Services Marketing

1 of 3 sets

Chapter: Unit 1

1. Which of the following sets of terms best describes a service?

A. Objects, devices, and performances
B. Effort, objects, and deeds
C. Things, devices, and performances
D. Deeds, effort, and performances
Answer:D

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2. Businesses such as fast food restaurants would fall where along the Scale of
Market Entities?
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A. On the extreme end of the intangible-dominant side

a
B. On the extreme end of the intangible-dominant side
C. In the middle of the continuum
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c
D. Left of the middle towards the tangible-dominant side
Answer:C
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3. Which of the following fields would be least likely to be described as intangible-
dominant?
A. Manufacturing
B. Education
C. Insurance
D. Banking
Answer:A

4. Which of the following statements is not true?

A. Service knowledge is obtained differently than goods knowledge.
B. Firms that define their businesses too narrowly have developed marketing myopia.
C. Goods are tangible-dominant.
D. All of the above are true.
Answer:D

5. The demand for services marketing knowledge has increased for all of the
following reasons except:
A. The tremendous growth in service-sector employment
B. Increasing service-sector contributions to the world economy
C. The deregulation of many service industries
D. The decline in service sector jobs
Answer:D

6. Which linkage within The Service Triangle reflects the ease with which a
customer uses a bank's ATM?
A. The systems--the customer
B. The service strategy--the customer
C. The systems--the people
D. The service strategy--the systems
Answer:D

7. The market-focused management model, supported by the service triangle, is

based on the belief that:
A. Front-line personnel tend to be more knowledgeable
B. Employees want to do good work
C. Customer satisfaction is related to employee turnover
D. A new accounting measures should be used
Answer:A

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

A. Intangibility
B. Homogeneity
C. Perishability
D. Heterogeneity
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

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 B. Inseparability
C. Homogeneity
D. Perishability
Answer:B

10. Which of the following is a marketing problem caused by intangibility?

A. Services have no costs of goods sold.
B. The consumer is involved in the production process.
C. Other consumers are involved in the production process.
D. Service standardization and quality control are difficult to achieve.
Answer:B

11. Possible solutions that minimize the problems caused by intangibility include
all of the following except:
A. The use of tangible clues.
B. The effective management of consumers.
C. The creation of a strong organizational image.
D. The use of personal sources of information.
Answer:C

12. Marketing problems caused by inseparability include all of the following except
for:
A. The service provides 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.
Answer:A

13. Which of the following scenarios is likely to lead to the highest levels of
customer dissatisfaction?
A. Higher demand than maximum available supply
B. Higher demand than optimal supply levels
C. Lower demand than optimal supply levels
D. All of the above scenarios result in customer dissatisfaction
Answer:D

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14. 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:A

15. Which of the following strategies increases the supply of service available to
consumers?
A. Increasing consumer participation
B. The use of creative pricing strategies
C. The use of reservation systems
D. Developing complementary services
Answer:D

16. The perishability-related strategy that may sometimes be associated with

consumer feelings that the service firm may be attempting to distance itself from
consumers is:
A. The use of reservation systems
B. Training public contact personnel
C. The use of third-parties to conduct service transactions
D. Increasing the amount of consumer participation
Answer:B

17. Which one of the following strategies is used to alter consumer demand?
A. Increasing consumer participation
B. Utilizing third parties
C. Utilizing creative pricing strategies
D. Sharing capacity
Answer:C

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

A. The quality of instruction in an educational setting
B. The appearance of employees
C. The appearance of the firm's physical facilities

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 D. The quality of paper stock use to produce a firm's brochures
Answer:D

19. The service sector that is the fastest growing sector in terms of employment is:
A. Wholesale and retail trade
B. Transportation and warehousing
C. Financial activities
D. Professional and business services
Answer:C

20. Which of the following features separate services from products? i.

Perishability ii Intangibility iii Reliability iv Inseparability
A. Only ii
B. i, ii and iii
C. i, ii and iv
D. ii, iii, and iv
Answer:B

21. Which of the following attributes of services make it difficult for a service
provider to evaluate them when compared to goods?
A. High search and experience quality
B. High experience and credence quality
C. High credence and search quality
D. Both b and c
Answer:B

22. Classification of products into goods, services, and ideas is determined by the:
A. Degree of labour intensiveness.
B. Type of markets.
C. Dominant component.
D. Skill of the service provider.
Answer:C

23. Services can be meaningfully analysed by using a five-category classification

scheme including type of market, degree of labour-intensiveness, degree of
customer contact, skill of service provider, and

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 A. Degree of competition within the service industry.
B. Goal of the service provider.
C. Market share of the service provider.
D. Employee structure of the service provider.
Answer:A

24. The appearance of the production facilities and the interpersonal skills of
actual service providers are critical in __________ services.
A. Low-contact
B. Equipment-based
C. Industrial
D. Nonprofessional
Answer:D

25. The necessary interaction between service provider and customer that allows a
service to be delivered is called
A. Customer contact.
B. Service exchange.
C. Marketing
D. Relationship marketing.
Answer:D

26. A problem encountered by service companies that change high-contact services

into lowcontact services is that the
A. Service becomes more expensive to deliver.
B. Quality of the service usually declines.
C. Service becomes less personaliz
Answer:C

27. What is the 5th unique characteristic of service markets? 1. Lack of ownership
2. Intangibility 3. Inseparability
A. Protractability
B. Serviceability
C. Homogeneity
D. Perishability
Answer:A

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28. Which of the following statements is correct?
A. Marketing is the term used to refer only to the sales function within a firm.
B. Marketing managers don't usually get involved in production or distribution decisions.
C. Marketing is an activity that considers only the needs of the organization; not the needs of
society as a whole.
D. It is the activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large.
Answer:B

29. Select name of the country having maximum percent of GDP attributed to
services
A. United States
B. China
C. Germany
D. India
Answer:D

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

A. Employee dress
B. Employee Training
C. Equipment
D. Facility design
Answer:D

31. Which of the following is not an element of People?

A. Motivation
B. Teamwork
C. Flow of activities
D. Customer training
Answer:B

32. 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

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 D. People Mix
Answer:C

33. Professionals such as Doctors, Lawyers or Photographers often charge for

missed appointments
A. Services are inseparable from their providers
B. Services cannot be inventoried
C. They prefer to avoid such clients
D. To reduce their workload
Answer:C

34. The key difference between goods and services is:

A. People
B. Production costs
C. Intangibility of services
D. Recruitment policy
Answer:B

35. The characteristic of services marketing that it cannot be saved, stored, resold,
or returned is known as:
A. Marketing
B. Price
C. Promotion
D. Advertisement
Answer:C

36. An e-mail service is a good example of

A. People processing service
B. Information processing service
C. Mental Stimulus processing service
D. Technology processing service
Answer:D

37. No two services are precisely alike. This characteristic is known as:
A. Selling
B. Production

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 C. Heterogeneity
D. Consumption
Answer:B

38. The main characteristic of Service is________

A. Non-existence
B. Balanced scorecard
C. Age and Lifecycle
D. Intangibility
Answer:C

39. A ___________ is a form of product that consists of activities, benefits,

orsatisfactions offered for sale that are essentially intangible and do not result in
the ownership ofanything.
A. Service
B. Demand
C. Need
D. Physical object
Answer:D

40. Distinct characteristic of services is_____________

A. Intangibility
B. Inseparability
C. Variability
D. Perishability
Answer:A

41. All of the following are examples of services EXCEPT:

A. Banking
B. Hotels and motels.
C. Tax preparation.
D. Computer software.
Answer:A

42. Services are typically produced and consumed simultaneously. This is an

example of the________characteristic of services.

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 A. Intangibility
B. Variability
C. Inseparability
D. Simultaneously
Answer:D

43. Services cannot be stored. This describes the ___________characteristic of

services.
A. Intangibility
B. Variability
C. Inseparability
D. Inconsistency
Answer:C

44. __________describes the employee’s skills in serving the client.

A. Internal Marketing
B. External Marketing
C. Relationship marketing
D. Interactive marketing
Answer:D

45. SSTS refers to __________

A. Service Standards Testing
B. Self- Service Technologies
C. Standard Service Technologies
D. Self Service Treatments
Answer:D

46. _____________ occurs when a company intentionally uses services as the stage,
and goods as theprops, 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
Answer:B

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47. 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
Answer:D

48. 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
Answer:C

49. Service marketers consider which of the following?

A. People/Participants, Physical evidence, Placement.
B. Participants, Physical evidence, Products
C. People, Products Process.
D. People/Participants, Physical evidence, Process.
Answer:D

50. Three types of customer expectations can be identified:

A. Internal expectations; Explicit expectations, Implicit expectations.
B. Fuzzy expectations, Explicit expectations, Implicit expectations
C. Internal expectations, External expectations, Implicit expectations.
D. none
Answer:B

51. Perceived Service Quality concept includes which of the following?

A. Credibility, Security, Process
B. Access, Service, Communication
C. Reliability, Courtesy, Communication
D. Courtesy, Access, Choice

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Answer:C

52. Quality Gaps include:

A. The Management Perception Gap; The Quality Specification Gap; The Service Delivery Gap
B. The Management Perception Gap, The Market Communication Gap, The Quality Improvement
Gap
C. The Service Delivery Gap, The Market Communication Gap; The Information Gap
D. The Service Delivery Gap, The Management Perception Gap, The implementation Gap
Answer:A

53. The Perceived Service Quality means that the perceived or experienced service
is not consistent with the expected service. This gap results in the following: Which
one is NOT true?
A. An increase in corporate costs
B. A negative impact on corporate or local image
C. Bad word of mouth
D. Negatively confirmed quality
Answer:A

54. The four unique elements to services include:

A. Independence, intangibility, inventory, and inception
B. Independence, increase, inventory, and intangibility
C. Intangibility, inconsistency, inseparability, and inventory
D. Intangibility, independence, inseparability, and inventory
Answer:C

55. Listing alternatives that will solve the problem at hand and determining the
characteristics of each occurs during which stage of the final consumer’s decision
process?
A. Information search
B. Purchase
C. Evaluation of alternatives
D. Post purchase
Answer:C

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56. The act of trading a desired product or service to receive something of value in
return is known as which key concept in marketing?
A. product
B. exchange
C. production
D. customer
Answer:B

57. The most basic level of a product is called the:

A. core product.
B. central product.
C. fundamental product.
D. augmented product.
Answer:A

58. Whether to sell via intermediaries or directly to consumers, how many outlets
to sell through, and whether to control or cooperate with other channel members
are examples of decisions marketers must make about
A. Promotion
B. Price
C. Distribution
D. Product
Answer:C

59. The solution to price competition is to develop a differentiated:

A. product, price, and promotion.
B. offer, delivery, and image.
C. package and label.
D. international Web site.
Answer:B

60. 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

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Answer:D

61. 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.
Answer:D

62. Tell whether this statement is right or wrong: Service is somewhat like a rental.
The statement is
A. incorrect
B. correct
C. somewhat correct
D. none of the above
Answer:B

63. Services marketing area is an attractive area of study in 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
Answer:A

64. You watch the mountains 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
Answer:B

65. Servicescape refers to:

A. service landscape
B. service factory

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 C. place where the service is delivered
D. beautiful service landscape
Answer:C

66. 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
Answer:B

67. 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
Answer:B

68. 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
Answer:A

69. 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
Answer:A

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 Chapter: Unit 2

70. Who has developed the GASs Model?

A. Zeithmal and Bitner
B. Zeithmal and Berry
C. Zeithmal, Parsuraman and Bitner
D. Zeithmal, Parsuraman and Berry
Answer:C

71. _____ extended the GAPs Model by _____ GAPs.

A. ArashShahin; 2
B. Dwayne D Gremler; 2
C. ArashShahin; 3
D. Dwayne D Gremler; 3
Answer:C

72. _______ are attributes that can be discerned only after purchase or during
consumption
A. Search Qualities
B. Experience Qualities
C. Credence Qualities
D. None of the above
Answer:A

73. ______ are attributes that a customer might find difficult to evaluate even after
production or consumption.
A. Search Qualities
B. Experience Qualities
C. Credence Qualities
D. None of the above
Answer:C

74. The highest level of Customer Expectation is _____

A. Ideal Expectation
B. Normative Expectation
C. Acceptable Expectation

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 D. None of the above
Answer:C

75. Which of the following factors does not influence adequate service?
A. Lasting service intensifiers
B. Temporary service intensifiers
C. Self-perceived service role
D. None of the above
Answer:A

76. Which of the following does not contribute to Predicted Service?

A. Word of mouth
B. Past experience
C. Personal needs
D. Implicit service promises
Answer:A

77. ______ dimension of service quality refers to the employees’ knowledge and
courtesy and their ability to inspire trust and confidence.
A. Reliability
B. Assurance
C. Responsiveness
D. None of the above
Answer:B

78. Who formulated the SERVQUAL Scale?

A. Zeithmal and Bitner
B. Zeithmal and Berry
C. Zeithmal, Parsuraman and Bitner
D. Zeithmal, Parsuraman and Berry
Answer:C

79. ______ are customers who have an above average propensity to complain.
A. Irates
B. Voicers
C. Activists

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 D. None of the above
Answer:B

80. The gap between a customer’s desired service expectation and the adequate
service expectation is
A. Zone of tolerance
B. Predicted service expectation
C. Derived service expectation
D. Implicit service promise
Answer:C

81. The ability of the service provider and his employees to use their knowledge
and courteous behavior to instill trust and confidence in customers regarding the
service is referred to as: -
A. Assurance
B. Responsiveness
C. Empathy
D. Reliability
Answer:C

82. When a firm’s service quality specification does not match with customer
expectations the gap between the two is known as ______.
A. Standard gap
B. Service performance gap
C. Communication gap
D. Market information gap
Answer:A

83. A consumer has taken a club membership for his entire family. What kind of
needs does he hope to fulfill by availing the club’s services?
A. Self actualization needs
B. Security needs
C. Social needs
D. Physiological needs
Answer:C

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84. Which of the following is not a factor that will influence customer satisfaction
or dissatisfaction during the service encounter?
A. Spontaneity
B. Image
C. Empathy
D. Recovery
Answer:C

85. A consumer took a decision to undergo painting classes. Which need is he

intending to satisfy by doing so?
A. Ego
B. Psychological
C. Self-actualization
D. None of the above
Answer:B

86. Personal services like tooth whitening and plastic surgery satisfy ____ needs of
a person.
A. Ego
B. Psychological
C. Self-actualization
D. Safety
Answer:D

87. Which of the following is not a evidence of service as experienced by the

customer?
A. People
B. Process
C. Procedure
D. Physical Evidence
Answer:B

88. A service guarantee must not be _____

A. Conditional
B. Meaningful
C. Easy to invoke

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 D. Easy to communicate
Answer:C

89. Out of the following circumstances, a service guarantee should be used when: -
A. Service quality is truly uncontrollable
B. Customers perceive high risk in the service
C. Guarantee does not fit the company’s image
D. Existing service quality in the company is poor
Answer:B

90. Which amongst the following is a dimension of credence qualities?

A. Competence
B. Communications
C. Tangibility
D. Responsiveness
Answer:A

91. Which of the following is true as per Pareto’s rule?

A. 15% of customers generate 75% of the revenues of an organization.
B. 20% of customers generate 80% of the revenues of an organization.
C. 30% of customers generate 85% of the revenues of an organization.
D. 15% of customers generate 90% of the revenues of an organization.
Answer:A

92. Identify the risk that arises from a bad product/service choice, that harms
one’sself image.
A. Psychological risk
B. Physical risk
C. Social risk
D. Time risk
Answer:B

93. The ability of the service provider to accurately perform the promised service is
referred to as: -
A. Assurance
B. Responsiveness

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 C. Reliability
D. Tangibles
Answer:A

94. Which of the following is not an external factor that influences consumer
behavior?
A. Social class
B. Culture
C. Service personnel behavior
D. Reference groups
Answer:C

95. Which of the following is not a factor that will influence customer satisfaction
or dissatisfaction during the service encounter?
A. Spontaneity
B. Image
C. Empathy
D. Recover
Answer:A

96. ……….is the difference between customer expectations and perceptions.

A. Customer Delight
B. Customer Satisfaction
C. Customer Gap
D. The supplier Gap
Answer:C

97. Which of the following is difficult to evaluate?

A. Jewellery
B. Auto repair
C. Furniture
D. Clothing
Answer:B

98. Evaluation of Medical Diagnosis service is mainly depends on

A. High in experience quality

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 B. High in credence quality
C. High in search quality
D. Both a and c
Answer:B

99. The level of service consumers actually expect from a service firm is the:
A. Adequate service level.
B. Desired service level.
C. Ideal service level.
D. Predicted service level
Answer:D

100. Consumer behaviour is a term that refers to

A. Organizational and institutional buying behaviour
B. Organizational and consumer buying behaviour
C. Commercial and government buying behaviour
D. Individual and/or household buying behavior
Answer:D

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