Ch.12 - Services and Non-profiting Marketing

Celeste likes to frequent Logan's, a fine dining restaurant, as she loves the beef lasagna there and orders it every time she eats there. However, during her recent visit, the lasagna she was served was undercooked. 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 Logan's?

Heterogeneity

Fresco Airlines, an international airline company, offers a core service supported by supplementary services. Given this information, which of the following is most likely to be the core service provided by Fresco Airlines?

Providing plush seats with comfortable legroom for its passengers

Véronique volunteers at the BreadBasket, a local nonprofit foodbank. She finds it meaningful to help those who have lost their jobs during the pandemic and need to feed their families. Véronique knows that BreadBasket does not seek to make a profit; it only tries to cover its expenses. This example shows that nonprofit organizations ________.

Cannot measure their success or failure in strictly financial terms

A vehicle manufacturer makes base models using a large-scale production process. It also partners with small companies that help customize its vehicles, thus offering a wide range of packages involving a variety of chassis colors, upholstery designs, music systems, GPS devices, and passenger safety options. The company's approach to its service offering is an example of_______.

Mass customization

Ambient Management Inc. was experiencing a gap in the services it was providing. It closed the gap by ensuring that its customer-facing staff had the skills, training, and proper tools to perform their jobs. When compared with the gap model of service quality, the gap that the company addressed was between what ______.

The service quality specifications were and the service that was actually provided

Alto Deliveries, a courier service provider, built a strong reputation over a short period of six months. Inundated with customers, the company decided to expand its fleet of vans and enlarge its delivery networks and to stop offering the discounts it was offering to some market segments. Because it was the holiday sales season, higher pricing made good business sense. The pricing Alto Deliveries is using is_______.

Both revenue oriented and operations oriented

The Paris Hotel, a luxury hotel, encourages its employees to develop strong, personal relationships with guests. It offers customized toiletries to its customers based on their preferences. It also has an entire floor dedicated to suites that have air purification systems. These value-added services make the Paris Hotel unique as these services are not available at other hotels. In this scenario, the Paris Hotel is at the

______ level of relationship marketing.

Structural

An upmarket dressmaking company deliberately keeps its number of outlets very low even after years of climbing profits. There are no more than two in any major city of the United States. The policy may be justified in terms of the company's objective to______.

Be exclusive

Kayla is an accountant who donates her services to the Allegro Chorale, a nonprofit arts organization in Odessa, Texas. Kayla prepares monthly financial statements for Allegro for all of the following reasons EXCEPT_____.

Kayla can identify underserved marketing segments and recruit them to join the Allegro Chorale

Sally decided to buy her new car from Nissan because she was offered two years of free service as part of the sales package. This example shows that services offered by a manufacturer such as Nissan are _____.

An important factor in company success

Neda runs a stock market consultancy firm. The firm advises its clients on where to invest and how to earn maximum profits. Given this information, Neda provides______ through the consultancy

firm.

A service

The number of customers who dine at Osaka, a restaurant, varies on weekdays and weekends. On days when customer traffic is less, Osaka 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 Osaka's loss of revenue?

Perishability

Mathilde is an expert gardener. She provides services like designing and planting new gardens, maintaining gardens, and landscaping. In the context of service processes, the services provided by Mathilde come under the category of________.

Possession processing

In the business of running movie theaters, it was proposed that the tickets be priced significantly higher than usual for each of the opening weekends of the year's summer blockbusters. This kind of pricing is______.

Operations oriented, not patronage oriented

François, a travel consultant, treats his customers with respect and helps them with the vast knowledge that has earned him a good reputation. However, he is not as skilled in giving individual attention to customers or in anticipating and understanding their priorities. François scores_______.

High on assurance but low on empathy

Lones Travel provides a wide range of travel-related services. Which of the following can create a lasting image of its company in the minds of customers and potential users, even without them using Lones Travel's services?

Use attractive logos, stationary, and office space

Cascade Restaurant, a five-star restaurant, changes its centerpiece, such as candles and vases, every day. The waiters also creatively fold the napkins and place them on the tables at the end of each course. In this scenario, which of the following promotion strategies is adopted by Cascade Restaurant?

Stressing tangible cues

Which of the following is an example of heterogeneity of services?

The customer service agent who contacted me last week was more helpful than the one who contacted me today

Health Mart is a company that offers services related to health promotion and lifestyle. The company not only sends its clients reminders for their general checkup but also makes house visits for consultations, which are free if Health Mart products or services are bought. It also conducts free workshops for its clients to network and join clusters with similar profiles and regimes. Health Mart's offerings would fall in the______level of relationship marketing.

Social

A credit card company has a policy wherein the customer earns a point for every $20 spent on purchases made using the card. These points accumulate over a period of time and can be cashed in at the rate of $1 per point. The policy applies equally to all customers across the country and the company does not interact with individual customers. This is an example of the level of relationship marketing.

Financial