Question 1

Because of perishability of services, service marketers cannot plan for demand that fluctuates according to day of the week, time of day, or season.

Accepted Answer

Service marketers can plan for fluctuating demand by using strategies such as differential pricing, reservation systems, and flexible staffing to manage the perishability of services.

Question 2

The intangible nature of services often leads customers to rely on price as an indicator of quality.

Accepted Answer

Customers often use price as a proxy for quality in services because they cannot physically evaluate the service before purchase, making it difficult to assess its value.

Question 3

If the quality of different service providers is likely to vary, customers seldom rely on the price-quality association.

Accepted Answer

Customers often rely on the price-quality association when the quality of service providers varies, as they may perceive higher prices as an indicator of better quality.

Question 4

Training of employees is more important in low-contact services than in high-contact services.

Accepted Answer

In high-contact services, employees interact directly with customers, making their training crucial for ensuring customer satisfaction and service quality.

Question 5

Service providers offering discounted deals to existing customers who refer new customers to them are using existing customers as a part of their service promotion strategies.

Accepted Answer

Service providers use referral programs as a strategy to leverage existing customers to attract new ones, thus promoting their services.

Question 6

Advertisements for services use tangible cues to help customers understand the intangible attributes associated with a particular service.

Accepted Answer

Advertisements for services often use cues such as images, videos, and descriptive language to make the intangible attributes of a service more concrete and understandable to potential customers.

Question 7

A supplementary service is the basic service experience or commodity that a customer expects to receive.

Accepted Answer

A supplementary service is an additional service that enhances or supports the core service or product, not the basic service itself.

Question 8

The goal of building client-based relationships is to satisfy customers so well that they become very loyal and would be unlikely to switch to competitors.

Accepted Answer

Building strong client-based relationships is all about creating customer loyalty and satisfaction so that they stick with your brand and are less likely to switch to competitors. This can lead to repeat business, positive reviews, and referrals, all of which can be powerful drivers of growth and success for your business.

Question 9

The supply and demand of a service can be balanced by keeping the service price inflexible regardless of the time of day, week, or year.

Accepted Answer

Inflexible pricing does not account for fluctuations in demand and supply, which can vary by time, leading to imbalances.

Question 10

People-based services are often prone to fluctuations in quality from one time period to the next.

Accepted Answer

People-based services rely on human performance, which can vary due to factors like mood, fatigue, and skill level, leading to fluctuations in service quality.

Question 11

A hairstylist who gives good haircuts in the morning but tends to give haircuts of lesser quality in the evening hours is affected by the challenges associated with intangibility of the haircut service.

Accepted Answer

Intangibility refers to the inability to touch or see the service before it is performed. The hairstylist's varying performance is more likely related to factors like fatigue or consistency, not intangibility.

Question 12

Because of the heterogeneity and intangibility of services, customers tend to believe company-sponsored advertising rather than word-of-mouth communication while gathering information about a service product.

Accepted Answer

Customers often trust word-of-mouth communication more than company-sponsored advertising due to its perceived authenticity and personal experience.

Question 13

Demand-based pricing of a service denotes low prices during times of low demand and high prices during times of high demand.

Accepted Answer

Demand-based pricing adjusts prices according to the level of demand, lowering prices when demand is low and raising them when demand is high to maximize revenue.

Question 14

Client-based relationships are interactions that result in satisfied customers who repeatedly use a service over time.

Accepted Answer

Client-based relationships focus on creating long-lasting relationships with satisfied customers who continue to use a service over time.

Question 15

Both the service provider and the customer must work together to provide and receive a service's full value.

Accepted Answer

The service provider and the customer must collaborate to ensure that the service meets the customer's needs and expectations, thereby realizing its full value.

Question 16

The ability to customize services to match the specific needs of individual customers is an advantage to service marketers as it enables them to offer standardized packages.

Accepted Answer

The answer of The ability to customize services to match...

Question 17

Demand-based pricing relies on information concerning peak demand and off-peak demand of a particular service.

Accepted Answer

Demand-based pricing involves setting prices based on the demand levels for a service, adjusting prices higher during peak demand and lower during off-peak times to maximize revenue.

Question 18

The intangibility of services results in promotion-related challenges for service marketers because it is difficult to depict the actual performance of a service in an advertisement or to display it in a store.

Accepted Answer

The intangibility of services means they cannot be seen, touched, or tried before purchase, making it challenging to demonstrate their value or quality in promotional materials.

Question 19

To manage products effectively, a product manager of an organization must be independent of other departments.

Accepted Answer

A product manager needs to collaborate with various departments such as marketing, sales, engineering, and customer support to ensure the product's success.

Question 20

Intangible cues are used by service marketers to provide customers with assurance of service quality.

Accepted Answer

The answer of Intangible cues are used by service marketers...

Quiz 11: Developing and Managing Goods and Services