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CHAPTER 1
Understanding Services Marketing
TRUE-FALSE QUESTIONS
Ans:
Page:
T
6
1.
T
F
Compared to physical goods, services are the dominant
economic activity in developed countries around the
world.
Ans:
Page:
T
7
2.
T
F
A service is defined as a performance.
Ans:
Page:
F
8-9
3.
T
F
Services marketing is identical to goods marketing.
Ans:
Page:
T
8-9
4.
T
F
Distinguishing service and physical goods along a
continuum from intangible dominant services to tangible
dominant physical goods is a good way to differentiate
services marketing from goods marketing.
Ans:
Page:
T
8-9
5.
T
F
The proportion of tangibles to intangibles in a product
determines whether it is a good or a service.
Ans:
Page:
F
8-9
6.
T
F
It is not possible for services to have tangible
characteristics.
Ans:
Page:
F
8-9
7.
T
F
When distinguishing services marketing and physical
goods marketing, marketers are encouraged to think of
services and physical goods as an either-or dichotomy.
Ans:
Page:
T
9
8.
T
F
Supplementary services augment the tangible good.
Ans:
Page:
T
9
9.
T
F
Services are now proposed as the dominant logic in
marketing.
Ans:
Page:
F
9
10.
T
F
Services marketing is not relevant to physical goods
manufacturers.
Ans:
Page:
F
9
11.
T
F
Services do not typically rely on physical goods for their
performance.
Copyright © Houghton Mifflin Company. All rights reserved.
66
Chapter 1: Understanding Services Marketing
Ans:
Page:
T
9
12.
T
F
A service cannot be seen, touched, or held.
Ans:
Page:
T
10
13.
T
F
For many services, the customers are considered coproducers of the service.
Ans:
Page:
F
10-11
14.
T
F
Defective services can easily be corrected before they
reach the customer.
Ans:
Page:
F
11
15.
T
F
It is easy to standardize service quality.
Ans:
Page:
F
11
16.
T
F
Like physical goods, services can be inventoried.
Ans:
Page:
F
11-12
17.
T
F
Services involve the transfer of ownership to the
customer.
Ans:
Page:
F
12-15
18.
T
F
All services do not vary in the degree to which they
possess the characteristics that distinguish services from
physical goods.
Ans:
Page:
F
13
19.
T
F
There is one best way to classify services.
Ans:
Page:
T
15
20.
T
F
Interactive marketing is where the organization proves its
commitment to serving customers.
MULTIPLE-CHOICE QUESTIONS
Ans:
Page:
a
9
21.
The most easily recognizable service characteristic is
a.
intangibility
b.
simultaneity
c.
heterogeneity
d.
perishability
e.
All of these service characteristics are easily recognizable.
Ans:
Page:
c
9-12
22.
Which of the following conditions does NOT typically set services
apart from physical goods?
a.
Intangibility
b.
Simultaneity
c.
Cost
d.
Heterogeneity
e.
Perishability
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Ans:
Page:
e
9-12
23.
Which of the following statements does NOT describe a fundamental
characteristic of a core service?
a.
A service lacks a physical form.
b.
The customer and service provider often interact to produce the
service.
c.
It is difficult to standardize the quality of a service
performance.
d.
A service only exists at the time of its production.
e.
External environmental forces heavily influence a service
organization.
Ans:
Page:
e
9-12
24.
Which of the following statements about services is FALSE?
a.
It is often not possible for customers to examine a service
before it is performed.
b.
Customers often help create the service that they are
consuming.
c.
The opportunity to generate revenue from a service
performance disappears when some of the service provider’s
production capacity is not used during the service encounter.
d.
There is little chance to correct a faulty service before it
reaches the customer.
e.
Customers often tend to feel less risk when purchasing a
service compared to a physical good.
Ans:
Page:
a
9-12
25.
Which of the following statements comparing services with physical
goods is FALSE?
a.
Services may have tangible characteristics, whereas physical
goods do not have any intangible characteristics.
b.
Service organizations often require much closer contact with
customers than is commonly found in manufacturing
organizations.
c.
It is often more difficult to standardize the quality of a service
performance than it is to standardize the manufacturing of
physical goods.
d.
The marketing of services and physical goods can be greatly
influenced by external environmental forces.
e.
All of these comparisons between services and goods are false.
Ans:
Page:
a
9-12
26.
Which of the following comparisons between physical goods
marketing and services marketing is FALSE?
a.
In contrast to physical goods marketing, the intangibility of
services forces services marketers to be more creative in order
to distinguish their products from competitors.
b.
In contrast to physical goods marketing, service marketers
must manage the timing of demand rather than simply building
demand for their products.
c.
In contrast to physical goods marketing, anything that a
services marker does in relation to the customer becomes a
marketing activity.
d.
All of the comparisons between physical goods marketing and
services marketing are false.
e.
All of the comparisons between physical goods marketing and
services marketing are true.
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68
Chapter 1: Understanding Services Marketing
Ans:
Page:
b
9
27.
Which of the following is NOT typically considered a supplementary
service?
a.
A medical service
b.
An after-sales service agreement
c.
A music concert
d.
All of these services are typically considered supplementary
services.
e.
None of these services is typically considered a supplementary
service.
Ans:
Page:
e
12-16
28.
Which of the following approaches have not been used as a basis for
classifying services?
a.
The full range of specific service activities
b.
The types of customers that are served
c.
The type of service recipient and the nature of the service act
d.
The linkages between organizations, providers, and customers.
e.
All of the listed approaches have been used as a basis for
classifying services.
Ans:
Page:
c
15-16
29.
According to the Services Marketing Triangle, the __________ form
of marketing __________ promises in services marketing.
a.
Internal marketing, makes
b.
External marketing, enables
c.
Interactive marketing, keeps
d.
Internal marketing, keeps
e.
External marketing, keeps
COMPLETION QUESTIONS
Deed, Performance, or Effort
Simultaneity
Intangible
Variability
Co-producer
Perishability
Rental/Access
Services
Supplementary
Business to business service organizations
Consumer service organizations
Services Marketing Triangle
Interactive marketing
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Ans:
30.
A service is a(n) _____________.
Page:
Deed,
Performance, or
Effort
7
Ans:
Page:
Intangible
9
31.
A service is ___________ when it lacks physical form.
Ans:
Page:
Co-producer
10
32.
The services customer is often an important ____________ of the
completed service.
Ans:
Page:
Simultaneity
10
33.
The ___________ of production and consumption makes it difficult to
separate a service from the service provider.
Ans:
Page:
Variability
11
34.
The ____________ characteristic of the service makes it difficult to
standardize the quality of a service performance.
Ans:
Page:
Perishability
11
35.
The ____________ characteristic of a service means that services only
exist at the time of their production.
Ans:
Page:
Rental/Access
11-12
36.
The _______________ characteristic of a service means that services
provide temporary possession or access instead of ownership.
Ans:
Consumer
service
organizations
13-14
37.
_____________ provide services to customers who are purchasing for
their own personal needs.
38.
_____________ provide services to customers who are purchasing on
behalf of their organizations.
Page:
Business to
business service
organizations
14
Ans:
Page:
Services
9-10
39.
Intangible dominant products are also called __________.
Ans:
Page:
Supplementary
6
40.
______________ services are those services that are added to a physical
product to enhance its appeal to potential customers.
Ans:
Services
Marketing
Triangle
15-16
41.
The _______________ is based on three key components:
organizations, employees, and customers.
Interactive
marketing
15-16
42.
_______________ is where the organization proves its commitment to
serving customers.
Page:
Ans:
Page:
Ans:
Page:
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70
Chapter 1: Understanding Services Marketing
ESSAY QUESTIONS
43.
Why is it important to study services marketing?
44.
You teach at a local university that does not offer a services marketing course. After attending a services
marketing conference and reviewing Fisk, Grove, and John’s Services Marketing 4e, you decided to request
that the course be taught. After hearing your request, your department chair asked, “Why is it important to
study services marketing?” Prepare a convincing response to the question.
45.
Services are described as possessing five key characteristics. Choose a service, and describe it in terms of
these five characteristics.
46.
How would you respond to the statement “All services are basically the same”?
47.
Can services and physical goods be easily classified into separate categories (a goods category and a
services category)? Please explain.
48.
As a class exercise, students were given a list of products and asked to classify the products as goods or
services. You overhear one of your classmates saying, “This is going to be easy!” How would you respond
to this student?
49.
Is services marketing really different from the marketing of physical goods? Explain your answer.
50.
Your service organization is hiring a marketing person. One of the candidates has several years of
experience marketing a physical good. During your interview, this candidate states that there is no
difference between the marketing of a service and the marketing of a physical good. How would you
respond to the candidate?
51.
What is the fundamental difference between core services and supplemental services?
52.
During a class exercise, students were asked to classify a list of services as either a core service or a
supplemental service. To simplify the classification process, the instructor asked students to develop a
decision rule for determining whether a service would be classified as a core service or as a supplemental
service. What would your decision rule be?
53.
Describe the Marketing Service Triangle, its components, and the links between the components.
54.
Describe how the forms of services marketing outlined in the Services Marketing Triangle relate to the role
of promises in services marketing.
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