Marketing Management: Marketing Management chapter 13 practice test Flashcards


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Designing and Managing Services
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1

Which of the following is a characteristic of a service?
A) It is essentially tangible.
B) It does not result in the ownership of anything.
C) Its production is majorly tied to a physical product.
D) Services are typically produced and consumed at different times.
E) A client's presence is not required for rendering a service.

Page: 356

B

2

Which of the following is an example of a pure tangible good?
A) massage
B) shampoo
C) e-mail
D) restaurant meal
E) air travel

Page: 356

B

3

To which of the following categories of services does a cell phone belong?
A) major service with accompanying minor services
B) major service with accompanying minor goods
C) pure service
D) pure tangible good
E) tangible good with accompanying services

Page: 356

E

4

A computer falls into the ________ category of service mix.
A) pure tangible good
B) tangible good with accompanying services
C) hybrid
D) major service with accompanying minor goods
E) pure service

Page: 356

B

5

Which of the following is an example of a hybrid service?
A) teaching
B) car
C) restaurant meal
D) soap
E) air travel

Page: 357

C

6

A flight with complementary drinks is an example of a ________.
A) major service with accompanying minor goods and services
B) pure service
C) pure tangible good
D) tangible good with accompanying services
E) hybrid

Page: 357

A

7

Which of the following is an example of a pure service?
A) air travel
B) psychotherapy
C) baby oil
D) a laptop
E) a restaurant meal

Page: 357

B

8

Which of the following is true for services?
A) All services are people-based, while goods are equipment-based.
B) Service providers can be both for-profit or nonprofit.
C) All service companies follow the same process to deliver their services.
D) The client's presence is a hindrance during the service delivery process.
E) Service providers develop similar marketing programs for personal services and business services.

Page: 357

B

9

Some services require that the client be present to conduct the service. Which of the following is an example of such a service?
A) pest control
B) furniture polishing
C) surgery
D) car repairing
E) tax services

Page: 357

C

10

Services high in ________ have characteristics that the buyers can evaluate before purchase.
A) search qualities
B) experience qualities
C) credence qualities
D) privacy qualities
E) storing qualities

Page: 357

A

11

Services high in ________ qualities have characteristics that the buyer can evaluate after purchase.
A) privacy
B) experience
C) credence
D) search
E) stock

Page: 357

B

12

Services high in ________ are those services that have characteristics the buyer normally finds hard to evaluate even after consumption.
A) trial qualities
B) search qualities
C) experience qualities
D) privacy qualities
E) credence qualities

Page: 357

E

13

Which one of the following would be considered high in credence qualities?
A) an interior of a house
B) a restaurant
C) a haircut
D) psychotherapy
E) a computer

Page: 357

D

14

Which one of the following is highest in search qualities?
A) a play at a theater
B) a meal at a restaurant
C) a haircut
D) psychotherapy
E) a computer

Page: 357

E

15

Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are bought. This is known as the ________ aspect of services.
A) inseparability
B) intangibility
C) variability
D) perishability
E) heterogeneity

Page: 358

B

16

A brand that is action-oriented and causes consumers to engage in physical actions appeals to the ________ dimension of brand experience.
A) sensory
B) affective
C) behavioral
D) intellectual
E) social

Page: 358

C

17

A brand that is action-oriented and causes consumers to engage in physical actions appeals to the ________ dimension of brand experience.
A) sensory
B) affective
C) behavioral
D) intellectual
E) social

Page: 358

C

18

BRZ Shoes targets the youth market with vibrant, visually appealing ads in modern styles. BRZ ads appeal to the ________ dimension of brand experience.
A) sensory
B) affective
C) behavioral
D) intellectual
E) social

Page: 358

A

19

BRZ Shoes positions itself as a young, adventurous brand. Its logo and brand communication try to give consumers a feeling of excitement and bravery. These ads appeal to the ________ dimension of brand experience.
A) sensory
B) affective
C) behavioral
D) intellectual
E) social

Page: 358

B

20

________ refer(s) to logos, symbols, characters, and slogans that service providers use in order to make the service and its key benefits more tangible.
A) Brand engagement
B) Brand orientation
C) Brand elements
D) Brand loyalty
E) Brand equity

Page: 359

C

21

Which of the following is true regarding services?
A) Services are typically produced, stored, and then consumed.
B) Services are generally low in experience and credence qualities.
C) Service providers develop similar marketing programs for personal services and business services.
D) There is less risk associated with the purchase of services than with the purchase of goods.
E) Provider-client interaction is a special feature of services marketing.

Page: 359

E

22

The fact that services are typically produced and consumed simultaneously is known as the ________ aspect of services.
A) perishability
B) intangibility
C) heterogeneity
D) inseparability
E) variability

Page: 359

D

23

Service quality depends on who provides them, when and where, and to whom. Thus, services are highly ________.
A) inseparable
B) tangible
C) variable
D) perishable
E) intangible

Page: 359

C

24

Which of the following will help a service provider overcome the limits imposed by the inseparability of services?
A) using differential pricing
B) working with larger customer groups
C) providing complementary services
D) concentrating on physical evidence and presentation
E) standardizing the service process

Page: 359

B

25

Which of the following steps will help service firms to increase their quality control?
A) standardizing the service-performance process
B) providing complementary services to customers
C) giving personnel authority in handling situations
D) adopting differential pricing
E) cultivating nonpeak demand

Page: 360

A

26

In order to map out the service process, the points of customer contact, and the evidence of service from the customer's point of view, service firms should develop a ________.
A) marketing plan
B) service floor plan
C) Gantt chart
D) business plan
E) service blueprint

Page: 360

E

27

Jake had an appointment at the doctor's, but couldn't make it on time because he was caught in traffic. By the time he reached the doctor's office, the doctor had already begun with the next patient. This illustrates the ________ of services.
A) variability
B) heterogeneity
C) perishability
D) intangibility
E) homogeneity

Page: 361

C

28

When a theater sells matinee movie tickets at low prices, it aims to shift some demand from the peak to the off-peak period. What is the strategy that the theater is said to be adopting?
A) It is providing complementary services.
B) It is increasing peak-time efficiency.
C) It is using linear pricing.
D) It is using differential pricing.
E) It is sharing services.

Page: 361

D

29

A travel agency offers weekend discounts for car rentals. What can be deduced from this?
A) It is increasing peak-time efficiency.
B) It is using differential pricing.
C) It is using linear pricing.
D) It is cultivating peak demand.
E) It is providing complementary services.

Page: 361

B

30

In which of the following cases is a service provider trying to increase non-peak demand?
A) A fine dining restaurant is promoting a breakfast service in addition to its popular lunch and dinner options.
B) An upscale restaurant has a cocktail lounge where customers can wait until a table is ready.
C) AXA Bank set up automated teller machines so that its customers could avoid standing in line.
D) Chesterton College hired part-time teachers as enrollment increased significantly.
E) Big department stores usually hire extra staff to handle the rush during the holiday season.

Page: 361

A

31

The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote minivacation weekends for non-business customers as well. What is the Caesar Park Hotel trying to do?
A) It is implementing premium pricing.
B) It is trying to cultivate nonpeak demand.
C) It is promoting complementary services.
D) It is putting reservation systems in place.
E) It is implementing differential pricing.

Page: 361

B

32

Cocktail lounges in restaurants are examples of ________.
A) differential pricing
B) cultivating nonpeak demand
C) complementary services
D) reservation systems
E) shared services

Page: 361

C

33

Which of the following is an example of a complementary service?
A) Big department stores usually hire extra staff to handle the rush during the holiday season.
B) The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote minivacation weekends for non-business customers as well.
C) More paramedics are on hand to assist physicians during times when emergency admissions are highest.
D) AXA Bank set up automated teller machines so that its customers could avoid standing in line.
E) Chesterton College hires part-time teachers when enrollment goes up.

Page: 361

D

34

Walmart has decided to hire extra clerks during the holiday season. It is said to be ________.
A) matching its supply with the existing demand
B) generating non-peak demand
C) increasing its customer participation
D) sharing its services
E) facilitating for its future expansion

Page: 361

A

35

Kaya, a chain of skin clinics, requests each new visitor to fill up their own details on a printed form. This is a step in ________.
A) increasing its peak-time efficiency
B) creating nonpeak demand
C) increasing consumer participation
D) sharing its services
E) facilitating its future expansions

Page: 361

C

36

Customers today want separate prices for each service element and they also want the right to select the elements they want. The customers are said to be pressing for ________.
A) complementary services
B) perishable services
C) variable services
D) unbundled services
E) shared services

Page: 362

D

37

Often, a service problem arises from a customer's lack of understanding or ineptitude. Which of the following can help to minimize customer failures?
A) giving customers exclusive primary service packages
B) redesigning processes to simplify service encounters
C) using differential pricing and shared services
D) minimizing service intangibility
E) working with more customers at the same time

Page: 364

B

38

________ refers to the normal work of preparing, pricing, distributing, and promoting the service to customers.
A) Interactive marketing
B) Internal marketing
C) External marketing
D) Promotional marketing
E) Direct marketing

Page: 365

C

39

________ refers to training and motivating employees to serve customers well.
A) External marketing
B) Promotional marketing
C) Direct marketing
D) Internal marketing
E) Interactive marketing

Page: 365

D

40

________ describes the employees' skill in serving the client.
A) External marketing
B) Internal marketing
C) Promotional marketing
D) Direct marketing
E) Interactive marketing

Page: 365

E

41

Susanna wanted to check out a new salon in her locality, so she decided to go for a hair styling session. She was very happy with the way her stylist connected and related with her concerns. She is judging the service based on its ________.
A) promotional marketing
B) functional quality
C) technical quality
D) search qualities
E) external marketing

Page: 365

B

42

In which of the following does a customer respond to the technical quality of a service?
A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.
B) Kathy tries out a new restaurant every week, because she likes to experience the variety.
C) Bill has gone to the same chiropractor for the past fifteen years, because he is friendly and takes the time to listen to Bill.
D) Ray avoids going to the bank as far as possible because the manager is rude and unhelpful.
E) Alex has no interest in theater, but goes often because her best friend loves plays.

Page: 365

A

43

In which of the following does a customer respond to the functional quality of a service?
A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.
B) Kathy tries out a new restaurant every week, because she likes to experience the variety.
C) Bill has gone to the same chiropractor for the past fifteen years, because he is friendly and takes the time to listen to Bill.
D) Ray's mechanic charges high prices for service, but his work is good and worth the price.
E) Alex has no interest in theater, but goes often because her best friend loves plays.

Page: 365

C

44

Firms have decided to raise fees and lower service for those customers who barely pay their way and to coddle big spenders to retain their patronage as long as possible. This is an example of organizing customers by ________.
A) retailer convenience
B) profit tiers
C) psychographic characteristics
D) social influence
E) customer preference

Page: 366

B

45

Charles Schwab's best customers are instantly directed to customer service representatives, while other customers have to wait longer. Charles Schwab is trying to ________.
A) monitor its service systems
B) empower the customers
C) retain the patronage of profitable customers
D) increase consumer participation
E) standardize the service-performance process

Page: 366

C

46

The ________ rates the various elements of the service bundle and identifies required actions.
A) company performance analysis
B) voice of customer measurement
C) customer factor measurement
D) importance-performance analysis
E) customer importance analysis

Page: 367

D

47

Customers who view a service as homogeneous ________.
A) only patronize a preferred service provider
B) judge services on the basis of the providers
C) care less about the provider than about the price
D) pick a service provider based on functional attributes
E) opt for the service with the highest price, irrespective of quality

Page: 368

C

48

Belling Hotels provides complimentary breakfast buffets to all its guests. This is an example of a ________.
A) primary service package
B) service interface
C) service support
D) service frequency
E) secondary service feature

Page: 369

E

49

Although Brenda previously used the U.S. Postal Service because it offered better prices on package shipping, she now uses only FedEx, because it gives her the facility of shipping from any FedEx Kinkos location 24 hours a day. Which of the following factors led to Brenda's customer switching behavior?
A) inconvenience
B) pricing
C) response to service failure
D) ethical problems
E) involuntary switching

Page: 371

A

50

Angela switched to a new hair stylist after getting a bad haircut from her previous stylist. This is an example of which of the following factors leading to customer switching behavior?
A) service encounter failure
B) core service failure
C) response to service failure
D) involuntary switching
E) competition

Page: 371

B

51

Dean recently had a BRZ broadband connection installed. However, the connection was bad and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. Dean switched to Blue Broadband. Which of the following was the cause of Dean's switching behavior?
A) involuntary switching
B) competition
C) response to service failure
D) service encounter failures
E) inconvenience

Page: 371

C

52

MGC Inc. organizes a company-wide picnic once a year. The organizers arranged for the best possible menu thinking that food would be a priority, but the staff were disappointed because the activities were very poorly planned. What kind of a gap is apparent here?
A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception

Page: 373

E

53

Which of the following is an example of a gap between management perception and the service-quality specifications?
A) The college brochure showed state-of-the-art classrooms, but when the visitors walked in, they saw peeling walls and dull lighting.
B) A nurse visits a patient to show care, but the patient interprets this as an indication that something is very wrong.
C) The hotel administrators think that guests want better food, but guests are more concerned with the courtesy of the waiters.
D) A service center manager has asked his subordinates to provide fast service, but has not specified a time for the service to be performed.
E) Customer service representatives are asked to give ample time to each customer, but must serve a minimum of 50 customers a day.

Page: 373

D

54

The customer service representatives at a call center have been asked to handle each call in not more than five minutes. A recent customer survey by the company revealed that customers appreciate it when employees take the time to answer their questions fully and listen to their grievances. What kind of service gap is apparent here?
A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception

Page: 373

D

55

The customer service representatives at a call center have been asked to handle each call in not more than five minutes. At the same time, they have been asked to answer all customer queries in detail and provide appropriate solutions. What kind of service gap is apparent here?
A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception

Page: 373

C

56

Which of the following is an example of a gap between service delivery and external communications?
A) The employees at GBL have been asked to take time to listen to customers, but they must serve them fast as well.
B) Amanda chose to shop at Alison's Fashions because the store's website offered on-the-spot alterations. However, when she did buy a dress, she had to wait a week to get it altered.
C) Customers at LUX appreciate the personalized services the salespeople offer, but do not like the store design.
D) Clearwater Spa attendants are well-trained in massage therapy and the services they offer, but customers rarely return because they don't like the attendants' impersonal service.
E) When sales dropped, Styx modernized its stores in order to retain customers, but didn't realize that the product quality was the main problem.

Page: 373

B

57

Ellen came across an ad for a new restaurant which promised authentic French cuisine. When she ate there, however, she was disappointed to find that the food was mediocre and not very authentic. Which of the following gaps of service performance does this demonstrate?
A) gap between service-quality specifications and service delivery
B) gap between perceived service and expected service
C) gap between service delivery and external communications
D) gap between consumer expectation and management perception
E) gap between management perception and service-quality specification

Page: 373

C

58

When Aaron went to his doctor for his annual checkup, he was asked to undergo a number of tests. Although the doctor assured Aaron that the tests were routine, Aaron thinks that the doctor is hiding a grave problem from him. What kind of a gap is apparent here?
A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception

Page: 374

A

59

The most important determinant of service quality is ________ which refers to the ability to perform the promised service dependably and accurately.
A) empathy
B) assurance
C) responsiveness
D) reliability
E) tangibles

Page: 374

D

60

The customer service representatives at G.K.'s customer service center must know as much about the products as possible, so that they can help the customers solve their difficulties without sounding hesitant or unsure of themselves. Which of the following determinants of service quality are they being asked to demonstrate?
A) responsiveness
B) assurance
C) empathy
D) reliability
E) tangibility

Page: 374

B

61

Josh gets his bike serviced at Dean's Garage even though there's another garage much closer to home. He prefers Dean's because the work is usually done quickly and the staff try to solve the issues with the bike as soon as possible. Dean's Garage excels at which of the following five determinants of service quality?
A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles

Page: 374

B

62

The ________ determinant of service quality refers to the knowledge and courtesy of employees and their ability to convey trust and confidence in the service they provide.
A) conscientious
B) assurance
C) empathy
D) reliability
E) responsiveness

Page: 374

B

63

Leo's manager has asked him and his teammates to demonstrate caring towards customers. They are instructed to learn the customers' names, and use the customers' names while interacting with them. Repeat customers should get special attention, and the team members should remember their preferences and habits. The manager is asking the team to be ________.
A) assuring
B) candid
C) empathetic
D) reliable
E) responsive

Page: 374

C

64

Gloria goes to the same bagel shop every morning because the workers there remember her name and know her order. They always make her feel welcome. The employees of this bagel shop excel at which of the following determinants of service quality?
A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles

Page: 374

D

65

The zone of ________ is a range where a service dimension is deemed satisfactory, anchored by the minimum level consumers are willing to accept and the level they believe can and should be delivered.
A) immunity
B) tolerance
C) reliability
D) assurance
E) flexibility

Page: 374

B

66

According to the dynamic process model, two different types of expectations have opposite effects on perceptions of service quality. One of these is that ________.
A) increasing customer expectations of what the firm will deliver improve the perceptions of overall service quality
B) increasing customer expectations of what the firm will deliver decrease the perceptions of overall service quality
C) decreasing customer expectations of what the firm should deliver decrease the perceptions of overall service quality
D) decreasing customer expectations of what the firm will deliver improve the perceptions of overall service quality
E) increasing customer expectations of what the firm should deliver improve the perceptions of overall service quality

Page: 374

A

67

When customers calculate the perceived economic benefits of a continuously provided service in relationship to the economic costs, they are gauging the ________.
A) private equity
B) brand equity
C) payment equity
D) customer-service equity
E) product-service equity

Page: 375

C

68

A ________ refers to any place at which a company seeks to manage a relationship with a customer, whether through people, technology, or some combination of the two.
A) customer-service interface
B) product-customer interface
C) tangible user interface
D) attentive user interface
E) crossing-based interface

Page: 375

A

69

Regular maintenance and repair costs are known as ________.
A) service contract costs
B) out-of-pocket costs
C) fixed costs
D) facilitating services costs
E) value-augmentation costs

Page: 376

B

70

The product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________.
A) service warranty cost
B) out-of-pocket cost
C) life-cycle cost
D) facilitating services cost
E) value-augmentation cost

Page: 376

C

71

Expensive equipment manufacturers not only install the equipment but also train the staff and undertake the maintenance and repair activities of the equipment. By doing so, they are providing ________.
A) payment equity
B) value-augmenting services
C) differential pricing
D) facilitating services
E) a primary service package

Page: 377

D

72

When Johnson Controls reached beyond its climate control equipment and components business to manage integrated facilities by offering products and services that optimize energy use, it was said to be providing ________.
A) facilitating services
B) a primary service package
C) value-augmenting services
D) service contracts
E) service warranties

Page: 377

C

73

When sellers agree to provide free maintenance and repair services for a specified period of time at a specified contract price, they are offering ________.
A) a complementary service
B) payment equity
C) a service blueprint
D) differential pricing
E) an extended warranty

Page: 377

E

74

The private non-profit sector is a provider of services.

Page: 356

true

75

A service is essentially intangible.

Page: 356

true

76

A service results in ownership on the part of the client.

Page: 356

false

77

The production of a service is never tied to a physical product.

Page: 356

false

78

Soap is an example of a pure tangible good.

Page: 356

true

79

Salt is an example of a hybrid.

Page: 356

false

80

A hybrid consists of unequal parts of goods and services, with services being in the majority.

Page: 357

false

81

A pure service requires a capital-intensive good, but the primary item is a service.

Page: 357

false

82

All services require the client to be present.

Page: 357

false

83

The search qualities of a service are the characteristics the buyer can evaluate before purchase.

Page: 357

true

84

Credence qualities of a service are difficult to evaluate before purchase, but easy to evaluate after consumption.

Page: 357

false

85

The experience qualities of a good or service can be evaluated after purchase.

Page: 357

true

86

Furniture is high in credence qualities.

Page: 357

false

87

While goods meet personal needs, services meet business needs.

Page: 357

false

88

Services have five distinctive characteristics, one of these being "pure service."

Page: 358

false

89

Intangibility with regards to a service means that the service cannot be duplicated across providers.

Page: 358

false

90

Service companies try to demonstrate their service qualities through physical evidence and presentation.

Page: 358

true

91

Inseparability in the context of a service means that there is a provider-client interaction involved as the provider is part of the service.

Page: 359

true

92

A service provider can work with larger groups to get around the limitations of inseparability.

Page: 359

true

93

The quality of services is independent of who provides them.

Page: 359

false

94

Customers want unbundled services, with separate prices for each service element and the right to select the elements they want.

Page: 362

true

95

External marketing describes the training and motivation required by employees in order to properly serve the customers.

Page: 365

false

96

Interactive marketing describes the employees' skill in serving the client.

Page: 365

true

97

Clients judge service not only by its technical quality but also by its functional quality.

Page: 365

true

98

Importance-performance analysis rates the various elements of the service bundle and identifies required actions.

Page: 367

true

99

Customers who view a service as fairly homogeneous care less about the provider than
about the price.

Page: 368

true

100

What the customer expects from a service is called the primary service package.

Page: 369

true

101

Secondary service features are the features that the customer himself adds to the service.

Page: 369

false

102

Pricing has no negative effect on customer loyalty.

Page: 371

false

103

If the expected service falls below the perceived service, customers are disappointed.

Page: 373

false

104

Responsiveness is a company's willingness to help customers and provide prompt service.

Page: 374

true

105

Reliability refers to the company's willingness to help customers and provide them with prompt service.

Page: 374

false

106

The appearance of physical facilities, equipment, personnel, and communication materials are the tangibles that convey service quality to consumers.

Page: 374

true

107

The zone of tolerance for a service is the perceived economic benefits in relationship to the economic costs.

Page: 374

false

108

The payment equity for a service is a range from the minimum level of service consumers are willing to accept to the level they believe can and should be delivered.

Page: 375

false

109

A customer-service interface is defined as any place at which a company seeks to manage a relationship with a customer.

Page: 375

true

110

If the length of the downtime increases, the cost incurred decreases.

Page: 376

false

111

A product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value is known as the product's activity cost.

Page: 376

false

112

Out-of-pocket costs are what the customer spends on regular maintenance and repair costs.

Page: 376

true

113

Value-augmenting services include installation, staff training, maintenance and repair services, and financing.

Page: 377

false