Elliott 4e tb ch11 - MCQ for chapter 11 PDF

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MCQ for chapter 11...

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Marketing 4th edition

© John Wiley & Sons Australia, Ltd 2018

Marketing 4th edition

Chapter 11 Services marketing 1. Service industries generate about _______ per cent of the national incomes of Australia and New Zealand. a. 20 *b. 70 c. 50 d. 90 e. 10 General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. 70 per cent of the national incomes of Australia and New Zealand are generated by service industries.

2. The act of delivering a product is by definition a: *a. service. b. courier. c. benefit. d. performance. General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. Service is the act of delivering a product (whether it is a good or services product). Service involves human, intellectual or mechanical activity that adds value to the product.

3. The government sector is a major provider of services in both Australia and New Zealand, most notably in the areas of: a. finance, tourism and hospitality. *b. defence, health and education. c. communications, hospitality and health. d. defence, tourism, education and welfare. e. Both a and b. General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. The

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government sector is a major provider of services, particularly in the areas of defence, health, education and welfare. 4. Which of the following are NOT services? a. A transfer of title. b. An exchange of tangible goods. c. Tangible products. *d. All of the options listed. General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. Services are activities, performances or benefits that are offered for sale, but involve neither an exchange of tangible goods nor a transfer of title. 5. The industry, which is responsible for generating the majority of a countries income, can be said to dominate its economy. With this in mind, Australia and New Zealand are: a. manufacturing-dominant economies. *b. service-dominant economies. c. agriculture-dominant economies. d. goods-dominant economies e. None of the options listed. General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. The fact that 70 per cent of the national incomes of both countries are generated by service industries indicates that Australia and New Zealand are service-dominant economies.

6. Hairdressing is a good example of a service purchased by an individual for their own private consumption. Hairdressing is also an example of: a. outsourcing. b. business-to-business service. *c. consumer service. d. a tangible product. General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. Consumer services are those services purchased by individual consumers or households for their own private consumption (to provide, for example, functional, sensory or psychological benefits). © John Wiley & Sons Australia, Ltd 2018

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7. Which of the following statements is incorrect? a. Services can include activities, performances and benefits offered for sale b. Services are intangible. *c. Services involve a transfer of title. d. A product offering can consist of both a physical good and a service component. e. Services are provided through the application of intellectual or physical efforts to a person or object. General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. Services are activities, performances or benefits offered for sale, which involve neither an exchange of tangible goods nor a transfer of title. 8. Services are usually provided through the application of intellectual or physical efforts to a _______ or physical object. As such, services involve a _________ component. a. plan, service b. person, physical *c. person, service d. plan, delivery General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. Services are usually provided through the application of intellectual or physical efforts to a person or physical object. As such, services involve a service component. 9. McDonalds is a service provider. Considering this and your understanding of services, which of the following statements is incorrect? a. A service can be provided through the application of intellectual effort. b. A service can be provided through the application of physical effort. *c. A service cannot be provided to a physical object. d. A service cannot be provided to a person. e. A service is a deed, activity or performance. General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. Services are usually provided to a person or physical object. For example, medical services are provided to people, while repairs and maintenance are provided to objects, such as cars and computers. McDonalds provides the benefits of form utility and time utility for example. © John Wiley & Sons Australia, Ltd 2018

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10. Many products are provided using a combination of equipment and physical efforts. They are considered services because the intangible inputs into the services comprise the largest proportion of the value delivered by the product. Which of the following are services? a. A mechanic changing a car's oil. b. A tyre re-alignment. c. Fitting a new timing belt and brake pads. *d. All of the options listed. General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. All of the options are services because the largest proportion of the value is delivered by the intangible input. 11. Which of the following environmental factors have facilitated the growth of the service sector over the past decade? a. The emergence of dual-income families. b. Technological change. c. The ageing population. *d. All of the options listed. e. Both a and c. General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. Lifestyle changes, such as the emergence of dual income families, have created demand for new services. Technological change has created opportunities for service providers such as eBay, which have succeed in exploiting the power and reach of the internet. The ageing population has created demand for health and aged care services.

12. The characteristics that formally distinguish services from goods are intangibility, inseparability, ____________ and perishability. a. benefits *b. heterogeneity c. homogeneity d. tangibility General Feedback: Learning objective 11.2: describe how to develop and manage an effective marketing mix based on the unique characteristics of services. The characteristics that formally distinguish services from goods are intangibility, inseparability, heterogeneity and perishability. © John Wiley & Sons Australia, Ltd 2018

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13. When Jack conducts an environmental analysis for his hairdressing business, he decides to focus on the economy. While thinking about the impact of the economy on his business, he realises that what is a good economic state for his business may be a negative state for other types of business. When the demand for hairdressing services is high due to the state of the economy, which of the following services is likely to see a decline in demand? *a. Education / training. b. Tourism. c. Finance. d. Airlines. e. Personal fitness. General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. During tough economic times, demand for many services such as those provided by hairdressers drops away, but some services are counter-cyclical. For example, during periods of high unemployment, the demand for higher education and training services tends to increase, as people 'upskill' to improve their chances of gaining work. 14. The characteristic of services which most fundamentally distinguishes them from goods is their: a. benefits. b. heterogeneity. c. homogeneity. *d. intangibility. General Feedback: Learning objective 11.2: describe how to develop and manage an effective marketing mix based on the unique characteristics of services. The characteristic of services which most fundamentally distinguishes them from goods is their intangibility. 15. Which of the following statements is correct? a. Services are products, whereas service is the act of delivering a product. b. Service can involve human, intellectual or mechanical activity. c. Service should add value to a product. *d. All of the options listed are correct. e. Both a and c. General Feedback:

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Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. All of the options given are correct.

16. The characteristic of being produced and consumed simultaneously is known as: *a. inseparability. b. intangibility. c. perishability. d. homogeneity. General Feedback: Learning objective 11.2: describe how to develop and manage an effective marketing mix based on the unique characteristics of services. Inseparability is the characteristic of being produced and consumed simultaneously. 17. Which of the following statements does not reflect a 'service-dominant logic' view of marketing? a. All products should be seen as a means to an end b. Value is essentially intangible c. The customer is inextricably involved in the process of value co-creation *d. Not all economies are service economies e. All of these options are correct General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. Service-dominant logic views all products as service-delivery mechanisms and all economies as service economies, and places service, and services, at the centre of marketing theory and practice. In particular, it draws fresh attention to: the concept of value and its essential intangibility, how the customer is inextricably involved in the process of co-creation of value, and how that value is co-created over time and between parties through the development of networks of communication and extended relationships. 18. Tickets to a concert that never get sold are an example of a services': a. heterogeneity. b. intangibility. *c. perishability. d. homogeneity. General Feedback: Learning objective 11.2: describe how to develop and manage an effective marketing mix based on the unique characteristics of services. The inseparability of the production and consumption of services

© John Wiley & Sons Australia, Ltd 2018

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leads to a further distinctive characteristic, known as perishability. Perishability refers to the inability to store services for use at a later date. 19. When Telstra decided to shift its call centre operations from Australia to countries within Asia, it was an example of: a. consulting. b. leasing. *c. outsourcing. d. upskilling. e. None of the options listed. General Feedback: Learning objective 11.1: explain the importance of the service sector to the Australian and New Zealand economies, and the difference between services products and service as the delivery of products. Outsourcing involves the shifting of peripheral business activities to specialist providers. 20. Websites such as 'lastminute.com' and 'Halftix.com' offer discount prices for accommodation and entertainment in an attempt to balance supply and demand. Specifically these sites: a. restrict demand. b. increase supply capacity. *c. stimulate demand. d. decrease supply capacity. General Feedback: Learning objective 11.2: describe how to develop and manage an effective marketing mix based on the unique characteristics of services. It is appropriate to stimulate demand when the organisation has excess capacity to deliver services. Businesses such as 'lastminute.com' offer discount s during slow periods. 21. Which of the following characteristics distinguishes a service from a physical good? a. Intangibility. b. Inseparability. c. Heterogeneity. d. Perishability. *e. All of the options listed. General Feedback: Learning objective 11.2: describe how to develop and manage an effective marketing mix based on the unique characteristics of services. The characteristics that formally distinguish services from goods are intangibility, inseparability, heterogeneity and perishability.

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22. Which factor is most controllable in the delivery of a service? a. The organisations customers. b. The organisations competitors. *c. The organisations staff. d. The organisations product. General Feedback: Learning objective 11.2: describe how to develop and manage an effective marketing mix based on the unique characteristics of services. The most controllable factor in service delivery is the organisation's staff. 23. As a lawyer, Jason realises that many potential customers will experience feelings of uncertainty before engaging his services. In order to minimise these feeling, Jason could use: a. tangible cues. b. guarantees. c. testimonials. d. positive word-of-mouth promotion. *e. All of the options listed. General Feedback: Learning objective 11.2: describe how to develop and manage an effective marketing mix based on the unique characteristics of services. Tangible cues such as logos, staff uniforms or décor serve as both a promise and a reminder of the otherwise intangible service. Service guarantees offer the potential customer a course of redress should the service disappoint, while testimonials provide potential customers with the confidence that others have been happy with the service. Finally, positive word-ofmouth, particularly online, can also reduce consumers' uncertainty. 24. Accountants, lawyers, architects and investment advisers manage their customers closely as individuals and provide each with a service tailored to their unique circumstances and needs. They are known as: a. business service providers. *b. professional service providers. c. consumer service providers. d. individual service providers. General Feedback: Learning objective 11.3: appreciate the major challenges in the marketing of services. Professional service providers such as accountants, lawyers, architects and investment advisers manage their customers closely as individuals and provide each with a service tailored to their unique circumstances and needs.

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25. A service's intangibility can best be described as: a. its inability to be stored for use at a later date. b. it being produced and consumed simultaneously. c. inevitable, but minimisable, variations in the quality of its delivery. *d. its lack of physical form. e. None of the options listed. General Feedback: Learning objective 11.2: describe how to develop and manage an effective marketing mix based on the unique characteristics of services. The characteristic most fundamentally distinguishing services from goods is intangibility. Because a pure service is an activity and not an object, it cannot be easily perceived by the five physical senses. For example, you cannot touch financial advice, or smell education.

26. When sources of sustainable differentiation are relatively few, service providers can use a ____________ to create a unique market position. *a. service culture b. pricing strategy c. professional strategy d. consumer strategy General Feedback: Learning objective 11.3: appreciate the major challenges in the marketing of services. If products cannot be protected from imitation, then 'service culture' offers an opportunity to create a unique market positioning.

27. Which of the following statements is correct? *a. The intangible nature of services makes their evaluation prior to purchase difficult. b. The tangible nature of services makes their evaluation prior to purchase easy. c. The intangible nature of services makes their evaluation prior to purchase easy. d. The tangible nature of services makes their evaluation prior to purchase difficult. e. None of the options listed. General Feedback: Learning objective 11.2: describe how to develop and manage an effective marketing mix based on the unique characteristics of services. Intangibility makes the evaluation of services prior to purchase difficult, if not impossible.

28. A potential airline customer can evaluate the ____________ qualities of timetables, destinations and prices before making their purchase and experiencing the service. Many services, however, lack these qualities and instead customers rely on other qualities. © John Wiley & Sons Australia, Ltd 2018

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a. professional b. experience c. credence *d. search General Feedback: Learning objective 11.3: appreciate the major challenges in the marketing of services. A potential airline customer can evaluate the search qualities of timetables, destinations and prices before making their purchase and experiencing the service. Many services, however, lack these qualities and instead customers rely on other qualities. 29. When you visit the dentist, the service is consumed and created simultaneously in the same location. This characteristic of services is known as: a. intangibility. *b. inseparability. c. heterogeneity. d. perishability. e. physical evidence. General Feedback: Learning objective 11.2: describe how to develop and manage an effective marketing mix based on the unique characteristics of services. Inseparability is the characteristic of being produced and consumed simultaneously. For most services, it is impossible to separate the production of the service and the consumption of the service. 30. Services high in credence qualities include: a. furniture and jewellery. *b. root canal therapy and automotive repairs. c. holidays and haircuts. d. restaurant meals and childcare. General Feedback: Learning objective 11.3:...