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Gina and Henry were having breakfast when they decided they wanted to have pizza and watch a movie that night.When she got home from work,Gina turned on her computer,logged on to the Netflix site,and chose the movie Moneyball to view via online video streaming.Next she logged on to her favorite pizza restaurant's Web site and ordered a large pepperoni pizza and a bottle of soda to be delivered at 6:45 p.m.Gina and Henry enjoyed their evening.Which trend that influenced the development of services marketing is illustrated here?


A) The increasing importance of service industries to the U.S.and world economies
B) The decrease of human interaction as a result of widespread use of technology-based services
C) The growth in the use of technology-based services
D) Increased competition in the entertainment industry
E) The fact that manufacturing firms are placing increased emphasis on providing services

F) B) and C)
G) B) and E)

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Which of the following statements about how technology has positively influenced service is true?


A) Technology provides approaches for delivering existing services in more accessible,convenient,productive ways
B) Technology facilitates basic customer service functions
C) Technology facilitates transactions by offering a direct vehicle for making purchases
D) Technology provides an easy way for customers to learn and do research about products and companies
E) All of the above statements about how technology has influenced service are true

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

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Ruth recently visited a day care center that is convenient to her work.Ruth is thinking of letting the day care workers care for her infant son while she is at work.The first thing Ruth noticed when she walked in the door of the facility was the smell of urine.There was a dead plant in the window.Toys were strewn about the floor and Ruth almost tripped over a tricycle.In this example,Ruth experienced negative aspects of the _____ element of the day care center's services marketing mix.


A) Product
B) Production
C) Process
D) Place
E) Physical evidence

F) B) and C)
G) C) and D)

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_______ qualities are characteristics of a product consumers may find impossible to evaluate even after purchase and consumption.


A) Search
B) Cognitive
C) Perceptual
D) Experience
E) Credence

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

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Parents everywhere are very busy and often cannot spend time with their children.In the Netherlands,children who want a bedtime story can call the telephone service and request to listen to one of twenty prerecorded fairy tales.The phone company charges $7 per story.Because of the prerecording of the stories,this bedtime service reduces the problems typically associated with the _____ characteristic of services.


A) Versatility
B) Heterogeneity
C) Simultaneous production and consumption
D) Perishability
E) Intangibility

F) None of the above
G) C) and D)

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Which of the following is an intangible component of a car repair shop?


A) Replacement parts
B) Employee uniforms
C) Barrel for storing recyclable motor oil
D) The training the mechanic has received
E) Customer waiting area

F) A) and C)
G) A) and E)

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Extron Electronics makes coaxial cables for connecting computers to all types of peripheral devices like printers,modems and fax machines.For the benefit of its customers,Extron provides a laminated card with pictures of all the possible cable connections that a customer could need.With this card,a customer can order from one to any number of connectors with as many feet of cable as is needed.Orders can be placed using a toll-free number,a fax number or an e-mail address.Company reps are also available 24-hours a day in case the customer is not sure which drawing on the card matches his or her needs.Orders are shipped within 48-hours of receipt.If a customer is not completely satisfied with his or her order,Extron has a 100 percent satisfaction guaranteed return policy.Which of the following trends has influenced the development of services marketing concepts and strategies as illustrated by Extron's focus on customer service?


A) The increasing importance of service industries to the U.S.and world economies
B) The increase of government regulation of service industries
C) The growth in information-based technology
D) Increased competition in professional services
E) Manufacturing firms are placing increased emphasis on providing services

F) A) and B)
G) B) and C)

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The first time Barry brought his car to Auto Lube to have the oil changed,he was very satisfied with the service.The service manager consulted him several times while his car was being serviced,asked him if there were any problems with the car,recommended when additional services should be performed and answered questions directly and politely.However,when Barry went back to Auto Lube after three months to have his oil changed again,he was not satisfied with the service.The manager spoke to him only when he arrived and when he paid his bill.In addition,the manager was impatient and unfriendly during the interaction.Barry's experience at Auto Lube illustrates the _____ of services.


A) Intangibility
B) Heterogeneity
C) Simultaneous production and consumption
D) Perishability
E) Divisibility

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

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The development of services marketing concepts has been strongly influenced by professional services like doctors and attorneys.

A) True
B) False

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An airline is concerned with whether its passengers are satisfied with how their luggage is handled before,during and after a flight.With which element of the services marketing mix is the airline concerned?

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What do a vacation to Jamaica and a haircut have in common besides the fact that they are both services?

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They are both high in experien...

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List the four characteristics that distinguish services from goods and discuss how each would impact the marketing of a chain of fitness centers that is being started by six former Olympic athletes.

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Answe: Student answers will vary.They ne...

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A tax accountant may provide a different service experience to two different customers on the same day depending on their individual needs and personalities and on whether she is meeting with them when she is fresh in the morning or tired at the end of the day.This is an example of service _____________.


A) Versatility
B) Heterogeneity
C) Simultaneous production and consumption
D) Perishability
E) Intangibility

F) B) and D)
G) All of the above

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_____ is a key determinant of whether an offering should be classified as a product or a service.


A) Physicality
B) Audience passivity
C) Intangibility
D) Perception
E) Abstraction

F) C) and D)
G) A) and B)

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Bob Wilson owns and operates Flashdance Skating Rink.Last Monday afternoon,he had rented the rink out for a birthday party that was cancelled at the last minute due to a flu epidemic that had sickened three-fourths of the children who were invited.While Wilson kept the deposit,he did not get the skate rental fees or the snack food money he had anticipated from the rental.Wilson lost money as a result of the _____ characteristic of services.


A) Heterogeneity
B) Simultaneous production and consumption
C) Incomparability
D) Perishability
E) Intangibility

F) A) and B)
G) A) and C)

Correct Answer

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Keith overheard two women comparing the way the dog groomer clipped their poodles.One claimed the groomer did not cut the hair between her dog's toes as was advertised,but that everything else about the cut was perfect.The other groused that the groomer left the hair on her dog's tail too long,but at least the hair on his feet had been cut.Which characteristic of service were the two women discussing?

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On a recent visit to The Home Depot store,a sales associate greeted Madison when she entered the store,helped her locate the items she needed to repair her gutters and suggested how she could prevent gutter problems in the future.The assistance provided by the sales associate illustrates the ______ of services.


A) Intangibility
B) Comparability
C) Divisibility
D) Perishability
E) Compatibility

F) A) and E)
G) D) and E)

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What is the key determinant of whether a product is a good or a service?

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In many cultures,weddings are timed to occur on lucky days.In 2011,wedding planners from Las Vegas,Nevada to Mumbai,India knew long before the auspicious date of November 11th (11/11/11) that this would be one of their busiest days of the year,if not the century.Because other dates would just not be as lucky for the blushing brides and grooms,and simply would not suffice,the wedding planners had to prepare all year for more weddings on this one date than on any other day throughout the year.This example illustrates the _____ characteristic of services.


A) Versatility
B) Heterogeneity
C) Simultaneous production and consumption
D) Perishability
E) Intangibility

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

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Because the production and consumption of services is simultaneous,the mass production of services is difficult.

A) True
B) False

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