Question 1

Services have three evaluation attributes: search qualities, experience qualities, and ____ qualities.

Accepted Answer

The three evaluation attributes of services are search qualities (tangible attributes that can be assessed before purchase), experience qualities (attributes that can only be assessed after purchase), and credence qualities (attributes that are difficult to evaluate even after purchase and involve trust and expertise). Perishable, marketability, and credibility are not evaluation attributes of services.

Question 2

Which of the following service providers are most likely to use demand-based pricing?

Accepted Answer

Cruise ships are most likely to use demand-based pricing as their prices typically fluctuate based on the supply and demand for their services. The other service providers listed usually charge a set fee for their services regardless of demand.

Question 3

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

Accepted Answer

Inseparability means that production and consumption of services occur simultaneously because the service cannot be separated from the individual performing the service or the customer receiving the service.

Question 4

Most products possess a certain degree of intangibility.

Accepted Answer

Most products have intangible components such as branding, reputation, and customer experience.

Question 5

The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called:

Accepted Answer

Responsiveness refers to the employees' willingness and readiness to meet the needs of the customer while providing the service. It is an important dimension of service quality as it shows the customer that their needs and concerns are being heard and addressed promptly.

Question 6

Service providers offering discounts to current customers who refer new customers to them are using existing customers as a part of their service promotion strategies.

Accepted Answer

This statement is true. Service providers often rely on positive word-of-mouth from satisfied customers to attract new business, and offering discounts or other incentives to current customers who refer new customers is a common strategy for promoting their services.

Question 7

Goods can be defined in terms of their physical attributes, but services cannot because they are intangible.

Accepted Answer

This statement is true. Goods can be described in terms of their physical attributes such as size, weight, color, and texture. However, services are intangible and cannot be described in the same way. Instead, they are defined more by the actions or experiences that are provided to the customer.

Question 8

Client-based relationships are interactions that result in satisfied customers who repeatedly use a service over time.

Accepted Answer

Client-based relationships are built on trust, communication, and understanding customer needs, which leads to satisfied customers who are likely to continue using the service.

Question 9

Which of the following best defines non-profit marketing?

Accepted Answer

Non-profit marketing refers to marketing activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment. It aims to promote a cause, idea, or social issue, and raise awareness and support for non-profit organizations or their activities.

Question 10

Which of the following is similar for both for-profit and non-profit marketing?

Accepted Answer

Both for-profit and non-profit organizations can use similar marketing tactics to reach their target markets effectively. Both can use advertising, social media, direct mail, public relations, and other methods to promote their products or services.

Question 11

Because of inseparability of the consumption and production of services, customers are often present when a service is produced.

Accepted Answer

Services are produced and consumed simultaneously, meaning that customers are often present during the production of the service.

Question 12

Many services have aspects that consumers may never be able to evaluate, even years after the purchase and consumption of the service. These attributes are called:

Accepted Answer

Credence qualities are attributes of a service that consumers may never be able to evaluate, such as the quality of medical care or legal advice. These attributes are difficult to assess even after the service has been consumed, and consumers must rely on faith or trust in the provider's expertise and integrity.

Question 13

Distribution of services is often more direct, even if the customer must go to the service provider's facilities.

Accepted Answer

This statement is true as compared to distribution of physical goods, where the products often need to be transported to a retailer or customer location. Services, on the other hand, can be delivered directly to the customer at the service provider's facilities.

Question 14

High-contact services are very expensive to deliver because they are equipment-intensive.

Accepted Answer

High-contact services, such as personal training, counseling and coaching, rely heavily on human interaction and expertise rather than equipment. They may require some equipment, such as a massage table or exercise equipment, but they are not considered equipment-intensive compared to other industries such as manufacturing or construction.

Question 15

When a customer takes part in the production of a service, other customers can affect the outcome of the service.

Accepted Answer

When a customer participates in the production of a service (for example, providing information or feedback), other customers may be affected by the outcome of that service. For example, if a customer provides incorrect information, it could lead to delays or errors in the service for other customers. If one customer is particularly difficult or demanding, it could affect the overall experience of other customers and the quality of the service they receive. Therefore, the actions and behaviors of one customer can impact the experience of others in a service environment.

Question 16

There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and:

Accepted Answer

The fifth element that affects customers' perceptions of service quality is employee empathy. This refers to the ability of employees to understand and empathize with the customer's needs and feelings. It involves showing care, concern, and a willingness to help the customer. This can have a significant impact on the customer's perception of the overall service quality.

Question 17

What are the three primary ways that marketers deliver services?

Accepted Answer

The three primary ways that marketers deliver services are through service facilities (such as a salon or restaurant), to the customer's home (such as home cleaning or food delivery), or from a distance (such as online customer service or virtual consultations). Option E is the only one that correctly identifies these three ways.

Question 18

Consumers look closely at service quality when comparing competing services because:

Accepted Answer

Services are intangible and cannot be evaluated before purchase as easily as goods, making quality a critical factor in consumer decision-making.

Question 19

Because most services are people-based, they are susceptible to heterogeneity, or variation in demand over time.

Accepted Answer

Heterogeneity in services refers to the variability in service quality delivered to different customers or by different service providers, not to variation in demand over time.

Question 20

Demand-based pricing relies on information concerning peak demand times and off-peak demand times.

Accepted Answer

Demand-based pricing takes into account the fluctuations in demand, including peak demand times (when demand is high) and off-peak demand times (when demand is low). By adjusting prices accordingly, businesses can maximize profits and ensure that they are meeting customer needs during times of high demand.

Quiz 10: The Marketing of Services