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For their wedding anniversary,Beth and Rick wanted to go skydiving.They enrolled in a skydiving class at the local airport at a cost of $260.After a 30-minute training course in which everything that was going to happen to them was carefully explained,Beth and Rick were sent up in an airplane with two skydiving experts.Each was placed in a harness arrangement with one of the experts and did what is called a tandem dive.With a tandem dive,Beth and Rick get to enjoy the experience without having to worry about when to open the parachute.The skydiving expert does that for them.This tandem jump illustrates the _____ characteristic of services.


A) Versatility
B) Heterogeneity
C) Simultaneous production and consumption
D) Perishability
E) Intangibility

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

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The seven elements of the marketing mix for services are product,promotion,place,price,process,progress,and people.

A) True
B) False

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According to the concept of derived services,the value derived from physical goods is really the service provided by the good,not the good itself.

A) True
B) False

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Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining?


A) Technology-based services,which are superior to human-based services,are not being implemented enough
B) Services are leveling the playing field and consistently trying to offer the same level of service to every customer
C) Companies are decreasing their reliance on self-service and increasing the use of human interaction in the performance of services
D) Customer expectations are higher because of the excellent service they receive from some companies
E) Even though it is Easy to provide consistent,high-quality service,many companies do not want to do it

F) All of the above
G) A) and D)

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_____ refers to the fact that services cannot be saved,stored,resold,or returned.


A) Intangibility
B) Heterogeneity
C) Simultaneous production and consumption
D) Perishability
E) Incompatibility

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

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An attorney who charges a client for a missed appointment is taking into account the _____ characteristic of services.


A) Heterogeneity
B) Simultaneous production and consumption
C) Incomparability
D) Perishability
E) Intangibility

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

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Pricing is easier when marketing services than when marketing goods.

A) True
B) False

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_____ is a key determinant of whether an offering should be classified as a product or a service.


A) Physicality
B) Audience passivity
C) Intangibility
D) Perception
E) Abstraction

F) A) and C)
G) None of the above

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The first time Barry brought his car to Auto Lube to have the oil changed he was very satisfied with the service.The service manager consulted him several times while his car was being serviced,asked him if there were any problems with the car,recommended when additional services should be performed and answered questions directly and politely.However,when Barry went back to Auto Lube after three months to have his oil changed again,he was not satisfied with the service.The manager spoke to him only when he arrived and when he paid his bill.In addition,the manager was impatient and unfriendly during the interaction.Barry's experience at Auto Lube illustrates the _____ of services.


A) Intangibility
B) Heterogeneity
C) Simultaneous production and consumption
D) Perishability
E) Divisibility

F) A) and E)
G) B) and E)

Correct Answer

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Due to the _____ characteristic of services,customers will frequently interact with each other during the service production process and may affect each other's experiences.


A) Comparability
B) Intangibility
C) Heterogeneity
D) Simultaneous production and consumption
E) Perishability

F) A) and D)
G) All of the above

Correct Answer

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Which of the following is NOT an example of a service business?


A) Amusement park
B) Hotel
C) Bank
D) Department store
E) Paper mill

F) B) and C)
G) A) and D)

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Bob Wilson owns and operates Flashdance Skating Rink.Last Monday afternoon,he had rented the rink out for a birthday party that was cancelled at the last minute due to a flu epidemic that had sickened three-fourths of the children who were invited.While Wilson kept the deposit,he did not get the skate rental fees or the snack food money he had anticipated from the rental.Wilson lost money as a result of the _____ characteristic of services.


A) Heterogeneity
B) Simultaneous production and consumption
C) Incomparability
D) Perishability
E) Intangibility

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

Correct Answer

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Two roommates both registered for an introduction to business class.At midterm,one roommate found his instructor so boring that he was thinking of changing his major to history.The other roommate had a charismatic teacher and looked forward to going to class.This heterogeneity of instruction demonstrates:


A) How difficult it is to synchronize supply and demand with service
B) That customer service depends on employee actions
C) How customers affect each other
D) The fact services cannot be readily communicated or displayed
E) Why services cannot be inventoried

F) A) and B)
G) A) and C)

Correct Answer

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Historically,the Japanese have had poor dental care.As part of their beauty regimen,the Japanese do have a habit of lightening and whitening their skin.Teethart has developed "tooth manicure" salons,which allow Japanese to match their teeth coloration to their skin.A personalized whitening mouthpiece is developed for each patient.The mouthpiece is placed around the teeth and a cleaning solution is added.The patient listens to soothing music and sits in a comfortable chair while his or her teeth are whitened.Monthly treatments in this spa-like environment reflect the _____ element of Teethart's service mix.


A) Product
B) Production
C) Process
D) Place
E) Promotion

F) C) and D)
G) A) and B)

Correct Answer

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In addition to the elements of the traditional marketing mix,the expanded mix for services includes:


A) Positioning,personalization,and process
B) People,physical evidence,and process
C) Personalization,procurement,and people
D) Profit,production,and psychology
E) People,partnerships,and positioning

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

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Because a product is tangible,it cannot be inventoried.

A) True
B) False

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Which of the following products is LEAST high in experience qualities?


A) Plastic surgery
B) A prom band
C) Catered banquet
D) Wedding dress
E) Pet grooming

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

Correct Answer

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Which of the following statements describes how consumers and employees are responding to technology-based services?


A) Services can readily calm fears that privacy may be sacrificed if technology is used
B) An infusion of technology can lead to an increase in human interaction
C) The payback for investments in technology is a certainty
D) Employees are often reluctant to integrate technology into their work lives
E) All of the above statements describe how consumers and employees are responding to technology-based services

F) B) and D)
G) A) and B)

Correct Answer

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Because the production and consumption of services is simultaneous,the mass production of services is difficult.

A) True
B) False

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The first time Alexis went to take golf lessons,she had a golf pro who was very patient with her and who was able to pinpoint what she was doing wrong without making her feel uncoordinated.Her second golf lesson was not nearly as helpful.The golf pro who gave the lesson wanted Alexis to watch what he was doing and imitate his swing.He was unable to verbalize his instructions.Alexis's experience with the two golf instructors illustrates the _____ of service.


A) Intangibility
B) Heterogeneity
C) Simultaneous production and consumption
D) Perishability
E) Divisibility

F) B) and E)
G) A) and E)

Correct Answer

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