Question 1

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

Accepted Answer

Other customers can impact the satisfaction of other consumers in service settings through long wait times, noisy or disruptive behavior, or taking up resources or attention from staff.

Question 2

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

Accepted Answer

Global economic change influences both service and product markets, not just service markets exclusively. Government policies, social changes, business trends, and advances in information technology specifically shape the dynamics and characteristics of service markets.

Question 3

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

Accepted Answer

These four categories classify services based on how they are delivered and consumed: People processing involves physical changes to the customer (e.g., haircuts), possession processing involves changes to physical possessions (e.g., car repair), mental stimulus processing involves intangible changes affecting the customer's mind (e.g., education), and information processing involves the manipulation of data or information for the customer (e.g., financial advice).

Question 4

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

Accepted Answer

This statement is not true. While some service jobs may not be highly paid, there are many service jobs that do require education and training, and may offer competitive salaries and benefits. Examples include healthcare professionals, IT support specialists, and skilled tradespeople. It is important to not generalize about the pay and education requirements of all service jobs.

Question 5

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

Accepted Answer

Businesses are increasingly outsourcing tasks to focus more on their core competencies and improve efficiency, leveraging external expertise for non-core activities.

Question 6

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

Accepted Answer

The three management functions that are central to meeting the needs of service customers are marketing, operations, and human resources. Marketing helps to identify and understand customer needs, operations ensures the delivery of quality service, and human resources ensures that employees have the necessary skills and knowledge to provide excellent service. Finance, accounting, and other functions are important, but they are not as directly related to meeting the needs of service customers.

Question 7

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

Accepted Answer

Mental-stimulus-processing can also be done remotely through digital channels such as online chat or video conferences, thus physical presence at the service factory is not always necessary.

Question 8

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

Accepted Answer

The four broad categories of service are people processing (e.g. healthcare), possession processing (e.g. car repair), mental stimulus processing (e.g. education), and information processing (e.g. banking). Involvement processing is not one of the four categories.

Question 9

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

Accepted Answer

In many cases, production and consumption can be separated in time and space, such as when a product is manufactured (produced) in one location and then shipped to another location to be consumed at a later time.

Question 10

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

Accepted Answer

This is a well-established fact about highly developed nations and their economies. Services, such as finance, healthcare, education, and hospitality, are typically the largest sector of the economy in these countries.

Question 11

Service employees should have which set of the following?

Accepted Answer

Service employees should have a positive attitude towards the customers, good interpersonal skills to interact with the customers, and technical skills to perform their job effectively. Having analytical skills may be an added advantage but it is not essential. Therefore, option D is the best choice as it includes all the essential skills required for service employees.

Question 12

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

Accepted Answer

The three additional Ps of services marketing are physical environment, process, and people. These are important factors to consider in services marketing because unlike physical products, services are intangible and require a different approach to marketing. The physical environment in which the service is provided can impact the customer experience and their perception of the service quality. The process of delivering the service and the interaction between the customer and service provider can also affect customer satisfaction. Finally, the people involved in delivering the service, including the employees and management, can impact the overall customer experience and service quality.

Question 13

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.

Accepted Answer

This statement is true. Most possession-processing services do not require much customer involvement beyond dropping off the item and picking it up later.

Question 14

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

Accepted Answer

Placing goods and services on a continuum from tangible-dominant (goods) to intangible-dominant (services) is a commonly accepted way to distinguish between the two. Goods are tangible, easily measured and can be stored, while services are intangible, harder to measure and cannot be stored. The other options listed do not adequately capture the distinction between goods and services.

Question 15

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

Accepted Answer

Most services cannot be inventoried, meaning they cannot be stored for later use. This leads to situations where if the service capacity is fully utilized or exceeded, additional customers cannot be served immediately and may have to wait or be turned away.

Question 16

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

Accepted Answer

Documenting performance, explaining what was done and why, and offering guarantees are all effective ways to reassure customers and alleviate any anxieties they may have.

Question 17

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

Accepted Answer

Firms' market offerings are typically divided into core product and supplementary service elements. The core product is the main product or service being offered, while the supplementary service elements are additional features or benefits that enhance the overall experience and appeal of the core product. This division allows firms to focus on providing a high-quality core product while also providing additional value to customers through supplementary services.

Question 18

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

Accepted Answer

For-profit firms seek to achieve financial profits subject to social constraints, meaning they prioritize making money while still adhering to laws and regulations as well as considering their social responsibility. Not-for-profit service suppliers seek to achieve social profits subject to financial constraints, meaning they prioritize their social goals while still operating within their financial limitations.

Question 19

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

Accepted Answer

The appearance of buildings, landscaping, vehicles, and uniforms can contribute to a customer's perception of service quality. A well-maintained and visually appealing environment can create a positive impression and suggest attention to detail and professionalism. Conversely, a shabby or unkempt appearance can suggest a lack of care or attention to detail, which can negatively impact perceived service quality.

Question 20

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

Accepted Answer

The correct acronym for the new North American classification system that includes services is NAICS (North American Industry Classification System). NAFTA is the North American Free Trade Agreement, NACS and NACSS are not valid acronyms related to this topic, and NEICE is not a recognized acronym at all.

Quiz 1: New Perspectives on Marketing in the Service Economy