1.

There are several reasons why the services sector is increasing in almost all
countries around the world. Which is not one of the contributing reasons?
The construction and manufacturing industries are booming
2. A useful way to distinguish between goods and services is to place them on a
continuum from _to_
b. tangible-dominant; intangible-dominant
3. Customers being turned down or having to wait is an implication of which
aspect of services?
d.Most services cannot be inventoried.
4. If the customer has direct contact with service employees, then people
a. may be turned away from the service provider
b. perceive greater risk and uncertainty
c. tend to be part of the service experience
d. may not be able to see or hear the services provided
5. Other customers typically do not impact the satisfaction of other consumers in
service settings. F
6. Information technology and communications is one of the most important
forces transforming today's service markets.
7. Tangible characteristics that customers can evaluate prior to purchase are termed
a. search attributes
8. During the post-purchase stage, consumers may make satisfaction judgments
that _ their experience.
b. positively disconfirm, confirm, negatively disconfirm
9. SERVQUAL is a survey instrument to measure
a. service quality
10. Everything else being equal, when customers are risk-averse, they will choose
the service with the lowest risk perception. T
11. Which of the following is NOT one of the four basic focus strategies?
d. Refocused

12_ is one that a firm has selected from among those in the broader market and
may be defined on the basis of several variables.
c. target segment
13. The same individuals may set different priorities for attributes according to all
EXCEPT which of the following?
b. The cost of the service.
14. A service-focused firm offers a narrow range of services to a fairly broad
market. T
15. The objective of corporate analysis is to identify the organization's resources,
any limitations or constraints, its goals, and how it values shape the way it does
business. T
16. No service attribute can be easily quantified because of the intangibility of
services. F
18._supply the central, problem-solving benefit that customers seek.
a. Core products
19.At its simplest ,__ consists of immediate advice from a knowledgeable service
person in response to the request: "What do you suggest?"
c. consultation
20. Achieving success in new service development requires
a. market synergy.
b. strong inter-functional cooperation and coordination.
c. detailed and properly designed market research studies.
d. all of the above listed choices.
21. Which of the following does NOT come under corporate brand architecture?
a. Branded house
b. Sub-brands
c. Endorsed brands
d. Restored brands
22. DHL offers customers the opportunity to track the movements of their
packages, which have been assigned a unique identification number . This is an
example of
c. information
23. Information processing services tend to be the most demanding in terms of
supplementary elements. F
24__ is a key driver of channel choice.
b. Convenience
25. All of the factors below are luring customers into virtual stores EXCEPT
d. opportunities for networking
26. Franchisors usually seek to exercise control over all aspects of the service
performance through tightly defined
a. service standards
b. procedures
c. scripts
d. physical presentations
e. all of the above
27. When there is a high degree of customer interaction required, the most suitable
way to enter international markets is through
c. foreign direct investment
28. Which of the following are industry drivers in services?
a. Market
b. Technology
c. Competition
d. All of the above
29. Physical logistics services now find themselves competing with
telecommunications services. This is a result of the instantaneous delivery
capability of information-based products. T
30. All customers will eventually voluntarily shift from high-contact delivery
environments to new electronic channels. F
31__refers to the practice of price discrimination.
a. Critical ratio pricing
b. Dynamic pricing
c. Collective pricing
d. Fixed pricing
32. Which of the following is NOT an objective for service pricing?
a. Build supply

33.Fatigue and discomfort from waiting in queue is related to

a. physical costs
b. psychological costs
c. time costs
d. sensory costs

34. Which of the following intensifies price competition?

. b. Wider distribution of competitor and/or substitution offers.
35. Which of the following reduces price competition?
d. High switching costs for consumers
36. Price elasticity is computed as
a. percentage change in demand/percentage change in price
37. Psychological costs relate to unpleasant sensations affecting any of the five
senses. F
38. Firms do not need to consider post-purchase costs, as they occur after the firm
has already secured a purchase. F
39. Firms that are always reacting to competitors' price changes run the risk of
pricing higher than might really be necessary. F
40. Pay-what-you-want pricing works best when the marginal costs are low as a
firm can then tolerate more freeloading customers.
41. In the case of hotel industry, revenue management means selling the right room
to the right customer at the right time at the right price.
42. Which of the following is NOT related to Prepurchase Stage of Service
Consumption?
a. Review supplier information
b. Explore solutions
c. Make purchase decision
43. One approach recommended by advertising experts to train customers is to
c. show service delivery in action
44. Some years ago, a hotel chain devised which one of the following sales
promotions targeted at older consumers?
a. First to provide senior citizen discounts.
b. Provided a discount percentage equivalent to their age.
c. A free hotel room if large family gatherings were held at the hotel.
d. Discount for large family gatherings.
45. Advertisements based on advertisements.
a. visualization; text-only
b. expert; power-
c. utilitarian; text-only
d. visualization; expert
46. Which of the following is NOT a common educational and promotional
objective in service settings?
d. Encourage trial of competing products.
47. Which of the following is NOT
d. Reducing service demand through electronic tracking.
48. Publicizing price discounts is one way to encourage self-service on an ongoing
basis. T
49. Sales promotion includes sampling, coupon services, sign-up rebates, gifts,
prize promotions, and special events F
50. Mobile communication is an example of traditional media.
 CHAPTER 1+2:
1.Service markets are shaped by all of the following except ____________.
c. global economic change

2. The following are all business trends transforming service markets except
c. new agreements on trade in services

3.The three broad categories of things processed in services are ____________,

____________, and ____________.
a. people; physical objects; data
b. people; organizations; documents
c. people; data; projects
d. physical objects; data; documents
e. physical objects; organizations

4. The two considerations used to categorize service are ____________ and

a. promotion versus place; price versus product
b. place versus time; people versus ideas
c. place versus people; time versus money
d. people versus possession; tangible versus intangible
e. people versus intangible; tangible versus possession

5. Which of the following is an example of co-production?

a. Withdrawing from an ATM.
b. Eating fast food.
c. Touring an aquarium.
d. Buying a stereo.
e. Selling items on eBay.
6. Customers being turned away or having to wait is an implication of which aspect
of services?
a. People may be a part of the service experience.
b. Intangible elements usually dominate value creation.
c. Services are often difficult to visualize and understand.
d. Customers may be involved in co-production.
e. Most services cannot be inventoried.

7. The three additional Ps of services marketing that extend the original four Ps of
marketing are _____________, _____________, and _____________.
a. product; price; place; promotion
b. prospects; process; people; promotion
c. physical environment; process; people
d. prosperity; process; people; promotion
e. physical environment; prosperity; planning; process
8. The service framework for developing effective service strategies excludes
a. understanding service products, consumers and markets
b. managing the competitive landscape
c. applying the 4 Ps to services
d. managing the customer interface
e. implementing profitable service strategies
9. A movie theater seat is an example of _____________.
a. renting durable goods
b. closely engaging customers in the service process
c. renting portions of a larger physical entity
d. the centrality of time to services
e. differences in customer choice criteria
10. Education is an example of a/an _____________ service.
a. people-processing
b. information processing
c. mental stimulus processing
d. possession-processing
e. physical processing
11. Service firms have reservations systems because.
a. intangible elements usually dominate value creation.
b. most service products cannot e inventoried.
c. distribution may take place through non-physical channels
d. customers may be involved in co-production
e. all of the above
12. Which of the following is the best example of a supplementary service?
a. Appliance maintenance
b. Hotel room rental
c. Fast food consumption
d. House cleaning
e. Landscaping
13. Online educational programs offered by the University of Phoenix are an
example of _____________.
a. revolutionary products/services
b. collective products/services
c. additional services
d. supplementary services
e. core products/services

14.The three stages in the consumer decision making process are ____________,
____________, and ____________.
a. pre-awareness stage, pre-purchase, purchase stage
b. pre-purchase stage, awareness stage, post-purchase stage
c. service encounter stage, pre-purchase stage, post-purchase stage
d. pre-purchase stage, awareness stage, purchase stage
e. pre-purchase stage, service encounter stage, post-purchase stage

15. The key concepts in the pre-purchase stage include all the following except
a. servuction system
b. evoked set
c. perceived risk
d. zone of tolerance
e. credence attributes

16. The prepurchase stage begins with ____________.

a. perceived risk
b. formation of expectations
c. moments of truth
d. evoked set
e. need arousal
17. Characteristics that customers find hard to evaluate even after consumption are
termed ____________.
a. search attributes
b. experience attributes
c. credence attributes
d. satisfaction attributes
e. capital attributes
18. Which of the following is NOT a type of perceived risk in purchasing and
using services?
a. Functional
b. Permanent
c. Financial
d. Physical
e. Social
19. Consumer preferences for involvement in the service process may reflect which
of the following factors?
a. Variability in price structures.
b. Willingness to travel to a service facility.
c. Desire to be served by employee's face-to-face.
d. A and C only.
e. B and C only.

20. The service operations system does not include ____________.

a. physical facilities
b. equipment
c. other customers
d. technical core
e. personnel
21. In the theater metaphor, the elements include all but the following
a. positions
b. roles
c. scripts
d. service facilities
e. personnel
22. To develop effective marketing strategies, marketers must understand how
people make decisions about buying and using service, what the experience of
service delivery and consumption is like for customers, and ____________.
a. how they evaluate competitors
b. how they evaluate the experience
c. how often they utilize competitors
d. how often they complain to the service firm
e. the length of their relationship with the service firm

22 An example of a service high in credence attribute is _____________.

a. Extreme sports
b. vacation
c. spa
d. musical performance
e. surgery
23.XL Capital portrays its logo as a giant obelisk between cliffs and a lighthouse to

a. build trust with its clientele and generate a moment of truth.

b. demonstrate its size and fundamental strength in protecting companies from risk.
c. provide detailed information about its financial solubility.
d. provide a visual example of its prowess to enhance experiential attributes.
e. act as an advertisement that highlights important aspects of the company.
24. For customers of credit card companies, which of the following statements are
true?
a. When they make calls to the call center, these are usually the few moments of
truth.
b. There is very little of the theater performance.
c. They usually experience high-contact with the service personnel.
d. Only A and B.
e. All of the above.
25. Dental customers ____________ to avoid delays and ensure effective use of
dental professionals' time.
a. sit quietly in the waiting room
b. commit positive word-of-mouth
c. confirm and honor appointments
d. should get to know hygienists
e. provide accurate histories

CHAPTER 3:
1.Brand positioning can do all of the following except ____________.
a. generate interest in a service
b. create awareness for a service
c. meet customers' needs for a service
d. differentiate a service
e. increase adoption of a service
2.Which of the following is NOT one of the four basic focus strategies?
a. Service focused
b. Unfocused
c. Fully focused
d. Refocused
e. Market focused
3.A ____________ is composed of a group of buyers who share common
characteristics, needs, purchasing behavior, or consumption patterns.
a. target class
b. Class
c. focal segment
d. market segment
e. target segment
4.A(n) ____________ is one that a firm has selected from among those in the
broader market and may be defined on the basis of several variables.
a. general segment
b. segmentation field
c. target segment
d. holistic segment
e. mass customization
5.Which of the following is the best example of a determinant characteristic for
airline travel?
a. Oxygen masks
b. Plane size
c. Quality of food and drinks
d. Having cocktail service
e. Floatation devices
6.____________, refers to an explicit form of positioning strategy that is based
upon offering several price-based classes of service concept, each based on
packaging a distinct level of service performance across many attributes.
a. Service tiering
b. Service conscription
c. Broad-basing
d. Price-setting
e. Matching
7.Market analysis addresses all of the following factors EXCEPT ____________.
a. overall level of demand
b. trend of demand
c. government regulations
d. geographic location of demand
e. market analysis addresses all of the above factors
8.Competitive analysis addresses all of the following factors EXCEPT
____________.
a. examines competitors' strengths
b. identifies competitors' future positioning
c. examines competitors' current positioning
d. examines competitors' weaknesses
e. suggest opportunities for differentiation
9.Which of the following is most likely the determinant attribute for customers of
bus service.
a. number of bus
b. Reach
c. bus times
d. online booking of services
e. Staff attitude
10.A company that offers a wide range of services to a narrowly defined target
segment is using ____________ strategy
a. Market focus
b. Fully focus
c. Service focus
d. Customer focus
e. Unfocus
11.Mc Donald serves a broad customer base with a largely standardized product.
Which of the followings best describe their strategy?
a. Market focus
b. Fully focus
c. Service focus
d. Customer focus
e. Unfocus
12.Disney creates fantasy for children all over the world with their TV Channel,
Retail store, Theme Park, etc... Which of the followings best describe their
strategy?
a. Market focus
b. Fully focus
c. Service focus
d. Customer focus
e. Unfocus
13_____________strategy often looks attractive because firm can sell multiple
services to a single buyer.
a. Market focus
b. Fully focus
c. Service focus
d. Customer focus
e. Unfocus
14_____________strategy often allows companies to charge premium price
because of their expertise in the market
a. Market focus
b. Fully focus
c. Service focus
d. Customer focus
e. Unfocus
15.Companies that use ____________strategy might be in danger of being "Jacks
of all trades and masters of none".
a. Market focus
b. Fully focus
c. Service focus
d. Customer focus
e. Unfocus
16.Which one of the following is NOT a basic elements to write a good positioning
statement:
a. Target Audience
b. Range of Price
c. Frame of Reference
d. Point of Different
e. Reason to Believe

17.A customer-driven services marketing strategy includes all of the following

except ____________.
handling customer complaint
18.Market analysis addresses all of the following factors EXCEPT ____________.
government regulations
19.Competitive analysis addresses all of the following factors EXCEPT
identifies competitors' future positioning
20.A ____________ is composed of a group of buyers who share common
characteristics, needs, purchasing behavior, or consumption patterns.
market segment
21.A(n) ____________ is one that a firm has selected from among those in the
broader market and may be defined on the basis of several variables.
target segment
22.The same individuals may set different priorities for attributes according to all
EXCEPT which of the following?
The cost of the service.
23.____________, refers to an explicit form of positioning strategy that is based
upon offering several price-based classes of service concept, each based on
packaging a distinct level of service performance across many attributes.
Service tiering
24.Which of the following is the best example of a determinant characteristic for
airline travel?
Quality of food and drinks
25.Which of the following is NOT one of the four basic focus strategies?
Refocused
26.Which of the following is NOT one of the four principles of writing a good
positioning statement?
Competitive advantage
27.Bright Horizons strategy included which of the following?
Marketing services to employers instead of parents
28.Segmentation variables at Contiki Holidays include all of the following
EXCEPT ____________.
household size
29.Capsule hotels originated from _____________.
Japan
30.Which of the following is most likely the determinant attribute for customers of
private air charter services?
Price
31.Grant Thornton, the fifth largest firm in the accounting industry, has
successfully positioned itself as offering ____________ and having
____________.
easy access to partners; "a passion for the business of accounting"
32.The objective of internal corporate analysis is to identify the organization’s
resources, any limitations or constraints, its goals, and how it values shape the way
it does business
True
33.The best way to anticipate possible competitive responses is to identify all
current or potential competitors and to put oneself in their own management's
shoes by conducting an internal corporate analysis for each of these competitors
True
34.A target segment should only be selected on the basis of their sales and profit
potential.
False
35.No service attribute can be easily quantified because of the intangibility of
services.
False
36.It is usually a good idea for firms to try to appeal to all potential buyers in a
market, because customer variety leads to full capacity
False
37.Market niches that seem too narrow to offer sufficient sales in one country are
indicative of globally narrow market niches.
False
38.A fully-focused organization concentrates on a narrow market segment, but has
a wide range of services.
False
39.One of the reasons why firms with a narrow product line elect to serve multiple
segments is to create a portfolio of customers that hedge against low demand risks
True
40.A service-focused firm offers a narrow range of services to a fairly broad
market
True
41.Positioning plays a pivotal role in marketing strategy, because it links market
analysis and competitive analysis to environmental analysis.
False
42.Banco Azteca is serving a niche market of customers.
True
43.Yotel and Qbic are capsule hotel chains.
True
44.Rentokil started off as a firm that manufactured rat poison and a pesticide for
killing leeches.
False
45.Visa’s positioning is about having one card fits all.
False
46.Bright Horizons used low-cost strategies to achieve their competitive advantage
False

CHAPTER 4:
1. ____________ facilitate use of the core product and add value and
differentiation to the customer's overall experience.
a. Fixed services
b. Value-added provisions
c. Marketing theories
d. Supplementary services
e. Service providers
D
2. ____________ supply the central, problem-solving benefit that customers seek.
a. Core products
b. Supplementary services
c. Delivery processes
d. Sustaining processes
e. Conditional services
A
3. ____________ augment the core product, both facilitating its use and enhancing
its value and appeal.
a. Core products
b. Supplementary services
c. Delivery processes
d. Sustaining processes
e. Conditional services
B
4. A company's ____________ helps to determine which supplementary services
should be included.
a. location
b. delivery system
c. key service representative
d. service atmosphere
e. market positioning strategy
E
5. The order-taking process should be ____________, ____________, and
____________ so that customers do not waste time and endure unnecessary mental
physical effort.
a. short; curt; abrupt
b. simple; slow; effortful
c. short; sweet; ineffective
d. powerful; simple; abrupt
e. polite; fast; accurate
e
6. ____________ represent a special type of order taking that entitles customers to
a specific unit of service.
a. Suggestions
b. Reservations
c. Trackers
d. Repossessions
e. Contracts
B
7. At its simplest, ____________ consists of immediate advice from a
knowledgeable service person in response to the request: "What do you suggest?"
a. billing
b. payment
c. consultation
d. hospitality
e. selling
C
8. Which of the following is NOT considered an example of a hospitality element?
a. Greeting
b. Toilets and washrooms
c. Advice
d. Food and beverages
e. Transport
C
9. Which of the following is NOT one of the eight basic steps to developing and
delivering a branded customer experience?
a. Target profitable customers, employing behavior segmentation rather than
demographics.
b. Achieve a superior understanding of what your targeted customers value.
c. Design facilities that delight your customers and reduce complaints.
d. Give employees the skills, tools, and supporting processes needed to deliver the
defined customer experience.
e. Make everyone a brand manager.
C
10. Which of the following is NOT one of the seven categories of new services?
a. Target profitable customers, employing behavior segmentation rather than
demographics.
b. Achieve a superior understanding of what your targeted customers value.
c. Design facilities that delight your customers and reduce complaints.
d. Give employees the skills, tools, and supporting processes needed to deliver the
defined customer experience.
e. Make everyone a brand manager
C
11. Information processing services tend to be the most demanding in terms of
supplementary elements.
F
12. The search for competitive advantage rarely centers on supplementary services.
F
13. The delivery process surrounding the core product of an overnight hotel stay
includes scheduling, nature of process, customer role and service level.
T
14. Service marketers need to create a coherent offering in which each element is
compatible with the others and all are mutually reinforcing.
T
15. Core products are surrounded by supplementary elements from each of the
eight clusters of supplementary services.
F
16. To obtain full value from any good or service, customers need relevant
information.
T
17. Hospitality represents a more subtle approach to consultation because it
involves helping customers better understand their situations.
F
18. "Exceptions" involve supplementary services that fall outside the routine of
normal service delivery.
T
19. Branding can only be used at the company level for service businesses.
F
20. Supplementary service innovations are the most common type of innovation.
F
21.Brand meaning has a stronger impact on brand equity than brand awareness.
True

28. DHL offers customers the opportunity to track the movements of their
packages, which have been assigned a unique identification number. This is an
example of ____________.
a. order-taking
b. safekeeping
c. information
d. consultation
e. exceptions
C
29. Customers who visit Giordano outlets are greeted with a cheerful "Hello" and
"Thank you" when they enter and leave the store. That is an example of
____________ .
a. consultation
b. hospitality
c. exceptions
d. courtesy
e. safekeeping
B
30. Which of the following is an example of a special request in advance of service
delivery?
a. Dietary requirements
b. Complaints
c. Warranties
d. Refunds
e. Suggestions
A
31. Singapore Airlines Raffles Class is an example of a(n) ____________.
a. branded house
b. endorsed brand
c. house of brands
d. sub-brand
e. clear strategy
D
32. Which of the following is NOT one of British Airways seven distinct air travel
products?
a. Deluxe service (First Class)
b. Club World (Business Class)
c. Club Britain (Business Class)
d. Club Europe (Business Class)
e. Euro-Traveler (Economy Class)
C
33. For self-service payment, customers may make payment by inserting coins,
banknotes, tokens or cards into machines.
T
33. Giordano is well recognized for both their superior meals and attentive cabin
crew. TRUE

34. Singapore Airlines is well recognized for both their superior meals and
attentive cabin crew.
T
35. The difference between a product and a service is that a product is a bundle of
output while a service is a bundle of supplementary services.
F
36. The term "branded house" is used to describe firms like Virgin Group, that uses
distinct individual brand names to cover a range of diverse service offerings in
unrelated fields.
F
37. Westin hotels are wholly owned subsidiaries of Marriott Group that are usually
not identified as part of Marriott to protect Westin's exclusive image.
F
37. Crown Plaza hotels are part of the Intercontinental Hotel Group (IHG) but are
usually not identified as part of IHG to protect IHG's exclusive image.
FALSE
38.____________ is not a facilitating service.
a. Information
b. Order taking
c. Marketing theories
d. Billing
e. Payment
39. A company's ____________ helps to determine which supplementary services
should be included.
a. location
b. delivery system
c. key service representative
d. service atmosphere
e. market positioning strategy

40. Which of the following is NOT one of the ways to build strong brands?
a. Dare to be different from competitors.
b. Determining their fame by creating unique a competitive advantage.
c. Building a parent brand.
d. Fostering an emotional connection with the customers.
e. Having the service employees internalize the brand

41. Which of the following is NOT one of Sun Microsystem's hardware and
software support level?
a. Gold.
b. Platinum.
c. Aluminium.
d. Bronze.
e. Silver.

CHAPTER 5:
1. When customers visit the service site, which factor/(s) must be considered in the
design of the service?
a. How expensive the service is.
b. Convenience of the location.
c. Operational hours.
d. A & B only.
e. B & C only.
E
2. _______________ is a key driver of channel choice.
a. Risk reduction
b. Convenience
c. Colorful photos of the product
d. Internet access
e. Lower prices
B
3. A truck stop is a good example of a ____________.
a. centralized control center
b. single-source facility
c. k-minus strategy
d. multi-purpose facility
e. cash cow
D
4. Which of the following is NOT one of the factors that encourage extended
operating hours?
a. Availability of employees to work during "social" hours.
b. Economic pressure from consumers.
c. Changes in laws.
d. Economic incentives to improve the use of assets.
e. Automated self-service facilities.
A
5. The four interesting innovations for service delivery arising from the Internet are
all of the following EXCEPT _____________.
a. creation of websites as a delivery channel for information-based services
b. DVDs that can store huge amounts of information
c. development of "smart" mobile phones linking users to the Internet wherever
they are
d. usage of voice recognition technology that allows customers to give information
and request service by speaking into a microphone
e. smart card containing a microchip acting as an electronic purse containing
digital money
B
6. All of the factors below are luring customers into virtual stores EXCEPT
____________.
a. potential for better prices
b. ease of search
c. broader selection
d. opportunities for networking
e. 24-hour service with prompt delivery
D
7. Integrating mobile devices into the service delivery infrastructure can be used as
a means to ____________ services, ____________ customers to opportunities or
problems, and ____________ information in real time to ensure that it is
continuously accurate and relevant.
a. Access; alert; update
b. Complement; alert; conceal
c. Access; attract; conceal
d. Access; guide; conceal
e. Complement; guide; conceal
A
8. ____________ has become a popular way to expand delivery of an effective
service concept, embracing all of the seven Ps, to multiple sites, without the level
of investment capital that would be needed for rapid expansion of company-owned
and managed sites.
a. The Internet
b. International trade
c. Franchising
d. Sole proprietorship
e. Limited partnership
C
9. Franchisors usually seek to exercise control over all aspects of the service
performance through tightly defined ____________.
a. service standards
b. procedures
c. scripts
d. physical presentations
e. all of the above
E
10. A local presence may be necessary when exporting information-based services
for which of the following reasons?
a. Appeasing local citizens.
b. Conducting secondary research.
c. Building personal relationships.
d. Bargaining for cheaper facilities.
e. Restructuring out of date systems.
C
11. Service delivery is shifting to arm's length transactions for many services due
to advances in telecommunications.
T
12. The convenience of service factory locations and operational schedules
assumes great importance when a customer has to physically present throughout
the service delivery or even just to initiate and terminate the transaction.
F
13. In general, service providers are more likely to visit corporate customers at
their premises than to visit individuals in their homes.
T
14. Physical logistics services now find themselves competing with
telecommunications services. This is a result of the instantaneous delivery
capability of information-based products.
T
15. All customers will eventually voluntarily shift from high-contact delivery
environments to new electronic channels.
F
16. The need for economies of scale often restricts choice of location for service
facilities.
T
17. A ministore is a single-site service business that involves creating an
innovative service factory.
F
18. Franchising is not an appealing strategy for growth-oriented service firms
because franchisees tend to be less motivated and less concerned about quality than
managers in company-owned stores.
F
19. An ongoing problem of franchising is that when franchisees gain experience,
they may start to feel that they should not be paying the various fees to the
franchisor.
T
20. People, possession, and information-based services have strikingly similar
requirements on an international distribution strategy.
F
28. ______________ is an example of a service where the main mode of delivery
is for the service provider to go to their customers.
a. Banyan Tree Resorts
b. Barnes and Nobles
c. Royal Flying Doctor
d. Starbuck
e. Dunkin' Donuts
C
29. Elaborate statistical analysis, in the form of ____________, is sometimes used
to aid decisions on where to locate supermarkets and similar large stores relative to
prospective customers' homes and workplaces.
a. binary regression
b. cluster analysis
c. structural equation models
d. gravity models
e. predictive models
D
30. Which one of the following methods is NOT a banking service that can be
delivered
remotely?
a. Face-to-face.
b. Internet.
c. Mobile phone.
d. Call centers.
e. All of the above are bank service delivery methods.
A
31. Firms like Dunkin' Donuts and Subway sharing space with quick service
restaurants is an example of a(n) ____________.
a. single source market
b. economy of scale
c. ministore
d. economy of scope
e. multi-brand strategy
C
32. Which of the following is an example of a franchised service firm?
a. Saks
b. Wal-Mart
c. Barnes & Noble
d. Starbucks
e. Pier One Imports
A
33. Shanghai's Maglev train helps to overcome the locational constraint of having
the airport sited in a far away place.
T
34. Taco-Bell's K-Minus strategy is an example of an innovation in locating in
multi-purpose facilities.
F
35. First Direct is an example of a bank with too many branches.
F
36. First Direct describes itself as the largest virtual bank in the world.
T
37. Yellow pages has come up with a global positioning service so that customers
can click and download information to help them get from one place to another.
F
38.The interesting innovations for service delivery arising from the Internet are all
of the following EXCEPT _____________.
DVDs that can store huge amounts of information
39.All of the factors below are luring customers into virtual stores EXCEPT
opportunities for networking
40.Integrating mobile devices into the service delivery infrastructure can be used
as a means to ____________ services, ____________ customers to opportunities
or problems, and ____________ information in real time to ensure that it is
continuously accurate and relevant.
Access; alert; update
41. When there is a high degree of customer interaction required, the most suitable
way to enter international markets is through __________.
foreign direct investment
42.______________ is an example of a service where the main mode of delivery is
for the service provider to go to their customers.
Royal Flying Doctor
43.Aggreko has experience in all the following kinds of situation except
clearing out the debris after a fire in a resident's home
44.Which one of the following methods is NOT a banking service that can be
delivered remotely?
Face-to-face.
45.Firms like Dunkin’ Donuts and Subway sharing space with quick service
restaurants is an example of a(n) ____________.
ministore
46.Which of the following is an example of a franchised service firm?
Subway

CHAPTER 6:
1. Which of the following is NOT an objective for service pricing?
A. Build supply.
B. Build demand.
C. Seek profit.
D. Cover costs.
E. Build a user base.
a
2. ____________ recognizes that resource expenses are linked to the variety and
complexity of goods and services produced and not just on physical volume.
A. Break-even analysis
B. Variable cost
C. Fixed cost
D. Activity-based costing
E. Semi-fixed cost
d
3. ____________ is defined as the sum of all the perceived benefits minus the sum
of all the perceived costs of service.
A. Net value
B. Consumer surplus
C. Gross value
D. Moderate value
E. Consumer demand
a
4. ____________, also known as customized or personalized pricing, refers to the
practice of price discrimination.
A. Critical ratio pricing
B. Dynamic pricing
C. Collective pricing
D. Fixed pricing
E. Classical pricing
b
5. Which of the following intensifies price competition?
A. Non-price-related costs of using competing alternatives are high.
B. Wider distribution of competitor and or substitution offers.
C. Personal relationships have been established.
D. Switching costs are high.
E. Customer need for time and location specificity.
b
6. Which of the following reduces price competition?
A. Increasing the number of competitors.
B. Increasing the number of substituting offers.
C. Wider distribution of competitor and/or substitution offers.
D. High switching costs for consumers.
E. Increasing surplus capacity in the industry.
d
7. Revenue management is the most effective when applied to firms characterized
by all the following conditions EXCEPT ______________.
a. perishable inventory
b. relatively fixed capacity
c. varying customer price sensitivity
d. fixed inventory
e. variable demand
d
8. Price elasticity is computed as ____________.
a. percentage change in demand / percentage change in price
b. percentage change in price / percentage change in demand
c. percentage change in supply / percentage change in price
d. percentage change in demand / percentage change in supply
e. percentage change in price / percentage change in supply
a
9. Which of the following is NOT an example of a non-physical fence?
A. Time or duration of use.
B. Group membership.
C. Service level.
D. Flexibility of ticket usage.
E. Location of reservation.
c
10. Putting service pricing into practice includes thinking of all the following
questions EXCEPT ____________.
A. What should be the specified basis for pricing?
B. How much to charge?
C. What kind of customers should be charged more?
D. Who should collect payment?
E. When should payment be made?
c
Pricing is less complex in services than it is in manufacturing.
F
Customers will often pay more for services than they think they are worth.
F
Because quality is subjective, all customers have the expertise to assess the quality
and value they receive.
F
Business owners often fail to recognize the fixed costs that need to be recouped
when providing service.
F
Customers often incur significant financial costs in searching for, purchasing, and
using a service, above and beyond the purchase price paid to the supplier.
T
Shopbots help consumers combat dynamic pricing online.
T
Shopbots collect price and product information from multiple electronic vendors
and provide it to consumers.
T
Psychological costs relate to unpleasant sensations affecting any of the five senses.
F
Firms do not need to consider post-purchase costs, as they occur after the firm has
already secured a purchase.
F
Firms that are always reacting to competitors' price changes run the risk of pricing
higher than might really be necessary
F
Which of the following is NOT a firm that uses dynamic pricing?
A. Easyinternetcafe.com
B Yahoo.com
C Tickets.com
D. Amazon.com
E All of the above firms use dynamic pricing.
B
Which of the following is NOT listed in the chapter as a firm that uses online
reverse auctions?
A. Priceline.com
B. Hotwire.com
C. eBay.com
D. Lowestfare.com
E. All of the above use online reverse auctions.
C
The amount of seats reserved for each class of American Airlines passengers on a
flight is referred to as a ____________.
A. field
B. row
C. column
D. bucket
E. gamble
D
Which of the following is the best example of a service industry that utilizes price
complexity?
A. Fast food
B. Education
C. Cellular phone
D. Moving/transportation
E. Roofing
C
Which of the following is the best example of a service firm that attracts customers
with low base prices and then piles on additional fees.
A. Rental cars
B. Fast food
C. Education
D. Roofing
E. Consulting
A
Amazon.com is a good example of a firm that aggravated its customers with
dynamic pricing.
T
Tickets.com is a good example of a firm that successfully generated more revenue
by implementing dynamic pricing.
T
Airlines, hotels, and car rental firms are not very good at varying prices in response
to the price sensitivity and needs of different market segments.
F
Yield management computers can determine who is likely to not show up or take
other flights.
T
Freight companies often use a combination of distance and weight or shape of
parcel as a basis to price their services.
F

CHAPTER 7:
1.____________ and ____________ represent important ways to add value to a
product.
A. Reciprocation; classification
B. Information; classification
C. Information; consultation
D. Reciprocation; consultation
E. Reciprocation; mediation
C
2.One approach to training customers, recommended by advertising experts is to
____________.
A. train employees like customers
B. use radio advertising
C. show service delivery in action
D. design palpable service environments
E. explain service procedures in advance
C
3.In ____________ services, where much of the firm's expertise is hidden, firms
may need to illustrate equipment, procedures, and employee activities that are
taking place ____________.
A. high-contact; front-stage
B. low-contact; backstage
C. high-contact; backstage
D. low-contact; front-stage
E. high-contact; intangibly
B
4.Which of the following is NOT one of the four problems for marketers seeking to
promote a service's benefits?
A. Distribution
B. Abstractness
C. Generality
D. Non-searchability
E. Mental impalpability
A
5.____________ outside peak demand periods poses a serious problem for service
industries with ____________, like hotels.
A. Low demand; high fixed costs
B. Low demand; low fixed costs
C. High demand; high fixed costs
D. High demand; low fixed costs
E. High demand; low variable costs
A
6.Which of the following would be classified under generality in intangibility?
A. Safety.
B. A hamburger.
C. An airline seat.
D. Facility appearance.
E. Expert advice.
C
7.Ads based on ____________ strategies are often perceived as more informative
than ____________ ads.
A. visualization; text-only
B. expert; power
C. visualization; affective
D. utilitarian; text-only
E. visualization; expert
A
8.Which of the following represents a broad target audience category?
A. Donors
B. Competitors
C. Employees
D. Contractors
E. Franchisers
C
9.Which of the following is NOT a common educational and promotional objective
in service settings?
A. Build awareness of and interest in an unfamiliar service or brand.
B. Reposition a service relative to competing offerings.
C. Familiarize customers with service processes in advance of use.
D. Encourage trial of competing products.
E. Recognize and reward valued customers and employees.
D
10.Which of the following is NOT a communication task for which marketers use
the Internet?
A. Promoting consumer awareness and interest.
B. Providing information and consultation.
C. Facilitating two-way communications with customers through e-mail and chat
rooms.
D. Enabling customers to place orders.
E. Reducing service demand through electronic tracking.
E
11.Communications is more than just advertising, public relations and professional
salespeople. It is also where marketers explain and promote the value proposition
of their offering.
T
12.Customers do not need training to help them perform well because they already
know what they want.
F
13.Publicizing price discounts is one way to encourage self-service on an ongoing
basis.
T
14.In low-contact services, frontline personnel are central to service delivery
F
15.Advertising and promotions do little to help change the timing of customer
usage.
F
16.Mental impalpability refers to the fact that intangibles cannot be searched or
inspected before they are purchased.
F
17.Communication messages originate only from the marketing and service
delivery channels of the firm.
F
18.Sales promotion includes sampling, coupon, sign-up rebates, gifts, prize
promotions and special events.
F
20.Direct marketing involves efforts to stimulate positive interest in an
organization and its products by sending out news releases, holding press
conferences, staging special events, and sponsoring newsworthy activities put on
by third parties.
F
21.Blogs (Web logs) are frequently modified Web pages in which entries are listed
in chronological sequence.
F
22. Which of the following is not a role played by service marketing
communications?
a. Add value through communication content.
b. Facilitate customer involvement in service production.
c. Positioning to attract investors.
d. Stimulate or dampen demand to match capacity.
e. Position and differentiate the service.
23. Which of the following is NOT one of the four problems for marketers seeking
to promote a service's benefits?
a. Distribution
b. Abstractness
c. Generality
d. Non-searchability
e. Mental impalpability
24. Fedex's Panda One is built on ____________.
a. direct marketing
b. advertising
c. personal selling
d. sales promotion
e. public relations

28. ____________ uses the metaphor of reaching the top to appeal to their
customers.
A. Prudential
B. Allstate
C. Accenture
D. MasterCard
E. Merrill Lynch
D
29. Tesco's success is built on ____________.
a. direct marketing
b. advertising
c. personal selling
d. sales promotion
e. public relations
A
30.SAS International Hotels devised which of the following sales promotions
targeted at older consumers?
A. First to provide senior citizen discounts.
B. Provided a discount percent equivalent to their age.
C. A free hotel room if large family gatherings were held at the hotel.
D. Free ballroom service for large family gatherings.
E. Discount for large family gatherings.
B
31. ____________ refers to a group of technologies for distributing audio or video
programs over the Internet using a publisher/subscriber method.
A. Podcasting
B. Webcasting
C. Websiting
D. Webenabling
E. Webscribing
A
32._____________ technology facilitates the rise of user-generated content.
A. Podcasting
B. Narrowcasting
C. TiVo
D. YouTube
E. Web 2.0
E
33. Accenture is a good example of a firm that helps it clients achieve high
performance.
T
34.UPS is strongly associated with brown, which gives it the image of being
reliable and trustworthy.
T
35.Advertising serves to build awareness, inform, persuade, and remind.
T
36.DHL gained significant favorable publicity when it safely transported two giant
pandas from Chengdu, China to the National Zoo in Washington, D.C.
F
37.Pinstorm built a very successful model based on banner advertising.
F
38. At Kearney is a good example of a firm that helps it clients achieve high
performance.
F
39. Easyjet built a very successful model based on banner advertising.

TRUE/FALSE

1. In most highly developed nations, services account for between three-fifths and
four-fifths of the GDP. T
2.Typically service jobs are not well-paid positions and require little education. F
3. When migrants from developing countries move back to their own countries
after living and working abroad in developed countries, there will be a vacuum in
the employment market of developing economies. F
4.Systems and networks access and usage is an example of the ownership of
services. F
5. Other customers typically do not impact the satisfaction of other consumers in
service settings. F
6. Time is of great importance in services so operations managers have to be
concerned about minimizing customer waiting time. T
7. Failures are inevitable in service industries. T
8. Marketers should not attempt to shape customer roles and behaviors. F
9. The appearance of buildings, landscaping, vehicles, and uniforms provide
tangible evidence of a firm's service quality. T
10. Service scape is only a consideration if customers have to enter a service
factory. T
11. China is experiencing rapid economic growth and this stimulates demand for
production and business services. F
12. IBM is a good example of a firm that has shifted from manufacturing intensive
operations to service intensive operations. T
13. The Internet is transferring power from suppliers to customers, especially in
consumer markets. T
14. Less than 15 percent of service jobs around the world are carried out remotely.
T
15.The best way to help customers visualize your service is to highlight
credentials/experience and educate consumers to make good choices. T

16. In most highly developed nations, services account for between three-fifths and
four-fifths of the GDP. T
17. Time is of great importance in services so operations managers have to be
concerned about minimizing customer waiting time. T
18. Failures are inevitable in service industries. T
20 The appearance of buildings, landscaping, vehicles, and uniforms provide
tangible evidence of a firm's service quality. T
21. Servicescape is only a consideration if customers have to enter a service
factory. T
22. IBM is a good example of a firm that has shifted from manufacturing intensive
operations to service intensive operations. T
23. The Internet is transferring power from suppliers to customers, especially in
consumer markets. T
24. The best way to help customers visualize your service is to highlight
credentials/experience and educate consumers to make good choices. T
25. Everything else being equal, when customers are risk-averse, they will choose
the service with the lowest risk perception. T
26. Customers that have no relevant prior experience with a firm may base pre-
purchase expectations on word-of-mouth comments, news stories, or the firm's
own marketing efforts. T
27. A service encounter is a period of time during which you, as a customer,
interact with a service provider. T
28. High-contact encounters between customers and service organizations differ
sharply from low-contact encounters. T
29 Service personnel may play roles that are very different from their own
personalities. T
30. For B2B services, trade shows can be a way to create a need and engage
customers' interest. T
31. McAfee uses free trial to create more search attributes to assist prospective
customers. T
32. Thoughtful banks place a telephone beside their ATMs so that customers can
call a real person. T
33, One of the reasons why firms with a narrow product line elect to serve multiple
segments is to create a portfolio of customers that hedge against low demand risks.
T
34. A service-focused firm offers a narrow range of services to a fairly broad
market. T
35. The objective of internal corporate analysis is to identify the organization's
resources, any limitations or constraints, its goals, and how it values shape the way
it does business. T
36. The best way to anticipate possible competitive responses is to identify all
current or potential competitors and to put oneself in their own management's
shoes by conducting an internal corporate analysis for each of these competitors. T
37. Yotel and Qbic are capsule hotel chains. T
38. Google has expanded its offerings to include Google Earth and You Tube in
order increase sales and attract new customers. T
39. The delivery process surrounding the core product of an overnight hotel stay
includes scheduling, nature of process, customer role and service level. T
40. Service marketers need to create a coherent offering in which each element is
compatible with the others and all are mutually reinforcing. T
41. To obtain full value from any good or service, customers need relevant
information. T
42. "Exceptions" involve supplementary services that fall outside the routine of
normal service delivery. T
43. For self-service payment, customers may make payment by inserting coins,
banknotes, tokens or cards into machines. T
44. Singapore Airlines is well recognized for both their superior meals and
attentive cabin crew. T
45. Service delivery is shifting to arm's length transactions for many services due
to advances in telecommunications. T
46. In general, service providers are more likely to visit corporate customers at
their premises than to visit individuals in their homes. T
47 Physical logistics services now find themselves competing with
telecommunications services. This is a result of the instantaneous delivery
capability of information-based products. T
48. The need for economies of scale often restricts choice of location for service
facilities. T
49. An ongoing problem of franchising is that when franchisees gain experience,
they may start to feel that they should not be paying the various fees to the
franchisor. T
50. Shanghai's Maglev train helps to overcome the locational constraint of having
the airport sited in a far away place. T
51. First Direct describes itself as the largest virtual bank in the world. T
52. Customers often incur significant financial costs in searching for, purchasing,
and using a service, above and beyond the purchase price paid to the supplier. T
53. Shopbots help consumers combat dynamic pricing online. T
54. Shopbots collect price and product information from multiple electronic
vendors and provide it to consumers. T
55 Amazon.com is a good example of a firm that aggravated its customers with
dynamic pricing. T
56 Tickets.com is a good example of a firm that successfully generated more
revenue by implementing dynamic pricing. T
57. Yield management computers can determine who is likely to not show up or
take other flights. T
58. Communications is more than just advertising, public relations and
professional salespeople. It is also where marketers explain and promote the value
proposition of their offering. T
59. Publicizing price discounts is one way to encourage self-service on an ongoing
basis. T
60. Accenture is a good example of a firm that helps it clients achieve high
performance. T
61. UPS is strongly associated with brown, which gives it the image of being
reliable and trustworthy. T
62. Advertising serves to build awareness, inform, persuade, and remind. T
63. A blueprint specifies in some detail how a service process should be
constructed. T
64. Blueprints can pinpoint the stages in the process where customers commonly
have to wait. T
65. Part of the challenge of implementing poka-yokes in service contexts is the
need to address not only server errors, but also customer errors. T
66. Service process redesign encompasses reconstitution, rearrangement, or
substitution of service processes. T
67. A key problem with self-service technologies is that so few of them incorporate
service recovery systems. T
68. SST is only better than the interpersonal alternative if it saves time, provides
ease of access, cost savings, or some other benefits. T
69. Restaurants are often quite theatrical in their use of physical evidence (such as
furnishing, décor, uniforms, lighting, and table settings). T
70. Poke-yokes originated from Total Quality Management methods in
manufacturing. T
71. A good example of a service poka-yoke is a surgeon whose surgical instrument
trays have indentations for each instrument. T
72. The term "productive capacity" refers to the resources or assets that a firm can
employ to create goods and services. T
73. Financial success in businesses with limited capacity depends largely on how
capacity is used. T
74. Good records of a firm's transactions can help one to understand demand
patterns. T
75. We need to have queuing or reservations systems because demand cannot be
inventoried. T
76. Yield analysis forces managers to recognize the opportunity cost of selling
capacity for a given date to a customer from one market segment when another
might subsequently yield a higher rate. T
77. A subway can increase the capacity on a route after all seats have been
occupied. T
78. One of the most direct ways for a hotel to reduce excess demand at peak
periods is to charge customers more money to use the service during those periods.
T
79. Service consumers use service environment as an important quality proxy. T
80. Servicescapes help to shape the desired feelings and reactions in customers and
employees. T
81. Ambient conditions refer to those characteristics of the environment pertaining
to our five senses. T
82. The use of orange is commonly associated with its ability to encourage verbal
expression. T
83. Signs are frequently used to teach and reinforce behavioral rules in service
settings. T
84. The appearance of both service personnel and customers can reinforce or
detract from the impression created by the service environment.
85. Facing competition from numerous casinos in other locations, Las Vegas has
been trying to reposition itself away from being an adult destination to a somewhat
more wholesome family fun resort.
86. A spa environment should be designed with low arousal and high pleasantness.
87. Staff acting as Cinderella, or seven drawfs at Disney theme parks are part of
the service environment.
88. E-mail and telephone service interactions are just as visible as face-to-face
interactions.
89. Boundary spanners work in some of the most demanding jobs in service firms.
90. The "Cycle of Mediocrity" is most often found in large, bureaucratic
organizations like regulated oligopolies.
91. Technical skills encompass all the required knowledge related to processes.
92. Suggestion involvement empowers employees to make recommendations
through formalized channels.
93. The Ritz-Carlton uses personality profiles to select the best applicants.
94. Training in Dial-a-Mattress includes showing staff how to create images in the
customers' minds.
95. Southwest Airlines illustrates a high-involvement company.
96. Customers remain loyal to a firm because they experience relational benefits.
97. Good relationships start with a good fit between customer needs and company
capabilities.
98. The two ends of the customer satisfaction/loyalty relationship are terrorist and
apostle.
99. Vanguard Group is very careful about acquiring the right type of customer.
100. ING Direct could be called the fast-food model of consumer banking because
it is about as no-frills as it gets.
101. Customer satisfaction (based on the ACSI) is highly related to the stock price
of individual firms.
102. Part of British Airways' strategy is that customers can earn BA points and air
miles on other airlines.
103. Complaining behavior can be influenced by role perceptions and social
norms.
104. Interactional justice involves the employees of the firm who provide the
service recovery and their behavior toward the customer.
105. Service recovery is an umbrella term for systematic efforts by a firm to
correct a problem following a service failure and retain a customer's goodwill.
106. Proper service recovery can be accomplished by making it easy for customers
to give feedback, enabling effective service recovery, and establishing appropriate
compensation levels.
107. Compensation should be based on the positioning of the firm, the severity of
the failure, and who the specific affected customer is.
108.A jaycustomer is defined in the book as one who acts in a thoughtless or
abusive way, causing problems for the firm, its employees, and other customers.
109.Customers who complain are more likely to be white-collar workers than blue-
collar workers.
110.Hampton Inn has developed a way to identify guests who appear to be
cheating and give them a lot of personalized attention and follow-up from the
company.
111.The service quality is the difference between what customers expect to receive
and their perceptions of the service that is actually delivered.
112.The perception gap is the difference between what is, in fact, delivered and
what customers perceive they have received.
113.Transactional surveys are typically conducted after customers have completed
a specific transaction.
114.Control charts offer a simple method of displaying performance on hard
measures over time against specific quality standards.
115.FedEx was one of the first company's to understand the need for a firm-wide
index of service quality that embraced all the key activities that had an impact on
customers.
( 84-115: all correct is true)

CHAPTER 11:
1.following is true:
a. brand architecture strategy helps marketers determine which products to
introduce

b.the role of brand architecture has 2 important purposes: clarify brand awareness
and improve brand image

c. steps to develop brand architecture are: defining brand potential, identify brand
extension, branding new products.

d. all the above

2,improving brand image is done to maximize the transfer of __________ between
the brand and individual products to improve trail and repeat puchase
brand equity

3, 3 important characterists that help define brand potential: brand vision, brand
boundaries, brand positioning

4,always requires understanding of current brand equity

following is false about brand vision:

a. its managements view of the brands long term potential and infused by how well
the company is able to recognize brand equity.

b. recognizing future possibilities for brand equity does not always require
understand of current brand equity.

c. it related to brand higher order purpose

d. transcends the brands physical product category descriptions
5,following is true:
a. not all brands have boundaries
b. brand boundaries are based on brand vision and positioning.
c. brand portfolios are used to target different segments
d. b & c
6,broad brand has an abstract brand positioning and able to support a higher order
promise relevant in multiple product settings
TRUE
7,a ___________ is the use of collection go individual brands, all different names.
a ________ is the use of both the umbrella corporate or family brand and
individual brand names
house of brands, sub brand

9,a _______ is a new product introduced under an existing brand name. a

__________ is a new product introduction within a product category currently in
the companies portfolio. a ________ is a new product introduction within a
product category newly added to the portfolio
brand extension, line extension, category extension
10,brand positioning buts some specificity into a brand vision
True
11,brand equity implications of bran extensions in terms of POPs and PODs must
be understood to carefully plan the optimal sequence of brand extensions and
achieve brand potential
true
12,following is true about sub brands
a. approach a minority companies use
b. recommended to be used when complentary brand benefit is not distinct.
c. can tap brand associations and brand attitudes about umbrella or family and
individual brands
d. b&c
13,following is true about sub brands
a. allows for creation of new brand beliefs
b. plays important role in brand architecture as it signals customers to expect
differences and similarities.
c. usually requires significant investments and disciplines marketing to establish
proper brand meanings. Marketers without these requirements should consider
adopting the simplest brand hierarchies possible.
d. all above
14,the simplest brand hierarchy possible is a product descriptor to designate the
new product
TRUE
15,a ______ us the set if all brands sold by a company in a product category
brand portfolio
16,the primary reason to have multiple breams in the same product category is
market coverage
17,name 2 of the benefits of using multiple brands: differences in pricing, attract
customers who seek variety
18,to achieve healthy brand portfolio, marketers must trade off of reasons to use
multiple brands with cost and availability.
TRUE
19,regarding size management of brand portfolio, if its too big marketers should
add brands to increase profits, if its too small they should drop brands to increase
profits.
FALSE
20,basic principle in designing a brand portfolio is to maximize market coverage
and minimize brand overlap
true
21,use of brand hierarchies is to portray the comapnys branding strategy by
displaying the number and nature of common and distinct bran elements across the
products.
TRUE
22,list of different ways that can be used to define brand elements and brand
hierarchy levels:

1.__________
2. Family Brand
3. _______________
4. Modifier
5. Product Descriptor

corporate brand, individual brand

23,following is true about coporate brand level:

a. for legal reasons its always present somewhere on product

b. the name of company subsidiary must be used instead
c. it may be virtually the only brand for some companies.
d. all above
24,corporate image is the customers associations to company. corporate image is
relevant when brand level plays prominent role in branding strategy
TRUE

25,following is false about family brand:

a.its used in more than one product category

b. its not necessarily the companies name
c. most companies support a great number of familybrands
d. if distinct from corp brand level, brand associations might be less salient.
26,family brands may be used instead of corp brands. differentiation may make it
harder for corp breams to retain any product meaning or effectively link the
differentiated product.
true
27,distinct family brand can evoke specific set of brand associations. May make
related new product introduction more cost efficient and increase probability of
acceptance
true
28,may be problems with using family brand level. if products are linked to family
brand, their supporting marketing programs are not carefully considered and
designed, the family brand associations may weaken and become less favorable.
TRUE
29,following is false about individual brand level:

a.main advantage is marketers can customize the brand and marketing activity
b. disadvantages are difficulty complexity and expense of developing separate
marketing programs.
c. its unrestricted to the numbers of product categories.
d. b &C
30,the modifier is a means to designate a specific item of version or configuration
of a product.
TRUE

31,following is false about modifier:

a. shows how one brand variation relates to others
b. its rarely used
c. helps make products more understandable
d. can become a strong trademark
32,product descriptor refers to descriptive words that come before the brand name
false, comes AFTER the brand name

33,product descriptor is a brand element.

false, it is not a brand element

34,designing brand hierarch involves these steps:

1. Specific _______ to introduce
2. Number of ______ of hierarchy
3. Desired _______ and _______
4. Combining brand _______
5.Linking brand _________
products, levels, levels, awareness, image, elements, elements

35,following is true about products in brand hierarchy:

a. addressing growth means extensions should be determined through cost/benefit
analysis.
b. addressing survival means brand extensions should achieve brand equity in their
product categories (no me too)
c. addressing synergy means brand extensions should enhance the equity
d. all above
36,company should compare the ROI regarding the brands existing products and
introducing new products
TRUE

37,following is false about levels of brand hierarchy:

a. most companies do not choose more than 1 level

b. developing brands at lower levels allows company flexibility
c. developing brands at higher levels allows company to increase communication
d. b and c

38,following is true about sub branding regarding levels:

a. used to modify the company or family brand

b. can allow for the creation of brand specific beliefs.
c. under it, combining existing and new brand elements can signal the similarity or
fit of a new bran extension.
d. all the above
39,following is false about simplicity and clarity:
a. marketers must address simplicity which is the ned to provide customers with
just the right amount of branding information
b. the desired number of levels is based on the complexity of the product line or
mix
c. relatively simple low involvement products often have fewer and less complex
hierarchy levels. complex set of products require less complex hierarchy levels.
d. clarity refers to the logic and relationship of all brand elements used
40,brand associations add value to marketing when they're relevant. this value may
increase with increases in brand associations. if theres a higher probability that the
value will increase, it may be more efficient and economical in the company's
marketing to consolidate a brand association into 1 brand that is linked to many
products.
TRUE
41,following is true about differentiation in brand hierarchy:
a. individual products and brands must be differentiated.
b. not differentiating individual products may make it difficult to justify supporting
both or customers choose between two brands
c. introducing brand variations must be done with restraint
d. all of the above
45,differentiating individual products and brands is especially important at an
individual brand or modified level . also valid at family brand level.
TRUE
46,not all products should receive the same emphasis at any hierarchy level. a key
issue is choosing the ______ emphasis to place on the different products in the
brand hierarchy
relative
47,a _________ is the product that best represents the brand to customers. plays
key role in brand portfolio in that marketing can have _____-term benefits as well
as ______-term benefits. Often the first one by which the brand gained fame
flagship product, short, long
48,when combining elements from different levels, marketers should decide how
much emphasis to give each element.
TRUE
49, Prominence is a brands elements relative visibilty compared with other brand
elements. determines which ones become primary ones and secondary ones.
50,Primary brand elements may convey more restricted set of brand associations.
Secondary brand elements should convey the main product positioning and PODS.
False, Secondary is more restricted. Primary conveys PODs
51,Commonality means that the more common the brand elements the products
share, the stronger the linkages between them
52,the most difficult way to link brand elements is to use the brand elements "as is"
across products
false, its the simplest way

53,corporate brand can encompass a wider range of associations than product

brands can. corporate brand associations have an important effect on brand equity
and market performance.
True
54,to build a strong corporate brand, it has to be comfortable with high levels of
openness. Company needs to keep a high public profile. CEo may need to keep a
more public profile to help communicate news as well as be a marketing symbol.
company should be willing to be subjected to more scrutiny and be extremely
transparent.
TRUE
55,corporate brand equity is the differential response by consumers customers
employees to words actions communications or products provided by the corporate
brand equity
56,corporate brand personality form of brand personality specific to a corporate
brand.
57,A ___________ refers to promoting a range of products associated with a brand
line.
brand line campaign
57,brand hierarchy cannot be symmetric. brand elements may receive more of less
emphasis, or not be present at all, depending on the particular products.
TRUE
58,brand architecture guidelines:
1,_____________
2. Create broad brand platforms
3. _____________
4. selectively employ sub brands
5._______________
adopt a strong customer focus, avoid over branding, selectively extend brands