Chapter 12 Delivering the Customer Experience: Bricks and Clicks 1) Which of the following is the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use? A) franchising B) retailing C) brokering D) wholesaling E) disintermediation Answer: B 2) Which one of the following statements about retailers and retailing activities is true? A) Retailers create form utility. B) Most retailers are multi-million dollar operations. C) Retailers are members of channels of distribution. D) About half of all U.S. workers are employed by retailers. E) Retailers sell only to businesses. Answer: C 3) According to the ________ hypothesis, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers; then become successful; and eventually take the place of the established retailers they had challenged. A) agent B) broker C) wheel-of-retailing D) warehousing E) retail life cycle Answer: C 4) Which of the following best explains why new retailers often squeeze out older retailers? A) retail borrowing B) the wheel-of-retailing hypothesis C) shrinkage D) pop-up retailing E) pyramid schemes Answer: B 5) Which of the following is most closely associated with upscaling in retailing? A) fewer members in the channel of distribution B) more members in the channel of distribution C) greater operating costs D) lower operating costs E) lower levels of customer service Answer: C 6) Which of the following is NOT a function of a point-of-sale (POS) system? A) collecting sales data B) connecting directly into a store's inventory-control system C) evaluating bids from potential suppliers D) collecting data on returns and transfers to other stores E) automatically sending orders to suppliers Answer: C 7) A marketing strategy that enhances the shopping experience for experiential shoppers is called ________. A) sweet-hearting B) retail borrowing C) party planning D) non-store retailing E) retailtainment Answer: E 8) Shoplifting, sweet-hearting, and retail borrowing are all problems that contribute to ________. A) off-price retailing B) shrinkage C) pyramid schemes D) understored trade areas E) pop-up retailing Answer: B 9) For the retailer, the practice of ________ results in lower total sales and, in many cases, damaged merchandise. A) sweet-hearting B) experiential shopping C) retail borrowing D) off-price retailing E) network marketing Answer: C 10) A cashier who purposely undercharges a customer or allows a friend to walk away without paying for items would most likely be accused of which of the following? A) sweet-hearting B) experiential shopping C) retail borrowing D) off-price retailing E) customer profiling Answer: A 11) Which of the following refers to store personnel tailoring the level of service they give based on a customer's perceived ability to pay? A) sweet-hearting B) experiential shopping C) retail borrowing D) off-price retailing E) customer profiling Answer: E 12) V&E Bridal Design Shop caters to engaged couples who desire a traditional Eastern Asian wedding ceremony. The brides-to-be who shop at this store are typically Japanese, Laotian, Vietnamese, Korean, or Chinese. This retailer has used ________ to identify a market segment. A) psychographics B) geography C) demographics D) socioeconomics E) its merchandise mix Answer: C 13) When sales are made in a local Walmart, the sales data is sent to Walmart headquarters where the data are used to build a picture of the buying habits of people who shop at individual Walmarts across the nation. The use of ________ makes this possible. A) POS systems B) social shopping C) e-commerce D) e-menus E) direct selling Answer: A 14) Josh purchased a new tie from an upscale men's clothing store to impress the managers he would meet at an important job interview. The day after the job interview, Josh returned the tie to the store for a full refund. This is an example of ________. A) buyer's remorse B) sweet-hearting C) retail borrowing D) shoplifting E) customer profiling Answer: C 15) Wholesaling includes all the activities involved in selling goods or services directly to final consumers for their personal use. Answer: False 16) One of the most thorough and complex explanations of changes in the retailing industry is the wheel-of-retailing hypothesis. Answer: False 17) Demographic changes have motivated marketers to make changes in the retailing industry. Answer: True 18) The retail industry has been largely unaffected by the trend of the world becoming "flatter." Answer: False 19) Failing to provide equal access to customers who appear economically disadvantaged is both unethical and illegal. Answer: False 20) When a cashier at the local grocery store purposefully fails to scan all of the items purchased by her friends and allows her friends to leave the store without paying for all of their items, the cashier is engaged in sweet-hearting. Answer: True 21) Briefly explain the wheel-of-retailing concept. Answer: According to this concept, many new types of retailing forms begin as low-margin, low-price, low-status operations. Over time, the retailers' success leads them to upgrade their facilities and offer more services; consequently, their costs increase, forcing them to increase their prices. Eventually, these retailers become prey to the new retailers entering the marketplace. 22) Pier 1 Imports started as a single store in San Mateo, California, offering low-priced beanbags, love beads, and incense to baby boomers. Today it sells quality home furnishings and decorative accessories. Why is Pier 1 Imports a perfect case study of the wheel-of-retailing hypothesis? Answer: The wheel-of-retailing hypothesis states that new types of retailers find it easier to enter the market by offering goods at lower prices than competitors. After they gain a foothold, new retailers gradually trade up by improving their facilities and by increasing the quality and assortment of merchandise. Pier I Imports did exactly this. 23) Give an example of how the recent economic downturn affected retailers' strategies. Answer: Answers will vary. Retailers have changed their merchandise assortment to offer consumers lower prices and discounted merchandise. Walmart and other mass merchandisers increased their use of private-label brands. During the economic downturn, many retailers shifted to offering more discounts and promotions to stimulate consumer spending, and some focused on expanding their online presence to reach a broader customer base and reduce reliance on physical stores. 24) Give an example of how global retailers have adjusted their offerings to meet the needs of different populations around the world. Answer: Answers will vary but may include the following: Applebee's and McDonald's don't serve pork in countries with large Muslim populations. Global retailers have adjusted their offerings by localizing products, such as adapting clothing styles and sizes to fit cultural preferences, and by incorporating region-specific flavors or ingredients in food products to cater to diverse tastes. 25) Describe the practice of retail borrowing and explain why it is unethical. Answer: Retail borrowing occurs when a customer returns non-defective merchandise for a refund after the merchandise has fulfilled the purpose for which it was purchased. This is unethical because the customer has essentially used the product free of charge, leaving the retailers with a used or damaged product. 26) A ________ is a set of related products a retailer offers. A) merchandise mix B) merchandise assortment C) merchandise breadth D) product depth E) product line Answer: E 27) ________ are large stores that combine an economy supermarket with other lower-priced non-food merchandise. A) Variety stores B) Category killers C) Supercenters D) Box stores E) Convenience stores Answer: C 28) ________ is the basis of most discount operations. Retailers offering this level of service require customers to perform their own product selection and may require customers to handle their own checkout process. A) Limited-service B) Full-service C) Self-service D) Specialty service E) Wholesale service Answer: C 29) Which of the following types of retailers place the most emphasis on salespeople assisting customers throughout the purchase process? A) limited-service retailers B) full-service retailers C) self-service retailers D) discount retailers E) off-price retailers Answer: B 30) Which of the following is the number of different product lines available at a particular retail store? A) merchandise breadth B) inventory depth C) merchandise depth D) retail diversity E) point-of-sale range Answer: A 31) Which of the following is LEAST likely to happen at a full-service retailer? A) Customers have access to alteration services. B) Gift wrapping services are offered. C) Customers seek and receive helpful guidance from trained sales associates. D) Customers handle their own checkout process. E) Product consultants are available to answer specialized questions. Answer: D 32) ________, such as Target and Kohl's, provide merchandise return and offer credit, but customers select merchandise without much assistance. A) Self-service retailers B) Full-service retailers C) Specialty retailers D) Off-price retailers E) Limited-service retailers Answer: E 33) Retail stores are often classified on the breadth and depth of their merchandise assortment. The breadth of the merchandise is the number of different lines available. The merchandise breadth may be classified as ________ or ________. A) narrow; broad B) narrow; deep C) shallow; broad D) shallow; deep E) narrow; full Answer: A 34) Retail stores are often classified on the breadth and depth of their merchandise assortment. The depth of the merchandise is the variety of choices for each specific product. Merchandise depth may be classified as ________ or ________. A) narrow; broad B) narrow; deep C) shallow; broad D) shallow; deep E) narrow; full Answer: D 35) Which of the following is true about convenience stores? A) They carry mostly shopping goods. B) They charge lower-than-normal prices for shopping goods. C) They are reluctant to change their store designs and offerings to adjust to changes in the market. D) They create time utility for their customers. E) They create form, time, and place utility for their customers. Answer: D 36) Which type of self-service store is a food store with a limited selection of items and few brands per item? A) convenience store B) box store C) specialty store D) variety store E) leased department store Answer: B 37) ________ carry a narrow assortment of product lines with deep assortments within those lines. A) Supermarkets B) Specialty stores C) Convenience stores D) Discount stores E) Off-price stores Answer: B 38) A large retail store that wants to offer a broader variety of products or services on site than it would otherwise carry would most likely make an arrangement with a(n) ________. A) leased department B) convenience store C) variety store D) factory outlet E) off-price retailer Answer: A 39) Which type of self-service store offers a limited line of inexpensive items, often at a single price point? A) convenience store B) box store C) specialty store D) variety store E) leased department store Answer: D 40) Which of the following is a discount retailer owned by a manufacturer that provides the manufacturer a store to sell off defective merchandise? A) a specialty store B) a factory outlet store C) a department store D) a general merchandise discount store E) a warehouse club Answer: B 41) Which of the following is true about general merchandise discount stores? A) They typically have deep and narrow assortments. B) They typically have shallow and narrow assortments. C) They do not use price differentiation. D) They appeal to consumers who want easy access to a lot of merchandise. E) They are typically full-service retailers. Answer: D 42) Which of the following types of retailers obtain surplus merchandise from manufacturers and offer brand-name, fashion-oriented goods at low prices? A) specialty stores B) warehouse clubs C) off-price retailers D) department stores E) hypermarkets Answer: C 43) Customers of a ________ buy most of the store's products in larger-than-normal packages and quantities. A) warehouse club B) department store C) factory outlet store D) leased department store E) hypermarket Answer: A 44) Which of the following is NOT true about warehouse clubs? A) They are not full-service stores. B) They often charge their customers with a modest annual membership fee. C) They carry items in bulk. D) They are a form of discount store. E) They have not followed the pattern set forth by the wheel-of-retailing hypothesis. Answer: E 45) Which of the following stores is most likely to have a narrow assortment of merchandise? A) a supermarket B) a factory outlet store C) a department store D) a warehouse club E) a hypermarket Answer: B 46) Which of the following statements about department stores is true? A) Department stores are more successful in America today than they have ever been. B) Department stores typically offer shallow and narrow assortments. C) Department stores are more popular in America than they are abroad. D) Department stores are typically self-service. E) Department stores were a dominant type of American retailer in the first half of the twentieth century. Answer: E 47) Which type of store combines the characteristics of a warehouse store and a supermarket? A) freestanding store B) department store C) box store D) hypermarket E) factory outlet store Answer: D 48) Which of the following types of retail stores would likely offer the broadest assortment of merchandise and services? A) convenience stores B) factory outlet stores C) specialty stores D) box stores E) hypermarkets Answer: E 49) Costco's surprise offerings of seconds, overstocks, and closeouts—occasionally including diamonds—is an example of how a retailer can differentiate itself through its ________. A) merchandise mix B) services mix C) destination retailing D) store atmosphere E) level of service Answer: A 50) A shoe department carries more than 55 different styles of white sandals. This is a description of the shoe department's ________. A) merchandise breadth B) retail diversity C) merchandise depth D) point-of-sale range E) service assortment Answer: C 51) The Paper Moon sells gift wrapping paper, stationery, and greeting cards. It does not sell any other products. The number of different kinds of wrapping paper, stationery, and cards make up its ________. A) point-of-sale range B) merchandise diversity C) atmospherics D) merchandise assortment E) retail format Answer: D 52) Several years ago, the Paradise Surf Shop was the only surf-gear store catering to women. It carried everything the serious female surfer needed to ride the waves. In terms of its merchandise assortment, it had a ________ assortment. A) shallow and deep B) narrow and deep C) shallow and broad D) broad and deep E) shallow and narrow Answer: B 53) Stop-N-Go and Circle K–small stores that serve consumers willing to pay a higher price for the ease of buying staples close to home–are ________. A) specialty stores B) convenience stores C) supermarkets D) hypermarkets E) off-price retailers Answer: B 54) GameStop sells video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________. A) department store B) convenience store C) specialty store D) general merchandise discount store E) off-price retailer Answer: C 55) Shop Well, a large supermarket chain, wants to offer a wider variety of fresh ready-to-go meals for its customers. Shop Well has contracted with The Great Wall, a Chinese restaurant, and Salad Heaven, a health food restaurant, to set up small take-out areas within the supermarket. This arrangement is an example of ________. A) convenience stores B) leased departments C) specialty stores D) hypermarkets E) off-price retailing Answer: B 56) Retailers like Sam's Club that promise bottom-dollar prices are often self-service operations. Answer: True 57) In limited-service retail operations, such as specialty stores and first-class department stores, salespeople assist customers in every phase of the shopping process. Answer: False 58) Off-price retailers obtain surplus merchandise from manufacturers and offer brand-name, fashion-orientated goods at low prices. Answer: True 59) Department stores carry a narrow range of products with deep assortments within those lines. Answer: False 60) When a gift shop decided to begin selling Blue Ridge pottery, it was modifying its merchandise mix. Answer: True 61) What is meant by merchandise breadth and depth? Give an example of a store for each of the following: narrow assortment, broad assortment, shallow assortment, and deep assortment. Answer: Merchandise breadth is the number of different product lines available. Merchandise depth is the variety of product choices available for each product line. A convenience store tends to have a narrow assortment. Convenience stores also tend to have a shallow assortment. Discount stores such as Walmart have a broad assortment. A bookstore that carries only mysteries, including hard-to-find ones, has a deep assortment. 62) Compare and contrast specialty stores and convenience stores. Answer: Specialty stores carry narrow product lines with deep assortments within those lines. They are not necessarily conveniently located for consumers. Convenience stores are small stores that carry a limited line of high-turnover convenience goods. They cater to customers willing to pay a premium for the ease of buying staples close to home. 63) Compare and contrast the four types of discount stores. Answer: General merchandise discount stores offer a broad assortment of items at low prices with minimal services. Off-price retailers have a narrower assortment, selling surplus merchandise from well-known manufacturers at low prices. Like general discount merchandise stores, warehouse clubs sell a broad assortment of food and nonfood items in bulk size. However, warehouse clubs are almost entirely self-service and often charge a modest membership fee. Unlike the other types of discount stores, factory outlet stores are owned by manufacturers that use the stores to sell defective merchandise or excess inventory at a low price. 64) Why might a retailer be interested in using the Census of Retail Trade, which classifies retailers according to the North American Industry Classification System (NAICS) codes? Answer: A retailer that wants to identify direct competition can find other firms that are classified by the same NAICS codes. 65) What is the merchandise assortment of an airport bookstore that sells only a few books but a large variety of magazines? Answer: The airport bookstore has a narrow assortment, meaning that it offers only a few product lines. It has a shallow assortment of books and a deep assortment of magazines. 66) Why have department stores struggled to survive in the United States in recent years? Answer: Specialty stores have lured department store shoppers with deeper, more cutting-edge fashion selection and better service. Department stores have also been squeezed by mass merchandisers and catalog retailers that can offer the same items at lower prices because they don't have the expense of rent, elaborate store displays and fixtures, high salaries for knowledgeable salespeople, and so forth. 67) Which of the following refers to any method a firm uses to complete an exchange that does NOT require a customer to visit a store? A) kiosk merchandising B) non-store retailing C) direct selling D) exchange retailing E) e-commerce Answer: B 68) Which of the following prohibits door-to-door selling unless prior permission has been granted by the household? A) the National Do Not Call Registry B) a Green River Ordinance C) permission-based e-marketing D) network marketing E) a party plan system Answer: B 69) Which of the following is a type of in-home selling? A) the party plan system B) network marketing C) the pyramid system D) e-commerce E) experiential marketing Answer: A 70) Another name for multilevel marketing is ________. A) the party plan system B) network marketing C) the pyramid system D) e-commerce E) experiential marketing Answer: B 71) In ________, a master distributor recruits other people to become distributors. The master distributor sells the company's products to the people she entices to join and receives commissions on all the merchandise sold by the people she recruits. A) multilevel marketing B) integrated sales C) disintermediated sales D) hierarchical sales E) party plan systems Answer: A 72) Which of the following is an illegal sales technique? A) retailtainment B) a party plan system C) a multilevel network D) a pyramid scheme E) off-price retailing Answer: D 73) In general, vending machines are best suited for selling which of the following? A) specialty goods B) unsought goods C) capital items D) food and beverages E) accessory equipment Answer: D 74) ________ e-commerce is the online exchange between companies and individual consumers. A) B2B B) B2C C) P2P D) C2C E) C2B Answer: B 75) Which of the following is NOT a benefit provided by e-commerce? A) It provides consumers the satisfaction of instant gratification. B) It reduces the cost of doing business. C) It enables specialized businesses to be more successful. D) It provides consumers more access to pricing information. E) It broadens product choices for consumers in smaller communities. Answer: A 76) Experts predicting that destination retail will be a future trend believe that consumers will soon visit retailers more for ________ than for the basic process of purchasing products. A) information B) credit services C) comparison shopping D) entertainment E) social opportunities Answer: D 77) Interactive videos, games, and contests are all ways that marketers provide ________ for online shoppers. A) in-home shopping B) virtual experiential marketing C) off-price retailing D) pop-up marketing E) network marketing Answer: B 78) A telephone call from a salesperson requesting you to purchase a subscription to an educational magazine designed to help children improve their math skills is an example of which of the following? A) direct selling B) one-way communication C) direct wholesaling D) two-way vending E) e-commerce Answer: A 79) Using current sales as a predictor, which of the following products would likely be most effectively sold using direct selling? A) women's shoes B) cleaning products C) baby furniture D) automobiles E) pet food Answer: B 80) The purchase of a set of flannel sheets from the Lands' End catalog Web site is an example of ________ e-commerce. A) B2B B) B2C C) POS D) C2C E) C2B Answer: B 81) Group dynamics are important to the success of party plan systems. Answer: True 82) Vending machines are currently best-suited to the sales of impulse items and expensive merchandise. Answer: False 83) Experiential shoppers enjoy the "thrill of the hunt" available through the experience of shopping on-line. Answer: True 84) The only types of retailers that have proven that e-commerce can be profitable are the traditional bricks-and-mortar retailers. Answer: False 85) Cannibalization is not a concern for traditional retailers who also operate an e-commerce site because the two locations attract completely different markets. Answer: False 86) Demographic changes have contributed to a decline in the use of door-to-door sales in the United States. Answer: True 87) Explain the differences between a multilevel network and a pyramid scheme. Answer: In a multilevel network, a master distributor recruits other people to become distributors. The master distributor sells the company's products to the people she entices to join and receives commissions on all the merchandise sold by the people recruited. It is a system that is growing in popularity, but not all forms of multilevel networking are legal. Pyramid schemes are multilevel networks that are illegal. People at the top of the pyramid profit from payments made by large numbers of people at the bottom level who hope to advance to the top. In a pyramid scheme, little or no effort goes into actually marketing the products. 88) Describe how non-store retailing has recently grown. Answer: Though most purchases are still made in stores, more and more consumers are now shopping using a broad range of non-store alternatives, including catalog shopping, direct selling, and automated vending. Easy-to-use websites, improved online service, and sophisticated search engines have all helped online business grow at a faster rate than retail buying. All types of retailers now use direct and online channels, with traditional bricks-and-mortar retailers selling online. 89) Explain the limitations for marketers offering e-commerce shopping. Answer: Limitations for marketers engaging in e-commerce retailing may include a lack of security and a customer's fear of fraud. The marketer must maintain the site to reap its full potential benefits. The marketer must also work to find innovative ways to address the consumers' need for "touch-and-feel" information before buying a product. Finally, marketers may have difficulties arranging for payment methods for consumers from developing countries that primarily use cash. 90) Explain the concept of non-store retailing, giving one example of a well-known product that has been marketed this way. Answer: Non-store retailing is any method a firm uses to complete an exchange that does not require a customer to visit a store. The textbook mentions Avon and Tupperware. 91) Barnes & Noble has many retail stores as well as a presence on the web. What are the concerns of Barnes & Noble regarding the relationship between the company's store sales and web sales? Answer: The big problem for Barnes & Noble is the concern that the online sales will cannibalize store sales. The company needs to be careful about steering customers toward its website, which may in turn steer customers away from its chain stores, which are bursting with inventory. 92) Bass Pro Shops, a chain of outdoor sports equipment stores, features giant aquariums, waterfalls, trout ponds, archery and rifle ranges, putting greens, and free classes on topics from ice fishing to conservation. Why would a retailer do this? Answer: Many shoppers are looking for a buying, entertainment, and social experience, which Bass Pro Shops offers as part of its destination retail strategy. 93) ________ are acts, efforts, or performances exchanged from producer to user without ownership rights. A) Tangibles B) Services C) Ideas D) Brand extensions E) Licenses Answer: B 94) Which of the following is NOT an example of a business service? A) security B) insurance C) legal advice D) raw material supply E) cleaning Answer: D 95) Four characteristics are used to differentiate services from goods. Which of the following is NOT one of those characteristics? A) intangibility B) perishability C) variability D) personalization E) inseparability Answer: D 96) Service ________ means that customers cannot see, touch, or smell good service. A) perishability B) variability C) intangibility D) responsiveness E) inseparability Answer: C 97) Capacity management is one of the ways to meet potential problems related to the ________ characteristic of services. A) intangibility B) perishability C) variability D) inseparability E) responsiveness Answer: B 98) Service ________ means that a firm cannot store its services. A) intangibility B) perishability C) inseparability D) variability E) personalization Answer: B 99) Service ________ refers to the inevitable differences in a service provider's performance from one service encounter to the next. A) inseparability B) variability C) personalization D) responsiveness E) intangibility Answer: B 100) A customer got a great haircut at a salon and went back six weeks later to the same person to get a second haircut. This time, the customer received one of the worst haircuts of his life. The difference between the two haircuts is due to the ________ characteristic of services. A) perishability B) responsiveness C) personalization D) variability E) inseparability Answer: D 101) A Colorado ski resort opens its mountain ski trails during the summer months for the recreational enjoyment of mountain bike riders. The resort is doing which of the following? A) using disintermediation B) using total quality management (TQM) C) using capacity management D) maintaining the core service E) using gap analysis Answer: C 102) The opportunities for ________ provided by the Internet have helped many companies in the financial services area address the problem of the inseparability of services. A) capacity management B) disintermediation C) service escape management D) transactional marketing E) critical incident management Answer: B 103) Which of the following is true due primarily to the inseparability of services? A) Customers have to rely on reassuring physical cues that indicate quality service. B) Service businesses cannot promise the same experience with every service encounter. C) A service is produced and consumed at the same time. D) It is impossible for service businesses to exactly match supply with demand. E) It is difficult for service businesses to live up to guarantees. Answer: C 104) Service ________ means that a service can only take place at the time the service provider performs it on either the customer or the customer's possessions. A) inseparability B) personalization C) variability D) intangibility E) creativity Answer: A 105) The ________ is the interaction between the customer and the service provider. A) supply-demand exchange B) transaction point C) service encounter D) service program E) service promotion Answer: C 106) Which of the following statements about the service encounter is true? A) The quality of service delivered by a company is only as good as its best employee. B) The customer plays a minimal role in the quality of the service encounter. C) An employee's actions, words, and physical appearance do not represent the organization. D) The quality of information provided by the customer does not affect the quality of the service encounter. E) The service encounter has a social dimension and a physical dimension. Answer: E 107) Which of the following is NOT a way that marketers classify services? A) services performed directly on the customer B) services performed directly on the customer's possession C) services performed indirectly on the customer D) services consisting of tangible actions E) services consisting of intangible actions Answer: C 108) Home security services and accounting services are classified as ________. A) tangible services performed on the customer B) intangible services performed indirectly on the customer C) tangible goods delivered to the customer D) tangible services performed on the customer's possessions E) intangible services performed on the customer's possessions Answer: E 109) Insurance, a television program, and a college education are all examples of ________. A) tangible services B) intangible services C) tangible possessions D) tangible goods E) intangible goods Answer: B 110) Facility exteriors and interiors are part of ________. A) the service escape B) disintermediation C) the core service D) the intangibles in a service exchange E) place marketing Answer: A 111) The environment in which service is delivered is referred to as the ________. A) service encounter B) service scape C) commerce scape D) operational factor E) locational factor Answer: B 112) Which of the following is an instrument to measure consumers' perceptions of service quality? A) total quality management (TQM) B) capacity management C) credence management D) SERVQUAL E) service scape Answer: D 113) Tangibles, reliability, responsiveness, assurance, and empathy are the five dimensions of service quality used in which of the following? A) total quality management (TQM) B) SERVQUAL C) gap analysis D) the critical incident technique E) the market fulfillment approach Answer: B 114) Which of the following is NOT true about the SERVQUAL scale? A) SERVQUAL is not used in connection with gap analysis. B) The SERVQUAL scale is usually administered in a survey format. C) Firms often track SERVQUAL scores over time to measure how their service quality has improved. D) SERVQUAL measures five dimensions of service quality. E) The SERVQUAL scale remains a popular tool for measuring customer perception of service quality. Answer: A 115) When using the SERVQUAL scale, a store focused on employee willingness to help customers and provide prompt service would likely pay the most attention to the results in the ________ dimension. A) creativity B) empathy C) assurance D) responsiveness E) reliability Answer: D 116) Karen likes using the SERVQUAL scale to measure her clients' perception of the quality of her hair styling salon because it includes assessing ________, which involves the physical facilities and equipment and professional appearance of the stylists. These aspects are very important for the comfort of her clients. A) tangibles B) reliability C) responsiveness D) assurance E) empathy Answer: A 117) Tony, a vice president of the St. Louis One Gateway Credit Union, decided to measure customers' perceptions of the service quality of the credit union. He chose to use the SERVQUAL scale because it included the ________ component, which involves the knowledge and courtesy of employees, as well as their ability to convey trust and confidence. A) empathy B) responsiveness C) assurance D) reliability E) creativity Answer: C 118) The president of a fast growing company that manages retirement communities states that the degree of caring and individual attention the residents receive is the most important component of service quality for his company. The president would be most likely to focus on the results in which of the following dimensions of the SERVQUAL scale? A) creativity B) reliability C) responsiveness D) assurance E) empathy Answer: E 119) Which of the following is used to measure the difference between a customer's expectations of service quality and what actually occurred? A) break-even analysis B) SERVQUAL C) the critical incident technique D) gap analysis E) SWOT analysis Answer: D 120) People, places, and ideas are all ________ that often need to be "sold" by someone and "bought" by someone else. A) tangibles B) goods C) intangibles D) values E) benefits Answer: C 121) Political consultants market politicians when they "package" candidates who then compete for "market share" as measured by ________. A) purchases B) market fulfillment C) credence qualities D) votes E) social networking Answer: D 122) An agent for an actor presents a client's qualifications to potential movie production companies until one company responds positively to the actor. This is an example of the ________ approach. A) product improvement B) market fulfillment C) total quality management (TQM) D) pure selling E) relationship marketing Answer: D 123) Modifications to certain characteristics of what is being marketed are integral to the ________ approach. A) pure selling B) product improvement C) market improvement D) product fulfillment E) market fulfillment Answer: B 124) Developing a new product to meet the minimum qualifications of an unmet need is integral to the ________ approach to marketing. A) social B) pure selling C) product fulfillment D) market fulfillment E) product improvement Answer: D 125) ________ strategies regard a city, state, country, or other locale as a brand. A) Social marketing B) Idea marketing C) Place marketing D) Service marketing E) Green marketing Answer: C 126) What strategy would a marketer most likely use to promote something that cannot be seen, has no smell, and cannot be felt? A) idea marketing B) place marketing C) people marketing D) relationship marketing E) one-to-one marketing Answer: A 127) Idea marketing could be about all of the following EXCEPT which one? A) gaining a market share for a concept B) communicating a philosophy C) encouraging a change in people's beliefs D) encouraging a change in people's actions E) promoting a specific product for profit Answer: E 128) Which of the following is NOT a trend that is expected to provide new opportunities for marketers of services? A) changing demographics B) declining levels of patriotism C) technological advances D) proliferation of information E) globalization Answer: B 129) Which of the following is a service industry in the United States that is likely to see growth due primarily to demographic changes? A) living assistance for seniors B) babysitting services for baby boomers C) health services for medical tourists D) technology consulting for businesses E) database services for businesses Answer: A 130) Which of the following product offerings is intangible? A) fish for an aquarium B) refillable ink cartridges for a computer printer C) a mink coat D) a meal at a fast-food restaurant E) a limousine ride Answer: E 131) To reduce problems associated with the intangibility of the services offered by a restaurant, the restaurant owner would be most likely to do which of the following? A) lower entree prices between 4 p.m. and 6 p.m. B) provide clean tablecloths and cloth napkins for each new customer C) empower employees to handle customer complaints D) offer a service guarantee to ensure customers that food quality will be consistent E) offer regular employee workshops focusing on customer service Answer: B 132) Christopher Messenger rents storage space to college students who go home for the summer but do not want to haul all of their property home and back. The business is profitable during the summer months, but when the storage space is unoccupied in the off-season, Christopher is losing money. What characteristic of service is most likely the source of Christopher's problem? A) intangibility B) perishability C) personalization D) variability E) inseparability Answer: B 133) A physician might deal with potential problems associated with the ________ characteristic of services by providing physical cues such as her medical diplomas hanging on the wall of the examining room. A) intangibility B) perishability C) variability D) inseparability E) personalization Answer: A 134) Jack was so enthusiastic about the band he saw performing at a local club last weekend that he persuaded a large group of friends to return to the club to hear the band on Thursday. Unfortunately, the band's Thursday performance was uninspired and at times off-key. The performance differences are due to the ________ characteristic of service. A) perishability B) variability C) creativity D) personalization E) responsiveness Answer: B 135) A hotel and resort company launched a new employee program that includes intensive training in different service encounter scenarios. This training program is most likely designed to lessen the problems related to the ________ characteristic of services. A) perishability B) intangibility C) creativity D) inseparability E) personalization Answer: D 136) Which of the following is NOT an example of a service encounter? A) a nurse listening to a patient's heart rate B) a potential customer using a search engine to locate a business C) a customer checking into a hotel D) a student attending a tutoring session E) a mechanic telling a customer what is wrong with his car Answer: B 137) An advertisement for the Blue Ridge Parkway (a highway) that runs from the Shenandoah Valley to the Smokey Mountains describes the highway as a "trip back in time." This is an example of ________. A) idea marketing B) place marketing C) social marketing D) services marketing E) the market fulfillment approach Answer: B 138) In 2003, Home Depot's 40 Arizona stores participated with the Arizona Department of Water Resources and the cities of Phoenix, Mesa, and Scottsdale in a $1.8 million "Water, Use It Wisely" campaign. This is an example of ________. A) place marketing B) social networking C) people marketing D) idea marketing E) societal benefit marketing Answer: D 139) Political candidates often hire image consultants who tell them what clothes to wear, how to wear their hair, and how to act in front of a crowd of people. Political candidates who use image consultants to help them market themselves to the voters are using which of the following strategies? A) brand extension B) market development C) diversification D) product improvement E) pure selling Answer: D 140) In 2001, the United Methodist Church budgeted $4 million for ads to encourage former church members to return to church. This ad campaign is an example of ________. A) product improvement B) market fulfillment C) place marketing D) people marketing E) idea marketing Answer: E 141) Services are currently the fastest growing sector of the American economy. Answer: True 142) Capacity management primarily deals with the intangibility characteristic of services. Answer: False 143) Ads for an airline promote its last minute fare savers program. This program is one way to deal with the service characteristic of perishability. Answer: True 144) Customers whose complaints are resolved quickly are no more likely to buy from the same company again than are customers whose complaints are resolved slowly. Answer: False 145) Companies should identify critical incidents so they can plan how to recover before a problem even occurs. Answer: True 146) The pure selling approach in marketing is exclusively associated with tangible items. Answer: False 147) To implement the market fulfillment approach, an agent would first identify a client and then identify an unmet need in the market that client could fulfill. Answer: False 148) In the future, global deregulation will likely affect the delivery of services of banks and other financial service industries by reducing competition. Answer: False 149) The trend of proliferation of information will provide greater opportunities for database services, artificial intelligence systems, and other services that facilitate the storage and transfer of knowledge. Answer: True 150) A package delivery company sells intangibles to its customers. Answer: True 151) By allowing employees to spend up to $2,500 to compensate guests for certain inconveniences, Marriott is empowering its employees to quickly recover from critical incidents. Answer: True 152) The talent agency that is trying to convince Berry College to hire a motivational speaker for the college's homecoming festivities is marketing people. Answer: True 153) What is the intangibility of service? How might a package delivery service deal with the intangibility characteristic of services? Answer: Intangibility means that customers can't see, touch, or smell good service. There are many ways a package delivery service could deal with intangibility. Those include delivering packages undamaged during transportation, clean trucks, neat uniforms, logos, friendly employees, and carefully designed marketing communications. Any physical cues reminding the customer that the company provides excellent service will help to address the issue of intangibility. 154) Services are characterized by four key characteristics. Name and describe these four characteristics. Answer: The four service characteristics are intangibility, inseparability, variability, and perishability. Services are intangible: they cannot be seen, tasted, felt, heard, or smelled before they are bought. Services are inseparable: they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines. Services are variable: their quality may vary greatly, depending on who provides them and when, where, and how they are provided. Services are perishable: they cannot be stored for later sale or use. 155) Explain why it is difficult to standardize services and why many consumers may not necessarily want service standardization. Answer: It is difficult to standardize services because service providers and customers vary. Each service encounter is different, as each service provider and each customer bring unique characteristics to the encounter. Service standardization is not necessarily the ideal because many people like to have their services personalized. Examples of personalized services may include haircuts, personal training sessions, meals at fine dining establishments, and therapy sessions. 156) JetBlue is a low-fare airline. JetBlue gives customers a friendly cabin crew, roomy overhead bins, live satellite TV at every leather seat, and even pay-per-view movies. How is JetBlue striving to provide quality service? Explain your answer. Answer: Quality service ensures that customers are satisfied with what they have paid for. Satisfaction is relative because the service recipient compares the current experience to some prior set of expectations. Customers of JetBlue airline may have paid a lower fare for a ticket than another airline would have charged for the same trip. The travel on that other airline may not have offered all the services listed. Therefore, the JetBlue travelers will be happy in getting to their destination, saving on the cost of the ticket, and enjoying the luxuries offered by JetBlue. 157) Discuss the social and physical dimensions of the service encounter, explaining how marketers can use these dimensions to improve the quality of the service encounter. Answer: The social dimension of the service encounter is the interaction between the employee and customer. The quality of a company's service depends on the quality of the employee, as the employee's appearance, courtesy, professionalism, and actions all represent the company. Companies should invest in continuous training to ensure that their employees are prepared and empowered to satisfy the customer in each encounter. The physical element of the service encounter is the service scape, which includes the exterior, interior, signage, colors, sounds, and even smells of the establishment. A carefully designed service scape can have a positive, welcoming effect on the customer. 158) Explain how customers are an important element of the service encounter. Answer: The customer must supply the service provider with correct information, follow directions, and provide any needed input. If the customer does not perform his or her role, then the service encounter is likely to be a service failure. 159) As a service provider, why might you perceive the buyer-seller interaction in the service encounter to be especially critical? Answer: Customers' perceptions are established during the service encounter. At this time, based on these perceptions, customers can become loyal, long-term buyers. 160) How might measuring service quality be more difficult than measuring product quality? Answer: Products are tangible; therefore, measuring quality across several dimensions—such as durability, functionality, and so on—may be easier or performed more consistently than when measuring service quality. 161) Explain how the gap between service quality standards and customer expectations can occur. How can it be avoided? Answer: This gap occurs when a company makes an exaggerated promise or does not accurately describe its service to customers. Service providers should communicate exactly what the customer can expect and what will happen if the company does not deliver on its promises. Test Bank for Marketing: Real People, Real Choices Michael R. Solomon, Greg W. Marshall, Elnora W. Stuart 9780132948937, 9780135199893, 9780134292663, 9780135209929
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