Chapter 11—Services and Nonprofit Organization Marketing
MULTIPLE CHOICE
1. Western Union is in the business of international money transfer. A Mexican working in the United States can transfer a portion of his or her earnings to family members still living in Mexico. Western Union's market for wiring money has grown dramatically over the last years because the company provides a _____ that is easy to use and reliable.
a.
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good
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b.
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tangible resource
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c.
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tangible product
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d.
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service
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e.
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synergy
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ANS: D
A service is the result of applying human or mechanical efforts to people or objects.
PTS: 1 REF: 159 OBJ: 11-1 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Customer
2. Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. Keen.com charges a per-minute fee to the person who contacts its specialist. Keen.com would be classified as a:
a.
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good
|
b.
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tangible resource
|
c.
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tangible product
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d.
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service
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e.
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nonprofit organization
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ANS: D
A service is the result of applying human or mechanical efforts to people or objects.
PTS: 1 REF: 159 OBJ: 11-1 TYPE: App
TOP: AACSB Technology | TB&E Model Customer | TB&E Model Online/Computer
3. A(n) _____ is the result of applying human or mechanical efforts to people or objects.
a.
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application processor
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b.
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profit intermediary
|
c.
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tangible product
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d.
|
service
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e.
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nonprofit organization
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ANS: D PTS: 1 REF: 159 OBJ: 11-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Product
4. The service sector:
a.
|
has remained steady at 44 million jobs in the United States for the last 20 years
|
b.
|
employs roughly 80 percent of the U.S. workforce
|
c.
|
is rarely capital intensive, as most services do not need high technology
|
d.
|
is decreasing in importance in the United States
|
e.
|
tends to create fewer new jobs than the manufacturing industry
|
ANS: B PTS: 1 REF: 159 OBJ: 11-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Strategy
5. Baltimore's Chesapeake Habitat for Humanity (CHH) renovates vacant houses and sells them at no-interest mortgage rates to low-income home buyers. To pay some of the costs of the renovation supplies, CHH has established a for-profit company called TeamBuilds, where corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovation. TeamBuilds is an example of a(n):
a.
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service provider
|
b.
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possession processor
|
c.
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aggregated market
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d.
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market niche
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e.
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target market
|
ANS: A PTS: 1 REF: 159 OBJ: 11-1 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Strategy
6. A service cannot be touched, seen, tasted, heard, or felt in the same manner in which goods can be sensed and, therefore, is referred to as:
a.
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impervious
|
b.
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extraneous
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c.
|
synergistic
|
d.
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perishable
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e.
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intangible
|
ANS: E PTS: 1 REF: 159 OBJ: 11-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Product
7. Obeah used to sell office furniture and supplies, but he now has semi-retired and started a cleaning service specializing in cleaning fire- and water-damaged structures. Selling cleaning services differs greatly from selling office furniture and supplies because cleaning services are:
a.
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homogeneous
|
b.
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unknowable
|
c.
|
intangible
|
d.
|
synergistic
|
e.
|
comestible
|
ANS: C
Services are intangible; furniture is tangible.
PTS: 1 REF: 159 OBJ: 11-2 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Product
8. Ian Trent 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 marketing program of investment strategies is inconsistent.
|
d.
|
The cost inventory management system of reimbursing him may cause a problem when he makes investments.
|
e.
|
The extensiveness of distribution is unimportant when selling an investment service.
|
ANS: A
Investment banking has many intangible features and benefits that make it quite different from tangible products like industrial supplies.
PTS: 1 REF: 159 OBJ: 11-2 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Product
9. A(n) _____ is a characteristic that can be easily assessed prior to purchase, such as the softness of a mattress or the color of curtains.
a.
|
search quality
|
b.
|
intangible attribute
|
c.
|
experience quality
|
d.
|
credence quality
|
e.
|
heterogeneity feature
|
ANS: A PTS: 1 REF: 160 OBJ: 11-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Product
10. 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. Participants in the team-building exercises would use a(n) _____ quality to evaluate TeamBuilds.
a.
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credence
|
b.
|
search
|
c.
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information
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d.
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appraisal
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e.
|
experience
|
ANS: E
Only after experiencing them could participants tell whether they had gained from the exercises.
PTS: 1 REF: 160 OBJ: 11-2 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Strategy
11. Western Union has 225,000 locations where clients can receive money in 196 countries. Because a person can send money from a small town in Georgia to a small town in Mexico without worrying, Western Union has a high degree of _____ quality.
a.
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observation
|
b.
|
survey
|
c.
|
experience
|
d.
|
research
|
e.
|
credence
|
ANS: C
Only after receiving the money can participants tell if the money remittance actually works.
PTS: 1 REF: 160 OBJ: 11-1 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Customer
12. Aristide and Oana are considering attending a clinic to help them quit smoking. They will be better able to assess the _____ of the clinic after they attend the clinic and learn about the techniques it uses to help customers quit smoking.
a.
|
tangible attribute
|
b.
|
experience quality
|
c.
|
creative quality
|
d.
|
credence quality
|
e.
|
heterogeneity feature
|
ANS: B PTS: 1 REF: 160 OBJ: 11-2 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Customer
13. Many people would like to sell and buy on eBay, the most popular of the current Internet auction sites, but they have questions about the process and how to sell and price their merchandise. A company called Keen.com has set up a directory of specialists to whom you can address questions. When you choose a name and click on the "Call Now" button, the specialist is contacted and will personally call and answer your questions. _____ is a characteristic of this service because you cannot evaluate its usefulness until after you have received and used the specialist's advice.
a.
|
Reliability
|
b.
|
Experience quality
|
c.
|
Search quality
|
d.
|
Temporal quality
|
e.
|
Heterogeneous satisfaction
|
ANS: B PTS: 1 REF: 160 OBJ: 11-2 TYPE: App
TOP: AACSB Technology | TB&E Model Customer | TB&E Model Online/Computer
14. Deidre Longo has just accepted a position at a major entertainment venue where she is responsible for selling season tickets. She formerly was a salesperson for a company that sold sound systems for arenas, stadiums, and theaters. She believed she understood why theater managers bought certain products but realizes selling tickets to individuals will be different. What is one of the key differences she can expect to find?
a.
|
The customer will select and evaluate entertainment on the basis of search qualities.
|
b.
|
Customers are engaged in this as a low-involvement product.
|
c.
|
A consumer will use experience qualities to evaluate the entertainment service.
|
d.
|
The use of the service will involve standardized service levels and not exhibit heterogeneity problems.
|
e.
|
The location of Longo's office is a key strategy criterion.
|
ANS: C
Many service situations are complicated and customers do not have the knowledge to judge the quality of the actual service itself. This question is difficult because it ties together several concepts that are in different sections of the chapter.
PTS: 1 REF: 160 OBJ: 11-2 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Customer
15. A(n) _____ is a characteristic that cannot easily be assessed even after purchase since the customers do not have the knowledge or experience.
a.
|
heterogeneity feature
|
b.
|
perishable attribute
|
c.
|
experience quality
|
d.
|
search quality
|
e.
|
credence quality
|
ANS: E PTS: 1 REF: 160 OBJ: 11-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer
16. 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
|
e.
|
a landscaping service that mows lawns
|
ANS: C
A credence quality is a characteristic that cannot easily be assessed even after purchase and experience.
PTS: 1 REF: 160 OBJ: 11-2 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Product
17. Management-labor mediation, child care, and college preparation classes are all services that are produced and consumed at the same time. All of these services exhibit the service characteristic of:
a.
|
inseparability
|
b.
|
intangibility
|
c.
|
heterogeneity
|
d.
|
perishability
|
e.
|
variability
|
ANS: A PTS: 1 REF: 160 OBJ: 11-2 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Product
18. 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.
|
perishability
|
e.
|
flexibility
|
ANS: B
Inseparability is when services or goods are produced and consumed at the same time.
PTS: 1 REF: 160 OBJ: 11-2 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer
19. A reading service for the visually impaired requires each reader applicant to prepare and submit a one-hour interview tape of material chosen by the service to determine whether the reader has pleasing vocal characteristics and is accent-free so that it is not necessary to use the same reader every time. The reading service is trying to limit problems associated with the service characteristic of:
a.
|
tangibility
|
b.
|
credence quality
|
c.
|
heterogeneity
|
d.
|
simultaneous production and consumption
|
e.
|
flexibility
|
ANS: C
Heterogeneity means that a service tends to be less standardized and uniform than goods.
PTS: 1 REF: 160 OBJ: 11-2 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Strategy
20. There are fewer problems caused by the service characteristic of _____ when the service being purchased requires little interaction between the service personnel and the customer.
a.
|
perishability
|
b.
|
inseparability
|
c.
|
intangibility
|
d.
|
heterogeneity
|
e.
|
instability
|
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