Deck 9: Services and Other Intangibles: Marketing a Product That Isnt There

Question 1

Performance-based products that cannot be touched are referred to as ________.

A)intangibles
B)tangibles
C)value-exchanges
D)marketing non-specifics
E)non-products

Answer 1

D

Question 2

Service ________ means that customers cannot see,hear,or smell services.

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

Answer 2

C

Question 3

Online music download services such as iTunes allow consumers to listen to a short clip of recorded songs prior to selection and purchase to address the issue of ________.

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

Answer 3

C

Question 4

Online banking is one of the ways banks deal with potential problems related to the ________ characteristic of services.

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

Question 5

Which of the following product offerings would be most likely described as intangible?

A)A Billabong hoodie
B)A meal from a fast-food restaurant
C)A physical examination by a doctor
D)Refillable ink cartridges for a computer printer
E)Tropical fish for an aquarium

Question 6

Service ________ means that a firm cannot store its services.

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

Question 7

To reduce problems associated with the intangibility of the services offered by a restaurant,the restaurant owner can ________.

A)train employees to always serve customers from the right hand side
B)offer a service guarantee to ensure customers that food quality will be consistent
C)charge different prices for food purchased between 4 pm and 6 pm
D)provide clean tablecloths for each new customer
E)give employees the authority to handle a customer's complaint

Question 8

The ________ is the interaction between the customer and the service provider.

A)point of interchange
B)demand-supply exchange
C)staging area
D)service program
E)service encounter

Question 9

People most commonly buy the services of a tattoo artist on the weekends.To encourage people to use their services on weekdays,many tattoo artists adjust prices to influence demand.In other words,they use differing prices to lessen the problems related to the ________ characteristic of services.

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

Question 10

Brian stopped at a motel that had a vacancy.Upon entering the lobby,he saw two chairs patched with duct tape,a dusty plastic plant,an overflowing trashcan,and an employee watching soap operas on the in-lobby television.Brian decided not to check in.Which service characteristic could have benefited if the motel had a more inviting appearance?

A)Responsiveness
B)Homogeneity
C)Empathy
D)Intangibility
E)Reliability

Question 11

To minimise the potentially negative effects of bad service encounters and to save on labour costs,some service businesses are using ________ that eliminate the need for customers to interact with people.

A)transactional marketing
B)capacity management
C)supply management
D)service facilitation
E)self-service options

Question 12

________ are acts,efforts,or performances exchanged from producer to user without conferring ownership rights.

A)Services
B)Nationalisation assets
C)Tangibles
D)Expropriation assets
E)Customised assets

Question 13

________ is the process by which organisations adjust the supply of their services in an attempt to match demand.

A)Disintermediation
B)Warehouse facilitation
C)Inventory control
D)Capacity management
E)Just-in-time (JIT)inventory management

Question 14

Service ________ means that a service can only take place at the time the service provider performs it on either the customer or the customer's possessions.

A)responsiveness
B)variability
C)reliability
D)intangibility
E)inseparability

Question 15

Which of the following would be part of a marketing plan for a non-profit organisation?

A)Target markets
B)Objectives
C)Operating statements
D)SWOT analysis
E)All are part of a marketing plan.

Question 16

Capacity management is one of the ways to meet potential problems related to the ________ characteristic of services.

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

Question 17

Inseparability means it is impossible to separate the ________ and ________ of a haircut or oil change.

A)place; timing
B)production; perishability
C)production; consumption
D)consumption; tangibility
E)cost; benefit

Question 18

Four characteristics are used to differentiate services from goods.Which of the following is not one of those characteristics?

A)Inseparability
B)Responsiveness
C)Variability
D)Intangibility
E)Perishability

Question 19

Which of the following is an example of a service encounter?

A)You get a shoulder massage.
B)A mechanic tells you what's wrong with your car.
C)A nurse listens to your heart rate.
D)You check into a motel.
E)All of the above

Question 20

One of the ways physicians deal with potential problems associated with the ________ characteristic of services is to hang their medical diplomas on the walls of the examining rooms and to wear white coats.

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

Question 21

According to the goods/services continuum,which of the following is the best example of a pure good?

A)A massage
B)A textbook
C)A haircut
D)A class lecture
E)A muffler repair

Question 22

Which of the following is an example of an equipment-based service?

A)An amusement park
B)A massage
C)A religious service
D)A hand carwash
E)Maths tutoring

Question 23

One solution to the problem of variability is to institute ________ programs for continuous improvement of service quality.

A)SQM - service quality management
B)VQM - variable quality management
C)QM - quality management
D)SQM - selected quality management
E)TQM - total quality management

Question 24

Based on recent complaints about the amount of time it takes for front desk staff to check patrons into their hotel,the company has instituted a training program for employees and a free drink to patrons not checked in within 5 minutes.The training program will lessen the problems primarily related to the ________ characteristic of services.

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

Question 25

What are inseparability and variability? How would a travel agency counter the problems associated with these service dimensions?

Question 26

What aspects of a service are difficult to standardise? Provide a marketplace example.

Question 27

How are not-for-profit organisations making use of marketing concepts?

Question 28

Discuss the elements in the marketing mix for services.

Question 29

Randy Stuart rents storage space to college students who want to go home for the summer,but who do not want to haul all of their property home and then back.The business is profitable during the summer months,but when the storage space is unoccupied,he loses money.What characteristic of service is most likely the source of Stuart's problem?

A)Intangibility
B)Variability
C)Empathy
D)Responsiveness
E)Perishability

Question 30

Facility-based services must be concerned with operational,locational,and ________ factors.

A)functional
B)environmental
C)hierarchical
D)customer-driven
E)internal marketing

Question 31

According to the goods/services continuum,which of the following is the best example of a pure service provider?

A)A magazine publisher
B)A massage therapist
C)A building contractor
D)A paper manufacturer
E)A furniture retailer

Question 32

Service ________ refers to the inevitable differences in a service provider's performances from one day to the next.

A)variability
B)responsiveness
C)perishability
D)intangibility
E)empathy

Question 33

________,________ and physical facilities are added to the traditional marketing mix variables in an extended marketing mix for services.

A)Processes; price
B)People; place
C)Price; location
D)Promotion; people
E)People; processes

Question 34

Jack was so enthusiastic about the band he saw performing at a local club last weekend that he persuaded a large group of friends to go to the club to hear the band on Thursday.Unfortunately,the band's performance was uninspired and at times off key.The performance differences are due to the ________ characteristic of service.

A)responsiveness
B)variability
C)reliability
D)intangibility
E)empathy

Question 35

A ski field opens its mountain ski trails during the summer months for the recreational enjoyment of mountain bike riders.In doing this,how is the ski field implementing the marketing concept of capacity management? Explain your answer.

Question 36

What are intangibility and perishability? How would a package delivery service deal with the intangibility characteristic of services?

Question 37

If a performance of a symphony orchestra featuring world class musicians in a venue such as the Sydney Opera House with ticket prices ranging from $100-200 is considered a service,would a local band playing at a local pub for gold coin donations also be a service? Explain your answer.

Question 38

When marketing an experience instead of a tangible item,explain why there may only be one chance to successfully satisfy a customer.

Question 39

If you have ever had a great haircut and then the worst haircut the next time you visited the same stylist,you have experienced the ________ characteristic of services.

A)variability
B)reliability
C)intangibility
D)empathy
E)responsiveness

Question 40

Why might an organisation offer its customers self-service options? Provide a marketplace example.

Question 41

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

A)An automatic carwash
B)An X-ray lab
C)An online dating service
D)A museum
E)A movie theatre

Question 42

One of the ways Megan determined which day care centre to send her children was by visiting neighbouring ones and observing the indoor and outdoor play facilities,the cleanliness of the employees' uniforms,and how well infants were segregated from older children.She was evaluating the day care using ________ qualities before she let the day care look after her children.

A)operational
B)credence
C)experience
D)locational
E)search

Question 43

The actual physical facility where the service is performed,delivered and consumed is referred to as the ________.

A)service vocation
B)environmental aspect
C)core service
D)servicescape
E)augmentation service

Question 44

Experience qualities are product characteristics that customers can determine ________.

A)prior to and during consumption
B)only after consumption
C)only during consumption
D)during or after consumption
E)prior to consumption

Question 45

A hair salon that offers its customers espresso coffee and in-salon movies is offering a/n ________.

A)extra benefit
B)core service
C)unique service
D)augmented service
E)value-added service

Question 46

Compare and contract the three dimensions used by consumers to help them evaluate service quality.

Question 47

Many visitors to a local amusement park complain about long,slow-moving lines,and park employees letting their friends break in line.This equipment-based service provider is having trouble with ________ factors.

A)operational
B)cross-docking
C)educational
D)locational
E)functional

Question 48

The benefit that a consumer receives from the service is called the ________.

A)central service proposition
B)core service
C)unique service proposition
D)augmentation
E)All of the above

Question 49

Which of the following services will most likely be evaluated using credence qualities?

A)A cooking class
B)Surgery to repair a leaky heart valve
C)A movie
D)A stay at a resort
E)A haircut

Question 50

An attribute that may be difficult to evaluate even after it has been experienced is a/n ________.

A)gap analysis
B)search quality
C)service encounter
D)experience quality
E)credence quality

Question 51

When Angelina hired an interior designer to redecorate her living room,she was not sure she had made the right decision until she saw how gorgeous her newly decorated living room looked.Angelina used ________ qualities to evaluate the designer's services.

A)operational
B)credence
C)experience
D)locational
E)search

Question 52

A local cinema revamps its theatre to include reclining seats with retractable footrests and starts offering in-seat service for soft drinks and popcorn.They redo the cinema concession area,converting it into a combination café and wine bar.They have streamlined their in-cinema ticketing procedures and began offering online bookings and seat selection.The cinema is focusing on ________ factors.

A)environmental and operational
B)operational and functional
C)functional and location
D)educational and environmental
E)cross-docking and location

Question 53

Services with ________ require consumers to accept them on trust because they are often too complex to evaluate even after consumption.

A)experience qualities
B)credence qualities
C)gap analysis issues
D)search qualities
E)service encounter issues

Question 54

Services have both ________ and ________ dimensions.

A)social; physical
B)cost; value-laden
C)social; financial
D)physical; financial
E)psychological; preferential

Question 55

Barry was having stomach trouble and was sent to have an ultrasound performed on his abdomen.The technician performing the ultrasound told Barry he had gallstones.Because Barry could not recognise gallstones even as the technician pointed them out,Barry was left to evaluate the ultrasound on the basis of ________qualities.

A)operational
B)credence
C)experience
D)locational
E)search

Question 56

Customers can use service qualities,experience qualities,and ________ qualities to evaluate services.

A)functional
B)operational
C)multitasking
D)empowerment
E)credence

Question 57

Hillary wants to be an author.She has sent a manuscript she wrote to an agent who will critique the manuscript and tell Hillary if her work is marketable.Because Hillary does not know if her work is marketable,she has decided to accept whatever the agent says as true.She will use ________ qualities to evaluate the agent's critical opinion.

A)operational
B)credence
C)experience
D)locational
E)search

Question 58

Search qualities ________.

A)are characteristics of a product that the consumer can examine prior to purchase
B)can be built into a service so consumers can notice them
C)are characteristics of a service that consumers can touch
D)A and B
E)A,B,and C

Question 59

Briefly describe the three factors of concern to facility-driven or equipment-based services.

Question 60

Naomi is afraid to go to a dentist,but she has a really severe toothache.Her sister has recommended she go to Dr.Tompkins because he guarantees pain-free dentistry.Assuming Naomi visits Dr.Tompkins,the only way she can evaluate his dental techniques is through ________ qualities.

A)operational
B)credence
C)experience
D)locational
E)search

Question 61

Provide examples of core and augmented services for a dance studio.

Question 62

Customer dissatisfaction may occur due to ________.

A)unrealistic expectations
B)expectations influenced by stories people hear from friends
C)exaggerated customer expectations
D)B and C
E)A,B,and C

Question 63

Companies often develop written quality goals.This step was taken in an attempt to deal with any gap between ________.

A)consumer expectations and management perceptions
B)management perceptions and quality standards set by the firm
C)established quality standards and service delivery
D)service quality standards and consumer expectations
E)expected services and perceived services

Question 64

A bank closes one of its branch locations at midday to balance transactions because it is more efficient for the bank,even though it is not convenient for customers.This is an example of a gap between ________.

A)consumer expectations and management perceptions
B)management perceptions and quality standards set by the firm
C)established quality standards and service delivery
D)service quality standards and consumer expectations
E)expected services and perceived services

Question 65

A service firm communicating exactly what the customer can expect and what will happen if the company does not deliver on its promises will eliminate the gap between ________.

A)consumer expectations and management perceptions
B)management perceptions and quality standards set by the firm
C)established quality standards and service delivery
D)service quality standards and consumer expectations
E)expected services and perceived services

Question 66

Because services are inseparable,________.

A)it is difficult to make a prepurchase evaluation of quality
B)it is hard to predict consistency of quality
C)service businesses cannot offer a free trial
D)they are not produced until the time they are consumed
E)All of the above

Question 67

Service marketers ________.

A)can always predict consistency of quality
B)can always offer customers a free trial of the service
C)always aid customers in an opportunity for comparison-shopping
D)must identify ways of illustrating the benefits their service will provide to the customer
E)market the service the same as if it is a tangible item

Question 68

The bank management decided its customers would not mind if it only opened the drive-thru window on Saturdays and did not require other bank employees to work on weekends.Customers who work during the week could not apply for a loan on Saturday because that was not a service available at the drive-thru window.SERVQUAL would show this is an example of a gap between ________.

A)customer expectations and management perceptions
B)management perception and quality standards set by the firm
C)established quality standards and service delivery
D)service quality standards and consumer expectations
E)expected service and perceived service

Question 69

Managers should take note and create strategies to deal with the gap between ________.

A)consumer expectations and management perceptions
B)established quality standards and service delivery
C)service quality standards and consumer expectations
D)management perceptions and quality standards set by the firm
E)All of the above

Question 70

When communications accurately describe what service quality is provided and can be expected,and consumers are still less than satisfied with the service there is a gap between ________.

A)consumer expectations and management perceptions
B)management perceptions and quality standards set by the firm
C)established quality standards and service delivery
D)service quality standards and consumer expectations
E)expected services and perceived services

Question 71

The most important part of the service encounter is the service provider,not the customer.Discuss.

Question 72

Customers' experiences of a service are crucial to determining future patronage.Therefore service marketers feel that measuring positive and negative service experience is the ________ for the service industry.

A)Gold Standard
B)TQM
C)OSHA manual
D)ISO 14000 standard
E)most important management aspect

Question 73

________ is a measurement tool that gauges the difference between a customer's expectations of service quality and what actually occurred.

A)The 80/20 rule
B)SERVQUAL
C)A SWOT (Services with Optimal Tools)assessment
D)A market audit
E)Break-even analysis

Question 74

A business owner discussing their new restaurant talks about the importance of servicescape when designing both the interior and exterior of the building.Explain the servicescape and its importance in a service business.

Question 75

Sheraton Hotels & Resorts launched a program to improve service quality.All Sheraton employees were given a detailed written list of specific goals that must be accomplished in order to ensure customer satisfaction.Then all employees received training to show them exactly how the objectives were to be met.Sheraton is working to make sure a gap analysis does not show it has a gap between ________.

A)customer expectations and management perceptions
B)management perception and quality standards set by the firm
C)established quality standards and service delivery
D)service quality standards and consumer expectations
E)expected service and perceived service

Question 76

Which of the following dimensions are used by consumers to evaluate e-service quality?

A)Reliability
B)Fulfilment
C)Efficiency
D)Privacy
E)All of the above

Question 77

The difference between a customer's expectation of service quality and what actually occurs is referred to as a/n ________.

A)augmented service
B)servicescape
C)core service
D)gap
E)service encounter

Question 78

The ________ is a way to measure service quality.

A)SWOT analysis
B)market audit
C)critical incident technique
D)break-even analysis
E)OSHA manual

Question 79

When employees are not delivering customer service at the level specified by their employer there is a gap between ________.

A)consumer expectations and management perceptions
B)management perceptions and quality standards set by the firm
C)established quality standards and service delivery
D)service quality standards and consumer expectations
E)expected services and perceived services

Question 80

A company collects and closely analyses specific customer complaints in order to identify critical incidents - specific contacts between customers and service providers that are more likely to result in customer dissatisfaction.The company is using ________.

A)a SWOT analysis
B)a market audit
C)a break-even analysis
D)the critical incident technique
E)None of the above