MKTG CHAPTER 13

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16. 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
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c) human or mechanical efforts
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17. 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.
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c) degree of tangibility.
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18. 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.
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d) customer service.
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19. 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
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c) A 100 percent service satisfaction guarantee
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20. 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
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e) nearly three-quarters
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21. Which of the following countries was the world’s first service economy? a) England b) United States c) Sweden d) Canada e) Germany
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b) United States
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22. 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
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e) String quartet music
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23. 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
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e) Increased number of high-tech goods
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24. 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.
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d) increases in the complexity and competitiveness of business environments.
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25. 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
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b) Consulting
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26. 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
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d) performance; audience
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27. 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.
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d) heterogeneity.
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28. 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.
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c) consumers may have a problem evaluating service offerings.
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29. 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
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a) service-dominant products; good-dominant products
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30. 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
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b) Dinner at the Olive Garden
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31. Because practically all marketers provide some services, ___________ typically do not exist in today’s business environment. a) pure goods b) pure services c) customer services d) service products e) tangible-dominant products
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a) pure goods
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32. 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
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b) Inseparability
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33. Personal trainers cannot complete their work without their clients present because of the _______ feature of services. a) perishability b) intangibility c) inseparability d) heterogeneity e) tangibility
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c) inseparability
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34. 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.
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d) inseparability.
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35. 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.
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e) services are easy to standardize and control.
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36. 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.
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d) perishability.
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37. Kathy Adkins, owner of Adkins Styling Salon, looks at the day’s appointment schedule and notices that it is completely full. She wishes some of the empty slots from earlier in the week were available on this Saturday afternoon. Her thoughts deal with the ___________ characteristic of services. a) credence b) heterogeneity c) perishability d) search e) inseparability
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c) perishability
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38. 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
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c) Perishability
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39. Lauren is a concert promoter who works for pop star Justin Timberlake. She works very hard to make sure most of Justin’s concerts are sold out because she understands the concept of perishability, which means a) because the concert is not tangible, customers will have a difficult time judging its quality in advance. b) the production of the concert and the consumption of the concert by the fans cannot be separated so tickets must be sold. c) a high level of interaction will exist between the customers and the musicians, which makes the customers’ presence necessary. d) that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again. e) that each concert is different and customers will miss a unique experience if they are not present at the concert.
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d) that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again.
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40. 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
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e) human labor
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41. Because of a service’s ___________, standardization and quality are difficult to control. a) intangibility b) inseparability c) homogeneity d) heterogeneity e) perishability
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d) heterogeneity
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42. 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
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a) heterogeneity
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43. The owner of the Lords and Ladies hair salon has difficulty in standardizing and controlling the quality of service that the customers in his salon receive. This problem illustrates which of the following unique features of service? a) Intangibility b) Inseparability c) Perishability d) Heterogeneity e) Marketability
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d) Heterogeneity
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44. 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
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b) Train employees and develop standard procedures for dealing with customers
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45. 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? a) Tangibility b) Intangibility c) Perishability d) Inseparability e) Heterogeneity
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e) Heterogeneity
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46. Machinery such as ATMs and online customer services can reduce the ______ that comes from increased contact with human employees. a) intangibility b) perishability c) inseparability d) heterogeneity e) tangibility
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d) heterogeneity
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47. Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda’s recommendation addresses which of the following service features? a) Heterogeneity b) Intangibility c) Perishability d) Inseparability e) Homogeneity
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a) Heterogeneity
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48. 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.
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e) client-based relationships.
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49. The main characteristic of a ___________ is that customers are satisfied to the point that they use a service repeatedly over a period of time. a) service relationship b) professional marketer c) high-contact service d) heterogeneous service e) client-based relationship
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e) client-based relationship
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50. Client-based relationships are least likely to be developed by a) towing services. b) accountants. c) beauticians. d) orthodontists. e) psychiatrists.
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a) towing services.
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51. 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
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c) Lawyers
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52. Client-based relationships are most likely to be developed by a) funeral directors. b) electricians. c) installers. d) doctors. e) brick layers.
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d) doctors.
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53. 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.
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c) service becomes less personalized.
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54. 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.
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a) customer contact.
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55. Which of the following is a low-contact service? a) Childcare b) Website design c) Health care d) Manicure e) Legal services
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b) Website design
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56. The level of interaction necessary between a customer and service provider in order to complete a service is called a) tangibility. b) client-based relationships. c) customer contact. d) consumer interaction. e) heterogeneity.
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c) customer contact.
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57. 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
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e) Plastic surgery
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58. Which of the following statements about customer contact in services marketing is false? a) Service employees are important in creating satisfied customers. b) High-contact services are less expensive to deliver because they are typically equipment-based. c) The main principle of customer contact is that satisfied employees lead to satisfied customers. d) Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact services. e) Employee training programs are an effective way to ensure good customer contact and reduce problems.
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b) High-contact services are less expensive to deliver because they are typically equipment-based.
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59. 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
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b) supplementary
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60. A service is usually offered as part of a bundled package of services with a core service and one or more ________ services. a) basic b) tangible c) supplementary d) auxiliary e) other core
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c) supplementary
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61. 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
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b) core; supplementary
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62. Which of the following service characteristics results in variability of service quality yet provides the opportunity for customizing services to match the specific needs of individual customers? a) Homogeneity b) Perishability c) Heterogeneity d) Intangibility e) Inseparability
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c) Heterogeneity
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63. The heterogeneity characteristic of services provides marketers with tremendous opportunity to a) customize their services to meet unique individual needs. b) hold down the cost of providing services to customers. c) create standardized packages that will appeal to many customers. d) offer the same service as all of their competitors. e) develop relationship marketing with their customers.
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a) customize their services to meet unique individual needs.
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64. 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.
answer

d) intangibility.
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65. 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. a) heterogeneity b) perishability c) customer contact d) intangibility e) inseparability
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d) intangibility
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66. 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
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a) intangibility
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67. 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
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b) Inseparability
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68. In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to 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.
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d) promise too much and cause customer expectations beyond what they can deliver.
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69. 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
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c) inseparability
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70. 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.
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a) emphasizing tangible cues in promoting the service.
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71. 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
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e) Service facilities, customer’s home, or from a distance
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72. 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.
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e) direct from provider to customer.
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73. 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
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a) perishability
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74. By installing ATMs, banks have increased production capacity and reduced the number of personnel. This results in a decrease in a) perishability. b) intangibility. c) customer contact. d) inseparability. e) customer service.
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c) customer contact.
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75. 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.
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d) price.
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76. Symbols such as the Travellers’ Financial Services umbrella are designed to help customers overcome the ________ of services. a) heterogeneity b) unpredictability c) inseparability d) intangibility e) perishability
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d) intangibility
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77. Transamerica’s pyramid-shaped building in San Francisco is used to symbolize strength, security, and reliability. This type of promotion is designed to address the ___________ characteristic of services. a) intangibility b) perishability c) heterogeneity d) inseparability e) customer service
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a) intangibility
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78. 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.
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c) word of mouth.
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79. 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
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b) heterogeneity
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80. 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
answer

b) Demand-based
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81. 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.
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b) time.
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82. Demand-based pricing most closely relates to the _____ of services. a) perishability b) intangibility c) heterogeneity d) customer contact aspect e) inseparability
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a) perishability
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83. 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.
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a) peak demand.
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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.
answer

c) demand-based pricing.
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85. 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.
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d) off-peak demand.
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86. Any service provider that offers time-sensitive services receives most of its revenue during a) peak demand. b) heavy use time. c) the off-season. d) preferred demand. e) customer contact time.
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a) peak demand.
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87. 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
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e) Cruise ships
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88. 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
answer

a) Cable television companies
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89. Safe Auto Insurance advertises “minimum coverage for minimum budgets” for its automobile insurance. Which of the following best describes Safe Auto’s approach? a) Customers often use price as an indicator of quality, and Safe wants to be seen as a low-quality provider. b) This type of advertising makes insurance more tangible to the customer. c) Safe wants to reassure customers that they provide the highest level of service quality available. d) Because market conditions limit prices on auto insurance, Safe uses this approach to gain customers. e) For some services, customers look for the low-cost provider, which is what Safe claims to be.
answer

e) For some services, customers look for the low-cost provider, which is what Safe claims to be.
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90. 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.
answer

e) the quality of its services.
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91. Who judges service quality? a) Employees b) The company c) Independent raters d) Customers e) Marketers
answer

d) Customers
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92. 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.
answer

e) services are very difficult to evaluate.
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93. Tina, a waitress at the Riverfront Grill, is angry that a customer complained that his soup was cold because of her slow service. Riverfront owner Max Griffin reminds her that she must focus on service quality as defined by a) the health department. b) restaurant management. c) the customer’s perceptions. d) temperature guidelines. e) general practices.
answer

c) the customer’s perceptions.
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94. 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
answer

b) search
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95. 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
answer

c) Search
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96. Services have three evaluation attributes: search qualities, experience qualities, and ___________ qualities. a) credence b) value c) perishable d) marketability e) credibility
answer

a) credence
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97. 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.
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e) credence qualities.
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98. 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
answer

c) credence
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99. A small private college in Tennessee paid a large sum of money to a marketing firm to study the college’s current marketing strategy and help develop new strategies for attracting students. The college is having a difficult time evaluating the effectiveness of the marketing firm’s work because this type of service has many a) search qualities. b) undefined parameters. c) credence qualities. d) experience qualities. e) unknown results.
answer

c) credence qualities.
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100. 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.
answer

d) employee empathy.
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101. 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.
answer

a) tangibles.
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102. Although it has a strong customer base, Sato Japanese Restaurant rarely attracts customers by methods other than word-of-mouth communication. The manager believes this can be explained by the restaurant’s location in a rough area in the city and its run-down appearance. In other words, potential customers are most concerned about a) reliability. b) assurance. c) responsiveness. d) tangibles. e) empathy.
answer

d) tangibles.
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103. 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.
answer

b) responsiveness.
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104. 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.
answer

a) understand customer needs and expectations.
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105. 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.
answer

e) zone of tolerance.
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106. 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.
answer

d) acceptable and desired.
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107. 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.
answer

c) well-trained contact employees.
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108. 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.
answer

c) the lowest-paid and least-trained employees.
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109. American Airlines runs a series of television commercials that show its personnel going out of their way to help customers. In addition to consumers, an important secondary audience for these ads is (are) a) the FAA. b) airline competitors. c) bus line customers. d) American Airlines employees. e) American Airlines shareholders.
answer

d) American Airlines employees.
question

110. Offering pet owners who recommend Prize Pet Grooming to a friend $10 off their next grooming bill is a program designed primarily to a) increase perceptions of service quality. b) elevate expectations. c) encourage word-of-mouth communication. d) standardize the service offering. e) increase advertising effectiveness.
answer

c) encourage word-of-mouth communication.
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111. Janet sets up her new interior decorating business and advertises her expertise in high-quality draperies and other window treatments. One of her first customers is extremely dissatisfied with Janet’s work, so Janet redoes the job at her own expense because she knows how powerful _____ is (are) for services and wants to stay in business. a) service expectations b) word-of-mouth communication c) zones of tolerance d) customer perceptions e) experience qualities
answer

b) word-of-mouth communication
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112. ___________ 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
answer

b) Nonprofit
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113. Which of the following issues is least important in nonprofit marketing? a) Distribution b) Exchange c) Profits d) Negotiation e) Persuasion
answer

c) Profits
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114. Which of the following best defines nonprofit marketing? a) Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment b) Marketing activities conducted by organizations other than business organizations c) Nonbusiness activities aimed at goals such as profit or return on investment d) Marketing activities aimed at getting the product to the retailers, through intermediaries e) The marketing activities conducted by individuals and organizations that are considered volunteer establishments
answer

a) Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment
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115. An important difference between for-profit and nonprofit marketing is that a) there is no exchange in nonprofit marketing because the nonprofit organization receives something of value but does not give anything of value. b) marketing exists only in the for-profit organization. c) the goals of the nonprofit organization differ from the goals of the for-profit organization. d) a target market need not be determined in the nonprofit marketing scheme. e) there is no price in the marketing mix of the nonprofit organization.
answer

c) the goals of the nonprofit organization differ from the goals of the for-profit organization.
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116. 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
answer

b) Ability to use effective marketing activities
question

117. Select the true statement about nonprofit marketing. a) The chief beneficiaries of a nonprofit organization are the owners or stockholders. b) The planning of market strategies requires less refinement and coordination of goals in the nonprofit field than in the for-profit field. c) Major nonprofit marketers in the United States are social causes and charitable organizations. d) Marketing goals in nonprofit activities cannot be determined. e) All nonprofit organizations that have adopted the marketing concept have been successful.
answer

c) Major nonprofit marketers in the United States are social causes and charitable organizations.
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118. 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
answer

a) target publics
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119. 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.
answer

b) Segmentation techniques used to identify target markets in for-profit businesses are also applicable to reaching nonprofit target markets.
question

120. 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.
answer

b) the direct consumers of the product are the client public.
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121. 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
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a) client; general
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122. According to the text, the direct consumers of a nonprofit organization’s ideas or services are called its _________ public. a) general b) consumer c) member d) client e) nonbusiness
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d) client
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123. Which is the most typical distribution channel used in nonprofit organizations? a) Nonprofit organization, intermediary, client b) Nonprofit organization, client c) Nonprofit organization, middleman, client d) Nonprofit organization, government, client e) Government, nonprofit organization, client
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b) Nonprofit organization, client
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124. 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.
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e) typically characterized by short channels.
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125. ___________ is the value of the benefit that is given up by selecting one alternative rather than another. a) Benefit loss b) Opportunity cost c) Privileged cost d) Selection cost e) Exchange loss
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b) Opportunity cost
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Services are products that can be touched and felt.
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false
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The U.S. economy is the world’s first service economy.
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true
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Services can involve both human and mechanical efforts.
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true
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Most products possess a certain degree of intangibility.
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true
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Service industries account for less than 50 percent of the U.S. gross domestic product.
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false
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Goods can be defined in terms of their physical attributes, but services cannot because they are intangible.
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true
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The education a student gets is an example of the intangibility of services.
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true
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Because services are intangible by nature, marketers should downplay the tangibles associated with a particular service (such as facilities or employees).
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false
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Both production and consumption of services occur at the same time.
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true
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Because of inseparability of the consumption and production of services, customers are often present when a service is produced.
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true
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Inseparability also means that customers expect a service to be provided in a certain way by a specific person.
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true
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Services are highly perishable and cannot be inventoried for future use.
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true
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Because of service perishability, it is difficult to price services in a manner that smoothes fluctuations in demand.
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false
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There is no way to combat the supply-demand problem associated with the perishability of services.
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false
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An advantage of heterogeneity is that services can be customized.
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true
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Because most services are people-based, they are susceptible to heterogeneity, or variation in demand over time.
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false
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A hairstylist that gives good haircuts in the morning but tends to give haircuts of lesser quality in the afternoon is suffering from the challenges associated with intangibility.
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false
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Client-based relationships are interactions that result in satisfied customers who repeatedly use a service over time.
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true
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The goal of building client-based relationships is to satisfy customers so well that they become very loyal and would be unlikely to switch to competitors.
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true
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High-contact services are very expensive to deliver because they are equipment-intensive.
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false
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Training of employees is less important for high-contact services than it is for low-contact services.
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false
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Supplementary services are the basic services that a customer expects to receive.
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false
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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.
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true
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Intangible cues are used to provide customers with some assurance of service quality.
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false
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When a customer takes part in the production of a service, other customers can affect the outcome of the service.
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true
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Distribution of services is often more direct, even if the customer must go to the service provider’s facilities.
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true
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Intangibility of services creates promotional challenges because it is difficult to display a service in a store and to demonstrate the quality of a service.
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true
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Due to increased customers’ desires for personalization, service providers are using bigger sales forces.
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false
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Advertisements for services use tangible cues to help customers understand the intangible attributes associated with a particular service.
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true
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Using promotional efforts that encourage the trial use of some services can be an effective way for customers to assess the quality of the offered service.
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true
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Service providers offering discounts to current customers who refer new customers to them are using existing customers as a part of their service promotion strategies.
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true
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Demand-based pricing relies on information concerning peak demand times and off-peak demand
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true
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Demand-based pricing means lower prices during times of lower demand and higher prices during times of higher demand.
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true
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Customers seldom rely on the price-quality associations.
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false
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The intangible nature of services often leads customers to use prices as a measuring tool for quality.
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true
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Balancing the supply and demand of services can be done by keeping service prices the same regardless of the time of day, week, or year.
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false

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