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and Aristide Oana are considering attending a clinic to help them quit smoking. A) tangible attribute They will be better able to assess the _____ of the clinic after they attend the B) experience quality clinic and learn about the techniques it uses to help customers quit smoking. C) creative quality D) credence quality E) heterogeneity feature It is difficult to achieve consistency and standardization of services because of A) customization which service characteristic? B) simultaneous production and consumption C) intangibility D) perishability E) heterogeneity Which of the following is NOT a method firms can use to reduce the inherent A) standardized preparation variability of services? procedures B) mechanizing the process C) standardization D) providing tangible cues E) training of employees in performance standards When services for those in relatively poor economic situations are largely paid for A) nonfinancial pricing by those who are in better financial situations, it is known as: B) the Robin Hood principle C) indirect payment D) separation between payers and users E) indirect distribution A service cannot be touched, seen, tasted, heard, or felt in the same manner in A) impervious which goods can be sensed and, therefore, is referred to as: B) extraneous C) synergistic D) perishable E) intangible Obeah used to sell office furniture and supplies, but he now has semi-retired and started a cleaning service specializing in cleaning fire- and water-damaged structures. Selling cleaning services differs greatly from selling office furniture and supplies because cleaning services are: Courtney's mother died of breast cancer, and she is afraid of getting cancer. When she went to get a baseline mammogram, she wanted a facility where the personnel would not think her fears were silly and would answer all of her questions without making her feel stupid for asking them. By which of the following components of service quality is Courtney most likely to rate the mammogram provider? Budget airlines are a new service in China. Neither their passengers nor the airlines themselves know what to expect from each other. Shanghai-based Spring Airlines is a start-up service with a tight budget. According to the owner of Spring Airlines, customer satisfaction levels are at 97 percent although many of Spring Airlines' employees have been throttled and had their clothes ripped off by unhappy passengers. According to the _____, there is a gap between what customers want and what management thinks customers want. A) homogeneous B) unknowable C) intangible D) synergistic E) comestible A) empathy B) assurance C) tangibles D) reliability E) responsiveness A) gap model of service quality B) service pyramid C) four dimensions of service quality D) service paradigm E) service delineation matrix A B A E AD AD A E A C AA AA If a hospital measured the service quality of its physician care in terms of the total A) what customers want and A number of people who were attended to--even if patients appeared to want more what management thinks individualized care--the hospital would be exhibiting a gap between: customers want B) the service quality specifications and the service that is actually provided C) what the company provides and what the customer is told it provides D) what management thinks customers want and the quality specifications management develops to provide the service E) the service customers receive and the service they want An Internet company, icruise.com, sold cruises by offering a "Suntan Guarantee." A) supplementary; core The guarantee promised a full refund on a Caribbean cruise if more than one- B) core; customized A E C quarter inch of rain fell from 10 a.m. to 4 p.m. for a preset number of days C) core; supplementary depending on the length of the cruise. The _____ service offered by icruise is D) customized; standardized travel. The guarantee is a _____ service. E) complementary; supplementary Budget airlines are a new service in China. One of the major problems faced by these airlines is the tight regulatory controls the Chinese government maintains over them. The government determines which airlines get which routes, and the budget airlines do not get the most profitable business routes. The Chinese government has a major voice is setting the _____ strategies for budget airlines in that country. A) distribution B) promotion C) production D) product E) demand/supply AA A pest control company paints dead roaches on its trucks and uses similar A) stressing tangible cues graphics on its letterhead, business cards, and all promotions. The pest control B) stressing homogeneity company is using what type of promotion strategy? C) using personal information sources D) providing packaging cues E) communicating service integration signals A focus on maximizing the number of customers using a service is a(n) _____ A) maximization of demand pricing objective for service firms. B) patronage-oriented C) profitability-oriented D) operations-oriented E) revenue-oriented Because many services involve a process of continuous interaction between the A) interactive service organization and the customer, _____ marketing is an important strategy. B) relationship C) patronage D) nonprofit E) affiliation Satisfied customers are likely to engage in positive word-of-mouth A) interactive communication, thereby helping to bring in new customers. Thus, a method for B) affiliation attracting, developing, and retaining customers is known as _____ marketing. C) patronage D) ambush E) relationship Unfortunately, many institutions of higher learning have focused efforts on population segments only when they felt a segment could do something for them. For example, many schools have bombarded pre-college students when they feel they are needed to fill classroom seats. Few have taken the approach of trying to determine what the potential student really wants or needs. Often, once graduated, a former student is only thought of as an alumnus or alumna, not as someone who can again benefit from the services provided by the institution. This description suggests that _____ marketing would be useful. A) interactive B) relationship C) patronage D) nonprofit E) affiliation AA A B A B A E A B One of the main responsibilities of sport marketers is to keep their loyal customers A) interactive as heavy users and escalate lower-level users into loyal customers. An effective B) relationship tool for accomplishing this goal would be _____ marketing. C) patronage D) nonprofit E) affiliation Mountain Express is a company that provides grocery delivery service to several small communities in Idaho. The company gives a 2 percent discount on all food orders to customers after they have used the service 10 times. An additional percentage discount is offered for each additional 15 orders up to a maximum of 8 percent. The relationship marketing strategy used by Mountain Express is based on: A) following service delivery paradigms B) building social bonds C) building financial bonds D) opening personal communication channels E) creating structural bonds A B A C Building value-added services that are not readily available from other firms into A) financial bonds the delivery system defines relationship marketing based on the creation of: B) social bonds C) service delivery paradigms D) personal communication channels E) structural bonds Relationship marketing programs that are based on _____ bonds have the A) financial and individual strongest potential for sustaining long-term relationships with customers. B) social and structural C) financial, social, and structural A E A C D) financial and patronage E) financial and structural The predominant form of nonprofit organization in the United States is: A) farms B) arts museums and programs C) private-sector volunteer organizations D) social service firms E) government A target market for a nonprofit organization: A) needs to be defined in terms of competing private-sector organizations B) needs to be defined as the "community" in general in order to reach all potential targets C) may include many apathetic or strongly opposed targets D) is best defined geographically, to include the area served E) is best defined as the potential donors because their funds will ensure the survival of the organization There are fewer problems caused by the service characteristic of _____ when the A) perishability service being purchased requires little interaction between the service personnel B) inseparability and the customer. C) intangibility D) heterogeneity E) instability Which of the following is NOT a method firms can use to reduce the inherent A) standardized preparation variability of services? procedures B) mechanizing the process C) standardization D) providing tangible cues E) training of employees in performance standards If a benefit is indirect to the customer, the marketer may find a challenge in A) benefit complexity promoting a product with little: B) feature charisma C) benefit strength D) personalization E) benefit exchange Most governmental organizations are prohibited from: A) using publicity in any form B) engaging in personal selling C) using public service announcements D) advertising E) direct marketing A business professional from The Center for Retailing at Morehead University has been donating several hours of consulting time to local nonprofit organizations each month. This could be expected to provide the center with all of the following benefits EXCEPT: The Chrysalis Job Training for the Disabled program wants to notify the community about its upcoming rummage sale. As an experienced marketer and director of the program, you plan to visit several local radio and televisions stations to request: A) community approval B) goodwill C) immediate financial gain D) personal contacts E) personal satisfaction A) freestanding inserts B) nonsponsored advertising C) advocacy marketing D) public service advertising E) societal marketing A E A C AD AD A C AD A C AD A(n) _____ is the result of applying human or mechanical efforts to people or A) application processor objects. B) profit intermediary C) tangible product D) service E) nonprofit organization Which of the following is NOT a service component customers use to evaluate A) validity AD AA service quality? B) empathy C) assurance D) responsiveness E) reliability Budget airlines are a new service in China. Neither their passengers nor the airlines themselves know what to expect from each other. Shanghai-based Spring Airlines is a start-up service with a tight budget. According to the owner of Spring Airlines, customer satisfaction levels are at 97 percent although many of Spring Airlines' employees have been throttled and had their clothes ripped off by unhappy passengers. According to the _____, there is a gap between what customers want and what management thinks customers want. Budget airlines are a new service in China. Neither their passengers nor the airlines themselves know what to expect from each other. Shanghai-based Spring Airlines is a start-up service with a tight budget. Spring Airlines would engage in _____ processing. A) gap model of service quality B) service pyramid C) four dimensions of service quality D) service paradigm E) service delineation matrix A) people B) mechanical C) possession D) mental E) information AA AA Which of the following services is an example of mental stimulus processing? A) taxi cab service B) insurance C) a professional tennis match D) veterinarian care E) a hair cut The service offering of G&R Talent Agency is performers suitable for A) standardized appearances on college campuses. This service is an example of the agency's B) customized _____ service. C) supplementary D) core E) component _____ is the strategy that uses technology to deliver customized services on a A) Mass standardization mass basis. B) Aggregated services C) Technological processing D) Mass customization E) Aggregated marketing TheKnot.com is an Internet company that is a one-stop source of all the items needed to have a successful wedding including listings of local caterers and photographers. When someone registers on the site, he or she is sent the "Ultimate Wedding Organizer." It offers advice on what to do about "cold feet" and how to handle in-laws. TheKnot.com recognizes that its _____ represents a portfolio of opportunities, risks, and challenges. A) component combination B) offering grouping C) service mix D) SKU offering E) assembly process A C AD AD A C A focus on maximizing the surplus of income over costs is a(n) _____ pricing A) revenue-oriented objective for service firms. B) operations-oriented C) market-share-oriented D) patronage-oriented E) service-quality Because many services involve a process of continuous interaction between the A) interactive service organization and the customer, _____ marketing is an important strategy. B) relationship C) patronage D) nonprofit E) affiliation Unfortunately, many institutions of higher learning have focused efforts on population segments only when they felt a segment could do something for them. For example, many schools have bombarded pre-college students when they feel they are needed to fill classroom seats. Few have taken the approach of trying to determine what the potential student really wants or needs. Often, once graduated, a former student is only thought of as an alumnus or alumna, not as someone who can again benefit from the services provided by the institution. This description suggests that _____ marketing would be useful. Mountain Express is a company that provides grocery delivery service to several small communities in Idaho. The company gives a 2 percent discount on all food orders to customers after they have used the service 10 times. An additional percentage discount is offered for each additional 15 orders up to a maximum of 8 percent. The relationship marketing strategy used by Mountain Express is based on: A) interactive B) relationship C) patronage D) nonprofit E) affiliation AA A B A B A) following service delivery paradigms B) building social bonds C) building financial bonds D) opening personal communication channels E) creating structural bonds A C The predominant form of nonprofit organization in the United States is: A) farms B) arts museums and programs C) private-sector volunteer organizations D) social service firms E) government Which of the following is NOT an example of a nonprofit organization? A) State Farm, an insurance company B) American Heart Association C) American Humane Society D) Rotary Club, a service organization E) Brotherhood of Electrical Workers, a union As with for-profit organizations, the first step in developing a marketing program A) determine the marketing mix for a nonprofit organization is to: B) define organizational objectives C) establish the financial needs of the organization D) create a promotion to attract donors E) select a direct distribution outlet Nonprofit organizations face a unique challenge because the target market of the A) the community where it is nonprofit organization is often: located B) the people who provide the funding C) a paid administrator D) the apathetic or strongly opposed individuals E) the government Aristide and Oana are considering attending a clinic to help them quit smoking. A) tangible attribute They will be better able to assess the _____ of the clinic after they attend the B) experience quality clinic and learn about the techniques it uses to help customers quit smoking. C) creative quality D) credence quality E) heterogeneity feature Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. _____ is a characteristic of this service because you cannot evaluate its usefulness until after you have received and used the specialist's advice. A reading service for the visually impaired requires each reader applicant to prepare and submit a one-hour interview tape of material chosen by the service to determine whether the reader has pleasing vocal characteristics and is accent-free so that it is not necessary to use the same reader every time. The reading service is trying to limit problems associated with the service characteristic of: A) Reliability B) Experience quality C) Search quality D) Temporal quality E) Heterogeneous satisfaction A E AA A B AD A B A B A) tangibility B) credence quality C) heterogeneity D) simultaneous production and consumption E) flexibility A C Which of the following statements describes how a nonprofit organization should A) The organization should try to A D design its product offering? create products it can inventory. B) The organization should remember the product offering is not as crucial to organizational success as the other elements of the service mix. C) The product offering should be kept as simple as possible. D) The organization will need to satisfy the needs of the target market or it will fail. E) The product offering will have to be tangible. Save-the-Redwoods League is a nonprofit group committed to preserving ancient A) differential advantage forests in the United State. The organization has relatively weak _____ because B) benefit strength most people are not directly affected by what the organization does. C) advantage complexity D) donor commitment E) empathy Ian Trent has an MBA and is being recruited by an investment banking firm as a sales representative. He has had ten years of experience in selling industrial supplies. He was quite successful in this job but is worried that selling investment strategies may be more difficult. What factor would be the major reason for this worry? A) Services are intangible and, therefore, different from his previous experience. B) His services and the products he sells are inseparable. C) The marketing program of investment strategies is inconsistent. D) The cost inventory management system of reimbursing him may cause a problem when he makes investments. E) The extensiveness of distribution is unimportant when selling an investment service. A B AA Due to service _____, services cannot be stored, warehoused, or inventoried. A) tangibility B) variability C) intangibility D) perishability E) heterogeneity Courtney's mother died of breast cancer, and she is afraid of getting cancer. When she went to get a baseline mammogram, she wanted a facility where the personnel would not think her fears were silly and would answer all of her questions without making her feel stupid for asking them. By which of the following components of service quality is Courtney most likely to rate the mammogram provider? An Internet company, icruise.com, sold cruises by offering a "Suntan Guarantee." The guarantee promised a full refund on a Caribbean cruise if more than onequarter inch of rain fell from 10 a.m. to 4 p.m. for a preset number of days depending on the length of the cruise. If it rained and the Internet company failed to honor its refund policy, it would represent a gap between: A) empathy B) assurance C) tangibles D) reliability E) responsiveness A) what management thinks customers want and the quality specifications that management develops to provide the service B) what the company tells the customer it provides and what is actually provided C) service quality specifications and employee training D) what customers want and what management thinks customers want E) none of these A) people B) mechanical C) possession D) mental E) information AD AA A B Budget airlines are a new service in China. Neither their passengers nor the airlines themselves know what to expect from each other. Shanghai-based Spring Airlines is a start-up service with a tight budget. Spring Airlines would engage in _____ processing. AA Which of the following services is an example of possession processing? A) a theatrical performance B) an X-ray of a broken bone C) an advertising agency D) marriage counseling E) heating system repair The ability of each hotel guest to use his or her room r television to check out of A) a cooperative service the hotel room and to confirm additional charges on bills in the hotel's restaurants B) mass customization and gift shops is an example of: C) aggregated standardization D) a market development strategy E) mental stimulus processing TheKnot.com is an Internet company that is a one-stop source of all the items needed to have a successful wedding including listings of local caterers and photographers. When someone registers on the site, he or she is sent the "Ultimate Wedding Organizer." It offers advice on what to do about "cold feet" and how to A) component combination B) offering grouping C) service mix D) SKU offering A E A B A C handle in-laws. TheKnot.com recognizes that its _____ represents a portfolio of E) assembly process opportunities, risks, and challenges. Which of the following is NOT a key factor in the distribution strategy for A) customization services? B) convenience for customers C) number of intermediaries and outlets D) scheduling of service deliveries E) location Promotion strategies for dealing with the unique features of services include all of A) using personal sources of the following EXCEPT: information B) creating strong organizational images C) stressing tangible cues D) using postpurchase communication E) satisfying patronage-oriented objectives Budget airlines are a new service in China. Shanghai-based Spring Airlines is a start-up service with three airplanes and a tight budget. Its owner boasts that his ticket prices are 40 percent cheaper than the competition, at times even equivalent to hard-seat train prices. Which method for pricing services is Spring Airlines most likely using? A) operations-oriented pricing B) revenue-oriented pricing C) supply/demand pricing D) capacity planning pricing E) patronage-oriented pricing AA A E A E The Hermitage, Tennessee home of former U.S. president Andrew Jackson offers A) subsidized discount ticket prices to students and senior citizens. This illustrates the _____ B) operations-oriented pricing objective. C) profitability-oriented D) service quality E) patronage-oriented Treating employees as customers and developing systems and benefits that satisfy A) organizational quality their needs such as training, stressing teamwork, and employee empowerment is B) relationship known as _____ marketing. C) internal D) job-faceted E) job-satisfaction The predominant form of nonprofit organization in the United States is: A) farms B) arts museums and programs C) private-sector volunteer organizations D) social service firms E) government Which of the following is NOT an example of a nonprofit organization? A) State Farm, an insurance company B) American Heart Association C) American Humane Society D) Rotary Club, a service organization E) Brotherhood of Electrical Workers, a union The International Society of Hospitality Purchasers raised $62,000 in donated goods for Gifts in Kind International, a nonprofit group that gathers and distributes new and used merchandise to charities nationwide. Contributors donated about $37,500 in goods in conjunction with recent trade shows, and $24,500 in fabric and furniture was donated by other vendors. The society and its members as well as the charities who are beneficiaries of the merchandise compose the organization's: A) target markets B) market objectives C) service providers D) market segment E) niche A E A C A E AA AA Nonprofit organizations face a unique challenge because the target market of the A) the community where it is nonprofit organization is often: located B) the people who provide the funding C) a paid administrator D) the apathetic or strongly opposed individuals E) the government AD Aristide and Oana are considering attending a clinic to help them quit smoking. A) tangible attribute They will be better able to assess the _____ of the clinic after they attend the B) experience quality clinic and learn about the techniques it uses to help customers quit smoking. C) creative quality D) credence quality E) heterogeneity feature Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. _____ is a characteristic of this service because you cannot evaluate its usefulness until after you have received and used the specialist's advice. Jackson Caputo owns and operates Jax Stables, a complete horse service that offers grooming, training, show training for handlers, boarding, and veterinary care. To maintain a quality image, Caputo regularly provides training for each employee in the company's operations, objectives, and expected performance standards. What unique aspect of services is Caputo attempting to address? A) Reliability B) Experience quality C) Search quality D) Temporal quality E) Heterogeneous satisfaction A B A B A) heterogeneity B) perishability C) intangibility D) simultaneous production and consumption E) unfocused targeting AA Gifts in Kind International is a nonprofit organization that gathers new and used A) nonprofit product volunteer merchandise and distributes it to charities nationwide. Traditional promotional policies tools may be inadequate to motivate its target markets because of: B) the absence of consumer involvement C) lack of prices for the products D) direct distribution E) infrequent use of target markets Most governmental organizations are prohibited from: A) using publicity in any form B) engaging in personal selling C) using public service announcements D) advertising E) direct marketing A business professional from The Center for Retailing at Morehead University has been donating several hours of consulting time to local nonprofit organizations each month. This could be expected to provide the center with all of the following benefits EXCEPT: A) community approval B) goodwill C) immediate financial gain D) personal contacts E) personal satisfaction A B AD A C When services for those in relatively poor economic situations are largely paid for A) nonfinancial pricing by those who are in better financial situations, it is known as: B) the Robin Hood principle C) indirect payment D) separation between payers and users E) indirect distribution Ian Trent has an MBA and is being recruited by an investment banking firm as a sales representative. He has had ten years of experience in selling industrial supplies. He was quite successful in this job but is worried that selling investment strategies may be more difficult. What factor would be the major reason for this worry? A) Services are intangible and, therefore, different from his previous experience. B) His services and the products he sells are inseparable. C) The marketing program of investment strategies is inconsistent. D) The cost inventory management system of reimbursing him may cause a problem when he makes investments. E) The extensiveness of distribution is unimportant when selling an investment service. AD AA Western Union allows people in one nation or one area of the country to A) tangibility dependably, accurately, and consistently transfer funds to each other. In other B) responsiveness word, Western Union provides which service quality to its users? C) assurance D) responsibility A E E) reliability Virtual Bellhop is a company that ships awkward sporting goods to vacation destinations so its customers to not have to worry about lugging them through airports or having them damaged in transit. Thus far, its record for getting the sporting equipment to the correct destination for the vacationer is perfect. This indicates the company excels at which component of service quality? Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. Users can see the ratings given to each specialist by previous users before they contact that specialist. Which service component does Keen.com use to help its customers evaluate its service quality? Clarksdale, Mississippi, is the home of the Shack Up Inn, the only inn in the world that is made up of actual shotgun houses. (Shotgun houses contain two or three rooms in a row. A resident of the house is able to stand at the front door and shoot through all the rooms and out the back door without hitting any walls.) Obviously, the shacks are not luxurious although they do have indoor plumbing and electricity. The owner decided these were the only changes customers would want to be made in the shacks. In this instance, the service provider is likely to have a gap between: A) tangibles B) empathy C) reliability D) flexibility E) assurance A) empathy B) assurance C) tangibles D) flexibility E) responsiveness A C A B A) what management thinks customers want and the quality specifications that management develops to provide the service B) what the company tells the customer it provides and what is actually provided C) service quality specifications and employee training D) what customers want and what management thinks customers want E) service expectations and what customers are told to expect AD Which of the following is NOT an example of a type of service processing that A) people processing can occur? B) product processing C) possession processing D) information processing E) mental stimulus processing Which of the following services is an example of possession processing? A) a theatrical performance B) an X-ray of a broken bone C) an advertising agency D) marriage counseling E) heating system repair Western Union is in the business of providing a medium for international money transfers. A Mexican working in the United States can transfer a portion of his or her earnings to family members still living in Mexico. It is now planning to move into areas traditionally handled by banks such as offering its customers checking accounts and loans. If it does follow through and provide these additional services, they will exemplify _____ services. A) complementary B) secondary C) peripheral D) supplementary E) additional A B A E AD A pest control company paints dead roaches on its trucks and uses similar A) stressing tangible cues graphics on its letterhead, business cards, and all promotions. The pest control B) stressing homogeneity company is using what type of promotion strategy? C) using personal information sources D) providing packaging cues E) communicating service integration signals Boutique hotels are the perfect hotels for people who are tired of traditional cookie cutter hotels that all look alike. One boutique hotel chain calls its staff its cast and has them wear fashionable solid black outfits. Its corridors are softly lit, and suite doors are arches lit with recessed blue lighting. Its lobby has a ceilingto-floor waterwall. The promotional strategy for this boutique hotel is to: A) create a strong organizational image B) separate the point of production from the point of service consumption C) emphasize postpurchase communication D) stress intangible cues E) use personal information sources AA AA The three categories of pricing objectives for services are: A) sales-, quality-, and locationoriented A C B) quality-, value-, and consumer-oriented C) revenue-, operations-, and patronage-oriented D) turnover-, volume-, and capacity-oriented E) equity-, cost-, and revenueoriented Unfortunately, many institutions of higher learning have focused efforts on population segments only when they felt a segment could do something for them. For example, many schools have bombarded pre-college students when they feel they are needed to fill classroom seats. Few have taken the approach of trying to determine what the potential student really wants or needs. Often, once graduated, a former student is only thought of as an alumnus or alumna, not as someone who can again benefit from the services provided by the institution. This description suggests that _____ marketing would be useful. Emmy award-winning actress Kirstie Alley became the spokesperson for Narconon International in 1990. Her concern about the increased drug use by young people prompted her to support this ____ whose goal is to provide treatment and rehabilitation to young people before they become hardened criminals. A) interactive B) relationship C) patronage D) nonprofit E) affiliation A B A) nonprofit organization B) synergistic entity C) company with no equity D) service provider E) patronage-oriented organization AA What is one of the consequences of the American Red Cross's nonprofit A) The success of the Red Cross A A orientation? cannot be measured in financial terms. B) The Red Cross will not make as much money as a profitoriented firm. C) The Red Cross does not have to worry about revenues and costs. D) The Red Cross is not expected to be as efficient as a for-profit firm. E) The Red Cross's success is based on how much money is donated to it. The major difference between the marketing orientation of FedEx and of the U.S. A) Toys for Tots does not have Marine Corps annual Toys for Tots program is that: to be concerned with advertising or promotion B) FedEx has a target market C) quantitative methods of market research can be used at FedEx D) only FedEx has a product that can be marketed E) the rewards of the Toys for Tots program are long-term social benefits Management-labor mediation, child care, and college preparation classes are all A) inseparability services that are produced and consumed at the same time. All of these services B) intangibility exhibit the service characteristic of: C) heterogeneity D) perishability E) variability A reading service for the visually impaired requires each reader applicant to prepare and submit a one-hour interview tape of material chosen by the service to determine whether the reader has pleasing vocal characteristics and is accent-free so that it is not necessary to use the same reader every time. The reading service is trying to limit problems associated with the service characteristic of: A) tangibility B) credence quality C) heterogeneity D) simultaneous production and consumption E) flexibility A E AA A C It is difficult to achieve consistency and standardization of services because of A) customization which service characteristic? B) simultaneous production and consumption C) intangibility A E D) perishability E) heterogeneity Which of the following statements describes how a nonprofit organization should A) The organization should try to A D design its product offering? create products it can inventory. B) The organization should remember the product offering is not as crucial to organizational success as the other elements of the service mix. C) The product offering should be kept as simple as possible. D) The organization will need to satisfy the needs of the target market or it will fail. E) The product offering will have to be tangible. The Chrysalis Job Training for the Disabled program wants to notify the community about its upcoming rummage sale. As an experienced marketer and director of the program, you plan to visit several local radio and televisions stations to request: Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. Keen.com charges a per-minute fee to the person who contacts its specialist. Keen.com would be classified as a: A) freestanding inserts B) nonsponsored advertising C) advocacy marketing D) public service advertising E) societal marketing A) good B) tangible resource C) tangible product D) service E) nonprofit organization AD AD A service cannot be touched, seen, tasted, heard, or felt in the same manner in A) impervious which goods can be sensed and, therefore, is referred to as: B) extraneous C) synergistic D) perishable E) intangible Obeah used to sell office furniture and supplies, but he now has semi-retired and started a cleaning service specializing in cleaning fire- and water-damaged structures. Selling cleaning services differs greatly from selling office furniture and supplies because cleaning services are: Alabama Adventure, an amusement park in Birmingham, offers reduced rates on weekdays and higher prices for those who want to attend on weekends. It also offers lower prices for patrons who enter the park after 4 p.m. This is a way to contend with the service characteristic of: A) homogeneous B) unknowable C) intangible D) synergistic E) comestible A) variability B) perishability C) intangibility D) inseparability E) simultaneous production and consumption A) intangibility B) inseparability C) perishability D) simultaneous production and consumption E) variability A) empathy B) assurance C) tangibles D) flexibility E) responsiveness A E A C A B Virtual Bellhop is a service provider that ships awkward sporting goods to vacation destinations so its customers do not have to worry about lugging them through airports or having them damaged in transit. During the summer months and December, the company is extremely busy packaging and shipping sporting gear. During other months that are not popular vacation months, it may only have one customer a day. This inconsistency of demand means Virtual Bellhop has to deal with the problems associated with the service characteristic of: Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. Users can see the ratings given to each specialist by previous users before they contact that specialist. Which service component does Keen.com use to help its customers evaluate its service quality? At the dealer-owned Radio Shack, the store manager is frustrated at the level of service employees provide to customers even after he wrote a guide to customer service and instructed each employee to read the guide. This is an example of a gap between: A C A B A) the service quality AA specifications and the service that is actually provided B) what the company provides and what the customer is told it provides C) the service customers receive and the service they want D) what customers want and what management thinks customers want E) what management thinks customers want and the quality specifications management develops to provide the service If a customer expects to wait one week for a pair of shoes to be mended but is told that the shoes are ready to be picked up less than 24 hours after leaving them at the repair shop, the customer's evaluation of service quality will be high. However, a two-week wait would result in a lower evaluation. The two-week gap would illustrate a gap between: A) service quality specifications and the service that is actually provided B) the service customers receive and the service they want C) what the company provides and what the customer is told it provides D) what customers want and what management thinks customers want E) what management thinks customers want and the quality specifications management develops to provide A) possession processing B) information processing C) mental stimulus processing D) people processing E) homogeneous processing A B TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home. Which category of service processing does TeamBuilds offer? A C Which of the following services is an example of information processing? A) investment advice B) a funeral service C) pet neutering D) the fitting of orthodontic braces E) attendance at a Major League Baseball game TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home. TeamBuilds' _____ service is improved work team relationships. A) primary B) core C) niche D) supplementary E) foundation AA A B _____ is the strategy that uses technology to deliver customized services on a A) Mass standardization mass basis. B) Aggregated services C) Technological processing D) Mass customization E) Aggregated marketing Determining costs can be extremely difficult for a service provider that has A) market-share-oriented adopted a(n) _____ pricing objective and may limit the usefulness of the B) operations-oriented objective. C) revenue-oriented D) patronage-oriented E) break-even A focus on maximizing the number of customers using a service is a(n) _____ A) maximization of demand pricing objective for service firms. B) patronage-oriented C) profitability-oriented D) operations-oriented E) revenue-oriented One of the main responsibilities of sport marketers is to keep their loyal customers A) interactive as heavy users and escalate lower-level users into loyal customers. An effective B) relationship tool for accomplishing this goal would be _____ marketing. C) patronage D) nonprofit E) affiliation AD A C A B A B Treating employees as customers and developing systems and benefits that satisfy A) organizational quality their needs such as training, stressing teamwork, and employee empowerment is B) relationship known as _____ marketing. C) internal D) job-faceted E) job-satisfaction The Container Store r CEO believes the company has a moral obligation to A) internal marketing ensure employees are provided with an exciting and secure atmosphere to work in B) service quality on a daily basis. He is concerned about: C) tangible cueing D) relationship marketing E) patronage programming Aristide and Oana are considering attending a clinic to help them quit smoking. A) tangible attribute They will be better able to assess the _____ of the clinic after they attend the B) experience quality clinic and learn about the techniques it uses to help customers quit smoking. C) creative quality D) credence quality E) heterogeneity feature Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. _____ is a characteristic of this service because you cannot evaluate its usefulness until after you have received and used the specialist's advice. A local church formed a special committee to provide aid to the homeless in its county. The church applied to the city and county governments for funding but was denied when it could not adequately state what services it would offer. In this case, the special committee failed because it had not defined its: Throughout the United States, dancers are joining hands, arms, and legs to present a Virtual Kickline Performance as a sign of their unified support for National Dance Week (NDW) and its mission statement. The purpose of NDW is to educate the American public on the cultural contributions of dance to our society and raise public awareness to the benefits of dance in our culture. This Virtual Kickline Performance is an example of a _____ strategy. A business professional from The Center for Retailing at Morehead University has been donating several hours of consulting time to local nonprofit organizations each month. This could be expected to provide the center with all of the following benefits EXCEPT: A) Reliability B) Experience quality C) Search quality D) Temporal quality E) Heterogeneous satisfaction A C AA A B A B A) user market B) target market C) sponsoring organizations D) donor market E) product offering A) target market B) distribution C) product D) promotion E) direct marketing A) community approval B) goodwill C) immediate financial gain D) personal contacts E) personal satisfaction A E AD A C The service sector: A) has remained steady at 44 million jobs in the United States for the last 20 years B) employs roughly 80 percent of the U.S. workforce C) is rarely capital intensive, as most services do not need high technology D) is decreasing in importance in the United States E) tends to create fewer new jobs than the manufacturing industry Obeah used to sell office furniture and supplies, but he now has semi-retired and started a cleaning service specializing in cleaning fire- and water-damaged structures. Selling cleaning services differs greatly from selling office furniture and supplies because cleaning services are: Ian Trent has an MBA and is being recruited by an investment banking firm as a sales representative. He has had ten years of experience in selling industrial supplies. He was quite successful in this job but is worried that selling investment strategies may be more difficult. What factor would be the major reason for this worry? A) homogeneous B) unknowable C) intangible D) synergistic E) comestible A) Services are intangible and, therefore, different from his previous experience. B) His services and the products he sells are inseparable. C) The marketing program of investment strategies is A B A C AA inconsistent. D) The cost inventory management system of reimbursing him may cause a problem when he makes investments. E) The extensiveness of distribution is unimportant when selling an investment service. Western Union allows people in one nation or one area of the country to A) tangibility dependably, accurately, and consistently transfer funds to each other. In other B) responsiveness word, Western Union provides which service quality to its users? C) assurance D) responsibility E) reliability Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. Users can see the ratings given to each specialist by previous users before they contact that specialist. Which service component does Keen.com use to help its customers evaluate its service quality? Courtney's mother died of breast cancer, and she is afraid of getting cancer. When she went to get a baseline mammogram, she wanted a facility where the personnel would not think her fears were silly and would answer all of her questions without making her feel stupid for asking them. By which of the following components of service quality is Courtney most likely to rate the mammogram provider? An Internet company, icruise.com, sold cruises by offering a "Suntan Guarantee." The guarantee promised a full refund on a Caribbean cruise if more than onequarter inch of rain fell from 10 a.m. to 4 p.m. for a preset number of days depending on the length of the cruise. If it rained and the Internet company failed to honor its refund policy, it would represent a gap between: A) empathy B) assurance C) tangibles D) flexibility E) responsiveness A E A B A) empathy B) assurance C) tangibles D) reliability E) responsiveness A) what management thinks customers want and the quality specifications that management develops to provide the service B) what the company tells the customer it provides and what is actually provided C) service quality specifications and employee training D) what customers want and what management thinks customers want E) none of these AA A B Which of the following is NOT an example of a type of service processing that A) people processing can occur? B) product processing C) possession processing D) information processing E) mental stimulus processing Budget airlines are a new service in China. Neither their passengers nor the airlines themselves know what to expect from each other. Shanghai-based Spring Airlines is a start-up service with a tight budget. Spring Airlines would engage in _____ processing. A) people B) mechanical C) possession D) mental E) information A B AA Which of the following services is an example of possession processing? A) a theatrical performance B) an X-ray of a broken bone C) an advertising agency D) marriage counseling E) heating system repair An Internet company, icruise.com, sold cruises by offering a "Suntan Guarantee." The guarantee promised a full refund on a Caribbean cruise if more than onequarter inch of rain fell from 10 a.m. to 4 p.m. for a preset number of days depending on the length of the cruise. The _____ service offered by icruise is travel. The guarantee is a _____ service. A) supplementary; core B) core; customized C) core; supplementary D) customized; standardized E) complementary; supplementary A E A C Western Union is in the business of providing a medium for international money A) supplementary transfers. A Mexican working in the United States can transfer a portion of his or B) benchmarked A C her earnings to family members still living in Mexico. The wire transfer of funds C) core is the _____ service the company provides. D) primary E) fundamental Marriott Hotels, as well as Hyatt Regency and Adam's Mark Inns, have expended many resources in developing Web sites that allow prospective customers to learn all that is necessary before selecting a hotel destination. The sites then allow individuals to make reservations at the hotel that best satisfies their requirements. Which of the following reflects the distribution strategy used by these hotel chains? A) considerations of the storage of the service B) the development of a long channel of intermediaries C) the decision to use direct distribution D) intensity of distribution E) the physical appearance of your particular outlet A C A focus on maximizing the surplus of income over costs is a(n) _____ pricing A) revenue-oriented objective for service firms. B) operations-oriented C) market-share-oriented D) patronage-oriented E) service-quality Alabama Adventure, an amusement park with a water slide, charges less for weekday admission than it does for weekend attendance. It also has a lower ticket price for patrons who arrive at 4 p.m. Because it is focusing on coordinating supply and demand by varying prices, it is using a(n) _____ pricing objective for service firms. A continuing problem for most Minor League Baseball (MiLB) teams is low attendance. Event and venue sponsors want to see fans in the stadiums, and the players appreciate fan support. Given this information, which pricing strategy would you recommend MiLB teams use? A) revenue-oriented B) operations-oriented C) image-focused D) patronage-oriented E) equity-oriented A) operations-oriented pricing B) peak profitability pricing C) patronage-oriented pricing D) supply-demand pricing E) revenue-oriented pricing AA A B A C Satisfied customers are likely to engage in positive word-of-mouth A) interactive communication, thereby helping to bring in new customers. Thus, a method for B) affiliation attracting, developing, and retaining customers is known as _____ marketing. C) patronage D) ambush E) relationship Aristide and Oana are considering attending a clinic to help them quit smoking. A) tangible attribute They will be better able to assess the _____ of the clinic after they attend the B) experience quality clinic and learn about the techniques it uses to help customers quit smoking. C) creative quality D) credence quality E) heterogeneity feature A E A B Which of the following services would be most likely to exhibit strong credence A) a math tutorial service A qualities? B) the repair of a leaky drain C) the preparation of a dead body for burial D) tax return preparation E) a landscaping service that mows lawns It is difficult to achieve consistency and standardization of services because of A) customization which service characteristic? B) simultaneous production and consumption C) intangibility D) perishability E) heterogeneity Jackson Caputo owns and operates Jax Stables, a complete horse service that offers grooming, training, show training for handlers, boarding, and veterinary care. To maintain a quality image, Caputo regularly provides training for each employee in the company's operations, objectives, and expected performance standards. What unique aspect of services is Caputo attempting to address? A) heterogeneity B) perishability C) intangibility D) simultaneous production and consumption E) unfocused targeting A C E AA Most governmental organizations are prohibited from: A) using publicity in any form B) engaging in personal selling C) using public service announcements D) advertising E) direct marketing AD Virtual Bellhop is a company that ships awkward sporting goods to vacation destinations so its customers to not have to worry about lugging them through airports or having them damaged in transit. Thus far, its record for getting the sporting equipment to the correct destination for the vacationer is perfect. This indicates the company excels at which component of service quality? Virtual Bellhop is a company that ships awkward sporting goods to vacation destinations so its customers to not have to worry about lugging them through airports or having them damaged in transit. The care with which the items are packed and the condition of the package when it arrives indicate concern with which aspect of service quality? TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home. The _____ could be used to identify the problem if there were significant differences between what TeamBuilds says it provides to customers and what it actually provides. At the dealer-owned Radio Shack, the store manager is frustrated at the level of service employees provide to customers even after he wrote a guide to customer service and instructed each employee to read the guide. This is an example of a gap between: A) tangibles B) empathy C) reliability D) flexibility E) assurance A) tangibles B) responsiveness C) reliability D) variability E) homogeneity A) gap model of service quality B) service pyramid C) four dimensions of service quality D) service paradigm E) service delineation matrix A C AA AA A) the service quality AA specifications and the service that is actually provided B) what the company provides and what the customer is told it provides C) the service customers receive and the service they want D) what customers want and what management thinks customers want E) what management thinks customers want and the quality specifications management develops to provide the service A) what management thinks customers want and the quality specifications that management develops to provide the service B) what the company tells the customer it provides and what is actually provided C) service quality specifications and employee training D) what customers want and what management thinks customers want E) none of these A B An Internet company, icruise.com, sold cruises by offering a "Suntan Guarantee." The guarantee promised a full refund on a Caribbean cruise if more than onequarter inch of rain fell from 10 a.m. to 4 p.m. for a preset number of days depending on the length of the cruise. If it rained and the Internet company failed to honor its refund policy, it would represent a gap between: Which of the following statements about developing marketing mixes for services A) The variability and A is true? perishability of services may require adjustments in marketing mix elements. B) Marketing mixes for services are often different than those for products. C) Elements of the marketing mix must be adjusted for the unique characteristics of services. D) The intangibility and simultaneous production and consumption of services may require adjustments in marketing mix elements. E) All of the statements about developing marketing mixes are true. Western Union is in the business of providing a medium for international money A) supplementary transfers. A Mexican working in the United States can transfer a portion of his or B) benchmarked A E C her earnings to family members still living in Mexico. The wire transfer of funds C) core is the _____ service the company provides. D) primary E) fundamental Promotion strategies for dealing with the unique features of services include all of A) using personal sources of the following EXCEPT: information B) creating strong organizational images C) stressing tangible cues D) using postpurchase communication E) satisfying patronage-oriented objectives You have just started a limousine service and strive for an image of quality and luxury. Your limos are always spotlessly clean on the inside, freshly waxed, and stocked with flowers, champagne, free car phones, and televisions. Your drivers are always immaculately dressed and are required to hold the door open for patrons entering and leaving the car. Your promotional strategy is stressing: A continuing problem for most Minor League Baseball (MiLB) is teams low attendance. Event and venue sponsors want to see fans in the stadiums, and the players appreciate fan support. Given this information, which pricing strategy would you recommend MiLB teams use? A) patronage-oriented objectives B) tangible cues C) prestige prompts D) intangible motivators E) physiological prompts A) operations-oriented pricing B) peak profitability pricing C) patronage-oriented pricing D) supply-demand pricing E) revenue-oriented pricing A E A B A C Satisfied customers are likely to engage in positive word-of-mouth A) interactive communication, thereby helping to bring in new customers. Thus, a method for B) affiliation attracting, developing, and retaining customers is known as _____ marketing. C) patronage D) ambush E) relationship Unfortunately, many institutions of higher learning have focused efforts on population segments only when they felt a segment could do something for them. For example, many schools have bombarded pre-college students when they feel they are needed to fill classroom seats. Few have taken the approach of trying to determine what the potential student really wants or needs. Often, once graduated, a former student is only thought of as an alumnus or alumna, not as someone who can again benefit from the services provided by the institution. This description suggests that _____ marketing would be useful. A) interactive B) relationship C) patronage D) nonprofit E) affiliation A E A B One of the main responsibilities of sport marketers is to keep their loyal customers A) interactive as heavy users and escalate lower-level users into loyal customers. An effective B) relationship tool for accomplishing this goal would be _____ marketing. C) patronage D) nonprofit E) affiliation The level of relationship marketing that is least likely to be effective in the long A) personal communications term because its advantage is easily imitated by other firms is based on: B) social bonds C) service delivery heuristics D) pricing incentives E) structural bonds Building value-added services that are not readily available from other firms into A) financial bonds the delivery system defines relationship marketing based on the creation of: B) social bonds C) service delivery paradigms D) personal communication channels E) structural bonds Many U.S. services industries have the potential for globalization because of their A) soft-drink bottling existing competitive advantages. According to the text, which of the following is B) construction and engineering an example of a service industry that possesses a distinct competitive advantage? C) book publishing D) petroleum E) sports franchises A _____ seeks to achieve some goal other than the usual business goals of profit, A) nonprofit organization market share, or return on investment. B) synergistic entity C) company with no equity D) service provider E) patronage-oriented organization A B AD A E A B AA Western Union has 225,000 locations where clients can receive money in 196 countries. Because a person can send money from a small town in Georgia to a small town in Mexico without worrying, Western Union has a high degree of _____ quality. A) observation B) survey C) experience D) research E) credence A C Aristide and Oana are considering attending a clinic to help them quit smoking. A) tangible attribute They will be better able to assess the _____ of the clinic after they attend the B) experience quality clinic and learn about the techniques it uses to help customers quit smoking. C) creative quality D) credence quality E) heterogeneity feature Management-labor mediation, child care, and college preparation classes are all A) inseparability services that are produced and consumed at the same time. All of these services B) intangibility exhibit the service characteristic of: C) heterogeneity D) perishability E) variability LaVergne had her makeup professionally applied for her prom night. She went to the beauty salon, watched as the makeup artist applied cosmetics to her face, and then went home feeling gorgeous. LaVergne's makeover illustrates which service characteristic? A) intangibility B) inseparability C) heterogeneity D) perishability E) flexibility A B AA A B There are fewer problems caused by the service characteristic of _____ when the A) perishability service being purchased requires little interaction between the service personnel B) inseparability and the customer. C) intangibility D) heterogeneity E) instability If a benefit is indirect to the customer, the marketer may find a challenge in A) benefit complexity promoting a product with little: B) feature charisma C) benefit strength D) personalization E) benefit exchange The Chrysalis Job Training for the Disabled program wants to notify the community about its upcoming rummage sale. As an experienced marketer and director of the program, you plan to visit several local radio and televisions stations to request: A) freestanding inserts B) nonsponsored advertising C) advocacy marketing D) public service advertising E) societal marketing AD A C AD In a nonprofit organization, _____ are often concerned with partially or fully A) nonfiscal costs defraying costs rather than achieving a profit. B) pricing objectives C) cause-related goals D) equity earnings E) liquidity fees Baltimore's Chesapeake Habitat for Humanity (CHH) renovates vacant houses and sells them at no-interest mortgage rates to low-income home buyers. To pay some of the costs of the renovation supplies, CHH has established a for-profit company called TeamBuilds, where corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovation. TeamBuilds is an example of a(n): Ian Trent has an MBA and is being recruited by an investment banking firm as a sales representative. He has had ten years of experience in selling industrial supplies. He was quite successful in this job but is worried that selling investment strategies may be more difficult. What factor would be the major reason for this worry? A) service provider B) possession processor C) aggregated market D) market niche E) target market A) Services are intangible and, therefore, different from his previous experience. B) His services and the products he sells are inseparable. C) The marketing program of investment strategies is inconsistent. D) The cost inventory management system of reimbursing him may cause a problem when he makes investments. E) The extensiveness of distribution is unimportant when selling an investment service. A B AA AA Virtual Bellhop is a service provider that ships awkward sporting goods to vacation destinations so its customers do not have to worry about lugging them through airports or having them damaged in transit. During the summer months and December, the company is extremely busy packaging and shipping sporting gear. During other months that are not popular vacation months, it may only have one customer a day. This inconsistency of demand means Virtual Bellhop has to deal with the problems associated with the service characteristic of: TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home. The _____ could be used to identify the problem if there were significant differences between what TeamBuilds says it provides to customers and what it actually provides. At the dealer-owned Radio Shack, the store manager is frustrated at the level of service employees provide to customers even after he wrote a guide to customer service and instructed each employee to read the guide. This is an example of a gap between: A) intangibility B) inseparability C) perishability D) simultaneous production and consumption E) variability A) gap model of service quality B) service pyramid C) four dimensions of service quality D) service paradigm E) service delineation matrix A C AA A) the service quality AA specifications and the service that is actually provided B) what the company provides and what the customer is told it provides C) the service customers receive and the service they want D) what customers want and what management thinks customers want E) what management thinks customers want and the quality specifications management develops to provide the service A C Which of the following services is an example of mental stimulus processing? A) taxi cab service B) insurance C) a professional tennis match D) veterinarian care E) a hair cut An Internet company, icruise.com, sold cruises by offering a "Suntan Guarantee." The guarantee promised a full refund on a Caribbean cruise if more than onequarter inch of rain fell from 10 a.m. to 4 p.m. for a preset number of days depending on the length of the cruise. The _____ service offered by icruise is travel. The guarantee is a _____ service. A) supplementary; core B) core; customized C) core; supplementary D) customized; standardized E) complementary; supplementary A C Determining costs can be extremely difficult for a service provider that has A) market-share-oriented adopted a(n) _____ pricing objective and may limit the usefulness of the B) operations-oriented objective. C) revenue-oriented D) patronage-oriented E) break-even A focus on maximizing the number of customers using a service is a(n) _____ A) maximization of demand pricing objective for service firms. B) patronage-oriented C) profitability-oriented D) operations-oriented E) revenue-oriented Because many services involve a process of continuous interaction between the A) interactive service organization and the customer, _____ marketing is an important strategy. B) relationship C) patronage D) nonprofit E) affiliation Satisfied customers are likely to engage in positive word-of-mouth A) interactive communication, thereby helping to bring in new customers. Thus, a method for B) affiliation attracting, developing, and retaining customers is known as _____ marketing. C) patronage D) ambush E) relationship Unfortunately, many institutions of higher learning have focused efforts on population segments only when they felt a segment could do something for them. For example, many schools have bombarded pre-college students when they feel they are needed to fill classroom seats. Few have taken the approach of trying to A) interactive B) relationship C) patronage D) nonprofit A C A B A B A E A B determine what the potential student really wants or needs. Often, once graduated, E) affiliation a former student is only thought of as an alumnus or alumna, not as someone who can again benefit from the services provided by the institution. This description suggests that _____ marketing would be useful. The level of relationship marketing that is least likely to be effective in the long A) personal communications term because its advantage is easily imitated by other firms is based on: B) social bonds C) service delivery heuristics D) pricing incentives E) structural bonds Building value-added services that are not readily available from other firms into A) financial bonds the delivery system defines relationship marketing based on the creation of: B) social bonds C) service delivery paradigms D) personal communication channels E) structural bonds Western Union has 225,000 locations where clients can receive money in 196 countries. Because a person can send money from a small town in Georgia to a small town in Mexico without worrying, Western Union has a high degree of _____ quality. Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. _____ is a characteristic of this service because you cannot evaluate its usefulness until after you have received and used the specialist's advice. Deidre Longo has just accepted a position at a major entertainment venue where she is responsible for selling season tickets. She formerly was a salesperson for a company that sold sound systems for arenas, stadiums, and theaters. She believed she understood why theater managers bought certain products but realizes selling tickets to individuals will be different. What is one of the key differences she can expect to find? A) observation B) survey C) experience D) research E) credence A) Reliability B) Experience quality C) Search quality D) Temporal quality E) Heterogeneous satisfaction AD A E A C A B A) The customer will select and evaluate entertainment on the basis of search qualities. B) Customers are engaged in this as a low-involvement product. C) A consumer will use experience qualities to evaluate the entertainment service. D) The use of the service will involve standardized service levels and not exhibit heterogeneity problems. E) The location of Longo's office is a key strategy criterion. A C In a nonprofit organization, _____ are often concerned with partially or fully A) nonfiscal costs defraying costs rather than achieving a profit. B) pricing objectives C) cause-related goals D) equity earnings E) liquidity fees Western Union is in the business of international money transfer. A Mexican working in the United States can transfer a portion of his or her earnings to family members still living in Mexico. Western Union's market for wiring money has grown dramatically over the last years because the company provides a _____ that is easy to use and reliable. TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home. Participants in the teambuilding exercises would use a(n) _____ quality to evaluate TeamBuilds. Virtual Bellhop is a service provider that ships awkward sporting goods to vacation destinations so its customers do not have to worry about lugging them through airports or having them damaged in transit. During the summer months and December, the company is extremely busy packaging and shipping sporting gear. During other months that are not popular vacation months, it may only have one customer a day. This inconsistency of demand means Virtual Bellhop has to A) good B) tangible resource C) tangible product D) service E) synergy A) credence B) search C) information D) appraisal E) experience A) intangibility B) inseparability C) perishability D) simultaneous production and consumption E) variability A B AD A E A C deal with the problems associated with the service characteristic of: Which of the following is NOT a service component customers use to evaluate A) validity service quality? B) empathy C) assurance D) responsiveness E) reliability Western Union allows people in one nation or one area of the country to A) tangibility dependably, accurately, and consistently transfer funds to each other. In other B) responsiveness word, Western Union provides which service quality to its users? C) assurance D) responsibility E) reliability Virtual Bellhop is a company that ships awkward sporting goods to vacation destinations so its customers to not have to worry about lugging them through airports or having them damaged in transit. Thus far, its record for getting the sporting equipment to the correct destination for the vacationer is perfect. This indicates the company excels at which component of service quality? Virtual Bellhop is a company that ships awkward sporting goods to vacation destinations so its customers to not have to worry about lugging them through airports or having them damaged in transit. The care with which the items are packed and the condition of the package when it arrives indicate concern with which aspect of service quality? TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home. The _____ could be used to identify the problem if there were significant differences between what TeamBuilds says it provides to customers and what it actually provides. Clarksdale, Mississippi, is the home of the Shack Up Inn, the only inn in the world that is made up of actual shotgun houses. (Shotgun houses contain two or three rooms in a row. A resident of the house is able to stand at the front door and shoot through all the rooms and out the back door without hitting any walls.) Obviously, the shacks are not luxurious although they do have indoor plumbing and electricity. The owner decided these were the only changes customers would want to be made in the shacks. In this instance, the service provider is likely to have a gap between: A) tangibles B) empathy C) reliability D) flexibility E) assurance A) tangibles B) responsiveness C) reliability D) variability E) homogeneity A) gap model of service quality B) service pyramid C) four dimensions of service quality D) service paradigm E) service delineation matrix A) what management thinks customers want and the quality specifications that management develops to provide the service B) what the company tells the customer it provides and what is actually provided C) service quality specifications and employee training D) what customers want and what management thinks customers want E) service expectations and what customers are told to expect A) primary B) core C) niche D) supplementary E) foundation A) supplementary B) benchmarked C) core D) primary E) fundamental AA A E A C AA AA AD TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home. TeamBuilds' _____ service is improved work team relationships. Western Union is in the business of providing a medium for international money transfers. A Mexican working in the United States can transfer a portion of his or her earnings to family members still living in Mexico. The wire transfer of funds is the _____ service the company provides. A B A C _____ is the strategy that uses technology to deliver customized services on a A) Mass standardization mass basis. B) Aggregated services C) Technological processing D) Mass customization E) Aggregated marketing The ability of each hotel guest to use his or her room r television to check out of A) a cooperative service the hotel room and to confirm additional charges on bills in the hotel's restaurants B) mass customization and gift shops is an example of: C) aggregated standardization D) a market development strategy E) mental stimulus processing AD A B The catalog and online retailer Lands' End offers custom-fit chinos via the Web. For a price of $54, U.S.-based customers can select their style and fit preferences, enter details about their body shape, and receive a pair of custom-made pants in their mailbox two to four weeks later. For Lands' End, this means the company avoids stocking up to 2.8 billion different styles and sizes of garments. Instead, Lands' End orders each unit to be individually fashioned by a contract manufacturer that ships directly to the consumer. Lands End is using: A) mass customization B) supplementary service C) component service D) customized service E) nonprofit marketing AA Determining costs can be extremely difficult for a service provider that has A) market-share-oriented adopted a(n) _____ pricing objective and may limit the usefulness of the B) operations-oriented objective. C) revenue-oriented D) patronage-oriented E) break-even Satisfied customers are likely to engage in positive word-of-mouth A) interactive communication, thereby helping to bring in new customers. Thus, a method for B) affiliation attracting, developing, and retaining customers is known as _____ marketing. C) patronage D) ambush E) relationship The predominant form of nonprofit organization in the United States is: A) farms B) arts museums and programs C) private-sector volunteer organizations D) social service firms E) government As with for-profit organizations, the first step in developing a marketing program A) determine the marketing mix for a nonprofit organization is to: B) define organizational objectives C) establish the financial needs of the organization D) create a promotion to attract donors E) select a direct distribution outlet is difficult to achieve consistency and standardization of services because of A) customization which service characteristic? B) simultaneous production and consumption C) intangibility D) perishability E) heterogeneity A C A E A E A B A E Which of the following statements describes how a nonprofit organization should A) The organization should try to A D design its product offering? create products it can inventory. B) The organization should remember the product offering is not as crucial to organizational success as the other elements of the service mix. C) The product offering should be kept as simple as possible. D) The organization will need to satisfy the needs of the target market or it will fail. E) The product offering will have to be tangible. If a benefit is indirect to the customer, the marketer may find a challenge in A) benefit complexity promoting a product with little: B) feature charisma C) benefit strength D) personalization E) benefit exchange A(n) _____ is the result of applying human or mechanical efforts to people or A) application processor objects. B) profit intermediary C) tangible product D) service E) nonprofit organization Obeah used to sell office furniture and supplies, but he now has semi-retired and A) homogeneous A C AD A C started a cleaning service specializing in cleaning fire- and water-damaged B) unknowable structures. Selling cleaning services differs greatly from selling office furniture C) intangible and supplies because cleaning services are: D) synergistic E) comestible Ian Trent has an MBA and is being recruited by an investment banking firm as a sales representative. He has had ten years of experience in selling industrial supplies. He was quite successful in this job but is worried that selling investment strategies may be more difficult. What factor would be the major reason for this worry? A) Services are intangible and, therefore, different from his previous experience. B) His services and the products he sells are inseparable. C) The marketing program of investment strategies is inconsistent. D) The cost inventory management system of reimbursing him may cause a problem when he makes investments. E) The extensiveness of distribution is unimportant when selling an investment service. A) variability B) perishability C) intangibility D) inseparability E) simultaneous production and consumption A) intangibility B) inseparability C) perishability D) simultaneous production and consumption E) variability AA Alabama Adventure, an amusement park in Birmingham, offers reduced rates on weekdays and higher prices for those who want to attend on weekends. It also offers lower prices for patrons who enter the park after 4 p.m. This is a way to contend with the service characteristic of: A B Virtual Bellhop is a service provider that ships awkward sporting goods to vacation destinations so its customers do not have to worry about lugging them through airports or having them damaged in transit. During the summer months and December, the company is extremely busy packaging and shipping sporting gear. During other months that are not popular vacation months, it may only have one customer a day. This inconsistency of demand means Virtual Bellhop has to deal with the problems associated with the service characteristic of: A C Which of the following is NOT a service component customers use to evaluate A) validity service quality? B) empathy C) assurance D) responsiveness E) reliability Western Union allows people in one nation or one area of the country to A) tangibility dependably, accurately, and consistently transfer funds to each other. In other B) responsiveness word, Western Union provides which service quality to its users? C) assurance D) responsibility E) reliability Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. Users can see the ratings given to each specialist by previous users before they contact that specialist. Which service component does Keen.com use to help its customers evaluate its service quality? If a customer expects to wait one week for a pair of shoes to be mended but is told that the shoes are ready to be picked up less than 24 hours after leaving them at the repair shop, the customer's evaluation of service quality will be high. However, a two-week wait would result in a lower evaluation. The two-week gap would illustrate a gap between: A) empathy B) assurance C) tangibles D) flexibility E) responsiveness AA A E A B A) service quality specifications and the service that is actually provided B) the service customers receive and the service they want C) what the company provides and what the customer is told it provides D) what customers want and what management thinks customers want E) what management thinks customers want and the quality A B specifications management develops to provide Budget airlines are a new service in China. Neither their passengers nor the airlines themselves know what to expect from each other. Shanghai-based Spring Airlines is a start-up service with a tight budget. Spring Airlines would engage in _____ processing. Western Union is in the business of providing a medium for international money transfers. A Mexican working in the United States can transfer a portion of his or her earnings to family members still living in Mexico. The wire transfer of funds is the _____ service the company provides. A) people B) mechanical C) possession D) mental E) information A) supplementary B) benchmarked C) core D) primary E) fundamental AA A C The service offering of G&R Talent Agency is performers suitable for A) standardized appearances on college campuses. This service is an example of the agency's B) customized _____ service. C) supplementary D) core E) component TheKnot.com is an Internet company that is a one-stop source of all the items needed to have a successful wedding including listings of local caterers and photographers. When someone registers on the site, he or she is sent the "Ultimate Wedding Organizer." It offers advice on what to do about "cold feet" and how to handle in-laws. TheKnot.com recognizes that its _____ represents a portfolio of opportunities, risks, and challenges. Budget airlines are a new service in China. One of the major problems faced by these airlines is the tight regulatory controls the Chinese government maintains over them. The government determines which airlines get which routes, and the budget airlines do not get the most profitable business routes. The Chinese government has a major voice is setting the _____ strategies for budget airlines in that country. A) component combination B) offering grouping C) service mix D) SKU offering E) assembly process A) distribution B) promotion C) production D) product E) demand/supply AD A C AA A focus on maximizing the surplus of income over costs is a(n) _____ pricing A) revenue-oriented objective for service firms. B) operations-oriented C) market-share-oriented D) patronage-oriented E) service-quality The Hermitage, Tennessee home of former U.S. president Andrew Jackson offers A) subsidized discount ticket prices to students and senior citizens. This illustrates the _____ B) operations-oriented pricing objective. C) profitability-oriented D) service quality E) patronage-oriented The level of relationship marketing that is least likely to be effective in the long A) personal communications term because its advantage is easily imitated by other firms is based on: B) social bonds C) service delivery heuristics D) pricing incentives E) structural bonds A management consulting business stays in touch with its business customers with phone calls and greeting cards. It periodically sends out needs-assessment questionnaires and designs new services to meet the needs revealed in these surveys. This is an example of relationship marketing based on: A) financial bonds B) social bonds C) service delivery D) patronage bonds E) structural bonds AA A E AD A B A _____ seeks to achieve some goal other than the usual business goals of profit, A) nonprofit organization market share, or return on investment. B) synergistic entity C) company with no equity D) service provider E) patronage-oriented organization Aristide and Oana are considering attending a clinic to help them quit smoking. A) tangible attribute They will be better able to assess the _____ of the clinic after they attend the B) experience quality clinic and learn about the techniques it uses to help customers quit smoking. C) creative quality D) credence quality E) heterogeneity feature A(n) _____ is a characteristic that cannot easily be assessed even after purchase A) heterogeneity feature AA A B A E since the customers do not have the knowledge or experience. B) perishable attribute C) experience quality D) search quality E) credence quality A reading service for the visually impaired requires each reader applicant to prepare and submit a one-hour interview tape of material chosen by the service to determine whether the reader has pleasing vocal characteristics and is accent-free so that it is not necessary to use the same reader every time. The reading service is trying to limit problems associated with the service characteristic of: A) tangibility B) credence quality C) heterogeneity D) simultaneous production and consumption E) flexibility A C It is difficult to achieve consistency and standardization of services because of A) customization which service characteristic? B) simultaneous production and consumption C) intangibility D) perishability E) heterogeneity A E Which of the following statements describes how a nonprofit organization should A) The organization should try to A D design its product offering? create products it can inventory. B) The organization should remember the product offering is not as crucial to organizational success as the other elements of the service mix. C) The product offering should be kept as simple as possible. D) The organization will need to satisfy the needs of the target market or it will fail. E) The product offering will have to be tangible. Baltimore's Chesapeake Habitat for Humanity (CHH) renovates vacant houses and sells them at no-interest mortgage rates to low-income home buyers. To pay some of the costs of the renovation supplies, CHH has established a for-profit company called TeamBuilds, where corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovation. TeamBuilds is an example of a(n): A) service provider B) possession processor C) aggregated market D) market niche E) target market AA A(n) _____ is a characteristic that can be easily assessed prior to purchase, such A) search quality as the softness of a mattress or the color of curtains. B) intangible attribute C) experience quality D) credence quality E) heterogeneity feature Virtual Bellhop is a company that ships awkward sporting goods to vacation destinations so its customers to not have to worry about lugging them through airports or having them damaged in transit. Thus far, its record for getting the sporting equipment to the correct destination for the vacationer is perfect. This indicates the company excels at which component of service quality? Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. Users can see the ratings given to each specialist by previous users before they contact that specialist. Which service component does Keen.com use to help its customers evaluate its service quality? TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home. Which category of service processing does TeamBuilds offer? A) tangibles B) empathy C) reliability D) flexibility E) assurance A) empathy B) assurance C) tangibles D) flexibility E) responsiveness AA A C A B A) possession processing B) information processing C) mental stimulus processing D) people processing E) homogeneous processing A C Which of the following services is an example of mental stimulus processing? A) taxi cab service B) insurance C) a professional tennis match D) veterinarian care A C E) a hair cut TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home. TeamBuilds' _____ service is improved work team relationships. A) primary B) core C) niche D) supplementary E) foundation A B Which of the following is NOT a key factor in the distribution strategy for A) customization services? B) convenience for customers C) number of intermediaries and outlets D) scheduling of service deliveries E) location Budget airlines are a new service in China. One of the major problems faced by these airlines is the tight regulatory controls the Chinese government maintains over them. The government determines which airlines get which routes, and the budget airlines do not get the most profitable business routes. The Chinese government has a major voice is setting the _____ strategies for budget airlines in that country. A) distribution B) promotion C) production D) product E) demand/supply AA AA The three categories of pricing objectives for services are: A) sales-, quality-, and locationoriented B) quality-, value-, and consumer-oriented C) revenue-, operations-, and patronage-oriented D) turnover-, volume-, and capacity-oriented E) equity-, cost-, and revenueoriented The level of relationship marketing that is least likely to be effective in the long A) personal communications term because its advantage is easily imitated by other firms is based on: B) social bonds C) service delivery heuristics D) pricing incentives E) structural bonds Treating employees as customers and developing systems and benefits that satisfy A) organizational quality their needs such as training, stressing teamwork, and employee empowerment is B) relationship known as _____ marketing. C) internal D) job-faceted E) job-satisfaction Many U.S. services industries have the potential for globalization because of their A) soft-drink bottling existing competitive advantages. According to the text, which of the following is B) construction and engineering an example of a service industry that possesses a distinct competitive advantage? C) book publishing D) petroleum E) sports franchises A _____ seeks to achieve some goal other than the usual business goals of profit, A) nonprofit organization market share, or return on investment. B) synergistic entity C) company with no equity D) service provider E) patronage-oriented organization _____ refers to the efforts of public and private nonprofit firms to bring about A) Autonomous marketing mutually satisfying exchanges with their target markets. B) Public affairs marketing C) Social targeting D) Social marketing E) Nonprofit organization marketing An acceptable goal of the Hype and Humble, a Los Angeles nonprofit A) set participation goals to organization dedicated to empowering women and children in crisis, for its r ay provide a 12 percent return on of Pampering program would be to: investment B) increase expenses to fit budgetary allowances C) avoid corporation pitfalls A C AD A C A B AA A E AD D) increase awareness in its target market to 75 percent E) gain a larger market share than other nonprofits that are administering to the same group What is one of the consequences of the American Red Cross's nonprofit A) The success of the Red Cross A A orientation? cannot be measured in financial terms. B) The Red Cross will not make as much money as a profitoriented firm. C) The Red Cross does not have to worry about revenues and costs. D) The Red Cross is not expected to be as efficient as a for-profit firm. E) The Red Cross's success is based on how much money is donated to it. Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. _____ is a characteristic of this service because you cannot evaluate its usefulness until after you have received and used the specialist's advice. A) Reliability B) Experience quality C) Search quality D) Temporal quality E) Heterogeneous satisfaction A B Which of the following services would be most likely to exhibit strong credence A) a math tutorial service A qualities? B) the repair of a leaky drain C) the preparation of a dead body for burial D) tax return preparation E) a landscaping service that mows lawns C Which of the following statements describes how a nonprofit organization should A) The organization should try to A D design its product offering? create products it can inventory. B) The organization should remember the product offering is not as crucial to organizational success as the other elements of the service mix. C) The product offering should be kept as simple as possible. D) The organization will need to satisfy the needs of the target market or it will fail. E) The product offering will have to be tangible. If a benefit is indirect to the customer, the marketer may find a challenge in A) benefit complexity promoting a product with little: B) feature charisma C) benefit strength D) personalization E) benefit exchange Throughout the United States, dancers are joining hands, arms, and legs to present a Virtual Kickline Performance as a sign of their unified support for National Dance Week (NDW) and its mission statement. The purpose of NDW is to educate the American public on the cultural contributions of dance to our society and raise public awareness to the benefits of dance in our culture. This Virtual Kickline Performance is an example of a _____ strategy. A) target market B) distribution C) product D) promotion E) direct marketing A C AD Most governmental organizations are prohibited from: A) using publicity in any form B) engaging in personal selling C) using public service announcements AD D) advertising E) direct marketing In many nonprofit situations the consumer is not charged a tangible price yet must A) liquidity fees absorb time costs, embarrassment costs, or effort costs. These costs are called the B) financial costs organization's: C) fiscal prices D) nonfinancial prices E) retained earnings Ian Trent has an MBA and is being recruited by an investment banking firm as a sales representative. He has had ten years of experience in selling industrial supplies. He was quite successful in this job but is worried that selling investment strategies may be more difficult. What factor would be the major reason for this worry? A) Services are intangible and, therefore, different from his previous experience. B) His services and the products he sells are inseparable. C) The marketing program of investment strategies is inconsistent. D) The cost inventory management system of reimbursing him may cause a problem when he makes investments. E) The extensiveness of distribution is unimportant when selling an investment service. AD AA A(n) _____ is a characteristic that can be easily assessed prior to purchase, such A) search quality as the softness of a mattress or the color of curtains. B) intangible attribute C) experience quality D) credence quality E) heterogeneity feature Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. Users can see the ratings given to each specialist by previous users before they contact that specialist. Which service component does Keen.com use to help its customers evaluate its service quality? Clarksdale, Mississippi, is the home of the Shack Up Inn, the only inn in the world that is made up of actual shotgun houses. (Shotgun houses contain two or three rooms in a row. A resident of the house is able to stand at the front door and shoot through all the rooms and out the back door without hitting any walls.) Obviously, the shacks are not luxurious although they do have indoor plumbing and electricity. The owner decided these were the only changes customers would want to be made in the shacks. In this instance, the service provider is likely to have a gap between: A) empathy B) assurance C) tangibles D) flexibility E) responsiveness AA A B A) what management thinks customers want and the quality specifications that management develops to provide the service B) what the company tells the customer it provides and what is actually provided C) service quality specifications and employee training D) what customers want and what management thinks customers want E) service expectations and what customers are told to expect A) service quality specifications and the service that is actually provided B) the service customers receive and the service they want C) what the company provides and what the customer is told it provides D) what customers want and what management thinks customers want E) what management thinks customers want and the quality specifications management develops to provide AD If a customer expects to wait one week for a pair of shoes to be mended but is told that the shoes are ready to be picked up less than 24 hours after leaving them at the repair shop, the customer's evaluation of service quality will be high. However, a two-week wait would result in a lower evaluation. The two-week gap would illustrate a gap between: A B If a hospital measured the service quality of its physician care in terms of the total A) what customers want and A number of people who were attended to--even if patients appeared to want more what management thinks individualized care--the hospital would be exhibiting a gap between: customers want B) the service quality specifications and the service that is actually provided C) what the company provides and what the customer is told it provides D) what management thinks customers want and the quality specifications management develops to provide the service E) the service customers receive and the service they want Which of the following is NOT an example of a type of service processing that A) people processing can occur? B) product processing C) possession processing D) information processing E) mental stimulus processing The ability of each hotel guest to use his or her room r television to check out of A) a cooperative service the hotel room and to confirm additional charges on bills in the hotel's restaurants B) mass customization and gift shops is an example of: C) aggregated standardization D) a market development strategy E) mental stimulus processing The catalog and online retailer Lands' End offers custom-fit chinos via the Web. For a price of $54, U.S.-based customers can select their style and fit preferences, enter details about their body shape, and receive a pair of custom-made pants in their mailbox two to four weeks later. For Lands' End, this means the company avoids stocking up to 2.8 billion different styles and sizes of garments. Instead, Lands' End orders each unit to be individually fashioned by a contract manufacturer that ships directly to the consumer. Lands End is using: You have just started a limousine service and strive for an image of quality and luxury. Your limos are always spotlessly clean on the inside, freshly waxed, and stocked with flowers, champagne, free car phones, and televisions. Your drivers are always immaculately dressed and are required to hold the door open for patrons entering and leaving the car. Your promotional strategy is stressing: Boutique hotels are the perfect hotels for people who are tired of traditional cookie cutter hotels that all look alike. One boutique hotel chain calls its staff its cast and has them wear fashionable solid black outfits. Its corridors are softly lit, and suite doors are arches lit with recessed blue lighting. Its lobby has a ceilingto-floor waterwall. The promotional strategy for this boutique hotel is to: A) mass customization B) supplementary service C) component service D) customized service E) nonprofit marketing A E B A B AA A) patronage-oriented objectives B) tangible cues C) prestige prompts D) intangible motivators E) physiological prompts A) create a strong organizational image B) separate the point of production from the point of service consumption C) emphasize postpurchase communication D) stress intangible cues E) use personal information sources A B AA A focus on maximizing the surplus of income over costs is a(n) _____ pricing A) revenue-oriented objective for service firms. B) operations-oriented C) market-share-oriented D) patronage-oriented E) service-quality Because many services involve a process of continuous interaction between the A) interactive service organization and the customer, _____ marketing is an important strategy. B) relationship C) patronage D) nonprofit E) affiliation A management consulting business stays in touch with its business customers with phone calls and greeting cards. It periodically sends out needs-assessment questionnaires and designs new services to meet the needs revealed in these surveys. This is an example of relationship marketing based on: A) financial bonds B) social bonds C) service delivery D) patronage bonds E) structural bonds AA A B A B Building value-added services that are not readily available from other firms into A) financial bonds the delivery system defines relationship marketing based on the creation of: B) social bonds C) service delivery paradigms D) personal communication channels E) structural bonds Western Union has 225,000 locations where clients can receive money in 196 countries. Because a person can send money from a small town in Georgia to a small town in Mexico without worrying, Western Union has a high degree of _____ quality. A) observation B) survey C) experience D) research E) credence A E A C Which of the following services would be most likely to exhibit strong credence A) a math tutorial service A qualities? B) the repair of a leaky drain C) the preparation of a dead body for burial D) tax return preparation E) a landscaping service that mows lawns Management-labor mediation, child care, and college preparation classes are all A) inseparability services that are produced and consumed at the same time. All of these services B) intangibility exhibit the service characteristic of: C) heterogeneity D) perishability E) variability A business professional from The Center for Retailing at Morehead University has been donating several hours of consulting time to local nonprofit organizations each month. This could be expected to provide the center with all of the following benefits EXCEPT: The Chrysalis Job Training for the Disabled program wants to notify the community about its upcoming rummage sale. As an experienced marketer and director of the program, you plan to visit several local radio and televisions stations to request: A) community approval B) goodwill C) immediate financial gain D) personal contacts E) personal satisfaction A) freestanding inserts B) nonsponsored advertising C) advocacy marketing D) public service advertising E) societal marketing C AA A C AD The service sector: A) has remained steady at 44 million jobs in the United States for the last 20 years B) employs roughly 80 percent of the U.S. workforce C) is rarely capital intensive, as most services do not need high technology D) is decreasing in importance in the United States E) tends to create fewer new jobs than the manufacturing industry A(n) _____ is a characteristic that can be easily assessed prior to purchase, such A) search quality as the softness of a mattress or the color of curtains. B) intangible attribute C) experience quality D) credence quality E) heterogeneity feature Alabama Adventure, an amusement park in Birmingham, offers reduced rates on weekdays and higher prices for those who want to attend on weekends. It also offers lower prices for patrons who enter the park after 4 p.m. This is a way to contend with the service characteristic of: A) variability B) perishability C) intangibility D) inseparability E) simultaneous production and consumption A) intangibility B) inseparability C) perishability D) simultaneous production and consumption E) variability A B AA A B Virtual Bellhop is a service provider that ships awkward sporting goods to vacation destinations so its customers do not have to worry about lugging them through airports or having them damaged in transit. During the summer months and December, the company is extremely busy packaging and shipping sporting gear. During other months that are not popular vacation months, it may only have one customer a day. This inconsistency of demand means Virtual Bellhop has to deal with the problems associated with the service characteristic of: A C Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. Users can see the ratings given to each specialist by previous users before they contact that specialist. Which service component does Keen.com use to help its customers evaluate its service quality? Courtney's mother died of breast cancer, and she is afraid of getting cancer. When she went to get a baseline mammogram, she wanted a facility where the personnel would not think her fears were silly and would answer all of her questions without making her feel stupid for asking them. By which of the following components of service quality is Courtney most likely to rate the mammogram provider? Clarksdale, Mississippi, is the home of the Shack Up Inn, the only inn in the world that is made up of actual shotgun houses. (Shotgun houses contain two or three rooms in a row. A resident of the house is able to stand at the front door and shoot through all the rooms and out the back door without hitting any walls.) Obviously, the shacks are not luxurious although they do have indoor plumbing and electricity. The owner decided these were the only changes customers would want to be made in the shacks. In this instance, the service provider is likely to have a gap between: A) empathy B) assurance C) tangibles D) flexibility E) responsiveness A B A) empathy B) assurance C) tangibles D) reliability E) responsiveness A) what management thinks customers want and the quality specifications that management develops to provide the service B) what the company tells the customer it provides and what is actually provided C) service quality specifications and employee training D) what customers want and what management thinks customers want E) service expectations and what customers are told to expect A) service quality specifications and the service that is actually provided B) the service customers receive and the service they want C) what the company provides and what the customer is told it provides D) what customers want and what management thinks customers want E) what management thinks customers want and the quality specifications management develops to provide AA AD If a customer expects to wait one week for a pair of shoes to be mended but is told that the shoes are ready to be picked up less than 24 hours after leaving them at the repair shop, the customer's evaluation of service quality will be high. However, a two-week wait would result in a lower evaluation. The two-week gap would illustrate a gap between: A B If a hospital measured the service quality of its physician care in terms of the total A) what customers want and A number of people who were attended to--even if patients appeared to want more what management thinks individualized care--the hospital would be exhibiting a gap between: customers want B) the service quality specifications and the service that is actually provided C) what the company provides and what the customer is told it provides D) what management thinks customers want and the quality specifications management develops to provide the service E) the service customers receive and the service they want Which of the following services is an example of mental stimulus processing? A) taxi cab service B) insurance C) a professional tennis match D) veterinarian care E) a hair cut Western Union is in the business of providing a medium for international money A) supplementary transfers. A Mexican working in the United States can transfer a portion of his or B) benchmarked her earnings to family members still living in Mexico. The wire transfer of funds C) core A E C A C is the _____ service the company provides. D) primary E) fundamental The service offering of G&R Talent Agency is performers suitable for A) standardized appearances on college campuses. This service is an example of the agency's B) customized _____ service. C) supplementary D) core E) component Which of the following is NOT a key factor in the distribution strategy for A) customization services? B) convenience for customers C) number of intermediaries and outlets D) scheduling of service deliveries E) location Promotion strategies for dealing with the unique features of services include all of A) using personal sources of the following EXCEPT: information B) creating strong organizational images C) stressing tangible cues D) using postpurchase communication E) satisfying patronage-oriented objectives A focus on maximizing the surplus of income over costs is a(n) _____ pricing A) revenue-oriented objective for service firms. B) operations-oriented C) market-share-oriented D) patronage-oriented E) service-quality Determining costs can be extremely difficult for a service provider that has A) market-share-oriented adopted a(n) _____ pricing objective and may limit the usefulness of the B) operations-oriented objective. C) revenue-oriented D) patronage-oriented E) break-even Alabama Adventure, an amusement park with a water slide, charges less for weekday admission than it does for weekend attendance. It also has a lower ticket price for patrons who arrive at 4 p.m. Because it is focusing on coordinating supply and demand by varying prices, it is using a(n) _____ pricing objective for service firms. A) revenue-oriented B) operations-oriented C) image-focused D) patronage-oriented E) equity-oriented AD AA A E AA A C A B Global competition in the services arena is intense. _____ is the world's largest A) Germany exporter of services. B) Japan C) The United States D) China E) Canada Sierra Club and the Girl Scouts of America are nonprofit organizations that want to develop marketing strategies to bring about mutually satisfying exchanges with their target markets as they work to protect our environment. Thus, both Sierra Club and the Girl Scouts of America have: A) no need to develop an understanding of pricing B) a marketing orientation C) the same organizational structure as profit-making firms D) no impact on nonbuyers E) no need for marketing skills D C A B Which of the following statements about the marketing activities of a nonprofit A) Nonprofit organizations use organization is true? the same terminology as forprofit companies when talking about their customers. B) Nonprofit organizations do not charge a price. C) Nonprofit organizations express their objectives in terms of profit. D) Nonprofit organizations often use undifferentiated segmentation strategies. E) All of these statements about B D the marketing activities of nonprofit organizations are true. Save-the-Redwoods League is a nonprofit group committed to preserving ancient A) target market forests in the United States. Its _____ is environmentalists, loggers, hunters, B) market objective national park visitors, and lumber-producing companies. C) service providers D) market segment E) niche Def Leppard front man Phil Collen has agreed to be the national spokesperson for animal rights group People for the Ethical Treatment of Animals (PETA). He was chosen because of his lifelong commitment to vegetarianism. In terms of promotion strategy, he will be considered a(n) _____ information source. Hyatt Regency's Platinum Card Program allows members to bypass any line at the check-in desk and get immediate check-in service. In this example, _____ are developed by offering value-added services that are not readily available from other hotel chains. A) cue control B) nonsource-controlled C) impersonal D) remote E) personal A) price incentives B) social bonds C) service delivery paradigms D) personal communication channels E) structural bonds B A C E E E ... View Full Document

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