Deck 3: Fundamental Differences Between Goods and Services

Question 1

Marketing challenges posed by inseparability include all of the following except:

A)the physical connection of the service to the service provider.
B)the involvement of the customer in the production process.
C)the difficulty to achieve service standardization and quality control.
D)the involvement of other customers in the production process.
E)the challenge for the mass production of the service.

Answer 1

C

Question 2

The primary solution to overcome the centralized mass production challenges attributed to inseparability is:

A)the careful selection of service employees.
B)the management of service consumers.
C)the use of multisite locations to distribute services.
D)the training of public contact personnel.
E)appealing to market segments with different demand patterns.

Answer 2

C

Question 3

Which of the following statements pertaining to heterogeneity is false?

A)It is almost impossible for a service operation to achieve 100% perfect quality on an ongoing basis.
B)Standardization and quality control are difficult to achieve.
C)Customers always prefer customized services over standardized services.
D)Customized services are generally more expensive than standardized services.
E)It is easier to customize services than goods.

Answer 3

C

Question 4

Which of the following statements pertaining to inseparability is false?

A)As customer contact increases,the efficiency of the firm decreases.
B)Customers can affect the type of service desired.
C)Customers can affect the length of the service transaction.
D)Customers can affect the cycle of demand
E)All of these are true.

Question 5

The centralized mass production of services is difficult due to:

A)inseparability.
B)intangibility.
C)homogeneity.
D)perishability.
E)heterogeneity.

Question 6

Which of the following is NOT a marketing challenge posed by intangibility?

A)Services lack the ability to be stored.
B)Services lack patent protection.
C)Services are difficult to price.
D)Services are difficult to communicate to consumers.
E)Consumers are involved in the service production process.

Question 7

The unique service characteristic that reflects the interconnection between the service firm and its customer is called:

A)intangibility.
B)inseparability.
C)homogeneity.
D)perishability.
E)heterogeneity.

Question 8

The service characteristic that reflects the variation in consistency from one service transaction to the next is:

A)inseparability.
B)intangibility.
C)homogeneity.
D)perishability.
E)heterogeneity.

Question 9

Services are characterized by all of the following characteristics except:

A)intangibility.
B)homogeneity.
C)perishability.
D)inseparability.
E)heterogeneity.

Question 10

All of the following are advantages of standardized services except:

A)they are less expensive.
B)they meet the customer's exact needs.
C)they are delivered faster.
D)they are more consistent.
E)none of these are exceptions.

Question 11

Possible solutions that firms use to minimize the problems caused by inseparability include all of the following except:

A)the careful selection of service employees.
B)the management of service consumers.
C)the use of multisite locations to distribute services.
D)the training of public contact personnel.
E)appealing to market segments with different demand patterns.

Question 12

Of the four unique service characteristics that distinguish goods from services,the one that is the primary source of the other three characteristics is:

A)intangibility.
B)inseparability.
C)homogeneity.
D)perishability.
E)heterogeneity.

Question 13

Possible solutions that minimize the problems caused by intangibility include all of the following except:

A)the use of tangible clues.
B)the effective management of consumers.
C)the creation of a strong organizational image.
D)the use of personal sources of information.
E)the use of activity-based costing.

Question 14

Which of the following statements is false?

A)Services cannot be touched or seen in the same manner as goods.
B)Consumer judgments about services tend to be more subjective than objective.
C)Services are first produced,then sold,then consumed.
D)Services tend to vary from one transaction to the next.
E)Services cannot be inventoried.

Question 15

Complications attributed to perishability include all of the following except:

A)services that are not sold when they become available cease to exist.
B)the production and consumption of services cannot be separated by time and space.
C)statistical sampling techniques are of little use in services.
D)due to the lack of inventories,marketing and operations must work much closer together.
E)products are sold at a transfer price from one department to another within the same company.

Question 16

Which of the following is a marketing challenge posed by intangibility?

A)Services have no costs of goods sold.
B)The consumer is involved in the production process.
C)Other consumers are involved in the production process.
D)Service standardization and quality control are difficult to achieve.
E)Centralized mass production of services is difficult.

Question 17

The primary cost of producing a service is:

A)rent.
B)overhead.
C)cost of goods sold.
D)labor.
E)promotional expenses.

Question 18

The fact that services are sold and then produced and consumed simultaneously is attributed to:

A)intangibility.
B)inseparability.
C)homogeneity.
D)perishability.
E)heterogeneity.

Question 19

The unique service characteristic that deals specifically with the inability to inventory services is:

A)inseparability.
B)intangibility.
C)homogeneity.
D)perishability.
E)heterogeneity.

Question 20

Solutions used to minimize the marketing problems attributed to heterogeneity include:

A)standardizing or customizing the service.
B)using multisite locations.
C)stressing tangible clues.
D)appealing to different market segments with different demand patterns.
E)using reservation systems.

Question 21

Match the appropriate unique service feature with the resulting marketing challenge the feature poses.
a.intangibility
b.inseparability
c.heterogeneity
d.Perishability
Prices are difficult to set.

Question 22

Match the appropriate unique service feature with the resulting marketing challenge the feature poses.
a.intangibility
b.inseparability
c.heterogeneity
d.Perishability
Cannot protect services through patents.

Question 23

Which of the following scenarios is likely to lead to the highest level of customer dissatisfaction?

A)higher demand than maximum available supply
B)higher demand than optimal supply levels
C)lower demand than optimal supply levels
D)demand and supply at optimal levels
E)All of these scenarios result in equal levels of customer dissatisfaction.

Question 24

Possible strategies for managing demand and minimizing the marketing problems associated with perishability include which of the following?

A)the use of creative pricing strategies
B)the use of reservation systems
C)developing complimentary services
D)developing nonpeak demand
E)all of these

Question 25

The perishability-related strategy that may sometimes be associated with consumer feelings that the service firm may be attempting to distance itself from consumers is:

A)the use of reservation systems.
B)training public contact personnel.
C)the use of third-parties to conduct service transactions.
D)increasing the amount of consumer participation.
E)training public contact personnel and increasing the amount of consumer participation.

Question 26

Discuss the primary marketing challenge associated with heterogeneity and the possible solutions to address this issue.

Question 27

Discuss the marketing challenges associated with intangibility and the possible solutions to address these issues.

Question 28

Which of the following would NOT be considered a tangible clue?

A)the quality of instruction in an educational setting
B)the appearance of employees
C)the appearance of the firm's physical facilities
D)the smile on an employee's face
E)the quality of paper stock use to produce a firm's brochures.

Question 29

Define the characteristics of intangibility,inseparability,heterogeneity,and perishability.

Question 30

Which of the following strategies increases the supply of service available to consumers?

A)increasing consumer participation
B)using creative pricing strategies
C)using reservation systems
D)developing complimentary services
E)developing nonpeak demand

Question 31

Which of the following strategies increases the supply of service available to consumers?

A)the use of creative pricing strategies
B)the use of reservation systems
C)capacity sharing
D)developing complementary services
E)developing nonpeak demand

Question 32

A perishability-related strategy that increases the supply of services by forming a co-op with other service providers is referred to as:

A)complimentary service sharing.
B)capacity sharing.
C)expansion preparation.
D)third-party utilization.
E)nonpeak demand development.

Question 33

The demand strategy in which service providers utilize their downtime by marketing to different segments with different demand patterns is associated with which of the following:

A)the use of creative pricing strategies
B)the use of reservation systems
C)capacity sharing
D)developing complementary services
E)developing nonpeak demand

Question 34

Match the appropriate unique service feature with the resulting marketing challenge the feature poses.
a.intangibility
b.inseparability
c.heterogeneity
d.Perishability
Centralized mass production of services is difficult.

Question 35

Match the appropriate unique service feature with the resulting marketing challenge the feature poses.
a.intangibility
b.inseparability
c.heterogeneity
d.Perishability
Standardization and quality control are difficult.

Question 36

Match the appropriate unique service feature with the resulting marketing challenge the feature poses.
a.intangibility
b.inseparability
c.heterogeneity
d.Perishability
Other customers are involved in the production process.

Question 37

Discuss the primary marketing challenge associated with perishability and the possible solutions to address this issue.

Question 38

Discuss the marketing challenges associated with inseparability and the possible solutions to address these challenges.

Question 39

Which of the following statements is false?

A)The use of third parties decreases the supply of a service.
B)Reservation systems can be used to alter the demand for services.
C)Customer participation in services may result in some loss of control by the service establishment.
D)The marketing department of service organizations must maintain a much closer relationship with the rest of the organization than what is typical in a goods business.
E)The use of part-time employees increases the supply of a service.

Question 40

Which one of the following strategies is used to alter consumer demand?

A)increasing consumer participation
B)utilizing third parties
C)utilizing creative pricing strategies
D)sharing capacity
E)preparing in advance for expansion

Question 41

Match the appropriate service feature with the marketing strategy suggested to compensate for the marketing challenge(s) associated with the feature.
a.intangibility
b.inseparability
c.heterogeneity
d.Perishability
Standardize the service.

Question 42

Match the appropriate service feature with the marketing strategy suggested to compensate for the marketing challenge(s) associated with the feature.
a.intangibility
b.inseparability
c.heterogeneity
d.Perishability
Emphasize the selection and training of public contact personnel.

Question 43

Match the appropriate service feature with the marketing strategy suggested to compensate for the marketing challenge(s) associated with the feature.
a.intangibility
b.inseparability
c.heterogeneity
d.Perishability
Use tangible clues.

Question 44

Match the appropriate service feature with the marketing strategy suggested to compensate for the marketing challenge(s) associated with the feature.
a.intangibility
b.inseparability
c.heterogeneity
d.Perishability
Effectively manage consumers.

Question 45

Match the appropriate service feature with the marketing strategy suggested to compensate for the marketing challenge(s) associated with the feature.
a.intangibility
b.inseparability
c.heterogeneity
d.Perishability
Utilize part-time employees.