Multiple Choice Answers

1. _______ means allowing employees to make decisions about how service is provided to customers.
A. Knowledge control
B. Quality control
C. Standards enforcement
D. Empowerment

2. When confronted with an angry and emotional customer, the best first step toward service recovery is

listen carefully and with empathy until the customer feels he or she has been heard.

3. For new-product marketers, early adopters are important because they tend to be
A. few in number.
B. opinion leaders.
C. fond of prototypes.
D. specialists in reverse engineering.

4. The process by which the use of a new product or service spreads throughout a market group is referred
to as
A. new-product introduction.
B. diffusion of innovation.
C. lead-user dispersion.
D. test-marketing effectiveness.

5. Because services like airline flights and hotel beds are _______, many marketers attempt to match demand with supply using pricing strategies.
A. variable
B. inseparable
C. intangible
D. perishable
6. Proactive managers and service providers know to plan for failure to meet customer expectations. The course of action that will help in the long run as well as the short run is to
A. attempt to make amends and learn from the experience.
B. increase the zone of tolerance.
C. assess service standards against service fairness.
..D. reduce the communications gap.

7. Many hotels use _______ to overcome the problem of inseparability of services.
A. promotional discounts
B. perishability gap analysis
..C. point-of-purchase displays
D. satisfaction guarantees

8. Through research, firms can close the _______ gap by matching customer expectations with actual
A. delivery
B. standards
C. knowledge
D. seniority

9. _______ represents the systems and equipment resources that service providers need to be able to close
the delivery gap.
A. Instrumental support
B. Service infrastructure
C. Quality mechanics
D. Dynamic support

10. Innovators are critical to new-product marketers because they
A. are the major source of innovation.
B. help with test marketing.
C. act as reverse engineering consultants.
D. help the product gain market acceptance.

11. A firm’s product line breadth is its
A. depth divided by its profitability.
B. number of categories that are mutually exclusive.
C. number of SKUs per product line.
D. number of product lines.

12. The basic benefit of a brand is that it
A. creates a basis for effective packaging.
B. provides a way for a firm to differentiate its product offerings from those of its competitors.

C. allows manufacturers to ignore promotional expenditures.
D. offers consumers promotional parity.

13. Private-label brands like Gap and Victoria’s Secret have increased in importance along with the
increased power of _______ in the supply chain.
A. wholesalers
B. supply chain specialists
C. manufacturers
..D. retailers

14. A _______ gap reflects the difference between customers’ expectations and the firm’s perception of those customer expectations.
A. seniority
B. delivery
C. standards
D. knowledge

15. Within each _______, there are often multiple product categories.
B. primary packaging part
C. product line
D. package

16. When there’s a significant difference between the service customers receive and what the firm promotes, the firm has a _______ gap.
A. knowledge
B. communications
C. delivery
D. standards

17. One of the benefits to a firm of introducing new-to-the-world products or services is
A. cost savings.
B. a greater market share that can be held over an extended period of time.
C. the ability to avoid having to pay pioneers for new-product development.
D. late-majority marketing.

18. A major limitation in the use of internal R&D departments for new-idea generation is that
A. the costs tend to be quite high.
B. the departments tend to be dissolved once sufficient ideas have been generated.
C. the departments tend to create too many blockbusters.
D. few scientists have practical ideas.

19. Brand extension is a popular marketing strategy because it allows the firm to

A. spend less on creating brand awareness and associations.
B. separate out the cost of brand extension from brand intention.
C. discontinue complementary products.
D. avoid the problem of brand dilution.

20. Colgate-Palmolive’s _______ includes Oral Care, Personal Care, Household Care, Fabric Care, and Pet
Nutrition product lines.
A. primary packaging parts
B. perceived generic cobrands
C. product assortment
D. product personality

21. Choosing a name for a brand
A. is serious business, and humorous names have been shown to detract from the brand.
B. may depend on the usage and performance of the product.
C. may be complicated by the legal restrictions in several states that require the corporate name to be included.
D. is easy once a company does the research.

22. The consumer may seek additional product information in a secondary package, while the retailer is
concerned about how convenient the secondary package is for _______ and selling the product.
A. motivating employees
B. increasing safety
C. segmenting
D. displaying