Marketing quốc tế 13 designing and managing services

Marketing Management, 14e (Kotler/Keller)
Chapter 13 Designing and Managing Services
1) Which of the following is a characteristic of a service?
A) It is essentially tangible.
B) It does not result in the ownership of anything.
C) Its production is majorly tied to a physical product.
D) Services are typically produced and consumed at different times.
E) A client's presence is not required for rendering a service.
Answer: B
Page Ref: 356
Objective: 1
Difficulty: Easy
2) Which of the following is an example of a pure tangible good?
A) massage
B) shampoo
C) e-mail
D) restaurant meal
E) air travel
Answer: B
Page Ref: 356
Objective: 1
Difficulty: Easy
3) To which of the following categories of services does a cell phone belong?
A) major service with accompanying minor services
B) major service with accompanying minor goods
C) pure service
D) pure tangible good
E) tangible good with accompanying services
Answer: E
Page Ref: 356
Objective: 1

Difficulty: Easy
4) A computer falls into the ________ category of service mix.
A) pure tangible good
B) tangible good with accompanying services
C) hybrid
D) major service with accompanying minor goods
E) pure service
Answer: B
Page Ref: 356
Objective: 1
Difficulty: Easy
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5) Which of the following is an example of a hybrid service?
A) teaching
B) car
C) restaurant meal
D) soap
E) air travel
Answer: C
Page Ref: 357
Objective: 1
Difficulty: Easy
6) A flight with complementary drinks is an example of a ________.
A) major service with accompanying minor goods and services
B) pure service
C) pure tangible good
D) tangible good with accompanying services

E) hybrid
Answer: A
Page Ref: 357
Objective: 1
Difficulty: Easy
7) Which of the following is an example of a pure service?
A) air travel
B) psychotherapy
C) baby oil
D) a laptop
E) a restaurant meal
Answer: B
Page Ref: 357
Objective: 1
Difficulty: Easy
8) Which of the following is true for services?
A) All services are people-based, while goods are equipment-based.
B) Service providers can be both for-profit or nonprofit.
C) All service companies follow the same process to deliver their services.
D) The client's presence is a hindrance during the service delivery process.
E) Service providers develop similar marketing programs for personal services and business
services.
Answer: B
Page Ref: 357
Objective: 1
Difficulty: Easy

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9) Some services require that the client be present to conduct the service. Which of the following
is an example of such a service?
A) pest control
B) furniture polishing
C) surgery
D) car repairing
E) tax services
Answer: C
Page Ref: 357
Objective: 1
Difficulty: Easy
10) Services high in ________ have characteristics that the buyers can evaluate before purchase.
A) search qualities
B) experience qualities
C) credence qualities
D) privacy qualities
E) storing qualities
Answer: A
Page Ref: 357
Objective: 1
Difficulty: Easy
11) Services high in ________ qualities have characteristics that the buyer can evaluate after
purchase.
A) privacy
B) experience
C) credence
D) search
E) stock
Answer: B

Page Ref: 357
Objective: 1
Difficulty: Easy
12) Services high in ________ are those services that have characteristics the buyer normally
finds hard to evaluate even after consumption.
A) trial qualities
B) search qualities
C) experience qualities
D) privacy qualities
E) credence qualities
Answer: E
Page Ref: 357
Objective: 1
Difficulty: Easy
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13) Which one of the following would be considered high in credence qualities?
A) an interior of a house
B) a restaurant
C) a haircut
D) psychotherapy
E) a computer
Answer: D
Page Ref: 357
Objective: 1
AACSB: Analytic skills
Difficulty: Moderate
14) Which one of the following is highest in search qualities?

A) a play at a theater
B) a meal at a restaurant
C) a haircut
D) psychotherapy
E) a computer
Answer: E
Page Ref: 357
Objective: 1
AACSB: Analytic skills
Difficulty: Moderate
15) Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they
are bought. This is known as the ________ aspect of services.
A) inseparability
B) intangibility
C) variability
D) perishability
E) heterogeneity
Answer: B
Page Ref: 358
Objective: 1
Difficulty: Easy
16) Which of the following will most help service providers overcome the limitation of
intangibility of services when positioning itself?
A) using brand symbols
B) sharing services
C) working with larger groups
D) cultivating non-peak demand
E) creating a service blueprint
Answer: A
Page Ref: 358

Objective: 1
Difficulty: Easy
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17) A brand that is action-oriented and causes consumers to engage in physical actions appeals to
the ________ dimension of brand experience.
A) sensory
B) affective
C) behavioral
D) intellectual
E) social
Answer: C
Page Ref: 358
Objective: 1
Difficulty: Easy
18) BRZ Shoes targets the youth market with vibrant, visually appealing ads in modern styles.
BRZ ads appeal to the ________ dimension of brand experience.
A) sensory
B) affective
C) behavioral
D) intellectual
E) social
Answer: A
Page Ref: 358
Objective: 1
Difficulty: Easy
19) BRZ Shoes positions itself as a young, adventurous brand. Its logo and brand communication
try to give consumers a feeling of excitement and bravery. These ads appeal to the ________

dimension of brand experience.
A) sensory
B) affective
C) behavioral
D) intellectual
E) social
Answer: B
Page Ref: 358
Objective: 1
Difficulty: Easy

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20) ________ refer(s) to logos, symbols, characters, and slogans that service providers use in
order to make the service and its key benefits more tangible.
A) Brand engagement
B) Brand orientation
C) Brand elements
D) Brand loyalty
E) Brand equity
Answer: C
Page Ref: 359
Objective: 1
Difficulty: Easy
21) Which of the following is true regarding services?
A) Services are typically produced, stored, and then consumed.
B) Services are generally low in experience and credence qualities.
C) Service providers develop similar marketing programs for personal services and business

services.
D) There is less risk associated with the purchase of services than with the purchase of goods.
E) Provider-client interaction is a special feature of services marketing.
Answer: E
Page Ref: 359
Objective: 1
Difficulty: Easy
22) The fact that services are typically produced and consumed simultaneously is known as the
________ aspect of services.
A) perishability
B) intangibility
C) heterogeneity
D) inseparability
E) variability
Answer: D
Page Ref: 359
Objective: 1
Difficulty: Easy
23) Service quality depends on who provides them, when and where, and to whom. Thus,
services are highly ________.
A) inseparable
B) tangible
C) variable
D) perishable
E) intangible
Answer: C
Page Ref: 359
Objective: 1
Difficulty: Easy
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24) Which of the following will help a service provider overcome the limits imposed by the
inseparability of services?
A) using differential pricing
B) working with larger customer groups
C) providing complementary services
D) concentrating on physical evidence and presentation
E) standardizing the service process
Answer: B
Page Ref: 359
Objective: 1
Difficulty: Easy
25) Which of the following steps will help service firms to increase their quality control?
A) standardizing the service-performance process
B) providing complementary services to customers
C) giving personnel authority in handling situations
D) adopting differential pricing
E) cultivating nonpeak demand
Answer: A
Page Ref: 360
Objective: 1
Difficulty: Easy
26) In order to map out the service process, the points of customer contact, and the evidence of
service from the customer's point of view, service firms should develop a ________.
A) marketing plan
B) service floor plan
C) Gantt chart
D) business plan

E) service blueprint
Answer: E
Page Ref: 360
Objective: 1
Difficulty: Easy

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27) Jake had an appointment at the doctor's, but couldn't make it on time because he was caught
in traffic. By the time he reached the doctor's office, the doctor had already begun with the next
patient. This illustrates the ________ of services.
A) variability
B) heterogeneity
C) perishability
D) intangibility
E) homogeneity
Answer: C
Page Ref: 361
Objective: 1
AACSB: Analytic skills
Difficulty: Easy
28) When a theater sells matinee movie tickets at low prices, it aims to shift some demand from
the peak to the off-peak period. What is the strategy that the theater is said to be adopting?
A) It is providing complementary services.
B) It is increasing peak-time efficiency.
C) It is using linear pricing.
D) It is using differential pricing.
E) It is sharing services.

Answer: D
Page Ref: 361
Objective: 1
Difficulty: Easy
29) A travel agency offers weekend discounts for car rentals. What can be deduced from this?
A) It is increasing peak-time efficiency.
B) It is using differential pricing.
C) It is using linear pricing.
D) It is cultivating peak demand.
E) It is providing complementary services.
Answer: B
Page Ref: 361
Objective: 1
Difficulty: Easy

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30) In which of the following cases is a service provider trying to increase non-peak demand?
A) A fine dining restaurant is promoting a breakfast service in addition to its popular lunch and
dinner options.
B) An upscale restaurant has a cocktail lounge where customers can wait until a table is ready.
C) AXA Bank set up automated teller machines so that its customers could avoid standing in
line.
D) Chesterton College hired part-time teachers as enrollment increased significantly.
E) Big department stores usually hire extra staff to handle the rush during the holiday season.
Answer: A
Page Ref: 361
Objective: 1

AACSB: Analytic skills
Difficulty: Moderate
31) The Caesar Park Hotel generally caters to business customers during the week, but has now
decided to promote minivacation weekends for non-business customers as well. What is the
Caesar Park Hotel trying to do?
A) It is implementing premium pricing.
B) It is trying to cultivate nonpeak demand.
C) It is promoting complementary services.
D) It is putting reservation systems in place.
E) It is implementing differential pricing.
Answer: B
Page Ref: 361
Objective: 1
AACSB: Analytic skills
Difficulty: Moderate
32) Cocktail lounges in restaurants are examples of ________.
A) differential pricing
B) cultivating nonpeak demand
C) complementary services
D) reservation systems
E) shared services
Answer: C
Page Ref: 361
Objective: 1
Difficulty: Easy

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33) Which of the following is an example of a complementary service?
A) Big department stores usually hire extra staff to handle the rush during the holiday season.
B) The Caesar Park Hotel generally caters to business customers during the week, but has now
decided to promote minivacation weekends for non-business customers as well.
C) More paramedics are on hand to assist physicians during times when emergency admissions
are highest.
D) AXA Bank set up automated teller machines so that its customers could avoid standing in
line.
E) Chesterton College hires part-time teachers when enrollment goes up.
Answer: D
Page Ref: 361
Objective: 1
AACSB: Analytic skills
Difficulty: Moderate
34) Walmart has decided to hire extra clerks during the holiday season. It is said to be ________.
A) matching its supply with the existing demand
B) generating non-peak demand
C) increasing its customer participation
D) sharing its services
E) facilitating for its future expansion
Answer: A
Page Ref: 361
Objective: 1
Difficulty: Easy
35) Kaya, a chain of skin clinics, requests each new visitor to fill up their own details on a
printed form. This is a step in ________.
A) increasing its peak-time efficiency
B) creating nonpeak demand
C) increasing consumer participation
D) sharing its services

E) facilitating its future expansions
Answer: C
Page Ref: 361
Objective: 1
Difficulty: Easy

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36) Customers today want separate prices for each service element and they also want the right
to select the elements they want. The customers are said to be pressing for ________.
A) complementary services
B) perishable services
C) variable services
D) unbundled services
E) shared services
Answer: D
Page Ref: 362
Objective: 2
Difficulty: Easy
37) Often, a service problem arises from a customer's lack of understanding or ineptitude. Which
of the following can help to minimize customer failures?
A) giving customers exclusive primary service packages
B) redesigning processes to simplify service encounters
C) using differential pricing and shared services
D) minimizing service intangibility
E) working with more customers at the same time
Answer: B
Page Ref: 364

Objective: 2
Difficulty: Easy
38) ________ refers to the normal work of preparing, pricing, distributing, and promoting the
service to customers.
A) Interactive marketing
B) Internal marketing
C) External marketing
D) Promotional marketing
E) Direct marketing
Answer: C
Page Ref: 365
Objective: 3
Difficulty: Easy
39) ________ refers to training and motivating employees to serve customers well.
A) External marketing
B) Promotional marketing
C) Direct marketing
D) Internal marketing
E) Interactive marketing
Answer: D
Page Ref: 365
Objective: 3
Difficulty: Easy
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40) ________ describes the employees' skill in serving the client.
A) External marketing
B) Internal marketing

C) Promotional marketing
D) Direct marketing
E) Interactive marketing
Answer: E
Page Ref: 365
Objective: 3
Difficulty: Easy
41) Susanna wanted to check out a new salon in her locality, so she decided to go for a hair
styling session. She was very happy with the way her stylist connected and related with her
concerns. She is judging the service based on its ________.
A) promotional marketing
B) functional quality
C) technical quality
D) search qualities
E) external marketing
Answer: B
Page Ref: 365
Objective: 3
AACSB: Analytic skills
Difficulty: Moderate
42) In which of the following does a customer respond to the technical quality of a service?
A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit
her looks.
B) Kathy tries out a new restaurant every week, because she likes to experience the variety.
C) Bill has gone to the same chiropractor for the past fifteen years, because he is friendly and
takes the time to listen to Bill.
D) Ray avoids going to the bank as far as possible because the manager is rude and unhelpful.
E) Alex has no interest in theater, but goes often because her best friend loves plays.
Answer: A
Page Ref: 365

Objective: 3
AACSB: Analytic skills
Difficulty: Moderate

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43) In which of the following does a customer respond to the functional quality of a service?
A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit
her looks.
B) Kathy tries out a new restaurant every week, because she likes to experience the variety.
C) Bill has gone to the same chiropractor for the past fifteen years, because he is friendly and
takes the time to listen to Bill.
D) Ray's mechanic charges high prices for service, but his work is good and worth the price.
E) Alex has no interest in theater, but goes often because her best friend loves plays.
Answer: C
Page Ref: 365
Objective: 3
AACSB: Analytic skills
Difficulty: Moderate
44) Firms have decided to raise fees and lower service for those customers who barely pay their
way and to coddle big spenders to retain their patronage as long as possible. This is an example
of organizing customers by ________.
A) retailer convenience
B) profit tiers
C) psychographic characteristics
D) social influence
E) customer preference
Answer: B

Page Ref: 366
Objective: 3
Difficulty: Easy
45) Charles Schwab's best customers are instantly directed to customer service representatives,
while other customers have to wait longer. Charles Schwab is trying to ________.
A) monitor its service systems
B) empower the customers
C) retain the patronage of profitable customers
D) increase consumer participation
E) standardize the service-performance process
Answer: C
Page Ref: 366
Objective: 3
Difficulty: Easy

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46) The ________ rates the various elements of the service bundle and identifies required
actions.
A) company performance analysis
B) voice of customer measurement
C) customer factor measurement
D) importance-performance analysis
E) customer importance analysis
Answer: D
Page Ref: 367
Objective: 3
Difficulty: Easy

47) Customers who view a service as homogeneous ________.
A) only patronize a preferred service provider
B) judge services on the basis of the providers
C) care less about the provider than about the price
D) pick a service provider based on functional attributes
E) opt for the service with the highest price, irrespective of quality
Answer: C
Page Ref: 368
Objective: 3
Difficulty: Easy
48) Belling Hotels provides complimentary breakfast buffets to all its guests. This is an example
of a ________.
A) primary service package
B) service interface
C) service support
D) service frequency
E) secondary service feature
Answer: E
Page Ref: 369
Objective: 3
Difficulty: Easy

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49) Although Brenda previously used the U.S. Postal Service because it offered better prices on
package shipping, she now uses only FedEx, because it gives her the facility of shipping from
any FedEx Kinkos location 24 hours a day. Which of the following factors led to Brenda's
customer switching behavior?

A) inconvenience
B) pricing
C) response to service failure
D) ethical problems
E) involuntary switching
Answer: A
Page Ref: 371
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
50) Angela switched to a new hair stylist after getting a bad haircut from her previous stylist.
This is an example of which of the following factors leading to customer switching behavior?
A) service encounter failure
B) core service failure
C) response to service failure
D) involuntary switching
E) competition
Answer: B
Page Ref: 371
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
51) Dean recently had a BRZ broadband connection installed. However, the connection was bad
and he didn't get the quality he required. He contacted BRZ about the problem, but the company
did not solve his problem. Dean switched to Blue Broadband. Which of the following was the
cause of Dean's switching behavior?
A) involuntary switching
B) competition
C) response to service failure
D) service encounter failures

E) inconvenience
Answer: C
Page Ref: 371
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate

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52) MGC Inc. organizes a company-wide picnic once a year. The organizers arranged for the best
possible menu thinking that food would be a priority, but the staff were disappointed because the
activities were very poorly planned. What kind of a gap is apparent here?
A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception
Answer: E
Page Ref: 373
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
53) Which of the following is an example of a gap between management perception and the
service-quality specifications?
A) The college brochure showed state-of-the-art classrooms, but when the visitors walked in,
they saw peeling walls and dull lighting.
B) A nurse visits a patient to show care, but the patient interprets this as an indication that
something is very wrong.

C) The hotel administrators think that guests want better food, but guests are more concerned
with the courtesy of the waiters.
D) A service center manager has asked his subordinates to provide fast service, but has not
specified a time for the service to be performed.
E) Customer service representatives are asked to give ample time to each customer, but must
serve a minimum of 50 customers a day.
Answer: D
Page Ref: 373
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
54) The customer service representatives at a call center have been asked to handle each call in
not more than five minutes. A recent customer survey by the company revealed that customers
appreciate it when employees take the time to answer their questions fully and listen to their
grievances. What kind of service gap is apparent here?
A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception
Answer: D
Page Ref: 373
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
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55) The customer service representatives at a call center have been asked to handle each call in

not more than five minutes. At the same time, they have been asked to answer all customer
queries in detail and provide appropriate solutions. What kind of service gap is apparent here?
A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception
Answer: C
Page Ref: 373
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
56) Which of the following is an example of a gap between service delivery and external
communications?
A) The employees at GBL have been asked to take time to listen to customers, but they must
serve them fast as well.
B) Amanda chose to shop at Alison's Fashions because the store's website offered on-the-spot
alterations. However, when she did buy a dress, she had to wait a week to get it altered.
C) Customers at LUX appreciate the personalized services the salespeople offer, but do not like
the store design.
D) Clearwater Spa attendants are well-trained in massage therapy and the services they offer, but
customers rarely return because they don't like the attendants' impersonal service.
E) When sales dropped, Styx modernized its stores in order to retain customers, but didn't realize
that the product quality was the main problem.
Answer: B
Page Ref: 373
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
57) Ellen came across an ad for a new restaurant which promised authentic French cuisine. When

she ate there, however, she was disappointed to find that the food was mediocre and not very
authentic. Which of the following gaps of service performance does this demonstrate?
A) gap between service-quality specifications and service delivery
B) gap between perceived service and expected service
C) gap between service delivery and external communications
D) gap between consumer expectation and management perception
E) gap between management perception and service-quality specification
Answer: C
Page Ref: 373
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate

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58) When Aaron went to his doctor for his annual checkup, he was asked to undergo a number of
tests. Although the doctor assured Aaron that the tests were routine, Aaron thinks that the doctor
is hiding a grave problem from him. What kind of a gap is apparent here?
A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception
Answer: A
Page Ref: 374
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate

59) The most important determinant of service quality is ________ which refers to the ability to
perform the promised service dependably and accurately.
A) empathy
B) assurance
C) responsiveness
D) reliability
E) tangibles
Answer: D
Page Ref: 374
Objective: 4
Difficulty: Easy
60) The customer service representatives at G.K.'s customer service center must know as much
about the products as possible, so that they can help the customers solve their difficulties without
sounding hesitant or unsure of themselves. Which of the following determinants of service
quality are they being asked to demonstrate?
A) responsiveness
B) assurance
C) empathy
D) reliability
E) tangibility
Answer: B
Page Ref: 374
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate

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61) Josh gets his bike serviced at Dean's Garage even though there's another garage much closer
to home. He prefers Dean's because the work is usually done quickly and the staff try to solve the
issues with the bike as soon as possible. Dean's Garage excels at which of the following five
determinants of service quality?
A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles
Answer: B
Page Ref: 374
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
62) The ________ determinant of service quality refers to the knowledge and courtesy of
employees and their ability to convey trust and confidence in the service they provide.
A) conscientious
B) assurance
C) empathy
D) reliability
E) responsiveness
Answer: B
Page Ref: 374
Objective: 4
Difficulty: Easy
63) Leo's manager has asked him and his teammates to demonstrate caring towards customers.
They are instructed to learn the customers' names, and use the customers' names while
interacting with them. Repeat customers should get special attention, and the team members
should remember their preferences and habits. The manager is asking the team to be ________.
A) assuring

B) candid
C) empathetic
D) reliable
E) responsive
Answer: C
Page Ref: 374
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate

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64) Gloria goes to the same bagel shop every morning because the workers there remember her
name and know her order. They always make her feel welcome. The employees of this bagel
shop excel at which of the following determinants of service quality?
A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles
Answer: D
Page Ref: 374
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
65) The zone of ________ is a range where a service dimension is deemed satisfactory, anchored
by the minimum level consumers are willing to accept and the level they believe can and should
be delivered.

A) immunity
B) tolerance
C) reliability
D) assurance
E) flexibility
Answer: B
Page Ref: 374
Objective: 4
Difficulty: Easy
66) According to the dynamic process model, two different types of expectations have opposite
effects on perceptions of service quality. One of these is that ________.
A) increasing customer expectations of what the firm will deliver improve the perceptions of
overall service quality
B) increasing customer expectations of what the firm will deliver decrease the perceptions of
overall service quality
C) decreasing customer expectations of what the firm should deliver decrease the perceptions of
overall service quality
D) decreasing customer expectations of what the firm will deliver improve the perceptions of
overall service quality
E) increasing customer expectations of what the firm should deliver improve the perceptions of
overall service quality
Answer: A
Page Ref: 374
Objective: 4
Difficulty: Moderate

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67) When customers calculate the perceived economic benefits of a continuously provided
service in relationship to the economic costs, they are gauging the ________.
A) private equity
B) brand equity
C) payment equity
D) customer-service equity
E) product-service equity
Answer: C
Page Ref: 375
Objective: 4
Difficulty: Easy
68) A ________ refers to any place at which a company seeks to manage a relationship with a
customer, whether through people, technology, or some combination of the two.
A) customer-service interface
B) product-customer interface
C) tangible user interface
D) attentive user interface
E) crossing-based interface
Answer: A
Page Ref: 375
Objective: 4
Difficulty: Easy
69) Regular maintenance and repair costs are known as ________.
A) service contract costs
B) out-of-pocket costs
C) fixed costs
D) facilitating services costs
E) value-augmentation costs
Answer: B
Page Ref: 376

Objective: 5
Difficulty: Easy
70) The product's purchase cost plus the discounted cost of maintenance and repair less the
discounted salvage value gives the ________.
A) service warranty cost
B) out-of-pocket cost
C) life-cycle cost
D) facilitating services cost
E) value-augmentation cost
Answer: C
Page Ref: 376
Objective: 5
Difficulty: Easy
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71) Expensive equipment manufacturers not only install the equipment but also train the staff
and undertake the maintenance and repair activities of the equipment. By doing so, they are
providing ________.
A) payment equity
B) value-augmenting services
C) differential pricing
D) facilitating services
E) a primary service package
Answer: D
Page Ref: 377
Objective: 5
Difficulty: Easy
72) When Johnson Controls reached beyond its climate control equipment and components

business to manage integrated facilities by offering products and services that optimize energy
use, it was said to be providing ________.
A) facilitating services
B) a primary service package
C) value-augmenting services
D) service contracts
E) service warranties
Answer: C
Page Ref: 377
Objective: 5
Difficulty: Easy
73) When sellers agree to provide free maintenance and repair services for a specified period of
time at a specified contract price, they are offering ________.
A) a complementary service
B) payment equity
C) a service blueprint
D) differential pricing
E) an extended warranty
Answer: E
Page Ref: 377
Objective: 5
Difficulty: Easy
74) The private non-profit sector is a provider of services.
Answer: TRUE
Page Ref: 356
Objective: 1
Difficulty: Easy

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75) A service is essentially intangible.
Answer: TRUE
Page Ref: 356
Objective: 1
Difficulty: Easy
76) A service results in ownership on the part of the client.
Answer: FALSE
Page Ref: 356
Objective: 1
Difficulty: Easy
77) The production of a service is never tied to a physical product.
Answer: FALSE
Page Ref: 356
Objective: 1
Difficulty: Easy
78) Soap is an example of a pure tangible good.
Answer: TRUE
Page Ref: 356
Objective: 1
Difficulty: Easy
79) Salt is an example of a hybrid.
Answer: FALSE
Page Ref: 356
Objective: 1
Difficulty: Easy
80) A hybrid consists of unequal parts of goods and services, with services being in the majority.
Answer: FALSE
Page Ref: 357

Objective: 1
Difficulty: Easy
81) A pure service requires a capital-intensive good, but the primary item is a service.
Answer: FALSE
Page Ref: 357
Objective: 1
Difficulty: Easy
82) All services require the client to be present.
Answer: FALSE
Page Ref: 357
Objective: 1
Difficulty: Easy
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83) The search qualities of a service are the characteristics the buyer can evaluate before
purchase.
Answer: TRUE
Page Ref: 357
Objective: 1
Difficulty: Easy
84) Credence qualities of a service are difficult to evaluate before purchase, but easy to evaluate
after consumption.
Answer: FALSE
Page Ref: 357
Objective: 1
Difficulty: Easy
85) The experience qualities of a good or service can be evaluated after purchase.
Answer: TRUE

Page Ref: 357
Objective: 1
Difficulty: Easy
86) Furniture is high in credence qualities.
Answer: FALSE
Page Ref: 357
Objective: 1
Difficulty: Easy
87) While goods meet personal needs, services meet business needs.
Answer: FALSE
Page Ref: 357
Objective: 1
Difficulty: Easy
88) Services have five distinctive characteristics, one of these being "pure service."
Answer: FALSE
Page Ref: 358
Objective: 1
Difficulty: Easy
89) Intangibility with regards to a service means that the service cannot be duplicated across
providers.
Answer: FALSE
Page Ref: 358
Objective: 1
Difficulty: Easy

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90) Service companies try to demonstrate their service qualities through physical evidence and

presentation.
Answer: TRUE
Page Ref: 358
Objective: 1
Difficulty: Easy
91) Inseparability in the context of a service means that there is a provider-client interaction
involved as the provider is part of the service.
Answer: TRUE
Page Ref: 359
Objective: 1
Difficulty: Easy
92) A service provider can work with larger groups to get around the limitations of inseparability.
Answer: TRUE
Page Ref: 359
Objective: 1
Difficulty: Easy
93) The quality of services is independent of who provides them.
Answer: FALSE
Page Ref: 359
Objective: 1
Difficulty: Easy
94) Customers want unbundled services, with separate prices for each service element and the
right to select the elements they want.
Answer: TRUE
Page Ref: 362
Objective: 2
Difficulty: Easy
95) External marketing describes the training and motivation required by employees in order to
properly serve the customers.
Answer: FALSE

Page Ref: 365
Objective: 3
Difficulty: Easy
96) Interactive marketing describes the employees' skill in serving the client.
Answer: TRUE
Page Ref: 365
Objective: 3
Difficulty: Easy
97) Clients judge service not only by its technical quality but also by its functional quality.
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