Services Marketing: Integrating Customer Focus Across the Firm 7th Edition Test Bank

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Chapter 01 Introduction to ServicesAnswer KeyMultiple Choice Questions1.In the simplest terms, _____ are deeds, processes, and performances.A.AttributesB.ExperiencesC.ServicesD.GoodsE.BenefitsAccessibility: Keyboard NavigationBloom: RememberDifficulty: EasyLearning Objective: 01-01 Explain what services are and identify important trends in services.2.The maintenance contract offered by Sears on its Kenmore refrigerators, dishwashers, and microwavesis an example of a(n) _______.A.ServiceB.ExperienceC.AttributeD.GoodE.BenefitAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-01 Explain what services are andidentify important trends in services.3.The core offerings of hospitals, hotels, and banks are primarily deeds and performances and thereforeare_________________.A.ServicesB.ExperiencesC.AttributesD.GoodsE.BenefitsAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-01 Explain what services are and identify important trends in services.

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4.When they go away on vacation, some dog owners choose to leave their dogs inposh pet resorts thatoffer a variety of activities for the dogs, such as swimming pool frolics, nature walks, and hayrides. Thedog owners pay around $17 per night for basic boarding at the pet resorts and up to an additional $20for the other activities, which would be collectively classified as:A.GoodsB.ValuesC.ServicesD.SatisficersE.AttributesAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-01 Explain what services are andidentify important trends in services.5._____ is a key determinant of whether an offering should be classified as a product or a service.A.PhysicalityB.Audience passivityC.IntangibilityD.PerceptionE.AbstractionAccessibility: Keyboard NavigationBloom: RememberDifficulty: EasyLearning Objective: 01-01 Explain what services are and identify important trends in services.6.Which of the following is an intangible component of a car repair shop?A.Replacement partsB.Employee uniformsC.Barrel for storing recyclable motor oilD.The training the mechanic has receivedE.Customer waiting areaAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearningObjective: 01-01 Explain what services are and identify important trends in services.7.Which of the following is an example of a tangible component provided by a hotel?A.Wake-up callB.Guest roomsC.Room serviceD.Expresscheck-outE.Guaranteed reservationsAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: Easy

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Learning Objective: 01-01 Explain what services are and identify important trends in services.8.Which of the following is NOT anexample of a service business?A.Amusement parkB.HotelC.BankD.Department storeE.Paper millAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-01 Explain what services are andidentify important trends in services.9.Extron Electronics makes coaxial cables for connecting computers to all types of peripheral devices likeprinters, modems, and fax machines. For the benefit of its customers, Extron provides a laminated cardwith pictures of all the possible cable connections that a customer could need. With this card, acustomer can order from one to any number of connectors with as many feet of cable as is needed.Orders can be placed using a toll-free number, a fax number or an e-mail address. Company reps arealso available 24-hours a day in case the customer is not sure which drawing on the card matches his orher needs. Orders are shipped within 48-hours of receipt. If a customer is not completely satisfied withhis or her order, Extron has a 100 percent satisfaction guaranteed return policy. Which of the followingtrends that has influenced the development of services marketing concepts and strategies as illustratedby Extron's focus on customer service?A.The increasing importance of service industries to the U.S. and world economiesB.The increase of government regulation of service industriesC.The growth in information-based technologyD.Increased competition in professional servicesE.Manufacturing firms are placing increased emphasis on providing servicesAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: ModerateLearning Objective: 01-02 Explain the need for special service marketing concepts and practices and why the need has developed and isaccelerating.10.Which of the following trends has directly influenced the development of services marketing conceptsand strategies?A.The decreasing importance of service industries to the U.S. and worldeconomiesB.The growth in information-based technologyC.Decreased competition in professional servicesD.The fact that manufacturing firms are placing increased emphasis on providing servicesE.None of the aboveAccessibility: Keyboard NavigationBloom: RememberDifficulty: ModerateLearning Objective: 01-01 Explain what services are and identify important trends in services.

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11.On his way to work today, Terry saw a billboard for a physician's group that specialized in vascularsurgery. In his local newspaper there was a full-page ad for a medical clinic that performed similarsurgery. Then in his mail, he got a brochure from yet another medical clinic asking him if he wanted toget rid of ugly varicose veins. Which trend that influenced the development of services marketingconcepts and strategies is illustrated here?A.The increasing importance of service industries to the U.S. and world economiesB.The increase of government regulation of professional service industriesC.The growth in database marketingD.Increased competition in professional servicesE.Professional firms are placing increased emphasis on providing servicesAccessibility: Keyboard NavigationBloom:UnderstandDifficulty: EasyLearning Objective: 01-01 Explain what services are and identify important trends in services.12.Which of the following statements about services is true?A.A service economy produces services at the expense ofother sectors.B.Service jobs are low paying and menial.C.Service production is labor intensive and low in productivity.D.Service is a necessary evil for manufacturing firms.E.Marketing and managing services presents issues andchallenges not faced in manufacturing andpackaged goods companies.Accessibility: Keyboard NavigationBloom: RememberDifficulty: EasyLearning Objective: 01-02 Explain the need for special service marketing concepts and practices and why the need has developed and isaccelerating.13.Without good mailing lists, businesses cannot engage in effective direct-marketing advertising. Onaverage 20 percent of the U.S. population moves annually. Return Path is a company that provideschanges ofaddresses to businesses. It takes a business's mailing list, compares it to address changes thatit gathers daily in its database and makes any necessary corrections. Return Path is a part of which trendin the services marketing industry?A.The increasing importance of service industries to the U.S. and world economiesB.The decrease of human interaction as a result of widespread use of technology-based servicesC.The growth in the use of technology-based servicesD.Increasedcompetition in the direct-mail industryE.The fact that direct marketing firms are placing increased emphasis on providing servicesAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-03 Explore theprofound impact of technology on service.

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14.Gina and Henry were having breakfast when they decided they wanted to have pizza and watch a moviethat night. When she got home from work, Gina turned on her computer, logged on to the Netflix site,and chose the movie Moneyball to view via online video streaming. Next she logged on to her favoritepizza restaurant's Web site and ordered a large pepperoni pizza and a bottle of soda to be delivered at6:45 p.m. Gina and Henry enjoyed their evening. Which trend that influenced the development ofservices marketing is illustrated here?A.The increasing importance of service industries to the U.S. and world economiesB.The decrease of human interaction as a result of widespread use of technology-based servicesC.The growth in the use of technology-based servicesD.Increased competition in the entertainment industryE.The fact that manufacturing firms are placing increased emphasis on providing servicesAccessibility: KeyboardNavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-03 Explore the profound impact of technology on service.15.Which of the following statements has been suggested as a plausible explanation for the customerperception that service quality is declining?A.Technology-based services, which are superior to human-based services, are not being implementedenoughB.Services are leveling the playing field and consistently trying to offer the same level of service toeverycustomerC.Companies are decreasing their reliance on self-service and increasing the use of human interactionin the performance of servicesD.Customer expectations are higher because of the excellent service they receive from somecompaniesE.Even though it is Easy to provide consistent, high-quality service, many companies do not want todo itAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: ModerateLearning Objective: 01-02 Explain the need for special servicemarketing concepts and practices and why the need has developed and isaccelerating.16.Which of the following statements has been suggested as a plausible explanation for the customerperception that service quality is declining?A.Increasing use of technology is perceived by many customers as less service because there is nohuman interactionB.Companies provide unclear tactics for customers to follow when dealing with service providersC.Delivering consistent, high-qualityservice becomes routineD.Customers have no concept of what conditions produce to quality serviceE.Too many talented employees are left mired in front-end jobs that do not challenge themAccessibility: Keyboard NavigationBloom:UnderstandDifficulty: ModerateLearning Objective: 01-02 Explain the need for special service marketing concepts and practices and why the need has developed and isaccelerating.

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17.Which of the following statements about how technology has positively influenced service is true?A.Technology provides approaches for delivering existing services in more accessible, convenient,productive waysB.Technology facilitates basic customer service functionsC.Technology facilitatestransactions by offering a direct vehicle for making purchasesD.Technology provides an easy way for customers to learn and do research about products andcompaniesE.All of the above statements about how technology has influenced service aretrueAccessibility: Keyboard NavigationBloom: RememberDifficulty: EasyLearning Objective: 01-03 Explore the profound impact of technology on service.18.Which of the following statements describes how consumers and employees are responding totechnology-based services?A.Services can readily calm fears that privacy may be sacrificed if technology is usedB.An infusion of technology can lead to an increase in human interactionC.The payback for investments in technology is acertaintyD.Employees are often reluctant to integrate technology into their work livesE.All of the above statements describe how consumers and employees are responding to technology-based servicesAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-03 Explore the profound impact of technology on service.19.The most distinguishing characteristic of services is:A.HeterogeneityB.PerishabilityC.IntangibilityD.ComparabilityE.DivisibilityAccessibility: Keyboard NavigationBloom: RememberDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges and opportunities forservicebusinesses.20.The characteristic of a service that means that it cannot be seen, felt, tasted, or touched is:A.IntangibilityB.HeterogeneityC.DivisibilityD.PerishabilityE.CompatibilityAccessibility: KeyboardNavigation

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Bloom: RememberDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges and opportunities forservice businesses.21.On a recent visit to The Home Depot store, asales associate greeted Madison when she entered thestore, helped her locate the items she needed to repair her gutters and suggested how she could preventgutter problems in the future. The assistance provided by the sales associate illustrates the ______ ofservices.A.IntangibilityB.ComparabilityC.DivisibilityD.PerishabilityE.CompatibilityAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basicdifferences between goods and services and the resulting challenges and opportunities forservice businesses.22.In India weddings are timed to occur when Venus is in the ascendant and Jupiter is strong. This day isdeemed lucky. In 2005, almost15, 000 couples in New Delhi had their wedding on December 25, theday astrologers announced would be the best day for a wedding. The service provided by the astrologersis an excellent illustration of the _____ of services.A.IntangibilityB.ComparabilityC.DivisibilityD.PerishabilityE.CompatibilityAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and theresulting challenges and opportunities forservice businesses.23.Which of the following statements describes a marketing implication that results from the intangibilityof services?A.Services cannot be inventoried.B.Services cannot be easily patented.C.Services cannot be readily displayed.D.The actual costs of a “unit of service” are hard to determine.E.All of the above.Accessibility: Keyboard NavigationBloom: UnderstandDifficulty: ModerateLearningObjective: 01-04 Outline the basic differences between goods and services and the resulting challenges and opportunities forservice businesses.

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24.Which of the following statements describes a marketing implication that results from the intangibilityof services?A.Customers participate in and affect the transactionB.Service quality depends on many uncontrollable factorsC.Services can be readily communicatedD.There is no sure knowledge that the service delivered matches whatwas planned and promotedE.Services cannot be inventoriedAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resultingchallenges and opportunities forservice businesses.25.The characteristic of a service that refers to differences in employees' performances is:A.IntangibilityB.HeterogeneityC.DivisibilityD.PerishabilityE.Simultaneous production and consumptionAccessibility: Keyboard NavigationBloom: RememberDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges and opportunities forservice businesses.26.The first time Barry brought his car to Auto Lube to have the oil changed he was very satisfied with theservice. The service manager consulted him several times while his car was being serviced, asked him ifthere were any problems with the car, recommended when additional services should be performed andanswered questions directly and politely. However, when Barry went back to Auto Lube after threemonths to have his oil changed again, he was not satisfied with the service. The manager spoke to himonlywhen he arrived and when he paid his bill. In addition, the manager was impatient and unfriendlyduring the interaction. Barry's experience at Auto Lube illustrates the _____ of services.A.IntangibilityB.HeterogeneityC.Simultaneous production and consumptionD.PerishabilityE.DivisibilityAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods andservices and the resulting challenges and opportunities forservice businesses.

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27.The first time Alexis went to take golf lessons, she had a golf pro who was very patient with her andwho was able to pinpoint what she was doing wrong without making her feel uncoordinated. Her secondgolf lesson was not nearly as helpful. The golf pro who gave the lesson wanted Alexis to watch what hewas doing and imitate his swing. He was unable to verbalize his instructions. Alexis's experience withthe two golf instructors illustrates the _____ of service.A.IntangibilityB.HeterogeneityC.Simultaneous production and consumptionD.PerishabilityE.DivisibilityAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges and opportunities forservice businesses.28.Two roommates both registered for an introduction to business class. At midterm, oneroommate foundhis instructor so boring that he was thinking of changing his major to history. The other roommate had acharismatic teacher and looked forward to going to class. This heterogeneity of instructiondemonstrates:A.How difficult it is to synchronize supply and demand with serviceB.That customer service depends on employee actionsC.How customers affect each otherD.The fact services cannot be readily communicated or displayedE.Why services cannot beinventoriedAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges and opportunities forservice businesses.29.Atax accountant may provide a different service experience to two different customers on the same daydepending on their individual needs and personalities and on whether she is meeting with them whenshe is fresh in the morning or tired at the end of the day. This is an example of service _____________.A.VersatilityB.HeterogeneityC.Simultaneous production and consumptionD.PerishabilityE.IntangibilityAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges and opportunities forservice businesses.

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30.Parents everywhere are very busy and often cannot spend time with their children. In the Netherlands,children who want a bedtime story can call the telephone service and request to listen to one of twentyprerecorded fairy tales. The phone company charges $7 per story. Because of the prerecording of thestories, this bedtime service reduces the problems typically associated with the _____ characteristic ofservices.A.VersatilityB.HeterogeneityC.Simultaneous production and consumptionD.PerishabilityE.IntangibilityAccessibility: Keyboard NavigationBloom:UnderstandDifficulty: EasyLearning Objective: 01-03 Explore the profound impact of technology on service.31.Which of the following is a marketing implication that results from the heterogeneity of services?A.Services cannot bereturned or resoldB.Services cannot be patentedC.Services cannot be inventoriedD.Service delivery and customer satisfaction depend on employee and customer actionsE.All of the above are marketing implications resulting from theheterogeneity of servicesAccessibility: Keyboard NavigationBloom: RememberDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges and opportunities forservicebusinesses.32.Because of the _____ of services, service producers find themselves playing a role as part of the productitself and an essential ingredient in the service experience for the consumer.A.ComparabilityB.IntangibilityC.HeterogeneityD.Simultaneous production and consumptionE.PerishabilityAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and theresulting challenges and opportunities forservice businesses.

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33.Due to the _____ characteristic of services, customers will frequently interact with each other during theservice production process and may affect each other’s experiences.A.ComparabilityB.IntangibilityC.HeterogeneityD.Simultaneous production and consumptionE.PerishabilityAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basicdifferences between goods and services and the resulting challenges and opportunities forservice businesses.34.The Offshore Sailing School in Jersey City, New Jersey, offers a basic sailing course, which takes placein three days over twoweekends, for $495. Students enrolled in the course attend classroom sessionsthat cover the theory and technology of sailing and receive hands-on sailing instructions in the waterthat introduces them to all fundamental sailing skills. Student participation in the Offshore SailingSchool's classroom sessions and hands-on sailing instructions illustrates the _____ characteristic ofservices.A.VersatilityB.HeterogeneityC.Simultaneous production and consumptionD.PerishabilityE.IntangibilityAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges and opportunities forservice businesses.35.For their wedding anniversary, Beth and Rick wanted to go skydiving. They enrolled in a skydivingclass at the local airport at a cost of $260. After a 30-minute training course in which everything thatwas going to happen to them was carefully explained, Beth and Rick were sent up in an airplane withtwo skydiving experts. Each was placed in a harness arrangement with one of the experts and did whatis called a tandem dive. With a tandem dive, Beth and Rick get to enjoy the experience without havingto worry about when to open the parachute. The skydiving expert does that for them. This tandem jumpillustrates the _____ characteristic of services.A.VersatilityB.HeterogeneityC.Simultaneous production andconsumptionD.PerishabilityE.IntangibilityAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges andopportunities forservice businesses.

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36.Which of the following statements describes a marketing implication that results from the simultaneousproduction and consumption of services?A.Services cannot be returned or resoldB.Servicequality depends on many uncontrollable factorsC.Employees affect the service outcomeD.Services cannot be readily displayed or communicatedE.There is no sure knowledge that the service delivered matches what was planned and promotedAccessibility: Keyboard NavigationBloom: RememberDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges and opportunities forservice businesses.37._____ refers to thefact that services cannot be saved, stored, resold, or returned.A.IntangibilityB.HeterogeneityC.Simultaneous production and consumptionD.PerishabilityE.IncompatibilityAccessibility: Keyboard NavigationBloom:RememberDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges and opportunities forservice businesses.38.In many cultures, weddings are timed to occur on lucky days. In 2011, wedding planners from LasVegas, Nevada, to Mumbai, India, knew long before the auspicious date ofNovember 11th(11/11/11)that this would be one of their busiest days of the year, if not the century. Because other dates wouldjust not be as lucky for the blushing brides and grooms, and simply would not suffice, the weddingplanners had to prepare all year for more weddings on this one date than on any other day throughoutthe year. Thisexample illustrates the _____ characteristic of services.A.VersatilityB.HeterogeneityC.Simultaneous production and consumptionD.PerishabilityE.IntangibilityAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basicdifferences between goods and services and the resulting challenges and opportunities forservice businesses.

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39.An attorney who charges a client for a missed appointment is taking into account the _____characteristic of services.A.HeterogeneityB.Simultaneous production and consumptionC.IncomparabilityD.PerishabilityE.IntangibilityAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basicdifferences between goods and services and the resulting challenges and opportunities forservice businesses.40.Bob Wilson owns and operates Flashdance Skating Rink. Last Monday afternoon, he had rented the rinkout for a birthday party that wascancelled at the last minute due to a flu epidemic that had sickenedthree-fourths of the children who were invited. While Wilson kept the deposit, he did not get the skaterental fees or the snack food money he had anticipated from the rental. Wilson lost money as a result ofthe _____ characteristic of services.A.HeterogeneityB.Simultaneous production and consumptionC.IncomparabilityD.PerishabilityE.IntangibilityAccessibility: Keyboard NavigationBloom:UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges and opportunities forservice businesses.41._______ qualities are characteristics of a product consumers may find impossible to evaluate even afterpurchase and consumption.A.SearchB.CognitiveC.PerceptualD.ExperienceE.CredenceAccessibility: Keyboard NavigationBloom: RememberDifficulty: EasyLearning Objective: 01-04Outline the basic differences between goods and services and the resulting challenges and opportunities forservice businesses.

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42.Which of the following products is LEAST high in experience qualities?A.Plastic surgeryB.A prom bandC.Catered banquetD.Wedding dressE.Pet groomingAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges andopportunities forservice businesses.43.Which of the following is NOT an element of the traditional marketing mix?A.ProductionB.PlaceC.ProductD.PriceE.PromotionAccessibility: Keyboard NavigationBloom:RememberDifficulty: EasyLearning Objective: 01-04 Outline the basic differences between goods and services and the resulting challenges and opportunities forservice businesses.44.In addition to the elements of the traditional marketing mix, the expanded mix for services includes:A.Positioning, personalization, and processB.People, physical evidence, and processC.Personalization, procurement, and peopleD.Profit, production, and psychologyE.People,partnerships, and positioningAccessibility: Keyboard NavigationBloom: RememberDifficulty: EasyLearning Objective: 01-05 Introduce the expanded marketing mix for services and the philosophy of customer focus as powerfulframeworks and themesthat are fundamental to the rest of the text.45.Which of the following is an example of the people element of an airline company's services marketingmix?A.PilotsB.Baggage handlersC.CustomersD.Flight attendantsE.All ofthe aboveAccessibility: Keyboard NavigationBloom: UnderstandDifficulty: Easy

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Learning Objective: 01-05 Introduce the expanded marketing mix for services and the philosophy of customer focus as powerfulframeworks and themes that are fundamental to the rest of the text.46.When Alicia and Jordan dined at Formia Ristorante, a contemporary Italian restaurant in New Jersey,they both enjoyed Formia's coy, smart and embracing atmosphere. Formia creates this atmosphere witha single largedining room that measures 20 by 60 feet and contains 14 roomy tables. Ceiling fansslowly swirl as candlelight dances across the tables that are attentively cared for by servers. Verticalpink and white florid patterns emerge from old wainscoting. Finally, Formia's two-page menu offersguests a range of pasta, chicken, veal, and seafood entrees, in addition to nightly specials that arehandwritten and presented on large index cards. Alicia and Jordan experienced the _____ element ofFormia Ristorante's services marketing mix.A.ProductB.ProductionC.ProcessD.PlaceE.Physical evidenceAccessibility: Keyboard NavigationBloom: ApplyDifficulty: ModerateLearning Objective: 01-05 Introduce the expanded marketing mix forservices and the philosophy of customer focus as powerfulframeworks and themes that are fundamental to the rest of the text.47.Ruth recently visited a day care center that is convenient to her work. Ruth is thinking of letting the daycare workers care for her infant son while she is at work. The first thing Ruth noticed when she walkedin the door of the facility was the smell of urine. There was a dead plant in the window. Toys werestrewn about the floor and Ruth almost tripped over a tricycle. In this example, Ruth experiencednegative aspects of the _____ element of the day care center's services marketing mix.A.ProductB.ProductionC.ProcessD.PlaceE.Physical evidenceAccessibility: Keyboard NavigationBloom:ApplyDifficulty: EasyLearning Objective: 01-05 Introduce the expanded marketing mix for services and the philosophy of customer focus as powerfulframeworks and themes that are fundamental to the rest of the text.

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