79. Seth recently purchased a new Brunswick Billiards table for his recreation room. The next day after delivery, Seth
noticedafaultwithoneofthetablepockets.Sinceitwasaweekend,hedidn’texpectthatitcouldberepaired
immediately. However, when he called a Brunswick store to leave a message, the call was answered by a repair
representativewhoassuredSeththathewouldcomeovertoSeth’shousefortherepairservicewithinanhour.
Brunswick Billiards is most likely differentiating itself through:
a. product styling.
b. product support services.
c. product positioning.
d. product features.
e. customer requests.
80. A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact
on the overall effectiveness of a firm’s product mix, is called a(n):
a. evaluation study.
b. formal evaluation.
c. product inspection.
d. systematic review.
e. reassessment examination.
Chapter 11 – Developing and Managing Goods and Services
81. The product deletion process is similar to the _____ step of the new-product development process because both
involve deciding whether the product should be in the product mix based on an assessment of sales, costs, and
profits.
a. idea generation
b. screening
c. product development
d. commercialization
e. business analysis
82. Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They intend to do
so by letting the product decline without changing their current marketing scheme. This method of deletion is called:
a. gradual termination.
b. immediate drop.
c. screening.
d. phase-out.
e. run-out.
Chapter 11 – Developing and Managing Goods and Services
83. IfSplendaassessesthatitssweetener,“SplendawithVitamins”,isnotmeetingprofitexpectationsandsimply
allows the product to decline without any change in marketing strategy, it is using a(n) _____ deletion strategy.
a. run-out
b. immediate drop
c. slow-down
d. phase-out
e. drop-down
84. A run-out approach of product deletion:
a. lets the product decline without changing the product strategy.
b. is an immediate-drop decision.
c. exploits any strengths left in the product.
d. raises the price of the product continually to secure as much profit as possible before the product is priced
out of the market.
e. occurs when production cannot keep pace with demand because of material shortages.
Chapter 11 – Developing and Managing Goods and Services
85. In general, the primary difference between goods and services is determined by the:
a. degree of labor intensiveness.
b. type of target market.
c. degree of tangibility.
d. type of provider.
e. degree of consumer contact.
86. Hair stylists find it challenging to standardize their service because the customer must be involved in the haircut
procedure. Which of the following unique features of services does the scenario illustrate?
a. Intangibility
b. Inseparability
c. Perishability
d. Heterogeneity
e. Homogeneity
Chapter 11 – Developing and Managing Goods and Services
87. Personal trainers cannot make fitness assessments of their clients without the clients being physically present
because of the _____ characteristic of services.
a. perishability
b. intangibility
c. inseparability
d. heterogeneity
e. tangibility
88. Jason Robinson, a dentist, realizes that his dental practice is not generating enough revenues to cover his expenses.
He would like to schedule more appointments, but he finds that almost every time slot is booked by his existing
patients. Jason’s difficulty in expanding his practice involves the aspect of service called:
a. slotting.
b. perishability.
c. credence.
d. inseparability.
e. heterogeneity.
Chapter 11 – Developing and Managing Goods and Services
89. The fact that services cannot be stored and then sold at a later date is called:
a. intangibility.
b. heterogeneity.
c. inseparability.
d. perishability.
e. nonstorability.
90. Kate,theownerofK’sTanningSalon,reviewstheday’sappointmentscheduleandnoticesthatitiscompletelyfull
as it is Saturday. She wishes that some of the empty tanning beds that were vacant during the weekdays could be
availablepresently.Kate’sproblemdealswiththe_____characteristicofservices.
a. credence
b. heterogeneity
c. perishability
d. search
e. inseparability
Chapter 11 – Developing and Managing Goods and Services
91. Providers of services must deal with the challenge of balancing supply and demand and plan for times of peak and
off-peak demand. Which of the following characteristics of services creates these challenges?
a. Inseparability
b. Customer contact
c. Perishability
d. Heterogeneity
e. Intangibility
92. Lashawna is a concert promoter and has singer Kanye West as one of her clients. She works hard to ensure that
mostofKanye’sconcertsticketsaresoldout.Sheunderstandstheconceptofperishability,whichimpliesthat:
a. as the concert is not tangible, concert audience will have a difficult time judging its quality in advance.
b. the performance of the concert and the attendance of the concert by fans cannot be separated, so tickets
must be sold.
c. a high level of interaction will exist between the audience and the musicians, which makes the audience’s
presence necessary.
d. if the tickets are not sold out, seats will remain empty, and they can never be sold to anyone again.
e. that each concert is different and customers will miss a unique experience if they are not present at the
concert.
Chapter 11 – Developing and Managing Goods and Services
93. The greater the degree of _____ involved in delivering a service, the greater the level of heterogeneity.
a. technological dependence
b. homesourcing
c. perishability
d. tangibility
e. labor intensiveness
94. Amanda is a masseuse at a massage parlor. The fact that the first massage she gives each day is better than the
last massage, demonstrates the _____ of services.
a. heterogeneity
b. customer contact aspect
c. intangibility
d. inseparability
e. perishability
Chapter 11 – Developing and Managing Goods and Services
95. Saresh is the owner of Change-ezz, a salon specializing in hair cutting and hair styling. Lately, Saresh has been
trying to improve the quality of service provided by Change-eez. However, he has been experiencing difficulties in
findingwaystosystematizeandcontrolthesalon’squalityofoperations.Saresh’sinabilitytostandardizehissalon’s
service best illustrates the _____ feature of the service.
a. intangibility
b. inseparability
c. perishability
d. heterogeneity
e. marketability
96. H&RBlock,amajortaxpreparationfirm,reportedfacingissueswithregardtoitsemployees’inconsistencyin
filing of returns. With which of the following characteristics of the service offering is the firm experiencing an
issue?
a. Tangibility
b. Intangibility
c. Perishability
d. Inseparability
e. Heterogeneity
Chapter 11 – Developing and Managing Goods and Services
97. Services delivered through machines such as computer kiosks, ATMs, and vending machines can reduce the
_____ aspect that arises from increased contact with human employees.
a. intangibility
b. perishability
c. inseparability
d. heterogeneity
e. tangibility
98. Many services base their success on building a group of satisfied customers who use their services repeatedly over
time. This critical component of success is referred to as:
a. partnerships.
b. heterogeneity.
c. inseparable clientele.
d. perishability.
e. client-based relationships.
Chapter 11 – Developing and Managing Goods and Services
99. Troy is a service provider for a low-contact service. Which of the following services is most likely provided by
Troy?
a. Real estate
b. Website design
c. Healthcare
d. Legal services
e. Personal trainer
100. Which of the following best illustrates a high-contact service?
a. Appliance repair
b. Newspaper delivery
c. Tax preparation
d. Dry cleaning
e. Plastic surgery
Chapter 11 – Developing and Managing Goods and Services
101. Whichofthefollowingisnota“customercontact”characteristicinservicesmarketing?
a. High-contact services typically require that the customer go to the production facility.
b. High-contact services are less expensive to deliver because they are typically equipment-based.
c. Employees of high-contact service providers are part of a very important ingredient in creating satisfied
customers.
d. Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact
services.
e. An employee training program is an effective way to ensure effective customer contact and resolve issues
with customers.
102. If Best Western, a leading global hotel chain, bundles its rooms with services such as free local phone calls, cable
television, wireless Internet access, and complimentary breakfast, these services are known as _____ services.
a. core
b. supplementary
c. bundled
d. intangible
e. complimentary
Chapter 11 – Developing and Managing Goods and Services
103. Which of the following service characteristics results in variability of service quality yet provides opportunity for
customizing services to match the specific needs of individual customers?
a. Tangibility
b. Perishability
c. Heterogeneity
d. Intangibility
e. Inseparability
104. The heterogeneity characteristic of services provides marketers with tremendous opportunity to:
a. customize their services to meet specific individual customer needs.
b. minimize the cost of providing services to customers.
c. create standardized packages that can appeal to a diverse customer base.
d. offer similar services as that of their competitors.
e. develop relationship marketing with their customers.
Chapter 11 – Developing and Managing Goods and Services
105. Service marketers make promises to customers, suggesting that the customers must place some degree of trust in
them. In this way, service marketers are trying to address the challenge of the service characteristic of:
a. perishability.
b. heterogeneity.
c. inseparability.
d. intangibility.
e. customer contact.
106. Brittany recently moved to a new city. She is looking for a mechanic to conduct a maintenance check and repair on
her car. She visits several car dealers to assess their physical facility and also the cleanliness and grooming of the
mechanics. After evaluation, she finally chooses a mechanic. Brittany is trying to overcome the _____ aspect of
services.
a. heterogeneity
b. perishability
c. customer contact
d. intangibility
e. inseparability
Chapter 11 – Developing and Managing Goods and Services
107. One of the ways in which service businesses communicate a higher degree of trust to their customers is by having
their employees be well-groomed, sharp looking, and dressed in appropriate uniforms. This is a way to address the
_____ characteristic of services.
a. intangibility
b. perishability
c. homogeneity
d. inseparability
e. heterogeneity
108. If a nonsmoker dines in a restaurant that does not impose a restriction on smoking, the overall quality of service
experienced by the nonsmoking customer probably declines if another customer smokes inside the restaurant.
Which of the following service characteristics is illustrated by the scenario?
a. Perishability
b. Inseparability
c. Heterogeneity
d. Intangibility
e. Homogeneity
Chapter 11 – Developing and Managing Goods and Services
109. A sign at a doctor’s office waiting room reads, “Please be courteous of others waiting with you.” The doctor’s
office is trying to positively emphasize the _____ aspect of services.
a. tangibility
b. perishability
c. inseparability
d. customer contact
e. heterogeneity
110. Prudential Insurance uses “the Rock of Gibraltar ” logo to symbolize stability and security to its customers. This is
Prudential’s attempt to help customers better understand its services by:
a. emphasizing tangible cues in promoting the service.
b. using sign association.
c. personalizing the selling of the service.
d. utilizingpublicitytechniquestoenhancetheservice’svalue.
e. distributing the service directly through advertising.
Chapter 11 – Developing and Managing Goods and Services
111. Marketing channels for services are:
a. complex and multifaceted.
b. characterized by fewer than two intermediaries.
c. dependent on the geographical location of consumers.
d. determined by customers.
e. direct from provider to customer.
112. By installing automated check-in kiosks in airports, airlines have increased customer convenience and facilitated
faster check-in by customers. It has considerably reduced the number of personnel attending to flight passengers.
This has led to a decrease in _____ characteristic of the airline service.
a. perishability.
b. intangibility.
c. customer contact.
d. homogeneity.
e. customer service.
Chapter 11 – Developing and Managing Goods and Services
113. LogossuchasTheTravelersCompanies’umbrellaisdesignedtohelpcustomersovercomethe_____ofservices.
a. heterogeneity
b. unpredictability
c. inseparability
d. intangibility
e. perishability
114. FloisafictionalcharacterdepictedinProgressiveInsurance’sTVcommercials.Shesymbolizesfriendliness,
reliability,andknowledgeaboutthecompany’sproducts.ThepartFloplaysinthepromotionisdesignedtoaddress
the _____ characteristic of the service.
a. intangibility
b. perishability
c. heterogeneity
d. inseparability
e. customer service
Chapter 11 – Developing and Managing Goods and Services
115. The _____ characteristic of a service denotes the fact that production and consumption of the service occur
simultaneously.
a. intangibility
b. heterogeneity
c. customer contact
d. perishability
e. inseparability
116. An American West Airlines flight from Dallas to Houston was fully booked, and the flight tickets were more
expensive than that of the nearly empty American West flight from Chicago to Phoenix. This is an example of
_____ service pricing.
a. unit-based
b. demand-based
c. supply-based
d. cost-based
e. customer-based
Chapter 11 – Developing and Managing Goods and Services
117. Demand-based pricing is most closely related to the _____ of services.
a. perishability
b. intangibility
c. heterogeneity
d. customer contact aspect
e. inseparability
118. The point in time when a significant number of customers desire the same service simultaneously is known as:
a. peak demand.
b. preferred demand.
c. composite demand.
d. derived demand.
e. competitive demand.
Chapter 11 – Developing and Managing Goods and Services