Name: 

The service sector accounts for a much smaller portion of the Canadian economy than the manufacturing sector.

In terms of the “tangibility spectrum,” a funeral parlour would occupy the extreme “intangible dominant” end of the spectrum.

Because potential customers often have difficulties conceptualizing an intangible service product, they are basically buying promises from any service organization they deal with.

In service products, credence and experience qualities are more dominant than search qualities.

Intangibility means that less than 25% of a product is comprised of physical components.

Due to intangibility, a customer must generally purchase a product in order to experience it.

Prices are difficult to set with services because it is more difficult to itemize labour costs than the costs of physical components and because a high proportion of service costs are fixed, minimizing the incremental cost of each additional service transaction.

A service organization would be wise to create a strong image for itself since, when a customer cannot physically evaluate a product, he or she might decide whether or not to purchase the product based on the reputation of the organization.

It can be said that services are first produced, then sold, and then consumed, whereas goods are first sold, then produced and consumed simultaneously.

One of the key means that marketers have to overcome the problem of perishability is to emphasize the recruitment and training of public-contact personnel.

Heterogeneity means that each service performance is the same as other service performances.  Due to heterogeneity, it is difficult for service organizations to customize their products.

Industrializing a product is a means to overcome heterogeneity.  For example, restaurants “industrialize” their menus when they limit the number of entrees they offer to a choice of three or four each night.

Customization is another means to overcome heterogeneity.  For example, lawyers “customize” their services by dealing only with the specific needs of each client rather than offering a set package of services (a sample package for most people might consist of three real estate purchases, two litigations, and two will preparations).

Internal marketing means placing greater emphasis on marketing to employees than marketing to customers.

Interactive marketing describes the actual interaction that takes place between the service provider/employee and the customer while the customer is being served.

External marketing is about making a commitment to customers that certain things will happen in the service encounter; internal marketing allows that commitment to be carried out; interactive marketing delivers the promise through the actual delivery of the service.

The tangible cues that service marketers can manipulate in order to differentiate their product from competitors include (a) the environment or physical milieu that the service is provided in, (b) the appearance of the service providers, and (c) the number of years that the service organization has been in existence.

Most customers do not perceive a direct relationship between the price and the quality of a service.

Management unwillingness to design a service product that actually meets customer needs is one of the key reasons that a gap may exist between customer expectations and customer experience.

The same product classification systems can be applied to goods and service products.

It is important to understand the service sector because

The “tangibility spectrum” refers to the fact that

Which of the following statements is true with regard to search qualities, experience qualities, and credence qualities?

Lisa Johnson is finding it very hard to rationalize paying $2000 in advance for a one-month vacation tour of South Africa, where she has never been. She cannot touch, see, and/or examine the service product before buying as she does with non-service products such as a car.  Lisa’s problem stems from which of the following characteristics of services?

Packaging strategy is of little importance to service companies because services have high levels of

The intangibility of services creates marketing problems such as

A famous cosmetic surgeon often emphasizes to his clients that the quality of his surgical procedures depends on the clients’ cooperation and support.  He is referring to which of the following unique characteristics of services?

Jennifer Hasch has lost her contact lenses and calls her eye doctor, Dr. Iqbal Ahmed, for a replacement.  Dr. Ahmed suggests that she visit him for an eye examination to see if her prescription has changed before he orders the new lenses.  What has happened in this situation?

Marketing strategies to solve the problems of inseparability include

The new hospitality marketer at an inn often complains about the difficulty in promoting his hospitality products because his hotel rooms cannot be stored.  This problem illustrates which one of the following characteristics of services?

Bill Reekie wishes to buy a vacation package to China from a travel agent. Being a seasoned global traveler, he is very concerned about the quality of his vacation package.  It is very hard for him to examine the package before he buys it.  Bill’s problem stems from which of the following characteristics of services?

A sales associate at an international travel agency receives a call from a client to book him on a charter flight to Mexico City, which left earlier in the day.  The sales associate advises she cannot make the booking because of which of the  following characteristics of services?

Some service firms offer reduced rates at certain times.  For example, movie theatres offer less expensive ticket prices for matinees.  This price reduction is probably due to

IBM’s creation of a service centre to respond to any IBM employee’s request or problem is an example of

The three aspects of marketing that must take place in order for a service firm to be successful are

The “services marketing triangle” suggests that

When a service marketer has his/her employees project a certain image through wearing uniforms, it can be said that the marketer is

Quality in services marketing is defined as

Reducing the gap between what customers want from a service and what management thinks they want involves

Which of the following statements is true about the organizational responsibility for marketing in service firms?