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111. Which is the most typical distribution channel used in nonprofit organizations?
a.
Nonprofit organization, intermediary, client
b.
Nonprofit organization, client
c.
Nonprofit organization, middleman, client
d.
Nonprofit organization, government, client
e.
Government, nonprofit organization, client
112. Distribution for nonprofit organizations is
a.
unimportant because physical movement does not take place.
b.
not an important decision.
c.
coordinated by middlemen.
d.
inefficient rather than efficient.
e.
typically characterized by short channels.
113. ____ is the value of the benefit that is given up by selecting one alternative rather than another.
a.
Benefit loss
b.
Opportunity cost
c.
Privileged cost
d.
Selection cost
e.
Exchange loss
114. Scenario 13.1
Use the following to answer the questions.
The YMCA in mid-town Atlanta has recently upgraded its facilities, including building a new Olympic-sized swimming
pool and children's playground. All locations of the Atlanta "Y" are open from 6:00 am until 11:00 pm, 360 days a year.
The children's playground is accessible for members only, and is a fenced and secured area. During the weekdays,
children under the age of 12 can engage in supervised activities at the playground, for no extra fee. Additionally, there are
swimming classes for children of all ages, which is also covered by the monthly membership fee. The swimming pool has
been very popular with the professionals who stop by for a swimming workout before or after work.
Many of the YMCA locations are very busy all day, however, the midtown "Y" is busier during the early morning and
early evenings. At a recent meeting, Maya Sinclair, its manager, shared her concerns about getting more people into the
"Y" at other times of the day. She asked for ideas from her staff about how to do this. She also said that the city of Atlanta
had reduced the "Y"'s funding for the next year by 20%. This would cause a need for the "Y" to either gain additional
members or charge more per member for the annual fee.
Refer to Scenario 13.1. One of Maya’s staff suggested that they offer senior citizens a free month of membership for
every person they recommended to the “Y.” This particular form of promotion would be designed to
a.
increase perceptions of quality.
b.
increase positive word-of-mouth communication.
c.
increase negative word-of-mouth communication.
d.
increase advertising effectiveness.
e.
increase the customer contact associated with the “Y.”
115. Scenario 13.1
Use the following to answer the questions.
The YMCA in mid-town Atlanta has recently upgraded its facilities, including building a new Olympic-sized swimming
pool and children's playground. All locations of the Atlanta "Y" are open from 6:00 am until 11:00 pm, 360 days a year.
The children's playground is accessible for members only, and is a fenced and secured area. During the weekdays,
children under the age of 12 can engage in supervised activities at the playground, for no extra fee. Additionally, there are
swimming classes for children of all ages, which is also covered by the monthly membership fee. The swimming pool has
been very popular with the professionals who stop by for a swimming workout before or after work.
Many of the YMCA locations are very busy all day, however, the midtown "Y" is busier during the early morning and
early evenings. At a recent meeting, Maya Sinclair, its manager, shared her concerns about getting more people into the
"Y" at other times of the day. She asked for ideas from her staff about how to do this. She also said that the city of Atlanta
had reduced the "Y"'s funding for the next year by 20%. This would cause a need for the "Y" to either gain additional
members or charge more per member for the annual fee.
Refer to Scenario 13.1. The fact that the "Y" is open from 6:00 am until 11:00 pm refers to the ____ element of its
marketing mix.
a.
promotional
b.
product
c.
price
d.
distribution
e.
service
116. Scenario 13.1
Use the following to answer the questions.
The YMCA in mid-town Atlanta has recently upgraded its facilities, including building a new Olympic-sized swimming
pool and children's playground. All locations of the Atlanta "Y" are open from 6:00 am until 11:00 pm, 360 days a year.
The children's playground is accessible for members only, and is a fenced and secured area. During the weekdays,
children under the age of 12 can engage in supervised activities at the playground, for no extra fee. Additionally, there are
swimming classes for children of all ages, which is also covered by the monthly membership fee. The swimming pool has
been very popular with the professionals who stop by for a swimming workout before or after work.
Many of the YMCA locations are very busy all day, however, the midtown "Y" is busier during the early morning and
early evenings. At a recent meeting, Maya Sinclair, its manager, shared her concerns about getting more people into the
"Y" at other times of the day. She asked for ideas from her staff about how to do this. She also said that the city of Atlanta
had reduced the "Y"'s funding for the next year by 20%. This would cause a need for the "Y" to either gain additional
members or charge more per member for the annual fee.
Refer to Scenario 13.1. The children who take swimming lessons must be in attendance at the pool during the time of their
appointment. The need for the child to be in attendance in order to receive the lesson is an example of the ____ feature of
a service, while the need for them to be there at the time of their appointment, represents the ____ feature.
a.
inseparability; heterogeneity
b.
heterogeneity; perishability
c.
inseparability; perishability
d.
intangibility; perishability
e.
intangibility; inseparability
117. Scenario 13.1
Use the following to answer the questions.
The YMCA in mid-town Atlanta has recently upgraded its facilities, including building a new Olympic-sized swimming
pool and children's playground. All locations of the Atlanta "Y" are open from 6:00 am until 11:00 pm, 360 days a year.
The children's playground is accessible for members only, and is a fenced and secured area. During the weekdays,
children under the age of 12 can engage in supervised activities at the playground, for no extra fee. Additionally, there are
swimming classes for children of all ages, which is also covered by the monthly membership fee. The swimming pool has
been very popular with the professionals who stop by for a swimming workout before or after work.
Many of the YMCA locations are very busy all day, however, the midtown "Y" is busier during the early morning and
early evenings. At a recent meeting, Maya Sinclair, its manager, shared her concerns about getting more people into the
"Y" at other times of the day. She asked for ideas from her staff about how to do this. She also said that the city of Atlanta
had reduced the "Y"'s funding for the next year by 20%. This would cause a need for the "Y" to either gain additional
members or charge more per member for the annual fee.
Refer to Scenario 13.1. Martin, one of the staff members at the YMCA, suggested that the "Y" offer discounted
memberships to senior citizens over the age of 65; however, they could only use the facility between the hours of 9:00 am
and 4:00 pm. Martin's plan is most likely addressing the issue with ____, and relates to the ____ characteristic of services.
a.
peak demand; intangibility
b.
off-peak demand; perishability
c.
off-peak demand; heterogeneity
d.
demand-based pricing; heterogeneity
e.
preferred demand; perishability
118. Scenario 13.2
Use the following to answer the questions.
Kaycee Petit needed to find a new company to prepare her tax return this year. Kaycee looked in the yellow pages of the
phone book, and went on the Internet to find information about any tax preparers in the area. She found the names and
numbers of several accountants, as well as the popular HR Block and Jackson Hewitt. Since Kaycee had a somewhat
complicated financial situation, she decided on using an accountant rather than the two popular companies. Kaycee found
the websites of three of the accountants, but the other two were not on the Internet. She visited the offices of the three
accounts who had websites. The first office was in a somewhat "seedy" part of town, but had a nice interior and a
receptionist. The second office was in a nicer part of town, but did not have any employees other than the accountant, and
had old furniture and old carpet. The third office was all around in better condition and Kaycee felt better about its
accountant, so she decided on him.
Refer to Scenario 13.2. The accountant who Kaycee chose to prepare her taxes will most likely require her to schedule an
appointment due to the ____ characteristic of the service. If Kaycee schedules an appointment during the month of
February, the accountant will
most likely use ____ when charging for the service.
a.
inseparability; time-based pricing
b.
inseparability; off-peak demand pricing
c.
perishability; bundled pricing
d.
perishability; demand-based pricing
e.
intangibility; demand-based pricing
119. Scenario 13.2
Use the following to answer the questions.
Kaycee Petit needed to find a new company to prepare her tax return this year. Kaycee looked in the yellow pages of the
phone book, and went on the Internet to find information about any tax preparers in the area. She found the names and
numbers of several accountants, as well as the popular HR Block and Jackson Hewitt. Since Kaycee had a somewhat
complicated financial situation, she decided on using an accountant rather than the two popular companies. Kaycee found
the websites of three of the accountants, but the other two were not on the Internet. She visited the offices of the three
accounts who had websites. The first office was in a somewhat "seedy" part of town, but had a nice interior and a
receptionist. The second office was in a nicer part of town, but did not have any employees other than the accountant, and
had old furniture and old carpet. The third office was all around in better condition and Kaycee felt better about its
accountant, so she decided on him.
Refer to Scenario 13.2. When Kaycee visited the accountants' offices and used the look of the surroundings, as well as the
office furniture condition in her evaluation of the service business, she was most likely using the elements of the ____
dimension of service quality.
a.
tangibles
b.
reliability
c.
empathy
d.
assurance
e.
responsiveness
120. Scenario 13.2
Use the following to answer the questions.
Kaycee Petit needed to find a new company to prepare her tax return this year. Kaycee looked in the yellow pages of the
phone book, and went on the Internet to find information about any tax preparers in the area. She found the names and
numbers of several accountants, as well as the popular HR Block and Jackson Hewitt. Since Kaycee had a somewhat
complicated financial situation, she decided on using an accountant rather than the two popular companies. Kaycee found
the websites of three of the accountants, but the other two were not on the Internet. She visited the offices of the three
accounts who had websites. The first office was in a somewhat "seedy" part of town, but had a nice interior and a
receptionist. The second office was in a nicer part of town, but did not have any employees other than the accountant, and
had old furniture and old carpet. The third office was all around in better condition and Kaycee felt better about its
accountant, so she decided on him.
Refer to Scenario 13.2. When using an accountant to prepare her tax return, Kaycee really can't determine the level of the
accountant's expertise, or whether the accountant actually determined the absolute highest dollar amount Kaycee could
have legally received. This is an example of the ____ of a service.
a.
search qualities
b.
product qualities
c.
service quality
d.
credence qualities
e.
experience qualities
121. Scenario 13.2
Use the following to answer the questions.
Kaycee Petit needed to find a new company to prepare her tax return this year. Kaycee looked in the yellow pages of the
phone book, and went on the Internet to find information about any tax preparers in the area. She found the names and
numbers of several accountants, as well as the popular HR Block and Jackson Hewitt. Since Kaycee had a somewhat
complicated financial situation, she decided on using an accountant rather than the two popular companies. Kaycee found
the websites of three of the accountants, but the other two were not on the Internet. She visited the offices of the three
accounts who had websites. The first office was in a somewhat "seedy" part of town, but had a nice interior and a
receptionist. The second office was in a nicer part of town, but did not have any employees other than the accountant, and
had old furniture and old carpet. The third office was all around in better condition and Kaycee felt better about its
accountant, so she decided on him.
Refer to Scenario 13.2. When Kaycee looked in the yellow pages and on the Internet for information on the accountants in
the area, she was most likely using ____ qualities to evaluate the accountant service.
a.
credence
b.
search
c.
product
d.
service quality
e.
assurance
122. Services are products that can be touched and felt.
a.
True
b.
False
123. The U.S. economy is the world's first service economy.
a.
True
b.
False
124. Services can involve both human and mechanical efforts.
a.
True
b.
False
125. Most products possess a certain degree of intangibility.
a.
True
b.
False
126. Service industries account for less than 50 percent of the U.S. gross domestic product.
a.
True
b.
False
127. Goods can be defined in terms of their physical attributes, but services cannot because they are intangible.
a.
True
b.
False
128. The education a student gets is an example of the intangibility of services.
a.
True
b.
False
129. Because services are intangible by nature, marketers should downplay the tangibles associated with a particular
service (such as facilities or employees).
a.
True
b.
False
130. Both production and consumption of services occur at the same time.
a.
True
b.
False
131. Because of inseparability of the consumption and production of services, customers are often present when a service
is produced.
a.
True
b.
False
132. Inseparability also means that customers expect a service to be provided in a certain way by a specific person.
a.
True
b.
False
133. Services are highly perishable and cannot be inventoried for future use.
a.
True
b.
False
134. Because of service perishability, it is difficult to price services in a manner that smoothes fluctuations in demand.
a.
True
b.
False
135. There is no way to combat the supply-demand problem associated with the perishability of services.
a.
True
b.
False
136. An advantage of heterogeneity is that services can be customized.
a.
True
b.
False
137. Because most services are people-based, they are susceptible to heterogeneity, or variation in demand over time.
a.
True
b.
False
138. A hairstylist that gives good haircuts in the morning but tends to give haircuts of lesser quality in the afternoon is
suffering from the challenges associated with intangibility.
a.
True
b.
False
139. Client-based relationships are interactions that result in satisfied customers who repeatedly use a service over time.
a.
True
b.
False
140. The goal of building client-based relationships is to satisfy customers so well that they become very loyal and would
be unlikely to switch to competitors.
a.
True
b.
False
141. High-contact services are very expensive to deliver because they are equipment-intensive.
a.
True
b.
False
142. Training of employees is less important for high-contact services than it is for low-contact services.
a.
True
b.
False
143. Supplementary services are the basic services that a customer expects to receive.
a.
True
b.
False
144. The ability to customize services to match the specific needs of individual customers is an advantage to service
marketers and may lead to standardized packages.
a.
True
b.
False
145. Intangible cues are used to provide customers with some assurance of service quality.
a.
True
b.
False
146. When a customer takes part in the production of a service, other customers can affect the outcome of the service.
a.
True
b.
False
147. Distribution of services is often more direct, even if the customer must go to the service provider's facilities.
a.
True
b.
False
148. Intangibility of services creates promotional challenges because it is difficult to display a service in a store and to
demonstrate the quality of a service.
a.
True
b.
False
149. Advertisements for services use tangible cues to help customers understand the intangible attributes associated with a
particular service.
a.
True
b.
False
150. Using promotional efforts that encourage the trial use of some services can be an effective way for customers to
assess the quality of the offered service.
a.
True
b.
False
151. Service providers offering discounts to current customers who refer new customers to them are using existing
customers as a part of their service promotion strategies.
a.
True
b.
False
