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152. Demand-based pricing relies on information concerning peak demand times and off-peak demand times.
a.
True
b.
False
153. Demand-based pricing means lower prices during times of lower demand and higher prices during times of higher
demand.
a.
True
b.
False
154. Customers seldom rely on the price-quality associations.
a.
True
b.
False
155. The intangible nature of services often leads customers to use prices as a measuring tool for quality.
a.
True
b.
False
156. Balancing the supply and demand of services can be done by keeping service prices the same regardless of the time
of day, week, or year.
a.
True
b.
False
157. State and local government regulations do not affect the pricing of services.
a.
True
b.
False
158. Government has no control over service prices charged.
a.
True
b.
False
159. Service quality is defined as the company's perception of how well a service meets or exceeds customer expectations.
a.
True
b.
False
160. Customers are the ultimate judges of good service quality.
a.
True
b.
False
161. Service quality is defined by compliance with a set of specifications.
a.
True
b.
False
162. Tangible attributes such as color, style, size, feel, or fit that can be evaluated prior to purchase are known as search
qualities.
a.
True
b.
False
163. Credence qualities are attributes, such as taste, satisfaction, or pleasure, which can be assessed only during the
purchase and consumption of a service.
a.
True
b.
False
164. Attributes that customers may be unable to evaluate even after the purchase and consumption of the service are
called experience qualities.
a.
True
b.
False
165. Consumers tend to believe company-sponsored advertising more than word-of-mouth communication when
gathering information on a service product.
a.
True
b.
False
166. One of the best ways to better understand customer needs and expectations is to ask contact employees.
a.
True
b.
False
167. Customer-oriented measures of employee performance may be a better basis of evaluation and rewards.
a.
True
b.
False
168. Although nonprofit goals differ from for-profit goals, certain business marketing concepts can be adopted to enhance
nonprofit operations.
a.
True
b.
False
169. Marketing approaches used by organizations in the for-profit sector are equally applicable to individuals and
organizations in the nonprofit sector.
a.
True
b.
False
170. Marketing attempts only to provide a body of knowledge and concepts to help further an organization's goals.
a.
True
b.
False
171. A nonprofit organization may exist in an environment in which its goals are opposed by some members of society.
a.
True
b.
False
172. Marketing as a field of study does not attempt to make value judgments about what a nonprofit organization's goals
should be.
a.
True
b.
False
173. A church's marketing objective could be to inform the public about its doctrine and convince people to become
members.
a.
True
b.
False
174. Selecting a marketing mix is the first step in developing any nonprofit marketing strategy.
a.
True
b.
False
175. Pinpointing a target market should be done only after the selection of a marketing mix.
a.
True
b.
False
176. Nonprofit organizations that do not serve and adapt to the needs and wants of their target public may fail.
a.
True
b.
False
177. Nonprofit organizations usually have more diverse groups to serve than do for-profit organizations.
a.
True
b.
False
178. The response that a nonprofit organization desires from its target market or public may be a change in values,
financial contributions, or the donation of services.
a.
True
b.
False
179. The nonprofit organization does not need to develop a strategy for each of the marketing mix variables of product
price, distribution, and promotion.
a.
True
b.
False
180. In a nonprofit organization, the direct consumers of the product are called donor publics and indirect consumers are
called client publics.
a.
True
b.
False
181. Nonprofit organizations deal with ideas and services more often than with goods.
a.
True
b.
False
182. Selecting a convenient location is important to the distribution of a nonprofit service.
a.
True
b.
False
183. Personal selling is one noticeable marketing activity used to gain acceptance of a social idea or to solicit donations.
a.
True
b.
False
184. Sales promotion activities of a nonprofit organization may consist of special events such as fund-raising campaigns,
telethons, contests, and entertainment.
a.
True
b.
False
185. Financial price⎯an exact dollar amount⎯may or may not be charged for a nonprofit product.
a.
True
b.
False
186. The concept of opportunity cost is important in determining the price paid by an individual for a nonprofit product.
a.
True
b.
False
187. You are contemplating starting a services business in the next few months. You are inclined to start a services
business because you know that the U.S. economy is rapidly becoming a services-based economy. You have the expertise
to focus on either business services or consumer services. Which of the following statements is true about business and
consumer services?
a.
Demand for consumer services has grown more rapidly than for business services.
b.
Demand for consumer services and business services are growing by approximately the same rate.
c.
Demand for consumer services is expected to surpass the demand for business services over the next 10 years.
d.
Demand for both consumer services and business services are expected to decline over the next 10 years.
e.
Demand for business services has grown more rapidly than for consumer services.
188. You are considering hiring an outside consultant to help you improve your services business. You believe your most
pressing issue is how to maintain consistent quality in the delivery of your services. Your customer surveys suggest you
need to work on this very important issue. Based on this, you should be looking for a consultant who has experience in
dealing with the _______________ issue related to services.
a.
inseparability
b.
perishability
c.
heterogeneity
d.
intangibility
e.
customer relationship
189. As the owner of a services business, you are constantly challenged to maintain consistent quality in your services.
This heterogeneity is both a challenge and an opportunity. The opportunity arises because __________________.
a.
it allows you to standardize your services
b.
it allows you to customize your services to match the specific needs of individual customers
c.
it allows you to be more selective in choosing your customers
d.
it allows you to deliver your services for less cost
e.
it leads to more satisfied customers
190. You run a services business and you are constantly looking for ways to project an image of quality to your current
and potential customers. You recognize there are very few tangible elements customers can view before making a services
purchase. If you want to improve these elements of your business, then you should focus on improving
_________________.
a.
the search qualities of your services
b.
the experience qualities of your services
c.
the credence qualities of your services
d.
your facilities and your employees
e.
your prices and promotional activities
191. You recently began working as the marketing director for a nonprofit organization. Prior to this role, you always
worked in for-profit organizations. You immediately recognize that marketing in a nonprofit environment is dramatically
different than marketing in a for-profit environment. Which of the following statements is true regarding the differences in
marketing in a nonprofit versus a for-profit environment?
a.
Nonprofit organizations usually deal more with ideas and services than with goods.
b.
Pricing strategies of nonprofit organizations are designed to match costs with revenues.
c.
Distribution decisions are the same in both types of organizations.
d.
Marketing ideas and concepts are more abstract in for-profit organizations.
e.
For-profit marketing offers greater opportunities for creativity than nonprofit marketing.
192. The U.S. economy is now referred to as a(n)____________.
a.
export economy
b.
skilled economy
c.
manufacturing economy
d.
speculative economy
e.
service economy
193. Services ____________ factors for the customer to evaluate as compared to goods.
a.
have the same number of
b.
have more
c.
have fewer
d.
more physical
e.
fewer intangible
194. The perishability of services means
a.
when demand is low, the unused capacity is lost forever
b.
when demand is low, the unused capacity can be stored
c.
when demand is low, the unused capacity can be recovered the next day
d.
when demand is low, the unused capacity must be immediately used
e.
when demand is low, the unused capacity should be re-directed
195. Consumers are ________________likely to tell other people about a bad customer service experience compared to a
good one.
a.
equally
b.
two times less
c.
three times more
d.
two times more
e.
three times less
