Question 1

Test marketing is an extension of the product screening process.

Accepted Answer

A) True 
 B)False  False

Question 2

Tutors, attorneys, and consultants are most likely to price their services based on ____, while auto repair, hair stylists, and house painters are likely to price their services based on ___.

Accepted Answer

A)   functions performed; time
B)   time; functions performed
C)   objectives accomplished; time
D)   demand; objectives accomplished
E)   time; demand-based pricing. B

Question 3

What are the three primary ways that marketers deliver services?

Accepted Answer

A)   Over the phone, online, or in-person
B)   Continuously, periodically, or on demand
C)   At the customer's home, in-person, or by telecommunications
D)   Through service centers, delivery vehicles, or the mail
E)   Service facilities, customer's home, or from a distance E

Question 4

As head of sales and marketing for your company, one of your key responsibilities is to regularly review the company's product mix to determine if any products should be deleted. You are meeting with your marketing team to decide the fate of Product A. The following comments about Product A are made by different members of the team:
"There are no strengths left in the product."
"The losses on the product are huge and they keep growing."
Which of the following actions should you take with Product A?

Accepted Answer

A)   It should be immediately dropped from the product mix.
B)   It should be phased-out from the product mix.
C)   It should be run-out from the product mix.
D)   Aesthetic modifications to the product should be considered.
E)   Functional modifications to the product should be considered.

Question 5

Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features.

Accepted Answer

A) True 
 B)False

Question 6

An US Airways flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty US Airways flight from Chicago to Phoenix. This is an example of what kind of service pricing?

Accepted Answer

A)   Bundled
B)   Demand-based
C)   Supply-based
D)   Upfront
E)   Customer-based

Question 7

What exactly is analyzed during the business analysis phase of new-product development?

Accepted Answer

The answer of What exactly is analyzed during the business...

Question 8

The major drawback to using aesthetic modifications is

Accepted Answer

A)   the cost of the modifications.
B)   that the value of the modification is determined subjectively.
C)   the need for redesign of the product.
D)   a possible decrease in market share.
E)   that there is no differentiation for the product in the market.

Question 9

Some services are time sensitive, meaning that a significant number of customers desire the service around the same time. This point in time is called

Accepted Answer

A)   peak demand.
B)   preferred demand.
C)   off-peak demand.
D)   high-contact time
E)   high intensity time.

Question 10

Jeff was interested in taking classes to become a certified yoga instructor. In order to earn the certification, he found out he would need to take 200 hours of training. He would have to be present in the training classes with a trainer for all 200 hours. The fact that he would have to attend the classes with a trainer reflects the _____ quality of services.

Accepted Answer

A)   customer contact
B)   inseparability
C)   intangibility
D)   heterogeneity
E)   perishability

Question 11

In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to

Accepted Answer

A)   deliver on these promises and risk financial losses and the success of the company.
B)   promise less than they can actually deliver and keep customers away.
C)   make the appearance of their facilities consistent with their promises to customers.
D)   promise too much and cause customer expectations beyond what they can deliver.
E)   make the quality of their services too tangible in the eyes of the customer.

Question 12

When a theater entices customers to see movies during the daytime by offering tickets at a reduced price, it is trying to solve the services marketing problem of

Accepted Answer

A)   inseparability.
B)   intangibility.
C)   customer contact.
D)   off-peak demand.
E)   heterogeneity.

Question 13

Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as

Accepted Answer

A)   market development.
B)   regional commercialization.
C)   roll-out.
D)   market extension.
E)   competitive jamming.

Question 14

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of

Accepted Answer

A)   product modifications.
B)   functional modifications.
C)   aesthetic modifications.
D)   line extensions.
E)   product lining.

Question 15

After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.

Accepted Answer

A)   product design
B)   screening
C)   product development
D)   concept testing
E)   test marketing

Question 16

Select the true statement concerning test marketing.

Accepted Answer

A)   Test marketing is simply an extension of the screening and developing stages.
B)   Test marketing should be conducted after all the marketing mix variables have been finalized.
C)   Test marketing is a limited introduction of the product in areas chosen to represent the intended market.
D)   If the product is successful in the test market, then it is ensured of success upon total introduction.
E)   Large corporations usually launch test-marketing efforts in one small area at a time.

Question 17

Kate, owner of K's Tanning Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty tanning beds from earlier in the week were available on this Saturday afternoon. Kate's problem deals with the ____ characteristic of services.

Accepted Answer

A)   credence
B)   heterogeneity
C)   perishability
D)   search
E)   inseparability

Question 18

H&R Block, a major tax preparation firm, reported having a problem with its employees being inconsistent in the filing of returns. The firm is experiencing a problem with which of the following characteristics of the service offering?

Accepted Answer

A)   Tangibility
B)   Intangibility
C)   Perishability
D)   Inseparability
E)   Heterogeneity

Question 19

The business analysis stage of new-product development explores how well the new product fits in with the firm's existing product mix.

Accepted Answer