Learner's spot

101. Word-of-Mouth communication networks are particularly important for service firms because A. Service customers tend to rely more on personal than the non-personal source of information. B. Service firms do not believe in promotional efforts. C. Service firms can seldom afford to pay for promotional expenditures. D. Service customers tend to rely more on non-personal than personal sources of information. ANSWER: A 102. Initially, bank counter staff were uncomfortable with their new task of selling services to customers. They viewed themselves as bank counter staff and not salespersons. This is an example of which type of conflict? A. Channel conflict. B. Organization/client conflict C. Person/role conflict. D. Inter-client conflict. ANSWER: C 103. As part of the internal marketing strategy, the company takes up A. Performance appraisal. B. Training employees. C. Assigning more responsibilities D. Transferring the employees. ANSWER: B 104. The service quality is determined on the ba...

1. Services marketing become difficult because of A. Intangibility. B. No demand C. More complex market D. Difficult to enter the market ANSWER: A 2. Which of the following businesses would be characterized as a pure service A. Insurance B. Farming. C. Mining. D. There is no such thing as a pure service ANSWER: D 3. Which of the following statements about the pricing of services (compared to the pricing of goods) is false? A. The demand for services tends to be more elastic than the demand for goods B. Cost-oriented pricing is more difficult for services. C. Comparing prices of competitors is more difficult for service consumers D. Consumers are less able to stockpile services by taking advantage of discount prices ANSWER: B 4. Charging customers different prices for essentially the same service is called A. Price discrimination B. Supply and demand. C. Complementary D. Substitutes. ANSWER: A 5. Results in the practice of too narrowly defining one’s business A. Services marketing B. Ma...

51. The technique that allows consumers to either buy Service A and Service B together on purchase one service separately is called A. Long-term bundling B. Mixed bundling C. Price bundling. D. Product bundling ANSWER: C 52. Which pricing strategies encourage the customer to expand his/her dealings with the service provider? A. Relationship pricing B. Price bundling. C. Benefit-driven pricing. D. Efficiency pricing. ANSWER: A 53. Do studies suggest that price is more likely to be used as a cue to quality under the following conditions? A. When alternatives are of bad products B. When the company new to the market C. When a price is the primary differential information available D. When a customer does not have knowledge ANSWER: C 54. The primary role of a service firm for the customer in the communication mix is to …… A. Confuse customers. B. Inform and remind customers C. Oppose the competitor s claim D. Persuade the dealers. ANSWER: B 55. The plan for differentiating the firm from it...