Exam 13: Services Marketing

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Because of service perishability, it is difficult to price services in a manner that smoothes fluctuations in demand.

(True/False)
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Because most services are people-based, they are susceptible to heterogeneity, or variation in demand over time.

(True/False)
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Nonprofit organizations usually have more diverse groups to serve than do for-profit organizations.

(True/False)
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Who judges service quality?

(Multiple Choice)
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Service providers offering discounts to current customers who refer new customers to them are using existing customers as a part of their service promotion strategies.

(True/False)
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As the owner of a services business, you are constantly challenged to maintain consistent quality in your services. This heterogeneity is both a challenge and an opportunity. The opportunity arises because __________________.​

(Multiple Choice)
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The U.S. economy is now referred to as a(n)____________.​

(Multiple Choice)
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All services suffer from heterogeneity. Explain this problem, and discuss different ways that heterogeneity can occur in service delivery.

(Essay)
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Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on

(Multiple Choice)
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Any human or mechanical effort that adds value to a product is called

(Multiple Choice)
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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

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Inseparability also means that customers expect a service to be provided in a certain way by a specific person.

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Marketing as a field of study does not attempt to make value judgments about what a nonprofit organization's goals should be.

(True/False)
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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.

(Multiple Choice)
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State and local government regulations do not affect the pricing of services.

(True/False)
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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. Jason's difficulty in expanding his practice involves the aspect of service called

(Multiple Choice)
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Consumers look closely at service quality when comparing competing services because

(Multiple Choice)
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Supplementary services are the basic services that a customer expects to receive.

(True/False)
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Nonprofit organizations that do not serve and adapt to the needs and wants of their target public may fail.

(True/False)
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Kate, owner of K's Tanning Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty tanning beds from earlier in the week were available on this Saturday afternoon. Kate's problem deals with the ____ characteristic of services.

(Multiple Choice)
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