Chapter 1
New Perspectives on Marketing in the Service Economy
GENERAL CONTENT
Multiple Choice Questions
1. For-profit firms seek to achieve ____________ profits subject to ____________ constraints,
although not-for-profit service suppliers seek to achieve ____________ profits subject to
____________ constraints.
a. social; financial; financial; social
b. social; financial; social; financial
c. financial; transactional; social; regulatory
d. financial; social; social; financial
e. transactional; social; limited; transactional
(d; Moderate; p. 5)
2. The acronym for the new North American classification system that includes services is
____________.
a. NAFTA
b. NAICS
c. NACS
d. NACSS
e. NEICE
(b; Moderate; p. 8)
,3. Service markets are shaped by all of the following except ____________.
a. government policies
b. social changes
c. global economic change
d. business trends
e. advances in information technology
(c; Easy; p. 10)
4. A useful way to distinguish between goods and services is to place them on a continuum
from ____________ to ____________.
a. practical; impractical
b. tangible-dominant; intangible-dominant
c. low; high
d. reliable; unreliable
e. prepared; unprepared
(b; Easy; p. 14)
5. Firms’ market offerings are divided into ____________ and ____________ elements.
a. core product; supplementary service
b. marketing; management
c. product; delivery
d. service; delivery
e. planning; delivery
,(a; Moderate; p. 15)
6. Customers being turned away or having to wait is an implication of which aspect of
services?
a. People may be a part of the service experience.
b. Intangible elements usually dominate value creation.
c. Services are often difficult to visualize and understand.
d. Customers may be involved in co-production.
e. Most services cannot be inventoried.
(e; Easy; p. 17)
7. The three additional Ps of services marketing that extend the original four Ps of
marketing are _____________, _____________, and _____________.
a. price; place; promotion
b. process; people; promotion
c. physical environment; process; people;
d. prosperity; process; promotion
e. physical environment; planning; process
(c; Moderate; p. 21)
8. Service employees should have which set of the following?
a. Positive attitude, technical skills, and analytical skills.
b. Positive attitude, leadership skills, and analytical skills.
c. Technical skills, leadership skills, and interpersonal skills.
d. Positive attitude, interpersonal skills, and technical skills.
e. Technical skills, leadership skills, and analytical skills.
(d; Moderate; p. 27)
, 9. What are the three management functions that are central to meeting the needs of
service customers?
a. Marketing, operations, and finance.
b. Marketing, operations, and human resources.
c. Marketing, finance, and accounting.
d. Marketing, finance, and operations.
e. Finance, accounting, and human resources.
(b; Moderate; p. 28)
10. Which one of the following is NOT one of the four broad categories of service?
a. People processing
b. Possession processing
c. Mental stimulus processing
d. Information processing
e. Involvement processing
(e; Easy; p. 29)
True/False
11. Businesses are outsourcing fewer tasks in order to focus on their core business.
(False; Easy; p. 4)
New Perspectives on Marketing in the Service Economy
GENERAL CONTENT
Multiple Choice Questions
1. For-profit firms seek to achieve ____________ profits subject to ____________ constraints,
although not-for-profit service suppliers seek to achieve ____________ profits subject to
____________ constraints.
a. social; financial; financial; social
b. social; financial; social; financial
c. financial; transactional; social; regulatory
d. financial; social; social; financial
e. transactional; social; limited; transactional
(d; Moderate; p. 5)
2. The acronym for the new North American classification system that includes services is
____________.
a. NAFTA
b. NAICS
c. NACS
d. NACSS
e. NEICE
(b; Moderate; p. 8)
,3. Service markets are shaped by all of the following except ____________.
a. government policies
b. social changes
c. global economic change
d. business trends
e. advances in information technology
(c; Easy; p. 10)
4. A useful way to distinguish between goods and services is to place them on a continuum
from ____________ to ____________.
a. practical; impractical
b. tangible-dominant; intangible-dominant
c. low; high
d. reliable; unreliable
e. prepared; unprepared
(b; Easy; p. 14)
5. Firms’ market offerings are divided into ____________ and ____________ elements.
a. core product; supplementary service
b. marketing; management
c. product; delivery
d. service; delivery
e. planning; delivery
,(a; Moderate; p. 15)
6. Customers being turned away or having to wait is an implication of which aspect of
services?
a. People may be a part of the service experience.
b. Intangible elements usually dominate value creation.
c. Services are often difficult to visualize and understand.
d. Customers may be involved in co-production.
e. Most services cannot be inventoried.
(e; Easy; p. 17)
7. The three additional Ps of services marketing that extend the original four Ps of
marketing are _____________, _____________, and _____________.
a. price; place; promotion
b. process; people; promotion
c. physical environment; process; people;
d. prosperity; process; promotion
e. physical environment; planning; process
(c; Moderate; p. 21)
8. Service employees should have which set of the following?
a. Positive attitude, technical skills, and analytical skills.
b. Positive attitude, leadership skills, and analytical skills.
c. Technical skills, leadership skills, and interpersonal skills.
d. Positive attitude, interpersonal skills, and technical skills.
e. Technical skills, leadership skills, and analytical skills.
(d; Moderate; p. 27)
, 9. What are the three management functions that are central to meeting the needs of
service customers?
a. Marketing, operations, and finance.
b. Marketing, operations, and human resources.
c. Marketing, finance, and accounting.
d. Marketing, finance, and operations.
e. Finance, accounting, and human resources.
(b; Moderate; p. 28)
10. Which one of the following is NOT one of the four broad categories of service?
a. People processing
b. Possession processing
c. Mental stimulus processing
d. Information processing
e. Involvement processing
(e; Easy; p. 29)
True/False
11. Businesses are outsourcing fewer tasks in order to focus on their core business.
(False; Easy; p. 4)
