Services and Nonprofit Organization Marketing Answer Key

Intro to Marketing Services and Nonprofit Organization Marketing Question Review 1. Western Union is in the business of international money transfer. An individual working in Canada can transfer a portion of his or her earnings to family members living in another country. Why has Western Union’s market for wiring money grown dramatically over the last years? a. It provides a good that has been declining in recent years. b. It provides a tangible product that is easy to use and reliable. c. It provides a service that is easy to use and reliable. d. It provides a synergy that is easy to use and reliable. ANSWER: c 2. What is the term for the result of applying human or mechanical efforts to people or objects? a. application processor b. profit intermediary c. tangible product d. service ANSWER: d 3. Many people would like to sell and buy on eBay but are unsure how much to charge or pay. A company called Keen.com has set up a directory of specialists to whom you can address questions. Keen.com charges a per-minute fee to the person who contacts its specialist. How would Keen.com be classified? a. as a tangible resource b. as a tangible product c. as a service d. as a nonprofit organization ANSWER: c 4. Western Union is in the business of international money transfer. An individual working in Canada can transfer a portion of his or her earnings to family members living in another country. Because a person can send money from a small town in Ontario to a small town in Mexico without worrying, what does Western Union have a high degree of? a. survey quality 1 b. experience quality c. research quality d. credence quality ANSWER: b 5. Surj is a teacher. The core service he provides is knowledge and because knowledge cannot be touched, seen, tasted, heard, or felt in the same manner in which goods can be sensed, what else can it be characterized as? a. extraneous b. synergistic c. perishable d. intangible ANSWER: d 6. LaVergne had her makeup professionally applied for her prom night. She went to the beauty salon, watched as the makeup artist applied cosmetics to her face, and then went home feeling gorgeous. LaVergne’s makeover illustrates which service characteristic? a. intangibility b. inseparability c. heterogeneity d. flexibility ANSWER: b 7. What is a characteristic that consumers may have difficulty assessing even after they purchase a product because they do not have the necessary knowledge or experience? a. variability b. credence quality c. intangibility d. inseparability ANSWER: b 8. Which of the following best describes services that can’t be touched, seen, tasted, heard, or felt? a. intangibility b. inseparability c. perishability d. simultaneous production and consumption ANSWER: a 9. Oliver used to sell office furniture and supplies, but he now has semi-retired and started a cleaning 2 service specializing in cleaning fire- and water-damaged structures. Why does selling cleaning services differ greatly from selling office furniture and supplies? a. Cleaning services are homogeneous. b. Cleaning services are unknowable. c. Cleaning services are intangible. d. Cleaning services are synergistic. ANSWER: c 10. Ian has an MBA and is being recruited by an investment banking firm as a sales representative. He has had ten years of experience in selling industrial supplies. He was quite successful in this job but is worried that selling investment strategies may be more difficult. What factor would be the major reason for this worry? a. Services are intangible and, therefore, different from his previous experience. b. His services and the products he sells are inseparable. c. The cost inventory management system of reimbursing him may cause a problem when he makes investments. d. The extensiveness of distribution is unimportant when selling an investment service. ANSWER: a 11. Haim walked into a mattress store and he was able to test the softness of the mattress he was interested in. Softness, colour, shape, and size all fall under which type of characteristic? a. search quality b. intangible attribute c. sleep quality d. heterogeneity feature ANSWER: a 12. Aristide and Olga are considering attending a clinic to help them quit smoking. After they attend the clinic and learn about the techniques it uses to help customers quit smoking, what will they be better able to assess? a. the tangible attribute of the clinic b. the experience quality of the clinic c. the creative quality of the clinic d. the credence quality of the clinic ANSWER: b 13. Andy will be selling season tickets at a football stadium. He used to sell sound systems for theatres. What is one of the key differences he can expect to find? a. The customer will select and evaluate entertainment on the basis of search services. 3 b. Customers are engaged in this as a low-involvement product. c. A consumer will use experience qualities to evaluate the football stadium. d. The consumer realizes that the selling process is difficult because of the product. ANSWER: c 14. Which of the following services would be most likely to exhibit strong credence qualities? a. a math tutorial service b. the repair of a leaky drain c. the preparation of a dead body for burial d. tax return preparation ANSWER: c 15. Management-labour mediation, child care, and college preparation classes are all services that are produced and consumed at the same time. Which service characteristic do all of these services exhibit? a. inseparability b. intangibility c. heterogeneity d. perishability ANSWER: a 16. LouAnne had her makeup professionally applied for her prom night. She went to the beauty salon, watched as the makeup artist applied cosmetics to her face, and then went home feeling gorgeous. LouAnne’s makeover illustrates which service characteristic? a. intangibility b. inseparability c. heterogeneity d. flexibility ANSWER: b 17. A reading service for the visually impaired is interviewing readers who have similar tones and pleasing voices. The reading service is trying to limit problems associated with which service characteristic? a. tangibility b. credence quality c. inconsistency d. flexibility ANSWER: c 18. When the service being purchased requires little interaction between the service personnel and the 4 customer, which service characteristic causes fewer problems? a. perishability b. inseparability c. intangibility d. inconsistency ANSWER: d 19. Chatha operates Rai Stables, a complete horse service that offers grooming, training, show training for handlers, boarding, and veterinary care. To maintain a quality image, Chatha insures that all employees adhere to the same performance standards. What is Chatha attempting to reduce? a. inconsistency b. perishability c. intangibility d. simultaneous production and consumption ANSWER: a 20. What are inventory services characterized by? a. standardized preparation procedures b. standardization c. storage capacity d. inability to be stored ANSWER: d 21. Surj is a teacher and offers knowledge as a core product. Why can’t knowledge be warehoused, stored, or inventoried? a. due to service variability b. due to service intangibility c. due to service inconsistency d. due to service heterogeneity ANSWER: b 22. What is one of the most important challenges in many services industries? a. finding ways to synchronize supply and demand b. it is never consistent c. it can’t be assured d. hiring good staff to deliver the services ANSWER: a 5 23. What are services that cannot be stored or warehoused called? a. inventory b. intangible c. unstable d. homogeneous ANSWER: a 24. Western Union is in the business of international money transfer. An individual working in Canada can transfer a portion of his or her earnings to family members living in another country. Which service quality does Western Union provide to its users? a. tangibility b. responsiveness c. assurance d. reliability ANSWER: d 25. The service provided by employees at boutique hotels cannot be touched, seen, or felt in the same manner as the hair and bath products. How can it be described? a. as unknowable b. as tangible c. as intangible d. as credible ANSWER: c 26. To evaluate the quality provided by boutique hotels, which qualities would customers most likely depend on? a. experience b. relational c. credence d. search ANSWER: a 27. Boutique hotels are typically independently owned and/or part of small chains. People who seek out boutique hotels cannot be sure of what type of specific services will be provided. In other words, the services provided by boutique hotels tend to be relatively high in which of the following qualities? a. inseparability b. intangibility c. inconsistency d. perishability 6 ANSWER: c 28. Sizzlin’ Shine is a company that uses trained detailing professionals to apply wax to automobiles by hand and utilize mechanical polishing equipment. Because what Sizzlin’ Shine provides cannot be touched, seen, or felt in the same manner as an automobile part such as a tire, what is considered? a. homogeneous b. intangible c. credible d. perishable ANSWER: b 29. The Ritzy Canine Carriage House is a doggy hotel. The lobby features a crystal chandelier, brocadepatterned wallpaper, gold-framed mirrors, and antique chairs. Why are the facilities at the Ritzy Canine very upscale in design? a. to cope with the problems of service perishability b. to cope with the problems of service homogeneity c. to cope with the problems of service intangibility d. to cope with the problems of service inseparability ANSWER: c 30. The Ritzy Canine Carriage House is a doggy hotel. The lobby features a crystal chandelier, brocadepatterned wallpaper, gold-framed mirrors, and antique chairs. Before leaving a dog at the Ritzy Canine, its owner would more than likely inspect the facilities and use which qualities to evaluate the establishment? a. experience b. investigative c. search d. standardized ANSWER: c 31. Sizzlin’ Shine is a company that uses trained detailing professionals to apply wax to automobiles by hand and utilize mechanical polishing equipment. Sizzlin’ Shine’s customers can judge the quality of the detailing services on their automobiles only after driving them for a period of time and seeing how the shine holds under various driving conditions. What can customers use to evaluate the service? a. cognitive perception b. experience qualities c. search qualities d. heterogeneous perception ANSWER: b 7 32. Sizzlin’ Shine is a company that uses trained detailing professionals to apply wax to automobiles by hand and utilize mechanical polishing equipment. To maintain Sizzlin’ Shine’s quality image, the owner provides complete training for each employee in company operations, objectives, and performance standards. What unique aspect of services is the owner attempting to address? a. inconsistency b. perishability c. intangibility d. inseparability ANSWER: a 33. At Home Hardware, the store manager is frustrated at the level of service employees provide to customers even after he wrote a guide to customer service and instructed each employee to read the guide. Which type of gap is this? a. between the service quality specifications and the service that is actually provided b. between what the company provides and what the customer is told it provides c. between the service customers receive and the service they want d. between what customers want and what management thinks customers want ANSWER: a 34. If a customer expects to wait one week for a pair of shoes to be mended but is told that the shoes are ready to be picked up less than 24 hours after leaving them at the repair shop, the customer’s evaluation of service quality will be high. However, a two-week wait would result in a lower evaluation. Which type of gap would be illustrated by the two-week wait? a. between the service customers receive and the service they want b. between what the company provides and what the customer is told it provides c. between what customers want and what management thinks customers want d. between what management thinks customers want and the quality specifications management develops to provide ANSWER: a 35. Shack Up Hotel offers basic rooms with indoor plumbing and electricity. The owner decided this was all that guests needed. In this instance, what is the service provider likely to have a gap between? a. what the company tells the customer it provides and what is actually provided b. service quality specifications and employee training c. what customers want and what management thinks customers want d. service expectations and what customers are told to expect ANSWER: c 36. Many people would like to sell and buy on eBay but are unsure how much to charge or pay. A company called Keen.com has set up a directory of specialists to whom you can address questions. Users 8 can see the ratings given to each specialist by previous users before they contact that specialist. Which service component does Keen.com use to help its customers evaluate its service quality? a. empathy b. assurance c. tangibles d. flexibility ANSWER: b 37. 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. What could be used to identify the problem if there were significant differences between what TeamBuilds says it provides to customers and what it actually provides? a. the gap model of service quality b. the service pyramid c. the four dimensions of service quality d. the service paradigm ANSWER: a 38. Virtual Bellhop is a service provider that ships large sporting goods to vacation destinations so its customers do not have to worry about carrying them through airports. Its record for getting the sporting equipment to the correct destination for the vacationer is perfect. This indicates the company excels at which component of service quality? a. empathy b. reliability c. flexibility d. assurance ANSWER: b 39. Sally calls a salon for an appointment and experiences prompt service What does this exemplify? a. empathy b. responsiveness c. reliability d. assurance ANSWER: b 40. What are the five components that customers use to evaluate service quality? a. inseparability, inconsistency, inventory, reliability, assurance b. objectively, search quality, credence quality, intangibility, experience quality c. reliability, responsiveness, assurance, empathy, tangibles 9 d. endeavours, experiences, reliability, responsiveness, assurance ANSWER: c 41. Has someone ever repeatedly asked for your phone number and refused to take “no” for an answer? Now when that annoying individual asks for your phone number, you can give this individual the number for the Rejection Hotline, which will explain that you are not interested. The ability to give someone a phone number that tells him or her exactly what you have been unable to communicate demonstrates that Rejection Hotline would score high when what is evaluated? a. its assurance b. its empathy c. its tangibility d. its reliability ANSWER: d 42. The Ritzy Canine Carriage House is a doggy hotel. The lobby features a crystal chandelier, brocadepatterned wallpaper, gold-framed mirrors, and antique chairs. Research has shown that consumers evaluate service quality on five components. When customers rate the people who supervise the dog activities as being “dog people” and having an understanding of the needs of dogs and their owners, which component are they concerned with? a. reliability b. responsiveness c. standardization d. empathy ANSWER: d 43. An Internet company, icruise.com, sold cruises by offering a “Suntan Guarantee.” The guarantee promised a full refund on a Caribbean cruise if more than one-quarter inch of rain fell from 10 a.m. to 4 p.m. for a preset number of days depending on the length of the cruise. If it rained and the Internet company failed to honour its refund policy, which type of gap would exist? a. between what management thinks customers want and the quality specifications that management develops to provide the service b. between what the company tells the customer it provides and what is actually provided c. between service quality specifications and employee training d. between what customers want and what management thinks customers want ANSWER: b 44. Virtual Bellhop is a service provider that ships large sporting goods to vacation destinations so its customers do not have to worry about carrying them through airports. The care with which the items are packed and the condition of the package when it arrives indicate concern with which aspect of service quality? 10 a. tangibles b. responsiveness c. variability d. homogeneity ANSWER: a 45. Budget airlines are a new service in China. Neither their passengers nor the airlines know what to expect from each other. When there is a gap between what customers want and what management thinks customers want, as in this case it is referred to as which of the following? a. gap model of service quality b. service pyramid c. four dimensions of service quality d. service paradigm ANSWER: a 46. 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. Which category of service processing does TeamBuilds offer? a. possession processing b. information processing c. mental stimulus processing d. people processing ANSWER: c 47. 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. What are TeamBuilds’s improved work team relationships? a. its primary service b. its core service c. its niche service d. its foundation service ANSWER: b 48. Which of the following is a poor example of a type of service processing that can occur? a. people processing b. product processing c. information processing d. mental stimulus processing ANSWER: b 11 49. Which of the following services is an example of possession processing? a. a theatrical performance b. an X-ray of a broken bone c. an advertising agency d. a heating system repair ANSWER: d 50. Which of the following services is an example of mental stimulus processing? a. taxi cab service b. insurance c. a professional tennis match d. veterinarian care ANSWER: c 12