chpt 13 mktg

Services are usually provided through the application of _______ directed at people or objects.
a) tangible and intangible products
b) physical labor
c) human or mechanical efforts
d) ideas and other intangible efforts
e) knowledge and technology
In general, differences between goods and services are determined by the
a) degree of labor intensiveness.
b) type of target market.
c) degree of tangibility.
d) type of provider.
e) degree of consumer contact.
Any human or mechanical effort that adds value to a product is called
a) a service.
b) an intangible.
c) overhead.
d) customer service.
e) service marketing.
Which of the following is not a service product?
a) Maroon 5 concert
b) Flight on Southwest Airlines
c) A 100 percent service satisfaction guarantee
d) Overnight stay at Holiday Inn
e) Dry cleaning of a suit
Service industries account for ____ of the gross domestic product of most developed nations.
a) more than half
b) a small portion
c) approximately 25 percent
d) nearly all
e) nearly three-quarters
Which of the following countries was the world’s first service economy?
a) England
b) United States
c) Sweden
d) Canada
e) Germany
Which of the following products associated with weddings is most likely to be considered a service?
a) Wedding cake
b) Floral arrangements
c) Bridal gown
d) Reception hall
e) String quartet music
Which of the following factors have contributed the least to the growth of services in the U.S. economy?
a) Increased interest in travel and entertainment
b) Increased number of women in the workforce
c) Increased proportion of older people in the United States
d) Increased interest of Americans in fitness and recreation
e) Increased number of high-tech goods
The growth of business services is largely attributed to
a) increases in incomes and living standards.
b) decreases in the consumption of products.
c) increases in governmental expenditures.
d) increases in the complexity and competitiveness of business environments.
e) increases in population.
Which of the following is most likely to be considered a business service?
a) Housecleaning
b) Consulting
c) Haircutting
d) Personal training
e) Alaskan cruise
According to your text, one perspective from which to view services is as a ______ targeted at a(n) ________.
a) sporting event; spectators
b) concert; audience
c) play; actors
d) performance; audience
e) presentation; spectators
Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and
a) labor-intensiveness.
b) orientation toward value.
c) homogeneity.
d) heterogeneity.
e) specialization.
The intangibility aspect of a service means that
a) there is a lack of perceived quality compared to a tangible good.
b) unused capacity cannot be stockpiled or inventoried for later use.
c) consumers may have a problem evaluating service offerings.
d) services are not produced at the same time they are consumed.
e) services are not labor-intensive.
The continuum of tangibility goes from _____ on one end to _____ on the other end.
a) service-dominant products; good-dominant products
b) pure products; pure services
c) rational products; irrational products
d) mostly service goods; mostly product goods
e) easy to see; not easy to see
Which of the following services falls closest to the middle of the tangibility continuum?
a) College education
b) Dinner at the Olive Garden
c) A new Ford Escape
d) A custom built yacht
e) A trip to Brazil
Because practically all marketers provide some services, ___________ typically do not exist in today’s business environment.
a) pure goods
b) pure services
c) customer services
d) service products
e) tangible-dominant products
Hair stylists find it challenging to market their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services?
a) Intangibility
b) Inseparability
c) Perishability
d) Heterogeneity
e) Homogeneity
Personal trainers cannot complete their work without their clients present because of the _______ feature of services.
a) perishability
b) intangibility
c) inseparability
d) heterogeneity
e) tangibility
Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jim’s difficulty in expanding his practice involves the aspect of service called
a) slotting.
b) perishability.
c) credence.
d) inseparability.
e) heterogeneity.
All of the following are elements of the inseparability characteristic of services except that
a) consumers are involved in production.
b) centralized mass production is difficult.
c) consumption and production are simultaneous.
d) many services cannot be performed without the customer being present.
e) services are easy to standardize and control.
The fact the services cannot be inventoried and then sold at a later date is called
a) intangibility.
b) heterogeneity.
c) inseparability.
d) perishability.
e) nonstorability.
Kathy Adkins, owner of Adkins Styling Salon, looks at the day’s appointment schedule and notices that it is completely full. She wishes some of the empty slots from earlier in the week were available on this Saturday afternoon. Her thoughts deal with the ___________ characteristic of services.
a) credence
b) heterogeneity
c) perishability
d) search
e) inseparability
Marketers of services must deal with the challenges of balancing supply and demand and planning for peak and off-peak times. What characteristic of services creates these challenges?
a) Inseparability
b) Customer contact
c) Perishability
d) Heterogeneity
e) Intangibility
Lauren is a concert promoter who works for pop star Justin Timberlake. She works very hard to make sure most of Justin’s concerts are sold out because she understands the concept of perishability, which means
a) because the concert is not tangible, customers will have a difficult time judging its quality in advance.
b) the production of the concert and the consumption of the concert by the fans cannot be separated so tickets must be sold.
c) a high level of interaction will exist between the customers and the musicians, which makes the customers’ presence necessary.
d) that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again.
e) that each concert is different and customers will miss a unique experience if they are not present at the
The more __________ involved with delivering a service, the greater the degree of heterogeneity.
a) mechanical efforts
b) phone contact
c) perishability
d) tangibility
e) human labor
The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ______ of services.
a) heterogeneity
b) customer contact aspect
c) intangibility
d) inseparability
e) perishability
The owner of the Lords and Ladies hair salon has difficulty in standardizing and controlling the quality of service that the customers in his salon receive. This problem illustrates which of the following unique features of service?
a) Intangibility
b) Inseparability
c) Perishability
d) Heterogeneity
e) Marketability
What should marketers do to promote the consistency and reliability of their services most effectively?
a) Limit the number of employees in their organization
b) Train employees and develop standard procedures for dealing with customers
c) Encourage employees to be creative in solving customer issues and complaints
d) Perform as much of the service as possible before the customer arrives
e) Require employees to be shining, happy people all day long
H&R Block, a major tax preparation firm, reported having a problem with its employees being inconsistent in the filing of returns. The firm is experiencing a problem with which of the following characteristics of the service offering?
a) Tangibility
b) Intangibility
c) Perishability
d) Inseparability
e) Heterogeneity
Machinery such as ATMs and online customer services can reduce the ______ that comes from increased contact with human employees.
a) intangibility
b) perishability
c) inseparability
d) heterogeneity
e) tangibility
Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda’s recommendation addresses which of the following service features?
a) Heterogeneity
b) Intangibility
c) Perishability
d) Inseparability
e) Homogeneity
Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as
a) partnerships.
b) repeated customer contact.
c) inseparable clientele.
d) long-term customers.
e) client-based relationships.
The main characteristic of a ___________ is that customers are satisfied to the point that they use a service repeatedly over a period of time.
a) service relationship
b) professional marketer
c) high-contact service
d) heterogeneous service
e) client-based relationship
Client-based relationships are least likely to be developed by
a) towing services.
b) accountants.
c) beauticians.
d) orthodontists.
e) psychiatrists.
Which of the following service providers would typically call their customers “clients”?
a) High school teachers
b) Waiters
c) Lawyers
d) Dry cleaners
e) Nurses
Client-based relationships are most likely to be developed by
a) funeral directors.
b) electricians.
c) installers.
d) doctors.
e) brick layers
When service companies change high-contact services into low-contact services, the
a) service becomes more expensive to deliver.
b) quality of the service declines.
c) service becomes less personalized.
d) time required to deliver the service increases.
e) service becomes less standardized.
The necessary interaction between service provider and customer that allows a service to be delivered is called
a) customer contact.
b) service exchange.
c) marketing.
d) relationship marketing.
e) service contact.
Which of the following is a low-contact service?
a) Childcare
b) Website design
c) Health care
d) Manicure
e) Legal services
The level of interaction necessary between a customer and service provider in order to complete a service is called
a) tangibility.
b) client-based relationships.
c) customer contact.
d) consumer interaction.
e) heterogeneity.
Which of the following is the best example of a high-contact service?
a) Appliance repair
b) Newspaper delivery
c) Dog training
d) Interior decorating
e) Plastic surgery
Which of the following statements about customer contact in services marketing is false?
a) Service employees are important in creating satisfied customers.
b) High-contact services are less expensive to deliver because they are typically equipment-based.
c) The main principle of customer contact is that satisfied employees lead to satisfied customers.
d) Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact services.
e) Employee training programs are an effective way to ensure good customer contact and reduce problems.
If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ___________ services.
a) core
b) supplementary
c) bundled
d) business
e) complimentary
A service is usually offered as part of a bundled package of services with a core service and one or more ________ services.
a) basic
b) tangible
c) supplementary
d) auxiliary
e) other core
A first class airline ticket offers a ____ service of transportation as well as _______ services of drink and food service, special boarding rights, and extra customer service.
a) primary; secondary
b) core; supplementary
c) bundled; extra
d) complementary; main
e) major; minor
The heterogeneity characteristic of services provides marketers with tremendous opportunity to
a) customize their services to meet unique individual needs.
b) hold down the cost of providing services to customers.
c) create standardized packages that will appeal to many customers.
d) offer the same service as all of their competitors.
e) develop relationship marketing with their customers.
Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of
a) perishability.
b) heterogeneity.
c) inseparability.
d) intangibility.
e) customer contact.
Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ______ aspect of services.
a) heterogeneity
b) perishability
c) customer contact
d) intangibility
e) inseparability
Clean, sharp looking employees with appropriate uniforms help assure customers about service quality and therefore address the _____ of services.
a) intangibility
b) perishability
c) tangibility
d) inseparability
e) heterogeneity
If a nonsmoker dines in a restaurant without a no-smoking section, then the overall quality of service experienced by the nonsmoking customer probably declines. This is an example of which of the following service characteristics?
a) Perishability
b) Inseparability
c) Heterogeneity
d) Intangibility
e) Homogeneity
In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to
a) deliver on these promises and risk financial losses and the success of the company.
b) promise less than they can actually deliver and keep customers away.
c) make the appearance of their facilities consistent with their promises to customers.
d) promise too much and cause customer expectations beyond what they can deliver.
e) make the quality of their services too tangible in the eyes of the customer.
A sign in a doctor’s office waiting room says “Please be courteous of the others waiting with you.” The doctor’s office is trying to positively influence the _______ aspect of services.
a) tangibility
b) perishability
c) inseparability
d) customer contact
e) heterogeneity
Prudential Insurance uses “the rock” symbol to communicate stability and security to customers. This is Prudential’s attempt to help customers better understand its services by
a) emphasizing tangible cues in promoting the service.
b) using word association.
c) personalizing the selling of the service.
d) utilizing publicity techniques to enhance the service.
What are the three primary ways that marketers deliver services?
a) Over the phone, online, or in-person
b) Continuously, periodically, or on demand
c) At the customer’s home, in-person, or by telecommunications
d) Through service centers, delivery vehicles, or the mail
e) Service facilities, customer’s home, or from a distance
The marketing channels for services are usually
a) complex and multifaceted.
b) characterized by two to three intermediaries.
c) dependent on the geographical location of the consumer.
d) determined by the customer.
e) direct from provider to customer.
Using appointments or reservations for scheduling delivery of services is an attempt to address the ___________ characteristic of services.
a) perishability
b) intangibility
c) heterogeneity
d) inseparability
e) homogeneity
By installing ATMs, banks have increased production capacity and reduced the number of personnel. This results in a decrease in
a) perishability.
b) intangibility.
c) customer contact.
d) inseparability.
e) customer service.
Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and
a) distribution.
b) tangible elements.
c) management expectations.
d) price.
e) customer expectations.
Symbols such as the Travellers’ Financial Services umbrella are designed to help customers overcome the ________ of services.
a) heterogeneity
b) unpredictability
c) inseparability
d) intangibility
e) perishability
Transamerica’s pyramid-shaped building in San Francisco is used to symbolize strength, security, and reliability. This type of promotion is designed to address the ___________ characteristic of services.
a) intangibility
b) perishability
c) heterogeneity
d) inseparability
e) customer service
Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on
a) news stories.
b) a webpage.
c) word of mouth.
d) newspaper ads.
e) television ads.
Production and consumption of services must simultaneously occur due to the _____ characteristic of services.
a) intangibility
b) heterogeneity
c) customer contact
d) perishability
e) inseparability
An American West Airlines flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty American West flight from Chicago to Phoenix. This is an example of what kind of service pricing?
a) Bundled
b) Demand-based
c) Supply-based
d) Upfront
e) Customer-based
Piano teachers, tutors, attorneys, and consultants are most likely to price their services based on
a) functions performed.
b) time.
c) objectives accomplished.
d) demand.
e) combination pricing.
Demand-based pricing most closely relates to the _____ of services.
a) perishability
b) intangibility
c) heterogeneity
d) customer contact aspect
e) inseparability
Service activities are time-dependent, meaning that the service must be provided at a point in time when customers want to use it. This point in time is also known as
a) peak demand.
b) preferred demand.
c) off-peak demand.
d) high-contact time.
e) high intensity time.
Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even unlimited night and weekend minutes. This is an example of
a) time-based pricing.
b) off-peak demand.
c) demand-based pricing.
d) time dependence pricing.
e) bundled costing.
When a theater entices customers to see movies during the daytime by offering tickets at a reduced price, it is trying to solve the services marketing problem of
a) inseparability.
b) intangibility.
c) customer contact.
d) off-peak demand.
e) heterogeneity.
Any service provider that offers time-sensitive services receives most of its revenue during
a) peak demand.
b) heavy use time.
c) the off-season.
d) preferred demand.
e) customer contact time
Which of the following service providers are most likely to use demand-based pricing?
a) Dentists
b) Lawyers
c) Doctors
d) Hair stylists
e) Cruise ships
Which of the following service providers are most likely to bundle-price their services?
a) Cable television companies
b) Retail stores
c) Airlines
d) Theaters
e) Doctors
Safe Auto Insurance advertises “minimum coverage for minimum budgets” for its automobile insurance. Which of the following best describes Safe Auto’s approach?
a) Customers often use price as an indicator of quality, and Safe wants to be seen as a low-quality provider.
b) This type of advertising makes insurance more tangible to the customer.
c) Safe wants to reassure customers that they provide the highest level of service quality available.
d) Because market conditions limit prices on auto insurance, Safe uses this approach to gain customers.
e) For some services, customers look for the low-cost provider, which is what Safe claims to be.
Janet sets up her new interior decorating business and advertises her expertise in high-quality draperies and other window treatments. One of her first customers is extremely dissatisfied with Janet’s work, so Janet redoes the job at her own expense because she knows how powerful _____ is (are) for services and wants to stay in business.
a) service expectations
b) word-of-mouth communication
c) zones of tolerance
d) customer perceptions
e) experience qualities
Offering pet owners who recommend Prize Pet Grooming to a friend $10 off their next grooming bill is a program designed primarily to
a) increase perceptions of service quality.
b) elevate expectations.
c) encourage word-of-mouth communication.
d) standardize the service offering.
e) increase advertising effectiveness.
In most service industries, customer-contact employees are
a) valued as the most important employees in the organization.
b) the best trained employees in the organization.
c) the lowest-paid and least-trained employees.
d) managers and other supervisory level employees.
e) moderately paid personnel confined to strict dress codes.
In service marketing, the most important link to the customer is
a) effective advertising.
b) good word-of-mouth communication.
c) well-trained contact employees.
d) the tangible aspects of the service.
e) exceptional service quality.
The two levels of expectations that consumers generally have about services are
a) acceptable and unacceptable.
b) desired and undesired.
c) reliable and unreliable.
d) acceptable and desired.
e) tolerable and desired.
Surveys, focus groups, and customer comment cards are all methods used by service companies to
a) understand customer needs and expectations.
b) set service quality specifications.
c) establish guidelines for employee performance.
d) manage service expectations.
e) control service intangibility.
Great service allows you to compete o ___ rather than price
Great dervice ____ your business
great service solidifes customer ____
Value – _+_+_/ _+_
quality, entertainment,intangibles/price,time
Value= What I __/ What I __
why is service leadership required?
high discretionary content of most service jobs
what are the four qualites of service leadership
vision- focus
belief in other (coach rather than boss)
Love of the business
What are the three ways you can cultivate service leadership?
Hire the right people
Emphasize the trust factor
Invest in employee sucess
The customer defines service ___
what are the three essential components of building a service quality information system?
Transactional surverys
total market surveys
employee surveys
strategy defines the company’s “_ _ _”
reason for being
what are the 4 things that you like least about NACS
value for money
speed of checkout
convinent hours
used books-liberal buy back
what are the 2 things that we think the NACS preforms well at
friendly, knowledgable staff
when the bell rings, there had better be some supper is ___ principle
service ___ is an attitude
Reliability in service business means that customers are buying a?
Service delivery is subject to?
Service reliability happens through the __ ___
right systems
what is the second essential componenet of service?
If you perceive that there are four possible ways which a procedure can go wrong and circumvent these, then a fifth way, unprepared for, will promptly develop is?
Murphys Sixth law
All skill is in vain when an
angel pees in the touchhole
of your musket.
is an example of?
law of divine intervention
Be prepared to do the job right the first time, be prepared to do it VERY right the second
what are the three outcomes of dissatisfaction?
customer complains and is statisfied with recovery, complains and is not satisfied, does not complain and remains unsatisfied.
what are the 6 principles of recovery
never argue with a customer
make it easy to complain
resolve at the point of contact
resolve quickly
emphasize a fair solution
repair the system
what are the two objectives of recovery
restore the customers confidence
improve the service system
fairness is not the same as
fairness is defined by the
fairness is particulary important for “_ _ ” services
black box
what are the three table stakes for any business
what top ten compaint is
( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot)

blantant unfairness, such as selling unneeded service or purposley providing fake, low ball cost estimates

true lies
what top ten complaint is
( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot)

Assuming customers are stupid or cheaters and treating them harshly, or disrespectfully.

red alert
what top ten service compaint is
( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot)

a Careless, mistake-prone service. Service providers who do not show up as promised.

broken promise
what top ten service complaint is
( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot)

Powerless employees who lack the authority to solve the problem.

I just work here
what top ten service complaint is
( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot)

Waiting to be served in lines made longer because some of the checkout lanes or service counters are closed.

the big wait
what top ten service compaint is
( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot)

Impersonal, emotionless, no-eye-contact, going – through- the-motions, non-service.

automatic piliot
what top ten service complaint is
( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot)

Failing to communicate with customers who are anxious to hear how a service problem will be resolved.

suffereing in silence
what top ten service complaint is
( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot)

Employees unwilling to make any extra effort to help

Dont ask
what top ten service compaint is
( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot)

-Clueless employees who do not know the answers to customers’ common questions.

light on, no one home
what top ten service complain is
( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot)

Employees visit with each other or conduct personal business while the customer waits.

misplaced priorities