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Assuming the following information in a capacity management report from a well-known carrier in the airline industry will not change in the near future, what actions would you recommend that the carrier take? The yield is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents.


A) Proceed as in the past; the carrier is clearly profitable.
B) Use advertising to let consumers know how the carrier currently meets their needs.
C) Change the flight schedules to accommodate travelers' needs and advertise these changes.
D) Keep the flight schedule as it is and reduce the price per flight.
E) There is not enough information in the marketing dashboard to suggest an action to take.

F) None of the above
G) A) and B)

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Airlines feature load factor as a capacity management measure on their marketing dashboards, along with two other measures: the operating expense per available seat flown one mile and the revenue generated by each seat flown one mile, called


A) profit per passenger.
B) average price per passenger.
C) internal ROI.
D) unit variable sales.
E) yield.

F) C) and D)
G) A) and E)

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What role do people play in the managing of services? In answering the question, discuss the concept of customer experience management (CEM).

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Many services depend on people for the c...

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Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services, such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office, for people who are too busy to perform these simple tasks. One way she tries to avoid ___________ of services for her regular customers is to make sure that the same well-trained person is always assigned to work for the same client.


A) inseparability
B) inconsistency
C) incongruity
D) inflexibility
E) intangibility

F) A) and C)
G) All of the above

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The type of analysis that compares the differences between consumers' expectations about a service and their experience with it based on dimensions of service quality is referred to as


A) customer relationship management.
B) service encounter differential.
C) gap analysis.
D) a customer contact audit.
E) a service audit.

F) A) and B)
G) D) and E)

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Intangible items such as airline trips, financial advice, or telephone calls that an organization provides to consumers are referred to as


A) production goods.
B) support products.
C) services.
D) goods.
E) benefits.

F) C) and E)
G) A) and B)

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Which of the following statements about service failures is most accurate?


A) Only 5 to 10 percent of dissatisfied customers choose to complain to the company.
B) Once customers complain, they expect all of their demands to be met.
C) Only 20 percent of consumers will give a company a second chance if they are not fully satisfied during the first encounter.
D) People are twice as likely to share good service experiences as bad experiences.
E) Monitoring social media websites such as YouTube, Twitter, and Facebook are a waste of time since the complaints presented are usually isolated instances and are not indicative of the actual service delivered.

F) B) and E)
G) C) and D)

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Which of the following statements about services is most accurate?


A) Whether tangible or intangible, the marketing of services is exactly the same as the marketing of products or ideas since they both satisfy customer needs.
B) Although a major contributor to GDP nationally, services play only a minor role in GDP on a global scale.
C) Exports of services is one of the few areas in which the United States has a trade surplus.
D) Very few jobs in the United States are in the services sector.
E) There is much more in common with the marketing of services and business products than there is between the marketing of services and consumer products.

F) B) and D)
G) C) and D)

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The notion that a service organization must focus on its employees before successful programs can be directed at customers is referred to as


A) internal analysis.
B) internal marketing.
C) external marketing.
D) stakeholder marketing.
E) employee marketing.

F) A) and E)
G) A) and D)

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Mobility as a future aspect of services refers to


A) the ability of mobile media technology to be incorporated into portable digital devices.
B) the ability to transport goods almost anywhere in the world within 24 hours.
C) the ability to transfer entire operations including a firm's technology from one location to the next within a matter of days.
D) the ability of consumers to purchase any service from any service provider anywhere in the world.
E) the ability of service providers to move their operations to any location in the world.

F) A) and D)
G) A) and C)

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Fred White has just accepted a sales position with the ABC Health Maintenance Organization, a major provider of health care services. He had been selling medical supplies for some time and found that he understood how customers bought medical supplies. Which of the following is most likely to be a characteristic of the health care services that Fred offers?


A) Customers are engaged in a low involvement purchase process.
B) The quality of services can be predetermined in a similar manner to tangible products.
C) A consumer may not have the ability to judge the quality of medical care service even after the service has been provided.
D) The buyer does not participate in the delivery of the service.
E) The service provider should concentrate on the problem recognition stage of the purchase decision process in the marketing health care services.

F) B) and C)
G) A) and E)

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Sarah has a backache due to overexertion. She believes a massage would loosen her back muscles and help her feel better. She is concerned because a massage, unlike a pair of shoes, cannot be experienced or seen before she buys it. Which characteristic of services is she concerned about?


A) incongruity
B) inconsistency
C) intangibility
D) inventory costs
E) inseparability

F) All of the above
G) B) and D)

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When knowledge and courtesy of employees and their ability to convey trust and confidence is important, this represents which dimension of service quality?


A) tangibility (tangibles)
B) responsiveness
C) assurance
D) reliability
E) empathy

F) A) and C)
G) A) and E)

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What are the three properties of products and services that are evaluated by consumers when they are making a purchase decision? Give an example of a product or service for each.

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Consumers evaluate three properties-sear...

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How a person establishes expectations for a service not yet experienced is influenced by word-of-mouth communications, __________, past experiences, and promotional activities.


A) personal needs
B) the economy
C) consumer income
D) competitive trends
E) how the organization delivers its service

F) C) and D)
G) A) and C)

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The tangibles that make up the service, such as buildings, landscaping, vehicles, furnishings, signage, brochures, and equipment, comprise which element of the seven Ps of services marketing?


A) process
B) place
C) physical environment
D) productivity
E) product

F) C) and D)
G) All of the above

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Which of the following is the most important aspect conveyed by the American Express credit card and travel brand, which focuses on providing unique services and attentive service provision?


A) its international experience
B) differentiation and an image of quality
C) the ownership of the company
D) the nonprofit aspect of the company
E) the patent for its service

F) B) and C)
G) A) and E)

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How does the LA Galaxy use promotion (advertising, personal selling, public relations, sales promotion, direct marketing) in its marketing program.

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LA Galaxy advertising includes TV, radio...

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In a capacity management report from a well-known carrier in the airline industry, the yield is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents. The revenue generated by each seat flown one mile is


A) 9.83 cents.
B) 82.1 cents.
C) 8.28 cents.
D) 18.11 cents.
E) 7.99 cents.

F) A) and D)
G) All of the above

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In a capacity management report from a well-known carrier in the airline industry, the yield is 9.83 cents, load factor is 82.1 percent, and operating expense is 8.28 cents. From these details, the airline posted __________ per available seat flown one mile.


A) a 9.83 cent profit
B) a 1.55 cent profit
C) a 1.27 cent profit
D) a 0.21 cent loss
E) an 8.28 cent loss

F) A) and D)
G) A) and E)

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