Quiz 7: Value Through Services, Relationships and Experiences

Which of the following can be regarded as a service? A)Watch B)Clothes C)Car Repair D)Car

Many loyalty schemes run by organizations aim to attract and retain customers on a purely _______ basis. A)social B)financial C)structural D)personal

Consumers may stay loyal to an organization for reasons of inertia rather than true loyalty.

The length of time customers have been with the firm is more important than the nature of loyalty.

The link between customer loyalty and profitability is a very important one in marketing. Associations between a small increase in customer retention and a(n) _______ increase in profitability have been identified. A)small B)minimal C)large D)non-existent

There is a link between customer loyalty and profitability, due to the propensity of loyal customers to spend more with the organization and the reduced _______ of serving such customers. A)cost B)value C)profit D)result

Relationship marketing focuses on trying to move consumers up the ladder of _______ until they become advocates or partners of the organization. A)loyalty B)relationships C)service D)retention

The ladder of loyalty is based on the idea that the focus should be on moving people from being prospects to customers, to clients, to supporters, advocates and finally _______. A)associates B)partners C)laggards D)innovators

At the top of the loyalty ladder are _______ who trust and support the organization and work with it. A)supporters B)clients C)partners D)prospects

Allied to the provision of service quality and relationships, the creation of customer _______ is another avenue for organizations to deliver value for customers. A)expectations B)experiences C)responses D)reactions

Companies can use _______ marketing to improve service quality and relationships. This involves either partnering with existing events or creating entirely new ones. A)experiential B)experimental C)exceptional D)exponential

The use of experiential marketing allows marketers to use relevant ways of communicating with audiences at events using _______ media and word-of-mouth marketing. A)direct B)social C)mass D)indirect

The fact that many shopping malls now have cinemas, gyms, swimming polls, theatres and galleries attached, illustrates the retail trade's move towards the use of experiential marketing to enhance the consumer's shopping ________. A)episodes B)exceptions C)exploits D)experience

The ideal experiential marketing effort is one that _______. A)is an ownable experience B)is a sensory brand experience C)makes customers feel like the product or service is theirs D)is all of the above

A good experiential marketing effort makes customers feel like the product or service is theirs and these motivated consumers then become product _______ who influence family and friends to try the product. A)palsies B)laggards C)advocates D)all of the above

The increased association of brands with events such as rock concerts and music festivals, is known as _______ marketing. A)direct B)mass C)social D)experiential

Companies can create value through the provision of customer experiences which can be used to improve the consumer's _______ with the organization. A)hope B)concern C)relationship D)expectation

Experiential marketing is something that can be used successfully within the retail trade to enhance the shopping experience.

Services are also known as _______. A)devices B)objectives C)things D)deeds

Some characteristics of non-profit organizations that distinguish them from profit-orientated firms are: they are subject to public scrutiny, educating the public is an important role, they have multiple publics and ________. A)conflicting objectives mean that it is hard to measure success B)they use a different marketing mix C)decision making is easier in non-profit organizations D)as their pricing goal is non-economic, their worth and standing is dependent on the profits they generate

Some non-profit organizations see their role as not only meeting the current needs of their customers, but also educating them in terms of _______. A)new ideas and issues B)cultural developments C)social awareness D)all of these issues

_______ marketing is a term that is used to describe efforts, mainly used by public service organizations to encourage positive social change e.g. healthy eating, reduced cigarette and alcohol consumption etc. A)Direct B)Social C)Experiential D)Public

The two broad groups that non-profit organizations serve are clients and ________. A)audiences B)customers C)donors D)beneficiaries

Non-profit organizations need to satisfy the needs of both donors and clients. Their donors may be individuals, companies or _______. A)patients B)audiences C)government bodies D)beneficiaries

Public sector non-profit organizations are subject to considerable public scrutiny, due to the fact that they are publicly funded from ________. A)taxes B)rates C)GDP D)inflation

Public _______ have an important role to play in generating positive word-of-mouth and establishing the identity of many non-profit organizations. A)codes B)causes C)objectives D)relations

When non-profit organizations are communicating to the public, the focus is on producing a positive assessment of the organization and reducing the perceived _______ of the donation so that donors develop trust and confidence in the organization. A)cause B)benefit C)risk D)worth

Donors may judge which charity to give to on the basis of _______. A)the charity's awareness and reputation B)the confidence that the funds won't be wasted on excessive administration C)perceived worthiness of the cause D)all of these will have an impact

Marketing _______ has an important role to play in the marketing of political parties, as by keeping in touch with public opinion, political parties have the information to differentiate themselves from their competitors on issues that are important to voters, A)mix B)research C)planning D)portfolios

The pricing of services provided by non-profit organizations tends to follow the guidelines applicable to profit-orientated pricing.

Non-profit organizations are uninterested in income.

Commercial marketing techniques such as consumer research, segmentation and marketing mix development have an important place in non-profit marketing.

Like most services, distribution systems for many non-profit organizations are long.

Measuring success in non-profit organizations is easier than in the for-profit sector.

Which of the following statements is true? A)Services are mainly tangible B)Services are mainly intangible C)Services usually have an equal amount of tangible and intangible elements D)None of the above are true

Which of the following is a unique characteristic of services? A)Conditionality B)Intangibility C)Invariability D)Separability

Which of the following is not an implication of intangibility? A)Pricing is straightforward B)Services cannot be inventoried C)Services cannot be easily communicated to customers D)Services cannot be owned

Which of the following is a solution to the challenge of intangibility? A)Using intangible cues B)Creating a strong competitive brand C)Encouraging positive word-of-mouth D)All of the above

Which of the following is a characteristic of perishability? A)Consumption cannot be stored for future use B)There is a need to match supply and demand C)A service cannot be stored and sold later D)All of the above are characteristics of perishability

Which of the following is a means of managing variability? A)Selection, training and rewarding of staff B)Devaluation systems C)None of the above are means of managing variability D)All of the above are means of managing variability

Which of the following is a characteristic of inseparability? A)Simultaneous production and consumption B)Use of tangible cues C)Use of differential pricing D)Use of a reservation system

Which of the following is a method of managing perishability? A)Full-time staff B)Multi-skilling of employees C)Customer separation from production D)All of the above are supply side methods of managing perishability

Which of the following is an example of a pure service? A)Psychotherapy B)Clothing C)Machinery D)Software design

Service standardization is a related method of tracking which of the following? A)Conditionality problem B)Intangibility problem C)Variability problem D)Inseparability problem

Which of the following is a part of the extended services marketing mix? A)Product B)Price C)Promotion D)None of the above

Which of the following is a part of the extended services marketing mix? A)Physical evidence B)Production C)Personalization D)All are part of the extended services marketing mix

Why is there a need to extend the traditional 4-Ps marketing mix for services? A)The high degree of direct contact between the firm and the customer B)The invisible nature of the service assembly process C)The separation of production and consumption D)All of the above

Which of the following is a characteristic of a successful brand name? A)Flexibility B)Distinctiveness C)Memorability D)All are characteristics of an successful brand name

Which of the following is a means of stimulating word-of-mouth communications? A)Persuading satisfied customers to inform others of their satisfaction B)Targeting opinion followers in advertising campaigns C)Encouraging staff to talk to customers D)All of the above

Effective internal marketing targets which of the following? A)Customers B)Staff C)Investors D)Distributors

Why do service companies often follow a multi-site strategy? A)Heterogeneity B)Variability C)Simultaneous production and consumption D)None of the above

The term 'moment of truth' is used to describe which of the following? A)The interaction between two customers B)The interaction between two staff members C)The interaction between a staff member and a customer D)None of the above

Which of the following is of crucial importance in the achievement of high standards of service quality? A)Selection, training and rewarding of staff B)The provision of a high quality product with excellent features C)The very close monitoring of staff D)All of the above

Customers look for clues to the likely quality of a service by inspecting the tangible evidence, also known as the _______. A)servicescape B)servicescope C)servicemap D)servicecode

What is meant by the term "service efficiency"? A)Service quality B)Service productivity C)Servicescape D)Service branding

What is meant by the term "service effectiveness"? A)Servicescape B)Service productivity C)Service quality D)Service branding

The procedures, mechanisms and flow of activities by which a service is acquired, is known as: A)People B)Physical evidence C)Process D)Place

Productivity is defined as: A)A measure of the relationship between an input and an output B)A measure of customer satisfaction C)A measure of effectiveness D)All of the above

A doctor who reduces consultation time per patient is _______. A)improving his/her service efficiency B)reducing price sensitivity to customers C)improving the effectiveness of service delivery D)none of the above

What is the outcome of expected service being equal to perceived service? A)Customer satisfaction B)Customer dissatisfaction C)Customer indifference D)None of the above

Which of the following explains why there may be a gap between what the customer wants and what management think that they want? A)Lack of upward communication B)Lack of marketing research C)Being too far removed from customers D)All of the above

When there is a gap between senior management perceptions and the service level criteria that they set for the organization, this gap may be closed by ensuring that _______ service goals are an important part of the organizations's targets. A)competitor B)staff C)company D)customer

Which of the following is not a barrier to the matching of expected and perceived service levels? A)Misconceptions B)Resource surplus C)Inadequate delivery D)Exaggerated promises

Which of the following explains why there may be a gap between the service level targets set by the organization and the actual level of service that is delivered by front-line staff? A)Lack of financial resources B)Failure to select, train and reward staff properly C)Lack of marketing research D)All of the above

Which of the following explains why there may be a gap between service delivery and company communications with customers? A)Lack of marketing research B)Exaggerated customer promises C)All of the above D)None of the above

Which of the following are important dimensions of service quality? A)Trustworthiness, reliability, reciprocity, reputation and flexibility B)Reliability, responsiveness, empathy, assurance and tangibles C)Reputation, responsiveness, intangibles, durability and reliability D)Assurance, reliability, responsiveness, reputation and flexibility

Which of the following questions do customers use when evaluating a service? A)Is the service provided at convenient locations and times with little waiting? B)Can customers trust the service company and their staff? C)Can the service be used without risk? D)All of the above

The ability to provide the service dependably and consistently refers to which of the following dimensions of service quality? A)Tangibles B)Reliability C)Access D)Courtesy

Providing a service that customers can trust, refers to which service quality dimension? A)Assurance B)Tangibles C)Courtesy D)None of the above

Willingness to help customers and provide a prompt response to customer problems, requests and questions refers to which of the following dimensions of service quality? A)Reliability B)Courtesy C)Tangibles D)Responsiveness

Staff appearance, décor and layout refer to which of the following dimensions of service quality? A)Access B)Credibility C)Tangibles D)Courtesy

Relationship marketing is particularly important for service firms because _______. A)the lack of inventory of services affects consumer relations B)staff recruitment and training is less important C)there is often direct contact between the service provider and the consumer D)all of the above

Which of the following is not a condition suggesting the use of relationship marketing activities? A)There is an ongoing desire for the service by the customer B)The customer controls the selection of the service provider C)The customer has alternatives from which to choose D)All of the above are conditions suggesting the use of relationship marketing activities

Which of the following examples suggest the use of relationship marketing activities? A)Funeral service B)Taxi service C)Insurance service D)None of the above

Which of the following is not a benefit of service organizations developing and maintaining strong customer relationships? A)A short-term competitive advantage B)Lower costs C)Word-of-Mouth D)Employee job satisfaction

Which of the following is an organizational benefit of strong customer relationships? A)Positive word-of-mouth B)Increased customer purchases C)Lower costs D)All are benefits of strong customer relationships

Which of the following are benefits customers reap from entering into a long term relationship? A)Risk and stress increase B)Better quality service C)Social and status risks D)None of the above

Which of the following best describes a level one customer bond? A)At this level, the bond is primarily through financial incentives B)At this level, the bond is through financial and social incentives C)At this level, the bond is through financial, social and structural bonds D)At this level, the bond is through social incentives

Which of the following best describes a level two customer bond? A)At this level, the bond is primarily through financial incentives B)At this level, the bond is through financial and social incentives C)At this level, the bond is through financial, social and structural bonds D)None of the above

Which of the following best describes a level three customer bond? A)At this level, the bond is primarily through financial incentives B)At this level, the bond is through financial and social incentives C)At this level, the bond is through financial, social and structural bonds D)None of the above

Characteristics of a level one relationship include: A)Price incentive B)Personal treatment C)Tying the customer to the provider by providing solutions to customer problems that are designed into the service delivery system D)All of the above

The first step in a service recovery process is to: A)Encourage learning so that service recovery problems are identified and corrected B)Train and empower staff to respond to customer complaints C)Set up a tracking system to identify system failures D)None of the above

The second step in a service recovery process is to: A)Encourage learning so that service recovery problems are identified and corrected B)Train and empower staff to respond to customer complaints C)Set up a tracking system to identify system failures D)None of the above

The third step in a service recovery process is to: A)Set up a tracking system to identify system failures B)Train and empower staff to respond to customer complaints C)Encourage learning so that service recovery problems are identified and corrected D)None of the above

Offering customers loyalty points is an example of: A)Level 3 bonding B)Level 2 bonding C)Level 1 bonding D)None of the above

Effective service recovery systems lead to: A)Elimination of customer service B)Improved customer dissatisfaction C)Higher customer retention D)Higher customer defection

The distribution channels through which a service is delivered is known as: A)Product B)Price C)Promotion D)None of the above

Squeezing more tables into a restaurant will: A)Increase productivity but may decrease service quality B)Increase service quality but may decrease productivity C)Increase service quality only D)None of the above

The attractiveness of a waiting environment may influence perceptions regarding which unique service characteristic? A)Product B)Promotion C)People D)Physical evidence

Serving more people with the same number of staff input will: A)Increase productivity B)Reduce efficiency C)Reduce productivity D)None of the above

Characteristics of a level three relationship include: A)Price incentive B)Personal treatment C)Tying the customer to the provider by providing solutions to customer problems that are designed into the service delivery system D)All of the above

Front-line employees are important because: A)Often they are the service in the eyes of the customer B)They are the private face of the organization C)They are a vital source of information on the company for the organization D)None of the above

Service quality is a measure of: A)How service perceptions match with customer expectations B)How management performance matches with employee expectations C)How company performance matches with shareholder expectations D)None of the above

Company name and reputation is an example of which of the following service dimensions? A)Understanding the customer B)Assurance C)Courtesy D)Responsiveness

Service staff's ability to act in a friendly and polite manner and to care for their customers, is an example of which of the following service dimensions? A)Empathy B)Communication C)Credibility D)Courtesy

Which of the following influence customer expectations of service? A)Word-of-mouth communications B)Public needs C)Future experience D)None of the above

A service recovery strategy is designed to: A)Create a problem B)Improve the service delivery system C)Attract customers D)None of the above

Research has shown that a successful resolution of a customer complaint can: A)Restore customer confidence to the level it was before the service failure B)Make customers feel more positive about the firm than before the service failure C)Improve customer confidence but to nowhere near the level it was before the service failure D)None of the above

Which of the following is a term used to describe a service? A)Goods B)Perceptions C)Acts D)All of the above are terms used to describe a service

The simultaneous production and consumption of a holiday illustrates which of the following service characteristics? A)Inseparability B)Perishability C)Variability D)None of the above

Two marketing courses delivered at the same university may vary considerably in terms of quality. Which of the following service characteristics does this example illustrate? A)Intangibility B)Variability C)Inseparability D)Perishability

One of the characteristics of services is their perishability. Perishability can be overcome through the use of which of the following: A)New product development B)Creative promotional strategy C)Effective distribution channels D)Differential pricing

Which of the following methods helps tackle the problem of service variability? A)Service mapping is a method of tackling the variability problem B)Service recovery is a method of tackling the variability problem C)Service standardization is a method of tackling the variability problem D)None of the above are methods of tackling the variability problem

Which of the following is an organizational benefit of strong customer relationships? A)Reduced purchases B)Lowers switching costs C)Increases employee job switching D)Removes a sustainable competitive advantage

Which of the following is a barrier to the matching of expected and perceived service levels? A)Conceptions B)Exaggerated promises C)Adequate delivery D)None of the above

Which of the following are most influential in communicating services to consumers? A)Brochures B)Web site C)Word-of-mouth recommendations D)Direct Mail

A negative customer experience may result in which of the following: A)Positive word-of-mouth B)Customer complaint C)Customer retention D)All of the above

The service sector continues to become increasingly important throughout the developed world.

It is more difficult to evaluate a product than a service.

Intangibility means that customers may find difficulty in evaluating a service before purchase.

An advantage of services is that customers can own them.

Distribution channels are usually more direct for physical goods than for services.

All service encounters have the potential for long term relationships.

Physical evidence, process and place are part of the extended marketing mix for services.

Positive word-of-mouth is key to the success of services because of their experiential nature.

Because of service variability high productivity can be difficult to achieve.

Customers base their evaluation of service delivery on both its outcome and process.