Deck 11: Services and Nonprofit Organization Marketing

Question 1

Oliver used to sell office furniture and supplies,but he now has semi-retired and started a cleaning service specializing in cleaning fire- and water-damaged structures.Why does selling cleaning services differ greatly from selling office furniture and supplies?

A)Cleaning services are homogeneous.
B)Cleaning services are unknowable.
C)Cleaning services are intangible.
D)Cleaning services are synergistic.

Answer 1

C
Services are intangible;furniture is tangible.

Question 2

Aristide and Olga are considering attending a clinic to help them quit smoking.After they attend the clinic and learn about the techniques it uses to help customers quit smoking,what will they be better able to assess?

A)the tangible attribute of the clinic
B)the experience quality of the clinic
C)the creative quality of the clinic
D)the credence quality of the clinic

Answer 2

B

Question 3

Refer to Western Union.Which service quality does Western Union provide to its users?

A)tangibility
B)responsiveness
C)assurance
D)reliability

Answer 3

D

Question 4

Refer to Western Union.Why has Western Union's market for wiring money grown dramatically over the last years?

A)It provides a good that is easy to use and reliable.
B)It provides a tangible product that is easy to use and reliable.
C)It provides a service that is easy to use and reliable.
D)It provides a synergy that is easy to use and reliable.

Question 5

A reading service for the visually impaired requires each reader applicant to prepare and submit a one-hour interview tape of material chosen by the service to determine whether the reader has pleasing vocal characteristics and is accent-free so that it is not necessary to use the same reader every time.The reading service is trying to limit problems associated with which service characteristic?

A)tangibility
B)credence quality
C)heterogeneity
D)flexibility

Question 6

Ian Trent has an MBA and is being recruited by an investment banking firm as a sales representative.He has had ten years of experience in selling industrial supplies.He was quite successful in this job but is worried that selling investment strategies may be more difficult.What factor would be the major reason for this worry?

A)Services are intangible and,therefore,different from his previous experience.
B)His services and the products he sells are inseparable.
C)The cost inventory management system of reimbursing him may cause a problem when he makes investments.
D)The extensiveness of distribution is unimportant when selling an investment service.

Question 7

Jackson Caputo owns and operates Jax Stables,a complete horse service that offers grooming,training,show training for handlers,boarding,and veterinary care.To maintain a quality image,Caputo regularly provides training for each employee in the company's operations,objectives,and expected performance standards.What unique aspect of services is Caputo attempting to address?

A)heterogeneity
B)perishability
C)intangibility
D)simultaneous production and consumption

Question 8

When the service being purchased requires little interaction between the service personnel and the customer,which service characteristic causes fewer problems?

A)perishability
B)inseparability
C)intangibility
D)heterogeneity

Question 9

LouAnne had her makeup professionally applied for her prom night.She went to the beauty salon,watched as the makeup artist applied cosmetics to her face,and then went home feeling gorgeous.LouAnne's makeover illustrates which service characteristic?

A)intangibility
B)inseparability
C)heterogeneity
D)flexibility

Question 10

Deidre Longo has just accepted a position at a major entertainment venue where she is responsible for selling season tickets.She formerly was a salesperson for a company that sold sound systems for arenas,stadiums,and theatres.She believed she understood why theatre managers bought certain products but realizes selling tickets to individuals will be different.What is one of the key differences she can expect to find?

A)The customer will select and evaluate entertainment on the basis of search services.
B)Customers are engaged in this as a low-involvement product.
C)A consumer will use experience qualities to evaluate the entertainment service.
D)The consumer realizes that the selling process is difficult because of the product.

Question 11

Refer to Western Union.Because a person can send money from a small town in Ontario to a small town in Mexico without worrying,what does Western Union have a high degree of?

A)survey quality
B)experience quality
C)research quality
D)credence quality

Question 12

Refer to Western Union.Which type of service is the wire transfer of funds provided by the company?

A)supplementary
B)benchmarked
C)core
D)primary

Question 13

Which of the following services would be most likely to exhibit strong credence qualities?

A)a math tutorial service
B)the repair of a leaky drain
C)the preparation of a dead body for burial
D)tax return preparation

Question 14

Refer to Western Union.Which type of service is the wire transfer of funds provided by the company?

A)supplementary
B)benchmarked
C)core
D)primary

Question 15

What is the term for a characteristic that can be easily assessed prior to purchase,such as the softness of a mattress or the colour of curtains?

A)search quality
B)intangible attribute
C)experience quality
D)heterogeneity feature

Question 16

What is the term for the result of applying human or mechanical efforts to people or objects?

A)application processor
B)profit intermediary
C)tangible product
D)service

Question 17

Management-labour mediation,child care,and college preparation classes are all services that are produced and consumed at the same time.Which service characteristic do all of these services exhibit?

A)inseparability
B)intangibility
C)heterogeneity
D)perishability

Question 18

Because a service cannot be touched,seen,tasted,heard,or felt in the same manner in which goods can be sensed,what is it called?

A)extraneous
B)synergistic
C)perishable
D)intangible

Question 19

Refer to Western Union.The company is now planning to move into areas traditionally handled by banks such as offering its customers chequing accounts and loans.If it does follow through and provide these additional services,which type of services will they exemplify?

A)complementary
B)secondary
C)supplementary
D)additional

Question 20

Which of the following is NOT a method firms can use to reduce the inherent variability of services?

A)standardized preparation procedures
B)standardization
C)hiring more full-time employees
D)training of employees in performance standards

Question 21

Which of the following services is an example of possession processing?

A)a theatrical performance
B)an X-ray of a broken bone
C)an advertising agency
D)a heating system repair

Question 22

Which of the following services is an example of information processing?

A)investment advice
B)a funeral service
C)pet neutering
D)the fitting of orthodontic braces

Question 23

The ability of each hotel guest to use his or her room's television to check out of the hotel room and to confirm additional charges on bills in the hotel's restaurants and gift shops is an example of which of the following?

A)mass customization
B)aggregated standardization
C)a market development strategy
D)mental stimulus processing

Question 24

TheKnot.com is an Internet company that is a one-stop source of all the items needed to have a successful wedding including listings of local caterers and photographers.When someone registers on the site,he or she is sent the "Ultimate Wedding Organizer." It offers advice on what to do about "cold feet" and how to handle in-laws.Which of the following does TheKnot.com represent as a portfolio of opportunities,risks,and challenges?

A)its component combination
B)its offering grouping
C)its service mix
D)its assembly process

Question 25

Which strategy uses technology to deliver customized services on a mass basis?

A)mass standardization
B)aggregated services
C)mass customization
D)aggregated marketing

Question 26

TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home.
Refer to TeamBuilds.What are TeamBuilds' improved work team relationships?

A)its primary service
B)its core service
C)its niche service
D)its foundation service

Question 27

Which of the following is a poor example of a type of service processing that can occur?

A)people processing
B)product processing
C)information processing
D)mental stimulus processing

Question 28

At the dealer-owned Home Hardware,the store manager is frustrated at the level of service employees provide to customers even after he wrote a guide to customer service and instructed each employee to read the guide.Which type of gap is this?

A)between the service quality specifications and the service that is actually provided
B)between what the company provides and what the customer is told it provides
C)between the service customers receive and the service they want
D)between what customers want and what management thinks customers want

Question 29

Why can't services be stored,warehoused,or inventoried?

A)due to service variability
B)due to service intangibility
C)due to service perishability
D)due to service heterogeneity

Question 30

Keen.com charges a per-minute fee to the person who contacts its specialist.How would Keen.com be classified?

A)as a tangible resource
B)as a tangible product
C)as a service
D)as a nonprofit organization

Question 31

Which of the following is NOT a service component customers use to evaluate service quality?

A)validity
B)empathy
C)assurance
D)reliability

Question 32

Clarksdale,Mississippi,is the home of the Shack-Up Inn,the only inn in the world that is made up of actual shotgun houses.(Shotgun houses contain two or three rooms in a row.A resident of the house is able to stand at the front door and shoot through all the rooms and out the back door without hitting any walls. )Obviously,the shacks are not luxurious although they do have indoor plumbing and electricity.The owner decided these were the only changes customers would want to be made in the shacks.In this instance,what is the service provider likely to have a gap between?

A)what the company tells the customer it provides and what is actually provided
B)service quality specifications and employee training
C)what customers want and what management thinks customers want
D)service expectations and what customers are told to expect

Question 33

TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home.
Refer to TeamBuilds.What is TeamBuilds an example of?

A)a service provider
B)an aggregated market
C)a market niche
D)a target market

Question 34

Many people would like to sell and buy on eBay,the most popular of the current Internet auction sites,but they have questions about the process and how to sell and price their merchandise.A company called Keen.com has set up a directory of specialists to whom you can address questions.When you choose a name and click on the "Call Now" button,the specialist is contacted and will personally call and answer your questions.
Refer to Keen.com Because you cannot evaluate its usefulness until after you have received and used the specialist's advice,what is a characteristic of this service?

A)reliability
B)experience quality
C)search quality
D)heterogeneous satisfaction

Question 35

The service offering of G&R Talent Agency is performers suitable for appearances on college and university campuses.This service is an example of which of the agency's services?

A)customized
B)supplementary
C)core
D)component

Question 36

Many people would like to sell and buy on eBay,the most popular of the current Internet auction sites,but they have questions about the process and how to sell and price their merchandise.A company called Keen.com has set up a directory of specialists to whom you can address questions.When you choose a name and click on the "Call Now" button,the specialist is contacted and will personally call and answer your questions.
Refer to Keen.com.Users can see the ratings given to each specialist by previous users before they contact that specialist.Which service component does Keen.com use to help its customers evaluate its service quality?

A)empathy
B)assurance
C)tangibles
D)flexibility

Question 37

The catalogue and online retailer Lands' End offers custom-fit chinos via the Web.For $54,customers can select their style and fit preferences,enter details about their body shape,and receive a pair of custom-made pants in their mailbox two to four weeks later.For Lands' End,this means the company avoids stocking up to 2.8 billion different styles and sizes of garments.Instead,Lands' End orders each unit to be individually fashioned by a contract manufacturer that ships directly to the consumer.What is Lands' End using?

A)mass customization
B)supplementary service
C)component service
D)customized service

Question 38

TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home.
Refer to TeamBuilds.Which category of service processing does TeamBuilds offer?

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

Question 39

Which of the following services is an example of mental stimulus processing?

A)taxi cab service
B)insurance
C)a professional tennis match
D)veterinarian care

Question 40

If a customer expects to wait one week for a pair of shoes to be mended but is told that the shoes are ready to be picked up less than 24 hours after leaving them at the repair shop,the customer's evaluation of service quality will be high.However,a two-week wait would result in a lower evaluation.Which type of gap would be illustrated by the two-week wait?

A)between the service customers receive and the service they want
B)between what the company provides and what the customer is told it provides
C)between what customers want and what management thinks customers want
D)between what management thinks customers want and the quality specifications management develops to provide

Question 41

Virtual Bellhop is a service provider that ships awkward sporting goods to vacation destinations so its customers do not have to worry about lugging them through airports or having them damaged in transit.
Refer to Virtual Bellhop.The care with which the items are packed and the condition of the package when it arrives indicate concern with which aspect of service quality?

A)tangibles
B)responsiveness
C)variability
D)homogeneity

Question 42

Which of the following is NOT an example of a type of service processing that can occur?

A)people processing
B)product processing
C)information processing
D)mental stimulus processing

Question 43

Budget airlines are a new service in China.Neither their passengers nor the airlines themselves know what to expect from each other.Shanghai-based Spring Airlines is a start-up service with a tight budget.
Refer to Budget Airlines.Spring Airlines' owner boasts that his ticket prices are 40 percent cheaper than the competition's,at times even equivalent to train prices.Which method for pricing services is Spring Airlines most likely using?

A)operations-oriented pricing
B)supply/demand pricing
C)capacity planning pricing
D)patronage-oriented pricing

Question 44

TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home.
Refer to TeamBuilds.What could be used to identify the problem if there were significant differences between what TeamBuilds says it provides to customers and what it actually provides?

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

Question 45

The catalogue and online retailer Lands' End offers custom-fit chinos via the Web.For $54,customers can select their style and fit preferences,enter details about their body shape,and receive a pair of custom-made pants in their mailbox two to four weeks later.For Lands' End,this means the company avoids stocking up to 2.8 billion different styles and sizes of garments.Instead,Lands' End orders each unit to be individually fashioned by a contract manufacturer that ships directly to the consumer.What is Lands' End using?

A)mass customization
B)supplementary service
C)component service
D)customized service

Question 46

An Internet company,icruise.com,sold cruises by offering a "Suntan Guarantee." The guarantee promised a full refund on a Caribbean cruise if more than one-quarter inch of rain fell from 10 a.m.to 4 p.m.for a preset number of days depending on the length of the cruise.
Refer to icruise.com.The core service offered by icruise is travel.The guarantee is which of the following type of service?

A)core
B)supplementary
C)standardized
D)additional

Question 47

TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home.
LaVergne had her makeup professionally applied for her prom night.She went to the beauty salon,watched as the makeup artist applied cosmetics to her face,and then went home feeling gorgeous.LaVergne's makeover illustrates which service characteristic?

A)intangibility
B)inseparability
C)heterogeneity
D)flexibility

Question 48

Budget airlines are a new service in China.Neither their passengers nor the airlines themselves know what to expect from each other.Shanghai-based Spring Airlines is a start-up service with a tight budget.
Refer to Budget Airlines.One of the major problems faced by these airlines is the tight regulatory controls the Chinese government maintains over them.The government determines which airlines get which routes,and the budget airlines do not get the most profitable business routes.For which type of strategies for budget airlines in that country does the Chinese government have a major voice?

A)distribution
B)promotion
C)production
D)product

Question 49

Virtual Bellhop is a service provider that ships awkward sporting goods to vacation destinations so its customers do not have to worry about lugging them through airports or having them damaged in transit.
Refer to Virtual Bellhop.During the summer months and December,the company is extremely busy packaging and shipping sporting gear.During other months that are not popular vacation months,it may have only one customer a day.This inconsistency of demand means Virtual Bellhop has to deal with the problems associated with which service characteristic?

A)intangibility
B)inseparability
C)perishability
D)simultaneous production and consumption

Question 50

Which of the following services is an example of information processing?

A)investment advice
B)a funeral service
C)pet neutering
D)the fitting of orthodontic braces

Question 51

The ability of each hotel guest to use his or her room's television to check out of the hotel room and to confirm additional charges on bills in the hotel's restaurants and gift shops is an example of which of the following?

A)mass customization
B)aggregated standardization
C)a market development strategy
D)mental stimulus processing

Question 52

An Internet company,icruise.com,sold cruises by offering a "Suntan Guarantee." The guarantee promised a full refund on a Caribbean cruise if more than one-quarter inch of rain fell from 10 a.m.to 4 p.m.for a preset number of days depending on the length of the cruise.
Refer to icruise.com.If it rained and the Internet company failed to honour its refund policy,which type of gap would exist?

A)between what management thinks customers want and the quality specifications that management develops to provide the service
B)between what the company tells the customer it provides and what is actually provided
C)between service quality specifications and employee training
D)between what customers want and what management thinks customers want

Question 53

Paramount Canada's Wonderland,an amusement park in Ontario,offers reduced rates on weekdays and higher prices for those who want to attend on weekends.It also offers lower prices for patrons who enter the park after 4 p.m.
Refer to Paramount Canada's Wonderland.This is a way to contend with which service characteristic?

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

Question 54

Budget airlines are a new service in China.Neither their passengers nor the airlines themselves know what to expect from each other.Shanghai-based Spring Airlines is a start-up service with a tight budget.
Refer to Budget Airlines.According to the owner of Spring Airlines,customer satisfaction levels are at 97 percent although many of Spring Airlines' employees have been throttled and had their clothes ripped off by unhappy passengers.When there is a gap between what customers want and what management thinks customers want,as in this case it is referred to as which of the following?

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

Question 55

Virtual Bellhop is a service provider that ships awkward sporting goods to vacation destinations so its customers do not have to worry about lugging them through airports or having them damaged in transit.
Refer to Virtual Bellhop.Thus far,its record for getting the sporting equipment to the correct destination for the vacationer is perfect.This indicates the company excels at which component of service quality?

A)empathy
B)reliability
C)flexibility
D)assurance

Question 56

Which of the following services is an example of mental stimulus processing?

A)taxi cab service
B)insurance
C)a professional tennis match
D)veterinarian care

Question 57

Budget airlines are a new service in China.Neither their passengers nor the airlines themselves know what to expect from each other.Shanghai-based Spring Airlines is a start-up service with a tight budget.
Refer to Budget Airlines.Which type of processing would Spring Airlines engage in?

A)people
B)possession
C)mental
D)information

Question 58

Paramount Canada's Wonderland,an amusement park in Ontario,offers reduced rates on weekdays and higher prices for those who want to attend on weekends.It also offers lower prices for patrons who enter the park after 4 p.m.
Refer to Paramount Canada's Wonderland.Because the park is focusing on coordinating supply and demand by varying prices,which type of pricing objective for service firms is it using?

A)revenue oriented
B)operations oriented
C)image focused
D)equity oriented

Question 59

Which strategy uses technology to deliver customized services on a mass basis?

A)mass standardization
B)aggregated services
C)mass customization
D)aggregated marketing

Question 60

The service offering of G&R Talent Agency is performers suitable for appearances on college and university campuses.This service is an example of which of the agency's services?

A)customized
B)supplementary
C)core
D)component

Question 61

What are the three categories of pricing objectives for services?

A)sales-,quality-,and location oriented
B)quality-,value-,and consumer oriented
C)revenue-,operations-,and patronage oriented
D)turnover-,volume-,and capacity oriented

Question 62

What type pricing objective for service firms focuses on maximizing the number of customers using a service?

A)revenue oriented
B)patronage oriented
C)profitability oriented
D)operations oriented

Question 63

TheKnot.com is an Internet company that is a one-stop source of all the items needed to have a successful wedding including listings of local caterers and photographers.When someone registers on the site,he or she is sent the "Ultimate Wedding Organizer." It offers advice on what to do about "cold feet" and how to handle in-laws.What does TheKnot.com recognize represents a portfolio of opportunities,risks,and challenges?

A)its component combination
B)its offering grouping
C)its service mix
D)its assembly process

Question 64

Boutique hotels are the perfect hotels for people who are tired of traditional cookie-cutter hotels that all look alike.One boutique hotel chain calls its staff its cast and has them wear fashionable solid black outfits.Its corridors are softly lit,and suite doors are arches lit with recessed blue lighting.Its lobby has a ceiling-to-floor water wall.What is the promotional strategy for this boutique hotel?

A)to create a strong organizational image
B)to separate the point of production from the point of service consumption
C)to emphasize postpurchase communication
D)to stress intangible cues

Question 65

One of the main responsibilities of sport marketers is to keep their loyal customers as heavy users and escalate lower-level users into loyal customers.Which type of marketing would be an effective tool for accomplishing this goal?

A)interactive
B)relationship
C)patronage
D)affiliation

Question 66

Marriott Hotels,as well as Hyatt Regency,has expended many resources in developing websites that allow prospective customers to learn all that is necessary before selecting a hotel destination.The sites then allow individuals to make reservations at the hotel that best satisfies their requirements.Which of the following reflects the distribution strategy used by these hotel chains?

A)considerations of the storage of the service
B)the development of a long channel of intermediaries
C)the decision to use direct distribution
D)the physical appearance of a particular outlet

Question 67

A continuing problem for most Minor League Baseball (MiLB)teams is low attendance.Event and venue sponsors want to see fans in the stadiums,and the players appreciate fan support.Given this information,which pricing strategy would you recommend MiLB teams use?

A)operations oriented
B)patronage oriented
C)supply oriented
D)revenue oriented

Question 68

What type of pricing objective focuses on maximizing the surplus of income over costs for service firms?

A)revenue oriented
B)operations oriented
C)market-share oriented
D)service oriented

Question 69

Which of the following is NOT a key factor in the distribution strategy for services?

A)customization
B)convenience for customers
C)scheduling of service deliveries
D)location

Question 70

Mountain Express is a company that provides grocery delivery service to several small communities.The company gives a 2 percent discount on all food orders to customers after they have used the service 10 times.An additional percentage discount is offered for each additional 15 orders up to a maximum of 8 percent.What is the relationship marketing strategy used by Mountain Express based on?

A)following service delivery paradigms
B)building social bonds
C)building financial bonds
D)opening personal communication channels

Question 71

You have just started a limousine service and strive for an image of quality and luxury.Your limos are always spotlessly clean on the inside,freshly waxed,and stocked with flowers,champagne,free car phones,and televisions.Your drivers are always immaculately dressed and are required to hold the door open for patrons entering and leaving the car.What is your promotional strategy stressing?

A)patronage-oriented objectives
B)tangible cues
C)prestige prompts
D)physiological prompts

Question 72

Because many services involve a process of continuous interaction between the service organization and the customer,which type of marketing is an important strategy?

A)interactive
B)relationship
C)patronage
D)affiliation

Question 73

A pest control company paints dead roaches on its trucks and uses similar graphics on its letterhead,business cards,and all promotions.Which type of promotion strategy is the pest control company using?

A)stressing tangible cues
B)stressing homogeneity
C)providing packaging cues
D)communicating service integration signals

Question 74

Satisfied customers are likely to engage in positive word-of-mouth communication,thereby helping to bring in new customers.Thus,what type of marketing is known as a method for attracting,developing,and retaining customers?

A)interactive
B)affiliation
C)patronage
D)relationship

Question 75

The level of relationship marketing that is LEAST likely to be effective in the long term because its advantage is easily imitated by other firms is based on which of the following?

A)personal communications
B)social bonds
C)pricing incentives
D)structural bonds

Question 76

A management consulting business stays in touch with its business customers with phone calls and greeting cards.It periodically sends out needs-assessment questionnaires and designs new services to meet the needs revealed in these surveys.What is this relationship marketing based on?

A)financial bonds
B)social bonds
C)service bonds
D)structural bonds

Question 77

Promotion strategies for dealing with the unique features of services include all but one of the following.

A)using personal sources of information
B)stressing tangible cues
C)using post-purchase communication
D)satisfying patronage-oriented objectives

Question 78

Unfortunately,many institutions of higher learning have focused efforts on population segments only when they felt a segment could do something for them.For example,many schools have bombarded high school students when they feel they are needed to fill classroom seats.Few have taken the approach of trying to determine what the potential student really wants or needs.Often,once graduated,a former student is thought of only as an alumnus or alumna,not as someone who can again benefit from the services provided by the institution.Which type of marketing would be useful?

A)relationship
B)patronage
C)nonprofit
D)affiliation

Question 79

Determining costs can be extremely difficult for a service provider that has adopted this type of pricing objective and may limit the usefulness of the objective.What is the pricing objective?

A)market share
B)revenue oriented
C)patronage oriented
D)breakeven

Question 80

The Royal Ontario Museum in Toronto offers discount ticket prices to students and senior citizens.Which type of pricing objective does this illustrate?

A)revenue oriented
B)operations oriented
C)profitability oriented
D)patronage oriented