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1. All of the following are services except:
a. This class.
b. A checking account.
c. A Broadway musical.
d. An oil change for a car.
e. A book.

2. The service sector of the U.S. economy is approximately:
a. The same size as the manufacturing sector.
b. One-and-one-half times the size of the manufacturing sector.
c. Three times as large as the manufacturing sector.
d. Twice the size of the manufacturing sector.
e. One-half the size of the manufacturing sector.

3. Services account for about __________ of the gross national product in the U.S.
a. One-tenth
b. One-quarter
c. One-half
d. Two-thirds
e. Nine-tenths

4. Service sector firms employ more than __________ out of every five private sector workers in the U.S.
a. 1
b. 2
c. 3
d. 4
e. 5

5. In terms of being in tune with customer demand and enhancing customer appeal, the marketing of services is __________ the marketing of products.
a. the same as
b. much easier than
c. much more difficult than
d. entirely different than
e. much more scientific than

6. The difference in approach and emphasis used to market services as opposed to tangible goods will be evident in the firm’s:
a. Product strategy.
b. Price strategy.
c. Promotion strategy.
d. Distribution strategy.
e. All of the above.

7., Orbitz, and Hotwire are all examples of:
a. Commercial travel agencies.
b. Airline ticket services.
c. Software companies.
d. Internet-based travel services.
e. Vacation planning firms.

8. Which of the following is not usually cited as a characteristic that distinguishes services from products?
a. Inseparability of services
b. Difficulty of standardization of services
c. Customer involvement in services
d. Perishability of services
e. Tangibility of services

9. It is the __________ of services that makes them more difficult to differentiate from each other than products.
a. high cost
b. uniformity
c. inseparability
d. intangibility
e. standardization

10. Which of the following is not an example of services that are tied directly to the providers of the service that is found in inseparability?
a. Filling in a tooth
b. Painting a house
c. Auto manufacturers
d. Completing an air flight
e. Giving marital advice

11. Services and their providers are tied __________ products and their producers.
a. as tightly as
b. more tightly than
c. somewhat less tightly than
d. much less tightly than
e. There is no general rule that can be applied here.

12. Generally services are:
a. More difficult to standardize than products.
b. Less difficult to standardize than products.
c. Equally difficult to standardize as products.
d. Highly standardized compared with products.
e. Incapable of being standardized.

13. Which of the following services would be the least difficult to standardize?
a. Legal advice
b. Psychiatric diagnosis
c. Architectural design
d. Automatic car wash
e. Medical care

14. Franchises that include franchisee direction in such areas as marketing strategy, training, merchandise management, and quality control are usually referred to as:
a. Product franchises.
b. Trademark franchises.
c. Business format franchises.
d. Quick franchises.
e. Exclusive franchises.

15. According to the textbook, the retrenchment of Hyatt Legal Services was caused by:
a. Fraud and corruption.
b. Too many branches.
c. A complex, confusing and cumbersome franchise contract.
d. A large scale organization attempting to handle non-routine legal services.
e. None of the above.

16. The involvement of customers in the production of services is usually:
a. Totally absent.
b. The same for product production.
c. Much less than their involvement in product production.
d. Greater than their involvement in product production.
e. Requires input from customers at the development stage.

17. Which of the following is not an example of customer involvement in services?
a. a couple delivering their income and expense records to a tax accountant
b. a client stipulating her investment goals to a stock broker
c. a customer requesting “no pickles” on his hamburger
d. a customer choosing the red rather than the black motorcycle helmet
e. a customer identifying flight times and days to an airline ticket agent

18. A concert is given for which 5,000 seats remain unsold. The impossibility of saving those seats for sale at another time is related to which characteristic of services?
a. Intangibility
b. Inseparability
c. Standardization
d. Perishability
e. Customer involvement

19. __________ means that services cannot be produced in advance or in anticipation of customer needs.
a. Inseparability
b. Intangibility
c. Standardization
d. Perishability
e. Involvement

20. The salvage value of unsold services is:
a. Equivalent to the salvage value of products.
b. Dependent upon the type of service.
c. Dependent upon the accounting practices of the firm.
d. Zero.
e. The cost of labor to deliver the service.

21. Service retailers, as opposed to tangible goods retailers, need to recognize all of the following except:
a. Profit after labor costs replaces gross margin as a key financial measure.
b. Personal selling often will be needed.
c. Exact prices can be quoted to customers.
d. Adjustment policies are needed since returns are not possible.
e. Supervisors must be able to assess the quality of service that is provided to customers.

22. All of the following are true for services as compared to goods except:
a. Little or no inventories are required to offer services.
b. Supervisions for services is more specialized.
c. Emphasis on quality is greater.
d. Service costs are more standardized; therefore, pricing is easier.
e. Value is more difficult for consumers to determine.

23. A hotel chain talks about its great attention to detail in its ads, and in each room, it includes a small sewing kit with extra shirt and blouse buttons. In this case, the hotel chain is an example of:
a. Charge more for its services.
b. Tangibility of services
c. Get customers involved in providing services.
d. Separate out particular services.
e. Entice new customers to make reservations.

24. At the point of contact with the service provider, the customer perceives the service and the channel as being:
a. Separated by space and time.
b. Highly perishable.
c. Highly personalized.
d. Intangible.
e. The same thing.

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