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Marketing Chapter 11
Test Questions
25
Marketing
12th Grade
02/14/2011

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Term
service
Definition
A _______ is an activity that is intangible, exchanged directly from producer to consumer, and consumed at the time of production.
Term
Discretionary income
Definition
____________________ is the amount if income left after paying basic living expenses and taxes.
Term
Intangible
Definition
___________ means that the service cannot be touched, seen tasted, heard, or felt.
Term
Inseparable
Definition
____________ means that the service is produced and consumed at the same time.
Term
Perishable
Definition
__________ means that services unused in one time period cannot be stored for use in the future.
Term
Heterogeneous
Definition
______________ means there are differences between services.
Term
Labor intensiveness
Definition
________________ refers to the amount of human effort required to deliver a service.
Term
Service quality
Definition
________________ is defined as the degree to which the service meets customers’ needs and expectations.
Term
Endorsement
Definition
____________ is an advertisement in which a satisfied user publicly expresses approval of a product or service.
Term
Bundling
Definition
____________ is the practice of combining several related services for one price.
Term
Prosperity
Definition
The increased prosperity of our economy is one reason for the growth in the U.S. service sector.
Term
Four reasons for the growth of service industries
Definition
  • Prosperity
  • Automation
  • Complexity
  • Foreign Competition
Term
Automation
Definition
Companies use fewer people to produce their goods because of the increasing use of technology.
Term
Complexity
Definition
Many high-technology products require complex installation, repair, and training.
Term
Foreign Competition
Definition
The expansion of international trade. Businesses can produce goods and services more efficiently than other countries.
Term
Four unique qualities of services
Definition
  • Intangible
  • Inseparable
  • Perishable
  • Heterogeneous
Term
Intangible service quality
Definition
Intangible means that the service cannot be touched, seen tasted, heard, or felt. Examples of intangible services include haircuts, vision examinations, and vacation planning.
Term
Inseparable service quality
Definition
Inseparable means that the service is produced and consumed at the same time. Services such as a college class, a facial, or a car repair are produced and consumed simultaneously.
Term
Perishable service quality
Definition
Perishable means that services unused in one time period cannot be stored for use in the future. An example of this is a lawn care service cannot be bought more than once at a time.
Term
Heterogeneous service quality
Definition
Heterogeneous means there are differences between services. Since people differ in their skill level or even their enthusiasm for a job, the service is often not consistent.
Term
Service Quality Classifications
Definition
  • Type of Market
  • Goals of the Organization
  • Labor intenseness
  • Level of skill
  • Customer contact
Term
Type of Market
Definition
  • Business consumers
  • Individual consumers
Term
Goals of the Organization
Definition
Profit-making and nonprofit organizations are examples of goals of organizations.
Term
Customer contact
Definition
The amount of customer contact a service provider has in another way to classify services. Barbers, doctors, schools, hotels, and restaurants have high customer contact.
Term
Level of skill
Definition
The most common way to categorize based on skill levels is to divide the providers into professional and nonprofessional groups. Professionals include providers whose services tend to be more complex and more highly regulated than nonprofessional services.
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