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Complete standardization of a service:


A) Is an effective way to make services more tangible.
B) Tends to decrease the perishability of the service.
C) Is easier for consumer services than for industrial services.
D) Is not possible.
E) Is not recommended.

F) D) and E)
G) C) and D)

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At the point of contact with the service provider, the customer perceives the service and the channel as being:


A) Separated by space and time.
B) Highly perishable.
C) Highly personalized.
D) Intangible.
E) The same thing.

F) B) and C)
G) A) and B)

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E

Service sector firms employ more than __________ out of every five private sector workers in the U.S.


A) 1
B) 2
C) 3
D) 4
E) 5

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

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Which of the following is not usually cited as a characteristic that distinguishes services from products?


A) Inseparability of services
B) Difficulty of standardization of services
C) Customer involvement in services
D) Perishability of services
E) Tangibility of services

F) A) and D)
G) A) and B)

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The involvement of customers in the production of services is usually:


A) Totally absent.
B) The same for product production.
C) Much less than their involvement in product production.
D) Greater than their involvement in product production.
E) Requires input from customers at the development stage.

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

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The service sector of the U.S. economy is approximately:


A) The same size as the manufacturing sector.
B) One-and-one-half times the size of the manufacturing sector.
C) Three times as large as the manufacturing sector.
D) Twice the size of the manufacturing sector.
E) One-half the size of the manufacturing sector.

F) B) and D)
G) A) and C)

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Service providers, in effect, are:


A) Manufacturers.
B) Retailers.
C) Manufacturers and retailers combined.
D) Franchisors.
E) Franchisors and franchisees combined.

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

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A hotel chain talks about its great attention to detail in its ads, and in each room, it includes a small sewing kit with extra shirt and blouse buttons. In this case, the hotel chain is an example of:


A) Charge more for its services.
B) Tangibility of services
C) Get customers involved in providing services.
D) Separate out particular services.
E) Entice new customers to make reservations.

F) A) and B)
G) A) and C)

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B

As a general rule, marketing channels for services tend to be __________ channels for products.


A) longer than
B) shorter than
C) about the same length as
D) more intense than
E) more selective than

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

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Providers of executive search, taxi, health care and other highly customized services:


A) Must rely on repetitive processes.
B) Can easily develop a channel design.
C) Face increased difficulty in the designing and operating channels.
D) Do not need to be as concerned with efficiency since they charge higher prices.
E) Have a long channel design.

F) None of the above
G) All of the above

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It is the __________ of services that makes them more difficult to differentiate from each other than products.


A) high cost
B) uniformity
C) inseparability
D) intangibility
E) standardization

F) A) and D)
G) All of the above

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D

Which of the following is not an example of customer involvement in services?


A) a couple delivering their income and expense records to a tax accountant
B) a client stipulating her investment goals to a stock broker
C) a customer requesting "no pickles" on his hamburger
D) a customer choosing the red rather than the black motorcycle helmet
E) a customer identifying flight times and days to an airline ticket agent

F) C) and E)
G) B) and C)

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Franchises that include franchisee direction in such areas as marketing strategy, training, merchandise management, and quality control are usually referred to as:


A) Product franchises.
B) Trademark franchises.
C) Business format franchises.
D) Quick franchises.
E) Exclusive franchises.

F) A) and C)
G) C) and E)

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Which of the following is not a flow that is necessary for many services to move through marketing channels?


A) Information
B) Negotiation
C) Product
D) Promotion
E) Knowledge

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

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__________ means that services cannot be produced in advance or in anticipation of customer needs.


A) Inseparability
B) Intangibility
C) Standardization
D) Perishability
E) Involvement

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

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Most small independent service providers such as doctors, auto mechanics, and shoe repairers use a __________ channel.


A) franchise
B) cooperative
C) single intermediary
D) independent retailer
E) direct channel to consumers

F) A) and D)
G) A) and E)

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Customer involvement in providing services is __________ in shoe shines and __________ for haircuts.


A) low; high
B) high; low
C) about the same
D) high; high
E) low; low

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

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According to the textbook, the retrenchment of Hyatt Legal Services was caused by:


A) Fraud and corruption.
B) Too many branches.
C) A complex, confusing and cumbersome franchise contract.
D) A large scale organization attempting to handle non-routine legal services.
E) None of the above.

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

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Business format franchising often is used in the marketing of services for all of the following reasons except:


A) Provide scale economies.
B) Harness entrepreneurial spirit.
C) Help solve standardization problems.
D) A close business relationship between franchisee and franchisor is unnecessary.
E) Takes advantage of the drive and motivation associated with independently owned businesses.

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

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Compared to tangible products, services:


A) Less often are customized.
B) More often are customized.
C) More often are customized in the industrial market but not in the consumer market.
D) More often are customized in the consumer market but not in the industrial market.
E) Have about the same occurrence of customization.

F) B) and D)
G) C) and D)

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