An aspect of managing service differentiation is in the company’s service delivery.

• A) False
• B) True
• C)
• D)

The brand of a product can determine its consumer value.

• A) False
• B) True
• C)
• D)

Companies that set a low initial price in order to get their “foot in the door” quickly and deeply, attract a large number of buyers quickly, and win a large market share practice market-skimming pricing.

• A) False
• B) True
• C)
• D)

Co-branding is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. Examples are banking, hotel, airline, retail, tax preparation, and home repair.

• A) False
• B) True
• C)
• D)

We define a service as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.

• A) False
• B) True
• C)
• D)

Value-based pricing is when costs vary directly with the level of product.

• A) True
• B) False
• C)
• D)

Dove marketers can go beyond the brand’s cleansing cream attributes and talk about the resulting benefit of softer skin. This is known as product attributes in brand positioning.

• A) True
• B) False
• C)
• D)

Style is a larger concept than design. Design describes the appearance of a product.

• A) False
• B) True
• C)
• D)

Unsought products are products and services that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

• A) False
• B) True
• C)
• D)

If demand changes greatly, we say the demand is inelastic.

• A) True
• B) False
• C)
• D)

Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

• A) False
• B) True
• C)
• D)

Demand and consumer value perceptions set the floor for prices.

• A) True
• B) False
• C)
• D)

If Canon Camera Company follows a high-price, high-margin strategy, it may attract competition from Nikon, Minolta, and Pentax.

• A) True
• B) False
• C)
• D)

The service-profit chain means the set of all product lines and items that a particular seller offers for sale.

• A) True
• B) False
• C)
• D)

Customer retention is perhaps the best measure of quality—a service firm’s ability to hang on to its customers depends on how consistently it delivers value to them.

• A) False
• B) True
• C)
• D)

An increasing number of retailers and wholesalers have created their own brands—such as Hyper Star offering variety of food products. This is called co-branding.

• A) False
• B) True
• C)
• D)

When a company introduces a new brand name in the same product category, it is called line extension.

• A) False
• B) True
• C)
• D)

Service inseparability means that the quality of services depends on who provides them, as well as when, where, and how they are provided.

• A) False
• B) True
• C)
• D)

Yusra always feels super excited after purchasing trendy clothes from Sapphire Store is an example of a new task buying situation.

• A) True
• B) False
• C)
• D)

Asif regularly purchasing dairy products from his nearest milk shop is an example of a straight rebuy situation.

• A) True
• B) False
• C)
• D)