Question 1

Bank One's introduction of an Internet retail bank, Wingspan, which provides all of the services customers expect of a bank but with increased time and place utility, is an example of a _____ strategy.

Accepted Answer

The answer of Bank One's introduction of an Internet retail...

Question 2

When a catering company that had formerly provided food for any type of gathering decided it would no longer provide its services to children's birthday parties, it would be an example of:

Accepted Answer

This is an example of product contraction, where a company reduces the range of products or services it offers. By deciding not to cater to children's birthday parties anymore, the catering company is narrowing its service offerings.

Question 3

An afternoon tutoring program for high school students decided to eliminate its French classes because of low demand. The tutoring program engaged in:

Accepted Answer

The tutoring program engaged in product contraction by eliminating its French classes due to low demand. Product contraction involves reducing the number of offerings or services, typically to focus on more profitable or popular options.

Question 4

State and county fairs are an annual autumn event in most states. Attendance for such events has been gradually declining because people are tired of seeing the same events and rides every year. Fairs that add a series of concerts to the usual fair menu have engaged in:

Accepted Answer

The answer of State and county fairs are an annual...

Question 5

In order to create an effective brand image for a service, a services marketer could:

Accepted Answer

All the options listed are strategies that can be used to create an effective brand image for a service. An association strategy, tying a slogan to the brand, using a physical representation strategy, and developing a total brand theme are all viable methods to enhance a service's brand image.

Question 6

The _____ strategy used by UPS is to ask its customers to "Depend on Brown." This strategy makes use of the fact everyone recognizes the company's brown trucks and brown uniforms.

Accepted Answer

The correct answer is branding because UPS is leveraging its recognizable brown trucks and uniforms to create a distinct brand identity that customers can easily remember and trust. This strategy is aimed at reinforcing the UPS brand in the minds of consumers.

Question 7

Accessline Communications is a company designed to make sure an Internet company does not expand beyond the capacity of its communication system. Not only does the company point out trouble areas, it also provides needed outsourcing help for internal and external communications. The company is trying to _____ by using the slogan "Call us at the first sign of success" in all of its advertising.

Accepted Answer

Accessline Communications uses the slogan "Call us at the first sign of success" to create a memorable and distinctive brand image, associating their services with the success of their clients.

Question 8

The stylized eagle that appears on all USPS vehicles, mailing boxes and envelopes, and communications is creating a service brand by:

Accepted Answer

The stylized eagle is a tangible object that represents the USPS service, helping to create a recognizable and consistent brand image.

Question 9

The U.S. Olympics uses five intertwined circles in all of its promotions to indicate the peaceful coming together of athletes from five different continents. This creation of a service brand is facilitated by:

Accepted Answer

The five intertwined circles are a tangible object that represents the service of the U.S. Olympics.

Question 10

Hoover's online is a service that provides up-to-date competitive research on businesses. Its slogan is "The Business Information Authority," and it used the colors orange and purple in its advertising and on its Web site. The slogan and the use of color are both intended to:

Accepted Answer

The slogan "The Business Information Authority" and the distinctive use of orange and purple colors in its advertising and on its website are strategies aimed at creating a memorable and distinctive brand image. This helps differentiate Hoover's online from its competitors and makes it more recognizable to consumers.

Question 11

Why do state colleges and universities have mascots?

Accepted Answer

Mascots help in creating a brand image for state colleges and universities by providing a recognizable and relatable symbol that represents the institution's values, spirit, and community. This aids in differentiating the institution in the competitive education market.

Question 12

In the pricing of for-profit services,:

Accepted Answer

The perishability of demand is a key factor in service pricing because services cannot be stored for future sale, so pricing strategies often aim to balance supply and demand effectively.

Question 13

Which of the following statements about price determination in nonprofit organizations is True?

Accepted Answer

Nonprofit organizations often have different objectives and constraints compared to for-profit businesses, making traditional pricing methods less applicable. They may consider factors such as mission fulfillment, accessibility, and social impact in their pricing strategies.

Question 14

When setting the base price for services clients receive, such organizations as the Salvation Army:

Accepted Answer

The answer of When setting the base price for services...

Question 15

A single visit to Stone Mountain State Park costs $3.00. A season pass, which allows you unlimited visits to the park, costs $10 and can be used for 12 months. If Jake makes 10 visits to the park, each visit only costs him $1 if he has the pass. This reduction in price is a form of a:

Accepted Answer

A quantity discount is given when a customer buys a larger quantity of an item, in this case, multiple visits to the park, which reduces the cost per visit.

Question 16

A one-time visit to the tanning beds at Summer's Glow Tanning Salon is $3. You can buy a yearlong pass, which will give you unlimited usage of the salon's tanning bed for $99. This is an example of a:

Accepted Answer

A quantity discount is given for purchasing a larger amount or volume, in this case, unlimited usage as opposed to a single visit, which effectively reduces the cost per visit.

Question 17

The Popular Culture Association ordinarily charges its members dues of $25 per year. However, the association waives dues for members who are currently unemployed, full-time students, or retired. This is an example of _____ pricing.

Accepted Answer

Flexible-price pricing allows for adjustments based on certain conditions or statuses of customers, such as being unemployed, a full-time student, or retired, which is what the Popular Culture Association is doing by waiving dues for these members.

Question 18

Susan and Tullia are both buying back-to-school clothes for their children at a neighborhood thrift shop. Tullia has an income of $20,000, while Susan's income is less than $12,000. The thrift store will charge Tullia less for her children's clothes than it will charge Susan. What pricing strategy does this exemplify?

Accepted Answer

The thrift store is using a flexible-price strategy, where the price of the same goods or services may vary based on factors such as the customer's ability to pay, negotiation, or other variables. In this case, the store adjusts prices based on the customers' income levels.

Question 19

Databases that allow a company to examine an individual's purchase history, can be combined with real-time supply information that indicates how much of a service remains unsold. This information allows a firm to engage in:

Accepted Answer

Dynamic pricing is the strategy where prices are adjusted in real-time based on supply and demand, customer behavior, or market conditions. By analyzing an individual's purchase history and combining it with real-time supply information, a company can adjust prices to optimize sales and revenue, which is the essence of dynamic pricing.

Question 20

_____ allows an organization to offer an individual a price that considers the value of retaining the person's loyalty, maximizes the probability of a service being purchased, and optimizes the service revenue.

Accepted Answer

Dynamic pricing allows organizations to adjust prices based on various factors, including customer loyalty, demand, and purchasing behavior, to maximize sales and revenue. This strategy can offer personalized prices to retain customer loyalty and optimize revenue.

Quiz 11: Services Marketing