Marketing Management, 3e (Marshall)
Chapter 10 Service as the Core Offering
1) A service is a product in the sense that it represents a bundle of benefits that can satisfy
customer wants and needs with physical form.
2) It is widely accepted that today we operate in an economy that is increasingly focused on
tangible offerings—goods—instead of just services.
3) In today’s workplace, everyone is involved in service in some way, and everyone has
customers either outside or inside the firm, or both.
4) A service-centered perspective is very consistent with a customer-centric approach in which
people, processes, systems, and other resources are to be aligned to best serve customers.
5) Services possess several distinct characteristics that are different from those of physical goods,
including intangibility, inseparability, variability, and perishability.
6) Customer trial is one way to overcome the problem of marketing an intangible service.
7) Employees play a critical role in the success of services because of their inseparability and
variability.
8) A fundamental rule in marketing is to set high customer expectations.
9) One of the causes of switching behavior is unfair pricing.
10) As noted in the text, Caesars Entertainment has found that its ROI for customers in the “Zone
of Defection” is considerably higher than in the other zones.
11) The ultimate Caesars customer is the “apostle”; they are highly satisfied, fiercely loyal,
frequent Caesars guests who serve as strong advocates for the Caesars experience to friends and
acquaintances.
12) Research indicates that investing in indifferent customers to improve their satisfaction truly
maximizes their profitability to a brand.
13) Providers of professional services such as doctors, lawyers, and accountants use their degrees
and designations to convey a level of trust to a purchaser.
14) There is a debate about whether students in business education are “customers” or products
that need to be branded.
15) Services tend to exhibit high experience and credence attributes.
16) When Dominoes promises delivery within 30 minutes, but it actually takes 45 minutes,
Dominoes is demonstrating gap 1: management’s perceptions of customer service expectations
versus actual customer expectations of service.
17) The fifth and final service gap involves customers’ perceived service versus actual customer
expectations of service.
18) Service failure, when properly handled through service recovery, does not necessarily impact
customer satisfaction.
19) Exceeding customer expectations is often referred to as customer delight.
20) The ability to provide prompt service and to respond quickly to customer requests is called
reliability.
21) Of the five dimensions of service quality, empathy means considering things from a service
provider’s point of view.
22) In a service blueprint, “moments of truth” occur below the line of visibility.
23) A service is a product in a sense that it represents a bundle of benefits that can satisfy
customer wants and needs, yet it does so without ________.
A) people
B) price perceptions
C) physical form
D) time utility
E) ethics
24) The percentage of jobs in the United States that are service-related is more than ________ of
all jobs.
A) 20 percent
B) 40 percent
C) 60 percent
D) 80 percent
E) 100 percent
25) Which of the following is TRUE of the service sector?
A) Jobs represented in the service sector of the economy exclude categories such as intellectual
property and consulting.
B) In terms of U.S. gross domestic product, services account for less than 60 percent and that
number is declining.
C) Changing U.S. demographics represent a major driver for why the service sector is thriving.
D) The long-term shift from service-producing to goods-producing employment is expected to
continue.
E) Today, we operate in an economy that seldom focuses on intangible offerings.
26) Many firms are reluctant to invest in great service, largely because ________.
A) it is difficult to change employees’ actions
B) consumers usually are not aware that they are receiving great service
C) a service’s quality can only be as good as that of the provider himself or herself
D) it takes time and patience before a return on the investment is noticeable
E) of the inseparability and perish ability of services
27) Which axiom of service-dominant logic applies to this statement? Customers don’t buy a car
(product)—they buy the company’s ability to add value through a defined set of benefits.
A) Service is the fundamental basis of exchange.
B) Value is co-created by multiple parties, including the company and the customer.
C) A unique experience is created when the customer interacts with the company’s marketing
efforts and product.
D) Value is defined by the customer.
E) A customer-centric approach has been supplanted by a newer service-dominant approach.
28) Which of the following is NOT a distinct characteristic of services that is different from
physical goods?
A) variability
B) perishability
C) reliability
D) intangibility
E) inseparability
29) Services are produced and consumed at the same time and cannot be detached from their
provider. This characteristic of service is called ________.
A) intangibility
B) perishability
C) variability
D) inseparability
E) reliability
30) A service cannot be experienced through the physical senses. This property represents the
________ of services.
A) inseparability
B) variability
C) intangibility
D) perishability
E) reliability
31) The ________ of performance and consumption of services heightens the role of human
service providers in a customer’s experience.
A) inseparability
B) intangibility
C) variability
D) perishability
E) tangibility
32) Which of the following is one of the characteristics of services?
A) separability
B) variability
C) tangibility
D) reparability
E) durability
33) As a characteristic of services, intangibility refers to the fact that a service ________.
A) cannot be seen, heard, tasted, or felt by a customer
B) is produced and consumed at the same time
C) can be experienced through the physical senses
D) can be experienced by a customer before utilization
E) quality can only be as good as that of the provider himself or herself
34) ________ of a service means that because it can’t be separated from the provider, a service’s
quality can only be as good as that of the provider.
A) Separability
B) Intangibility
C) Variability
D) Perishability
E) Tangibility
35) To enable customers to draw conclusions about a brand’s service, service companies face the
challenge of making their intangible services seem ________.
A) more tangible
B) more imperceptible
C) less inseparable
D) less reliable
E) less perishable
36) One way to make a service more tangible is to have customers ________.
A) read about it on a website
B) experience the service through a trial
C) receive a brochure that highlights the advantages and disadvantages of the service
D) Google the service and see who provides the services in their area
E) use the service at a regular basis
37) A service is described as being inseparable because ________.
A) it can be easily separated from its provider
B) it can be experienced by a customer before utilization
C) it cannot be seen, heard, tasted, or felt by a customer
D) it is produced and consumed at the same time
E) its quality is only as good as that of the provider himself or herself
38) It may be more accurate to think of a service as being ________ rather than produced.
A) designed
B) modified
C) performed
D) created
E) developed
39) The four characteristics of services are that they are ________.
A) inseparable, perishable, intangible, and variable
B) tangible, quantifiable, reliable, and durable
C) variable, dependable, repairable, and customized
D) customized, standardized, formalized, and categorized
E) specialized, tangible, standardized, and perishable
40) The enhanced role of human service providers in a customer service experience enables
service providers to ________.
A) allow for new products to be promoted
B) stimulate the formation of the same experience for all people
C) offer considerable customization in delivering a service
D) create profit pockets by encouraging the ordering of more expensive options
E) help customers experience a service before utilization
41) With services, continual investment in training, retraining, and good management of people
is required if ________.
A) variability is to be consistently low
B) tangibility is to be consistently low
C) inseparability is to be consistently high
D) intangibility is to be consistently high
E) perishability is to be consistently high
42) Once a firm has invested in continuous process improvement and quality control in
operations, goods, in general, tend to be much more ________ than services.
A) perishable
B) standardized
C) distinguished
D) intangible
E) customized
43) Fluctuating demand is related to ________ of services.
A) durability
B) variability
C) perishability
D) flexibility
E) tangibility
44) Perishability of a service means that ________.
A) a service’s quality can only be as good as that of the provider himself or herself
B) a service cannot be stored or saved up for future use
C) a service is produced and consumed at the same time
D) a service must be handled and stored with care
E) a service cannot be separated from its provider
45) The service-profit chain is designed to help managers better understand the key linkages in a
service delivery system that drive ________.
A) production and distribution
B) customer loyalty, revenue growth, and higher profits
C) brand awareness and economies of scope
D) marketing and sales
E) customer satisfaction, promotion, and higher demand
46) Treating employees as customers and developing systems and benefits that satisfy their
needs is called ________.
A) marketing for profit
B) employee induction
C) market orientation
D) internal marketing
E) green marketing
47) If a firm is considered customer-centric, it implies that the company ________.
A) does marketing research on all market segments and creates ads that focus on individual
market segments
B) develops products and services that sell well in both large and small markets including some
international markets
C) gives more importance to customers in everything that takes place both inside and outside the
firm
D) places employees and customers at the top of the organizational chart
E) treats employees as customers and develops systems and benefits that satisfy their needs