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| 1 | |
Which of the following statements about not-for-profit (N-F-P) service organizations is true? |
| | A) | N-F-P organizations do not have a profit goal. |
| | B) | The park owned and operated by the City of Cordelia is an example of a N-F-P organization. |
| | C) | In many cases, N-F-P organizations operate in a fashion very similar to for-profit organizations. |
| | D) | N-F-P organizations are a distinctly different organization from nonprofit organizations. |
| | E) | All of the above statements about not-for-profit (N-F-P) service organizations are true. |
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| 2 | |
Which of the following developments has contributed directly to a growing awareness of marketing among N-F-P service organizations? |
| | A) | the fact service organizations as a rule do not use marketing |
| | B) | tax law changes that discourage gift giving of corporations |
| | C) | an increase in federal aid |
| | D) | the globalization of the world marketplace |
| | E) | decreased competition |
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| 3 | |
MSN 8.0, an Internet service provider, uses a butterfly in its print and broadcast marketing to show positive aspects of the service including how it protects minors. This butterfly is intended to help overcome problems associated with which service marketing characteristic? |
| | A) | intangibility |
| | B) | perishability |
| | C) | documentation |
| | D) | homogeneity |
| | E) | inseparability |
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| 4 | |
Documentation is one method used to overcome service problems resulting from intangibility. The two forms of documentation are: |
| | A) | contractual and manipulative |
| | B) | celebrity testimonials and "ordinary people" testimonials |
| | C) | referential and aspirational |
| | D) | past performance and future capabilities |
| | E) | supply and demand |
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| 5 | |
Television productions are a form of entertainment, and producers provide a service. Have you ever noticed how networks would use the name of producers like David Kelly in their promotions--calling a show the newest idea from David Kelly, the creator of Boston Legal? Which characteristic of service is the network dealing with when it tries to convince viewers because one David Kelly series was imaginative and well-crafted, all others will be also? |
| | A) | inseparability |
| | B) | perishability |
| | C) | heterogeneity |
| | D) | visual representation |
| | E) | documentation |
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| 6 | |
What type of difficulties do marketing executives experience due to the perishability characteristic of service? |
| | A) | how to price the service |
| | B) | product-planning |
| | C) | how to promote the service |
| | D) | scheduling of service workers |
| | E) | all of the above |
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| 7 | |
A "members only" business airline flies from Geneva to Paris and London. It targets senior company executives and promises its passengers check-in up to five minutes before departure, and a concierge to take care of passengers' luggage and advise hotels of their expected arrival times. This business airline is using a _____ strategy. |
| | A) | service segmentation |
| | B) | market aggregation |
| | C) | specialty advertising |
| | D) | service mark |
| | E) | single-source marketing |
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| 8 | |
A "members only" business airline flies from Geneva to Paris and London. It targets senior company executives and promises its passengers check-in up to five minutes before departure, and a concierge to take care of passengers' luggage and advise hotels of their expected arrival times. The business airline has used a _____ strategy to distinguish itself from its competitors. |
| | A) | market diversification |
| | B) | product penetration |
| | C) | product differentiation |
| | D) | product divestment |
| | E) | customer development |
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| 9 | |
An amusement park built on the edge of a small lake once offered swimming and boat rentals along with arcade games, carnival-type food, and rides for adults and children. When its liability insurance got too high, the park manager closed down the swimming area. What product-mix strategy did the manager use when the park ceased offering a swimming area to its customers? |
| | A) | life cycle management |
| | B) | product mix expansion |
| | C) | trading up |
| | D) | product line diversification |
| | E) | product contraction |
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| 10 | |
Why does McDonald's fast-food restaurants use a golden arch in all of its promotion? |
| | A) | as a way to manage its life cycle |
| | B) | to communicate its brand image |
| | C) | to deal with the homogeneity characteristic of service |
| | D) | to balance supply and demand |
| | E) | to do all of the above |
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| 11 | |
Which of the following statements about how nonprofits determine price is true? |
| | A) | In the provider market, nonbusiness organizations use the same tactics for determining price as profit-seeking firms. |
| | B) | In the client market, nonbusiness organizations do not set the price. |
| | C) | Some nonbusiness groups tend to believe there are no pricing considerations with regards to clients because there is no monetary charge. |
| | D) | Nonbusiness organizations can cover their costs with prices charged to clients. |
| | E) | None of the above statements about how nonprofits determine price is true. |
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| 12 | |
The use of databases is most closely associated with which of the following pricing strategies? |
| | A) | leader pricing |
| | B) | niche pricing |
| | C) | equilibrium pricing |
| | D) | dynamic pricing |
| | E) | data-mined pricing |
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| 13 | |
The ownership channel for most services is short and quite simple due to the _____ characteristic of services. |
| | A) | inseparability |
| | B) | intangibility |
| | C) | visualization |
| | D) | aggregated |
| | E) | heterogeneity |
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| 14 | |
Fundraisers for not-for-profit organizations are people who approach potentially generous donors and ask for donations are engaged in what type of promotion? |
| | A) | public relations |
| | B) | advertising |
| | C) | direct distribution |
| | D) | personal selling |
| | E) | publicity |
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| 15 | |
In many communities instead of buying tickets for a concert or a sporting event from a ticket agent, the tickets are purchased through a computerized system. Why is this done? |
| | A) | as a method of niche marketing |
| | B) | to overcome the intangibility characteristic of service |
| | C) | as a life cycle management strategy |
| | D) | as a means to standardize service |
| | E) | as a way of implementing a dynamic pricing strategy |
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