Full Test Bank Ch.12 Services Marketing Hartley - Answer Key + Test Bank | Marketing 13th Edition by Kerin and Hartley by Roger A. Kerin, Steven W. Hartley. DOCX document preview.

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Full Test Bank Ch.12 Services Marketing Hartley

Chapter 12

Services Marketing

 


Multiple Choice Questions
 

1.

The new sharing economy consists of all of the following except 
 

A. 

outsourcing small jobs in a local neighborhood.

B. 

renting tools at Home Depot so users don't have to purchase them.

C. 

renting spaces in apartments, homes, and tree houses for short stays.

D. 

peer-to-peer ride-sharing.

E. 

performing services that provide users with an engaging, unique, authentic, personal, and memorable experience.

 

2.

Which generational cohort appreciates the opportunity to engage in collaborative consumption, also known as peer-to-peer sharing or the sharing economy? 
 

A. 

Generation Y

B. 

millennials

C. 

baby boomers

D. 

Generation Z

E. 

Generation X

 

3.

Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value are referred to as 
 

A. 

services.

B. 

goods.

C. 

products.

D. 

marketing mix.

E. 

ideas.

 

4.

The term services refers to 
 

A. 

ideas that consist of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

B. 

intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

C. 

philanthropic activities performed without expectations of monetary remuneration.

D. 

any intangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.

E. 

any tangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.

 

5.

Services are 
 

A. 

the tangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

B. 

the activities provided to complement a tangible good, such as technical support for a computer.

C. 

any activity required for the production of a good that cannot be completed in-house and must be outsourced to another firm.

D. 

the human (nonmechanical) component that is part of the manufacturing process.

E. 

the intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

 

6.

Intangible items such as airline trips, financial advice, or telephone calls that an organization provides to consumers are referred to as 
 

A. 

production goods.

B. 

support products.

C. 

services.

D. 

goods.

E. 

benefits.

 

7.

Services are a significant part of the U.S. economy, exceeding __________ percent of its gross domestic product. 
 

A. 

15

B. 

25

C. 

35

D. 

46

E. 

55

 

8.

Which of the following is considered a service? 
 

A. 

a marketing class

B. 

lamp

C. 

motorcycle

D. 

potato chips

E. 

environmentalism

 

9.

Which of the following statements about services is most accurate? 
 

A. 

Although a major contributor to the GDP nationally, services play only a minor role in GDP on a global scale.

B. 

Whether tangible or intangible, the marketing of services is exactly the same as the marketing of products or ideas since they both satisfy customer needs.

C. 

Almost 65 percent of all jobs created in the United States are in the services sector.

D. 

In the United States, more than 46 percent of the GDP comes from services.

E. 

There is much more in common with the marketing of services and business products than there is between the marketing of services and consumer products.

 

10.

Which of the following statements about services is most accurate? 
 

A. 

Whether tangible or intangible, the marketing of services is exactly the same as the marketing of products or ideas since they both satisfy customer needs.

B. 

Although a major contributor to GDP nationally, services play only a minor role in GDP on a global scale.

C. 

Exports of services is one of the few areas in which the United States has a trade surplus.

D. 

Very few jobs in the United States are in the services sector.

E. 

There is much more in common with the marketing of services and business products than there is between the marketing of services and consumer products.

 

11.

Services are now a larger part of the U.S. gross domestic product (GDP) than goods. The growth of the service sector is the result of 
 

A. 

changes in the service mix and the decline in goods production.

B. 

goods representing a larger part of the gross domestic product than services.

C. 

changes in the way service consumers make purchase decisions and the ways in which the marketing mix is used for services.

D. 

increased demand for services that have been available in the past and the increasing interest in new services.

E. 

the imbalance between exported merchandise and commercial services.

 

12.

There are four unique elements to services—intangibility, inconsistency, inseparability, and inventory—which are referred to as the 
 

A. 

service mix.

B. 

four I's of services.

C. 

service matrix.

D. 

four Ps of services.

E. 

service continuum.

 

13.

The four I's of services consist of 
 

A. 

intangibility, inconsistency, inseparability, and innovation.

B. 

intangibility, inventory, inflexibility, and impression.

C. 

intangibility, inconsistency, inseparability, and inventory.

D. 

intangibility, inventory, innovation, and impression.

E. 

intangibility, inconsistency, innovation, and impression.

 

14.

The intangibility element of a service refers to the fact that it 
 

A. 

has value that can only be determined by using subjective criteria.

B. 

can't be held, seen, or touched before the purchase decision.

C. 

requires the ability to provide the service even in times of no demand.

D. 

can maintain or accumulate good will with customers.

E. 

can be objectively evaluated.

 

15.

Because services tend to be __________ rather than an object, they are much more difficult for consumers to evaluate. 
 

A. 

an opportunity

B. 

a good

C. 

a risk

D. 

a decision

E. 

a performance

 

16.

To help consumers ____________, marketers try to make them tangible or show the benefits of using the service. 
 

A. 

assess and compare services

B. 

reduce inconsistency

C. 

increase interaction with service providers

D. 

appreciate the flexibility of services

E. 

understand the interdependence of services

 

17.

To help consumers assess and compare services, marketers try to make them __________ or show the benefits of using the service. 
 

A. 

intangible

B. 

consistent

C. 

tangible

D. 

timely

E. 

measurable

 

18.

To help consumers assess and compare services, marketers try to make them tangible or 
 

A. 

temporal.

B. 

consistent.

C. 

adaptable.

D. 

measurable.

E. 

show the benefits of using the service.

 

19.

Consumers have more difficulty evaluating services than they do products; the difficulty results from the 
 

A. 

intangibility of services.

B. 

incongruity of services.

C. 

inseparability of services.

D. 

inflexibility of services.

E. 

interdependence of services.

 

20.

An American Airlines ad shows the airline's new seats and emphasizes their size and other benefits, to overcome the __________ of its service. 
 

A. 

incongruity

B. 

inconsistency

C. 

inventory costs

D. 

inseparability

E. 

intangibility

 

21.

Sarah has a backache due to overexertion. She believes a massage would loosen her back muscles and help her feel better. She is concerned because a massage, unlike a pair of shoes, cannot be experienced or seen before she buys it. Which characteristic of services is she concerned about? 
 

A. 

incongruity

B. 

inconsistency

C. 

intangibility

D. 

inventory costs

E. 

inseparability

 

22.

Before moving out of their apartment, Kelly and Doug decided to have their carpets cleaned by Stanley Steemer, a company specializing in professional carpet cleaning. The carpet cleaners arrived on time, cleaned the carpets, and drove away in their bright yellow van; only then did the couple see that they did a good job. Kelly and Doug were unable to judge the service before they bought it, which illustrates the __________ of services. 
 

A. 

inconsistency

B. 

inseparability

C. 

inventory costs

D. 

intangibility

E. 

interdependence

 

23.

To help consumers assess and compare its airline service, Frontier Airlines uses personable animal characters in its advertising to announce and describe benefits, such as leather seats and "stretch" seating, to help deal with the 
 

A. 

incongruity of the service.

B. 

inseparability of the service.

C. 

intangibility of the service.

D. 

inflexibility of the service.

E. 

interdependence of the service.

 

24.

The brochure for Spa Sydell has photographs of people enjoying the various spa amenities. By seeing the pictures of available treatments at the spa, a customer has a better idea of what she is buying. Spa Sydell uses a brochure to help customers deal with the __________ that is associated with using the service. 
 

A. 

incongruity

B. 

inconsistency

C. 

inventory costs

D. 

inseparability

E. 

intangibility

 

25.

Developing, pricing, promoting, and delivering services is challenging because the quality of a service is often 
 

A. 

inseparable.

B. 

inconsistent.

C. 

inventoried.

D. 

tied to a product.

E. 

independent of the quality delivered.

 

26.

Services depend on the people who provide them. As a result, their quality varies with each person's capabilities and day-to-day job performance. This element of services is referred to as 
 

A. 

incongruity.

B. 

differentiation.

C. 

variation.

D. 

inconsistency.

E. 

intangibility.

 

27.

Developing, pricing, promoting, and delivering services is challenging because the quality of the service is often inconsistent. Organizations attempt to reduce this inconsistency by 
 

A. 

paying higher incentives to employees to encourage satisfactory performance.

B. 

reducing incentives available to employees because of poor performance.

C. 

reducing the customer contact points in the service delivery process.

D. 

providing standardization and training.

E. 

exercising better hiring practices.

 

28.

Inconsistency of services refers to the fact that 
 

A. 

there is no regulation of service industries in terms of basic standards of quality.

B. 

the quality of service provided by a firm is often inconsistent with its image.

C. 

the performance of one employee may vary from the performance of another employee even though the same firm employs both.

D. 

training and standardization of service delivery procedures cannot be accomplished.

E. 

services have a varying degree of durability.

 

29.

Organizations attempt to reduce the inconsistency of service delivery through 
 

A. 

higher incentives to employees for satisfactory performance.

B. 

pay reductions and demotions for poor employee performance.

C. 

the reduction of customer contact points in the service delivery process.

D. 

standardization and training.

E. 

employing technology.

 

30.

The Philadelphia Phillies baseball team may have great hitting and pitching one day, and lose by 10 runs the next day. This is an example of a service being 
 

A. 

inseparable.

B. 

inconsistent.

C. 

inventoried.

D. 

tied to a product.

E. 

independent of the quality delivered.

 

31.

A local band performed on campus during a pre-graduation party. The students enjoyed the performance, and some of them were interested enough to buy tickets to see another show at a club downtown. But when they went to that concert, the quality of the performance was much poorer than they had heard and seen on campus. The students' disappointment was the direct result of which characteristic of services? 
 

A. 

inconsistency

B. 

impressionability

C. 

intangibility

D. 

invisibility

E. 

uniqueness of the service

 

32.

Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services, such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office, for people who are too busy to perform these simple tasks. One way she tries to avoid ___________ of services for her regular customers is to make sure that the same well-trained person is always assigned to work for the same client. 
 

A. 

inseparability

B. 

inconsistency

C. 

incongruity

D. 

inflexibility

E. 

intangibility

 

33.

Alana operates a wedding preparation service that helps brides-to-be in the planning of their weddings. To maintain a quality image and a standardized offering, Alana provides extensive training for each of her employees. What unique aspect of services is Alana trying to address? 
 

A. 

impressionability

B. 

intangibility

C. 

inconsistency

D. 

inseparability

E. 

uniqueness of the service

 

34.

Jason graduated from high school and took his mom to dinner after the ceremony. At the restaurant, the server filled their water glasses, checked on their table, and took care of their requests. Jason noted that the last time he was at this restaurant, the experience was much worse. This scenario illustrates the ___________ of services. 
 

A. 

impressionability

B. 

intangibility

C. 

inseparability

D. 

uniqueness of the service

E. 

inconsistency

 

35.

Inseparability in services means consumers 
 

A. 

see little variation from one service provider in an industry to another.

B. 

are unable to differentiate price from quality.

C. 

cannot evaluate a service until it is being or has been used.

D. 

cannot separate the service itself from the deliverer of the service.

E. 

cannot separate themselves from the deliverer of the service.

 

36.

The interaction between a service provider and the consumer such that the two of them co-create value together is due to which element unique to services? 
 

A. 

inventory

B. 

intangibility

C. 

inseparability

D. 

continuum of the service

E. 

inconsistency

 

37.

Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services, such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office, for people who are too busy to perform these tasks. She is such a caring person and so well-liked that her customers recommend her instead of her business to people who are looking for someone to perform similar services. Their inability to see the distinction between Andrea and her 2 Places at 1 Time concierge service is an example of which unique characteristic of services? 
 

A. 

intangibility

B. 

impressionability

C. 

incongruity

D. 

inseparability

E. 

inflexibility

 

38.

When Mandy last got her drive-through order at the fast-food restaurant, she thought the employee who helped her was cold and unfriendly. The food tasted good but was overshadowed by the employee's demeanor. Since then, Mandy often says something derogatory to her friends about the restaurant based on this single experience. This is an example of which issue associated with services? 
 

A. 

inseparability

B. 

intangibility

C. 

impressionability

D. 

incongruity

E. 

inflexibility

 

39.

When banks are closed, they can offer value to their customers through automatic teller machines (ATMs). This self-service technology also comes with a down side since the ATMs are perceived as being less 
 

A. 

convenient.

B. 

reliable.

C. 

personal.

D. 

safe.

E. 

accurate.

 

40.

Although many people love the self-service technology that allows Redbox to provide DVDs 24 hours a day, seven days a week, many people also want personal interaction and recommendations from other people. Redbox confronted this issue by creating "Redblog," where customers could share their opinions, feelings, and experiences. This is an example of confronting the 
 

A. 

inventory aspects of services.

B. 

inseparability aspects of services.

C. 

inconsistency aspects of services.

D. 

intangibility aspects of services.

E. 

impressionability aspects of services.

 

41.

Why is inventory of services different from that of products? 
 

A. 

Time is less important to customers of services than customers of products.

B. 

Only service inventory can be reduced through more efficient movement of products.

C. 

There are larger costs associated with the handling of service inventory.

D. 

Unlike goods providers, the service provider is often unavailable when there is a demand for the service.

E. 

Service inventory costs are related to idle production capacity rather than storage or handling.

 

42.

A situation that occurs when a service provider is available but there is no demand is referred to as 
 

A. 

off-peak pricing.

B. 

idle production capacity.

C. 

static demand.

D. 

capacity management.

E. 

excess inventory.

 

43.

With services, inventory carrying costs are more subjective and are related to 
 

A. 

the minimum number of customers that a service provider can serve and still remain profitable.

B. 

the maximum number of customers that a service provider must serve.

C. 

overstaffing.

D. 

idle production capacity.

E. 

a situation that occurs when the primary demand for a service exceeds that number of service deliverers available to meet that demand.

 

44.

What does idle production capacity refer to? 
 

A. 

a situation where the demand for exceeds the availability of service providers and as a result, no services can be offered

B. 

when the supply of service providers exceeds the primary demand for the service

C. 

a situation where a service provider is available but there is no demand for the service

D. 

integrating the service component of the marketing mix with efforts to influence consumer demand

E. 

the potential profits of one service provider serving multiple clients at the same time

 

45.

The emergency room staff in Houston's largest hospital is pleasantly surprised when a four-day Fourth of July weekend brings in few accident victims for treatment. They know from experience that such public holidays usually have high rates of accidents. For the hospital's business office, the lower demand for the emergency room services means 
 

A. 

a break in the service continuum.

B. 

its services are no longer tangible.

C. 

its services can be separated from the staff.

D. 

the hospital has idle production capacity.

E. 

an opportunity for gap analysis.

 

46.

Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these tasks. She has often been hired by major corporations to perform services for their harried executives, and now many of her major clients are providing perks like her service for their employees. Her staff is overworked and she will soon hire more employees to fill demand. Andrea is not currently experiencing __________; in fact, all of her employees and equipment are fully being used. 
 

A. 

off-peak pricing

B. 

idle production capacity

C. 

static demand

D. 

capacity marketing

E. 

capacity inventory

 

47.

Southwest Airlines operates five flights daily between Chicago and Phoenix during the winter. One flight leaves Phoenix at 12:10 p.m. The plane, a Boeing 737, has a capacity of 120 passengers. During the past month, the flight has averaged 24 passengers, a load factor of only 20 percent. Once the plane takes off, the empty seats generate no revenue for the airline for that flight. What unique aspect of services does this situation describe? 
 

A. 

incongruity

B. 

intangibility

C. 

inconsistency

D. 

inseparability

E. 

idle production capacity

 

48.

The __________ cost of a service is the cost of paying the person used to provide the service along with any needed equipment. 
 

A. 

intangibility

B. 

inconsistency

C. 

inseparability

D. 

inventory

E. 

hidden

 

49.

Many retailers hire additional sales help during the holiday season. This is an example of how service companies deal with 
 

A. 

shrinkage.

B. 

seasonal absenteeism.

C. 

economic recessions.

D. 

derived demand.

E. 

inventory carrying costs.

 

50.

Inventory carrying costs can be reduced by 
 

A. 

using a straight salary compensation plan.

B. 

hiring additional full-time personnel.

C. 

allowing personnel to work overtime.

D. 

increasing the hours worked per week.

E. 

using a commission compensation system.

 

51.

The inventory costs of services include 
 

A. 

equipment and training costs.

B. 

management and material costs.

C. 

service delivery and spoilage costs.

D. 

salary of service provider and equipment costs.

E. 

salary of service provider and training costs.

 

52.

The inventory carrying costs of real estate agencies are low because they 
 

A. 

use a straight salary compensation plan.

B. 

allow personnel to work any hours a day and any number of days per week.

C. 

decrease the number of workdays per week, but increase the hours per day.

D. 

have employees who work on commission and need little expensive equipment.

E. 

are responsible for their own training, transportation, and supplies.

 

53.

Which service listed below has the lowest inventory carrying cost? 
 

A. 

restaurant

B. 

automobile repair

C. 

amusement park

D. 

employment agency

E. 

animal hospital

 

54.

Which service listed below has the lowest inventory carrying cost? 
 

A. 

railroad

B. 

hotel

C. 

long-term care facility

D. 

amusement park

E. 

insurance company

 

55.

The inventory carrying costs of airlines is high because they 
 

A. 

use a straight salary compensation plan for the large numbers of flight attendants.

B. 

have high-salaried pilots and very expensive equipment.

C. 

allow baggage personnel to work overtime.

D. 

decrease the number of workdays per week, but increase the hours per day.

E. 

use a commission compensation system for their reservationists.

 

56.

The highest inventory carrying costs would most likely be for which of the following services? 
 

A. 

real estate agencies

B. 

dry cleaners

C. 

auto repair centers

D. 

amusement parks

E. 

hospitals

 

57.

Which service listed below has the highest inventory carrying cost? 
 

A. 

railroad

B. 

hotel

C. 

auto repair garage

D. 

amusement park

E. 

insurance company

 

58.

The range of offerings from the tangible to the intangible, or product-dominant to service-dominant, is referred to as the 
 

A. 

service continuum.

B. 

product continuum.

C. 

tangibility line.

D. 

inseparability span.

E. 

customer contact audit.

 

59.

According to the service continuum, what are offerings such as theaters, advertising agencies, and air travel? 
 

A. 

product-dominated offerings

B. 

people-dominated offerings

C. 

service-dominated offerings

D. 

equipment-dominated offerings

E. 

idea-dominated offerings

 

60.

According to the service continuum, what are offerings such as neckties, dog food, and tailored suits? 
 

A. 

product-dominated offerings

B. 

people-dominated offerings

C. 

service-dominated offerings

D. 

equipment-dominated offerings

E. 

idea-dominated offerings

 

61.

According to the service continuum, which of the following offerings has the highest level of intangibility? 
 

A. 

tailored suit

B. 

advertising agency

C. 

tutoring service

D. 

fast-food restaurant

E. 

salt

 

62.

According to the service continuum, which of these offerings has an almost perfect balance of tangible and intangible attributes? 
 

A. 

tailored suit

B. 

tutoring service

C. 

dog food

D. 

fast-food restaurant

E. 

movie theater

 

63.

According to the service continuum, which of the following offerings has the lowest level of intangibility? 
 

A. 

designer dress

B. 

law practice

C. 

tutoring service

D. 

cat food

E. 

pepper

 

64.

Services can be classified by 
 

A. 

their method of delivery.

B. 

their use of idle capacity time.

C. 

the nature of their ownership.

D. 

their location on perceptual maps.

E. 

organizational reach.

 

65.

Services can be classified according to whether they are __________, for-profit or nonprofit organizations, or government agencies. 
 

A. 

national or global

B. 

used by independent contractors

C. 

privately owned or publicly owned

D. 

delivered by people or equipment

E. 

owned by individuals or corporations

 

66.

Services can be classified according to whether they are delivered by: (1) people or equipment, (2) __________, or (3) government agencies. 
 

A. 

national or global

B. 

performed by independent contractors

C. 

privately owned or publicly owned

D. 

owned by individuals or corporations

E. 

for-profit or nonprofit organizations

 

67.

Services can be classified according to whether they are delivered by: (1) people or equipment, (2) for-profit or nonprofit organizations, or (3) __________. 
 

A. 

government agencies

B. 

a national organization or a global organization

C. 

privately owned or publicly owned

D. 

performed by independent contractors

E. 

owned by individuals or corporations

 

68.

Services can be classified by their method of delivery. Services that require tangible assets, such as ATMs, taxis, and aircraft, represent 
 

A. 

government-delivered services.

B. 

people-delivered services.

C. 

fee-delivered services.

D. 

equipment-delivered services.

E. 

nonprofit-delivered services.

 

69.

Services can be classified by their method of delivery. Services that require actions, such as consulting, plumbing, and cleaning, represent 
 

A. 

equipment-based services.

B. 

technology-based services.

C. 

fee-based services.

D. 

people-based services.

E. 

nonprofit services.

 

70.

The categories for people-based services include 
 

A. 

volunteers, skilled operators, and professionals.

B. 

unskilled labor, skilled labor, and professionals.

C. 

unskilled operators, unskilled labor, and skilled labor.

D. 

automated, skilled operators, and unskilled labor.

E. 

automated, skilled operators, and professionals.

 

71.

Which of the following is the best example of a people-based service? 
 

A. 

movie theaters

B. 

airlines

C. 

accounting

D. 

vending machines

E. 

taxis

 

72.

Which of the following is the best example of a people-based service? 
 

A. 

a lawyer

B. 

movie theaters

C. 

airlines

D. 

vending machines

E. 

taxis

 

73.

What do a security guard, a plumber, and a management consultant have in common? 
 

A. 

They are all tangible services.

B. 

They do not have problems with idle production capacity.

C. 

They are all equipment-based services.

D. 

They are all people-based services.

E. 

They never use off-peak pricing.

 

74.

The categories for equipment-based services include 
 

A. 

unskilled labor, skilled labor, and professionals.

B. 

unskilled operators, skilled operators, and professional operators.

C. 

simple machines, technical equipment, and safety equipment.

D. 

those powered by unskilled labor, those operated by skilled operators, and those operated by professionals.

E. 

automated, those operated by relatively unskilled operators, and those operated by skilled operators.

 

75.

Three categories for equipment-based services are 
 

A. 

unskilled labor, those operated by relatively unskilled operators, and self-serve.

B. 

professionals, those operated by relatively unskilled operators, and automated.

C. 

automated (self-serve), those operated by relatively unskilled operators, and those operated by skilled operators.

D. 

unskilled labor, skilled labor, and professionals.

E. 

those operated by skilled operators, unskilled labor, and professionals.

 

76.

Compared with people-based services, equipment-based services do not have the marketing concern of 
 

A. 

intangibility.

B. 

insensitivity.

C. 

inventory.

D. 

inconsistency.

E. 

immeasurability.

 

77.

Equipment-based services do not have the marketing concern of inconsistency because __________ have been removed from the delivery of the service. 
 

A. 

risk and product liability

B. 

people

C. 

learning requirements

D. 

automations

E. 

accessories

 

78.

Equipment-based services, such as ATMs, online brokerage firms, and automated car washes, do not have the marketing concern of 
 

A. 

inconsistency.

B. 

intangibility.

C. 

inseparability.

D. 

inventory.

E. 

independence.

 

79.

Which of the following is the best example of an equipment-based service? 
 

A. 

lawn care

B. 

doctors

C. 

taxis

D. 

lawyers

E. 

janitorial services

 

80.

What do a dry cleaning service, an automated car wash, and a taxi service have in common? 
 

A. 

They are all tangible services.

B. 

They are all people-based services.

C. 

None of them has problems with idle production capacity.

D. 

They never use off-peak pricing.

E. 

They are all equipment-based services.

 

81.

What do an online travel agency, a limousine service, and a railroad have in common? 
 

A. 

They are all strictly tangible services.

B. 

They are all people-based services.

C. 

None of them has a problem with idle production capacity.

D. 

They are all equipment-based services.

E. 

They all require skilled operators.

 

82.

For nonprofit organizations, excesses in revenue over expenses are 
 

A. 

taxed at one-half the rate for profit organizations.

B. 

distributed equally to all of the organization's shareholders.

C. 

returned to the organization's treasury to allow the continuation of the service.

D. 

taxed at a reduced rate if the revenue is to be used in keeping with the organization's core mission.

E. 

not taxed at all unless it is a religious organization.

 

83.

A nonprofit organization may pay taxes if 
 

A. 

excess revenues exceed 20 percent of the budget.

B. 

the organization is not considered to be a religious institution.

C. 

revenue is received from overseas subsidiaries.

D. 

revenue-generating holdings are not directly related to the organization's core mission.

E. 

money is spent on research and development, then it is taxed at a significantly lower rate.

 

84.

Recently, many nonprofit organizations such as United Way, Greenpeace, Outward Bound, The Salvation Army, and the Girl Scouts 
 

A. 

were eager to use marketing practices but were not permitted to do so since they were 501(c)(3) organizations as classified by the IRS.

B. 

thought that marketing would limit their profitability as nonprofit organizations.

C. 

could not afford marketing activities.

D. 

have increased their use of marketing practices.

E. 

thought that marketing activities would create excess demand.

 

85.

Recently, many nonprofit organizations such as the American Red Cross 
 

A. 

have found marketing practices to be counterproductive.

B. 

began using marketing activities to improve profits.

C. 

could not afford marketing activities.

D. 

thought that marketing activities would create excess demand.

E. 

have used marketing to develop advertising and other promotional campaigns.

 

86.

The American Red Cross uses marketing to help achieve its goals. As a service, it can be classified as 
 

A. 

a nonprofit organization.

B. 

a for-profit organization.

C. 

equipment-based.

D. 

a business firm.

E. 

a governmental agency.

 

87.

Sterile Feral, Inc., is a nonprofit organization that catches wild or stray cats. It then neuters, vaccinates, and releases them. In recent years, nonprofit organizations such as Sterile Feral have turned to marketing to help it 
 

A. 

receive additional government funding.

B. 

expand its business to stray dogs.

C. 

maintain its nonprofit status.

D. 

better serve its donors in order to achieve its goals.

E. 

compete with other similar organizations.

 

88.

The Susan G. Komen organization has used __________, in addition to its familiar walks and races, to raise more than $2 billion for breast cancer research. 
 

A. 

social marketing

B. 

private donations

C. 

sales promotion campaigns

D. 

green marketing programs

E. 

sharing of resources

 

89.

The American Red Cross uses social marketing tools such as __________ to raise contributions. 
 

A. 

blogs

B. 

e-mail blasts

C. 

wikis

D. 

apps

E. 

tweets

 

90.

The first step a nonprofit organization should take to engage people with social media is to 
 

A. 

set specific measurable goals.

B. 

understand what motivates people to take up causes.

C. 

create a simple and realistic operating budget.

D. 

create a well-defined organizational hierarchy.

E. 

develop a unique selling proposition.

 

91.

With respect to social marketing, nonprofit organizations should do all of the following except 
 

A. 

use social media that allow the use of digital photos, video, and gaming skills.

B. 

allow people to feel like they are doing something.

C. 

restrict the sharing of information, such as allowing people to share personal stories, due to privacy concerns.

D. 

have metrics to assess the effectiveness of its social media activities.

E. 

understand what motivates people to take up causes.

 

92.

What type of organization is the U.S. Forest Service, which manages our national park system? 
 

A. 

It is a privately owned firm.

B. 

It is a government agency service provider.

C. 

It is a good-dominate organization on the service continuum.

D. 

It is an organization that does not experience idle production capacity.

E. 

Capacity management is not an issue for this organization.

 

93.

What do the United States Post Service, the Connecticut Department of Social Services, and the Phoenix Fire Department have in common? 
 

A. 

They are all privately owned companies.

B. 

None fit on the service continuum.

C. 

They never experience idle production capacity.

D. 

Capacity management is not an issue for these organizations.

E. 

They are all government agency service providers.

 

94.

Purchases such as clothing, jewelry, and automobiles would most likely be evaluated on __________ properties. 
 

A. 

value

B. 

search

C. 

credence

D. 

experience

E. 

quality

 

95.

Purchases such as restaurant meals, vacations, and child care would most likely be evaluated on __________ properties. 
 

A. 

value

B. 

search

C. 

credence

D. 

experience

E. 

expenditure

 

96.

Purchases such as legal services, auto repair, and medical diagnosis would most likely be evaluated on __________ properties. 
 

A. 

value

B. 

search

C. 

credence

D. 

experience

E. 

expenditure

 

97.

Consumers use search, experience, and credence properties to evaluate services. Which statement is most accurate? 
 

A. 

Legal services are high in search credence properties, but medical services are high in experience properties.

B. 

Haircuts are high in experience properties, but barbershops are high in search properties.

C. 

Jewelry is high in search properties, although diamonds are high in credence properties.

D. 

Television repair is more difficult to evaluate than restaurant meals.

E. 

Child care is equally high in search, experience, and credence properties because the decision is so important.

 

98.

Characteristics of tangible products have __________ properties, such as color, size, and style, which can be determined before purchase. 
 

A. 

search

B. 

form

C. 

experience

D. 

credence

E. 

brand

 

99.

Which of the following is high in search properties? 
 

A. 

clothing

B. 

TV repair

C. 

legal services

D. 

auto repair

E. 

medical diagnosis

 

100.

One of the primary differences between tangible goods and services involves a consumer's ability to make prepurchase evaluations. For example, consumers can easily evaluate shoes, jewelry, and skis before making a purchase. On the other hand, consumers can evaluate services such as restaurants, ski instructors, and tanning salons only during or after their purchase. Indeed, tangible products have __________ properties, whereas services have __________ properties. 
 

A. 

consistent; inconsistent

B. 

search; experience

C. 

inconsistent; consistent

D. 

experience; search

E. 

gap; encounter

 

101.

Which of the following is high in experience properties? 
 

A. 

clothing

B. 

legal services

C. 

auto repair

D. 

a vacation

E. 

a medical diagnosis

 

102.

Services such as restaurants and child care are evaluated on __________ properties. 
 

A. 

search

B. 

form

C. 

experience

D. 

credence

E. 

performance

 

103.

Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these tasks. She is often hired by major corporations to perform services for their harried executives and their spouses. Her clients can evaluate the services that 2 Places at 1 Time provide 
 

A. 

only before they are purchased.

B. 

only after they are consumed.

C. 

only at the same time as they are purchased or consumed.

D. 

before, during, and/or after they are purchased or consumed.

E. 

only during consumption or after they are purchased.

 

104.

Sarah has a backache due to overexertion. She believes a massage would loosen her back muscles and make her feel better. She is concerned because a massage, unlike a pair of shoes, cannot be felt before she buys it. Sarah realizes massages have __________ properties. 
 

A. 

search

B. 

form

C. 

experience

D. 

credence

E. 

performance

 

105.

When Theresa Martinez relocated from the East to the Midwest, she needed to find a bank with offices in her new state. Several banks offered banking products (checking and savings accounts, loans, certificates of deposit) and other financial products (mutual funds, insurance) that were available from her former bank. After selecting U.S. Bank, Theresa needed some help with her accounts and went to visit her personal banker. She was very impressed with the banker's attitude and willingness to explain certain items to her in terms she could understand. The service Theresa received from the U.S. Bank representative exhibited __________ properties. 
 

A. 

credence

B. 

expertise

C. 

search

D. 

experience

E. 

customer relationship

 

106.

Services provided by specialized professionals, such as medical diagnoses and legal services, have certain properties or characteristics that the consumer may find impossible to evaluate even after their purchase or consumption. What are these properties called? 
 

A. 

customer contact properties

B. 

credence properties

C. 

capacity properties

D. 

contract properties

E. 

relationship properties

 

107.

Which of the following is high in credence properties? 
 

A. 

clothing

B. 

vacation

C. 

jewelry

D. 

houses

E. 

medical diagnoses

 

108.

Services performed by surgeons or lawyers are primarily evaluated on __________ properties. 
 

A. 

search

B. 

form

C. 

indirect

D. 

credence

E. 

experience

 

109.

To reduce the uncertainty created by __________ properties, service consumers turn to personal sources of information such as opinion leaders, early adopters, and reference group members during the purchase decision process. 
 

A. 

search

B. 

credence

C. 

experience

D. 

expertise

E. 

quality

 

110.

Research indicates that consumers search for much more information when trying to evaluate services with which properties? 
 

A. 

search

B. 

tangible

C. 

assurance

D. 

experience

E. 

credence

 

111.

Sarah has a toothache. She believes it may be due to her not having regular dental checkups in the past. She now wants to find a dentist, but does not have one that she has used in the past. Because dentistry has __________ properties, Sarah plans to ask her friends for a recommendation for a dentist they like to be sure that she finds a good one. 
 

A. 

search

B. 

form

C. 

experience

D. 

credence

E. 

performance

 

112.

Fred White has just accepted a sales position with the ABC Health Maintenance Organization, a major provider of health care services. He had been selling medical supplies for some time and found that he understood how customers bought medical supplies. Which of the following is most likely to be a characteristic of the health care services that Fred offers? 
 

A. 

Customers are engaged in a low involvement purchase process.

B. 

The quality of services can be predetermined in a similar manner to tangible products.

C. 

A consumer may not have the ability to judge the quality of medical care service even after the service has been provided.

D. 

The buyer does not participate in the delivery of the service.

E. 

The service provider should concentrate on the problem recognition stage of the purchase decision process in the marketing health care services.

 

113.

The type of analysis that compares the differences between consumers' expectations about a service and their experience with it based on dimensions of service quality is referred to as 
 

A. 

customer relationship management.

B. 

service encounter differential.

C. 

gap analysis.

D. 

a customer contact audit.

E. 

a service audit.

 

114.

The two basic components of a customer's evaluation of a service are 
 

A. 

expectations and customer contact.

B. 

expectations and experience.

C. 

intangibility and inconsistency.

D. 

experience and credence.

E. 

inconsistency and inseparability.

 

115.

How a person establishes expectations for a service not yet experienced is influenced by __________, personal needs, past experiences, and promotional activities. 
 

A. 

the economy

B. 

consumer income

C. 

word-of-mouth communications

D. 

competitive trends

E. 

how the organization delivers its service

 

116.

How a person establishes expectations for a service not yet experienced is influenced by word-of-mouth communications, __________, past experiences, and promotional activities. 
 

A. 

personal needs

B. 

the economy

C. 

consumer income

D. 

competitive trends

E. 

how the organization delivers its service

 

117.

How a person establishes expectations for a service not yet experienced is influenced by word-of-mouth communications, personal needs, __________, and promotional activities. 
 

A. 

how the organization delivers its service

B. 

past experiences

C. 

competitive trends

D. 

the economy

E. 

consumer income

 

118.

How a person establishes expectations for a service not yet experienced is influenced by word-of-mouth communications, personal needs, past experiences, and 
 

A. 

the economy.

B. 

consumer income.

C. 

competitive trends.

D. 

promotional activities.

E. 

how the organization delivers its service.

 

119.

A person can establish expectations for a service he or she has not yet experienced through word-of-mouth communications, personal needs, past experiences, and promotional activities. However, the actual experience(s) are determined by 
 

A. 

the way the organization delivers its service.

B. 

the positive reinforcement from friends, family, and peers, after the service was provided.

C. 

repeat encounters with the same service provider.

D. 

psychological feelings of well-being.

E. 

a formal post-purchase evaluation or questionnaire.

 

120.

Many restaurants now ask consumers to evaluate their experience on a short questionnaire when they pay their bill. This assessment of consumer expectations and the actual experience they had is called a 
 

A. 

service encounter survey.

B. 

customer profile analysis.

C. 

gap analysis.

D. 

customer contact audit.

E. 

service audit.

 

121.

There are five key dimensions of service quality: 
 

A. 

reliability, responsiveness, competence, courtesy, and empathy.

B. 

knowledge, responsiveness, respect, diligence, and honesty.

C. 

honesty, respect, empathy, reliability, and diligence.

D. 

reliability, competence, alacrity, fairness, and product knowledge.

E. 

reliability, tangibility, responsiveness, assurance, and empathy.

 

122.

As a dimension of service quality, the ability to perform the promised service dependably and accurately is referred to as 
 

A. 

responsiveness.

B. 

competence.

C. 

courtesy.

D. 

empathy.

E. 

reliability.

 

123.

The dimension of service quality called __________ is the ability to perform the promised service dependably and accurately. 
 

A. 

reliability

B. 

assurance

C. 

accuracy

D. 

responsiveness

E. 

empathy

 

124.

Sterile Feral, Inc., is a nonprofit organization that catches wild or stray cats, and then neuters, vaccinates, and releases them. Veterinarians are particularly impressed with how effectively and safely the organization performs its service each and every time. With which service quality dimension are veterinarians most impressed? 
 

A. 

assurance

B. 

tangibility

C. 

reliability

D. 

credibility

E. 

empathy

 

125.

Josh is looking for a new smartphone provider because he has grown tired of the many dropped calls, particularly near his school. In terms of the service quality dimensions, Josh is unhappy with which dimension of his service? 
 

A. 

assurance

B. 

tangibility

C. 

responsiveness

D. 

reliability

E. 

empathy

 

126.

As a dimension of service quality, the appearance of physical facilities, equipment, personnel, and communication materials as a dimension of service quality is referred to as 
 

A. 

communication.

B. 

responsiveness.

C. 

competence.

D. 

tangibility.

E. 

empathy.

 

127.

The dimension of service quality called __________ is the appearance of physical facilities, equipment, personnel, and communication materials. 
 

A. 

assurance

B. 

reliability

C. 

responsiveness

D. 

empathy

E. 

tangibility

 

128.

Sandy needs to have her car repaired. She is a member of the American Automobile Association (AAA) and knows that the group evaluates car repair shops. Furthermore, the shop she is considering displays the AAA seal of approval. It also is clean and organized. She believes this is a good way to predict the quality of the service she will receive. Sandy bases her opinion of car repair shops on the basis of which service quality dimension? 
 

A. 

assurance

B. 

tangibility

C. 

reliability

D. 

responsiveness

E. 

empathy

 

129.

As a dimension of service quality, responsiveness is 
 

A. 

the ability to perform the promised service dependably and accurately.

B. 

the appearance of physical facilities, equipment, personnel, and communication materials.

C. 

the willingness to help customers and provide prompt service.

D. 

the knowledge and courtesy of employees and their ability to convey trust and confidence.

E. 

caring, individualized attention provided to customers.

 

130.

As a dimension of service quality, the willingness to help customers and provide prompt service is referred to as 
 

A. 

reliability.

B. 

responsiveness.

C. 

competence.

D. 

assurance.

E. 

empathy.

 

131.

The dimension of service quality called __________ is willingness to help customers and provide prompt service. 
 

A. 

assurance

B. 

reliability

C. 

responsiveness

D. 

empathy

E. 

sympathy

 

132.

Arnett is looking for a new Internet service provider. The one he currently uses is too slow when loading web pages with ads and videos. In terms of the service quality dimensions, Arnett is unhappy with which dimension of this service? 
 

A. 

assurance

B. 

tangibility

C. 

reliability

D. 

responsiveness

E. 

empathy

 

133.

The dimension of service quality called __________ is knowledge and courtesy of employees and their ability to convey trust and confidence. 
 

A. 

assurance

B. 

sympathy

C. 

empathy

D. 

responsiveness

E. 

reliability

 

134.

As a dimension of service quality, knowledge and courtesy of employees and their ability to convey trust and confidence is referred to as 
 

A. 

reliability.

B. 

responsiveness.

C. 

competence.

D. 

assurance.

E. 

empathy.

 

135.

The dimension of service quality called __________ is caring, individualized attention provided to customers. 
 

A. 

assurance

B. 

reliability

C. 

responsiveness

D. 

empathy

E. 

sympathy

 

136.

As a dimension of service quality, the caring, individualized attention provided to customers as a dimension of service quality is referred to as 
 

A. 

reliability.

B. 

responsiveness.

C. 

competence.

D. 

assurance.

E. 

empathy.

 

137.

Sterile Feral, Inc., is a nonprofit organization that catches wild or stray cats, and then neuters, vaccinates, and releases them. The personnel of the nonprofit organization are caring people who love animals and try to do what they can to meet the needs of each cat they care for. The caring nature of the personnel relates to which service quality dimension? 
 

A. 

assurance

B. 

tangibility

C. 

empathy

D. 

reliability

E. 

credibility

 

138.

When knowledge and courtesy of employees and their ability to convey trust and confidence is important, this represents which dimension of service quality? 
 

A. 

tangibility (tangibles)

B. 

responsiveness

C. 

assurance

D. 

reliability

E. 

empathy

 

139.

When willingness to help customers and provide prompt service is important, this represents which dimension of service quality? 
 

A. 

reliability

B. 

assurance

C. 

tangibility (tangibles)

D. 

empathy

E. 

responsiveness

 

140.

When the ability to perform the promised service dependably and accurately is important, this represents which dimension of service quality? 
 

A. 

reliability

B. 

empathy

C. 

tangibility (tangibles)

D. 

assurance

E. 

responsiveness

 

141.

When it is important to provide caring, individualized attention to customers, this represents which dimension of service quality? 
 

A. 

reliability

B. 

empathy

C. 

assurance

D. 

tangibility (tangibles)

E. 

responsiveness

 

142.

When the appearance of the physical facilities, equipment, personnel, and communications materials is important, this represents which dimension of service quality? 
 

A. 

reliability

B. 

empathy

C. 

tangibility

D. 

assurance

E. 

responsiveness

 

143.

Which of the following statements about service failures is most accurate? 
 

A. 

Only 5 to 10 percent of dissatisfied customers choose to complain to the company.

B. 

Once customers complain, they expect all of their demands to be met.

C. 

Only 20 percent of consumers will give a company a second chance if they are not fully satisfied during the first encounter.

D. 

People are twice as likely to share good service experiences as bad experiences.

E. 

Monitoring social media websites such as YouTube, Twitter, and Facebook are a waste of time since the complaints presented are usually isolated instances and are not indicative of the actual service delivered.

 

144.

Most marketing experts agree that it is best to _________________ service failures, particularly when the failure is viewed to be the result of a controllable factor. 
 

A. 

ignore

B. 

argue with

C. 

respond to

D. 

blog about

E. 

consider

 

145.

Another name for the steps in the service delivery process is 
 

A. 

service interactions.

B. 

access points.

C. 

path-analysis.

D. 

service encounters.

E. 

wheel of services.

 

146.

A customer contact audit refers to 
 

A. 

the initial contact between a service provider and the ultimate consumer.

B. 

a flowchart of the points of interaction between a consumer and a service provider.

C. 

a method of consumer evaluation of service quality and consistency.

D. 

an estimation of demand based on service forecasting techniques.

E. 

a systematic assessment of a service provider's objectives, strategies, and performance in terms of social responsibility.

 

147.

A flowchart of the points of interaction between consumer and service provider is referred to as 
 

A. 

a service continuum.

B. 

gap analysis.

C. 

a customer contact audit.

D. 

a customer contact continuum.

E. 

a service audit.

 

148.

Recent research suggests that employees'__________, authenticity, and sincerity of their interactions affect the success of the relationships. 
 

A. 

reliability

B. 

competence

C. 

responsiveness

D. 

assertiveness

E. 

friendliness

 

149.

Recent research suggests that employees' competence, __________, and sincerity of their interactions affect the success of the relationships. 
 

A. 

reliability

B. 

empathy

C. 

responsiveness

D. 

authenticity

E. 

friendliness

 

150.

Recent research suggests that employees' competence, authenticity, and __________ of their interactions affect the success of the relationships. 
 

A. 

reliability

B. 

empathy

C. 

sincerity

D. 

responsiveness

E. 

friendliness

 

151.

Another version of a customer contact audit that includes all employee actions and acknowledges that services are designed to be "experiences" is referred to as 
 

A. 

a service continuum.

B. 

gap analysis.

C. 

a service blueprint.

D. 

an experience economy.

E. 

a service audit.

 

152.

Ron had a craving for sushi so he searched yellowpages.com for the name of a restaurant in his vicinity that serves this type of food. When he arrived at his destination, he was impressed with the menu posted outside the door and decided to go in. He was greeted with a smile by a hostess and then immediately seated at a well-appointed table where he was given a warm cloth for his hands. The food was beautifully presented, the rice was the perfect texture and temperature, and the fish was fresh and delicious. Halfway thought the meal, he excused himself to go to the restroom. It was clean, but the paper towel dispenser was empty. He returned to his table, finished his meal, and paid his check. The hostess said good-bye and asked him to return. The first point in his customer contact audit was 
 

A. 

searching yellowpages.com.

B. 

reading the menu on the door.

C. 

being greeted by the hostess.

D. 

being seated at his table.

E. 

receiving his meal.

 

153.

Ron had a craving for sushi so he searched yellowpages.com for the name of a restaurant in his vicinity that serves this type of food. When he arrived at his destination, he was impressed with the menu posted outside the door and decided to go in. He was greeted with a smile by a hostess and then immediately seated at a well-appointed table where he was given a warm cloth for his hands. A waiter beautifully presented the food, the rice was the perfect texture and temperature, and the fish was fresh and delicious. Halfway thought the meal, he excused himself to go to the restroom. It was clean, but the paper towel dispenser was empty. He returned to his table, finished his meal, and paid his check. The hostess said good-bye and asked him to return. Which of the following statements about this scenario is most accurate? 
 

A. 

Reading the menu posted outside the door was Ron's first point of interaction in the customer contact audit because if he hadn't liked the selections, he wouldn't have gone into the restaurant.

B. 

Being greeted by the hostess was the first point of interaction in the customer contact audit because it was the first "human" encounter with the actual service provider—the restaurant's employee.

C. 

The first point of interaction in the customer contact audit wasn't written, it was implied. The real first point in the customer contact audit should have been between Ron and the waiter, not Ron and the hostess. The waiter is wholly responsible for the service quality delivered.

D. 

The lack of paper towels in the restroom was the first point of interaction in the customer contact audit because it was the first time his expectations weren't met.

E. 

The yellowpages.com ad, the menu on the door, the hostess's greeting, the waiter, the quality and presentation of food, and even the restroom were all important service encounters.

 

154.

Which of the following is a point in the customer contact audit for a health club? 
 

A. 

participating in the health club's exercise class

B. 

the customer's diet

C. 

too much traffic on the way to the club

D. 

a willingness to exercise

E. 

meeting an attractive gym member

 

155.

Which of the following statements about relationship marketing is most accurate? 
 

A. 

The number of encounters in a service experience should always be the same.

B. 

The service encounter represents an opportunity to develop social bonds with customers.

C. 

An after-holiday sale is a good incentive to create a loyal customer relationship.

D. 

The purpose of relationship marketing is to benefit the customer, not the organization.

E. 

A major customer benefit of relationship marketing is a reduction in the price that is paid for the services an organization renders.

 

156.

Relationship marketing provides several benefits for service customers, including: (1) __________, (2) customized service delivery, (3) reduced stress due to a repetitive purchase process, and (4) an absence of switching costs. 
 

A. 

the continuity of a single provider

B. 

no need for comparison shopping

C. 

discounted switching costs

D. 

implied warranties

E. 

strict government quality performance guidelines

 

157.

Relationship marketing provides several benefits for service customers, including: (1) the continuity of a single provider, (2) customized service delivery, (3) __________, and (4) an absence of switching costs. 
 

A. 

no need for comparison shopping

B. 

reduced stress due to a repetitive purchase process

C. 

discounted switching costs

D. 

implied warranties

E. 

strict government quality performance guidelines

 

158.

Relationship marketing provides several benefits for service customers, including: (1) the continuity of a single provider, (2) customized service delivery, (3) reduced stress due to a repetitive purchase process, and (4) __________. 
 

A. 

no need for comparison shopping

B. 

implied warranties

C. 

discounted switching costs

D. 

an absence of switching costs

E. 

strict government quality performance guidelines

 

159.

Recent surveys of consumers have indicated that while customers of many services are interested in being "relationship customers," they require that the relationship be balanced in terms of 
 

A. 

honesty, a lack of prejudice, and empathy.

B. 

loyalty, benefits, value, kinds of connections, and respect for privacy.

C. 

loyalty, honesty, and integrity.

D. 

financial benefits, product benefits, and preferential treatment.

E. 

financial benefits, product benefits, and personal benefits.

 

160.

An expanded marketing mix for services that includes the four Ps (product, price, promotion, and place or distribution) as well as people, physical environment, and process, is referred to as the 
 

A. 

seven Ps of services marketing.

B. 

service matrix.

C. 

service continuum.

D. 

service encounters.

E. 

service mix.

 

161.

While there are the four Ps of marketing, there are the __________ Ps of services marketing. 
 

A. 

three

B. 

five

C. 

six

D. 

seven

E. 

eight

 

162.

All of the following comprise the seven Ps of services marketing except 
 

A. 

product.

B. 

process.

C. 

profitability.

D. 

people.

E. 

physical environment.

 

163.

The use of brand names is especially important for services because of which unique characteristic of services? 
 

A. 

inventory costs

B. 

inseparability

C. 

inconsistency

D. 

invisibility

E. 

intangibility

 

164.

Which of the following statements regarding service branding is most accurate? 
 

A. 

New services cannot be patented.

B. 

Because services are intangible and more difficult to describe, brand names and logos are of critical importance.

C. 

Services must include the word service in all their brand names.

D. 

Service firms without a brand reputation find it easy to introduce new services.

E. 

All service logos and brands must designated with the "SM" symbol.

 

165.

Which of the following statements regarding service branding is most accurate? 
 

A. 

Unlike products, services do not use subbranding.

B. 

Services must include the word service in their brand names to assure that customers are not purchasing a product.

C. 

Service firms with a well-established brand reputation will find it easier to introduce new services than those without a brand reputation.

D. 

Many consumers are suspicious of service providers that offer too many service line extensions.

E. 

Many service organizations, such as banks, hotels, and restaurants, do not rely heavily on branding because of the extent to which they are people-, not equipment-based services.

 

166.

The FedEx brand name suggests the possibility that it is government sanctioned and fast. This perception is important because of which unique characteristic of services? 
 

A. 

inventory costs

B. 

inseparability

C. 

inconsistency

D. 

invisibility

E. 

intangibility

 

167.

Which of the following is the most important aspect conveyed by the American Express credit card and travel brand, which focuses on providing unique services and attentive service provision? 
 

A. 

its international experience

B. 

differentiation and an image of quality

C. 

the ownership of the company

D. 

the nonprofit aspect of the company

E. 

the patent for its service

 

168.

Tuition, charges, fares, fees, and rates are all terms 
 

A. 

given to the tangible portion of the price of a service.

B. 

that are interchangeable when identifying the price of a service.

C. 

given to the intangible portion of the price of a service.

D. 

given to describe the price of services.

E. 

used in services to imply a higher quality product than the terms cost or price.

 

169.

Because of the intangible nature of services, consumers often perceive price as a possible indicator of the __________ of the service. 
 

A. 

profit or ROI

B. 

customer value

C. 

quality

D. 

target market

E. 

cost

 

170.

When customers buy services, they also consider nonmonetary costs, such as the __________ efforts required to consume the service. 
 

A. 

emotional and physiological

B. 

psychological and intellectual

C. 

physical and moral

D. 

physical and ethical

E. 

mental and physical

 

171.

All of the following are true about the price element of services except 
 

A. 

price can be referred to in a variety of terms.

B. 

price can affect consumer perceptions of the service.

C. 

price is used in on-peak pricing to manage the variations in supply for the service.

D. 

price can be used in capacity management.

E. 

price can be used in services to imply a higher quality.

 

172.

One tool available when trying to even out the variations in demand for services is 
 

A. 

off-peak pricing.

B. 

product lay-away.

C. 

credit incentives.

D. 

container sales.

E. 

product rationing.

 

173.

Service providers use tools such as __________, which consists of charging different prices for different times of the day or during different days of the week to reflect the variations in demand for their services. 
 

A. 

scale pricing

B. 

capacity pricing

C. 

down-time pricing

D. 

off-peak pricing

E. 

fraction pricing

 

174.

Many service businesses use off-peak pricing to reflect variations in 
 

A. 

costs of delivering service.

B. 

supply for a service.

C. 

profitability based on time of day or week.

D. 

demand for a service.

E. 

capacity.

 

175.

Charging different prices during different times of the day or during different days of the week to reflect variations in demand for a service is referred to as 
 

A. 

capacity pricing.

B. 

idle production pricing.

C. 

customer contact pricing.

D. 

derived demand pricing.

E. 

off-peak pricing.

 

176.

The less-expensive matinee movie pricing offered on shows prior to 4 p.m. is an example of 
 

A. 

price lining.

B. 

price differentiation.

C. 

off-peak pricing.

D. 

bait-and-switch pricing.

E. 

idle production pricing.

 

177.

Many commuters in New York install radio frequency identification (RFID) devices on their cars that can be read automatically as they approach a toll booth. This saves time, improves traffic flow, and means drivers don't need to keep exact change in their cars. It also offers New York authorities the opportunity to manage traffic flow by charging different toll amounts for different times of day, such as charging a higher toll for "rush hour" periods during the morning and afternoon commutes. Commuters in New York are experiencing 
 

A. 

price gouging.

B. 

off-peak pricing.

C. 

flow management pricing.

D. 

price differentiation.

E. 

idle production pricing.

 

178.

A major factor in developing a service marketing strategy is __________ because of the inseparability of services from the producer. 
 

A. 

product

B. 

price or distribution

C. 

promotion

D. 

place

E. 

process

 

179.

Place or distribution is a major factor in developing a service marketing strategy because of the __________ of services. 
 

A. 

inventory

B. 

inseparability

C. 

inconsistency

D. 

intangibility

E. 

information

 

180.

Which of the following statements regarding the place element of services is most accurate? 
 

A. 

Place has little impact on the marketing of services because there are so many intermediaries from which a consumer may choose.

B. 

The distribution site and the service provider are the intangible components of the service.

C. 

Place is an especially important factor because of the inconsistency between the service and the service provider.

D. 

Until recently, customers generally had to go to the service provider's physical location to purchase the service.

E. 

Technology is an effective way to bring services to the customer, but only if the consumer is a new user. Otherwise, the disadvantages outweigh the benefits.

 

181.

All of the following are benefits to be stressed during the promotion of services except 
 

A. 

price.

B. 

consistent quality.

C. 

location.

D. 

availability.

E. 

efficiency.

 

182.

A publicity tool frequently used by nonprofit services, which uses free space or time donated by the media, is referred to as 
 

A. 

a promotion.

B. 

an advertisement.

C. 

a press release.

D. 

a cooperative advertisement.

E. 

a public service announcement.

 

183.

Many nonprofit organizations use PSAs in their media planning. What does the acronym PSA stand for? 
 

A. 

public stakeholder agreement

B. 

promotional service amendment

C. 

public sustainability amendment

D. 

promotional setting announcement

E. 

public service announcement

 

184.

Many services depend on __________ for the creation and delivery of the customer service experience. 
 

A. 

people

B. 

government

C. 

process

D. 

productivity

E. 

physical environment

 

185.

Customers will often judge the __________ of the service experience based on the performance of the people providing the service. 
 

A. 

price

B. 

productivity

C. 

process

D. 

quality

E. 

physical environment

 

186.

The notion that a service organization must focus on its employees before successful programs can be directed at customers is referred to as 
 

A. 

internal analysis.

B. 

internal marketing.

C. 

external marketing.

D. 

stakeholder marketing.

E. 

employee marketing.

 

187.

The concept of internal marketing is based on the notion that a service organization must focus on its __________ before successful programs can be directed at customers. 
 

A. 

competitors

B. 

prospects

C. 

shareholders

D. 

employees

E. 

suppliers

 

188.

All of the following are employee development actions that are critical to the overall success of service organizations except 
 

A. 

coaching.

B. 

leadership.

C. 

training.

D. 

communication.

E. 

compensation.

 

189.

Edinberry's, a restaurant located in south Texas, offers a variety of foods and entertainment opportunities to its customers. The restaurant is famous for its fine steaks, spicy chili, and outstanding customer service. To maintain the restaurant's reputation for putting its customers first, the marketing manager at Edinberry's has developed marketing activities that are directed at its waiters and waitresses. These marketing activities are an example of __________ and are designed to help these restaurant employees maintain an exceptional customer experience. 
 

A. 

internal marketing

B. 

external marketing

C. 

service marketing

D. 

stakeholder marketing

E. 

employee marketing

 

190.

The process of managing the entire customer experience with the company is referred to as 
 

A. 

services marketing.

B. 

internal marketing.

C. 

customer experience management.

D. 

relationship marketing.

E. 

gap analysis.

 

191.

The customer experience management (CEM) process should 
 

A. 

allow for spontaneity and not be too rigid or planned.

B. 

be unique to each individual customer's experience.

C. 

stress the similarities in style, function, and form of the organization's service relative to the top competitors in the industry.

D. 

differentiate a service from other service offerings.

E. 

be performed by someone outside the firm to guarantee objectivity.

 

192.

Experts suggest that the customer experience management (CEM) process should be all of the following except 
 

A. 

consistent.

B. 

undifferentiated.

C. 

valuable.

D. 

intentional.

E. 

relevant.

 

193.

The appearance of the environment in which the service is delivered and where the firm and customer interact can influence the customer's __________ of the service. 
 

A. 

repeat usage

B. 

evaluation

C. 

exploitation

D. 

utilization

E. 

perception

 

194.

The tangibles that make up the service, such as buildings, landscaping, vehicles, furnishings, signage, brochures, and equipment, comprise which element of the seven Ps of services marketing? 
 

A. 

process

B. 

place

C. 

physical environment

D. 

productivity

E. 

product

 

195.

Service firms can manage their physical environment to influence customers' perceptions through 
 

A. 

service delivery management.

B. 

relationship management.

C. 

customer experience management.

D. 

exposure management.

E. 

impression management.

 

196.

The actual procedures, mechanisms, and flow of activities by which a service is created and delivered is referred to as 
 

A. 

process.

B. 

procedure.

C. 

productivity.

D. 

protocol.

E. 

plan.

 

197.

In the seven Ps of services marketing, the term process refers to 
 

A. 

the patented steps of service encounters that distinguish one service provider from another.

B. 

licensed procedures that have met ISO 9000 guidelines for safety.

C. 

the procedures, mechanisms, and flow of activities by which the service is created and delivered.

D. 

a protocol for behaviors and activities for people-based rather than technology-based services.

E. 

the decisions consumers' make during the purchase of services.

 

198.

In the seven Ps of services marketing, the term process involves not only "what" is created but also 
 

A. 

"if" it is created.

B. 

"how" it is created.

C. 

"when" it is created.

D. 

"for whom" it is created.

E. 

"why" it is created.

 

199.

A(n) __________ is very important to the process aspect of services because it helps identify steps that will ultimately lead to better service creation and delivery processes. 
 

A. 

customer contact audit

B. 

internal marketing review

C. 

tangibility gap analysis

D. 

service continuum

E. 

consumer experience audit

 

200.

Most services have a limited capacity due to the __________ of the service from the service provider and the perishable nature of the service. 
 

A. 

inventory

B. 

inconsistency

C. 

intangibility

D. 

information

E. 

inseparability

 

201.

Integrating the service component of the marketing mix with efforts to influence consumer demand is referred to as 
 

A. 

customer management.

B. 

internal marketing.

C. 

product management.

D. 

capacity management.

E. 

seven Ps of services marketing.

 

202.

Capacity management refers to 
 

A. 

integrating the service component of the marketing mix with efforts to influence consumer demand.

B. 

when the service provider is available but there is no demand.

C. 

charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service.

D. 

the practice of changing prices for services in real time in response to supply and demand conditions.

E. 

the operating cost per hour per employee or technology subtracted from the revenue generated by each full-time employee equivalent.

 

203.

Service organizations must manage the availability of the offering so that: (1) __________, and (2) the organization's assets are used in ways that will maximize the return on investment (ROI). 
 

A. 

marginal costs exceeds marginal revenues

B. 

service encounters can identify planning gaps

C. 

demand matches capacity over the duration of the demand cycle

D. 

the price elasticity of demand is unitary

E. 

the service experience is consistent with the sharing economy standards of the organization's industry

 

204.

Airlines feature load factor as a __________ measure on their marketing dashboards. 
 

A. 

productivity

B. 

price differentiation

C. 

tangibility

D. 

capacity management

E. 

profitability

 

205.

Airline load factor refers to 
 

A. 

the percentage of paying customer seats flown one mile plus frequent flyer redemption seats flown one mile.

B. 

the percentage of empty seats on a plane compared to its total capacity.

C. 

the percentage of available seats flown one mile occupied by a paying customer.

D. 

the percentage of seats that are overbooked on any given flight to prevent profit shortfalls for "no shows."

E. 

the total of all paid seats plus all luggage overcharges and all purchased beverages, meals, and other amenities or additional services, per flight.

 

206.

Airlines feature load factor as a capacity management measure on their marketing dashboards, along with two other measures: the operating expense per available seat flown one mile and the revenue generated by each seat flown one mile, called 
 

A. 

profit per passenger.

B. 

average price per passenger.

C. 

internal ROI.

D. 

unit variable sales.

E. 

yield.

 

207.

In a capacity management report from a well-known carrier in the airline industry, the yield is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents. From these details, the percentage of available seats flown one mile occupied by a paying customer is __________ percent. 
 

A. 

9.83

B. 

82.1

C. 

8.28

D. 

18.11

E. 

1.55

 

208.

In a capacity management report from a well-known carrier in the airline industry, the yield is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents. The revenue generated by each seat flown one mile is 
 

A. 

9.83 cents.

B. 

82.1 cents.

C. 

8.28 cents.

D. 

18.11 cents.

E. 

7.99 cents.

 

209.

In a capacity management report from a well-known carrier in the airline industry, the yield is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents. From these details, the airline posted __________ per available seat flown one mile. 
 

A. 

a 9.83 cent profit

B. 

a 1.55 cent profit

C. 

a 1.27 cent profit

D. 

a 0.21 cent loss

E. 

an 8.28 cent loss

 

210.

Assuming the following information in a capacity management report from a well-known carrier in the airline industry will not change in the near future, what actions would you recommend that the carrier take? The yield is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents. 
 

A. 

Proceed as in the past; the carrier is clearly profitable.

B. 

Use advertising to let consumers know how the carrier currently meets their needs.

C. 

Change the flight schedules to accommodate travelers' needs and advertise these changes.

D. 

Keep the flight schedule as it is and reduce the price per flight.

E. 

There is not enough information in the marketing dashboard to suggest an action to take.

 

211.

Changes in the services industry in the future will primarily be driven by three factors—technological development, __________, and the social imperative for sustainability. 
 

A. 

reverse marketing

B. 

improved understanding of service delivery and consumption

C. 

global branding

D. 

global service branding

E. 

the elimination of ethnocentricity

 

212.

Changes in the services industry in the future will primarily be driven by three factors—technological development, improved understanding of service delivery and consumption, and (3) __________. 
 

A. 

reverse marketing

B. 

global development

C. 

global service branding

D. 

sustainable development

E. 

the elimination of ethnocentricity

 

213.

The key technological elements of future services include __________ and personalization. 
 

A. 

automation

B. 

transglobalization

C. 

mobility

D. 

divergence

E. 

convenience

 

214.

The key technological elements of future services include mobility and 
 

A. 

automation.

B. 

transglobalization.

C. 

convenience.

D. 

divergence.

E. 

personalization.

 

215.

Mobility as a future aspect of services refers to 
 

A. 

the ability of mobile media technology to be incorporated into portable digital devices.

B. 

the ability to transport goods almost anywhere in the world within 24 hours.

C. 

the ability to transfer entire operations including a firm's technology from one location to the next within a matter of days.

D. 

the ability of consumers to purchase any service from any service provider anywhere in the world.

E. 

the ability of service providers to move their operations to any location in the world.

 

216.

Giving unauthorized free products or services to customers to inflate their customer satisfaction levels is referred to as 
 

A. 

BOGOs.

B. 

Facebook "liking."

C. 

service sweethearting.

D. 

pay-for-research.

E. 

social incentivizing.

 

217.

The trend toward sustainability and "green" business practices has expanded to include many services as they strive to 
 

A. 

comply with FDA rules.

B. 

increase their energy use.

C. 

reduce their capacity.

D. 

create a competitive advantage.

E. 

minimize consumer involvement.

 

218.

Marketers for the LA Galaxy market what basic "product"? 
 

A. 

a soccer game

B. 

popular players

C. 

the same social experience

D. 

a winning team

E. 

a competitive spirit

 

219.

The LA Galaxy's primary target market or "core fans" is 
 

A. 

18- to 34-year-old women.

B. 

Hispanics.

C. 

all sports fans.

D. 

18- to 34-year-old men.

E. 

Generation Z.

 

220.

What primary marketing metric does the LA Galaxy use to assess the impact of its marketing actions? 
 

A. 

sponsorships

B. 

ticket sales

C. 

promotion-to-sales ratio relative to other MLS teams

D. 

broadcast rights fees

E. 

merchandise sales

 

 


Short Answer Questions
 

221.

Services incorporate the four I's of product marketing. How would each of these four elements apply to a stock brokerage service? 
 


 


 


 

 

222.

What does it mean when we say services are intangible. How do marketers of services overcome the problems associated with intangibility? 
 


 


 


 

 

223.

What is the difference between intangibility and inseparability of services? 
 


 


 


 

 

224.

Where would potatoes, a photographic studio, and a psychologist fit into the service continuum? 
 


 


 


 

 

225.

Describe the three ways services can be classified. 
 


 


 


 

 

226.

What are the three properties of products and services that are evaluated by consumers when they are making a purchase decision? Give an example of a product or service for each. 
 


 


 


 

 

227.

List and define the five dimensions of service quality described in the textbook. 
 


 


 


 

 

228.

What is a customer contact audit? Outline the contact audit for a typical visit to your dentist. 
 


 


 


 

 

229.

What aspect of the product/service element of the marketing mix warrants special attention by service marketers? 
 


 


 


 

 

230.

What role does price play in the managing of services? 
 


 


 


 

 

231.

What is internal marketing? Why is it important in services marketing? 
 


 


 


 

 

232.

What role do people play in the managing of services? In answering the question, discuss the concept of customer experience management (CEM). 
 


 


 


 

 

233.

List and explain the key elements of future services. 
 


 


 


 

 

234.

Identify and describe how the LA Galaxy uses the seven Ps of services marketing in its marketing program. 
 


 


 


 

 

235.

How does the LA Galaxy use promotion (advertising, personal selling, public relations, sales promotion, direct marketing) in its marketing program. 
 


 


 


 

 

Document Information

Document Type:
DOCX
Chapter Number:
12
Created Date:
Aug 21, 2025
Chapter Name:
Chapter 12 Services Marketing
Author:
Roger A. Kerin, Steven W. Hartley

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