Deck 9: Managing Services for Business Markets

Question 1

Many business offerings are composed of a combination of product and service elements. From the following,choose the correct ordering,from tangible dominant to intangible dominant,of the items listed.

A)industrial grease,executive management seminars,convention hotel
B)executive management seminars,industrial grease,convention hotel
C)convention hotel,industrial grease,executive management seminars
D)convention hotel,executive management seminars,industrial grease
E)industrial grease,convention hotel,executive management seminars

Answer 1

E

Question 2

"Delivering on promises" relates to which of the following dimensions of service quality?

A)empathy
B)responsiveness
C)assurance
D)reliability
E)all of the above

Answer 2

D

Question 3

Service variability is a unique service characteristic. From the following list,choose the marketing implication most closely related to this characteristic.

A)buyer-seller interaction requiring that the service be done "right"
B)planning capacity on the basis of peak demand
C)emphasizing strict quality control standards
D)using pricing and promotion to even out demand peaks and valleys
E)None of the above applies specifically to service variability.

Answer 3

C

Question 4

When the business service marketer attempts to facilitate the customer's evaluation process,this is in response to:

A)the nonstandardized nature of services.
B)the simultaneous consumption and production of services.
C)perceived determinant attributes.
D)the difficulty in evaluating service quality.
E)an emphasis on equipment/facilities service attributes.

Question 5

The customer benefit concept refers to:

A)a detailed listing of which services will be provided.
B)guidelines for the delivery of the service product.
C)the core benefit that the customer will derive from the service.
D)the general benefits the service company will provide to the customer.
E)none of the above

Question 6

Development of the marketing mix is contingent upon the customer segment to be served. How do customer service segments differ from product market segments?

A)Service segments are often narrower than product segments.
B)Service segmentation focuses on what business buyers need versus on what they expect.
C)Service segments are often wider than product segments.
D)The demand patterns of each service segment are very similar.
E)none of the above

Question 7

Which of the following capabilities are particularly critical to the successful launch of hybrid service offerings:

A)Design-to-service capability.
B)an assessment of the impact of demand elasticity on price changes.
C)Production capacity evaluation.
D)Customer engagement in the design process.
E)the marketing of two or more services in a "package" for a special price.

Question 8

The ____ defines the general benefits the service company will provide in terms of the bundle of goods and services sold to the customer.

A)customer-benefit concept
B)service offer
C)cross-selling concept
D)mixed bundling concept
E)service concept

Question 9

The degree of tangible-intangible dominance of an industrial offering refers to the:

A)simultaneous production and consumption of the service.
B)variability in the quality of the service.
C)perishability of the offering.
D)non-ownership of the service purchased.
E)relative importance accorded,by the buyer,to tangible versus intangible elements.

Question 10

In the production and sale of industrial services,productive capacity is often a substitute for inventory. In other words,capacity will reflect the level of demand which the service provider can meet. This is primarily in response to which service characteristic?

A)perishability
B)lack of ownership
C)nonstandardized output
D)simultaneous production and consumption
E)the extent to which tangible elements dominate intangible elements

Question 11

In evaluating service quality,customers focus on:

A)empathy.
B)responsiveness.
C)assurance.
D)reliability.
E)all of the above

Question 12

Buyers of business services often experience difficulty in evaluating service quality. Since it is difficult to evaluate quality,

A)buyers tend to experience more perceived risk.
B)buyers rely on different prepurchase information sources to reduce risk.
C)symbology plays a more important role in the evaluation process.
D)all of the above
E)(a)and (b)only

Question 13

In evaluating the quality of a service,which of the following dimensions is most important to customers?

A)empathy
B)responsiveness
C)assurance
D)reliability
E)all of the above

Question 14

Concerning the nonstandardized nature of most industrial services,which of the following statements is incorrect?

A)The more labor-intensive the service,the less uniform will be the output.
B)As the extent to which equipment is utilized to produce the service increases,variability will increase.
C)As automation of the service decreases,uniformity of the output will also decrease.
D)It is important to develop systems to minimize human error.
E)It is often difficult for the user to judge service quality before the service is provided.

Question 15

From the following list,identify the item that is least likely to be considered a pure service.

A)market research
B)security and protection services
C)after-sales equipment repair and maintenance
D)insurance
E)consulting

Question 16

When the marketer emphasizes reductions in staff,overhead,and capital as potential benefits to the purchaser,this relates to the service characteristic of:

A)variability.
B)perishability.
C)simultaneous production and consumption.
D)intangibility.
E)lack of ownership.

Question 17

In the marketing of business services,items such as uniforms,logos,guarantees,written contracts,and color schemes are examples of:

A)determinant attributes.
B)the service concept.
C)the actual service offer.
D)physical evidence of the actual service.
E)the system used to create and deliver the service.

Question 18

Simultaneous production and consumption is a unique service characteristic. From the following list,choose the marketing implication most closely related to this characteristic.

A)planning capacity on the basis of peak demand
B)buyer-seller interaction requires that the service be done "right"
C)focusing promotion on the advantages of non-ownership
D)using pricing and promotion to even out demand peaks and valleys
E)developing systems that minimize deviations and human error

Question 19

The interaction of the individual service provider with the customer may be the key element in the firm's entire marketing strategy. This is an explicit recognition of which characteristic unique to business services?

A)simultaneous production and consumption
B)lack of ownership
C)nonstandardized output
D)inability to stockpile
E)the dominance of intangible elements

Question 20

In conceptualizing the service product,the service offer refers specifically to the:

A)actual creation and delivery of the service product.
B)detailed service elements that will make up the total services package.
C)general benefits the service company will provide to the customer.
D)benefits sought by customers.
E)overall process of assessing and responding to customer needs.

Question 21

Perishability is a unique service characteristic. From the following list,choose the marketing implication most closely related to this characteristic.

A)Need to use promotion and pricing to even out demand patterns.
B)Use physical cues in promotions to help customers evaluate service quality.
C)Emphasize strict quality control standards.
D)High-level training for service personnel.

Question 22

Which of the following statements regarding the perishability of services is incorrect?

A)Capacity is a substitute for inventory.
B)The demand for services is often predictable and consistent.
C)If capacity is set for peak demand, a service inventory must exist to supply the highest level of demand.
D)all of the above.
E)(a)and (c)only.

Question 23

The _____ is the product dimension of service,including decisions about the essential concept of the service,the range of services provided,and the quality and level of the service.

A)service strategy
B)service package
C)service recovery
D)service bundling
E)service loyalty

Question 24

_____ encompasses the procedures,policies,and processes a firm uses to resolve customer service problems promptly and efficiently.

A)A value network
B)Service recovery
C)Service quality
D)Service loyalty
E)Service offering

Question 25

Hybrid service offerings

A)May be a combination of services and products.
B)Have inelastic demand.
C)come from a well-managed new-service-development process.
D)All of the above.
E)Only a and c.

Question 26

Recent research shows that business-to-business service firms are more likely to emphasize:

A)relationship strategies as opposed to transactional strategies.
B)arms-length strategies.
C)the total buyer-seller process
D)all of the above.
E)(a)and (c)only.

Question 27

When Xerox offers a Total Satisfaction Guarantee that allows customers to return copiers for any reason,this is an example of:

A)word of mouth.
B)developing tangible clues.
C)service bundling.
D)none of the above.

Question 28

Non-ownership is a unique service characteristic. From the following list,choose the marketing implication most closely related to this characteristic.

A)Need to use promotion and pricing to even out demand patterns.
B)Need to emphasize the benefits of reduced labor and overhead.
C)Use strict quality control standards.
D)High-level training for service personnel.

Question 29

Which of the following are components of a firm's service offering and customer-linking processes that affect customer satisfaction?

A)Technical assistance and training.
B)Recovery process for fixing service problems.
C)Basic elements of the service offering expected by customers.
D)All of the above.
E)Only a and b.

Question 30

Differences between goods and services include:

A)intangibility.
B)variability.
C)profitability.
D)All of the above.
E)Only a and b.

Question 31

If a firm provides maintenance and repair services to its installed base of products at a customer location,then:

A)the service attributes can be evaluated before purchase.
B)the core service demand is inelastic.
C)product usage data can be systematically gathered and used to tailor service offerings that advance customers' goals.
D)all of the above.
E)(a)and (b)only.

Question 32

Benefits of solution-centered marketing strategy include:

A)new avenues for growth.
B)sustained differentiation and customer loyalty.
C)Both a and b.
D)Neither a or b.

Question 33

The service offer is linked with the service concept and also:

A)spells out in more detail the service offering.
B)when and to whom they will be provided.
C)how they will be presented.
D)All of the above.

Question 34

The concept of tangibility helps the manager to:

A)focus clearly on the firm's total market offering.
B)recognize that a change in one of the elements of the marketing offering may completely change the offering in the view of the customer.
C)determine how a service will marketed.
D)all of the above.
E)(a)and (b)only.

Question 35

Services are:

A)deeds.
B)processes.
C)performances.
D)all of the above.
E)(b)and (c)only.

Question 36

Research on new service success suggests that:

A)the determinants of success for new services closely resemble those found for successful new products.
B)a well managed service development process is crucial.
C)successful projects provide clear customer benefits.
D)all of the above.
E)(b)and (c)only.

Question 37

When a manager is in charge of intangible and heterogeneous services,he/she should develop marketing strategies that:

A)emphasize word-of-mouth communication.
B)provide tangible evidence.
C)employ value pricing.
D)all of the above.
E)(b)and (c)only.

Question 38

In following a "solutions" strategy" for B2B services,solution effectiveness can be enhanced by the supplier by

A)Laying out a blueprint to guide employees on creating a solution
B)Documenting the history of prior customer solution engagements
C)Developing complimentary incentives for all of the staff that may be involved
D)Only a and c
E)All of the above

Question 39

Service quality benefits should be linked to::

A)customer satisfaction.
B)customer retention.
C)profitability.
D)market share.
E)all of the above.

Question 40

Which of the following is NOT true of the solutions-centered approach instead of a product-centered approach?

A)Win by creating and delivering superior customer solutions.
B)Value is created by the firm.
C)Relationship with customer is interaction-based.
D)Quality focus on customer-firm interactions.
E)All of the above are true.

Question 41

Simultaneous production and consumption requires that the service be done "right."

Question 42

The service offer refers to the detailed service elements that will make up the total services package.

Question 43

A pure service,by definition,accompanies the sale of a physical product.

Question 44

Perishability of services may necessitate equating capacity with peak demand.

Question 45

In order to effectively use a solutions perspective,business marketers need to define their unique capabilities and determine how to use them to help customers reduce costs,increase responsiveness,or improve quality.

Question 46

For services,capacity is a substitute for inventory.

Question 47

Hybrid service offerings can be classified on the basis of whether the provider promises to perform a deed or to achieve a certain performance outcome.

Question 48

Product lifestyle services refer to services that facilitate the customer's access to a manufacturers product and ensure is functioning throughout the product's useful life..

Question 49

Research suggests that among the service quality dimensions,responsiveness is most important to customers.

Question 50

The actual performance by the service provider is of little relevance compared to the customer's perception of the service.

Question 51

In the marketing of business services,items such as logos,uniforms,guarantees,and color schemes are examples of physical evidence of the actual service.

Question 52

An emphasis on strict quality control standards is necessitated by service variability.

Question 53

The concept of tangibility helps the manager to focus clearly on the firm's total market offering.

Question 54

Reliability,responsiveness,and empathy are all dimensions of service quality.

Question 55

Planning capacity on the basis of peak demand is necessitated by service variability.

Question 56

Service quality encompasses the procedures,policies,and processes a firm uses to resolve customer service problems promptly and effectively.

Question 57

Business-to-business service firms are more likely to emphasize transactional strategies as opposed to relationship strategies.

Question 58

A solution-centered approach starts with the product and leads to a solution that satisfies customers.

Question 59

The more labor-intensive the service,the less uniform will be the output.

Question 60

Process delegation services (PDS)represent those services where a manufacturer performs specific processes on behalf of the customer.

Question 61

The first step in understanding a customer's experience is to develop a ____________________map.

Question 62

A large hospital in Chicago recently purchased four top-of-the-line,high-speed copiers from Xerox. The purchasing department carefully scrutinized the quality,price,warranties,and service features of several vendors before choosing Xerox. In the words of Jim Parker,the director of purchasing at the hospital,"it was the quality that gave Xerox the edge." Describe the role of service quality in this buyer-seller relationship. What factors may have been involved in shaping Jim Parker's perception of service quality?

Question 63

Research indicates that manufacturers typically earn a very high percentage of gross profits from the aftermarket,though it accounts for a very much smaller percent of revenue

Question 64

Many business marketers are turning from a product to a solutions perspective. How is the solutions perspective different from a product-centered perspective? What are the benefits of solution marketing? Illustrate the differences and benefits of solution marketing with an example using a business services marketer.

Question 65

Customer____________________represents teh internal and subjective response a business customer has to any direct or indirect contact with a company.

Question 66

Because business marketers cannot always provide flawless service,the response to service problems is critical to future success. Explain how an excellent service recovery process can lead to a differential advantage for firms. How does a business marketer figure out how much to spend on service recovery and service quality?

Question 67

Demand for services is rarely steady or predictable enough to avoid service perishability.

Question 68

Instances where the customer has direct contact with either the product or service itself or with representatives of it by a third party,such as a channel partner are known as____________________.

Question 69

Service____________________means that services cannot be stored or stockpiled;if they are not provided at the time they are available,the lost revenue cannot be recaptured.

Question 70

____________________combine products and services into innovative value propositions for customers .

Question 71

New product development is inherently more difficult,messier,and less successful in the service sector. What steps can be taken to enhance the effectiveness of the new service development process? What are the common features that successful new service projects seem to share?

Question 72

The development of marketing programs for both products and services can be approached from a common perspective,yet the relative importance of various strategic elements and the form of these strategic elements will differ between products and services. Explain.

Question 73

__________________________ is the manufacturer's capacity to integrate the product and service elements of the offering early in the development process to tap the full potential for revenue generation and/or cost reduction.

Question 74

Automatic Data Processing (ADP)was born through an innovation that created a new business niche-a foolproof outside service to help small businesses meet their weekly payrolls. First,position this service on a product-service continuum for which the basic underlying variable is tangibility. Second,describe how ADP's marketing strategy would be different from an office equipment manufacturer that called on the same small businesses.

Question 75

Treating customers as individuals exemplifies the____________________dimension of service quality.