MKTG 409 Exam 2 Chapter 13 MindTap Study Guide – Pricing Strategy, Costs & Break-Even
Analysis Review
Which of the products provided by the following companies is most likely to be evaluated using
experience qualities? - correct answer ✔✔Red Lobster
Shelly works as a call-center employee from inside her home. The company she works for does
not mind that she works from home because she is so good at her job. Her professionalism
hardly varies from one call to the next. One day, however, she learned that her mother had
died. Rather than taking off work, she went through the work day as routine. A few days later, a
customer complained to the firm that she did not like Shelly's attitude when she contacted her
with questions about a product. She felt that Shelly was brusque and rude. The company
investigated the matter and found that Shelly had lost her patience with the customer over the
phone. However, when they found out about her situation, they only gave her a verbal warning.
Refer to Scenario 13.1. The fact that Shelly's job has been outsourced to her home is known as -
correct answer ✔✔homescourcing
Belle Meade is an old house and plantation in Nashville, Tennessee. Today it operates as a non-
profit, giving tours of the house and plantation to the public. Its mission is to educate the public
about the significance of the plantation in American history. In the past, it depended on ticket
sales from these tours to maintain the upkeep of the plantation. However, once the recession
hit, sales of tickets declined. The managers decided to open a non-profit winery to supplement
ticket sales. Belle Meade grows grapes on the property, and volunteers package the wine. At the
end of the tour guests can engage in wine tasting and purchase wines at the plantation's store.
The winery has been highly successful, and any profits from selling the wine are reinvested back
into the plantation. It also operates a restaurant on the premises.
Refer to Scenario 13.2. Volunteers are used to help bottle the wine at Belle Meade Plantati -
correct answer ✔✔opportunity costs
, Services make up about ________ of the gross domestic product in most developed countries. -
correct answer ✔✔70%
Shopping online is highly convenient and easy. However, there are some things that retail stores
have that online shopping does not. For instance, online marketers are likely to have less
_________________ than retail stores. Many websites encourage consumers to chat instantly
online if they have a problem, and a customer service representative will answer them. This
helps save money on calls. - correct answer ✔✔customer contact
In nonprofit marketing, _______________ are indirect consumers of the product. They do not
directly benefit from the product the nonprofit organization is offering. - correct answer
✔✔general publics
(scenario about shelly working at the call center)
Refer to Scenario 13.1. Which characteristic of services caused a problem for the firm in this
scenario? - correct answer ✔✔Heterogeneity
Refer to Scenario 13.1. When evaluating the quality of Shelly's service, what type of evaluation
method did the customer most likely use? - correct answer ✔✔Experience qualities
Chris owns his own small firm. The firm has expanded significantly and is thinking about taking
out some ads on television. Chris had decided it is time to get a lawyer to advise them on
business issues and ensure that their activities obey all relevant laws. Chris meets with a lawyer
on a recommendation from a friend. The lawyer seems to have great credentials, and the advice
he gave Chris seemed solid. But the lawyer's advice comes at a high expense. Chris wants to
make sure he gets the best service possible for the price he is paying. However, he does not
have much experience with the law and does not know how to measure the lawyer's services
on quality. It is particularly hard for Chris because the advice he gets from the lawyer is
something he cannot see, making it much harder to measure according to quality
characteristics. He looks online at the reviews of other consumers who used the lawyer's
services.
Analysis Review
Which of the products provided by the following companies is most likely to be evaluated using
experience qualities? - correct answer ✔✔Red Lobster
Shelly works as a call-center employee from inside her home. The company she works for does
not mind that she works from home because she is so good at her job. Her professionalism
hardly varies from one call to the next. One day, however, she learned that her mother had
died. Rather than taking off work, she went through the work day as routine. A few days later, a
customer complained to the firm that she did not like Shelly's attitude when she contacted her
with questions about a product. She felt that Shelly was brusque and rude. The company
investigated the matter and found that Shelly had lost her patience with the customer over the
phone. However, when they found out about her situation, they only gave her a verbal warning.
Refer to Scenario 13.1. The fact that Shelly's job has been outsourced to her home is known as -
correct answer ✔✔homescourcing
Belle Meade is an old house and plantation in Nashville, Tennessee. Today it operates as a non-
profit, giving tours of the house and plantation to the public. Its mission is to educate the public
about the significance of the plantation in American history. In the past, it depended on ticket
sales from these tours to maintain the upkeep of the plantation. However, once the recession
hit, sales of tickets declined. The managers decided to open a non-profit winery to supplement
ticket sales. Belle Meade grows grapes on the property, and volunteers package the wine. At the
end of the tour guests can engage in wine tasting and purchase wines at the plantation's store.
The winery has been highly successful, and any profits from selling the wine are reinvested back
into the plantation. It also operates a restaurant on the premises.
Refer to Scenario 13.2. Volunteers are used to help bottle the wine at Belle Meade Plantati -
correct answer ✔✔opportunity costs
, Services make up about ________ of the gross domestic product in most developed countries. -
correct answer ✔✔70%
Shopping online is highly convenient and easy. However, there are some things that retail stores
have that online shopping does not. For instance, online marketers are likely to have less
_________________ than retail stores. Many websites encourage consumers to chat instantly
online if they have a problem, and a customer service representative will answer them. This
helps save money on calls. - correct answer ✔✔customer contact
In nonprofit marketing, _______________ are indirect consumers of the product. They do not
directly benefit from the product the nonprofit organization is offering. - correct answer
✔✔general publics
(scenario about shelly working at the call center)
Refer to Scenario 13.1. Which characteristic of services caused a problem for the firm in this
scenario? - correct answer ✔✔Heterogeneity
Refer to Scenario 13.1. When evaluating the quality of Shelly's service, what type of evaluation
method did the customer most likely use? - correct answer ✔✔Experience qualities
Chris owns his own small firm. The firm has expanded significantly and is thinking about taking
out some ads on television. Chris had decided it is time to get a lawyer to advise them on
business issues and ensure that their activities obey all relevant laws. Chris meets with a lawyer
on a recommendation from a friend. The lawyer seems to have great credentials, and the advice
he gave Chris seemed solid. But the lawyer's advice comes at a high expense. Chris wants to
make sure he gets the best service possible for the price he is paying. However, he does not
have much experience with the law and does not know how to measure the lawyer's services
on quality. It is particularly hard for Chris because the advice he gets from the lawyer is
something he cannot see, making it much harder to measure according to quality
characteristics. He looks online at the reviews of other consumers who used the lawyer's
services.
