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chapter 13: designing and managing serviceschapter 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: dpage: 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: epage: 403 level of difficulty: medium5.which of the following would be an example of a “hybrid” service? a.university b.professorc.restaurant d.soap manufacturere. airlineanswer: cpage: 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: apage 404 level of difficulty: medium7.services vary as to whether they are equipment-based or _.cess-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 duction needc.business needd.functional neede.customer need answer: c page: 404 level of difficulty: hard10.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: epage: 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: bpage: 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: bpage: 405level of difficulty: hard13. service companies can try to demonstrate their service quality through physical evidence and _. a. predatory pricing b. people fitse. presentation answer: epage: 405level of difficulty: medium14. unlike physical goods, services are produced and _ simultaneously. a. launchedb. consumedc. createdd.maximizede.none of the above answer: b page: 406level of difficulty: easy15.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. minent ductc. 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: bpage: 406level 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 service-performance process.d.invest in good training procedures.e. invest in good hiring procedures.answer: apage: 406level of difficulty: hard18.services cannot be stored, warehoused, or shelved. this is concept is unique to service marketers and is called _. a.standardization b.heterogeneity c.perishability angibility e.none of the above answer: cpage: 407level of difficulty: easy19.to match demand and supply, service marketers can utilize a number of strategies on the demand side. which of the following is not one of these strategies? a. complementary b.nonpeak demand c.differential pricingd.shared servicese.none of the aboveanswer: d page: 407level of difficulty: hard20.to match supply and demand on the supply side, marketers can employ a number of strategies. which of the following is not one of these strategies? a. peak-time efficiency. b.reservation system.c.increased consumer participation. d.part-time employees.e.none of the above answer: bpage: 407level of difficulty: easy 21. there are shifts that favor the customer in the client relationship. customers are now becoming more sophisticated about buying product support services and are pressing for “_.” a. selective pricing b.institutional pricing/services c.substitute motional pricing e.services unbundling answer: epage: 409 level of difficulty: hard22.holistic marketing for services requires external, _, and internal marketing. a.exceptional b.incremental c.consistent eractive e. influential answer: d page: 410 level of difficulty: hard23.factors that lead to customer switching behavior include all of the following except _. blem solving b. pricingc. inconvenienced.ethical problemse.none of the above answer: apage: 411level of difficulty: hard 24.clients judge the service outcome not only by its _ but also by its functional quality. a.length of time b. pricec.attributesd. completenesse.technical quality answer: epage: 411 level of difficulty: easy25. _ describes the employees skill in serving the client. a. interactive marketing b. internal marketing c.client marketing d.fixed marketing e.technical marketing answer: apage: 411 level of difficulty: easy26.according to parasuraman, zeithaml, and berry, the first “gap” in their service-quality model is the gap between _. a.perceived service and expected service b. service delivery and external communicationsc.service-quality specifications and service deliveryd.management perception and service-quality specificatione. consumer expectation and management perception answer: epage: 412 level of difficulty: hard27. according to parasuraman, zeithaml, and berry, the second “gap” in their service-quality model is the gap between _. a.perceived service and expected service b. service delivery and external communicationsc.service-quality specifications and service deliveryd.management perception and service-quality specificatione. consumer expectation and management perception answer: dpage: 413 level of difficulty: hard28. according to parasuraman, zeithaml, and berry, the third “gap” in their service-quality model is the gap between _. a.perceived service and expected service b. service delivery and external communicationsc.service-quality specifications and service deliveryd.management perception and service-quality specificatione. consumer expectation and management perception answer: cpage: 413 level of difficulty: hard29.according to parasuraman, zeithaml, and berry, the fourth “gap” in their service-quality model is the gap between _. a.perceived service and expected service b. service delivery and external communicationsc.service-quality specifications and service deliveryd.management perception and service-quality specificatione. consumer expectation and management perception answer: b page: 413level of difficulty: hard30. according to parasuraman, zeithaml, and berry, the fifth “gap” in their service-quality model is the gap between _. a.perceived service and expected service b. service delivery and external communicationsc.service-quality specifications and service deliveryd.management perception and service-quality specificatione. consumer expectation and management perception answer: apage: 413 level of difficulty: hard 31.the five determinants of service quality include all of the following except _. a. empathyb. assurancec. responsivenessd. reliabilitye. reputation answer: e pages: 413414level of difficulty: medium32.there is a _ where consumer perceptions on a service dimension would be deemed satisfactory, anchored by the minimum level consumers would be willing to accept and the level that customers believe can and should be delivered. a. empathy b.zone of tolerance c.zone of forgivenessd.perceived forgivenesse.value definitionanswer: bpage: 414 level of difficulty: medium33.top service companies are “customer obsessed.” they have a clear sense of their target customers and their needs. their management looks not only at financial performance on a monthly basis, but also at _. a.service performanceb. tangible rewardsc.consumer complaintsd.marketing activities e.none of the above answer: a page: 415 level of difficulty: medium34.a service company can differentiate itself on three levels. the first is reliability, the second is resilience, and the third is _. a. assuredness b.employees c. innovativenessd.teamworke.none of the aboveanswer: cpage: 416level of difficulty: hard 35. not all ssts improve service quality, but they have the potential of making service transactions more accurate, _, and faster. a. convenientb. discountedc. inconvenientd. populare.none of the aboveanswer: apage: 417 level of difficulty: easy36. when initiating self-service technologies, some companies have found that the biggest obstacle is not the technology itself, but _ customers to use it. a.enticing b.feeling comfortable with c.adaptingd.utilizinge. convincing answer: epage: 417 level of difficulty: easy37.delta airlines has been successful in getting customers to use its self-service kiosks by employing a number of tactics. which of the following was not a tactic used by delta airlines. a.advertise the advantages.b.charge for the convenience.c.be there to help.d.maintain the machines. e.none of the above. answer: bpage: 418 level of difficulty: easy 38.top firms audit service performance, both their own and their competitors on a regular basis. they collect _ to probe customer satisfiers and dissatisfiers. a. chat roomsb. voice of the customerc. e-mail solicitations d. consumer activists groupse. none of the above answer: bpage: 418 level of difficulty: easy39.services can be judged on customer importance and company performance. _ is used to rate the various elements of the service bundle and identify what actions are required. a. servqal b. consumer-quality analysis c. importance-performance analysis d. key-service indices analysis e. reliability-service indices analysis answer: cpage: 418 level of difficulty: hard40.studies of customer dissatisfaction show that customers are dissatisfied with their purchases about 25 percent of the time but that only about _ complain. a. 2 percentb.10 percentc.5 percentd.15 percente.none of the above answer: cpage: 419level of difficulty: easy41.customers whose complaints are satisfactorily resolve often become _ company loyal than customers who were never dissatisfied. a.effective b.no change c.mored. lesse. indifferentanswer: cpage: 420 level of difficulty: easy42.companies that _ disappointed customers to complainand also empower employees to remedy the situation on the spothave been shown to achieve higher revenues and greater profits than companies that do not have a systematic approach for addressing service failures. a.ignoreb.frustrate c. discouraged.encouragee.none of the above answer: dpage: 420 level of difficulty: easy43. research has shown that customers evaluate complaint incidents in terms of the_, the procedures used to arrive at those outcomes, and the nature of the interpersonal treatment during the process. a.anger of the customer b.personality of the managerc. outcomes they received.monetary rewardse.none of the above answer: cpage: 420 level of difficulty: medium44. getting front-line employees to adopt _ and to advocate the interests and image of the firm to consumers as well as take initiative and engage in conscientious behavior in dealing with customers can be a critical asset. pany policies and procedures b. win/win philosophyc. conflict management coursesd.training lessonse. extra-role behaviorsanswer: epage: 420 level of difficulty: hard 45.excellent service companies know that _ employee attitudes will promote stronger customer loyalty. a.accommodating b.non-threatening c. neutral d.negativee. positive answer: epage: 420 level of difficulty: medium46. service marketers frequently complain about the difficulty of _ their services. a. marketing b. diffusing c. differentiating d. developing e. designing answer: cpage: 422level of difficulty: medium47.service offerings can be differentiated in many ways. the offering can include innovative features. what the customer expects is called the _. a.brand plete service packagec.primary service packaged.bundled packagee.none of the above answer: cpage: 422 level of difficulty: hard48. to differentiate their service, a provider can add _ to the package of services already provided. a.secondary service features b. primary service featuresc.value bundlingd.branding e. price bands of like services answer: apage: 422level of difficulty: medium49. sometimes, companies achieve differentiation through the sheer range of its service offerings and the success of its _ efforts. a.pricing b.cross-selling c.advertising d.sales representatives e.none of the above answer: bpage: 422level of difficulty: hard50. developing brand strategies for a service requires special attention to choosing brand elements, establishing image dimensions, and _. a. developing a marketing niche b. developing an advertising campaignc.devising a branding strategy d. developing differentiatione.none of the above answer: cpage: 423 level of difficulty: easy51. the intangibility of services has implications for the choice of brand elements. because service decisions and arrangements are often made away from the actual service location, brand _ becomes critical. in such cases, an easy-to-remember brand name is imperative. a.design b.slogansc. imaged. recalle.remindanswer: dpage: 423 level of difficulty: easy52. because a physical product does not exist, the _ of the service provider-its primary and secondary signage, environmental design and reception areas, etcetera are especially important. a.characters b.logo c. physical facilities d.brand image e.colorsanswer: cpage: 423 level of difficulty: easy53. organizational associationssuch as perceptions about the people who make up the organization and who provide the service-are likely to be particularly important brand associations that may affect evaluations of service quality directly or indirectly. one particular important association is company _ and perceived expertise, trustworthiness, and like

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