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Describe the issues relating to target markets that are unique to nonprofit service organizations.

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Answers will vary.Three issues relating ...

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Hannah likes to frequent Citrus,a fine dining restaurant,as she loves its beef lasagna and orders it every time she visits the restaurant.However,during her recent visit,the lasagna she was served was undercooked and starkly different in flavor compared with the ones she had previously eaten at the restaurant.When she informed the manager about it,she learned that the food was cooked by a replacement chef as the usual chef was on leave.In this scenario,which of the following characteristics of services is responsible for the lack of consistency and quality of the food at Citrus?


A) ​Heterogeneity
B) Perishability
C) Intangibility
D) ​Inseparability

E) B) and D)
F) C) and D)

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Explain the factors that should be focused on when deciding on distribution strategies for service organizations.

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Answers will vary.Distribution strategie...

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Chelsea runs a consultancy firm that provides stock market consulting for its clients.The firm advises its clients on where to invest and how to earn maximum profits.Given this information,Chelsea provides _____ through the consultancy firm.


A) ​service
B) value
C) brand
D) ​stock

E) A) and B)
F) A) and C)

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The number of customers who dine at Eat and Den,a restaurant,varies during weekdays and weekends.On days when customer traffic is less,Eat and Den incurs losses because the food prepared on one day will not be fresh the next day.In this scenario,which of the following characteristics of services is the reason for Eat and Den's loss of revenue?


A) ​Heterogeneity
B) Perishability
C) Intangibility
D) ​Variability

E) A) and C)
F) All of the above

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A limitation of revenue-oriented pricing is that:


A) ​it does not focus on maximizing the surplus of income over costs.
B) it cannot be used by manufacturing companies.
C) determining costs can be difficult for many services.
D) ​the profit goals of the company is not taken into account.

E) All of the above
F) C) and D)

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The first step in pricing a service is to define the unit of service consumption.

A) True
B) False

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Which of the following statements is true of a firm's distribution strategy?


A) ​The intensity of distribution should exceed the target market's needs and preferences.
B) Having too many outlets to distribute products may boost costs unnecessarily.
C) The location of a service does not influence the distribution strategy of a time-dependent service provider.
D) ​Since services are intangible, many service firms choose indirect distribution strategy.

E) None of the above
F) A) and B)

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Which of the following statements is true of bundled pricing?


A) ​It is simpler for a firm to administer than individually pricing each element.
B) It is preferable when consumers are willing to pay extra for every part of the service.
C) It is a pricing strategy where customers pay only for the service elements they use.
D) ​It is a pricing strategy that does not apply for services.

E) A) and B)
F) A) and C)

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Which of the following is a characteristic that distinguishes the pricing decisions of nonprofit organizations from those of profit organizations?


A) ​Consumers are charged a monetary price but instead must absorb monetary costs.
B) Their services are priced higher than the costs incurred.
C) Their services are paid for by people who are better off financially.
D) ​Indirect payment is not a common practice in nonprofit organizations.

E) None of the above
F) A) and B)

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Rent-A-Drive is a car rental company.It prices its cars based on operations-oriented pricing.In this case,Rent-A-Drive:


A) ​varies the prices according to supply and demand of cars.
B) maximizes the surplus of income over its costs.
C) allows customers to negotiate price. 
D) ​varies prices for customers from different market segments.

E) None of the above
F) A) and D)

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Internal marketing is more important for goods manufacturers than service firms.

A) True
B) False

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Each part of a firm's service mix should make a different contribution to achieving the firm's goals.

A) True
B) False

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Which of the following statements is true of nonprofit organizations?


A) ​They can measure their success and failure in strictly financial terms.
B) They seek to make a profit for redistribution to owners or shareholders.
C) They have a financial bottom line that simplifies decision-making processes for nonprofit managers.
D) ​They focus on generating enough funds to cover the organization's expenses.

E) C) and D)
F) A) and C)

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What are the challenges faced by service providers while deciding on a pricing strategy?

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Answers will vary.The unique characteris...

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At the _____ of relationship marketing,a firm uses financial and social bonds but offers value-added services that are not readily available from other firms.


A) ​financial level
B) customization level
C) structural level
D) ​social level

E) A) and D)
F) A) and C)

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Tina is an expert in gardening.She provides services like setting up new gardens,maintaining gardens,and landscaping.In the context of service processes,the services provided by Tina come under the category of _____.


A) ​information processing
B) mental stimulus processing
C) possession processing
D) ​people processing

E) A) and B)
F) C) and D)

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Nonprofit organization marketing is the effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets.

A) True
B) False

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A difference between people-processing services and possession-processing services is that people-processing services:


A) ​use technology directed at a customer's assets.
B) focus more on creating an attractive, comfortable physical environment.
C) require customers to enter the service factory.
D) ​focus more on training employees in employee-customer interaction.

E) None of the above
F) B) and C)

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Patronage-oriented pricing seeks to match supply and demand by varying prices.

A) True
B) False

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