Deck 12: The Marketing of Services

Question 1

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

A) The stay at the good motel in a city.
B) Permission from the hotel to pay for your stay with a credit card.
C) The toll-free number you call to check on your motel reservation.
D) The free continental breakfast that comes with your room.

Answer 1

A
Explanation: Service products includes what can be considered almost pure services, such as insurance, banking, entertainment, airlines, health care, telecommunications, and hotels.

Question 2

Service products such as bank loans or home security are _____, and often difficult to identify since they come into existence at the same time they are bought and consumed.

A) tangible
B) intangible
C) non-existent
D) substantial

Answer 2

B
Explanation: Service products, such as a bank loan or home security, that are intangible, or at least substantially so. Service products are often difficult to identify, since they come into existence at the same time they are bought and consumed.

Question 3

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 tangible elements and cannot be easily transferred.
D) cannot be exchanged directly from producer to user.

Answer 3

B
Explanation: Service products are often difficult to identify, since they come into existence at the same time they are bought and consumed.

Question 4

Variations in quality and variance from standards can be corrected before customers purchase products. This relates to the _____ characteristic of goods.

A) perishability
B) customer effort
C) uniformity
D) intangibility

Question 5

Totally intangible services are exchanged directly from producer to user, cannot be transported or stored, and are almost instantly perishable. These services are exemplified by all of the following, except

A) green fees for a golf course membership.
B) a taxi ride to office.
C) alterations made to a suit.
D) a fleet of airplanes.

Question 6

The nurses in the pediatric unit of a hospital wear brightly colored smocks, the walls are decorated with cheerful murals, there are rocking chairs in the rooms, and a stock of children's video games to be played in the recreation rooms. All of these items are used to show that the hospital cares about children and does not want them to be intimidated by the environment. These friendly gestures are a way to deal with which characteristic of services?

A) Inseparability
B) Homogeneity
C) Fluctuating demand
D) Intangibility

Question 7

Which of the following statements about the service sector is true?

A) Over the next two decades the service sector in the U.S. will decline in monetary importance.
B) The spending on service sector accounts for fewer than 30 percent of all jobs in the U.S.
C) The fastest-growing segment of the American economy has been the production of tangibles and not the performance of services.
D) The service sector in the U.S. produces a balance-of-trade surplus annually and is expected to be responsible for all net job growth in the foreseeable future.

Question 8

Goods are usually produced and sold by different people. This illustrates that goods are not

A) inseparable.
B) uniform.
C) perishable.
D) intangible.

Question 9

Which of the following is the best example of a service performed by sellers and others that accompanies the sale of a product and that aids in its exchange or its utilization?

A) A bank loan
B) Home security
C) Airlines
D) Financing an automobile

Question 10

Identify the incorrect statement concerning services.

A) Customers are often heavily involved in their production.
B) They often involve long-term personal relationship between buyers and sellers.
C) They cannot be inventoried, stored, or transported.
D) Customers own the services and they can be used, resold, or given to others.

Question 11

The obvious basic difference between goods and services is the _____ of services

A) imperishability
B) intangibility
C) separability
D) palpability

Question 12

Services are composed of intangible elements that are inseparable. They cannot be sold in the sense of ownership transfer, have no title, and usually involve

A) hierarchies and verticals.
B) possession.
C) customer participation.
D) ownership.

Question 13

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

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

Question 14

Service products that are totally intangible

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

Question 15

What, according to the American Marketing Association, is the term used for describing activities performed by sellers and others that accompany the sale of the product and that aid in its exchange or its utilization?

A) Production
B) Design
C) Fabrication
D) Services

Question 16

Which of the following statements relating to goods is true?

A) The customer after the purchase of goods owns only memories, outcomes, or feelings such as those experienced on an airline flight
B) For goods, variations in quality and variance from standards can be corrected before customers purchase products.
C) Goods can be used only at the time they are offered. They cannot be inventoried, stored, or transported.
D) Customers are often heavily involved in the production of goods.

Question 17

Service characteristics like intangibility, inseparability, perishability etc. often have a significant impact on

A) tracking customer grievances.
B) production design and development.
C) marketing program development.
D) the research and development technology.

Question 18

Over the course of the past 40 years, the fastest growing segment of the American economy has been the

A) independent management of major accounts.
B) production of tangible products.
C) performance of services.
D) merger and acquisition of businesses.

Question 19

Identify the incorrect statement concerning goods.

A) Customers are often heavily involved in their production.
B) Customer own objects that can be used, resold, or given to others.
C) It is usually produced and sold by different people.
D) It often involves an impersonal short-term relationship although in many instances relationship strength and duration are increasing.

Question 20

If you were asked to distinguish between a service and a good, you could correctly say

A) the customer's opinions are valued in the production of goods, but not in the deliverance of services.
B) that collaboration between buyer and seller is highest for goods.
C) a greater number of brands are available for services than brands available for goods.
D) the buyer owns the good after its purchase, but leaves with an experience after a service transaction.

Question 21

In many cases, a service cannot be separated from the person of the seller because the service must be produced and marketed simultaneously. This simultaneous production and marketing makes creation of _____ the main concern of the marketer.

A) time and place utility
B) circuitous channels of distribution
C) storage space
D) variation in quality

Question 22

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 23

Harry took a series of education classes to learn how to make minor repairs to his car and other types of gasoline-powered engines. 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 problem of services.
C) make the course seem more homogenous with other learning experiences.
D) serve as a reminder of the simplicity of the course undertaken, and the intangible benefits gained by fixing one's broken down car oneself.

Question 24

What strategy is being used when a hospital's maternity ward runs ads that emphasize its comfortable rooms and supportive staff?

A) The service encounter is being distanced from the end benefit achieved.
B) The tangible aspects associated with the service are being stressed.
C) End benefits resulting from completion of the service encounter are being accentuated.
D) The customer is being guaranteed the ownership of the service that can be used or given to others.

Question 25

Which of the following statements about inseparable services is true?

A) These services must be produced and consumed simultaneously.
B) Inseparability of services does not impact the selection of channels of distribution.
C) Indirect channels are the only feasible channels of distribution for inseparable services.
D) Inseparable services can be inventoried.

Question 26

If you want to talk to a therapist to learn how you could improve your relationship with your mother, you could visit www.here2listen.com, an online counseling service that is available 24-hours a day. In spite of the web site advertising that Internet counseling is the best for time-starved America, is immediate, and is focused, the counseling service is mostly used between 6 p.m. and midnight on weekdays. Although this is a web-based business, it still must deal with the _____ characteristic of services.

A) tangibility
B) time and place utilization
C) homogeneity
D) perishability and fluctuating demand

Question 27

Which of the following observations concerning services is true?

A) It can be placed in inventory for use at another time.
B) The customer owns services, and they can be used, resold, or given to others.
C) Because of inseparability and high involvement on the part of the buyer, each service may be unique, with the quality likely to vary.
D) It often involves an impersonal short-term relationship although in many instances relationship strength and duration are increasing.

Question 28

Why is the creation of time and place utility usually the main concern for services marketers?

A) Because of the simultaneous production and marketing of most services.
B) Because the buyer is guaranteed the ownership of the service that can be used later or given to others.
C) Because the service encounter is distanced from the end benefit achieved.
D) Because services cannot appeal to a buyer's sense of touch, taste, smell, sight, or hearing.

Question 29

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

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

Question 30

Identify the incorrect statement concerning inseparable services.

A) Inseparable services cannot be inventoried, and thus direct sale is the only feasible channel of distribution.
B) Service quality is sometimes unable to be completely standardized due to the inability to completely mechanize the service encounter.
C) Tangible representations of the service can serve to overcome the inseparability problem.
D) Inseparability of services does not impact issues dealing with the selection of channels of distribution and service quality.

Question 31

Which of the following is not a stated characteristic of either goods or services?

A) Inseparability
B) Extendibility
C) Perishability
D) Customer Effort

Question 32

Off-peak pricing

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

Question 33

Because of inseparability and high involvement on the part of the buyer, each service may be unique, while the quality will likely vary. This statement best exemplifies which characteristic of services?

A) Intangibility
B) Uniformity
C) Customer effort
D) Client relationship

Question 34

Melanie had hoped to earn some money this summer by taking care of her neighbor's pets, plants, and lawns while they went away on vacations. She had ten weeks of summer vacation in which she hoped to make about $50 a week. In the first five weeks she made almost $250 and was exhausted by the end of them. She then didn't work for the remaining weeks. The weeks that Melanie did not work are an example of lost business due to

A) service tangibility.
B) service tangibility and inseparability.
C) service perishability and fluctuating demand.
D) creating form, time, and place utility for a service.

Question 35

When Ruth arrived at the Cedartown Spa, she was given a membership card and access to the entire health club's facility. She still enjoys using the exercise equipment at the spa and participating in its exercise classes even though she hasn't lost any weight since she joined. Which of the following statements about the relationship of Ruth and her club is true?

A) The card gives Ruth tangible proof that she belongs there and shows that the service is being produced and consumed each time she uses it to get in to the exercise room.
B) Ruth will stop going to the spa because it has not provided her with any tangible evidence of its service.
C) The services the spa provides to Ruth are an example of purely intangible services.
D) Weight loss is the intangible evidence of services being provided by the spa.

Question 36

Due to their inseparability, services

A) are typically marketed through indirect channels of distribution.
B) can be inventoried.
C) are produced and consumed simultaneously.
D) create form utility.

Question 37

A (n) _____ is an application available via the net that conducts transactions and is hosted by ISPs/ASPs.

A) e-service
B) web mailer
C) extranet
D) product software

Question 38

Discounts given for weekend calling, Saturday night stay-overs, early-bird dinners, or winter cruises are all examples of efforts made by service providers to redistribute demand, and best describe

A) off-peak pricing.
B) odd pricing.
C) rate of return pricing.
D) markup pricing.

Question 39

Services are perishable and markets for most services fluctuate either by season, days, or time of day. All of the following represent business that are lost forever due to the perishable nature of services, except

A) unused telephone capacity and electrical power.
B) vacant seats on planes, trains, buses, and in stadiums.
C) time spent by catalog service representatives waiting for customers to reach them.
D) unsold winter apparel on a given day.

Question 40

The Workshoppe is a company that teaches etiquette to Silicon Valley executives and anyone else interested. It runs a simple print ad campaign in which the owner shows a computer geek stereotype before the course wearing his napkin as a bib, licking his fork, and generally panicking. Next to that picture is one with the same individual after the course. The course graduate looks comfortable sitting at a table with a setting of twelve forks and three glasses, and correctly eating a Caesar salad. Identify the strategy employed here to overcome the problems associated with service intangibility.

A) The customer has been guaranteed the ownership of the service that can be used or given to others.
B) The service encounter has been distanced from the end benefit achieved.
C) The etiquette service has been distinguished from all other services.
D) End benefits resulting from completion of the service encounter have been accentuated.

Question 41

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 42

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 43

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 44

Which service quality determinant is the auto repair shop emphasizing when the owner requires all employees to wear clean uniforms and to keep their workplaces in an organized manner?

A) Tangibles
B) Responsiveness
C) Reliability
D) Empathy

Question 45

Which of the following statements about service quality is true?

A) A firm may not even realize that it us delivering poor-quality service due to differences in the way managers and consumers view acceptable quality levels.
B) Once determined, a service provider's definition of what constitutes good service does not change.
C) Both management and customers determine the value of service quality based on preset standards and not on actual performance.
D) When poor service is provided, both the service provider and the customer are well aware of the unacceptable level of quality.

Question 46

Tangibles refer to

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

Question 47

Electrical problems in cars are often difficult to repair and time-consuming. A mechanic who can be counted on to fix electrical problems in cars consistently best exemplifies which of the following determinants of service quality?

A) Empathy
B) Tangibles
C) Reliability
D) Responsiveness

Question 48

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

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

Question 49

During Jack and Leah's first visit to the marriage counselor, Jack inspected all of the citations and certificates the counselor had prominently displayed on her wall. Identify the determinant of service quality that the counselor was using by displaying her diplomas and certificates.

A) Responsiveness
B) Tangibles
C) Empathy
D) Reliability

Question 50

_____ concerns the willingness or readiness of employees or professionals to provide service.

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

Question 51

_____ are often involved to a relatively great degree in the production of many types of services.

A) Labor unions
B) Channel partners
C) Consumers
D) Retailers

Question 52

A few years ago, if you wanted the lowest rate for a telephone call, you either called after five pm or during the weekends. Today, the phone companies advertise a "seven-cents-a-minute" or lower charge all the time. There is no special time that rates are lower. From this example, it can be best judged that phone companies are no longer

A) concerned about strategies applied by competitors.
B) concerned about profit maximization.
C) using pricing effective strategies.
D) using off-peak pricing.

Question 53

Empathy refers to the

A) service provider's efforts to understand the customer's needs and then to provide, as best as possible, individualized service delivery.
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 54

After Betty was told she had to have a mastectomy, she decided not to have the surgery until she received a second opinion from a renowned surgeon. In spite of his busy schedule, the surgeon gave Betty an appointment. The surgeon had given up his lunch hour to accommodate Betty. This willingness to provide service is an example of how _____ can be used to improve service quality.

A) sympathy
B) tangibles
C) reliability
D) responsiveness

Question 55

Identify 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 services typically customize products to the needs of the buyer.
D) Unlike goods, customers are more likely to purchase defective services.

Question 56

Service quality is important to the Marriott hotel chain. If a Marriott employee hears a customer complain, the employee is empowered to do everything possible to make that customer happy. The employee becomes personally responsible to solve the problem. This strategic reaction to customer complaints shows Marriott's concern with _____ as a determinant of service quality.

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

Question 57

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) realizing economies of scale and cost of production.

Question 58

When you enter a restaurant and see white linen tablecloths, leather chairs with arms, and soft plush carpeting, you expect a gourmet meal. When you enter a restaurant and see a counter where you place an order, a drink dispenser, ketchup packets, and plastic chairs, you expect fast food. Both of these restaurants rely on _____ to provide physical evidence of the services.

A) responsiveness
B) empathy
C) service encounters
D) tangibles

Question 59

Problems in the determination of good service quality are attributable to differences in the expectations, perceptions, and experiences regarding the encounter between the service provider and consumer. These gaps can be classified as all of the following except

A) the gap between consumer expectations and consumers perceptions of these expectations.
B) the gap between management perceptions of consumer expectations and the firm's service quality specifications.
C) the gap between service quality specifications and actual service quality.
D) the gap between actual service delivery and external communications about the service.

Question 60

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

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

Question 61

To be successful, programs developed by the management to stimulate employee commitment to customer service must _____ to improve service quality.

A) be designed by outside consultants to remove internal biases
B) have rigid preset limits on what an employee can do for a customer
C) train employees to initiate eye contact with customers, to smile, and to have a pleasant tone of voice
D) be significantly different from the competition in order to be financially worthwhile

Question 62

What is meant by "significant modeling by managers?"

A) Emphasize 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) Conveying a clear, concrete message that explains the service strategy that frontline people can begin to act on.

Question 63

The retailer of a grocery store, Carla Bauman visited the facilities of a meat-processing warehouse to access 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. As 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) Sympathy
B) Tangibility
C) Responsiveness
D) Reliability

Question 64

According to research, which of the following is a common aspect in market leaders' CSMs?

A) CSM programs are typically performed only when sales comes down.
B) Marketing and sales employees, aided by customer input, are primarily responsible for designing CSM programs.
C) Research for CSM programs is performed only when a new service is launched.
D) CSM programs typically use only qualitative research methods.

Question 65

According to research, all of the following are some common aspects in the market leaders' CSMs except

A) top management and the marketing function championed the programs.
B) measurement involved only quantitative research methods.
C) evaluations included both the company's and competitors' satisfaction performance.
D) research was performed on a continual basis.

Question 66

Federal Express is a high-involvement, horizontally coordinated organization that encourages employees to use their judgment above and beyond the rulebook. The company's motto is "people, service, and profits." It has self managing work teams, gain sharing plans, and empowered employees seemingly consumed with providing flexible and creative services to customers with varying needs. FedEx serves as a prime example of the benefits accruing to the company that successfully practices

A) control over its technology.
B) internal marketing.
C) export marketing.
D) brand positioning.

Question 67

For turning service quality into a powerful competitive weapon, the text states that a firm must do all of the following except

A) continuously strive for service superiority.
B) consistently perform above the adequate service level.
C) capitalizing on opportunities for exceeding the desired service level.
D) constantly try to follow price discrimination that lessens competition.

Question 68

Why should a company that specializes in providing accounting services be concerned about whom it hires as its receptionist?

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) An efficient receptionist can maximize the number of service encounters.
D) The character and personality of an organization reflects the character and personality of its top management.

Question 69

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) internal marketing.
C) a follow through process.
D) internal responsiveness.

Question 70

A careful selection process in hiring frontline employees entails that management

A) clearly define the skills the service person must bring to the job.
B) constantly define the service strategy that frontline people can begin to act on.
C) pay the highest salaries in the market.
D) demonstrate the behavior that they intend to reward employees for performing.

Question 71

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) internal marketing.
C) customer empowerment.
D) brand building.

Question 72

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 demographic
B) customer satisfaction
C) customer status
D) customer profile

Question 73

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 74

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 75

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

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

Question 76

If a company considers as many as 30 candidates for each housekeeping or front-desk position, it indicates that the company is paying close attention to this critical component of internal marketing.

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 77

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 78

This is a reason for the lack of innovative marketing on the part of service marketers.

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

Question 79

Which service quality determinant is affecting the decision of the student who decides to sign up for a particular instructor's class based on the belief that the instructor is an excellent teacher who ensures that students understand concepts?

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

Question 80

A critical component that programs developed by the management to stimulate employee commitment to customer service must include a clear, concrete message that conveys a particular service strategy that frontline people can begin to act on. This is of great importance because

A) people delivering service need to know how their work fits in the broader scheme of business operations.
B) incentives are necessary to give the employees the capability and willingness to provide quality service.
C) it focuses on specific social techniques, such as eye contact, smiling, tone of voice, and standards of dress.
D) managers must demonstrate the behavior that they intend to reward employees for performing.