California State University, Sacramento MKTG Marketing Management, 14e (Kotler/Keller) Chapter 13 Designing and Managing Services 1)Which of the following is a characteristic of a service? It is essentially tangible

California State University, Sacramento

MKTG

Marketing Management, 14e (Kotler/Keller)

Chapter 13 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?
   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

1. 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. 1. inseparability
   2. intangibility
   3. variability
   4. perishability
   5. heterogeneity

16. Which of the following will most help service providers overcome the limitation of intangibility of services when positioning itself?
    1. using brand symbols
    2. sharing services
    3. working with larger groups
    4. cultivating non-peak demand
    5. creating a service blueprint

17. A brand that is action-oriented and causes consumers to engage in physical actions appeals to the       dimension of brand experience.

1. 1. sensory
   2. affective
   3. behavioral
   4. intellectual
   5. social  

18. BRZ Shoes targets the youth market with vibrant, visually appealing ads in modern styles. BRZ ads appeal to the                                                                                                                                                                                                                              

dimension of brand experience.

1. 1. sensory
   2. affective
   3. behavioral
   4. intellectual
   5. social  

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.
    1. sensory
    2. affective
    3. behavioral
    4. intellectual
    5. social

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.
    1. Brand engagement
    2. Brand orientation
    3. Brand elements
    4. Brand loyalty
    5. Brand equity   

21. 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.

22. 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

1. 5. variability   

23. 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   

24. 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

25. 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

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     .
    1. marketing plan
    2. service floor plan
    3. Gantt chart
    4. business plan
    5. service blueprint

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

AACSB: Analytic skills

Difficulty: Easy

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?
    1. It is providing complementary services.
    2. It is increasing peak-time efficiency.
    3. It is using linear pricing.
    4. It is using differential pricing.
    5. It is sharing services.

29. A travel agency offers weekend discounts for car rentals. What can be deduced from this?
    1. It is increasing peak-time efficiency.
    2. It is using differential pricing.
    3. It is using linear pricing.
    4. It is cultivating peak demand.
    5. It is providing complementary services.

30. 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.

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?
    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.

32. Cocktail lounges in restaurants are examples of        .
    1. differential pricing
    2. cultivating nonpeak demand
    3. complementary services
    4. reservation systems
    5. shared services

33. Which of the following is an example of a complementary service?

1. 1. Big department stores usually hire extra staff to handle the rush during the holiday season.
   2. 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.
   3. More paramedics are on hand to assist physicians during times when emergency admissions are highest.
   4. AXA Bank set up automated teller machines so that its customers could avoid standing in line.
   5. Chesterton College hires part-time teachers when enrollment goes up.

34. Walmart has decided to hire extra clerks during the holiday season. It is said to be  .
    1. matching its supply with the existing demand
    2. generating non-peak demand
    3. increasing its customer participation
    4. sharing its services
    5. facilitating for its future expansion

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                                                                                                                                                                                                                              .
    1. increasing its peak-time efficiency
    2. creating nonpeak demand
    3. increasing consumer participation
    4. sharing its services
    5. facilitating its future expansions

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                .
    1. complementary services
    2. perishable services
    3. variable services
    4. unbundled services
    5. shared services

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?
    1. giving customers exclusive primary service packages
    2. redesigning processes to simplify service encounters
    3. using differential pricing and shared services
    4. minimizing service intangibility
    5. working with more customers at the same time

38.                    refers to the normal work of preparing, pricing, distributing, and promoting the service to customers.
    1. Interactive marketing
    2. Internal marketing
    3. External marketing

1. 4. Promotional marketing
   5. Direct marketing

39.                    refers to training and motivating employees to serve customers well.
    1. External marketing
    2. Promotional marketing
    3. Direct marketing
    4. Internal marketing
    5. Interactive marketing

40.                    describes the employees' skill in serving the client.
    1. External marketing
    2. Internal marketing
    3. Promotional marketing
    4. Direct marketing
    5. Interactive marketing

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                                                                                                                                                                         .
    1. promotional marketing
    2. functional quality
    3. technical quality
    4. search qualities
    5. external marketing

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

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

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       .
    1. retailer convenience
    2. profit tiers
    3. psychographic characteristics
    4. social influence
    5. customer preference

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         .
    1. monitor its service systems
    2. empower the customers
    3. retain the patronage of profitable customers
    4. increase consumer participation
    5. standardize the service-performance process

46. The                   rates the various elements of the service bundle and identifies required actions.
    1. company performance analysis
    2. voice of customer measurement
    3. customer factor measurement
    4. importance-performance analysis
    5. customer importance analysis

47. Customers who view a service as homogeneous      .
    1. only patronize a preferred service provider
    2. judge services on the basis of the providers
    3. care less about the provider than about the price
    4. pick a service provider based on functional attributes
    5. opt for the service with the highest price, irrespective of quality

48. Belling Hotels provides complimentary breakfast buffets to all its guests. This is an example of a      .
    1. primary service package
    2. service interface
    3. service support
    4. service frequency
    5. secondary service feature

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?

1. 1. inconvenience
   2. pricing
   3. response to service failure
   4. ethical problems
   5. involuntary switching

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?
    1. service encounter failure
    2. core service failure
    3. response to service failure
    4. involuntary switching
    5. competition  

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?
    1. involuntary switching
    2. competition
    3. response to service failure
    4. service encounter failures
    5. inconvenience

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?
    1. gap between perceived service and expected service
    2. gap between service delivery and external communications
    3. gap between service-quality specifications and service delivery
    4. gap between management perception and service-quality specification
    5. gap between consumer expectation and management perception

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

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?
    1. gap between perceived service and expected service
    2. gap between service delivery and external communications
    3. gap between service-quality specifications and service delivery
    4. gap between management perception and service-quality specification
    5. gap between consumer expectation and management perception

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?
    1. gap between perceived service and expected service
    2. gap between service delivery and external communications
    3. gap between service-quality specifications and service delivery
    4. gap between management perception and service-quality specification
    5. gap between consumer expectation and management perception

56. Which of the following is an example of a gap between service delivery and external communications?
    1. The employees at GBL have been asked to take time to listen to customers, but they must serve them fast as well.
    2. 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.
    3. Customers at LUX appreciate the personalized services the salespeople offer, but do not like the store design.
    4. 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.
    5. When sales dropped, Styx modernized its stores in order to retain customers, but didn't realize that the product quality was the main problem.

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?
    1. gap between service-quality specifications and service delivery
    2. gap between perceived service and expected service
    3. gap between service delivery and external communications
    4. gap between consumer expectation and management perception
    5. gap between management perception and service-quality specification

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?
    1. gap between perceived service and expected service
    2. gap between service delivery and external communications
    3. gap between service-quality specifications and service delivery
    4. gap between management perception and service-quality specification
    5. gap between consumer expectation and management perception

59. The most important determinant of service quality is       which refers to the ability to perform the promised service dependably and accurately.
    1. empathy
    2. assurance
    3. responsiveness
    4. reliability
    5. tangibles  

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?
    1. responsiveness
    2. assurance
    3. empathy
    4. reliability
    5. tangibility  

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?
    1. reliability
    2. responsiveness
    3. assurance
    4. empathy
    5. tangibles  

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.
    1. conscientious
    2. assurance
    3. empathy
    4. reliability
    5. responsiveness

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                                                                                                                        .
    1. assuring
    2. candid
    3. empathetic
    4. reliable
    5. responsive  

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?
    1. reliability
    2. responsiveness
    3. assurance
    4. empathy
    5. tangibles  

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.
    1. immunity
    2. tolerance
    3. reliability
    4. assurance
    5. flexibility

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         .
    1. increasing customer expectations of what the firm will deliver improve the perceptions of overall service quality
    2. increasing customer expectations of what the firm will deliver decrease the perceptions of overall service quality
    3. decreasing customer expectations of what the firm should deliver decrease the perceptions of overall service quality
    4. decreasing customer expectations of what the firm will deliver improve the perceptions of overall service quality
    5. increasing customer expectations of what the firm should deliver improve the perceptions of overall service quality

67. When customers calculate the perceived economic benefits of a continuously provided service in relationship to the economic costs, they are gauging the             .
    1. private equity
    2. brand equity
    3. payment equity
    4. customer-service equity
    5. product-service equity

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.
    1. customer-service interface
    2. product-customer interface
    3. tangible user interface
    4. attentive user interface
    5. crossing-based interface

69. Regular maintenance and repair costs are known as      .
    1. service contract costs
    2. out-of-pocket costs
    3. fixed costs
    4. facilitating services costs
    5. value-augmentation costs

70. The product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the

                  .

1. 1. service warranty cost
   2. out-of-pocket cost
   3. life-cycle cost
   4. facilitating services cost
   5. value-augmentation cost

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              .
    1. payment equity
    2. value-augmenting services
    3. differential pricing
    4. facilitating services
    5. a primary service package

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         .
    1. facilitating services
    2. a primary service package
    3. value-augmenting services
    4. service contracts
    5. service warranties

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           .
    1. a complementary service
    2. payment equity
    3. a service blueprint
    4. differential pricing
    5. an extended warranty

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

75. A service is essentially intangible.

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

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

78. Soap is an example of a pure tangible good.

79. Salt is an example of a hybrid.

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

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

82. All services require the client to be present.

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

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

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

86. Furniture is high in credence qualities.

87. While goods meet personal needs, services meet business needs.

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

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

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

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.

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