Deck 14: Designing and Managing Services

Question 1

Which of the following is a characteristic of a service?

A) The service is essentially tangible.
B) The service does not result in the ownership of anything.
C) The service's production is majorly tied to a physical product.
D) Services are typically produced and consumed at different times.
E) A client's presence is not required for rendering a service.

Answer 1

B

Question 2

To which of the following categories of services does a cell phone belong?

A) major service with accompanying minor services
B) major service with accompanying minor goods
C) pure service
D) pure tangible good
E) tangible good with accompanying services

Answer 2

E

Question 3

Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are bought. This is known as the ________ aspect of services.

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

Answer 3

B

Question 4

Which of the following is an example of a pure tangible good?

A) massage
B) shampoo
C) e-mail
D) restaurant meal
E) air travel

Question 5

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

A) air travel
B) psychotherapy
C) baby oil
D) a laptop
E) a restaurant meal

Question 6

A flight with complementary drinks is an example of a ________.

A) major service with accompanying minor goods and services
B) pure service
C) pure tangible good
D) tangible good with accompanying services
E) hybrid

Question 7

BRZ Shoes targets the youth market with vibrant, visually appealing ads in modern styles. BRZ ads appeal to the ________ dimension of brand experience.

A) sensory
B) affective
C) behavioral
D) intellectual
E) social

Question 8

When banks try to make their positioning strategies tangible through the ________ dimension, they make sure the exterior and interior have clean lines, the layout of the desks and the traffic flow are planned carefully, and waiting lines are not overly long.

A) people
B) symbols
C) equipment
D) place
E) communication material

Question 9

Which of the following will most help service providers overcome the limitation of intangibility of services when positioning itself?

A) using brand symbols
B) sharing services
C) working with larger groups
D) cultivating nonpeak demand
E) creating a service blueprint

Question 10

BRZ Shoes positions itself as a young, adventurous brand. Its logo and brand communication try to give consumers a feeling of excitement and bravery. These ads appeal to the ________ dimension of brand experience.

A) sensory
B) affective
C) behavioral
D) intellectual
E) social

Question 11

Services high in ________ qualities have characteristics that the buyers can evaluate before purchase.

A) search
B) experience
C) credence
D) privacy
E) storing

Question 12

Which one of the following would be considered high in credence qualities?

A) an interior of a house
B) a restaurant
C) a haircut
D) psychotherapy
E) a computer

Question 13

A brand that is action-oriented and causes consumers to engage in physical actions appeals to the ________ dimension of brand experience.

A) sensory
B) affective
C) behavioral
D) intellectual
E) social

Question 14

Services high in ________ qualities have characteristics that the buyer can evaluate after purchase.

A) privacy
B) experience
C) credence
D) search
E) stock

Question 15

Which of the following is true for services?

A) All services are people-based, while goods are equipment-based.
B) Service providers can be both for-profit or nonprofit.
C) All service companies follow the same process to deliver their services.
D) The client's presence is a hindrance during the service delivery process.
E) Service providers develop similar marketing programs for personal services and business services.

Question 16

A computer falls into the ________ category of service mix.

A) pure tangible good
B) tangible good with accompanying services
C) hybrid
D) major service with accompanying minor goods
E) pure service

Question 17

Which one of the following is highest in search qualities?

A) a play at a theater
B) a meal at a restaurant
C) a haircut
D) psychotherapy
E) a computer

Question 18

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

A) teaching
B) car
C) restaurant meal
D) soap
E) air travel

Question 19

Services high in ________ qualities are those services that have characteristics the buyer normally finds hard to evaluate even after consumption.

A) trial
B) search
C) experience
D) privacy
E) credence

Question 20

Some services require that the client be present to conduct the service. Which of the following is an example of such a service?

A) pest control
B) furniture polishing
C) surgery
D) car repairing
E) tax services

Question 21

________ refer(s) to logos, symbols, characters, and slogans that service providers use in order to make the service and its key benefits more tangible.

A) Brand engagement
B) Brand orientation
C) Brand elements
D) Brand loyalty
E) Brand equity

Question 22

Service quality depends on who provides them, when and where they are provided, and to whom they are provided. Thus, services are highly ________.

A) inseparable
B) tangible
C) variable
D) perishable
E) intangible

Question 23

The private nonprofit sector is a provider of services.

Question 24

The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote mini-vacation weekends for non-business customers as well. What is the Caesar Park Hotel trying to do?

A) It is implementing premium pricing.
B) It is trying to cultivate nonpeak demand.
C) It is promoting complementary services.
D) It is putting reservation systems in place.
E) It is implementing differential pricing.

Question 25

Cocktail lounges in restaurants are examples of ________.

A) differential pricing
B) cultivating nonpeak demand
C) complementary services
D) reservation systems
E) shared services

Question 26

A service results in ownership on the part of the client.

Question 27

Which of the following will help a service provider overcome the limits imposed by the inseparability of services?

A) using differential pricing
B) working with larger customer groups
C) providing complementary services
D) concentrating on physical evidence and presentation
E) standardizing the service process

Question 28

Which of the following steps will help service firms to increase their quality control?

A) standardizing the service-performance process
B) providing complementary services to customers
C) giving personnel authority in handling situations
D) adopting differential pricing
E) cultivating nonpeak demand

Question 29

In order to map out the service process, the points of customer contact, and the evidence of service from the customer's point of view, service firms should develop a ________.

A) marketing plan
B) service floor plan
C) Gantt chart
D) business plan
E) service blueprint

Question 30

Jake had an appointment at the doctor's office, but couldn't make it on time due to traffic. By the time he arrived, the doctor had already begun with the next patient. This illustrates the ________ of services.

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

Question 31

Kaya, a chain of skin clinics, requests each new visitor to fill in their own details on a printed form. This is a step in ________.

A) increasing its peak-time efficiency
B) creating nonpeak demand
C) increasing consumer participation
D) sharing its services
E) facilitating its future expansions

Question 32

A service is essentially intangible.

Question 33

The fact that services are typically produced and consumed simultaneously is known as the ________ aspect of services.

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

Question 34

The production of a service is never tied to a physical product.

Question 35

Walmart has decided to hire extra clerks during the holiday season. It is said to be ________.

A) matching its supply with the existing demand
B) generating nonpeak demand
C) increasing its customer participation
D) sharing its services
E) facilitating for its future expansion

Question 36

In which of the following cases is a service provider trying to increase nonpeak demand?

A) A fine dining restaurant is promoting a breakfast service in addition to its popular lunch and dinner options.
B) An upscale restaurant has a cocktail lounge where customers can wait until a table is ready.
C) AXA Bank set up automated teller machines so that its customers could avoid standing in line.
D) Chesterton College hired part-time teachers as enrollment increased significantly.
E) Big department stores usually hire extra staff to handle the rush during the holiday season.

Question 37

A travel agency offers weekend discounts for car rentals. What can be deduced from this?

A) It is increasing peak-time efficiency.
B) It is using differential pricing.
C) It is using linear pricing.
D) It is cultivating peak demand.
E) It is providing complementary services.

Question 38

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

A) Big department stores usually hire extra staff to handle the rush during the holiday season.
B) The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote mini-vacation weekends for non-business customers as well.
C) More paramedics are on hand to assist physicians during times when emergency admissions are highest.
D) AXA Bank set up automated teller machines so that its customers could avoid standing in line.
E) Chesterton College hires part-time teachers when enrollment goes up.

Question 39

Which of the following is true regarding services?

A) Services are typically produced, stored, and then consumed.
B) Services are generally low in experience and credence qualities.
C) Service providers develop similar marketing programs for personal services and business services.
D) There is less risk associated with the purchase of services than with the purchase of goods.
E) Provider-client interaction is a special feature of services marketing.

Question 40

When a theater sells matinee movie tickets at low prices, it aims to shift some demand from the peak to the off-peak period. What is the strategy that the theater is said to be adopting?

A) It is providing complementary services.
B) It is increasing peak-time efficiency.
C) It is using linear pricing.
D) It is using differential pricing.
E) It is sharing services.

Question 41

All services require the client to be present.

Question 42

List three steps that service firms can take to increase quality control over services and reduce variability.

Question 43

Intangibility with regards to a service means that the service cannot be duplicated across providers.

Question 44

The experience qualities of a good or service can be evaluated after purchase.

Question 45

A hybrid consists of unequal parts of goods and services, with services being in the majority.

Question 46

Service companies try to demonstrate their service qualities through physical evidence and presentation.

Question 47

Furniture is high in credence qualities.

Question 48

A service provider can work with larger groups to get around the limitations of inseparability.

Question 49

Salt is an example of a hybrid.

Question 50

The search qualities of a service are the characteristics the buyer can evaluate before purchase.

Question 51

List and briefly explain the four distinctive characteristics of services.

Question 52

Inseparability in the context of a service means that there is a provider-client interaction involved as the provider is part of the service.

Question 53

Credence qualities of a service are difficult to evaluate before purchase, but easy to evaluate after consumption.

Question 54

List and briefly explain with examples the five categories of service offerings.

Question 55

Soap is an example of a pure tangible good.

Question 56

While goods meet personal needs, services meet business needs.

Question 57

Services have five distinctive characteristics, one of these being "pure service."

Question 58

A demand side strategy that can produce a better match between service demand and supply is differential pricing.

Question 59

The quality of services is independent of who provides them.

Question 60

A pure service requires a capital-intensive good, but the primary item is a service.

Question 61

Bryson's is a mid-sized hotel chain that is entering a competitive market. The chain needs to differentiate its service from that of competitors, positioning itself as a hotel with excellent service at an affordable price. However, the intangible nature of services makes this difficult to demonstrate. How can Bryson's convey its message effectively to prospective guests using marketing tool of place?

Question 62

Customers want unbundled services, with separate prices for each service element and the right to select the elements they want.

Question 63

Fingerpainted organizes art camps and craft activities for children. The company has noticed that demand is highest during summer vacations and drops during the year. What can Fingerpainted do to attract customers at other times of year?

Question 64

Often, a service problem arises from a customer's lack of understanding or ineptitude. Which of the following can help to minimize customer failures?

A) giving customers exclusive primary service packages
B) redesigning processes to simplify service encounters
C) using differential pricing and shared services
D) minimizing service intangibility
E) working with more customers at the same time

Question 65

There are five categories of service offerings depending upon whether or not the service component is minor or major. In which of the five categories would you place a haircut?

Question 66

Customers today want separate prices for each service element, and they also want the right to select the elements they want. Customers are said to be pressing for ________ services.

A) complementary
B) perishable
C) variable
D) unbundled
E) shared

Question 67

Give an example of a pure service provided by a company.

Question 68

The highest-ranking companies in a 2013 Forrester study of services that meet customer needs and were easy and enjoyable to do business with included Marshalls, TJ Maxx, JCPenney, and Marriott Hotels & Resorts.

Question 69

A person who has a bad customer experience is more likely to talk about it, but someone who has a good experience will talk to more people.

Question 70

How has the explosion of videos online affected service firms?

Question 71

In developing a service blueprint, The Flower Shop has outlined each step in the delivery process of the service it provides. Which characteristic of services is The Flower Shop attempting to minimize?

Question 72

Customers cause many service failures, and the number of customer-caused failures is increasing.

Question 73

Define customer failures and list four methods to tackle them.

Question 74

Debbie's is a specialty bakery that sees a huge volume of orders during the holiday season. The owner knows that orders triple during the three-month period and the current staff cannot handle the volume. What supply strategy can Debbie's use to handle the demand?

Question 75

When golf courses provide rules for playing and behaving appropriately, and customers encourage other customers to follow the same rules, they are encouraging customer citizenship via customer coproduction.

Question 76

Provide four examples of companies that used solutions to service failures.

Question 77

________ marketing refers to the normal work of preparing, pricing, distributing, and promoting the service to customers.

A) Interactive
B) Internal
C) External
D) Promotional
E) Direct

Question 78

Bryson's is a mid-sized hotel chain that is entering a competitive market. The chain needs to differentiate its service from that of competitors, positioning itself as a hotel chain with excellent service at an affordable price. How can it achieve this using internal marketing?

Question 79

Several strategies exist for managing the supply and demand of services. List the strategies for managing each and give an example of each strategy.

Question 80

What are the four factors that customers who thrive in customer contact positions have an internal drive to do?