Nova Southeastern University

MKT 5070

Chapter 11 Designing and Managing Services

1)Which of the following is a characteristic of a service?

1. 1. It is essentially tangible.
   2. It does not result in the ownership of anything.
   3. Its production is majorly tied to a physical product.
   4. Services are typically produced and consumed at different times.
   5. A client's presence is not required for rendering a service.

2. Which of the following is an example of a pure tangible good?
   1. massage
   2. shampoo
   3. e-mail
   4. restaurant meal
   5. air travel
3. To which of the following categories of services does a cell phone belong?
   1. major service with accompanying minor services
   2. major service with accompanying minor goods
   3. pure service
   4. pure tangible good
   5. tangible good with accompanying services

4. A computer falls into the                           category of service mix.
   1. pure tangible good
   2. tangible good with accompanying services
   3. hybrid
   4. major service with accompanying minor goods
   5. pure service

5. Which of the following is an example of a hybrid service?

5. 1. teaching
   2. car
   3. restaurant meal
   4. soap
   5. air travel
6. A flight with complementary drinks is an example of a                               .
   1. major service with accompanying minor goods and services
   2. pure service
   3. pure tangible good
   4. tangible good with accompanying services
   5. hybrid
7. Which of the following is an example of a pure service?
   1. air travel
   2. psychotherapy
   3. baby oil
   4. a laptop
   5. a restaurant meal

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

9. Some services require that the client be present to conduct the service. Which of the following is an example of such a service?
   1. pest control
   2. furniture polishing
   3. surgery
   4. car repairing
   5. tax services
10. Services high in                           have characteristics that the buyers can evaluate before purchase.
    1. search qualities
    2. experience qualities
    3. credence qualities
    4. privacy qualities
    5. storing qualities

11. Services high in                           qualities have characteristics that the buyer can evaluate after purchase.
    1. privacy
    2. experience
    3. credence
    4. search
    5. stock
12. Services high in                           are those services that have characteristics the buyer normally finds hard to evaluate even after consumption.
    1. trial qualities
    2. search qualities
    3. experience qualities
    4. privacy qualities
    5. credence qualities

13. Which one of the following would be considered high in credence qualities?
    1. an interior of a house
    2. a restaurant
    3. a haircut
    4. psychotherapy
    5. a computer  

14. Which one of the following is highest in search qualities?
    1. a play at a theater
    2. a meal at a restaurant
    3. a haircut
    4. psychotherapy
    5. a computer
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.
    1. inseparability
    2. intangibility
    3. variability
    4. perishability
    5. heterogeneity

16. Which of the following is true regarding services?
    1. Services are typically produced, stored, and then consumed.
    2. Services are generally low in experience and credence qualities.
    3. Service providers develop similar marketing programs for personal services and business services.
    4. There is less risk associated with the purchase of services than with the purchase of goods.
    5. Provider-client interaction is a special feature of services marketing. Answer: E

17. The fact that services are typically produced and consumed simultaneously is known as the               aspect of services.
    1. perishability
    2. intangibility
    3. heterogeneity
    4. inseparability
    5. variability

18. Service quality depends on who provides them, when and where, and to whom. Thus, services are highly .
    1. inseparable
    2. tangible
    3. variable
    4. perishable
    5. intangible

19. Which of the following will help a service provider overcome the limits imposed by the inseparability of services?
    1. using differential pricing
    2. working with larger customer groups
    3. providing complementary services
    4. concentrating on physical evidence and presentation
    5. standardizing the service process

20. Which of the following steps will help service firms to increase their quality control?
    1. standardizing the service-performance process
    2. providing complementary services to customers
    3. giving personnel authority in handling situations
    4. adopting differential pricing
    5. cultivating nonpeak demand

21. 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.
    1. variability
    2. heterogeneity
    3. perishability
    4. intangibility
    5. homogeneity  

22. In which of the following cases is a service provider trying to increase non-peak demand?

1. A fine dining restaurant is promoting a breakfast service in addition to its popular lunch and dinner options.
2. An upscale restaurant has a cocktail lounge where customers can wait until a table is ready.
3. AXA Bank set up automated teller machines so that its customers could avoid standing in line.
4. Chesterton College hired part-time teachers as enrollment increased significantly.
5. Big department stores usually hire extra staff to handle the rush during the holiday season.

23. 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 trying to do?
    1. It is implementing premium pricing.
    2. It is trying to cultivate nonpeak demand.
    3. It is promoting complementary services.
    4. It is putting reservation systems in place.
    5. It is implementing differential pricing.