187) Airlines feature load factor as a ________ measure on their marketing dashboards.
A) productivity
B) price differentiation
C) tangibility
D) capacity management
E) profitability
188) An airline’s load factor refers to
A) the percentage of paying customer seats flown one mile plus frequent flyer redemption seats
flown one mile.
B) the percentage of empty seats on a plane compared to its total capacity.
C) the percentage of available seats flown one mile occupied by a paying customer.
D) the percentage of seats that are overbooked on any given flight to prevent profit shortfalls for
“no shows.”
E) the total of all paid seats plus all luggage overcharges and all purchased beverages, meals, and
other amenities or additional services, per flight.
189) Airlines feature load factor as a capacity management measure on their marketing
dashboards, along with two other measures: the operating expense per available seat flown one
mile and the revenue generated by each seat flown one mile, called
A) profit per passenger.
B) average price per passenger.
C) internal ROI.
D) unit variable sales.
E) yield.
190) In a capacity management report from a well-known carrier in the airline industry, the yield
is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents. From these details,
the percentage of available seats flown one mile occupied by a paying customer is ________
percent.
A) 9.83
B) 82.1
C) 8.28
D) 18.11
E) 1.55
191) In a capacity management report from a well-known carrier in the airline industry, the yield
is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents. The revenue
generated by each seat flown one mile is
A) 9.83 cents.
B) 82.1 cents.
C) 8.28 cents.
D) 18.11 cents.
E) 7.99 cents.
192) In a capacity management report from a well-known carrier in the airline industry, the yield
is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents. From these details,
the airline posted ________ per available seat flown one mile.
A) a 9.83 cent profit
B) a 1.55 cent profit
C) a 1.27 cent profit
D) a 0.21 cent loss
E) an 8.28 cent loss
193) Assuming the following information in a capacity management report from a well-known
carrier in the airline industry will not change in the near future, what actions would you
recommend that the carrier take? The yield is 9.83 cents, load factor is 82.1 percent, and
operating expense is 8.28 cents.
A) Proceed as in the past; the carrier is clearly profitable.
B) Use advertising to let consumers know how the carrier currently meets their needs.
C) Change the flight schedules to accommodate travelers’ needs and advertise these changes.
D) Keep the flight schedule as it is and reduce the price per flight.
E) There is not enough information in the marketing dashboard to suggest an action to take.
194) Many of the changes in the services industry in the future will be driven by which of these
factors?
A) reverse marketing
B) global development
C) global service branding
D) sustainability
E) ethnocentricity
195) The key technological elements of future services include ________ and personalization.
A) automation
B) globalization
C) mobility
D) divergence
E) convenience
196) The key technological elements of future services include mobility and
A) automation.
B) globalization.
C) convenience.
D) divergence.
E) personalization.
197) Giving unauthorized free products or services to customers to inflate their customer
satisfaction levels is referred to as
A) BOGOs.
B) Facebook liking.
C) service sweethearting.
D) research baiting.
E) social incentivizing.
198) The trend toward sustainability and “green” business practices has expanded to include
many services as they strive to
A) comply with FDA rules.
B) increase their energy use.
C) reduce their capacity.
D) create a competitive advantage.
E) minimize consumer involvement.
199) Marketers for the LA Galaxy market what basic product?
A) a soccer game
B) popular players
C) a generic social experience
D) a winning team
E) a competitive spirit
200) The LA Galaxy’s primary target market or “core fans” is
A) 18- to 34-year-old women.
B) Hispanics.
C) all sports fans.
D) 18- to 34-year-old men.
E) Generation Z.
201) What primary marketing metric does the LA Galaxy use to assess the impact of its
marketing actions?
A) sponsorships
B) ticket sales
C) promotion-to-sales ratio relative to other MLS teams
D) broadcast rights fees
E) merchandise sales
202) Services incorporate the four I’s of product marketing. How would each of these four
elements apply to a stock brokerage service?
203) What does it mean when we say services are intangible? How do marketers of services
overcome the problems associated with intangibility?
204) What is the difference between intangibility and inseparability of services?
205) Where would potatoes, a photographic studio, and a psychologist fit into the service
continuum?
206) Describe the three ways services can be classified.
207) What are the three properties of products and services that are evaluated by consumers
when they are making a purchase decision? Give an example of a product or service for each.
208) List and define the five dimensions of service quality described in the textbook.
209) What is a customer contact audit? Outline the contact audit for a typical visit to your
dentist.
210) What aspect of the product/service element of the marketing mix warrants special attention
by service marketers?
211) What role does price play in the managing of services?
212) What is internal marketing? Why is it important in services marketing?
213) What role do people play in the managing of services? In answering the question, discuss
the concept of customer experience management (CEM).
214) List and explain the key elements of future services.
215) Identify and describe how the LA Galaxy uses the seven Ps of services marketing in its
marketing program.
216) How does the LA Galaxy use promotion (advertising, personal selling, public relations,
sales promotion, direct marketing) in its marketing program.