355Chapter 13: Designing and Managing ServicesGENERAL CONCEPT QUESTIONSMultiple Choice 1. As companies find it harder and harder to differentiate their physical products, they turn to service differentiation. Companies seek to develop a reputation for _, better and faster answering of inquiries, and quicker resolution of complaints. a. superior packaging b. superior “value”c. superior on-time delivery d. superior productse. superior customer service Answer: c Page: 401 Level of difficulty: Easy2. Service industries are everywhere. They include government, private nonprofit, business sector, manufacturing sector, and the _. a. insurance salespeople b. seasonal workersc. temporary workersd. retail sectore. none of the above Answer: d Page: 402 Level of difficulty: Easy3. Manufacturers, distributors, and retailers can provide _ services or simply excellent customer service to differentiate themselves. a. financial b. value-addedc. sales d. marketing e. distribution Answer: b Page: 402 Level of difficulty: Easy4. There are five categories of offerings for a service. It can be either a minor or a major component of the companys offerings. Which of the following is NOT one of these five categories?a. Pure tangible good.b. Tangible good with accompanying services.c. Hybrid.d. Major service with accompanying minor goods and services.e. Major service with accompanying major goods.Answer: e Page: 403 Level of difficulty: MediumPart 5: Shaping the Market Offerings3565. Which of the following would be an example of a “hybrid” service? a. University b. Professorc. Restaurant d. Soap manufacturere. AirlineAnswer: c Page: 403 Level of difficulty: Medium6. Which of the following would be an example of a “pure service”? a. Insurance b. Airlinesc. Car dealerd. Copier company e. None of the above Answer: a Page 404 Level of difficulty: Medium7. Services vary as to whether they are equipment-based or _.a. service-basedb. people-basedc. process-basedd. historical-basede. none of the aboveAnswer: b Page: 404 Level of difficulty: Hard8. Some services require that the client be present to conduct the service An example of such a service is a _. a. vending machines b. fast-foodc. medical operation d. car repaire. tax serviceAnswer: c Page: 404 Level of difficulty: Easy9. Services differ as to whether they meet a personal need or a _. a. quality needb. production needc. business needd. functional neede. customer need Answer: c Page: 404 Level of difficulty: HardChapter 13: Designing and Managing Services35710. Services high in _qualities are those services that have characteristics the buyer normally finds hard to evaluate even after consumption.a. equipment b. search c. experienced. personal attentione. credenceAnswer: e Page: 404 Level of difficulty: Medium11. Services have four distinctive characteristics that greatly affect the design of marketing programs. Which of the following is NOT one of these characteristics? a. Intangibilityb. Communicability c. Variabilityd. Perishability e. None of the above Answer: b Page: 405 Level of difficulty: Medium12. Services cannot be seen, tasted, felt, or heard before they are bought To reduce uncertainty, buyers will look for evidence of quality. They will draw inference about quality from place, people, and price they see. Therefore, the service providers task is to “_.” a. communicate valueb. manage the evidencec. full speed aheadd. high touch- high pricee. none of the above Answer: b Page: 405 Level of difficulty: Hard13. Service companies can try to demonstrate their service quality through physical evidence and _. a. predatory pricing b. people c. pricingd. profitse. presentation Answer: e Page: 405 Level of difficulty: Medium14. Unlike physical goods, services are produced and _ simultaneously. a. launchedb. consumedc. createdd. maximizede. none of the above Answer: b Page: 406 Level of difficulty: EasyPart 5: Shaping the Market Offerings35815. One of the special features of services marketing is the provider-client interaction. This is defined as when the client is also _ as the service is produced. a. prominent b. productc. producingd. presente. payingAnswer: d Page: 406 Level of difficulty: Hard16. Services depend on who provides them and when and where they are provided they are highly _. a. suspectb. variable c. consistent d. sub-standarde. none of the aboveAnswer: b Page: 406 Level of difficulty: Easy 17. There are three steps service firms can take to increase quality control. Which of the following is NOT one of these steps? a. Reduce customer contact points. b. Monitor customer satisfaction. c. Standardize the ser