Chapter 01 Backup quiz

What is the core distinction between goods and services?

• Tangibility

• Price

• Distribution channels

Services are best described as:

• Physical objects

• Acts or performances

• Digital products

The Service-Continuum illustrates:

• How services are priced

• Blending of tangible and intangible elements in offerings

• Service employee hierarchies

Which service characteristic causes challenges in standardization?

• Intangibility

• Heterogeneity

• Perishability

Perishability implies services:

• Can be stored for future use

• Cannot be inventoried

• Degrade physically over time

Inseparability means:

• Service production/consumption occur simultaneously

• Services cannot be separated from marketing

• Services are inseparable from goods

Why is intangibility a marketing challenge?

• Difficulty in pricing

• Inability to demonstrate quality pre-purchase

• Complex distribution

Classifying services by 'degree of customer contact' helps determine:

• Pricing strategy

• Employee training intensity

• Standardization feasibility

A 'people-processing' service (Lovelock) requires:

• Customer physical presence

• Digital platforms

• Minimal employee interaction

The traditional 4Ps are insufficient for services due to:

• Lack of global applicability

• Ignoring human/interactive elements

• Overemphasis on digital channels