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Nonprofit organizations account for a little over ______ percent of the economic activity in the United States.


A) 5
B) 10
C) 20
D) 30

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

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According to the gap model of service quality,the gap between what customers want and what management thinks customers want results from


A) a lack of understanding or a misrepresentation of the customers' needs,wants,or desires.
B) management's inability to translate customers' needs into delivery systems within the firm.
C) the inability of management and employees to do what should be done.
D) misleading or deceptive advertising campaigns promising more than the firm can deliver.

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

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The inability of services to be stored,warehoused,or inventoried is termed ______.


A) variability
B) reliability
C) heterogeneity
D) perishability

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

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Nonprofit organizations differ from profit organizations in that nonprofit organizations


A) target the niches that may be most profitable.
B) compete with,rather than complement,the efforts of others.
C) must often target those who are apathetic about or strongly opposed to receiving their services.
D) give priority to developing those market segments that are most likely to respond to particular offerings.

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

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When evaluating service quality,which statement is true of reliability?


A) It involves being caring and paying individualized attention to customers.
B) It involves providing prompt service to customers.
C) It is performing the service right the first time.
D) It refers to the knowledge and courtesy of employees.

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

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When evaluating service quality,_____ refers to the knowledge and courtesy of employees and their ability to convey trust.


A) heterogeneity
B) responsiveness
C) assurance
D) tangibility

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

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Briefly explain what service firms must do to be successful in the global marketplace.

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Answers will vary.The international mark...

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So far as promotion decisions are concerned,many nonprofit organizations are explicitly or implicitly prohibited from advertising,thus limiting their promotion options.Are federal agencies included in this category?


A) No,federal agencies are exempt from this rule.
B) Yes,most federal agencies fall into this category.
C) Yes,only federal agencies fall into this category.
D) Yes,all federal agencies fall into this category.

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

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An upmarket dressmaking company deliberately keeps its number of outlets very low even after years of climbing profits.There are no more than two in any major city of the United States.The policy may be justified in terms of the company's objective to ______.


A) cut costs
B) meet market's needs
C) be exclusive
D) play it safe

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

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Rent and Drive is a car rental company.It prices its rentals based on operations-oriented pricing.In this scenario,Rent and Drive


A) varies the prices according to the supply and demand of cars.
B) maximizes the surplus of income over its costs.
C) allows customers to negotiate price.
D) varies prices for customers from different market segments.

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

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When comparing the various kinds of relationship marketing,we can say that ______.


A) the social level is more developed than the structural level
B) the financial level is more developed than the social level
C) the customization level is more developed than the social level
D) the financial level is more developed than the customization level

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

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Which of the following describes a for-profit rather than a nonprofit?


A) Prioritize market segments most likely to respond to their offerings.
B) Target those who are apathetic about receiving their services.
C) Complement,rather than compete with,the efforts of others.
D) Adopt undifferentiated strategies by default.

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

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Tug Bark,a fast food chain from the United States,wants to open a branch in China.It plans to change its menu to appeal to the Chinese palate.In this scenario,Tug Bark is implementing the gap model of service quality.

A) True
B) False

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Which of the following strategies will help service organizations overcome the perishability of services?


A) Increase the credence qualities of services.
B) Provide training to employees.
C) Improve the standard of services.
D) Find ways to synchronize supply and demand.

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

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Senior citizen and student discounts at movie theaters and restaurants are examples of pricing that is ______.


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

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

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Which of the following is a consequence of the heterogeneity of services?


A) No matter where,the customer knows exactly what is offered and what to expect.
B) Services are perceived as less standardized and uniform than goods.
C) Consistency and quality control of services can be easily achieved.
D) Standardization and training prove to be invariably futile or unreliable.

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

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Identify and describe three issues related to the selection of target markets that are unique to nonprofit service organizations.

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Answers will vary. Three issues relating...

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Which of the following statements is true of internal marketing?


A) Internal marketing is applicable only to the employees of goods manufacturers and not of service firms.
B) The quality of a firm's employees is an important part of building long-term relationships with customers.
C) Customers are treated as potential employees as they become the delivery vehicle of the purchased products.
D) Different manufacturers exchange goods internally in an attempt to curb a negative competitive spirit.

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

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Which of the following statements is true of the global issues in services marketing?


A) Competition in international services is decreasing rapidly.
B) The international marketing of services is a major part of global business.
C) The marketing mix elements do not need to take into account each country's cultural environment.
D) The first step toward success in the global marketplace is designing the marketing mix elements.

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

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Henry,a travel consultant,treats his customers with respect and helps them with the vast knowledge that has earned him a good reputation.However,he is not as skilled in giving individual attention to customers or in anticipating and understanding their priorities.Henry scores ______.


A) high on assurance but low on empathy
B) low on both assurance and empathy
C) high on both assurance and empathy
D) low on assurance but high on empathy

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

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