Test #3 Chapter 12

Question 1 of 27

1

Trust Us Insurance's tagline is “You're in safe hands with Trust Us," and Serenity Life Insurance uses a rock as its trade symbol because it wants to convey stability. What type of promotion strategy are these companies using?

Select one of the following:

Engaging in post purchase communication
Creating a strong organizational image
Using personal information sources
Adopting standardization

Explanation

Question 2 of 27

1

At Great Bear Nature Tours, the owners are careful to treat both guests and employees very well. In fact, most employees feel that they are treated like privileged guests at work. This is an example of:

Select one of the following:

green marketing.
social marketing.
nonprofit marketing.
internal marketing.

Explanation

Question 3 of 27

1

Marketing services is more challenging than marketing goods because:

Select one of the following:

of the unique characteristics of services, which includes intangibility, inseparability, heterogeneity, and perishability.
consumers and business users can easily evaluate the quality of services.
services tend to exhibit less experience and credence qualities.
all service providers compete against each other, but firms selling tangible goods complement each other.

Explanation

Question 4 of 27

1

Premium boutique hotels encourage employees to develop strong, personal relationships with guests. Such hotels offer value-added services that are not available at traditional hotels. At which level of relationship marketing are these hotels operating?

Select one of the following:

Level 1
Level 2
Level 3
Level 4

Explanation

Question 5 of 27

1

Which of the following is a difference between private-sector organizations and nonprofit organizations?

Select one of the following:

Private-sector organizations often adopt undifferentiated strategies, while nonprofit organizations adopt differentiated strategies.
Private-sector organizations must complement the efforts of nonprofit organizations, while nonprofit organizations must compete with the efforts of private-sector organizations.
Private-sector organizations prioritize market segments that are most likely to respond to particular offerings, while nonprofit organizations target those who are apathetic about receiving their services.
Private-sector organizations often market complex behaviors or ideas, while nonprofit organizations do not market complex behaviors or ideas.

Explanation

Question 6 of 27

1

Which of the following is a difference between people-processing and possession-processing services?

Select one of the following:

People-processing services refer to services that use manual labor directed at customer's assets, while possession-processing services refer to services that use technology directed at customer's assets.
People-processing services require customers to enter the service factory, while possession-processing services typically do not require the presence of the customer in the service factory.
People-processing services emphasize on supplementary services, while possession-processing services greatly reduce supplementary services.
People-processing services occur when services are directed at customers' physical belongings, while possession-processing services occur when services are directed at a customer.

Explanation

Question 7 of 27

1

A bundled price is preferable when:

Select one of the following:

different customers have different needs.
firms customize services for each individual customer.
consumers dislike having to pay extra for every part of a service.
firms want to charge for their supplementary services separately.

Explanation

Question 8 of 27

1

Which of the following is a limitation of the revenue-oriented pricing approach?

Select one of the following:

High tax rates
Difficulty in determining costs
High economies of scale
Difficulty in communicating to consumers

Explanation

Question 9 of 27

1

Cashcrash.com is an online money transfer company that provides consumer remittance facilities. With the Cashcrash bank deposit service, consumers can send money directly to bank accounts in several countries around the world. Thus, Cashcrash.com would be classified as a:

Select one of the following:

good.
tangible product.
service.
tangible resource.

Explanation

Question 10 of 27

1

Which of the following is an example of post purchase communication?

Select one of the following:

An airline hires an actor to film a series of commercials touting the airline's service.
An insurance company designs a new “umbrella" logo to indicate that its customers are well protected.
A tax return preparer offers a 20% discount for any customers who use the service in January.
A hotel sends an email survey to its guests a week after their stay, asking them to comment on the quality of the service they received.

Explanation

Question 11 of 27

1

Which of the following is true of goods?

Select one of the following:

They can be produced in a centralized location and be consumed in decentralized locations.
They tend to be less tangible than services.
They need to be produced, sold, and consumed at the same time as they are highly perishable.
They tend to be less standardized and uniform than services.

Explanation

Question 12 of 27

1

According to the gap model of service quality, which of the following is true of gap 1?

Select one of the following:

It results from a lack of understanding or a misrepresentation of customers' needs, wants, or desires.
It results from management's inability to translate customers' needs into delivery systems within the firm.
It can result in misleading or deceptive advertising campaigns promising more than the firm can deliver.
It can be corrected by training employees so that they know what management expects and encouraging teamwork.

Explanation

Question 13 of 27

1

Which of the following is true of mass customization?

Select one of the following:

It results in a lower cost to firms when compared to standardized services.
It results in giving each customer whatever he or she asks for.
It is useful only to service firms and not to manufacturing firms.
It is based on the tenet that the needs, wants, or desires of all customers are the same.

Explanation

Question 14 of 27

1

Which of the following is true of supplementary services?

Select one of the following:

They are the most basic benefit the customer is buying.
They are usually emphasized to create a competitive advantage.
They are services mandatorily required by the government.
They are services that compete with the core service.

Explanation

Question 15 of 27

1

Trina is a physical fitness trainer who tries to create fitness routines based on her understanding of the customers and their specific fitness goals. Which of the following service processes does this illustrate?

Select one of the following:

Information processing
Possession processing
Mental stimulus processing
People processing

Explanation

Question 16 of 27

1

Which of the following is true of operations-oriented pricing?

Select one of the following:

It involves maintaining a fixed price for a product or a service throughout the year.
It focuses on maximizing the surplus of income over costs.
It seeks to match supply and demand by varying prices.
It tries to maximize the number of customers using a service by improving its quality.

Explanation

Question 17 of 27

1

David and Kathy like to take their young son, Chaz, to Moe's Southwestern Grill for lunch after church every Sunday. While they like to eat at Moe's at any time, Sunday is particularly good because it is “kids eat free" day at the restaurant. Until Moe's began this attractive offer, Sundays were very slow. Now it is one of the busiest days of the week for the restaurant. This strategy was a way to contend with the service characteristic of:

Select one of the following:

variability.
perishability.
intangibility.
inseparability.

Explanation

Question 18 of 27

1

Business Essentials is a support group that consists mostly of young women who offer tips on budgeting and debt relief. Their goal is to help women break financial ceilings. Business Essentials is providing a(n) _____ that is helpful to women who want to be financially savvy.

Select one of the following:

asset
tangible product
service
tangible resource

Explanation

Question 19 of 27

1

_____ refers to the inability of services to be stored, warehoused, or inventoried.

Select one of the following:

Variability
Irreversibility
Heterogeneity
Perishability

Explanation

Question 20 of 27

1

_____, one of the components on which customers evaluate service quality, refers to the knowledge and courtesy of employees and their ability to convey trust.

Select one of the following:

Empathy
Responsiveness
Assurance
Reliability

Explanation

Question 21 of 27

1

Green & Gold is a coffee chain based in the United States. Its management has been trying to refocus on the things that originally made the company successful. For example, Green & Gold stores across the United States recently shut down for a short period of time for retraining, and the company has worked to make sure that customers can smell the freshly ground coffee aroma when they pass by the store. However, when questioned, consumers tend to emphasize on the need for pricing incentives such as a frequent purchasing program. According to the _____, there may be a difference between what customers want and what Green & Gold management thinks customers want.

Select one of the following:

gap model of service quality
service pyramid
four dimensions of service quality
service paradigm

Explanation

Question 22 of 27

1

Silver Line Electronics Inc. uses technology to produce laptops and other gadgets in bulk based on each individual client’s specific needs and requirements. This is an example of _____.

Select one of the following:

standardization
reverse engineering
benchmarking
mass customization

Explanation

Question 23 of 27

1

The _____ of a service most clearly reveals the relationship between its target market strategy and its distribution strategy.

Select one of the following:

tangibility
location
customization
separability

Explanation

Question 24 of 27

1

_____ refers to the follow-up activities that a service firm might engage in after a customer transaction.

Select one of the following:

Need recognition
Post purchase communication
Collective bargaining
Sales prospecting

Explanation

Question 25 of 27

1

_____ focuses on maximizing the surplus of income over costs.

Select one of the following:

Operations-oriented pricing
Revenue-oriented pricing
Patronage-oriented pricing
Quality-oriented pricing

Explanation

Question 26 of 27

1

Car Bar allows its customer to rent a car at $10 per day on weekdays, at $15 per day on weekends, and at $20 per day exclusively during the holiday season. This pricing strategy helps the company match the supply and demand for its cars. This is an example of _____.

Select one of the following:

operations-oriented pricing
revenue-oriented pricing
patronage-oriented pricing
quality-oriented pricing

Explanation

Question 27 of 27

1

When a firm develops structural bonds with its customers by offering unique value added services, it is operating at _____ of relationship marketing.

Select one of the following:

level 4
level 3
level 2
level 1

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Chapter Review

Test #3 Chapter 12

Question 1 of 27

Trust Us Insurance's tagline is “You're in safe hands with Trust Us," and Serenity Life Insurance uses a rock as its trade symbol because it wants to convey stability. What type of promotion strategy are these companies using?

Select one of the following:

Explanation

Question 2 of 27

At Great Bear Nature Tours, the owners are careful to treat both guests and employees very well. In fact, most employees feel that they are treated like privileged guests at work. This is an example of:

Select one of the following:

Explanation

Question 3 of 27

Marketing services is more challenging than marketing goods because:

Select one of the following:

Explanation

Question 4 of 27

Premium boutique hotels encourage employees to develop strong, personal relationships with guests. Such hotels offer value-added services that are not available at traditional hotels. At which level of relationship marketing are these hotels operating?

Select one of the following:

Explanation

Question 5 of 27

Which of the following is a difference between private-sector organizations and nonprofit organizations?

Select one of the following:

Explanation

Question 6 of 27

Which of the following is a difference between people-processing and possession-processing services?

Select one of the following:

Explanation

Question 7 of 27

A bundled price is preferable when:

Select one of the following:

Explanation

Question 8 of 27

Which of the following is a limitation of the revenue-oriented pricing approach?

Select one of the following:

Explanation

Question 9 of 27

Cashcrash.com is an online money transfer company that provides consumer remittance facilities. With the Cashcrash bank deposit service, consumers can send money directly to bank accounts in several countries around the world. Thus, Cashcrash.com would be classified as a:

Select one of the following:

Explanation

Question 10 of 27

Which of the following is an example of post purchase communication?

Select one of the following:

Explanation

Question 11 of 27

Which of the following is true of goods?

Select one of the following:

Explanation

Question 12 of 27

According to the gap model of service quality, which of the following is true of gap 1?

Select one of the following:

Explanation

Question 13 of 27

Which of the following is true of mass customization?

Select one of the following:

Explanation

Question 14 of 27

Which of the following is true of supplementary services?

Select one of the following:

Explanation

Question 15 of 27

Trina is a physical fitness trainer who tries to create fitness routines based on her understanding of the customers and their specific fitness goals. Which of the following service processes does this illustrate?

Select one of the following:

Explanation

Question 16 of 27

Which of the following is true of operations-oriented pricing?

Select one of the following:

Explanation

Question 17 of 27

Select one of the following:

Explanation

Question 18 of 27

Business Essentials is a support group that consists mostly of young women who offer tips on budgeting and debt relief. Their goal is to help women break financial ceilings. Business Essentials is providing a(n) _____ that is helpful to women who want to be financially savvy.

Select one of the following:

Explanation

Question 19 of 27

_____ refers to the inability of services to be stored, warehoused, or inventoried.

Select one of the following:

Explanation

Question 20 of 27

_____, one of the components on which customers evaluate service quality, refers to the knowledge and courtesy of employees and their ability to convey trust.

Select one of the following: