Services Marketing
Chapter Exam Questions
Course Introduction
Services Marketing explores the unique challenges and strategies involved in marketing intangible products and creating high-value customer experiences. The course covers key topics such as managing service quality, building customer relationships, designing service delivery systems, and developing effective service communication strategies. Students will examine cases from industries like hospitality, healthcare, finance, and consulting to understand service development, positioning, and differentiation. Through practical projects and real-world examples, the course emphasizes the importance of customer satisfaction, loyalty, and the role of employees in service delivery, preparing students to effectively market and manage services in both domestic and global contexts.
Recommended Textbook
Marketing 2016 18th Edition by William M. Pride O. C. Ferrell
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Page 2
Chapter 1: An Overview of Strategic Marketing
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Q1) A target market is always defined by demographics.
A)True
B)False
Answer: False
Q2) Marketing professionals understand the challenges and implications of marketing in an inter-connected, global economy. While the discipline is primarily focused on building mutually-beneficial customer relationships for the firm, it has many other positive influences on the global economy that many in the general public are not aware of. For example, marketing creates a successful economy and leads to a _______________ for people all over the world. Additionally, ______________ can promote the welfare of customers and the firm's stakeholders.
A)equal standard of living; green marketing
B)higher standard of living; socially responsible marketing
C)higher level of education; target marketing
D)higher level of political awareness; socially responsible marketing
E)higher level of healthcare; non-profit marketing
Answer: B
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3
Chapter 2: Planning, Implementing, and Evaluating Marketing Strategies
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Q1) In a traditional organization, marketing decisions are generally centralized at the top levels of the organization.
A)True
B)False
Answer: True
Q2) A firm's organizational goals should be derived from its opportunities.
A)True
B)False
Answer: False
Q3) The Boston Consulting Group approach is based on a philosophy that a product's market growth rate and its market share relative to competition should be helpful in determining its marketing strategy.
A)True
B)False
Answer: True
Q4) An organization's goals focus on the ends or results that the firm seeks.
A)True
B)False
Answer: True
Page 4
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Chapter 3: The Marketing Environment
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Q1) The marketing environment consists of external forces that directly or indirectly influence an organization's acquisition of inputs and generation of outputs.
A)True
B)False
Answer: True
Q2) Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ____ competitors.
A)generic
B)product
C)total budget
D)oligopolistic
E)pure
Answer: A
Q3) Wealth enables consumers to gain buying power.
A)True
B)False
Answer: True
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Chapter 4: Social Responsibility and Ethics in Marketing
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Q1) When a purchasing agent for Intel is offered a bribe by a silicon manufacturer salesperson,
A)a promotion-related ethical issue has been created.
B)the purchasing agent is free to accept the bribe without consequences.
C)an ethical issue primarily related to the pricing of products exists.
D)there is an ethical dilemma for the purchasing agent that is product related.
E)no ethical issue exists under these circumstances.
Q2) The Board of Directors of a company is responsible for determining, articulating and communicating the values and standards of the business, and for ensuring that the policies, procedures and controls in place act to support, rather than hinder, ethical values throughout the business.Which one of the following corporate elements and characteristics can the Board of Directors influence the most to ensure that the organization has an ethical culture?
A)Individual factors
B)Personal values
C)Employee integrity
D)Individual beliefs
E)Procedures and controls for oversight
Q3) How can a code of conduct encourage ethical behavior in an organization?
Q4) Define and describe the importance of social responsibility in marketing.
Page 6
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Chapter 5: Marketing Research and Information Systems
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Q1) You are watching an episode of a new game show that tests contestants' knowledge by giving them phrases they must respond to with a question. The following marketing-related phrase comes up in the bonus round of the game:
"It's an informed guess or assumption about a problem or set of circumstances. It is based on all the insight and knowledge available about the problem or circumstances from research studies and other sources."
The contestant's response should be
A)What is a conclusive research finding?
B)What is a qualitative data point?
C)What is a hypothesis?
D)What is an objective statement?
E)What is a plausible conclusion?
Q2) Low response rate and privacy are both issues of concern related to
A)personal interview surveys.
B)telephone surveys.
C)shopping mall intercept interviews.
D)e-mail surveys.
E)online experimentation.
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7
Chapter 6: Target Markets Segmentation and Evaluation
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Q1) The types of surveys used to forecast sales are customer, executive, and competitor surveys.
A)True
B)False
Q2) The purpose of market segmentation is to
A)differentiate products.
B)divide a total market to enable a marketer to develop a more precise marketing mix.
C)reduce the overall cost of marketing activities.
D)identify a single marketing mix that will be satisfactory for the general market.
E)meet the needs of homogeneous markets.
Q3) A disadvantage of the concentrated targeting strategy is that
A)the firm's financial condition is tied to a single and specialized marketing mix.
B)large sales volumes cannot be generated.
C)production costs may be higher than with other strategies.
D)marketing personnel may become dissatisfied with the limited opportunities provided by this approach.
E)marketing costs are often higher than for other strategies.
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8
Chapter 7: Consumer Buying Behavior
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Q1) Motives include knowledge and positive or negative feelings about an object.
A)True
B)False
Q2) A customer shopping for a fax machine tells a salesperson that it is important for the fax machine to have several attributes. It must use plain paper, be able to make copies, be compatible with all other fax machines, and not require a separate phone line. The buyer has expressed his or her
A)framing characteristics.
B)service characteristics.
C)consideration set.
D)evaluative criteria.
E)information search criteria.
Q3) Refer to Scenario 7.1. The change in Steve's behavior toward Skola's Auto Repair, caused by the company's response to his complaint, is a function of A)perception.
B)motivation.
C)attitudes.
D)learning.
E)influence.
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Chapter 8: Business Markets and Buying Behavior
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Q1) During the search for products and evaluating possible suppliers stage of the business buying decision process, marketers sometimes use ____ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way.
A)cost
B)value
C)profit
D)strategic
E)SWOT
Q2) A disadvantage of reciprocity is that it can lead to
A)a price war.
B)higher promotional costs.
C)more competitive firms entering the industry.
D)less-than-optimal purchases for the buyer.
E)longer periods of negotiation.
Q3) Compare and contrast the three major types of purchases made by business customers.
Q4) Discuss how interpersonal factors influence the business buying decision process.
Q5) Describe the various stages of the business buying decision process.
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Chapter 9: Reaching Global Markets
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Q1) A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a
A)franchise.
B)contract manufacturer.
C)strategic intermediary.
D)trading company.
E)joint venture.
Q2) Which of the following is used to help maintain a more favorable balance of trade by a country?
A)Limiting imports
B)Limiting exports
C)Establishing exchange controls
D)Increasing gross domestic product
E)Changing political systems
Q3) A business partnership between a domestic firm and a foreign firm is known as
A)a joint venture.
B)an international partnership.
C)a multinational enterprise.
D)licensing.
E)exporting.
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Chapter 10: Digital Marketing and Social Networking
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Q1) ____ are more consumer-driven than traditional media.
A)Television commercials
B)Radio spots
C)Print ads
D)Digital media
E)Billboard advertisements
Q2) ____ connects customers with marketers as well as other customers.
A)Accessibility
B)Addressability
C)Interactivity
D)Connectivity
E)Control
Q3) Joiners are those consumers who read what other consumers write, but do not produce any content themselves.
A)True
B)False
Q4) Despite emerging technologies, consumers are unchanging in their traditional information searches and consumption behaviors.
A)True
B)False
Page 12
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Chapter 11: Product Concepts, Branding and Packaging
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Q1) The makers of Tide Detergent created "pods" of the product, characterized by a small, square, plastic-wrapped packet that was easier to use. Since it is packaged in these square pods, it requires no measuring and can be transported more easily if one is carrying clothes to a laundromat. This change in packaging is a strategy that can most likely help boost sales in the ____ stage of the product life cycle.
A)maturity
B)growth
C)introduction
D)market reduction
E)decline
Q2) The marketing mix should be left alone during the maturity stage of the product life cycle; tampering with it may bring an early death to the product.
A)True
B)False
Q3) Use of the product is the most important means of distinguishing consumer products from business products.
A)True
B)False
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13
Chapter 12: Developing and Managing Products
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Q1) When Jeep Wrangler produces the new year's model vehicle, they discontinue production of last year's. However, when Apple brings out a new iPhone, they continue to produce the previous version for at least some period of time. Jeep Wrangler's new-product strategy is an example of a(an) _____ while Apple's is an example of a(an)______.
A)product modification; quality modification
B)product modification; line extension
C)quality modification; product modification
D)functional modification; product modification
E)line extension; product modification
Q2) The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is called product quality.
A)True
B)False
Q3) A genuinely new product-like the iPhone once was-offers
A)lower prices than existing products.
B)at least two new product features.
C)innovative benefits to consumers.
D)better value than existing products.
E)at least two new product features at a lower price.
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Chapter 13: Services Marketing
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Q1) Using promotional efforts that encourage the trial use of some services can be an effective way for customers to assess the quality of the offered service.
A)True
B)False
Q2) Which of the following service providers are most likely to use demand-based pricing?
A)Dentists
B)Lawyers
C)Doctors
D)Hair stylists
E)Cruise ships
Q3) Any service provider that offers time-sensitive services receives most of its revenue during
A)peak demand.
B)heavy use time.
C)the off-season.
D)preferred demand.
E)customer contact time.
Q4) Describe how nonprofit marketing differs from for-profit marketing.
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Chapter 14: Marketing Channels and Supply-Chain Management
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Q1) Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers through which of the following types of channels?
A)Industrial distributor
B)Direct distribution
C)Retail
D)Wholesaler-sponsored
E)Producer
Q2) Agents are seldom used in channels for consumer products.
A)True
B)False
Q3) An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called
A)exclusive distribution.
B)a tying agreement.
C)refusal to deal.
D)contractual VMS.
E)exclusive dealing.
Q4) What is supply chain management? List the activities involved in it.
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Chapter 15: Retailing, Direct Marketing and Wholesaling
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Q1) A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is called
A)category management.
B)scrambled merchandising.
C)line extensions.
D)aggregate management.
E)wheel of retailing.
Q2) Store ABC is a retailer that sells brand name and private brand products at low prices. It is a self-service store. Which of the following is true about Store ABC?
A)It is a convenience store
B)It is a department store
C)It is a discount store
D)It is a superstore
E)It is a warehouse club
Q3) Wholesalers do not engage in selling to reseller, government, or institutional users.
A)True
B)False
Q4) What is a store's image, and how does it affect retailing strategy decisions?
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17
Chapter 16: Integrated Marketing Communications
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Q1) The phrase, purchase products, includes the acceptance of ideas and issues.
A)True
B)False
Q2) The use of a pull policy may require heavy expenditures for
A)advertising and sales promotion.
B)public relations and distribution.
C)personal selling and public relations.
D)distribution and advertising.
E)sales promotion and personal selling.
Q3) Marketers of highly seasonal products tend to have more irregular use of A)advertising.
B)sales promotion.
C)public relations.
D)personal selling.
E)marketing.
Q4) Why is public relations an important form of communication about a company? Discuss negative public relations, and give an example.
Q5) Compared to advertising, what are the major advantages and limitations of personal selling?
Page 18
Q6) In what ways can promotion be used to reduce sales fluctuations?
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Chapter 17: Advertising and Public Relations
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Q1) To be unbiased, a member of a consumer jury should not be a present user of the advertised product.
A)True
B)False
Q2) Ad agencies and firms usually work together when creating an ad campaign because the agencies would act too subjectively on their own.
A)True
B)False
Q3) As Oscar Meyer puts together its advertising campaign for the summer, it will need to keep in mind that its desire to use outdoor advertising will have strong effects on its selection of the advertising A)message.
B)budget.
C)platform.
D)audience analysis.
E)objectives.
Q4) The advertising platform is the foundation on which campaign messages are built. A)True B)False
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Chapter 18: Personal Selling and Sales Promotion
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Q1) Which of the following statements is true about rebates?
A)Customers generally do not view the rebate process as complicated.
B)Mail-in rebates are most effective in situations where consumers require a reason to purchase an item.
C)Products associated with rebates are typically strong sellers.
D)Rebates do not degrade a product's image or desirability.
E)Marketers use rebates as a substitute for coupons.
Q2) Sometimes retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in large quantities. What is this sales promotion?
A)Push money
B)Buy-back allowance
C)Buying allowance
D)Cents-off offer
E)Money refund
Q3) List the three major types of salespeople and indicate how they differ.
Q4) Explain how a salesperson's performance can be evaluated.
Q5) Discuss the purpose of coupons in sales promotion.
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Chapter 19: Pricing Concepts
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Q1) In setting price, it is wise to analyze competitors' prices.
A)True
B)False
Q2) Refer to Scenario 19.1. What is the breakeven point in dollar sales volume?
A)$1,200
B)$1,440
C)$3,000
D)$1,920
E)$1,600
Q3) Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.
A)True
B)False
Q4) How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?
Q5) Organizational goals have little to do with pricing decisions.
A)True
B)False
Q6) Identify and describe the major factors that affect pricing decisions.
Page 21
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Chapter 20: Setting Prices
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Q1) Refer to Scenario 20.2. Glenwood is considering a markup pricing basis, with the cost for office visit plus vaccines at $45. If Glenwood were to add a markup of 33.3 percent of the costs, its price would be ____.
A)$79
B)$65
C)$55
D)$78
E)$60
Q2) Describe the six steps of the process that marketers can use to establish prices.
Q3) Refer to Scenario 20.2. Glenwood has decided that it is going to offer a special package offer if the prevention plan is purchased within the first 30 days of each year's time for vaccinations. This type of pricing strategy would be an example of
A)customary pricing.
B)secondary-market pricing.
C)introductory pricing.
D)periodic discounting.
E)random discounting.
Q4) Compare and contrast price skimming and penetration pricing.
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