155) All of the following are true about the price element of services except which?
A) Price can be referred to in a variety of terms.
B) Price can affect consumer perceptions of the service.
C) Price can be kept consistent through the use of off-peak pricing.
D) Price can be used in capacity management.
E) Price can be used in services to imply a higher quality.
156) One tool available when trying to even out the variations in demand for services is
A) off-peak pricing.
B) product lay-away.
C) credit incentives.
D) container sales.
E) product rationing.
157) Service providers use tools such as ________, which consists of charging different prices
for different times of the day or during different days of the week, to manage the variations in
demand for their services.
A) scale pricing
B) capacity pricing
C) down-time pricing
D) off-peak pricing
E) fraction pricing
158) Many service businesses use off-peak pricing to manage variations in
A) costs of delivering service.
B) supply for a service.
C) profitability based on time of day or week.
D) demand for a service.
E) capacity.
159) The less-expensive matinee movie pricing offered on shows prior to 4 p.m. is an example of
A) price lining.
B) price differentiation.
C) off-peak pricing.
D) bait-and-switch pricing.
E) idle production pricing.
160) Many commuters in New York install radio frequency identification (RFID) devices on
their cars that can be read automatically as they approach a toll booth. This saves time, improves
traffic flow, and means drivers don’t need to keep exact change in their cars. It also offers New
York authorities the opportunity to manage traffic flow by charging different toll amounts for
different times of day, such as charging a higher toll for morning and afternoon rush hour
periods. This pricing strategy is
A) price gouging.
B) off-peak pricing.
C) flow management pricing.
D) price differentiation.
E) idle production pricing.
161) A major factor in developing a service marketing strategy is ________ because of the
inseparability of services from the producer.
A) product
B) price or distribution
C) promotion
D) place
E) process
162) Place or distribution is a major factor in developing a service marketing strategy because of
the ________ of services.
A) inventory
B) inseparability
C) inconsistency
D) intangibility
E) information
163) Which of the following statements regarding the place element of services is most accurate?
A) Place has little impact on the marketing of services because there are so many intermediaries
from which a consumer may choose.
B) The distribution site and the service provider are the intangible components of the service.
C) Place is an especially important factor because of the inconsistency between the service and
the service provider.
D) As competition grows in service industries, the value of convenient distribution is being
recognized.
E) Technology is an effective way to bring services to the customer, but only if the consumer is a
new user. Otherwise, the disadvantages outweigh the benefits.
164) All of the following are benefits to be stressed during the promotion of services except
which?
A) price
B) consistent quality
C) location
D) availability
E) efficiency
165) A publicity tool frequently used by nonprofit services, which uses free space or time
donated by the media, is referred to as a(n)
A) promotion.
B) advertisement.
C) press release.
D) cooperative advertisement.
E) public service announcement.
166) Many nonprofit organizations use PSAs in their media planning. What does the acronym
PSA stand for?
A) public stakeholder agreement
B) promotional service amendment
C) public sustainability amendment
D) promotional setting announcement
E) public service announcement
167) Many services depend on ________, one of the seven Ps of services, for the creation and
delivery of the customer service experience.
A) people
B) profitability
C) process
D) productivity
E) physical environment
168) Customers will often judge the ________ of the service experience based on the
performance of the people providing the service.
A) price
B) productivity
C) process
D) quality
E) physical environment
169) The notion that a service organization must focus on its employees before successful
programs can be directed at customers is referred to as
A) internal analysis.
B) internal marketing.
C) external marketing.
D) stakeholder marketing.
E) employee marketing.
170) The concept of internal marketing is based on the notion that a service organization must
focus on its ________ before successful programs can be directed at customers.
A) competitors
B) prospects
C) shareholders
D) employees
E) suppliers
171) All of the following are employee development actions that are critical to the overall
success of service organizations except which?
A) coaching
B) leadership
C) training
D) communication
E) compensation
172) Lucia’s is an eatery famous for its fine steaks, spicy chili, and outstanding customer service.
To maintain the restaurant’s reputation for putting its customers first, the marketing manager at
Lucia’s has developed marketing activities that are directed at its waiters and waitresses. These
activities are an example of
A) internal marketing.
B) persuasive marketing.
C) service marketing.
D) stakeholder marketing.
E) employee marketing.
173) The process of managing the entire customer experience with the company is referred to as
A) services marketing.
B) internal marketing.
C) customer experience management.
D) relationship marketing.
E) gap analysis.
174) The customer experience with a service should be managed to ensure it
A) allows for spontaneity and not be too rigid or planned.
B) will be unique to each individual customer’s experience.
C) stresses the similarities in style, function, and form of the organization’s service relative to the
top competitors in the industry.
D) differentiates a service from other service offerings.
E) will be independently judged by someone outside the firm to guarantee objectivity.
175) Experts suggest that the customer experience with a service should be all of the following
except which?
A) consistent
B) undifferentiated
C) valuable
D) intentional
E) relevant
176) The appearance of the environment in which the service is delivered and where the firm and
customer interact can influence the customer’s ________ of the service.
A) creation
B) branding
C) exploitation
D) life cycle
E) perception
177) The tangibles that make up the service, such as buildings, landscaping, vehicles,
furnishings, signage, brochures, and equipment, comprise which element of the seven Ps of
services marketing?
A) process
B) place
C) physical environment
D) productivity
E) product
178) Service firms can manage their physical environment to influence customers’ perceptions
through
A) service delivery management.
B) relationship management.
C) customer experience management.
D) exposure management.
E) impression management.
179) The actual procedures, mechanisms, and flow of activities by which a service is created and
delivered is referred to as
A) process.
B) procedure.
C) productivity.
D) protocol.
E) plan.
180) In the seven Ps of services marketing, process refers to
A) the patented steps of service encounters that distinguish one service provider from another.
B) licensed procedures that have met ISO 9000 guidelines for safety.
C) the procedures, mechanisms, and flow of activities by which the service is created and
delivered.
D) a protocol for behaviors and activities for people-based rather than technology-based services.
E) the decisions consumers’ make during the purchase of services.
181) In the seven Ps of services marketing, process involves not only what is created but also
A) if it is created.
B) how it is created.
C) when it is created.
D) for whom it is created.
E) why it is created.
182) A(n) ________ is very important to the process aspect of services because it helps identify
steps that will ultimately lead to better service creation and delivery processes.
A) customer contact audit
B) internal marketing review
C) tangibility gap analysis
D) service continuum
E) consumer experience audit
183) Most services have a limited capacity due to the ________ of the service from the service
provider and the perishable nature of the service.
A) inventory
B) inconsistency
C) intangibility
D) information
E) inseparability
184) Integrating the service component of the marketing mix with efforts to influence consumer
demand is referred to as
A) customer management.
B) internal marketing.
C) product management.
D) capacity management.
E) seven Ps of services marketing.
185) Capacity management refers to
A) integrating the service component of the marketing mix with efforts to influence consumer
demand.
B) when the service provider is available but there is no demand.
C) charging different prices during different times of the day or during different days of the week
to reflect variations in demand for the service.
D) the practice of changing prices for services in real time in response to supply and demand
conditions.
E) the operating cost per hour per employee or technology subtracted from the revenue generated
by each full-time employee equivalent.
186) Service organizations must manage the availability of the offering, in part so that
A) marginal costs exceeds marginal revenues.
B) service encounters can identify planning gaps.
C) demand matches capacity over the duration of the demand cycle.
D) the price elasticity of demand is unitary.
E) the service experience is consistent with the sharing economy standards of the organization’s
industry.