Deck 12: Services and Nonprofit Organization Marketing

Question 1

Tug Bark, a fast food chain from the United States, wants to open a branch in China. It plans to change its menu to appeal to the Chinese palate. In this scenario, Tug Bark is engaged in implementing the gap model of service quality.

Answer 1

False

Question 2

Level 2 (social) relationship marketing is often more effective than level 1 (financial) relationship marketing.

Answer 2

True

Question 3

Employees who like their jobs and are satisfied with the firm they work for are more likely to deliver superior service to customers.

Answer 3

True

Question 4

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

Question 5

Nonprofit organization marketing is the effort by nonprofit organizations to compete with private-sector organizations by providing better customer services and gaining customer loyalty.

Question 6

For a nonprofit service firm, the first step toward success in the global marketplace is determining the nature of its core products.

Question 7

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

Question 8

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 9

Marketers have more trouble promoting tangible goods than intangible services.

Question 10

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

Question 11

Many nonprofit organizations are explicitly or implicitly prohibited from advertising, thus limiting their promotion options.

Question 12

Nonprofit organizations have the freedom to choose their target audience that helps them control their economies of scale and lower per-capita costs.

Question 13

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

Question 14

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

Question 15

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

Question 16

Unlike a commercial advertiser, the sponsor of a public service advertisement pays for the time and space.

Question 17

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

Question 18

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

Question 19

Tele Tales, a radio and television broadcasting company, allots two hours of its combined air time to promoting cautionary messages about tobacco and alcohol abuse. Tele Tales does not receive any sponsorship for running these advertisements. In this context, Tele Tales is most likely engaging in a sales promotion activity.

Question 20

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 21

In the context of service quality, which of the following statements 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.

Question 22

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 23

Nonprofit organizations differ from profit organizations in that nonprofit organizations:

A)target the niches that may be most profitable.
B)compete with, rather than complement, the efforts of others.
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 24

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 25

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 26

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

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

Question 27

In the context of promotion strategies, which of the following is an example of engaging in postpurchase communication?

A)An airline hiring an actor to act in a series of commercials endorsing its 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 customers who avail its services in January
D)A hotel sending an e-mail survey to its guests asking them to rate the quality of service that they received

Question 28

Wildside Inc., a company that organizes 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 the employees should be kept happy as they are the brand ambassadors of the company. This scenario is an example of _____.

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

Question 29

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 strategies.

Question 30

Hannah likes to frequent Citrus, a fine dining restaurant, as she loves the beef lasagna there and orders it every time she visits the restaurant. 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 31

Which of the following statements is true of internal marketing?

A)Internal marketing is applicable only to the employees of goods manufacturers and not of service firms.
B)The quality of a firm's employees is an important part of building long-term relationships with customers.
C)Customers are treated as potential employees as they become the delivery vehicle of the purchased products.
D)Different manufacturers exchange goods internally in an attempt to curb negative competitive spirit.

Question 32

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

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

Question 33

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 34

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 35

At the _____ of relationship marketing, a 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 36

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 37

Tina is an expert gardener. 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 38

A(n) _____ is a characteristic that can be assessed only after use.

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

Question 39

Laelle Airlines, an international airlines company, has a service offering that includes 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 40

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 41

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)service
B)value
C)branding
D)profits

Question 42

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 43

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

Question 44

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

Question 45

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

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

Question 46

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 47

_____ is a strategy that 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 48

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

Question 49

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 including misleading advertising campaigns promising more than the firm can deliver.
C)is the result of 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 50

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 51

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

Question 52

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

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

Question 53

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 for services.

Question 54

Which of the following statements is true of the marketing strategies of nonprofit organizations?

A)They can measure their success or failure in strictly financial terms.
B)They seek to make a profit for redistribution to owners or shareholders.
C)The presence of a financial "bottom line" makes it easy for nonprofit managers to make decisions.
D)Their focus is often on generating enough funds to cover expenses.

Question 55

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

Question 56

_____ is defined as the inability of the production and consumption of a service to be detached.

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

Question 57

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 58

Which of the following statements is true of the global issues in services marketing?

A)Competition in international services is decreasing rapidly.
B)The international marketing of services is a major part of global business.
C)The marketing mix elements should not take into account each country's cultural environment.
D)The first step towards success in the global marketplace is designing the marketing mix elements.

Question 59

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 60

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 61

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