Question 1

Even though the growth of the service sector worldwide has been sluggish in the past decade,the service sector now accounts for approximately one-fourth of the gross domestic product in the United States.

Accepted Answer

A) True 
 B)False

Question 2

James recently went to a new health clinic because he had a sore throat that wouldn't go away. He was not familiar with this clinic and was a bit surprised when the doctor came in and was wearing blue jeans,a flannel shirt,and tennis shoes. The doctor and nurse took proper care of James,but it seemed strange to him that the doctor was dressed that way. Which component of service quality does this illustrate?

Accepted Answer

A)  reliability 
B)  responsiveness 
C)  assurance 
D)  empathy 
E)  tangibles

Question 3

Chesapeake Energy Corporation was recognized by Fortune Magazine as one of the top companies to work for. Fortune mentioned that Chesapeake Energy provides its employees many perks,including the opportunity to take free scuba-diving lessons in Chesapeake's on-site Olympic-size pool.This example illustrates relationship marketing in action.

Accepted Answer

A) True 
 B)False

Question 4

TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home.TeamBuilds' _____ service is improved work team relationships.

Accepted Answer

A)  primary 
B)  core 
C)  niche 
D)  supplementary 
E)  foundation

Question 5

Name and briefly define the three categories of pricing objectives for services.

Accepted Answer

The answer of Name and briefly define the three categories...

Question 6

Because many services involve a process of continuous interaction between the service organization and the customer,_____ marketing is an important strategy.

Accepted Answer

A)  interactive 
B)  relationship 
C)  patronage 
D)  nonprofit 
E)  affiliation

Question 7

After years of expansion,Starbucks recently closed 600 of its poorer performing stores.Many of the stores closed were near other Starbucks locations.In those areas management felt that the company had too many outlets,which was boosting the company's cost unnecessarily.Decisions concerning the number of outlets are a part of the _____ strategy of service organizations.

Accepted Answer

A)  distribution 
B)  promotion 
C)  production 
D)  product 
E)  demand/supply

Question 8

The level of relationship marketing that is least likely to be effective in the long term because its advantage is easily imitated by other firms is based on:

Accepted Answer

A)  personal communications 
B)  social bonds 
C)  service delivery heuristics 
D)  pricing incentives 
E)  structural bonds

Question 9

Purchasing your clothes online can be fun as you can shop from companies around the world without leaving your home.You can also often get great prices on the items you purchase.However,you could get stuck with a product that doesn't look anywhere as nice in reality as it does on your computer screen.Land's End takes this concern away with their "Guaranteed Period" promise.Land's End will happily return your purchase price on any item you purchase for any reason.If Land's End ever failed to follow-through with this promise,it would represent a gap between:

Accepted Answer

A)  what management thinks customers want and the quality specifications that management develops to provide the service 
B)  what the company tells the customer it provides and what is actually provided 
C)  service quality specifications and employee training 
D)  what customers want and what management thinks customers want 
E)  none of these

Question 10

The Monroe Job Training for the Disabled program wants to notify the community about its upcoming rummage sale.As an experienced marketer and director of the program,you plan to visit several local radio and televisions stations to request:

Accepted Answer

A)  cooperative advertising 
B)  nonsponsored advertising 
C)  primary advertising 
D)  public service advertising 
E)  nonprofit advertising

Question 11

Got Milk?
Just because consumers live in a big city doesn't mean they can't have fresh milk right from the farm. Many dairy farms, such as Oberweis Dairy and Smith Brothers Farms, offer home delivery of fresh milk, just like in the old days. While some of these services are established and have been around since the 1920s, New York City-based Manhattan Milk started up in 2008. For $20 or more, depending on what is ordered, consumers anywhere in Manhattan can enjoy organic milk, butter, yogurt, and cheese from Pennsylvania Amish farms and eggs from Vermont. Unlike most store-bought milk, theirs is unhomogenized and free from hormones typically given to cows to produce more milk.
-Refer to Got Milk? Oberweis Dairy has been in business for over 80 years,and customers trust this provider. Which component of service quality does this trust exemplify?

Accepted Answer

A)  creativity 
B)  assurance 
C)  empathy 
D)  tangibility 
E)  reliability

Question 12

The Ritzy Canine
The Ritzy Canine Carriage House looks like several other Manhattan boutique hotels. The lobby features a crystal chandelier, brocade-patterned wallpaper, gold-framed mirrors, and antique chairs. Room service and salon service are available as well as exercise facilities. There is also a masseuse on staff. Dogs are the only guests, and hopefully they appreciate the DVD player in the $175-a-night Windsor suite. Without extras, a one-day visit will cost $40 to $50, depending on the size of the dog. The Ritzy Canine is a high-end doggy "hotel" and "spa." In a world where people work long hours and take longer to settle down, they do not mind spending money on their dogs.
-Refer to The Ritzy Canine.Before leaving a dog at the Ritzy Canine,its owner would more than likely inspect the facilities and use _____ qualities to evaluate the establishment.

Accepted Answer

A)  experience 
B)  credence 
C)  investigative 
D)  search 
E)  standardized

Question 13

Grizzly Watching
Have you ever wanted to spend your vacation up close and personal with a grizzly bear? Great Bear Nature Tours is one of the many lodges that provide that service. Great Bear, located in British Columbia, is actually a lodge built on a floating barge. The lodge can handle up to ten guests in what the Wall Street Journal calls rustic but upscale accommodations in double rooms that begin at a rate of $1,418 per night, including bear watching tours.
Although bear hunting still brings tourists to Canada, bear watching is a growing attraction. On a bear watching tour the guide, who is often unarmed, will take you close enough to get a good view of a grizzly in the wild. In fact, one of the favorite tours allows you to watch bears swipe at salmon as they swim upstream to spawning grounds.
While bear watching sounds dangerous, bear attacks are not common. However, just to be careful many tour guides carry pepper spray. Tour guides say they are able to keep tour members safe by watching the bears and reading their body movements.
-Refer to Grizzly watching.The height of the bear-watching season is in the fall during salmon spawning season.Tourists love to watch bears capturing salmon as the salmon swim upstream to spawn.If a bear watching tour lodge raises its prices during this season it is practicing _____.

Accepted Answer

A)  Revenue-oriented pricing 
B)  Operations-oriented pricing 
C)  Target market pricing 
D)  Patronage-oriented pricing 
E)  Cumulative pricing

Question 14

Heterogeneity of services means the quality of a service may not be consistent.

Accepted Answer

A) True 
 B)False

Question 15

Greta,the owner of House Mouse Cleaning Services,must be physically present when she cleans a house or office.The need for her presence as the service is performed is an example of the intangibility of services.

Accepted Answer

A) True 
 B)False

Question 16

Management-labor mediation,child care,and college preparation classes are all services that are produced and consumed at the same time.All of these services exhibit the service characteristic of:

Accepted Answer

A)  inseparability 
B)  intangibility 
C)  heterogeneity 
D)  perishability 
E)  variability

Question 17

Which component of service quality represents the ability to provide prompt service?

Accepted Answer

A)  reliability 
B)  responsiveness 
C)  assurance 
D)  empathy 
E)  tangibles

Question 18

Got Milk?
Just because consumers live in a big city doesn't mean they can't have fresh milk right from the farm. Many dairy farms, such as Oberweis Dairy and Smith Brothers Farms, offer home delivery of fresh milk, just like in the old days. While some of these services are established and have been around since the 1920s, New York City-based Manhattan Milk started up in 2008. For $20 or more, depending on what is ordered, consumers anywhere in Manhattan can enjoy organic milk, butter, yogurt, and cheese from Pennsylvania Amish farms and eggs from Vermont. Unlike most store-bought milk, theirs is unhomogenized and free from hormones typically given to cows to produce more milk.
-Refer to Got Milk? Manhattan Milk is an example of a:

Accepted Answer

A)  retail operation 
B)  service 
C)  wholesale intermediary 
D)  facilitator 
E)  manufacturer

Question 19

The Ritzy Canine
The Ritzy Canine Carriage House looks like several other Manhattan boutique hotels. The lobby features a crystal chandelier, brocade-patterned wallpaper, gold-framed mirrors, and antique chairs. Room service and salon service are available as well as exercise facilities. There is also a masseuse on staff. Dogs are the only guests, and hopefully they appreciate the DVD player in the $175-a-night Windsor suite. Without extras, a one-day visit will cost $40 to $50, depending on the size of the dog. The Ritzy Canine is a high-end doggy "hotel" and "spa." In a world where people work long hours and take longer to settle down, they do not mind spending money on their dogs.
-Refer to The Ritzy Canine.Which category of service processing is used at this doggy care center?

Accepted Answer

A)  possession 
B)  mental stimulus 
C)  physical stimulus 
D)  information 
E)  people

Question 20

Which category of service processing takes place when the service is directed at a customer?

Accepted Answer

A)  people processing 
B)  possessions processing 
C)  information processing 
D)  mechanical processing 
E)  personal processing

Exam 12: Services and Nonprofit Organization Marketing

Even though the growth of the service sector worldwide has been sluggish in the past decade,the service sector now accounts for approximately one-fourth of the gross domestic product in the United States.

TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home.TeamBuilds' _____ service is improved work team relationships.

Name and briefly define the three categories of pricing objectives for services.

Because many services involve a process of continuous interaction between the service organization and the customer,_____ marketing is an important strategy.

The level of relationship marketing that is least likely to be effective in the long term because its advantage is easily imitated by other firms is based on:

The Monroe Job Training for the Disabled program wants to notify the community about its upcoming rummage sale.As an experienced marketer and director of the program,you plan to visit several local radio and televisions stations to request:

Heterogeneity of services means the quality of a service may not be consistent.

Greta,the owner of House Mouse Cleaning Services,must be physically present when she cleans a house or office.The need for her presence as the service is performed is an example of the intangibility of services.

Management-labor mediation,child care,and college preparation classes are all services that are produced and consumed at the same time.All of these services exhibit the service characteristic of:

Which component of service quality represents the ability to provide prompt service?

Which category of service processing takes place when the service is directed at a customer?