Principles of marketing Exam 5 Questions and Correct Answers Latest Update (2025-2026) Already
Passed
An intangible product that involves a deed, a performance, or an effort that cannot be physically
possessed - Answers service
The major characteristic that distinguishes a service from a good
A service is not physical and cannot be perceived by the senses
Services cannot be physically possessed - Answers Intangabilty
How much of the GDP do services make up - Answers 70%
Interactions that result in satisfied customers who use a service repeatedly over time - Answers client-
based relationships
What kind of communication has a key role in client based relationships - Answers Word of mouth
The level of interaction between provider and customer needed to deliver the service - Answers
customer contact
The basic service experience a customer expects to receive - Answers core service
One or more supportive services used to differentiate the service bundle from competitors' - Answers
Supplementary services
Heterogeneity allows for what - Answers Customization
Pricing should consider: - Answers Consumer price sensitivity
Nature of the transaction
Costs
Unused service capacity from one time period cannot be stored for future use - Answers perishability
What is an example of perishability - Answers A flight in an airplane (you can't go back in time and you
can't save it for later)
Consumers rely on what as an indicator of quality? - Answers Price
Customers' perceptions of how well a service meets or exceeds their expectations - Answers Service
quality
, Tangible attributes (of a product) such as color, style, size, feel, or fit that can be judged before the
purchase of a product - Answers Search quality
Attributes, such as taste, satisfaction, or pleasure, that can be assessed only during purchase and
consumption of a service - Answers Experience quality
Attributes that customers may be unable to evaluate even after purchasing and consuming a service -
Answers credence qualities
Four factors that affect service quality - Answers analysis of customer expectations, service quality
specifications, employee performance, and management of service expectations
Customers have two levels of expectations - Answers desired and acceptable
Desired Expectations - Answers what the customer really wants
Acceptable Expectations - Answers the level of service that is adequate
Zone of tolerance - Answers the difference between what the customer really wants and what he or she
will accept before going elsewhere
Marketing activities conducted to achieve some goal other than ordinary business goals such as profit,
market share, or return on investment - Answers nonprofit marketing
Two types of nonprofit marketing - Answers Nonprofit-organization marketing
Social marketing
A collective of individuals who have an interest in or concern about an organization, product, or social
cause - Answers target public
Direct consumers of a product of a non profit organization - Answers Client publics
Indirect consumers of a product of a nonprofit organization - Answers General Public
The value of the benefit given up by selecting one alternative over another - Answers Opportunity costs
all transactions in which the buyer intends to consume the product through personal, family or
household use - Answers retailing
an organization that purchases products for the purpose of reselling them to ultimate consumers -
Answers retailer
retail establishments that offers a variety of product lines stocked in considerable depth - Answers
General merchandise retailers
emphasize narrow and deep assortments of items - Answers Specialty stores
Passed
An intangible product that involves a deed, a performance, or an effort that cannot be physically
possessed - Answers service
The major characteristic that distinguishes a service from a good
A service is not physical and cannot be perceived by the senses
Services cannot be physically possessed - Answers Intangabilty
How much of the GDP do services make up - Answers 70%
Interactions that result in satisfied customers who use a service repeatedly over time - Answers client-
based relationships
What kind of communication has a key role in client based relationships - Answers Word of mouth
The level of interaction between provider and customer needed to deliver the service - Answers
customer contact
The basic service experience a customer expects to receive - Answers core service
One or more supportive services used to differentiate the service bundle from competitors' - Answers
Supplementary services
Heterogeneity allows for what - Answers Customization
Pricing should consider: - Answers Consumer price sensitivity
Nature of the transaction
Costs
Unused service capacity from one time period cannot be stored for future use - Answers perishability
What is an example of perishability - Answers A flight in an airplane (you can't go back in time and you
can't save it for later)
Consumers rely on what as an indicator of quality? - Answers Price
Customers' perceptions of how well a service meets or exceeds their expectations - Answers Service
quality
, Tangible attributes (of a product) such as color, style, size, feel, or fit that can be judged before the
purchase of a product - Answers Search quality
Attributes, such as taste, satisfaction, or pleasure, that can be assessed only during purchase and
consumption of a service - Answers Experience quality
Attributes that customers may be unable to evaluate even after purchasing and consuming a service -
Answers credence qualities
Four factors that affect service quality - Answers analysis of customer expectations, service quality
specifications, employee performance, and management of service expectations
Customers have two levels of expectations - Answers desired and acceptable
Desired Expectations - Answers what the customer really wants
Acceptable Expectations - Answers the level of service that is adequate
Zone of tolerance - Answers the difference between what the customer really wants and what he or she
will accept before going elsewhere
Marketing activities conducted to achieve some goal other than ordinary business goals such as profit,
market share, or return on investment - Answers nonprofit marketing
Two types of nonprofit marketing - Answers Nonprofit-organization marketing
Social marketing
A collective of individuals who have an interest in or concern about an organization, product, or social
cause - Answers target public
Direct consumers of a product of a non profit organization - Answers Client publics
Indirect consumers of a product of a nonprofit organization - Answers General Public
The value of the benefit given up by selecting one alternative over another - Answers Opportunity costs
all transactions in which the buyer intends to consume the product through personal, family or
household use - Answers retailing
an organization that purchases products for the purpose of reselling them to ultimate consumers -
Answers retailer
retail establishments that offers a variety of product lines stocked in considerable depth - Answers
General merchandise retailers
emphasize narrow and deep assortments of items - Answers Specialty stores
