Deck 13: Services Marketing

Question 1

Describe how nonprofit marketing differs from for-profit marketing.

Answer 1

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Nonprofit marketing refers to marketing activities that are conducted by individuals and organizations to achieve some goal other than ordinary business goals like profit, market share, or return on investment. Nonprofit marketing is divided into two categories: nonprofit-organization marketing and social marketing. Nonprofit organizations have greater opportunities for creativity than most for-profit business organizations, but trustees or board members of nonprofit organizations are likely to have difficulty judging the performance of the trained professionals they oversee. It is harder for administrators to evaluate the performance of professors or social workers than it is for sales managers to evaluate the performance of salespeople in a for-profit organization. Another way nonprofit marketing differs from for-profit marketing is that nonprofit marketing is sometimes quite controversial. Large national nonprofit organizations, such as Greenpeace, the National Rifle Association, and the National Organization for Women, allocate lobbying efforts in their budgets to inform Congress, the White House, and others of their interests and to gain their support. Some nonprofits must devote a large amount to lobbying because their mission is controversial or misunderstood by the general public.

Question 2

How does the marketing mix (product, price, distribution, and promotion) differ in nonprofit marketing?

Answer 2

In developing the product, nonprofit organizations usually deal with ideas and services. Problems may evolve when an organization fails to define what it provides. What product, for example, does the Peace Corps provide? Its services include vocational training, health services, nutritional assistance, and community development. It also markets the ideas of international cooperation and U.S. foreign policy ideals. The product of the Peace Corps is more difficult to define than the average business product.Distribution decisions in nonprofit organizations relate to how ideas and services will be made available to clients. If the product is an idea, selecting the right media to communicate the idea will facilitate distribution. By nature, services consist of assistance, convenience, and availability. Availability is therefore part of the total service. Developing a channel of distribution to coordinate and facilitate the flow of nonprofit products to clients is necessary, but in a nonprofit setting, marketers may need to revise the traditional concept of the marketing channel because the independent wholesalers available to a business enterprise do not exist in most nonprofit situations. Instead, a very short channel- nonprofit organization to client-is the norm because production and consumption of ideas and services are often simultaneous.Making promotional decisions may be the first sign that a nonprofit organization is performing marketing activities. Nonprofit organizations use advertising and publicity to communicate with clients and the public. Direct mail continues to be used for fundraising by many social service organizations, such as the Red Cross and Special Olympics. Though direct mail remains important, some organizations have reduced their volume of direct mail in favor of e-mails or other digital communications. Increasingly, nonprofits are using the Internet to reach fundraising and promotional goals through e-mail, websites, and software that permits online donations. In fact, 73 percent of nonprofits plan to increase their use of e-mail marketing, and 70 percent plan to increase their use of social media. These increases come as many organizations limit the use of print advertisements and direct mail.The different pricing concepts the nonprofit organization faces include pricing in user and donor markets. Two types of monetary pricing exist: fixed and variable. There may be a fixed fee for users, or the price may vary depending on the user's ability to pay. When a donation-seeking organization will accept a contribution of any size, it is using variable pricing. The broadest definition of price (valuation) must be used to develop nonprofit marketing strategies. Financial price, an exact dollar value, may or may not be charged for a nonprofit product. Economists recognize giving up alternatives as a cost. Opportunity cost is the value of the benefit given up by selecting one alternative over another. According to this traditional economic view of price, if a nonprofit organization persuades someone to donate time to a cause or to change his or her behavior, the alternatives given up are a cost to (or a price paid by) the individual. For other nonprofit organizations, financial price is an important part of the marketing mix. Nonprofit organizations today raise money by increasing the prices of their services or charging for previously free services.

Question 3

Service industries account for ____ of the gross domestic product of most developed nations.

A)more than half
B)a small portion
C)approximately 25 percent
D)nearly all
E)nearly three-quarters

Answer 3

E

Question 4

Which of the following is not a service product?

A)Justin Bieber concert
B)Flight on Southwest Airlines
C)A 100 percent service satisfaction guarantee
D)Overnight stay at Holiday Inn Express
E)Dry cleaning of a suit

Question 5

How does the promotion of services differ from the promotion of goods?

Question 6

Identify and discuss the four factors that affect the delivery of service quality. How can service marketers use these factors to their advantage?

Question 7

​Explain the role of "promises" and "trust" in the successful marketing of a service.

Question 8

Services are usually provided through ____ directed at people or objects.

A)tangible and intangible products
B)physical labor
C)the application of human or mechanical efforts
D)ideas and other intangible efforts
E)knowledge and technology

Question 9

How do the target markets of nonprofit organizations differ from the target markets of for-profit organizations?

Question 10

How can a service marketer smooth the fluctuations in demand from times of peak demand to times of off-peak demand?

Question 11

In general, differences between goods and services are determined by the

A)degree of labor intensiveness.
B)type of target market.
C)degree of tangibility.
D)type of provider.
E)degree of consumer contact.

Question 12

In what ways do perishability and intangibility affect the pricing of services?

Question 13

Discuss the importance of services in the U.S. economy, and explain the growth of services in our economy.

Question 14

What dimensions do customers use to evaluate service quality?

Question 15

What specific marketing problems are experienced by a provider of high-contact services that are not experienced by a provider of low-contact services?

Question 16

List and explain the six distinguishing characteristics of service products. Then discuss some of the marketing issues and problems associated with each characteristic.

Question 17

Which of the following countries was the world's first service economy?

A)England
B)United States
C)Sweden
D)Canada
E)Germany

Question 18

All services suffer from heterogeneity. Explain this problem, and discuss different ways that heterogeneity can occur in service delivery.

Question 19

Explain how the characteristics of services affect the development and management of marketing mixes.

Question 20

Any human or mechanical effort that adds value to a product is called

A)a service.
B)an intangible.
C)overhead.
D)customer service.
E)service marketing.

Question 21

Julianne is planning her upcoming wedding later this year. She has made a list of all the expenses which will be required for the wedding she has planned. Which of the following is not one of the service products associated with Julianne's wedding?

A)Delivery of the wedding cake
B)Hiring a limo and driver
C)Flowers for the church
D)Renting the reception hall
E)String quartet music

Question 22

According to your text, one perspective from which to view services is as a ____ targeted at a(n) ____.

A)sporting event; spectators
B)concert; audience
C)play; actors
D)performance; audience
E)presentation; spectators

Question 23

Kate, owner of K's Tanning Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty tanning beds from earlier in the week were available on this Saturday afternoon. Kate's problem deals with the ____ characteristic of services.

A)credence
B)heterogeneity
C)perishability
D)search
E)inseparability

Question 24

The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ____ of services.

A)heterogeneity
B)customer contact aspect
C)intangibility
D)inseparability
E)perishability

Question 25

The continuum of tangibility goes from ____ on one end to ____ on the other end.

A)service-dominant products; good-dominant products
B)pure products; pure services
C)rational products; irrational products
D)mostly service goods; mostly product goods
E)easy to see; not easy to see

Question 26

Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jason's difficulty in expanding his practice involves the aspect of service called

A)slotting.
B)perishability.
C)credence.
D)inseparability.
E)heterogeneity.

Question 27

Saresh owns the Change-ezz, a salon specializing in the unique hair needs of minority populations. Recently, Saresh has been trying to improve the quality of service received by his customers. However, he has experienced difficulty in finding ways to standardize and control the salon's quality of service. Saresh's problem illustrates which of the following unique features of service?

A)Intangibility
B)Inseparability
C)Perishability
D)Heterogeneity
E)Marketability

Question 28

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and

A)labor-intensiveness.
B)orientation toward value.
C)homogeneity.
D)heterogeneity.
E)specialization.

Question 29

Because practically all marketers provide some services, ____ typically do not exist in today's business environment.

A)pure goods
B)pure services
C)customer services
D)service products
E)tangible-dominant products

Question 30

What should marketers do to promote the consistency and reliability of their services most effectively?

A)Limit the number of employees in their organization
B)Train employees and develop standard procedures for dealing with customers
C)Encourage employees to be creative in solving customer issues and complaints
D)Perform as much of the service as possible before the customer arrives
E)Require employees to be shining, happy people all day long

Question 31

Lashawna is a concert promoter who works for singer Kanye West. She works very hard to make sure most of Kanye's concerts are sold out because she understands the concept of perishability, which means

A)because the concert is not tangible, customers will have a difficult time judging its quality in advance.
B)the production of the concert and the consumption of the concert by the fans cannot be separated so tickets must be sold.
C)a high level of interaction will exist between the customers and the musicians, which makes the customers' presence necessary.
D)that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again.
E)that each concert is different and customers will miss a unique experience if they are not present at the concert.

Question 32

The fact the services cannot be inventoried and then sold at a later date is called

A)intangibility.
B)heterogeneity.
C)inseparability.
D)perishability.
E)nonstorability.

Question 33

The intangibility aspect of a service means that

A)there is a lack of perceived quality compared to a tangible good.
B)unused capacity cannot be stockpiled or inventoried for later use.
C)consumers may have a problem evaluating service offerings.
D)services are not produced at the same time they are consumed.
E)services are not labor-intensive.

Question 34

Personal trainers cannot complete their work without their clients present because of the ____ feature of services.

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

Question 35

Which of the following services falls closest to the middle of the tangibility continuum?

A)College education
B)Dinner at the Olive Garden
C)A new Ford Escape
D)A custom built yacht
E)A trip to Brazil

Question 36

All of the following are elements of the inseparability characteristic of services except that

A)consumers are involved in production.
B)centralized mass production is difficult.
C)consumption and production are simultaneous.
D)many services cannot be performed without the customer being present.
E)services are easy to standardize and control.

Question 37

Because of a service's ____, standardization and quality are difficult to control.

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

Question 38

Zach has just opened Tri-State Partners and has the need for several business services from other companies. Which of the following is most likely to be considered a service product for Zach's business?

A)Housecleaning
B)Parking lot maintenance
C)Computer software
D)Coffeepot for employees
E)Uniforms

Question 39

Hair stylists find it challenging to standardize their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services?

A)Intangibility
B)Inseparability
C)Perishability
D)Heterogeneity
E)Homogeneity

Question 40

The more ____ involved with delivering a service, the greater the degree of heterogeneity.

A)mechanical efforts
B)phone contact
C)perishability
D)tangibility
E)human labor

Question 41

Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda's recommendation addresses which of the following service features?

A)Heterogeneity
B)Intangibility
C)Perishability
D)Inseparability
E)Homogeneity

Question 42

A first class airline ticket offers a ____ service of transportation as well as ____ services of drink and food service, special boarding rights, and extra customer service.

A)primary; secondary
B)core; supplementary
C)bundled; extra
D)complementary; main
E)major; minor

Question 43

If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ____ services.

A)core
B)supplementary
C)bundled
D)business
E)complimentary

Question 44

Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as

A)partnerships.
B)repeated customer contact.
C)inseparable clientele.
D)long-term customers.
E)client-based relationships.

Question 45

A service is usually offered as part of a bundled package of services with a core service and one or more ____ services.

A)basic
B)tangible
C)supplementary
D)auxiliary
E)other core

Question 46

Services delivered through machinery such as computer kiosks, ATMs, and vending machines can reduce the ____ that comes from increased contact with human employees.

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

Question 47

Client-based relationships are least likely to be developed by

A)appliance repairmen.
B)accountants.
C)beauticians.
D)orthodontists.
E)psychiatrists.

Question 48

The necessary interaction between service provider and customer that allows a service to be delivered is called

A)customer contact.
B)service exchange.
C)marketing.
D)relationship marketing.
E)service contact.

Question 49

Andrea has just opened a new service business called Paws n' Claws, which provides dog grooming and doggie day care. Andrea has done research about the role dogs play in today's culture, particularly for those people who do not have children. She knows that some of these people represent a target that is urban, professional, and who travel frequently. Andrea's business is likely to have a _____ and she will probably refer to the dog owners as ___.

A)high level of tangibility; customers
B)high level of inseparability; customers
C)high level of customer contact; clients
D)low level of perishability; customers
E)low level of intangibility; clients

Question 50

Which of the following is the best example of a high-contact service?

A)Appliance repair
B)Newspaper delivery
C)Dog training
D)Interior decorating
E)Plastic surgery

Question 51

Which of the following service characteristics results in variability of service quality yet provides the opportunity for customizing services to match the specific needs of individual customers?

A)Homogeneity
B)Perishability
C)Heterogeneity
D)Intangibility
E)Inseparability

Question 52

Client-based relationships are most likely to be developed by

A)funeral directors.
B)electricians.
C)installers.
D)doctors.
E)brick layers.

Question 53

H&R Block, a major tax preparation firm, reported having a problem with its employees being inconsistent in the filing of returns. The firm is experiencing a problem with which of the following characteristics of the service offering?

A)Tangibility
B)Intangibility
C)Perishability
D)Inseparability
E)Heterogeneity

Question 54

Troy is a service provider for a low-contact type of service. Which of the services below is Troy most likely to provide?

A)Childcare
B)Website design
C)Health care
D)Auto detailing
E)Personal trainer

Question 55

Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of

A)perishability.
B)heterogeneity.
C)inseparability.
D)intangibility.
E)customer contact.

Question 56

The main characteristic of a ____ is that customers are satisfied to the point that they use a service repeatedly over a period of time.

A)service relationship
B)professional marketer
C)high-contact service
D)heterogeneous service
E)client-based relationship

Question 57

The heterogeneity characteristic of services provides marketers with tremendous opportunity to

A)customize their services to meet unique individual needs.
B)hold down the cost of providing services to customers.
C)create standardized packages that will appeal to many customers.
D)offer the same service as all of their competitors.
E)develop relationship marketing with their customers.

Question 58

Which of the following statements about customer contact in services marketing is false?

A)Service employees are important in creating satisfied customers.
B)High-contact services are less expensive to deliver because they are typically equipment-based.
C)The main principle of customer contact is that satisfied employees lead to satisfied customers.
D)Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact services.
E)Employee training programs are an effective way to ensure good customer contact and reduce problems.

Question 59

When service companies change high-contact services into low-contact services, the

A)service becomes more expensive to deliver.
B)quality of the service declines.
C)service becomes less personalized.
D)time required to deliver the service increases.
E)service becomes less standardized.

Question 60

​Carlos is speaking to his brother about the interaction he had today with one of his clients. Since he is referring to his customer as a client, Carlos is most likely a(n)___.

A)Funeral director
B)House painter​
C)Masseur
D)Dry cleaner
E)Auto repairman

Question 61

Some services are time sensitive, meaning that a significant number of customers desire the service around the same time. This point in time is called

A)peak demand.
B)preferred demand.
C)off-peak demand.
D)high-contact time.
E)high intensity time.

Question 62

Symbols such as the Travelers' Financial Services umbrella are designed to help customers overcome the ____ of services.

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

Question 63

Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even unlimited night and weekend minutes. This is an example of

A)time-based pricing.
B)off-peak demand.
C)demand-based pricing.
D)time dependence pricing.
E)bundled costing.

Question 64

Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ____ aspect of services.

A)heterogeneity
B)perishability
C)customer contact
D)intangibility
E)inseparability

Question 65

Tutors, attorneys, and consultants are most likely to price their services based on ____, while auto repair, hair stylists, and house painters are likely to price their services based on ___.

A)functions performed; time
B)time; functions performed
C)objectives accomplished; time
D)demand; objectives accomplished
E)time; demand-based pricing.

Question 66

By installing automated check-in kiosks in some airports, airlines have increased production capacity and reduced the number of personnel. This results in a decrease in

A)perishability.
B)intangibility.
C)customer contact.
D)inseparability.
E)customer service.

Question 67

Demand-based pricing most closely relates to the ____ of services.

A)perishability
B)intangibility
C)heterogeneity
D)customer contact aspect
E)inseparability

Question 68

Flo, the spokesperson in Progressive Insurance TV commercials, is used to symbolize friendliness, reliability, and knowledge of the company's products. The part Flo plays in the promotion is designed to address the ____ characteristic of services.

A)intangibility
B)perishability
C)heterogeneity
D)inseparability
E)customer service

Question 69

One way service businesses communicate a higher level of service quality to their customers is by having their employees be clean, sharp looking, and dressed in appropriate uniforms. This is a way to address the ____ characteristic of services.

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

Question 70

Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on

A)news stories.
B)a webpage.
C)word of mouth.
D)newspaper ads.
E)television ads.

Question 71

Production and consumption of services must simultaneously occur due to the ____ characteristic of services.

A)intangibility
B)heterogeneity
C)customer contact
D)perishability
E)inseparability

Question 72

A sign in a doctor's office waiting room says "Please be courteous of the others waiting with you." The doctor's office is trying to positively influence the ____ aspect of services.

A)tangibility
B)perishability
C)inseparability
D)customer contact
E)heterogeneity

Question 73

When a theater entices customers to see movies during the daytime by offering tickets at a reduced price, it is trying to solve the services marketing problem of

A)inseparability.
B)intangibility.
C)customer contact.
D)off-peak demand.
E)heterogeneity.

Question 74

The marketing channels for services are usually

A)complex and multifaceted.
B)characterized by two to three intermediaries.
C)dependent on the geographical location of the consumer.
D)determined by the customer.
E)direct from provider to customer.

Question 75

In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to

A)deliver on these promises and risk financial losses and the success of the company.
B)promise less than they can actually deliver and keep customers away.
C)make the appearance of their facilities consistent with their promises to customers.
D)promise too much and cause customer expectations beyond what they can deliver.
E)make the quality of their services too tangible in the eyes of the customer.

Question 76

What are the three primary ways that marketers deliver services?

A)Over the phone, online, or in-person
B)Continuously, periodically, or on demand
C)At the customer's home, in-person, or by telecommunications
D)Through service centers, delivery vehicles, or the mail
E)Service facilities, customer's home, or from a distance

Question 77

Prudential Insurance uses "the rock" symbol to communicate stability and security to customers. This is Prudential's attempt to help customers better understand its services by

A)emphasizing tangible cues in promoting the service.
B)using word association.
C)personalizing the selling of the service.
D)utilizing publicity techniques to enhance the service.
E)distributing the service directly through television.

Question 78

Any service provider that offers time-sensitive services receives most of its revenue during

A)peak demand.
B)heavy use time.
C)the off-season.
D)preferred demand.
E)customer contact time.

Question 79

Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and

A)distribution.
B)tangible elements.
C)management expectations.
D)price.
E)customer expectations.

Question 80

An US Airways flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty US Airways flight from Chicago to Phoenix. This is an example of what kind of service pricing?

A)Bundled
B)Demand-based
C)Supply-based
D)Upfront
E)Customer-based