Deck 12: Services and Nonprofit Organization Marketing

Question 1

The Internet is a form of indirect service distribution.

Answer 1

False

Question 2

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

Answer 2

False

Question 3

Senior citizen and student discounts at movie theaters and restaurants are examples of operations-oriented pricing.

Answer 3

False

Question 4

At Great Bear Nature Tours,the owners are careful to treat both guests and employees very well.In fact,most employees feel that they are treated like privileged guests at work.This is an example of:

A)green marketing.
B)social marketing.
C)nonprofit marketing.
D)internal marketing.

Question 5

For both profit and nonprofit service firms,the first step toward success in the global marketplace is determining the nature of the company's core products.

Question 6

For customized services,such as construction services,customers lack the ability to negotiate a price.

Question 7

Premium boutique hotels encourage employees to develop strong,personal relationships with guests.Such hotels offer value-added services that are not available at traditional hotels.At which level of relationship marketing are these hotels operating?

A)Level 1
B)Level 2
C)Level 3
D)Level 4

Question 8

For time-dependent service providers such as airlines,physicians,and dentists,scheduling is often a more important factor than location.

Question 9

Marketing services is more challenging than marketing goods because:

A)of the unique characteristics of services,which includes intangibility,inseparability,heterogeneity,and perishability.
B)consumers and business users can easily evaluate the quality of services.
C)services tend to exhibit less experience and credence qualities.
D)all service providers compete against each other,but firms selling tangible goods complement each other.

Question 10

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

Question 11

Goods tend to be less standardized and uniform than services because they have greater heterogeneity.

Question 12

Which of the following is a difference between people-processing and possession-processing services?

A)People-processing services refer to services that use manual labor directed at customer's assets,while possession-processing services refer to services that use technology directed at customer's assets.
B)People-processing services require customers to enter the service factory,while possession-processing services typically do not require the presence of the customer in the service factory.
C)People-processing services emphasize on supplementary services,while possession-processing services greatly reduce supplementary services.
D)People-processing services occur when services are directed at customers' physical belongings,while possession-processing services occur when services are directed at a customer.

Question 13

TrustUs Insurance's tagline is "You're in safe hands with TrustUs," and Serenity Life Insurance uses a rock as its trade symbol because it wants to convey stability.What type of promotion strategy are these companies using?

A)Engaging in postpurchase communication
B)Creating a strong organizational image
C)Using personal information sources
D)Adopting standardization

Question 14

The intangible nature of services requires service firms to use indirect distribution over direct distribution or franchising.

Question 15

Marketers have more trouble promoting tangible goods than intangible services.

Question 16

Which of the following is a limitation of the revenue-oriented pricing approach?

A)High tax rates
B)Difficulty in determining costs
C)High economies of scale
D)Difficulty in communicating to consumers

Question 17

Which of the following is a difference between private-sector organizations and nonprofit organizations?

A)Private-sector organizations often adopt undifferentiated strategies,while nonprofit organizations adopt differentiated strategies.
B)Private-sector organizations must complement the efforts of nonprofit organizations,while nonprofit organizations must compete with the efforts of private-sector organizations.
C)Private-sector organizations prioritize market segments that are most likely to respond to particular offerings,while nonprofit organizations target those who are apathetic about receiving their services.
D)Private-sector organizations often market complex behaviors or ideas,while nonprofit organizations do not market complex behaviors or ideas.

Question 18

A bundled price is preferable when:

A)different customers have different needs.
B)firms customize services for each individual customer.
C)consumers dislike having to pay extra for every part of a service.
D)firms want to charge for their supplementary services separately.

Question 19

In revenue-orientated pricing,prices vary with different market segments' ability to pay.

Question 20

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

Question 21

__________,one of the components on which customers evaluate service quality,refers to the knowledge and courtesy of employees and their ability to convey trust.

Question 22

Business Essentials is a support group that consists mostly of young women who offer tips on budgeting and debt relief.Their goal is to help women break financial ceilings.Business Essentials is providing a(n)__________that is helpful to women who want to be financially savvy.

Question 23

Trina is a physical fitness trainer who tries to create fitness routines based on her understanding of the customers and their specific fitness goals.Which of the following service processes does this illustrate?

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

Question 24

__________focuses on maximizing the surplus of income over costs.

Question 25

Green & Gold is a coffee chain based in the United States.Its management has been trying to refocus on the things that originally made the company successful.For example,Green & Gold stores across the United States recently shut down for a short period of time for retraining,and the company has worked to make sure that customers can smell the freshly ground coffee aroma when they pass by the store.However,when questioned,consumers tend to emphasize on the need for pricing incentives such as a frequent purchasing program.According to the__________,there may be a difference between what customers want and what Green & Gold management thinks customers want.

Question 26

When a firm develops structural bonds with its customers by offering unique value added services,it is operating at__________of relationship marketing.

Question 27

Which of the following is true of operations-oriented pricing?

A)It involves maintaining a fixed price for a product or a service throughout the year.
B)It focuses on maximizing the surplus of income over costs.
C)It seeks to match supply and demand by varying prices.
D)It tries to maximize the number of customers using a service by improving its quality.

Question 28

Cashcrash.com is an online money transfer company that provides consumer remittance facilities.With the Cashcrash bank deposit service,consumers can send money directly to bank accounts in several countries around the world.Thus,Cashcrash.com would be classified as a:

A)good.
B)tangible product.
C)service.
D)tangible resource.

Question 29

David and Kathy like to take their young son,Chaz,to Moe's Southwestern Grill for lunch after church every Sunday.While they like to eat at Moe's at any time,Sunday is particularly good because it is "kids eat free" day at the restaurant.Until Moe's began this attractive offer,Sundays were very slow.Now it is one of the busiest days of the week for the restaurant.This strategy was a way to contend with the service characteristic of:

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

Question 30

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

Question 31

Which of the following is an example of postpurchase communication?

A)An airline hires an actor to film a series of commercials touting the airline's service.
B)An insurance company designs a new "umbrella" logo to indicate that its customers are well protected.
C)A tax return preparer offers a 20% discount for any customers who use the service in January.
D)A hotel sends an email survey to its guests a week after their stay,asking them to comment on the quality of the service they received.

Question 32

The__________of a service most clearly reveals the relationship between its target market strategy and its distribution strategy.

Question 33

Which of the following is true of supplementary services?

A)They are the most basic benefit the customer is buying.
B)They are usually emphasized to create a competitive advantage.
C)They are services mandatorily required by the government.
D)They are services that compete with the core service.

Question 34

Car Bar allows its customer to rent a car at $10 per day on weekdays,at $15 per day on weekends,and at $20 per day exclusively during the holiday season.This pricing strategy helps the company match the supply and demand for its cars.This is an example of__________.

Question 35

Silver Line Electronics Inc.uses technology to produce laptops and other gadgets in bulk based on each individual client's specific needs and requirements.This is an example of__________.

Question 36

What is the difference between internal marketing and relationship marketing? Why are these types of marketing important to service marketing?

Question 37

According to the gap model of service quality,which of the following is true of gap 1?

A)It results from a lack of understanding or a misrepresentation of customers' needs,wants,or desires.
B)It results from management's inability to translate customers' needs into delivery systems within the firm.
C)It can result in misleading or deceptive advertising campaigns promising more than the firm can deliver.
D)It can be corrected by training employees so that they know what management expects and encouraging teamwork.

Question 38

Which of the following is true of mass customization?

A)It results in a lower cost to firms when compared to standardized services.
B)It results in giving each customer whatever he or she asks for.
C)It is useful only to service firms and not to manufacturing firms.
D)It is based on the tenet that the needs,wants,or desires of all customers are the same.

Question 39

__________refers to the follow-up activities that a service firm might engage in after a customer transaction.

Question 40

Which of the following is true of goods?

A)They can be produced in a centralized location and be consumed in decentralized locations.
B)They tend to be less tangible than services.
C)They need to be produced,sold,and consumed at the same time as they are highly perishable.
D)They tend to be less standardized and uniform than services.

Question 41

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

Question 42

Green & Gold is a coffee chain based in the United States.Its management has been trying to refocus on the things that originally made the company successful.For example,Green & Gold stores across the United States recently shut down for a short period of time for retraining,and the company has worked to make sure that customers can smell the freshly ground coffee aroma when they pass by the store.However,when questioned,consumers tend to emphasize on the need for pricing incentives such as a frequent purchasing program.According to the _____,there may be a difference between what customers want and what Green & Gold management thinks customers want.​

A)gap model of service quality
B)​service pyramid
C)​four dimensions of service quality
D)service paradigm

Question 43

When is a service mix effective?

Question 44

The _____ of a service most clearly reveals the relationship between its target market strategy and its distribution strategy.​

A)tangibility
B)​location
C)​customization
D)separability

Question 45

Business Essentials is a support group that consists mostly of young women who offer tips on budgeting and debt relief.Their goal is to help women break financial ceilings.Business Essentials is providing a(n)_____ that is helpful to women who want to be financially savvy.​

A)asset
B)​tangible product
C)​service
D)tangible resource

Question 46

When a firm develops structural bonds with its customers by offering unique value added services,it is operating at _____ of relationship marketing.​

A)level 4
B)​level 3
C)​level 2
D)level 1

Question 47

Silver Line Electronics Inc.uses technology to produce laptops and other gadgets in bulk based on each individual client's specific needs and requirements.This is an example of _____.​

A)standardization
B)​reverse engineering
C)​benchmarking
D)mass customization

Question 48

_____,one of the components on which customers evaluate service quality,refers to the knowledge and courtesy of employees and their ability to convey trust.​

A)Empathy
B)​Responsiveness
C)​Assurance
D)Reliability

Question 49

There are four promotional strategies for dealing with the unique features of services.Name these strategies and give examples of each,using American Airlines (or another air carrier you are familiar with)as your example.

Question 50

Car Bar allows its customer to rent a car at $10 per day on weekdays,at $15 per day on weekends,and at $20 per day exclusively during the holiday season.This pricing strategy helps the company match the supply and demand for its cars.This is an example of _____.​

A)operations-oriented pricing
B)​revenue-oriented pricing
C)​patronage-oriented pricing
D)quality-oriented pricing

Question 51

_____ focuses on maximizing the surplus of income over costs.​

A)Operations-oriented pricing
B)​Revenue-oriented pricing
C)​Patronage-oriented pricing
D)Quality-oriented pricing

Question 52

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

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

Question 53

_____ refers to the follow-up activities that a service firm might engage in after a customer transaction.​

A)Need recognition
B)​Postpurchase communication
C)​Collective bargaining
D)Sales prospecting

Question 54

With the help of examples,describe the two unique challenges faced by service providers as they decide on a pricing strategy.