Deck 12: The Marketing of Services

Question 1

Which of the following is true of inseparable services?

A) Inseparable services cannot be produced and marketed simultaneously.
B) Direct sale is the only feasible channel of distribution for inseparable services.
C) When the buyer has a tangible representation of a service, the problem of inseparability occurs.
D) Inseparable services can be inventoried.

Answer 1

B
Explanation:The implication of inseparability on issues dealing with the selection of channels of distribution and service quality is quite important. Inseparable services cannot be inventoried, and thus direct sale is the only feasible channel of distribution.

Question 2

Adam enrolled as a member of the Carter Culinary Association located at Illinois.He was given a membership card at the time of membership.The institution imparted training on a variety of different cuisines.Which of the following statements is true of the relationship between Adam and the institution?

A) The card would serve as a representation of Adam's favorite cuisines.
B) The card would give tangible proof that Adam had definitely learned the art of cooking.
C) Adam's membership card will get him a job as a chef in a reputable restaurant.
D) The card was tangible proof that Adam belonged to the culinary association.

Answer 2

D
Explanation:In many cases, a service cannot be separated from the person of the seller. In other words, the service must often be produced and marketed simultaneously. Service quality cannot sometimes be completely standardized due to the inability to completely mechanize the service encounter. Tangible representations of the service can serve to overcome the inseparability problem. In this case, the membership card given to Adam by the culinary association would provide tangible proof that he was a member of it.

Question 3

Which of the following refers to activities performed by sellers and others that accompany the sale of a product and that aid in its exchange or its utilization?

A) Service products
B) Raw material extractions
C) Services
D) Manufacturing activities

Answer 3

C
Explanation:Services, as a term, is also used to describe activities performed by sellers and others that accompany the sale of a product and that aid in its exchange or its utilization.

Question 4

Depending on the type of service,the _____ factor may dictate use of direct channels because of the need for personal contact between the buyer and seller.

A) perishability
B) intangibility
C) uniformity
D) inseparability

Question 5

Which of the following explains the reason for the concentration on creation of time and place utility by service marketers?

A) Most services are often produced and marketed simultaneously.
B) The service encounter is distanced from the end benefit achieved.
C) Services cannot appeal to a buyer's sense of touch, taste, smell, sight or hearing.
D) The buyer is guaranteed the ownership of the service that can be used later or given to others.

Question 6

Off-peak pricing:

A) is used to overcome problems associated with the homogeneity of services.
B) is a strategy used to deal with the fluctuating demand for services.
C) leads to service perishability and fluctuating demand.
D) is used to separate the service provider from the service.

Question 7

Which of the following is true of inseparable services?

A) Inseparable services can be distributed only by third-parties.
B) Service quality of inseparable services is completely standardized due to the ability to completely mechanize the service encounter.
C) Inseparable services cannot be produced and marketed simultaneously.
D) The main concern of the marketer of inseparable services is usually the creation of time and place utility.

Question 8

Service products that are totally intangible:

A) do not involve customer participation in any way.
B) can be transported and stored.
C) are nonperishable.
D) are exchanged directly from producer to user.

Question 9

When a service is produced and marketed simultaneously,it is representative of the unique characteristic of a service which is called _____.

A) intangibility
B) perishability
C) inseparablility
D) uniformity

Question 10

Which of the following is an example of an off-peak pricing strategy?

A) An apparel brand charges prices containing odd numbers.
B) A computer manufacturer offers select software and games free of cost.
C) A music band sells its songs online by asking buyers to pay any desired amount for a given commodity.
D) A telecommunication company charges different tariffs at different times.

Question 11

Service products are often difficult to identify,since they:

A) can be sold in the sense of ownership transfer.
B) are bought and consumed at the same time.
C) are composed of tangible elements and cannot be easily transferred.
D) cannot be exchanged directly from producer to user.

Question 12

Which of the following is true of service products?

A) Service products are often difficult to identify.
B) When service products are totally intangible, they are not instantly perishable.
C) Service products are composed of intangible elements which are separable.
D) Service products have different titles.

Question 13

Which of the following is the most basic and obvious difference between goods and services?

A) Perishability
B) Intangibility
C) Separability
D) Palpability

Question 14

Popcorn and Entertainment Ltd.,an international multiplex corporation charges different prices for movie tickets on different days.The tickets are priced lower on week days and are more expensive on weekends.This implies that the corporation uses a(n)______ pricing strategy.

A) upscale
B) off-peak
C) every-day-low
D) odd

Question 15

Charging different prices during different times or days in order to stimulate demand during slow periods is called _____.

A) upscale pricing
B) off-peak pricing
C) every-day-low pricing
D) odd pricing

Question 16

Which of the following is an example of a service product?

A) Buying your dream home
B) Attending a music concert
C) Eating a meal in a restaurant
D) Buying a car

Question 17

Which of the following is a term used to describe activities performed by sellers and others that accompany the sale of a product and that aid in its exchange or its utilization?

A) Securing a bank loan
B) Home security
C) Airlines
D) Warranty on computer equipment

Question 18

Harry took a series of classes to learn how to play the clarinet and the saxophone from a music school that teaches the art at different levels to interested individuals.When he completed the course,he was given a certificate of completion to:

A) emphasize a relationship-marketing strategy.
B) serve as a tangible reminder of the course and to overcome the inseparability aspect of services.
C) make the course seem more homogenous with other learning experiences.
D) ensure that the art of playing these instruments would be preserved.

Question 19

Adrian is served an exotic meal on the flight from New York to Phoenix.Adrian is pleasantly surprised by the quality of the meal and is a very happy customer when he completes his flight.This is an example of a(n):

A) purely tangible service.
B) purely intangible service.
C) goods-service continuum.
D) inseparable service.

Question 20

Fiona uses her credit card to buy groceries at the local supermarket.The card itself is a tangible representation of the service that is being produced and consumed each time the card is being used and this helps to overcome the problem of _____.

A) inseparability
B) perishability
C) tangibility
D) fluctuating

Question 21

Which of the following explains the reason why the quality of services can vary more than the quality of goods?

A) Producers of services have procedures to prevent, identify and correct defects.
B) Most services are human performances and often customized to the needs of the buyer.
C) Producers of goods typically customize products to the needs of the buyer.
D) Unlike services, customers are more likely to purchase defective products.

Question 22

In many marketing services,a _____ relationship,as opposed to a customer relationship,exists between the buyer and seller.

A) dealer
B) partner
C) client
D) supplier

Question 23

Which of the following explains the reason that the definition of what constitutes good service quality is difficult?

A) Services are not labor intensive.
B) Services are examined objectively.
C) Service quality is measured against performance.
D) Service quality is measured against standards.

Question 24

Thomas feels a burning sensation in his chest and consults his physician.After a thorough examination,the physician prescribes an antacid and tells Thomas that he is suffering from indigestion.Thomas and his physician have a _____ relationship.

A) dealer
B) client
C) supplier
D) public

Question 25

Which of the following service qualities includes the willingness or readiness of employees or professionals to provide service?

A) Sympathy
B) Responsiveness
C) Empathy
D) Quality

Question 26

Joshua is an electrician who is known for solving complex electrical issues consistently in households,automobiles,small commercial centers,etc.He is punctual and customers can always reach him anytime of the day.We can assume that Joshua's service quality is _____.

A) empathetic
B) tangible
C) reliable
D) responsive

Question 27

John loves going to The Petunia for dinner.He knows that he will always be seated promptly,his order executed perfectly and the food will be excellent and just to his taste.This is indicative of The Petunia's _____ aspect of service quality.

A) tangibility
B) reliability
C) assurance
D) empathy

Question 28

Tangibles refer to:

A) perishable goods.
B) the physical evidence of the service.
C) the cyclical stability of the service.
D) demographic factors.

Question 29

The retailer of a grocery store,Carla Bauman visited the facilities of a meat-processing warehouse to assess the quality and service of the meat and related processes.Carla was impressed with the cleanliness,hygiene and friendliness of the surroundings and the employees.When she expressed a desire to enter their cold storage,she was pleasantly surprised to be offered warm clothing,as the employees realized she would feel excessively cold in her formal wear.Which service quality determinant is prominent in this instance?

A) Assurance
B) Tangibility
C) Responsiveness
D) Reliability

Question 30

Which of the following is true of service quality?

A) Service quality is often measured against standards.
B) Service quality is not labor intensive and typically uniform in nature.
C) Opinions on quality of services do not change in the face of choices.
D) Customers determine the value of service quality in relation to their particular needs.

Question 31

The airplanes used by Right Air are painted a bright blue and a uniform white stripe runs along the length of the plane.Plush leather seating and fancy food are part of the reason why Right Air has been so successful in recent years.The airplanes represent the _____ aspect of service quality.

A) responsiveness
B) tangible
C) assurance
D) empathy

Question 32

Lana bought a microwave oven from Mortimer.When she reached home,she realized that there was a defect in the piece.She rushed to the store and made a complaint to the sales manager.He immediately noted the complaint and apologized for the inconvenience caused to her.He also assured her that he would replace her product at the earliest.This indicated that the sales manager possessed the service quality of _____.

A) empathy
B) tangibility
C) uniformity
D) responsiveness

Question 33

Two major marketing challenges that professionals in client relationships can face are:

A) fear or hostility and dissatisfied customers.
B) unfamiliar territory and lack of funds.
C) price discrimination and promotional pricing.
D) deceptive pricing and high demand.

Question 34

The proprietor of Kutcher Nursing Centre requires all employees to wear clean uniforms and to maintain hygiene at all times.The equipment is kept clean and there are beautiful plants everywhere.In this example,the proprietor is emphasizing the _____ determinant of service quality.

A) tangible
B) responsiveness
C) assurance
D) empathy

Question 35

Which of the following refers to responsiveness?

A) The willingness or readiness of employees or professionals to provide service.
B) The consistency and dependability of the service performance.
C) The physical evidence of the service.
D) The knowledge and competence of service providers and the ability to convey trust and confidence.

Question 36

Which of the following is true of a client relationship?

A) In a client relationship, the buyer views the seller as someone who has knowledge that is of value.
B) In a client relationship, the buyer does not abide by the advice offered or suggestions provided by the seller.
C) Client relationships cannot be of an ongoing nature.
D) High-quality service delivery by the professional leads to absolutely satisfied customers.

Question 37

The customer perceives the level of service quality as being the function of the magnitude and direction of the gap between:

A) product design and product features.
B) traditional marketing and integrated marketing.
C) expected service and perceived service.
D) economies of scale and cost of production.

Question 38

Service _____ refers to the consistency and dependability of the service performance.

A) responsiveness
B) empathy
C) reliability
D) assurance

Question 39

As a determinant of service quality,reliability involves the:

A) consistency and dependability of the service performance.
B) physical evidence of the service.
C) willingness or readiness of employees or professionals to provide service.
D) knowledge and competence of service providers and the ability to convey trust and confidence.

Question 40

When an employee at Bradbury Resort hears a customer complain,the employee is authorized to take note of the inconvenience caused to the customer.The employee is held personally responsible and must solve the problem.This strategic reaction to customer complaints shows Bradbury Resort's emphasis on _____ as a determinant of service quality.

A) responsiveness
B) tangibility
C) reliability
D) empathy

Question 41

As part of a firm's quality program,properly performed _____ research can yield a wealth of strategic information about customers,the sponsoring company and competitors.

A) customer demographics
B) customer satisfaction
C) customer status
D) customer profile

Question 42

Understanding the expectations and requirements of the customer and determining how well a company and its major competitors are succeeding in satisfying these expectations and requirements are the key issues of:

A) troubleshooting.
B) interim management.
C) customer satisfaction measurement.
D) job satisfaction measurement.

Question 43

How would the owner of a restaurant measure the quality of service provided by its table servers?

A) By measuring profits
B) By comparing them with employees of other restaurants
C) By measuring customer satisfaction
D) By in-depth strategic analysis

Question 44

Malcolm purchased health care insurance from RFG Insurance Ltd.as he was guaranteed that he would be able to claim the expense incurred on his treatment in future.With this guarantee,the insurance corporation was able to win the trust and confidence of Malcolm due to the firm's service quality of _____.

A) intangibility
B) assurance
C) sympathy
D) empathy

Question 45

Which of the following critical components requires management to clearly define the skills the service person must bring to the job?

A) Energetic follow-through process
B) Significant modeling by managers
C) Careful selection process in hiring frontline employees
D) Emphasis on teaching employees to have good attitudes

Question 46

Blueberry Inn considered as many as 30 candidates for each housekeeping or front-desk position.On which of the following critical components of internal marketing was Blueberry Inn focusing on?

A) An emphasis on teaching employees to have good attitudes.
B) A clear, concrete message conveying a particular service strategy.
C) A careful selection process in hiring frontline employees.
D) An energetic follow-through process.

Question 47

Which of the following is true of customer satisfaction measurement?

A) Customer satisfaction measurement programs and questionnaires are designed by customers.
B) Research related to customer satisfaction measurement was performed on a continual basis.
C) Customer satisfaction measurement included evaluation of company's satisfaction performance and excluded competitors' satisfaction performance.
D) Results of all research related to customer satisfaction measurement were made available to customers, but not necessarily to employees.

Question 48

_____ refers to the service provider's efforts to understand the customers' needs and then to provide services as best as possible.

A) Assurance
B) Intangibility
C) Empathy
D) Quality

Question 49

Which of the following is true regarding the aspects of customer satisfaction measurement according to the research conducted?

A) There was a commitment to increasing service quality and customer satisfaction from employees at the top levels within the organization.
B) Top management was primarily responsible for designing CSM programs and questionnaires.
C) Results of all research related to customer measurement were made available to customers, but not necessarily to employees.
D) Evaluations related to customer measurement included both the company's and competitors' satisfaction performance.

Question 50

The senior managers of the housekeeping department of Durrell Boutique Hotel go on rounds to the restaurant,golf course,etc.in order to communicate with their customers and obtain feedback and get suggestions for improvement.Which of the following critical components of internal marketing is evident in this scenario?

A) Emphasis by managers on teaching employees to have good attitudes
B) Energetic follow-through process by managers of an organization
C) Careful selection process in hiring managers who perform well
D) Significant modeling by managers

Question 51

Which of the following is visible in an energetic follow-through process?

A) Managers providing training which focuses on specific social techniques, such as eye contact, smiling, tone of voice, and standards of dress.
B) Managers providing training, support, and incentives necessary to give the employees the capability and willingness to provide quality service.
C) Managers demonstrating the behavior that they intend to reward employees for performing.
D) Managers clearly defining the skills the service person must bring to the job.

Question 52

The employees of the Omnibus Library maintain a great relationship with their customers.They recommend new books and magazines to each customer based on their tastes,and preferences and also on the books previously borrowed by them.They even keep track of customer's birthdays and anniversaries and never fail to wish them on their special days.This shows that employees at the Omnibus Library are displaying _____.

A) assurance
B) tangibility
C) uniformity
D) empathy

Question 53

BNQ Incorporation that specializes in providing accounting services was concerned about whom it hired as its receptionist.Explain the reason for this strategic reaction of the firm.

A) The personal relationship between a customer and the receptionist at the time of the service encounter ultimately determines service quality.
B) The actions of the receptionist will do much to alleviate problems associated with the inseparability of services.
C) Service quality is limited to the relationship between a customer and a company.
D) The character and personality of an organization reflects the character and personality of its top management.

Question 54

What is meant by "significant modeling by managers?"

A) Emphasizing on teaching employees to have a good attitude
B) Managers demonstrating the behavior that they intend to reward employees for performing
C) Clearly defining the skills the service person must bring to the job
D) Careful selection process in hiring frontline employees

Question 55

Which of the following research methods was primarily used in the customer satisfaction measurement research?

A) Focus groups
B) Choice modeling
C) Fieldwork
D) Desk research

Question 56

Elaine decided to sign up for a particular instructor's violin class based on his reputation of being an excellent teacher,who guaranteed that his students would learn to play the violin in the three month course he offered.This implied that the instructor had the service quality of _____.

A) assurance
B) intangibility
C) sympathy
D) empathy

Question 57

Which of the following refers to the knowledge and competence of service providers and the ability to convey trust and confidence?

A) Sympathy
B) Responsiveness
C) Empathy
D) Assurance

Question 58

Research conducted on customer satisfaction measurement programs found that these programs focus on:

A) understanding the expectations and requirements of the customer.
B) the knowledge and competence of service providers.
C) methods of measuring profits.
D) the physical evidence of the service.

Question 59

Which of the following critical components of internal marketing would help people who deliver service to know how their work fits in the broader scheme of business operations?

A) An emphasis on teaching employees to have good attitudes.
B) An energetic follow-through process.
C) A careful selection process in hiring frontline employees.
D) A clear, concrete message conveying a particular service strategy.

Question 60

Which of the following determinants of service quality encompasses the provider's name and reputation; possession of necessary skills; and trustworthiness,believability,and honesty?

A) Sympathy
B) Responsiveness
C) Assurance
D) Empathy

Question 61

Service marketers have often been accused of a lack of marketing innovation.Which of the following describes one of the reasons for the absence of marketing innovation?

A) Emphasis on service as an art
B) Existence of obsolescence
C) Use of marketing aggregation
D) Lack of strong competition

Question 62

ROI Incorporation,which deals in financial services,employs individuals and trains them intensively for a month.The training sessions include enhancing their knowledge of various financial services in the market,the changing situations of the stock market,and the fast-moving business environment.The employees are also trained on how to reach their targets of selling financial services.These steps taken by the firm in training new employees imply that the firm focuses on:

A) teaching employees to have good attitudes.
B) a careful selection process in hiring employees.
C) an energetic follow-through process.
D) significant modeling by managers.

Question 63

A&Z Associates Inc.,an accounting firm,lost its clients to other firms that used the latest technology and software to specialize in separate tasks such as payroll,tax preparations,etc.This implies that the accounting firm:

A) had a limited view of marketing.
B) was subject to obsolescence.
C) had a lack of noncreativity.
D) had a lack of strong competition.

Question 64

The CEO of AOQ Consultancy Services Ltd.conveyed to Amy's supervisor that she had performed extremely well in her latest project.Amy's supervisor sent an e-mail to the entire team regarding the good review received from the CEO praising her work.This implies that AOQ Consultancies Services Ltd.operates by implementing:

A) internal marketing.
B) responsiveness.
C) customer satisfaction measurement.
D) benchmarking.

Question 65

The nurses at Hawthorne Hospital are trained to greet patients cheerfully and maintain good eye contact with them.They are also taught to treat patients in a kind manner and provide them with assistance without hesitation.Which of the following critical components of internal marketing is represented in this scenario?

A) Significant modeling by managers
B) Emphasis on teaching employees to have good attitudes
C) Energetic follow-through process
D) Careful selection process in hiring employees

Question 66

A great advantage for many service industries is the fact that many services,because of their intangibility,are less subject to _____ than goods.

A) obsolescence
B) innovation
C) environment abuse
D) creativity

Question 67

Sunshine Hotels trains its employees in communication skills,housekeeping techniques,body language,and basic standards of dressing.Which of the following critical components of internal marketing is Sunshine Hotels focusing on here?

A) Significant modeling by managers
B) Careful selection process in hiring employees
C) Energetic follow-through process
D) Emphasis on teaching employees to have good attitudes

Question 68

Alfresco Cinema,a movie hall,increased the number of movie screens in order to accommodate the increasing population.However,it failed to focus on finding out the needs,tastes,and preferences of the public.This indicates that the firm had:

A) a lack of strong competition.
B) no obsolescence.
C) a lack of noncreative management.
D) a limited view of marketing.

Question 69

The management of Slurp with a View,a restaurant,is very inflexible and insists on chefs following traditional recipes and frowns upon any experimentation.The management also insists on playing regular music in the restaurant and does not comply with customer requests to change it.This implies that the services rendered by the management of the restaurant:

A) has limited view of marketing.
B) lacks creativity.
C) lacks strong competition.
D) lacks obsolescence.

Question 70

Which of the following is an example of internal marketing conducted by a chain of dog kennels that boards and grooms pets?

A) A public relations article in a local paper describing the training received by the kennel's employees.
B) An e-mail to one of the employees praising him for finding and returning a customer's dog collar.
C) A newspaper ad showing a picture of happy dogs staying at the kennel.
D) A tour of the facilities available at the kennel for elementary school children.

Question 71

Training that teaches employees to have good attitudes focuses on:

A) specific social techniques, such as eye contact, smiling, and tone of voice.
B) incentives necessary to give the employees the capability and willingness to provide quality service.
C) demonstrating the behavior that managers intend to reward employees for performing.
D) clearly defining the skills the service person must bring to the job.

Question 72

A trucking company that uses the slogan "Our people are our driving force" is recognizing the importance of its personnel in providing quality customer service and is practicing:

A) benchmarking.
B) assurance.
C) customer satisfaction measurement.
D) internal marketing.

Question 73

OUB Telecommunications Ltd.has been functioning for a number of years with the same kind of tariffs and offers.The firm still implements off-peak pricing and works according to the traditional management system.It has not introduced any innovative tariff plans.This implies that the organization has:

A) a limited view of marketing.
B) no obsolescence.
C) a lack of creativity.
D) a lack of strong competition.

Question 74

Neo Music Café regularly holds concerts that feature upcoming as well as well-acclaimed artists.The café is a big hub for music-lovers.However,the café lacks the facility of online booking and only allows booking at the venue.The manager of the café is reluctant to adopt newer technology.This implies that Neo Café has:

A) a limited view of marketing.
B) no obsolescence.
C) a lack of noncreative management.
D) a lack of strong competition.

Question 75

Which of the following is responsible for making the comprehension of service marketing difficult?

A) Demand for the service
B) Innovation and ingenuity
C) Factors of intangibility and inseparability
D) Obsolescence of services

Question 76

Until the advent of satellite television,cable television providers acted as monopolies in their geographic areas and did little to change the type of service offered or the service offering in spite of customer demands.Which of the following explains the reason behind the attitude exhibited by these cable companies?

A) Lack of strong competition
B) High degree of obsolescence
C) Absence of a growth strategy
D) Emphasis on service as an art

Question 77

The continual process by which managers actively encourage,stimulate and support employee commitment to the company,the company's goods and services and the company's customers is known as:

A) customer satisfaction measurement.
B) assurance.
C) internal marketing.
D) responsiveness.

Question 78

In the past two decades the banking,financial services,railroad,cable,airline,telecommunication industries and utilities have all been:

A) transformed into regulated monopolies.
B) faced with little or no competition.
C) deregulated in varying degrees.
D) experiencing declining profits.

Question 79

Since service firms are often not faced with _____,they often fail to recognize the need for change.

A) innovation
B) competition
C) creativity
D) obsolescence

Question 80

Which of the following is a reason for the lack of innovative marketing on the part of service marketers?

A) Strong competition
B) No obsolescence
C) Broad view of marketing
D) Excessive creative management