b.
search
c.
intangible
d.
credence
e.
assurance
95. As Stan and Anna Walicki meet with the account representative at Landmark Bank, they are shown a
sample of what their monthly statement will look like. Providing such sample documents allows
Landmark to add tangibility to which of the following service qualities?
a.
Experience
b.
Credence
c.
Search
d.
Perishability
e.
Inseparability
96. 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
97. 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.
98. 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
99. 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.
100. 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.
101. 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.
102. 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.
103. 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.
104. 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.
105. 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.
106. 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.
107. 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.
108. 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.
109. American Airlines runs a series of television commercials that show its personnel going out of their
way to help customers. In addition to consumers, an important secondary audience for these ads is
(are)
a.
the FAA.
b.
airline competitors.
c.
bus line customers.
d.
American Airlines employees.
e.
American Airlines shareholders.
110. 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.
111. 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
112. ____ 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
113. Which of the following issues is least important in nonprofit marketing?
a.
Distribution
b.
Exchange
c.
Profits
d.
Negotiation
e.
Persuasion
114. 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
115. 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.
116. 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
117. 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.
118. Children with muscular dystrophy who receive treatments developed through research programs
funded by MDA represent ____ for this charitable organization.
a.
target publics
b.
target population
c.
general publics
d.
focus groups
e.
client publics
119. Select the true statement regarding nonprofit marketing.
a.
Nonprofit marketing strategy should be developed to offer unrestricted alternatives and
distribution activities that help accomplish the organization’s goals.
b.
Segmentation techniques used to identify target markets in for-profit businesses are also
applicable to reaching nonprofit target markets.
c.
A nonprofit organization usually attempts to serve fewer market segments than a for-profit
organization.
d.
Selection of the target market is the only major strategy development task in nonprofit
marketing.
e.
The narrowest definition of price should be used in developing the marketing mix strategy.
120. 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.
121. 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
122. 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
123. 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
124. 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.
125. ____ 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
126. 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.”
127. 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
128. 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
129. 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
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.
130. 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
131. 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
132. 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
133. 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
TRUE/FALSE
134. Services are products that can be touched and felt.
135. The U.S. economy is the world’s first service economy.
136. Services can involve both human and mechanical efforts.
137. Most products possess a certain degree of intangibility.
138. Service industries account for less than 50 percent of the U.S. gross domestic product.
139. Goods can be defined in terms of their physical attributes, but services cannot because they are
intangible.
140. The education a student gets is an example of the intangibility of services.
141. Because services are intangible by nature, marketers should downplay the tangibles associated with a
particular service (such as facilities or employees).
142. Both production and consumption of services occur at the same time.
143. Because of inseparability of the consumption and production of services, customers are often present
when a service is produced.
144. Inseparability also means that customers expect a service to be provided in a certain way by a specific
person.
145. Services are highly perishable and cannot be inventoried for future use.
146. Because of service perishability, it is difficult to price services in a manner that smoothes fluctuations
in demand.
147. There is no way to combat the supply-demand problem associated with the perishability of services.
148. An advantage of heterogeneity is that services can be customized.
149. Because most services are people-based, they are susceptible to heterogeneity, or variation in demand
over time.
150. 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.
151. Client-based relationships are interactions that result in satisfied customers who repeatedly use a
service over time.
152. 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.
153. High-contact services are very expensive to deliver because they are equipment-intensive.
154. Training of employees is less important for high-contact services than it is for low-contact services.
155. Supplementary services are the basic services that a customer expects to receive.
156. 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.
157. Intangible cues are used to provide customers with some assurance of service quality.
158. When a customer takes part in the production of a service, other customers can affect the outcome of
the service.
159. Distribution of services is often more direct, even if the customer must go to the service provider’s
facilities.
160. 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.
161. Due to increased customers’ desires for personalization, service providers are using bigger sales forces.
162. Advertisements for services use tangible cues to help customers understand the intangible attributes
associated with a particular service.
163. 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.
164. 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.
165. Demand-based pricing relies on information concerning peak demand times and off-peak demand
times.
166. Demand-based pricing means lower prices during times of lower demand and higher prices during
times of higher demand.
167. Customers seldom rely on the price-quality associations.
168. The intangible nature of services often leads customers to use prices as a measuring tool for quality.
169. 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.
170. State and local government regulations do not affect the pricing of services.
171. Government has no control over service prices charged.
172. Service quality is defined as the company’s perception of how well a service meets or exceeds
customer expectations.
173. Customers are the ultimate judges of good service quality.
174. Service quality is defined by compliance with a set of specifications.
175. Service providers must adjust their behavior to buyer expectations to improve quality.
176. Tangible attributes such as color, style, size, feel, or fit that can be evaluated prior to purchase are
known as search qualities.
177. Credence qualities are attributes, such as taste, satisfaction, or pleasure, which can be assessed only
during the purchase and consumption of a service.
178. Attributes that customers may be unable to evaluate even after the purchase and consumption of the
service are called experience qualities.
179. Consumers tend to believe company-sponsored advertising more than word-of-mouth communication
when gathering information on a service product.
180. One of the best ways to better understand customer needs and expectations is to ask contact
employees.
181. Customer-oriented measures of employee performance may be a better basis of evaluation and
rewards.
182. Although nonprofit goals differ from for-profit goals, certain business marketing concepts can be
adopted to enhance nonprofit operations.
183. Marketing approaches used by organizations in the for-profit sector are equally applicable to
individuals and organizations in the nonprofit sector.
184. Marketing attempts only to provide a body of knowledge and concepts to help further an organization’s
goals.
185. A nonprofit organization may exist in an environment in which its goals are opposed by some
members of society.
186. Marketing as a field of study does not attempt to make value judgments about what a nonprofit
organization’s goals should be.
187. A church’s marketing objective could be to inform the public about its doctrine and convince people to
become members.
188. Selecting a marketing mix is the first step in developing any nonprofit marketing strategy.
189. Pinpointing a target market should be done only after the selection of a marketing mix.
190. Nonprofit organizations that do not serve and adapt to the needs and wants of their target public may
fail.
191. Nonprofit organizations usually have more diverse groups to serve than do for-profit organizations.
192. Segmentation concepts and techniques used to segment and identify target markets are not applicable
to reaching nonprofit target markets.
193. 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.
194. The nonprofit organization does not need to develop a strategy for each of the marketing mix variables
of product price, distribution, and promotion.
195. The marketing mix strategy of a nonprofit organization should be developed to restrict alternatives.
196. In a nonprofit organization, the direct consumers of the product are called donor publics and indirect
consumers are called client publics.
197. Nonprofit organizations deal with ideas and services more often than with goods.
198. Selecting a convenient location is important to the distribution of a nonprofit service.
199. Personal selling is one noticeable marketing activity used to gain acceptance of a social idea or to
solicit donations.
200. Sales promotion activities of a nonprofit organization may consist of special events such as fund–
raising campaigns, telethons, contests, and entertainment.
201. Financial price⎯an exact dollar amount⎯may or may not be charged for a nonprofit product.
202. The concept of opportunity cost is important in determining the price paid by an individual for a
nonprofit product.