Question 1

Which company is a pure service firm?

Accepted Answer

Royal Bank of Canada is a pure service firm as it primarily provides financial services without manufacturing or selling physical products.

Question 2

How would you generally classify consumer goods such as milk, bread, and soft drinks?

Accepted Answer

Milk, bread, and soft drinks are considered convenience products because they are items that consumers purchase frequently, immediately, and with minimal effort.

Question 3

What type of product is marketed to consumers who may NOT yet recognize a need for them?

Accepted Answer

Unsought products are those that consumers do not typically think about buying or do not know they need until they learn about them through advertising or word of mouth. These products require more aggressive marketing strategies to generate awareness and interest.

Question 4

According to marketing decision makers, why do people buy products?

Accepted Answer

People buy products primarily to satisfy their wants and needs, which is a fundamental concept in marketing.

Question 5

Which product is, for most consumers, unsought?

Accepted Answer

Unsought products are those that consumers do not normally think of buying or do not know about. Among the options, long-term insurance is typically an unsought product because most consumers do not actively seek it out until a specific need arises or until they are approached by a salesperson.

Question 6

Which of the following is most likely to be categorized as a consumer product as well as a business product?

Accepted Answer

Agriculture produce is most likely to be categorized as both a consumer product and a business product because it can be directly consumed by individuals and also used by businesses as raw materials or for resale.

Question 7

Richard generally frequented Brewz, a coffeehouse chain, when he was in Florida. However, when his company shifted him to China, he found that the Brewz in Shanghai does not offer the same quality service. Which of the following best explains this differential perception in service quality?

Accepted Answer

Services are inherently difficult to standardize across different locations due to variations in local practices, employee training, and customer expectations, which can lead to differences in service quality.

Question 8

Approximately what percentage of the Canadian economy is made up of the service sector?

Accepted Answer

The service sector constitutes about 75% of the Canadian economy, reflecting a common trend in developed countries where services dominate economic output.

Question 9

Which of the following best describes a product?

Accepted Answer

A product encompasses not just the physical item but also the services and symbolic values associated with it, all of which are designed to fulfill the customer's desires and requirements.

Question 10

Which of the following comes closest to providing pure service?

Accepted Answer

A fitness gym primarily offers a service (use of its facilities and fitness training) rather than a tangible product, making it the closest to providing pure service among the options listed.

Question 11

Which product would generally be classified as a staple?

Accepted Answer

Gasoline is considered a staple product because it is a basic necessity for many people, especially those who rely on vehicles for transportation.

Question 12

What distinguishes a service from a good?

Accepted Answer

Services are characterized by their inseparability from the service providers, meaning the production and consumption of a service occur simultaneously, involving the provider and the consumer in the process. This is a key distinction from goods, which are tangible and can be produced, stored, and consumed independently of the seller.

Question 13

Which of the following industries does NOT belong to the service sector?

Accepted Answer

Agriculture is part of the primary sector, which involves the extraction and production of raw materials, such as crops and livestock, rather than providing services.

Question 14

Which term refers to a bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs?

Accepted Answer

A product encompasses a bundle of physical, service, and symbolic attributes designed to fulfill customer wants and needs.

Question 15

The moderately priced Days Inn and the upscale Four Seasons Hotel both provide sleeping accommodations, but their respective guests have considerably different expectations of service. Why do their expectations differ?

Accepted Answer

The answer of The moderately priced Days Inn and the...

Question 16

Using the broad application of the word product, how can a television set best be described?

Accepted Answer

A television set can best be described as a means of providing entertainment, as it is primarily used to watch shows, movies, and other forms of visual content.

Question 17

Which of the following comes closest to providing a pure good?

Accepted Answer

A company that manufactures and installs elevators provides a tangible product (elevators), which is closer to a pure good compared to services like cleaning, data storage, or advertising.

Question 18

Christopher owns the best hair salon in the city. The clients swear by Christopher, and brides and bridesmaids flock for him for weddings. Which statement best explains this situation?

Accepted Answer

Services are inseparable from the service providers, meaning the quality and type of service provided are directly linked to the person providing it. In this case, Christopher's personal skill and reputation are the reasons clients seek him out, illustrating the inseparability of services from their providers.

Question 19

Gourmet restaurants and fast food chains cater to the same want satisfaction-a place to eat. However, at the gourmet restaurants you experience finely prepared cuisine served by a highly trained wait staff while at the fast food chains you may have to serve yourself. Which statement best represents this difference?

Accepted Answer

The key difference highlighted is in the level of service and experience offered by gourmet restaurants versus fast food chains, indicating that service standards can vary widely between different types of establishments.

Question 20

How might you categorize convenience products that customers constantly replenish in order to maintain a ready inventory?

Accepted Answer

Staples are convenience products that customers buy regularly and replenish often, such as household goods, to maintain a ready inventory.

Quiz 10: Product and Service Strategies