Question 1

Services tend to exhibit more search qualities than do tangible goods.

Accepted Answer

A search quality is a characteristic that can be easily assessed before purchase,and tangible goods tend to exhibit more search qualities than do intangible goods.Services exhibit more experience and credence qualities.

Question 2

Chesapeake Energy Corporation was recognized by Fortune Magazine as one of the top companies to work for.Fortune mentioned that Chesapeake Energy provides its employees many perks,including the opportunity to take free scuba-diving lessons in Chesapeake's on-site Olympic-size pool.This example illustrates relationship marketing in action.

Accepted Answer

Chesapeake Energy is actually practicing internal marketing.Relationship marketing is focused on customers,not employees.

Question 3

Vera is designing a promotional strategy for a company that provides premium boarding services for pampered animals.Her promotions should use personal information sources and stress the tangible cues associated with the service.

Accepted Answer

Using personal information sources, such as word-of-mouth recommendations, and emphasizing tangible cues, such as luxurious accommodations and attentive staff, can be effective in promoting premium boarding services for pampered animals.

Question 4

Greta,the owner of House Mouse Cleaning Services,must be physically present when she cleans a house or office.The need for her presence as the service is performed is an example of the intangibility of services.

Accepted Answer

The need for her presence and the customer's presence is an example of how services are produced and consumed simultaneously (inseparability).

Question 5

The only type of service processing required for a comedian entertaining at a local club is information processing.

Accepted Answer

Comedians require mental stimulus processing.

Question 6

Most service organizations market only one specific service

Accepted Answer

Most service organizations market more than one service.

Question 7

Revenue-oriented pricing focuses on maximizing the surplus of income over costs.

Accepted Answer

Revenue-oriented pricing is a strategy that aims to set prices in a way that maximizes the difference between the revenue generated and the costs incurred. This approach focuses on increasing profits by generating more revenue without necessarily increasing costs.

Question 8

The gap model of service quality identifies five gaps that can cause problems in service delivery and influence customer evaluations of service quality.

Accepted Answer

The gap model of service quality does indeed identify five gaps that can lead to problems in service delivery and affect customer perceptions of service quality. These gaps include the gap between customer expectations and management perceptions, the gap between management perceptions and service quality specifications, the gap between service quality specifications and service delivery, the gap between service delivery and external communication, and the gap between customer expectations and customer perceptions.

Question 9

A barber shop is an example of a service business.

Accepted Answer

A barber shop provides a service of haircuts and grooming, making it an example of a service business.

Question 10

Heterogeneity of services means the quality of a service may not be consistent.

Accepted Answer

Heterogeneity of services refers to the fact that a service may not always be delivered in the same way or with the same quality due to variations in people, equipment, and other factors involved in the service delivery process. This can lead to inconsistencies in the quality of the service, unlike a tangible product which can be produced to a consistent standard.

Question 11

U.S.service firms such as financial institutions and construction,engineering,and insurance companies will have a difficult time expanding to global markets because competing foreign firms possess many competitive advantages.

Accepted Answer

These U.S.firms have the greatest potential for globalization because of their existing competitive advantages.

Question 12

Nonprofit organizations do not charge prices for the services they provide.

Accepted Answer

Nonprofit organizations do charge for the services they provide,though they often use terms such as fees,donations,tuition,fares,fines,or rates.

Question 13

Hotels will often offer deep discounts on weekends and during the off-season; for the same reason,airlines will adopt a similar pricing strategy during off-peak hours.These services cannot be stored,warehoused,or inventoried because they are perishable.

Accepted Answer

This statement is true because services, such as hotel stays and airline flights, cannot be saved or stored for later use. They must be sold at the time they are offered, making pricing strategies during off-peak times a common practice to attract customers and maximize revenue.

Question 14

The core service is the most basic benefit the consumer is buying.

Accepted Answer

The core service is the primary benefit that a consumer is purchasing, and it usually includes the essential features of a product or service.

Question 15

A nonprofit organization is an organization that exists to achieve some goal other than the usual business goals of profit,market share,or return on investment.

Accepted Answer

A nonprofit organization is focused on achieving a mission or social cause, rather than profit or financial gain.

Question 16

Karen has a gluten allergy,which means she is unable to eat certain foods.The chef at her favorite restaurant understands Karen's situation and is always happy to modify his recipes for her when she dines there.The chef is providing assurance to Karen.

Accepted Answer

The chef is exhibiting empathy-caring,individualized attention-to Karen.

Question 17

Responsiveness is the service quality component most valued by customers.

Accepted Answer

Reliability has been found to be the component most important to consumers.

Question 18

Nonprofit managers do not need to worry about developing marketing strategies.

Accepted Answer

Although nonprofit organizations have a different purpose than for-profit businesses and operate in different environments,managers of these organizations need to develop marketing strategies to bring about mutually satisfying exchanges with target markets.

Question 19

Many businesses have found that it is more expensive to hang on to the customers they have than to focus only on attracting new ones.

Accepted Answer

Many businesses have found that it is more cost-effective to hang on to the customers they have than to focus only on attracting new ones.

Question 20

Services are considered inseparable because most services cannot be felt or touched in the same way most goods can be sensed.

Accepted Answer

This describes the characteristic of intangibility.

Quiz 23: Services and Nonprofit Organization Marketing