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It could be said that,at least from a marketing perspective,it is harder to convey the advantages of adopting a plastic-free lifestyle,than it is to sell the idea of having a microwave oven.This sentiment indicates that the benefit strength of many nonprofit offerings is quite ______.


A) weak but direct
B) strong but indirect
C) strong and direct
D) weak or indirect

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

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Which of the following statements is true of a bundled price?


A) It is simpler for a firm to administer than pricing each element separately.
B) It is preferable when consumers are willing to pay "extra" for every part of the service.
C) It is a pricing strategy where customers pay only for the service elements they use.
D) It is a pricing strategy that does not apply to services.

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

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Nonprofit organization marketing is the effort by nonprofit organizations to compete with private-sector organizations by providing better customer services and gaining customer loyalty.

A) True
B) False

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Marketers have more trouble promoting tangible goods than intangible services.

A) True
B) False

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Which statement describes a distribution strategy of a service organization?


A) The intensity of distribution should exceed the target market's needs and preferences.
B) Having too many outlets to distribute products may boost costs unnecessarily.
C) The location of a service does not influence the distribution strategy of a time-dependent service provider.
D) Because services are intangible,many service firms choose indirect distribution strategies.

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

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Which of the following statements correctly compares tangibles and intangibles?


A) Consumers and business users have more trouble evaluating services than goods and thus marketers have more trouble promoting intangible services than tangible goods.
B) Consumers and business users have more trouble evaluating services than goods; however,marketers have less trouble promoting intangible services than tangible goods.
C) Consumers and business users have less trouble evaluating services than goods; however,marketers have more trouble promoting intangible services than tangible goods.
D) Consumers and business users have less trouble evaluating services than goods and thus marketers have less trouble promoting intangible services than tangible goods.

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

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Which strategy uses technology to deliver tailor-made services on a large scale?


A) Place strategy
B) Promotion strategy
C) The service mix
D) Mass customization

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

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For a nonprofit service firm,the first step toward success in the global marketplace is determining the nature of its core products.

A) True
B) False

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At what level or levels of relationship marketing does a firm use financial and social bonds but also offer value-added services that are not readily available from other firms?


A) Neither at the customization level nor at the structural level
B) Only at the customization level
C) Only at the structural level
D) At both customization and structural levels

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

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Which of the following is an example of heterogeneity of services?


A) The packaging of the pizza that I ordered today had a very different design and was made of recyclable paper.
B) The tire I bought at a Chicago service station came with a discount but lasted as long as another other tire.
C) The customer service agent who contacted me last week was more helpful than the one who contacted me today.
D) The surgical instruments that doctors use in a New York hospital are the same as those used by doctors in the Miami hospital where I was examined.

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

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Explain which factors marketers should focus on when deciding distribution strategies for their service organizations.

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Answers will vary.Distribution strategie...

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Generally,the intensity of distribution in a service-organization's marketing mix should exceed the target market's needs and preferences.

A) True
B) False

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According to the gap model of service quality,the gap between the service that customers receive and the service they want


A) can be positive or negative depending on the quality of service that was provided.
B) can be closed by providing advertising campaigns that promise more than the firm can deliver.
C) results from management's ability to translate customers' needs into delivery systems within the firm.
D) is the result of a lack of understanding or a misinterpretation of the customers' needs,wants,or desires.

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

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Unlike a commercial advertiser,the sponsor of a public service advertisement pays for the advertising time and space.

A) True
B) False

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Internal marketing is more important for goods manufacturers than service firms.

A) True
B) False

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A vehicle manufacturer makes base models using a large-scale production process.It also partners with small companies that help customize its vehicles,thus offering a wide range of packages involving a variety of chassis colors,upholstery designs,music systems,GPS devices,and passenger safety options.The company's approach to its service offering is an example of ______.


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

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

Correct Answer

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Ace Deliveries,a courier service provider,built a strong reputation over a short period of six months.Inundated with customers,the company decided to expand its fleet of vans and enlarge its delivery networks and to stop offering the discounts it was offering to some market segments.Because it was the holiday sales season,higher pricing made good business sense.The pricing Ace Deliveries is using is ______.


A) patronage-oriented,not operations-oriented
B) operations-oriented,not revenue-oriented
C) both revenue-oriented and operations-oriented
D) both operations-oriented and patronage-oriented

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

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Patronage-oriented pricing focuses on maximizing the surplus of income over costs.

A) True
B) False

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Ambient Management,Inc.was experiencing a gap in the services it was providing.It closed the gap by ensuring that its customer-facing staff had the skills,training,and proper tools to perform their jobs.When compared with the gap model of service quality,the gap that the company addressed was between what ______.


A) customers wanted and what management thought customers wanted
B) the company provided and what the customers were told it provided
C) management thought customers wanted and the quality specifications it developed
D) the service quality specifications were and the service that was actually provided

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

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Which response describes how service-providing companies would most likely counter increasing competition?


A) Firms would widen their range of supplementary services because reducing them is almost always disastrous.
B) Firms would emphasize supplementary services or may position themselves by greatly reducing those services.
C) Firms would focus entirely on their core service as supplementary services mostly do not attract customers.
D) Firms would reduce their supplementary services and may also offer a less rigorous form of their core service.

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

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