Deck 10: Services and Nonprofit Organization Marketing

Question 1

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

A) an aerobics class
B) the removal of an appendix
C) a package delivery
D) a haircut

Answer 1

B

Question 2

Which of the following BEST describes the service sector?

A) It employs roughly 76 percent of the Canadian work force.
B) It is rarely capital intensive,as most services do not need high technology.
C) It tends to create fewer new jobs than the manufacturing industry.
D) It is decreasing in importance in Canada.

Answer 2

A

Question 3

When Avril and Laure went to eat dinner at the Bonaire Cafe,they discovered that there was an hour wait for restaurant seating.They decided to eat at another restaurant,and the Bonaire Cafe lost customers.The Bonaire Cafe has a limit to the number of people it can accommodate,so Avril and Laure's experience illustrates what?

A) the perishability of services
B) the heterogeneity of services
C) the inconsistency of services
D) the flexibility of services

Answer 3

A

Question 4

Services frequently use differential pricing in an attempt to synchronize supply and demand.Hotels frequented by business travellers often offer discounts for weekend bookings.Cinemas have lower prices for matinee shows.This is a way to contend with which service characteristic?

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

Question 5

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 provides ongoing 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) intangibility
B) heterogeneity
C) unfocused targeting
D) simultaneous production and consumption

Question 6

Ian Trent has an MBA and is being recruited by an investment banking firm as a sales representative.He has had 10 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) The extensiveness of distribution is unimportant when selling an investment service.
B) The cost inventory management system of reimbursing him may cause a problem when he makes investments.
C) The marketing program of investment strategies is inconsistent.
D) Services are intangible and,therefore,different from his previous experience.

Question 7

Cooking classes,massages,and pedicures are all services that are produced and consumed at the same time.All of these services exhibit which service characteristic?

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

Question 8

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

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

Question 9

There are fewer problems caused by which service characteristics when the service being purchased requires little interaction between the service personnel and the customer?

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

Question 10

Services cannot be stored,warehoused,or inventoried due to which of the following?

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

Question 11

A service cannot be touched,seen,tasted,heard,or felt in the same manner in which goods can be sensed and,therefore,is referred to as which of the following?

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

Question 12

What is 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) experience quality
C) credence quality
D) intangible attribute

Question 13

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

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

Question 14

A reading service for visually impaired people 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) heterogeneity
B) tangibility
C) flexibility
D) credence quality

Question 15

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

A) a tangible product
B) a profit intermediary
C) a service
D) a nonprofit organization

Question 16

Deidre Longo has just accepted a position with 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 that selling tickets to individuals will be different.What is one of the key differences she can expect to find?

A) A consumer will use experience qualities to evaluate the entertainment service.
B) The location of Longo's office is a key strategy criterion.
C) The customer will select and evaluate entertainment on the basis of search qualities.
D) Customers are engaged in this as a low-involvement product.

Question 17

Why is it is difficult to achieve consistency and standardization of services?

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

Question 18

Which of the following is a service component customers use to evaluate service quality?

A) validity
B) assurance
C) friendliness
D) refund ability

Question 19

Courtney's mother died of breast cancer,and she is afraid of getting cancer.When she went to get a baseline mammogram,she wanted a facility where the personnel would not think her fears were silly and would answer all of her questions.By which of the following components of service quality is Courtney most likely to rate the mammogram provider?

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

Question 20

Which characteristic cannot easily be assessed even after purchase since the customers do not have the knowledge or experience?

A) heterogeneity feature
B) perishable attribute
C) experience quality
D) credence quality

Question 21

Despite the large added expense,Rocky Mountain Financial Brokerage decided to install marble flooring and countertops as well as granite pillars at its corporate office.Rocky Mountain is concerned about its perceived quality against competitors and is dealing with this through which service component?

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

Question 22

Which of the following is a key factor in the distribution strategy for services?

A) customization
B) price
C) competitors
D) number of intermediaries and outlets

Question 23

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 with "cold feet" and how to handle in-laws.TheKnot.com recognizes that which of the following represents a portfolio of opportunities,risks,and challenges?

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

Question 24

Through its company promotion campaigns,General Motors has stressed that its dealerships employ only "certified GM mechanics and certified GM parts" for all vehicle repairs.GM understands that customers evaluate service quality through the deployment of which component?

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

Question 25

The service offering for G& R Talent Agency is performers suitable for appearances on college and university campuses.What is this service an example of?

A) the agency's supplementary service
B) the agency's standardized service
C) the agency's customized service
D) the agency's core service

Question 26

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.The two-week gap would illustrate a gap between which of the following?

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

Question 27

If a hospital that measured the service quality of its physician care in terms of the total number of people who were attended to-even if patients appeared to want more individualized care-what would the hospital be exhibiting a gap between?

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

Question 28

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

A) tangibility processing
B) people processing
C) product processing
D) warranty processing

Question 29

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

A) a theatrical performance
B) a stop-smoking clinic
C) dog boarding
D) an advertising agency

Question 30

Clarksdale,Ontario,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,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,the service provider is likely to have a gap between which of the following?

A) what management thinks customers want and the quality specifications that management develops to provide the service
B) service expectations and what customers are told to expect
C) what customers want and what management thinks customers want
D) service quality specifications and employee training

Question 31

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

A) insurance
B) veterinarian care
C) a professional tennis match
D) a haircut

Question 32

Which of the following statements about developing marketing mixes for services is true?

A) The tangibility and simultaneous production and consumption of services may require adjustments in marketing mix elements.
B) Elements of the marketing mix must be preserved for the unique characteristics of services.
C) The variability and perishability of services may require adjustments in marketing mix elements.
D) Marketing mixes for services are the same as those for products.

Question 33

Marriott Hotels,as well as Hyatt Regency and Adam's Mark Inns,have 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) the physical appearance of a particular outlet
B) intensity of distribution
C) the decision to use direct distribution
D) considerations of the storage of the service

Question 34

Tim Horton's stresses that its employees take pride in their company and display this pride through the wearing of clean,pressed company uniforms while on the job.Tim Horton's understands that customers evaluate service quality through the deployment of which component?

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

Question 35

At the dealer-owned Radio Shack,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.This is an example of a gap between which of the following?

A) the service customers receive and the service they want
B) what customers want and what management thinks customers want
C) the service quality specifications and the service that is actually provided
D) what management thinks customers want and the quality specifications management develops to provide the service

Question 36

After a customer has selected a book from Amazon.ca's website,other books with similar topics are suggested.What is Amazon.com using?

A) component service
B) mass customization
C) nonprofit marketing
D) customized service

Question 37

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

A) a cooperative service
B) aggregated standardization
C) a market development strategy
D) mass customization

Question 38

BMW Canada's company website (www.bmw.ca)allows consumers to "build [their] own car" on-line.What is this known as?

A) mass customization
B) a supplementary service
C) standardization
D) customization

Question 39

What is the strategy that uses technology to deliver customized services on a mass basis?

A) mass standardization
B) aggregated marketing
C) technological processing
D) mass customization

Question 40

Promotion strategies for dealing with the unique features of services include all of the following EXCEPT which one?

A) creating strong organizational images
B) using personal sources of information
C) satisfying patronage-oriented objectives
D) stressing tangible cues

Question 41

Hyatt Regency's Platinum Card Program allows members to bypass any line at the check-in desk and get immediate check-in service.In this example,what are developed by offering value-added services that are not readily available from other hotel chains?

A) personal communication channels
B) price incentives
C) structural bonds
D) social bonds

Question 42

What are the three categories of pricing objectives for services?

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

Question 43

You have just started a limousine service and have developed a strategy that stresses 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) tangible cues
B) patronage-oriented objectives
C) prestige prompts
D) physiological prompts

Question 44

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

A) stressing tangible cues
B) using personal information sources
C) stressing homogeneity
D) providing packaging cues

Question 45

Building value-added services into the delivery system that are not readily available from other firms defines relationship marketing based on the creation of which of the following?

A) social bonds
B) financial bonds
C) personal communication channels
D) structural bonds

Question 46

Determining costs may limit the usefulness of the objective and can be extremely difficult for a service provider that has adopted which pricing objective?

A) break-even
B) operations-oriented
C) patronage-oriented
D) revenue-oriented

Question 47

For service firms,what type of pricing objective focuses on maximizing the number of customers using a service?

A) profitability-oriented
B) maximization of demand
C) patronage-oriented
D) revenue-oriented

Question 48

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) pricing incentives
B) structural bonds
C) personal communications
D) service delivery heuristics

Question 49

Satisfied customers are likely to engage in positive word-of-mouth communication,thereby helping to bring in new customers.Thus,a means for attracting,developing,and retaining customer is known as which of the following?

A) relationship marketing
B) ambush marketing
C) patronage marketing
D) affiliation marketing

Question 50

Many businesses have discovered that the costs associated with attaining a new customer are many times that of retaining existing customers.Thus businesses realize that they can benefit directly from practising what type of marketing?

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

Question 51

When WestJet Airlines offers a dramatically reduced seat-sale price in the middle of February it is leveraging which pricing objective?

A) patronage-oriented pricing
B) benefit-oriented pricing
C) operations-oriented pricing
D) revenue-oriented pricing

Question 52

Hotels that cater to business travellers have more expensive rates during peak usage times (weekdays)and discount rates for slower times (weekends and holiday periods).Which pricing objective does this illustrate?

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

Question 53

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 example of relationship marketing based on?

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

Question 54

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 separate the point of production from the point of service consumption
B) to create a strong organizational image
C) to use personal information sources
D) to stress intangible cues

Question 55

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

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

Question 56

Mountain Express is a company that provides grocery delivery service to several small communities in British Columbia.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) creating structural bonds
B) following service delivery paradigms
C) building financial bonds
D) building social bonds

Question 57

Matching demand for theatre seats to the number of people wishing to see a movie can be attempted by raising prices at peak movie attendance times and decreasing them during times when attendance is typically low.Focusing on coordinating supply and demand by varying prices is what type of pricing objective for service firms?

A) patronage-oriented
B) equity-oriented
C) revenue-oriented
D) operations-oriented

Question 58

A focus on maximizing the surplus of income over costs is which type of pricing objective for service firms?

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

Question 59

Avril Lavigne has been picked as a spokesperson for T-Mobile wireless phone service.She was chosen because of her appeal to members of T-Mobile's target market.In terms of service promotion strategy,she will be considered what type of information source?

A) impersonal
B) cue control
C) personal
D) remote

Question 60

Winnipeg Transit bus service offers discount ticket prices to students and senior citizens.Which pricing objective does this illustrate?

A) service quality
B) operations-oriented
C) subsidized
D) patronage-oriented

Question 61

Why do nonprofit organizations face a unique challenge?

A) their target market is often the apathetic or strongly opposed individual
B) their target market is often the community where it is located
C) their target market is often the government
D) their target market is often the people who provide the funding

Question 62

Nonprofit organizations often refer to their target markets as clients,patients,or members.Nonprofit organizations charge fees,donations,tuition,etc. ,which are all examples of prices.The major difference between nonprofits and for-profits is the lack of a profit objective.
What is one of the consequences of Canadian Blood Services' nonprofit orientation?

A) The success of Canadian Blood Services cannot be measured in financial terms.
B) Canadian Blood Services' success is based on how much money is donated to it.
C) Canadian Blood Services will not make as much money as a profit-oriented firm.
D) Canadian Blood Services is not expected to be as efficient as a for-profit firm.

Question 63

Which of the following is an example of a nonprofit organization?

A) General Motors
B) Canadian Brokers Association
C) Canada Life,an insurance company
D) Canadian Humane Society

Question 64

Nonprofit organizations account for how much of all economic activity in Canada?

A) 1 percent
B) 60 percent
C) 40 percent
D) 20 percent

Question 65

Treating employees as customers and developing systems and benefits that satisfy their needs,such as training,stressing teamwork,and employee empowerment is known as what type of marketing?

A) relationship
B) job-satisfaction
C) internal
D) job-faceted

Question 66

What is the predominant form of nonprofit organization in Canada?

A) private-sector volunteer organizations
B) government
C) arts museums and programs
D) social service firms

Question 67

What is the major difference between the marketing orientation of Ford Motor Company and of Canadian Blood Services?

A) Canadian Blood Services does not have to be concerned with advertising or promotion.
B) Quantitative methods of market research can be used at Ford.
C) Ford has a target market.
D) The rewards of Canadian Blood Services are long-term social benefits.

Question 68

Which of the following includes marketing activities conducted by individuals and organizations to achieve some goal other than normal business goals,such as profit,market share,or return on investment?

A) social marketing
B) cause-related sponsorship
C) nonprofit organization marketing
D) service marketing

Question 69

Research studies have shown that replacing an employee in the service industry costs the equivalent of which of the following?

A) 6 months' pay
B) a year's pay
C) 1 1/2 year's pay
D) 3 months' pay

Question 70

Relationship marketing programs that are based on which of the following bonds have the strongest potential for sustaining long-term relationships with customers?

A) financial and patronage
B) financial and structural
C) financial,social,and structural
D) financial and individual

Question 71

Sierra Club and the Girl Guides of Canada are nonprofit organizations that want to develop marketing strategies to bring about mutually satisfying exchanges with their target markets as they work to protect our environment.What do both Sierra Club and the Girl Guides of Canada have?

A) a marketing orientation
B) the same organizational structure as profit-making firms
C) no need for marketing skills
D) no impact on nonbuyers

Question 72

According to the text,which of the following statements about the marketing activities of a nonprofit organization is true?

A) Nonprofit organizations express their objectives in terms of profit.
B) Nonprofit organizations do not charge a price.
C) Nonprofit organizations use the same terminology as for-profit companies when talking about their customers.
D) Nonprofit organizations often use undifferentiated segmentation strategies..

Question 73

Which of the following BEST describes a target market for a nonprofit organization?

A) It is best defined geographically,to include the area served.
B) It needs to be defined as the "community" in general in order to reach all potential targets.
C) It may include many apathetic or strongly opposed targets.
D) It is best defined as the potential donors because their funds will ensure the survival of the organization.

Question 74

The Ritz-Carlton hotel chain trains its employees carefully,instills in them a sense of pride,and motivates them by recognizing and rewarding outstanding customer service.What does it use?

A) patronage programming
B) internal marketing
C) service quality
D) relationship marketing

Question 75

Which of the following seeks to achieve some goal other than the usual business goals of profit,market share,or return on investment?

A) a nonprofit organization
B) a synergistic entity
C) a patronage-oriented organization
D) a company with no equity

Question 76

Canada's export of services passed what amount in 2007?

A) $70 million
B) $7 million
C) $70 billion
D) $7 billion

Question 77

Nonprofit organizations often refer to their target markets as clients,patients,or members.Nonprofit organizations charge fees,donations,tuition,etc. ,which are all examples of prices.The major difference between nonprofits and for-profits is the lack of a profit objective.
What is the first step in developing a marketing program for a nonprofit organization?

A) Determine the marketing mix.
B) Create a promotion to attract donors.
C) Establish the financial needs of the organization.
D) Define organizational objectives.

Question 78

Habitat for Humanity renovates vacant houses and sells them at no-interest mortgage rates to low-income home buyers.The organization relies on volunteers to provide the labour and funding for its renovations.Which of the following BEST describes Habitat for Humanity?

A) It is a for-profit organization.
B) It is a service branch.
C) It is an image-oriented organization.
D) It is a nonprofit organization.

Question 79

Which of the following refers to the efforts of public and private nonprofit firms to bring about mutually satisfying exchanges with their target markets?

A) social marketing
B) nonprofit organization marketing
C) public affairs marketing
D) social targeting

Question 80

Nonprofit organizations often refer to their target markets as clients,patients,or members.Nonprofit organizations charge fees,donations,tuition,etc. ,which are all examples of prices.The major difference between nonprofits and for-profits is the lack of a profit objective.
What would be an acceptable goal of the Metropolitan Area Transit Authority,a nonprofit organization,for its new bus and rail service?

A) increase awareness in its target market to 75 percent
B) set ridership volumes to provide a 12 percent ROI
C) increase expenses to fit budgetary allowances
D) gain a larger market share than the for-profit Trip Planner Bus Lines' routes in the area