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Services and Nonprofit Organization Marketing 2
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Services and Nonprofit Organization Marketing 2
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25 Questions

1. Vera is designing a promotional strategy for a company that provides premium boarding services for pampered animals. Her promotions should use personal information sources and stress the tangible cues associated with the service.
2. Nonprofit organizations do not charge prices for the services they provide.
3. Nonprofit organization marketing accounts for over 20 percent of all the economic activity in the United States.
4. Responsiveness is the service quality component most valued by customers.
5. Many businesses have found that it is more expensive to hang on to the customers they have than to focus only on attracting new ones.
6. The core service is the most basic benefit the consumer is buying.
7. The gap model of service quality identifies five gaps that can cause problems in service delivery and influence customer evaluations of service quality.
8. 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.
9. Nonprofit organizations may or may not require special facilities for distribution of their services.
10. Heterogeneity of services means the quality of a service may not be consistent.
11. Nonprofit managers do not need to worry about developing marketing strategies.
12. Services are considered inseparable because most services cannot be felt or touched in the same way most goods can be sensed.
13. 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.
14. U.S. service firms such as financial institutions and construction, engineering, and insurance companies will have a difficult time expanding to global markets because competing foreign firms possess many competitive advantages.
15. Chesapeake Energy Corporation was recognized by Fortune Magazine as one of the top companies to work for. Fortune mentioned that Chesapeake Energy provides its employees many perks, including the opportunity to take free scuba-diving lessons in Chesapeake’s on-site Olympic-size pool. This example illustrates relationship marketing in action.
16. The only type of service processing required for a comedian entertaining at a local club is information processing.
17. Revenue-oriented pricing focuses on maximizing the surplus of income over costs.
18. Even though the growth of the service sector worldwide has been sluggish in the past decade, the service sector now accounts for approximately one-fourth of the gross domestic product in the United States.
19. The advertising budgets of most nonprofits are too small to pay for the running of PSAs (public service advertisements) to promote their programs, activities, or services.
20. Services tend to exhibit more search qualities than do tangible goods.
21. Karen has a gluten allergy, which means she is unable to eat certain foods. The chef at her favorite restaurant understands Karen’s situation and is always happy to modify his recipes for her when she dines there. The chef is providing assurance to Karen.
22. An Most service organizations market only one specific service.
23. Hotels will often 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.
24. 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.
25. A barber shop is an example of a service business.

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