Deck 1: New Perspectives on Marketing in the Service Economy

Question 1

In most highly developed nations, services account for between two-thirds and three-fourths of the GDP.

Answer 1

True

Question 2

A useful way to distinguish between goods and services is to place them on a continuum from ____________ to ____________.

A) practical; impractical
B) tangible-dominant; intangible-dominant
C) low; high
D) reliable; unreliable
E) prepared; unprepared

Answer 2

B

Question 3

What are the three management functions that are central to meeting the needs of service customers?

A) Marketing, operations, and finance.
B) Marketing, operations, and human resources.
C) Marketing, finance, and accounting.
D) Marketing, finance, and operations.
E) Finance, accounting, and human resources.

Answer 3

B

Question 4

The three additional Ps of services marketing that extend the original four Ps of marketing are _____________, _____________, and _____________.

A) price; place; promotion
B) process; people; promotion
C) physical environment; process; people;
D) prosperity; process; promotion
E) physical environment; planning; process

Question 5

In most possession-processing services, the customer's involvement is usually limited to dropping off the item that needs treatment, requesting the service, explaining the problem, and returning later to pick up the item and pay the bill.

Question 6

Firms' market offerings are divided into ____________ and ____________ elements.

A) core product; supplementary service
B) marketing; management
C) product; delivery
D) service; delivery
E) planning; delivery

Question 7

Typically service jobs are not well-paid positions and require little education.

Question 8

Documenting performance, explaining what was done and why, and offering guarantees are additional ways to reassure customers and reduce anxiety.

Question 9

For-profit firms seek to achieve ____________ profits subject to ____________ constraints, although not-for-profit service suppliers seek to achieve ____________ profits subject to ____________ constraints.

A) social; financial; financial; social
B) social; financial; social; financial
C) financial; transactional; social; regulatory
D) financial; social; social; financial
E) transactional; social; limited; transactional

Question 10

Service employees should have which set of the following?

A) Positive attitude, technical skills, and analytical skills.
B) Positive attitude, leadership skills, and analytical skills.
C) Technical skills, leadership skills, and interpersonal skills.
D) Positive attitude, interpersonal skills, and technical skills.
E) Technical skills, leadership skills, and analytical skills.

Question 11

Other customers typically do not impact the satisfaction of other consumers in service settings.

Question 12

The acronym for the new North American classification system that includes services is ____________.

A) NAFTA
B) NAICS
C) NACS
D) NACSS
E) NEICE

Question 13

The appearance of buildings, landscaping, vehicles, and uniforms provide tangible evidence of a firm's service quality.

Question 14

Customers being turned away or having to wait is an implication of which aspect of services?

A) People may be a part of the service experience.
B) Intangible elements usually dominate value creation.
C) Services are often difficult to visualize and understand.
D) Customers may be involved in co-production.
E) Most services cannot be inventoried.

Question 15

People processing, possession processing, mental stimulus processing, and information processing make up the four broad categories of services.

Question 16

Businesses are outsourcing fewer tasks in order to focus on their core business.

Question 17

Service markets are shaped by all of the following except ____________.

A) government policies
B) social changes
C) global economic change
D) business trends
E) advances in information technology

Question 18

For mental-stimulus-processing, recipients must be physically present in the service factory.

Question 19

In all cases of possession processing, production and consumption can be described as inseparable.

Question 20

Which one of the following is NOT one of the four broad categories of service?

A) People processing
B) Possession processing
C) Mental stimulus processing
D) Information processing
E) Involvement processing

Question 21

Which of the following is the best example of a supplementary service?

A) Appliance maintenance
B) Hotel room rental
C) Fast food consumption
D) House cleaning
E) Landscaping

Question 22

Give an example of an industry where the Internet has transferred power from suppliers to customers.

Question 23

Give an example of how the Internet is changing the face of service industries.

Question 24

Rolls Royce introduced TotalCare® to do which of the following?

A) build brand equity
B) limit competitive entry into the spare engine parts business
C) co-produce engines with customers
D) innovate new engines
E) recover from service failures

Question 25

IBM is a good example of a firm that has shifted from manufacturing intensive operations to service intensive operations.

Question 26

What are the three vital roles of promotion and education?

Question 27

Less than 15 percent of service jobs around the world can currently be carried out remotely.

Question 28

Lexus dealers compete with ____________ for service sales.

A) Toyota dealers
B) Lexus manufacturers
C) BMW dealers
D) the best independent repair garages
E) all of the above

Question 29

What are the eight common differences between products and services?

Question 30

A movie theater seat is an example of _____________.

A) renting durable goods
B) closely engaging customers in the service process
C) renting portions of a larger physical entity
D) the centrality of time to services
E) differences in customer choice criteria

Question 31

Give an example of an industry where production and consumption are separable.

Question 32

Define services.

Question 33

Online educational programs offered by the University of Phoenix are an example of _____________.

A) revolutionary products/services
B) collective products/services
C) additional services
D) supplementary services
E) core products/services

Question 34

What are the five broad categories within the non-ownership framework?

Question 35

The best way to help customers visualize your service is to highlight credentials/experience and educate consumers to make good choices.

Question 36

A typical university is a simple service organization that offers mainly educational services.

Question 37

The Internet is transferring power from suppliers to customers, especially in consumer markets.

Question 38

How do operations and human resources functions contribute to meeting the needs of service customers?

Question 39

Provide an example of a service that lies at each end of the tangible-dominant to intangible-dominant spectrum.

Question 40

Give an example of a government policy that has stimulated the transformation of a service industry.

Question 41

Describe the possible differences in customer choice criteria between car rentals and outright purchases.

Question 42

Describe the seven Ps of service that would be involved in a banking service.

Question 43

Provide an example of a service industry where customers are involved in co-production and explain the implications and marketing-related tasks that would be associated with that service.

Question 44

Give an example of a service that offers labor and expertise rental.

Question 45

Give an example of a service that offers access to physical environments as a form of rental.