Deck 15: Special Topic: Strategies for Service Markets

Question 1

Which of the following is a key difference between services and manufactured products?

A)Services do not exist until the customer buys them.
B)Delivered value is more for manufactured products.
C)Place and promotion are not significant in services marketing mix.
D)Services exist even before they are sold to customers.

Answer 1

A

Question 2

Which of the following is not a characteristic of services?

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

Answer 2

A

Question 3

Identify the statement that is true about services.

A)Services do not exist until they are sold to customers.
B)Image and perception are not critical in services marketing.
C)Services are not marketed on the basis of assumptions.
D)Services cannot exist without tangible benefits associated with them.

Answer 3

A

Question 4

Which of the following is not one of the three major types of attributes that are useful for understanding the differences between products and services?

A)search attributes
B)experience attributes
C)credence attributes
D)feature attributes

Question 5

The haircut you get in January is different from the haircut you get in June.Which characteristic of services best describes this event?

A)intangibility
B)tangibility
C)nonstandardization
D)inseparability

Question 6

Computed axial tomography services use a series of x-rays to make medical diagnosis.Which of the following characteristics of services is absent in this example?

A)nonstandardization
B)inseparability
C)intangibility
D)difficulty of inventorying

Question 7

Many services are performed by humans.As a result,they can vary from purchase occasion to occasion.This characteristic of services is referred to as:

A)inseparability.
B)intangibility.
C)nonstandardization.
D)difficulty of inventorying.

Question 8

The excitement of a classroom discussion varies with the preparation by both the instructor and student.If the students or the instructor are unprepared,the quality of the service is diminished.Which of the basic characteristics of services best describes this event?

A)intangibility
B)nonstandardization
C)inseparability
D)no physical attributes

Question 9

Which of the following products/services is high in search qualities?

A)jewelry
B)child care
C)television repair
D)legal services

Question 10

________ attributes are characteristics,the quality of which may not be determined even after consumption because the customer lacks the expertise to make an evaluation.

A)Credence
B)Experience
C)Solution
D)Search

Question 11

________ attributes are characteristics,the quality of which can be assessed only after purchase or during consumption.

A)Experience
B)Search
C)Credence
D)Solution

Question 12

Which of the following is an example of a services business?

A)airlines
B)FMCG
C)confectionaries
D)office furniture

Question 13

Which of the following products/services is high in experience qualities?

A)restaurant meals
B)medical diagnosis
C)legal services
D)auto repair

Question 14

A product is high in search attributes.This means that:

A)the quality of the product can be assessed before purchase.
B)the quality of the product can be assessed only after purchase.
C)only experts can assess the quality of the product.
D)the quality of the product cannot be assessed even after the purchase.

Question 15

________ attributes are characteristics,the quality of which can be assessed before purchase.

A)Search
B)Experience
C)Credence
D)Solution

Question 16

Which of the following types of attributes are typical of services?

A)search
B)experience
C)credence
D)feature

Question 17

Which of the following types of attributes are typical of manufactured products?

A)search
B)experience
C)credence
D)feature

Question 18

Search attributes:

A)are typical of manufactured products.
B)cannot be measured before purchase.
C)are normally high for service goods.
D)refers to attributes of intangible products.

Question 19

The reason for the existence of credence attributes is that:

A)customer lacks the expertise to make an evaluation.
B)the products are familiar to most of the customers.
C)the products are intangible and customers can only feel it.
D)customers are knowledgeable and concerned about the quality of the products.

Question 20

Which of the following is a product/service that is high in credence qualities?

A)medical diagnosis
B)clothing
C)vacation
D)automobiles

Question 21

Experienced quality of service is determined by:

A)an image the customer forms after the service encounter.
B)market communications and image of the company.
C)past experiences that the customer had with company.
D)word of mouth communication and customer needs.

Question 22

Which of the following is an example of a functional quality of a service?

A)friendliness of the operator
B)quality of haircut
C)efficiency of the machine
D)time taken by the machine

Question 23

Which of the following types of quality results from an image or perception the customer forms after the service encounter?

A)functional quality
B)experienced quality
C)technical quality
D)image quality

Question 24

Loss aversion refers to:

A)a stronger reaction to negative experiences.
B)customers' willingness to accept minor losses.
C)distortion of message when communicating with customers.
D)customers willingness to appreciate good service.

Question 25

Tangible dimension of services refers to:

A)physical evidence of the service.
B)a guarantee offered by service providers.
C)the people who provide service.
D)the technical services offered to the customer.
E)the functional services offered to the customer.

Question 26

Negative gaps in perceived service quality can be remedied by:

A)lowering customer expectations.
B)creating zero-value products.
C)increasing the price.
D)reducing the service quality.

Question 27

Which of the following best describes the high level of attention given to customers?

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

Question 28

________ are situations in which the expectations of service quality were higher than the realized quality.

A)Losses
B)Gains
C)Bargains
D)Attributions

Question 29

Which of the following dimensions refers to the ability to perform the service dependably and accurately?

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

Question 30

Assurance is the:

A)ability to perform the service dependably and accurately.
B)ability of the service provider to respond to the customers needs on a timely basis.
C)service provider's employees' knowledge and courtesy and the confidence they instill.
D)high level of attention given to customers.

Question 31

Quality of a service offering:

A)is dependent on customer perceptions.
B)can be measured using standardized techniques.
C)is more important than a manufactured product.
D)is not dependent on market communications.

Question 32

Which of the following best describes the well-known psychological phenomenon where customers talk more about negative experiences than positive experiences?

A)the chasm model
B)loss aversion
C)RATER model
D)SERVQUAL

Question 33

The service quality model suggests that:

A)quality of services is determined by customer perceptions.
B)standardized methodologies are needed to measure the quality of services.
C)service quality is costlier than manufactured products' quality.
D)there are numerous stages in the quality measurement of services.

Question 34

Which of the following is a disadvantage associated with positive gaps in perceived service quality?

A)customers' expectations adapt over time
B)results in short-term dissatisfaction
C)results in increased costs for the company
D)causes employee dissatisfaction

Question 35

________ quality is based on how the service is delivered or the quality of the actual interaction with the company.

A)Functional
B)Experienced
C)Technical
D)Image

Question 36

________ refers to the service provider's employees' knowledge and courtesy and the confidence they instill.

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

Question 37

When a positive gap exists,the service provider must:

A)try to match the expectations.
B)downsize the organization.
C)increase advertising expenditures.
D)continuously increase quality.

Question 38

In a shopping Web site,more negative comments are seen even though most of the customers are satisfied.Which of the following can be used to explain this situation?

A)loss aversion
B)RATER model
C)return on quality
D)SERVQUAL

Question 39

Which of the following is not one of the dimensions considered in the RATER model of service quality?

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

Question 40

________ is the ability of the service provider to respond to the customer's needs on a timely basis.

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

Question 41

Which of the following could be used to increase the tangibility of services and to facilitate prepurchase evaluation?

A)sampling
B)comparative advertisements
C)image advertising
D)print advertising

Question 42

In the services industry,marketing success often leads to success in the marketplace because:

A)there are often few objective measures to compare competitors.
B)there are often few other areas where company can spend.
C)the rivalry is limited in the service industry.
D)most of the services are sold without employing many salespeople.

Question 43

Nonstandardization of services increases when:

A)service creation is automated.
B)service is delivered from a unique location.
C)service delivery is outsourced.
D)customer contact time is minimal.

Question 44

Professional photographers can make the service tangible by:

A)showing samples.
B)increasing the price.
C)using high-quality cameras.
D)delaying the payment.

Question 45

A customer service person comes 3 hours late to service your computer.Which of the following gaps best describe this situation?

A)the gap between customers' expectations and management perceptions
B)the gap between management's perception and service quality specifications
C)the gap between service quality specifications and service delivery
D)the gap between service delivery and external communications

Question 46

A software company's management did not respond though they knew that computer software customers want quick response to phone calls.Identify the type of gap that has occurred here.

A)the gap between customers' expectations and management perceptions
B)the gap between management's perceptions and service quality specifications
C)the gap between service quality specifications and service delivery
D)the gap between service delivery and external communications

Question 47

Service quality is measured using:

A)engineering metrics.
B)survey instrument administered to customers.
C)physical metrices.
D)statistical tools.

Question 48

Which of the following is a characteristic of services?

A)low barriers to entry
B)high switching costs
C)low rivalry
D)reduced competition

Question 49

________ is one of the most popular approaches to measuring service quality.

A)Chasm model
B)SERVQUAL
C)Conjoint analysis
D)Perceptual mapping

Question 50

________ involves creating a flowchart that describes the flow of activity from the time the customer first contacts the service provider to the time the customer receives the service.

A)Conjoint analysis
B)Market analysis
C)Service blueprinting
D)Multi-dimensional scaling

Question 51

________ is a popular survey instrument that measures service quality by grouping questions into five categories of service quality.

A)SERVQUAL
B)RATER
C)CATI
D)Sampling frame

Question 52

"Backstage" contact points in a blueprint refer to:

A)contacts which are not face-to-face.
B)discrete contact points with the customer.
C)the contact points for suppliers.
D)contact points that are observable to customers.

Question 53

Return on quality approach:

A)is a targeted approach to quality investments.
B)advocate all quality expenditures are equally valid.
C)focuses on actual quality improvements than on the cost of quality.
D)does not monitor the overall progress.

Question 54

Sampling and other promotions to get customers to try the service at low cost or risk are intended to reduce the problem of:

A)intangibility.
B)barrier to entry.
C)logistics.
D)service design.

Question 55

Which of the following categories is particularly affected by low barriers to entry?

A)microchip processors
B)automobile manufacturers
C)professional services
D)oil drilling

Question 56

Which of the following statements is inconsistent with return on quality (ROQ)approach?

A)It is not possible to spend too much on quality.
B)Quality is an investment.
C)Quality improvement efforts must be financially accountable.
D)Not all quality expenditures are equally valid.

Question 57

________ is the product for service companies.

A)Inbound logistics
B)Operations
C)Marketing
D)Sales

Question 58

The flow of the service in a service blueprint begins when:

A)the customer interacts with the firm.
B)the provider accepts a service request.
C)the service in design is complete.
D)the service is delivered.

Question 59

In the case of services,________ focuses squarely on the quality of the employees.

A)inbound logistics
B)operations
C)marketing and sales
D)service

Question 60

Low barriers to entry would result in:

A)monopolistic markets.
B)customer loyalty.
C)employee turnover.
D)higher profits.

Question 61

Technical quality is dependent on how the service is delivered or the quality of the actual interaction with the company.

Question 62

Quality of a service should not be determined with reference to customer perceptions.

Question 63

Which of the following is a major disadvantage of company-owned service delivery centers?

A)increased financial risk
B)reduced customer satisfaction
C)potential damage to brand name
D)increased non-standardization of services

Question 64

Which of the following is a major disadvantage of using agents and brokers?

A)loss of control over the service delivery
B)lack of information about local markets
C)narrow distribution of products
D)reliable customer communication

Question 65

It is much more difficult to control quality for manufactured products than for services.

Question 66

A ________ is a contractual agreement between originator of the service concept and an individual or an organization that provides retail distribution of the service.

A)franchise
B)subsidiary
C)joint venture
D)branch

Question 67

Electronic channels are associated with:

A)high cost and narrow distribution.
B)high cost and difficulty in accessing.
C)low cost and ease of access.
D)low cost and narrow distribution.

Question 68

Which of the following is an advantage of franchising compared to company-owned service distribution?

A)reduced financial risk
B)increased control on customer experience
C)increased brand value
D)increased standardization of services

Question 69

Which of the following best describes reference price?

A)price offered by another player in the same market
B)price advertised for the product on mass media
C)an internal standard against which observed prices are compared
D)the lowest possible price for the service offered

Question 70

________ involves having customers visualize a concept of relationship by integrating two items in some mutual or reciprocal action.

A)Perceptual mapping
B)Market analysis
C)Interactive imagery
D)Conjoint analysis

Question 71

More than with physical goods,price is often used as an indicator of service quality.

Question 72

Which of the following is a major advantage of using agents and brokers?

A)Wider distribution of products is possible.
B)It is easy to have control over agents and brokers.
C)Brokers can be more trustworthy than franchises.
D)Agents and brokers are not well informed about the local markets.

Question 73

Manufactured products are low in search attributes.

Question 74

The growth strategy that allows the provision of a different class of service targeting a different market segment,at new or existing locations is referred to as:

A)multisegment.
B)multiservice.
C)multisite.
D)multiattribute.

Question 75

Production and consumption of services is inseparable.

Question 76

Credence attributes refers to the characteristics where the quality cannot be determined even after consumption.

Question 77

Which of the following distribution channels would deliver the most standardized services?

A)company-owned
B)franchisee
C)agents
D)brokers

Question 78

The growth strategy that allows the provision of a new service at existing locations is referred to as:

A)multiservice.
B)multisite.
C)multisegment.
D)multiattribute.

Question 79

The growth strategy that allows the provision of the same service in new locations is referred to as:

A)multisite.
B)multiservice.
C)multisegment.
D)multiattribute.

Question 80

Search attributes for a product is high if its quality can be assessed before purchase.