Deck 12: Services Marketing

Question 1

There are several ways of providing consumers authentic offerings: (1)__________; (2)provide personal interaction rather than automation; (3)create a social process that allows consumers to share their interests; and (4)manage any dimension of their reputation that might influence perceptions of authenticity.

A) allow for adaptability at every customer contact point
B) back up claims with scientific research, market research, or governmental documentation
C) facilitate customer customization
D) do thorough research at each stage of the new-service development process
E) obtain personal endorsements from celebrity spokespeople and other opinion leaders

Answer 1

C

Question 2

Services refer to

A) ideas that consist of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.
B) intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
C) philanthropic activities performed in without expectations of monetary remuneration.
D) any intangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.
E) any tangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.

Answer 2

B

Question 3

There are several ways of providing consumers authentic offerings: (1)facilitate customization; (2)provide personal interaction rather than automation; (3)__________; and (4)manage any dimension of their reputation that might influence perceptions of authenticity.

A) allow for adaptability at every customer contact point
B) back up claims with scientific research, market research, or governmental documentation
C) do thorough research at each stage of the new-service development process
D) obtain personal endorsements from celebrity spokespeople and other opinion leaders
E) create a social process that allows consumers to share their interests

Answer 3

E

Question 4

Which of the following statements about services is MOST accurate?

A) Although a major contributor to the GDP nationally, services play only a minor role in GDP on a global scale.
B) Whether tangible or not, the marketing of services is exactly the same as the marketing of products or ideas since they both satisfy customer needs.
C) Almost 35% of all jobs created in the United States are in the services sector.
D) In the U.S., more than 47% of the GDP comes from services.
E) There is much more in common with the marketing of services and business products than there is between the marketing of services and consumer products.

Question 5

There are several ways of providing consumers authentic offerings: (1)facilitate customization; (2)provide personal interaction rather than automation; (3)create a social process that allows consumers to share their interests; and (4)__________.

A) allow for adaptability at every customer contact point
B) back up claims with scientific research, market research, or governmental documentation
C) manage any dimension of a firm's reputation that might influence perceptions of authenticity
D) do thorough research at each stage of the new-service development process
E) obtain personal endorsements from celebrity spokespeople and other opinion leaders

Question 6

Intangible activities or benefits that an organization provides to satisfy consumers' need in exchange for money or something else of value are referred to as __________.

A) virtual experiences
B) intangible benefits
C) intangible goods
D) product concepts
E) services

Question 7

James Gilmore and Joseph Pine explain,"The more contrived the world seems,the more we all demand what is real." In terms of marketing,this simply means

A) consumers cannot really tell the difference between illusion and reality.
B) reality aside, give customers what they think they want.
C) good marketing can make even the impossible-possible.
D) what we want and what we can have are two totally different things.
E) consumers want engaging, personal, memorable, and authentic offerings.

Question 8

Because services tend to be a(n)__________ rather than an object,they are much more difficult for consumers to evaluate.

A) opportunity
B) performance
C) adventure
D) risk
E) decision

Question 9

way to provide consumers authentic offerings is to provide personal interaction.Which of the following actions provides the best example of this approach?

A) Geico advertises that its insurance specialists are available 24/7 (24 hours per day, 7 days per week).
B) iPods allow customers to create personalized playlists.
C) YouTube, Twitter, and Facebook create a forum for expressing personal experiences.
D) Cirque du Soleil combines the original elements of street performance, the circus, and live theater.
E) Bloomingdales provides dressing rooms with huge electronic mirrors.

Question 10

There are several ways of providing consumers authentic offerings: (1)facilitate customization; (2)__________; (3)create a social process that allows consumers to share their interests; and (4)manage any dimension of their reputation that might influence perceptions of authenticity.

A) allow for adaptability at every customer contact point
B) back up claims with scientific research, market research, or governmental documentation
C) do thorough research at each stage of the new-service development process
D) provide personal interaction rather than automation
E) obtain personal endorsements from celebrity spokespeople and other opinion leaders

Question 11

help consumers assess and compare services,marketers try to make them __________ or show the benefits of using the service.

A) tangible
B) intangible
C) consistent
D) timely
E) measurable

Question 12

__________ focuses on performing services that provide a unique experience.

A) intangibility economy
B) experience economy
C) virtual economy
D) magic of marketing
E) authentic economy

Question 13

Figure 12-1
shown in Figure 12-1 above,which of the following statements is MOST accurate?

A) Services are a smaller part of the gross domestic product than are goods.
B) In 2010, goods represent a larger part of the gross domestic product than services.
C) In 1995, services were worth almost $1 billion.
D) Until 1980, goods and services contributed almost equally to the gross domestic product (GDP).
E) In 2010, goods were 50 percent of the GDP.

Question 14

Intangible items such as airline trips,financial advice,or telephone calls that an organization provides to consumers are referred to as

A) production goods.
B) support products.
C) services.
D) goods.
E) benefits.

Question 15

Consumers are no longer content with affordable,high quality purchases; they want __________.

A) offerings that reflect their self-image
B) consistent quality
C) to be treated as special one-of-a-kind buyers
D) total customer satisfaction
E) to feel as if they are in control of the entire purchasing process

Question 16

four I's of services consist of

A) inflexibility, intangibility, inconsistency, and inseparability.
B) intangibility, inconsistency, inseparability, and inventory.
C) incompatibility, inconsistency, inseparability, and inventory.
D) invisibility, inconsistency, inseparability, and intangibility.
E) inflexibility, incongruity, inconsistency, and inventory.

Question 17

Which of the following statements about services is MOST accurate?

A) Whether tangible or not, the marketing of services is exactly the same as the marketing of products or ideas since they both satisfy customer needs.
B) Although a major contributor to the GDP nationally, services play only a minor role in GDP on a global scale.
C) Services represent a large export business; it is one of the few areas where the United States has a trade surplus.
D) Very few jobs in the United States are in the services sector.
E) There is much more in common with the marketing of services and business products than there is between the marketing of services and consumer products.

Question 18

intangibility element of a service refers to the fact that it

A) has value that can only be determined by using subjective criteria.
B) can't be held, seen, or touched before the purchase decision.
C) cannot be described, only experienced.
D) can maintain or accumulate inventory.
E) can be objectively evaluated.

Question 19

There are four unique elements to services-intangibility,inconsistency,inseparability,and inventory-which are referred to as the __________.

A) service mix
B) four I's of services
C) service matrix
D) span of services
E) service continuum

Question 20

four I's of services consist of

A) intangibility, inconsistency, inseparability, and innovation.
B) intangibility, inconsistency, inseparability, and impression.
C) intangibility, inconsistency, inseparability, and inventory.
D) intangibility, inventory, innovation, and impression.
E) intangibility, inconsistency, innovation, and impression.

Question 21

Singapore Airlines ad in the textbook shows a traveler in the airline's new seats and also emphasizes food and other amenities to overcome the __________ of its service.

A) incongruity
B) inconsistency
C) inventory costs
D) inseparability
E) intangibility

Question 22

Developing,pricing,promoting,and delivering services are challenging because the quality of the service is often inconsistent.Organizations attempt to reduce this inconsistency by

A) paying higher incentives to employees to encourage satisfactory performance.
B) reducing incentives available to employees because of poor performance.
C) reducing the customer contact points in the service delivery process.
D) providing standardization and training.
E) exercising better hiring practices.

Question 23

Students from Berry College attended a performance at nearby Shorter College and were extremely impressed with the dance troupe that was the opening act.As soon as the students returned to Berry,they made arrangements for the entertainers to appear on their campus.On the day of the concert,the venue was packed with students,but the quality of the performance was much poorer than they had seen at the Shorter campus.The Berry students' disappointment was the direct result of which characteristic of services?

A) inconsistency
B) impressionability
C) intangibility
D) invisibility
E) uniqueness of the service

Question 24

Consumers have more difficulty evaluating services than they do products; the difficulty results from the

A) intangibility of services.
B) incongruity of services.
C) inseparability of services.
D) inflexibility of services.
E) interdependence of services.

Question 25

brochure for Spa Sydell has photographs of people enjoying the various spa amenities.By seeing the pictures of what is available at the spa,a customer has a better idea of what she is buying.Spa Sydell uses a brochure to help customers deal with the __________ that is associated with using the service.

A) incongruity
B) inconsistency
C) inventory costs
D) inseparability
E) intangibility

Question 26

Andrea Arenas is the owner of 2 Places at 1 Time,a concierge company.She and her staff of 60 perform everyday services,such as walking the dog,picking up cleaning,waiting for the repairman,and going to the post office,for people who are too busy to perform these simple acts.She is such a caring person and so well liked that her customers recommend her instead of her business to people who are looking for someone to perform similar services.Their inability to see the distinction between Arenas and her 2 Places at 1 Time concierge service is an example of which unique characteristic of services?

A) intangibility
B) impressionability
C) incongruity
D) inseparability
E) inflexibility

Question 27

Services depend on the people who provide them.As a result,their quality varies with each person's capabilities and day-to-day job performance.This element of services is referred to as __________.

A) variation
B) differentiation
C) evaluation
D) inconsistency
E) intangibility

Question 28

Sarah has a backache due to overexertion.She believes a massage would loosen her back muscles and make her feel better.She is concerned because a massage,unlike a pair of shoes,cannot be held,touched,or seen before she buys it.Which characteristic of services is she concerned about?

A) incongruity
B) inconsistency
C) inventory costs
D) inseparability
E) intangibility

Question 29

help consumers assess and compare services,marketers try to make them tangible or __________.

A) temporal
B) consistent
C) adaptable
D) measurable
E) show the benefits of using the service

Question 30

Inconsistency of services refers to the fact that

A) there is no regulation of service industries in terms of basic standards of quality.
B) the quality of service provided by a firm is often inconsistent with its image.
C) the performance of one employee may vary from the performance of another employee even though the same firm employs both.
D) training and standardization of service delivery procedures cannot be accomplished.
E) services have a varying degree of durability.

Question 31

graduated high school and takes his mom to dinner after the ceremony.At the restaurant,the server fills their water glasses,checks on their table,and takes care of their requests.Don notes that the last time he was at this same restaurant,the experience was much worse.This scenario illustrates the ___________ of services.

A) impressionability
B) intangibility
C) inseparability
D) uniqueness of the service
E) inconsistency

Question 32

Thelma got her drive-thru order at the fast-food restaurant,she thought Louise,the employee who took her money and gave her order,was cold and unfriendly.The food tasted good but was overshadowed by Louise's demeanor.Every time she has the opportunity,Thelma says something derogatory about the restaurant because she does not distinguish the service deliverer (Louise,the employee who prepared her food and gave it to her)from the service (the fast-food restaurant).Thelma is having a problem with which unique characteristic of services?

A) intangibility
B) impressionability
C) incongruity
D) inseparability
E) inflexibility

Question 33

Inseparability in services means consumers

A) see little variation from one service provider in an industry to another.
B) are unable to differentiate price from quality.
C) cannot evaluate a service until it is being used.
D) cannot separate the service from the deliverer of the service.
E) cannot separate themselves from the deliverer of the service.

Question 34

Andrea Arenas is the owner of 2 Places at 1 Time,a concierge company.She and her staff of 60 perform everyday services,such as walking the dog,picking up cleaning,waiting for the repairman,and going to the post office,for people who are too busy to perform these simple acts.One way she tries to ensure ___________ of services for her regular customers is to make sure that the same well-trained person is always assigned to work for them.

A) tangibility
B) consistency
C) congruity
D) flexibility
E) tangibility

Question 35

banks are closed,they can offer value to their customers through automatic teller machines (ATMs).This self-service technology also comes with a down side since the ATMs are perceived as being less __________.

A) convenient
B) reliable
C) personal
D) safe
E) accurate

Question 36

Organizations attempt to reduce the inconsistency of service delivery through

A) higher incentives to employees for satisfactory performance.
B) pay reductions for poor employee performance.
C) the reduction of customer contact points in the service delivery process.
D) standardization and training.
E) employing technology.

Question 37

Developing,pricing,promoting,and delivering services is challenging because the quality of a service is often

A) inseparable.
B) inconsistent.
C) inventoried.
D) tied to a product.
E) independent of the quality delivered.

Question 38

Before moving out of their apartment,Brad and Kim Westgate decided to have their carpets cleaned by ServiceMaster,a company specializing in professional carpet cleaning.The carpet cleaners arrived at Brad and Kim's apartment,unpacked their equipment,cleaned the carpets,packed up their tools,and drove away in their bright yellow van.The service provided by ServiceMaster could not be held,touched,or seen before the purchase decision.This scenario illustrates the __________ of services.

A) inconsistency
B) inseparability
C) inventory costs
D) intangibility
E) interdependence

Question 39

help consumers assess and compare its airline service,Frontier Airlines uses personable animal characters in its advertising to announce and describe benefits,such as leather seats and "stretch" seating,to help deal with the

A) intangibility of the service.
B) incongruity of the service.
C) inseparability of the service.
D) inflexibility of the service.
E) interdependence of the service.

Question 40

Betty Smith operates a wedding preparation service that aids brides-to-be in the planning of their weddings.To maintain a quality image and a standardized offering,Betty provides extensive training for each of her employees.What unique aspect of services is Betty trying to address?

A) impressionability
B) intangibility
C) inconsistency
D) inseparability
E) uniqueness of the service

Question 41

situation that occurs when a service provider is available but there is no demand is referred to as

A) off-peak pricing.
B) idle production capacity.
C) static demand.
D) capacity management.
E) excess inventory.

Question 42

are inventory of services different from that of goods?

A) time is less important to customers of services than customers of goods
B) many times, the service provider is unavailable when there is a demand for the service
C) there are costs associated with the handling of service inventory
D) service inventory can be reduced through a straight salary compensation system
E) with goods, many items are perishable

Question 43

Which of the organizations listed below has the lowest inventory carrying cost?

A) railroad
B) hotel
C) long-term care facility
D) amusement park
E) insurance companies

Question 44

__________ cost of a service is the cost of paying the person used to provide the service along with any needed equipment.

A) intangibility
B) inconsistency
C) inseparability
D) inventory
E) hidden

Question 45

inventory carrying costs of airlines is high because they

A) use a straight salary compensation plan for the large numbers of flight attendants.
B) high-salaried pilots and very expensive equipment.
C) allow baggage personnel to work overtime.
D) decrease the number of workdays per week, but increase the hours per day.
E) use a commission compensation system for their reservationists.

Question 46

inventory carrying costs of real estate agencies are low because they

A) use a straight salary compensation plan.
B) have employees who work on commission need little inexpensive equipment.
C) allow personnel to work any hours a day and any number of days per week.
D) decrease the number of workdays per week, but increase the hours per day.
E) are responsible for their own training, transportation, and supplies.

Question 47

range of offerings from the tangible to the intangible or product-dominant to service-dominant is referred to as the

A) service continuum.
B) product continuum.
C) tangibility line.
D) inseparability span.
E) customer contact audit.

Question 48

retailers hire additional sales help during the holiday season.This is an example of how service companies deal with __________.

A) shrinkage
B) seasonal absenteeism
C) economic recessions
D) derived demand
E) inventory carrying costs

Question 49

emergency room staff in Houston's largest hospital is surprised and pleased when a four-day Fourth of July weekend brings in few accident victims for treatment.They know from experience that such public holidays usually have high rates of accidents.For the hospital's business office,the lower demand for the emergency room services means

A) a break in the service continuum.
B) its services are no longer tangible.
C) its services can be separated from the staff.
D) the hospital has idle production capacity.
E) an opportunity for gap analysis.

Question 50

production capacity refers to

A) the minimum number of customers that a service provider can serve and still remain profitable.
B) the maximum number of customers that a service provider must serve in order to remain profitable.
C) the ability of a service provider to redirect its efforts so even when there is no primary demand, employees are still able to meet selective demand.
D) a situation that occurs when a service provider is available but there is no demand for the service.
E) a situation that occurs when the primary demand for a service exceeds that number of service deliverers available to meet that demand.

Question 51

Which of the organizations listed below has the lowest inventory carrying cost?

A) restaurant
B) automobile repair
C) amusement parks
D) employment agencies
E) animal hospital

Question 52

Figure 12-3
According to the service continuum shown in Figure 12-3 above,which of the following offerings has the highest level of intangibility?

A) tailored suit
B) advertising agency
C) tutoring service
D) fast-food restaurant
E) salt

Question 53

Western Airlines operates five flights daily between Chicago and Phoenix during the winter.One flight leaves Phoenix at 12:10 PM.The plane,a Boeing 737,has a capacity of 120 passengers.During the past month,the flight has averaged only 24 passengers,a load factor of 20 percent.Once the plane takes off,the other 96 seats generate no sales and profits to the airline for that flight.What unique aspect of services does this situation describe?

A) incongruity
B) intangibility
C) inconsistency
D) inseparability
E) idle production capacity

Question 54

inventory costs of services include

A) equipment and training costs.
B) management and material costs.
C) service delivery and spoilage costs.
D) salary of service provider and equipment costs.
E) salary of service provider and training costs.

Question 55

Andrea Arenas is the owner of 2 Places at 1 Time,a concierge company.She and her staff of 60 perform everyday services such as walking the dog,picking up cleaning,waiting for the repairman,and going to the post office for people who are too busy to perform these simple acts.She has often been hired by major corporations to perform services for their harried executives,and now many of her major clients are providing perks like her service to their employees.Her staff is overworked and she is hiring more employees to fill demand.Arenas is not experiencing __________; in fact,all of her employees are providing the maximum level of services to customers.

A) off-peak pricing
B) idle production capacity
C) static demand
D) capacity marketing
E) capacity inventory

Question 56

highest inventory carrying costs would most likely be for which of the following services?

A) real estate agencies
B) dry cleaners
C) auto repair centers
D) amusement parks
E) hospitals

Question 57

Inventory carrying costs can be reduced by

A) using a straight salary compensation plan.
B) hiring additional full-time personnel.
C) allowing personnel to work overtime.
D) increasing the hours worked per week.
E) using a commission compensation system.

Question 58

Although many people love the self-service technology that allows Redbox to provide DVDs 24 hours a day,many people missed the personal interaction and recommendations from their local clerks from Blockbuster or an independent video store.Redbox confronted this issue by creating a "Redblog" where customers could share their opinions,feelings,and experiences.This is an example of confronting the

A) inventory aspects of services.
B) inseparability aspects of services.
C) inconsistency aspects of services.
D) intangibility aspects of services.
E) impressionability aspects of services.

Question 59

production capacity refers to

A) a situation where the demand for exceeds the availability of service providers and as a result, no services can be offered.
B) when the supply of service providers exceeds the primary demand for the service.
C) a situation where a service provider is available but there is no demand for the service.
D) integrating the service component of the marketing mix with efforts to influence consumer demand.
E) the potential profits of one service provider serving multiple clients at the same time.

Question 60

range of offerings from the tangible to the intangible or product-dominant to service-dominant is referred to as the

A) product continuum.
B) service continuum.
C) tangibility line.
D) inseparability span.
E) customer contact audit.

Question 61

Equipment-based services do not have the marketing concerns of

A) intangibility.
B) inseparability.
C) inventory.
D) inconsistency.
E) immeasurability.

Question 62

Figure 12-3
According to the service continuum shown in Figure 12-3 above,which of the offerings has an almost perfect balance of tangible and intangible attributes?

A) tailored suit
B) tutoring service
C) dog food
D) fast-food restaurant
E) movie theater

Question 63

do a dry cleaning service,an automated carwash,and a taxi service have in common?

A) They are all tangible services.
B) They are all people-based services.
C) None of them has problems with idle production capacity.
D) They never use off-peak pricing.
E) They are all equipment-based services.

Question 64

do a security guard,a plumber,and a management consultant share in common?

A) They are all tangible services.
B) They are all people-based services.
C) They do not have problems with idle production capacity.
D) They are all equipment-based services.
E) They never use off-peak pricing.

Question 65

Which of the following is the best example of a people-based service?

A) movie theaters
B) airlines
C) advertising agency
D) vending machines
E) taxis

Question 66

Services can be classified according to whether they are __________,they are profit or nonprofit organizations,or they are government sponsored.

A) national or global
B) use independent contractors
C) privately owned or publicly owned
D) delivered by people or equipment
E) owned by individuals or corporations

Question 67

Which of the following is the best example of a people-based service?

A) a lawyer
B) movie theaters
C) airlines
D) vending machines
E) taxis

Question 68

categories for equipment-based services include

A) unskilled labor, those operated by relatively unskilled operators, and automated (self-serve).
B) professionals, those operated by relatively unskilled operators, and automated (self-serve).
C) automated (self-serve), those operated by relatively unskilled operators, and those operated by skilled operators.
D) unskilled labor, skilled labor, and professionals.
E) those operated by skilled operators, unskilled labor, and professionals.

Question 69

Recently,many nonprofit organizations such as the American Red Cross

A) were eager to use marketing practices.
B) thought that marketing would limit the profitability of the nonprofit organization.
C) could not afford marketing activities.
D) thought that marketing activities would create excess demand.
E) have increased their use of marketing practices.

Question 70

Equipment-based services do not have the marketing concerns of inconsistency because __________ have been removed from the provision of the service.

A) product liability
B) people
C) learning requirements
D) automation
E) accessories

Question 71

Services can be classified according to whether they are delivered by people or equipment,whether they are for profit or nonprofit organizations,and whether they are __________.

A) government sponsored
B) a national organization or a global organization
C) privately owned or publicly owned
D) performed by independent contractors
E) owned by individuals or corporations

Question 72

Which of the following is the best example of an equipment-based service?

A) lawn care
B) doctors
C) taxis
D) lawyers
E) janitorial services

Question 73

nonprofit organization may pay taxes if

A) excess revenues exceed 18 percent of the budget.
B) the organization is not considered to be religious institution.
C) revenue is received from overseas subsidiaries.
D) revenue-generating holdings are not directly related to the organization's core mission.
E) money is spent on research and development, then it is taxed at a significantly lower rate.

Question 74

Equipment-based services like ATMs,online brokerage firms,and automated car washes,do not have the marketing concerns of

A) inconsistency.
B) intangibility.
C) inseparability
D) inventory.
E) deliverability.

Question 75

Services can be classified by

A) their method of delivery.
B) their use of idle capacity time.
C) the nature of their ownership.
D) their location on perceptual maps.
E) organizational reach.

Question 76

do an automated carwash,a limousine service,and an airline have in common?

A) They are all tangible services.
B) They are all people-based services.
C) None of them has problems with idle production capacity.
D) They are all equipment-based services.
E) They never use off-peak pricing.

Question 77

Services can be classified according to whether they are delivered by people or equipment,they are __________,or they are government sponsored.

A) national or global
B) use independent contractors
C) privately owned or publicly owned
D) owned by individuals or corporations
E) for profit or nonprofit organizations

Question 78

categories for equipment-based services include __________.

A) unskilled labor, skilled labor, and professionals
B) volunteers, unskilled and skilled operators, and professionals
C) those operated by relatively unskilled operators, those operated by skilled operators, and unskilled labor
D) those operated by skilled operators, unskilled labor, and professionals
E) automated, those operated by relatively unskilled operators, and those operated by skilled operators

Question 79

nonprofit organizations,excesses in revenue over expenses are

A) taxed at one-half the rate for profit organizations.
B) distributed equally to all of the organization's shareholders.
C) returned to the organization's treasury for continuation of the service.
D) taxed at a reduced rate if the revenue is to be used in keeping with the organization's core mission.
E) not taxed at all unless it is a religious organization.

Question 80

categories for people-based services include __________.

A) volunteers, skilled operators, and professionals
B) unskilled labor, skilled labor, and professionals
C) those operated by skilled operators, unskilled labor and skilled labor
D) those operated by relatively unskilled operators, those operated by skilled operators, and unskilled labor
E) automated, those operated by skilled operators, and professionals