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An online money transfer company that allows consumers to send money directly to bank accounts in several countries around the world is an example of a service firm.

A) True
B) False

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What kind of a service process does an electrical maintenance worker provide?


A) Information processing
B) Possession processing
C) Mental stimulus processing
D) People processing

E) B) and D)
F) C) and D)

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B

Unlike goods,services are


A) produced in a centralized location and consumed in decentralized locations.
B) tangible performances.
C) stored,warehoused,and inventoried.
D) more heterogeneous and less standardized and uniform.

E) B) and D)
F) A) and C)

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An online store promises to deliver any order costing over $60 within 24 hours.It uses this strategy to increase the volume of customer orders and the store always delivers on that promise.This company's track record for prompt delivery clearly implies that the company rates high on ______.


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

E) A) and D)
F) None of the above

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Stone Restaurant,a five-star restaurant,changes its centerpiece,such as candles and vases,every day.The waiters also creatively fold the napkins and place them on the tables at the end of each course.In this scenario,which of the following promotion strategies is adopted by Stone Restaurant?


A) Using personal information sources
B) Stressing tangible cues
C) Engaging in postpurchase communication
D) Creating a strong organizational image

E) C) and D)
F) All of the above

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B

Services,such as libraries,fire protection,and police protection are examples of ______.


A) nonfinancial pricing
B) the separation between payers and users
C) indirect payment
D) for-profit services

E) A) and B)
F) All of the above

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Which of the following relationship marketing levels is also referred to as customer intimacy?


A) Structural level
B) Social level
C) Financial level
D) Customization level

E) C) and D)
F) B) and D)

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Service quality is easier to define and measure than the quality of tangible goods.

A) True
B) False

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Nonprofit organizations have the freedom to choose their target audience,which helps them lower their per-capita costs and take advantage of economies of scale.

A) True
B) False

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Membership services naturally lend themselves to relationship marketing.

A) True
B) False

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A credit card company has a policy wherein the customer earns a point for every 20 dollars spent on purchases made using the card.These points accumulate over a period of time and can be cashed in at the rate of a dollar per point.The policy applies equally to all customers across the country and the company does not interact with individual customers.This is an example of the ______ level of relationship marketing.


A) structural
B) social
C) financial
D) customization

E) None of the above
F) All of the above

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When considering strategies to promote intangible services,which of the following engages customers in postpurchase communication?


A) An airline hires a well-known actor to endorse its services in a series of commercials.
B) An insurance company uses an umbrella as its logo to convey that its customers are well-protected.
C) A chartered accountant firm offers a 20 percent discount to customers who contract its services in January.
D) A hotel sends an e-mail survey to its guests asking them to rate the quality of service that they received.

E) A) and B)
F) C) and D)

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Which of the following is true of nonprofit organizations?


A) The cost of government (i.e.,taxes) has become a big item in the American family budget but remains less than health care.
B) Together,federal,state,and local governments collect tax revenues that amount to almost half of the U.S.GDP.
C) Nonprofit organizations do not include private museums,theaters,schools,and churches.
D) Nonprofit services vary greatly from producer to producer and from day to day,even from the same producer.

E) None of the above
F) A) and D)

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Which of the following statements is true in comparing for-profit service firms and nonprofit organizations?


A) While for-profit service firms market tangible products,nonprofit organizations market intangible products.
B) Both often require the customer to be present during the production process.
C) While for-profit service firms vary greatly from producer to producer,nonprofit organizations are uniform across producers.
D) Both vary greatly from day to day,but with the same producer the day-to-day variations are eliminated.

E) None of the above
F) All of the above

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When evaluating services in terms of marketing strategies,a(n) _____ quality is a characteristic that can be assessed only after use.


A) search
B) credence
C) experience
D) intangible

E) B) and C)
F) A) and D)

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A training institute offers a range of services to its students.Which of the following is most likely to be its core service?


A) Beverages and a free lunch
B) Books and course material
C) Microphones and lecterns for lectures
D) An air-conditioned lecture hall

E) B) and C)
F) All of the above

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Starbucks uses different kinds of coffee,dairy and non-dairy alternatives,flavor shots,and temperature levels to create a diverse array of options for customers.It uses a machine called a Clover,which allows baristas to customize brew times down to the second,specify how much exposure the water has to the coffee grounds,and dial in a precise temperature.Starbucks is well-geared toward ______.


A) customization
B) standardization
C) mass customization
D) mass standardization

E) B) and C)
F) A) and B)

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C

Health Works is a company that offers services related to health promotion and lifestyle.They not only send their clients reminders for their general checkup but also make house visits for consultations,which are free if a Health Works products or services are bought.They also conduct free workshops for their clients to network and join clusters with similar profiles and regime.Their offerings would fall in the ______ level of relationship marketing.


A) social
B) customization
C) structural
D) financial

E) A) and B)
F) None of the above

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When considering the range of involvement that the target audience/customers have with a product,how do private-sector service organizations (business) and nonprofit organizations generally compare?


A) The range is much narrower for nonprofit organizations.
B) The range is much narrower for business service organizations.
C) The range is more or less equal in the two cases.
D) The range is highly unpredictable in both cases.

E) A) and B)
F) A) and C)

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Hannah likes to frequent Citrus,a fine dining restaurant,as she loves the beef lasagna there and orders it every time she eats there.However,during her recent visit,the lasagna she was served was undercooked.When she informed the manager about it,she learned that the food was cooked by a replacement chef as the usual chef was on leave.In this scenario,which of the following characteristics of services is responsible for the lack of consistency and quality of the food at Citrus?


A) Heterogeneity
B) Perishability
C) Intangibility
D) Inseparability

E) All of the above
F) C) and D)

Correct Answer

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