Question 1

The perishability of services means​

Accepted Answer

Perishability refers to the fact that services cannot be stored or inventory for future use. Once the time slot for a service is gone, it is lost forever. If demand is low and there is unused capacity, the service provider cannot store it for future use, but rather it is permanently lost.

Question 2

Financial price⎯an exact dollar amount⎯may or may not be charged for a nonprofit product.

Accepted Answer

Nonprofits may choose to offer products or services for free, or they may charge a nominal fee or suggest a donation amount rather than setting a specific financial price.

Question 3

You recently began working as the marketing director for a nonprofit organization. Prior to this role, you always worked in for-profit organizations. You immediately recognize that marketing in a nonprofit environment is dramatically different than marketing in a for-profit environment. Which of the following statements is true regarding the differences in marketing in a nonprofit versus a for-profit environment?​

Accepted Answer

Nonprofit organizations typically focus on promoting and providing services, ideas, or causes rather than tangible goods. This makes marketing strategies different as the focus is on promoting the mission of the organization and its impact rather than generating profits.

Answer: B
 Pricing strategies in nonprofit organizations are often designed to cover costs rather than generating revenue. These organizations often rely heavily on donations and fundraising to support their operations and mission, which can impact pricing decisions.

Answer: D
 Marketing ideas and concepts in for-profit organizations are usually more concrete and focused on promoting specific products or services. Nonprofit organizations, on the other hand, often promote more abstract concepts like social impact, community involvement, and advocacy.

Answers C and E are incorrect as they make inaccurate statements about the similarities and differences between non-profit and for-profit marketing.

Question 4

You are considering hiring an outside consultant to help you improve your services business. You believe your most pressing issue is how to maintain consistent quality in the delivery of your services. Your customer surveys suggest you need to work on this very important issue. Based on this, you should be looking for a consultant who has experience in dealing with the _______________ issue related to services.​

Accepted Answer

The issue described in the scenario is related to heterogeneity, which refers to the challenge of maintaining consistent quality in the delivery of services due to the variability of human performance. A consultant with experience in dealing with this issue would be best equipped to help the business address its concerns and improve its service quality.

Question 5

As the owner of a services business, you are constantly challenged to maintain consistent quality in your services. This heterogeneity is both a challenge and an opportunity. The opportunity arises because __________________.​

Accepted Answer

Heterogeneity allows for customization of services to match the specific needs of individual customers, which can be an opportunity to provide personalized and high-quality services that meet the unique needs of customers, leading to increased customer satisfaction and loyalty.

Question 6

You run a services business and you are constantly looking for ways to project an image of quality to your current and potential customers. You recognize there are very few tangible elements customers can view before making a services purchase. If you want to improve these elements of your business, then you should focus on improving _________________.​

Accepted Answer

Facilities and employees are among the few tangible elements in a services business that customers can assess before making a purchase. Improving these aspects can help project an image of quality to current and potential customers.

Question 7

The U.S. economy is now referred to as a(n)____________.​

Accepted Answer

The U.S. economy is now considered a service economy, as a significant portion of the workforce is employed in the service sector, such as healthcare, education, finance, and entertainment. The manufacturing sector has decreased in size and importance, and the economy relies on the export of services rather than goods.

Question 8

Personal selling is one noticeable marketing activity used to gain acceptance of a social idea or to solicit donations.

Accepted Answer

Personal selling involves face-to-face communication with potential customers, which makes it an effective tool for promoting social ideas and requesting donations. It allows for a more personalized approach and can help to build relationships with potential donors.

Question 9

The concept of opportunity cost is important in determining the price paid by an individual for a nonprofit product.

Accepted Answer

Opportunity cost refers to the benefits or opportunities that an individual foregoes in order to pursue a certain course of action, such as buying a nonprofit product. The decision to purchase a nonprofit product will involve considering the opportunity cost of using that money for other purposes. Therefore, the concept of opportunity cost is relevant in determining the price paid by an individual for a nonprofit product.

Question 10

Selecting a convenient location is important to the distribution of a nonprofit service.

Accepted Answer

Selecting a convenient location is important to ensure that the nonprofit service can reach the target population effectively and efficiently. It can also influence the accessibility and cost-effectiveness of delivering the service.

Question 11

Sales promotion activities of a nonprofit organization may consist of special events such as fund-raising campaigns, telethons, contests, and entertainment.

Accepted Answer

Sales promotion activities can be used by nonprofit organizations to increase awareness and generate donations or support. Special events such as fund-raising campaigns, telethons, contests, and entertainment can all be effective ways to engage with potential supporters and encourage them to get involved.

Question 12

Nonprofit organizations deal with ideas and services more often than with goods.

Accepted Answer

Nonprofit organizations are typically focused on providing services and advocating for ideas, rather than producing or selling goods for profit. Their main goal is to meet the needs of their community, whether through charitable works, education, or advocacy.

Question 13

You are contemplating starting a services business in the next few months. You are inclined to start a services business because you know that the U.S. economy is rapidly becoming a services-based economy. You have the expertise to focus on either business services or consumer services. Which of the following statements is true about business and consumer services?​

Accepted Answer

Demand for business services has grown more rapidly than for consumer services due to the increasing need for specialized services in areas like IT, consulting, and logistics.

Question 14

Consumers are ________________likely to tell other people about a bad customer service experience compared to a good one.​

Accepted Answer

Research has shown that consumers are two times more likely to tell other people about a bad customer service experience compared to a good one. This highlights the importance of providing excellent customer service to ensure positive word-of-mouth communication.

Question 15

Services ____________ factors for the customer to evaluate as compared to goods.​

Accepted Answer

Services typically have fewer factors for the customer to evaluate than goods because they are intangible and variable. Goods can be physically inspected, whereas services cannot. Additionally, services often involve interactions with people, which can contribute to the variability of the service experience. Therefore, customers may place more emphasis on factors such as reliability, responsiveness, empathy, and assurance when evaluating services.

Quiz 13: Services Marketing

The perishability of services means

Financial price⎯an exact dollar amount⎯may or may not be charged for a nonprofit product.

As the owner of a services business, you are constantly challenged to maintain consistent quality in your services. This heterogeneity is both a challenge and an opportunity. The opportunity arises because __________________.

The U.S. economy is now referred to as a(n) ____________.

Personal selling is one noticeable marketing activity used to gain acceptance of a social idea or to solicit donations.

The concept of opportunity cost is important in determining the price paid by an individual for a nonprofit product.

Selecting a convenient location is important to the distribution of a nonprofit service.

Sales promotion activities of a nonprofit organization may consist of special events such as fund-raising campaigns, telethons, contests, and entertainment.

Nonprofit organizations deal with ideas and services more often than with goods.

Consumers are ________________likely to tell other people about a bad customer service experience compared to a good one.

Services ____________ factors for the customer to evaluate as compared to goods.

Quiz 13: Services Marketing

The perishability of services means​

Financial price⎯an exact dollar amount⎯may or may not be charged for a nonprofit product.

As the owner of a services business, you are constantly challenged to maintain consistent quality in your services. This heterogeneity is both a challenge and an opportunity. The opportunity arises because __________________.​

The U.S. economy is now referred to as a(n) ____________.​

Personal selling is one noticeable marketing activity used to gain acceptance of a social idea or to solicit donations.

The concept of opportunity cost is important in determining the price paid by an individual for a nonprofit product.

Selecting a convenient location is important to the distribution of a nonprofit service.

Sales promotion activities of a nonprofit organization may consist of special events such as fund-raising campaigns, telethons, contests, and entertainment.

Nonprofit organizations deal with ideas and services more often than with goods.

Consumers are ________________likely to tell other people about a bad customer service experience compared to a good one.​

Services ____________ factors for the customer to evaluate as compared to goods.​

The perishability of services means

As the owner of a services business, you are constantly challenged to maintain consistent quality in your services. This heterogeneity is both a challenge and an opportunity. The opportunity arises because __________________.

The U.S. economy is now referred to as a(n) ____________.

Consumers are ________________likely to tell other people about a bad customer service experience compared to a good one.

Services ____________ factors for the customer to evaluate as compared to goods.