Deck 12: The Marketing of Services

Question 1

Which of the following is a correct statement regarding the inseparability aspect of a product?

A) Inseparable services can be inventoried.
B) Indirect channels of the promotion mix are more suitable to market services that are inseparable.
C) Inseparability has an implication on issues dealing with the selection of channels of distribution.
D) Inseparability occurs when goods and services are produced at one stage and marketed at another stage.

Answer 1

C

Question 2

In terms of uniformity, which of the following is a difference between services and goods?

A) Owing to customer non-participation, services are often linear, while goods are non-linear.
B) Services often involve a short-term, impersonal relationship between buyer and seller, while goods often involve a personal, long-term relationship.
C) Because of high involvement on the part of a buyer, services tend to be unique, while goods do not vary in quality.
D) Services can be inventoried uniformly, while goods face stockouts due to their heterogeneous nature.

Answer 2

C

Question 3

Which of the following is an activity performed by sellers and others that accompany the sale of a product and that aid in its exchange or its utilization?

A) Securing a bank loan
B) Offering a home security plan
C) Seeking a health insurance cover
D) Availing warranty on computer equipment

Answer 3

D

Question 4

Adrian is served an exotic meal while traveling on Valatia Airlines. Adrian is pleasantly surprised by the quality of the meal and is a very happy customer when he completes his flight that offers exquisite customer service. This is aided by the fact that he is offered a special rebate on his next flight with Valatia Airlines This is an example of a(n):

A) purely tangible service.
B) purely intangible service.
C) goods-service continuum.
D) inseparable service.

Question 5

Service products that are totally intangible:

A) do not involve customer participation in a significant way.
B) can be transported and stored.
C) are generally nonperishable.
D) are usually exchanged directly from producer to user.

Question 6

Which of the following is the most basic and obvious difference between goods and services?

A) Perishability
B) Intangibility
C) Reparability
D) Palpability

Question 7

Harry took a series of classes to learn how to play the clarinet and the saxophone from a music school that teaches the art at different levels to interested individuals. When he completed the course, he was given a certificate of completion to:

A) emphasize a relationship-marketing strategy.
B) serve as a tangible reminder of the course and to overcome the inseparability aspect of services.
C) make the course seem more homogenous with other learning experiences.
D) ensure that the supply chain was vertically integrated.

Question 8

Service products are often difficult to identify, since they:

A) can be sold in the sense of ownership transfer.
B) are bought and consumed at the same time.
C) are composed of tangible elements that cannot be easily transferred.
D) cannot be exchanged directly from producer to user.

Question 9

Which of the following is true of service products?

A) They come into existence at the same time they are bought and consumed.
B) They generally do not involve customer participation in a significant way.
C) They are composed of tangible elements that are separable.
D) They tend to have different titles and ownership transfers.

Question 10

Which of the following is true of inseparable services?

A) Inseparable services can be distributed only by third parties.
B) Service quality of inseparable services is completely standardized due to the ability to completely mechanize the service encounter.
C) Inseparable services cannot be produced and marketed simultaneously.
D) The main concern of a marketer of inseparable services is usually the creation of time and place utility.

Question 11

When a service is produced and marketed simultaneously, it is representative of the unique characteristic of a service that relates to its _____.

A) intangibility
B) perishability
C) inseparablility
D) uniformity

Question 12

In terms of perishability, which of the following is a difference between services and goods?

A) Services often can be separated from the person providing them, while goods cannot be usually sold by different people.
B) Services generally solicit minimal customer interaction, while goods involve significant levels of customer interaction.
C) Services can be used only at the time they are offered, while goods can be placed in an inventory.
D) Services can be stored and transported across geographical regions, while goods cannot be inventoried for use at another time.

Question 13

Which of the following explains the reason for the concentration on creation of time and place utility by service marketers?

A) Most services are often produced and marketed simultaneously.
B) The service encounter is distanced from the end benefit achieved.
C) Services cannot appeal to a buyer's sense of touch, taste, smell, sight, or hearing.
D) The buyer is guaranteed the ownership of the service that can be used later or given to others.

Question 14

Which of the following is a correct statement regarding the characteristic of inseparability of services?

A) Inseparable services cannot be produced and marketed simultaneously.
B) Direct sale is the only feasible channel of distribution for inseparable services.
C) When the buyer has a tangible representation of a service, the problem of inseparability occurs.
D) Inseparable services can be inventoried.

Question 15

Owing to his keen interest in cooking, Adam enrolled for a membership at the Delicacee Culinary Association. He was issued a membership card that contained details of the terms of the membership along with dates of validity and renewal. Adam was entitled to participate in the various programs organized by the association. Which of the following statements is true of the relationship between Adam and the institution?

A) The card would serve as a representation of Adam's preferred cuisines.
B) The card would give tangible proof that Adam had definitely learned the art of cooking.
C) Adam's membership card will get him a job as a chef in a reputable restaurant.
D) The card was tangible proof that Adam belonged to the culinary association.

Question 16

Which of the following is an example of a goods-service continuum?

A) Golf clubs
B) Air flight
C) Taxi rides
D) Suits with alterations

Question 17

Fiona uses her credit card to purchase groceries at the local supermarket. It can be said that every time she swipes her card at the supermarket with every purchase, she is availing a service that is produced by the manufacturer for her consumption. In which case, every instance of the card being used helps overcome the problem of _____.

A) inseparability
B) perishability
C) tangibility
D) fluctuation

Question 18

As opposed to services as a term, which of the following is a typical example of a service product?

A) Warranty on a laptop
B) An educational loan
C) Guarantee on a television
D) Giftwrapping supplies

Question 19

Depending on the type of service, the _____ factor may dictate use of direct channels because of the need for personal contact between a buyer and a seller.

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

Question 20

Which of the following refers to activities performed by sellers and others that accompany the sale of a product and that aid in its exchange or its utilization?

A) Service products
B) Raw material extractions
C) Services
D) Manufacturing activities

Question 21

Which of the following is an example of a client relationship?

A) Leasor-leasee
B) Telecaller-consumer
C) Salesperson-customer
D) Broker-investor

Question 22

Which of the following is an example of an off-peak pricing strategy?

A) An apparel brand charges prices containing odd numbers.
B) A computer manufacturer offers select software and games free of cost.
C) A music band sells its songs online by asking buyers to pay any desired amount for a given commodity.
D) A telecommunication company charges different tariffs at different times.

Question 23

Which of the following explains the reason why defining what constitutes good service quality is difficult?

A) Services are not labor intensive.
B) Services are examined objectively.
C) Service quality is measured against performance.
D) Service quality is measured against standards.

Question 24

Charging different prices during different times or days in order to stimulate demand during slow periods is called _____.

A) upscale pricing
B) off-peak pricing
C) every-day-low pricing
D) odd pricing

Question 25

_____ refers to the consistency and dependability of the service performance.

A) Responsiveness
B) Empathy
C) Reliability
D) Assurance

Question 26

Which of the following service qualities includes the willingness or readiness of employees or professionals to provide service?

A) Sympathy
B) Responsiveness
C) Empathy
D) Quality

Question 27

In a client relationship:

A) the relationships are typically not of an ongoing nature.
B) the buyer is typically an agent of a third party or association.
C) the buyer views the seller as someone who has knowledge that has value.
D) the seller abides by the advice offered by the buyer.

Question 28

Which of the following explains the reason why the quality of services can vary more than the quality of goods?

A) Unlike that of products, producers of services have procedures to prevent, identify, and correct defects.
B) Most services are human performances and often customized to the needs of the buyer.
C) Producers of goods typically customize products to the needs of the buyer.
D) Unlike services, customers are more likely to purchase defective products.

Question 29

Which of the following is true of a client relationship?

A) In a client relationship, a buyer views a seller as someone who has knowledge that is of value.
B) In a client relationship, a buyer does not abide by the advice offered or suggestions provided by a seller.
C) It usually cannot be of an ongoing nature.
D) High-quality service delivery by the professional leads to absolutely satisfied customers.

Question 30

Among the determinants of service quality, tangibles generally refer to:

A) non-perishable goods.
B) the physical evidence of the service.
C) the cyclical stability of the service.
D) demographic factors.

Question 31

Joshua is an electrician who is known for solving complex electrical issues consistently in households, automobiles, small commercial centers, and so on. He is punctual and customers can always reach him anytime of the day. Based on these characteristics, we can assume that Joshua's service quality is _____.

A) apathetic
B) tangible
C) reliable
D) palpable

Question 32

The airplanes used by FlyAir are painted a bright blue and a uniform white stripe runs along the length of the plane. Plush leather seating and gourmet food are part of the reason why FlyAir has been so successful in recent years. Based on these characteristics, the airplanes represent the _____ aspect of service quality.

A) impalpability
B) tangible
C) assurance
D) empathy

Question 33

A physician-patient relationship is categorized as a _____ relationship.

A) dealer
B) client
C) supplier
D) customer

Question 34

Early-bird offers and weekend discounts that are used to redistribute demand are typical examples of _____.

A) upscale pricing
B) off-peak pricing
C) every-day-low pricing
D) odd pricing

Question 35

Two major marketing challenges that professionals in client relationships face are:

A) fear or hostility and dissatisfied customers.
B) unfamiliar territory and lack of funds.
C) price discrimination and promotional pricing.
D) deceptive pricing and high demand.

Question 36

A customer perceives the level of service quality as being the function of the magnitude and direction of the gap between:

A) product design and product features.
B) traditional service marketing and integrated service marketing.
C) expected service and perceived service.
D) economies of scale and cost of production.

Question 37

Which of the following is true of service quality?

A) Service quality is often measured against standards.
B) Service quality is not labor intensive and typically uniform in nature.
C) Opinions on quality of services do not change in the face of choices.
D) Customers determine the value of service quality in relation to their particular needs.

Question 38

Zokoi Entertainment Ltd., an international multiplex corporation, charges different prices for movie tickets on different days. The tickets are priced relatively lower on week days and are more expensive on weekends as they expect more crowds during the weekends. This implies that the corporation uses an _____ pricing strategy.

A) upscale
B) off-peak
C) EDLP
D) odd

Question 39

As a determinant of service quality, reliability involves the:

A) consistency and dependability of the service performance.
B) physical evidence of the service.
C) levels of creativity of the services provided.
D) knowledge and competence of service providers and the ability to convey trust and confidence.

Question 40

Off-peak pricing is generally used to:

A) overcome problems associated with the homogeneity of services.
B) deal with the fluctuating demand for services.
C) create service perishability and fluctuating demand.
D) separate the service provider from a service.

Question 41

Carla, the owner of a retail meat store, visited the facilities of a meat-processing warehouse to assess the quality and service of the meat and related processes. When she expressed a desire to enter their cold storage, she was pleasantly surprised to be offered warm clothing, as the employees realized she would feel excessively cold in her formal wear. Also, the warehouse was willing to offer customized meat cuts as well. Which service quality determinant is prominent in this scenario?

A) Assurance
B) Tangibility
C) Responsiveness
D) Reliability

Question 42

Which of the following is true of customer satisfaction measurement?

A) Customer satisfaction measurement programs and questionnaires are designed by customers.
B) Customer satisfaction measurement is handled by top management and the marketing department of an organization.
C) Customer satisfaction measurement includes evaluation of company's satisfaction performance and excluded competitors' satisfaction performance.
D) Results of all research related to customer satisfaction measurement were made available to customers, but not necessarily to employees.

Question 43

Based on research on market leaders' customer satisfaction programs, which of the following is true of the various aspects of customer satisfaction measurement (CSM) of an organization?

A) There was a commitment to increasing service quality and customer satisfaction from employees at the top levels within the organization.
B) Top management was primarily responsible for designing CSM programs and questionnaires.
C) Results of all research related to customer measurement were made available to customers, but not necessarily to employees.
D) Evaluations related to customer measurement included both the company's and competitors' satisfaction performance.

Question 44

Which of the following refers to responsiveness?

A) The willingness or readiness of employees or professionals to provide service.
B) The consistency and dependability of the service performance.
C) The physical evidence of the service.
D) The knowledge and competence of service providers and the ability to convey trust and confidence.

Question 45

Which of the following determinants of service quality encompasses the provider's name and reputation; possession of necessary skills; and trustworthiness, believability, and honesty?

A) Sympathy
B) Responsiveness
C) Assurance
D) Empathy

Question 46

A bank offering a guarantee of same-day loan processing is a typical example of which of the following determinants of service quality?

A) Intangibility
B) Assurance
C) Sympathy
D) Empathy

Question 47

Which of the following refers to the knowledge and competence of service providers and the ability to convey trust and confidence?

A) Sympathy
B) Responsiveness
C) Empathy
D) Assurance

Question 48

Traditional service marketing differs from relationship service marketing in the sense that:

A) it approaches need satisfaction from the standpoint of the "part" rather than the "whole."
B) it assesses profitability based on the total relationship rather than on individual services.
C) its marketing activities focus on clients rather than merely attracting new customers.
D) its primary sales contact is through trained marketing professionals rather than process driven providers.

Question 49

Which of the following research methods was primarily used in the customer satisfaction measurement research?

A) Focus groups
B) Choice modeling
C) Fieldwork
D) Desk research

Question 50

Elaine decided to sign up for a particular instructor's violin class based on his reputation of being an excellent teacher, who guaranteed that his students would learn to play the violin in the three-month course he offered. Which of the following service qualities are represented in this scenario?

A) Assurance
B) Intangibility
C) Sympathy
D) Empathy

Question 51

Understanding the expectations and requirements of a customer and determining how well a company and its major competitors are succeeding in satisfying these expectations and requirements are the key issues of:

A) troubleshooting technique measurement.
B) interim customer management.
C) customer satisfaction measurement.
D) job satisfaction measurement.

Question 52

Lana bought a microwave oven from Empress Inc. When she reached home, she realized that there was a defect in the piece. Subsequently, she returned to the store and made a complaint to the sales manager. He noted the complaint and apologized for the inconvenience. He also assured her that he would replace her product at the earliest. Based on this evidence, it can be concluded that the sales manager possessed the service quality of _____.

A) empathy
B) tangibility
C) uniformity
D) responsiveness

Question 53

How would the owner of a restaurant measure the quality of service provided by his employees?

A) By conducting cost-benefit analysis
B) By creating a workflow analysis chart
C) By measuring customer satisfaction
D) By conducting superficial analysis

Question 54

_____ research can yield a wealth of strategic information about customers, the sponsoring company, and competitors.

A) Customer demographics
B) Customer satisfaction
C) Customer status
D) Customer profile

Question 55

Which of the following is an example of the service quality assurance?

A) A doctor is highly trained in a particular specialty.
B) Employees are always visible in a hotel lobby dusting or otherwise cleaning up.
C) A college professor who returns a student's call on the same day.
D) Flight attendants on a customer's regular route learn what type of beverages the customer drinks and what magazines the customer reads.

Question 56

Malcolm purchased health insurance from Healwell Insurance Corp. as he was guaranteed that he would be able to claim the expense incurred on his treatment in future. With this guarantee, the insurance corporation was able to win the trust and confidence of Malcolm primarily due to the firm's service quality of _____.

A) intangibility
B) assurance
C) profitability
D) apathy

Question 57

The employees of the WiseRumbles Library maintain a great relationship with their customers. They recommend new books and magazines to customers based on customers' tastes and preferences and the books previously borrowed by them. They keep track of customers' birthdays and anniversaries in order to send birthday cards and gift vouchers. This shows that employees at WiseRumbles Library are displaying _____.

A) assurance
B) intangibility
C) uniformity
D) empathy

Question 58

_____ refers to the service provider's efforts to understand a customer's needs and then to provide, as best as possible, individualized service delivery.

A) Assurance
B) Intangibility
C) Empathy
D) Quality

Question 59

Research on market leaders' CSMs found that:

A) customer satisfaction was incorporated into the strategic focus of the company via the articles of incorporation.
B) results of all research were always made available to customers.
C) research was not performed on a continual basis.
D) the human resource department was primarily responsible for designing CSM programs.

Question 60

When an employee at Fun Bay Resorts hears a customer complain, he or she is authorized to record the issue and take the necessary actions to resolve the issue. This strategic reaction to customer complaints shows Fun Bay Resorts' emphasis on _____ as a determinant of service quality.

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

Question 61

The continual process by which managers actively encourage, stimulate, and support employee commitment to the company, the company's goods and services, and the company's customers is known as:

A) customer satisfaction measurement.
B) customer relationship management.
C) internal marketing.
D) responsiveness marketing.

Question 62

Which of the following is a difference between customers and clients in the context of relationship marketing?

A) Customers have identities and names, while clients do not.
B) Customers have no strong reason to feel allegiance to a service provider, while clients often have a strong relationship with the service provider.
C) Customers are individual entities, while clients are reflected in market summaries as mere numbers and data entries.
D) Customers are served on an individual basis, while clients are mass target groups.

Question 63

TradeEx Incorporation, which deals with financial services, employs individuals and trains them intensively for a month. The training sessions include enhancing their knowledge of various financial services in the market, the changing trends of the stock market, and the fast-moving business environment. The employees are also trained on how to reach their sales targets. These steps taken by the firm in training new employees imply that the firm focuses on:

A) emphasizing on teaching employees to have good attitudes.
B) a careful selection process in hiring employees.
C) an energetic follow-through process.
D) significant modeling by managers.

Question 64

As opposed to clients, customers:

A) must have names.
B) are served by the first person available.
C) have a strong relationship with the service provider.
D) are served on an individual basis.

Question 65

Which of the following is an example of internal marketing conducted by a chain of dog kennels that boards and grooms pets?

A) A publicity article in the neighborhood newspaper describing the exclusive training received by the kennel's employees.
B) An e-mail to one of the employees praising him for finding and returning a customer's dog collar.
C) A newspaper advertisement showing a picture of happy dogs staying at the kennel.
D) A tour of the facilities available at the kennel targeted at elementary school children.

Question 66

Significant modeling by managers primarily requires them to perform the task of:

A) emphasizing on teaching employees to have a good attitude.
B) demonstrating the behavior that they intend to reward employees for performing.
C) defining the skills the service person must bring to the job.
D) adopting a careful selection process in hiring frontline employees.

Question 67

Which of the following critical components of internal marketing would typically help people who deliver service to know how their work fits in the broader scheme of business operations?

A) An emphasis on teaching employees to have good attitudes.
B) An energetic follow-through process.
C) A careful selection process in hiring frontline employees.
D) A clear, concrete message conveying a particular service strategy.

Question 68

Which of the following is a reason for the lack of innovative marketing on the part of service marketers?

A) Strong competition
B) No obsolescence
C) Broad view of marketing
D) Excessive creative management

Question 69

A trucking company that uses the slogan "Our people are our driving force," is recognizing the importance of its personnel in providing quality customer service and is practicing:

A) benchmarking.
B) assurance.
C) customer satisfaction measurement.
D) internal marketing.

Question 70

Which of the following is visible in an energetic follow-through process?

A) Managers providing training that focuses on specific social techniques, such as eye contact, smiling, tone of voice, and standards of dress
B) Managers providing training, support, and incentives necessary to give the employees the capability and willingness to provide quality service
C) Managers demonstrating the behavior that they intend to reward employees for performing
D) Managers clearly defining the skills a service person must bring to the job

Question 71

Training that teaches employees to have good attitudes focuses on:

A) specific social techniques, such as eye contact, smiling, and tone of voice.
B) incentives necessary to give the employees the capability and willingness to provide quality service.
C) demonstrating the behavior that managers intend to reward employees for performing.
D) clearly defining the skills the service person must bring to the job.

Question 72

Until the advent of satellite television, cable television providers acted as monopolies in their respective geographic areas and did little to change the type of service offered or the service offering in spite of increasing customer demands. Considering this, which of the following explains the reason behind the attitude exhibited by cable television providers?

A) Lack of strong competition
B) High degree of obsolescence
C) Absence of a growth strategy
D) Emphasis on service as an art

Question 73

The CEO of Jaquar Consultancy Corp. informs Amy's supervisor that she has performed extremely well in her last project. Amy's supervisor sends an e-mail to the entire team about the good review received from the CEO. Jaquar is known for its regular performance driven incentives that it awards to exceptionally performing employees. This implies that Jaquar Consultancy Corp. operates by implementing:

A) internal marketing.
B) empathy marketing.
C) customer profiling.
D) benchmarking.

Question 74

As opposed to customers, clients:

A) are considered to be mere statistics.
B) are served by the first person available.
C) have no strong reason to feel loyalty to the service provider.
D) are served on an individual basis.

Question 75

Which of the following critical components requires a management to clearly define the skills a service person must bring to the job?

A) Energetic follow-through process by the service person.
B) Significant modeling by managers on the service person.
C) Careful selection process in hiring frontline employees.
D) Emphasis on imbibing positive attitudes among employees.

Question 76

Grassmeadow Inc., a hospitality management firm, considered as many as thirty candidates for each housekeeping or front-desk position in its organization. It clearly defined the skills the service person must bring to the job as well. On which of the following critical components of internal marketing was Grassmeadow Inc. focusing?

A) An emphasis on teaching employees to have good attitudes.
B) A clear, concrete message conveying a particular service strategy.
C) A careful selection process in hiring frontline employees.
D) An energetic follow-through process.

Question 77

Sunset Hotels provides soft skills training to its employees by imparting lessons on basic communication skills, housekeeping techniques, body language, and basic standards of dressing. In this case, on which of the following critical components of internal marketing is Sunset Hotels focusing?

A) Significant modeling by managers
B) Careful selection process in hiring employees
C) Energetic follow-through process
D) Emphasis on teaching employees to have good attitudes

Question 78

After analyzing current trends in the market, Stage Cinemas, a multiplex, increased the number of movie screens to keep up with the increased demand and population growth. However, due to the superficial nature of its analysis, it failed to focus on the needs, tastes, and preferences of the public. This indicates that the firm had:

A) a lack of strong competition.
B) no obsolescence.
C) noncreative management.
D) a limited view of marketing.

Question 79

Leo Music Café regularly holds concerts that feature upcoming as well as well-acclaimed artists. The café is a big hub for music lovers. However, the café lacks the facility of online booking and only allows bookings at the venue. The manager of the café is reluctant to adopt newer technology. This implies that the management at Leo Music Café has:

A) a limited view of marketing.
B) no obsolescence.
C) adopted vertical integration.
D) a lack of strong competition.

Question 80

Which of the following is responsible for making the comprehension of service marketing difficult?

A) Lack of demand for services
B) Excessive marketing expertise
C) Factors of intangibility and inseparability
D) Obsolescence of services