Chapter 12 Flashcards
(113 cards)
1
Q
Insurance companies are examples of service organizations.
A
T
2
Q
Services tend to exhibit more search qualities than do tangible goods
A
F. Tangible goods has more search qualites than tangible
3
Q
Services are considered inseparable because most services cannot be felt or touched in the same
way most goods can be sensed.
A
Intangibility
4
Q
All of the following are unique characteristics that distinguish services from goods EXCEPT:
a. intangible
b. inseparable
c. searchable
d. heterogeneous
e. perishable
A
C
5
Q
A service cannot be touched, seen, tasted, heard, or felt in the same manner in which goods can be
sensed and, therefore, is referred to as:
a. impervious
b. extraneous
c. synergistic
d. perishable
e. intangible
A
E
6
Q
A(n) _____ is a characteristic that can be easily assessed prior to purchase, such as the softness of
a mattress or the color of curtains.
a. search quality
b. intangible attribute
c. experience quality
d. credence quality
e. heterogeneity feature
A
A
7
Q
The service provided by employees at boutique hotels cannot be
touched, seen, or felt in the same manner as the hair and bath products and can be described as:
a. unknowable
b. tangible
c. intangible
d. credible
e. incomprehensible
A
C
8
Q
While it is difficult for a dog owner to evaluate the service their pooch
will receive, they are impressed with the upscale design and amenities offered. To cope with the
problems of service _____, the facilities at the Ritzy Canine are very upscale in design to give the
impression of excellent treatment.
a. perishability
b. homogeneity
c. intangibility
d. inseparability
e. heterogeneity
A
C
9
Q
A characteristic that consumers may have difficulty assessing even after purchase because they do
not have the necessary knowledge or experience is referred to as _____ quality.
a. search
b. experience
c. credence
d. abstract
e. inert
A
C. Medical and consulting services are examples of services that exhibit credence qualities.
10
Q
Alec had his gall bladder removed, but he was unconscious during the operation. In fact, even
though he has an incision, he really has no way of knowing if the service was actually performed
even after it was allegedly performed. That is because medical services such as this exhibit
_____ qualities.
a. credence
b. perishable
c. experience
d. search
e. Homogeneity
A
A
11
Q
Which of the following services would be most likely to exhibit strong credence qualities?
a. a math tutorial service
b. the repair of a leaky drain
c. the preparation of a dead body for burial
d. tax return preparation
e. a landscaping service that mows lawns
A
C
12
Q
David and Kathy are trying to decide where to go on vacation. David has suggested a cruise.
Since neither of them have been on a cruise before, they will be unable to assess the _____ of a
cruise until they actually take the vacation.
a. tangible attribute
b. experience quality
c. creative quality
d. credence quality
e. heterogeneity feature
A
B
13
Q
Girls Just Wanna Have Funds” is a Washington, D.C. support group that consist of mostly young
women that offers tips on budgeting and debt relief. Since you cannot evaluate the quality of the
financial advice until after you have received it, this is an example of the _____ characteristic of
service.
a. Reliability
b. Heterogeneous satisfaction
c. Search quality
d. Temporal quality
e. Experience quality
A
E
14
Q
To evaluate the quality provided by boutique hotels, customers can
assess the quality only after staying. This is which quality characteristic?
a. experience
b. relational
c. credence
d. search
e. synergistic
A
A
15
Q
Before leaving a dog at the Ritzy Canine, its owner would more than
likely inspect the facilities and use _____ qualities to evaluate the establishment.
a. experience
b. credence
c. investigative
d. search
e. standardized
A
D
16
Q
What is a search quality in the context of product characteristics?
a) A characteristic that can be easily assessed before purchase
b) A feature that becomes apparent only after purchase
c) A subjective attribute of a product
d) A quality that is difficult to evaluate
A
A
17
Q
Greta, the owner of House Mouse Cleaning Services, must be physically present when she cleans
a house or office. The need for her presence as the service is performed is an example of the
intangibility of services.
A
F. The need for her presence and the customer’s presence is an example of how services are
produced and consumed simultaneously (inseparability)
18
Q
Which unique characteristic of services means consumers must be present during the production?
a. intangibility
b. inseparability
c. heterogeneity
d. perishability
e. connectivity
A
B
19
Q
Management-labor mediation, child care, and college preparation classes are all services that are
produced and consumed at the same time. All of these services exhibit the service characteristic
of:
a. inseparability
b. intangibility
c. heterogeneity
d. perishability
e. variability
A
A
20
Q
It is difficult for most of us to talk about mistakes we have made. Unfortunately, for organizations
like Consumer Credit Counseling to help you work through your financial issues, you must be
willing to honestly discuss your financial condition. In other words, for these organizations to
help you must be actually involved in the process of developing your financial plan, which points
to the _____ nature of services.
a. intangibility
b. inseparability
c. heterogeneity
d. perishability
e. flexibility
A
B
21
Q
What does “inseparability” refer to in the context of services?
a) The ability to separate the service from the service provider
b) The inability to separate the service from the service provider
c) The ease of separating the service from the service provider
d) The interchangeable nature of service providers
A
B
22
Q
Why is the presence of the service provider necessary during the creation of the service?
a) To increase operational efficiency
b) To ensure the service meets quality standards
c) To reduce costs
d) To minimize customer interaction
A
B
23
Q
What role do customer-facing employees play in the service experience?
a) They have no impact on the service experience
b) They are a minor part of the service experience
c) They are a huge part of the service experience
d) They are interchangeable with other employees
A
C
24
Q
Why do service companies invest in extensive employee training?
a) To reduce customer interactions
b) To eliminate the need for customer-facing employees
c) To ensure a positive customer experience
d) To minimize employee turnover
A
C
25
Heterogeneity of services means the quality of a service may not be consistent
T
26
Which unique characteristic of services is the variability of the inputs and outputs of services,
which causes services to tend to be less standardized and less uniform than goods?
a. intangibility
b. inseparability
c. heterogeneity
d. perishability
e. flexibility
C
27
It is difficult to achieve consistency and standardization of services because of which service
characteristic?
a. customization
b. simultaneous production and consumption
c. intangibility
d. perishability
e. heterogeneity
E
28
A reading service for the visually impaired requires each reader applicant to prepare and submit a
one-hour interview tape of material chosen by the service to determine whether the reader has
pleasing vocal characteristics and is accent-free so that it is not necessary to use the same reader
every time. The reading service is trying to limit problems associated with the service
characteristic of:
a. tangibility
b. credence quality
c. heterogeneity
d. simultaneous production and consumption
e. flexibility
C
29
Community Trust Bank has always prided itself on the friendliness of its employees. However,
the results of a recent mystery shopper study indicated that the bank tellers rarely greeted
customers or thanked them after the transaction. As a result, all bank employees that have
customer contact are going through a training program to enhance customer service. What unique
aspect of services is Community Trust attempting to address?
a. heterogeneity
b. perishability
c. intangibility
d. simultaneous production and consumption
e. unfocused targeting
A
30
Since boutique hotels are typically independently owned and/or part of
small chains, people who seek out boutique hotels cannot be sure of what type of amenities or
specific services they will be provided. In other words, the services provided by boutique hotels
tend to be relatively high in:
a. instability
b. inseparability
c. intangibility
d. heterogeneity
e. perishability
D
31
The bear watching vacation experience can vary greatly depending on
many factors, including the lodge itself and the tour guide. For example, lodging can run from a
“rustic” room with little more than a bed to a plush room with all the modern amenities. This is an
example of the _____ characteristic of services.
a. intangibility
b. inseparability
c. heterogeneity
d. perishability
e. homogeneity
C
32
What does "heterogeneity" refer to in the context of services?
a) Consistency in service quality across employees and transactions
b) Variation in service quality across employees and transactions
c) Predictability in service delivery
d) Uniformity in customer experiences
B
33
How does heterogeneity manifest in service delivery?
a) Through consistent service quality
b) Through predictable customer experiences
c) Through variation in service quality between employees and transactions
d) Through uniformity in customer interactions
C
34
What do service organizations aim to do regarding heterogeneity in customer experiences?
a) They aim to increase heterogeneity
b) They aim to maintain the current level of heterogeneity
c) They aim to reduce the amount of heterogeneity
d) They aim to eliminate heterogeneity entirely
C
35
What impact does heterogeneity have on customer perceptions of service quality?
a) It improves customer perceptions
b) It has no effect on customer perceptions
c) It may lead to mixed or inconsistent customer perceptions
d) It guarantees positive customer perceptions
C
36
Due to service _____, services cannot be stored, warehoused, or inventoried.
a. tangibility
b. variability
c. intangibility
d. perishability
e. heterogeneity
D. Perishability is the inability of services to be stored, warehoused, or inventoried.
37
David and Kathy like to take their young son, Chaz, to Moe’s for lunch after church on Sunday.
While they like to eat at Moe’s anytime, Sunday is particularly good because it’s “kids-eat-free”
day at Moe’s southwestern grill. Until Moe’s began the reduced pricing program, Sundays were
very slow. Now it is one of the busiest days of the week. This price reduction was a way to
contend with the service characteristic of:
a. variability
b. perishability
c. intangibility
d. inseparability
e. simultaneous production and consumption
B. Differential pricing tries to even out demand. This is important because services cannot be stored,
inventoried, or warehoused.
38
One of the reasons consumers can purchase cheap flights or hotel rooms on Web sites such as
Expedia.com and Hotels.com is due to the fact that airlines cannot sell the seat on a specific flight
after the plane takes off or hotels cannot recoup the revenue from that room for that night once
the night passes. Which unique characteristic of services does this illustrate?
a. intangibility
b. inseparability
c. perishability
d. simultaneous production and consumption
e. variability
C
39
What does "perishability" refer to in the context of services?
a) The quality of services deteriorating over time
b) The inability to store services for later use
c) The durability of services
d) The long-lasting nature of service
B
40
How do time and location constraints affect the delivery of services?
a) They make services readily available at all times and locations
b) They impose limitations on when and where services can be provided
c) They have no impact on service delivery
d) They ensure flexibility in service scheduling
B
41
How do some service providers manage demand fluctuations caused by perishability?
a) By offering services at fixed prices
b) By increasing service availability
c) By using demand or dynamic pricing strategies
d) By reducing the quality of services
C
42
Which of the following industries commonly uses demand or dynamic pricing to manage perishability?
a) Healthcare
b) Retail
c) Technology
d) Hospitality
D
43
What is a strategy employed by service providers to make off-peak times more attractive?
a) Offering services at a fixed rate
b) Implementing large cancellation fees
c) Using demand or dynamic pricing
d) Providing no refunds for missed appointments
C
44
All of the following are service components customers use to evaluate service quality EXCEPT:
a. validity
b. empathy
c. assurance
d. responsiveness
e. reliability
A. Customers evaluate service quality through five components: reliability, responsiveness,
assurance, empathy, and tangibles.
45
Often hotels will offer deep discounts on weekends and during the off-season; for the same
reason, airlines will adopt a similar pricing strategy during off-peak hours. These services cannot
be stored, warehoused, or inventoried because they are perishable.
T
46
Which component of a service is the ability to perform the service dependably, accurately, and
consistently?
a. responsiveness
b. reliability
c. assurance
d. empathy
e. tangibles
B
47
FedEx advertises that they will “Absolutely Positively” have your documents delivered tomorrow
morning. FedEx is providing which of the following service quality aspects to its users?
a. tangibility
b. responsiveness
c. assurance
d. responsibility
e. reliability
E. Reliability is the ability to perform the service dependably, accurately, and consistently
48
Virtual Bellhop is a company that ships awkward sporting goods to vacation destinations so its
customers to not have to worry about lugging them through airports or having them damaged in
transit. Thus far, its record for getting the sporting equipment to the correct destination for the
vacationer is perfect. This indicates the company excels at which component of service quality?
a. tangibles
b. empathy
c. reliability
d. flexibility
e. assurance
C
49
One important aspect of Manhattan Milk’s service is the ability to deliver the
milk within 48 hours of being milked from the cow. This service quality component of the ability
to perform the service dependably, accurately, and consistently is referred to as:
a. assurance
b. empathy
c. reliability
d. tangibles
e. consistency
C
50
What does "reliability" refer to in the context of services?
a) The flexibility of service interactions
b) The inconsistency of service experiences
c) The consistency of service interactions
d) The variability of service quality
C
51
What is the relationship between reliability and heterogeneity in services?
a) Reliability and heterogeneity are synonymous
b) Reliability is unrelated to heterogeneity
c) Reliability is the opposite of heterogeneity
d) Reliability and heterogeneity are interchangeable concepts
C
51
How do customers typically perceive reliability in service interactions?
a) They value inconsistency
b) They expect a consistent experience each time they engage with the service
c) They prefer variability in service quality
d) They have no expectations regarding service consistency
B
51
The speed with which an ambulance can get to an accident site is an indication of the reliability
dimension of service quality
F
51
Which component of service quality represents the ability to provide prompt service?
a. reliability
b. responsiveness
c. assurance
d. empathy
e. tangibles
B
51
What does "responsiveness" refer to in the context of services?
a) The ability to provide consistent service interactions
b) The prompt and attentive nature of service provision
c) The variability in service quality
d) The flexibility in service delivery
B
52
Jonathon had a problem when submitting an exam in his online marketing class and he received a
score of zero, so he sent an email to the professor explaining his problem. He was really worried
because the exam was due that evening, and he was very pleased when the professor replied
within an hour telling him that he scored a 90 on the exam. The professor’s prompt reply to his
inquiry is an example of which service quality component?
a. reliability
b. responsiveness
c. assurance
d. empathy
e. tangibles
B
52
Why is prompt and attentive service considered essential for customer satisfaction?
a) Because customers prefer slow service
b) Because it minimizes customer satisfaction
c) Because it addresses customers' concerns quickly and effectively
d) Because it increases service variability
C
53
How do customers typically perceive service providers who are responsive?
a) Negatively
b) Positively
c) Indifferently
d) Erratically
B
54
What do customers prefer in terms of responsiveness from service providers?
a) Slow and indifferent service
b) Inconsistent service interactions
c) Quick and effective resolution of concerns
d) Erratic service delivery
C
55
Which service quality component is the knowledge and courtesy of employees and their ability to
convey trust?
a. reliability
b. responsiveness
c. assurance
d. empathy
e. tangibles
C
56
Buying a car through eBay may result in a low price, but how do you know you will be getting a
good car? One nice feature provided by eBay is the “feedback rating” that provides ratings and
comments from people that have made purchases from that seller before. Which service quality
component does the feedback rating address?
a. empathy
b. assurance
c. tangibles
d. flexibility
e. responsiveness
B
57
Oberweis Dairy has been in business for over 80 years, and customers trust
this provider. Which component of service quality does this trust exemplify?
a. creativity
b. assurance
c. empathy
d. tangibility
e. reliability
B
58
What does "assurance" primarily relate to in the context of services?
a) The promptness of service delivery
b) The knowledge, skill level, and credibility of service providers
c) The variability in service quality
d) The flexibility in service interactions
B
59
The service characterized by caring, individualized attention to customers is referred to as
sympathy
F. Empathy
60
Service personnel who exhibit caring, individualized attention to customers are addressing which
service quality component?
a. reliability
b. responsiveness
c. assurance
d. empathy
e. tangibles
D
61
Courtney's mother died of breast cancer, and she is afraid of getting cancer. When she went to get
a baseline mammogram, she wanted a facility where the personnel would not think her fears were
silly and would answer all of her questions without making her feel stupid for asking them. By
which of the following components of service quality is Courtney most likely to rate the
mammogram provider?
a. empathy
b. assurance
c. tangibles
d. reliability
e. responsiveness
A
62
Research has shown that consumers evaluate service quality on five
components. When customers rate the people who supervise the dog activities as being "dog
people" and having an understanding of the needs of dogs and their owners, they are concerned
with the _____ component.
a. reliability
b. responsiveness
c. standardization
d. empathy
e. flexibility
D
63
The physical evidence of a service, including the physical facilities, tools, and equipment used to
provide the service represents which component of service quality?
a. reliability
b. responsiveness
c. assurance
d. empathy
e. tangibles
E
64
James recently went to a new health clinic because he had a sore throat that wouldn’t go away.
He was not familiar with this clinic and was a bit surprised when the doctor came in and was
wearing blue jeans, a flannel shirt, and tennis shoes. The doctor and nurse took proper care of
James, but it seemed strange to him that the doctor was dressed that way. Which component of
service quality does this illustrate?
a. reliability
b. responsiveness
c. assurance
d. empathy
e. tangibles
E. Tangibles are the physical evidence of the service
65
The gap model of service quality identifies five gaps that can cause problems in service delivery
and influence customer evaluations of service quality.
T
66
The model of service quality that identifies five gaps that can cause problems in service delivery
and influence customer evaluations of service quality is referred to as the _____ model.
a. gap
b. theory of reasoned action
c. attribution
d. dual-coding
e. Fishbein
A
67
Starbucks management has been trying to refocus on the things that made the company so
successful. For example, Starbucks across the U.S. recently shut down for a short period of time
for re-training, and the company has worked to make sure you can smell the fresh ground coffee
aroma when you enter the store. However, when questioned, consumers tend to focus on the need
for pricing incentives such as a frequent purchasing program. According to the _____, there may
be a gap between what customers want and what Starbucks management thinks customers want.
a. gap model of service quality
b. service pyramid
c. four dimensions of service quality
d. service paradigm
e. service delineation matrix
A
68
First Community Bank spent a considerable amount of money updating their lobby with plush
sofas, a big screen television, and a refreshment counter with popcorn and soft drinks. However,
very few customers spend time in the lobby. In fact, most customers want to be in and out of the
bank, with their financial transaction completed as quickly as possible. The gap model of service
quality would suggest that a gap exists between _____.
a. the service quality specifications and the
service that is actually provided
b. what the company provides and what the
customer is told it provides
c. the service customers receive and the service
they want
d. what customers want and what management
thinks customers want
e. what management thinks customers want and
the quality specifications management
develops to provide the service
D. Gap 1
69
To improve its friendliness the First National Bank hired Joy as a greeter. Joy’s job is to sit at a
desk near the front lobby and greets customers as they enter with a warm friendly smile along
with a “Good Morning” or “Good Afternoon.” Unfortunately, Joy is also required to answer the
bank’s main telephone line. Since she spends most of her day on the telephone, Joy rarely gets to
flash her smile or greet anyone as they enter the bank. In fact, Joy is on the phone so much that
she doesn’t really even seem friendly. This is an example of a gap between:
a. the service quality specifications and the
service that is actually provided
b. what the company provides and what the
customer is told it provides
c. the service customers receive and the service
they want
d. what customers want and what management
thinks customers want
e. what management thinks customers want and
the quality specifications management
develops to provide the service
A. Gap 3
70
Purchasing your clothes online can be fun, letting you shop from companies around the world
without leaving your home. You can also often get great prices on the items you purchase.
However, you could get stuck with a product that doesn’t look anywhere as nice in reality as it
does on your computer screen. Land’s End takes this concern away with their “Guaranteed
Period” promise. Land’s End will happily return your purchase price on any item you purchase
for any reason. If Land’s End ever failed to follow-through with this promise, it would represent a
gap between:
a. what management thinks customers want and
the quality specifications that management
develops to provide the service
b. what the company tells the customer it
provides and what is actually provided
c. service quality specifications and employee
training
d. what customers want and what management
thinks customers want
e. none of these
B. Gap 4
71
If a customer expects to wait one week for a pair of shoes to be mended but is told that the shoes
are ready to be picked up less than 24 hours after leaving them at the repair shop, the customer's
evaluation of service quality will be high. However, a two-week wait would result in a lower
evaluation. The two-week gap would illustrate a gap between:
a. service quality specifications and the service
that is actually provided
b. the service customers receive and the service
they want
c. what the company provides and what the
customer is told it provides
d. what customers want and what management
thinks customers want
e. what management thinks customers want and
the quality specifications management
develops to provide
B. Gap 5
72
If Great Bear Nature Tours rated and rewarded its tour guides based on
the number of bears seen by guests, the tour guides might be willing to accept more risk in
seeking out the bears than guests would really want. This could result in which service quality
gap?
a. A gap between what customers want and what
management thinks customers want.
b. A gap between what management thinks
customers want the quality specification that
management develops to provide the service.
c. A gap between the service quality
specifications and the service that is actually
provided.
d. A gap between what the company provides
and what the customer is told it provides.
e. A gap between the service the customer
receives and the service they want.
B. I think gap 2
73
What does "GAP 1" represent in service quality management?
a) The gap between service expectations and perceptions
b) The gap between what customers want and what management thinks customers want
c) The gap between service quality specifications and service delivery
d) The gap between customer satisfaction and customer loyalty
B
74
How can GAP 1 be addressed effectively?
a) By ignoring customer needs and expectations
b) By assuming what customers want without research
c) By keeping in touch with customer needs and satisfaction through research
d) By solely relying on management's assumptions about customer preferences
C
75
What is an important step in closing GAP 1?
a) Ignoring customer feedback
b) Assuming customer needs without research
c) Conducting research on customer needs and satisfaction
d) Relying solely on management's understanding of customer wants
C
76
Why is it essential for management to keep in touch with customer needs and satisfaction?
a) To widen the gap between customer expectations and perceptions
b) To ensure customer loyalty without understanding their needs
c) To effectively close GAP 1 and align services with customer expectations
d) To reduce customer satisfaction and loyalty
C
77
What does "GAP 2" represent in service quality management?
a) The gap between service expectations and perceptions
b) The gap between what management thinks customers want and the quality specifications
c) The gap between service quality specifications and service delivery
d) The gap between customer satisfaction and customer loyalty
What contributes to the existence of GAP 2?
B
78
What contributes to the existence of GAP 3?
a) Employees having the necessary skills and tools to perform their jobs
b) Management's accurate translation of customer needs into service quality specifications
c) Lack of training, inadequate tools, and poor teamwork among employees
d) Employees exceeding customer expectations consistently
C
78
How can GAP 2 be addressed effectively?
a) By neglecting management's role in developing service quality specifications
b) By assuming that management's understanding of customer needs is accurate
c) By concentrating on implementing service elements to better meet customers' needs
d) By solely relying on management's interpretation of customer requirements
C
78
What does "GAP 3" represent in service quality management?
a) The gap between service expectations and perceptions
b) The gap between service quality specification and the service actually provided
c) The gap between management's understanding of customer needs and service quality specifications
B
79
How can GAP 3 be addressed effectively?
a) By providing extensive training to customers
b) By assuming that employees naturally possess all necessary skills and tools
c) By ensuring that employees have the skills and proper tools to perform their jobs
d) By disregarding the importance of teamwork among employees
C
79
What is the primary cause of GAP 3?
a) Employees' lack of skills and tools
b) Management's accurate understanding of customer needs
c) Employees' excessive performance in service delivery
d) Service quality specifications being too lenient
A
80
What contributes to the existence of GAP 2?
a) Management's accurate understanding of customer needs
b) Management's inability to translate customer needs into service quality specifications
c) Customer satisfaction exceeding expectations
d) Service delivery being in line with quality specifications
B
81
What does "GAP 4" represent in service quality management?
a) The gap between service expectations and perceptions
b) The gap between what the company provides and what the customer is told it provides
c) The gap between service quality specifications and service delivery
d) The gap between customer satisfaction and customer loyalty
B
82
What contributes to the existence of GAP 4?
a) Miscommunication between customers and management
b) Dishonest communication about service offerings
c) Accurate communication about service offerings
d) Exceeding customer expectations consistently
A
83
How can GAP 4 be addressed effectively?
a) By providing inaccurate information to customers
b) By ensuring that communication about service offerings is honest and accurate
c) By disregarding customer expectations
d) By assuming that customers understand the services provided by the company
B
84
What is the primary cause of GAP 4?
a) Exceeding customer expectations
b) Dishonest or inaccurate communication about service offerings
c) Accurate communication about service offerings
d) Customers' inability to comprehend service offerings
B
85
What does "GAP 5" represent in service quality management?
a) The gap between service expectations and perceptions
b) The gap between the service that customers receive and the service they want
c) The gap between service quality specifications and service delivery
d) The gap between customer satisfaction and customer loyalty
B
86
How can GAP 5 be described?
a) It is always negative, indicating dissatisfaction
b) It can be positive or negative, reflecting either meeting or not meeting customer expectations
c) It is solely determined by management's interpretation of customer needs
d) It is the difference between service quality specifications and service delivery
B
87
What is the primary cause of GAP 5?
a) Exceeding customer expectations
b) Failing to meet customer expectations
c) Accurately meeting customer expectations
d) Customer satisfaction exceeding perceptions
B
88
How can providers address Gap 5 effectively?
a) By neglecting to educate customers about the services provided
b) By aligning customers' perceptions with reality through education about the services provided
c) By assuming that customers are always satisfied with the service provided
d) By ignoring customer preferences and expectations
B
89
A nonprofit organization is an organization that exists to achieve some goal other than the usual
business goals of profit, market share, or return on investment.
T
90
Terms such as fees, donations, tuition, fares, or rates are typically used instead of price for
nonprofit organizations.
T
91
Nonprofit organizations do not use all 4 Ps of marketing
F. Although nonprofit organizations have a different purpose than for-profit businesses and operate
in different environments, most perform marketing activities that involve the 4 Ps.
92
One marketing issue unique to nonprofit organizations is that these organizations must often
target those who are apathetic about or strongly opposed to receiving their services.
T
93
Nonprofit organizations may or may not require special facilities for distribution of their services
T
94
People for the Ethical Treatment of Animals (PETA) is the largest animal rights organization in
the world. PETA works for better treatment of animals instead of achieving profits, market share,
or return on investment. PETA is an example of a:
a. patronage-oriented organization
b. synergistic entity
c. company with no equity
d. service provider
e. nonprofit organization
E
95
The predominant form of nonprofit organization in the United States is:
a. farms
b. arts museums and programs
c. private-sector volunteer organizations
d. social service firms
e. government
E
96
All of the following are examples nonprofit organizations EXCEPT:
a. State Farm, an insurance company
b. American Heart Association
c. American Humane Society
d. Rotary Club, a service organization
e. Brotherhood of Electrical Workers, a union
A
97
_____ refers to the efforts of public and private nonprofit firms to bring about mutually satisfying
exchanges with their target markets.
a. Autonomous marketing
b. Public affairs marketing
c. Social targeting
d. Social marketing
e. Nonprofit organization marketing
E
98
Habitat for Humanity renovates vacant houses and sells them at no-interest mortgage rates to lowincome home buyers. The organization relies on volunteers to provide the labor and funding for
its renovations. Habitat for Humanity is best described as a(n):
a. image-oriented organization
b. for-profit organization
c. nonprofit organization
d. service branch
e. source-based organization
C
99
Nonprofit organizations face a unique challenge because the target market of the nonprofit
organization is often:
a. the community where it is located
b. the people who provide the funding
c. a paid administrator
d. the apathetic or strongly opposed individuals
e. the government
D
100
What is the primary goal of nonprofit organizations regarding revenue?
a) To maximize profits
b) To generate enough funds to cover expenses and sustain operations
c) To minimize revenue streams
d) To eliminate revenue streams entirely
B
101
Why can marketing a nonprofit be more challenging compared to for-profit organizations?
a) Due to the lack of clear objectives
b) Due to the absence of revenue streams
c) Due to the need to fulfill multiple objectives while maintaining revenue streams
d) Due to the abundance of government funding
C
102
What is a characteristic of nonprofit organizations regarding market segments?
a) They primarily serve affluent market segments
b) They avoid serving underserved market segments
c) They often serve underserved market segments
d) They solely focus on mainstream market segments
C
103
What is a key requirement for running a nonprofit organization effectively?
a) Eliminating revenue streams for operational sustainability
b) Implementing a vague business strategy
c) Executing a well-defined business strategy effectively
d) Reliance solely on government funding
C
104
What is a common revenue source for nonprofit organizations?
a) Maximizing profits from product sales
b) Collecting taxes from stakeholders
c) Generating revenue through fundraising and service fees
d) Receiving government grants exclusively
C
105
