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c.
high level of customer contact; clients
d.
low level of perishability; customers
e.
low level of intangibility; clients
53. Which of the following is the best example of a high-contact service?
a.
Appliance repair
b.
Newspaper delivery
c.
Dog training
d.
Interior decorating
e.
Plastic surgery
54. Which of the following statements about customer contact in services marketing is false?
a.
Service employees are important in creating satisfied customers.
b.
High-contact services are less expensive to deliver because they are typically equipment-based.
c.
The main principle of customer contact is that satisfied employees lead to satisfied customers.
d.
Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact
services.
e.
Employee training programs are an effective way to ensure good customer contact and reduce problems.
55. If Best Western 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.
business
e.
complimentary
56. A service is usually offered as part of a bundled package of services with a core service and one or more ____
services.
a.
basic
b.
tangible
c.
supplementary
d.
auxiliary
e.
other core
57. A first class airline ticket offers a ____ service of transportation as well as ____ services of drink and food service,
special boarding rights, and extra customer service.
a.
primary; secondary
b.
core; supplementary
c.
bundled; extra
d.
complementary; main
e.
major; minor
58. Which of the following service characteristics results in variability of service quality yet provides the opportunity for
customizing services to match the specific needs of individual customers?
a.
Homogeneity
b.
Perishability
c.
Heterogeneity
d.
Intangibility
e.
Inseparability
59. The heterogeneity characteristic of services provides marketers with tremendous opportunity to
a.
customize their services to meet unique individual needs.
b.
hold down the cost of providing services to customers.
c.
create standardized packages that will appeal to many customers.
d.
offer the same service as all of their competitors.
e.
develop relationship marketing with their customers.
60. Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service
provider. 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.
61. Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car.
She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic.
Brittany was trying to overcome the ____ aspect of services.
a.
heterogeneity
b.
perishability
c.
customer contact
d.
intangibility
e.
inseparability
62. One way service businesses communicate a higher level of service quality to their customers is by having their
employees be clean, sharp looking, and dressed in appropriate uniforms. This is a way to address the ____ characteristic
of services.
a.
intangibility
b.
perishability
c.
tangibility
d.
inseparability
e.
heterogeneity
63. In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but
marketers should be careful not to
a.
deliver on these promises and risk financial losses and the success of the company.
b.
promise less than they can actually deliver and keep customers away.
c.
make the appearance of their facilities consistent with their promises to customers.
d.
promise too much and cause customer expectations beyond what they can deliver.
e.
make the quality of their services too tangible in the eyes of the customer.
64. A sign in a doctor's office waiting room says "Please be courteous of the others waiting with you." The doctor's office
is trying to positively influence the ____ aspect of services.
a.
tangibility
b.
perishability
c.
inseparability
d.
customer contact
e.
heterogeneity
65. Prudential Insurance uses "the rock" symbol to communicate stability and security to customers. This is Prudential's
attempt to help customers better understand its services by
a.
emphasizing tangible cues in promoting the service.
b.
using word association.
c.
personalizing the selling of the service.
d.
utilizing publicity techniques to enhance the service.
e.
distributing the service directly through television.
66. What are the three primary ways that marketers deliver services?
a.
Over the phone, online, or in-person
b.
Continuously, periodically, or on demand
c.
At the customer's home, in-person, or by telecommunications
d.
Through service centers, delivery vehicles, or the mail
e.
Service facilities, customer's home, or from a distance
67. The marketing channels for services are usually
a.
complex and multifaceted.
b.
characterized by two to three intermediaries.
c.
dependent on the geographical location of the consumer.
d.
determined by the customer.
e.
direct from provider to customer.
68. By installing automated check-in kiosks in some airports, airlines have increased production capacity and reduced the
number of personnel. This results in a decrease in
a.
perishability.
b.
intangibility.
c.
customer contact.
d.
inseparability.
e.
customer service.
69. Compared to goods marketers, services providers are more likely to promote performance documentation, availability,
guarantees, and
a.
distribution.
b.
tangible elements.
c.
management expectations.
d.
price.
e.
customer expectations.
70. Symbols such as the Travelers' Financial Services umbrella are designed to help customers overcome the ____ of
services.
a.
heterogeneity
b.
unpredictability
c.
inseparability
d.
intangibility
e.
perishability
71. Flo, the spokesperson in Progressive Insurance TV commercials, is used to symbolize friendliness, reliability, and
knowledge of the company’s products. The part Flo plays in the promotion is designed to address the ____ characteristic
of services.
a.
intangibility
b.
perishability
c.
heterogeneity
d.
inseparability
e.
customer service
72. Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion
strategy relies mostly on
a.
news stories.
b.
a webpage.
c.
word of mouth.
d.
newspaper ads.
e.
television ads.
73. Production and consumption of services must simultaneously occur due to the ____ characteristic of services.
a.
intangibility
b.
heterogeneity
c.
customer contact
d.
perishability
e.
inseparability
74. An US Airways flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty
US Airways flight from Chicago to Phoenix. This is an example of what kind of service pricing?
a.
Bundled
b.
Demand-based
c.
Supply-based
d.
Upfront
e.
Customer-based
75. Tutors, attorneys, and consultants are most likely to price their services based on ____, while auto repair, hair stylists,
and house painters are likely to price their services based on ___.
a.
functions performed; time
b.
time; functions performed
c.
objectives accomplished; time
d.
demand; objectives accomplished
e.
time; demand-based pricing.
76. Demand-based pricing most closely relates to the ____ of services.
a.
perishability
b.
intangibility
c.
heterogeneity
d.
customer contact aspect
e.
inseparability
77. Some services are time sensitive, meaning that a significant number of customers desire the service around the same
time. This point in time is called
a.
peak demand.
b.
preferred demand.
c.
off-peak demand.
d.
high-contact time.
e.
high intensity time.
78. Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even
unlimited night and weekend minutes. This is an example of
a.
time-based pricing.
b.
off-peak demand.
c.
demand-based pricing.
d.
time dependence pricing.
e.
bundled costing.
79. When a theater entices customers to see movies during the daytime by offering tickets at a reduced price, it is trying to
solve the services marketing problem of
a.
inseparability.
b.
intangibility.
c.
customer contact.
d.
off-peak demand.
e.
heterogeneity.
80. Any service provider that offers time-sensitive services receives most of its revenue during
a.
peak demand.
b.
heavy use time.
c.
the off-season.
d.
preferred demand.
e.
customer contact time.
81. Which of the following service providers are most likely to use demand-based pricing?
a.
Dentists
b.
Lawyers
c.
Doctors
d.
Hair stylists
e.
Cruise ships
82. Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the
following best describes Safe Auto's approach?
a.
Customers often use price as an indicator of quality, and Safe wants to be seen as a low-quality provider.
b.
This type of advertising makes insurance more tangible to the customer.
c.
Safe wants to reassure customers that they provide the highest level of service quality available.
d.
Because market conditions limit prices on auto insurance, Safe uses this approach to gain customers.
e.
For some services, customers look for the low-cost provider, which is what Safe claims to be.
83. American Life uses leather-look portfolios and high-quality paper and printing for its life insurance policies in order to
indicate
a.
the success of its business.
b.
the intangibility of its service.
c.
the tastes of its management.
d.
the inseparability of its agents and customers.
e.
the quality of its services.
84. Who judges service quality?
a.
Employees
b.
The company
c.
Independent raters
d.
Customers
e.
Marketers
85. Consumers look closely at service quality when comparing competing services because
a.
they perceive all services to be essentially the same.
b.
they typically have very few services from which to select.
c.
all services are priced about the same.
d.
quality is the only relevant service characteristic.
e.
services are very difficult to evaluate.
86. Tina, a waitress at the Riverfront Grill, is angry that a customer complained that his soup was cold because of her slow
service. Riverfront owner Max Griffin reminds her that she must focus on service quality as defined by
a.
the health department.
b.
restaurant management.
c.
the customer's perceptions.
d.
temperature guidelines.
e.
general practices.
87. Tara finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to
see exactly how they feel and fit. In other words, the jeans have many ____ qualities.
a.
experience
b.
search
c.
intangible
d.
credence
e.
assurance
88. Antonio is planning a trip to Cancun for spring break. He will likely be able to evaluate the hotel’s size, amenities
offered, and prices by looking at information on its website. However, he won’t be able to evaluate the comfort level of
the bed or the friendliness of the employees until he actually spends time at the hotel. The type of evaluation attributes
Antonio is using before his trip are called _______ and those he uses during the trip are called _____.
a.
search; experience
b.
search; credence
c.
credence; experience
d.
credence; search
e.
experience; credence
89. Many services have aspects that consumers may never be able to evaluate, even years after the purchase and
consumption of the service. These attributes are called
a.
search qualities.
b.
performance attributes.
c.
experience qualities.
d.
immeasurable attributes.
e.
credence qualities.
90. Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product
offered is beneficial. This aspect of the dentist's product is called ____ quality.
a.
search
b.
experience
c.
credence
d.
tangible
e.
separable
91. A small private college in Tennessee paid a large sum of money to a marketing firm to study the college's current
marketing strategy and help develop new strategies for attracting students. The college is having a difficult time
evaluating the effectiveness of the marketing firm's work because this type of service has many
a.
search qualities.
b.
undefined parameters.
c.
credence qualities.
d.
experience qualities.
e.
unknown results.
92. There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the
tangibles, responsiveness, assurance, and
a.
credibility.
b.
experience within industry.
c.
responsibility.
d.
employee empathy.
e.
product knowledge.
93. Attributes which are assessed only during the consumption of a service are called
a.
tangibles.
b.
search qualities.
c.
experience qualities.
d.
use benefits.
e.
credence qualities.
94. Although it has a strong customer base, Sato Japanese Restaurant rarely attracts customers by methods other than
word-of-mouth communication. The manager believes this can be explained by the restaurant's location in a rough area in
the city and its run-down appearance. In other words, potential customers are most concerned about
a.
reliability.
b.
assurance.
c.
responsiveness.
d.
tangibles.
e.
empathy.
95. The willingness and readiness of employees to meet the needs of the customer while providing the service is an
important dimension of service quality called
a.
reliability.
b.
responsiveness.
c.
empathy.
d.
tangibles.
e.
assurance.
96. Surveys, focus groups, and customer comment cards are all methods used by service companies to
a.
understand customer needs and expectations.
b.
set service quality specifications.
c.
establish guidelines for employee performance.
d.
manage service expectations.
e.
control service intangibility.
97. Jack and Amy are purchasing their first home and have certain expectations for the mortgage company with which
they are working. After a long series of "unexplainable" delays, Jack and Amy become very frustrated and decide to stay
in their apartment at least another year. The mortgage company failed to provide service within Jack and Amy's
a.
specifications.
b.
desired responsiveness.
c.
perceptions of quality.
d.
service acceptance.
e.
zone of tolerance.
98. The two levels of expectations that consumers generally have about services are
a.
acceptable and unacceptable.
b.
desired and undesired.
c.
reliable and unreliable.
d.
acceptable and desired.
e.
tolerable and desired.
99. In service marketing, the most important link to the customer is
a.
effective advertising.
b.
good word-of-mouth communication.
c.
well-trained contact employees.
d.
the tangible aspects of the service.
e.
exceptional service quality.
100. In most service industries, customer-contact employees are
a.
valued as the most important employees in the organization.
b.
the best trained employees in the organization.
c.
the lowest-paid and least-trained employees.
d.
well-trained but have high turnover rates.
e.
moderately paid personnel with high rates of turnover.
101. When Prize Pet Grooming offers pet owners who recommend the business to a friend $10 off their next grooming
bill, it is a program designed primarily to
a.
increase the amount of customer contact.
b.
elevate expectations.
c.
encourage word-of-mouth communication.
d.
increase the commitment of the customer.
e.
increase advertising effectiveness.
102. Stephanie sets up her new interior decorating business and advertises her expertise in high-quality draperies and
other window treatments. One of her first customers is extremely dissatisfied with Stephanie’s work, so Stephanie redoes
the job at her own expense because she knows how powerful ____ is (are) for services and wants to stay in business.
a.
service expectations
b.
word-of-mouth communication
c.
zones of tolerance
d.
customer perceptions
e.
experience qualities
103. ____ marketing includes activities conducted by individuals and organizations to achieve some goal other than
ordinary business goals such as profit.
a.
Cause
b.
Nonprofit
c.
Social
d.
Individual
e.
Channel
104. Which of the following best defines nonprofit marketing?
a.
Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals
such as profit or return on investment
b.
Marketing activities conducted by organizations other than business organizations
c.
Nonbusiness activities aimed at goals such as profit or return on investment
d.
Marketing activities aimed at getting the product to the retailers, through intermediaries
e.
The marketing activities conducted by individuals and organizations that are considered volunteer
establishments
105. An important difference between for-profit and nonprofit marketing is that
a.
there is no exchange in nonprofit marketing because the nonprofit organization receives something of value
but does not give anything of value.
b.
marketing exists only in the for-profit organization.
c.
the goals of the nonprofit organization differ from the goals of the for-profit organization.
d.
a target market need not be determined in the nonprofit marketing scheme.
e.
there is no price in the marketing mix of the nonprofit organization.
106. Which of the following is similar for both for-profit and nonprofit marketing?
a.
Emphasis on profit as a motive
b.
Ability to use effective marketing activities
c.
Concern for the entry of competitors into the field
d.
Complexity of the typical distribution channels
e.
Definition of target markets
107. Select the true statement about nonprofit marketing.
a.
The chief beneficiaries of a nonprofit organization are the owners or stockholders.
b.
The planning of market strategies requires less refinement and coordination of goals in the nonprofit field than
in the for-profit field.
c.
Major nonprofit marketers in the United States are social causes and charitable organizations.
d.
Marketing goals in nonprofit activities cannot be determined.
e.
All nonprofit organizations that have adopted the marketing concept have been successful.
108. In nonprofit organizations,
a.
development of a marketing strategy should focus on the general public.
b.
the direct consumers of the product are the client public.
c.
target markets are defined much more easily.
d.
the techniques used by for-profit organizations to define target markets cannot be applied.
e.
goods are marketed more often than ideas or services.
109. A university's student body would be considered its ____ public, and parents, alumni, and trustees would be included
as its ____ public.
a.
client; general
b.
specialized; general
c.
target; simple
d.
general; client
e.
target; market
110. According to the text, the direct consumers of a nonprofit organization's ideas or services are called its ____ public.
a.
general
b.
consumer
c.
member
d.
client
e.
nonbusiness
