Marketing, 14e (Kerin)
1) Based on marketing research with employees, customers, and hosts around the world, Airbnb
developed its current strategy, which centers around
A) providing free one-night stays as a way to hook discount travelers.
B) limiting travel destinations to those with enough entertainment venues to warrant subsequent
visits.
C) expanding its offerings to include shared transportation options for frequent travelers.
D) hosts that do not simply offer their spaces as rentals but work hard to offer unique
experiences.
E) rapid expansion in rural areas that do not have traditional hotels.
2) The new sharing economy consists of all of the following except which?
A) outsourcing small jobs in a local neighborhood
B) helping people rent products, tools, and bicycles rather than purchase them
C) renting extra space in a driveway
D) peer-to-peer car-sharing
E) selling theatre tickets for half off for day-of performances
3) Which generational cohort appreciates the opportunity to engage in collaborative
consumption, also known as peer-to-peer sharing or the sharing economy?
A) Generation Y
B) millennials
C) baby boomers
D) Generation Z
E) Generation X
4) Intangible activities or benefits that an organization provides to satisfy consumers’ needs in
exchange for money or something else of value are referred to as
A) services.
B) goods.
C) products.
D) marketing mix.
E) ideas.
5) Services are
A) the tangible activities or benefits that an organization provides to satisfy consumers’ needs in
exchange for money or something else of value.
B) the activities provided to complement a tangible good, such as technical support for a
computer.
C) any activity required for the production of a good that cannot be completed in-house and must
be outsourced to another firm.
D) the human (nonmechanical) component that is part of the manufacturing process.
E) the intangible activities or benefits that an organization provides to satisfy consumers’ needs
in exchange for money or something else of value.
6) Intangible items such as airline trips, financial advice, or telephone calls that an organization
provides to consumers are referred to as
A) production goods.
B) support products.
C) services.
D) goods.
E) benefits.
7) Which of the following is considered a service?
A) a marketing class
B) lamp
C) motorcycle
D) potato chips
E) environmentalism
8) Which of the following statements about services is most accurate?
A) Although a major contributor to the GDP nationally, services play only a minor role in GDP
on a global scale.
B) Whether tangible or intangible, the marketing of services is exactly the same as the marketing
of products or ideas since they both satisfy customer needs.
C) Almost 65 percent of all jobs created in the United States are in the services sector.
D) In the United States, the proportion of the U.S. gross domestic product (GDP) coming from
services now exceeds that from goods.
E) There is much more in common with the marketing of services and business products than
there is between the marketing of services and consumer products.
9) Which of the following statements about services is most accurate?
A) Whether tangible or intangible, the marketing of services is exactly the same as the marketing
of products or ideas since they both satisfy customer needs.
B) Although a major contributor to GDP nationally, services play only a minor role in GDP on a
global scale.
C) Exports of services is one of the few areas in which the United States has a trade surplus.
D) Very few jobs in the United States are in the services sector.
E) There is much more in common with the marketing of services and business products than
there is between the marketing of services and consumer products.
10) Services are now a larger part of the U.S. gross domestic product (GDP) than goods. The
growth of the service sector is the result of
A) changes in the service mix and the decline in goods production.
B) goods representing a larger part of the gross domestic product than services.
C) changes in the way service consumers make purchase decisions and the ways in which the
marketing mix is used for services.
D) increased demand for services that have been available in the past and the increasing interest
in new services.
E) the imbalance between exported merchandise and commercial services.
11) There are four unique elements to services—intangibility, inconsistency, inseparability, and
inventory—which are referred to as the
A) service mix.
B) four I’s of services.
C) service matrix.
D) four Ps of services.
E) service continuum.
12) The four I’s of services consist of
A) intangibility, inconsistency, inseparability, and innovation.
B) intangibility, inventory, inflexibility, and impression.
C) intangibility, inconsistency, inseparability, and inventory.
D) intangibility, inventory, innovation, and impression.
E) intangibility, inconsistency, innovation, and impression.
13) The intangibility element of a service refers to the fact that it
A) has value that can only be determined by using subjective criteria.
B) can’t be held, seen, or touched before the purchase decision.
C) requires the ability to provide the service even in times of no demand.
D) can maintain or accumulate good will with customers.
E) can be objectively evaluated.
14) Because services tend to be a(n)________ rather than an object, they are much more difficult
for consumers to evaluate.
A) opportunity
B) good
C) risk
D) decision
E) performance
15) To help consumers ________, marketers try to make them tangible or show the benefits of
using the service.
A) assess and compare services
B) reduce inconsistency
C) increase interaction with service providers
D) appreciate the flexibility of services
E) understand the interdependence of services
16) To help consumers assess and compare services, marketers try to make them tangible or
A) temporal.
B) consistent.
C) adaptable.
D) measurable.
E) show the benefits of using the service.
17) Consumers have more difficulty evaluating services than they do products; the difficulty
results from the
A) intangibility of services.
B) incongruity of services.
C) inseparability of services.
D) inflexibility of services.
E) interdependence of services.
18) A Delta Airlines ad shows the airline’s new seats and emphasizes their size and other
benefits, to overcome the ________ of its service.
A) incongruity
B) inconsistency
C) inventory costs
D) inseparability
E) intangibility
19) Sarah has a backache due to overexertion. She believes a massage would loosen her back
muscles and help her feel better. She is concerned because a massage, unlike a pair of shoes,
cannot be experienced or seen before she buys it. Which characteristic of services is she
concerned about?
A) incongruity
B) inconsistency
C) intangibility
D) inventory costs
E) inseparability
20) Before moving out of their apartment, Kelly and Doug decided to have their carpets cleaned
by Stanley Steemer, a company specializing in professional carpet cleaning. The carpet cleaners
arrived on time, cleaned the carpets, and drove away in their bright yellow van; only then did the
couple see that they did a good job. Kelly and Doug were unable to judge the service before they
bought it, which illustrates the ________ of services.
A) inconsistency
B) inseparability
C) inventory costs
D) intangibility
E) interdependence
21) To help consumers assess and compare its airline service, Frontier Airlines uses personable
animal characters in its advertising to announce and describe benefits, such as leather seats and
“stretch” seating, to help deal with the
A) incongruity of the service.
B) inseparability of the service.
C) intangibility of the service.
D) inflexibility of the service.
E) interdependence of the service.
22) The brochure for Spa Sydell has photographs of people enjoying the various spa amenities.
By seeing the pictures of available treatments at the spa, a customer has a better idea of what she
is buying. Spa Sydell uses a brochure to help customers deal with the ________ that is associated
with using the service.
A) incongruity
B) inconsistency
C) inventory costs
D) inseparability
E) intangibility
23) Services depend on the people who provide them. As a result, their quality varies with each
person’s capabilities and day-to-day job performance. This element of services is referred to as
A) incongruity.
B) differentiation.
C) variation.
D) inconsistency.
E) intangibility.
24) Inconsistency of services refers to the fact that
A) there is no regulation of service industries in terms of basic standards of quality.
B) the quality of service provided by a firm is often inconsistent with its image.
C) the performance of one employee may vary from the performance of another employee even
though the same firm employs both.
D) training and standardization of service delivery procedures cannot be accomplished.
E) services have a varying degree of durability.
25) Organizations attempt to reduce inconsistency in their services by
A) paying higher incentives to employees to encourage satisfactory performance.
B) reducing incentives available to employees because of poor performance.
C) reducing the customer contact points in the service delivery process.
D) providing standardization and training.
E) exercising better hiring practices.
26) The Philadelphia Phillies baseball team may have great hitting and pitching one day, and lose
by 10 runs the next day. This is an example of a service being
A) inseparable.
B) inconsistent.
C) inventoried.
D) tied to a product.
E) independent of the quality delivered.
27) A local band performed on campus during a pre-graduation party. The students enjoyed the
performance, and some of them were interested enough to buy tickets to see another show at a
club downtown. But when they went to that concert, the quality of the performance was much
poorer than they had heard and seen on campus. The students’ disappointment was the direct
result of which characteristic of services?
A) inconsistency
B) impressionability
C) intangibility
D) invisibility
E) uniqueness of the service
28) Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her staff of
60 perform everyday services, such as walking the dog, picking up cleaning, waiting for the
repairman, and going to the post office, for people who are too busy to perform these simple
tasks. One way she tries to avoid ________ of services for her regular customers is to make sure
that the same well-trained person is always assigned to work for the same client.
A) inseparability
B) inconsistency
C) incongruity
D) inflexibility
E) intangibility
29) Alana operates a wedding preparation service that helps brides-to-be in the planning of their
weddings. To maintain a quality image and a standardized offering, Alana provides extensive
training for each of her employees. What unique aspect of services is Alana trying to address?
A) impressionability
B) intangibility
C) inconsistency
D) inseparability
E) uniqueness of the service
30) Jack graduated from law school and took his mom to dinner after the ceremony. At the
restaurant, the server filled their water glasses, checked on their table, and took care of their
requests. Jack noted that the last time he was at this restaurant, the experience was much worse.
This scenario illustrates the ________ of services.
A) impressionability
B) intangibility
C) inseparability
D) uniqueness of the service
E) inconsistency
31) Inseparability in services means consumers
A) see little variation from one service provider in an industry to another.
B) are unable to differentiate price from quality.
C) cannot evaluate a service until it is being or has been used.
D) cannot separate the service itself from the deliverer of the service.
E) cannot separate themselves from the deliverer of the service.
32) The interaction between a service provider and the consumer such that the two of them co-
create value together is due to which element unique to services?
A) inventory
B) intangibility
C) inseparability
D) service continuum
E) inconsistency
33) If you find that the staff who work in your college’s career center gave you poor advice or
otherwise did not provide sufficient help in finding you employment after graduation, you may
be dissatisfied with your entire college experience. This is an example of which issue associated
with services?
A) intangibility
B) impressionability
C) incongruity
D) inseparability
E) inflexibility
34) Chuck is a guide for tours that take visitors to swim with manatees in central Florida. He is a
very gregarious guy with funny stories and a great way with people, so many online reviewers
mention him by name and say little about the organization he works for. The reviewers’ inability
to see the distinction between Chuck and the tour company is an example of which unique
characteristic of services?
A) intangibility
B) impressionability
C) incongruity
D) inseparability
E) inflexibility
35) When Mandy last got her drive-through order at the fast-food restaurant, she thought the
employee who helped her was cold and unfriendly. The food tasted good but was overshadowed
by the employee’s demeanor. Since then, Mandy often says something derogatory to her friends
about the restaurant based on this single experience. This is an example of which issue associated
with services?
A) inseparability
B) intangibility
C) impressionability
D) incongruity
E) inflexibility
36) When banks are closed, they can offer value to their customers through automatic teller
machines (ATMs). This self-service technology also comes with a downside since the ATMs are
perceived as being less
A) convenient.
B) reliable.
C) personal.
D) safe.
E) accurate.
37) Although many people love the self-service technology that allows Redbox to provide DVDs
24 hours a day, seven days a week, many people also want personal interaction and
recommendations from other people. Redbox confronted this issue by creating “Redblog,” where
customers could share their opinions, feelings, and experiences. This is an example of managing
the
A) inventory aspects of services.
B) inseparability aspects of services.
C) inconsistency aspects of services.
D) intangibility aspects of services.
E) impressionability aspects of services.
38) How is inventory of services different from that of products?
A) Time is less important to customers of services than customers of products.
B) Only service inventory can be reduced through more efficient movement of products.
C) There are larger costs associated with the handling of service inventory.
D) Unlike goods providers, the service provider is often unavailable when there is a demand for
the service.
E) Service inventory costs are related to idle production capacity rather than storage or
perishability.
39) A situation that occurs when a service provider is available but there is no demand is referred
to as
A) off-peak pricing.
B) idle production capacity.
C) static demand.
D) capacity management.
E) excess inventory.
40) Idle production capacity affects service delivery and is defined as
A) a situation where the demand for exceeds the availability of service providers and as a result,
no services can be offered
B) when the supply of service providers exceeds the primary demand for the service
C) a situation where a service provider is available but there is no demand for the service
D) integrating the service component of the marketing mix with efforts to influence consumer
demand
E) the reduced effectiveness of one service provider serving multiple clients at the same time.