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BSM1.If all of the individuals who own a law firm share unlimited liability for the law firm's losses, these individuals are part of a(n)A.close corporation. C."S" corporation.B.general partnership. D.public corporation. 2.The two forms of utility created by physical distribution areA.time and place. C.possession and time.B.place and form. D.form and possession. 3.Cindy's Childcare Center provides child-daycare services for working parents. The route that the childcare services are taking from the producer to the final consumer isA.indirect. B. direct.C.roundabout.D.intermediary. 4.In an attempt to eliminate unfair competition and to make it possible for channel members to operate independently, most countries have establishedA.laws regulating distribution activities. C.tariff systems to increase revenues. B.strict import and export requirements. D.methods of monitoring shipments. 5.Landscaping companies usually coordinate the distribution of their services with the marketing activity ofA.promotion. B. management.C.directing. D.controlling. 6.Which of the following is a guideline that hospital employees should follow to be effective listeners:A.Interrupt often B. Ignore body languageC.Ask questions D.Read directions 7.The law-firm employee didn't listen to the manager's explanation about how to perform a certain task because s/he had done a similar job before. Which of the following factors caused the law-firm employee not to listen effectively:A.Attention span B. Past experiencesC.Age differencesD.Language skills 8.A characteristic of simple memorandums written by business-services employees is that they usually are intended to be read by a(n)A.internal audience. C.planning committee. B.board of directors. D.group of suppliers. 9.Rafael, a business-services employee, was assigned to greet a group of Latin American business travelers. Five minutes after their arrival, he walked up to within two feet of them, smiled while making eye contact, and politely said "Good afternoon. How can I be of service?" What did he do wrong?A.He stood too close to the guests.C.He did not greet the travelers in a prompt manner.B.He did not indicate a willingness to help. D.He gave the impression that he was being interrupted.10.Employees who are unable to respond to questions about the law firm's legal services can affect the client'sA.sourcing strategy. C.image of the business.B.purchasing ability. D.price fixing. 11.Why is distribution usually direct in services marketing?A.The service cannot be separated from its producer.B.Vertical channel integration is used. C.Only wholesalers and retailers are involved.D.Warehousing and storage are involved.12.The number of hours that a law firm is able to bill each week is an example of the firm'sA.services. B. capacity.C.procedures.D.productivity. 13.A pet-grooming business that decides to lease its current building instead of buying it is transferring risk throughA.business organization. C.avoidance.B.insurance. D.contractual agreement. 14.A reason the gross domestic product of the United States continues to grow is becauseA.profit margins continue to increase. C.production costs have been reduced.B.more people are joining the labor force.D.the population has become more mobile.15.Desires for clothes, lawn care, and CDs would be classified asA.economic wants. C.goods. B.services. D.noneconomic wants.16.Darrin's Daycare needs a reliable method for ensuring that children are released to the proper person, not to a stranger. To address this concern, the daycare needs toA.make sure it is headed in the right direction. C.conduct research regarding profit opportunities. B.eliminate process variation. D.reduce unnecessary procedures. 17.What type of strike takes place when the members of one local union go on strike to support the members of another local union who are already on strike?A.Wildcat B. Sit-downC.LockoutD.Sympathetic18.Seasonal unemployment results from changes in the weather or demand for certain products, while cyclical unemployment is related toA.swings in the business cycle. C.industries dependent on calendar cycles. B.the manufacture of more products. D.environmental conditions worldwide. 19.Which of the following is a factor that might reduce consumers' demand for certain services:A.Weather changes C.Lowered prices B.Increased availability D.Extensive promotion20.Doing things that make you feel good about yourself will __________ your self-esteem.A.damage B. hinderC.lower D.raise21.Fulfilling one's obligations in a dependable, reliable manner is known as __________ behavior.A.misleading C.deceptive B.untrustworthy D.responsible22. What type of loan requires collateral?A.Unsecured C.NoteB.Secured D.Signature23.Feedback that you receive from self-evaluation is called __________ feedback.A.internal C.externalB.indirect D.eternal24.Carol is a new employee at Freemont Hospital. Carol is concerned about finishing a report on time. Which of the following is a phrase that her coworker can use to express empathy:A."I'm afraid we're all too busy to help." C."You must feel very stressed right now."B."I know it's due by the first of the month."D."What do you think that you will do about it?"25.Which of the following is a belief you should have about your own behavior if you want to be assertive:A.You have the right to choose the way you respond to your circumstances. B.Circumstances determine the way you should behave.C.You have the right to be aggressive in some circumstances.D.Passive behavior is a good response to aggression.26.Pat tells Tim, "You can always talk to me. I'm here to help." Which of the following coaching characteristics is Pat exhibiting:A.Dependability C.Humility B.Persistence D.Approachability 27.Lisa charges another lawyer to use the extra office in the building she owns. Which of the following is Lisa's source of income:A.Rent C.Dividends B.Salary D.Interest 28.The problem of being overeager is most common among __________ employees.A.experienced C.part-timeB.beginning D.temporary 29.Service businesses use the information collected through the accounting process to prepare accurateA.balance sheets. C.inventory forms.B.purchase orders. D.promissory notes.30.Carpet cleaners regularly evaluate and compare the figures in their original budgets to the actual figures in order toA.establish quotas. C.make adjustments. B.change investments. D.follow procedures.31.Service businesses need to consider the costs associated with providing quality service, which usually include the cost of maintaining aA.fleet of trucks. C.physical facility. B.local warehouse. D.distribution center. 32.In which of the following ways can a service provider take advantage of information about an expanding market:A.By deleting current product lines C.By reducing advertising B.By increasing sales staff D.By buying risk protection insurance33.What do some service businesses use to collect marketing information from consumers who are often unaware that they are providing this information? A.Focus groups C.Personal interviews B.Web sites D.Fax surveys 34.One benefit to a health spa of using computerized databases to sort and organize information about customers' purchases and dollar amounts spent is that the spa can use this information to A.prepare financial reports. C.develop inventory control plans. B.customize its marketing efforts. D.maintain sales strategies. 35.Determine whether the following statement is true or false: Identifying the reason the service business needs to do marketing research is the easiest step in the marketing-research process.A.True, identifying the reason for the research is an easy and inexpensive step.B.True, this step is easy because service businesses know what their research needs are. C.False, identifying the real reason for the research can be a very difficult step.D.False, outside experts must be hired to identify the reason for the research.36.Which of the following is a technique that lawn-care businesses often use to evaluate service quality:A.Qualifying C.Benchmarking B.Profiling D.Interviewing37.Which of the following is a unique feature of services marketing that allows a business to offer services that fit the needs of individuals in its target market:A.Standardization C.Generalization mercialization D.Customization 38.A service being in great demand is a factor that might encourage hair salons toA.decrease operating hours. C.contact competitors. B.adjust prices. D.gather information. 39.Service marketers perform actions that areA.monopolies. C.tangible. B.intangible.D.inventoried.40.Marketing strategies and tactics must always be planned and implemented with the architecture firm's __________ in mind.A.clients C.owners B.executives D.stockholders41.The marketing plan is a plan for a pet-grooming business to reach its marketing objectives throughA.long-term goals. B.short-term goals. C.management and operational tactics.D.product, place, price, and promotion strategies. 42.What does a health care facility try to identify as a result of conducting a situational analysis?A.Revenues and expenses C.Goods and servicesB.Threats and opportunitiesD.Profits and losses 43.If you were trying to convince a service business to use quantitative sales forecasting, which of the following factors would you stress:A.Variety of opinions C.Minimal cost B.Factual basisD.Ease with which findings are understood44.Which of the following types of computer software programs usually contain a thesaurus:A.Presentation C.Word processing B.Graphics and design munications 45.Which of the following is a standard function of most spreadsheet software programs:A.Performing financial calculations C.Managing database filesB.Preparing promotional brochures D.Creating slide presentations 46.An important issue that service businesses often encounter is thatA.most of the inventory consists of highly perishable products.B.the services are generally performed by unskilled labor. C.their sales are limited by the amount they can produce at one time.D.supply usually exceeds demand during peak seasons.47.What can service businesses often obtain to prevent competitors from stealing their new ideas, processes, and slogans?A.Limited franchise C.Lawful monopolyB.Legal protectionD.License agreement 48.What should service businesses do to help employees follow instructions for the use of office equipment and machinery?A.Require hand washing C.Install sprinkler system B.Display first aid posters D.Provide training 49.Many service businesses require that any accidents that occur on the job should beA.disregarded if they are minor. C.written up on company stationery.B.described on an accident report form. D.handled by a physician. 50.Which of the following skills does a project manager need to be able to guide or direct the actions of others in a desired manner:A.Leadership munication B.Decision making D.Goal setting 51.What do hospitals often develop in order to properly maintain their equipment and physical facilities?A.Regular housekeeping plan C.Ongoing security measures B.Routine landscaping serviceD.Continual inspection program 52.Meaningful goals can give you a sense of __________ in your life.A.direction C.uncertainty B.accomplishment D.insecurity53.Since he likes to help others accomplish their personal goals, Gabe should consider a career that involves working withA.nature. C.people. B.data. D.things. 54.One of the important benefits to the job applicant of sending a follow-up letter to the interviewer after being interviewed for a job opening is that the letterA.gives the applicant a chance to ask for more job information.B.helps to keep the applicant's name in front of the interviewer.C.gives the applicant a chance to demonstrate a range of skills.D.establishes a permanent relationship with the business.55.Delia focuses on the good side of things which helps her to positively interact with her customers. Which of the following traits important to the success of employees in services marketing is she exhibiting:A.Positive attitude C.Appropriate behavior B.Professional appearance D.Polite tone of voice56.Which of the following are service industries that offer a wide range of employment opportunities:A.Finance, hospitality, real estate C.Engineering, manufacturing, government B.Wholesaling, telecommunications, scienceD.Retailing, pharmaceuticals, trucking 57.Which of the following is not a benefit to service businesses of using trade publications:A.Trade journals are useful in purchasing.B.Trade journals contain product information.C.Trade journals help to keep a business up-to-date.D.Trade journals are usually provided free of charge. 58.Which of the following is not a time waster:A.Procrastinating C.Building in planning time B.Gossiping with coworkers D.Refusing to delegate59.The owners of a dry-cleaning business decided to ignore the low prices offered by a new competitor and keep their prices at a higher level. What characteristic of effective pricing were the owners forgetting?A.Profitability C.StabilityB.FlexibilityD.Durability 60.When setting prices for services, socially responsible health-care providers tend to beA.indifferent and flexible. C.fair and immoral. B.ethical and fair. D.ethical and indifferent. 61.Which of the following pricing practices is illegal in some countries because it may drive a service provider's competitors' out of business:A.One-price policies C.Price skimming B.Below-cost pricing D.Markup pricing 62.Which of the following is a factor that carpet cleaning businesses consider when pricing their services:A.Labor force C.Perceived valueB.Delivery strategy D.Local culture 63.Marketers frequently use perceptual maps when planning and introducing a new service so that they canA.determine the best methods of distribution.B.determine competitor attributes in customers' minds. C.create the path, from idea to launch.municate with each other during the planning process.64.In which stage of the product life cycle would a service business decide to discount its products to appeal to a different market segment, if sales have been steadily decreasing?A.Maturity C.Withdrawal B.Decline D.Alteration 65.A trend affecting new-service development is that more individuals are communicating personal experiences with services by participating in online discussion groups, and by developing and creating their ownA.blogs. B. cookies.C.brands. D.hyperlinks. 66.A group of employees meeting to review a lawn-care business's sales records for the purpose of identifying product opportunities is an example ofA.brainstorming. B. experimenting.C.negotiating. D.questioning. 67.When the XYZ Company compares its services with the QRS Corporation's services, it is generating product ideas by analyzing itsA.research policies. C.direct competition. B.customers' needs. D.target market. 68.Which of the following is a way that grades and standards can be used:A.To identify employee benefitsC.To develop product brandsB.To determine how products can be usedD.To indicate which media will be used for promotion69.Most pet-grooming businesses develop service standards that are based onA.customer expectations. C.management patterns. B.emotional elements. D.innovative processes.70.Is an oral promise given by the salesperson an express warranty?A.No, an express warranty is a promise expressed in a specific written statement.B.Yes, an express warranty is a limited oral promise given by a salesperson.C.No, an express warranty must be expressed both verbally and in writing.D.Yes, the marketer must fulfill all oral or written promises to the customer.71.Why would a business use a broad product mix?A.To relate the products to the target market C.To decrease legal liabilitiesB.To assure that the product lines are relatedD.To promote one-stop shopping 72.One reason why some service businesses bundle products is toA.price unpopular products below cost. B.offer discounts on products that are selling well.C.promote the sale of expensive supplementary products. D.sell products that customers might not otherwise buy.73.When positioning a service, a business should consider the target market'sA.wants. C.policies. B.strategies. D.benefits. 74.A brand name is easier to use in advertising if the brand name isA.descriptive. C.imaginative.B.more than one word. D.fairly short. 75.Which of the following situations is an example of a customer measuring an assurance quality dimension in a service business:A.Kurt calls his healthcare insurance company and is transferred several times before he can speak with someone about a claim. B.Tim is pleased when a salesperson is knowledgeable and answers his questions about a service confidently and courteously. C.Jana's dry cleaning is always ready for pick-up on Wednesdays at 10:00 a.m., which is the time she was told it would always be ready. D.Ann is comfortable getting her dental work done at Dr. Peabody's office because he has the most current dental equipment. 76.Before the Evergreen Landscaping Company opened for business, it developed guidelines for handling customers' complaints. Now, the business is in a better position to handle the complaints because itA.planned for monetary losses. C.acted upon its customers' suggestions. B.followed government regulations. D.anticipated potential problems. 77.What type of promotion would a service business use to promote the firm's prestige?A.Product promotion C.Public serviceB.Public relations D.Patronage 78.What form of promotion occurs when a service marketer gives current customers a coupon entitling them to a discount?A.Publicity B. Personal sellingC.Sales promotionD.Advertising 79.The particular combination of techniques that a dry cleaner uses to communicate with its customers is known as itsA.sales promotion. C.publicity efforts.B.promotional mix. D.public relations.80.The growth of cable and digital television is providing consumers with more viewing options and is giving insurance companies the ability to deliver promotional messages to __________ audiences.A.young B. massC.target D.educated 81.A government's promotional regulations often address issues about advertising placement, timing, andA.budget. B. graphics.C.pricing. D.content. 82.Service businesses planning to use specialty advertising should consider its disadvantages, which include the fact thatA.it has short-term benefits. C.few businesses use it.B.consumers don't like it. D.the message must be brief. 83.What part of a print ad may include a map to the location of the service business being advertised?A.Identification B. IllustrationC.Headline D.Copy 84.Which of the following is an example of a successful direct-response advertisement:A.A person signs up to participate in a diet program by telephone after viewing an infomercial. B.A movie theater shows several previews of new films and video releases. C.A popular tourist attraction places a billboard in a remote location. D.A local grocer distributes discount coupons to local businesses. 85.A service business's advertising and display efforts should petitive. B. contradictory.C.separate.D.coordinated. 86.What type of service business owner is most likely to benefit from word-of-mouth publicity?A.Retailer B. ManufacturerC.Lawyer D.Farmer 87.To be effective in developing relationships with clients, the service that insurance agents provide must A.meet clients' needs. C.be the same for all clients. B.increase the clients' status. D.include clients' employees. 88.Whenever Tom, an insurance agent, interacts with a client, he always sends the client a thank-you note. The purpose of this technique is toA.demonstrate knowledge about the products. C.give full attention to the client.B.show a personal interest in the client. D.build a clientele for the business. 89.Who is primarily responsible for implementing selling policies for service businesses?A.Salespeople B. CustomersC.ManagementD.Purchasing agents90.Business-services salespeople write sales letters and sales proposals for their customers by using __________ computer software.A.territory mapping C.word processing B.presentation D.database 91.Which of the following is a type of technology that allows customers to purchase and receive services from businesses without dealing with the business's employees:A.Cyberspace B. Smart cardsC.IntranetsD.Satellite dishes92.Many types of unfair and deceptive sales practices are regulated when they tend toA.eliminate competition. C.reduce incentives. B.affect performance. D.decrease profitability.93.What is a primary reason why some customers think that purchasing a service is risky?A.The government might impose legislation.B.They think that the salespeople will try to follow-up with them. C.Service competitors face too much competition.D.They are afraid the service might not meet their expectations. 94.Which phase of the selling process is essential for all business-services salespeople?A.Promoting on-site product demonstrations C.Building prospective client lists B.Establishing relationships with customersD.Overcoming objections to expensive services 95.Which of the following is an open-ended question a salesperson might ask a customer:A."What kind of janitorial services does your business need?" B."You want delivery service for your dry cleaning?" C."Does your child need math tutoring?" D."Do you want to landscape your backyard?" 96.Which of the following is one of the first steps in the customer buying process for services:A.Choose a provider C.Gather information B.Evaluate performance D.Negotiate delivery97.Which of the following methods of handling objections is most likely to offend the customer:A.Yes, but . . . method C.Inquiry method B.Deny-it method D.Show 'em method 98.Suggestion selling is important to business-services salespeople primarily becauseA.it increases total sales and possibly commissions. B.it prepares them to operate their own service business. C.the more business-services salespeople sell, the more they enjoy the job. D.of the opportunity to make important contacts with people.99.One reason it is difficult for a business to maintain quality control for its services is because services areA.time-consuming. B. inadequate.C.exceptional. D.unpredictable. 100.An effective middle manager in an insurance company would do all of the following on a regular basis exceptA.make excellent use of his/her time. C.establish immediate and long-range goals. B.work alongside subordinates. D.use his/her abilities to the best advantage.1.BGeneral partnership. With a general partnership, all partners are liable for the debts of the business. If one partner refuses to pay her/his share of the debts, the other partners will be responsible for paying them. Owners of close, public, and "S" corporations have limited liability.SOURCE:BL:003SOURCE:BA LAP 7—Own It Your Way 2.ATime and place. Utility is the ability of a product to satisfy consumer wants and needs. Time utility is defined as the value added to a product by making it available for purchase at the time it is needed or wanted by consumers. Place utility adds value to products by making them available at locations where they are needed or wanted by consumers. Form utility is changing the state of the product to make it more useful to the consumer. Possession utility is created when ownership of a product is transferred from the seller to the user.SOURCE:CM:001SOURCE:DS LAP 1—Distribution 3.BDirect. Direct is a channel of distribution in which goods and services move directly from the producer to the consumer. Indirect is a channel of distribution in which goods and services move from the producer to the channel members and then to consumers or industrial users. Roundabout is not a method of distribution. Intermediaries are channel members who perform the activities needed in getting a good or service from those who produce it to those who consume it.SOURCE:CM:003SOURCE:MB LAP 3—Channels of Distribution 4.ALaws regulating distribution activities. Most countries throughout the world have established laws regulating distribution activities to eliminate unfair competition and to make it possible for channel members to operate independently. These laws benefit each country's economy because they prevent one business from having an unfair competitive advantage over another business. Therefore, all businesses have an opportunity to succeed. Furthermore, the regulation of distribution gives consumers more choices because they are not forced to buy from only one or two suppliers. Import and export requirements, tariff systems, and methods of monitoring shipments do not eliminate unfair competition or make it possible for channel members to operate independently. SOURCE:CM:005SOURCE:Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 375-376]. Mason, OH: South-Western. 5.APromotion. Landscaping companies usually coordinate the distribution of their services with the marketing activity of promotion in order to make sure that everything they need to provide the services are available when they advertise. Landscaping companies do not want to advertise special discounts or limited-time offers until everything they need to perform the services (e.g., workers, equipment, plants, mulch) are actually available. Advertising too early will upset customers if they cannot immediately obtain the services. Management is not a marketing activity. Directing is a management activity that involves providing guidance to workers and work projects. Controlling is a management function that monitors the work effort.SOURCE:CM:007SOURCE:Kotler, P., & Keller, K. (2006). Marketing management (12th ed.) [pp. 18-20]. Upper Saddle River, NJ: Prentice-Hall. 6.CAsk questions. Effective listeners concentrate on what is being said and ask questions when they don't understand or want clarification. Managers often assume that employees know more than they do and give incomplete or vague instructions. Hospital employees should pay close attention to what is being said and ask questions to make sure they understand. Employees should not interrupt often, only when it is necessary to clarify a point they don't understand. Employees should observe a speaker's body language because nonverbal clues also send a message. Reading directions will not help employees be effective listeners.SOURCE:CO:017SOURCE:Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 206-208]. Mason, OH: South-Western. 7.BPast experiences. People often think they know what someone is going to say before they say it and as a result do not listen well. People's past experiences may influence how well they listen because they think they already know the answer or understand the explanation. Effective listeners try to block out past experiences and focus on what the speaker is saying. Age differences, attention span, and language skills are other factors that may affect how well people listen.SOURCE:CO:119SOURCE:Miculka, J.H. (1999). Speaking for success (pp. 37-41). Cincinnati: South-Western Educational. 8.AInternal audience. Memorandums are a type of simple written report that business-services employees often prepare to provide information to others within the business. Since memorandums are usually intended to be read by an internal audience, they are less formal and shorter than traditional business letters. They often provide information about the progress of current projects or an explanation of upcoming events. Not all businesses have boards of directors or planning committees. However, these are examples of internal audiences that may, or may not, receive memorandums. A group of suppliers is an external audience.SOURCE:CO:094SOURCE:Lesikar, R.V., & Flatley, M.E. (2005). Basic business communication: Skills for empowering the Internet generation (10th ed.) [pp. 97-99]. Boston: McGraw-Hill/Irwin. 9.CHe did not greet the travelers in a prompt manner. Greeting customers requires the demonstration of a customer-service mindset. Therefore, Rafael should have acknowledged the presence of the business travelers immediately upon their arrival, if only to indicate that he would be with them shortly. Latin Americans typically feel comfortable holding conversations in which the participants stand within two feet of each other, and so Rafael's closeness to the business travelers would have been appropriate. Rafael indicated his willingness to help when he politely said, "How can I be of service?" Rafael gave his undivided attention to the travelers upon greeting them by smiling and making eye contact.SOURCE:CO:075SOURCE:Rokes, B. (2000). Customer service: Business 2000 (p. 53). Mason, OH: South-Western.10.CImage of the business. Clients form an image of a law firm as they communicate with its employees. When a law-firm's employees cannot answer questions, clients receive a negative impression. The client's purchasing ability is determined by the amount of his/her disposable income or budget. The client's sourcing strategies are generally determined independent of a specific employee interaction. Price fixing is an illegal activity in which a business charges different prices for similar amounts and types of goods and services.SOURCE:CR:006SOURCE:Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.) [pp. 24-26]. Upper Saddle River, NJ: Prentice Hall.11.AThe service cannot be separated from its producer. In services marketing, distribution is direct because of inseparability, which means that a service cannot be separated from its producer-seller. The service business provides the service directly to the customer. For example, a health care facility provides medical care directly to a patient. Services marketing does not involve warehousing, storage, or wholesalers. Some service businesses are retailers. Vertical channel integration is used in the marketing of goods.SOURCE:DS:071SOURCE:Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 301-304 ]. Boston: McGraw-Hill/Irwin.12.DProductivity. Productivity is the amount and value of goods and services produced (outputs) for set amounts of resources used (inputs). Productivity is difficult to measure in service businesses because tangible products are not produced and the service often varies for each customer. However, service businesses try to measure their productivity by using a variety of methods. The number of hours that a law firm bills each week is an example of productivity. The billable hours indicate that staff members are working for clients and performing tasks that generate income. The more hours that are billed, the more productive the law firm is. The billable hours are not services but an indication of the amount of services provided. Billable hours do not indicate capacity because the firm might be able to increase its capacity by hiring more employees or by working longer hours. The billable hours are not procedures.SOURCE:EC:052SOURCE:Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 103-105). Upper Saddle River, NJ: Prentice Hall.13.DContractual agreement. Contractual agreements are agreements between two or more people that state that one party is to do something in return for something provided by another party. A pet-grooming business pays rent for space, and the lessor agrees to maintain the space and make needed repairs. This agreement transfers risk to the lessor. Insurance shifts certain specified risks to someone else. Business organization refers to the type of structure of the ownership. Avoidance is completely eluding a situation.SOURCE:EC:011SOURCE:EC LAP 3—Lose, Win, or Draw (Business Risk)14.BMore people are joining the labor force. Gross domestic product is the final total value of all goods and services produced within a country's geographic boundaries during a year's time. The population of the United States has been growing steadily over the years. As our population has grown, so has the size of our labor force. Our gross domestic product continues to grow as the size of the labor force increases. Company profits, production costs, and population mobility have no bearing on the calculation of GDP.SOURCE:EC:017SOURCE:EC LAP 1—Gross Domestic Product15.AEconomic wants. Desires for clothes, lawn care, and CDs can only be satisfied by spending money. Therefore, these desires are considered economic wants. Noneconomic wants can be satisfied without spending money. A good is a tangible object that is useful, scarce, and transferable. A service is a productive activity performed by someone else for a fee.SOURCE:EC:002SOURCE:EC LAP 10—Goods and Services16.BEliminate process variation. Since Darrin's Daycare needs a reliable method for ensuring that children are released to the proper person at the end of the day, the business needs to eliminate process variation—a part of operations management. This means the daycare needs to make sure that its end-of-the-day procedures do not vary/change, so no children are released to a stranger by mistake. Making sure the business is headed in the right direction is part of strategic management, not operations management. Conducting research regarding opportunities is part of marketing. Reducing unnecessary procedures, while part of operations management, is not the solution to the daycare's problem in this case.SOURCE:EC:071SOURCE:EC LAP 19—Strictly Business (Business Activities)17.DSympathetic. A sympathetic strike is a union strategy in which employees of one local union walk off the job to support another union that is on strike. A wildcat strike occurs when local union employees refuse to work but do not have the consent of the national union. A sit-down strike occurs when employees stay on the job but refuse to work. A lockout occurs when a company closes the business temporarily, and the employees are not allowed to work.SOURCE:EC:015SOURCE:EC LAP 5—Organized Labor18.ASwings in the business cycle. During a recession, people may delay buying certain kinds of durable goods, such as new homes, cars, or appliances. With slower sales, manufacturers often have to lay off employees until the economy recovers. Even though this is a serious occurrence, employees who have been laid off under these circumstances often get their jobs back when the economy improves, so many try to "wait out" a recession. The manufacture of more products often increases the employment rate. Cyclical unemployment is not related to calendar cycles or to environmental conditions worldwide.SOURCE:EC:082SOURCE:Gottheil, F.M. (1999). Principles of economics (2nd ed.) [p. 511]. Cincinnati: South-Western College.19.AWeather changes. Changes in weather conditions often have an influence on customers' demand for certain services. When the weather is cold and rainy, many people prefer to stay home rather than use local bus service. In cold weather, people do not use pool services or lawn-mowing services. On the other hand, people do not usually visit tanning salons on sunny, warm days or need snow removal services during warm weather. Lowering prices, increasing availability, and increasing promotion tend to increase consumer demand.SOURCE:EC:046SOURCE:Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 293-296). Upper Saddle River, NJ: Prentice Hall.20.DRaise. Any activity or achievement that makes you feel good about yourself will boost your self-esteem. Doing things you don't feel good about could hinder, lower, or damage your self-esteem.SOURCE:EI:016SOURCE:HR LAP 12—Self-Esteem21.DResponsible. Responsible behavior should consider the context of a given situation. Behavior that is responsible in one setting may be inappropriate in another setting. Responsible behavior means being straightforward and honest rather than misleading, deceptive, or untrustworthy.SOURCE:EI:021SOURCE:PD LAP 7—Make the Honor Role (Acting Responsibly)22.BSecured. A secured loan is a loan in which the borrower pledges to the lender some valuable possession as security, or collateral, to guarantee that the loan will be repaid. Items often used as collateral include real estate, stocks, bonds, machinery, and the cash value of life insurance. An unsecured loan, also known as a signature loan, is an amount of money borrowed by an individual or a business simply by signing a promissory note to repay the loan. No collateral is required for this loan. Both secured and unsecured loans are considered notes.SOURCE:FI:002SOURCE:FI LAP 2—Credit and Its Importance23.AInternal. This is information you obtain by constantly monitoring your own actions. External feedback comes from others, directly or indirectly. Eternal is a distractor.SOURCE:EI:003SOURCE:HR LAP 3—Handling Feedback24.C"You must feel very stressed right now." There are many phrases you can use to express empathy. Acknowledging others' stress when you know they are under pressure is one way to let them know that you understand how they feel. Confirming the due date for the report, asking the person what s/he plans to do, or saying everyone is too busy to help do not express empathy and may indicate indifference.SOURCE:EI:030SOURCE:HR LAP 17—Empathy25.AYou have the right to choose the way you respond to your circumstances. Don't excuse yourself by blaming your passive or aggressive behavior on your circumstances. No matter what your circumstances, you have the right to choose the way in which you respond to those circumstances. Take full responsibility for your behavior, and resolve to change it when it is inappropriate. Passive behavior is never a good response to aggression as it usually encourages the aggressive person to continue.SOURCE:EI:008SOURCE:HR LAP 16—Assertiveness26.DApproachability. A coach is a person who enables other people to reach their true potential by helping them to overcome the barriers that are keeping them from doing something they want to achieve. Approachability is the attitude or demeanor that lets another person know that you are open and available to talk to him/her. Persistence is continuing to work at a task or idea until the desired outcome is achieved. Humility is the lack of pride. Dependability is doing what you say you will do.SOURCE:EI:041SOURCE:QS LAP 7—Bring Out the Best27.ARent. Income is money resource owners receive for supplying goods and services. As a resource owner, Lisa is supplying office space and receiving rent payments from the lawyer, so she is receiving income. A salary is a form of income that is money payments for labor. A dividend is the sum of money paid to an investor or stockholder as earnings on an investment. Interest is the money payments for the use of borrowed money.SOURCE:FI:061SOURCE:Kapoor, J.R., Dlabay, L.R., & Hughes, R.J. (2005). Personal finance (pp. 66-67). New York: Glencoe/McGraw-Hill.28.BBeginning. Beginning employees are most likely to be overeager because they want to do well in their new jobs. By being overeager, they run the risk of creating errors, hard feelings, and other needless complications. The problem is less common among experienced employees except for those who have recently assumed new positions/responsibilities within the company. Part-time or temporary employees are not likely to be overeager because they have limited hours in which to do their work.SOURCE:EI:024SOURCE:EI LAP 2—Hustle! (Taking Initiative at Work) 29.ABalance sheets. Service businesses use the information collected through the accounting process to develop reports that indicate their financial condition. One kind of record is the balance sheet which shows the assets, liabilities, and overall financial condition of a business. Service businesses need accurate balance sheets in order to know whether or not they are making a profit. Purchase orders are forms identifying the prices, discounts, dating, and transportation charges applicable to an order issued by a buyer to a seller. Inventory forms are the records used in counting the number and type of items available in inventory. Promissory notes are legal forms signed by a borrower promising to repay a loan.SOURCE:FI:085SOURCE:FI LAP 5—Show Me the Money30.CMake adjustments. A budget is only as successful as the business that evaluates it on a regular basis. When carpet cleaners want to know if they are accomplishing their business goals, budgets show where they are on target and where they are not. By comparing original budget figures to actual figures, managers of carpet-cleaning businesses can find out if they are spending more than allocated on certain activities and then make adjustments. For example, if a carpet cleaner spends most of its advertising budget during the first six months, it knows that it will need to cut back in that area or take money from other activities. Carpet cleaners do not evaluate their original budgets in order to change investments, establish quotas, or follow procedures.SOURCE:FI:106SOURCE:FI LAP 3—Money Tracks (Nature of Budgets)31.CPhysical facility. Although service businesses provide intangibles, they usually operate out of a physical facility such as an office. The cost of maintaining the physical facility must be factored into the cost of providing quality service. Even a small business that provides service in customers' homes needs some sort of physical facility in which to set up telephone and fax lines, house a computer or copier, and store records. Many service businesses do not maintain warehouses, fleets of trucks, or distribution centers. These facilities are usually associated with the sales of tangible items.SOURCE:FI:262SOURCE:Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 221-223). Upper Saddle River, NJ: Prentice Hall.32.BBy increasing sales staff. An expanding market may include an increase in product lines, quality, and sales. Increasing the sales staff allows the service business to provide additional service for the expanding market, which generates sales. An expanding market also implies a positive outlook and potential. Reducing advertising and deleting current product lines usually accompany a negative outlook. Buying risk insurance is good business practice but does not indicate an expanding or a contracting market.SOURCE:IM:001SOURCE:IM LAP 2—Marketing-Information Management33.BWeb sites. When consumers access a service business's web site, they often provide a lot of personal information such as name, address, and even credit card numbers. Businesses often do not inform consumers that they are collecting this information, using it for marketing purposes, or providing it to other businesses. This practice is usually considered unethical because consumers are unaware that the information is being retained for future use. To be ethical, businesses should disclose that they collect this information and how they intend to use it. Then, consumers have an opportunity to decide if they want to reveal personal information. When consumers participate in focus groups, give personal interviews, or answer fax surveys, they are aware that they are providing information.SOURCE:IM:025SOURCE:Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (p. 133). Mason, OH: South-Western.34.BCustomize its marketing efforts. Many health spas use computerized databases to sort and organize information about customers' purchases, dollar amounts spent, etc. The benefit to the health spa is that it can use this information to customize its marketing efforts and appeal to specific customers. For example, a spa might use a database to organize customers according to geographic location and send different promotional pieces to each area. The database allows a spa to target specific customers based on certain criteria. Spas do not use this type of customer information to prepare financial reports, develop inventory control plans, or maintain sales strategies.SOURCE:IM:183SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 594-595). New York: Glencoe/McGraw-Hill.35.CFalse, identifying the real reason for the research can be a very difficult step. The reason that this is true is that the service business cannot always identify a concern, situation, or problem accurately in order to determine what information it needs. While outside experts may be helpful in some cases, it is not always necessary to hire them. Usually, personnel within the service business are in the best position to identify the reason why the service business needs to use marketing research because of their familiarity with the service business.SOURCE:IM:010SOURCE:IM LAP 5—Nature of Marketing Research36.CBenchmarking. Benchmarking involves establishing certain ratings, or standards, and then comparing future research results to the original. For example, a new lawn-care business might survey its customers to find out how they feel about such service issues as service promptness, lawn appearance after service, attitude of the employees, etc. Once it determines the original rating, or benchmark, for each function, the lawn-care business can conduct future surveys to find out if customers think service is improving. Profiling involves identifying the main characteristics of a group that creates a picture of the group. Qualifying is determining if potential customers have the authority to purchase and the ability to pay. Interviewing is a research technique that might be used to obtain information to compare to the original benchmarks.SOURCE:IM:204SOURCE:Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 88-89]. Champaign, IL: Human Kinetics.37.DCustomization. A unique feature of services marketing is that is allows businesses to customize their services to fit the needs of individuals in the target market. Businesses that sell services have the opportunity to more easily customize their products to meet individual needs than businesses that sell tangible goods. For example, a suburban dry cleaner identifies its target market as families living in the local community. Then, it develops specific services to meet their unique needs, such as free delivery, repair and alterations, one-hour pressing, etc. The business is able to provide customized service and treat its target market as individuals. Generalization and standardization involve developing and marketing services that fit the needs of a mass audience rather than individuals. Commercialization is the point at which a product goes into full-scale production, the marketing plan is put into place, service and sales training are done, and the product's life cycle begins.SOURCE:IM:214SOURCE:Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 147-151). Upper Saddle River, NJ: Prentice Hall.38.BAdjust prices. Deciding on a service's price is not always easy. Hair salons must consider many factors, some of which encourage hair salons to adjust prices. For example, if a product is in great demand, hair salons might increase the price because clients are willing to pay the price to obtain the service. If a service is in great demand, a business would extend its operating hours in order to increase sales. Hair salons do not contact competitors about prices. By gathering information, a hair salon might learn that a product is in great demand.SOURCE:MK:002SOURCE:MK LAP 1—Work the Big Six (Marketing Functions)39.BIntangible. The performance of a service is intangible because it cannot be detected through the senses (e.g., touched or smelled). Services include tangible components, such as getting an eyebrow wax at a hair salon or eating an ice-cream cone, but the actual act of providing the service is intangible. Monopolies are economic conditions in which a market is controlled by one supplier. This is not the case with services because there are always substitute services readily available. Physical goods such as raw materials or parts are inventoried, or counted, so that a business knows how much stock it has on hand. This is not possible with services because it is impossible to keep an inventory of the number of actions that will be performed.SOURCE:MK:011SOURCE:Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (p. 15). Upper Saddle River, NJ: Prentice Hall.40.AClients. To be successful, strategies and tactics must always be aimed at satisfying the purchasers of the firm's products. When an architecture firm's clients are satisfied, they tend to buy more. This, in turn, will satisfy the architecture firm's executives, owners, and stockholders.SOURCE:MP:001SOURCE:IM LAP 7—Pick the Mix41.DProduct, place, price, and promotion strategies. The marketing plan consists of four strategies—product, place, price, and promotion. The marketing plan does not involve management and operational tactics. Long- and short-term goals are specific marketing objectives that may take a year or three-to-five years to accomplish.SOURCE:MP:007SOURCE:Meyer, E.C., & Allen, K.R. (2000). Entrepreneurship and small business management: Teacher's manual (2nd ed.) [p. 163]. New York: Glencoe/McGraw-Hill.42.BThreats and opportunities. One of the purposes of conducting a situational analysis is to identify the threats and opportunities in the business environment. The changing nature of the business environment brings with it many opportunities for health-care facilities as well as potential threats. For example, a change in customers' physical condition might present an opportunity for some health-care facilities but be a threat to other facilities. In order to be prepared to take advantage of the opportunities or deal with the threats, a health-care facility must first analyze the environment to find out exactly what those opportunities or threats are. A health-care facility does not conduct a situational analysis to identify profits and losses, revenues and expenses, or goods and services.SOURCE:MP:008SOURCE:Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 41-44]. Mason, OH: South-Western.43.BFactual basis. The primary advantage of quantitative, sales-forecasting methods as compared with qualitative forecasting methods is that they provide more exact data, because quantitative forecasting is based on facts rather than on opinion. The costs, however, are usually higher because the service business will need to pay people to conduct surveys, to purchase the results of outside surveys, to subscribe to various publications, or to buy computer systems to assemble and analyze the data. Although a variety of resources can be used as sources of information, the data are based on facts rather than opinions. Individuals often experience more difficulty understanding numerical data than understanding others' opinions.SOURCE:MP:013SOURCE:IM LAP 3—Nature of Sales Forecasts44.CWord processing. Most word-processing software programs contain a thesaurus, which is a listing of words and their synonyms. This feature enables users to look up alternative words that have the same meaning. The thesaurus helps business employees to prepare accurate written documents and use words that exactly describe or explain the message. Communications programs allow computers to communicate with other computers. Graphics and design software is used to create artwork and drawings rather than text. Presentation software is used to create multimedia presentations.SOURCE:NF:007SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 162-167]. Woodland Hills, CA: Glencoe/McGraw-Hill.45.APerforming financial calculations. Spreadsheet software enables businesses to perform accounting, financial, and other mathematical functions. A user can enter numerical information in rows and columns, and the software will perform various calculations or analyses. For example, spreadsheet programs can calculate sales forecasts and develop budget projections. Presentation software is used to create slide presentations. Desktop publishing software is used to prepare promotional brochures. Database software is used to manage database files.SOURCE:NF:010SOURCE:Longenecker, J.G., Moore, C.W., & Petty, J.W. (2000). Small business management: An entrepreneurial emphasis (11th ed.) [pp. 461-463]. Cincinnati: South-Western College.46.CTheir sales are limited by the amount they can produce at one time. Since services are intangible activities that are performed by people for money, supply is limited to the amount of work that each person produces. Therefore, sales are limited. Most service businesses do not inventory products. Because there are many types of service businesses, it cannot be assumed that supply usually exceeds demand during peak seasons. In addition, many services are performed by highly skilled people (e.g., physicians, accountants).SOURCE:NF:044SOURCE:Hoffman, K., & Bateson, J. (2002). Essentials of services marketing: Concepts, strategies, & cases (2nd ed.) [pp. 28-29]. Orlando, FL: Harcourt.47.BLegal protection. Businesses are often able to obtain legal protection for their innovative ideas, processes, and slogans, which prevents competitors from stealing them. These ideas, processes, and slogans are the business's intellectual property. As such, they are owned by the business. In many cases, businesses can obtain legal protection in the form of patents or copyrights that stop a competitor from using the property without permission. A licensing agreement and a franchise are legal ways for one business to sell or use another business's goods and services. Monopolies are usually illegal and occur when a market is controlled by one supplier, and there are no substitute goods or services readily available.SOURCE:OP:124SOURCE:Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 170-177]. Cincinnati: South-Western.48.DProvide training. Depending on the type of service business, employees may be required to use equipment and machinery that may be complicated to operate. To help employees follow instructions and use the equipment and machinery in a safe manner, it is often necessary to provide training. During training, employees learn correct operating procedures which will minimize the possibility of accidents or injuries. Displaying first aid posters or installing a sprinkler system will not help employees follow instructions for the use of equipment and machinery. Depending on the equipment or machinery, employees may be required to wash their hands before or after use.SOURCE:OP:006SOURCE:Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.) [pp. 274-275]. Weimar, TX: Culinary and Hospitality Industry Publications Services.49.BDescribed on an accident report form. The service business should keep a written record of accidents, injuries, and illnesses for its own use. Most service businesses are also required to record such information on forms provided by the Occupational Safety and Health Administration. Even minor cuts or injuries should be treated because of the danger of infection. Accident report forms, rather than company stationery, should be used to ensure all relevant information is collected and recorded. Not all accidents require a doctor's attention.SOURCE:OP:009SOURCE:RM LAP 3—Handling Accidents50.ALeadership. For a project manager, one of the most important skills is the ability to guide or direct the actions of others in a desired manner. One of the project manager's main roles is to lead the group to achieve the project's goal. Managers who have good leadership skills are able to motivate group members and persuade members to follow their directions. Project managers also need to have decision-making skills and communication skills. However, leadership skills enable managers to guide or direct the actions of others. The group usually sets the goals of the project, although the manager guides the discussion.SOURCE:OP:002SOURCE:QS LAP 18—Make It Happen51.DContinual inspection program. Many hospitals develop continual inspection programs in order to identify and correct any problems. Hospitals often have programs that call for the inspection of each area on a regular basis. For example, the lights may be checked weekly while the heating and cooling system is inspected twice a year. By continually inspecting equipment and facilities, a hospital is able to prevent many breakdowns from occurring. Continual inspection may identify problems with housekeeping, landscaping, and security that the hospital would then be able to correct.SOURCE:OP:032SOURCE:Stutts, A.T., & Wortman, J.F. (2006). Hotel and lodging management: An introduction (2nd ed) [pp. 98-99,195]. Hoboken, NJ: John Wiley & Sons, Inc.52.ADirection. Goals are objectives that people want to fulfill. Having meaningful goals can point you in a specific direction and also help to keep you on target. Generally, having goals tends to reduce feelings of insecurity and uncertainty. Goals must be achieved in order to give you a sense of accomplishment.SOURCE:PD:018SOURCE:HR LAP 6—Goal Setting53.CPeople. When considering a career path, Gabe needs to consider his skills, interests, and values. Since Gabe gains satisfaction from being with and helping others, he might consider a career that requires a lot of interaction with people. Careers that focus on the gathering or manipulation of words and numbers are related to data or information. Environmental occupations often involve working with nature. Careers that relate to things involve working with tangible items (e.g., carpenter).SOURCE:PD:023SOURCE:Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 32-34). Woodland Hills, CA: Glencoe/McGraw-Hill.54.BHelps to keep the applicant's name in front of the interviewer. There are several benefits to the job applicant of sending a follow-up letter after a job interview. One of the most important ones is that the letter reminds the interviewer of the job applicant. Other benefits include demonstrating the applicant's courtesy and continued interest in the job, as well as providing an opportunity to add important information about the applicant's skills. A follow-up letter helps to build a relationship with the business but does not automatically establish a permanent relationship. A follow-up letter gives the applicant a chance to provide information, but it should not be used to ask questions. The only skills that are being demonstrated are in letter writing.SOURCE:PD:029SOURCE:Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 71-72]. Mason, OH: South-Western.55.APositive attitude. Attitude refers to the way a person looks at life. Employees with positive attitudes feel good about themselves, their jobs, and other people—which results in positive interactions with customers. In turn, this leads to career success. Behavior refers to the manner in which individuals act, and appropriate behavior usually means exhibiting good conduct. Appearance is the physical image that a person presents to others, and professional appearance includes such things as cleanliness, hairstyle, and clothing. Employees who use a polite tone of voice speak to others in a manner that is friendly and cheerful.SOURCE:PD:049SOURCE:Kimbrell, G., & Vineyard, B.S. (1998). Succeeding in the world of work: Teacher's wraparound edition (6th ed.) [pp. 195-197]. New York: Glencoe/McGraw-Hill.56.AFinance, hospitality, real estate. These service industries provide a wide range of employment opportunities to individuals who are interested in working with people and providing services to customers. Employees in these industries often have the most contact with customers and provide services directly. Engineering, manufacturing, wholesaling, retailing, and pharmaceuticals are not considered to be primarily service industries. Trucking is primarily a service industry; and certain aspects of government, telecommunications, and science are considered to be service-oriented.SOURCE:PD:056SOURCE:Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus across the firm (2nd ed.) [p. 3]. Boston: Irwin/McGraw-Hill.57.DTrade journals are usually provided free of charge. Usually, there are costs associated with using trade publications. A subscription to the publication may be included in the membership fee, or there may be a separate subscription fee. However, the value of the publication often far exceeds the cost. Service businesses subscribe to them because they contain the most recent information about products, processes, and trends.SOURCE:PD:036SOURCE:CD LAP 1—Trade Associations/Professional Organizations58.CBuilding in planning time. Time management won't happen by itself. You must allocate time in your schedule for planning. Many of the things that we do during the day waste time. They might include gossiping with coworkers, starting and stopping work in order to take phone calls, talking with drop-in visitors, procrastinating, and refusing to delegate.SOURCE:PD:019SOURCE:OP LAP 1—About Time (Time Management in Business)59.BFlexibility. The owners of the dry-cleaning business were forgetting that prices must be flexible, that they are not written in stone. Dry-cleaning businesses need to be willing to adjust their prices depending on the circumstances faced by the business. If a competitor is offering lower prices on similar products, a dry-cleaning business should be flexible with its pricing in order to keep its customers. Durability is how long a product will last. Profitability is the degree or level of profit of a business or a product. Stability is resistance to change.SOURCE:PI:001SOURCE:PI LAP 2—Pricing60.BEthical and fair. Social responsibility is the duty of a business to contribute to the well-being of society. By being ethical and fair when setting its prices, a health-care provider is being socially responsible—this may include being flexible in some situations. Health-care providers that act indifferently or immorally are not being socially responsible.SOURCE:PI:015SOURCE:Lamb, C.W., Hair, J.F., & McDaniel, C. (2003). Essentials of marketing (3rd ed.) [pp. 520-521]. Mason, OH: South-Western.61.BBelow-cost pricing. When a service provider decides to price its products below cost, it makes it difficult for other service companies to compete with the low prices, which they cannot afford to charge and might eventually force them out of business. To prevent this situation from happening, many governments have laws that make it illegal for service businesses to use below-cost pricing. When a service business charges one price for all items it sells, it is using a one-price policy. Price skimming is a pricing strategy that involves setting prices higher than those of the competition. Markup is the difference between the cost of a product and its selling price.SOURCE:PI:017SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 535-537, 544, 549-550). New York: Glencoe/McGraw-Hill.62.CPerceived value. Some services have more value or worth to customers than others; therefore, businesses consider customers' perceived value when pricing services. Businesses must answer questions about the value of their services such as what benefits do they provide and how important are they to customers. If customers believe services are valuable, they will be willing to pay more for them than services they think are not significant. For example, some customers are willing to buy carpet cleaning services only if they are on sale, whereas others feel the service is necessary and will pay full price. Businesses usually do not consider local culture, delivery strategy, or the labor force when pricing their services.SOURCE:PI:032SOURCE:Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus across the firm (2nd ed.) [pp. 441-443]. Boston: Irwin/McGraw-Hill.63.BDetermine competitor attributes in customers' minds. When planning a new service, marketers use perceptual maps to create a visual picture of the service's unique characteristics, as well as those of its competitors' services. This helps to identify threats and opportunities, and to define the gap between what management believes that competitors offer versus how consumers see these same services. Perceptual maps are not used to address distribution in and of themselves, even though a unique form of distribution could find its way onto a perceptual map if it is a distinguishing characteristic of the service. Perceptual maps do not create the path from idea to launch of the service, but they create a visual scenario that illustrates the relative niches in consumers' minds occupied by service characteristics. The use of a perceptual map can often enhance communication among marketers during the planning process because of its ability to clarify; however, it is thought of as a planning tool rather than a communication tool.SOURCE:PM:071SOURCE:Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 159-162). Upper Saddle River, NJ: Prentice Hall.64.BDecline. The decline stage is the stage of the product life cycle in which sales and profits fall rapidly. When a product is in the decline stage, a business might discount the products, which often appeals to a different, more price-conscious market segment. The maturity stage is the product life cycle stage in which sales peak and then increase at a slower rate or start to decline. Withdrawal and alteration are not stages of the product life cycle.SOURCE:PM:024SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 644-645). New York: Glencoe/McGraw-Hill.65.ABlogs. A blog is a personal web site that contains journal entries and thoughts that is created and maintained by the creator. Some blogs contain links to other web sites and discussion forums. Because blogs contain many types of information, service businesses are beginning to pay attention to the information that is appearing on these types of web sites. For example, a blogger (blog creator) might post information about service needs and experiences with a certain company or service. Others who visit the site might consider the comments when making their own decision about service purchases. Service businesses are starting to realize that the information posted on blogs can be important for them when they develop or modify their service offerings to meet their customers' needs and wants. Cookies are text files that are put on a web-site visitor's hard drive and then later retrieved during subsequent visits to the site in order to track Internet behavior. Brand is the combined impressions and experiences associated with a particular company or product. A hyperlink is a component of an electronic document that can be clicked on in order to jump to another place within the document or into a different document.SOURCE:PM:072SOURCE:BusinessWeek Online (2005, September 26). It's a whole new web. Retrieved October 30, 2007, from . Brainstorming is a creative-thinking technique involving the identification of as many different ideas as possible during a certain time frame. Lawn-care businesses often have groups of employees meet to review information in an attempt to identify product opportunities. Sales records are a valuable source of information to review because they contain information about the types of services that customers purchase on a regular basis. Employees can analyze this information and brainstorm product opportunities that might meet customers' future needs. Reviewing a business's sales records for the purpose of identifying product opportunities is not an example of experimenting, negotiating, or questioning.SOURCE:PM:134SOURCE:Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 279-280). Tinley Park, IL: Goodheart-Willcox.67.CDirect competition. A business uses many resources to generate ideas for services. When a business evaluates another business's services, it is most often analyzing what its competitor is offering a market segment. The analysis helps the business come up with different or better ideas than its competitor so it can develop services that stand out from the competition. In this situation, the XYZ Company is not generating product ideas by focusing on customers' needs, research policies, or target markets.SOURCE:PM:128SOURCE:Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 279). Tinley Park, IL: Goodheart-Willcox.68.BTo determine how products can be used. Grades and standards can determine how products can be used. Grades can be used to indicate whether products can be used in warm or cold climates, whether the product can be consumed or requires additional processing, etc. They are not used to select media, to identify employee benefits, or to develop product brands.SOURCE:PM:019SOURCE:PM LAP 8—Grades and Standards69.ACustomer expectations. Most pet-grooming businesses develop standards for providing services to customers. The most effective standards are based on what customers expect to receive from the services. For example, a pet groomer might set standards of grooming a cat in 30 minutes and grooming a dog in 45 minutes. Pet groomers try to determine what their customers expect and then set appropriate standards to make sure those services are delivered. Pet groomers do not develop service standards that are based on emotional elements, management patterns, or innovative processes.SOURCE:PM:073SOURCE:Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus across the firm (2nd ed.) [pp. 241-249]. Boston: Irwin/McGraw-Hill.70.DYes, the marketer must fulfill all oral or written promises to the customer. An express warranty is a promise expressed in a specific statement concerning the quality of the product. It can be in either written or oral form, and its extent can be limited or full. In either case, it must be honored by the marketer.SOURCE:PM:020SOURCE:PP LAP 4—Warranties and Guarantees71.DTo promote one-stop shopping. A business with a broad product mix offers many product lines. This provides many opportunities to make sales, allows the business to appeal to consumers with a variety of needs, promotes one-stop shopping, and often reduces the costs. Assuring that product lines are related refers to consistency. The use of a narrow product mix helps a business relate its products to the target market. The use of a broad product mix does not decrease legal liabilities. In fact, its use may increase legal liabilities since the business is responsible for a larger variety of product lines.SOURCE:PM:003SOURCE:PP LAP 3—Product Mix72.DSell products that customers might not otherwise buy. Businesses often bundle products to encourage customers to buy services that they might not otherwise want to buy. The price of the bundled products is usually lower than the combined price of the services sold separately. The lower price is an incentive to buy. Service businesses do not bundle products to offer discounts on services that are selling well or to price unpopular services below cost. Service businesses might use optional-product pricing to promote the sale of expensive, supplementary products.SOURCE:PM:041SOURCE:Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (p. 237). Upper Saddle River, NJ: Prentice Hall.73.AWants. Positioning is a product-mix strategy in which a business creates a certain image or impression of a service in the minds of consumers. The business wants a target market to have a positive impression of the service in order to stimulate sales. The desired impression depends on what the target market wants or expects. If the target market wants high-quality service and it is willing to pay a high price for quality, then the business should use a product-mix strategy that positions the service on the basis of superior quality at a high price. Rather than target markets, businesses have strategies and policies, while products have benefits.SOURCE:PM:042SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 645). New York: Glencoe/McGraw-Hill.74.DFairly short. Since space in the media limited, the brand name should not be too long. A fairly short name is more graphically pleasing and more noticeable because it doesn't take up too much space in advertising. Whether the brand name contains more than one word or is an imaginative or descriptive name, these factors would not affect promotion as much as the total length of the brand.SOURCE:PM:021SOURCE:PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)75.BTim is pleased when a salesperson is knowledgeable and answers his questions about a service confidently and courteously. Service customers base their perceptions about a business's service quality by considering a combination of factors or quality dimensions. The assurance quality dimension addresses a customer's issues regarding the business's competence and security. When the salesperson courteously and confidently answers Tim's questions, the salesperson is communicating his/her knowledge about the business's product, which reassures Tim of the business's capabilities and service quality. A healthcare insurance company that transfers a telephone customer several times is an example of the responsiveness quality dimension. When Ann sees up-to-date equipment in her dentist's office, she is considering the tangible quality dimension of a service business. Reliability quality dimensions relate to consistency. Since Jana's dry cleaning is always ready on the same day at the same time, the business is providing consistent, dependable service.SOURCE:PM:167SOURCE:Hoffman, K., & Bateson, J. (2002). Essentials of services marketing: Concepts, strategies, & cases (2nd ed.) [pp. 334-338]. Orlando, FL: Harcourt.76.DAnticipated potential problems. A service business wants its customers to be satisfied with its product. Unfortunately, problems occur, customers complain, and it is important for a service business to quickly resolve problems and renew the customers' positive feelings about the business. To best serve its customers, Evergreen Landscaping Company identified possible problems before they happened, so that it could determine the best way to resolve the problems, if they actually occur. By developing company policies, the Evergreen Landscaping Company provides its employees with consistent guidelines to handle possible problems. Although it is important for Evergreen to follow government regulations, the government does not usually dictate how private businesses should handle routine customer complaints. Since Evergreen developed its recovery guidelines before it opened for business, it did not act upon its customers' suggestions. Monetary losses are financial issues.SOURCE:PM:169SOURCE:Rokes, B. (2000). Customer service: Business 2000 (p. 6). Mason, OH: South-Western.77.DPatronage. Patronage promotion is designed to promote the prestige or features of a firm. Public relations is created to deal with controversial issues that are in the public's interest. Public service informs customers about noncontroversial issues. Product promotion informs the customer about a product, not a company.SOURCE:PR:002SOURCE:PR LAP 4—Know Your Options (Types of Promotion)78.CSales promotion. Sales promotion refers to promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases. Coupons are a popular form of sales promotion because they offer discounts as a way to encourage repeat business. Advertising is the nonpersonal presentation of ideas, images, goods, or services (e.g. television commercial) that the company pays for. Personal selling is a form of promotion that determines client needs and wants and responds through planned, personalized communication. Publicity is any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual that benefits from or is harmed by it. SOURCE:PR:120SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 241-249]. Woodland Hills, CA: Glencoe/McGraw-Hill.79.BPromotional mix. The promotional mix is a combination, or blend, of marketing communication channels that a dry cleaner uses to send its messages to its customers. These channels include personal selling, sales promotion, publicity, and advertising. Sales promotion consists of those promotional activities other than advertising, personal selling, and publicity which stimulate customer purchases. Examples include visual merchandising, coupons, and premiums. Public relations activities are designed to create a positive public opinion about the firm. Publicity is any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual which receives it.SOURCE:PR:003SOURCE:PR LAP 1—Promotional Mix80.CTarget. A target market is the particular group of customers a business seeks to attract. Since the evolution of cable and digital television, television viewers have more options, which include television channels with specific themes, such as the History Channel or the Home Shopping Network. Marketers (e.g., insurance companies) now have a better opportunity to target their television promotional messages to appropriate or targeted markets. Mass audience refers to all of the viewers reached by a media channel, which may include viewers who are not part of the target audience. The level of education and the average age of an audience are factors that marketers consider when selecting or evaluating a target market. SOURCE:PR:100SOURCE:O'Guinn, T.C., Allen, C.T., & Semenik, R.J. (2003). Advertising and integrated brand promotion (3rd ed.) [pp. 542-546]. Mason, OH: South-Western.81.DContent. In order to protect consumers, governments regulate advertising. For example, many nations regulate advertising directed to children because they are inexperienced consumers and do not always make informed decisions. Regulation might include the types of advertisements that are placed, the time when the advertisements run, and the information (content) the advertisements contain. The price that a business pays or the amount it budgets for an advertisement is not often a government concern. Graphics are one element of an advertisement's content.SOURCE:PR:101SOURCE:Wikipedia. (2006, September 2). Advertising regulation. Retrieved October 30, 2007, from message must be brief. Specialty advertising is categorized as "other media," and it includes such items as pens, matchbooks, calendars, or key rings embossed with a company's name, logo, or promotional message. Even though specialty items carry only a brief message, it is a promotional method that is popular with service businesses and consumers. The benefits of specialty advertising include the fact that it keeps the name of the service business in front of the public for an extended period of time.SOURCE:PR:007SOURCE:Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 506-507). Tinley Park, IL: Goodheart-Willcox.83.AIdentification. Identification is the element of an advertisement that identifies the product or the advertiser and may include additional information about the service business. A map of the service business's location would sometimes be included in this part of the ad. The headline of the ad is the text that is set in large type and usually positioned at the top of the ad. The illustration is a photograph, drawing, painting, or graphic. The copy of the ad is the text of the ad that actually delivers the sales message.SOURCE:PR:014SOURCE:PR LAP 7—Parts of Print Ads84.AA person signs up to participate in a diet program by telephone after viewing an infomercial. Direct-response advertising is a promotional method in which marketers provide the means for people to take action and immediately respond to a message. An infomercial is defined as a lengthy commercial that looks like a television program. A television channel airing an infomercial that includes a telephone number so viewers are able to purchase a service is an example of direct-response advertising. When a person purchases a service advertised via the infomercial, the advertisement is successful because a sale has been made. Billboards and movie theater previews are examples of out-of-home advertising. Coupon distribution is an example of a sales promotion activity.SOURCE:PR:089SOURCE:Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 515-516]. Upper Saddle River, NJ: Prentice Hall.85.DCoordinated. Advertising and display should work together and have a common theme in order to do an effective job of selling the service business's products. Such coordination results in a comprehensive promotional approach, rather than a disjointed one that would result from independent, contradictory, or competitive efforts.SOURCE:PR:076SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 367). New York: Glencoe/McGraw-Hill.86.CLawyer. A service business performs specialized, intangible activities that satisfy the needs and wants of consumers or industrial users. Lawyers provide legal advice, which is an intangible activity. Manufacturers, retailers, and farmers are business owners who may offer a variety of services; however, their primary products are goods.SOURCE:PR:217SOURCE:Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 210). Tinley Park, IL: Goodheart-Willcox.87.AMeet clients' needs. One way to develop long-term relationships with clients is to provide quality service that meets clients' needs and makes them feel important. In many cases, the type of service provided must be tailored to fit the needs of the client. For example, one client might need life insurance while another client might need car insurance. Services need to be tailored to the clients rather than the same for all clients. Services do not always include clients' employees unless the client is a business. Clients do not purchase insurance to increase their status. SOURCE:SE:076SOURCE:Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [p. 402]. Boston: Irwin/McGraw-Hill.88.DBuild a clientele for the business. Expressing appreciation to the client through a phone call or a simple note of appreciation demonstrates a genuine interest in the client's satisfaction. Showing a personal interest in the client is generally inappropriate. Giving full attention to the client is done at the time of a meeting or sale. Having knowledge about the insurance company's products is knowing all about what you are selling and how your products can help the client.SOURCE:SE:828SOURCE:SE LAP 115—Keep Them Loyal (Building Clientele)89.ASalespeople. Salespeople have the primary responsibility for implementing selling policies for service businesses. Company management would have an overall responsibility to see that all department heads do their work. Purchasing agents are responsible for obtaining goods and services rather than for selling them. Customers are affected by selling policies rather than being responsible for setting or implementing them.SOURCE:SE:932SOURCE:SE LAP 121—Selling Policies90.CWord processing. Word-processing software allows computer users to write documents on their computers. Business-services salespeople use word-processing software to write many types of sales documents, including sales letters and sales proposals. Presentation software allows business-services salespeople to develop visual support for their sales presentations. Territory-mapping software helps sales managers create territories or selling areas for business-services salespeople. Database software helps service businesses organize different types of information in a meaningful manner in a central location.SOURCE:SE:107SOURCE:Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th ed.) [p. 249]. Mason, OH: South-Western.91.BSmart cards. Smart cards contain microchips that store information such as digital money that can be used to make purchases from electronic kiosks. Customers can access special terminals to add money to their smartcards and then use the cards to buy goods and services from pay telephones, subways, vending machines, etc. The cards automatically transfer the dollar amount of the purchase from the customer's card to the business. Most smart cards are reusable, and customers can continue to add money to them. They allow businesses to deliver services to customers quickly and without the help of the business's employees. Cyberspace is the term used to describe the area where electronic communications occur. Intranets are computer connections within a business. Satellite dishes pick up signals from orbiting communications satellites.SOURCE:SE:164SOURCE:Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 213-216). Upper Saddle River, NJ: Prentice Hall.92.AEliminate competition. Unfair and deceptive sales practices, such as price discrimination and exclusive dealership, are illegal if they tend to eliminate competition. The United States and other countries regulate sales practices that are specifically intended to drive out competitors or make it difficult for competitors to operate. Sales practices that tend to reduce incentives, affect performance, or decrease profitability are not regulated.SOURCE:SE:108SOURCE:Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th ed.) [pp. 38-39]. Mason, OH: South-Western.93.DThey are afraid the service might not meet their expectations. Unlike with tangible goods that can be seen, touched, or smelled before the purchase, customers never know for certain whether they are going to receive a quality service. In other words, they take a risk that the service will be everything they expect it to be. Customers don't face a risk when a salesperson follows up with them about a transaction because they can request that the salesperson not call. The involvement of government in regulating service businesses is beneficial to customers because they receive protections against unfair business practices. It is the service providers who actually face potential risks, such as paying for the costs of complying with the legislation. Service providers with a high degree of competition usually provide a higher quality of service in order to attract customers away from other businesses.SOURCE:SE:187SOURCE:Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 207-208]. Upper Saddle River, NJ: Prentice Hall.94.BEstablishing relationships with customers. The first phase of the selling process, establishing relationships with customers, is essential for all business-services salespeople. All business-services salespeople must make initial contact with customers, make them feel at ease, and set a positive tone for the selling relationship. Overcoming objections to expensive services, promoting on-site product demonstrations, and building prospective client lists are not phases of the selling process.SOURCE:SE:048SOURCE:SE LAP 126—The Selling Process95.A"What kind of janitorial services does your business need?" An open-ended question requires more than a "yes" or "no" answer and encourages customers/clients to discuss their needs and wants. This question requires the customer to describe the business's janitorial needs. All of the other questions are closed-end questions that can be answered by "yes" or "no."SOURCE:SE:111SOURCE:SE LAP 114—Questioning96.CGather information. Most customers gather information about services before purchasing because services often differ from one provider to another. Customers usually read about the service, ask the opinions of friends, or visit the provider. For example, a family seeking day care for children might obtain information from a state licensing agency, talk to other parents, and visit the day-care facility on various occasions to observe procedures. Once they are satisfied with the level of service, customers choose a provider and negotiate delivery, which might involve the number of days or hours that children will attend the day care. Customers evaluate the performance of the service provider after making a purchase.SOURCE:SE:210SOURCE:Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 71-75). Upper Saddle River, NJ: Prentice Hall.97.BDeny-it method. In the deny-it method, the salesperson directly denies the customer's objection. The deny-it method may be the poorest way to answer objections because it is hard to tell customers they are wrong without offending them. This method must be used with great care. The show 'em method answers the objection by showing the product in use. The yes, but . . . method tactfully acknowledges the objection and then courteously answers it without directly contradicting the customer. In the inquiry method, the salesperson asks questions of customers to enable customers to answer their own objections.SOURCE:SE:874SOURCE:SE LAP 100—Converting Objections98.AIt increases total sales and possibly commissions. Suggestion selling increases total sales and profits for the service business. which may mean higher wages or commissions for the salesperson. Increasing sales may or may not increase the business-services salesperson's enjoyment of the job. Contacts with people can come whether or not you sell them something. Qualifications for running one's own service business involve much more than the ability to sell successfully. Such things as the ability to raise capital and proper understanding of other phases of business are also needed.SOURCE:SE:875SOURCE:SE LAP 110—Using Suggestion Selling99.DUnpredictable. Quality is the degree of excellence of a product. Service businesses use standards to try to maintain and control service quality so service performance and delivery is consistent. Because employees are different, their performance levels often vary, which makes it more difficult for service businesses to maintain consistent quality control for their product delivery and performance. Customers also vary in terms of their expectations and needs. The combination of an employee's inconsistent behavior and a customer's inconsistent behavior makes the outcome unpredictable. Services are not always considered inadequate, exceptional, or time-consuming.SOURCE:SE:330SOURCE:Hoffman, K., & Bateson, J. (2002). Essentials of services marketing: Concepts, strategies, & cases (2nd ed.) [pp. 41-42]. Orlando, FL: Harcourt.100.BWork alongside subordinates. The role of the middle manager in an insurance company is to plan and organize the work of others, not to do the same work that they do. It may, on occasion, be necessary for a manager to lend a hand, but this should not be regular practice. An effective manager should plan his/her time in order to use his/her abilities to the best advantage and establish and carry out immediate goals. First-line managers or supervisors often work alongside subordinates.SOURCE:SM:001SOURCE:BA LAP 6—Manage This! ................
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