Multiple Choice: Place your lettered answer on a page. 1. Rangu read in the newspaper that he could receive a free month's cable television service if he would agree to use the service for two years. The ad had no other stated restrictions and appeared to apply to the entire county in which Jackson lived. When Rangu went by the cable television office, the salesperson there told Rangu that his area of the community was not eligible for the free month offer. If he wanted cable, he had to pay $400 to have the cable service brought to his house. Rangu experienced a problem with:  A. Under-promising and over-delivering B. Marketing communications that were not integrated C. A lack of interactive marketing communications D. Poor vertical communications E. Ignorance of the service marketing mix. 2. Which of the following describes a reason why integrated marketing communications have not been the norm in many companies?  A. Employees circumvent interactive communication norms B. Communication autonomy often leads to employee ambiguity C. Customer empowerment is short-term D. Various parts of the company are responsible for different aspects of communication E. The servicescape is designed to impede external communication 3. Which of the following is NOT a factor that contributes to service communication challenges?  A. Servicescape omniscience B. Management of service promises C. Service intangibility D. Management of customer expectations E. Customer education 4. Mike hurt his back and has to go to physical therapy every other day. He has a series of exercises he is supposed to do on the days he does not see the therapist. After two months, Mike was not feeling any better and complained to the therapist who at that point realized Mike was not performing all of the stretching exercises that he should be at this point in his rehabilitation. Mike had been handed a booklet when he started his therapy. Because he had only been instructed in how to perform some of the exercises in the booklet but not all of them, he had thought he was not to do the others. Mike feels like he has been wasting his time. The service provider has erred by:  A. Inadequate internal marketing communications B. Inappropriate external marketing communications C. Providing inadequate customer education D. Under-promising and over-delivering E. Inadequate management of customer expectations 5. Last summer, Kenta and Sawako spent part of their vacation in St. Louis and Boston, staying at the St. Louis Hilton and the Boston Hilton. When they checked in at the St. Louis Hilton the front desk clerk was very friendly and helpful. However, when they checked in at the Boston Hilton, the front desk clerk was cold and indifferent. The inconsistent front desk clerk behaviors experienced by Kenta and Sawako resulted from:  A. Inadequate management of service promises B. Over-promising in advertising and personal selling C. Inadequate external marketing communication D. Inadequate interactive.

1. Multiple Choice: Place your lettered answer on a page.
1. Rangu read in the newspaper that he could receive a free
month's cable television service if he would agree to use the
service for two years. The ad had no other stated restrictions
and appeared to apply to the entire county in which Jackson
lived. When Rangu went by the cable television office, the
salesperson there told Rangu that his area of the community was
not eligible for the free month offer. If he wanted cable, he had
to pay $400 to have the cable service brought to his house.
Rangu experienced a problem with:
A. Under-promising and over-delivering
B. Marketing communications that were not integrated
C. A lack of interactive marketing communications
D. Poor vertical communications
E. Ignorance of the service marketing mix.
2. Which of the following describes a reason why integrated
marketing communications have not been the norm in many
companies?
A. Employees circumvent interactive communication norms
B. Communication autonomy often leads to employee ambiguity
C. Customer empowerment is short-term
D. Various parts of the company are responsible for different
aspects of communication
E. The servicescape is designed to impede external
communication
3. Which of the following is NOT a factor that contributes to
service communication challenges?
A. Servicescape omniscience
B. Management of service promises
C. Service intangibility
D. Management of customer expectations
E. Customer education
4. Mike hurt his back and has to go to physical therapy every
other day. He has a series of exercises he is supposed to do on

2. the days he does not see the therapist. After two months, Mike
was not feeling any better and complained to the therapist who
at that point realized Mike was not performing all of the
stretching exercises that he should be at this point in his
rehabilitation. Mike had been handed a booklet when he started
his therapy. Because he had only been instructed in how to
perform some of the exercises in the booklet but not all of them,
he had thought he was not to do the others. Mike feels like he
has been wasting his time. The service provider has erred by:
A. Inadequate internal marketing communications
B. Inappropriate external marketing communications
C. Providing inadequate customer education
D. Under-promising and over-delivering
E. Inadequate management of customer expectations
5. Last summer, Kenta and Sawako spent part of their vacation
in St. Louis and Boston, staying at the St. Louis Hilton and the
Boston Hilton. When they checked in at the St. Louis Hilton the
front desk clerk was very friendly and helpful. However, when
they checked in at the Boston Hilton, the front desk clerk was
cold and indifferent. The inconsistent front desk clerk behaviors
experienced by Kenta and Sawako resulted from:
A. Inadequate management of service promises
B. Over-promising in advertising and personal selling
C. Inadequate external marketing communication
D. Inadequate interactive marketing communications
E. Inadequate internal marketing communications
6. Which of the following is NOT a category of strategy that
service providers can use to match service promises with
service delivery?
A. Integrate the service dimensions
B. Improve customer education
C. Manage service promises
D. Manage customer expectations
E. Manage internal marketing communications

3. 7. A commercial for Carnival Cruises shows a group of friends
scuba diving, rock climbing, dancing, and having a really great
time. Which strategy for tangibilization is Carnival using in this
commercial?
A. Illumination
B. Physical representation
C. Allusion
D. Documentation
E. Visualization
8. Internet service providers that offer subscribers their choice
of hook-up speed and type of spam blockers are:
A. Making realistic promises
B. Creating tiered-value service offerings
C. Communicating with customers
D. Managing horizontal communications
E. Exceeding customer expectations
9. Creating tiered-value service offerings is a strategy for:
A. Personal selling
B. Managing customer expectations
C. Communicating with customers
D. Managing horizontal communications
E. Exceeding customer expectations
10. Emory Vision Center has a packet of information that it
sends to people who are interested in LASIK surgery. The
center also has a doctor available to speak to organizations
about how vision can be corrected. In addition, it publishes a
newsletter called TheVisionary in which it offers family
discounts, clarifies patient expectations and notes awards and
honors the center receives. The center also manages a web site
that contains news on the latest innovative research techniques.
Through its communications with current and potential patients,
Emory Vision Center is:
A. Managing internal marketing communications

4. B. Resetting customer standards
C. Managing customer education
D. Leveraging social media
E. Creating effective upward communication
11. The process for installing Leo's new CD player took almost
four hours, which Leo spent sitting in the waiting room of J.J.'s
Auto Sound. Leo paid _____ costs for the installation of his
new CD player.
A. Convenience
B. Fiscal
C. Physiological
D. Time
E. Search
12. After moving to Florida, Kaori opened both a savings and a
checking account at Benford Bank. Although Benford had a
higher minimum balance requirement for free checking than the
other two banks she considered, Kaori chose Benford because it
was located closer to her home than the other banks. Kaori
would rather expend other costs than _____ costs.
A. Convenience
B. Monetary
C. Psychological
D. Time
E. Search
13. In which of the following service industries are you most
likely to find the service provider using fee for service pricing?
A. Apartment rental business
B. Management consulting business
C. Cleaning service industry
D. Airline industry
E. Internet service providers
14. Pizza Hut, Uncle Sam's, Domino's, and Papa John's all

5. deliver pizza in Cartersville, Georgia, a town of about 30,000.
As a result, one would expect all of the pizza delivery services
to use _____-based pricing.
A. Standardized
B. Simultaneous
C. Competition
D. Supply
E. Cost
15. _____ occurs in markets with a high concentration of
sellers. Any price offered by one company will be matched by
its competitors in order to avoid giving the low-price seller a
distinct advantage.
A. Cost-plus pricing
B. Price signaling
C. Value pricing
D. Price lining
E. Price standardization
16. Because most people like to get tattoos and body piercings
on the weekends, a tattoo parlor in Portland, Maine, offers a
reduced rate Monday to Thursday for all of its services. Prices
on Friday and Saturday are 45 percent higher than they are
during the rest of the week. The tattoo parlor is using a(n)
_____ pricing strategy.
A. Odd
B. Synchro-
C. Discounting
D. Prestige
E. Complementary
17. All of the following are situations in which a penetration
pricing strategy would be appropriate EXCEPT:
A. Sales volume of the service is very sensitive to price
B. Economies in unit costs can be achieved by operating at
large volumes
C. A service faces threats of strong potential competition very

6. soon after introduction
D. There is no class of buyers willing to pay a higher price to
obtain the service
E. The service is a major improvement over past services
18. A prestige pricing strategy is appropriate when customers
define value as:
A. All that I get for all that I give
B. Everything I want in a service
C. Low price
D. Reliable service
E. The quality I get for the price I pay
19. Which of the following is NOT an example of an effective
pricing strategy to use when the customer defines value as "all
that I get for all that I give?"
A. Price framing
B. Price skimming
C. Complementary pricing
D. Results-based pricing
E. Price bundling
20. If you visit a county or state fair, you will pay a basic
admission fee plus other fees if you want to enjoy any of the
amusement rides. County and state fairs that price this way are
using:
A. Synchro-pricing
B. Two-part pricing
C. Mixed bundling
D. Contribution margin pricing
E. Contingency pricing