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For a nonprofit service firm, the first step toward success in the global marketplace is determining the nature of its core products.

A) True
B) False

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True

Wildside Inc., a company that organizes wildlife tours, gives equal importance to customers and employees. The managers at Wildside Inc. ensure that the employees of the company are satisfied with their jobs. They believe that the employees should be kept happy as they are the brand ambassadors of the company. This scenario is an example of _____.


A) external marketing
B) shopper marketing
C) nonprofit marketing
D) internal marketing

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

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Stone Restaurant, a five-star restaurant, changes its centerpiece such as candles and vases every day. The waiters also creatively fold the napkins and place them on the tables at the end of each course. In this scenario, which of the following promotion strategies is adopted by Stone Restaurant?


A) Using personal information sources
B) Stressing tangible cues
C) Engaging in postpurchase communication
D) Creating a strong organizational image

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

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Generally, the intensity of distribution should exceed the target market's needs and preferences.

A) True
B) False

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Hannah likes to frequent Citrus, a fine dining restaurant, as she loves the beef lasagna there and orders it every time she visits the restaurant. However, during her recent visit, the lasagna she was served was undercooked. When she informed the manager about it, she learned that the food was cooked by a replacement chef as the usual chef was on leave. In this scenario, which of the following characteristics of services is responsible for the lack of consistency and quality of the food at Citrus?


A) Heterogeneity
B) Perishability
C) Intangibility
D) Inseparability

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

Correct Answer

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Unlike goods, services:


A) are produced in a centralized location and consumed in decentralized locations.
B) are tangible performances.
C) are stored, warehoused, and inventoried.
D) are more heterogeneous and less standardized and uniform.

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

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In the context of service processes, _____ takes place when the service is directed at a customer.


A) information processing
B) possession processing
C) mental stimulus processing
D) people processing

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

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Service quality is easier to define and measure than the quality of tangible goods.

A) True
B) False

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False

Which of the following statements is true of a firm's distribution strategy?


A) The intensity of distribution should exceed the target market's needs and preferences.
B) Having too many outlets to distribute products may boost costs unnecessarily.
C) The location of a service does not influence the distribution strategy of a time-dependent service provider.
D) Since services are intangible, many service firms choose indirect distribution strategies.

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

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Internal marketing is more important for goods manufacturers than service firms.

A) True
B) False

Correct Answer

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False

Tug Bark, a fast food chain from the United States, wants to open a branch in China. It plans to change its menu to appeal to the Chinese palate. In this scenario, Tug Bark is engaged in implementing the gap model of service quality.

A) True
B) False

Correct Answer

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The number of customers who dine at Eat and Den, a restaurant, varies on weekdays and weekends. On days when customer traffic is less, Eat and Den incurs losses because the food prepared on one day will not be fresh the next day. In this scenario, which of the following characteristics of services is the reason for Eat and Den's loss of revenue?


A) Heterogeneity
B) Perishability
C) Intangibility
D) Variability

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

Correct Answer

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Tina is an expert gardener. She provides services like setting up new gardens, maintaining gardens, and landscaping. In the context of service processes, the services provided by Tina come under the category of _____.


A) information processing
B) mental stimulus processing
C) possession processing
D) people processing

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

Correct Answer

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What are the challenges faced by service providers while deciding a pricing strategy?

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Answers will vary. The unique characteri...

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_____ is a strategy that uses technology to deliver tailor-made services on a large scale.


A) Place strategy
B) Promotion strategy
C) The service mix
D) Mass customization

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

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Marketers have more trouble promoting tangible goods than intangible services.

A) True
B) False

Correct Answer

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Nonprofit organizations differ from profit organizations in that nonprofit organizations:


A) target the niches that may be most profitable.
B) compete with, rather than complement, the efforts of others.
C) must often target those who are apathetic about or strongly opposed to receiving their services.
D) give priority to developing those market segments that are most likely to respond to particular offerings.

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

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What are the three product-related distinctions between business and nonprofit organizations?

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Answers will vary. There are three produ...

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Many nonprofit organizations are explicitly or implicitly prohibited from advertising, thus limiting their promotion options.

A) True
B) False

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According to the gap model of service quality, the gap between what customers want and what management thinks customers want results from:


A) a lack of understanding or a misrepresentation of the customers' needs, wants, or desires.
B) management's inability to translate customers' needs into delivery systems within the firm.
C) the inability of management and employees to do what should be done.
D) misleading or deceptive advertising campaigns promising more than the firm can deliver.

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

Correct Answer

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