The Cincinnati Museum Center is home to the Cincinnati History Museum, the Duke Energy
Children’s Museum, and the Museum of Natural History and Science. The Cincinnati History
Museum displays materials and related aspects of the history of Cincinnati and the surrounding region.
Costumed interpreters throughout the museum allow visitors the unique opportunity make a personal
connection with the past. The educational and dramatic exhibits at Duke Energy Children’s Museum
allow kids to climb, crawl, explore and learn about themselves and the world around them. And the
Museum of Natural History and Science gives children hands-on, inquiry based experiences in science,
technology, engineering and math.
113. Refer to Cincinnati Museum Center. The museum charges an admission, but only enough to defray its
cost of maintaining the exhibits because it doesn’t have the typical business goals. The Cincinnati
Museum Center is an example of a(n):
a.
nonprofit organization
b.
subgovernment entity
c.
unprofitable transaction
d.
service-oriented firm
e.
social marketing company
114. Refer to Cincinnati Museum Center. The visitors to the Cincinnati Museum Center represent the
museum’s:
a.
service entity
b.
promotional tools
c.
target market
d.
benefit strength
e.
benefit complexity
115. Refer to Cincinnati Museum Center. The _____ makes it difficult for the Cincinnati Museum Center to
prioritize its objectives and evaluate its performance.
a.
creation of a benefit strength
b.
lack of a financial objective
c.
inability to promote the exhibits
d.
absence of service qualities
e.
presence of intangible factors
116. Refer to Cincinnati Museum Center. The product decisions associated with the Museum Center
exhibits:
a.
deal with benefits that are both short term and simplistic
b.
illustrate the unimportance of service quality
c.
are very high involvement
d.
prove word-of-mouth promotion would be the best communication tool to use
e.
suggest nonfinancial objectives will be used to set prices
117. Refer to Cincinnati Museum Center. A decision to use public service announcements about the various
museum exhibits and attractions and to broadcast them in the Cincinnati area is an example of a _____
decision the Museum Center would need to make.
a.
product
b.
service
c.
distribution
d.
promotion
e.
price
Just because consumers live in a big city doesn’t mean they can’t have fresh milk right from the farm.
Many dairy farms, such as Oberweis Dairy and Smith Brothers Farms, offer home delivery of fresh
milk, just like in the old days. While some of these services are established and have been around
since the 1920s, New York City-based Manhattan Milk started up in 2008. For $20 or more,
depending on what is ordered, consumers anywhere in Manhattan can enjoy organic milk, butter,
yogurt, and cheese from Pennsylvania Amish farms and eggs from Vermont. Unlike most
store-bought milk, theirs is unhomogenized and free from hormones typically given to cows to
produce more milk.
118. Refer to Got Milk? Manhattan Milk is an example of a:
a.
retail operation
b.
service
c.
wholesale intermediary
d.
facilitator
e.
manufacturer
119. Refer to Got Milk? Manhattan Milk has a high _____ quality because its quality can only be assessed
after its use.
a.
experience
b.
credence
c.
cognitive
d.
search
e.
perceptual
120. Refer to Got Milk? One important aspect of Manhattan Milk’s service is the ability to deliver the
milk within 48 hours of being milked from the cow. This service quality component of the ability to
perform the service dependably, accurately, and consistently is referred to as:
a.
assurance
b.
empathy
c.
reliability
d.
tangibles
e.
consistency
121. Refer to Got Milk? Oberweis Dairy has been in business for over 80 years, and customers trust this
provider. Which component of service quality does this trust exemplify?
a.
creativity
b.
assurance
c.
empathy
d.
tangibility
e.
reliability
122. Refer to Got Milk? Customers place orders at manhattanmilk.com two days before the delivery date.
The Internet allows Manhattan Milk to customize each customer’s order to their preferences. This is
an example of:
a.
supplementary product
b.
intangible product
c.
mass customization
d.
promotion strategy
e.
internal marketing
The Ritzy Canine Carriage House looks like several other Manhattan boutique hotels. The lobby
features a crystal chandelier, brocade-patterned wallpaper, gold-framed mirrors, and antique chairs.
Room service and salon service are available as well as exercise facilities. There is also a masseuse on
staff. Dogs are the only guests, and hopefully they appreciate the DVD player in the $175-a-night
Windsor suite. Without extras, a one-day visit will cost $40 to $50, depending on the size of the dog.
The Ritzy Canine is a high-end doggy “hotel” and “spa.” In a world where people work long hours and
take longer to settle down, they do not mind spending money on their dogs.
123. Refer to The Ritzy Canine. Before leaving a dog at the Ritzy Canine, its owner would more than likely
inspect the facilities and use _____ qualities to evaluate the establishment.
a.
experience
b.
credence
c.
investigative
d.
search
e.
standardized
124. Refer to The Ritzy Canine. While it is difficult for a dog owner to evaluate the service their pooch will
receive, they are impressed with the upscale design and amenities offered. To cope with the problems
of service _____, the facilities at the Ritzy Canine are very upscale in design to give the impression of
excellent treatment.
a.
perishability
b.
homogeneity
c.
intangibility
d.
inseparability
e.
heterogeneity
125. Refer to The Ritzy Canine. Research has shown that consumers evaluate service quality on five
components. When customers rate the people who supervise the dog activities as being “dog people”
and having an understanding of the needs of dogs and their owners, they are concerned with the _____
component.
a.
reliability
b.
responsiveness
c.
standardization
d.
empathy
e.
flexibility
126. Refer to The Ritzy Canine. Which category of service processing is used at this doggy care center?
a.
Possession
b.
Mental stimulus
c.
Physical stimulus
d.
Information
e.
People
127. Refer to The Ritzy Canine. Supervised doggy care is the _____ service product, and dog massages
would be _____ service products.
a.
central; peripheral
b.
primary; secondary
c.
core; supplementary
d.
essential; superfluous
e.
supplementary; core
128. Refer to The Ritzy Canine. What type of promotion strategy would you expect Ritzy Canine to use?
a.
engaging in postpurchase research
b.
forging prepurchase commitments
c.
using motivational behavior
d.
creating a strong organizational image
e.
using outsourced information sources
Have you ever wanted to spend your vacation up close and personal with a grizzly bear? Great Bear
Nature Tours is one of the many lodges that provide that service. Great Bear, located in British
Columbia, is actually a lodge built on a floating barge. The lodge can handle up to ten guests in what
the Wall Street Journal calls rustic but upscale accommodations in double rooms that begin at a rate of
$1,418 per night, including bear watching tours.
Although bear hunting still brings tourists to Canada, bear watching is a growing attraction. On a bear
watching tour the guide, who is often unarmed, will take you close enough to get a good view of a
grizzly in the wild. In fact, one of the favorite tours allows you to watch bears swipe at salmon as they
swim upstream to spawning grounds.
While bear watching sounds dangerous, bear attacks are not common. However, just to be careful
many tour guides carry pepper spray. Tour guides say they are able to keep tour members safe by
watching the bears and reading their body movements.
129. Refer to Grizzly watching. The bear watching vacation experience can vary greatly depending on
many factors, including the lodge itself and the tour guide. For example, lodging can run from a
“rustic” room with little more than a bed to a plush room with all the modern amenities. This is an
example of the _____ characteristic of services.
a.
intangible
b.
inseparable
c.
heterogeneous
d.
perishable
e.
homogeneous
130. Refer to Grizzly watching. If Great Bear Nature Tours rated and rewarded its tour guides based on the
number of bears seen by guests, the tour guides might be willing to accept more risk in seeking out the
bears than guests would really want. This could result in which service quality gap?
a.
A gap between what customers want and what management thinks customers want.
b.
A gap between what management thinks customers want the quality specification that
management develops to provide the service.
c.
A gap between the service quality specifications and the service that is actually provided.
d.
A gap between what the company provides and what the customer is told it provides.
e.
A gap between the service the customer receives and the service they want.
131. Refer to Grizzly watching. Instead of pricing guests separately for their room, breakfast, tours, etc. the
Great Bear Nature Tour charges a _____ price of $1,418 per night, including bear watching tours.
a.
bundled
b.
supplementary
c.
core service
d.
intangible
e.
unbundled
132. Refer to Grizzly watching. The height of the bear-watching season is in the fall during salmon
spawning season. Tourists love to watch bears capturing salmon as the salmon swim upstream to
spawn. If a bear watching tour lodge raises its prices during this season it is practicing:
a.
revenue-oriented pricing
b.
operations-oriented pricing
c.
target market pricing
d.
patronage-oriented pricing
e.
cumulative pricing
133. Refer to Grizzly watching. At Great Bear Nature Tour the owners are very careful to treat both guests
and employees very well. In fact, some employees have commented that the employees are treated like
they were guests. This is an example of:
a.
knowing your target market
b.
interior/exterior marketing
c.
internal marketing
d.
gap theory
e.
unbundled marketing
ESSAY
1. What is a service? Describe the importance of services to the U.S. economy and what the demand for
services is projected to be in the coming years.
2. Services have four unique characteristics that distinguish them from goods. Name and briefly define
each of these four characteristics. Use the example of an airline to help describe each of the four
characteristics.
3. Compare and contrast search quality, experience quality, and credence quality. Describe their
significance for the marketing of services.
4. Describe the five gaps identified in the gap model of service quality that can cause problems in service
delivery and influence customer evaluations of service quality. Discuss ways marketers can close each
gap.
5. Define core and supplementary services. Give an example of each for the following services:
a wedding consultant, a lawn care service, and tutoring service.
6. What are the five key issues to remember when developing distribution strategies for service
organizations?
7. There are four promotional strategies for dealing with the unique features of services. Name these
strategies, and give examples of each, using American Airlines (or another air carrier you are familiar
with) as your example service.
8. Describe the two unique challenges faced by service providers as they decide on a pricing strategy to
use.
9. Name and briefly define the three categories of pricing objectives for services.
10. Relationship marketing can be practiced at three levels, each level adding a new kind of bond with the
customer. Name and describe each of these levels, using a legal service to illustrate each level.
11. What is the difference between internal marketing and relationship marketing? Why are these types of
marketing important to service marketing?
12. Briefly explain what service firms must do to be successful in the global marketplace.
13. What is nonprofit organization marketing? How does nonprofit marketing affect economic activity in
the United States?
14. What is a nonprofit organization? Discuss the marketing activities performed by nonprofit
organizations.
15. Discuss three issues relating to target markets that are unique to nonprofit organizations. Provide an
example of each issue.
16. Discuss the three product-related distinctions between business and nonprofit organizations.
17. Discuss the limitations nonprofit marketers face when making promotion decisions and describe how
they overcome these limitations.
18. List and describe the five key characteristics that distinguish the pricing decisions of nonprofit
organizations from those of the profit sector.