1. Discuss the importance of services in the U.S. economy, and explain the growth of services in our economy.
2. List and explain the six distinguishing characteristics of service products. Then discuss some of the marketing issues
and problems associated with each characteristic.
3. Explain the role of “promises” and “trust” in the successful marketing of a service.
4. How can a service marketer smooth the fluctuations in demand from times of peak demand to times of off-peak
demand?
5. All services suffer from heterogeneity. Explain this problem, and discuss different ways that heterogeneity can occur in
service delivery.
6. Explain how the characteristics of services affect the development and management of marketing mixes.
7. How does the promotion of services differ from the promotion of goods?
8. What specific marketing problems are experienced by a provider of high-contact services that are not experienced by a
provider of low-contact services?
9. In what ways do perishability and intangibility affect the pricing of services?
10. What dimensions do customers use to evaluate service quality?
11. Identify and discuss the four factors that affect the delivery of service quality. How can service marketers use these
factors to their advantage?
12. Describe how nonprofit marketing differs from for-profit marketing.
13. How do the target markets of nonprofit organizations differ from the target markets of for-profit organizations?
14. How does the marketing mix (product, price, distribution, and promotion) differ in nonprofit marketing?
15. Services are usually provided through ____ directed at people or objects.
a.
tangible and intangible products
b.
physical labor
c.
the application of human or mechanical efforts
d.
ideas and other intangible efforts
e.
knowledge and technology
MARK.PRID.16.13.01 – LO: 13–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: The Growth And Importance of Services
Bloom’s: Knowledge
16. In general, differences between goods and services are 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.
MARK.PRID.16.13.01 – LO: 13–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: The Growth And Importance of Services
Bloom’s: Knowledge
17. Any human or mechanical effort that adds value to a product is called
a.
a service.
b.
an intangible.
MARK.PRID.16.13.05 – LO: 13–05
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Nonprofit Marketing
Bloom’s: Knowledge
c.
overhead.
d.
customer service.
e.
service marketing.
18. Which of the following is not a service product?
a.
b.
c.
d.
e.
c
Easy
MARK.PRID.16.13.01 – LO: 13–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: The Growth And Importance of Services
Bloom’s: Comprehension
19. Service industries account for ____ of the gross domestic product of most developed nations.
a.
more than half
b.
a small portion
c.
approximately 25 percent
d.
nearly all
e.
nearly three-quarters
e
Easy
MARK.PRID.16.13.01 – LO: 13–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: The Growth And Importance of Services
Bloom’s: Knowledge
20. Which of the following countries was the world’s first service economy?
a.
England
b.
United States
c.
Sweden
Moderate
MARK.PRID.16.13.01 – LO: 13–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: The Growth And Importance of Services
Bloom’s: Knowledge
d.
Canada
e.
Germany
21. Julianne is planning her upcoming wedding later this year. She has made a list of all the expenses which will be
required for the wedding she has planned. Which of the following is not one of the service products associated with
Julianne’s wedding?
a.
Delivery of the wedding cake
b.
Hiring a limo and driver
c.
Flowers for the church
d.
Renting the reception hall
e.
String quartet music
c
Moderate
MARK.PRID.16.13.01 – LO: 13–01
United States – BUSPROG: Analytic
A-Head: The Growth And Importance of Services
Bloom’s: Application
22. Zach has just opened Tri-State Partners and has the need for several business services from other companies. Which of
the following is most likely to be considered a service product for Zach’s business?
a.
Housecleaning
b.
Parking lot maintenance
c.
Computer software
d.
Coffeepot for employees
e.
Uniforms
Moderate
MARK.PRID.16.13.01 – LO: 13–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: The Growth And Importance of Services
Bloom’s: Application
23. According to your text, one perspective from which to view services is as a ____ targeted at a(n) ____.
a.
sporting event; spectators
Easy
MARK.PRID.16.13.01 – LO: 13–01
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: The Growth And Importance of Services
Bloom’s: Knowledge
b.
concert; audience
c.
play; actors
d.
performance; audience
e.
presentation; spectators
24. Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability,
client-based relationships, customer contact, and
a.
labor-intensiveness.
b.
orientation toward value.
c.
homogeneity.
d.
heterogeneity.
e.
specialization.
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Characteristics Of Services
Bloom’s: Knowledge
25. The intangibility aspect of a service means that
a.
there is a lack of perceived quality compared to a tangible good.
b.
unused capacity cannot be stockpiled or inventoried for later use.
c.
consumers may have a problem evaluating service offerings.
d.
services are not produced at the same time they are consumed.
e.
services are not labor-intensive.
c
Easy
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Characteristics Of Services
Bloom’s: Knowledge
26. The continuum of tangibility goes from ____ on one end to ____ on the other end.
a.
service-dominant products; good-dominant products
Moderate
MARK.PRID.16.13.01 – LO: 13–01
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: The Growth And Importance of Services
Bloom’s: Knowledge
b.
pure products; pure services
c.
rational products; irrational products
d.
mostly service goods; mostly product goods
e.
easy to see; not easy to see
27. Which of the following services falls closest to the middle of the tangibility continuum?
a.
College education
b.
Dinner at the Olive Garden
c.
A new Ford Escape
d.
A custom built yacht
e.
A trip to Brazil
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Characteristics Of Services
Bloom’s: Application
28. Because practically all marketers provide some services, ____ typically do not exist in today’s business environment.
a.
pure goods
b.
pure services
c.
customer services
d.
service products
e.
tangible-dominant products
a
Easy
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Characteristics Of Services
Bloom’s: Knowledge
29. Hair stylists find it challenging to standardize their service because the customer must be involved in production (i.e.,
the haircut). This illustrates which of the following unique features of services?
a.
Intangibility
a
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Characteristics Of Services
Bloom’s: Knowledge
b.
Inseparability
c.
Perishability
d.
Heterogeneity
e.
Homogeneity
30. Personal trainers cannot complete their work without their clients present because of the ____ feature of services.
a.
perishability
b.
intangibility
c.
inseparability
d.
heterogeneity
e.
tangibility
c
Easy
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Characteristics Of Services
Bloom’s: Application
31. Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to
schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jason’s difficulty in
expanding his practice involves the aspect of service called
a.
slotting.
b.
perishability.
c.
credence.
d.
inseparability.
e.
heterogeneity.
Challenging
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
Bloom’s: Application
32. All of the following are elements of the inseparability characteristic of services except that
Easy
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Characteristics Of Services
Bloom’s: Application
a.
consumers are involved in production.
b.
centralized mass production is difficult.
c.
consumption and production are simultaneous.
d.
many services cannot be performed without the customer being present.
e.
services are easy to standardize and control.
33. The fact the services cannot be inventoried and then sold at a later date is called
a.
intangibility.
b.
heterogeneity.
c.
inseparability.
d.
perishability.
e.
nonstorability.
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Characteristics Of Services
Bloom’s: Knowledge
34. Kate, owner of K’s Tanning Salon, looks at the day’s appointment schedule and notices that it is completely full. She
wishes some of the empty tanning beds from earlier in the week were available on this Saturday afternoon. Kate’s
problem deals with the ____ characteristic of services.
a.
credence
b.
heterogeneity
c.
perishability
d.
search
e.
inseparability
c
Challenging
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
A-Head: Characteristics Of Services
Bloom’s: Application
e
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Customer
A-Head: Characteristics Of Services
Bloom’s: Knowledge
35. Lashawna is a concert promoter who works for singer Kanye West. She works very hard to make sure most of
Kanye’s concerts are sold out because she understands the concept of perishability, which means
a.
because the concert is not tangible, customers will have a difficult time judging its quality in advance.
b.
the production of the concert and the consumption of the concert by the fans cannot be separated so tickets
must be sold.
c.
a high level of interaction will exist between the customers and the musicians, which makes the customers’
presence necessary.
d.
that if the tickets are not sold, 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.
36. The more ____ involved with delivering a service, the greater the degree of heterogeneity.
a.
mechanical efforts
b.
phone contact
c.
perishability
d.
tangibility
e.
human labor
e
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Characteristics Of Services
Bloom’s: Knowledge
37. Because of a service’s ____, standardization and quality are difficult to control.
a.
intangibility
b.
inseparability
c.
homogeneity
d.
heterogeneity
e.
perishability
Easy
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Characteristics Of Services
Challenging
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Promotion
A-Head: Characteristics Of Services
Bloom’s: Application
38. The fact that the first massage Gretchen 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
a
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Characteristics Of Services
Bloom’s: Application
39. Saresh owns the Change-ezz, a salon specializing in the unique hair needs of minority populations. Recently, Saresh
has been trying to improve the quality of service received by his customers. However, he has experienced difficulty in
finding ways to standardize and control the salon’s quality of service. Saresh’s problem illustrates which of the following
unique features of service?
a.
Intangibility
b.
Inseparability
c.
Perishability
d.
Heterogeneity
e.
Marketability
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Characteristics Of Services
Bloom’s: Application
40. What should marketers do to promote the consistency and reliability of their services most effectively?
a.
Limit the number of employees in their organization
b.
Train employees and develop standard procedures for dealing with customers
c.
Encourage employees to be creative in solving customer issues and complaints
d.
Perform as much of the service as possible before the customer arrives
e.
Require employees to be shining, happy people all day long
Moderate
MARK.PRID.16.13.02 – LO: 13–02
Bloom’s: Knowledge
41. H&R Block, a major tax preparation firm, reported having a problem with its employees being inconsistent in the
filing of returns. The firm is experiencing a problem with which of the following characteristics of the service offering?
a.
Tangibility
b.
Intangibility
c.
Perishability
d.
Inseparability
e.
Heterogeneity
e
Challenging
42. Services delivered through machinery such as computer kiosks, ATMs, and vending machines can reduce the ____
that comes from increased contact with human employees.
a.
intangibility
b.
perishability
c.
inseparability
d.
heterogeneity
e.
tangibility
Moderate
43. Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine
Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda’s recommendation
addresses which of the following service features?
a.
Heterogeneity
b.
Intangibility
c.
Perishability
d.
Inseparability
e.
Homogeneity
a
44. Many services base their success on building a group of satisfied customers who use their services on a regular basis
over long periods of time. This critical component of success is referred to as
a.
partnerships.
b.
repeated customer contact.
c.
inseparable clientele.
d.
long-term customers.
e.
client-based relationships.
e
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Characteristics Of Services
Bloom’s: Knowledge
45. The main characteristic of a ____ is that customers are satisfied to the point that they use a service repeatedly over a
period of time.
a.
service relationship
b.
professional marketer
c.
high-contact service
d.
heterogeneous service
e.
client-based relationship
e
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Characteristics Of Services
Bloom’s: Knowledge
46. Client-based relationships are least likely to be developed by
a.
appliance repairmen.
b.
accountants.
c.
beauticians.
d.
orthodontists.
e.
psychiatrists.
Challenging
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Characteristics Of Services
Bloom’s: Application
47. Carlos is speaking to his brother about the interaction he had today with one of his clients. Since he is referring to his
customer as a client, Carlos is most likely a(n)___.
a.
Funeral director
b.
House painter
c.
Masseur
d.
Dry cleaner
e.
Auto repairman
c
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Characteristics Of Services
Bloom’s: Application
48. Client-based relationships are most likely to be developed by
a.
funeral directors.
b.
electricians.
c.
installers.
d.
doctors.
e.
brick layers.
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Customer
A-Head: Characteristics Of Services
Bloom’s: Knowledge
49. When service companies change high-contact services into low-contact services, the
a.
service becomes more expensive to deliver.
b.
quality of the service declines.
c.
service becomes less personalized.
d.
time required to deliver the service increases.
e.
service becomes less standardized.
a
Easy
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Characteristics Of Services
Bloom’s: Comprehension
50. The necessary interaction between service provider and customer that allows a service to be delivered is called
a.
customer contact.
b.
service exchange.
c.
marketing.
d.
relationship marketing.
e.
service contact.
a
Easy
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Customer
A-Head: Characteristics Of Services
Bloom’s: Knowledge
51. Troy is a service provider for a low-contact type of service. Which of the services below is Troy most likely to
provide?
a.
Childcare
b.
Website design
c.
Health care
d.
Auto detailing
e.
Personal trainer
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Characteristics Of Services
Bloom’s: Application
52. Andrea has just opened a new service business called Paws n’ Claws, which provides dog grooming and doggie day
care. Andrea has done research about the role dogs play in today’s culture, particularly for those people who do not have
children. She knows that some of these people represent a target that is urban, professional, and who travel frequently.
Andrea’s business is likely to have a _____ and she will probably refer to the dog owners as ___.
a.
high level of tangibility; customers
b.
high level of inseparability; customers
c
Moderate
MARK.PRID.16.13.02 – LO: 13–02
United States – BUSPROG: Analytic
United States – AK – DISC: Customer
A-Head: Characteristics Of Services
Bloom’s: Knowledge