1.

Services marketing become difficult because of

A. Intangibility.
B. no demand
C. More complex market
D. Difficult to enter the market
ANS: A

2. Which of the following businesses would be characterized as a pure service

A. Insurance
B. Farming.
C. Mining.
D. There is no such thing as a pure service
ANS: D

3. Which of the following statements about the pricing of services (compared to the pricing of
goods) is false?
A. The demand for services tends to be more elastic than the demand for goods
B. Cost-oriented pricing is more difficult for services.
C. Comparing prices of competitors is more difficult for service consumers
D. Consumers are less able to stockpile services by taking advantage of discount prices
ANS: B

4. Charging customers different prices for essentially the same service is called
A. Price discrimination
B. Supply and demand.
C. Complementary
D. Substitutes.
ANS: A

5. Results in the practice of too narrowly defining one’s business

A. Services marketing
B. Marketing management
C. Marketing myopia
D. Customer experience
ANS: C

6. A buyer’s perception of value is considered a trade-off between

A. Product value and psychic cost.
B. Total customer value and total customer cost
C. Image value and energy cost
D. Service value and monetary cost.
ANS: D

7. Services are characterized by all of the following characteristics except for

A. Intangibility.
B. Homogeneity
C. Perishability.
D. Inseparability
ANS: B
8. Of the four unique service characteristics that distinguish goods from services, the one that is the
primary source of the other three characteristics is:
A. Intangibility
B. Inseparability.
C. Perishability.
D. Heterogeneity.
ANS: A

9. Services that occur without interruption, confusion, or hassle to the customer is called
A. Seamless service
B. Service audit.
C. Functional service
D. Departmental service
ANS: A

10. The mental energy spent by customers to acquire service is referred to as ___.
A. Image costs
B. Monetary price.
C. Energy costs
D. Psychic costs.
ANS: C

11. The unique service characteristic that reflects the interconnection between the service firm and
its customer is called
A. Intangibility
B. Inseparability
C. Homogeneity
D. Perishability
ANS: B

12. Marketing problems caused by inseparability include all of the following except for
A. The service provides a physical connection to the service
B. The involvement of the customer in the production process
C. Service standardization and quality control are difficult to achieve.
D. The involvement of other customers in the production process
ANS: C

13. Which of the following statements pertain to inseparability is false?

A. As customer contact increases, the efficiency of the firm decreases.
B. Customers can affect the type of service desired
C. Customers can affect the length of the service transaction.
D. Customers can affect the cycle of demand
ANS: A

14. The centralized mass production of services is difficult due to

A. Inseparability.
B. Intangibility.
C. Homogeneity.
D. Perishability.
ANS: D
15. Solutions used to minimize the marketing problems attributed to heterogeneity include
A. Standardizing or customizing the service
B. Using multi-site locations
C. Stressing tangible clues
D. Appealing to different market segments with different demand patterns
ANS: A

16. The unique service characteristic that deals specifically with the inability to inventory services
are.
A. Inseparability
B. Intangibility
C. Homogeneity
D. Perishability
ANS: D

17. Which of the following strategies increases the supply of service available to consumers?
A. The use of creative pricing strategies
B. The use of reservation systems
C. Capacity sharing
D. Developing complementary services
ANS: B

18. Customer satisfaction can be defined by comparing

A. Predicted service and perceived service
B. Predicted service and desired service
C. Desired service and perceived service
D. Adequate service and perceived service
ANS: C

19. The demand strategy in which service providers utilize their downtime by marketing to different
segments with different demand patterns is associated with which of the following?
A. The use of creative pricing strategies
B. The use of reservation systems
C. Capacity sharing
D. Developing complementary services
ANS: C

20. The ___ dimension is an assessment of the firm’s consistency and dependability in-service
performance
A. Empathy.
B. Responsiveness.
C. Assurance
D. Reliability.
ANS: D

21. Which of the following would not be considered a tangible clue?

A. The appearance of employees
B. The appearance of the firm’s physical facilities
C. The smile on an employee’s face
D. The quality of instruction in an educational setting.
ANS: D

22. Minimizing the amount of role conflict and role ambiguity experienced by employees will help
reduce the size of this gap is known as ___.
A. Knowledge gap.
B. Standards gap
C. Delivery gap.
D. Communications gap
ANS: C

23. Fixing the right price for services offered is difficult because of ___
A. perishability.
B. heterogeneity.
C. inseparability.
D. intangibility.
ANS: D

24. The world’s largest industry in the private sector and highest projected generator of jobs is ___
A. The hospitality industry
B. Health services
C. Professional services.
D. Business services
ANS: D

25. Focusing the firm marketing efforts toward the existing customer base is called
A. Excellent customer service
B. Conquest retention
C. Customer retention
D. Courteous retention
ANS: C

26. The pursuit of new customers, as opposed to the retention of existing ones, is called
A. Services marketing
B. B2B marketing
C. Conquest marketing
D. Consumer marketing
ANS: C

27. The consumer decision process consists of

A. Stimulus, problem awareness, and purchase stages
B. Pre-purchase, consumption, and post-purchase stages
C. Problem awareness, evaluation of alternatives, and post-purchase behaviour
D. Stimulus, information search, and post-purchase behaviour
ANS: B

28. Which of the following statements is not true?

A. Service purchases are perceived as riskier than goods purchases
B. The participation of the consumer in the service process increases the amount of perceived risk.
C. The variability in services increases the perceived risk associated with the Purchase
D. Consumers of services have less pre-purchase information versus goods
ANS: B

29. Service consumers tend to be more brand loyal than goods consumers because
A. More choices are available
B. Brand loyalty lowers the amount of perceived risk
C. Each service provider provides many brands
D. Location of the provider is the major driver in the consumer selection process
ANS: B

30. Competitor intelligence should be gathered

A. Once a year.
B. Twice a year.
C. Continuously
D. When competition is more.
ANS: C

31. Which of the following is not a benefit of customer satisfaction?

A. The firm is more insulated from price competition.
B. The firm provides a positive work environment for its employees
C. Positive word-of-mouth is generated from satisfied customers
D. Satisfied customers make purchases more frequently
ANS: B

32. The service industry has several emerging trends that organisations need to be aware of. Which
of these should organisations keep a lookout for?
A. New competitors entering the marketplace
B. Advances in the internet
C. Heightened customer expectations
D. Advances in e-commerce.
ANS: A

33. The zone of tolerance is defined by the difference between

A. Expected service and desired service.
B. Predicted service and desired service
C. Desired service and adequate service.
D. Predicted service and perceived service
ANS: D

34. Customers ultimately determine the services by ___

A. The type of competitors.
B. The levels of marketing effectiveness and operational efficiency
C. The cycle of fluctuations
D. The price of the competitors.
ANS: B

35. During a service recovery effort, the employee promptly refunded the customer’s money but
threw the money at the customer. As a result, the recovery effort violated the customers ___ justice
need
A. Interactional
B. Ethical.
C. Social.
D. Procedural
ANS: C

36. Soft technologies refer to

A. Flexible rules that can be bent to meet customer needs.
B. The personal touches that ultimately lead to customer satisfaction.
C. Guidelines that permit employee empowerment
D. Hardware that facilitates the production of a standardized
ANS: B

37. The ___ is calculated by dividing the activity time by the number of locations at which the activity
is performed.
A. Service cost per meal
B. Maximum output per hour
C. Process time.
D. Activity time.
ANS: C

38. Which of the following is not a step in the construction process of a service blueprint?
A. Obtaining scripts from both customers and employees
B. Segmenting customers based on the content of the script.
C. Identify steps in the process where the system can go awry.
D. Calculating the time frame for the service execution.
ANS: C

39. A volume-oriented positioning strategy is achieved by

A. Reducing divergence.
B. Increasing complexity
C. Reducing complexity.
D. Increasing divergence
ANS: D

40. A buyers perception of value is considered a trade-off between

A. Product value and psychic cost
B. Total customer value and total customer cost.
C. Image value and energy cost
D. Service value and monetary cost.
ANS: D

41. Total customer value consists of all of the following components except
A. Product value.
B. Service value.
C. Image value
D. Personnel value.
ANS: D

42. Total customer cost consists of all of the following components except
A. Monetary cost
B. Social cost.
C. Time cost.
D. Energy cost.
ANS: B

43. Which of the following statements about the pricing of services (compared to the pricing of
goods) is false?
A. The demand for services tends to be more elastic than the demand for goods
B. Cost-oriented pricing is more difficult for services
C. Comparing the prices of competitors is more difficult for service consumers.
D. Self-service is a viable competitive alternative.
ANS: D

44. ___ is a firm view toward planning its operations according to market needs
A. Marketing orientation
B. Marketing functions.
C. Marketing department.
D. Marketing forecast.
ANS: A

45. Which of the following is not a criterion for effective price discrimination?
A. The segments should be identifiable, and a mechanism must exist to price them differently.
B. Different groups of consumers should have similar responses to price.
C. Segments should be large enough to be profitable
D. Incremental revenues should exceed incremental costs.
ANS: B

46. Service firms often find themselves in a three-cornered fight between

A. Engineering, production, and accounting
B. Marketing, finance, and human resources
C. Operations, accounting, and marketing
D. Human resources, marketing, and operations
ANS: D

47. Customer frustration resulting from receiving poor service is most similar to
A. Image costs.
B. Monetary price
C. Energy costs.
D. Psychic costs.
ANS: D

48. Among many services, the demand for medical services tends to be ___.
A. Inelastic.
B. Elastic.
C. Substitute demand
D. Price cross elastic demand
ANS: A

49. Customer competencies can be described as

A. Consumer expectations pertaining to the service delivery process and the final outcome
B. Customer perceptions regarding the quality of the outcome
C. Customer abilities that enable them to properly evaluate the servicescape.
D. The ability to interact effectively with other
ANS: C

50. Costs that are planned and are accrued during the operating period regardless of the level of
production and sales are called
A. Direct variable costs
B. Fixed costs.
C. Average costs
D. Marginal costs.
ANS: B

51. The technique that allows consumers to either buy Service A and Service B together on purchase
one service separately is called
A. Long-term bundling
B. Mixed bundling
C. Price bundling.
D. Product bundling
ANS: C

52. Which pricing strategies encourage the customer to expand his/her dealings with the service
provider?
A. Relationship pricing
B. Price bundling.
C. Benefit-driven pricing.
D. Efficiency pricing.
ANS: A

53. Do studies suggest that price is more likely to be used as a cue to quality under the following
conditions?
A. When alternatives are of bad products
B. When the company is new to the market
C. When a price is the primary differential information available
D. When a customer does not have knowledge
ANS: C

54. The primary role of a service firm for the customer in the communication mix is to ___.
A. Confuse customers.
B. Inform and remind customers
C. Oppose the competitor s claim
D. Persuade the dealers.
ANS: B

55. The plan for differentiating the firm from its competitors in consumers eyes is referred to as the
firms
A. Communication mix
B. Positioning strategy.
C. Publicity.
D. Target marketing
ANS: B
56. Differentiation approaches such as competence, courtesy, reliability, and responsiveness are
forms of
A. Product differentiation
B. Personnel differentiation
C. Image differentiation
D. Service differentiation.
ANS: B

57. The appropriate communication content during the introduction stage of the product life cycle
would be
A. Informational.
B. Informational and persuasive
C. Persuasive.
D. Persuasive and reminder.
ANS: B

58. Which of the following is not a communication objective during the maturity and decline stages
of the product life cycle?
A. Encourage repeat purchases
B. Provide ongoing contact with customers
C. Prepare the way for personal selling efforts
D. Express gratitude to the existing customer base.
ANS: B

59. Which one of the following communication approaches would be appropriate during the growth
and maturity stages of the product life cycle?
A. Informational.
B. Informational and persuasive
C. Persuasive.
D. Persuasive and reminder
ANS: D

60. The primary objective of a firms communication mix during the pre-consumption choice stage is
to
A. sell the product
B. Minimize the perceived risk associated with the purchase
C. Encourage repeat purchases
D. Persuasively convince customers why the firms brand is superior to the competitors
ANS: D

61. The perceived consequences of a consumer s purchase decision are

A. Financial, social, and performance
B. Social, ethical, and performance.
C. Performance, social and ethical.
D. Ethical, social and psychological
ANS: A

62. Tangible clues are more important when services are

A. Highly perishable.
B. Tangible dominant.
C. Intangible dominant
D. Heterogeneous
ANS: C

63. Which of the following communication objectives becomes the most important during the post-
consumption evaluation stage
A. Informing customers
B. Managing customer expectations.
C. Reducing consumer perceived risk
D. Persuading customers
ANS: C

64. Branding of services becomes difficult because they are

A. Intangible.
B. Heterogeneous.
C. Perishable.
D. Inseparable.
ANS: A

65. Word-of-Mouth communication networks are particularly important for service firms because
A. Service customers tend to rely more on personal than the non-personal source of information
B. Service firms only offer one brand of service.
C. Service firms can seldom afford to pay for promotional efforts.
D. Service customers tend to rely more on non-personal than personal sources of information
ANS: A

66. The suggested communication strategy to use when the product is intangible dominant is to
A. Create an intangible image for the product.
B. Create awareness for the product
C. Surround the product with tangible evidence.
D. Make sure the product is in the evoked set of
ANS: C

67. ___ is an overall favourable impression or unfavourable impression based on the early stages of
the service encounter.
A. Cognitive dissonance.
B. Environmental stimulus
C. Visual pathway.
D. Halo effect.
ANS: D

68. The advantage that E-marketing communications carries are ___.

A. Reaching a widely dispersed audience.
B. Being cost-effective.
C. Being personalized.
D. More customer satisfaction.
ANS: A

69. A disadvantage of e-marketing is

A. High cost.
B. Low reach.
C. Loss of personal contact
D. Less satisfaction.
ANS: C

70. Which of the following is not a component of the service firm’s physical evidence?
A. Parking.
B. Employee appearance
C. Billing statements.
D. In-house process equipment
ANS: D

71. One of the advantages of requiring employees to wear uniforms is that it reduces the customers’
perception of ___.
A. Intangibility.
B. Inseparability.
C. Heterogeneity.
D. Socialization.
ANS: C

72. which of the following is not an advantage of requiring employees to wear uniforms?
A. Identifies the firm’s personnel
B. Provides price expectations to customers.
C. Implies a coherent group structure
D. Provides a physical symbol that embodies the group’s ideas and attributes
ANS: B

73. ___ is the study of the use of physical evidence to create service environments and their
influence on the perceptions and behaviours of individuals
A. Ergonomics
B. Environmental psychology.
C. Physics
D. Physical sociology
ANS: B

74. Direct labour cost and sales commissions cost incurred in services are called as………..
A. Fixed costs.
B. Variable costs.
C. Average costs.
D. Marginal costs.
ANS: B

75. The organization must effectively plan to ___ fear, uncertainty, and doubts that might occur in
the minds of customers during the course of acquisition.
A. Minimize
B. Maximize
C. Study
D. Balance
ANS: A
76. Internal marketing deals with
A. Marketing the products to employees
B. Marketing the products in the local market
C. Marketing the products inside the country
D. Identifying and taking care of employees need and wants
ANSWER: D

77. What is mean by interactive marketing?

A. Marketing by interacting with employees.
B. Marketing by interacting with dealers
C. Marketing is done by interacting between employees and customers
D. Marketing by interacting with top management.
ANSWER: C

78. Consumer responses to environmental stimuli are characterized by approach or avoidance

behaviours.
Consumer approach behaviour is defined as
A. A desire to stay in the market.
B. A desire to explore many products
C. A desire to communicate with society
D. Feelings of satisfaction.
ANSWER: B

79. In order to improve the process and performance of the company towards the customers, they
should try to ___.
A. Modernize the building.
B. Modernize the product.
C. Reduce the waiting time by adopting the reservation system.
D. Asking customers to come another time.
ANSWER: C

80. When developing servicescapes, firms recognize that their physical environment will affect
employees and customers. This is primarily due to
A. Reflect the quality at all spheres
B. Intangibility
C. Heterogeneity
D. Perishability
ANSWER: A

81. Consumers who seek convenience over price and personal attention are
A. Economic customers
B. Personalized customers
C. Apathetic customers.
D. Ethical customers.
ANSWER: B

82. Which of the following is NOT an example of an ambient condition in a retail environment?
A. Music.
B. Signs.
C. Scents
D. Lighting.
ANSWER: A

83. Ambient conditions will have the least effect on customer behaviour in which of the following
service scapes?
A. A bakery shop
B. An air-conditioned hotel.
C. An open five-story parking garage
D. Bookstore with an in-store coffee cart.
ANSWER: C

84. In a(n) ___ environment, the service employees are physically present while customers are
involved in the service production process at an arm s length.
A. Self-service.
B. Vertical service
C. Remote service
D. Saleable service
ANSWER: A

85. ___ is the customers composite of mental images of the service firms physical facilities.
A. Internal response moderators
B. Perceived services cape.
C. Cognitive response
D. Emotional response.
ANSWER: B

86. Total customer value consists of all of the following components except
A. Product value
B. Personal value.
C. Image value
D. Time value.
ANSWER: B

87. The emotional states of pleasure-displeasure, arousal-nonarousal, and dominance-

submissiveness are types of ___
A. Internal response moderators
B. The holistic environment.
C. Individual behaviours.
D. Social interactions
ANSWER: C

88. Doing promotional activity is difficult in the marketing of which of the following services.
A. Leisure service industry
B. Education industry.
C. NGO.
D. Public sector.
ANSWER: C

89. Consumer moods and attitudes are types of

A. Physiological customer responses
B. Emotional customer responses
C. Individual approach behaviours
D. Internal response moderators
ANSWER: B

90. Consumer feelings of pain, comfort, and physically fit are types of
A. Physiological customer responses
B. Emotional customer responses
C. Individual approach behaviours
D. Cognitive customer responses.
ANSWER: D

91. The three primary visual stimuli that appeal to consumers on a basic level are
A. Harmony, contrast, and clash.
B. Size, shape, and colour.
C. Blue, yellow, and green.
D. Red, blue, and green.
ANSWER: B

92. To manage demand and supply, the company can

A. Ask the customers to wait in peak demand
B. Adopt reservation systems to balance the demand
C. Divert to competitors.
D. Deliver substitute products to customers.
ANSWER: B

93. Which of the following statements pertaining to colours is false?

A. Warm colours are perceived as aloof or formal.
B. Children appear to favour brighter colours.
C. Adults tend to favour softer tones.
D. Dark colours make large empty spaces look smaller.
ANSWER: D

94. Which of the following statements pertaining to the location of the firm is false?
A. Location decision should consider the amount of customer involvement necessary to provide the
service.
B. Low contact firms should consider moving sites that are closer to sources of supply,
transportation and labour.
C. The actual location of high-contact services should be close to the street as possible.
D. The firm’s facility should be compatible with its surrounding environment.
ANSWER: D

95. Managing the peak demand becomes difficult due to ___ nature.
A. Intangibility.
B. Perishability.
C. Inseparable.
D. Heterogenous.
ANSWER: B

96. The service industry has grown many folds due to ___
A. less growth in other sectors
B. more growth in all sectors
C. more affluence of customers
D. effective marketing strategies of service marketers
ANSWER: C

97. Growth in leisure and entertainment services due to ___

A. more surplus money left with customers
B. interest that people want to spend leisure time fruitfully
C. more support from the government to invest in such an industry.
D. growth of other sectors contributed to this growth
ANSWER: A

98. Which of the following statements is not true?

A. Combinations of warm and cool colours can create relaxing, yet stimulating atmospheres.
B. Lighter hues are popular for fixtures.
C. Darker hues are used for attention grabbers.
D. Colour does not influence the consumer spirits
ANSWER: D

99. ___ encourage quick decisions and work best for businesses where low-involvement purchase
decisions are made.
A. Response moderators.
B. Scent appeals.
C. Warm colours.
D. Sound appeals
ANSWER: A

100. Positioning map in services will helps too ___

A. Identify the position of the company on the world map.
B. Identify the position of the company on the industry map.
C. Identify the position of the company on the local map.
D. Know-how the brand is perceived by customers among other players in the market.
ANSWER: D

101. Word-of-Mouth communication networks are particularly important for service firms because
A. Service customers tend to rely more on personal than non-personal sources of information.
B. Service firms do not believe in promotional efforts.
C. Service firms can seldom afford to pay for promotional expenditures.
D. Service customers tend to rely more on non-personal than personal sources of information.
ANSWER: A

102. Initially, bank counter staff were uncomfortable with their new task of selling services to
customers.
They viewed themselves as bank counter staff and not salespersons. This is an example of which
type of conflict?
A. Channel conflict.
B. Organization/client conflict
C. Person/role conflict.
D. Inter-client conflict.
ANSWER: C
103. As part of the internal marketing strategy, the company takes up
A. Performance appraisal.
B. Training employees.
C. Assigning more responsibilities
D. Transferring the employees.
ANSWER: B

104. The service quality is determined on the basis of ___.

A. Employee involvement.
B. Customer involvement.
C. Top management involvement
D. Employee and customer involvement.
ANSWER: D

105. Services marketing is important in today’s context because of it

A. Generates more customers.
B. Generates more GDP.
C. Generates more jobs.
D. Generates more jobs and GDP.
ANSWER: D

106. ___ gives discretion to front-line personnel to meet the needs of consumers creatively.
A. Empowerment
B. Enfranchisement.
C. Service passion
D. Service climate.
ANSWER: A

107. It is important for organizations to change and develop. The stages that service organisations go
through are known as the Product Life Cycle. The Introduction Stage refers to
A. Introducing a change to the service.
B. Introducing a new service overseas.
C. Introducing new ideas to the market.
D. Introducing existing services to new markets.
ANSWER: C

108. It is important for organizations to change and develop. The stages that service organisations go
through are known as the Product Life Cycle. The Growth Stage refers to
A. Growth of the new service in the minds of employees.
B. Introduction of new services to grow the portfolio of the company
C. Grow advertising spend to loyal customers
D. Raise awareness of new service to new customer
ANSWER: B

109. . It is important for organizations to change and develop. The stages that service organisations
go through are known as the Product Life Cycle. The Saturation Stage refers to
A. All competitors leave the marketplace.
B. New competitors join the marketplace.
C. Many competitors seeking the same customers
D. All competitors seek the same customers.
ANSWER: C

110. It is important for organizations to change and develop. The stages that service organisations go
through are known as the Product Life Cycle. The Decline Stage refers to
A. Sales decline but remain profitable.
B. Profitability improves and sales decline.
C. Sales increase and profitability declines.
D. Profitability declines and sales decline.
ANSWER: D

111. Which of the following was NOT discussed as a Driver for Service Change?
A. Regulations
B. Perishability
C. Consumer
D. Competitors
ANSWER: B

112. The characteristics of what, when and how the new services are delivered to the customer are
called
A. Continuum of new service development.
B. Service delivery continuum.
C. New service and customer delivery continuum
D. Customer delivery continuum
ANSWER: B

113. Strategies to increase the efficiency of service operations include all of the following except
A. Training the employees
B. Reduce the waiting time.
C. Giving subcontracting to others.
D. Engage the customers effectively by explaining the service process
ANSWER: C

114. One of the major lessons to learn from the Service-Profit Chain is:
A. Customer loyalty leads to customer satisfaction
B. Employee retention leads to employee satisfaction
C. The firm’s profitability leads to customer satisfaction.
D. Revenue growth leads to customer satisfaction
ANSWER: A

115. Important components of internal service quality include all of the following except for
A. Customer referrals.
B. Rewards and recognition
C. Workplace design.
D. Job design.
ANSWER: A

116. Customer retention, repeat business, and customer referrals are alternative measures for
A. Internal service quality.
B. External service value.
C. Employee satisfaction.
D. Customer loyalty.
ANSWER: D

117. The buying process of services becomes complicated because

A. Difficult to assess and compare.
B. No direct sales are available.
C. Many products lead to confusion.
D. Door delivery is not possible.
ANSWER: A

118. The consumer management areas of particular importance to service marketers are
A. Managing customer participation
B. Managing customer waits.
C. Managing uncooperative customers
D. Customer relationship management
ANSWER: A

119. Efforts to transform customers into partial employees should not be interpreted as the firms’
way of distancing itself from the customer. This is consistent with which of the following guidelines
for increasing customer participation?
A. Develop customer trust.
B. Promote the benefits and stimulate trial.
C. Understand customer habits.
D. Monitor and evaluate performance.
ANSWER: B

120. Blueprints identify all of the following process steps except

A. The direction in which processes flow
B. The time it takes to move from one process to another.
C. The costs involved with each processing site.
D. The amount of inventory build-up at each step
ANSWER: D

121. The most common mistake made when constructing a service blueprint is
A. Bottlenecks are not identified correctly
B. Failure points are not identified correctly
C. The blueprint is one-sided.
D. Representing only the firm’s perception of the process
ANSWER: D

122. Co-production of services is made possible due to ___ inherent in the production of services.
A. Homogeneity.
B. Intangibility.
C. Heterogeneity.
D. Inseparability.
ANSWER: D

123. Internal marketing refers to which of the following options.

A. Marketing its products to its customers.
B. Marketing its products to its employees.
C. Marketing to local customers.
D. Ensuring that the employees are satisfied in the organization.
ANSWER: D

124. Physical evidence helps

A. To evaluate the service by customers
B. To deliver the services
C. To evaluate the services by the provider.
D. To assess the quality by the third party.
ANSWER: A

125. The augmented product is one that offers

A. Basic services
B. Additional services
C. Services which are more valuable than any other competitors
D. Multiple services
ANSWER: C

126. Potential product is the one which can be___.

A. Enjoys a competitive edge wherein no one can come nearby.
B. Satisfies customer needs.
C. Caters to large segments
D. Is available in all the places.
ANSWER: A

127. In order to win over the competitors and attract customers, the company need to create ___.
A. New markets.
B. New customers
C. Meaningful unique selling proposition which is valuable and has more opportunities.
D. More products.
ANSWER: C

128. While advertising the service product, the marketers need to___.
A. Show the service product
B. Need not to show the service product
C. Show some tangible clues to help the customers to understand and evaluate
D. Create a world-class advertisement to attract customers.
ANSWER: C

129. Customers may go dissatisfied even when the company offers the best in the industry due to
A. More competition in the market
B. More customers in the market
C. More products in the product line
D. The customers expect more than what the company offers due to more exaggerated
advertisements.
ANSWER: D

130. Internal marketing refers to satisfying the

A. Employees of the organization.
B. Customers of the organization.
C. Customers as well as employees.
D. public
ANSWER: A

131. Customers may get dissatisfied due to

A. Less waiting time
B. More waiting time
C. More products
D. Fewer products.
ANSWER: B

132. Dissatisfaction due to more waiting time can be resolved by

A. Introducing reservation systems.
B. Asking the customers to come next time.
C. Asking the customers politely to wait.
D. Reducing demand.
ANSWER: A

133. When waiting time is unavoidable, the company can

A. Ask the customers to wait for some time.
B. make the customers wait in the canteen.
C. Provide refreshments to customers.
D. Provide magazines, newspapers and show relevant movies/Videos to kill the time.
ANSWER: D

134. When the demand is more than the supply, then the company can
A. Expand the facility
B. Ignore the excess demand
C. Ask the customers to wait for some time
D. Divert the excess demand to competitors
ANSWER: A

135. Service quality much depends on

A. Customer involvement in the process
B. Timing of the delivery process
C. The involvement of the customer and employee
D. The timing of the process
ANSWER: C

136. In the services marketing mix. people refer to ___.

A. Employees and customers
B. Customers
C. Employees
D. Public at large
ANSWER: A

137. Physical evidence is more important in service marketing because

A. It is the evidence of service quality
B. Customers are going to value based on this evidence.
C. Every service provider uses it
D. every employee expects this
ANSWER: B
138. ___ act as a clue for physical evidence.
A. Interior of the building
B. Cheque leaves
C. Quotation
D. Food
ANSWER: A

139. Service delivery becomes difficult without the support of the ___
A. Employee
B. Customer
C. Organization.
D. managers
ANSWER: B

140. Product line refers to

A. Arrangement of products in the line.
B. The assortment of products at the shop
C. Variety of products the company offers to customers.
D. Waiting time of the customers.
ANSWER: C

141. Empathy refers to

A. Providing service at the expected level.
B. Making service available at all times.
C. Being considerate and ready to assist customers.
D. Providing service at doorstep.
ANSWER: C

142. Reliability refers to

A. Ability to perform the service dependably and accurately.
B. Ability to perform the service at a cheap cost.
C. Ability to perform the service in less time.
D. Ability to perform the service at all the time.
ANSWER: A

143. Assurance refers to

A. Trust and confidence of the employees in the customers
B. Trust and confidence of the customers in employees
C. The promise was given to stakeholders
D. Consistent performance by the company
ANSWER: B

144. Gap model indicates the

A. Possible failures in the service delivery process
B. The outcome of the process
C. Process of the service delivery
D. The sequence in which service delivered
ANSWER: A

145. Service recovery refers to

A. Recover the loss from the customers
B. Recover the loss from the competitors
C. Recover from the failure
D. Recover from the market
ANSWER: C

146. Service encounter refers to

A. conveying the service products to customers
B. Selling the products to the customers
C. Contact established with the customer at the delivery process
D. Encountering the failures
ANSWER: C

147. Customer expectation becomes exaggerated by

A. Exaggerated advertising
B. The acts of competitors
C. The activities of middlemen
D. Over expectation from the service provider
ANSWER: A

148. Intangible nature of services poses

A. Problem to marketers
B. Problems to customers
C. The difficulty for the researcher
D. Problem for service designers
ANSWER: A

149. In order to manage the Peak-time demand, the service provider can ___
A. Manage by introducing more products
B. Manage by adding additional facilities
C. Manage by diverting the customers for other services
D. Manage by asking the customers to wait for some time
ANSWER: B

150. The service quality of the company may be affected by the act of ___
A. Receptionist.
B. Competitors.
C. Advertisers.
D. System administrator.
ANSWER: A
1. “Every business is a service business”- Who quoted this sentence?
A. Philip Kotler
B. Gary Hamel
C. Ravi Shankar
D. Ramaswamy & Namakumari
ANSWER: A
2. Which of the following products is an example of intangible dominant?
A. Insurance
B. Farming.
C. Mining.
D. Teaching
ANSWER: D
3. Which of the following statements about the pricing of services (compared to the pricing of
goods) is false?
A. The demand for services tends to be more elastic than the demand for goods
B. Cost-oriented pricing is more difficult for services.
C. Comparing prices of competitors is more difficult for service consumers
D. Consumers are less able to stockpile services by taking advantage of discount prices
ANSWER: B
4. Charging customers different prices for essentially the same service is called
A. Price discrimination
B. Supply and demand.
C. Complementary
D. Substitutes.
ANSWER: A
5. Which of the following is not generally accepted as being part of the extended marketing mix for
services?
A. Product
B. Price
C. Process
D. Practice
ANSWER: D
6. A buyer’s perception of value is considered a trade-off between
A. Product value and psychic cost.
B. Total customer value and total customer cost
C. Image value and energy cost
D. Service value and monetary cost.
ANSWER: D
7. Services are characterized by all of the following characteristics except for
A. Intangibility.
B. Homogeneity
C. Perishability.
D. Inseparability
ANSWER: B
8. Which of these statements can be considered as false.
A. Services cannot be touched or seen in the same manner as goods
B. Consumer judgments about services tend to be more subjective than objective
C. Customers involvement affects service quality
D. Services are first produced, then sold, then consumed.
ANSWER: D
9. Of the four unique service characteristics that distinguish goods from services, the one that is the
primary source of the other three characteristics is:
A. Intangibility
B. Inseparability.
C. Perishability.
D. Heterogeneity.
ANSWER: A
10. Services that occur without interruption, confusion, or hassle to the customer is called
A. Seamless service
B. Service audit.
C. Functional service
D. Departmental service
ANSWER: A
11. The mental energy spent by customers to acquire service is referred to as _____.
A. Image costs
B. Monetary price.
C. Energy costs
D. Psychic costs.
ANSWER: C
12. The unique service characteristic that reflects the interconnection between the service firm and
its customer is called
A. Intangibility
B. Inseparability
C. Homogeneity
D. Perishability.
ANSWER: B
13. Which of the following is NOT one of the service encounter themes?
A. Spontaneity
B. Adaptability
C. Responsiveness
D. Recovery
ANSWER: C
14. Which of the following statements pertain to inseparability is false?
A. As customer contact increases, the efficiency of the firm decreases.
B. Customers can affect the type of service desired
C. Customers can affect the length of the service transaction.
D. Customers can affect the cycle of demand
ANSWER: A
15. In addition to the traditional four Ps, the services marketing mix includes people, physical
evidence, and:
A. Inseparability.
B. Planning
C. Production
D. Process
ANSWER: D
16. Distinct characteristic of services is_____________
A. Intangibility
B. Inseparability
C. Variability
D. Perishability
ANSWER: A
17. The unique service characteristic that deals specifically with the inability to inventory services is
A. Inseparability
B. Intangibility
C. Homogeneity
D. Perishability
ANSWER: D
18. Which of the following strategies increases the supply of service available to consumers?
A. The use of creative pricing strategies
B. The use of reservation systems
C. Capacity sharing
D. Developing complementary services
ANSWER: B
19. Customer satisfaction can be defined by comparing
A. Predicted service and perceived service
B. Predicted service and desired service
C. Desired service and perceived service
D. Adequate service and perceived service
ANSWER: C
20. The demand strategy in which service providers utilize their downtime by marketing to different
segments with different demand patterns is associated with which of the following?
A. The use of creative pricing strategies
B. The use of reservation systems
C. Capacity sharing
D. Developing complementary services.
ANSWER: C
21. The __________ dimension is an assessment of the firm’s consistency and dependability in
service performance
A. Empathy.
B. Responsiveness.
C. Assurance
D. Reliability.
ANSWER: D
22. Which of the following would not be considered a tangible clue?
A. The appearance of employees
B. The appearance of the firm’s physical facilities
C. The smile on an employee’s face
D. The quality of instruction in an educational setting.
ANSWER: D
23. Minimizing the amount of role conflict and role ambiguity experienced by employees will help
reduce the size of this gap is known as ____________.
A. Knowledge gap.
B. Standards gap
C. Delivery gap.
D. Communications gap
ANSWER: C
24. Fixing a right price for services offered is difficult because of ____________.
A. perishability.
B. heterogeneity.
C. inseparability.
D. intangibility.
ANSWER: D
25. The world’s largest industry in the private sector and highest projected generator of jobs
is______
A. The hospitality industry
B. Health services
C. Professional services.
D. Business services
ANSWER: D
26. Focusing the firms marketing efforts toward the existing customer base is called
A. Excellent customer service
B. Conquest retention
C. Customer retention
D. Courteous retention
ANSWER: C
27. Which of the following is an example of a common research objective in services?
A. to monitor changing customer expectations in an industry
B. to discover customer requirements or expectations for a service
C. to assess gaps between customer expectations and perceptions
D. all the above
ANSWER: D
28. The consumer decision process consists of
A. Stimulus, problem awareness, and purchase stages
B. Pre-purchase, consumption, and post-purchase stages
C. Problem awareness, evaluation of alternatives, and post-purchase behaviour
D. Stimulus, information search, and post-purchase behaviour
ANSWER: B
29. ____ involves identifying the benefits and attributes that customers expect in a service.
A. Future expectations research
B. Requirements research
C. Lost customer research
D. Process checkpoint evaluations
ANSWER: B
30. Service consumers tend to be more brand loyal than goods consumers because
A. More choices are available
B. Brand loyalty lowers the amount of perceived risk
C. Each service provider provides many brands
D. Location of the provider is the major driver in the consumer selection process
ANSWER: B
31. Competitor intelligence should be gathered
A. Once a year.
B. Twice a year.
C. Continuously
D. When competition is more.
ANSWER: C
32. Which of the following is not a benefit of customer satisfaction?
A. The firm is more insulated from price competition.
B. The firm provides a positive work environment for its employees
C. Positive word-of-mouth is generated from satisfied customers
D. Satisfied customers make purchases more frequently
ANSWER: B
33. The service industry has several emerging trends that organisations need to be aware of. Which
of these
should organisations keep a lookout for?
A. New competitors entering the marketplace
B. Advances in the internet
C. Heightened customer expectations
D. Advances in e-commerce.
ANSWER: A
34. Andrea wants to be a dog groomer. She has enrolled in a training academy operated by Petsmart
to learn
how dogs should be handled during grooming. The moment Andrea attended the indoctrination
class at the
training academy was an example of an
A. service inquiry
B. service path crossing
C. service blueprint
D. service encounter
ANSWER: D
35. Customers ultimately determine the services by____________.
A. The type of competitors.
B. The levels of marketing effectiveness and operational efficiency
C. The cycle of fluctuations
D. The price of the competitors.
ANSWER: B
36. During a service recovery effort, the employee promptly refunded the customers money, but
threw the money at the customer. As a result, the recovery effort violated the customers
___________ justice need
A. Interactional
B. Ethical.
C. Social.
D. Procedural
ANSWER: C
37. Soft technologies refer to
A. Flexible rules that can be bent to meet customer needs.
B. The personal touches that ultimately lead to customer satisfaction.
C. Guidelines that permit employee empowerment
D. Hardware that facilitates the production of a standardized
ANSWER: B
38. The __________ is calculated by dividing the activity time by the number of locations at which
the
activity is performed.
A. Service cost per meal
B. Maximum output per hour
C. Process time.
D. Activity time.
ANSWER: C
39. Which of the following is not a step in the construction process of a service blueprint?
A. Obtaining scripts from both customers and employees
B. Segmenting customers based on the content of the script.
C. Identify steps in the process where the system can go awry.
D. Calculating the time frame for service execution.
ANSWER: C
40. A volume-oriented positioning strategy is achieved by
A. Reducing divergence.
B. Increasing complexity
C. Reducing complexity.
D. Increasing divergence
ANSWER: D
41. A buyers perception of value is considered a trade-off between
A. Product value and psychic cost
B. Total customer value and total customer cost.
C. Image value and energy cost
D. Service value and monetary cost.
ANSWER: D
42. Total customer value consists of all of the following components except
A. Product value.
B. Service value.
C. Image value
D. Personnel value.
ANSWER: D
43. H&R Block prepare 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. standardize
B. perishable
C. heterogeneous
D. tangible
ANSWER: B
44. Which of the following statements about the pricing of services (compared to the pricing of
goods) is false?
A. The demand for services tends to be more elastic than the demand for goods
B. Cost-oriented pricing is more difficult for services
C. Comparing prices of competitors is more difficult for service consumers.
D. Self-service is a viable competitive alternative.
ANSWER: D
45. __________ is a firm’s view toward planning its operations according to market needs
A. Marketing orientation
B. Marketing functions.
C. Marketing department.
D. Marketing forecast.
ANSWER: A
46. Which of the following is not a criteria for effective price discrimination?
A. The segments should be identifiable, and a mechanism must exist to price them differently.
B. Different groups of consumers should have similar responses to price.
C. Segments should be large enough to be profitable
D. Incremental revenues should exceed incremental costs.
ANSWER: B
47. Service firms often find themselves in a three-cornered fight between
A. Engineering, production, and accounting
B. Marketing, finance, and human resources
C. Operations, accounting, and marketing.
D. Human resources, marketing and operations
ANSWER: D
48. Customer frustration resulting from receiving poor service is most similar to
A. Image costs.
B. Monetary price
C. Energy costs.
D. Psychic costs.
ANSWER: D
49. Among many services, the demand for medical services tends to be __________.
A. Inelastic.
B. Elastic.
C. Substitute demand
D. Price cross elastic demand
ANSWER: A
50. Which of the following is not an element of people?
A. Motivation
B. Teamwork
C. Flow of activities
D. Customer training
ANSWER: C

51. The extent to which customers recognize and are willing to accept variations in service
performance is called the
A. provider gap
B. zone of tolerance
C. customer gap
D. service paradigm
ANSWER: B
52. The ______ is a useful framework for describing and analyzing service performances.
A. Black Box
B. metaphor of a theater
C. iceberg principle
D. three-dimensional matrix
ANSWER: B
53. Technique that allows consumers to either buy Service A and Service B together on purchase one
service
separately is called
A. Long-term bundling
B. Mixed bundling
C. Price bundling.
D. Product bundling
ANSWER: C
54. Which pricing strategies encourage the customer to expand his/her dealings with the service
provider?
A. Relationship pricing
B. Price bundling.
C. Benefit-driven pricing.
D. Efficiency pricing.
ANSWER: A
55. Studies suggest that price is more likely to be used as a cue to quality under the following
conditions?
A. When alternatives are of bad products
B. When company new to the market
C. When price is the primary differential information available
D. When customer do not have knowledge
ANSWER: C
56. The primary role of a service firms for customer in communication mix is to ……
A. Confuse customers.
B. Inform and remind customers
C. Oppose the competitor s claim
D. Persuade the dealers.
ANSWER: B
57. The plan for differentiating the firm from its competitors in consumers eyes is referred to as the
firms
A. Communication mix
B. Positioning strategy.
C. Publicity.
D. Target marketing
ANSWER: B
58. Differentiation approaches such as competence, courtesy, reliability, and responsiveness are
forms of
A. Product differentiation
B. Personnel differentiation
C. Image differentiation
D. Service differentiation.
ANSWER: B
59. The appropriate communication content during the introduction stage of the product life cycle
would be
A. Informational.
B. Informational and persuasive
C. Persuasive.
D. Persuasive and reminder.
ANSWER: B
60. In terms of the levels of relationship strategies, the first level is:
A. Customization bonds
B. Financial bonds
C. Structural bonds
D. Social bonds
ANSWER: B
61. Which one of the following communication approaches would be appropriate during the growth
and maturity stages of the product life cycle?
A. Informational.
B. Informational and persuasive
C. Persuasive.
D. Persuasive and reminder
ANSWER: D
62. The primary objective of a firms communication mix during the pre-consumption choice stage is
to
A. sell the product
B. Minimize the perceived risk associated with the purchase
C. Encourage repeat purchases
D. Persuasively convince customers why the firms brand is superior to the competitors
ANSWER: D
63. The perceived consequences of a consumer s purchase decision are
A. Financial, social and performance
B. Social, ethical and performance.
C. Performance, social and ethical.
D. Ethical, social and psychological
ANSWER: A
64. Tangible clues are more important when services are
A. Highly perishable.
B. Tangible dominant.
C. Intangible dominant
D. Heterogeneous
ANSWER: C
65. Which of the following communication objectives becomes the most important during the post-
consumption evaluation stage
A. Informing customers
B. Managing customer expectations.
C. Reducing consumer perceived risk
D. Persuading customers
ANSWER: C
66. Branding of services becomes difficult ,because they are ___________
A. Intangible.
B. Heterogeneous.
C. Perishable.
D. Inseperable.
ANSWER: A
67. Word-of-Mouth communication networks are particularly important for service firms because
A. Service customers tend to rely more on personal than non-personal source of information
B. Service firms only offer one brand of service.
C. Service firms can seldom afford to pay for promotional efforts.
D. Service customers tend to rely more on non-personal than personal sources of information
ANSWER: A
68. The suggested communication strategy to use when the product is intangible dominant is to
A. Create an intangible image for the product.
B. Create awareness for the product
C. Surround the product with tangible evidence.
D. Make sure the product is in the evoked set of
ANSWER: C
69. . __________ is an overall favourable impression or unfavourable impression based on early
stages of the service encounter.
A. Cognitive dissonance.
B. Environmental stimulus
C. Visual pathway.
D. Halo effect.
ANSWER: D
70. The advantage that the E-marketing communications carries is …………
A. Reaching a widely dispersed audience.
B. Being cost-effective.
C. Being personalized.
D. More customer satisfaction.
ANSWER: A
71. A disadvantage of e-marketing is
A. High cost.
B. Low reach.
C. Loss of personal contact
D. Less satisfaction.
ANSWER: C
72. Which of the following is not a component of a service firms physical evidence?
A. Parking.
B. Employee appearance
C. Billing statements.
D. In-house process equipment .
ANSWER: D
73. One of the advantages of requiring employees to wear uniforms is that it reduces the customers
perception of __________.
A. Intangibility.
B. Inseparability.
C. Heterogeneity.
D. Socialization.
ANSWER: C
74. which of the following is not an advantage of requiring employees to wear uniforms?
A. Identifies the firms personnel
B. Provides price expectations to customers.
C. Implies a coherent group structure
D. Provides a physical symbol that embodies the groups ideals and attribute
ANSWER: B
75. __________ is the study of the use of physical evidence to create service environments and its
influence
on the perceptions and behaviours of individuals
A. Ergonomics
B. Environmental psychology.
C. Physics
D. Physical sociology
ANSWER: B
76. Internal marketing deals with
A. Marketing the products to employees
B. Marketing the products in the local market
C. Marketing the products inside the country
D. Identifying and taking care of employees need and wants
ANSWER: D
77. What is mean by interactive marketing?
A. Marketing by interacting with employees.
B. Marketing by interacting with dealers
C. Marketing done by interacting between employees and customers
D. Marketing by interacting with top management.
ANSWER: C
78. Consumer responses to environmental stimuli are characterized by approach or avoidance
behaviours.
Consumer approach behaviour is defined as
A. A desire to stay in the market.
B. A desire to explore many products
C. A desire to communicate with society
D. Feelings of satisfaction.
ANSWER: B
79. In order to improve the process and performance of the company towards the customers they
should try to …….
A. Modernize the building.
B. Modernize the product.
C. Reduce the waiting time by adopting reservation system.
D. Asking the customers to come another time.
ANSWER: C
80. When developing servicescapes, firms recognize that their physical environment will affect
employees and customers. This is primarily due to
A. Reflect the quality at all spheres
B. Intangibility.
C. Heterogeneity.
D. Perishability.
ANSWER: A
81. Consumers who seek convenience over price and personal attention are
A. Economic customers
B. Personalized customers
C. Apathetic customers.
D. Ethical customers.
ANSWER: B
82. Which of the following is NOT an example of an ambient condition in a retail environment?
A. Music.
B. Signs.
C. Scents
D. Lighting.
ANSWER: A
83. Ambient conditions will have the least effect on customer behaviour in which of the following
service scapes?
A. A bakery shop
B. An air-conditioned hotel.
C. An open five-story parking garage
D. Bookstore with an in-store coffee cart.
ANSWER: C
84. In a(n) _______ environment, the service employees are physically present while customers are
involved in the service production process at an arm s length.
A. Self-service.
B. Vertical service
C. Remote service
D. Saleable service
ANSWER: A
85. __________ is the customers composite of mental images of the service firms physical facilities.
A. Internal response moderators
B. Perceived servicescape.
C. Cognitive response
D. Emotional response.
ANSWER: B
86. Total customer value consists of all of the following components except
A. Product value
B. Personal value.
C. Image value
D. Time value.
ANSWER: B
87. The emotional states of pleasure-displeasure, arousal-nonarousal, and dominance-
submissiveness are types of __________
A. Internal response moderators
B. The holistic environment.
C. Individual behaviours.
D. Social interactions
ANSWER: C
88. Doing promotional activity is difficult in marketing of which of the following services.
A. Leisure service industry
B. Education industry.
C. NGO.
D. Public sector.
ANSWER: C
89. Consumer moods and attitudes are types of
A. Physiological customer responses
B. Emotional customer responses
C. Individual approach behaviours
D. Internal response moderators
ANSWER: B
90. Consumer feelings of pain, comfort, and physical fit are types of
A. Physiological customer responses
B. Emotional customer responses
C. Individual approach behaviours
D. Cognitive customer responses.
ANSWER: D
91. The three primary visual stimuli that appeal to consumers on a basic level are
A. Harmony, contrast, and clash.
B. Size, shape, and colour.
C. Blue, yellow, and green.
D. Red, blue, and green.
ANSWER: B
92. To manage demand and supply, the company can
A. Ask the customers to wait in peak demand
B. Adopt reservation systems to balance the demand
C. Divert to competitors.
D. Deliver substitute products to customers.
ANSWER: B
93. Which of the following statements pertaining to colours is false?
A. Warm colours are perceived as aloof or formal.
B. Children appear to favour brighter colours.
C. Adults tend to favour softer tones.
D. Dark colours make large empty spaces look smaller.
ANSWER: D
94. Which of the following statements pertaining to the location of the firm is false?
A. Location decisions should consider the amount of customer involvement necessary to provide the
service.
B. Low contact firms should consider moving sites that are closer to sources of supply,
transportation and labour.
C. The actual location of high-contact services should be a close to the street as possible.
D. The firm’s facility should be compatible with its surrounding environment.
ANSWER: D
95. Managing the peak demand becomes difficult due to______________nature.
A. Intangibility.
B. Perishability.
C. Inseparable.
D. Heterogenous.
ANSWER: B
96. Service industry has grown many folds due to _________
A. less growth in other sectors.
B. more growth in all sectors
C. more affluence of customers
D. effective marketing strategies of service marketers
ANSWER: C
97. Growth in leisure and entertainment services due to ________
A. more surplus money left with customers
B. interest that people want to spend leisure time fruitfully
C. more support from government to invest in such industry.
D. growth of other sectors contributed for this growth
ANSWER: A
98. Which of the following statements is not true?
A. Combinations of warm and cool colors can create relaxing, yet stimulating atmospheres.
B. Lighter hues are popular for fixtures.
C. Darker hues are used for attention grabbers.
D. Colour does not influence the consumer spirits
ANSWER: D
99. __________ encourage quick decisions and work best for businesses where low-involvement
purchase decisions are made.
A. Response moderators.
B. Scent appeals.
C. Warm colours.
D. Sound appeals
ANSWER: A
100. Positioning map in services will helps to …..
A. Identify the position of the company in the world map.
B. Identify the position of the company in the industry map.
C. Identify the position of the company in the local map.
D. Know how brand is perceived by customers among other players in the market.
ANSWER: D

101. Word-of-Mouth communication networks are particularly important for service firms because
A. Service customers tend to rely more on personal than non-personal source of information.
B. Service firms do not believe in promotional efforts..
C. Service firms can seldom afford to pay for promotional expenditures.
D. Service customers tend to rely more on non-personal than personal sources of information.
ANSWER: A
102. Initially, bank counter staff were uncomfortable with their new task of selling services to
customers. They viewed themselves as bank counter staff and not salespersons. This is an example
of which type of conflict?
A. Channel conflict.
B. Organization/client conflict
C. Person/role conflict.
D. Inter-client conflict.
ANSWER: C
103. As part of internal marketing strategy , company takes up
A. Performance appraisal.
B. Training the employees.
C. Assigning more responsibilities
D. Transferring the employees.
ANSWER: B
104. The service quality is determined on the basis of……
A. Employee involvement.
B. Customer involvement.
C. Top management involvement
D. Employee and customer involvement.
ANSWER: D
105. Services marketing is important in today’s context because it
A. Generates more customers.
B. Generates more GDP.
C. Generates more jobs.
D. Generates more jobs and GDP.
ANSWER: D
106. __________ gives discretion to front-line personnel to meet the needs of consumer’s creatively.
A. Empowerment
B. Enfranchisement.
C. Service passion
D. Service climate.
ANSWER: A
107. It is important for organizations to change and develop. The stages that service organisations go
through are known as the Product Life Cycle. The Introduction Stage refers to
A. Introducing a change to the service.
B. Introducing new service overseas.
C. Introducing new ideas to the market.
D. Introducing existing services to new markets.
ANSWER: C
108. It is important for organizations to change and develop. The stages that service organisations go
through are known as the Product Life Cycle. The Growth Stage refers to
A. Growth of the new service in the minds of employees.
B. Introduction of new services to grow the portfolio of the company
C. Grow advertising spend to loyal customers
D. Raise awareness new service to new customer
ANSWER: B
109. . It is important for organizations to change and develop. The stages that service organisations
go through
are known as the Product Life Cycle. The Saturation Stage refers to
A. All competitors leave the market place.
B. New competitors join the market place.
C. Many competitors seeking the same customers
D. All competitors seek the same customers.
ANSWER: C
110. It is important for organizations to change and develop. The stages that service organisations go
through are known as the Product Life Cycle. The Decline Stage refers to
A. Sales decline but remain profitable.
B. Profitability improves and sales decline.
C. Sales increase and profitability declines.
D. Profitability declines and sales decline.
ANSWER: D
111. The four core dimensions that customers use to judge websites at which they experience no
questions or problems are efficiency, fulfilment, privacy, and
A. assurance
B. reliability
C. empathy
D. dependability
ANSWER: B
112. The characteristics of what, when and how the new services are delivered to the customer are
called
A. Continuum of new service development.
B. Service delivery continuum.
C. New service and customer delivery continuum
D. Customer delivery continuum
ANSWER: B
113. Strategies to increase the efficiency of service operations include all of the following except
A. Training the employees
B. Reduce the waiting time.
C. Giving subcontracting to others.
D. Engage the customers effectively by explaining the service process
ANSWER: C
114. One of the major lessons to learn from the Service-Profit Chain is:
A. Customer loyalty leads to customer satisfaction
B. Employee retention leads to employee satisfaction
C. The firm’s profitability leads to customer satisfaction.
D. Revenue growth leads to customer satisfaction
ANSWER: A
115. Important components of internal service quality include all of the following except for
A. Customer referrals.
B. Rewards and recognition
C. Workplace design.
D. Job design.
ANSWER: A
116. Customer retention, repeat business, and customer referrals are alternative measures for
A. Internal service quality.
B. External service value.
C. Employee satisfaction.
D. Customer loyalty.
ANSWER: D
117. Buying process of services becomes complicated because
A. Difficult to assess and compare.
B. No direct sales available.
C. Many product lead to confusion.
D. Door delivery is not possible.
ANSWER: A
118. The consumer management areas of particular importance to service marketers are
A. Managing customer participation
B. Managing customer waits.
C. Managing uncooperative customers
D. Customer relationship management
ANSWER: A
119. Efforts to transform customers into partial employees should not be interpreted as the firms
way of distancing itself from the customer. This is consistent with which of the following guidelines
for increasing customer participation?
A. Develop customer trust.
B. Promote the benefits and stimulate trial.
C. Understand customer habits.
D. Monitor and evaluate performance.
ANSWER: B
120. Blueprints identify all of the following process steps except
A. The direction in which processes flow
B. The time it takes to move from one process to another.
C. The costs involved with each process site.
D. The amount of inventory build-up at each step
ANSWER: D
121. The most common mistake made when constructing a service blueprint is
A. Bottlenecks are not identified correctly
B. Failure points are not identified correctly
C. The blueprint is one-sided.
D. Representing only the firm’s perception of the process
ANSWER: D
122. Co-production of services is made possible due to __________ inherent in the production of
services.
A. Homogeneity.
B. Intangibility.
C. Heterogeneity.
D. Inseparability.
ANSWER: D
123. The internal marketing refers which of the following options.
A. Marketing its products to its customers.
B. Marketing its products to its employees.
C. Marketing to local customers.
D. Ensuring that the employees are satisfied in the organization.
ANSWER: D
124. Physical evidence helps
A. To evaluate the service by customers
B. To deliver the services
C. To evaluate the services by the provider.
D. To assess the quality by third party.
ANSWER: A
125. Augmented product is one which offers
A. Basic services
B. Additional services
C. Services which are more valuable than any other competitors
D. Multiple services
ANSWER: C
126. Potential product is the one which can be…….
A. Enjoys a competitive edge wherein no one can come nearby.
B. Satisfies customer needs.
C. Caters to large segments
D. Is available in all the places.
ANSWER: A
127. In order to win over the competitors and attract the customers, company need to create………….
A. New markets.
B. New customers
C. Meaningful unique selling proposition which is valuable and has more opportunities.
D. More products.
ANSWER: C
128. While advertising the service product, the marketers need to…….
A. Show the service product.
B. Need not to show the service product.
C. Show some tangible clues to help the customers to understand and evaluate.
D. Create world-class advertisement to attract the customers.
ANSWER: C
129. Customers may go dissatisfied even when the company offers the best in the industry due to
A. More competition in the market
B. More customers in the market
C. More products in the product line
D. The customers expect more than what the company offers due to more exaggerated
advertisements.
ANSWER: D
130. Internal marketing refers to satisfying the
A. Employees of the organization.
B. Customers of the organization.
C. Customers as well as employees.
D. public .
ANSWER: A
131. Customer may get dissatisfied due to
A. Less waiting time
B. More waiting time
C. More products
D. Less products.
ANSWER: B
132. Dissatisfaction due to more waiting time can be resolved by
A. Introducing reservation systems.
B. Asking the customers to come next time.
C. Asking the customers politely to wait.
D. Reducing the demand.
ANSWER: A
133. When waiting time is unavoidable, the company can
A. Ask the customers to wait for some time.
B. make the customers to wait in the canteen.
C. Provide refreshments to customers.
D. Provide magazines, newspapers and show relevant movie/Video to kill the time.
ANSWER: D
134. When the demand is more than the supply, then the company can
A. Expand the facility.
B. Ignore the excess demand.
C. Ask the customers to wait for some time.
D. Divert the excess demand to competitors.
ANSWER: A
135. Service quality much depends on
A. Customer involvement in the process.
B. Timing of the delivery process.
C. The involvement of the customer and employee.
D. The timing of the process.
ANSWER: C
136. In services marketing mix. people refers to ………………
A. Employees and customers
B. Customers
C. Employees
D. Public at large.
ANSWER: A
137. Physical evidence is more important in service marketing because
A. It is the evidence of service quality
B. Customers are going to value based on this evidence.
C. Every service provider uses it.
D. every employee expects this.
ANSWER: B
138. ___________ act as clue for physical evidence.
A. Interior of the building
B. Cheque leaves
C. Quotation
D. Food
ANSWER: A
139. Service delivery becomes difficult without the support of the _____
A. Employee
B. Customer
C. Organization.
D. managers.
ANSWER: B
140. Product line refers to
A. Arrangement of products in the line.
B. Assortment of products at the shop.
C. Variety of products company offers to customers.
D. Waiting time of the customers.
ANSWER: C
141. Empathy refers to
A. Providing service at the expected level.
B. Making service available at all the times.
C. Being considerate and ready to assist the customers.
D. Providing service at doorstep.
ANSWER: C
142. Reliability refers to
A. Ability to perform the service dependably and accurately.
B. Ability to perform the service at cheap cost.
C. Ability to perform the service in less time.
D. Ability to perform the service at all the time.
ANSWER: A
143. Assurance refers to
A. Trust and confidence of the employees on the customers.
B. Trust and confidence of the customers on employees
C. Promise given to stakeholders.
D. Consistent performance by the company.
ANSWER: B
144. Gap model indicates the
A. Possible failures in the service delivery process.
B. Outcome of the process.
C. Process of the service delivery.
D. The sequence in which service delivered.
ANSWER: A
145. Service recovery refers to
A. Recover the loss from the customers.
B. Recover the loss from the competitors.
C. Recover from the failure.
D. Recover from the market.
ANSWER: C
146. Service encounter refers to
A. conveying the service products to customers.
B. Selling the products to the customers.
C. Contact established with the customer at the delivery process.
D. Encountering the failures.
ANSWER: C
147. The American Customer Satisfaction Index (ACSI)
A. only examines intangible products
B. does not rank Internet service providers
C. tracks customer perceptions across representative industries from each of the economic sectors
D. indicates that customer satisfaction with services is typically higher than it is with goods
ANSWER: C
148. In tangible nature of services poses
A. Problems to marketers
B. Problems to customers.
C. Difficulty for the researcher.
D. Problem for service designers.
ANSWER: A
149. In order to manage the Peak-time demand, the service provider can ……..
A. Manage by introducing more products.
B. Manage by adding additional facilities.
C. Manage by diverting the customers for other services.
D. Manage by asking the customers to wait for some time.
ANSWER: B
150. Service quality of the company may be affected by the act of…..
A. Receptionist.
B. Competitors.
C. Advertisers.
D. System administrator.
ANSWER: A

C. Half Yearly

D. Continuously

View Correct Answer

D. Continuously

Total customer value consists of _______

A. Product Value

B. Image Value

C. Serrvice Value

D. All of the above

View Correct Answer

D. All of the above

1. A ……………. Is a form of product that consist of activities, benefits, or satisfaction offered for sale
that are essentially intangible and do not result in the ownership of anything?
a. Service
b. Demand
c. Need
d. Physical object
Answer: a

2. All of the following are examples of service except;

a. Banking
b. Hotels and motels
c. Tax preparation
d. Computer software
Answer: d

3. Distinct characteristics of services is ……………… ?

a. Intangible
b. Inseparability
c. Variability
d. Perishability
Answer: a

4. The services a customer expects are called ………………..services package?

a. Expected
b. Augmented
c. Primary
d. Secondary
Answer: c

5. Added features to an offering are called ……………….. service features?

a. Perceived
b. Secondary
c. Expected
d. Augmented
Answer: b

6. Intangibility, perishability, inseparability, and variability are the characteristics of :

a. Products
b. Services
c. Goods
d. Both ‘a’ and ‘b’
Answer: b

7. ……………… are the only service distributors which do not require direct human
interactions?
a. Electronic channels
c. Direct service channels
b. SSTS
d. Speculative channels
Answer: a

8. ……………… is the physical surroundings or the physical facility where the service is produced,
delivered and consumed.
a. Service space
b. Service place
c. Service escape
d. Service scope
Answer: c

9. ……………….. is defined as the caring, individualised attention that the firm provides its
customers .
a. Empathy
b. Responsiveness
c. Sympathy
d. Assurance
Answer: d

10. Which of the following is not a element of people?

a. Motivation
b. Team work
c. Customer training
d. Flow of activities
Answer: d

11. Which of the following is not an element of physical evidence?

a. Employees dress
c. Equipment
b. Employees training
d. Facility design
Answer: b

12. In the service system, customers may specify their needs and expectations to the service
provider, such expectations are called ……………..?
a. Feedback
b. Feed forward
c. Both ‘a’ and ‘b’
d. None of these
Answer: b

13. Which of the following is not generally accepted as being part of the extended marketing mix
for services?
a. Product
b. Price
c. Process
d. Practice
Answer: d

14. Services cannot be stored. This describes the ………….. characteristic of services?
a. Intangibility
b. Variability
c. Inconsistency
d. None of the above
Answer: c

15. ……………… describes the employees skills in serving the client.

a. Internal marketing
c. Interactive marketing
b. External marketing
d. Communicating market
Answer: c

Total customer value consists of all of the following components except _____

A. Personal Value

B. Product Value

C. Service Value

D. Image Value

View Answer
A. Personal Value

Standardized and customized flow of activities, simple and complex number of steps and customer
involvement by which a service is delivered is called _______.

A. Place Mix

B. Physical Evidence Mix

C. Process Mix

D. People Mix

View Answer

C. Process Mix

_____ is the environment in which the service is delivered and where the firm and customer
interact and any tangible components that facilitate performance or communication of the
service.

A. Physical evidence

B. Process

C. Place

D. People

View Answer

A. Physical evidence

“All human actors who play a part in service delivery and thus influence the buyer’s perceptions:
namely, the firm’s personnel, the customer and other customers in the service environment.”

A. Process

B. Physical Environment

C. People

D. Place

View Answer

C. People

__________ is a tool for simultaneously depicting the service process, the points of customer
contact, and the evidence of service from the customer’s point of view.

A. Front end planning

B. Service Blueprinting

C. Service Standardization

D. None of these

View Answer
B. Service Blueprinting

_________ is the physical surroundings or the physical facility where the service is produced,
delivered and consumed.

A. Servicespace

B. Servicescape

C. Serviceplace

D. Servicescope

View Answer

B. Servicescape

_______ is the culture where an appreciation for good service exists and where giving good service
to internal as well as ultimate, external customers is considered a natural way of life and one of
the most important norms by everyone.

A. Service culture

B. Corporate culture

C. Service Triangle

D. Service Quality Dimensions

View Answer

A. Service culture

A triangle of Company, Customers, Employees, Internal Marketing, External Marketing

communications and Interactive marketing is known as…………..

A. Marketing Triangle

B. Service Triangle

C. Communication Triangle

D. Both a and b

View Answer

B. Service Triangle

Tata Sky is the joint venture of Tata and ________.

A. Sony

B. Star

C. IBN

D. Zee

View Answer
B. Star

_______is NOT accepted as being part of the extended marketing mix for services.

A. Promotion

B. Place

C. Product

D. Practice

View Correct Answer

D. Practice

“Every business is a service business” was quoted by______.

A. Peter Drucker

B. Kevin Keller

C. Philip Kotler

D. Michael Porter

View Correct Answer

C. Philip Kotler

Services are characterized by all of the following characteristics except for________

A. Perishability

B. Homogeneity

C. Inseparability

D. Intangibility

View Correct Answer

B. Homogeneity

________is an example of intangible dominant.

A. Agriculture

B. Logistics

C. Teaching

D. Car Maintenance

View Correct Answer

C. Teaching

Services that occur without interruption confusion or hassle to the customer is called ______.

A. Seamless service
B. Digital Services

C. Marketing Myopia

D. Functional Services

View Correct Answer

A. Seamless service

The mental energy spent by customers to acquire service is referred to as _____.

A. Time Cost

B. Mental Cost

C. Energy cost

D. Acquisition Cost

View Correct Answer

C. Energy cost

The unique service characteristic that reflects the interconnection between the service firm and its
customer is called _______.

A. Intangibility

B. Inseparability

C. Perishability

D. Ubiquity

View Correct Answer

B. Inseparability

In addition to the traditional four Ps, the services marketing mix includes ________

A. Process, Physical Evidence & Purpose

B. People, Process & Physical Evidence

C. Product, People & Physical Environment

D. Public, Process and Practice

View Correct Answer

B. People, Process & Physical Evidence

_____ is mainly deals with the inability to inventory services.

A. Intangibility

B. Perishability

C. Inseparability
D. Tranquility

View Correct Answer

B. Perishability

Competitor intelligence should be gathered ______

A. Yearly

B. Decadely

C. Half Yearly

D. Continuously

View Correct Answer

D. Continuously

Total customer value consists of _______

A. Product Value

B. Image Value

C. Serrvice Value

D. All of the above

View Correct Answer

D. All of the above

Intangibility, Perishability, Inseparability & Variability are the characteristics of _______.

A. Products

B. Services

C. Goods

D. Both a&b

View Answer

B. Services

_______ is defined as the caring, individualized attention that the firm provides to its customers.

A. Empathy

B. Responsiveness

C. Sympathy

D. Assurance

View Answer

A. Empathy
Charging customers different prices for essentially the same service is called _________.

A. Price discrimination

B. Price Determination

C. Price segmentation

D. Price Settlement

View Answer

A. Price discrimination

Which of the following is not a type of Service encounters?

A. Remote encounters

B. Phone encounters

C. Face to face encounters

D. Check in Encounters

View Answer

D. Check in Encounters

Distinct characteristic of services is ____

A. Inseparability

B. Perishability

C. Intangibility

D. Variability

View Answer

C. Intangibility

Service marketing is the same as ________.

A. Digital Marketing

B. Retail Marketing

C. Ambush Marketing

D. Relationship Marketing

View Answer

D. Relationship Marketing

_________ are the only service distributors which do not require direct human interactions.

A. Electronic Channels

B. SSTs
C. Direct Service Channels

D. Speculative channels

View Answer

A. Electronic Channels

______is the main reason for difficulty in Services Marketing.

A. Separability

B. Intangibility

C. Availability

D. Demand Supply Gap

View Answer

B. Intangibility

In Services Marketing, All of the following are examples of services except __________.

A. Insurance & Banking

B. Income Tax Filing

C. Salon

D. Computer Software

View Answer

D. Computer Software

In this pricing strategy mostly services are sold at different prices by the same provider in different
markets is known as ______.

A. Price differentiation

B. Price discrimination

C. Market Pricing

D. Marketing Myopia

View Answer

B. Price discrimination

Which of the following is not a tangible dominant?

A. Detergents

B. Automobiles

C. Investment Management

D. Soft drinks
View Answer

C. Investment Management

Select name of the country having maximum percent of GDP attributed to services.

A. United States

C. China

C. Germany

D. India

View Answer

A. United States

______ is not an element of physical evidence.

A. Employee dress

B. Employee Training

C. Equipment

D. Facility design

View Answer

B. Employee Training

According to India Brand Equity Foundation, India’s average Gross Value Added (GVA) as a % of
total GVA for FY 2018 & FY 2019 is _______.

A. 40-45%

B. 50-55%

C. 60-65%

D. 70-75%

View Answer

B. 50-55%

________ is not an element of People.

A. Motivation

B. Teamwork

C. Flow of activities

D. Customer training

View Answer

C. Flow of activities
________ is the difference between customer expectations and perceptions.

A. Customer Delight

B. Customer Satisfaction

C. Customer Gap

D. The supplier Gap

View Answer

C. Customer Gap

SSTs stands for ______.

A. Stable Service Technologies

B. Social Service Technologies

C. Smart Service Technologies

D. Self Service Technologies

View Answer

D. Self Service Technologies

Which of the following is difficult to evaluate?

A. Jewellery

B. Auto repair

C. Furniture

D. Clothing

View Answer

B. Auto repair

Evaluation of Medical Diagnosis service is mainly depends on ________.

A. High in experience quality

B. High in credence quality

C. High in search quality

D. Both a and c

View Answer

B. High in credence quality

_________ can be characterized as pure service.

A. Teaching

B. Banking
C. Saloon

D. There’s no such thing like a pure service

View Answer

D. There’s no such thing like a pure service

 MCQ: Unit-I: Introduction to Services marketing
1. A ______________________ is a form of product that consists of activities, benefits, or
satisfactions offered for sale that are essentially intangible and do not result in the ownership
of anything.

a. Service
b. Demand
c. Need
d. Physical object

2. Distinct characteristic of services is_____________

a. Intangibility
b. Inseparability
c. Variability
d. Perishability
3. All of the following are examples of services EXCEPT:
e. a. banking.
f. b. hotels and motels.
g. c. tax preparation.
h. d. computer software.
4. Services are typically produced and consumed simultaneously. This is an example of the
________characteristic of services.

a. Intangibility
b. Variability
c. Inseparability
d. Simultaneously
e. Perishability

5. Services can not be stored. This describes the ___________characteristic of services. a.

Intangibility
b. Variability
c. Inseparability
d. Inconsistency
e. Perishability
6. Examples of pure tangible goods include all of the following EXCEPT: a. Soap.
b. Tax preparation.
c. Toothpaste.
d. Salt.
7. __________describes the employees skills in serving the client.
a. Internal Marketing
b. External Marketing
c. Relationship marketing
d. Interactive marketing
e. Communication Marketing
8. SSTS refers to __________
a. Service Standards Testing
b. Self- Service Technologies
c. Standard Service Technologies
d. Self Service Treatments
9. _____________ occurs when a company intentionally uses services as the stage, and goods
as the props, to engage individual customers in a way that creates a memorable event.

a. Hybrid offer
b. Core service
c. Augmented or ancillary product
d. Experience

10. Top firms audit service performance by collecting_________measurements to probe customer

satisfiers and dissatisfiers.
a. Customer satisfier
b. Customer complaint
c. Voice of the customer
d. Psychological

11. The services a customer expects are called the ______service package.
a. Expected
b. Augmented
c. Primary
d. Secondary
e. Perceived
12. The fact that a business traveler may have one very positive check-in experience at a hotel and
then a very negative check-in experience with a different employee on a subsequent visit is
evidence of service:

a. intangibility.
b. inseparability.
c. variability.
d. perishability.
13. Added features to an offering are called _________service features.
a. Expected
b. Augmented
c. Primary
d. Secondary
e. Perceived
14. The intangibility of services has implications for the choice of _________

a. Brand elements
b. Location
c. Price
d. Product features
e. Channels of distribution

15. __________cost refers to the product’s purchase cost plus the discounted cost of maintenance
and repair less the discounted salvage value
a. Total
b. Variable
c. Life cycle
d. Net
e. Out of pocket

16. Successful service companies focus their attention on both their customers and their
employees. They understand ___________________, which links service firm profits with
employee and customer satisfaction.

a. Internal marketing
b. Service-profit chains
c. Interactive marketing
d. Service differentiation

17. If a firm is practicing ____________________, the firm is training and effectively

motivating its customer-contact employees and all of the supporting service people to work as
a team to provide customer satisfaction.

a. Double-up marketing
b. Internal marketing
c. Interactive marketing
d. Service marketing
18. According to Parasuraman, Zeithaml & Berry , the most important determinant of service
quality is :
a. Responsiveness
b. Reliability
c. Assurance
d. Empathy
e. Tangibles

19. The extended marketing mix for services includes: People, Processes and _________ a.
Product
b. Place
c. Physical Evidence
d. Promotion
20. Which of the following is not an element of physical evidence?
a. Employee Dress
b. Employee Training
c. Equipment
d. Facility Design

21. Which of the following is not an element of people?

a. Motivation
b. Teamwork
c. Flow of activities
d. Customer training
22. Standardized and customized flow of activities , simple and complex number of steps and
customer involvement by which a service is delivered is called –

a. Place Mix
b. Physical evidence mix
c. Process mix
d. People mix
23. _ _________ is the environment in which the service is delivered and where the firm and
customer interact and any tangible components that facilitates performance or communication
of the service.

a. Physical evidence
b. Process
c. Place
d. People
24. All human actors who play a part in service delivery and thus influence the buyers perceptions
: namely , the firms personnel,, the customer and other customers in the service environment.
a. Process
b. Physical environment
c. People
d. Place

25. ____________ is a tool for simultaneously depicting the service process , the points of
customer contact and the evidence of service from the customers point of view .
a. Front of Planning
b. Service Blueprinting
c. Service standardization
d. None of these

26. __________ is the physical surroundings or the physical facility where the service is produced,
delivered and consumed.
a. Servicespace
b. Servicescape
c. Serviceplace
d. Servicescope

27. ___________ are the only service distributors which do not require direct human interactions.

a. Electronic channels
b. SST’s
c. Direct Service channels
d. Speculative channels

28. In the absence of a physical product, service providers need to consider the use of
______________ that enable customers to make a judgment on the service quality. a.
Intangible clues
b. Tangible clues
c. Blueprint
d. Performance measures
29. Compared with low-contact services, customers of high-contact services are more likely to
judge service quality on the basis of:

a. Price of the service

 b. Processes used in carrying out the service
c. Intangible outcomes eg. The performance of an investment portfolio
d. Tangible outcomes

30. Which of the following is not generally accepted as being part of the extended marketing mix
for services?

a. Product
b. Price
c. Process
d. Practice
 Services Marketing: A Practical Approach 

Week 1 MCQ and Key 

Q1. Which of the following statements are incorrect? 

a. Services are intangible 

b. Services are perishable 

c. Services can be co‐produced with customers 

d. Services are invariable 

Q2. When a music concert is recorded in a CD, which of the following sentences are correct? 

a. The CD becomes a service 
b. The CD becomes a service product 
c. The CD becomes both neither product nor service 
d. The concert and the CD together become a service with a tangible product. 
 
Q3.  Service is somewhat like a rental. The statement is 

a. incorrect 
b. correct 
c. somewhat correct 
d. none of the above 

Q4. Services Marketing is an attractive field of study for India because: 

a. Services contribute to more than half of India’s GDP 

b. Services are delivered by more than half of India’s population 

c. Services are more important than agriculture and manufacturing 

d. All of the above 

Q5. You watch the scenery while travelling in a bus from one city to another.  This is an example of 

a. superior service quality 
b. by‐service 
c. waste service 
d. augmented service 

Q6. Servicescape refers to: 

a. service landscape 
b. service factory 
c. place where the service is delivered 
 d. beautiful service landscape 

Q7. In the service system, customers may specify their needs and expectations to the service 
provider. Such specifications are called 

a. feedback 

b. feed‐forward 

c. how and why specifications 

d. none of the above 

Q8. Services are delivered within the marketing environment.  The macro‐environment can be 
analysed using which of the following tools? 

a. SWOT 
b. PEST 
c. TOWS 
d. None of the above 

Q9. High speed Internet is an enabler between supplier push and consumer pull as reasons for 
growth in services. Other enabler is 

a. High‐Tech products 

b. High‐Tech services 

c. Low‐tech products 

d. Low‐tech services 

Q10. The technological environment affects a company and its products and services. Information 
technology is capable of providing service outcomes which are: 

a. bit‐based 

b. atom‐based 

c. molecule‐based 

d. none of the above