c Service firms with a well established brand reputation will also find it

C service firms with a well established brand

This preview shows page 52 - 54 out of 72 pages.

c. Service firms with a well-established brand reputation will also find it easier to introduce new services than firms without a brand reputation. d. Many consumers are suspicious of companies that offer too many services under the same brand name. e. Many service organizations, such as banks, hotels, and restaurants do not rely heavily on branding because of the extent to which they are people-dominated services. Answer: c Page(s): 307 LO: 5 AACSB: Analytic QD: Medium Rationale: Service firms with a well-established brand reputation will also find it easier to introduce new services than firms without a brand reputation. 12-154 SEVEN Ps of SERVICES MARKETING: SERVICE APPLICATION The FedEx brand suggests the possibility that it is government sanctioned and fast. This perception is important because of which unique characteristic of services? a. inventory costs b. inseparability c. inconsistency d. invisibility e. intangibility Answer: e Page(s): 306-307 LO: 5 AACSB: Analytic QD: Hard Rationale: Because services are intangible, and more difficult to describe, the brand name or identifying logo of the service organization is particularly important when a consumer makes a purchase decision. 12-155 SEVEN Ps of SERVICES MARKETING: SERVICE APPLICATION Which of the following is the most important aspect conveyed by the FedEx brand? a. its international experience b. differentiation and an image of quality c. the ownership of the company d. the nonprofit aspect of the company e. the patent for its service Answer: b Page(s): 307 LO: 5 AACSB: Analytic QD: Hard Rationale: Strong brand names and symbols are important for service marketers, not only as a means of differentiation, but also to convey an image of quality. - 52 -
12-156 SEVEN Ps of SERVICES MARKETING: PRICE COMPREHENSION Tuition, charges, fares, and rates are all a. names given to the tangible portion of the price of a service. b. names that are interchangeable when identifying the price of a service. c. names given to the intangible portion of the price of a service. d. names given to the price of services. e. terms used in services to imply a higher quality product than the terms “cost” or “price.” Answer: d Page(s): 307 LO: 5 AACSB: Analytic QD: Medium Rationale: In service businesses, price can be referred to as a charge, fee, fare, rate, or tuition. 12-157 SEVEN Ps of SERVICES MARKETING: PRICE COMPREHENSION Tuition, charges, fares, and rates are all a. euphemisms for the name “price” to the price factor in services. b. names given to the price of services. c. names given to the intangible portion of the price of a service. d. names that are interchangeable when identifying the price of a service. e. terms used in services to imply a higher quality product than the terms “cost” or “price.” Answer: b Page(s): 307 LO: 5 AACSB: Analytic QD: Medium Rationale: In service businesses, price can be referred to as a charge, fee, fare, rate, or tuition.

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