CHAPTER 1

Question 1

an activity which has some element of intangibility associated with it, which involves some interaction with customers or with property in their possession,

Answer 1

SERVICE (A. Payne)

Question 2

“services are economic activities offered by one party to another. Often time-based, performances bring about desired results to recipients, objects, or other assets for which purchasers have responsibility

Answer 2

SERVICE (Lovelock)

Question 3

an activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to aphysical product

Answer 3

SERVICE (Kotler)

Question 4

FOUR CHARACTERISTICS OF SERVICES

Answer 4

1. Intangibility
2. Inseparability
3. Heterogeneity
4. Perishability

Question 5

services cannot be experienced by physical senses. They cannot be seen, tasted, felt, or touched like tangible goods. In fact, many services are difficult to be examined before they are purchased.

Answer 5

Intangibility

Question 6

most services are sold first and then produced and consumed at the same time. In many cases customers are present when the service is being produced, so the producer and customers interact with each other during the service production process.

Answer 6

Inseparability

Question 7

Unlike tangible goods, services are highly variable. the performed services will not be precisely alike. Thus, the variability of services might result in different levels of service quality.

Answer 7

Heterogeneity

Question 8

Services differ from goods, as they cannot be saved, stored, resold, or returned. This is in contrast to goods that can be stored in inventory, resold, or returned if the customer is unhappy.

Answer 8

Perishability

Question 9

Services differ from goods, as they cannot be saved, stored, resold, or returned. This is in contrast to goods that can be stored in inventory, resold, or returned if the customer is unhappy.

Answer 9

Perishability

Question 10

T he primary objective of marketers is to ___________ offerings that satisfy consumer needs and expectations, thereby achieving organizational goals.

Answer 10

Develop and Provide

Question 11

it is more difficult for customers to evaluate and choose services than goods, because services are _______ in nature and consumption is often intertwined with the production process.

Answer 11

Intangible

Question 12

Service Consumption

Answer 12

Prepurchase stage
Service Encounter stage
Postenciunter stage

Question 13

identification of one’s need and continues through information search, evaluation of alternatives to purchase decision.

Answer 13

Prepurchase stage

Question 14

Prepurchase stage attributes

Answer 14

Search attributes
Experience attributes
Credence attributes

Question 15

tangible characteristics that aconsumer can determine before buying aproduct.

Answer 15

Search attributes

Question 16

tangible characteristics that aconsumer can determine before buying aproduct.

Answer 16

Search attributes

Question 17

___________ include style, color, texture, smell, taste, and other tangible features. T hese attributes reduce the level of uncertainty while making apurchase decision

Answer 17

Search Qualities

Question 18

can be evaluated after purchase or during consumption. Customers must first experience the service and then they are able to assess such attributes as customer service, reliability, and atmosphere.

Answer 18

Experience attributes

Question 19

characteristics that are hard or even impossible to evaluate after purchase and consumption. most difficult to evaluate because customers may not have enough knowledge to assess the performance and level of quality of aspecific service.

Answer 19

Credence attributes

Question 20

characteristics that are hard or even impossible to evaluate after purchase and consumption. most difficult to evaluate because customers may not have enough knowledge to assess the performance and level of quality of aspecific service.

Answer 20

Credence attributes

Question 21

involves aseries of contacts with the service firms which cause certain consumers’ reactions. marketers have also to be aware of customers’ expectations, understand their feelings and reactions during the service delivery process and be able to deal with them.

Answer 21

Service encounter stage

Question 22

involves aseries of contacts with the service firms which cause certain consumers’ reactions. marketers have also to be aware of customers’ expectations, understand their feelings and reactions during the service delivery process and be able to deal with them.

Answer 22

Service encounter stage

Question 23

customers evaluate the service performance by comparing the service they perceive they have received with their expectations. there is an evidence of links between the level of customer satisfaction and the firm’s overall performance, which means that by creating more value for customers, the firm creates more value for its owners.

Answer 23

Postencounter stage

Question 24

__________ is akey outcome of the marketing process, marketers need to understand the sources of customers’ satisfaction or dissatisfaction.

Answer 24

Satisfaction

Question 25

customers assess the attributes and risks related to aservice offering and develop their expectations.

Answer 25

Decision-making process

Question 26

the elements an organization controls that can be used to satisfy or communicate with customers

Answer 26

Marketing mix

Question 27

means by which organizations seek to satisfy their customers. an offer which consists of any elements - tangible and intangible ones.

Answer 27

Product

Question 28

composed of acore product that respond to the customers’ primary needs and supplementary services which constitute value-added enhancements.

Answer 28

Service product

Question 29

ease of access that customers have to aservice. involve physical location decisions, decisions about which intermediaries to use, and what channels to choose - physical or electronic ones.

Answer 29

Place

Question 30

No marketing program can succeed without communications, which involves different methods and techniques used to deliver information about an offer, persuade the target customers of the benefits of aspecific brand, and encourage them to take action at specific times.

Answer 30

Promotion

Question 31

important strategic issue because it is asignificant indicator of products’ quality. involve choices regarding the level of prices to be charged, discounts, terms of payment and the extent to which price differentiation is to be pursued.

Answer 31

Price

Question 32

Many services require direct interaction between customers and the firm’s personnel. The appearance, attitude, behavior and skills of the service personnel influence the customer’s perception of the service.

Answer 32

People

Question 33

The intangible nature of services and the fact that services are produced and consumed at the same time mean that it is difficult to judge aservice before purchase. includes such elements as brochures, business cards, signage, equipment and staff uniform.

Answer 33

Physical evidence

Question 34

Manufactured goods are produced in afactory, where quality standards are under control and customers themselves are not involved in the production.

Answer 34

Process