Deck 12: Services Marketing

Question 1

The new sharing economy consists of all of the following except which?

A)outsourcing small jobs in a local neighborhood
B)helping people rent products,tools,and bicycles rather than purchase them
C)renting extra space in a driveway
D)peer-to-peer car-sharing
E)selling theatre tickets for half off for day-of performances

Answer 1

E
Explanation: Selling discount theatre tickets is a promotional method rather than an example of the new sharing economy.

Question 2

Which generational cohort appreciates the opportunity to engage in collaborative consumption,also known as peer-to-peer sharing or the sharing economy?

A)Generation Y
B)millennials
C)baby boomers
D)Generation Z
E)Generation X

Answer 2

B
Explanation: Millennials appreciate the opportunity to engage in collaborative consumption,also known as peer-to-sharing or the sharing economy.They typically don't buy newspapers,DVDs,or CDs.Instead,millennials find their news on Facebook,stream movies from Hulu,and subscribe to music via Pandora.They are more likely to borrow,rent,and share than previous generations of consumers.

Question 3

Based on marketing research with employees,customers,and hosts around the world,Airbnb developed its current strategy,which centers around

A)providing free one-night stays as a way to hook discount travelers.
B)limiting travel destinations to those with enough entertainment venues to warrant subsequent visits.
C)expanding its offerings to include shared transportation options for frequent travelers.
D)hosts that do not simply offer their spaces as rentals but work hard to offer unique experiences.
E)rapid expansion in rural areas that do not have traditional hotels.

Answer 3

D
Explanation: Airbnb's marketing activities now focus on using technology to create community,relationships,and a sense of belonging in an industry that had become standardized and impersonal.The key to the strategy is to encourage hosts not to simply offer their spaces as rentals but to work hard to offer unique experiences.

Question 4

Which of the following statements about services is most accurate?

A)Although a major contributor to the GDP nationally,services play only a minor role in GDP on a global scale.
B)Whether tangible or intangible,the marketing of services is exactly the same as the marketing of products or ideas since they both satisfy customer needs.
C)Almost 65 percent of all jobs created in the United States are in the services sector.
D)In the United States,the proportion of the U.S.gross domestic product (GDP)coming from services now exceeds that from goods.
E)There is much more in common with the marketing of services and business products than there is between the marketing of services and consumer products.

Question 5

Because services tend to be a(n)________ rather than an object,they are much more difficult for consumers to evaluate.

A)opportunity
B)good
C)risk
D)decision
E)performance

Question 6

Services are

A)the tangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
B)the activities provided to complement a tangible good,such as technical support for a computer.
C)any activity required for the production of a good that cannot be completed in-house and must be outsourced to another firm.
D)the human (nonmechanical)component that is part of the manufacturing process.
E)the intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

Question 7

To help consumers ________,marketers try to make them tangible or show the benefits of using the service.

A)assess and compare services
B)reduce inconsistency
C)increase interaction with service providers
D)appreciate the flexibility of services
E)understand the interdependence of services

Question 8

Which of the following statements about services is most accurate?

A)Whether tangible or intangible,the marketing of services is exactly the same as the marketing of products or ideas since they both satisfy customer needs.
B)Although a major contributor to GDP nationally,services play only a minor role in GDP on a global scale.
C)Exports of services is one of the few areas in which the United States has a trade surplus.
D)Very few jobs in the United States are in the services sector.
E)There is much more in common with the marketing of services and business products than there is between the marketing of services and consumer products.

Question 9

Which of the following is considered a service?

A)a marketing class
B)lamp
C)motorcycle
D)potato chips
E)environmentalism

Question 10

The four I's of services consist of

A)intangibility,inconsistency,inseparability,and innovation.
B)intangibility,inventory,inflexibility,and impression.
C)intangibility,inconsistency,inseparability,and inventory.
D)intangibility,inventory,innovation,and impression.
E)intangibility,inconsistency,innovation,and impression.

Question 11

The intangibility element of a service refers to the fact that it

A)has value that can only be determined by using subjective criteria.
B)can't be held,seen,or touched before the purchase decision.
C)requires the ability to provide the service even in times of no demand.
D)can maintain or accumulate good will with customers.
E)can be objectively evaluated.

Question 12

Sarah has a backache due to overexertion.She believes a massage would loosen her back muscles and help her feel better.She is concerned because a massage,unlike a pair of shoes,cannot be experienced or seen before she buys it.Which characteristic of services is she concerned about?

A)incongruity
B)inconsistency
C)intangibility
D)inventory costs
E)inseparability

Question 13

To help consumers assess and compare services,marketers try to make them tangible or

A)temporal.
B)consistent.
C)adaptable.
D)measurable.
E)show the benefits of using the service.

Question 14

Consumers have more difficulty evaluating services than they do products;the difficulty results from the

A)intangibility of services.
B)incongruity of services.
C)inseparability of services.
D)inflexibility of services.
E)interdependence of services.

Question 15

Intangible items such as airline trips,financial advice,or telephone calls that an organization provides to consumers are referred to as

A)production goods.
B)support products.
C)services.
D)goods.
E)benefits.

Question 16

Services are now a larger part of the U.S.gross domestic product (GDP)than goods.The growth of the service sector is the result of

A)changes in the service mix and the decline in goods production.
B)goods representing a larger part of the gross domestic product than services.
C)changes in the way service consumers make purchase decisions and the ways in which the marketing mix is used for services.
D)increased demand for services that have been available in the past and the increasing interest in new services.
E)the imbalance between exported merchandise and commercial services.

Question 17

Before moving out of their apartment,Kelly and Doug decided to have their carpets cleaned by Stanley Steemer,a company specializing in professional carpet cleaning.The carpet cleaners arrived on time,cleaned the carpets,and drove away in their bright yellow van;only then did the couple see that they did a good job.Kelly and Doug were unable to judge the service before they bought it,which illustrates the ________ of services.

A)inconsistency
B)inseparability
C)inventory costs
D)intangibility
E)interdependence

Question 18

A Delta Airlines ad shows the airline's new seats and emphasizes their size and other benefits,to overcome the ________ of its service.

A)incongruity
B)inconsistency
C)inventory costs
D)inseparability
E)intangibility

Question 19

Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value are referred to as

A)services.
B)goods.
C)products.
D)marketing mix.
E)ideas.

Question 20

There are four unique elements to services-intangibility,inconsistency,inseparability,and inventory-which are referred to as the

A)service mix.
B)four I's of services.
C)service matrix.
D)four Ps of services.
E)service continuum.

Question 21

Alana operates a wedding preparation service that helps brides-to-be in the planning of their weddings.To maintain a quality image and a standardized offering,Alana provides extensive training for each of her employees.What unique aspect of services is Alana trying to address?

A)impressionability
B)intangibility
C)inconsistency
D)inseparability
E)uniqueness of the service

Question 22

Inconsistency of services refers to the fact that

A)there is no regulation of service industries in terms of basic standards of quality.
B)the quality of service provided by a firm is often inconsistent with its image.
C)the performance of one employee may vary from the performance of another employee even though the same firm employs both.
D)training and standardization of service delivery procedures cannot be accomplished.
E)services have a varying degree of durability.

Question 23

The interaction between a service provider and the consumer such that the two of them co-create value together is due to which element unique to services?

A)inventory
B)intangibility
C)inseparability
D)service continuum
E)inconsistency

Question 24

Services depend on the people who provide them.As a result,their quality varies with each person's capabilities and day-to-day job performance.This element of services is referred to as

A)incongruity.
B)differentiation.
C)variation.
D)inconsistency.
E)intangibility.

Question 25

If you find that the staff who work in your college's career center gave you poor advice or otherwise did not provide sufficient help in finding you employment after graduation,you may be dissatisfied with your entire college experience.This is an example of which issue associated with services?

A)intangibility
B)impressionability
C)incongruity
D)inseparability
E)inflexibility

Question 26

A situation that occurs when a service provider is available but there is no demand is referred to as

A)off-peak pricing.
B)idle production capacity.
C)static demand.
D)capacity management.
E)excess inventory.

Question 27

The brochure for Spa Sydell has photographs of people enjoying the various spa amenities.By seeing the pictures of available treatments at the spa,a customer has a better idea of what she is buying.Spa Sydell uses a brochure to help customers deal with the ________ that is associated with using the service.

A)incongruity
B)inconsistency
C)inventory costs
D)inseparability
E)intangibility

Question 28

Idle production capacity affects service delivery and is defined as

A)a situation where the demand for exceeds the availability of service providers and as a result,no services can be offered
B)when the supply of service providers exceeds the primary demand for the service
C)a situation where a service provider is available but there is no demand for the service
D)integrating the service component of the marketing mix with efforts to influence consumer demand
E)the reduced effectiveness of one service provider serving multiple clients at the same time.

Question 29

To help consumers assess and compare its airline service,Frontier Airlines uses personable animal characters in its advertising to announce and describe benefits,such as leather seats and "stretch" seating,to help deal with the

A)incongruity of the service.
B)inseparability of the service.
C)intangibility of the service.
D)inflexibility of the service.
E)interdependence of the service.

Question 30

The Philadelphia Phillies baseball team may have great hitting and pitching one day,and lose by 10 runs the next day.This is an example of a service being

A)inseparable.
B)inconsistent.
C)inventoried.
D)tied to a product.
E)independent of the quality delivered.

Question 31

Andrea Arenas is the owner of 2 Places at 1 Time,a concierge company.She and her staff of 60 perform everyday services,such as walking the dog,picking up cleaning,waiting for the repairman,and going to the post office,for people who are too busy to perform these simple tasks.One way she tries to avoid ________ of services for her regular customers is to make sure that the same well-trained person is always assigned to work for the same client.

A)inseparability
B)inconsistency
C)incongruity
D)inflexibility
E)intangibility

Question 32

How is inventory of services different from that of products?

A)Time is less important to customers of services than customers of products.
B)Only service inventory can be reduced through more efficient movement of products.
C)There are larger costs associated with the handling of service inventory.
D)Unlike goods providers,the service provider is often unavailable when there is a demand for the service.
E)Service inventory costs are related to idle production capacity rather than storage or perishability.

Question 33

A local band performed on campus during a pre-graduation party.The students enjoyed the performance,and some of them were interested enough to buy tickets to see another show at a club downtown.But when they went to that concert,the quality of the performance was much poorer than they had heard and seen on campus.The students' disappointment was the direct result of which characteristic of services?

A)inconsistency
B)impressionability
C)intangibility
D)invisibility
E)uniqueness of the service

Question 34

Jack graduated from law school and took his mom to dinner after the ceremony.At the restaurant,the server filled their water glasses,checked on their table,and took care of their requests.Jack noted that the last time he was at this restaurant,the experience was much worse.This scenario illustrates the ________ of services.

A)impressionability
B)intangibility
C)inseparability
D)uniqueness of the service
E)inconsistency

Question 35

Organizations attempt to reduce inconsistency in their services by

A)paying higher incentives to employees to encourage satisfactory performance.
B)reducing incentives available to employees because of poor performance.
C)reducing the customer contact points in the service delivery process.
D)providing standardization and training.
E)exercising better hiring practices.

Question 36

When banks are closed,they can offer value to their customers through automatic teller machines (ATMs).This self-service technology also comes with a downside since the ATMs are perceived as being less

A)convenient.
B)reliable.
C)personal.
D)safe.
E)accurate.

Question 37

When Mandy last got her drive-through order at the fast-food restaurant,she thought the employee who helped her was cold and unfriendly.The food tasted good but was overshadowed by the employee's demeanor.Since then,Mandy often says something derogatory to her friends about the restaurant based on this single experience.This is an example of which issue associated with services?

A)inseparability
B)intangibility
C)impressionability
D)incongruity
E)inflexibility

Question 38

Although many people love the self-service technology that allows Redbox to provide DVDs 24 hours a day,seven days a week,many people also want personal interaction and recommendations from other people.Redbox confronted this issue by creating "Redblog," where customers could share their opinions,feelings,and experiences.This is an example of managing the

A)inventory aspects of services.
B)inseparability aspects of services.
C)inconsistency aspects of services.
D)intangibility aspects of services.
E)impressionability aspects of services.

Question 39

Chuck is a guide for tours that take visitors to swim with manatees in central Florida.He is a very gregarious guy with funny stories and a great way with people,so many online reviewers mention him by name and say little about the organization he works for.The reviewers' inability to see the distinction between Chuck and the tour company is an example of which unique characteristic of services?

A)intangibility
B)impressionability
C)incongruity
D)inseparability
E)inflexibility

Question 40

Inseparability in services means consumers

A)see little variation from one service provider in an industry to another.
B)are unable to differentiate price from quality.
C)cannot evaluate a service until it is being or has been used.
D)cannot separate the service itself from the deliverer of the service.
E)cannot separate themselves from the deliverer of the service.

Question 41

In retail stores,inventory carrying costs can be reduced by

A)using a straight salary compensation plan.
B)hiring additional full-time personnel.
C)allowing personnel to work overtime.
D)minimizing employee absenteeism.
E)reducing worker hours.

Question 42

According to the service continuum,which of the following offerings has the highest level of intangibility?

A)tailored suit
B)advertising agency
C)tutoring service
D)fast-food restaurant
E)salt

Question 43

According to the service continuum,which of the following offerings has the lowest level of intangibility?

A)designer dress
B)law practice
C)tutoring service
D)cat food
E)baking soda

Question 44

Beverly has 15 tax accountants on her staff.During the months of February,March,and April,her staff is overworked and she may even hire more employees to meet the tax preparation needs of her clients.Beverly is not currently experiencing ________;in fact,all of her employees are fully being used.

A)off-peak pricing
B)idle production capacity
C)static demand
D)capacity marketing
E)capacity inventory

Question 45

The highest inventory carrying costs would most likely be for which of the following services?

A)real estate agencies
B)dry cleaners
C)auto repair centers
D)hair salons
E)hospitals

Question 46

According to the service continuum,what are offerings such as neckties,dog food,and tailored suits?

A)product-dominated offerings
B)people-dominated offerings
C)service-dominated offerings
D)equipment-dominated offerings
E)idea-dominated offerings

Question 47

The inventory costs of services include

A)equipment and training costs.
B)management and material costs.
C)service delivery and spoilage costs.
D)salary of service provider and equipment costs.
E)salary of service provider and training costs.

Question 48

The inventory carrying costs of airlines is high because they

A)use a straight salary compensation plan for the large numbers of flight attendants.
B)have high-salaried pilots and very expensive equipment.
C)allow baggage personnel to work overtime.
D)decrease the number of workdays per week,but increase the hours per day.
E)use a commission compensation system for their reservationists.

Question 49

Services can be classified by

A)their method of delivery.
B)their use of idle capacity time.
C)the nature of their ownership.
D)their location on perceptual maps.
E)organizational reach.

Question 50

For Merrill Lynch,it is possible to minimize ________ by having its financial advisors compensated through commissions.

A)shrinkage
B)seasonal absenteeism
C)economic recessions
D)derived demand
E)inventory carrying costs

Question 51

The inventory carrying costs of real estate agencies are low because they

A)use a straight salary compensation plan.
B)allow personnel to work any hours a day and any number of days per week.
C)decrease the number of workdays per week,but increase the hours per day.
D)have employees who work on commission and need little expensive equipment.
E)are responsible for their own training,transportation,and supplies.

Question 52

Which service listed below has the highest inventory carrying cost?

A)university
B)hotel
C)auto repair garage
D)amusement park
E)insurance company

Question 53

Southwest Airlines operates a daily flight between Chicago and Phoenix using a Boeing 737,which has a capacity of 120 passengers.During the past month,the flight has averaged 112 passengers.Once the plane takes off,the empty seats generate no revenue for the airline for that flight.What unique aspect of services does this situation describe?

A)incongruity
B)intangibility
C)inconsistency
D)inseparability
E)idle production capacity

Question 54

Which service listed below has the lowest inventory carrying cost?

A)railroad
B)hotel
C)long-term care facility
D)airline
E)insurance company

Question 55

According to the service continuum,what are offerings such as theaters,advertising agencies,and air travel?

A)product-dominated offerings
B)people-dominated offerings
C)service-dominated offerings
D)equipment-dominated offerings
E)idea-dominated offerings

Question 56

Which service listed below has the lowest inventory carrying cost?

A)restaurant
B)automobile repair
C)amusement park
D)dry cleaner
E)animal hospital

Question 57

According to the service continuum,which of these offerings has an equal balance of tangible and intangible attributes?

A)tailored suit
B)tutoring service
C)dog food
D)fast-food restaurant
E)movie theater

Question 58

The emergency room staff in Houston's largest hospital is pleasantly surprised when a four-day Fourth of July weekend brings in few accident victims for treatment.They know from experience that such public holidays usually have high rates of accidents.For the hospital's business office,the lower demand for the emergency room services means

A)a break in the service continuum.
B)its services are no longer tangible.
C)its services can be separated from the staff.
D)the hospital has idle production capacity.
E)an opportunity for gap analysis.

Question 59

The range of offerings from the tangible to the intangible,or product-dominant to service-dominant,is referred to as the

A)service continuum.
B)product continuum.
C)tangibility line.
D)inseparability span.
E)customer contact audit.

Question 60

The ________ cost of a service is the cost of paying the person used to provide the service along with any needed equipment.

A)intangibility
B)inconsistency
C)inseparability
D)inventory
E)hidden

Question 61

A nonprofit organization may pay taxes if

A)excess revenues exceed 20 percent of the budget.
B)the organization is not considered to be a religious institution.
C)revenue is received from overseas subsidiaries.
D)revenue-generating holdings are not directly related to the organization's core mission.
E)money is spent on research and development,then it is taxed at a significantly lower rate.

Question 62

Services can be classified according to whether they are

A)national or global.
B)used by independent contractors.
C)privately owned or publicly owned.
D)delivered by people or equipment.
E)owned by individuals or corporations.

Question 63

Recently,many nonprofit organizations such as United Way,Greenpeace,Outward Bound,The Salvation Army,and the Girl Scouts

A)were unable to use traditional marketing practices since they were 501(c)(3)organizations as classified by the IRS.
B)thought that marketing would limit their credibility and profitability as nonprofit organizations.
C)could not afford marketing activities.
D)have increased their use of marketing practices.
E)thought that marketing activities would create excess demand.

Question 64

What do a dry cleaning service,an automated car wash,and electric utilities have in common?

A)They are all tangible services.
B)They are all people-based services.
C)None of them has problems with idle production capacity.
D)They never use off-peak pricing.
E)They are all equipment-based services.

Question 65

Equipment-based services,such as ATMs,online brokerage firms,and automated car washes,do not have the marketing concern of

A)inconsistency.
B)intangibility.
C)inseparability.
D)inventory.
E)independence.

Question 66

Which of the following is the best example of a people-based service?

A)movie theaters
B)airlines
C)lawn care
D)vending machines
E)taxis

Question 67

What do an online travel agency,a limousine service,and a music streaming service have in common?

A)They are all strictly tangible services.
B)They are all people-based services.
C)None of them has a problem with idle production capacity.
D)They are all equipment-based services.
E)They all require skilled operators.

Question 68

Which of the following is the best example of an equipment-based service?

A)lawn care
B)doctors
C)taxis
D)lawyers
E)janitorial services

Question 69

Figure 12-4

Consider Figure 12-4 above.Services can be classified by their method of delivery.Box B represents

A)government-delivered services.
B)people-delivered services.
C)fee-delivered services.
D)equipment-delivered services.
E)nonprofit-delivered services.

Question 70

Services can be classified according to whether the provider

A)is national or global.
B)uses independent contractors or not.
C)is privately owned or publicly owned.
D)is owned by individuals or corporations.
E)is a for-profit or nonprofit organization or a government agency.

Question 71

Equipment-based services do not have the marketing concern of inconsistency because ________ have been removed from the delivery of the service.

A)risk and product liability
B)people
C)learning requirements
D)automations
E)accessories

Question 72

The categories for people-based services include

A)volunteers,skilled operators,and professionals.
B)unskilled labor,skilled labor,and professionals.
C)unskilled operators,unskilled labor,and skilled labor.
D)automated,skilled operators,and unskilled labor.
E)automated,skilled operators,and professionals.

Question 73

Three categories for equipment-based services are

A)unskilled labor,those operated by relatively unskilled operators,and self-serve.
B)professionals,those operated by relatively unskilled operators,and automated.
C)automated (self-serve),those operated by relatively unskilled operators,and those operated by skilled operators.
D)unskilled labor,skilled labor,and professionals.
E)those operated by skilled operators,unskilled labor,and professionals.

Question 74

Figure 12-4

Consider Figure 12-4 above.Services can be classified by their method of delivery.Box A represents

A)government-delivered services.
B)people-delivered services.
C)fee-delivered services.
D)equipment-delivered services.
E)nonprofit-delivered services.

Question 75

Recently,many nonprofit organizations such as the American Red Cross

A)have found marketing practices to be counterproductive.
B)began using marketing activities to improve profits.
C)could not afford marketing activities.
D)thought that marketing activities would create excess demand.
E)have used marketing to develop advertising and other promotional campaigns.

Question 76

For nonprofit organizations,excesses in revenue over expenses are

A)taxed at one-half the rate of for-profit organizations.
B)distributed equally to all of the organization's shareholders.
C)returned to the organization's treasury to allow the continuation of the service.
D)taxed at a reduced rate if the revenue is to be used in keeping with the organization's core mission.
E)not taxed at all unless it is a religious organization.

Question 77

Services can be classified by their method of delivery.Services such as management consulting,plumbing,and cleaning are considered

A)equipment-based services.
B)technology-based services.
C)fee-based services.
D)people-based services.
E)nonprofit services.

Question 78

Services can be classified by their method of delivery.Services such as ATMs,taxis,and airlines are considered

A)government-delivered services.
B)people-delivered services.
C)fee-delivered services.
D)equipment-delivered services.
E)nonprofit-delivered services.

Question 79

What do a security guard,a plumber,and a management consultant have in common?

A)They are all tangible services.
B)They do not have problems with idle production capacity.
C)They are all equipment-based services.
D)They are all people-based services.
E)They never use off-peak pricing.

Question 80

Compared with people-based services,equipment-based services do not have the marketing concern of

A)intangibility.
B)insensitivity.
C)inventory.
D)inconsistency.
E)immeasurability.