c.
production
d.
product
e.
demand/supply
59. All of the following are keys factor in the distribution strategy for services EXCEPT:
a.
customization
b.
convenience for customers
c.
number of intermediaries and outlets
d.
scheduling of service deliveries
e.
location
60. The _____ of a service most clearly reveals the relationship between its target market strategy and its
distribution strategy.
a.
convenience
b.
location
c.
customization
d.
promotion
e.
number of intermediaries and outlets
61. All of the following are recommended promotional strategies for services EXCEPT:
a.
concentrating on franchising
b.
stressing tangible cues
c.
using personal information sources
d.
creating a strong organizational image
e.
engaging in postpurchase communications
62. Sir Paul McCarthy and Alicia Silverstone are two of the many celebrities that are serving as
spokespeople for the animal rights group People for the Ethical Treatment of Animals (PETA). Both
are committed to vegetarianism. In terms of promotion strategy, they will be considered a(n) _____
information source.
a.
cue control
b.
nonsource-controlled
c.
impersonal
d.
remote
e.
personal
63. Allstate Insurance says “You’re in good hands with Allstate” and Prudential Life Insurance shows a
rock in its commercials because it wants to convey stability. These companies are using what type of
promotion strategy?
a.
Stressing tangible cues
b.
Stressing homogeneity
c.
Using personal information sources
d.
Providing packaging cues
e.
Communicating service integration signals
64. Which of the following is an example of post-purchase communication?
a.
An airline hires an actor to film a series of humorous commercials touting the airline’s
service.
b.
An insurance company designs a new “umbrella” logo to indicate that its customers are
well-protected by coverage.
c.
A fast-food restaurant issues standardized uniforms for all its employees.
d.
A hotel sends an email survey to a Henri a week after his stay, asking him to comment on
the quality of the service he received.
e.
An income tax preparer offers a 20% discount for any customers who use the service in
January.
65. The three categories of pricing objectives for services are:
a.
sales-, quality-, and location-oriented
b.
quality-, value-, and consumer-oriented
c.
revenue-, operations-, and patronage-oriented
d.
turnover-, volume-, and capacity-oriented
e.
equity-, cost-, and revenue-oriented
66. A focus on maximizing the surplus of income over costs is a(n) _____ pricing objective for service
firms.
a.
revenue-oriented
b.
operations-oriented
c.
market-share-oriented
d.
patronage-oriented
e.
service-quality
67. Determining costs can be extremely difficult for a service provider that has adopted a(n) _____ pricing
objective and may limit the usefulness of the objective.
a.
market-share-oriented
b.
operations-oriented
c.
revenue-oriented
d.
patronage-oriented
e.
break-even
68. Which service pricing objective seeks to match supply and demand by varying prices?
a.
Revenue-oriented
b.
Operations-oriented
c.
Patronage-orient
d.
Externally-oriented
e.
Equilibrium-oriented
69. Monday and Tuesday nights are traditionally slow nights in the restaurant business. So LaRosa’s
Italian Restaurant offers “all-you-can–eat spaghetti night” on Mondays and Tuesdays. For the price of
a regular spaghetti dinner, customers can eat all the spaghetti they want on those nights. Because it is
focusing on coordinating supply and demand by varying prices, the restaurant is using a(n) _____
pricing objective for service firms.
a.
revenue-oriented
b.
operations-oriented
c.
image-focused
d.
patronage-oriented
e.
equity-oriented
70. A focus on maximizing the number of customers using a service is a(n) _____ pricing objective for
service firms.
a.
maximization of demand
b.
patronage-oriented
c.
profitability-oriented
d.
operations-oriented
e.
revenue-oriented
71. A continuing problem for most Minor League Baseball (MiLB) teams is low attendance. Event and
venue sponsors want to see fans in the stadiums, and the players appreciate fan support. Given this
information, which pricing strategy would you recommend MiLB teams use?
a.
Operations-oriented pricing
b.
Peak profitability pricing
c.
Patronage-oriented pricing
d.
Supply-demand pricing
e.
Revenue-oriented pricing
72. Most movie theaters offer discount ticket prices to students and senior citizens. This illustrates the
_____ pricing objective.
a.
subsidized
b.
operations-oriented
c.
profitability-oriented
d.
service quality
e.
patronage-oriented
73. Because many services involve a process of continuous interaction between the service organization
and the customer, _____ marketing is an important strategy.
a.
interactive
b.
relationship
c.
patronage
d.
nonprofit
e.
affiliation
74. One of the main responsibilities of sport marketers is to keep their loyal customers as heavy users and
escalate lower-level users into loyal customers. An effective tool for accomplishing this goal would be
_____ marketing.
a.
interactive
b.
relationship
c.
patronage
d.
nonprofit
e.
affiliation
75. Any one-at-a-time sale, such as a movie theater ticket, a meal at a restaurant, or public transportation
fare, is called a(n) _____ transaction.
a.
patronage
b.
interactive
c.
distinct
d.
affiliation
e.
discrete
76. At which level of relationship marketing does the firm only use pricing incentives to encourage
customers to continue doing business with it?
a.
Level 1
b.
Level 2
c.
Level 3
d.
Level 4
e.
Level 5
77. The level of relationship marketing that is least likely to be effective in the long term because its
advantage is easily imitated by other firms is based on:
a.
personal communications
b.
social bonds
c.
service delivery heuristics
d.
pricing incentives
e.
structural bonds
78. Mountain Express is a company that provides grocery delivery service to several small communities in
Idaho. The company gives a 2 percent discount on all food orders to customers after they have used the
service 10 times. An additional percentage discount is offered for each additional 15 orders up to a
maximum of 8 percent. The relationship marketing strategy used by Mountain Express is based on:
a.
following service delivery paradigms
b.
building social bonds
c.
building financial bonds
d.
opening personal communication channels
e.
creating structural bonds
79. Which level of relationship marketing uses pricing incentives but also seeks to build social bonds with
customers?
a.
Level 1
b.
Level 2
c.
Primary level
d.
Secondary level
e.
Supplemental level
80. A management consulting business stays in touch with its business customers with phone calls and
greeting cards. It periodically sends out needs-assessment questionnaires and designs new services to
meet the needs revealed in these surveys. This is an example of relationship marketing based on:
a.
financial bonds
b.
social bonds
c.
service delivery
d.
patronage bonds
e.
structural bonds
81. Building value-added services that are not readily available from other firms into the delivery system
defines relationship marketing based on the creation of:
a.
financial bonds
b.
social bonds
c.
service delivery paradigms
d.
personal communication channels
e.
structural bonds
82. Hyatt Regency’s Platinum Card Program allows members to bypass any line at the check-in desk and
get immediate check-in service. In this example, _____ are developed by offering value-added services
that are not readily available from other hotel chains.
a.
price incentives
b.
social bonds
c.
service delivery paradigms
d.
personal communication channels
e.
structural bonds
83. Relationship marketing programs that are based on _____ bonds have the strongest potential for
sustaining long-term relationships with customers.
a.
financial and individual
b.
social and structural
c.
financial, social, and structural
d.
financial and patronage
e.
financial and structural
84. Treating employees as customers and developing systems and benefits that satisfy their needs is
known as _____ marketing.
a.
organizational quality
b.
relationship
c.
internal
d.
job-faceted
e.
job-satisfaction
85. Companies have a strong incentive to keep their employees happy, as studies show that replacing an
employee who leaves a job costs roughly _____ times a year’s pay.
a.
1.5
b.
2
c.
2.5
d.
3
e.
4
86. Which country is the world’s largest exporter of services?
a.
Germany
b.
Japan
c.
United States
d.
China
e.
Canada
87. To be successful in the global marketplace, service firms must first:
a.
develop pricing incentives to encourage customers to begin doing business with them
b.
design marketing mix elements that account for each country’s unique environment
c.
hire employees who are familiar with the local culture
d.
determine the nature of their core product.
e.
build strong social bonds with their foreign customers
88. A _____ seeks to achieve some goal other than the usual business goals of profit, market share, or
return on investment.
a.
nonprofit organization
b.
synergistic entity
c.
company with no equity
d.
service provider
e.
patronage-oriented organization
89. People for the Ethical Treatment of Animals (PETA) is the largest animal rights organization in the
world. PETA works for better treatment of animals instead of achieving profits, market share, or return
on investment. PETA is an example of a:
a.
patronage-oriented organization
b.
synergistic entity
c.
company with no equity
d.
service provider
e.
nonprofit organization
90. The predominant form of nonprofit organization in the United States is:
a.
farms
b.
arts museums and programs
c.
private-sector volunteer organizations
d.
social service firms
e.
government
91. All of the following are examples nonprofit organizations EXCEPT:
a.
GEICO, an insurance company
b.
the Muscular Dystrophy Association
c.
the Make-a-Wish Foundation
d.
Kiwanis International, a service organization
e.
the United Auto Workers, a labor union
92. _____ refers to the efforts of nonprofit organizations to bring about mutually satisfying exchanges
with their target markets.
a.
Autonomous marketing
b.
Public affairs marketing
c.
Social targeting
d.
Social marketing
e.
Nonprofit organization marketing
93. Habitat for Humanity renovates vacant houses and sells them at no-interest mortgage rates to
low-income home buyers. The organization relies on volunteers to provide the labor and funding for
its renovations. Habitat for Humanity is best described as a(n):
a.
image-oriented organization
b.
for-profit organization
c.
nonprofit organization
d.
service branch
e.
source-based organization
94. Most nonprofit organizations perform all of the following marketing activities EXCEPT:
a.
identify the customers they wish to serve or attract
b.
develop, manage, and eliminate programs and services
c.
decide on prices to charge
d.
schedule events or programs
e.
Most nonprofit organizations perform all of the above.
95. Nonprofit organizations face a unique challenge because the target market of the nonprofit
organization is often:
a.
the community where it is located
b.
the people who provide the funding
c.
a paid administrator
d.
the apathetic or strongly opposed individuals
e.
the government
96. Many nonprofit organizations are pressured or required to serve the maximum number of people by
targeting the average user, which pressures them to adopt which type of targeting strategy?
a.
Niche
b.
Undifferentiated
c.
Multisegmented
d.
Uniform
e.
Unidimensional
97. If a benefit is indirect to the customer, the marketer may find a challenge in promoting a product with
little:
a.
benefit complexity
b.
feature charisma
c.
benefit strength
d.
personalization
e.
benefit exchange
98. Gifts in Kind International is a nonprofit organization that gathers new and used merchandise and
distributes it to charities nationwide. Traditional promotional tools may be inadequate to motivate its
target markets because of:
a.
nonprofit product volunteer policies
b.
the absence of consumer involvement
c.
lack of prices for the products
d.
direct distribution
e.
infrequent use of target markets
99. Susan G. Komen for the Cure is the largest breast cancer organization in the U.S. Komen’s annual
Race for the Cure series of 5K runs and fitness walks are organized to raise funds for the organization
as well as to raise public awareness of the disease. Komen’s Race for the Cure is an example of a
_____ strategy.
a.
target market
b.
distribution
c.
product
d.
promotion
e.
direct marketing
100. _____ is an announcement in mass media for which no charge is made and which promotes programs,
activities, or services of federal, state, or local governments or the programs, activities, or services of
nonprofit organizations.
a.
Nonsponsored advertising
b.
Public service advertising
c.
Societal marketing
d.
Cause-related marketing
e.
Social advertising
101. The Monroe Job Training for the Disabled program wants to notify the community about its upcoming
rummage sale. As an experienced marketer and director of the program, you plan to visit several local
radio and televisions stations to request:
a.
cooperative advertising
b.
nonsponsored advertising
c.
primary advertising
d.
public service advertising
e.
nonprofit advertising
102. Some nonprofits have been successful in offering online forums for people to share experiences. In
such cases, agencies are using _____ for promotion.
a.
professional volunteers
b.
public service advertising
c.
peer-to-peer communications
d.
sales promotion activities
e.
nonsponsored advertising
103. In a nonprofit organization, _____ are often concerned with partially or fully defraying costs rather
than achieving a profit.
a.
nonfiscal costs
b.
pricing objectives
c.
cause-related goals
d.
equity earnings
e.
liquidity fees
104. In many nonprofit situations, the consumer is not charged a tangible price yet must absorb time costs,
embarrassment costs, or effort costs. These costs are called the organization’s:
a.
liquidity fees
b.
financial costs
c.
fiscal prices
d.
nonfinancial prices
e.
retained earnings
105. All of the following are key characteristics distinguishing the pricing decisions of nonprofit
organizations from those of the profit sector EXCEPT:
a.
separation between payers and users
b.
nonfinancial prices
c.
indirect payment
d.
cost allocation
e.
below-cost pricing
In an industry where guests are tired of cookie cutter hotels, some consumers are looking for
personalized service, which can be found in boutique hotels. Boutique hotels cater to their guests’
sense of their personal image as being discriminating, more sophisticated, and more hip. Frequently,
these guests don’t want to be where the crowds are. This is a small but growing market niche. There
are no generally recognized rules for boutique hotels, but they tend to be small and service oriented,
with high-style decor and top-notch restaurants. Employees are called cast members. Amenities
include cordless phones, DVR players hooked up to high-definition televisions, Aveda brand bath and
hair products, and down comforters and pillows.
106. Refer to Boutique Hotels. The service provided by employees at boutique hotels cannot be touched,
seen, or felt in the same manner as the hair and bath products and can be described as:
a.
unknowable
b.
tangible
c.
intangible
d.
credible
e.
incomprehensible
107. Refer to Boutique Hotels. To evaluate the quality provided by boutique hotels, customers can only
assess the quality only after staying. This is which quality characteristic?
a.
Experience
b.
Relational
c.
Credence
d.
Search
e.
Synergistic
108. Refer to Boutique Hotels. Since boutique hotels are typically independently owned and/or part of small
chains, people who seek out boutique hotels cannot be sure of what type of amenities or specific
services they will be provided. In other words, the services provided by boutique hotels tend to be
relatively high in:
a.
instability
b.
inseparability
c.
intangibility
d.
heterogeneity
e.
perishability
109. Refer to Boutique Hotels. When a guest asks an employee for directions to a local gallery or museum,
the service received cannot be stored or warehoused. This service, therefore, is characterized as:
a.
inseparable
b.
perishable
c.
intangible
d.
unstable
e.
homogeneous
110. Refer to Boutique Hotels. Which type of processing occurs most often at a hotel that wants to provide
personalized service?
a.
People processing
b.
Possession processing
c.
Information processing
d.
Equipment processing
e.
Supplementary processing
111. Refer to Boutique Hotels. Boutique hotels encourage employees to develop personal relationships with
guests. The hotels offer value-added services that are not available at traditional hotels. At which level
of relationship marketing are these hotels operating?
a.
First
b.
Second
c.
Third
d.
Fourth
e.
Fifth
112. Refer to Boutique Hotels. Boutique hotels not only call their employees cast members, but they
compete for their talent, provide them with all the training needed, stress teamwork, and give
employees freedom to make decisions. In order to provide the level of service guests require, boutique
hotels need to engage in _____ marketing.
a.
interactive
b.
relationship
c.
internal
d.
nonprofit
e.
affiliation