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Chapter 17—Marketing Channels for Services
MULTIPLE CHOICE
1. All of the following are services except:
a.
This class.
b.
A checking account.
c.
A Broadway musical.
d.
An oil change for a car.
e.
A book.
2. The service sector of the U.S. economy is approximately:
a.
The same size as the manufacturing sector.
b.
One-and-one-half times the size of the manufacturing sector.
c.
Three times as large as the manufacturing sector.
d.
Twice the size of the manufacturing sector.
e.
One-half the size of the manufacturing sector.
3. Services account for about __________ of the gross national product in the U.S.
a.
One-tenth
b.
One-quarter
c.
One-half
d.
Two-thirds
e.
Nine-tenths
4. Service sector firms employ more than __________ out of every five private sector workers in
the U.S.
a.
1
b.
2
c.
3
d.
4
e.
5
Marketing Channels for Services
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5. In terms of being in tune with customer demand and enhancing customer appeal, the
marketing of services is __________ the marketing of products.
a.
the same as
b.
much easier than
c.
much more difficult than
d.
entirely different than
e.
much more scientific than
6. The difference in approach and emphasis used to market services as opposed to tangible
goods will be evident in the firm’s:
a.
Product strategy.
b.
Price strategy.
c.
Promotion strategy.
d.
Distribution strategy.
e.
All of the above.
7. Priceline.com, Orbitz, and Hotwire are all examples of:
a.
Commercial travel agencies.
b.
Airline ticket services.
c.
Software companies.
d.
Internet-based travel services.
e.
Vacation planning firms.
8. Which of the following is not usually cited as a characteristic that distinguishes services from
products?
a.
Inseparability of services
b.
Difficulty of standardization of services
c.
Customer involvement in services
d.
Perishability of services
e.
Tangibility of services
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9.It is the __________ of services that makes them more difficult to differentiate from each other
than products.
a.
high cost
b.
uniformity
c.
inseparability
d.
intangibility
e.
standardization
10. Which of the following is not an example of services that are tied directly to the providers of
the service that is found in inseparability?
a.
Filling in a tooth
b.
Painting a house
c.
Auto manufacturers
d.
Completing an air flight
e.
Giving marital advice
11. Services and their providers are tied __________ products and their producers.
a.
as tightly as
b.
more tightly than
c.
somewhat less tightly than
d.
much less tightly than
e.
There is no general rule that can be applied here.
12. Generally services are:
a.
More difficult to standardize than products.
b.
Less difficult to standardize than products.
c.
Equally difficult to standardize as products.
d.
Highly standardized compared with products.
e.
Incapable of being standardized.
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13. Which of the following services would be the least difficult to standardize?
a.
Legal advice
b.
Psychiatric diagnosis
c.
Architectural design
d.
Automatic car wash
e.
Medical care
14. Franchises that include franchisee direction in such areas as marketing strategy, training,
merchandise management, and quality control are usually referred to as:
a.
Product franchises.
b.
Trademark franchises.
c.
Business format franchises.
d.
Quick franchises.
e.
Exclusive franchises.
15. According to the textbook, the retrenchment of Hyatt Legal Services was caused by:
a.
Fraud and corruption.
b.
Too many branches.
c.
A complex, confusing and cumbersome franchise contract.
d.
A large scale organization attempting to handle non-routine legal services.
e.
None of the above.
16. The involvement of customers in the production of services is usually:
a.
Totally absent.
b.
The same for product production.
c.
Much less than their involvement in product production.
d.
Greater than their involvement in product production.
e.
Requires input from customers at the development stage.
Marketing Channels 8e
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17. Which of the following is not an example of customer involvement in services?
a.
a couple delivering their income and expense records to a tax accountant
b.
a client stipulating her investment goals to a stock broker
c.
a customer requesting “no pickles” on his hamburger
d.
a customer choosing the red rather than the black motorcycle helmet
e.
a customer identifying flight times and days to an airline ticket agent
18. A concert is given for which 5,000 seats remain unsold. The impossibility of saving those
seats for sale at another time is related to which characteristic of services?
a.
Intangibility
b.
Inseparability
c.
Standardization
d.
Perishability
e.
Customer involvement
19. __________ means that services cannot be produced in advance or in anticipation of customer
needs.
a.
Inseparability
b.
Intangibility
c.
Standardization
d.
Perishability
e.
Involvement
20. The salvage value of unsold services is:
a.
Equivalent to the salvage value of products.
b.
Dependent upon the type of service.
c.
Dependent upon the accounting practices of the firm.
d.
Zero.
e.
The cost of labor to deliver the service.
Marketing Channels for Services
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21. Service retailers, as opposed to tangible goods retailers, need to recognize all of the following
except:
a.
Profit after labor costs replaces gross margin as a key financial measure.
b.
Personal selling often will be needed.
c.
Exact prices can be quoted to customers.
d.
Adjustment policies are needed since returns are not possible.
e.
Supervisors must be able to assess the quality of service that is provided to
customers.
22. All of the following are true for services as compared to goods except:
a.
Little or no inventories are required to offer services.
b.
Supervisions for services is more specialized.
c.
Emphasis on quality is greater.
d.
Service costs are more standardized; therefore, pricing is easier.
e.
Value is more difficult for consumers to determine.
23. A hotel chain talks about its great attention to detail in its ads, and in each room, it includes a
small sewing kit with extra shirt and blouse buttons. In this case, the hotel chain is an example
of:
a.
Charge more for its services.
b.
Tangibility of services
c.
Get customers involved in providing services.
d.
Separate out particular services.
e.
Entice new customers to make reservations.
24. At the point of contact with the service provider, the customer perceives the service and the
channel as being:
a.
Separated by space and time.
b.
Highly perishable.
c.
Highly personalized.
d.
Intangible.
e.
The same thing.
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25. The separability of a tangible product from its producer means that:
a.
The product itself can counteract poor distribution.
b.
Differentiating tangible products is straightforward.
c.
Pricing strategies are far easier than for services.
d.
Cost efficiencies are easier to achieve.
e.
Both products and services require high delivery standards.
26. Complete standardization of a service:
a.
Is an effective way to make services more tangible.
b.
Tends to decrease the perishability of the service.
c.
Is easier for consumer services than for industrial services.
d.
Is not possible.
e.
Is not recommended.
27. The problem of standardizing services is affected mostly by:
a.
The high costs involved.
b.
The diversity of services.
c.
The high degree of labor intensity.
d.
The perishability of services.
e.
Customer input.
28. Although standardization of services may be difficult to achieve, firms can attempt to:
a.
Achieve standardization through training of employees.
b.
Provide high levels of consistency.
c.
Rationalize why standardization is not achieved.
d.
Develop more franchises in order to achieve standardization.
e.
Ignore the impact of lack of standardization of service on customers.
29. Customer involvement in providing services is __________ in shoe shines and __________
for haircuts.
a.
low; high
b.
high; low
c.
about the same
d.
high; high
e.
low; low
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30. The principle that the channel should be designed to maximize the sale of a service during its
limited exposure to the target market is aimed at dealing with:
a.
The intangibility of services.
b.
The inseparability of services.
c.
The high cost of services.
d.
The perishability of services.
e.
The limited involvement of the customer.
31. Because services do not exist apart from the provider of services, the customer perceives the
service and the channel as being:
a.
Separated by space and time.
b.
Highly perishable.
c.
Highly personalized.
d.
Intangible.
e.
The same thing.
32. As a general rule, marketing channels for services tend to be __________ channels for
products.
a.
longer than
b.
shorter than
c.
about the same length as
d.
more intense than
e.
more selective than
33. Service providers, in effect, are:
a.
Manufacturers.
b.
Retailers.
c.
Manufacturers and retailers combined.
d.
Franchisors.
e.
Franchisors and franchisees combined.
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34. Most small independent service providers such as doctors, auto mechanics, and shoe repairers
use a __________ channel.
a.
franchise
b.
cooperative
c.
single intermediary
d.
independent retailer
e.
direct channel to consumers
35. Business format franchising often is used in the marketing of services for all of the following
reasons except:
a.
Provide scale economies.
b.
Harness entrepreneurial spirit.
c.
Help solve standardization problems.
d.
A close business relationship between franchisee and franchisor is unnecessary.
e.
Takes advantage of the drive and motivation associated with independently owned
businesses.
36. Compared to tangible products, services:
a.
Less often are customized.
b.
More often are customized.
c.
More often are customized in the industrial market but not in the consumer market.
d.
More often are customized in the consumer market but not in the industrial market.
e.
Have about the same occurrence of customization.
37. Providers of executive search, taxi, health care and other highly customized services:
a.
Must rely on repetitive processes.
b.
Can easily develop a channel design.
c.
Face increased difficulty in the designing and operating channels.
d.
Do not need to be as concerned with efficiency since they charge higher prices.
e.
Have a long channel design.
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38. Which of the following is not an example of services that can be highly customized?
L
legal services
b.
Fast food restaurants
c.
Surgery
d.
Real estate sales
e.
Hairstyles
39. Which of the following is not a flow that is necessary for many services to move through
marketing channels?
a.
Information
b.
Negotiation
c.
Product
d.
Promotion
e.
Knowledge