are provided using a combination of equipment and physical efforts. They are considered services because the intangible inputs into the services comprise the largest proportion of the value delivered by the product. Which of the following are services?

A) A mechanic changing a car's oil.
B) A tyre re-alignment.
C) Fitting a new timing belt and brake pads.
D) All of the options listed.

Question 11

Which of the following environmental factors have facilitated the growth of the service sector over the past decade?

A) The emergence of dual-income families.
B) Technological change.
C) The ageing population.
D) All of the options listed.
E) Both a and c.

Question 12

Nutella partnered with Myer and David Jones to allow customers of these stores to customise their own label at a special booth in-store. This is a demonstration of value, specifically referred to as______.

A) Co-creation.
B) Value creation.
C) Partnerships.
D) Service enhancement.
E) None of the above.

Question 13

Which of the following statements does not reflect a 'service-dominant logic' view of marketing?

A) All products should be seen as a means to an end
B) Value is essentially intangible
C) The customer is inextricably involved in the process of value co-creation
D) Not all economies are service economies
E) All of these options are correct

Question 14

When Telstra decided to shift its call centre operations from Australia to countries within Asia, it was an example of:

A) consulting.
B) leasing.
C) outsourcing.
D) upskilling.
E) None of the options listed.

Question 15

The characteristics that formally distinguish services from goods are intangibility, inseparability, ____________ and perishability.

A) benefits
B) heterogeneity
C) homogeneity
D) tangibility

Question 16

The characteristic of services which most fundamentally distinguishes them from goods is their:

A) benefits.
B) heterogeneity.
C) homogeneity.
D) intangibility.

Question 17

When having a doctor's consultation and receiving news on a recent blood test the patient must be present with the doctor to receive the information. This characteristic is known as:

A) inseparability.
B) intangibility.
C) perishability.
D) homogeneity.

Question 18

Tickets to a concert that never get sold are an example of a services':

A) heterogeneity.
B) intangibility.
C) perishability.
D) homogeneity.

Question 19

Websites such as 'lastminute.com' and 'Halftix.com' offer discount prices for accommodation and entertainment in an attempt to balance supply and demand. Specifically these sites:

A) restrict demand.
B) increase supply capacity.
C) stimulate demand.
D) decrease supply capacity.

Question 20

Which factor is most controllable in the delivery of a service?

A) The organisations customers.
B) The organisations competitors.
C) The organisations staff.
D) The organisations product.

Question 21

Function of Beauty is a new online retailer that specialises in customisable hair care. They realise that many potential customers will experience feelings of uncertainty before engaging his services. In order to minimise these feeling, Function of Beauty could use:

A) tangible cues.
B) guarantees.
C) testimonials.
D) positive word-of-mouth promotion.
E) All of the options listed.

Question 22

A service's intangibility can best be described as:

A) its inability to be stored for use at a later date.
B) it being produced and consumed simultaneously.
C) inevitable, but minimisable, variations in the quality of its delivery.
D) its lack of physical form.
E) None of the options listed.

Question 23

Which of the following statements is correct?

A) The intangible nature of services makes their evaluation prior to purchase difficult.
B) The tangible nature of services makes their evaluation prior to purchase easy.
C) The intangible nature of services makes their evaluation prior to purchase easy.
D) The tangible nature of services makes their evaluation prior to purchase difficult.
E) None of the options listed.

Question 24

Each morning you buy a coffee from your favourite coffee shop. Each morning your experience and your coffee is slightly different. This characteristic of services is known as:

A) intangibility.
B) inseparability.
C) heterogeneity.
D) perishability.
E) physical evidence.

Question 25

Which of the following could potentially reduce the heterogeneous nature of a service product?

A) The use of technology.
B) The use of machinery.
C) Staff training.
D) All of the options listed.
E) Both a and c.

Question 26

Which of the following statements is incorrect?

A) Balancing supply and demand helps to overcome issues that may arise due to the service characteristic of perishability.
B) Services can be standardised.
C) Services can be customised.
D) Unlike physical goods, there can be no intermediaries in a service distribution channel.
E) All of the options listed.

Question 27

Attempts to smooth service demand would include which of the following?

A) Cheaper fares offered by airlines during off-peak times.
B) Restaurants using a reservation system.
C) Tickets for a concert being made available for sale to people in all States of Australia at the same time, on the same day.
D) Both a and b.
E) Both a and c.

Question 28

Boarding your Emirates flight to London, you notice the pilot in his smart uniform and the flight attendants looking very well dressed. The cabin is quite spacious and there is plenty of room for your carry-on luggage. From these visual cues you feel reassured and confident that the flight will be enjoyable. Visual cues are a characteristic of services known as:

A) intangibility.
B) inseparability.
C) heterogeneity.
D) perishability.
E) physical evidence.

Question 29

Accountants, lawyers, architects and investment advisers manage their customers closely as individuals and provide each with a service tailored to their unique circumstances and needs. They are known as:

A) business service providers.
B) professional service providers.
C) consumer service providers.
D) individual service providers.

Question 30

The Ritz-Carlton creates a sustainable source of difference, by providing all employees the "golden rule" allowing them to spend up to US$2000, per incident, to solve a customer service issue. The Ritz-Carlton have used a strong ____________ to create a unique market position.

A) service culture
B) pricing strategy
C) professional strategy
D) consumer strategy

Question 31

A potential airline customer can evaluate the ____________ qualities of timetables, destinations and prices before making their purchase and experiencing the service. Many services, however, lack these qualities and instead customers rely on other qualities.

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

Question 32

Services high in credence qualities include:

A) furniture and jewellery.
B) root canal therapy and automotive repairs.
C) holidays and haircuts.
D) restaurant meals and childcare.

Question 33

In line with the five common dimensions which customers use to evaluate service quality, empathy can be explained as:

A) care and attentiveness.
B) trust and confidence in the service provider.
C) willing and able to provide the service.
D) consistency and dependability.

Question 34

Because services are typically ____________ and frequently ____________ in quality, it is important that service marketers actively manage customers' ____________ so that customer service delivery will consistently fall within customers' zone of tolerance.

A) intangible, variable, expectations
B) tangible, variable, expectations
C) intangible, consistent, experiences
D) tangible, consistent, experiences

Question 35

Consumer's rating their likelihood to recommend a company, a product, or a service to a friend or colleague is referred to as a ______________. This is often represented as a percentage and is commonly used to benchmark against other competitors.

A) Performance index.
B) Reviews.
C) Service rating.
D) Net promoter score.
E) None of the above.

Question 36

The airline Jetstar charges passengers extra for meals, in-flight entertainment and additional baggage. Jetstar would be best described as focusing on its ____________ service.

A) augmented
B) potential
C) core
D) expected
E) None of the options listed.

Question 37

Which of the following statements is correct?

A) Credence qualities are based on an evaluation of the service provider's trustworthiness, integrity and professionalism.
B) Services can enjoy the protection of legal patents.
C) Search qualities enable a service to be evaluated during or after purchase.
D) Experience qualities enable a service to be evaluated prior to purchase.
E) None of the options listed.

Question 38

Dining at a restaurant or going to see a new theatre production is an example of a service that would most likely be evaluated by customers using:

A) search qualities.
B) experience qualities.
C) credence qualities.
D) total quality management.
E) None of the options listed.

Question 39

A person who has been a regular gym member for several years moves to a new city and wishes to join a new gym. He proceeds to evaluate three that are in his new local area, with his main criteria being the availability of the latest gym equipment and the cleanliness of the change rooms/shower facilities. These evaluation qualities could best be described as:

A) tangible experience qualities.
B) intangible experience qualities.
C) intangible credence qualities.
D) intangible search qualities.
E) tangible search qualities.

Question 40

A small- to medium-sized business engages the services of a well-known and reputable accountancy firm to prepare its financial statements and provide financial advice on the future operations of the business. The small- to medium-sized business has most likely used which of the following dimensions of service quality in choosing the accounting firm?

A) Reliability.
B) Tangibles.
C) Assurance.
D) Responsiveness.
E) None of the options listed.

Question 41

Airlines such as Singapore Airlines regularly measure on-time performance in relation to flight arrivals and departures. Which dimension of service quality are they measuring?

A) Reliability.
B) Responsiveness.
C) Tangible evidence.
D) Assurance.
E) None of the options listed.

Question 42

McDonalds understands that the most important prerequisite to establishing service quality standards is:

A) managing customers' service expectations.
B) measuring employee performance.
C) understanding customers' expectations.
D) Options a, b and c.
E) Both a and b.

Question 43

Which of the following is the most important prerequisite to establishing service quality standards?

A) Managing customers' service expectations.
B) Measuring employee performance.
C) Understanding customers' expectations.
D) All of the options listed.
E) Both a and b.

Question 44

Which of the following statements about customer expectations is incorrect?

A) If a company is facing a clash between efficiency expectations and the need to provide high levels of customer service, most customers will expect efficiency to come first and friendliness second.
B) After the first service encounter customers will place increasing reliance on advertising and promotion rather than experience.
C) Customer service expectations are not likely to change over time.
D) Both a and c.
E) Both b and c.

Question 45

When a customer favourably evaluates a dental service because of the dentist's reputation and willingness to listen to his or her needs, which two dimensions of service quality is the customer primarily using to form his or her opinion?

A) Assurance and empathy.
B) Responsiveness and empathy.
C) Reliability and responsiveness.
D) Responsiveness and assurance.
E) Tangibles and reliability.