Deck 11: Services and Nonprofit Organization Marketing

Question 1

Kohl's department stores offers its corporate employees flexible work hours,work-at-home programs,on-site childcare,and travel benefits that reward quality performance.Kohl's approach illustrates relationship marketing in action.

Answer 1

False

Question 2

Variability of services means the quality of a service may not be tangible.

Answer 2

False

Question 3

Even though the growth of the service sector worldwide has been sluggish in the past decade,the service sector now accounts for approximately one-fourth of the gross national product in the United States.

Answer 3

False

Question 4

Service firms may adopt patronage-oriented pricing to try to maximize the surplus of income over costs.

Question 5

Liesel is designing a promotional strategy for a company that provides cleaning services for buildings that have been vandalized.Her promotions should use personal information sources and stress the tangible cues associated with the service.

Question 6

Insurance companies are examples of service organizations.

Question 7

The only type of service processing required for comedian entertaining at a local club is information processing.

Question 8

The only marketing mix component nonprofit organizations do not use is price.

Question 9

The speed with which an ambulance can get to an accident site is an indication of the reliability dimension of service.

Question 10

Convenience is not usually a factor when selecting a service provider as it is when selecting a product retailer.

Question 11

Many nonprofit organizations market services that elicit either very low involvement or very high involvement.

Question 12

Often hotels will offer deep discounts on weekends and during the off-season for the same reason airlines will adopt a similar pricing strategy during off-peak hours.These services cannot be stored,warehoused,or inventoried because they are perishable.

Question 13

The gap model of service quality shows how customers can be trained to respond more appropriately to the service being offered.

Question 14

Jorge Linez,owner of Shadetree Muffler Shop,must be physically present when he works on a car.The need for his presence as the service is performed is an example of the intangibility of services.

Question 15

Nonprofit organization marketing accounts for more than one-fifth of all the economic activity in the United States.

Question 16

Nonprofit organizations are unique because their target markets are often disinterested,apathetic,or outright opposed to the products or services provided by these organizations.

Question 17

U.S.service firms such as financial institutions,construction,engineering,insurance,and leisure will have a difficult time expanding to global markets because competing foreign firms possess many competitive advantages.

Question 18

Services are consider intangible because most services cannot be felt or touched in the same way most goods can be sensed.

Question 19

Like any business,nonprofit organizations measure their success or failure in strictly financial terms.

Question 20

Virtual Bellhop is a company that ships your skiing equipment and your golf clubs to a vacation site so they are there when you arrive and you don't have to carry them through the airport.There is no way this company could institute relationship marketing.

Question 21

Advertisements that promote programs,activities,or services of nonprofit organizations are called PSAs (public service advertisements)if there is no charge to the sponsor of the message.

Question 22

TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home.Participants in the teambuilding exercises would use a(n)_____ quality to evaluate TeamBuilds.

A) credence
B) search
C) information
D) appraisal
E) experience

Question 23

Aristide and Oana are considering attending a clinic to help them quit smoking.They will be better able to assess the _____ of the clinic after they attended the clinic and learned about the techniques it uses to help customers quit smoking.

A) tangible attribute
B) experience quality
C) creative quality
D) credence quality
E) heterogeneity feature

Question 24

Consumers in many nonprofit situations pay prices not in money,as they pay for most goods,but in other ways such as time or opportunity costs.

Question 25

The service sector:

A) has remained steadily at 44 million jobs in the United States for the last twenty years
B) employs roughly 80 percent of the U.S.work force
C) is rarely capital intensive,as most services do not need high technology
D) is decreasing in importance in the United States
E) tends to create fewer new jobs than the manufacturing industry

Question 26

Baltimore's Chesapeake Habitat for Humanity (CHH)renovates vacant houses and sells them at no-interest mortgage rates to low-income home buyers.To pay some of the costs of the renovation supplies,CHH has established a for-profit company called TeamBuilds,where corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovation.TeamBuilds is an example of a(n):

A) service provider
B) possession processor
C) aggregated market
D) market niche
E) target market

Question 27

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

A) a hair cut
B) a car repair
C) the removal of an appendicitis
D) an aerobics class
E) a package delivery

Question 28

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

A) Reliability
B) Experience quality
C) Search quality
D) Temporal quality
E) Heterogeneous satisfaction

Question 29

Max used to sell office furniture and supplies,but he now has semi-retired and started a cleaning service specializing in cleaning fire- and water-damaged structures.Selling cleaning services differs greatly from selling office furniture and supplies because a cleaning service is so:

A) homogeneous
B) unknowable
C) tangible
D) synergistic
E) comestible

Question 30

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) intangibility
B) inseparability
C) heterogeneity
D) perishability
E) flexibility

Question 31

A(n)_____ is a characteristic that can be easily assessed prior to purchase,such as the softness of a mattress or the color of curtains.

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

Question 32

Many people would like to sell and buy on eBay,the most popular of the current Internet auction sites,but they have questions about the process and how to sell and price their merchandise.A company called Keen.com has set up a directory of specialists to whom you can ask questions.When you choose a name and click on the "Call Now" button,the specialist is contacted and will personally call and answer your questions.Keen.com charges a per-minute fee to the person who contacts its specialist.Keen.com would be classified as a:

A) good
B) tangible resource
C) tangible product
D) service
E) non-profit organization

Question 33

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

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

Question 34

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:

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

Question 35

A(n)_____ is the result of applying human or mechanical efforts to people or objects.

A) application processor
B) profit intermediary
C) tangible product
D) service
E) non-profit organization

Question 36

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 theaters.She believed she understood why theater 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) The customer will select and evaluate entertainment on the basis of search qualities.
B) Customers are engaged in this as a low-involvement product.
C) A consumer will use experience qualities to evaluate the entertainment service.
D) The use of the service will involve standardized service levels and not exhibit heterogeneity problems.
E) The location of Longo's office is a key strategy criterion.

Question 37

A(n)_____ is a characteristic that 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) search quality
E) credence quality

Question 38

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 limited the number of people it can accommodate,so Avril and Laure's experiences illustrates the _______ of services.

A) variability
B) inconsistency
C) perishability
D) flexibility
E) heterogeneity

Question 39

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

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

Question 40

Both for-profit services and nonprofit organizations have characteristics that suggest their channels of distribution should be direct.

Question 41

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

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

Question 42

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

A) standardized preparation procedures
B) mechanizing the process
C) standardization
D) providing tangible cues
E) training of employees in performance standards

Question 43

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

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

Question 44

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

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

Question 45

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

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

Question 46

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

A) The variability and perishability of services may require adjustments in marketing mix elements.
B) Marketing mixes for services are often different than those for products.
C) Elements of the marketing mix must be adjusted for the unique characteristics of services.
D) The intangibility and simultaneous production and consumption of services may require adjustments in marketing mix elements.
E) All of the above statements about developing marketing mixes are true.

Question 47

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 continued training for each employee in the company's operations,objectives,and expected performance standards.What unique aspect of services is Caputo attempting to address?

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

Question 48

There are fewer problems caused by the service characteristic of _____ when the service being purchased requires little interaction between the service personnel and the customer.

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

Question 49

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

A) tangibility
B) credence quality
C) heterogeneity
D) simultaneous production and consumption
E) flexibility

Question 50

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 -- the hospital would be exhibiting a gap between:

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

Question 51

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

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

Question 52

Due to service _____,services cannot be stored,warehoused,or inventoried.

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

Question 53

Clarksdale,Mississippi,is the home of the Shack Up Inn,the only inn in the world that is made up of actual shotgun houses.(Shotgun houses contain two or three rooms in a row.A resident of the house is able to stand at the front door,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:

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

Question 54

It is difficult to achieve consistency and standardization of services because of which service characteristic?

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

Question 55

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

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

Question 56

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:

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

Question 57

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 who would answer all of her questions without making her feel stupid for asking them.By which of the following components of service quality is Courtney most likely to rate the mammogram provider?

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

Question 58

TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home.The _____ would be an influence if there were a significant difference between what TeamBuilds says it provides to customers and what it actually provides.

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

Question 59

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

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

Question 60

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:

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

Question 61

Boutique hotels are the perfect hotels for people who are tired of traditional cookies 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.The promotional strategy for this boutique hotel is to:

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

Question 62

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 its _____ represents a portfolio of opportunities,risks,and challenges.

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

Question 63

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:

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

Question 64

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

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

Question 65

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

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

Question 66

_____ is the strategy that uses technology to deliver customized services on a mass basis.

A) Mass standardization
B) Aggregated services
C) Technological processing
D) Mass customization
E) Aggregated marketing

Question 67

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

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

Question 68

A focus on maximizing the surplus of income over costs is a(n)_____ pricing objective for service firms.

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

Question 69

After a customer has selected a book from Amazon.com's Web site,other books with similar topics are suggested.Amazon.com is using:

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

Question 70

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) stressing homogeneity
C) using personal information sources
D) providing packaging cues
E) communicating service integration signals

Question 71

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

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

Question 72

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

A) customization
B) convenience for customers
C) number of intermediaries and outlets
D) scheduling of service deliveries
E) location

Question 73

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

A) possession-processing
B) information processing
C) mental-stimulus processing
D) tangible processing
E) homogeneous processing

Question 74

The three categories of pricing objectives for services are:

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

Question 75

Matching demand for theater 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 a(n)_____ pricing objective for service firms.

A) revenue-oriented
B) operations-oriented
C) image-focused
D) patronage-oriented
E) equity-oriented

Question 76

Promotion strategies for dealing with the unique features of services include all of the following EXCEPT:

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

Question 77

Marriott Hotels,as well as Hyatt Regency and Adam's Mark Inns,have expended many resources in developing Web sites 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 satisfy their requirements.Which of the following reflects the distribution strategy used by these hotel chains?

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

Question 78

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.Your promotional strategy is stressing:

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

Question 79

Catherine Zeta-Jones 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 a(n)_____ information source.

A) cue control
B) nonsource-controlled
C) impersonal
D) remote
E) personal

Question 80

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

A) primary
B) core
C) niche
D) supplementary
E) foundation