Marketing Management Knowledge Question Test!

Services are consumed simultaneously with their production. Unlike physical goods, which can be produced and stored for later consumption, services are intangible and typically cannot be stored. When a service is provided, it is immediately consumed by the recipient. For example, when a hairdresser cuts someone's hair, the service of hair cutting is consumed in real-time. Therefore, the correct answer is "consumed".

The new-product development process begins with the search for ideas. This is because ideas are the foundation for creating new products. Ideas can come from various sources such as market research, customer feedback, brainstorming sessions, or even inspiration from existing products. Once ideas are generated, they can be evaluated, refined, and developed into new concepts or improved upon to create innovative products. Therefore, the search for ideas is the crucial starting point in the new-product development process.

When a firm is the first to enter the market with a new product, it can enjoy first mover advantages. This means that the firm has the opportunity to establish itself as the leader in the market and gain a competitive edge over later entrants. Being the first mover allows the firm to capture a significant share of the market, build brand awareness, and establish customer loyalty. Additionally, the first mover can benefit from economies of scale, cost advantages, and the ability to set industry standards. Overall, being the first to market provides numerous advantages that can contribute to the long-term success of the firm.

New-to-the-world products are new products that create an entirely new market. This means that these products introduce something completely unique and innovative that has never been seen before, resulting in the creation of a new market segment. These products are not just improvements or variations of existing products, but rather they bring something entirely new to the market, filling a gap that was previously unexplored.

When customers have their complaints satisfactorily resolved, they feel that their concerns have been heard and addressed by the company. This positive experience often leads to a stronger sense of trust and satisfaction, making them more likely to remain loyal to the company. In contrast, customers who were never dissatisfied may not have had the opportunity to experience the company's problem-solving abilities, and therefore may not have developed the same level of loyalty.

The given answer, "retail sector," is the correct answer because it fits logically with the list of service industries provided in the question. The retail sector is a significant part of the economy, consisting of businesses that sell goods and services directly to consumers. It is distinct from the other options, such as insurance salespeople, seasonal workers, and temporary workers, which do not encompass an entire sector but rather specific job roles or types of employment.

Insurance would be an example of a "pure service" because it involves the transfer of risk from one party to another without the exchange of a physical product. Insurance companies provide intangible services by offering financial protection against potential losses or damages. Unlike airlines, car dealers, and copier companies, insurance does not involve the sale or exchange of physical goods. Therefore, insurance fits the definition of a "pure service" where the primary offering is intangible and focused on meeting the customer's needs or solving their problems.

An innovation is any good, service, or idea that is perceived by someone as new. It may have a long history, but it is new to the person who sees it as such.

The word "highly" suggests that the services can vary greatly depending on the provider, timing, and location. Therefore, the correct answer is "variable".

Repositionings refer to existing products that are targeted to new markets or market segments. This means that instead of developing entirely new products, companies modify their existing products to cater to a different set of customers or a new market. This strategy allows companies to expand their customer base and increase their market share without the need for creating completely new products.

The correct answer is awareness. The question is asking about the first stage in the process that adopters of new products go through. The stages are awareness, interest, evaluation, trial, and adoption.

Personal influence refers to the impact that one person has on another's attitude or likelihood of making a purchase. This can occur through direct communication, such as recommendations or testimonials, or through indirect means, such as observing someone's behavior or preferences. Personal influence is a powerful tool in marketing and can greatly affect consumer behavior and decision-making.

A restaurant would be an example of a "hybrid" service because it combines both a product (food) and a service (dining experience) in one. While the other options may involve services, they do not involve the combination of a product and a service in the same way a restaurant does.

Service companies can try to demonstrate their service quality through physical evidence and presentation. This means that in addition to providing tangible evidence of their service quality, such as testimonials or case studies, they also focus on how they present their services to customers. This can include factors like the appearance and professionalism of their employees, the layout and design of their physical locations, and the overall impression they create through their branding and marketing materials. By paying attention to these elements of presentation, service companies can enhance their perceived quality and differentiate themselves from competitors.

Perishability refers to the unique characteristic of services that they cannot be stored, warehoused, or shelved. Unlike physical products, services cannot be inventoried or saved for future use. This means that once a service is not utilized or consumed, it is lost forever. This concept is important for service marketers to understand as it affects their ability to manage supply and demand, pricing, and capacity planning.

The second "gap" in the service-quality model proposed by Parasuraman, Zeithaml, and Berry refers to the difference between management perception and service-quality specification. This means that there may be a disconnect between how management perceives the quality of the service they are providing and the actual specifications or standards set for that service. This gap highlights the importance of aligning management's perception with the defined quality standards to ensure that customer expectations are met.

Service firms need to design marketing communications programs in order to provide consumers with more information about the brand than what they receive solely from the service encounter. This is important because service encounters may not always provide enough information about the brand and its offerings. Marketing communications can include various tools such as advertising campaigns, marketing measures, and ad agencies, which help to effectively communicate the brand's message and create awareness among consumers. By designing comprehensive marketing communications programs, service firms can ensure that consumers have a better understanding of the brand and its value proposition.

New product lines can refer to new products that create an entirely new market, as they introduce innovative offerings that cater to previously unaddressed needs. Additionally, new product lines can also include new products that allow a company to enter an established market for the first time, enabling them to compete in an existing market with their unique offerings. Both scenarios involve the introduction of new products that expand the company's product portfolio and market reach.