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Which of the following statements concerning the health care industry is true?


A) Inseparability element presents more of a handicap than in other services.
B) The only means of distribution of health care is through direct channels.
C) There is little innovation in the health care industry.
D) The health care industry is not market oriented.

E) A) and C)
F) A) and D)

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Off-peak pricing


A) is used to overcome problems associated with the homogeneity of services.
B) is a strategy used to deal with fluctuating demand for services.
C) leads to service perishability and fluctuating demand.
D) is used to separate the service provider from the service.

E) C) and D)
F) B) and C)

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Goods are usually produced and sold by different people. This illustrates that goods are not


A) inseparable.
B) uniform.
C) perishable.
D) intangible.

E) B) and C)
F) A) and C)

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According to research, which of the following is a common aspect in market leaders' CSMs?


A) CSM programs are typically performed only when sales comes down.
B) Marketing and sales employees, aided by customer input, are primarily responsible for designing CSM programs.
C) Research for CSM programs is performed only when a new service is launched.
D) CSM programs typically use only qualitative research methods.

E) B) and D)
F) None of the above

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The continual process by which managers actively encourage, stimulate, and support employee commitment to the company, the company's goods and services, and the company's customers is known as


A) customer satisfaction measurement.
B) internal marketing.
C) a follow through process.
D) internal responsiveness.

E) A) and B)
F) A) and C)

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Due to their inseparability, services


A) are typically marketed through indirect channels of distribution.
B) can be inventoried.
C) are produced and consumed simultaneously.
D) create form utility.

E) A) and B)
F) A) and C)

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Since service firms are often not faced with _____ they often fail to recognize the need for change.


A) innovation
B) competition
C) environment factors
D) obsolescence

E) A) and B)
F) A) and D)

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Because of inseparability and high involvement on the part of the buyer, each service may be unique, while the quality will likely vary. This statement best exemplifies which characteristic of services?


A) Intangibility
B) Uniformity
C) Customer effort
D) Client relationship

E) A) and B)
F) A) and C)

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What is meant by "significant modeling by managers?"


A) Emphasize on teaching employees to have a good attitude.
B) Managers demonstrating the behavior that they intend to reward employees for performing.
C) Clearly defining the skills the service person must bring to the job.
D) Conveying a clear, concrete message that explains the service strategy that frontline people can begin to act on.

E) A) and B)
F) C) and D)

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Companies are able to practice targeted marketing with the use of all of the following, except


A) varying service bundles.
B) new technology.
C) alternative means of distributing the service.
D) only a single element of the marketing mix.

E) All of the above
F) A) and D)

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The Workshoppe is a company that teaches etiquette to Silicon Valley executives and anyone else interested. It runs a simple print ad campaign in which the owner shows a computer geek stereotype before the course wearing his napkin as a bib, licking his fork, and generally panicking. Next to that picture is one with the same individual after the course. The course graduate looks comfortable sitting at a table with a setting of twelve forks and three glasses, and correctly eating a Caesar salad. Identify the strategy employed here to overcome the problems associated with service intangibility.


A) The customer has been guaranteed the ownership of the service that can be used or given to others.
B) The service encounter has been distanced from the end benefit achieved.
C) The etiquette service has been distinguished from all other services.
D) End benefits resulting from completion of the service encounter have been accentuated.

E) A) and D)
F) B) and C)

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What strategy is being used when a hospital's maternity ward runs ads that emphasize its comfortable rooms and supportive staff?


A) The service encounter is being distanced from the end benefit achieved.
B) The tangible aspects associated with the service are being stressed.
C) End benefits resulting from completion of the service encounter are being accentuated.
D) The customer is being guaranteed the ownership of the service that can be used or given to others.

E) None of the above
F) All of the above

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Electrical problems in cars are often difficult to repair and time-consuming. A mechanic who can be counted on to fix electrical problems in cars consistently best exemplifies which of the following determinants of service quality?


A) Empathy
B) Tangibles
C) Reliability
D) Responsiveness

E) C) and D)
F) A) and C)

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Banks offering an account that combines checking, savings, credit card, and auto loan features are


A) bundling services.
B) not offering home banking systems.
C) marketing services only through branches.
D) making the maximum profit.

E) C) and D)
F) A) and B)

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A careful selection process in hiring frontline employees entails that management


A) clearly define the skills the service person must bring to the job.
B) constantly define the service strategy that frontline people can begin to act on.
C) pay the highest salaries in the market.
D) demonstrate the behavior that they intend to reward employees for performing.

E) A) and B)
F) All of the above

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Services are perishable and markets for most services fluctuate either by season, days, or time of day. All of the following represent business that are lost forever due to the perishable nature of services, except


A) unused telephone capacity and electrical power.
B) vacant seats on planes, trains, buses, and in stadiums.
C) time spent by catalog service representatives waiting for customers to reach them.
D) unsold winter apparel on a given day.

E) All of the above
F) A) and B)

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Which of the following statements about service quality is true?


A) A firm may not even realize that it us delivering poor-quality service due to differences in the way managers and consumers view acceptable quality levels.
B) Once determined, a service provider's definition of what constitutes good service does not change.
C) Both management and customers determine the value of service quality based on preset standards and not on actual performance.
D) When poor service is provided, both the service provider and the customer are well aware of the unacceptable level of quality.

E) C) and D)
F) A) and B)

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Despite its success in employing technology to attract additional customers and offer added convenience, the airline industry has operated in somewhat dire straits, plagued by problems associated with


A) under-capacity.
B) low perceived service quality.
C) yield management.
D) high instances of unionization.

E) B) and C)
F) C) and D)

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Over the course of the past 40 years, the fastest growing segment of the American economy has been the


A) independent management of major accounts.
B) production of tangible products.
C) performance of services.
D) merger and acquisition of businesses.

E) A) and D)
F) A) and C)

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Service _____ refers to the consistency and dependability of the service performance.


A) responsiveness
B) empathy
C) reliability
D) assurance

E) A) and C)
F) All of the above

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