Services Marketing

Question 1

One of the primary differences between tangible goods and services involves the consumer’s ability to make prepurchase evaluations. For example, consumers can quite easily make comparisons and evaluations of shoes, jewelry and skis before making a purchase. On the other hand, consumers can evaluate services such as restaurants, ski instructors and tanning salons only during or after the purchase. Based on the typology of properties of products and services discussed in the text, tangible products have more __________ properties, while services have more __________ properties.
A. Consistent; search
B. Search; experience
C. Experience; search
D. Inconsistent; consistent

Answer 1

B

Question 2

Which of the following is true regarding customer retention?
A. Frequency refers to the last time a customer purchased a service or product.
B. It is cheaper to recruit new customers than to use relationship marketing to retain current ones.
C. “RFM” refers to Relationship, Frequency, Monetary Value
D. Long-term customers are less price sensitive than short-term customers.

Answer 2

D

Question 3

The a spa has photographs of people enjoying the various spa amenities. By seeing the pictures of what is available at the spa, a customer has a better idea of what she is buying. The spa uses a brochure to help customers deal with the __________ that is associated with all services.
A. Inconsistency
B. Incongruity
C. Inseparability
D. Intangibility

Answer 3

D

Question 4

. Mitchell owns a local bakery, the Bread & Joe Shack, that is renowned for its coffee. He has many different customers that come in each day, but his sales fluctuate. To avoid this he decides he needs to create more loyal customers, so he begins a rewards card program. Every B-Shack card member will get their 10th cup of coffee free, a free croissant once a month, an email newsletter from B-Shack, and premade daily coffee so that they don’t have to waste time ordering. What is the combination of benefits that are offered by the Bread & Joe Shack?
A. One hard benefit, three soft benefits
B. Two hard benefits, two soft benefits
C. Three financial benefits, one soft benefit
D. Two financial benefits, two service benefits

Answer 4

B

Question 5

Acme Cats is a nonprofit organization that catches wild or stray cats, neuters them, vaccinates them, and releases them back into the wild. The personnel of Acme Cats are caring people who love animals and try to do what they can to meet the needs of each cat they care for. The caring nature of the personnel relates to which service quality dimension?
A. Empathy
B. Reliability
C. Tangibles
D. Assurance

Answer 5

A

Question 6

Paul picks up a frozen pizza at the grocery store and pops it in the oven when he gets home. When his roommate Tracy arrives a little later, she has a takeout pizza with her. On the experience continuum, Paul’s pizza is a(n) _____ , while Tracy’s is a(n):
A. experience, service
B. product, experience
C. good, good
D. good, service

Answer 6

D

Question 7

Tami decides to check out a new clothing retailer in the mall called “Fashion”. When she is at the register to buy a few items, the sale associate informs Tami of Fashion’s loyalty program. After a customer’s first purchase, they receive a “fashion passport” that is stamped every time they make a purchase over $20 in the future. Once a customer receives 10 stamps, they become a “fashion frequent flyer” and get the benefit of receiving mailings about new store products on a weekly basis. After 20 stamps, the customer becomes a “fashion VIP”, where they receive invitations for sneak peaks at the store’s new merchandise. Which of the following describe Fashion’s loyalty program strategy?

  I.    interactive marketing
  II.    frequency marketing
  III.   hard benefits
  IV.  database marketing
  V.   soft benefits 

A. II, V only
B. III, IV, V only
C. II, III only
D. I, III only

Answer 7

A