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83. Which of the following is a difference between profit organizations and nonprofit organizations?
a. Profit organizations focus on profit and sales maximization, whereas nonprofit organizations seek to redistribute
income.
b. Profit organizations use public service advertisements for promotion, whereas nonprofit organizations use
commercial advertisements for promotion.
c. Profit organizations market complex behaviors or ideas, whereas nonprofit organizations market tangible goods.
d. Profit organizations adopt undifferentiated segmentation strategies, whereas nonprofit organizations adopt
differentiated segmentation strategies.
84. Rent and Drive is a car rental company. It prices its rentals based on operations-oriented pricing. In this scenario, Rent
and Drive
a. varies the prices according to the supply and demand of cars.
b. maximizes the surplus of income over its costs.
c. allows customers to negotiate price.
d. varies prices for customers from different market segments.
85. A manufacturer making a choice between too few and too many outlets is essentially deciding between providing
______.
a. convenience to customers and keeping costs to the company low
b. quality products to customers and keeping costs to the company low
c. convenience to customers and diversifying into other businesses
d. customers an online shopping option and having an exclusive brand
86. Which of the following statements is true of the global issues in services marketing?
a. Competition in international services is decreasing rapidly.
b. The international marketing of services is a major part of global business.
c. The marketing mix elements do not need to take into account each country’s cultural environment.
d. The first step toward success in the global marketplace is designing the marketing mix elements.
87. A difference between people-processing services and possession-processing services is that possession-processing
services
a. use technology directed at a customer’s assets.
b. focus more on customers and not on their physical possessions.
c. do not require customers to enter the service factory.
d. focus more on training employees on employee–customer interactions.
88. When evaluating service quality, _____ refers to the knowledge and courtesy of employees and their ability to convey
trust.
a. heterogeneity
b. responsiveness
c. assurance
d. tangibility
89. A consultancy firm that provides a wide range of services relating to tax payments and tax law is known for
performing these services dependably, accurately, and consistently. This clearly implies that the company rates high on
______.
a. reliability
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b. responsiveness
c. assurance
d. empathy
90. A credit card company has a policy wherein the customer earns a point for every 20 dollars spent on purchases made
using the card. These points accumulate over a period of time and can be cashed in at the rate of a dollar per point. The
policy applies equally to all customers across the country and the company does not interact with individual customers.
This is an example of the ______ level of relationship marketing.
a. structural
b. social
c. financial
d. customization
91. The North Star Hotel, a luxury hotel, encourages its employees to develop strong, personal relationships with guests. It
offers customized toiletries to its customers based on their preferences. It also has an entire floor dedicated to suites that
have air purification systems. These value-added services make the North Star Hotel unique as these services are not
available at other hotels. In this scenario, the North Star Hotel is at the _____ level of relationship marketing.
a. financial
b. social
c. customization
d. structural
92. Which of the following is true of nonprofit organizations?
a. The cost of government (i.e., taxes) has become a big item in the American family budget but remains less than
health care.
b. Together, federal, state, and local governments collect tax revenues that amount to almost half of the U.S. GDP.
c. Nonprofit organizations do not include private museums, theaters, schools, and churches.
d. Nonprofit services vary greatly from producer to producer and from day to day, even from the same producer.
93. Services, such as libraries, fire protection, and police protection are examples of ______.
a. nonfinancial pricing
b. the separation between payers and users
c. indirect payment
d. for-profit services
94. A _____ is an announcement that promotes a program of a federal, state, or local government or of a nonprofit
organization.
a. public service advertisement
b. commercial advertisement
c. retail advertisement
d. surrogate advertisement
95. Unlike goods, services are
a. produced in a centralized location and consumed in decentralized locations.
b. tangible performances.
c. stored, warehoused, and inventoried.
d. more heterogeneous and less standardized and uniform.
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96. Which of the following is an example of heterogeneity of services?
a. The packaging of the pizza that I ordered today had a very different design and was made of recyclable paper.
b. The tire I bought at a Chicago service station came with a discount but lasted as long as another other tire.
c. The customer service agent who contacted me last week was more helpful than the one who contacted me today.
d. The surgical instruments that doctors use in a New York hospital are the same as those used by doctors in the
Miami hospital where I was examined.
97. What kind of a service process does an electrical maintenance worker provide?
a. Information processing
b. Possession processing
c. Mental stimulus processing
d. People processing
98. Which of the following is the most important factor in influencing the distribution strategy of a time-dependent service
provider?
a. Scheduling
b. Tangible cues
c. Price bundling
d. Customization
99. The term that describes the service process that takes place when the service is directed at a customer is called
____________________.
a. information processing
b. possession processing
c. mental stimulus processing
d. people processing
100. When comparing the various kinds of relationship marketing, we can say that ______.
a. the social level is more developed than the structural level
b. the financial level is more developed than the social level
c. the customization level is more developed than the social level
d. the financial level is more developed than the customization level
101. Ace Deliveries, a courier service provider, built a strong reputation over a short period of six months. Inundated with
customers, the company decided to expand its fleet of vans and enlarge its delivery networks and to stop offering the
discounts it was offering to some market segments. Because it was the holiday sales season, higher pricing made good
business sense. The pricing Ace Deliveries is using is ______.
a. patronage-oriented, not operations-oriented
b. operations-oriented, not revenue-oriented
c. both revenue-oriented and operations-oriented
d. both operations-oriented and patronage-oriented
102. A service-providing firm that does little or no customer satisfaction research is most likely to experience a gap
between ______.
a. the service quality specifications and the service that is actually provided
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b. the customers’ wants and what management thinks customers want
c. what the company provides and what the customer is told it provides
d. management’s perception of what customers want and the quality specifications it develops
103. Which response describes how service-providing companies would most likely counter increasing competition?
a. Firms would widen their range of supplementary services because reducing them is almost always disastrous.
b. Firms would emphasize supplementary services or may position themselves by greatly reducing those services.
c. Firms would focus entirely on their core service as supplementary services mostly do not attract customers.
d. Firms would reduce their supplementary services and may also offer a less rigorous form of their core service.
104. An online store promises to deliver any order costing over $60 within 24 hours. It uses this strategy to increase the
volume of customer orders and the store always delivers on that promise. This company’s track record for prompt delivery
clearly implies that the company rates high on ______.
a. reliability
b. assurance
c. responsiveness
d. empathy
105. When evaluating services in terms of marketing strategies, a(n) _____ quality is a characteristic that can be assessed
only after use.
a. search
b. credence
c. experience
d. intangible
106. Describe the four promotion strategies that marketers use to promote services.
107. Identify and describe three issues related to the selection of target markets that are unique to nonprofit service
organizations.
108. Briefly explain what service firms must do to be successful in the global marketplace.
109. When making decisions about product offerings for their marketing mix, what are the three product-related
distinctions between business and nonprofit organizations?
110. Identify and discuss the challenges faced by service providers when deciding a pricing strategy.
111. Explain which factors marketers should focus on when deciding distribution strategies for their service organizations.
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Answer Key
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