TRUE/FALSE QUESTIONS Answer whether the following statements are true or false
2 Discuss the differences between services and goods
4 Describe the components of service quality, and the gap model of service quality
2. Martha is a customer service agent at a department store. When a customer calls with a complaint about merchandise purchased at the store, she calls the customer back immediately and resolves the issue as quickly as possible. This is an example of the reliability component of services. true false
5 Develop marketing mixes for services
3. Lowanda is designing a promotional strategy for her consulting service. Her promotions should use personal sources and stress tangible cues of the service. true false
6 Discuss relationship marketing in services
4. IBM offers its employees flexible work hours, work-at-home programs, on-site childcare, and travel benefits that reward quality performance. IBM is practicing relationship marketing. true false
9 Describe nonprofit organization marketing
5. The only marketing mix component that nonprofit organization do not use is price. true false
10 Explain the unique aspects of nonprofit organization marketing
6. Target markets are generally easier to persuade in nonprofit organization marketing because they are not asked to "buy" anything. true false 7. The characteristics of for-profit services and nonprofit organizations suggest that their distribution channels should be direct. true false 8. Paid advertisements that promote programs, activities, or services of nonprofit agencies or governments are called PSAs (public service advertisements or announcements). true false 9. Consumers in nonprofit situations pay prices not in dollars but in other ways such as time or opportunity costs. true false
6. Target markets are generally easier to persuade in nonprofit organization marketing because they are not asked to "buy" anything. true false
7. The characteristics of for-profit services and nonprofit organizations suggest that their distribution channels should be direct. true false
8. Paid advertisements that promote programs, activities, or services of nonprofit agencies or governments are called PSAs (public service advertisements or announcements). true false
9. Consumers in nonprofit situations pay prices not in dollars but in other ways such as time or opportunity costs. true false
MULTIPLE-CHOICE QUESTIONS Select the response that best answers the question, and write the corresponding letter in the space provided.
11. Lauro has just accepted a position with Therapy-Plus, a major provider of physical therapy to the elderly. Lauro realizes that selling physical therapy services to individuals and health maintenance organizations will be challenging. What is one of the key aspects of the job Lauro can expect to find? a. The customer will select and evaluate health care services on the basis of search qualities. b. Customers are engaged in this as a low-involvement product. c. The tangibility of Therapy-Plus will be high. d. The use of the service will involve standardized service levels and not exhibit heterogeneity problems. e. A consumer may not have the ability to judge the quality of service because of its credence quality.
12. At the Sundae Sampler, customers place their orders, watch their ice-cream sundaes being prepared, and then quickly eat the sundaes in the store before the ice cream melts. This is an example of a characteristic of services known as: a. inseparability b. intangibility c. heterogeneity d. perishability e. dependency
13. Jorgio owns Pet Plus, a complete pet service that offers grooming, obedience training, show training for animals and handlers, boarding, special food preparation, and minor veterinary care. To maintain a quality image, Jorgio provides complete training for each employee in the company operations, objectives, and expected performance standards. What unique aspect of services is Jorgio attempting to address? a. inventoriability b. perishability c. intangibility d. inseparability e. heterogeneity
14. Karl is frustrated with the uneven business cycles in his catering business. Because he cannot produce a product in slow times and inventory it for the busy holiday seasons, he has to suffer through some extreme peak periods and slow periods. This is because his service business exemplifies the characteristic of: a. perishability b. inseparability c. intangibility d. heterogeneity e. insecurity
3 Explain why services marketing is important to manufacturers
15. In addition to the sale of the basic computer hardware, Gateway Computer now offers services such as maintenance and troubleshooting and its own Internet service. Gateway like does this in order to: a. differentiate itself from other computer companies. b. gain loyalty from its customer base. c. gain a competitive advantage over other computer companies. d. None of the above. e. All of the above.
16. KFC once measured its managers' success by how little chicken was thrown away at the end of the night. Customers who came into stores late at night either had to wait for chicken to be cooked or to settle for chicken that was cooked several hours before. This is an example of a gap between: a. what customers want and what management thinks customers want. b. the service quality specifications and the service that is actually provided. c. what the company provides and what the customer is told it provides. d. what management thinks what customers want and the quality specifications that management develops to provide the service. e. the service that customers receive and the service they want. 17. Sylvia runs a day care centre for the children of professional parents. In order to increase enrolment in her centre, Sylvia lowered tuition but had to increase the number of children that each teacher would care for. Sylvia was surprised when some of the parents pulled their children out of the centre, especially when the tuition had been lowered. This is an example of a gap between: a. what customers want and what management thinks customers want. b. the service quality specifications and the service that is actually provided. c. what the company provides and what the customer is told it provides. d. what management thinks what customers want and the quality specifications that management develops to provide the service. e. the service that customers receive and the service they want. 18. A major airline once advertised that passengers should fly the airline because of the "respect" that airline personnel gave to passengers. However, passengers were always disappointed by the lack of respect that the personnel gave them. This is an example of a gap between: a. what customers want and what management thinks customers want. b. the service quality specifications and the service that is actually provided. c. what the company provides and what the customer is told it provides. d. what management thinks what customers want and the quality specifications that management develops to provide the service. e. the service that customers receive and the service they want.
16. KFC once measured its managers' success by how little chicken was thrown away at the end of the night. Customers who came into stores late at night either had to wait for chicken to be cooked or to settle for chicken that was cooked several hours before. This is an example of a gap between: a. what customers want and what management thinks customers want. b. the service quality specifications and the service that is actually provided. c. what the company provides and what the customer is told it provides. d. what management thinks what customers want and the quality specifications that management develops to provide the service. e. the service that customers receive and the service they want.
17. Sylvia runs a day care centre for the children of professional parents. In order to increase enrolment in her centre, Sylvia lowered tuition but had to increase the number of children that each teacher would care for. Sylvia was surprised when some of the parents pulled their children out of the centre, especially when the tuition had been lowered. This is an example of a gap between: a. what customers want and what management thinks customers want. b. the service quality specifications and the service that is actually provided. c. what the company provides and what the customer is told it provides. d. what management thinks what customers want and the quality specifications that management develops to provide the service. e. the service that customers receive and the service they want.
18. A major airline once advertised that passengers should fly the airline because of the "respect" that airline personnel gave to passengers. However, passengers were always disappointed by the lack of respect that the personnel gave them. This is an example of a gap between: a. what customers want and what management thinks customers want. b. the service quality specifications and the service that is actually provided. c. what the company provides and what the customer is told it provides. d. what management thinks what customers want and the quality specifications that management develops to provide the service. e. the service that customers receive and the service they want.
19. British Airways' first-class passengers sit in a semi-private pear-wood berth that converts into a bed, thus providing more comfort on long flights. This service is an example of the airline's: a. standardized service. b. core service. c. customized service. d. supplementary service. e. component service. 20. You are opening your first hairstyling salon and are concerned with the development of your distribution mix decision. Which of the following reflects the key issue in your distribution decision? a. considerations of the storage of the service b. the development of a long channel of intermediaries c. standardizing the service d. intensity of distribution e. the location of your service for customer convenience 21. You have recently opened a specialty service that cleans, stores, and insures valuable jewellery. Your shop is exquisitely decorated, and the keys to the storage vaults are solid gold. Each time a customer visits the store to make a deposit or withdrawal, free champagne is offered. After each customer contact, the customers is mailed a thank-you note, handwritten on expensive stationery. The thank-you note is a(n): a. skimming strategy b. prestige prompt c. tangible cue d. intangible cue e. pricing strategy 22. Long-distance telephone companies have more expensive rates during peak usage times (weekdays) and discount rates for slower times (evenings and weekends). This illustrates the ____________ pricing objective. a. peak profitability b. operations-oriented c. patronage-oriented d. supply-demand e. revenue-oriented
19. British Airways' first-class passengers sit in a semi-private pear-wood berth that converts into a bed, thus providing more comfort on long flights. This service is an example of the airline's: a. standardized service. b. core service. c. customized service. d. supplementary service. e. component service.
20. You are opening your first hairstyling salon and are concerned with the development of your distribution mix decision. Which of the following reflects the key issue in your distribution decision? a. considerations of the storage of the service b. the development of a long channel of intermediaries c. standardizing the service d. intensity of distribution e. the location of your service for customer convenience
21. You have recently opened a specialty service that cleans, stores, and insures valuable jewellery. Your shop is exquisitely decorated, and the keys to the storage vaults are solid gold. Each time a customer visits the store to make a deposit or withdrawal, free champagne is offered. After each customer contact, the customers is mailed a thank-you note, handwritten on expensive stationery. The thank-you note is a(n): a. skimming strategy b. prestige prompt c. tangible cue d. intangible cue e. pricing strategy
22. Long-distance telephone companies have more expensive rates during peak usage times (weekdays) and discount rates for slower times (evenings and weekends). This illustrates the ____________ pricing objective. a. peak profitability b. operations-oriented c. patronage-oriented d. supply-demand e. revenue-oriented
23. The Xerox corporation stays in touch with its customers with phone calls and greeting cards, periodically sends out needs-assessment questionnaires, and designs new services to meet new needs. This is an example of relationship marketing based on: a. financial bonds b. service delivery c. social bonds d. internal bonds e. structural bonds
8 Discuss global issues in services marketing
24. Many Canadian services industries have the potential for globalization because of their existing competitive advantages. Industries that possess distinct advantages include all of the following EXCEPT: a. insurance b. construction and engineering c. computer microchip manufacturing d. credit card operations e. leisure
25. World Wildlife Federation is a nonprofit organization and therefore has: a. no need to develop an understanding of pricing b. a marketing orientation c. the same organizational structure as profit-making firms d. no impact on nonbuyers e. a need for marketing skills
26. What is one of the consequences of the nonprofit orientation of the Humane Society? a. The Humane Society does not have to worry about revenues and costs. b. The Humane Society will not make as much money as a profit-oriented firm. c. The success of the Humane Society cannot be measured in financial terms. d. The Humane Society is not expected to be as efficient as a for-profit firm. e. The Humane Society's success is based on how much money is donated to it. 27. Cancel Cocaine is a not-for-profit organization with the goal of providing low-cost assistance to cocaine addicts who do not have health insurance. To raise funds, it distributes pamphlets and videos to local businesses and wealthy homeowners, that encourage the donation of money. Cancel Cocaine is most likely to face the target market issue of: a. pressure to adopt undifferentiated segmentation strategies b. lack of bottom-line objectives c. complementary positioning d. apathetic or strongly opposed targets e. benefit complexity and strength 28. A local church formed a committee to provide aid to the homeless. The church applied to the municipal government for funding but was denied when it could not adequately state what the services would include. In this case the committee failed because it had not defined the: a. user market b. product to be offered c. sponsoring organizations d. donor market e. target market 29. A local newspaper has been offering free printing to the Canadian Cancer Society. This could be expected to provide the newspaper with all of the following benefits EXCEPT: a. community approval b. goodwill c. personal satisfaction d. personal contacts e. immediate financial gain 30. The Project Literacy program wants to notify the community about its upcoming fund-raiser rummage sale. As an experienced marketer and director of the program, you plan to visit several local radio and televisions stations to request: a. public service advertising b. non-sponsored advertising c. free telemarketing d. freestanding inserts e. social advertising
26. What is one of the consequences of the nonprofit orientation of the Humane Society? a. The Humane Society does not have to worry about revenues and costs. b. The Humane Society will not make as much money as a profit-oriented firm. c. The success of the Humane Society cannot be measured in financial terms. d. The Humane Society is not expected to be as efficient as a for-profit firm. e. The Humane Society's success is based on how much money is donated to it.
27. Cancel Cocaine is a not-for-profit organization with the goal of providing low-cost assistance to cocaine addicts who do not have health insurance. To raise funds, it distributes pamphlets and videos to local businesses and wealthy homeowners, that encourage the donation of money. Cancel Cocaine is most likely to face the target market issue of: a. pressure to adopt undifferentiated segmentation strategies b. lack of bottom-line objectives c. complementary positioning d. apathetic or strongly opposed targets e. benefit complexity and strength
28. A local church formed a committee to provide aid to the homeless. The church applied to the municipal government for funding but was denied when it could not adequately state what the services would include. In this case the committee failed because it had not defined the: a. user market b. product to be offered c. sponsoring organizations d. donor market e. target market 29. A local newspaper has been offering free printing to the Canadian Cancer Society. This could be expected to provide the newspaper with all of the following benefits EXCEPT: a. community approval b. goodwill c. personal satisfaction d. personal contacts e. immediate financial gain
30. The Project Literacy program wants to notify the community about its upcoming fund-raiser rummage sale. As an experienced marketer and director of the program, you plan to visit several local radio and televisions stations to request: a. public service advertising b. non-sponsored advertising c. free telemarketing d. freestanding inserts e. social advertising
