Question 1

Identifying the customers they want to serve or attract is a nonprofit strategy.

Accepted Answer

Nonprofits, like any other organizations, must identify their target audience/market to effectively reach and serve them. This is a basic component of strategic planning for nonprofits.

Question 2

Often hotels will offer deep discounts on weekends and during the off-season; for the same reason, airlines will adopt a similar pricing strategy during off-peak hours. These services cannot be stored, warehoused, or inventoried because they are perishable.

Accepted Answer

This statement is true. Perishable services like hotel rooms and airline seats cannot be stored, warehoused, or inventoried, so hotels and airlines offer deep discounts during slow times to increase demand.

Question 3

The only marketing mix component nonprofit organizations do not use is price.

Accepted Answer

Nonprofit organizations still use price in their marketing mix, although it may manifest differently, such as suggested donations, membership fees, or the cost of services, rather than traditional product pricing.

Question 4

Greta Rojas, owner of House Mouse Cleaning Services, must be physically present when she cleans a house or office. The need for her presence as the service is performed is an example of the intangibility of services.

Accepted Answer

The need for Greta Rojas to be physically present when cleaning a house or office is an example of the inseparability of services, not their intangibility. Inseparability refers to the fact that services often cannot be separated from the provider, whereas intangibility refers to the fact that services cannot be seen, tasted, felt, heard, or smelled before they are bought.

Question 5

Nonprofit organizations may or may not require special facilities for distribution of their services.

Accepted Answer

Nonprofit organizations may need special facilities such as community centers, shelters, or medical clinics to distribute their services. However, some nonprofit organizations may be able to distribute their services without a physical location or special facilities.

Question 6

Insurance companies are examples of service organizations.

Accepted Answer

Insurance companies provide services such as insuring against unexpected events and providing financial protection to their customers.

Question 7

Vera is designing a promotional strategy for a company that provides premium boarding services for pampered animals. Her promotions should use personal information sources and stress the tangible cues associated with the service.

Accepted Answer

Personal information sources, such as word-of-mouth recommendations from satisfied customers, can be an effective promotional tool for a premium service like luxury pet boarding. Additionally, highlighting tangible cues such as plush bedding, gourmet meals, and personalized attention from staff can help emphasize the high-end nature of the service.

Question 8

The Bay offers its corporate employees flexible work hours, work-at-home programs, on-site child care, and travel benefits that reward quality performance. The Bay's approach illustrates relationship marketing in action.

Accepted Answer

The Bay's approach illustrates employee benefits and workplace incentives, not relationship marketing, which focuses on building long-term relationships with customers.

Question 9

Canada's nonprofit and voluntary sector is the second largest in the world.

Accepted Answer

According to Statistics Canada, Canada has the second largest nonprofit and voluntary sector in the world, with over 160,000 organizations registered as charities.

Question 10

Service firms may adopt patronage-oriented pricing to try to maximize the surplus of income over costs.

Accepted Answer

Service firms may adopt patronage-oriented pricing to try to maximize the number of customers using the service.

Question 11

The only type of service processing required for a comedian entertaining at a local club is information processing.

Accepted Answer

While information processing may be a component of a comedian's performance (for example, using clever wordplay or telling stories), there are also other types of service processing involved, such as creating a specific atmosphere or mood, interacting with the audience, and delivering a unique entertainment experience.

Question 12

The speed with which an ambulance can get to an accident site is an indication of the reliability dimension of service.

Accepted Answer

The answer of The speed with which an ambulance can...

Question 13

Advertisements that promote programs, activities, or services of nonprofit organizations are called PSAs (public service advertisements) if there is no charge to the sponsor of the message.

Accepted Answer

PSAs are specifically meant to promote social welfare causes, and are broadcasted at no cost to the sponsoring organization.

Question 14

Services are considered intangible because most services cannot be felt or touched in the same way most goods can be sensed.

Accepted Answer

Services are intangible as they cannot be perceived through touch or other physical senses. They are often experienced through interaction or performance by a service provider.

Question 15

The service offering can be viewed as a bundle of activities that includes the core service.

Accepted Answer

This is true. A service offering includes not only the core service but also a bundle of activities that support and enhance the core service, such as customer service, delivery, and follow-up support.

Question 16

The gap model of service quality shows how customers can be trained to respond more appropriately to the service being offered.

Accepted Answer

The gap model of service quality is a framework that identifies the five gaps that can occur when designing and delivering a service. It does not focus on training customers, but rather on identifying and addressing gaps in the service delivery process that can impact the quality of the service experienced by customers.

Question 17

Virtual Bellhop is a company that ships your skiing equipment and your golf clubs to a vacation site so they are there when you arrive and you don't have to carry them through the airport. There is no way this company could institute relationship marketing.

Accepted Answer

Virtual Bellhop could institute relationship marketing by building strong customer relationships through personalized communication, offering loyalty rewards, and providing excellent customer service.

Question 18

Public relations is a valuable tool for nonprofits.

Accepted Answer

Public relations can help nonprofits gain exposure, build trust, and raise awareness about their cause, which can lead to increased donations and support from the community. It can also help nonprofits establish and maintain positive relationships with media outlets, influencers, and other key stakeholders. Therefore, public relations is indeed a valuable tool for nonprofits.

Question 19

An example of below-cost pricing is college tuition.

Accepted Answer

College tuition is often set below the actual cost of providing education, which is an example of below-cost pricing.

Question 20

Inconsistency of services means the quality of a service may not be tangible.

Accepted Answer

Inconsistency of services refers to the variability in the quality of services provided, not to the tangibility of the service itself.

Quiz 12: Services and Nonprofit Organization Marketing