Deck 12: Services Marketing

Question 1

The new sharing economy consists of all of the following except

A)outsourcing small jobs in a local neighborhood.
B)renting tools at Home Depot so users don't have to purchase them.
C)renting spaces in apartments, homes, and tree houses for short stays.
D)peer-to-peer ride-sharing.
E)performing services that provide users with an engaging, unique, authentic, personal, and memorable experience.

Answer 1

E

Question 2

To help consumers assess and compare services, marketers try to make them __________ or show the benefits of using the service.

A)intangible
B)consistent
C)tangible
D)timely
E)measurable

Answer 2

C

Question 3

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, more than 46 percent of the GDP comes from services.
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.

Answer 3

D

Question 4

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 5

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 6

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

Question 7

An American 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 8

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 9

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 10

The term services refers to

A)ideas that consist of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.
B)intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
C)philanthropic activities performed without expectations of monetary remuneration.
D)any intangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.
E)any tangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.

Question 11

Because services tend to be __________ rather than an object, they are much more difficult for consumers to evaluate.

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

Question 12

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 13

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 14

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 15

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 16

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 17

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 18

Services are a significant part of the U.S. economy, exceeding __________ percent of its gross domestic product.

A)15
B)25
C)35
D)46
E)55

Question 19

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 20

Which of the following is considered a service?

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

Question 21

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 22

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 23

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 24

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)continuum of the service
E)inconsistency

Question 25

Jason graduated from high 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. Jason 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 26

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 27

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 confronting 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 28

Developing, pricing, promoting, and delivering services is challenging because the quality of a service is often

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

Question 29

Organizations attempt to reduce the inconsistency of service delivery through

A)higher incentives to employees for satisfactory performance.
B)pay reductions and demotions for poor employee performance.
C)the reduction of customer contact points in the service delivery process.
D)standardization and training.
E)employing technology.

Question 30

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 31

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 32

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 33

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 34

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

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

Question 35

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 36

Developing, pricing, promoting, and delivering services is challenging because the quality of the service is often inconsistent. Organizations attempt to reduce this inconsistency 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 37

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 tasks. She is such a caring person and so well-liked that her customers recommend her instead of her business to people who are looking for someone to perform similar services. Their inability to see the distinction between Andrea and her 2 Places at 1 Time concierge service is an example of which unique characteristic of services?

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

Question 38

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 39

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 40

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 41

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 42

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 43

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 tasks. She has often been hired by major corporations to perform services for their harried executives, and now many of her major clients are providing perks like her service for their employees. Her staff is overworked and she will soon hire more employees to fill demand. Andrea is not currently experiencing __________; in fact, all of her employees and equipment are fully being used.

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

Question 44

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 45

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 46

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)increasing the hours worked per week.
E)using a commission compensation system.

Question 47

Why 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 handling.

Question 48

Southwest Airlines operates five flights daily between Chicago and Phoenix during the winter. One flight leaves Phoenix at 12:10 p.m. The plane, a Boeing 737, has a capacity of 120 passengers. During the past month, the flight has averaged 24 passengers, a load factor of only 20 percent. 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 49

Which service listed below has the lowest inventory carrying cost?

A)restaurant
B)automobile repair
C)amusement park
D)employment agency
E)animal hospital

Question 50

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 51

Many retailers hire additional sales help during the holiday season. This is an example of how service companies deal with

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

Question 52

With services, inventory carrying costs are more subjective and are related to

A)the minimum number of customers that a service provider can serve and still remain profitable.
B)the maximum number of customers that a service provider must serve.
C)overstaffing.
D)idle production capacity.
E)a situation that occurs when the primary demand for a service exceeds that number of service deliverers available to meet that demand.

Question 53

Which service listed below has the lowest inventory carrying cost?

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

Question 54

What does idle production capacity refer to?

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 potential profits of one service provider serving multiple clients at the same time

Question 55

Which service listed below has the highest inventory carrying cost?

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

Question 56

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 57

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)amusement parks
E)hospitals

Question 58

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 59

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 60

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 61

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

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

Question 62

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 63

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 64

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)pepper

Question 65

Services can be classified according to whether they are delivered by: (1) people or equipment, (2) for-profit or nonprofit organizations, or (3) __________.

A)government agencies
B)a national organization or a global organization
C)privately owned or publicly owned
D)performed by independent contractors
E)owned by individuals or corporations

Question 66

Services can be classified according to whether they are __________, for-profit or nonprofit organizations, or government agencies.

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 67

Services can be classified according to whether they are delivered by: (1) people or equipment, (2) __________, or (3) government agencies.

A)national or global
B)performed by independent contractors
C)privately owned or publicly owned
D)owned by individuals or corporations
E)for-profit or nonprofit organizations

Question 68

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

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

Question 69

Services can be classified by their method of delivery. Services that require actions, such as consulting, plumbing, and cleaning, represent

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

Question 70

The categories for equipment-based services include

A)unskilled labor, skilled labor, and professionals.
B)unskilled operators, skilled operators, and professional operators.
C)simple machines, technical equipment, and safety equipment.
D)those powered by unskilled labor, those operated by skilled operators, and those operated by professionals.
E)automated, those operated by relatively unskilled operators, and those operated by skilled operators.

Question 71

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.

Question 72

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

A)a lawyer
B)movie theaters
C)airlines
D)vending machines
E)taxis

Question 73

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 74

Services can be classified by their method of delivery. Services that require tangible assets, such as ATMs, taxis, and aircraft, represent

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

Question 75

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 76

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 77

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 78

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 79

What do a dry cleaning service, an automated car wash, and a taxi service 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 80

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