Services Marketing

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07MB039 Services Marketing

Part A (1 Mark Questions)
Unit - I
Services can be divided into four distinct categories. They are service industries and
companies, services as products, customer service, and:
a. unsought services
c. service perception
b. complementary services
d. derived services
Which of the following products is an example of intangible dominant?
a. car rental agency
c. a meal
b. math tutoring
d. a magazine subscription
One of the sources of specific demand for services marketing concepts has come from:
a. antitrust controversies
c. deregulated industries
b. oligopolistic industries
d. none of the above
Which of the following statements is a plausible theory used to explain why customers
are dissatisfied with the service they are receiving?
a. Delivering consistent, high-quality services is not easy.
b. Organizations have made themselves too lean.
c. Customer expectations are higher because of the excellent service some
companies provide.
d. All of the above statements is a plausible theory used to explain why customers
are dissatisfied with the service they are receiving
Technology can both support and enhance services and creative unwanted negative
outcomes as well. Which of the following is NOT one of central paradoxes of
technological products?
a. harmony/disharmony
c. efficiency/inefficiency
b. competence/incompetence
d. freedom/enslavement
_____ results because no two customers are precisely alike; each will have unique
demands or experience the service in a unique way.
a. Homogeneity
c. Heterogeneity
b. Disharmony
d. Tangibility
H &R Block prepares income tax forms for its customers. Because many people avoid
doing their taxes until the last minute, H&R Block offices are busiest during the six-week
period prior to April 15th. The company instituted a sales promotion which awarded
customers who had their taxes prepared early the opportunity to win double the amount
of their tax refund. This strategy is to deal with the _____ nature of services.
a. perishable
c. heterogeneous
b. tangible
d. homogeneous
In addition to the traditional four Ps, the services marketing mix includes people, physical
evidence, and:
a. perishability
c. production
b. preparation
d. process
9. The customer gap is the difference between:

a. what the customer expects and what he or she is told will occur
b. customer perceptions and retailer perceptions
c. customer expectations and customer perceptions
d. what the retailer says it offers and what is actually offered

10. The sources of customer expectations are:
a. totally market controlled
b. totally controlled by factors outside what the marketer can influence
c. the equivalent of customer perceptions
d. a combination of market controlled and other factors that the marketer has limited
ability to influence
Unit II
11. Miriam tells Delores, "Remember that wonderful spa treatment we got at the 5-star hotel
in Vienna? Well, I've been told by someone who has visited both that the new spa in
Middleton offers is even more luxurious." In terms of the plausible levels of customer
expectations, Miriam has _____ of the services offered by the Middleton spa.
a. ideal expectations
b. normative expectations
c. experience-based expectations
d. ego-based expectations
12. The extent to which customers recognize and are willing to accept variations in service
performance in called the:
a. continuum of acceptable service
b. provider gap
c. customer gap
d. zone of tolerance
13. The two largest influences on desired service levels are:
a. service valence and service equity
b. personal needs and philosophies about service
c. word-of-mouth communications and need satisfiers
d. physiological and psychological needs
14. Which of the following is NOT one of the five factors that influence adequate service
expectations?
a. situational factors
b. explicit service promotions
c. predicted service
d. perceived service alternatives
15. Predicted service is:
a. typically an estimate of the service that a customer will receive in an individual
transaction
b. a global assessment of desired customer expectations
c. an estimate of what happened in the most recent transaction
d. typically an estimate of the service that a customer will receive throughout the
overall relationship with a service provider
16. The funeral director told the grieving family that the best casket for their loved one costs
6,000 and would protect the body from deterioration better than a cheaper model. This is
an example of a(n):
a. implicit service promise
c. explicit service promise
b. normative service control
d. temporary service alternative
17. Which of the following statements accurately describes what a service marketer should
do if customer expectations are unrealistic?
a. Never underpromise the customer.
b. Always overdeliver the service.
c. Use a reality check upon service delivery
d. Ask customers to describe their expectations
18. An Internet funeral home that sells caskets and burial urns differentiates itself from the
traditional funeral homes by offering free grief counseling. What advice can you give to
the operator of the Internet funeral home?
a. He must always offer service at the ideal customer expectation.
b. He must stay alert because other funeral homes can also offer free grief
counseling.
c. He must overpromise and overdeliver.
d. Exceed customer expectations of the basic services.
19. Which of the following statements about customer satisfaction is true?
a. Through the service cycle, the consumer will have a variety of different
experiences that will all affect satisfaction.
b. Satisfaction can be viewed as contentment.
c. Satisfaction is the consumer's fulfillment response.
d. All of the statements about customer satisfaction are true.
20. The American Customer Satisfaction Index (ACSI):
a. only examines intangible products
b. indicates that customer satisfaction with services is typically higher than it is with
goods
c. does not rank Internet service providers
d. tracks customer perceptions across representative industries from each of the
economic sectors
Unit III
21. In acquaintance relationships,:
a. the sustainability of the competitive advantage is high
b. firms generally focus on providing value comparable to the competition
c. the firm begins to acquire specific knowledge of the customer's needs
d. the relationship time horizon is long
22. The key to success in the partnership stage is:
a. to satisfy customer's needs and wants
b. the firm's ability to organize and use information about individual customers more
effectively than its competitors
c. the firm's ability to sustain a repetitive process
d. the development and production is a parity product
23. Which of the following is a benefit that a customer receives for entering a partnership
relationship with a firm?
a. economic benefits
c. autonomy benefits
b. retention benefits
d. confidence benefits
24. The lifetime value of a customer is influenced by:
a. the average revenues generated per relevant time period over the lifetime
b. sales of additional products over time

c. referrals generated by the customer over time
d. all of the above
25. The cost of finding a new service provider and _____ are the two primary barriers to
switching.
a. distrust of autonomy
c. economic munificence
b. salesforce apathy
d. customer inertia
26. In terms of the levels of relationship strategies, the first level is:
a. customization bonds
c. structural bonds
b. financial bonds
d. retention bonds
27. In terms of the levels of relationship strategies, structural bonds:
a. rely on mass customization
b. require bundling and cross-selling to be effective
c. relies on the customer being the initiator
d. are created by providing services to the client that are frequently designed right
into the service delivery system for the client
28. For which of the following reasons would a service provider decide to end its relationship
with a customer?
a. The customer only wants a transactional relationship.
b. The client is engaged in a rebranding strategy.
c. The customer is in an inappropriate market segment.
d. The economy has entered a recessionary period.
29. Nearly 3 million golfers give up the game each year. The managers and operators of golf
courses obviously need to engage in:
a. service recovery
c. service consistency
b. service paradox
d. outcome fairness
30. Which type of customer should be viewed as the service provider's best friend?
a. voicers
c. obligators
b. irates
d. accomodators
Unit IV
31. Which of the following characteristics is NOT an example of a reliable predictor for the
success of new products?
a. product/service characteristics
b. competitive characteristics
c. process characteristics
d. marketplace characteristics
32. M.G. Orender owns four golf courses in Florida. When the number of golfers using his
courses started to decline, he offered special nine- and six-hole outings to appeal to
golfers who did not have the time to play an 18-hole game. What type of new service did
Orender offer?
a. major innovations
b. style changes
c. new service for currently served market
d. service start-ups.
33. Which of the following statements about stages in new service development is true?
a. An underlying assumption is that new product ideas can be dropped at any stage
of the process.
b. The final step in new service development is commercialization.
c. The business analysis step precedes the concept development and evaluation
stage.
d. New service development is typically a linear process.
34. Nearly three million golfers give up the game annually due to costs, time requirements
and a variety of other reasons. M.G. Orender owns four golf courses in Florida. When the
number of golfers using his courses started to decline, he offered special nine- and sixhole outings to appeal to golfers who did not have the time to play an 18-hole game.
What type of strategic orientation did Orender assume?
a. innovator
c. enactor
b. defender
d. reactor
35. The last stage of the new service development process is:
a. trailer calls
b. business analysis
c. postintroduction evaluation
d. commercialization
36. A _____ is a picture or map that accurately portrays the service system so that the
different people involved in providing it can understand and deal with it objectively.
a. PERT chart
c. positioning map
b. Gantt chart
d. service blueprint
37. Why do service providers use a service blueprint? (DoD2)
a. to provide a basis for identifying and assessing costs
b. to create fail points
c. to eliminate strategic discussions about the known elements of the service
d. to make internal marketing unnecessary
38. Quality function deployment (QFD):
a. is implemented via what is known as the "house of quality"
b. links customer requirements to design characteristics of the product
c. is used as a means of integrating marketing and engineering personnel into the
development process
d. is accurately described by all of the above
39. Which of the following statements about customer-defined standards is true?
a. Virtually all companies possess service standards and measures that are customerDefined.
b. Anchoring service standards on customers can save money by identifying what
the customer values.
c. The customer standards used today reflect the history of the business using them.
d. Customer-driven standards are necessary to close provider gap 1.
40. What is the single most important concern of service customers?
a. privacy
c. empathy
b. truthfulness
d. reliability
Unit - V
41. The failure to deliver services as designed and specified can result from all of the following
EXCEPT:
a. the absence of necessary role ambiguity
b. the lack of empowerment and teamwork
c. neffective recruitment of service-oriented employees
d. improper evaluation and compensation systems
42. A service culture:
a. can readily be transported to different international operations
b. will not create a competitive advantage because it is easily imitated
c. is best when developed by organizational leaders who are passionate about service
excellence
d. is accurately described by all of the above
43. A strategic framework known as the _____ visually reinforces the importance of people in
the ability of firms to keep their promises and succeed in building customer relationships.
a. profitability pyramid
b. service profile chain
c. services marketing triangle
d. customer relationships model
44. The service profit chain
a. is used to explain the importance of internal marketing
b. shows the ultimate connection between employee satisfaction and profits.
c. illustrates the importance of interactive marketing
d. can be used to explain how a service culture is passed throughout an international
organization
45. The term _____ refers to the labor that goes beyond the physical or mental skills needed to
deliver quality service.
a. emotional labor
c. customer sensitivity
b. psychological utility
d. interactive marketing
46. To build a customer-oriented, service-minded workforce, an organization must:
a. create an authoritative service culture
b. hire people who have little or no service inclination
c. hire and retain the best people
d. convince its employees that the customer is always right
47. Service employees need two complementary capacities. They are service inclination and:
a. emotional labor
b. service ambiguity
c. service competencies
d. service spontaneity
48. For which of the following organizations is empowerment strategies effective?

a. organizations that rely transactional relationships
b. organizations that operate in unpredictable environments
c. organizations that have a mass marketing strategy
d. organizations that do not use any technology
49. The first step in conducting an internal customer service audit is to:
a. identify the competition

c. develop a mission statement
b. define service quality
d. identify the customer
50. Provider gap 3 can be widened by:
a. the actions or inactions of customers
b. the use of inappropriate physical evidence
c. differences in policies and procedures across company branches
d. inadequate service recovery

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07MB039 Services Marketing

9. The customer gap is the difference between:

d. what the retailer says it offers and what is actually offered

b. sales of additional products over time

48. For which of the following organizations is empowerment strategies effective?

a. identify the competition

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