Question 1

Services delivered through machinery such as computer kiosks, ATMs, and vending machines can reduce the ____ that comes from increased contact with human employees.

Accepted Answer

A)  intangibility 
B)  perishability 
C)  inseparability 
D)  heterogeneity 
E)  tangibility

Question 2

Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ____ aspect of services.

Accepted Answer

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

Question 3

Business analysis provides a tentative sketch of a product's profitability.

Accepted Answer

A) True 
 B)False

Question 4

A _________ works outside established organizational divisions and has greater flexibility to apply innovative approaches to new products and markets.

Accepted Answer

A)  Market manager 
B)  Venture team 
C)  Brand manager 
D)  Product manager 
E)  Marketing manager

Question 5

A ____ is responsible for a product, product line, or several distinct products in an interrelated group within an organization.

Accepted Answer

A)  product marketer 
B)  brand manager 
C)  market manager 
D)  product manager 
E)  line manager

Question 6

If Splenda decides its "Splenda with Vitamins" is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a(n) ____ deletion strategy.

Accepted Answer

A)  run-out 
B)  immediate drop 
C)  slow-down 
D)  phase-out 
E)  drop-down

Question 7

The necessary interaction between service provider and customer that allows a service to be delivered is called

Accepted Answer

A)  customer contact. 
B)  service exchange. 
C)  marketing. 
D)  relationship marketing. 
E)  service contact.

Question 8

Venture team members usually come from the same functional areas within the firm.

Accepted Answer

A) True 
 B)False

Question 9

When Tyler was visiting family in Ohio, he ate a flavor of Lay's Potato Chips that he had never seen before. When he returned home to Virginia, he could not find the flavor in any store. Which of the following reasons most likely explains why he could not find the flavor at home?

Accepted Answer

A)  The flavor was being deleted through an immediate drop. 
B)  The flavor was in the screening phase of the new-product development process. 
C)  The chips were undergoing a repositioning. 
D)  He was visiting a Lay's test market. 
E)  The new flavor was going through product differentiation.

Question 10

The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called

Accepted Answer

A)  concept testing. 
B)  customer response testing. 
C)  idea analysis. 
D)  test marketing. 
E)  screening.

Question 11

Morgan is interested in upgrading to a new sofa for her apartment. Morgan looks online to see what new models her favorite sofa brand has available and can get information on the style and color; however, she can't actually sit on the sofa to determine its comfort level. Morgan is able to evaluate the ____ modifications to the sofa, but not the ____ modifications.

Accepted Answer

A)  aesthetic; quality 
B)  quality; aesthetic 
C)  aesthetic; functional 
D)  functional; quality 
E)  functional; aesthetic

Question 12

By installing automated check-in kiosks in some airports, airlines have increased production capacity and reduced the number of personnel. This results in a decrease in

Accepted Answer

A)  perishability. 
B)  intangibility. 
C)  customer contact. 
D)  inseparability. 
E)  customer service.

Question 13

Scenario 11.3 Use the following to answer the questions.
The YMCA in mid-town Atlanta has recently upgraded its facilities, including building a new Olympic-sized swimming pool and children's playground. All locations of the Atlanta "Y" are open from 6:00 am until 11:00 pm, 360 days a year. The children's playground is accessible for members only, and is a fenced and secured area. During the weekdays, children under the age of 12 can engage in supervised activities at the playground, for no extra fee. Additionally, there are swimming classes for children of all ages, which is also covered by the monthly membership fee. The swimming pool has been very popular with the professionals who stop by for a swimming workout before or after work.
Many of the YMCA locations are very busy all day, however, the midtown "Y" is busier during the early morning and early evenings. At a recent meeting, Maya Sinclair, its manager, shared her concerns about getting more people into the "Y" at other times of the day. She asked for ideas from her staff about how to do this. She also said that the city of Atlanta had reduced the "Y"'s funding for the next year by 20%. This would cause a need for the "Y" to either gain additional members or charge more per member for the annual fee.
Refer to Scenario 11.3. One of Maya's staff suggested that they offer senior citizens a free month of membership for every person they recommended to the "Y." This particular form of promotion would be designed to

Accepted Answer

A)  increase perceptions of quality. 
B)  increase positive word-of-mouth communication. 
C)  increase negative word-of-mouth communication. 
D)  increase advertising effectiveness. 
E)  increase the customer contact associated with the "Y."

Question 14

____ and ____ are important characteristics of quality for consumer markets, and ____ and ____ are important characteristics of quality for business markets.

Accepted Answer

A)  Reliability/ease of use; technical suitability/ease of repair 
B)  Technical suitability/reasonable price; trusted brand name/ease of repair 
C)  Durability/technical suitability; company reputation/ease of repair 
D)  Ease of maintenance/durability; company reputation/technical suitability 
E)  Trusted brand name/ease of repair; reliability/company reputation

Question 15

Jim is a marketing manager for Tylenol Cold and wanted to know how Tylenol Cold and other competing products were perceived by consumers. To do this, he surveyed a sample of customers about all of the different competitors on two dimensions and created a

Accepted Answer

A)  brand grid 
B)  product identification chart 
C)  perceptual map 
D)  customer perception graph 
E)  product map

Question 16

The annual Consumer Reports magazine rating of your company's flagship product was just released. Generally speaking the rating was good but not great. Based on the consumer comments that were referenced in the rating, it appears that many consumers have a negative view of the product's convenience and safety attributes.
In order to address these consumer concerns your company should consider doing which of the following?

Accepted Answer

A)  Make aesthetic modifications to the product. 
B)  Make line extensions to the product. 
C)  Make functional modifications to the product. 
D)  Lower the price of the product. 
E)  Make quality modifications to the product.

Question 17

Because of a service's ____, standardization and quality are difficult to control.

Accepted Answer

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

Question 18

Personal trainers cannot complete their work without their clients present because of the ____ feature of services.

Accepted Answer

A)  perishability 
B)  intangibility 
C)  inseparability 
D)  heterogeneity 
E)  tangibility

Question 19

In product modification, the first issue to consider is whether

Accepted Answer

A)  existing customers can perceive that a product modification has been made. 
B)  the product is modifiable. 
C)  quality is modified. 
D)  modification will make the product more consistent with customers' desires. 
E)  modification will provide greater satisfaction to the consumer.

Question 20

Scenario 11.3 Use the following to answer the questions.
The YMCA in mid-town Atlanta has recently upgraded its facilities, including building a new Olympic-sized swimming pool and children's playground. All locations of the Atlanta "Y" are open from 6:00 am until 11:00 pm, 360 days a year. The children's playground is accessible for members only, and is a fenced and secured area. During the weekdays, children under the age of 12 can engage in supervised activities at the playground, for no extra fee. Additionally, there are swimming classes for children of all ages, which is also covered by the monthly membership fee. The swimming pool has been very popular with the professionals who stop by for a swimming workout before or after work.
Many of the YMCA locations are very busy all day, however, the midtown "Y" is busier during the early morning and early evenings. At a recent meeting, Maya Sinclair, its manager, shared her concerns about getting more people into the "Y" at other times of the day. She asked for ideas from her staff about how to do this. She also said that the city of Atlanta had reduced the "Y"'s funding for the next year by 20%. This would cause a need for the "Y" to either gain additional members or charge more per member for the annual fee.
Refer to Scenario 11.3. Martin, one of the staff members at the YMCA, suggested that the "Y" offer discounted memberships to senior citizens over the age of 65; however, they could only use the facility between the hours of 9:00 am and 4:00 pm. Martin's plan is most likely addressing the issue with ____, and relates to the ____ characteristic of services.

Accepted Answer

A)  peak demand; intangibility 
B)  off-peak demand; perishability 
C)  off-peak demand; heterogeneity 
D)  demand-based pricing; heterogeneity 
E)  preferred demand; perishability

Exam 11: Developing and Managing Goods and Services