Marketing 351 Ch. 13

Services are usually provided through the application of _______ directed at people or objects.
a) tangible and intangible products
b) physical labor
c) human or mechanical efforts
d) ideas and other intangible efforts
e) knowledge and technology
In general, differences between goods and services are determined by the
a) degree of labor intensiveness.
b) type of target market.
c) degree of tangibility.
d) type of provider.
e) degree of consumer contact.
Any human or mechanical effort that adds value to a product is called
a) a service.
b) an intangible.
c) overhead.
d) customer service.
e) service marketing.
Which of the following is not a service product?
a) Maroon 5 concert
b) Flight on Southwest Airlines
c) A 100 percent service satisfaction guarantee
d) Overnight stay at Holiday Inn
e) Dry cleaning of a suit
Service industries account for ____ of the gross domestic product of most developed nations.
a) more than half
b) a small portion
c) approximately 25 percent
d) nearly all
e) nearly three-quarters
Which of the following countries was the world’s first service economy?
a) England
b) United States
c) Sweden
d) Canada
e) Germany
Which of the following products associated with weddings is most likely to be considered a service?
a) Wedding cake
b) Floral arrangements
c) Bridal gown
d) Reception hall
e) String quartet music
Which of the following factors have contributed the least to the growth of services in the U.S. economy?
a) Increased interest in travel and entertainment
b) Increased number of women in the workforce
c) Increased proportion of older people in the United States
d) Increased interest of Americans in fitness and recreation
e) Increased number of high-tech goods
The growth of business services is largely attributed to
a) increases in incomes and living standards.
b) decreases in the consumption of products.
c) increases in governmental expenditures.
d) increases in the complexity and competitiveness of business environments.
e) increases in population.
Which of the following is most likely to be considered a business service?
a) Housecleaning
b) Consulting
c) Haircutting
d) Personal training
e) Alaskan cruise
According to your text, one perspective from which to view services is as a ______ targeted at a(n) ________.
a) sporting event; spectators
b) concert; audience
c) play; actors
d) performance; audience
e) presentation; spectators
Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and
a) labor-intensiveness.
b) orientation toward value.
c) homogeneity.
d) heterogeneity.
e) specialization.
The intangibility aspect of a service means that
a) there is a lack of perceived quality compared to a tangible good.
b) unused capacity cannot be stockpiled or inventoried for later use.
c) consumers may have a problem evaluating service offerings.
d) services are not produced at the same time they are consumed.
e) services are not labor-intensive.
The continuum of tangibility goes from _____ on one end to _____ on the other end.
a) service-dominant products; good-dominant products
b) pure products; pure services
c) rational products; irrational products
d) mostly service goods; mostly product goods
e) easy to see; not easy to see
Which of the following services falls closest to the middle of the tangibility continuum?
a) College education
b) Dinner at the Olive Garden
c) A new Ford Escape
d) A custom built yacht
e) A trip to Brazil
Hair stylists find it challenging to market their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services?
a) Intangibility
b) Inseparability
c) Perishability
d) Heterogeneity
e) Homogeneity
Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jim’s difficulty in expanding his practice involves the aspect of service called
a) slotting.
b) perishability.
c) credence.
d) inseparability.
e) heterogeneity.
All of the following are elements of the inseparability characteristic of services except that
a) consumers are involved in production.
b) centralized mass production is difficult.
c) consumption and production are simultaneous.
d) many services cannot be performed without the customer being present.
e) services are easy to standardize and control.
The fact the services cannot be inventoried and then sold at a later date is called
a) intangibility.
b) heterogeneity.
c) inseparability.
d) perishability.
e) nonstorability.
Marketers of services must deal with the challenges of balancing supply and demand and planning for peak and off-peak times. What characteristic of services creates these challenges?
a) Inseparability
b) Customer contact
c) Perishability
d) Heterogeneity
e) Intangibility
The more __________ involved with delivering a service, the greater the degree of heterogeneity.
a) mechanical efforts
b) phone contact
c) perishability
d) tangibility
e) human labor
Because of a service’s ___________, standardization and quality are difficult to control.
a) intangibility
b) inseparability
c) homogeneity
d) heterogeneity
e) perishability
The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ______ of services.
a) heterogeneity
b) customer contact aspect
c) intangibility
d) inseparability
e) perishability
What should marketers do to promote the consistency and reliability of their services most effectively?
a) Limit the number of employees in their organization
b) Train employees and develop standard procedures for dealing with customers
c) Encourage employees to be creative in solving customer issues and complaints
d) Perform as much of the service as possible before the customer arrives
e) Require employees to be shining, happy people all day long
Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as
a) partnerships.
b) repeated customer contact.
c) inseparable clientele.
d) long-term customers.
e) client-based relationships.
Client-based relationships are least likely to be developed by
a) towing services.
b) accountants.
c) beauticians.
d) orthodontists.
e) psychiatrists.
Which of the following service providers would typically call their customers “clients”?
a) High school teachers
b) Waiters
c) Lawyers
d) Dry cleaners
e) Nurses
When service companies change high-contact services into low-contact services, the
a) service becomes more expensive to deliver.
b) quality of the service declines.
c) service becomes less personalized.
d) time required to deliver the service increases.
e) service becomes less standardized.
The necessary interaction between service provider and customer that allows a service to be delivered is called
a) customer contact.
b) service exchange.
c) marketing.
d) relationship marketing.
e) service contact.
Which of the following is the best example of a high-contact service?
a) Appliance repair
b) Newspaper delivery
c) Dog training
d) Interior decorating
e) Plastic surgery
If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ___________ services.
a) core
b) supplementary
c) bundled
d) business
e) complimentary
A first class airline ticket offers a ____ service of transportation as well as _______ services of drink and food service, special boarding rights, and extra customer service.
a) primary; secondary
b) core; supplementary
c) bundled; extra
d) complementary; main
e) major; minor
Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of
a) perishability.
b) heterogeneity.
c) inseparability.
d) intangibility.
e) customer contact.
Clean, sharp looking employees with appropriate uniforms help assure customers about service quality and therefore address the _____ of services.
a) intangibility
b) perishability
c) tangibility
d) inseparability
e) heterogeneity
If a nonsmoker dines in a restaurant without a no-smoking section, then the overall quality of service experienced by the nonsmoking customer probably declines. This is an example of which of the following service characteristics?
a) Perishability
b) Inseparability
c) Heterogeneity
d) Intangibility
e) Homogeneity
A sign in a doctor’s office waiting room says “Please be courteous of the others waiting with you.” The doctor’s office is trying to positively influence the _______ aspect of services.
a) tangibility
b) perishability
c) inseparability
d) customer contact
e) heterogeneity
Prudential Insurance uses “the rock” symbol to communicate stability and security to customers. This is Prudential’s attempt to help customers better understand its services by
a) emphasizing tangible cues in promoting the service.
b) using word association.
c) personalizing the selling of the service.
d) utilizing publicity techniques to enhance the service.
e) distributing the service directly through television.
What are the three primary ways that marketers deliver services?
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
The marketing channels for services are usually
a) complex and multifaceted.
b) characterized by two to three intermediaries.
c) dependent on the geographical location of the consumer.
d) determined by the customer.
e) direct from provider to customer.
Using appointments or reservations for scheduling delivery of services is an attempt to address the ___________ characteristic of services.
a) perishability
b) intangibility
c) heterogeneity
d) inseparability
e) homogeneity
Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and
a) distribution.
b) tangible elements.
c) management expectations.
d) price.
e) customer expectations.
Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on
a) news stories.
b) a webpage.
c) word of mouth.
d) newspaper ads.
e) television ads.
Production and consumption of services must simultaneously occur due to the _____ characteristic of services.
a) intangibility
b) heterogeneity
c) customer contact
d) perishability
e) inseparability
An American West Airlines flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty American West flight from Chicago to Phoenix. This is an example of what kind of service pricing?
a) Bundled
b) Demand-based
c) Supply-based
d) Upfront
e) Customer-based
Piano teachers, tutors, attorneys, and consultants are most likely to price their services based on
a) functions performed.
b) time.
c) objectives accomplished.
d) demand.
e) combination pricing.
Demand-based pricing most closely relates to the _____ of services.
a) perishability
b) intangibility
c) heterogeneity
d) customer contact aspect
e) inseparability
Service activities are time-dependent, meaning that the service must be provided at a point in time when customers want to use it. This point in time is also known as
a) peak demand.
b) preferred demand.
c) off-peak demand.
d) high-contact time.
e) high intensity time.
Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even unlimited night and weekend minutes. This is an example of
a) time-based pricing.
b) off-peak demand.
c) demand-based pricing.
d) time dependence pricing.
e) bundled costing.
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
a) inseparability.
b) intangibility.
c) customer contact.
d) off-peak demand.
e) heterogeneity.
Which of the following service providers are most likely to use demand-based pricing?
a) Dentists
b) Lawyers
c) Doctors
d) Hair stylists
e) Cruise ships
Which of the following service providers are most likely to bundle-price their services?
a) Cable television companies
b) Retail stores
c) Airlines
d) Theaters
e) Doctors
American Life uses leather-look portfolios and high-quality paper and printing for its life insurance policies in order to indicate
a) the success of its business.
b) the intangibility of its service.
c) the tastes of its management.
d) the inseparability of its agents and customers.
e) the quality of its services.
Consumers look closely at service quality when comparing competing services because
a) they perceive all services to be essentially the same.
b) they typically have very few services from which to select.
c) all services are priced about the same.
d) quality is the only relevant service characteristic.
e) services are very difficult to evaluate.
Tara finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to see exactly how they feel and fit. In other words, the jeans have many _____ qualities.
a) experience
b) search
c) intangible
d) credence
e) assurance
As Stan and Anna Walicki meet with the account representative at Landmark Bank, they are shown a sample of what their monthly statement will look like. Providing such sample documents allows Landmark to add tangibility to which of the following service qualities?
a) Experience
b) Credence
c) Search
d) Perishability
e) Inseparability
Services have three evaluation attributes: search qualities, experience qualities, and ___________ qualities.
a) credence
b) value
c) perishable
d) marketability
e) credibility
Many services have aspects that consumers may never be able to evaluate, even years after the purchase and consumption of the service. These attributes are called
a) search qualities.
b) performance attributes.
c) experience qualities.
d) immeasurable attributes.
e) credence qualities.
Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist’s product is called ___________ quality.
a) search
b) experience
c) credence
d) tangible
e) separable
There are five elements that affect customers’ perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and
a) credibility.
b) experience within industry.
c) responsibility.
d) employee empathy.
e) product knowledge.
Attributes which are assessed only during the consumption of a service are called
a) tangibles.
b) search qualities.
c) experience qualities.
d) use benefits.
e) credence qualities.
The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called
a) reliability.
b) responsiveness.
c) empathy.
d) tangibles.
e) assurance.
Surveys, focus groups, and customer comment cards are all methods used by service companies to
a) understand customer needs and expectations.
b) set service quality specifications.
c) establish guidelines for employee performance.
d) manage service expectations.
e) control service intangibility.
Jack and Amy Douglas are purchasing their first home and have certain expectations for the mortgage company with which they are working. After a long series of “unexplainable” delays, Jack and Amy become very frustrated and decide to stay in their apartment at least another year. The mortgage company failed to provide service within Jack and Amy’s
a) specifications.
b) desired responsiveness.
c) perceptions of quality.
d) service acceptance.
e) zone of tolerance.
The two levels of expectations that consumers generally have about services are
a) acceptable and unacceptable.
b) desired and undesired.
c) reliable and unreliable.
d) acceptable and desired.
e) tolerable and desired.
In service marketing, the most important link to the customer is
a) effective advertising.
b) good word-of-mouth communication.
c) well-trained contact employees.
d) the tangible aspects of the service.
e) exceptional service quality.
In most service industries, customer-contact employees are
a) valued as the most important employees in the organization.
b) the best trained employees in the organization.
c) the lowest-paid and least-trained employees.
d) managers and other supervisory level employees.
e) moderately paid personnel confined to strict dress codes.
___________ marketing includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit.
a) Unit
b) Nonprofit
c) Organizational
d) Individual
e) Enterprise
Which of the following is similar for both for-profit and nonprofit marketing?
a) Emphasis on profit as a motive
b) Ability to use effective marketing activities
c) Concern for the entry of competitors into the field
d) Complexity of the typical distribution channels
e) Definition of target markets
Children with muscular dystrophy who receive treatments developed through research programs funded by MDA represent ___________ for this charitable organization.
a) target publics
b) target population
c) general publics
d) focus groups
e) client publics
Select the true statement regarding nonprofit marketing.
a) Nonprofit marketing strategy should be developed to offer unrestricted alternatives and distribution activities that help accomplish the organization’s goals.
b) Segmentation techniques used to identify target markets in for-profit businesses are also applicable to reaching nonprofit target markets.
c) A nonprofit organization usually attempts to serve fewer market segments than a for-profit organization.
d) Selection of the target market is the only major strategy development task in nonprofit marketing.
e) The narrowest definition of price should be used in developing the marketing mix strategy.
In nonprofit organizations,
a) development of a marketing strategy should focus on the general public.
b) the direct consumers of the product are the client public.
c) target markets are defined much more easily.
d) the techniques used by for-profit organizations to define target markets cannot be applied.
e) goods are marketed more often than ideas or services.
A university’s student body would be considered its ___________ public, and parents, alumni, and trustees would be included as its ___________ public.
a) client; general
b) specialized; general
c) target; simple
d) general; client
e) target; market
Distribution for nonprofit organizations is
a) unimportant because physical movement does not take place.
b) not an important decision.
c) coordinated by middlemen.
d) inefficient rather than efficient.
e) typically characterized by short channels.
Kyle Jackson, 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. Kyle’s plan is most likely addressing the issue with ______, and relates to the ______ characteristic of services.
a) peak demand; intangibility
b) off-peak demand; perishability
c) off-peak demand; heterogeneity
d) demand-based pricing; heterogeneity
e) preferred demand; perishability
T F Because services are intangible by nature, marketers should downplay the tangibles associated with a particular service (such as facilities or employees).
T F Both production and consumption of services occur at the same time.
T F Inseparability also means that customers expect a service to be provided in a certain way by a specific person.
T F The ability to customize services to match the specific needs of individual customers is an advantage to service marketers and may lead to standardized packages.
T F The intangible nature of services often leads customers to use prices as a measuring tool for quality.
T F Service quality is defined by compliance with a set of specifications
T F The marketing mix strategy of a nonprofit organization should be developed to restrict alternatives.

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