Chapter 12: Service and Nonprofit Organization Marketing

Question 1

Service

Answer 1

The result of applying human or mechanical efforts to people or objects.

Question 2

Intangibility

Answer 2

The inability of service to be touched seen, tasted, heard, or felt in the same manner that goods can be sensed.

Question 3

Search quality

Answer 3

A characteristic that can be easily assessed before purchase. Services lack this.

Question 4

Experience quality

Answer 4

A characteristic that can be assessed only after use. This is what services have.

Question 5

Credence quality

Answer 5

A characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience.

Question 6

Inseparability

Answer 6

The inability of the production and consumption of a service to be separated; consumers must be present during the production.

Question 7

Inconsistency

Answer 7

The inability of service quality to be consistent each time it is delivered because the service depends on the people who provide it.

Question 8

Inventory

Answer 8

The inability of services to be stored for future use.

Question 9

Reliability

Answer 9

The ability to perform a service dependably, accurately, and consistently.

Question 10

Responsiveness

Answer 10

The ability to provide prompt service.

Question 11

Assurance

Answer 11

The knowledge and courtesy of employees and their ability to convey trust.

Question 12

Empathy

Answer 12

Caring, individualized attention paid to customers.

Question 13

Tangibles

Answer 13

The physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service.

Question 14

Gap model:

Answer 14

A model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality.

Question 15

Gap 1: Knowledge gap

Answer 15

The gap between what the customers want and what management thinks customers want.

Question 16

Gap 2: Standards gap

Answer 16

The gap between what management think customers want and the quality specifications that management develops to provide the service. It is a result of management not having provided the appropriate service designs and standards.

Question 17

Gap 3: Delivery gap

Answer 17

The gap between the service quality specifications and the service that is actually provided.

Question 18

Gap 4: Communication gap

Answer 18

The gap between what the company provides and what the customer is told it provides.

Question 19

Gap 5: Expectation gap

Answer 19

The gap between the service that customers expect they should receive and the perceived service after the service has been provided.

Question 20

Marketing mix for services (8 Ps)

Answer 20

People, process, productivity, and physical environment as well as price, product, place, and promotion.

Question 21

Core service

Answer 21

The most basic benefits the customer is buying (The overnight rental of a bedroom at a hotel).

Question 22

Supplementary services

Answer 22

A group of services that support or enhance the core service (Room phone, room service, pay TV, meal, etc.).

Question 23

Mass customization

Answer 23

A strategy that uses technology to deliver customized services on a mass basis.

Question 24

Internal marketing

Answer 24

Treating employees as customers and developing systems and benefits that satisfy their needs.

Question 25

Nonprofit organization

Answer 25

An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment.

Question 26

Nonprofit organization marketing

Answer 26

The effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets.

Question 27

Public service advertisement (PSA)

Answer 27

An announcement that promotes a program of a nonprofit organization or of a federal, provincial or territorial, or local government.

Question 28

Relationship marketing level 1

Answer 28

Financial: pricing incentives to encourage continued business. Least effective in the long run.

Question 29

Relationship marketing level 2

Answer 29

Social: Building social bonds with customers by staying in touch and learning their needs.

Question 30

Relationship marketing level 3

Answer 30

Customization: Intimate knowledge of the individual and one-to-one solutions to meet their needs.

Question 31

Relationship marketing level 4

Answer 31

Structural: structural bonds are developed by offering value-added services that are not readily available by other firms. The most effective in establishing long-term relationships with customers.