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Lovelock06 Tif
Chapter 6
Educating Customers and Promoting the Value Proposition

GENERAL CONTENT

Multiple Choice Questions

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; Moderate; p. 155)

2. Which of the following is NOT one of the four problems for marketers seeking to promote a service’s benefits described by Banwari Mittal?
a. Distribution
b. Abstractness
c. Generality
d. Non-searchability
e. Mental impalpability
(a; Challenging; p. 157)

3. 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; Moderate; p. 157)

4. 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; Moderate; p. 159)

5. 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; Moderate; p. 161)

6. 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; Challenging; p. 162)

7. ____________ 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

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